United Community Banks (UCB) 8-K Results of Operations and Financial Condition

Exhibit 99.1

For Immediate Release

For more information:

Rex S. Schuette

Chief Financial Officer

(706) 781-2266

Rex_Schuette@ucbi.com

UNITED COMMUNITY BANKS, INC. REPORTS

EARNINGS OF $230 MILLION FOR SECOND QUARTER 2013

• Net income of $230 million, or $3.90 per share
• Earnings reflect impact of reversal of valuation allowance on deferred tax asset and accelerated sales of classified assets
• Credit measures now at pre-credit crisis levels
• Capital levels remain strong

BLAIRSVILLE, GA – July 25, 2013 – United Community Banks, Inc. (NASDAQ: UCBI) today reported net income of $230 million, or $3.90 per share, for the second quarter of 2013, and $242 million, or $4.05 per share, for the first six months of 2013. The results reflect the impact of two very significant events during the second quarter – the reversal of the valuation allowance on United’s net deferred tax asset and higher provision for loan losses and foreclosed property expenses from the accelerated sales of classified assets.

“The second quarter events mark the final phase of our recovery from the financial crisis that has affected so many banks throughout the country and especially within our footprint,” said Jimmy Tallent, president and chief executive officer. “With the reversal of our valuation allowance and the accelerated sales of classified assets, the lingering effects of the credit crisis are behind us. We can now devote full attention toward growing our business and increasing the value of our shareholders’ investments.”

 Tallent noted that the reduction in loans resulting from the accelerated classified loan sales masked an otherwise solid quarter of loan growth. Though the company sold loans with a carrying amount of $151 million, total loans were only down $5 million from the first quarter.

“Achieving quality loan growth remains a top priority despite continued challenges with the sluggish economy,” Tallent said. “We are accomplishing this objective by adding lenders strategically, including in our vibrant new markets of Greenville, South Carolina and Nashville, Tennessee.”

The second quarter provision for loan losses was $48.5 million compared with $11 million in the first quarter and with $18 million in the second quarter of 2012. The increase reflects the higher level of charge-offs associated with the accelerated classified loan sales. Second quarter net charge-offs were $72.4 million compared with $12.4 million in the first quarter and $18.9 million a year ago. The $48.5 million provision reflects the difference between the $72.4 million in net charge-offs offset by a $24 million reduction in the allowance for loan losses.

“We believed the time was right to take the final step toward putting the financial crisis behind us by selling our stress-related classified assets, including a bulk sale of $131 million,” Tallent said. “We have cleansed our balance sheet of legacy problem credits and are turning full attention to strategic initiatives to grow our business and shareholder value.”

Nonperforming assets at quarter-end were $31.8 million, representing .44 percent of total assets. This total is down from $113 million, or 1.65 percent, at March 31, 2013, and $146 million, or 2.16 percent, at June 30, 2012. The classified asset ratio, which is the ratio of classified assets to Tier 1 regulatory capital plus the allowance for loan losses, declined to 27 percent from 49 percent at March 31 and from 62 percent a year ago.

Second quarter taxable equivalent net interest revenue totaled $54.6 million, down $97,000 from the first quarter and down $2.27 million from the second quarter of 2012. “The decrease reflects the ongoing trend of lower yields on our loan and investment securities portfolios,” said Tallent.

“The lower loan portfolio yield reflects competitive pricing pressure on new and renewed loans and new retail product offerings with low introductory rates. Introductory rates on the new retail products will begin to expire and approximately $50 million will reset to a market rate in the third quarter of 2013. 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. At quarter-end, floating-rate securities accounted for 39 percent of the total investment securities portfolio compared to 34 percent last quarter. The higher proportion improves our overall interest sensitivity position by reducing exposure to rising interest rates.”

The second quarter taxable equivalent net interest margin was 3.31 percent, down seven basis points from the first quarter and 12 basis points from a year ago. “Our net interest margin will remain under pressure as long as interest rates hold at these unprecedented low levels,” stated Tallent. “To offset the impact on net interest revenue, we remain sharply focused on growing the loan portfolio in the mid-single digit range by focusing on retail loans and continuing to add commercial lenders in key markets.”

Second quarter fee revenue was $16.3 million, compared to $12.8 million in the first quarter and $12.9 million a year ago. Contributing to these increases were higher mortgage, advisory services and interchange fee revenue, as well as two non-core items in other fee revenue. Mortgage fee revenue increased $348,000 from the first quarter and $681,000 from a year ago, to $3.0 million. Closed mortgage loans totaled $95.2 million in the second quarter, compared with $69.8 million in the first quarter and $79.8 million in the second quarter of 2012.

