United Community Banks, Inc. Reports Earnings of $15.9 Million for Fourth Quarter 2013

BLAIRSVILLE, GA--(Marketwired - Jan 23, 2014) - United Community Banks, Inc. (NASDAQ: UCBI)

• Net income of $15.9 million, or 22 cents per share 
• Loans up $62 million, or 6 percent annualized 
• Redeemed $180 million of TARP preferred stock 
• All capital ratios remain strong

United Community Banks, Inc. (NASDAQ: UCBI) ("United") today reported substantial progress in growing the long-term value of its franchise. For the fourth quarter and year ended December 31, 2013, net income was $15.9 million, or 22 cents per share, and $273.1 million, or $4.44 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 made in the fourth quarter and continue to make as we enter 2014," said Jimmy Tallent, president and chief executive officer. "We achieved good loan and deposit growth, which allowed us to hold our net interest margin and grow net interest revenue. I'm especially pleased with the termination of the bank and holding company informal memorandums of understanding with the regulators and the redemption of all our outstanding preferred stock that was originally issued to the U.S. Treasury under the Troubled Asset Relief Program ("TARP") without issuing additional equity. We redeemed $75 million on December 27, 2013 and $105 million on January 10, 2014. These items will have a substantial impact on our future financial performance and our ability to execute our strategic plan."

The fourth quarter provision for credit losses was $3.0 million, the same as the third quarter provision but down substantially from the $14.0 million provision in the fourth quarter of 2012. For the year, our provision for credit losses was $65.5 million compared with $62.5 million in 2012. The 2013 provision was elevated by charge-offs associated with the accelerated classified loan sales in the second quarter. The resulting reduction in classified loans led to lower net charge-offs and lower provisions for the third and fourth quarters of 2013. Fourth quarter net charge-offs were $4.44 million compared with $4.47 million in the third quarter and $14.5 million a year ago. Nonperforming assets at year-end were $31.0 million, representing .42 percent of total assets, which is unchanged from third quarter and down from $128.2 million, or 1.88 percent of total assets, a year ago.

Fourth quarter taxable equivalent net interest revenue totaled $55.9 million, up $1.62 million from the third quarter and down $265,000 from the fourth quarter of 2012. The fourth quarter taxable equivalent net interest margin was 3.26 percent, equal to the third quarter and down 19 basis points from a year ago. "We were able to hold our margin at the third quarter level, which allowed our earning assets and deposit growth to increase net interest revenue," said Tallent. "Competitive loan pricing pressures continue, but we remain 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, we have been purchasing floating-rate securities, which accounted for 42 percent of our total investment securities portfolio at year-end, up from 39 percent in the third quarter."

Fourth quarter fee revenue of $13.5 million was down $706,000 from third quarter and $1.13 million from a year ago primarily due to lower mortgage fees. Mortgage fees were down $841,000 from the third quarter and down $1.55 million from a year ago reflecting slower mortgage refinancing activity resulting from rising long-term interest rates. Closed mortgage loans totaled $55.5 million in the fourth quarter compared with $76.6 million in the third quarter and $100.5 million in the fourth quarter of 2012.

Operating expenses, excluding foreclosed property costs, were $41.4 million for the fourth quarter compared to $39.9 million in the third quarter of 2013 and $46.1 million a year ago. Fourth quarter 2012 operating expenses included a $4.0 million charge to establish a litigation reserve. The remainder of the decrease from a year ago reflects a lower FDIC deposit insurance assessment, lower professional fees and lower intangible amortization charges. The increase from third quarter was mostly in salaries and benefits expense, reflecting higher incentive compensation due to performance targets that were met.

Foreclosed property costs were $191,000 in the fourth quarter compared to $194,000 in the third quarter and $4.61 million a year ago. Foreclosed property costs remain low as the balance of foreclosed properties has stabilized following the accelerated sales of classified assets in the second quarter.

As of December 31, 2013, capital ratios were as follows: Tier 1 Risk-Based of 12.7 percent; Total Risk-Based of 14.0 percent; Tier 1 Common Risk-Based of 9.3 percent; and Tangible Equity-to-Assets of 11.6 percent. The Tier 1 Leverage ratio was 9.1 percent.

Tallent concluded, "The achievements of 2013 are the culmination of several years of hard work, diligence and dedication by our bankers. They have stood their ground during the most difficult economic environment any of us has ever faced, and played an integral role in our return to offense. The coming year will not be without challenges, but we look forward with confidence to the opportunities ahead."

Conference Call
United will hold a conference call today, Thursday, January 23, 2014, at 11 a.m. ET to discuss the contents of this news release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 29377597. 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 $7.4 billion and operates 102 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 Reports on Form 10-Q for the first, second and third quarters 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
(in thousands, except per share data; taxable equivalent)				Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter				Fourth Quarter 2013-2012 Change
INCOME SUMMARY
Interest revenue				$	61,695			$	61,426			$	62,088			$	62,114			$	64,450
Interest expense					5,816				7,169				7,157				7,540				8,306
		Net interest revenue			55,879				54,257				54,931				54,574				56,144			-	%
Provision for credit losses					3,000				3,000				48,500				11,000				14,000
Fee revenue					13,519				14,225				15,943				12,911				14,645			(8	)
		Total revenue			66,398				65,482				22,374				56,485				56,789
Operating expenses					41,614				40,097				48,823				43,770				50,726			(18	)
		Income (loss) before income taxes			24,784				25,385				(26,449	)			12,715				6,063			309
Income tax expense (benefit)					8,873				9,885				(256,413	)			950				802
		Net income			15,911				15,500				229,964				11,765				5,261			202
Preferred dividends and discount accretion					2,912				3,059				3,055				3,052				3,045
Net income available to common shareholders				$	12,999			$	12,441			$	226,909			$	8,713			$	2,216			487
PERFORMANCE MEASURES
	Per common share:
		Diluted income		$	.22			$	.21			$	3.90			$	.15			$	.04			450
		Book value			11.30				10.99				10.90				6.85				6.67			69
		Tangible book value (2)			11.26				10.95				10.82				6.76				6.57			71
	Key performance ratios:
		Return on common equity (1)(3)			7.52	%			7.38	%			197.22	%			8.51	%			2.15	%
		Return on assets (3)			.86				.86				13.34				.70				.31
		Net interest margin (3)			3.26				3.26				3.33				3.37				3.45
		Efficiency ratio			60.02				58.55				68.89				64.97				71.69
		Equity to assets			11.62				11.80				11.57(4	)			8.60				8.63
		Tangible equity to assets (2)			11.59				11.76				11.53(4	)			8.53				8.55
		Tangible common equity to assets (2)			8.99				9.02				8.79(4	)			5.66				5.67
		Tangible common equity to risk-weighted assets (2)			13.17				13.34				13.16				8.45				8.26
ASSET QUALITY *
	Non-performing loans			$	26,819			$	26,088			$	27,864			$	96,006			$	109,894
	Foreclosed properties				4,221				4,467				3,936				16,734				18,264
		Total non-performing assets (NPAs)			31,040				30,555				31,800				112,740				128,158
	Allowance for loan losses				76,762				80,372				81,845				105,753				107,137
	Net charge-offs				4,445				4,473				72,408				12,384				14,505
	Allowance for loan losses to loans				1.77	%			1.88	%			1.95	%			2.52	%			2.57	%
	Net charge-offs to average loans (3)				.41				.42				6.87				1.21				1.39
	NPAs to loans and foreclosed properties				.72				.72				.76				2.68				3.06
	NPAs to total assets				.42				.42				.44				1.65				1.88
AVERAGE BALANCES ($ in millions)
	Loans			$	4,315			$	4,250			$	4,253			$	4,197			$	4,191			3
	Investment securities				2,280				2,178				2,161				2,141				2,088			9
	Earning assets				6,823				6,615				6,608				6,547				6,482			5
	Total assets				7,370				7,170				6,915				6,834				6,778			9
	Deposits				6,190				5,987				5,983				5,946				5,873			5
	Shareholders' equity				856				846				636				588				585			46
	Common shares - basic (thousands)				59,923				59,100				58,141				58,081				57,971
	Common shares - diluted (thousands)				59,925				59,202				58,141				58,081				57,971
AT PERIOD END ($ in millions)
	Loans *			$	4,329			$	4,267			$	4,189			$	4,194			$	4,175			4
	Investment securities				2,312				2,169				2,152				2,141				2,079			11
	Total assets				7,425				7,243				7,163				6,849				6,802			9
	Deposits				6,202				6,113				6,012				6,026				5,952			4
	Shareholders' equity				796				852				829				592				581			37
	Common shares outstanding (thousands)				59,432				59,412				57,831				57,767				57,741

