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United Community Banks, Inc. Reports Earnings of $11.8 Million for First Quarter 2013

United Community Banks, Inc. Reports Earnings of $11.8 Million for First 
Quarter 2013 
BLAIRSVILLE, GA -- (Marketwired) -- 04/25/13 --  United Community
Banks, Inc. (NASDAQ: UCBI) 


 
--  Net income of $11.8 million, or 15 cents per share
--  Loans up $18.6 million from fourth quarter, or 2 percent annualized
--  Core transaction deposits up $81.2 million in first quarter, or 10
    percent annualized
--  Solid improvement in key credit quality measures

  
United Community Banks, Inc. (NASDAQ: UCBI) today reported net income
of $11.8 million, or 15 cents per share, for the first quarter of
2013. The first quarter results reflect modest loan growth, improved
credit quality, strong core transaction deposit growth, and lower
operating expenses compared with the same period a year ago. 
"We are off to a good start to what we expect to be another
productive year," said Jimmy Tallent, president and chief executive
officer. "The first quarter continued our trend of meaningful
improvement in every key measure of credit quality. We made
particularly strong progress slowing nonperforming loan inflows
which, at $9.67 million, were less than half the fourth quarter
level. Nonperforming assets were $113 million and 1.65 percent of
total assets at the end of the first quarter. That is down $15
million, or 12 percent, from the end of the fourth quarter, and down
$49 million, or 30 percent, from a year ago. Additionally, core
transaction deposits increased by $81 million, or 10 percent
annualized." 
Tallent continued, "We grew our loan portfolio by $19 million from
the fourth quarter, for an annualized rate of 2 percent. Achieving
quality loan growth remains a challenge in what continues to be a
sluggish economy. We achieved this growth by bringing on new
commercial lenders and by offering new retail loan products that are
tailored to meet our customers' financing needs at competitive
rates." 
The first quarter provision for loan losses was $11 million, down $4
million from a year ago and $3 million from the fourth quarter. First
quarter net charge-offs were $12.4 million compared to $14.5 million
in the fourth quarter and $15.9 million a year ago. 
"The inflow of nonperforming loans was the lowest quarterly total
since the beginning of the economic cycle," Tallent said. "The
benefit of this trend, which we expect to continue, was clearly
evident in our lower net charge-offs and provisioning." 
Taxable equivalent net interest revenue totaled $54.7 million, down
$1.37 million from the fourth quarter and down $4.21 million from the
first quarter a year ago. "The decrease primarily reflects lower
yields on our loan and investment securities portfolios," said
Tallent. "The lower loan portfolio yield reflects ongoing pricing
pressure on new and renewed loans, and new retail product offerings
with low introductory rates. The lower investment securities yield is
due to reinvestment of cash flows at record low rates. We continue to
look for reinvestment opportunities, with a focus on floating-rate
securities, to alleviate market and duration risk. Floating-rate
securities account for 34 percent of the investment securities
portfolio, and improve our interest sensitivity position by reducing
exposure to rising interest rates. We would like a higher yield but
will not go out on the curve to chase one." 
The taxable equivalent net interest margin was down six basis points
from the fourth quarter, and 15 basis points from a year ago, to 3.38
percent. "Our net interest margin will remain under pressure as long
as interest rates remain at this unprecedented low level," stated
Tallent. "To offset the impact on net interest revenue, we remain
sharply focused on growing our loan portfolio in the mid-single digit
range by focusing on retail loans and by continuing to add commercial
lenders in key markets." 
First quarter fee revenue was $12.8 million, compared to $14.8
million in the fourth quarter and $15.4 million a year ago. The
decrease from the preceding quarter was primarily due to a slow-down
in mortgage refinancing activity, a lower overdraft fee total related
to transaction and activity levels, and an incentive in the fourth
quarter from our debit card network services provider. Closed
mortgage loans totaled $69.8 million in the first quarter compared
with $100 million in the fourth quarter and $81.7 million in the
first quarter of 2012. The decrease in other fee revenue compared to
a year earlier was primarily due to two non-core items in the first
quarter of 2012: a federal tax refund of $1.1 million and $728,000 in
gains from the sale of low income housing tax credits. 
Operating expenses, excluding foreclosed property costs and a $4
million fourth quarter charge for settlement of litigation, were
$41.4 million in the first quarter of 2013 compared to $42.1 million
for the fourth quarter of 2012 and $43.1 million a year ago. The
decrease from both periods was due to management's efforts to reduce
costs and operate more efficiently, primarily through reduction in
staff levels and related costs. 
Foreclosed property costs were $2.33 million in the first quarter of
2013, compared to $4.61 million in the fourth quarter of 2012 and
$3.83 million a year ago. First quarter 2013 costs included $1.19
million for maintenance and $1.15 million in net losses and
write-downs. For the fourth quarter of 2012, foreclosed property
costs included $1.42 million in maintenance and $3.19 million in net
losses and write-downs. First quarter 2012 foreclosed property costs
included $1.62 million in maintenance and $2.20 million in net losses
and write-downs. 
As of March 31, 2013, capital ratios were as follows: Tier 1
Risk-Based of 14.3 percent; Tier 1 Leverage of 9.7 percent; Total
Risk-Based of 15.9 percent; Tier 1 Common Risk-Based of 8.9 percent;
and, Tangible Equity-to-Assets of 8.5 percent. 
"We know that challenges remain as the economy continues to struggle
and interest rates are at record lows," Tallent continued. "Our focus
is on growing net interest revenue by growing loans in a prudent and
balanced manner, and pursuing opportunities to grow mortgage and
advisory services market share. The environment forces us to be more
efficient and work smarter to achieve our goals, and this team is
fully committed and up to the challenge. We do expect continued
improvement in credit measures that will translate into lower
charge-off and provisioning levels." 
Tallent concluded, "We constantly look for ways to improve our
financial performance by growing our business and improving operating
efficiency, all while maintaining the best customer satisfaction
scores in the industry. We remain firmly committed to improving our
financial results while delivering the best banking experience and
growing shareholder value." 
Conference Call
 United will hold a conference call today, Thursday,
April 25, 2013, at 11 a.m. ET to discuss the contents of this news
release and to share business highlights for the quarter. To access
the call, dial (877) 380-5665 and use the conference number 31826472.
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 $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 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 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                                              
                                                                    First   
                        2013                   2012                Quarter  
                      -------- ----------------------------------- -------  
(in thousands, except                                               2013-   
 per share data;        First   Fourth    Third   Second    First    2012   
 taxable equivalent)   Quarter  Quarter  Quarter  Quarter  Quarter  Change  
                      -------- -------- -------- -------- -------- -------  
INCOME SUMMARY                                                              
Interest revenue      $ 62,134 $ 64,450 $ 65,978 $ 66,780 $ 70,221          
Interest expense         7,475    8,422    8,607    9,944   11,357          
                      -------- -------- -------- -------- --------          
  Net interest                                                              
   revenue              54,659   56,028   57,371   56,836   58,864      (7)%
Provision for loan                                                          
 losses                 11,000   14,000   15,500   18,000   15,000          
Fee revenue             12,826   14,761   13,764   12,867   15,379     (17) 
                      -------- -------- -------- -------- --------          
  Total revenue         56,485   56,789   55,635   51,703   59,243          
Operating expenses      43,770   50,726   44,783   44,310   46,955      (7) 
                      -------- -------- -------- -------- --------          
Income before income                                                        
 taxes                  12,715    6,063   10,852    7,393   12,288       3  
Income tax expense         950      802      284      894      760          
                      -------- -------- -------- -------- --------          
  Net income            11,765    5,261   10,568    6,499   11,528       2  
Preferred dividends                                                         
 and discount                                                               
 accretion               3,052    3,045    3,041    3,032    3,030          
                      -------- -------- -------- -------- --------          
Net income available                                                        
 to common                                                                  
 shareholders         $  8,713 $  2,216 $  7,527 $  3,467 $  8,498       3  
                      ======== ======== ======== ======== ========          
                                                                            
