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 $15.5 MILLION FOR THIRD QUARTER 2013

• Net income of $15.5 million, or 21 cents per share
• Operating efficiency ratio improves to 58.6 percent reflecting lower expenses
• Loans up $78 million, or 7 percent annualized
• Core transaction deposits up $94 million, or 11 percent annualized
• All capital ratios strengthened

BLAIRSVILLE, GA – October 24, 2013 – United Community Banks, Inc. (NASDAQ: UCBI) today reported it continued to achieve substantial momentum in positioning itself to build the long-term value of its franchise. For the third quarter and nine months ended September 30, 2013 net income was $15.5 million, or 21 cents per share, and $257.2 million, or $4.24 per share, respectively. The year-to-date results include the impact of two significant events during the second quarter – the reversal of the valuation allowance on United’s net deferred tax asset and the higher provision for loan losses and foreclosed property costs from the accelerated sales of classified assets.

“I am very pleased with the important progress we are making in growing our business and improving operating efficiency,” said Jimmy Tallent, president and chief executive officer. “We achieved good loan and deposit growth while at the same time lowering operating expenses. This is particularly demonstrated by the improvement in our efficiency ratio to 58.6 percent, the lowest level since 2007. This is a tribute to the great effort of our dedicated team of bankers.”

1

The third quarter provision for loan losses was $3.0 million compared with $48.5 million in the second quarter and $15.5 million in the third quarter of 2012. The second quarter provision was elevated by higher charge-offs associated with the accelerated classified loan sales. The resulting reduction in classified loans led to lower net charge-offs in the third quarter and a lower provision. Third quarter net charge-offs were $4.47 million compared with $72.4 million in the second quarter and $20.6 million a year ago.

Nonperforming assets at quarter-end were $30.6 million, representing .42 percent of total assets, down from $31.8 million or .44 percent of assets at June 30, 2013, and from $142 million or 2.12 percent of assets a year ago. The classified asset ratio, which is the ratio of classified assets to Tier 1 regulatory capital plus the allowance for loan losses, declined to 26 percent from 27 percent at the end of second quarter and 55 percent a year ago.

Third quarter taxable equivalent net interest revenue totaled $54.3 million, down $224,000 from the second quarter and down $3.03 million from the third quarter of 2012. “The decrease generally reflects the ongoing lower yields on our loan and investment securities portfolios,” said Tallent. “The lower loan portfolio yield reflects competitive pricing pressure on new and renewed commercial loans and on new retail loan offerings with low introductory rates. Introductory rates on $45 million of these retail loans rolled over to a market rate of prime-plus in the third quarter with another $40 million due to reset to market rates in the fourth quarter. The lower investment securities yield compared to a year ago is due to reinvestment of cash flows at record low rates. We continue to look for reinvestment opportunities to alleviate market and duration risk. Our focus has been on floating-rate securities, which at quarter-end accounted for 39 percent of the total investment securities portfolio, up one percent from last quarter.”

The third quarter taxable equivalent net interest margin was 3.26 percent, down five basis points from the second quarter and 34 basis points from a year ago. “Our margin continues to reflect the unprecedented low interest rate environment,” stated Tallent. “We could see further compression in the near term, though we believe at a slower pace. To offset the impact of a lower margin on net interest revenue, we are concentrating 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.”

2

“Third quarter fee revenue of $14.1 million was down slightly compared to second quarter and up approximately $1.0 million from a year ago when certain non-core items are excluded,” commented Tallent. Second quarter fee revenue of $16.3 million was elevated due to non-core items, which included a $1.37 million recovery on a bank-owned life insurance policy, a $468,000 gain from the sale of low-income housing tax credits, and $369,000 in hedge ineffectiveness gains. Similarly, year ago fee revenue of $13.8 million included hedge ineffectiveness gains of $608,000.

Service charges and fees on deposit accounts were up $484,000 from the second quarter and up $760,000 from a year ago reflecting strong growth in debit card interchange fees. Brokerage fees were up $211,000 from the second quarter and up $565,000 from a year ago, which shows a renewed focus on this line of business. Mortgage fees were down $449,000 from the second quarter and down $246,000 from a year ago reflecting slower mortgage refinancing activity resulting from rising long-term interest rates. Closed mortgage loans totaled $76.6 million in the third quarter compared with $95.2 million in the second quarter and $107.9 million in the third quarter of 2012.