(1) Net income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (2) Excludes effect of acquisition related intangibles and associated amortization. (3) Annualized. (4) Calculated as of period-end.

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

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
				For the Twelve
				Months Ended
				December 31,
(in thousands, except per share data; taxable equivalent)				2013				2012				YTD 2013-2012 Change
INCOME SUMMARY
Interest revenue				$	247,323			$	267,667
Interest expense					27,682				37,909
		Net interest revenue			219,641				229,758			(4	)%
Provision for credit losses					65,500				62,500
Fee revenue					56,598				56,112			1
		Total revenue			210,739				223,370
Operating expenses					174,304				186,774			(7	)
		Income (loss) before income taxes			36,435				36,596			-
Income tax expense (benefit)					(236,705	)			2,740
		Net income			273,140				33,856			707
Preferred dividends and discount accretion					12,078				12,148
Net income available to common shareholders				$	261,062			$	21,708			1,103
PERFORMANCE MEASURES
	Per common share:
		Diluted income		$	4.44			$	.38			1,068
		Book value			11.30				6.67			69
		Tangible book value (2)			11.26				6.57			71
	Key performance ratios:
		Return on common equity (1)(3)			46.72	%			5.43	%
		Return on assets (3)			3.86				.49
		Net interest margin (3)			3.30				3.51
		Efficiency ratio			63.14				65.43
		Equity to assets			10.35				8.47
		Tangible equity to assets (2)			10.31				8.38
		Tangible common equity to assets (2)			7.55				5.54
		Tangible common equity to risk-weighted assets (2)			13.17				8.26
ASSET QUALITY *
	Non-performing loans			$	26,819			$	109,894
	Foreclosed properties				4,221				18,264
		Total non-performing assets (NPAs)			31,040				128,158
	Allowance for loan losses				76,762				107,137
	Net charge-offs				93,710				69,831
	Allowance for loan losses to loans				1.77	%			2.57	%
	Net charge-offs to average loans (3)				2.22				1.69
	NPAs to loans and foreclosed properties				.72				3.06
	NPAs to total assets				.42				1.88
AVERAGE BALANCES ($ in millions)
	Loans			$	4,254			$	4,166			2
	Investment securities				2,190				2,089			5
	Earning assets				6,649				6,547			2
	Total assets				7,074				6,865			3
	Deposits				6,027				5,885			2
	Shareholders' equity				732				582			26
	Common shares - basic (thousands)				58,787				57,857
	Common shares - diluted (thousands)				58,845				57,857
AT PERIOD END ($ in millions)
	Loans *			$	4,329			$	4,175			4
	Investment securities				2,312				2,079			11
	Total assets				7,425				6,802			9
	Deposits				6,202				5,952			4
	Shareholders' equity				796				581			37
	Common shares outstanding (thousands)				59,432				57,741
(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.
Selected Financial Information
For the Years Ended December 31,
(in thousands, except per share data; taxable equivalent)			2013			2012			2011			2010			2009
INCOME SUMMARY
Net interest revenue			$	219,641		$	229,758		$	238,670		$	244,637		$	244,834
Operating provision for credit losses (1)				65,500			62,500			251,000			234,750			310,000
Operating fee revenue (2)				56,598			56,112			44,907			46,963			51,357
	Total operating revenue (1)(2)			210,739			223,370			32,577			56,850			(13,809	)
Operating expenses (3)				174,304			186,774			261,599			242,952			217,050
Loss on sale of nonperforming assets				-			-			-			45,349			-
	Operating income (loss) from continuing operations before taxes			36,435			36,596			(229,022	)		(231,451	)		(230,859	)
Operating income taxes				(236,705	)		2,740			(2,276	)		73,218			(91,754	)
	Net operating income (loss) from continuing operations			273,140			33,856			(226,746	)		(304,669	)		(139,105	)
Gain from acquisition, net of tax				-			-			-			-			7,062
Noncash goodwill impairment charges				-			-			-			(210,590	)		(95,000	)
Severance cost, net of tax benefit				-			-			-			-			(1,797	)
Fraud loss provision and subsequent recovery, net of tax benefit				-			-			-			11,750			-
Net income (loss) from discontinued operations				-			-			-			(101	)		513
Gain from sale of subsidiary, net of income taxes and selling costs				-			-			-			1,266			-
	Net income (loss)			273,140			33,856			(226,746	)		(502,344	)		(228,327	)
Preferred dividends and discount accretion				12,078			12,148			11,838			10,316			10,242
	Net income (loss) available to common shareholders		$	261,062		$	21,708		$	(238,584	)	$	(512,660	)	$	(238,569	)
PERFORMANCE MEASURES
	Per common share:
		Diluted operating earnings (loss) from continuing operations (1)(2)(3)	$	4.44		$	.38		$	(5.97	)	$	(16.64	)	$	(12.37	)
		Diluted earnings (loss) from continuing operations		4.44			.38			(5.97	)		(27.15	)		(19.80	)
		Diluted earnings (loss)		4.44			.38			(5.97	)		(27.09	)		(19.76	)
		Book value		11.30			6.67			6.62			15.40			41.78
		Tangible book value (5)		11.26			6.57			6.47			14.80			30.09
	Key performance ratios:
		Return on common equity (4)		46.72			5.43			(93.57	)%		(85.08	)%		(34.40	)%
		Return on assets		3.86			.49			(3.15	)		(6.61	)		(2.76	)
		Net interest margin		3.30			3.51			3.52			3.59			3.29
		Operating efficiency ratio from continuing operations (2)(3)		63.14			65.43			92.27			98.98			73.97
		Equity to assets		10.35			8.47			7.75			10.77			11.12
		Tangible equity to assets (5)		10.31			8.38			7.62			8.88			8.33
		Tangible common equity to assets (5)		7.55			5.54			3.74			6.52			6.15
		Tangible common equity to risk-weighted assets (5)		13.17			8.26			8.25			5.64			10.39
ASSET QUALITY *
	Non-performing loans		$	26,819		$	109,894		$	127,479		$	179,094		$	264,092
	Foreclosed properties			4,221			18,264			32,859			142,208			120,770
		Total non-performing assets (NPAs)		31,040			128,158			160,338			321,302			384,862
	Allowance for loan losses			76,762			107,137			114,468			174,695			155,602
	Operating net charge-offs (1)			93,710			69,831			311,227			215,657			276,669
	Allowance for loan losses to loans			1.77			2.57	%		2.79	%		3.79	%		3.02	%
	Operating net charge-offs to average loans (1)			2.22			1.69			7.33			4.42			5.03
	NPAs to loans and foreclosed properties			.72			3.06			3.87			6.77			7.30
	NPAs to total assets			.42			1.88			2.30			4.42			4.81
AVERAGE BALANCES ($ in millions)
	Loans		$	4,254		$	4,166		$	4,307		$	4,961		$	5,548
	Investment securities			2,190			2,089			1,999			1,453			1,656
	Earning assets			6,649			6,547			6,785			6,822			7,465
	Total assets			7,074			6,865			7,189			7,605			8,269
	Deposits			6,027			5,885			6,275			6,373			6,713
	Shareholders' equity			732			582			557			819			920
	Common shares - Basic (thousands)			58,787			57,857			39,943			18,925			12,075
	Common shares - Diluted (thousands)			58,845			57,857			39,943			18,925			12,075
AT YEAR END ($ in millions)
	Loans *		$	4,329		$	4,175		$	4,110		$	4,604		$	5,151
	Investment securities			2,312			2,079			2,120			1,490			1,530
	Total assets			7,425			6,802			6,983			7,276			8,000
	Deposits			6,202			5,952			6,098			6,469			6,628
	Shareholders' equity			796			581			575			469			962
	Common shares outstanding (thousands)			59,432			57,741			57,561			18,937			18,809
(1) Excludes the subsequent recovery of $11.8 million in previously recognized fraud related loan losses in 2010. (2) Excludes the gain from acquisition of $11.4 million, net of income tax expense of $4.3 million in 2009. (3) Excludes goodwill impairment charges of $211 million and $95 million in 2010 and 2009, respectively, and severance costs of $2.9 million, net of income tax benefit of $1.1 million in 2009. (4) Net income (loss) available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (5) Excludes effect of acquisition related intangibles and associated amortization.
* 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
(in thousands, except per share data; taxable equivalent)			Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
Interest revenue reconciliation
Interest revenue - taxable equivalent			$	61,695			$	61,426			$	62,088			$	62,114			$	64,450
Taxable equivalent adjustment				(380	)			(370	)			(368	)			(365	)			(381	)
	Interest revenue (GAAP)		$	61,315			$	61,056			$	61,720			$	61,749			$	64,069
Net interest revenue reconciliation
Net interest revenue - taxable equivalent			$	55,879			$	54,257			$	54,931			$	54,574			$	56,144
Taxable equivalent adjustment				(380	)			(370	)			(368	)			(365	)			(381	)
	Net interest revenue (GAAP)		$	55,499			$	53,887			$	54,563			$	54,209			$	55,763
Provision for credit losses reconciliation
Operating provision for credit losses			$	3,000			$	3,000			$	48,500			$	11,000			$	14,000
Partial recovery of special fraud-related loan loss				-				-				-				-				-
	Provision for credit losses (GAAP)		$	3,000			$	3,000			$	48,500			$	11,000			$	14,000
Fee revenue reconciliation
Operating fee revenue			$	13,519			$	14,225			$	15,943			$	12,911			$	14,645
Gain from acquisition				-				-				-				-				-
	Fee revenue (GAAP)		$	13,519			$	14,225			$	15,943			$	12,911			$	14,645
Total revenue reconciliation
Total operating revenue			$	66,398			$	65,482			$	22,374			$	56,485			$	56,789
Taxable equivalent adjustment				(380	)			(370	)			(368	)			(365	)			(381	)
Gain from acquisition				-				-				-				-				-
Partial recovery of special fraud-related loan loss				-				-				-				-				-
	Total revenue (GAAP)		$	66,018			$	65,112			$	22,006			$	56,120			$	56,408
Expense reconciliation
Operating expense			$	41,614			$	40,097			$	48,823			$	43,770			$	50,726
Noncash goodwill impairment charge				-				-				-				-				-
Severance costs				-				-				-				-				-
	Operating expense (GAAP)		$	41,614			$	40,097			$	48,823			$	43,770			$	50,726
Income (loss) before taxes reconciliation
Income (loss) before taxes			$	24,784			$	25,385			$	(26,449	)		$	12,715			$	6,063
Taxable equivalent adjustment				(380	)			(370	)			(368	)			(365	)			(381	)
Gain from acquisition				-				-				-				-				-
Noncash goodwill impairment charge				-				-				-				-				-
Severance costs				-				-				-				-				-
Partial recovery of special fraud-related loan loss				-				-				-				-				-
	Income (loss) before taxes (GAAP)		$	24,404			$	25,015			$	(26,817	)		$	12,350			$	5,682
Income tax expense (benefit) reconciliation
Income tax expense (benefit)			$	8,873			$	9,885			$	(256,413	)		$	950			$	802
Taxable equivalent adjustment				(380	)			(370	)			(368	)			(365	)			(381	)
Gain from acquisition, tax expense				-				-				-				-				-
Severance costs, tax benefit				-				-				-				-				-
	Income tax expense (benefit) (GAAP)		$	8,493			$	9,515			$	(256,781	)		$	585			$	421
Diluted earnings (loss) from continuing operations per common share reconciliation
Diluted operating earnings (loss) from continuing operations per common share			$	.22			$	.21			$	3.90			$	.15			$	.04
Gain from acquisition				-				-				-				-				-
Noncash goodwill impairment charge				-				-				-				-				-
Severance costs				-				-				-				-				-
Partial recovery of special fraud-related loan loss				-				-				-				-				-
	Diluted earnings (loss) from continuing operations per common share (GAAP)		$	.22			$	.21			$	3.90			$	.15			$	.04
Book value per common share reconciliation
Tangible book value per common share			$	11.26			$	10.95			$	10.82			$	6.76			$	6.57
Effect of goodwill and other intangibles				.04				.04				.08				.09				.10
	Book value per common share (GAAP)		$	11.30			$	10.99			$	10.90			$	6.85			$	6.67
Efficiency ratio from continuing operations reconciliation
Operating efficiency ratio from continuing operations				60.02	%			58.55	%			68.89	%			64.97	%			71.69
Gain from acquisition				-				-				-				-				-
Noncash goodwill impairment charge				-				-				-				-				-
Severance costs				-				-				-				-				-
	Efficiency ratio from continuing operations (GAAP)			60.02	%			58.55	%			68.89	%			64.97	%			71.69
Average equity to assets reconciliation
Tangible common equity to assets				8.99	%			9.02	%			8.79	%			5.66	%			5.67
Effect of preferred equity				2.60				2.74				2.74				2.87				2.88
	Tangible equity to assets			11.59				11.76				11.53				8.53				8.55
Effect of goodwill and other intangibles				.03				.04				.04				.07				.08
	Equity to assets (GAAP)			11.62	%			11.80	%			11.57	%			8.60	%			8.63
Tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets				13.17	%			13.34	%			13.16	%			8.45	%			8.26
Effect of other comprehensive income				.39				.49				.29				.49				.51
Effect of deferred tax limitation				(4.25	)			(4.72	)			(4.99	)			-				-
Effect of trust preferred				1.04				1.09				1.11				1.15				1.15
Effect of preferred equity				2.38				4.01				4.11				4.22				4.24
	Tier I capital ratio (Regulatory)			12.73	%			14.21	%			13.68	%			14.31	%			14.16
Net charge-offs reconciliation
Operating net charge-offs			$	4,445			$	4,473			$	72,408			$	12,384			$	14,505
Subsequent partial recovery of fraud-related charge-off				-				-				-				-				-
	Net charge-offs (GAAP)		$	4,445			$	4,473			$	72,408			$	12,384			$	14,505
Net charge-offs to average loans reconciliation
Operating net charge-offs to average loans				.41	%			.42	%			6.87	%			1.21	%			1.39
Subsequent partial recovery of fraud-related charge-off				-				-				-				-				-
	Net charge-offs to average loans (GAAP)			.41	%			.42	%			6.87	%			1.21	%			1.39