PERFORMANCE MEASURES                                                        
  Per common share:                                                         
    Diluted income    $    .15 $    .04 $    .13 $    .06 $    .15       -  
    Book value            6.85     6.67     6.75     6.61     6.68       3  
    Tangible book                                                           
     value (2)            6.76     6.57     6.64     6.48     6.54       3  
                                                                            
  Key performance                                                           
   ratios:                                                                  
    Return on equity                                                        
     (1)(3)               8.51%    2.15%    7.43%    3.51%    8.78%         
    Return on assets                                                        
     (3)                   .70      .31      .63      .37      .66          
    Net interest                                                            
     margin (3)           3.38     3.44     3.60     3.43     3.53          
    Efficiency ratio     64.97    71.69    62.95    63.84    63.31          
    Equity to assets      8.60     8.63     8.75     8.33     8.19          
    Tangible equity                                                         
     to assets (2)        8.53     8.55     8.66     8.24     8.08          
    Tangible common                                                         
     equity to assets                                                       
     (2)                  5.66     5.67     5.73     5.45     5.33          
    Tangible common                                                         
     equity to risk-                                                        
     weighted assets                                                        
     (2)                  8.45     8.26     8.44     8.37     8.21          
                                                                            
ASSET QUALITY *                                                             
  Non-performing                                                            
   loans              $ 96,006 $109,894 $115,001 $115,340 $129,704          
  Foreclosed                                                                
   properties           16,734   18,264   26,958   30,421   31,887          
                      -------- -------- -------- -------- --------          
    Total non-                                                              
     performing                                                             
     assets (NPAs)     112,740  128,158  141,959  145,761  161,591          
  Allowance for loan                                                        
   losses              105,753  107,137  107,642  112,705  113,601          
  Net charge-offs       12,384   14,505   20,563   18,896   15,867          
  Allowanc
e for loan                                                        
   losses to loans        2.52%    2.57%    2.60%    2.74%    2.75%         
  Net charge-offs to                                                        
   average loans (3)      1.21     1.39     1.99     1.85     1.55          
  NPAs to loans and                                                         
   foreclosed                                                               
   properties             2.68     3.06     3.41     3.51     3.88          
  NPAs to total                                                             
   assets                 1.65     1.88     2.12     2.16     2.25          
                                                                            
AVERAGE BALANCES($ in                                                       
 millions)                                                                  
  Loans               $  4,197 $  4,191 $  4,147 $  4,156 $  4,168       1  
  Investment                                                                
   securities            2,141    2,088    1,971    2,145    2,153      (1) 
  Earning assets         6,547    6,482    6,346    6,665    6,700      (2) 
  Total assets           6,834    6,778    6,648    6,993    7,045      (3) 
  Deposits               5,946    5,873    5,789    5,853    6,028      (1) 
  Shareholders'                                                             
   equity                  588      585      582      583      577       2  
  Common shares -                                                           
   basic (thousands)    58,081   57,971   57,880   57,840   57,764          
  Common shares -                                                           
   diluted                                                                  
   (thousands)          58,081   57,971   57,880   57,840   57,764          
                                                                            