Operating expenses, excluding foreclosed property costs, were $39.9 million for the third quarter compared to $43.7 million in the second quarter of 2013 and $41.1 million a year ago. The decrease from both periods reflects a reduction in loan workouts and collections costs as well as lower severance costs. Third quarter severance costs were $405,000 compared with $1.56 million and $401,000 for the second quarter of 2013 and the third quarter of 2012, respectively.

3

Foreclosed property costs were $194,000 in the third quarter compared to $5.15 million in the second quarter and $3.71 million a year ago. The higher second quarter costs reflect $4.31 million in net losses and write-downs related to the accelerated foreclosed property sales and $837,000 for maintenance. The third quarter 2012 foreclosed property costs included $2.74 million in net losses and write-downs and $962,000 for maintenance.

“The effective tax rate for the third quarter was elevated from 35 percent to 38 percent by a $.6 million net charge to tax expense,” stated Tallent. “The net charge reflects a state income tax rate reduction in North Carolina that lowered the rate at which a portion of our net deferred tax asset will be recovered. The resulting charge was partially offset by the release of tax reserves for tax returns that had expired.”

As of September 30, 2013, capital ratios were as follows: Tier 1 Risk-Based of 14.2 percent; Total Risk-Based of 15.5 percent; Tier 1 Common Risk-Based of 9.1 percent; and Tangible Equity-to-Assets of 9.0 percent. The Tier 1 Leverage ratio was 10.0 percent.

Tallent concluded, “Going forward, we are focused strategically on loan and fee-based service growth in existing and newer markets to provide United with further momentum in building its value to our shareholders. We are looking ahead with confidence driven by our progress, our business opportunities and the best customer satisfaction in our industry.”

Conference Call

United will hold a conference call today, Thursday, October 24, 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 76304427. 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.

4

Safe Harbor

This news release contains forward-looking statements, as defined by federal securities laws, including statements about United’s financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United’s filings with the Securities and Exchange Commission including its 2012 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the second quarter of 2013 under the sections entitled “Forward-Looking Statements” and “Risk Factors.” Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.

