United Community Banks, Inc. Settles Litigation and Updates Results for Fourth Quarter 2012

United Community Banks, Inc. Settles Litigation and Updates Results for Fourth 
Quarter 2012 
Updates Previously Reported 2012 Fourth Quarter and Full Year Results
to Reflect Settlement and Litigation Reserve 
BLAIRSVILLE, GA -- (Marketwire) -- 02/22/13 --  United Community
Banks, Inc. ("United") (NASDAQ: UCBI) today reported that, subject to
the completion of final documentation and any necessary court
approvals, it has settled previously disclosed litigation with FILB
Co-Investments LLC ("FILB-Co"). 
"As required under GAAP with the resolution of litigation after
year-end but before financial statements are available for issuance,
our previously reported 2012 fourth quarter and full year financial
results have been updated to reflect a settlement of our litigation
with FILB-Co," said Jimmy Tallent, president and chief executive
officer. "While we strongly viewed the litigation as being without
merit, the settlement will allow us to avoid a long and costly legal
process."  
United has updated its previously reported 2012 fourth quarter and
full year financial results to establish litigation reserves for both
the settlement and with respect to claims that may be made against
United by Fletcher International Ltd. or one or more of its
affiliates. The settlement with FILB-Co and the related reserves
increased fourth quarter 2012 operating expenses by $4 million.
Therefore, updated 2012 fourth quarter and full year earnings were
reduced to $5.26 million and $33.9 million, respectively, or $.04 per
share and $.38 per share. Previously reported 2012 fourth quarter and
full-year earnings were $9.26 million and $37.9 million,
respectively, or $.11 per share and $.44 per share, respectively.  
"We are pleased that the FILB-Co litigation has been resolved and
believe that we have established reserves to address the settlement
and any other claims that may be asserted against United in the
future by Fletcher," said Tallent. 
The updated financial results will be reflected in United's Annual
Report on Form 10-K, and are included in the financial highlights
below. 


 
                                                                            
Financial Highlights                                                        
Selected Financial Information                   
                           
---------------------------------------------------------------------------   
(in thousands, except       Three Months Ended        Twelve Months Ended   
 per share                   December 31, 2012         December 31, 2012 
 data; taxable           ------------------------  ------------------------
 equivalent)             As Reported   As Updated  As Reported   As Updated 
------------------------------------  -----------  -----------  -----------  
INCOME SUMMARY                                                              
Operating expenses       $    46,726  $    50,726  $   182,774  $   186,774 
Income before income                                                        
 taxes                        10,063        6,063       40,596       36,596 
Net income                     9,261        5,261       37,856       33,856 
Net income available to                                                     
 common shareholders           6,216        2,216       25,708       21,708 
                                                                            
PERFORMANCE MEASURES                                                        
    Per common share:                                                       
      Diluted income     $       .11  $       .04  $       .44  $       .38 
      Book value                6.74         6.67         6.74         6.67 
      Tangible book                                                         
       value (2)                6.64         6.57         6.64         6.57 
                                                                            
    Key performance                                                         
     ratios:                                                                
      Return on equity                                                      
       (1)(3)                   6.03%        2.15%        6.43%        5.43%
      Return on assets                                                      
       (3)                       .54          .31          .55          .49 
      Efficiency ratio         66.04        71.69        64.02        65.43 
      Tangible common                                                       
       equity to risk-                                                      
       weighted assets                                                      
       (2)                      8.33         8.26         8.33         8.26 
                                                                            
AT PERIOD END ($ in                                                         
 millions)                                                                  
    Shareholders' equity $       585  $       581  $       585  $       581 
                                                                            
(1) Net income available to common shareholders, which is net of preferred  
 stock dividends, divided by average realized common equity, which excludes 
 accumulated other comprehensive income (loss). (2) Excludes effect of      
 acquisition related intangibles                                            
                                                                            
                                                                            
                                                                            
Consolidated Statement of Operations (Unaudited)                            
----------------------------------------------------------------------------
                                Three Months Ended     Twelve Months Ended  
                                December 31, 2012       December 31, 2012   
                             ----------------------- -----------------------
(in thousands, except per                                                   
 share data)                 As Reported  As Updated As Reported  As Updated
---------------------------------------- ----------------------- -----------
                                                                            
Other expenses               $     3,800 $     7,800 $    15,951 $    19,951
Total operating expenses          46,726      50,726     182,774     186,774
Net income before income                                                    
 taxes                             9,682       5,682      38,906      34,906
Net income                         9,261       5,261      37,856      33,856
Net income available to                                                     
 common shareholders               6,216       2,216      25,708      21,708
                                                                            
Earnings per common share -                                                 
 Basic                       $       .11 $       .04 $       .44 $       .38
Earnings per common share -                                                 
 Diluted                             .11         .04         .44         .38
                                                                            
                                                                            
                                                                            
Consolidated Balance Sheet          
                                        
--------------------------------------------------------------------------- 
                                                As Reported     As Updated  
(in thousands, except share and per share       December 31,   December 31, 
 data)                                              2012           2011     
--------------------------------------------------------------------------- 
                                                (unaudited)     (audited)   
Accrued expenses and other liabilities         $      51,210  $      55,210 
Total liabilities                                  6,216,854      6,220,854 
Accumulated deficit                                 (705,153)      (709,153)
Total shareholders' equity                           585,405        581,405 

 
United's regulatory capital ratios were slightly lower as a result of
the change in shareholders' equity. As of December 31, 2012, the
revised capital ratios were as follows: Tier 1 Risk-Based of 14.2
percent; Tier 1 Leverage of 9.6 percent; Total Risk-Based of 15.7
percent; Tier 1 Common Risk-Based of 8.8 percent; and, Tangible
Equity-to-Assets of 8.6 percent. 
About United Community Banks, Inc.
 Headquartered in Blairsville,
United Community Banks, Inc. is the third-largest bank holding
company in Georgia. United has assets of $6.8 billion and operates
103 banking offices throughout north Georgia, the Atlanta region,
coastal Georgia, western North Carolina, east Tennessee and northwest
South Carolina. United specializes in providing personalized
community banking services to individuals and small to mid-size
businesses and also offers the convenience of 24-hour access through
a network of ATMs, telephone and on-line banking. United's common
stock is listed on the Nasdaq Global Select Market under the symbol
UCBI. Additional information may be found at United's website at
www.ucbi.com. 
Safe Harbor
 This news release contains forward-looking statements,
as defined by federal securities laws, including statements about
United's potential settlement of pending and potential litigation,
financial outlook and business environment. These statements are
based on current expectations and are provided to assist in the
understanding of future financial performance. Such performance
involves risks and uncertainties that may cause actual results to
differ materially from those expressed or implied in any such
statements. For a discussion of some of the risks and other factors
that may cause such forward-looking statements to differ materially
from actual results, please refer to United's filings with the
Securities and Exchange Commission including its 2011 Annual Report
on Form 10-K under the sections entitled "Forward-Looking Statements"
and "Risk Factors." Forward-looking statements speak only as of the
date they are made, and we undertake no obligation to update or
revise forward-looking statements.  
For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
Rex_Schuette@ucbi.com 
 
 
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