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
			For the Twelve Months
			Ended December 31,
(in thousands, except per share data; taxable equivalent)			2013				2012				2011				2010				2009
Interest revenue reconciliation
Interest revenue - taxable equivalent			$	247,323			$	267,667			$	304,308			$	344,493			$	404,961
Taxable equivalent adjustment				(1,483	)			(1,690	)			(1,707	)			(2,001	)			(2,132	)
	Interest revenue (GAAP)		$	245,840			$	265,977			$	302,601			$	342,492			$	402,829
Net interest revenue reconciliation
Net interest revenue - taxable equivalent			$	219,641			$	229,758			$	238,670			$	244,637			$	244,834
Taxable equivalent adjustment				(1,483	)			(1,690	)			(1,707	)			(2,001	)			(2,132	)
	Net interest revenue (GAAP)		$	218,158			$	228,068			$	236,963			$	242,636			$	242,702
Provision for credit losses reconciliation
Operating provision for credit losses			$	65,500			$	62,500			$	251,000			$	234,750			$	310,000
Partial recovery of special fraud-related loan loss				-				-				-				(11,750	)			-
	Provision for credit losses (GAAP)		$	65,500			$	62,500			$	251,000			$	223,000			$	310,000
Fee revenue reconciliation
Operating fee revenue			$	56,598			$	56,112			$	44,907			$	46,963			$	51,357
Gain from acquisition				-				-				-				-				11,390
	Fee revenue (GAAP)		$	56,598			$	56,112			$	44,907			$	46,963			$	62,747
Total revenue reconciliation
Total operating revenue			$	210,739			$	223,370			$	32,577			$	56,850			$	(13,809	)
Taxable equivalent adjustment				(1,483	)			(1,690	)			(1,707	)			(2,001	)			(2,132	)
Gain from acquisition				-				-				-				-				11,390
Partial recovery of special fraud-related loan loss				-				-				-				11,750				-
	Total revenue (GAAP)		$	209,256			$	221,680			$	30,870			$	66,599			$	(4,551	)
Expense reconciliation
Operating expense			$	174,304			$	186,774			$	261,599			$	288,301			$	217,050
Noncash goodwill impairment charge				-				-				-				210,590				95,000
Severance costs				-				-				-				-				2,898
	Operating expense (GAAP)		$	174,304			$	186,774			$	261,599			$	498,891			$	314,948
Income (loss) before taxes reconciliation
Income (loss) before taxes			$	36,435			$	36,596			$	(229,022	)		$	(231,451	)		$	(230,859	)
Taxable equivalent adjustment				(1,483	)			(1,690	)			(1,707	)			(2,001	)			(2,132	)
Gain from acquisition				-				-				-				-				11,390
Noncash goodwill impairment charge				-				-				-				(210,590	)			(95,000	)
Severance costs				-				-				-				-				(2,898	)
Partial recovery of special fraud-related loan loss				-				-				-				11,750				-
	Income (loss) before taxes (GAAP)		$	34,952			$	34,906			$	(230,729	)		$	(432,292	)		$	(319,499	)
Income tax expense (benefit) reconciliation
Income tax expense (benefit)			$	(236,705	)		$	2,740			$	(2,276	)		$	73,218			$	(91,754	)
Taxable equivalent adjustment				(1,483	)			(1,690	)			(1,707	)			(2,001	)			(2,132	)
Gain from acquisition, tax expense				-				-				-				-				4,328
Severance costs, tax benefit				-				-				-				-				(1,101	)
	Income tax expense (benefit) (GAAP)		$	(238,188	)		$	1,050			$	(3,983	)		$	71,217			$	(90,659	)
Diluted earnings (loss) from continuing operations per common share reconciliation
Diluted operating earnings (loss) from continuing operations per common share			$	4.44			$	.38			$	(5.97	)		$	(16.64	)		$	(12.37	)
Gain from acquisition				-				-				-				-				.58
Noncash goodwill impairment charge				-				-				-				(11.13	)			(7.86	)
Severance costs				-				-				-				-				(.15	)
Partial recovery of special fraud-related loan loss				-				-				-				.62				-
	Diluted earnings (loss) from continuing operations per common share (GAAP)		$	4.44			$	.38			$	(5.97	)		$	(27.15	)		$	(19.80	)
Book value per common share reconciliation
Tangible book value per common share			$	11.26			$	6.57			$	6.47			$	14.80			$	30.09
Effect of goodwill and other intangibles				.04				.10				.15				.60				11.69
	Book value per common share (GAAP)		$	11.30			$	6.67			$	6.62			$	15.40			$	41.78
Efficiency ratio from continuing operations reconciliation
Operating efficiency ratio from continuing operations				63.14	%			65.43	%			92.27	%			98.98	%			73.97	%
Gain from acquisition				-				-				-				-				(2.77	)
Noncash goodwill impairment charge				-				-				-				72.29				31.17
Severance costs				-				-				-				-				.95
	Efficiency ratio from continuing operations (GAAP)			63.14	%			65.43	%			92.27	%			171.27	%			103.32	%
Average equity to assets reconciliation
Tangible common equity to assets				7.55	%			5.54	%			3.74	%			6.52	%			6.15	%
Effect of preferred equity				2.76				2.84				3.88				2.36				2.18
	Tangible equity to assets			10.31				8.38				7.62				8.88				8.33
Effect of goodwill and other intangibles				.04				.09				.13				1.89				2.79
	Equity to assets (GAAP)			10.35	%			8.47	%			7.75	%			10.77	%			11.12	%
Tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets				13.17	%			8.26	%			8.25	%			5.64	%			10.39	%
Effect of other comprehensive income				.39				.51				(.03	)			(.42	)			(.87	)
Effect of deferred tax limitation				(4.25	)			-				-				-				(1.27	)
Effect of trust preferred				1.04				1.15				1.18				1.06				.97
Effect of preferred equity				2.38				4.24				4.29				3.53				3.19
	Tier I capital ratio (Regulatory)			12.73	%			14.16	%			13.69	%			9.81	%			12.41	%
Net charge-offs reconciliation
Operating net charge-offs			$	93,710			$	69,831			$	311,227			$	215,657			$	276,669
Subsequent partial recovery of fraud-related charge-off				-				-				-				(11,750	)			-
	Net charge-offs (GAAP)		$	93,710			$	69,831			$	311,227			$	203,907			$	276,669
Net charge-offs to average loans reconciliation
Operating net charge-offs to average loans				2.22	%			1.69	%			7.33	%			4.42	%			5.03	%
Subsequent partial recovery of fraud-related charge-off				-				-				-				(.25	)			-
	Net charge-offs to average loans (GAAP)			2.22	%			1.69	%			7.33	%			4.17	%			5.03	%