# # #

5

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
	2013									2012						Third Quarter			For the Nine Months Ended						YTD
(in thousands, except per share	Third			Second			First			Fourth			Third			2013-2012			September 30,						2013-2012
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			Change			2013			2012			Change
INCOME SUMMARY
Interest revenue	$	61,363		$	61,693		$	62,134		$	64,450		$	65,978					$	185,190		$	202,979
Interest expense		7,025			7,131			7,475			8,422			8,607						21,631			29,908
Net interest revenue		54,338			54,562			54,659			56,028			57,371			(5	)%		163,559			173,071			(5	)%
Provision for loan losses		3,000			48,500			11,000			14,000			15,500						62,500			48,500
Fee revenue		14,144			16,312			12,826			14,761			13,764			3			43,282			42,010			3
Total revenue		65,482			22,374			56,485			56,789			55,635						144,341			166,581
Operating expenses		40,097			48,823			43,770			50,726			44,783			(10	)		132,690			136,048			(2	)
Income (loss) before income taxes		25,385			(26,449	)		12,715			6,063			10,852			134			11,651			30,533			(62	)
Income tax expense (benefit)		9,885			(256,413	)		950			802			284						(245,578	)		1,938
Net income		15,500			229,964			11,765			5,261			10,568			47			257,229			28,595			800
Preferred dividends and discount accretion		3,059			3,055			3,052			3,045			3,041						9,166			9,103
Net income available to common     shareholders	$	12,441		$	226,909		$	8,713		$	2,216		$	7,527			65		$	248,063		$	19,492			1,173
PERFORMANCE MEASURES
Per common share:
Diluted income	$	.21		$	3.90		$	.15		$	.04		$	.13			62		$	4.24		$	.34			1,147
Book value		10.99			10.90			6.85			6.67			6.75			63			10.99			6.75	%		63
Tangible book value (2)		10.95			10.82			6.76			6.57			6.64			65			10.95			6.64			65
Key performance ratios:
Return on equity (1)(3)		7.38	%		197.22	%		8.51	%		2.15	%		7.43	%					64.29	%		6.57
Return on assets (3)		.86			13.34			.70			.31			.63						4.93			.53
Net interest margin (3)		3.26			3.31			3.38			3.44			3.60						3.32			3.52				%
Efficiency ratio		58.55			68.89			64.97			71.69			62.95						64.19			63.36
Equity to assets		11.80			11.57	(4)		8.60			8.63			8.75						9.91			8.42
Tangible equity to assets (2)		11.76			11.53	(4)		8.53			8.55			8.66						9.85			8.32
Tangible common equity to assets (2)		9.02			8.79	(4)		5.66			5.67			5.73						7.04			5.50
Tangible common equity to risk-         weighted assets (2)		13.34			13.16			8.45			8.26			8.44						13.34			8.44
ASSET QUALITY *
Non-performing loans	$	26,088		$	27,864		$	96,006		$	109,894		$	115,001					$	26,088		$	115,001
Foreclosed properties		4,467			3,936			16,734			18,264			26,958						4,467			26,958
Total non-performing assets (NPAs)		30,555			31,800			112,740			128,158			141,959						30,555			141,959
Allowance for loan losses		80,372			81,845			105,753			107,137			107,642						80,372			107,642
Net charge-offs		4,473			72,408			12,384			14,505			20,563						89,265			55,326
Allowance for loan losses to loans		1.88	%		1.95	%		2.52	%		2.57	%		2.60	%					1.88	%		2.60	%
Net charge-offs to average loans (3)		.42			6.87			1.21			1.39			1.99						2.84			1.80
NPAs to loans and foreclosed properties		.72			.76			2.68			3.06			3.41						.72			3.41
NPAs to total assets		.42			.44			1.65			1.88			2.12						.42			2.12
AVERAGE BALANCES ($ in millions)
Loans	$	4,250		$	4,253		$	4,197		$	4,191		$	4,147			2		$	4,234		$	4,157			2
Investment securities		2,178			2,161			2,141			2,088			1,971			11			2,160			2,089			3
Earning assets		6,615			6,608			6,547			6,482			6,346			4			6,590			6,569			-
Total assets		7,170			6,915			6,834			6,778			6,648			8			6,974			6,894			1
Deposits		5,987			5,983			5,946			5,873			5,789			3			5,972			5,890			1
Shareholders’ equity		846			636			588			585			582			45			691			580			19
Common shares - basic (thousands)		59,100			58,141			58,081			57,971			57,880						58,443			57,826
Common shares - diluted (thousands)		59,202			58,141			58,081			57,971			57,880						58,444			57,826
AT PERIOD END ($ in millions)
Loans *	$	4,267		$	4,189		$	4,194		$	4,175		$	4,138			3		$	4,267		$	4,138			3
Investment securities		2,169			2,152			2,141			2,079			2,025			7			2,169			2,025			7
Total assets		7,243			7,163			6,849			6,802			6,699			8			7,243			6,699			8
Deposits		6,113			6,012			6,026			5,952			5,823			5			6,113			5,823			5
Shareholders’ equity		852			829			592			581			585			46			852			585			46
Common shares outstanding (thousands)		59,412			57,831			57,767			57,741			57,710						59,412			57,710
(1)  Net income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss).
(2)  Excludes effect of acquisition related intangibles and associated amortization.
(3)  Annualized.
(4)  Calculated as of period-end.
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
	2013									2012						For the Nine Months
(in thousands, except per share	Third			Second			First			Fourth			Third			Ended September 30,
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			2013				2012
Interest revenue reconciliation
Interest revenue - taxable equivalent	$	61,363		$	61,693		$	62,134		$	64,450		$	65,978		$	185,190			$	202,979
Taxable equivalent adjustment		(370	)		(368	)		(365	)		(381	)		(419	)		(1,103	)			(1,309	)
Interest revenue (GAAP)	$	60,993		$	61,325		$	61,769		$	64,069		$	65,559		$	184,087			$	201,670
Net interest revenue reconciliation
Net interest revenue - taxable equivalent	$	54,338		$	54,562		$	54,659		$	56,028		$	57,371		$	163,559			$	173,071
Taxable equivalent adjustment		(370	)		(368	)		(365	)		(381	)		(419	)		(1,103	)			(1,309	)
Net interest revenue (GAAP)	$	53,968		$	54,194		$	54,294		$	55,647		$	56,952		$	162,456			$	171,762
Total revenue reconciliation
Total operating revenue	$	65,482		$	22,374		$	56,485		$	56,789		$	55,635		$	144,341			$	166,581
Taxable equivalent adjustment		(370	)		(368	)		(365	)		(381	)		(419	)		(1,103	)			(1,309	)
Total revenue (GAAP)	$	65,112		$	22,006		$	56,120		$	56,408		$	55,216		$	143,238			$	165,272
Income (loss) before taxes reconciliation																			��
Income (loss) before taxes	$	25,385		$	(26,449	)	$	12,715		$	6,063		$	10,852		$	11,651			$	30,533
Taxable equivalent adjustment		(370	)		(368	)		(365	)		(381	)		(419	)		(1,103	)			(1,309	)
Income (loss) before taxes (GAAP)	$	25,015		$	(26,817	)	$	12,350		$	5,682		$	10,433		$	10,548			$	29,224
Income tax expense (benefit) reconciliation
Income tax expense (benefit)	$	9,885		$	(256,413	)	$	950		$	802		$	284		$	(245,578	)		$	1,938
Taxable equivalent adjustment		(370	)		(368	)		(365	)		(381	)		(419	)		(1,103	)			(1,309	)
Income tax expense (benefit) (GAAP)	$	9,515		$	(256,781	)	$	585		$	421		$	(135	)	$	(246,681	)		$	629
Book value per common share reconciliation
Tangible book value per common share	$	10.95		$	10.82		$	6.76		$	6.57		$	6.64		$	10.95			$	6.64
Effect of goodwill and other intangibles		.04			.08			.09			.10			.11			.04				.11
Book value per common share (GAAP)	$	10.99		$	10.90		$	6.85		$	6.67		$	6.75		$	10.99			$	6.75
Average equity to assets reconciliation
Tangible common equity to assets		9.02	%		8.79	%		5.66	%		5.67	%		5.73	%		7.04	%			5.50	%
Effect of preferred equity		2.74			2.74			2.87			2.88			2.93			2.81				2.82
Tangible equity to assets		11.76			11.53			8.53			8.55			8.66			9.85				8.32
Effect of goodwill and other intangibles		.04			.04			.07			.08			.09			.06				.10
Equity to assets (GAAP)		11.80	%		11.57	%		8.60	%		8.63	%		8.75	%		9.91	%			8.42	%
Tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets		13.34	%		13.16	%		8.45	%		8.26	%		8.44	%		13.34	%			8.44	%
Effect of other comprehensive income		.49			.29			.49			.51			.36			.49				.36
Effect of deferred tax limitation		(4.72	)		(4.99	)		—			—			—			(4.72	)			—
Effect of trust preferred		1.09			1.11			1.15			1.15			1.17			1.09				1.17
Effect of preferred equity		4.01			4.11			4.22			4.24			4.29			4.01				4.29
Tier I capital ratio (Regulatory)		14.21	%		13.68	%		14.31	%		14.16	%		14.26	%		14.21	%			14.26	%

