United Community Banks, Inc. Announces Sale of Classified Assets and Reversal of Deferred Tax Asset Valuation Allowance

United Community Banks, Inc. Announces Sale of Classified Assets and Reversal 
of Deferred Tax Asset Valuation Allowance 
BLAIRSVILLE, GA -- (Marketwired) -- 06/26/13 --  United Community
Banks, Inc. (NASDAQ: UCBI) announced today the completion of an
accelerated disposition of classified assets with a carrying amount
of approximately $171 million and the reversal of approximately $266
million of its deferred tax asset ("DTA") valuation allowance. As a
result, net income for the second quarter of 2013 will be increased
by approximately $220 million, or $3.78 per share. 
The DTA valuation allowance recovery is the result of United's
sustained profitability and improving credit quality that has led to
significantly lower credit costs. United will reverse $266 million of
the total $271 million DTA valuation allowance, leaving approximately
$5 million related to certain short-term tax credits. The DTA will be
used in future periods to reduce income tax payments. 
"The classified assets sold this quarter included performing
classified loans, non-performing loans and foreclosed properties of
which, a significant portion were in a bulk sale," said United
Community Banks' President and Chief Executive Officer Jimmy Tallent.
"The sale accelerates the improvement in our credit quality and
financial performance and improves our regulatory standing while
lowering our classified assets ratio (classified assets to Tier 1
Capital plus allowance for loan losses) to below 30 percent. 
"United's credit measures have steadily improved since the credit
crisis and will advance even further, following the accelerated
disposition of classified assets this quarter," stated Tallent.
"Non-performing loan inflows, charge-offs, loan loss provisions and
foreclosure costs are expected to be significantly lower with the
removal of a large portion of our classified assets from the balance
sheet. The accelerated disposition has also substantially improved
our classified asset ratio to approximately 26 percent from 49
percent at March 31, 2013, while lowering expected non-performing
assets to approximately $30 million and performing classified loans
to $170 million at quarter-end. 
"Net charge-offs for the second quarter, driven by the accelerated
disposition of classified assets, are expected to b
e approximately
$71 million. We expect the provision for loan losses to be
approximately $47 million, which will lower earnings by $31 million
after-tax, or 53 cents per share," commented Tallent. "Additionally,
net income will include a $251 million tax credit, or $4.31 per
share, relating to the recovery of our DTA valuation allowance. The
effect of the two events will increase net income for the second
quarter of 2013 by approximately $220 million, or $3.78 per share.
Additionally, tangible book value is expected to increase by a
slightly higher amount, or $4.00 per share, due to other deferred tax
related adjustments. 
"The sale of classified assets and recovery of the DTA valuation
allowance are important initiatives that will enhance United
Community Banks' sustained profitability and further opportunities
for long-term success," concluded Tallent. "The lower expected credit
costs coupled with continuing to execute on other parts of our
strategic plan will accelerate our ability to attain a key
performance goal of one percent return on assets. Meanwhile, our
steadfast team of United employees is driving this company forward
with their customary determination and commitment to service." 
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
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. 
For more information:
Rex S. Schuette
Chief Financial Officer
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