United Community Banks, Inc. Reports Earnings of $16.4 Million for Second Quarter 2014

BLAIRSVILLE, GA --(Marketwired - July 24, 2014) - United Community Banks, Inc. ( UCBI )

• Earnings per diluted share of 27 cents, up 8 percent from first quarter

• Loans up $54 million, or 5 percent annualized

• Core transaction deposits up $52 million, or 6 percent annualized

• SBA lending team added to expand business

United Community Banks, Inc.  ( UCBI )  ("United") today reported net income of $16.4 million, or 27 cents per diluted share, for the second quarter of 2014. Earnings per share were up 8 percent from the first quarter, reflecting growth in net interest revenue and fee revenue, a lower provision for loan losses and the elimination of preferred stock dividends. For the first six months, United reported net income of $31.8 million, or 52 cents per diluted share.

"I am very pleased with our second quarter progress in growing our business and earnings," said Jimmy Tallent, president and chief executive officer. "We have had four consecutive quarters of steady earnings per share growth since the classified asset sales a year ago and are focused on continuing that trend."

Second quarter taxable equivalent net interest revenue totaled $55.0 million, up $781,000 from the first quarter and the same as the second quarter of 2013. The taxable equivalent net interest margin was 3.21 percent, equal to the first quarter and down 12 basis points from a year ago.

"Preserving our net interest margin and growing net interest revenue while also managing our exposure to changes in interest rates are top priorities for continued growth in earnings per share," said Tallent. "We remain sharply focused on growing loans and core deposits to increase net interest revenue. During the second quarter we completed certain balance sheet restructuring activities that included the reduction/restructuring of the securities portfolio, interest rate hedges and wholesale borrowings. The consequential changes in our securities portfolio, wholesale borrowings and interest rate hedges allowed us to maintain our margin at 3.21 percent and prevent further margin decline in 2014, while maintaining our interest rate risk and sensitivity levels. We sold $237 million in investment securities at a gain of $4.4 million, which was offset by a similar charge from the repayment of $44 million in costly structured wholesale borrowings."

The second quarter provision for credit losses was $2.2 million, down $300,000 from the first quarter and down $46.3 million from the second quarter of 2013. Second quarter net charge-offs were $4.18 million, compared with $4.04 million in the first quarter and $72.4 million a year ago. Nonperforming assets at quarter-end were $23.7 million, down 23 percent from the first quarter and representing .32 percent of total assets. This compares to .42 percent at the end of the first quarter, and .44 percent at the end of the second quarter of 2013.

Second quarter fee revenue totaled $14.1 million, up $1.97 million from the first quarter with increases in every category. When compared to a year earlier, fee revenue was down $1.80 million primarily due to lower mortgage fees and a $1.37 million gain last year on a bank-owned life insurance policy. Service charges and fees were up approximately $600,000 from both the first quarter and a year ago due to strong debit card transaction volume and new service fees effective January 1. Mortgage fees were up $523,000 from the first quarter but down $1.13 million from a year ago, the decrease reflecting slower mortgage refinancing activity. Closed mortgage loans totaled $68.5 million in the second quarter, compared with $46.0 million in the first quarter and $95.2 million in the second quarter of 2013. Customer swap fees included in other fee revenue were up $357,000 from the first quarter due to an increase in commercial lending activities. Also included in other fee revenue were gains on the sale of SBA loans of $744,000. "Going forward, our new focus on growing our SBA business includes selling loans and taking the related gains, while retaining servicing on the loans sold," commented Tallent.

Operating expenses, excluding foreclosed property costs, were $40.4 million in the second quarter compared to $38.9 million in the first quarter and $43.7 million a year ago. Decreases in nearly every expense category from a year ago reflect successful efforts to control operating costs. The $1.48 million increase from the first quarter was mostly in advertising and public relations, professional fees and other expenses that included a number of non-core costs. The increase in advertising and public relations primarily reflects the cost for new products and updating brochures and other branded materials. The increase in professional fees is due to higher legal and consulting costs resulting from corporate initiatives. The increase in other expenses primarily reflects higher lending support costs and a $367,000 loss from the consolidation and sale of a branch facility.