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End(1)
	2013						2012				Linked			Year over
		Third		Second		First		Fourth		Third	Quarter			Year
(in millions)		Quarter		Quarter		Quarter		Quarter		Quarter	Change			Change
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,129	$	1,119	$	1,130	$	1,131	$	1,126	$	10		$	3
Income producing commercial RE		614		629		674		682		693		(15	)		(79	)
Commercial & industrial		457		437		454		458		460		20			(3	)
Commercial construction		137		133		152		155		161		4			(24	)
Total commercial		2,337		2,318		2,410		2,426		2,440		19			(103	)
Residential mortgage		888		876		850		829		833		12			55
Home equity lines of credit		421		402		396		385		341		19			80
Residential construction		318		332		372		382		389		(14	)		(71	)
Consumer installment		303		261		166		153		135		42			168
Total loans	$	4,267	$	4,189	$	4,194	$	4,175	$	4,138		78			129
LOANS BY MARKET
North Georgia	$	1,262	$	1,265	$	1,363	$	1,364	$	1,383		(3	)		(121	)
Atlanta MSA		1,246		1,227		1,262		1,250		1,238		19			8
North Carolina		575		576		575		579		579		(1	)		(4	)
Coastal Georgia		421		397		398		400		380		24			41
Gainesville MSA		253		256		259		261		256		(3	)		(3	)
East Tennessee		277		282		282		283		283		(5	)		(6	)
South Carolina		47		34		—		—		—		13			47
Other (2)		186		152		55		38		19		34			167
Total loans	$	4,267	$	4,189	$	4,194	$	4,175	$	4,138		78			129
RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development	$	40	$	42	$	57	$	62	$	71		(2	)		(31	)
Land loans		35		36		42		46		41		(1	)		(6	)
Lot loans		167		173		188		193		196		(6	)		(29	)
Total		242		251		287		301		308		(9	)		(66	)
House loans
Spec		30		34		40		41		44		(4	)		(14	)
Sold		46		47		45		40		37		(1	)		9
Total		76		81		85		81		81		(5	)		(5	)
Total residential construction	$	318	$	332	$	372	$	382	$	389		(14	)		(71	)
(1)  Excludes total loans of $23.3 million, $25.7 million, $28.3 million, $33.4 million and $37.0 million as of September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012 and September 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)
	Third Quarter 2013									Second Quarter 2013									First Quarter 2013
	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	$	6,358		$	591		$	6,949		$	5,283		$	547		$	5,830		$	8,142		$	4,750		$	12,892
Income producing CRE		1,657			139			1,796			1,954			—			1,954			9,162			834			9,996
Commercial & industrial		609			—			609			548			—			548			29,545			—			29,545
Commercial construction		343			376			719			504			376			880			22,359			3,027			25,386
Total commercial		8,967			1,106			10,073			8,289			923			9,212			69,208			8,611			77,819
Residential mortgage		11,335			1,679			13,014			12,847			1,303			14,150			10,901			3,463			14,364
Home equity lines of credit		1,169			475			1,644			1,491			140			1,631			916			—			916
Residential construction		4,097			1,207			5,304			4,838			1,570			6,408			14,592			4,660			19,252
Consumer installment		520			—			520			399			—			399			389			—			389
Total NPAs	$	26,088		$	4,467		$	30,555		$	27,864		$	3,936		$	31,800		$	96,006		$	16,734		$	112,740
Balance as a % of
Unpaid Principal		61.6	%		41.5	%		57.6	%		62.6	%		31.6	%		55.8	%		66.3	%		45.0	%		62.0	%
NONPERFORMING ASSETS BY MARKET
North Georgia	$	13,652		$	1,726		$	15,378		$	12,830		$	1,617		$	14,447		$	63,210		$	6,616		$	69,826
Atlanta MSA		3,096			1,026			4,122			3,803			1,197			5,000			17,380			3,524			20,904
North Carolina		5,680			762			6,442			6,512			295			6,807			8,519			2,533			11,052
Coastal Georgia		995			928			1,923			2,588			627			3,215			3,523			1,449			4,972
Gainesville MSA		1,036			—			1,036			1,008			—			1,008			911			370			1,281
East Tennessee		1,629			25			1,654			1,123			200			1,323			2,463			2,242			4,705
South Carolina		—			—			—			—			—			—			—			—			—
Other (3)		—			—			—			—			—			—			—			—			—
Total NPAs	$	26,088		$	4,467		$	30,555		$	27,864		$	3,936		$	31,800		$	96,006		$	16,734		$	112,740
NONPERFORMING ASSETS ACTIVITY
Beginning Balance	$	27,864		$	3,936		$	31,800		$	96,006		$	16,734		$	112,740		$	109,894		$	18,264		$	128,158
Loans placed on non-accrual		9,959			—			9,959			13,200			—			13,200			9,665			—			9,665
Payments received		(3,601	)		—			(3,601	)		(47,937	)		—			(47,937	)		(6,809	)		—			(6,809	)
Loan charge-offs		(5,395	)		—			(5,395	)		(23,972	)		—			(23,972	)		(10,456	)		—			(10,456	)
Foreclosures		(2,739	)		2,739			—			(9,433	)		9,433			—			(6,288	)		6,288			—
Capitalized costs		—			7			7			—			55			55			—			54			54
Property sales		—			(2,534	)		(2,534	)		—			(17,972	)		(17,972	)		—			(6,726	)		(6,726	)
Write downs		—			(329	)		(329	)		—			(1,369	)		(1,369	)		—			(1,041	)		(1,041	)
Net gains (losses) on sales		—			648			648			—			(2,945	)		(2,945	)		—			(105	)		(105	)
Ending Balance	$	26,088		$	4,467		$	30,555		$	27,864		$	3,936		$	31,800		$	96,006		$	16,734		$	112,740