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)
				2013												2012
(in millions)				Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
LOANS BY CATEGORY
Owner occupied commercial RE				$	1,134		$	1,129		$	1,119		$	1,130		$	1,131
Income producing commercial RE					623			614			629			674			682
Commercial & industrial					472			457			437			454			458
Commercial construction					149			137			133			152			155
	Total commercial				2,378			2,337			2,318			2,410			2,426
Residential mortgage					875			888			876			850			829
Home equity lines of credit					441			421			402			396			385
Residential construction					328			318			332			372			382
Consumer installment					307			303			261			166			153
	Total loans			$	4,329		$	4,267		$	4,189		$	4,194		$	4,175
LOANS BY MARKET
North Georgia				$	1,240		$	1,262		$	1,265		$	1,363		$	1,364
Atlanta MSA					1,275			1,246			1,227			1,262			1,250
North Carolina					572			575			576			575			579
Coastal Georgia					423			421			397			398			400
Gainesville MSA					255			253			256			259			261
East Tennessee					280			277			282			282			283
South Carolina					88			47			34			-			-
Other (2)					196			186			152			55			38
	Total loans			$	4,329		$	4,267		$	4,189		$	4,194		$	4,175
RESIDENTIAL CONSTRUCTION
Dirt loans
	Acquisition & development			$	39		$	40		$	42		$	57		$	62
	Land loans				38			35			36			42			46
	Lot loans				166			167			173			188			193
		Total			243			242			251			287			301
House loans
	Spec				23			30			34			40			41
	Sold				62			46			47			45			40
		Total			85			76			81			85			81
Total residential construction				$	328		$	318		$	332		$	372		$	382
(1) Excludes total loans of $20.3 million, $23.3 million, $25.7 million, $28.3 million and $33.4 million as of December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 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
Loan Portfolio Composition at Period-End (1)
				2013						2012
(in millions)				Fourth Quarter			Third Quarter			Fourth Quarter			Linked Quarter Change				Year over Year Change
LOANS BY CATEGORY
Owner occupied commercial RE				$	1,134		$	1,129		$	1,131		$	5			$	3
Income producing commercial RE					623			614			682			9				(59	)
Commercial & industrial					472			457			458			15				14
Commercial construction					149			137			155			12				(6	)
	Total commercial				2,378			2,337			2,426			41				(48	)
Residential mortgage					875			888			829			(13	)			46
Home equity lines of credit					441			421			385			20				56
Residential construction					328			318			382			10				(54	)
Consumer installment					307			303			153			4				154
	Total loans			$	4,329		$	4,267		$	4,175			62				154
LOANS BY MARKET
North Georgia				$	1,240		$	1,262		$	1,364			(22	)			(124	)
Atlanta MSA					1,275			1,246			1,250			29				25
North Carolina					572			575			579			(3	)			(7	)
Coastal Georgia					423			421			400			2				23
Gainesville MSA					255			253			261			2				(6	)
East Tennessee					280			277			283			3				(3	)
South Carolina					88			47			-			41				88
Other (2)					196			186			38			10				158
	Total loans			$	4,329		$	4,267		$	4,175			62				154
RESIDENTIAL CONSTRUCTION
Dirt loans
	Acquisition & development			$	39		$	40		$	62			(1	)			(23	)
	Land loans				38			35			46			3				(8	)
	Lot loans				166			167			193			(1	)			(27	)
		Total			243			242			301			1				(58	)
House loans
	Spec				23			30			41			(7	)			(18	)
	Sold				62			46			40			16				22
		Total			85			76			81			9				4
Total residential construction				$	328		$	318		$	382			10				(54	)
(1) Excludes total loans of $20.3 million, $23.3 million, $25.7 million, $28.3 million and $33.4 million as of December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 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
Loan Portfolio Composition at Year-End (1)
(in millions)				2013			2012			2011			2010			2009
LOANS BY CATEGORY
Owner occupied commercial RE				$	1,134		$	1,131		$	1,112		$	980		$	963
Income producing commercial RE					623			682			710			781			816
Commercial & industrial					472			458			428			441			390
Commercial construction					149			155			164			297			363
		Total commercial			2,378			2,426			2,414			2,499			2,532
Residential mortgage					875			829			835			944			1,052
Home equity lines of credit					441			385			300			335			375
Residential construction					328			382			448			695			1,050
Consumer / installment					307			153			113			131			142
		Total loans		$	4,329		$	4,175		$	4,110		$	4,604		$	5,151
LOANS BY MARKET
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 (2)					196			38			-			-			-
	Total loans			$	4,329		$	4,175		$	4,110		$	4,604		$	5,151
(1) Excludes total loans of $20.3 million, $33.4 million, $54.5 million, $68.2 million and $85.1 million as of December 31, 2013, 2012, 2011, 2010 and 2009, respectively, that are covered by loss-sharing agreements 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)
			Fourth Quarter 2013
			Non-performing				Foreclosed				Total
(in thousands)			Loans				Properties				NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE			$	5,822			$	832			$	6,654
Income producing CRE				2,518				-				2,518
Commercial & industrial				427				-				427
Commercial construction				361				-				361
	Total commercial			9,128				832				9,960
Residential mortgage				11,730				2,684				14,414
Home equity lines of credit				1,448				389				1,837
Residential construction				4,264				316				4,580
Consumer installment				249				-				249
	Total NPAs		$	26,819			$	4,221			$	31,040
	Balance as a % of Unpaid Principal			65.3	%			44.5	%			61.4	%
NONPERFORMING ASSETS BY MARKET
North Georgia			$	12,352			$	2,494			$	14,846
Atlanta MSA				2,830				684				3,514
North Carolina				6,567				683				7,250
Coastal Georgia				2,342				173				2,515
Gainesville MSA				928				-				928
East Tennessee				1,800				187				1,987
South Carolina				-				-				-
Other (3)				-				-				-
	Total NPAs		$	26,819			$	4,221			$	31,040
NONPERFORMING ASSETS ACTIVITY
Beginning Balance			$	26,088			$	4,467			$	30,555
Loans placed on non-accrual				11,043				-				11,043
Payments received				(1,688	)			-				(1,688	)
Loan charge-offs				(4,621	)			-				(4,621	)
Foreclosures				(4,003	)			4,003				-
Capitalized costs				-				-				-
Property sales				-				(4,684	)			(4,684	)
Write downs				-				(326	)			(326	)
Net gains (losses) on sales				-				761				761
	Ending Balance		$	26,819			$	4,221			$	31,040
(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2) Annualized.
(3) Includes purchased indirect auto loans that are not assigned to a geographic region.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality(1)
			Third Quarter 2013
			Non-performing				Foreclosed				Total
(in thousands)			Loans				Properties				NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE			$	6,358			$	591			$	6,949
Income producing CRE				1,657				139				1,796
Commercial & industrial				609				-				609
Commercial construction				343				376				719
	Total commercial			8,967				1,106				10,073
Residential mortgage				11,335				1,679				13,014
Home equity lines of credit				1,169				475				1,644
Residential construction				4,097				1,207				5,304
Consumer installment				520				-				520
	Total NPAs		$	26,088			$	4,467			$	30,555
	Balance as a % of Unpaid Principal			61.6	%			41.5	%			57.6	%