Foreclosed property costs were $102,000 in the second quarter compared to $116,000 in the first quarter and $5.15 million a year ago. These costs were elevated in the second quarter of 2013 by the accelerated sales of classified assets.

On June 30, 2014, capital ratios were as follows: Tier 1 Risk-Based of 11.8 percent; Total Risk-Based of 13.0 percent; Tier 1 Common Risk-Based of 10.7 percent; Tier 1 Leverage of 8.3 percent; and Tangible Equity-to-Assets of 9.6 percent.

"We had a solid start in 2014 and continued to build momentum through the second quarter," Tallent said. "Stabilizing our net interest margin and growing loans, deposits and fee revenue will drive earnings growth. To that end, we continue to expand our business capabilities and have added senior people to our commercial and specialized lending groups. In the second quarter we completed the acquisition of a specialty SBA business in Columbia, South Carolina, and added a newly formed SBA national sales team led by Rich Bradshaw, who has a long record of success in SBA and other specialized lending areas. This team will significantly strengthen our SBA and USDA lending capabilities within and beyond our existing footprint. I am excited about the opportunities ahead and remain convinced we are on track to achieve our business targets and financial goals for the year."

Conference Call
United will hold a conference call today, Thursday, July 24, 2014, 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 60193841. 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.
United Community Banks, Inc. (UCBI) is a bank holding company based in Blairsville, Georgia, with $7.4 billion in assets. The company's banking subsidiary, United Community Bank, is one of the Southeast's largest full-service banks, operating 103 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in personalized community banking services for individuals, small businesses and corporations. A full range of consumer and commercial banking services includes mortgage, advisory, treasury management and other products. National survey organizations consistently recognize United Community Bank for outstanding customer service. Additional information about the company and the bank's full range of products and services can be found 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 2013 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
				2014								2013													Quarter
(in thousands, except per share				Second				First				Fourth				Third				Second					2014-2013
data; taxable equivalent)				Quarter				Quarter				Quarter				Quarter				Quarter					Change
INCOME SUMMARY
Interest revenue				$	61,783			$	60,495			$	61,695			$	61,426			$	62,088
Interest expense					6,833				6,326				5,816				7,169				7,157
		Net interest revenue			54,950				54,169				55,879				54,257				54,931				-	%
Provision for credit losses					2,200				2,500				3,000				3,000				48,500
Fee revenue					14,143				12,176				13,519				14,225				15,943				(11	)
		Total revenue			66,893				63,845				66,398				65,482				22,374
Operating expenses					40,532				39,050				41,614				40,097				48,823				(17	)
	Income (loss) before income taxes				26,361				24,795				24,784				25,385				(26,449	)
Income tax expense (benefit)					10,004				9,395				8,873				9,885				(256,413	)
		Net income			16,357				15,400				15,911				15,500				229,964
Preferred dividends and discount accretion					-				439				2,912				3,059				3,055