	Third Quarter 2013					Second Quarter 2013					First Quarter 2013
			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	$	1,641		.58	%	$	16,545		5.85	%	$	1,922			.69	%
Income producing CRE		216		.14			8,921		5.45			3,321			1.99
Commercial & industrial		136		.12			15,576		13.91			1,501			1.34
Commercial construction		133		.39			6,295		17.53			(4	)		(.01	)
Total commercial		2,126		.36			47,337		7.96			6,740			1.14
Residential mortgage		693		.31			5,469		2.52			1,635			.79
Home equity lines of credit		382		.37			1,040		1.04			512			.53
Residential construction		1,072		1.31			18,506		20.91			2,973			3.22
Consumer installment		200		.28			56		.10			524			1.35
Total	$	4,473		.42		$	72,408		6.87		$	12,384			1.21
NET CHARGE-OFFS BY MARKET
North Georgia	$	2,090		.66	%	$	59,102		17.20	%	$	4,868			1.45	%
Atlanta MSA		1,013		.33			9,986		3.21			3,295			1.07
North Carolina		704		.49			1,952		1.36			2,249			1.59
Coastal Georgia		139		.14			480		.49			821			.85
Gainesville MSA		97		.15			123		.19			430			.67
East Tennessee		359		.51			711		1.01			679			.98
South Carolina		—		—			—		—			—			—
Other(3)		71		.17			54		.24			42			.39
Total	$	4,473		.42		$	72,408		6.87		$	12,384			1.21