The two non-core items that contributed to the increase in other fee revenue were a $1.37 million recovery on a bank-owned life insurance policy and a $468,000 gain from the sale of low-income housing tax credits. In addition, other fee revenue included customer derivative fees of $488,000 compared with $252,000 in the first quarter of 2013. These fees are from the company’s newly rolled-out loan swap program for commercial loan customers.

Operating expenses, excluding foreclosed property costs, were $43.7 million in the second quarter of 2013 compared to $41.4 million for the first quarter of 2013 and $42.5 million a year ago. The increase from both periods was due mostly to higher severance costs; second quarter 2013 severance costs were $1.56 million compared with $360,000 and $1.16 million for the first quarter of 2013 and the second quarter of 2012, respectively. Also contributing to the increase in operating expenses were higher mortgage and brokerage incentives related to the higher revenue levels and higher consulting fees associated with various revenue enhancement and efficiency projects.

Foreclosed property costs were $5.15 million in the second quarter of 2013 compared to $2.33 million in the first quarter and $1.85 million a year ago. The higher total reflects losses incurred on the accelerated sales of foreclosed properties. Included in second quarter 2013 costs were $4.31 million in net losses and write-downs and $837,000 for maintenance. For the first quarter of 2013, foreclosed property costs included $1.15 million in net losses and write-downs and $1.19 million in maintenance. Second quarter 2012 foreclosed property costs included $739,000 in net losses and write-downs and $1.11 million in maintenance.

As of June 30, 2013, capital ratios were as follows: Tier 1 Risk-Based of 13.7 percent; Total Risk-Based of 15.2 percent; Tier 1 Common Risk-Based of 8.5 percent; and, Tangible Equity-to-Assets of 11.5 percent. The average Tier 1 Leverage ratio was 9.8 percent at June 30, 2013.

“With credit quality now well under control, our attention is focused on growing our business and improving earnings performance,” concluded Tallent. “In a competitive landscape, we must work more efficiently to achieve our goals, all while maintaining the best customer satisfaction scores in the industry. This team is more than up to the challenge and fully committed.”

 Conference Call

United will hold a conference call today, Thursday, July 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 11766770. The conference call also will be webcast and can be accessed by selecting ‘Calendar of Events’ within the Investor Relations section of United’s website at www.ucbi.com.

About United Community Banks, Inc.

Headquartered in Blairsville, United Community Banks, Inc. is the third-largest bank holding company in Georgia. United has assets of $7.2 billion and operates 103 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina, east Tennessee and western South Carolina. United specializes in providing personalized community banking services to individuals and small to mid-size businesses and also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United’s common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at United’s website at www.ucbi.com.

Safe Harbor

This news release contains forward-looking statements, as defined by federal securities laws, including statements about United’s financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United’s filings with the Securities and Exchange Commission including its 2012 Annual Report on Form 10-K 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