Net income available to common shareholders				$	16,357			$	14,961			$	12,999			$	12,441			$	226,909
PERFORMANCE MEASURES
	Per common share:
		Diluted income		$	.27			$	.25			$	.22			$	.21			$	3.90
		Book value			11.94				11.66				11.30				10.99				10.90				10
		Tangible book value (2)			11.91				11.63				11.26				10.95				10.82				10
	Key performance ratios:
		Return on common equity (1)(3)			8.99	%			8.64	%			7.52	%			7.38	%			197.22	%
		Return on assets (3)			.88				.85				.86				.86				13.34
		Net interest margin (3)			3.21				3.21				3.26				3.26				3.33
		Efficiency ratio			58.65				59.05				60.02				58.55				68.89
		Equity to assets			9.61				9.52				11.62				11.80				11.57			(4)
		Tangible equity to assets (2)			9.58				9.50				11.59				11.76				11.53			(4)
		Tangible common equity to assets (2)			9.58				9.22				8.99				9.02				8.79			(4)
		Tangible common equity to risk- weighted assets (2)			13.92				13.63				13.18				13.34				13.16
ASSET QUALITY *
	Non-performing loans			$	20,724			$	25,250			$	26,819			$	26,088			$	27,864
	Foreclosed properties				2,969				5,594				4,221				4,467				3,936
		Total non-performing assets (NPAs)			23,693				30,844				31,040				30,555				31,800
	Allowance for loan losses				73,248				75,223				76,762				80,372				81,845
	Net charge-offs				4,175				4,039				4,445				4,473				72,408
	Allowance for loan losses to loans				1.66	%			1.73	%			1.77	%			1.88	%			1.95	%
	Net charge-offs to average loans (3)				.38				.38				.41				.42				6.87
	NPAs to loans and foreclosed properties				.54				.71				.72				.72				.76
	NPAs to total assets				.32				.42				.42				.42				.44
AVERAGE BALANCES ($ in millions)
	Loans			$	4,376			$	4,356			$	4,315			$	4,250			$	4,253				3
	Investment securities				2,326				2,320				2,280				2,178				2,161				8
	Earning assets				6,861				6,827				6,823				6,615				6,608				4
	Total assets				7,418				7,384				7,370				7,170				6,915				7
	Deposits				6,187				6,197				6,190				5,987				5,983				3
	Shareholders' equity				713				703				856				846				636				12
	Common shares - basic (thousands)				60,712				60,059				59,923				59,100				58,141
	Common shares - diluted (thousands)				60,714				60,061				59,925				59,202				58,141
AT PERIOD END ($ in millions)
	Loans *			$	4,410			$	4,356			$	4,329			$	4,267			$	4,189				5
	Investment securities				2,190				2,302				2,312				2,169				2,152				2
	Total assets				7,352				7,398				7,425				7,243				7,163				3
	Deposits				6,164				6,248				6,202				6,113				6,012				3
	Shareholders' equity				722				704				796				852				829				(13	)
	Common shares outstanding (thousands)				60,139				60,092				59,432				59,412				57,831
(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.
Financial Highlights
Selected Financial Information
			For the Six
			Months Ended						YTD
(in thousands, except per share			June 30,						2014-2013
data; taxable equivalent)			2014			2013			Change
INCOME SUMMARY
Interest revenue			$	122,278		$	124,202
Interest expense				13,159			14,697
		Net interest revenue		109,119			109,505		-	%
Provision for credit losses				4,700			59,500
Fee revenue				26,319			28,854		(9	)
		Total revenue		130,738			78,859
Operating expenses				79,582			92,593		(14	)
		Income (loss) before income taxes		51,156			(13,734	)
Income tax expense (benefit)				19,399			(255,463	)
		Net income		31,757			241,729