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

⁽²⁾  Annualized.

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

UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(in thousands, except per share data)	2013		2012			2013			2012
Interest revenue:
Loans, including fees	$	50,114	$	53,868		$	151,776		$	163,805
Investment securities, including tax exempt of $202, $225, $624 and $737		9,872		10,706			29,518			34,772
Deposits in banks and short-term investments		1,007		985			2,793			3,093
Total interest revenue		60,993		65,559			184,087			201,670
Interest expense:
Deposits:
NOW		413		447			1,286			1,587
Money market		545		599			1,641			1,901
Savings		37		37			109			112
Time		2,486		4,612			8,636			15,844
Total deposit interest expense		3,481		5,695			11,672			19,444
Short-term borrowings		525		514			1,563			2,463
Federal Home Loan Bank advances		16		26			65			882
Long-term debt		3,003		2,372			8,331			7,119
Total interest expense		7,025		8,607			21,631			29,908
Net interest revenue		53,968		56,952			162,456			171,762
Provision for loan losses		3,000		15,500			62,500			48,500
Net interest revenue after provision for loan losses		50,968		41,452			99,956			123,262
Fee revenue:
Service charges and fees		8,456		7,696			23,831			23,295
Mortgage loan and other related fees		2,554		2,800			8,212			7,221
Brokerage fees		1,274		709			3,104			2,331
Securities gains, net		—		—			116			7,047
Loss from prepayment of debt		—		—			—			(6,681	)
Other		1,860		2,559			8,019			8,797
Total fee revenue		14,144		13,764			43,282			42,010
Total revenue		65,112		55,216			143,238			165,272
Operating expenses:
Salaries and employee benefits		23,090		22,918			71,416			72,440
Communications and equipment		3,305		3,254			9,819			9,620
Occupancy		3,379		3,539			10,195			10,849
Advertising and public relations		962		934			2,937			2,868
Postage, printing and supplies		644		954			2,401			2,849
Professional fees		2,650		2,180			7,515			6,107
Foreclosed property		194		3,706			7,678			9,382
FDIC assessments and other regulatory charges		2,405		2,537			7,415			7,592
Amortization of intangibles		427		728			1,623			2,190
Other		3,041		4,033			11,691			12,151
Total operating expenses		40,097		44,783			132,690			136,048
Net income before income taxes		25,015		10,433			10,548			29,224
Income tax expense (benefit)		9,515		(135	)		(246,681	)		629
Net income		15,500		10,568			257,229			28,595
Preferred stock dividends and discount accretion		3,059		3,041			9,166			9,103
Net income available to common shareholders	$	12,441	$	7,527		$	248,063		$	19,492
Earnings per common share
Basic	$	.21	$	.13		$	4.24		$	.34
Diluted		.21		.13			4.24			.34
Weighted average common shares outstanding
Basic		59,100		57,880			58,443			57,826
Diluted		59,202		57,880			58,444			57,826