																Second			For the Six
	2013						2012									Quarter			Months Ended						YTD
(in thousands, except per share	Second			First			Fourth			Third			Second			2013-2012			June 30,						2013-2012
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			Change				2013			2012		Change
INCOME SUMMARY
Interest revenue	$	61,693		$	62,134		$	64,450		$	65,978		$	66,780					$	123,827		$	137,001
Interest expense		7,131			7,475			8,422			8,607			9,944						14,606			21,301
Net interest revenue		54,562			54,659			56,028			57,371			56,836			(4	)%		109,221			115,700			(6	)%
Provision for loan losses		48,500			11,000			14,000			15,500			18,000						59,500			33,000
Fee revenue		16,312			12,826			14,761			13,764			12,867			27			29,138			28,246			3
Total revenue		22,374			56,485			56,789			55,635			51,703						78,859			110,946
Operating expenses		48,823			43,770			50,726			44,783			44,310			10			92,593			91,265			1
(Loss) income before income taxes		(26,449	)		12,715			6,063			10,852			7,393						(13,734	)		19,681
Income tax (benefit) expense		(256,413	)		950			802			284			894						(255,463	)		1,654
Net income		229,964			11,765			5,261			10,568			6,499						241,729			18,027
Preferred dividends and discount accretion		3,055			3,052			3,045			3,041			3,032						6,107			6,062
Net income available to common     shareholders	$	226,909		$	8,713		$	2,216		$	7,527		$	3,467					$	235,622		$	11,965
PERFORMANCE MEASURES
Per common share:
Diluted income	$	3.90		$	.15		$	.04		$	.13		$	.06					$	4.05		$	.21
Book value		10.90			6.85			6.67			6.75			6.61			65			10.90			6.61			65
Tangible book value (2)		10.82			6.76			6.57			6.64			6.48			67			10.82			6.48			67
Key performance ratios:
Return on equity (1)(3)		197.22	%		8.51	%		2.15	%		7.43	%		3.51	%					108.34	%		6.12	%
Return on assets (3)		13.34			.70			.31			.63			.37						7.09			.52
Net interest margin (3)		3.31			3.38			3.44			3.60			3.43						3.34			3.48
Efficiency ratio		68.89			64.97			71.69			62.95			63.84						66.98			63.56
Equity to assets		11.57	(4)		8.60			8.63			8.75			8.33						8.90			8.26
Tangible equity to assets (2)		11.53	(4)		8.53			8.55			8.66			8.24						8.83			8.16
Tangible common equity to assets (2)		8.79	(4)		5.66			5.67			5.73			5.45						5.99			5.39
Tangible common equity to risk-         weighted assets (2)		13.16			8.45			8.26			8.44			8.37						13.16			8.37
ASSET QUALITY *
Non-performing loans	$	27,864		$	96,006		$	109,894		$	115,001		$	115,340					$	27,864		$	115,340
Foreclosed properties		3,936			16,734			18,264			26,958			30,421						3,936			30,421
Total non-performing assets (NPAs)		31,800			112,740			128,158			141,959			145,761						31,800			145,761
Allowance for loan losses		81,845			105,753			107,137			107,642			112,705						81,845			112,705
Net charge-offs		72,408			12,384			14,505			20,563			18,896						84,792			34,763
Allowance for loan losses to loans		1.95	%		2.52	%		2.57	%		2.60	%		2.74	%					1.95	%		2.74	%
Net charge-offs to average loans (3)		6.87			1.21			1.39			1.99			1.85						4.07			1.70
NPAs to loans and foreclosed properties		.76			2.68			3.06			3.41			3.51						.76			3.51
NPAs to total assets		.44			1.65			1.88			2.12			2.16						.44			2.16
AVERAGE BALANCES ($ in millions)
Loans	$	4,253		$	4,197		$	4,191		$	4,147		$	4,156			2		$	4,225		$	4,162			2
Investment securities		2,161			2,141			2,088			1,971			2,145			1			2,151			2,149			-
Earning assets		6,608			6,547			6,482			6,346			6,665			(1	)		6,578			6,682			(2	)
Total assets		6,915			6,834			6,778			6,648			6,993			(1	)		6,875			7,019			(2	)
Deposits		5,983			5,946			5,873			5,789			5,853			2			5,964			5,940			-
Shareholders’ equity		636			588			585			582			583			9			612			580			6
Common shares - basic (thousands)		58,141			58,081			57,971			57,880			57,840						58,111			57,803
Common shares - diluted (thousands)		58,141			58,081			57,971			57,880			57,840						58,111			57,803
AT PERIOD END ($ in millions)
Loans *	$	4,189		$	4,194		$	4,175		$	4,138		$	4,119			2		$	4,189		$	4,119			2
Investment securities		2,152			2,141			2,079			2,025			1,984			8			2,152			1,984			8
Total assets		7,163			6,849			6,802			6,699			6,737			6			7,163			6,737			6
Deposits		6,012			6,026			5,952			5,823			5,822			3			6,012			5,822			3
Shareholders’ equity		829			592			581			585			576			44			829			576			44
Common shares outstanding (thousands)		57,831			57,767			57,741			57,710			57,641						57,831			57,641

(1)  Net income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss).  (2)  Excludes effect of acquisition related intangibles and associated amortization.  (3)  Annualized.  (4)  Calculated as of period-end to reflect the full impact of the reversal of the valuation allowance on United’s deferred tax asset.  The period-end ratio is more indicative of the ratio going forward.