Preferred dividends and discount accretion				439			6,107
Net income available to common shareholders			$	31,318		$	235,622
PERFORMANCE MEASURES
	Per common share:
		Diluted income	$	.52		$	4.05
		Book value		11.94			10.90		10
		Tangible book value (2)		11.91			10.82		10
	Key performance ratios:
		Return on common equity (1)(3)		8.82	%		108.34	%
		Return on assets (3)		.87			7.09
		Net interest margin (3)		3.21			3.35
		Efficiency ratio		58.85			66.98
		Equity to assets		9.56			8.90
		Tangible equity to assets (2)		9.54			8.83
		Tangible common equity to assets (2)		9.40			5.99
		Tangible common equity to risk- weighted assets (2)		13.92			13.16
ASSET QUALITY *
	Non-performing loans		$	20,724		$	27,864
	Foreclosed properties			2,969			3,936
		Total non-performing assets (NPAs)		23,693			31,800
	Allowance for loan losses			73,248			81,845
	Net charge-offs			8,214			84,792
	Allowance for loan losses to loans			1.66	%		1.95	%
	Net charge-offs to average loans (3)			.38			4.07
	NPAs to loans and foreclosed properties			.54			.76
	NPAs to total assets			.32			.44
AVERAGE BALANCES ($ in millions)
	Loans		$	4,366		$	4,225		3
	Investment securities			2,323			2,151		8
	Earning assets			6,844			6,578		4
	Total assets			7,401			6,875		8
	Deposits			6,192			5,964		4
	Shareholders' equity			708			612		16
	Common shares - basic (thousands)			60,386			58,111
	Common shares - diluted (thousands)			60,388			58,111
AT PERIOD END ($ in millions)
	Loans *		$	4,410		$	4,189		5
	Investment securities			2,190			2,152		2
	Total assets			7,352			7,163		3
	Deposits			6,164			6,012		3
	Shareholders' equity			722			829		(13	)
	Common shares outstanding (thousands)			60,139			57,831
(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
		2014						2013
(in thousands, except per share		Second			First			Fourth			Third			Second
data; taxable equivalent)		Quarter			Quarter			Quarter			Quarter			Quarter
Interest revenue reconciliation
Interest revenue - taxable equivalent		$	61,783		$	60,495		$	61,695		$	61,426		$	62,088
Taxable equivalent adjustment			(377	)		(357	)		(380	)		(370	)		(368	)
	Interest revenue (GAAP)	$	61,406		$	60,138		$	61,315		$	61,056		$	61,720
Net interest revenue reconciliation
Net interest revenue - taxable equivalent		$	54,950		$	54,169		$	55,879		$	54,257		$	54,931
Taxable equivalent adjustment			(377	)		(357	)		(380	)		(370	)		(368	)
	Net interest revenue (GAAP)	$	54,573		$	53,812		$	55,499		$	53,887		$	54,563
Total revenue reconciliation
Total operating revenue		$	66,893		$	63,845		$	66,398		$	65,482		$	22,374
Taxable equivalent adjustment			(377	)		(357	)		(380	)		(370	)		(368	)
	Total revenue (GAAP)	$	66,516		$	63,488		$	66,018		$	65,112		$	22,006
Income (loss) before taxes reconciliation
Income (loss) before taxes		$	26,361		$	24,795		$	24,784		$	25,385		$	(26,449	)
Taxable equivalent adjustment			(377	)		(357	)		(380	)		(370	)		(368	)
	Income (loss) before taxes (GAAP)	$	25,984		$	24,438		$	24,404		$	25,015		$	(26,817	)
Income tax expense (benefit) reconciliation
Income tax expense (benefit)		$	10,004		$	9,395		$	8,873		$	9,885		$	(256,413	)
Taxable equivalent adjustment			(377	)		(357	)		(380	)		(370	)		(368	)
	Income tax expense (benefit) (GAAP)	$	9,627		$	9,038		$	8,493		$	9,515		$	(256,781	)
Book value per common share reconciliation
Tangible book value per common share		$	11.91		$	11.63		$	11.26		$	10.95		$	10.82
Effect of goodwill and other intangibles			.03			.03			.04			.04			.08