AT PERIOD END($ in                                                          
 millions)                                                                  
  Loans *             $  4,194 $  4,175 $  4,138 $  4,119 $  4,128       2  
  Investment                                                                
   securities            2,141    2,079    2,025    1,984    2,202      (3) 
  Total assets           6,849    6,802    6,699    6,737    7,174      (5) 
  Deposits               6,026    5,952    5,823    5,822    6,001       -  
  Shareholders'                                                             
   equity                  592      581      585      576      580       2  
  Common shares                                                             
   outstanding                                                              
   (thousands)          57,767   57,741   57,710   57,641   57,603          
                                                                            
(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.                                                            
* 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         First    Fourth     Third    Second     First  
 equivalent)                Quarter   Quarter   Quarter   Quarter   Quarter 
                           --------  --------  --------  --------  -------- 
                                                                            
Interest revenue                                                            
 reconciliation                                                             
Interest revenue - taxable                                                  
 equivalent                $ 62,134  $ 64,450  $ 65,978  $ 66,780  $ 70,221 
Taxable equivalent                                                          
 adjustment                    (365)     (381)     (419)     (444)     (446)
                           --------  --------  --------  --------  -------- 
  Interest revenue (GAAP)  $ 61,769  $ 64,069  $ 65,559  $ 66,336  $ 69,775 
                           ========  ========  ========  ========  ======== 
                                                                            
Net interest revenue                                                        
 reconciliation                                                             
Net interest revenue -                                                      
 taxable equivalent        $ 54,659  $ 56,028  $ 57,371  $ 56,836  $ 58,864 
Taxable equivalent                                                          
 adjustment                    (365)     (381)     (419)     (444)     (446)
                           --------  --------  --------  --------  -------- 
  Net interest revenue                                                      
   (GAAP)                  $ 54,294  $ 55,647  $ 56,952  $ 56,392  $ 58,418 
                           ========  ========  ========  ========  ======== 
                                                                            
Total revenue                                                               
 reconciliation                                                             
Total operating revenue    $ 56,485  $ 56,789  $ 55,635  $ 51,703  $ 59,243 
Taxable equivalent                                                          
 adjustment                    (365)     (381)     (419)     (444)     (446)
                           --------  --------  --------  --------  -------- 
  Total revenue (GAAP)     $ 56,120  $ 56,408  $ 55,216  $ 51,259  $ 58,797 
                           ========  ========  ========  ========  ======== 
                                                                            
Income before taxes                                                         
 reconciliation                                                             
Income before taxes        $ 12,715  $  6,063  $ 10,852  $  7,393  $ 12,288 
Taxable equivalent                                                          
 adjustment                    (365)     (381)     (419)     (444)     (446)
                           --------  --------  --------  --------  -------- 
  Income before taxes                                                       
   (GAAP)                  $ 12,350  $  5,682  $ 10,433  $  6,949  $ 11,842 
                           ========  ========  ========  ========  ======== 
                                                                            
Income tax expense                                                          
 reconciliation                                                             
Income tax expense         $    950  $    802  $    284  $    894  $    760 
Taxable equivalent                                                          
 adjustment                    (365)     (381)     (419)     (444)     (446)
            
               --------  --------  --------  --------  -------- 
  Income tax expense                                                        
   (GAAP)                  $    585  $    421  $   (135) $    450  $    314 
                           ========  ========  ========  ========  ======== 
                                                                            
Book value per common                                                       
 share reconciliation                                                       
Tangible book value per                                                     
 common share              $   6.76  $   6.57  $   6.64  $   6.48  $   6.54 
Effect of goodwill and                                                      
 other intangibles              .09       .10       .11       .13       .14 
                           --------  --------  --------  --------  -------- 
  Book value per common                                                     
   share (GAAP)            $   6.85  $   6.67  $   6.75  $   6.61  $   6.68 
                           ========  ========  ========  ========  ======== 
                                                                            
Average equity to assets                                                    
 reconciliation                                                             
Tangible common equity to                                                   
 assets                        5.66%     5.67%     5.73%     5.45%     5.33%
Effect of preferred equity     2.87      2.88      2.93      2.79      2.75 
                           --------  --------  --------  --------  -------- 
  Tangible equity to                                                        
   assets                      8.53      8.55      8.66      8.24      8.08 
Effect of goodwill and                                                      
 other intangibles              .07       .08       .09       .09       .11 
                           --------  --------  --------  --------  -------- 
  Equity to assets (GAAP)      8.60%     8.63%     8.75%     8.33%     8.19%
                           ========  ========  ========  ========  ======== 
                                                                            
Tangible common equity to                                                   
 risk-weighted assets                                                       
 reconciliation                                                             
Tangible common equity to                                                   
 risk-weighted assets          8.45%     8.26%     8.44%     8.37%     8.21%
Effect of other                                                             
 comprehensive income           .49       .51       .36       .28       .10 
Effect of trust preferred      1.15      1.15      1.17      1.19      1.15 
Effect of preferred equity     4.22      4.24      4.29      4.35      4.23 
                           --------  --------  --------  --------  -------- 
  Tier I capital ratio                                                      
   (Regulatory)               14.31%    14.16%    14.26%    14.19%    13.69%
                           ========  ========  ========  ========  ======== 
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Loan Portfolio Composition at Period-End (1)                                
                                                                            
                                             2013        2012               
                                         ----------- -----------            
                                                                   Linked   
                                            First       Fourth     Quarter  
(in millions)                              Quarter     Quarter     Change   
                                         ----------- ----------- ---------- 
LOANS BY CATEGORY                                                           
Owner occupied commercial RE             $     1,130 $     1,131 $       (1)
Income producing commercial RE                   674         682         (8)
Commercial & industrial                          454         458         (4)
Commercial construction                          152         155         (3)
                                         ----------- -----------            
  Total commercial                             2,410       2,426        (16)
Residential mortgage                             850         829         21 
Home equity lines of credit                      396         385         11 
Residential construction                         372         382        (10)
Consumer installment                             166         153         13 
                                         ----------- -----------            
  Total loans                            $     4,194 $     4,175         19 
                                         =========== ===========            
                                                                            
