8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):
July 25, 2013

 United Community Banks, Inc.
(Exact name of registrant as specified in its charter)

Georgia	No. 001-35095	No. 58-180-7304
(State or other jurisdiction of	(Commission File Number)	(IRS Employer
incorporation)		Identification No.)

125 Highway 515 East
Blairsville, Georgia 30512
(Address of principal executive offices)

Registrant's telephone number, including area code:
(706) 781-2265

Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

£ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

£ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

£ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

£ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c))

Item 2.02

Results of Operations and Financial Condition.

On July 25, 2013, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the quarter ended June 30, 2013 (the “News Release”). The News Release, including financial schedules, is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. In connection with issuing the News Release, on July 25, 2013 at 11:00 a.m. EDT, the Registrant intends to hold a conference call/webcast to discuss the News Release. In addition to the News Release, during the conference call the Registrant intends to discuss certain financial information contained in the Second Quarter 2013 Investor Presentation (the “Investor Presentation”), which will be posted to the Registrant’s website at www.ucbi.com. The Investor Presentation is attached as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference. The presentation of the Registrant’s financial results includes core earnings measures, which are measures of performance determined by methods other than in accordance with generally accepted accounting principles, or GAAP. Management included non-GAAP core earnings measures because it believes they are useful for evaluating the Registrant’s operations and performance over periods of time, and uses core earnings measures in managing and evaluating the Registrant’s business and intends to refer to them in discussions about the Registrant’s operations and performance. Core earnings measures exclude credit related costs such as the provision for loan losses and foreclosed property expense, securities gains and losses, income taxes and other items of a non-recurring nature. Core earnings measures are useful in evaluating the underlying earnings performance trends of the Registrant. Management believes these non-GAAP performance measures may provide users of the Registrant’s financial information with a meaningful measure for assessing the Registrant’s financial results and comparing those financial results to prior periods. Core earnings measures should be viewed in addition to, and not as an alternative to or substitute for, the Registrant’s performance measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Item 9.01	Financial Statements and Exhibits.
(d)	Exhibits
Exhibit
No.	Description
99.1	News Release, dated July 25, 2013
99.2	Investor Presentation, Second Quarter 2013

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

UNITED COMMUNITY BANKS, INC.
By:	/s/  Rex S. Schuette
	Rex S. Schuette
	Executive Vice President and
	Chief Financial Officer

Date: July 25, 2013

EX-99.1

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.

EX-99.2

Exhibit 99.2

Second Quarter 2013 Investor Presentation United Community Banks, Inc. Jimmy C. Tallent President & Chief Executive Officer H. Lynn Harton Chief Operating Officer Rex S. Schuette Executive Vice President & Chief Financial Officer rex_schuette@ucbi.com (706) 781 - 2266 David P. Shearrow Executive Vice President & Chief Risk Officer

Cautionary Statement This investor presentation may contain 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 Community Banks, Inc . ’s filings with the Securities and Exchange Commission including its 2012 Annual Report on Form 10 - K under the sections entitled “Forward - Looking Statements” . Forward - looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward - looking statements . 2 Non - GAAP Measures This presentation also contains financial measures determined by methods other than in accordance with generally accepted accounting principles (“GAAP”) . Such non - GAAP financial measures include the following : core fee revenue, core operating expense, core earnings, tangible common equity to tangible assets, tangible equity to tangible assets and tangible common equity to risk - weighted assets . The most comparable GAAP measures to these measures are : fee revenue, operating expense, net income (loss), and equity to assets . Management uses these non - GAAP financial measures because we believe it is useful for evaluating our operations and performance over periods of time, as well as in managing and evaluating our business and in discussions about our operations and performance . Management believes these non - GAAP financial measures provide users of our financial information with a meaningful measure for assessing our financial results and credit trends, as well as for comparison to financial results for prior periods . These non - GAAP financial measures should not be considered as a substitute for financial measures determined in accordance with GAAP and may not be comparable to other similarly titled financial measures used by other companies . For a reconciliation of the differences between our non - GAAP financial measures and the most comparable GAAP measures, please refer to the ‘Non - GAAP Reconcilement Tables’ at the end of the Appendix to this presentation .