NONPERFORMING ASSETS BY MARKET
North Georgia			$	13,652			$	1,726			$	15,378
Atlanta MSA				3,096				1,026				4,122
North Carolina				5,680				762				6,442
Coastal Georgia				995				928				1,923
Gainesville MSA				1,036				-				1,036
East Tennessee				1,629				25				1,654
South Carolina				-				-				-
Other (3)				-				-				-
	Total NPAs		$	26,088			$	4,467			$	30,555
NONPERFORMING ASSETS ACTIVITY
Beginning Balance			$	27,864			$	3,936			$	31,800
Loans placed on non-accrual				9,959				-				9,959
Payments received				(3,601	)			-				(3,601	)
Loan charge-offs				(5,395	)			-				(5,395	)
Foreclosures				(2,739	)			2,739				-
Capitalized costs				-				7				7
Property sales				-				(2,534	)			(2,534	)
Write downs				-				(329	)			(329	)
Net gains (losses) on sales				-				648				648
	Ending Balance		$	26,088			$	4,467			$	30,555
(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2) Annualized.
(3) Includes purchased indirect auto loans that are not assigned to a geographic region.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality(1)
			Second Quarter 2013
			Non-performing				Foreclosed				Total
(in thousands)			Loans				Properties				NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE			$	5,283			$	547			$	5,830
Income producing CRE				1,954				-				1,954
Commercial & industrial				548				-				548
Commercial construction				504				376				880
	Total commercial			8,289				923				9,212
Residential mortgage				12,847				1,303				14,150
Home equity lines of credit				1,491				140				1,631
Residential construction				4,838				1,570				6,408
Consumer installment				399				-				399
	Total NPAs		$	27,864			$	3,936			$	31,800
	Balance as a % of Unpaid Principal			62.6	%			31.6	%			55.8	%
NONPERFORMING ASSETS BY MARKET
North Georgia			$	12,830			$	1,617			$	14,447
Atlanta MSA				3,803				1,197				5,000
North Carolina				6,512				295				6,807
Coastal Georgia				2,588				627				3,215
Gainesville MSA				1,008				-				1,008
East Tennessee				1,123				200				1,323
South Carolina				-				-				-
Other (3)				-				-				-
	Total NPAs		$	27,864			$	3,936			$	31,800
NONPERFORMING ASSETS ACTIVITY
Beginning Balance			$	96,006			$	16,734			$	112,740
Loans placed on non-accrual				13,200				-				13,200
Payments received				(47,937	)			-				(47,937	)
Loan charge-offs				(23,972	)			-				(23,972	)
Foreclosures				(9,433	)			9,433				-
Capitalized costs				-				55				55
Property sales				-				(17,972	)			(17,972	)
Write downs				-				(1,369	)			(1,369	)
Net gains (losses) on sales				-				(2,945	)			(2,945	)
	Ending Balance		$	27,864			$	3,936			$	31,800
(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2) Annualized.
(3) Includes purchased indirect auto loans that are not assigned to a geographic region.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality(1)
		Fourth Quarter 2013						Third Quarter 2013						Second Quarter 2013
(in thousands)		Net Charge-Offs			Net Charge-Offs to Average Loans(2)			Net Charge-Offs			Net Charge-Offs to Average Loans(2)			Net Charge-Offs			Net Charge-Offs to Average Loans(2)
NET CHARGE-OFFS BY CATEGORY
Owner occupied CRE		$	1,638		.57	%		$	1,641		.58	%		$	16,545		5.85	%
Income producing CRE			320		.21				216		.14				8,921		5.45
Commercial & industrial			(149	)	(.13	)			136		.12				15,576		13.91
Commercial construction			(9	)	(.02	)			133		.39				6,295		17.53
	Total commercial		1,800		.30				2,126		.36				47,337		7.96
Residential mortgage			1,426		.64				693		.31				5,469		2.52
Home equity lines of credit			417		.38				382		.37				1,040		1.04
Residential construction			327		.40				1,072		1.31				18,506		20.91
Consumer installment			475		.62				200		.28				56		.10
	Total	$	4,445		.41			$	4,473		.42			$	72,408		6.87
NET CHARGE-OFFS BY MARKET
North Georgia		$	1,603		.51	%		$	2,090		.66	%		$	59,102		17.20	%
Atlanta MSA			636		.20				1,013		.33				9,986		3.21
North Carolina			1,104		.76				704		.49				1,952		1.36
Coastal Georgia			345		.33				139		.14				480		.49
Gainesville MSA			346		.54				97		.15				123		.19
East Tennessee			323		.46				359		.51				711		1.01
South Carolina			-		-				-		-				-		-
Other (3)			88		.20				71		.17				54		.24
	Total	$	4,445		.41			$	4,473		.42			$	72,408		6.87
(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						Twelve Months Ended
					December 31,						December 31,
(in thousands, except per share data)					2013			2012			2013				2012
Interest revenue:
	Loans, including fees				$	49,066		$	53,335		$	200,893			$	217,378
	Investment securities, including tax exempt of $203, $219, $827 and $956					11,253			9,841			41,158				44,613
	Deposits in banks and short-term investments					996			893			3,789				3,986
			Total interest revenue			61,315			64,069			245,840				265,977
Interest expense:
	Deposits:
		NOW				473			462			1,759				2,049
		Money market				569			617			2,210				2,518
		Savings				24			38			133				150
		Time				1,593			3,558			10,464				19,097
			Total deposit interest expense			2,659			4,675			14,566				23,814
	Short-term borrowings					508			524			2,071				2,987
	Federal Home Loan Bank advances					3			25			68				907
	Long-term debt					2,646			3,082			10,977				10,201
		Total interest expense				5,816			8,306			27,682				37,909
		Net interest revenue				55,499			55,763			218,158				228,068
	Provision for credit losses					3,000			14,000			65,500				62,500
		Net interest revenue after provision for loan losses				52,499			41,763			152,658				165,568
Fee revenue:
	Service charges and fees					8,166			8,375			31,997				31,670
	Mortgage loan and other related fees					1,713			3,262			9,925				10,483
	Brokerage fees					1,361			751			4,465				3,082
	Securities gains, net					70			31			186				7,078
	Loss from prepayment of debt					-			-			-				(6,681	)
	Other					2,209			2,226			10,025				10,480
		Total fee revenue				13,519			14,645			56,598				56,112
		Total revenue				66,018			56,408			209,256				221,680
Operating expenses:
	Salaries and employee benefits					24,817			23,586			96,233				96,026
	Communications and equipment					3,414			3,320			13,233				12,940
	Occupancy					3,735			3,455			13,930				14,304
	Advertising and public relations					781			987			3,718				3,855
	Postage, printing and supplies					882			1,050			3,283				3,899
	Professional fees					2,102			2,685			9,617				8,792
	Foreclosed property					191			4,611			7,869				13,993
	FDIC assessments and other regulatory charges					1,804			2,505			9,219				10,097
	Amortization of intangibles					408			727			2,031				2,917
	Other					3,480			7,800			15,171				19,951
		Total operating expenses				41,614			50,726			174,304				186,774
		Net income before income taxes				24,404			5,682			34,952				34,906
	Income tax expense (benefit)					8,493			421			(238,188	)			1,050
		Net income				15,911			5,261			273,140				33,856
	Preferred stock dividends and discount accretion					2,912			3,045			12,078				12,148
		Net income available to common shareholders			$	12,999		$	2,216		$	261,062			$	21,708
Earnings per common share
	Basic				$	.22		$	.04		$	4.44			$	.38
	Diluted					.22			.04			4.44				.38
Weighted average common shares outstanding
	Basic					59,923			57,971			58,787				57,857
	Diluted					59,925			57,971			58,845				57,857