LOANS BY MARKET                                                             
North Georgia                            $     1,363 $     1,364         (1)
Atlanta MSA                                    1,317       1,288         29 
North Carolina                                   575         579         (4)
Coastal Georgia                                  398         400         (2)
Gainesville MSA                                  259         261         (2)
East Tennessee                                   282         283         (1)
                                         ----------- -----------            
  Total loans                            $     4,194 $     4,175         19 
                                         =========== ===========            
                                                                            
RESIDENTIAL CONSTRUCTION                                                    
Dirt loans                                                                  
  Acquisition & development              $        57 $        62         (5)
  Land loans                                      42          46         (4)
  Lot loans                                      188         193         (5)
                                         ----------- -----------            
    Total                                        287         301        (14)
                                         ----------- -----------            
                                                                            
House loans                                                                 
  Spec                                            40          41         (1)
  Sold                                            45          40          5 
                                         ----------- -----------            
    Total                                         85          81          4 
                                         ----------- -----------            
Total residential construction           $       372 $       382        (10)
                                         =========== ===========            
                                                                            
(1) Excludes total loans of $28.3 million, $33.4 million, $37.0 million,    
 $41.5 million and $47.2 million as of March 31, 2013, December 31, 2012,   
 September 30, 2012, June 30, 2012 and March 31, 2012, respectively, that   
 are covered by the loss-sharing agreement with the FDIC, related to the    
 acquisition of Southern Community Bank.                                    
              
                                                              
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Loan Portfolio Composition at Period-End (1)                                
                                                                            
                                                                            
                                             2013        2012               
                                         ----------- -----------            
                                                                  Year over 
                                            First       First       Year    
(in millions)                              Quarter     Quarter     Change   
                                         ----------- ----------- ---------- 
LOANS BY CATEGORY                                                           
Owner occupied commercial RE             $     1,130 $     1,137 $       (7)
Income producing commercial RE                   674         706        (32)
Commercial & industrial                          454         440         14 
Commercial construction                          152         167        (15)
                                         ----------- -----------            
  Total commercial                             2,410       2,450        (40)
Residential mortgage                             850         836         14 
Home equity lines of credit                      396         295        101 
Residential construction                         372         436        (64)
Consumer installment                             166         111         55 
                                         ----------- -----------            
  Total loans                            $     4,194 $     4,128         66 
                                         =========== ===========            
                                                                            
LOANS BY MARKET                                                             
North Georgia                            $     1,363 $     1,408        (45)
Atlanta MSA                                    1,317       1,239         78 
North Carolina                                   575         588        (13)
Coastal Georgia                                  398         366         32 
Gainesville MSA                                  259         262         (3)
East Tennessee                                   282         265         17 
                                         ----------- -----------            
  Total loans                            $     4,194 $     4,128         66 
                                         =========== ===========            
                                                                            
RESIDENTIAL CONSTRUCTION                                                    
Dirt loans                                                                  
  Acquisition & development              $        57 $        86        (29)
  Land loans                                      42          57        (15)
  Lot loans                                      188         204        (16)
                                         ----------- -----------            
    Total                                        287         347        (60)
                                         ----------- -----------            
                                                                            
House loans                                                                 
  Spec                                            40          57        (17)
  Sold                                            45          32         13 
                                         ----------- -----------            
    Total                                         85          89         (4)
                                         ----------- -----------            
Total residential construction           $       372 $       436        (64)
                                         =========== ===========            
                                                                            
(1) Excludes total loans of $28.3 million, $33.4 million, $37.0 million,    
 $41.5 million and $47.2 million as of March 31, 2013, December 31, 2012,   
 September 30, 2012, June 30, 2012 and March 31, 2012, respectively, that   
 are covered by the loss-sharing agreement with the FDIC, related to the    
 acquisition of Southern Community Bank.                                    
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Loan Portfolio Composition at Period-End (1)                                
                                                                            
                              2013                     2012                 
                           --------- ---------------------------------------
                             First     Fourth    Third     Second    First  
(in millions)               Quarter   Quarter   Quarter   Quarter   Quarter 
                           --------- --------- --------- --------- ---------
LOANS BY CATEGORY                                                           
Owner occupied commercial                                                   
 RE                        $   1,130 $   1,131 $   1,126 $   1,140 $   1,137
Income producing                                                            
 commercial RE                   674       682       693       697       706
Commercial & industrial          454       458       460       450       440
Commercial construction          152       155       161       169       167
                           --------- --------- --------- --------- ---------
  Total commercial             2,410     2,426     2,440     2,456     2,450
Residential mortgage             850       829       833       834       836
Home equity lines of                                                        
 credit                          396       385       341       294       295
Residential construction         372       382       389       409       436
Consumer installment             166       153       135       126       111
                           --------- --------- --------- --------- ---------
  Total loans              $   4,194 $   4,175 $   4,138 $   4,119 $   4,128
                           ========= ========= ========= ========= =========
                                                                            
LOANS BY MARKET                                                             
North Georgia              $   1,363 $   1,364 $   1,383 $   1,387 $   1,408
Atlanta MSA                    1,317     1,288     1,257     1,252     1,239
North Carolina                   575       579       579       576       588
Coastal Georgia                  398       400       380       369       366
Gainesville MSA                  259       261       256       259       262
East Tennessee                   282       283       283       276       265
                           --------- --------- --------- --------- ---------
  Total loans              $   4,194 $   4,175 $   4,138 $   4,119 $   4,128
                           ========= ========= ========= ========= =========
                                                                            