United at a Glance □ Founded in 1950 □ Third - largest bank holding company in Georgia □ Headquartered in Blairsville, Georgia with 103 locations throughout north Georgia, metro Atlanta, coastal Georgia, western North Carolina, western South Carolina, and east Tennessee □ 1,500 employees Market Offices Deposit Share Rank North Georgia 22 32% 1 Total assets $7.163 Atlanta MSA 36 4 7 Total deposits $6.012 Gainesville MSA 5 12 5 Loans $4.189 Coastal Georgia 8 4 8 Western North Carolina 20 12 3 East Tennessee 8 2 9 Deposit Market Share (1) Key Statistics as of 6/30/13 (billions) 1 FDIC deposit market share and rank as of June 30, 2012 for markets where United takes deposits. Source: SNL and FDIC. Excludes 4 Loan Production Offices 3

Business and Operating Model 4 Service is Point of Differentiation • #1 in Customer Satisfaction according to Customer Service Profiles • J.D. Power 2013 Retail Banking Satisfaction Study rates United among the top 2 banks in the southeast • Golden rule of banking – treating people the way we want to be treated • “The Bank that SERVICE Built” • Customer surveys continue with 95 %+ satisfaction rate “Community bank service, large bank resources” Twenty - seven “community banks” Local CEOs with deep roots in their communities Resources of a $7.163 billion bank Strategic footprint with substantial banking opportunities Operates in a number of the more demographically attractive U.S. markets Disciplined growth strategy Organic supported by de novos and selective acquisitions

PERFORMANCE - TRENDS United Community Banks, Inc. 5

Highlights First Quarter 6 Improving Quarterly Results • Net income of $230 million, or $3.90 per share • Impacted by DTA recovery and accelerated classified asset sales • Core earnings (pre - tax, pre - credit) of $26.6 million Deferred Tax Asset Allowance Recovery • Reversal of $272 million of DTA allowance • Impacted earnings and accumulated other comprehensive income (shareholder’s equity) • Key driver of increase in tangible book value to $10.82 Completed Classified Asset Sales of $172 Million • $48.5 million provision for loan losses • Net charge - offs increased to $72.4 million due to the classified asset sales • Lowered classified assets to Tier 1 plus allowance to 27% - down from 49% Solid Improvement in All Credit Quality Metrics • Credit metrics now at pre - credit crisis levels • NPAs decline 72% to $31.8 million and .44% of total assets • Allowance decreased by $24 million to $81.8 million – 1.95% of loans Strong Core Transaction Deposit Growth • Up $109 million year - to - date, or 7% annualized • Building customer deposit base • Represents 59% of total customer deposits compared to 34% at the end of 2008

$56.8 $57.4 $56.0 $54.7 $54.6 $45 $49 $53 $57 $61 2Q12 3Q12 4Q12 1Q13 2Q13 3.43% 3.60% 3.44% 3.38% 3.31% 3.0% 3.5% 4.0% Net Interest Margin Key Drivers of Net Interest Revenue / Margin 7 5.25% 4.93% 4.79% 2.04% 1.84% 1.77% .53% .37% .34% 0% 2% 4% 6% 2Q12 3Q12 4Q12 1Q13 2Q13 Loan Yields Securities Yields Avg Rate on Int Bearing Dep’s Net Interest Revenue & Margin $ in millions Key Drivers of NIR – Loan Growth Net Interest Revenue • Offset margin compression by growing loans • 2Q13 growth impacted by : x Loan pricing competition x Lower securities reinvestment rates x More floating rate securities .30 .30 .30 .30 .20 .23 .21 .21 .18 .16 .16 .14 .14 .13 .13 0 .10 .20 .30 .40 2Q12 3Q12 4Q12 1Q13 2Q13 CDs MMDA NOW Key Drivers of NIR – Deposit Pricing (excl. brokered) • CD pricing reflects the quarter - average new and renewed yield. • MMDA / NOW pricing reflects the deposit yield for each quarter.