* 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									For the Six Months Ended
(in thousands, except per share	Second			First			Fourth			Third			Second
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			2013			2012
Interest revenue reconciliation
Interest revenue - taxable equivalent	$	61,693		$	62,134		$	64,450		$	65,978		$	66,780		$	123,827		$	137,001
Taxable equivalent adjustment		(368	)		(365	)		(381	)		(419	)		(444	)		(733	)		(890	)
Interest revenue (GAAP)	$	61,325		$	61,769		$	64,069		$	65,559		$	66,336		$	123,094		$	136,111
Net interest revenue reconciliation
Net interest revenue - taxable equivalent	$	54,562		$	54,659		$	56,028		$	57,371		$	56,836		$	109,221		$	115,700
Taxable equivalent adjustment		(368	)		(365	)		(381	)		(419	)		(444	)		(733	)		(890	)
Net interest revenue (GAAP)	$	54,194		$	54,294		$	55,647		$	56,952		$	56,392		$	108,488		$	114,810
Total revenue reconciliation
Total operating revenue	$	22,374		$	56,485		$	56,789		$	55,635		$	51,703		$	78,859		$	110,946
Taxable equivalent adjustment		(368	)		(365	)		(381	)		(419	)		(444	)		(733	)		(890	)
Total revenue (GAAP)	$	22,006		$	56,120		$	56,408		$	55,216		$	51,259		$	78,126		$	110,056
(Loss) income before taxes reconciliation
(Loss) income before taxes	$	(26,449	)	$	12,715		$	6,063		$	10,852		$	7,393		$	(13,734	)	$	19,681
Taxable equivalent adjustment		(368	)		(365	)		(381	)		(419	)		(444	)		(733	)		(890	)
(Loss) income before taxes (GAAP)	$	(26,817	)	$	12,350		$	5,682		$	10,433		$	6,949		$	(14,467	)	$	18,791
Income tax (benefit) expense reconciliation
Income tax (benefit) expense	$	(256,413	)	$	950		$	802		$	284		$	894		$	(255,463	)	$	1,654
Taxable equivalent adjustment		(368	)		(365	)		(381	)		(419	)		(444	)		(733	)		(890	)
Income tax (benefit) expense (GAAP)	$	(256,781	)	$	585		$	421		$	(135	)	$	450		$	(256,196	)	$	764
Book value per common share reconciliation
Tangible book value per common share	$	10.82		$	6.76		$	6.57		$	6.64		$	6.48		$	10.82		$	6.48
Effect of goodwill and other intangibles		.08			.09			.10			.11			.13			.08			.13
Book value per common share (GAAP)	$	10.90		$	6.85		$	6.67		$	6.75		$	6.61		$	10.90		$	6.61
Average equity to assets reconciliation
Tangible common equity to assets		8.79	%		5.66	%		5.67	%		5.73	%		5.45	%		5.99	%		5.39	%
Effect of preferred equity		2.74			2.87			2.88			2.93			2.79			2.84			2.77
Tangible equity to assets		11.53			8.53			8.55			8.66			8.24			8.83			8.16
Effect of goodwill and other intangibles		.04			.07			.08			.09			.09			.07			.10
Equity to assets (GAAP)		11.57	%		8.60	%		8.63	%		8.75	%		8.33	%		8.90	%		8.26	%
Tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets		13.16	%		8.45	%		8.26	%		8.44	%		8.37	%		13.16	%		8.37	%
Effect of other comprehensive income		.29			.49			.51			.36			.28			.29			.28
Effect of deferred tax limitation		(4.99	)		-			-			-			-			(4.99	)		-
Effect of trust preferred		1.11			1.15			1.15			1.17			1.19			1.11			1.19
Effect of preferred equity		4.11			4.22			4.24			4.29			4.35			4.11			4.35
Tier I capital ratio (Regulatory)		13.68	%		14.31	%		14.16	%		14.26	%		14.19	%		13.68	%		14.19	%

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Period-End (1)