Book value per common share (GAAP) $11.94 $11.66 $11.30 $10.99 $10.90 Average equity to assets reconciliation Tangible common equity to assets 9.58 % 9.22 % 8.99 % 9.02 % 8.79 % Effect of preferred equity - .28 2.60 2.74 2.74 Tangible equity to assets 9.58 9.50 11.59 11.76 11.53 Effect of goodwill and other intangibles .03 .02 .03 .04 .04 Equity to assets (GAAP) 9.61 % 9.52 % 11.62 % 11.80 % 11.57 % Tangible common equity to risk-weighted assets reconciliation Tangible common equity to risk-weighted assets 13.92 % 13.63 % 13.18 % 13.34 % 13.16 % Effect of other comprehensive income .53 .36 .39 .49 .29 Effect of deferred tax limitation (3.74 ) (3.92 ) (4.26 ) (4.72 ) (4.99 ) Effect of trust preferred 1.04 1.03 1.04 1.09 1.11 Effect of preferred equity - - 2.39 4.01 4.11 Tier I capital ratio (Regulatory) 11.75 % 11.10 % 12.74 % 14.21 % 13.68 %

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
		For the Six Months
(in thousands, except per share		Ended June 30,
data; taxable equivalent)		2014			2013
Interest revenue reconciliation
Interest revenue - taxable equivalent		$	122,278		$	124,202
Taxable equivalent adjustment			(734	)		(733	)
	Interest revenue (GAAP)	$	121,544		$	123,469
Net interest revenue reconciliation
Net interest revenue - taxable equivalent		$	109,119		$	109,505
Taxable equivalent adjustment			(734	)		(733	)
	Net interest revenue (GAAP)	$	108,385		$	108,772
Total revenue reconciliation
Total operating revenue		$	130,738		$	78,859
Taxable equivalent adjustment			(734	)		(733	)
	Total revenue (GAAP)	$	130,004		$	78,126
Income (loss) before taxes reconciliation
Income (loss) before taxes		$	51,156		$	(13,734	)
Taxable equivalent adjustment			(734	)		(733	)
	Income (loss) before taxes (GAAP)	$	50,422		$	(14,467	)
Income tax expense (benefit) reconciliation
Income tax expense (benefit)		$	19,399		$	(255,463	)
Taxable equivalent adjustment			(734	)		(733	)
	Income tax expense (benefit) (GAAP)	$	18,665		$	(256,196	)
Book value per common share reconciliation
Tangible book value per common share		$	11.91		$	10.82
Effect of goodwill and other intangibles			.03			.08
	Book value per common share (GAAP)	$	11.94		$	10.90
Average equity to assets reconciliation
Tangible common equity to assets			9.40	%		5.99	%
Effect of preferred equity			.14			2.84
	Tangible equity to assets		9.54			8.83
Effect of goodwill and other intangibles			.02			.07
	Equity to assets (GAAP)		9.56	%		8.90	%
Tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets			13.92	%		13.16	%
Effect of other comprehensive income			.53			.29
Effect of deferred tax limitation			(3.74	)		(4.99	)
Effect of trust preferred			1.04			1.11
Effect of preferred equity			-			4.11
	Tier I capital ratio (Regulatory)		11.75	%		13.68	%