Non - Performing Loans (NPLs) Inflow Trends $29.4 $30.5 $20.2 $9.7 $13.2 $0 $10 $20 $30 Q212 Q312 Q412 Q113 Q113 Resi Constr Comm Constr Resi Mtg Comm RE Comm Consumer 8 Quarterly NPL Inflows $ in millions Total NPLs $115.4 $115.0 $109.9 $96.0 $27.9 $0 $30 $60 $90 $120 Q212 Q312 Q412 Q113 Q113 Single Customer $ in millions

OUTLOOK United Community Banks, Inc. 9

Outlook 10 Our Goal: Leverage Our Strengths • Strong local leadership • Funding advantage in our legacy markets • Consistent and attractive culture • Class leading customer satisfaction • Low employee turnover To Grow Our Business The Right Way • Become better retail and small business bank • Grow sales: Better product design, merchandising, campaign execution • Streamline delivery process that focuses on how we serve our customer in the end • HELOC program success: $154 million in new balances • Smarter Mortgage added $104 million in new balances • Invest in people • Continue to invest in, and improve commercial and retail capabilities • Diversify portfolio – focus on C&I, owner occupied, and consumer lending • Momentum building across footprint • Invest in people: 31 lenders past 2 years in growth opportunity markets • Enter new markets: Opened LPO in Greenville, SC (4Q12), Nashville, TN (2Q13) with healthcare industry focus; expand territory and commercial loan potential • Positive net loan growth going forward • Customer derivative swap program – meeting customer needs while adding fee revenue

Outlook 11 Grow Existing Fee Businesses at Faster Pace • Mortgage First Priority • Performing well, but at 50% of peers • Focus on home purchase product as well as refinancings • Focus on lower performing markets • Invest in management, people and new markets • Advisory Services • Customer satisfaction high • Invest in management, people, and new markets $2.32 $2.80 $3.26 $2.66 $3.00 $0.75 $1.50 $2.25 $3.00 2Q12 3Q12 4Q12 1Q13* 2Q13 NGA and NC Other Markets Mortgage Fee Revenue $ in millions VOLUME OF NEW MORTGAGES 45% 33% 40% 43% 49%

Outlook 1 2 Summary • Significant events to cleanse balance sheet, restore capital, and enhance profitability • Accelerated classified asset sales • DTA allowance recovery • Focus on core earnings growth – fee revenue, expenses, efficiencies • Offsetting margin headwinds through loan growth and improving deposit mix • Goal loan growth in 2013 – mid - single digit range • Expecting quarterly margin compression in 2013 – 3 to 5 basis points • Focus on lowering debt / equity costs • Solid strengths – size, culture, capital • Well - positioned in all areas for opportunities

FINANCIAL REVIEW United Community Banks, Inc. 13

Core Earnings & Core Fee Revenue 14 CORE EARNINGS 2Q13 1Q13 2Q12 Net Interest Revenue 54,562$ (97)$ (2,274)$ Fee Revenue 14,063 1,445 1,299 Gross Revenue 68,625 1,348 (975) Operating Expense (Excl OREO) (42,067) 1,167 755 Pre-Tax, Pre-Credit (Core) 26,558$ 181$ (1,730)$ Net Interest Margin 3.31 % (.07)% (.12)% Variance - Increase / (Decrease) CORE FEE REVENUE 2Q13 1Q13 2Q12 Overdraft Fees 3,032$ 41$ (200)$ Interchange Fees 3,638 411 396 Other Service Charges 1,302 117 (40) Total Service Charges and Fees 7,972 569 156 Mortgage Loan & Related Fees 3,003 348 681 Brokerage Fees 1,063 296 254 Other 2,025 232 208 Total Fee Revenue - Core 14,063 1,445 1,299 Non-Core (1) 2,249 2,041 2,146 Reported - GAAP 16,312$ 3,486$ 3,445$ Variance - Increase / (Decrease) $ in thousands (1) Includes securities gains (losses), gains from hedge ineffectiveness, gains from the sale of low income housing credits, deferred compensation gains, and BOLI death benefit gain. $56.9 $57.4 $56.0 $54.7 $54.6 $41.3 $40.5 $41.6 $40.9 $42.1 $28.3 $29.9 $29.1 $26.4 $26.6 $12.8 $13.0 $14.6 $12.6 $14.1 $10 $20 $30 $40 $50 $60 2Q12 3Q12 4Q12 1Q13 1Q13 Net Interest Revenue Core Operating Expenses Core Earnings Core Fee Revenue $ in millions Core Earnings $ 26.6 Million Up $181 thousand from 1Q13 and down $1.7 million from a year ago

Core Operating Expenses 15 2Q13 1Q13 2Q12 Salaries & Employee Benefits 23,129$ 74$ (21)$ Communications & Equipment 3,468 422 257 Occupancy 3,449 82 (90) FDIC Assessment 2,505 - (40) Advertising & Public Relations 1,037 99 (51) Postage, Printing & Supplies 894 31 (22) Professional Fees 2,499 133 547 Other Expense 5,086 326 175 Core Operating Expenses 42,067 1,167 755 Non-Core (1) 6,756 3,886 3,758 Reported GAAP 48,823$ 5,053$ 4,513$ Variance - Increase / (Decrease) $ in thousands (1) Includes foreclosed property costs, severance, and deferred compensation gains and losses.