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
(in thousands, except share and per share data)						December 31, 2013				December 31, 2012
						(unaudited)				(audited)
ASSETS
	Cash and due from banks					$	71,230			$	66,536
	Interest-bearing deposits in banks						119,669				124,613
	Short-term investments						37,999				60,000
		Cash and cash equivalents					228,898				251,149
	Securities available for sale						1,832,217				1,834,593
	Securities held to maturity (fair value $485,585 and $261,131)						479,742				244,184
	Mortgage loans held for sale						10,319				28,821
	Loans, net of unearned income						4,329,266				4,175,008
		Less allowance for loan losses					(76,762	)			(107,137	)
			Loans, net				4,252,504				4,067,871
	Assets covered by loss sharing agreements with the FDIC						22,882				47,467
	Premises and equipment, net						163,589				168,920
	Bank owned life insurance						80,670				81,867
	Accrued interest receivable						19,598				18,659
	Intangible assets						3,480				5,510
	Foreclosed property						4,221				18,264
	Net deferred tax asset						258,518				-
	Other assets						68,781				34,954
		Total assets				$	7,425,419			$	6,802,259
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
	Deposits:
		Demand				$	1,388,512			$	1,252,605
		NOW					1,427,939				1,316,453
		Money market					1,227,575				1,149,912
		Savings					251,125				227,308
		Time:
			Less than $100,000				892,961				1,055,271
			Greater than $100,000				588,689				705,558
		Brokered					424,704				245,033
				Total deposits			6,201,505				5,952,140
	Short-term borrowings						53,241				52,574
	Federal Home Loan Bank advances						120,125				40,125
	Long-term debt						129,865				124,805
	Unsettled securities purchases						29,562				-
	Accrued expenses and other liabilities						95,406				51,210
		Total liabilities					6,629,704				6,220,854
Shareholders' equity:
	Preferred stock, $1 par value; 10,000,000 shares authorized;
		Series A; $10 stated value; 0 and 21,700 shares issued and outstanding					-				217
		Series B; $1,000 stated value; 105,000 and 180,000 shares issued and outstanding					105,000				178,557
		Series D; $1,000 stated value; 16,613 shares issued and outstanding					16,613				16,613
	Common stock, $1 par value; 100,000,000 shares authorized; 46,243,345 and 42,423,870 shares issued and outstanding						46,243				42,424
	Common stock, non-voting, $1 par value; 30,000,000 shares authorized; 13,188,206 and 15,316,794 shares issued and outstanding						13,188				15,317
	Common stock issuable; 241,832 and 133,238 shares						3,930				3,119
	Capital surplus						1,078,676				1,057,951
	Accumulated deficit						(448,091	)			(709,153	)
	Accumulated other comprehensive loss						(19,844	)			(23,640	)
		Total shareholders' equity					795,715				581,405
		Total liabilities and shareholders' equity				$	7,425,419			$	6,802,259