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
	September 30,			December 31,			September 30,
(in thousands, except share and per share data)	2013			2012			2012
	(unaudited)			(audited)			(audited)
ASSETS
Cash and due from banks	$	70,986		$	66,536		$	57,270
Interest-bearing deposits in banks		131,147			124,613			119,355
Short-term investments		62,000			60,000			45,000
Cash and cash equivalents		264,133			251,149			221,625
Securities available for sale		1,963,424			1,834,593			1,761,994
Securities held to maturity (fair value $214,651, $261,131 and $281,336)		205,613			244,184			262,648
Mortgage loans held for sale		11,987			28,821			30,571
Loans, net of unearned income		4,267,067			4,175,008			4,137,845
Less allowance for loan losses		(80,372	)		(107,137	)		(107,642	)
Loans, net		4,186,695			4,067,871			4,030,203
Assets covered by loss sharing agreements with the FDIC		31,207			47,467			53,070
Premises and equipment, net		165,993			168,920			170,532
Bank owned life insurance		80,537			81,867			81,574
Accrued interest receivable		18,199			18,659			19,133
Goodwill and other intangible assets		3,888			5,510			6,237
Foreclosed property		4,467			18,264			26,958
Net deferred tax asset		269,784			—			—
Other assets		37,366			34,954			34,690
Total assets	$	7,243,293		$	6,802,259		$	6,699,235
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand	$	1,418,782		$	1,252,605		$	1,210,703
NOW		1,279,134			1,316,453			1,184,341
Money market		1,197,495			1,149,912			1,126,312
Savings		249,044			227,308			222,431
Time:
Less than $100,000		925,089			1,055,271			1,123,672
Greater than $100,000		624,019			705,558			731,766
Brokered		419,344			245,033			223,474
Total deposits		6,112,907			5,952,140			5,822,699
Short-term borrowings		53,769			52,574			53,243
Federal Home Loan Bank advances		125			40,125			50,125
Long-term debt		129,865			124,805			120,285
Unsettled securities purchases		11,610			—			24,319
Accrued expenses and other liabilities		82,800			51,210			43,309
Total liabilities		6,391,076			6,220,854			6,113,980
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		179,714			178,557			178,183
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;
45,222,839, 42,423,870 and 42,393,319 shares issued and outstanding		45,223			42,424			42,393
Common stock, non-voting, $1 par value; 30,000,000 shares authorized;
14,189,006, 15,316,794 and 15,316,794 shares issued and outstanding		14,189			15,317			15,317
Common stock issuable; 242,262, 133,238 and 129,270 shares		3,979			3,119			3,247
Capital surplus		1,077,536			1,057,951			1,056,998
Accumulated deficit		(461,090	)		(709,153	)		(711,369	)
Accumulated other comprehensive loss		(24,164	)		(23,640	)		(16,344	)
Total shareholders' equity		852,217			581,405			585,255
Total liabilities and shareholders' equity	$	7,243,293		$	6,802,259		$	6,699,235