Net Income 16 $ in thousands NET OPERATING INCOME 2Q13 1Q13 2Q12 Core Earnings (Pre-Tax, Pre-Credit) 26,558$ 181$ (1,730)$ Provision for Loan Loss (48,500) 37,500 30,500 NON-CORE FEE REVENUE: Hedge Ineffectiveness Gains (Losses) 369 454 549 Securites Gains (Losses) - (116) (6,490) Losses from Prepayment of Borrowings - - 6,199 BOLI Death Benefit Gain 1,366 1,366 1,366 Gains from Sale of Low Income Housing Tax Credits 468 468 468 Gains (Losses) on Deferred Compensation Plan Assets 46 (131) 54 Total Non-Core Fee Revenue 2,249 2,041 2,146 NON-CORE OPERATING EXPENSES: Foreclosed Property Write Downs 1,369 328 361 Foreclosed Property (Gains) Losses on Sales 2,945 2,840 3,214 Forclosed Property Maintenance Expenses 837 (350) (275) Severance Costs 1,559 1,199 404 Gains (Losses) on Deferred Comp Plan Liability 46 (131) 54 Total Non-Core Operating Expenses 6,756 3,886 3,758 Income Tax Benefit 256,413 257,363 257,307 Net Income 229,964$ 218,199$ 223,465$ Preferred Stock Dividends 3,055 3 23 Net Income Avail to Common Shareholders 226,909$ 218,196$ 223,442$ Net Income Per Share 3.90$ 3.75$ 3.84$ Tangible Book Value 10.82$ 4.06$ 4.34$ Variance - Increase / (Decrease) 1Q13 11.8$ 4Q12 5.3 3Q12 10.6 2Q12 6.5 Prior Quarterly Net Income 58.1 Million Shares Outstanding $ in millions

Customer Deposit Mix & Core Growth 17 Time >$100M 11% Demand & NOW 34% Deposits by % / Customer Mix Public Funds 13% Time <$100M 17% MMDA & Sav 25% Time >$100M 22% Demand & NOW 23% Public Funds 14% Time <$100M 31% MMDA & Sav 10% $ in millions 2Q13 $5.6B 59% 2Q08 $6.2B 34% 2Q13 1Q13 2Q12 4Q08 Demand / NOW 1,916$ 1,894$ 1,735$ 1,457$ MMDA / Savings 1,406 1,401 1,330 630 Core Transaction 3,322 3,295 3,065 2,087 Time < $100,000 977 1,014 1,159 1,945 Public Deposits 674 700 623 755 Total Core 4,973 5,009 4,847 4,787 Time >$100,000 632 653 728 1,336 Public Deposits 32 32 36 87 Total Customer 5,637 5,694 5,611 6,210 Brokered Deposits 375 332 211 793 Total Deposits 6,012$ 6,026$ 5,822$ 7,003$ Total Deposit Mix Significant growth in core transaction deposits since 4Q08 Core Deposit Growth – Category & Market CATEGORY 2Q13 Year MARKET 2Q13 Year Demand 31.3$ 83.2$ Atlanta (10.7)$ 27.8$ MM Accounts 0.9 13.7 N. Georgia 11.9 36.2 Savings 4.5 20.5 North Carolina 21.2 31.9 NOW (9.3) (8.8) Coastal Georgia (1.5) 1.6 Total Categories 27.4$ 108.6$ Tennessee (.8) 1.3 Gainesville 7.3 9.8 YTD Percent Growth (Annualized) 7 % 27.4$ 108.6$ Growth Growth