RESIDENTIAL CONSTRUCTION                                                    
Dirt loans      
                                                            
  Acquisition &                                                             
   development             $      57 $      62 $      71 $      78 $      86
  Land loans                      42        46        41        45        57
  Lot loans                      188       193       196       203       204
                           --------- --------- --------- --------- ---------
    Total                        287       301       308       326       347
                           --------- --------- --------- --------- ---------
                                                                            
House loans                                                                 
  Spec                            40        41        44        49        57
  Sold                            45        40        37        34        32
                           --------- --------- --------- --------- ---------
    Total                         85        81        81        83        89
                           --------- --------- --------- --------- ---------
Total residential                                                           
 construction              $     372 $     382 $     389 $     409 $     436
                           ========= ========= ========= ========= =========
                                                                            
(1) Excludes total loans of $28.3 million, $33.4 million, $37.0 million,    
 $41.5 million and $47.2 million as of March 31, 2013, December 31, 2012,   
 September 30, 2012, June 30, 2012 and March 31, 2012, respectively, that   
 are covered by the loss-sharing agreement with the FDIC, related to the    
 acquisition of Southern Community Bank.                                    
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Credit Quality (1)                                                          
                                                                            
                                                 First Quarter 2013         
                                         ---------------------------------- 
                                            Non-                            
                                         performing  Foreclosed     Total   
(in thousands)                              Loans    Properties     NPAs    
                                         ----------  ----------  ---------- 
NPAs BY CATEGORY                                                            
Owner occupied CRE                       $    8,142  $    4,750  $   12,892 
Income producing CRE                          9,162         834       9,996 
Commercial & industrial                      29,545           -      29,545 
Commercial construction                      22,359       3,027      25,386 
                                         ----------  ----------  ---------- 
  Total commercial                           69,208       8,611      77,819 
Residential mortgage                         10,901       3,463      14,364 
Home equity lines of credit                     916           -         916 
Residential construction                     14,592       4,660      19,252 
Consumer installment                            389           -         389 
                                         ----------  ----------  ---------- 
  Total NPAs                             $   96,006  $   16,734  $  112,740 
                                         ----------  ----------  ---------- 
  Balance as a % of Unpaid Principal           66.3%       45.0%       62.0%
                                                                            
NPAs BY MARKET                                                              
North Georgia                            $   63,210  $    6,616  $   69,826 
Atlanta MSA                                  17,380       3,524      20,904 
North Carolina                                8,519       2,533      11,052 
Coastal Georgia                               3,523       1,449       4,972 
Gainesville MSA                                 911         370       1,281 
East Tennessee                                2,463       2,242       4,705 
                                         ----------  ----------  ---------- 
  Total NPAs                             $   96,006  $   16,734  $  112,740 
                                         ==========  ==========  ========== 
                                                                            
                                                                            
NPA ACTIVITY                                                                
Beginning Balance                        $  109,894  $   18,264  $  128,158 
Loans placed on non-accrual                   9,665           -       9,665 
Payments received                            (6,809)          -      (6,809)
Loan charge-offs                            (10,456)          -     (10,456)
Foreclosures                                 (6,288)      6,288           - 
Capitalized costs                                 -          54          54 
Note / property sales                             -      (6,726)     (6,726)
Write downs                                       -      (1,041)     (1,041)
Net losses on sales                               -        (105)       (105)
                                         ----------  ----------  ---------- 
  Ending Balance                         $   96,006  $   16,734  $  112,740 
                                         ==========  ==========  ========== 
                                                                            
(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.                                                             
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Credit Quality (1)                                                          
                                                                            
                                                 Fourth Quarter 2012        
                                         ---------------------------------- 
                                            Non-                            
                                         performing  Foreclosed     Total   
(in thousands)                              Loans    Properties     NPAs    
                                         ----------  ----------  ---------- 
NPAs BY CATEGORY                                                            
Owner occupied CRE                       $   12,599  $    4,989  $   17,588 
Income producing CRE                          9,549         490      10,039 
Commercial & industrial                      31,817           -      31,817 
Commercial construction                      23,843       2,204      26,047 
                                         ----------  ----------  ---------- 
  Total commercial                           77,808       7,683      85,491 
Residential mortgage                         11,151       4,753      15,904 
Home equity lines of credit                   1,438           -       1,438 
Residential constr
uction                     18,702       5,828      24,530 
Consumer installment                            795           -         795 
                                         ----------  ----------  ---------- 
  Total NPAs                             $  109,894  $   18,264  $  128,158 
                                         ==========  ==========  ========== 
  Balance as a% of Unpaid Principal            69.5%       39.7%       62.8%
                                                                            
NPAs BY MARKET                                                              
North Georgia                            $   69,950  $    8,219  $   78,169 
Atlanta MSA                                  18,556       3,442      21,998 
North Carolina                               11,014       2,579      13,593 
Coastal Georgia                               3,810       1,609       5,419 
Gainesville MSA                                 903         556       1,459 
East Tennessee                                5,661       1,859       7,520 
                                         ----------  ----------  ---------- 
  Total NPAs                             $  109,894  $   18,264  $  128,158 
                                         ==========  ==========  ========== 
                                                                            
NPA ACTIVITY                                                                
Beginning Balance                        $  115,001  $   26,958  $  141,959 
Loans placed on non-accrual                  20,211           -      20,211 
Payments received                            (6,458)          -      (6,458)
Loan charge-offs                            (11,722)          -     (11,722)
Foreclosures                                 (7,138)      7,138           - 
Capitalized costs                                 -         201         201 
Note / property sales                             -     (12,845)    (12,845)
Write downs                                       -      (1,438)     (1,438)
Net losses on sales                               -      (1,750)     (1,750)
                                         ----------  ----------  ---------- 
  Ending Balance                         $  109,894  $   18,264  $  128,158 
                                         ==========  ==========  ========== 
                                                                            