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended September 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)	$	4,249,892		$	50,217		4.69	%	$	4,147,220		$	53,963	5.18	%
Taxable securities (3)		2,157,448			9,670		1.79			1,947,780			10,481	2.15
Tax-exempt securities (1)(3)		20,913			331		6.32			22,895			368	6.43
Federal funds sold and other interest-earning assets		186,544			1,145		2.46			227,950			1,166	2.05
Total interest-earning assets		6,614,797			61,363		3.69			6,345,845			65,978	4.14
Non-interest-earning assets:
Allowance for loan losses		(83,408	)							(112,034	)
Cash and due from banks		63,890								51,705
Premises and equipment		166,906								171,608
Other assets (3)		407,912								190,439
Total assets	$	7,170,097							$	6,647,563
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,222,334			413		.13		$	1,176,087			447	.15
Money market		1,328,661			545		.16			1,157,655			599	.21
Savings		248,937			37		.06			221,186			37	.07
Time less than $100,000		952,320			1,369		.57			1,144,103			2,260	.79
Time greater than $100,000		644,264			1,229		.76			750,828			1,876	.99
Brokered time deposits		233,842			(112	)	(.19	)		176,114			476	1.08
Total interest-bearing deposits		4,630,358			3,481		.30			4,625,973			5,695	.49
Federal funds purchased and other borrowings		67,292			525		3.10			55,994			514	3.65
Federal Home Loan Bank advances		32,082			16		.20			44,473			26	.23
Long-term debt		144,601			3,003		8.24			120,276			2,372	7.85
Total borrowed funds		243,975			3,544		5.76			220,743			2,912	5.25
Total interest-bearing liabilities		4,874,333			7,025		.57			4,846,716			8,607	.71
Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,356,792								1,163,471
Other liabilities		93,247								55,607
Total liabilities		6,324,372								6,065,794
Shareholders' equity		845,725								581,769
Total liabilities and shareholders' equity	$	7,170,097							$	6,647,563
Net interest revenue				$	54,338							$	57,371
Net interest-rate spread							3.12	%						3.43	%
Net interest margin (4)							3.26	%						3.60	%

(1)	Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans.  The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2)	Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
(3)	Securities available for sale are shown at amortized cost.  Pretax unrealized losses of $10.6 million in 2013 and pretax unrealized gains of $22.9 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 Nine Months Ended September 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)	$	4,233,531		$	152,022		4.80	%	$	4,157,057		$	164,101	5.27	%
Taxable securities (3)		2,138,725			28,894		1.80			2,065,112			34,035	2.20
Tax-exempt securities (1)(3)		21,411			1,022		6.36			24,187			1,207	6.65
Federal funds sold and other interest-earning assets		196,445			3,252		2.21			322,998			3,636	1.50
Total interest-earning assets		6,590,112			185,190		3.76			6,569,354			202,979	4.13
Non-interest-earning assets:
Allowance for loan losses		(100,154	)							(115,252	)
Cash and due from banks		63,879								52,755
Premises and equipment		168,144								173,410
Other assets (3)		252,275								214,068
Total assets	$	6,974,256							$	6,894,335
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,256,684			1,286		.14		$	1,304,159			1,587	.16
Money market		1,297,792			1,641		.17			1,120,091			1,901	.23
Savings		242,807			109		.06			214,280			112	.07
Time less than $100,000		997,193			4,686		.63			1,199,563			7,806	.87
Time greater than $100,000		670,821			4,086		.81			783,370			6,354	1.08
Brokered time deposits		201,599			(136	)	(.09	)		162,682			1,684	1.38
Total interest-bearing deposits		4,666,896			11,672		.33			4,784,145			19,444	.54
Federal funds purchased and other borrowings		70,512			1,563		2.96			85,022			2,463	3.87
Federal Home Loan Bank advances		41,352			65		.21			153,539			882	.77
Long-term debt		131,491			8,331		8.47			120,256			7,119	7.91
Total borrowed funds		243,355			9,959		5.47			358,817			10,464	3.90
Total interest-bearing liabilities		4,910,251			21,631		.59			5,142,962			29,908	.78
Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,305,133								1,105,607
Other liabilities		68,312								65,390
Total liabilities		6,283,696								6,313,959
Shareholders' equity		690,560								580,376
Total liabilities and shareholders' equity	$	6,974,256							$	6,894,335
Net interest revenue				$	163,559							$	173,071
Net interest-rate spread							3.17	%						3.35	%
Net interest margin (4)							3.32	%						3.52	%

(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 $7.96 million in 2013 and pretax unrealized gains of $24.1 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.