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 31,
					2013									2012
(dollars in thousands, taxable equivalent)					Average Balance			Interest			Avg. Rate			Average Balance			Interest			Avg. Rate
Assets:
Interest-earning assets:
	Loans, net of unearned income (1)(2)				$	4,315,370		$	49,205		4.52	%		$	4,190,725		$	53,366		5.07	%
	Taxable securities (3)					2,258,938			11,050		1.96				2,065,311			9,622		1.86
	Tax-exempt securities (1)(3)					20,681			332		6.42				22,483			358		6.37
	Federal funds sold and other interest-earning assets					227,622			1,108		1.95				203,090			1,104		2.17
		Total interest-earning assets				6,822,611			61,695		3.59				6,481,609			64,450		3.96
Non-interest-earning assets:
	Allowance for loan losses					(81,335	)								(112,846	)
	Cash and due from banks					61,083									54,714
	Premises and equipment					165,286									169,967
	Other assets (3)					402,328									184,398
		Total assets			$	7,369,973								$	6,777,842
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
	Interest-bearing deposits:
		NOW			$	1,372,367			473		.14			$	1,261,796			462		.15
		Money market				1,367,589			569		.17				1,200,701			617		.20
		Savings				250,418			24		.04				224,624			38		.07
		Time less than $100,000				907,042			1,164		.51				1,082,761			1,982		.73
		Time greater than $100,000				604,490			1,029		.68				715,902			1,673		.93
		Brokered time deposits				271,490			(600	)	(.88	)			135,708			(97	)	(.28	)
			Total interest-bearing deposits			4,773,396			2,659		.22				4,621,492			4,675		.40
		Federal funds purchased and other borrowings				54,839			508		3.68				67,403			524		3.09
		Federal Home Loan Bank advances				6,647			3		.18				39,092			25		.25
		Long-term debt				129,865			2,646		8.08				149,564			3,082		8.20
			Total borrowed funds			191,351			3,157		6.55				256,059			3,631		5.64
Total interest-bearing liabilities						4,964,747			5,816		.46				4,877,551			8,306		.68
Non-interest-bearing liabilities:
	Non-interest-bearing deposits					1,416,483									1,251,327
	Other liabilities					132,557									63,785
		Total liabilities				6,513,787									6,192,663
Shareholders' equity						856,186									585,179
		Total liabilities and shareholders' equity			$	7,369,973								$	6,777,842
Net interest revenue								$	55,879								$	56,144
Net interest-rate spread											3.13	%								3.28	%
Net interest margin (4)											3.26	%								3.45	%