(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.                                                             
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Credit Quality (1)                                                          
                                                                            
                                                 Third Quarter 2012         
                                         ---------------------------------- 
                                            Non-                            
                                         performing  Foreclosed     Total   
(in thousands)                              Loans    Properties     NPAs    
                                         ----------  ----------  ---------- 
NPAs BY CATEGORY                                                            
Owner occupied CRE                       $   14,140  $    7,170  $   21,310 
Income producing CRE                         11,756       1,597      13,353 
Commercial & industrial                      32,678           -      32,678 
Commercial construction                      18,590       3,121      21,711 
                                         ----------  ----------  ---------- 
  Total commercial                           77,164      11,888      89,052 
Residential mortgage                         12,629       6,031      18,660 
Home equity lines of credit                   1,367           -       1,367 
Residential construction                     22,935       9,039      31,974 
Consumer installment                            906           -         906 
                                         ----------  ----------  ---------- 
  Total NPAs                             $  115,001  $   26,958  $  141,959 
                                         ==========  ==========  ========== 
  Balance as a % of Unpaid Principal           68.8%       36.4%       58.8%
                                                                            
NPAs BY MARKET                                                              
North Georgia                            $   72,211  $   14,582  $   86,793 
Atlanta MSA                                  21,349       5,926      27,275 
North Carolina                                9,622       2,771      12,393 
Coastal Georgia                               6,822         864       7,686 
Gainesville MSA                                 840       1,328       2,168 
East Tennessee                                4,157       1,487       5,644 
                                         ----------  ----------  ---------- 
  Total NPAs                             $  115,001  $   26,958  $  141,959 
                                         ==========  ==========  ========== 
                                                                            
                                                                            
NPA ACTIVITY                                                                
Beginning Balance                        $  115,340  $   30,421  $  145,761 
Loans placed on non-accrual                  30,535           -      30,535 
Payments received                            (3,646)          -      (3,646)
Loan charge-offs                            (19,227)          -     (19,227)
Foreclosures                                 (8,001)      8,001           - 
Capitalized costs                                 -         102         102 
Note / property sales                             -      (8,822)     (8,822)
Write downs                                       -      (2,394)     (2,394)
Net losses on sales                               -        (350)       (350)
                                         ----------  ----------  ---------- 
  Ending Balance                         $  115,001  $   26,958  $  141,959 
                                         ==========  ==========  ========== 
                                                                            
(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.                                                             
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Credit Quality(1)                                                           
                                                                            
                                                                            
                       First Quarter     Fourth Quarter     Third Quarter   
                            2013              2012               2012       
                    
 -----------------  ----------------  ----------------- 
                                 Net               Net                Net   
                               Charge-           Charge-            Charge- 
                               Offs to           Offs to            Offs to 
                       Net     Average    Net    Average    Net     Average 
                     Charge-    Loans   Charge-   Loans   Charge-    Loans  
(in thousands)         Offs      (2)      Offs     (2)      Offs     (2)    
                     -------  --------  ------- --------  -------  -------- 
NET CHARGE-OFFS BY CATEGORY                                                 
Owner occupied CRE   $ 1,922       .69% $ 4,997     1.76% $ 6,192      3.56%
Income producing CRE   3,321      1.99    1,153      .67    1,982       .70 
Commercial &                                                                
 industrial            1,501      1.34      135      .12     (259)     (.23)
Commercial                                                                  
 construction             (4)     (.01)   1,688     4.25    3,190      7.74 
                     -------            -------           -------           
  Total commercial     6,740      1.14    7,973     1.30   11,105      1.81 
Residential mortgage   1,635       .79    3,254     1.55    2,846      1.40 
Home equity lines of                                                        
 credit                  512       .53      445      .49      681       .80 
Residential                                                                 
 construction          2,973      3.22    2,435     2.52    5,676      5.69 
Consumer installment     524      1.35      398     1.10      255       .78 
                     -------            -------           -------           
  Total              $12,384      1.21  $14,505     1.39  $20,563      1.99 
                     =======            =======           =======           
                                                                            
                                                                            
NET CHARGE-OFFS BY MARKET                                                   
North Georgia        $ 4,910      1.42% $ 4,474     1.26% $ 6,451      1.84%
Atlanta MSA            3,295      1.07    3,977     1.27    9,344      3.02 
North Carolina         2,249      1.59    2,032     1.39    1,674      1.15 
Coastal Georgia          821       .85      574      .60    2,486      2.67 
Gainesville MSA          430       .67    1,331     2.04      294       .45 
East Tennessee           679       .98    2,117     2.98      314       .45 
                     -------            -------           -------           
  Total              $12,384      1.21  $14,505     1.39  $20,563      1.99 
                     =======            =======           =======           
                                                                            
(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.                                                             
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Consolidated Statement of Operations (Unaudited)                            
                                                                            
                                                        Three Months Ended  
                                                             March 31,      
                                                       -------------------- 
(in thousands, except per share data)                     2013       2012   
                                                       ---------- --------- 
                                                                            
Interest revenue:                                                           
  Loans, including fees                                $   50,934 $  55,759 
  Investment securities, including tax exempt of $212                       
   and $250                                                 9,965    13,004 
  Deposits in banks and short-term investments                870     1,012 
                                                       ---------- --------- 
      Total interest revenue                               61,769    69,775 
                                                       ---------- --------- 
                                                                            