Capital Ratios 18 Well- Capitalized JUN '13 MAR '13 JUN '12 Bank Tier 1 RBC 6 % 14.2 % 14.7 % 14.3 % Total RBC 10 15.5 16.0 15.6 Leverage 5 10.1 10.0 9.2 Holding Company Tangible Equity to Assets 9.1 8.5 8.2 16.00% 15.80% 15.70% 15.90% 15.20% 14.30% 14.30% 14.20% 14.30% 13.70% 9.20% 9.80% 9.60% 9.70% 9.80% 8.80% 8.80% 8.80% 8.90% 8.50% 5.50% 5.70% 5.70% 5.70% 6.30% 5% 10% 15% 2Q12 3Q12 4Q12 1Q13 2Q13 Total RBC Tier 1 RBC Leverage Tier 1 Common RBC Tangible Common to Assets 8.80% at period end 11.5% at period end

LOAN PORTFOLIO & CREDIT QUALITY United Community Banks, Inc. 19

Retail 31% $1.308 C&I 34% $1.424 Inv RE 17% $.699 Diversifying Portfolio Retail 37% $1.539 C&I 37% $1.556 Inv RE 15% $.629 Loan Portfolio (total $4.19 billion) 20 20 Commercial 55% $2.32 Geographic Diversity Residential Mortgage 31% $1.28 Install 6% $.26 Period $ in Billions 2Q13 $4.189 1Q13 $4.194 4Q12 $4.175 3Q12 $4.138 2Q12 $4.119 By Loan Type 1Q11 $4.194 2Q13 $4.189 $ in billions Reduced concentrations of A&D and Investor RE loans Gainesville MSA $ .256 East Tennessee $ .283 Coastal Georgia $ .397 Western North Carolina $ .575 Atlanta MSA $ 1.227 North Georgia $ 1.417 South Carolina $.034 0% 12% 24% 36% 6% 7% 9% 14% 29% 34% Loan Diversification & Type • Reducing land exposure • Focus on small business and C&I • Enhanced retail products Total Loans 1%

$215.2 $281.6 $309.0 $274.4 $403.8 $200 $250 $300 $350 $400 2Q12 3Q12 4Q12 1Q13 2Q13 New Loans Funded and Advances (1) 21 $ in m illions CATEGORY 2Q13 2Q12 2Q13 2Q12 Commercial C & I 58.3$ 45.5$ Atlanta 94.2$ 78.0$ Owner Occupied CRE 50.7 44.1 Coastal Georgia 26.7 17.8 Income Producing CRE 30.4 14.8 N. Georgia 64.0 58.5 Commercial Constr. 3.6 2.7 North Carolina 39.7 18.6 Total Commercial 143.0 107.1 Tennessee 25.7 23.5 Residential Mortgage 70.6 32.4 Gainesville 14.8 9.0 Residential HELOC 38.4 20.5 South Carolina 33.7 - Residential Construction 31.5 23.6 Other (Indirect Auto) 105.0 9.8 Consumer 120.3 31.6 Total Markets 403.8$ 215.2$ Total Categories 403.8 215.2 New Loans Funded and Advances MARKET (1) Represents new loans funded and net loan advances (net of payments on lines of credit)

Commercial Loans ( total $2.32 billion) 22 Owner Occupied 48% $1.12B Geographic Diversity Income Producing 27% $.63B C & I 19% $.44B $ in billions East Tennessee $ .145 Gainesville MSA $ .177 Western North Carolina $ .176 Coastal Georgia $ .284 North Georgia $ .577 South Carolina $ .034 Atlanta MSA $.925 0% 12% 24% 36% 6% 7% 8% 12% 25% 40% Average Loan Size Type $ in Thousands Owner Occup’d $427 Income Prod 587 C & I 89 Comm Constr 362 By Loan Type Other 40% 1%

Retail (total $1.54 billion) 23 Geographic Diversity (1) Home Equity LOC 26% $.40B Avg loan size $48,000 $ in millions Gainesville MSA $ .070 Coastal Georgia $ .096 East Tennessee $ .127 Atlanta MSA $ .237 Western North Carolina $ .323 North Georgia $ .538 0% 12% 24% 36% 5% 7% 9% 17% 23% 39% By Loan Type Success with new portfolio products and HELOCs Conservative underwriting 63% of HE Primary Lien Mortgage 57% $.88B Avg loan size $99,000 (1) Excludes indirect auto of $.15B