	2013				2012						Linked Quarter Change			Year over Year Change
	Second		First		Fourth		Third		Second
(in millions)	Quarter		Quarter		Quarter		Quarter		Quarter
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,119	$	1,130	$	1,131	$	1,126	$	1,140	$	(11	)	$	(21	)
Income producing commercial RE		629		674		682		693		697		(45	)		(68	)
Commercial & industrial		437		454		458		460		450		(17	)		(13	)
Commercial construction		133		152		155		161		169		(19	)		(36	)
Total commercial		2,318		2,410		2,426		2,440		2,456		(92	)		(138	)
Residential mortgage		876		850		829		833		834		26			42
Home equity lines of credit		402		396		385		341		294		6			108
Residential construction		332		372		382		389		409		(40	)		(77	)
Consumer installment		261		166		153		135		126		95			135
Total loans	$	4,189	$	4,194	$	4,175	$	4,138	$	4,119		(5	)		70
LOANS BY MARKET
North Georgia	$	1,265	$	1,363	$	1,364	$	1,383	$	1,387		(98	)		(122	)
Atlanta MSA		1,227		1,262		1,250		1,238		1,242		(35	)		(15	)
North Carolina		576		575		579		579		576		1			-
Coastal Georgia		397		398		400		380		369		(1	)		28
Gainesville MSA		256		259		261		256		259		(3	)		(3	)
East Tennessee		282		282		283		283		276		-			6
South Carolina		34		-		-		-		-		34			34
Other (2)		152		55		38		19		10		97			142
Total loans	$	4,189	$	4,194	$	4,175	$	4,138	$	4,119		(5	)		70
RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development	$	42	$	57	$	62	$	71	$	78		(15	)		(36	)
Land loans		36		42		46		41		45		(6	)		(9	)
Lot loans		173		188		193		196		203		(15	)		(30	)
Total		251		287		301		308		326		(36	)		(75	)
House loans
Spec		34		40		41		44		49		(6	)		(15	)
Sold		47		45		40		37		34		2			13
Total		81		85		81		81		83		(4	)		(2	)
Total residential construction	$	332	$	372	$	382	$	389	$	409		(40	)		(77	)

(1)  Excludes total loans of $25.7 million, $28.3 million, $33.4 million, $37.0 million and $41.5 million as of June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 2012, respectively, that are covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.  (2)  Includes purchased indirect auto loans that are not assigned to a geographic region.

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality (1)

	Second Quarter 2013									First Quarter 2013									Fourth Quarter 2012
	Non-performing			Foreclosed			Total			Non-performing			Foreclosed			Total			Non-performing			Foreclosed			Total
(in thousands)	Loans			Properties			NPAs			Loans			Properties			NPAs			Loans			Properties			NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE	$	5,283		$	547		$	5,830		$	8,142		$	4,750		$	12,892		$	12,599		$	4,989		$	17,588
Income producing CRE		1,954			-			1,954			9,162			834			9,996			9,549			490			10,039
Commercial & industrial		548			-			548			29,545			-			29,545			31,817			-			31,817
Commercial construction		504			376			880			22,359			3,027			25,386			23,843			2,204			26,047
Total commercial		8,289			923			9,212			69,208			8,611			77,819			77,808			7,683			85,491
Residential mortgage		12,847			1,303			14,150			10,901			3,463			14,364			11,151			4,753			15,904
Home equity lines of credit		1,491			140			1,631			916			-			916			1,438			-			1,438
Residential construction		4,838			1,570			6,408			14,592			4,660			19,252			18,702			5,828			24,530
Consumer installment		399			-			399			389			-			389			795			-			795
Total NPAs	$	27,864		$	3,936		$	31,800		$	96,006		$	16,734		$	112,740		$	109,894		$	18,264		$	128,158
Balance as a % of
Unpaid Principal		62.6	%		31.6	%		55.8	%		66.3	%		45.0	%		62.0	%		69.5	%		39.7	%		62.8	%
NONPERFORMING ASSETS BY MARKET
North Georgia	$	12,830		$	1,617		$	14,447		$	63,210		$	6,616		$	69,826		$	69,950		$	8,219		$	78,169
Atlanta MSA		3,803			1,197			5,000			17,380			3,524			20,904			18,556			3,442			21,998
North Carolina		6,512			295			6,807			8,519			2,533			11,052			11,014			2,579			13,593
Coastal Georgia		2,588			627			3,215			3,523			1,449			4,972			3,810			1,609			5,419
Gainesville MSA		1,008			-			1,008			911			370			1,281			903			556			1,459
East Tennessee		1,123			200			1,323			2,463			2,242			4,705			5,661			1,859			7,520
South Carolina		-			-			-			-			-			-			-			-			-
Other (3)		-			-			-			-			-			-			-			-			-
Total NPAs	$	27,864		$	3,936		$	31,800		$	96,006		$	16,734		$	112,740		$	109,894		$	18,264		$	128,158
NONPERFORMING ASSETS ACTIVITY
Beginning Balance	$	96,006		$	16,734		$	112,740		$	109,894		$	18,264		$	128,158		$	115,001		$	26,958		$	141,959
Loans placed on non-accrual		13,200			-			13,200			9,665			-			9,665			20,211			-			20,211
Payments received		(47,937	)		-			(47,937	)		(6,809	)		-			(6,809	)		(6,458	)		-			(6,458	)
Loan charge-offs		(23,972	)		-			(23,972	)		(10,456	)		-			(10,456	)		(11,722	)		-			(11,722	)
Foreclosures		(9,433	)		9,433			-			(6,288	)		6,288			-			(7,138	)		7,138			-
Capitalized costs		-			55			55			-			54			54			-			201			201
Property sales		-			(17,972	)		(17,972	)		-			(6,726	)		(6,726	)		-			(12,845	)		(12,845	)
Write downs		-			(1,369	)		(1,369	)		-			(1,041	)		(1,041	)		-			(1,438	)		(1,438	)
Net losses on sales		-			(2,945	)		(2,945	)		-			(105	)		(105	)		-			(1,750	)		(1,750	)
Ending Balance	$	27,864		$	3,936		$	31,800		$	96,006		$	16,734		$	112,740		$	109,894		$	18,264		$	128,158