Interest expense:                                                           
  Deposits:                                                                 
    NOW                                                       454       637 
    Money market                                              562       641 
    Savings                                                    36        37 
    Time                                                    3,226     6,159 
                                                       ---------- --------- 
      Total deposit interest expense                        4,278     7,474 
  Short-term borrowings                                       516     1,045 
  Federal Home Loan Bank advances                              19       466 
  Long-term debt                                            2,662     2,372 
                                                       ---------- --------- 
    Total interest expense                                  7,475    11,357 
                                                       ---------- --------- 
    Net interest revenue                                   54,294    58,418 
  Provision for loan losses                                11,000    15,000 
                                                       ---------- --------- 
    Net interest revenue after provision for loan                           
     losses                                                43,294    43,418 
                                                       ---------- --------- 
                                                                            
Fee revenue:                                                                
  Service charges and fees                                  7,403     7,783 
  Mortgage loan and other related fees                      2,655     2,099 
  Brokerage fees                                              767       813 
  Securities gains, net                                       116       557 
  Loss from prepayment of debt                                  -      (482)
  Other                                                     1,885     4,609 
                                                       ---------- --------- 
    Total fee revenue                                      12,826    15,379 
                                                       ---------- --------- 
    Total revenue                                          56,120    58,797 
                                                       ---------- --------- 
                                                                            
Operating expenses:                                                         
  Salaries and employee benefits                           23,592    25,225 
  Communications and equipment                              3,046     3,155 
  Occupancy                                                 3,367     3,771 
  Advertising and public relations                            938       846 
  Postage, printing and supplies                              863       979 
  Professional fees                                         2,366     1,975 
  Foreclosed property                                       2,333     3,825 
  FDIC assessments and
 other regulatory charges             2,505     2,510 
  Amortization of intangibles                                 705       732 
  Other                                                     4,055     3,937 
                                                       ---------- --------- 
    Total operating expenses                               43,770    46,955 
                                                       ---------- --------- 
    Net income before income taxes                         12,350    11,842 
  Income tax expense                                          585       314 
                                                       ---------- --------- 
    Net income                                             11,765    11,528 
  Preferred stock dividends and discount accretion          3,052     3,030 
                                                       ---------- --------- 
    Net income available to common shareholders        $    8,713 $   8,498 
                                                       ========== ========= 
                                                                            
Earnings per common share - basic / diluted            $      .15 $     .15 
Weighted average common shares outstanding - basic /                        
 diluted                                                   58,081    57,764 
                                                                            
                                                                            
                                                                            

 
UNITED COMMUNITY BANKS, INC.                                                
Consolidated Balance Sheet                                                  
                                                                            
(in thousands, except share and per      March 31,    December    March 31, 
 share data)                                2013      31, 2012      2012    
                                        -----------  ----------  ---------- 
                                        (unaudited)   (audited)   (audited) 
ASSETS                                                                      
Cash and due from banks                 $    57,638  $   66,536  $   53,147 
Interest-bearing deposits in banks          107,390     124,613     139,439 
Short-term investments                       82,000      60,000     235,000 
                                        -----------  ----------  ---------- 
    Cash and cash equivalents               247,028     251,149     427,586 
Securities available for sale             1,909,426   1,834,593   1,898,815 
Securities held to maturity (fair value                                     
 $247,087, $261,131 and $318,490)           231,087     244,184     303,636 
Mortgage loans held for sale                 18,290      28,821      24,809 
Loans, net of unearned income             4,193,560   4,175,008   4,127,566 
    Less allowance for loan losses         (105,753)   (107,137)   (113,601)
                                        -----------  ----------  ---------- 
      Loans, net                          4,087,807   4,067,871   4,013,965 
Assets covered by loss sharing                                              
 agreements with the FDIC                    42,096      47,467      72,854 
Premises and equipment, net                 168,036     168,920     174,419 
Bank owned life insurance                    82,114      81,867      80,956 
Accrued interest receivable                  18,302      18,659      20,292 
Goodwill and other intangible assets          4,805       5,510       7,695 
Foreclosed property                          16,734      18,264      31,887 
Unsettled securities sales                        -       5,763      43,527 
Other assets                                 23,643      29,191      73,252 
                                        -----------  ----------  ---------- 
    Total assets                        $ 6,849,368  $6,802,259  $7,173,693 
                                        ===========  ==========  ========== 
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Liabilities:                                                                
  Deposits:                                                                 
    Demand                              $ 1,298,425  $1,252,605  $1,101,757 
    NOW                                   1,281,454   1,316,453   1,389,016 
    Money market                          1,165,836   1,149,912   1,123,734 
    Savings                                 243,347     227,308     214,150 
    Time:                                                                   
      Less than $100,000                  1,019,396   1,055,271   1,207,479 
      Greater than $100,000                 685,174     705,558     796,882 
    Brokered                                332,220     245,033     167,521 
                                        -----------  ----------  ---------- 
        Total deposits                    6,025,852   5,952,140   6,000,539 
  Short-term borrowings                      51,999      52,574     101,925 
  Federal Home Loan Bank advances               125      40,125     215,125 
  Long-term debt                            124,825     124,805     120,245 
  Unsettled securities purchases                  -           -     119,565 
  Accrued expenses and other                                                
   liabilities                               54,349      51,210      36,755 
                                        -----------  ----------  ---------- 
    Total liabilities                     6,257,150   6,220,854   6,594,154 
                                        -----------  ----------  ---------- 
Shareholders' equity:                                                       
  Preferred stock, $1 par value;                                            
   10,000,000 shares authorized;                                            
    Series A; $10 stated value; 21,700                                      
     shares issued and outstanding              217         217         217 
    Series B; $1,000 stated value;                                          
     180,000 shares issued and                                              
     outstanding                            178,937     178,557     177,451 
    Series D; $1,000 stated value;                                          
     16,613 shares issued and                                               
     outstanding                             16,613      16,613      16,613 
  Common stock, $1 par value;                                               
   100,000,000 shares authorized;                                           
   43,063,761, 42,423,870 and                                               
   41,688,647 shares issued and                                             
   outstanding                               43,064      42,424      41,689 
  Common stock, non-voting, $1 par                                          
   value; 30,000,000 shares authorized;                                     
   14,703,636, 15,316,794 and                                               
   15,914,209 shares issued and                                             
   outstanding                               14,704      15,317      15,914 
  Common stock issuable; 133,469,                                           
   133,238 and 90,126 shares                  2,726       3,119       2,948 
  Capital surplus                         1,059,222   1,057,951   1,056,135 
  Accumulated deficit                      (700,440)   (709,153)   (722,363)
  Accumulated other comprehensive loss      (22,825)    (23,640)     (9,065)
                                        -----------  ----------  ---------- 
    Total shareholders' equity              592,218     581,405     579,539 
                                        -----------  ----------  ---------- 
    Total li
abilities and shareholders'                                     
     equity                             $ 6,849,368  $6,802,259  $7,173,693 
                                        ===========  ==========  ========== 
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Average Consolidated Balance Sheets and Net Interest Analysis               
For the Three Months Ended March 31,                                        
                                                                            