Residential Construction (total $332 million) 24 Geographic Diversity Raw 11% $36 Lot 52% $173 $ in millions East Tennessee $ 11 Gainesville MSA $ 8 Coastal Georgia $ 18 Atlanta MSA $ 66 Western North Carolina $ 76 North Georgia $ 153 0% 12% 24% 36% 48% 3% 3% 5% 20% 23% 46% By Loan Type Developing 13% $42 2Q13 1Q13 4Q12 3Q12 2Q12 2Q13 vs. 2Q12 TOTAL COMPANY Land Loans Developing 42$ 57$ 62$ 71$ 78$ (36)$ Raw 36 42 46 41 45 (9) Lot 173 188 193 196 203 (30) Total 251 287 301 308 326 (75) Construction Loans Spec 34 40 41 44 49 (15) Sold 47 45 40 37 34 13 Total 81 85 81 81 83 (2) Total 332$ 372$ 382$ 389$ 409$ (77)$

Credit Quality 25 $ in millions 2Q13 1Q13 4Q12 3Q12 2Q12 Net Charge-offs 72.4$ 12.4$ 14.5$ 20.6$ 18.9$ as % of Average Loans 6.87 % 1.21 % 1.39 % 1.99 % 1.85 % Allowance for Loan Losses 81.8$ 105.8$ 107.1$ 107.6$ 112.7$ as % of Total Loans 1.95 % 2.52 % 2.57 % 2.60 % 2.74 % as % of NPLs 294 110 97 94 98 Past Due Loans (30 - 89 Days) .49% .66% .65% .68% .65% Non-Performing Loans 27.9$ 96.0$ 109.9$ 115.0$ 115.4$ OREO 3.9 16.7 18.3 27.0 30.4 Total NPAs 31.8 112.7 128.2 142.0 145.8 Performing Classified Loans 176.3 271.7 261.9 284.0 324.0 Total Classified Assets 208.1$ 384.4$ 390.1$ 426.0$ 469.8$ as % of Tier 1 / Allowance 27 % 49 % 50 % 55 % 62 % Accruing TDRs (see page 27) 77.8$ 126.0$ 122.8$ 138.3$ 141.6$ As % of Original Principal Balance Non-Performing Loans 62.6 % 66.3 % 69.5 % 68.8 % 68.8 % OREO 31.6 45.0 39.7 36.4 39.3 Total NPAs as % of Total Assets .44 1.65 1.88 2.12 2.16 as % of Loans & OREO .76 2.68 3.06 3.41 3.51

Performing Classified Loans 26 $ in millions BY CATEGORY 2Q12 3Q12 4Q12 1Q13 2Q13 Commercial: Commercial & Industrial 16$ 19$ 18$ 20$ 11$ Owner Occupied 54 77 65 71 43 Total C & I 70 96 83 91 54 Income Producing CRE 94 49 53 57 36 Commercial Constr 38 27 19 18 16 Total Commercial 202 172 155 166 106 Residential Mortgage 73 73 65 64 51 Residential Construction 46 35 38 38 17 Consumer / Installment 3 3 4 3 2 Total Performing Classified 324$ 283$ 262$ 271$ 176$ $323.6 $282.5 $261.9 $271.7 $176.3 $175 $225 $275 $325 2Q12 3Q12 4Q12 1Q13 2Q13

$141.6 $138.3 $122.8 $126.0 $77.8 $- $50 $100 $150 $200 2Q12 3Q12 4Q12 1Q13 2Q13 TDRs 27 LOAN TYPE 2Q13 vs. 2Q12 2Q13 vs. 2Q12 2Q13 vs. 2Q12 Commercial (Sec by RE) 40.4$ 65.7$ 2.0$ 8.9$ 42.5$ 74.7$ Commercial & Industrial 2.9 8.6 .1 .3 2.9 8.8 Commercial Construction 12.9 15.8 .1 16.8 13.0 32.6 Total Commercial 56.2 90.1 2.2 26.1 58.4 116.1 Residential Mortgage 14.3 16.8 2.1 2.2 16.4 19.0 Residential Construction 7.2 18.9 2.7 4.4 9.9 23.3 Consumer Installment .2 .2 .1 .1 .2 .3 Total 77.8$ 126.0$ 7.1$ 32.8$ 84.9$ 158.8$ Accruing (1) Non-Accruing Total TDRs $ in millions Accruing TDRs (1) 74 percent of accruing TDR loans have an interest rate of 4 percent or greater Accruing TDR past due 30 – 89 days – 0.99% 35% of accruing TDRs are pass credits