	Second Quarter 2013					First Quarter 2013						Fourth Quarter 2012
			Net Charge-						Net Charge-					Net Charge-
			Offs to						Offs to					Offs to
	Net		Average			Net			Average			Net		Average
(in thousands)	Charge-Offs		Loans (2)			Charge-Offs			Loans (2)			Charge-Offs		Loans (2)
NET CHARGE-OFFS BY CATEGORY
Owner occupied CRE	$	16,545		5.85	%	$	1,922			.69	%	$	4,997		1.76	%
Income producing CRE		8,921		5.45			3,321			1.99			1,153		.67
Commercial & industrial		15,576		13.91			1,501			1.34			135		.12
Commercial construction		6,295		17.53			(4	)		(.01	)		1,688		4.25
Total commercial		47,337		7.96			6,740			1.14			7,973		1.30
Residential mortgage		5,469		2.52			1,635			.79			3,254		1.55
Home equity lines of credit		1,040		1.04			512			.53			445		.49
Residential construction		18,506		20.91			2,973			3.22			2,435		2.52
Consumer installment		56		.10			524			1.35			398		1.10
Total	$	72,408		6.87		$	12,384			1.21		$	14,505		1.39
NET CHARGE-OFFS BY MARKET
North Georgia	$	59,102		17.20	%	$	4,868			1.45	%	$	4,458		1.29	%
Atlanta MSA		9,986		3.21			3,295			1.07			3,977		1.27
North Carolina		1,952		1.36			2,249			1.59			2,032		1.39
Coastal Georgia		480		.49			821			.85			574		.60
Gainesville MSA		123		.19			430			.67			1,331		2.04
East Tennessee		711		1.01			679			.98			2,117		2.98
South Carolina		-		-			-			-			-		-
Other (3)		54		.24			42			.39			16		.19
Total	$	72,408		6.87		$	12,384			1.21		$	14,505		1.39

(1)    Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.

(2)    Annualized.

(3)    Includes purchased indirect auto loans that are not assigned to a geographic region.

UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Operations (Unaudited)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands, except per share data)	2013			2012			2013			2012
Interest revenue:
Loans, including fees	$	50,728		$	54,178		$	101,662		$	109,937
Investment securities, including tax exempt of $210, $262, $422 and $512		9,681			11,062			19,646			24,066
Deposits in banks and short-term investments		916			1,096			1,786			2,108
Total interest revenue		61,325			66,336			123,094			136,111
Interest expense:
Deposits:
NOW		419			503			873			1,140
Money market		534			661			1,096			1,302
Savings		36			38			72			75
Time		2,924			5,073			6,150			11,232
Total deposit interest expense		3,913			6,275			8,191			13,749
Short-term borrowings		522			904			1,038			1,949
Federal Home Loan Bank advances		30			390			49			856
Long-term debt		2,666			2,375			5,328			4,747
Total interest expense		7,131			9,944			14,606			21,301
Net interest revenue		54,194			56,392			108,488			114,810
Provision for loan losses		48,500			18,000			59,500			33,000
Net interest revenue after provision for loan losses		5,694			38,392			48,988			81,810
Fee revenue:
Service charges and fees		7,972			7,816			15,375			15,599
Mortgage loan and other related fees		3,003			2,322			5,658			4,421
Brokerage fees		1,063			809			1,830			1,622
Securities gains, net		-			6,490			116			7,047
Loss from prepayment of debt		-			(6,199	)		-			(6,681	)
Other		4,274			1,629			6,159			6,238
Total fee revenue		16,312			12,867			29,138			28,246
Total revenue		22,006			51,259			78,126			110,056
Operating expenses:
Salaries and employee benefits		24,734			24,297			48,326			49,522
Communications and equipment		3,468			3,211			6,514			6,366
Occupancy		3,449			3,539			6,816			7,310
Advertising and public relations		1,037			1,088			1,975			1,934
Postage, printing and supplies		894			916			1,757			1,895
Professional fees		2,499			1,952			4,865			3,927
Foreclosed property		5,151			1,851			7,484			5,676
FDIC assessments and other regulatory charges		2,505			2,545			5,010			5,055
Amortization of intangibles		491			730			1,196			1,462
Other		4,595			4,181			8,650			8,118
Total operating expenses		48,823			44,310			92,593			91,265
Net (loss) income before income taxes		(26,817	)		6,949			(14,467	)		18,791
Income tax (benefit) expense		(256,781	)		450			(256,196	)		764
Net income		229,964			6,499			241,729			18,027
Preferred stock dividends and discount accretion		3,055			3,032			6,107			6,062
Net income available to common shareholders	$	226,909		$	3,467		$	235,622		$	11,965
Earnings per common share - basic / diluted	$	3.90		$	.06		$	4.05		$	.21
Weighted average common shares outstanding - basic / diluted		58,141			57,840			58,111			57,803