                                  2013                       2012           
                       -------------------------  ------------------------- 
(dollars in thousands,   Average            Avg.    Average            Avg. 
 taxable equivalent)     Balance  Interest  Rate    Balance  Interest  Rate 
                       ---------- -------- -----  ---------- -------- ----- 
Assets:                                                                     
Interest-earning                                                            
 assets:                                                                    
  Loans, net of                                                             
   unearned income                                                          
   (1)(2)              $4,196,757 $ 50,999  4.93% $4,168,440 $ 55,842  5.39%
  Taxable securities                                                        
   (3)                  2,119,085    9,753  1.84   2,127,794   12,754  2.40 
  Tax-exempt                                                                
   securities (1)(3)       21,733      347  6.39      25,438      410  6.45 
  Federal funds sold                                                        
   and other interest-                                                      
   earning assets         209,674    1,035  1.97     377,988    1,215  1.29 
                       ---------- --------        ---------- --------       
                                                                            
    Total interest-                                                         
     earning assets     6,547,249   62,134  3.84   6,699,660   70,221  4.21 
                       ---------- --------        ---------- --------       
Non-interest-earning                                                        
 assets:                                                                    
  Allowance for loan                                                        
   losses                (110,941)                  (117,803)               
  Cash and due from                                                         
   banks                   64,294                     54,664                
  Premises and                                                              
   equipment              169,280                    174,849                
  Other assets (3)        164,250                    233,676                
                       ----------                 ----------                
    Total assets       $6,834,132                 $7,045,046                
                       ==========                 ==========                
                                                                            
Liabilities and                                                             
 Shareholders' Equity:                                                      
Interest-bearing                                                            
 liabilities:                                                               
  Interest-bearing                                                          
   deposits:                                                                
    NOW                $1,303,308      454   .14  $1,458,112      637   .18 
    Money market        1,257,409      562   .18   1,069,658      641   .24 
    Savings               234,110       36   .06     205,402       37   .07 
    Time less than                                                          
     $100,000           1,039,707    1,749   .68   1,271,351    3,026   .96 
    Time greater than                                                       
     $100,000             694,553    1,477   .86     821,164    2,415  1.18 
    Brokered time                                                           
     deposits             175,128        -   .00     161,335      718  1.79 
                       ---------- --------        ---------- --------       
      Total interest-                                                       
       bearing                                                              
       deposits         4,704,215    4,278   .37   4,987,022    7,474   .60 
                       ---------- --------        ---------- --------       
                                                                            
    Federal funds                                                           
     purchased and                                                          
     other borrowings      72,157      516  2.90     102,258    1,045  4.11 
    Federal Home Loan                                                       
     Bank advances         33,069       19   .23     138,372      466  1.35 
    Long-term debt        124,816    2,662  8.65     120,237    2,372  7.93 
                       ---------- --------        ---------- --------       
      Total borrowed                                                        
       funds              230,042    3,197  5.64     360,867    3,883  4.33 
                       ---------- --------        ---------- --------       
                                                                            
      Total interest-                                                       
       bearing                                                              
       liabilities      4,934,257    7,475   .61   5,347,889   11,357   .85 
                                  --------                   --------       
Non-interest-bearing                                                        
 liabilities:                                                               
    Non-interest-                                                           
     bearing deposits   1,241,527                  1,040,587                
    Other liabilities      70,839                     79,612                
                       ----------                 ----------                
      Total                                                                 
       liabilities      6,246,623                  6,468,088                
Shareholders' equity      587,509                    576,958                
                       ----------                 ----------                
      Total                                                                 
       liabilities and                                                      
       shareholders'                                                        
       equity          $6,834,132                 $7,045,046                
                       ==========                 ==========                
                                                                            
Net interest revenue              $ 54,659                   $ 58,864       
                                  ========                   ========       
Net interest-rate                                                           
 spread                                     3.23%                      3.36%
                                           =====                      ===== 
                                                                            
Net interest margin                                                         
 (4)          
                              3.38%                      3.53%
                                           =====                      ===== 
                                                                            
(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 $17.1 million in 2013 and $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.                                        

  
For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
Rex_Schuette@ucbi.com 
 
 
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