Net Charge - offs by Category & Market 28 $ in thousands NET CHARGE-OFFS BY CATEGORY Total % of Avg Loans 1Q13 4Q12 3Q12 2Q12 Commercial (Sec. by RE): Owner Occupied 16,545$ 5.85 % .69 % 1.76 % 3.56 % .46 % Income Producing 8,921 5.45 1.99 .67 .70 1.75 Total Comm (Sec. by RE) 25,466 5.70 1.18 1.35 1.79 .95 Commercial & Industrial 15,576 13.91 1.34 .12 (.23) .70 Commercial Construction 6,295 17.53 (.01) 4.25 7.74 .21 Total Commercial 47,337 7.96 1.14 1.30 1.81 .86 2.52 Residential Mortgage 5,469 2.52 .79 1.55 1.40 .70 Home Equity LOC 1,040 1.04 .53 .49 .80 2.60 Residential Construction 18,506 20.91 3.22 2.52 5.69 9.14 Consumer/ Installment 56 .10 1.35 1.10 .78 .88 Total Net Charge-offs 72,408$ 6.87 1.21 1.39 1.99 1.85 NET CHARGE-OFFS BY MARKET North Georgia 59,102$ 17.20 % 1.45 % 1.29 % 1.84 % 3.58 % Atlanta MSA 9,986 3.21 1.07 1.27 3.02 .75 North Carolina 1,952 1.36 1.59 1.39 1.15 2.52 Coastal Georgia 480 .49 .85 .60 2.67 .23 Gainesville MSA 123 .19 .67 2.04 .45 (.29) East Tennessee 711 1.01 .98 2.98 .45 .68 South Carolina - - - - - - Other (Indirect Auto) 54 .24 .39 .19 - - 1Q13 % of Average Loans (Annualized)

$145.8 $142.0 $128.2 $112.7 $31.8 $0 $100 $200 2Q12 3Q12 4Q12* 1Q13 2Q13 Non-Performing Loans Foreclosed Properties (OREO) NPAs by Loan Category & Market 29 NPLs OREO Total NPAs NPLs OREO Total NPAs LOAN CATEGORY LOAN CATEGORY Commercial (sec. by RE): Commercial (sec. by RE): Owner Occupied 5,283$ 547$ 5,830$ Owner Occupied 9,399$ 7,914$ 17,313$ Income Producing 1,954 - 1,954 Income Producing 9,716 2,672 12,388 Commercial & Industrial 548 - 548 Commercial & Industrial 34,982 - 34,982 Commercial Construction 504 376 880 Commercial Construction 18,175 2,732 20,907 Total Commercial 8,289 923 9,212 Total Commercial 72,272 13,318 85,590 Residential Mortgage 12,847 1,303 14,150 Residential Mortgage 16,631 5,591 22,222 HELOC 1,491 140 1,631 Residential Construction 4,838 1,570 6,408 Residential Construction 25,530 11,512 37,042 Consumer/ Installment 399 - 399 Consumer/ Installment 907 - 907 Total 27,864$ 3,936$ 31,800$ Total 115,340$ 30,421$ 145,761$ MARKET MARKET Gainesville 1,008$ -$ 1,008$ Gainesville 991$ 2,998$ 3,989$ Coastal Georgia 2,588 627 3,215 Coastal Georgia 5,822 785 6,607 East Tennessee 1,123 200 1,323 East Tennessee 2,945 1,154 4,099 North Carolina 6,512 295 6,807 North Carolina 10,657 3,287 13,944 Atlanta MSA 3,803 1,197 5,000 Atlanta MSA 17,593 8,651 26,244 North Georgia 12,830 1,617 14,447 North Georgia 77,332 13,546 90,878 2Q13 2Q12 *NPAs to total assets – .44% / Allowance to loans at 1.95% Non Performing Assets $ in thousands $ in millions