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
	June 30,			December 31,			June 30,
(in thousands, except share and per share data)	2013			2012			2012
	(unaudited)			(audited)			(audited)
ASSETS
Cash and due from banks	$	62,564		$	66,536		$	50,596
Interest-bearing deposits in banks		141,016			124,613			133,857
Short-term investments		57,000			60,000			120,000
Cash and cash equivalents		260,580			251,149			304,453
Securities available for sale		1,937,264			1,834,593			1,701,583
Securities held to maturity (fair value $226,695, $261,131 and $299,971)		214,947			244,184			282,750
Mortgage loans held for sale		19,150			28,821			18,645
Loans, net of unearned income		4,189,368			4,175,008			4,119,235
Less allowance for loan losses		(81,845	)		(107,137	)		(112,705	)
Loans, net		4,107,523			4,067,871			4,006,530
Assets covered by loss sharing agreements with the FDIC		35,675			47,467			65,914
Premises and equipment, net		167,197			168,920			172,200
Bank owned life insurance		82,276			81,867			81,265
Accrued interest receivable		19,279			18,659			20,151
Goodwill and other intangible assets		4,315			5,510			6,965
Foreclosed property		3,936			18,264			30,421
Net deferred tax asset		272,287			-			-
Other assets		38,206			34,954			46,229
Total assets	$	7,162,635		$	6,802,259		$	6,737,106
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand	$	1,349,804		$	1,252,605		$	1,150,444
NOW		1,225,664			1,316,453			1,196,507
Money market		1,167,889			1,149,912			1,117,139
Savings		247,821			227,308			219,077
Time:
Less than $100,000		982,009			1,055,271			1,164,451
Greater than $100,000		664,112			705,558			764,343
Brokered		374,530			245,033			210,506
Total deposits		6,011,829			5,952,140			5,822,467
Short-term borrowings		54,163			52,574			53,656
Federal Home Loan Bank advances		70,125			40,125			125,125
Long-term debt		124,845			124,805			120,265
Accrued expenses and other liabilities		72,370			51,210			39,598
Total liabilities		6,333,332			6,220,854			6,161,111
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		179,323			178,557			177,814
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;
43,356,492, 42,423,870 and 41,726,509 shares issued and outstanding		43,356			42,424			41,727
Common stock, non-voting, $1 par value; 30,000,000 shares authorized;
14,474,810, 15,316,794 and 15,914,209 shares issued and outstanding		14,475			15,317			15,914
Common stock issuable; 271,215, 133,238 and 94,657 shares		4,705			3,119			2,893
Capital surplus		1,057,931			1,057,951			1,056,819
Accumulated deficit		(473,531	)		(709,153	)		(718,896	)
Accumulated other comprehensive loss		(13,786	)		(23,640	)		(17,106	)
Total shareholders’ equity		829,303			581,405			575,995
Total liabilities and shareholders’ equity	$	7,162,635		$	6,802,259		$	6,737,106