(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 $6.33 million in 2013 and pretax unrealized gains of $22.2 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 Twelve Months Ended December 31,
					2013									2012
(dollars in thousands, taxable equivalent)					Average Balance			Interest			Avg. Rate			Average Balance			Interest			Avg. Rate
Assets:
Interest-earning assets:
	Loans, net of unearned income (1)(2)				$	4,254,159		$	201,278		4.73	%		$	4,165,520		$	217,705		5.23	%
	Taxable securities (3)					2,169,024			40,331		1.86				2,065,162			43,657		2.11
	Tax-exempt securities (1)(3)					21,228			1,354		6.38				23,759			1,565		6.59
	Federal funds sold and other interest-earning assets					204,303			4,360		2.13				292,857			4,740		1.62
		Total interest-earning assets				6,648,714			247,323		3.72				6,547,298			267,667		4.09
Non-interest-earning assets:
	Allowance for loan losses					(95,411	)								(114,647	)
	Cash and due from banks					63,174									53,247
	Premises and equipment					167,424									172,544
	Other assets (3)					290,098									206,609
		Total assets			$	7,073,999								$	6,865,051
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
	Interest-bearing deposits:
		NOW			$	1,285,842			1,759		.14			$	1,293,510			2,049		.16
		Money market				1,315,385			2,210		.17				1,140,354			2,518		.22
		Savings				244,725			133		.05				216,880			150		.07
		Time less than $100,000				974,470			5,850		.60				1,170,202			9,788		.84
		Time greater than $100,000				654,102			5,115		.78				766,411			8,027		1.05
		Brokered time deposits				219,215			(501	)	(.23	)			155,902			1,282		.82
			Total interest-bearing deposits			4,693,739			14,566		.31				4,743,259			23,814		.50
	Federal funds purchased and other borrowings					66,561			2,071		3.11				80,593			2,987		3.71
	Federal Home Loan Bank advances					32,604			68		.21				124,771			907		.73
	Long-term debt					131,081			10,977		8.37				127,623			10,201		7.99
			Total borrowed funds			230,246			13,116		5.70				332,987			14,095		4.23
			Total interest-bearing liabilities			4,923,985			27,682		.56				5,076,246			37,909		.75
Non-interest-bearing liabilities:
	Non-interest-bearing deposits					1,333,199									1,142,236
	Other liabilities					84,506									64,986
			Total liabilities			6,341,690									6,283,468
Shareholders' equity						732,309									581,583
			Total liabilities and shareholders' equity		$	7,073,999								$	6,865,051
Net interest revenue								$	219,641								$	229,758
Net interest-rate spread											3.16	%								3.34	%
Net interest margin (4)											3.30	%								3.51	%

(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 $4.36 million in 2013 and pretax unrealized gains of $23.6 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.