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)
			2014						2013
			Second			First			Fourth			Third			Second
(in millions)			Quarter			Quarter			Quarter			Quarter			Quarter
LOANS BY CATEGORY
Owner occupied commercial RE			$	1,163		$	1,142		$	1,134		$	1,129		$	1,119
Income producing commercial RE				598			624			623			614			629
Commercial & industrial				554			495			472			457			437
Commercial construction				160			148			149			137			133
		Total commercial		2,475			2,409			2,378			2,337			2,318
Residential mortgage				861			866			875			888			876
Home equity lines of credit				451			447			441			421			402
Residential construction				302			318			328			318			332
Consumer installment				321			316			307			303			261
		Total loans	$	4,410		$	4,356		$	4,329		$	4,267		$	4,189
LOANS BY MARKET
North Georgia			$	1,175		$	1,205		$	1,240		$	1,262		$	1,265
Atlanta MSA				1,305			1,290			1,275			1,246			1,227
North Carolina				555			563			572			575			576
Coastal Georgia				426			425			423			421			397
Gainesville MSA				257			262			255			253			256
East Tennessee				270			272			280			277			282
South Carolina / Corporate				206			131			88			47			34
Other (2)				216			208			196			186			152
		Total loans	$	4,410		$	4,356		$	4,329		$	4,267		$	4,189
RESIDENTIAL CONSTRUCTION
Dirt loans
	Acquisition & development		$	34		$	37		$	39		$	40		$	42
	Land loans			36			37			38			35			36
	Lot loans			151			159			166			167			173
		Total		221			233			243			242			251
House loans
	Spec			19			19			23			30			34
	Sold			62			66			62			46			47
		Total		81			85			85			76			81
Total residential construction			$	302		$	318		$	328		$	318		$	332
(1) Excludes total loans of $3.1 million, $19.3 million, $20.3 million, $23.3 million and $25.7 million as of June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013 and June 30, 2013, 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
Loan Portfolio Composition at Period-End (1)
			2014						2013			Linked Quarter Change				Year over Year Change
			Second			First			Second
(in millions)			Quarter			Quarter			Quarter
LOANS BY CATEGORY
Owner occupied commercial RE			$	1,163		$	1,142		$	1,119		$	21			$	44
Income producing commercial RE				598			624			629			(26	)			(31	)
Commercial & industrial				554			495			437			59				117
Commercial construction				160			148			133			12				27
		Total commercial		2,475			2,409			2,318			66				157
Residential mortgage				861			866			876			(5	)			(15	)
Home equity lines of credit				451			447			402			4				49
Residential construction				302			318			332			(16	)			(30	)
Consumer installment				321			316			261			5				60
		Total loans	$	4,410		$	4,356		$	4,189			54				221
LOANS BY MARKET
North Georgia			$	1,175		$	1,205		$	1,265			(30	)			(90	)
Atlanta MSA				1,305			1,290			1,227			15				78
North Carolina				555			563			576			(8	)			(21	)
Coastal Georgia				426			425			397			1				29
Gainesville MSA				257			262			256			(5	)			1
East Tennessee				270			272			282			(2	)			(12	)
South Carolina / Corporate				206			131			34			75				172
Other (2)				216			208			152			8				64
		Total loans	$	4,410		$	4,356		$	4,189			54				221
RESIDENTIAL CONSTRUCTION
Dirt loans
	Acquisition & development		$	34		$	37		$	42			(3	)			(8	)
	Land loans			36			37			36			(1	)			-
	Lot loans			151			159			173			(8	)			(22	)
		Total		221			233			251			(12	)			(30	)
House loans
	Spec			19			19			34			-				(15	)
	Sold			62			66			47			(4	)			15
		Total		81			85			81			(4	)			-
Total residential construction			$	302		$	318		$	332			(16	)			(30	)
(1) Excludes total loans of $3.1 million, $19.3 million, $20.3 million, $23.3 million and $25.7 million as of June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013 and June 30, 2013, 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 2014
				Non-performing				Foreclosed				Total
(in thousands)				Loans				Properties				NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE				$	2,975			$	653			$	3,628
Income producing CRE					1,032				242				1,274
Commercial & industrial					1,102				-				1,102
Commercial construction					95				-				95
	Total commercial				5,204				895				6,099
Residential mortgage					10,201				1,426				11,627
Home equity lines of credit					510				128				638
Residential construction					4,248				520				4,768
Consumer installment					561				-				561
	Total NPAs			$	20,724			$	2,969			$	23,693
	Balance as a % of
		Unpaid Principal			66.5	%			50.4	%			63.9	%
NONPERFORMING ASSETS BY MARKET
North Georgia				$	8,216			$	1,392			$	9,608
Atlanta MSA					3,883				510				4,393
North Carolina					5,314				615				5,929
Coastal Georgia					782				80				862
Gainesville MSA					921				49				970
East Tennessee					1,218				323				1,541
South Carolina / Corporate					-				-				-
Other (3)					390				-				390
	Total NPAs			$	20,724			$	2,969			$	23,693
NONPERFORMING ASSETS ACTIVITY
Beginning Balance				$	25,250			$	5,594			$	30,844
Loans placed on non-accrual					9,529				-				9,529
Payments received					(4,027	)			-				(4,027	)
Loan charge-offs					(8,341	)			-				(8,341	)
Foreclosures					(1,687	)			1,687				-
Capitalized costs					-				-				-
Property sales					-				(4,430	)			(4,430	)
Write downs					-				(305	)			(305	)
Net gains (losses) on sales					-				423				423
	Ending Balance			$	20,724			$	2,969			$	23,693
(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.
Financial Highlights
Credit Quality(1)
				First Quarter 2014
				Non-performing				Foreclosed				Total
(in thousands)				Loans				Properties				NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE				$	3,868			$	1,167			$	5,035
Income producing CRE					1,278				1,645				2,923
Commercial & industrial					822				-				822
Commercial construction					479				-				479
	Total commercial				6,447				2,812				9,259
Residential mortgage					13,307				2,146				15,453
Home equity lines of credit					1,106				362				1,468
Residential construction					3,805				274				4,079
Consumer installment					585				-				585
	Total NPAs			$