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended June 30,
	2013									2012
	Average						Avg.			Average					Avg.
(dollars in thousands, taxable equivalent)	Balance			Interest			Rate			Balance			Interest		Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2)	$	4,253,361		$	50,806			4.79	%	$	4,155,619		$	54,296		5.25	%
Taxable securities (3)		2,139,221			9,471			1.77			2,121,053			10,800		2.04
Tax-exempt securities (1)(3)		21,597			344			6.37			24,242			429		7.08
Federal funds sold and other interest-earning assets		193,370			1,072			2.22			364,099			1,255		1.38
Total interest-earning assets		6,607,549			61,693			3.74			6,665,013			66,780		4.03
Non-interest-earning assets:
Allowance for loan losses		(106,417	)								(115,955	)
Cash and due from banks		63,457									51,907
Premises and equipment		168,272									173,792
Other assets (3)		181,987									218,347
Total assets	$	6,914,848								$	6,993,104
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,245,301			419			.13		$	1,279,686			503		.16
Money market		1,306,522			534			.16			1,132,548			661		.23
Savings		245,211			36			.06			216,175			38		.07
Time less than $100,000		1,000,511			1,568			.63			1,183,845			2,520		.86
Time greater than $100,000		674,200			1,380			.82			778,477			2,063		1.07
Brokered time deposits		195,182			(24	)		(.05	)		150,449			490		1.31
Total interest-bearing deposits		4,666,927			3,913			.34			4,741,180			6,275		.53
Federal funds purchased and other borrowings		72,139			522			2.90			97,134			904		3.74
Federal Home Loan Bank advances		58,916			30			.20			278,971			390		.56
Long-term debt		124,838			2,666			8.57			120,256			2,375		7.94
Total borrowed funds		255,893			3,218			5.04			496,361			3,669		2.97
Total interest-bearing liabilities		4,922,820			7,131			.58			5,237,541			9,944		.76
Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,315,812									1,112,128
Other liabilities		40,603									60,726
Total liabilities		6,279,235									6,410,395
Shareholders’ equity		635,613									582,709
Total liabilities and shareholders’ equity	$	6,914,848								$	6,993,104
Net interest revenue				$	54,562								$	56,836
Net interest-rate spread								3.16	%							3.27	%
Net interest margin (4)								3.31	%							3.43	%

(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 $17.7 million in 2013 and $25.7 million in 2012 are included in other assets for purposes of this presentation.

(4)    Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Six Months Ended June 30,
	2013									2012
	Average						Avg.			Average					Avg.
(dollars in thousands, taxable equivalent)	Balance			Interest			Rate			Balance			Interest		Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2)	$	4,225,215		$	101,805			4.86	%	$	4,162,030		$	110,138		5.32	%
Taxable securities (3)		2,129,208			19,224			1.81			2,124,422			23,554		2.22
Tax-exempt securities (1)(3)		21,665			691			6.38			24,840			839		6.76
Federal funds sold and other interest-earning assets		201,478			2,107			2.09			371,044			2,470		1.33
Total interest-earning assets		6,577,566			123,827			3.79			6,682,336			137,001		4.12
Non-interest-earning assets:
Allowance for loan losses		(108,667	)								(116,879	)
Cash and due from banks		63,873									53,286
Premises and equipment		168,773									174,321
Other assets (3)		173,168									226,013
Total assets	$	6,874,713								$	7,019,077
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,274,144			873			.14		$	1,368,900			1,140		.17
Money market		1,282,101			1,096			.17			1,101,103			1,302		.24
Savings		239,691			72			.06			210,789			75		.07
Time less than $100,000		1,020,000			3,317			.66			1,227,599			5,546		.91
Time greater than $100,000		684,320			2,857			.84			799,821			4,478		1.13
Brokered time deposits		185,210			(24	)		(.03	)		155,892			1,208		1.56
Total interest-bearing deposits		4,685,466			8,191			.35			4,864,104			13,749		.57
Federal funds purchased and other borrowings		72,148			1,038			2.90			99,696			1,949		3.93
Federal Home Loan Bank advances		46,064			49			.21			208,672			856		.82
Long-term debt		124,827			5,328			8.61			120,246			4,747		7.94
Total borrowed funds		243,039			6,415			5.32			428,614			7,552		3.54
Total interest-bearing liabilities		4,928,505			14,606			.60			5,292,718			21,301		.81
Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,278,875									1,076,358
Other liabilities		55,639									70,330
Total liabilities		6,263,019									6,439,406
Shareholders’ equity		611,694									579,671
Total liabilities and shareholders’ equity	$	6,874,713								$	7,019,077
Net interest revenue				$	109,221								$	115,700
Net interest-rate spread								3.19	%							3.31	%
Net interest margin (4)								3.34	%							3.48	%

(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 $17.4 million in 2013 and $24.7 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.