APPENDIX United Community Banks, Inc. 30

Experienced Proven Leadership 31 Jimmy C. Tallent President & CEO Joined 1984 H. Lynn Harton Chief Operating Officer Joined 2012 Rex S. Schuette EVP & CFO Joined 2001 David P. Shearrow EVP & CRO Joined 2007 Bill M. Gilbert Director of Banking Joined 2000 Timothy K. Schools Chief Strategy Officer Joined 2011 • Over 39 years in banking • Led company from $42 million in assets in 1989 to $7.2 billion today • Trustee of Young Harris College • Georgia Power Company Board Member • GA Economic Developers Association Spirit of Georgia Award recipient • Over 30 years in banking • Responsible for overall operations • Former Consultant and Special Assistant to the CEO and EVP of Commercial Banking for TD Bank Financial Group; and President & CEO of The South Financial Group • Over 35 years in banking • Responsible for accounting, finance and reporting activities, M&A, and investor relations • Former CAO and Controller for State Street Corporation • Former ABA Accounting Committee Chairman • Over 30 years in banking • Responsible for Risk Management and Credit Risk Administration; Co - Chairman of Risk Management Committee; also responsible for credit underwriting, review, policy and special assets • Former EVP & SCO for SunTrust Banks • Over 35 years in banking • Responsible for 27 community banks with 103 branch offices • Formerly of Riegel Textile Credit Union; President of Farmers and Merchants Bank • Former Georgia Board of Natural Resources Board Chairman • Over 20 years in financial services and banking • Responsible for strategic planning and implementation • Former President of American Savings Bank; and CFO & CRO of The South Financial Group

Market Share Opportunities & Demographics 32 Population Actual Projected Markets 1 (in thousands) 2010 - 2012 2012 - 2017 Atlanta, GA MSA 5,365 2% 5% East Tennessee 868 2 4 Greenville-Mauldin-Easley, SC MSA 651 2 6 Western North Carolina 446 2 4 Coastal Georgia 390 2 7 North Georgia 387 1 2 Gainesville, GA MSA 182 1 6 Total Markets Georgia 9,858 2 5 North Carolina 9,759 2 6 Tennessee 6,452 2 4 South Carolina 4,740 2 6 United States 313,129 1 3 ¹ Population data is for 2012 and includes those markets where United takes deposits. No deposits in SC. Data Source: SNL Population Growth (%) FAST GROWING MARKETS North Georgia $ 6.4 $ 2.2 11 22 32% 1 Western North Carolina 6.4 .9 1 20 12 3 Gainesville MSA 2.6 .3 1 5 12 5 Atlanta MSA 50.2 2.0 10 37 4 7 Coastal Georgia 7.3 .3 2 8 4 8 East Tennessee 16.0 .3 2 8 2 9 Total Markets $ 88.9 $ 6.0 27 100 ¹ FDIC deposit market share and rank as of 6/12 for markets where United takes deposits. Data Source: SNL and FDIC. 2 Based on current quarter. 3 Excludes four loan production offices EXCELLENT GROWTH OPPORTUNITIES Markets Banks Offices (3) Rank (1) Market Deposits (in billions) (1) United Deposits (in billions) (2,3) Deposit Share (1) “There is only one boss. The customer . And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.” - Sam Walton

LOANS / DEPOSITS WHOLESALE BORROWINGS Liquidity 33 $ in millions 2Q13 1Q13 2Q12 vs 2Q12 Loans 4,189$ 4,194$ 4,119$ (5)$ 70$ Core (DDA, MMDA, Savings) 3,322$ 3,295$ 3,066$ 27$ 256$ Public Funds 707 732 659 (25) 48 CD's 1,608 1,667 1,887 (59) (279) Total Deposits (excl Brokered) 5,637$ 5,694$ 5,612$ (57)$ 25$ Loan to Deposit Ratio 74% 74% 73% Investment Securities: Available for Sale-Fixed 1,120$ 1,193$ 1,259$ (73)$ (139)$ -Floating 817 716 442 101 375 Held to Maturity -Fixed 197 211 257 (14) (60) -Floating 18 21 26 (3) (8) Total Investment Securities 2,152 2,141 1,984 11 168 Percent of Assets (Excludes Floating) 18% 20% 19% vs 1Q12 Variance Unused Capacity 2Q13 1Q13 2Q12 vs 1Q13 vs 2Q12 Wholesale Borrowings Brokered Deposits 1,416$ (1) 375$ 332$ 211$ 43$ 164$ FHLB 1,160 70 - 125 70 (55) Fed Funds 130 - - - - - Other Wholesale - 54 52 54 2 - Total 2,706$ 499$ 384$ 390$ 115$ 109$ Long-Term Debt Senior Debt 35$ 35$ -$ -$ 35$ Sub-Debt 35 35 65 - (30) Trust Preferred Securities 55 55 55 - - Total Long-Term Debt 125$ 125$ 120$ -$ 5$ (1) Estimated Brokered Deposit Total Capacity at 25% of Assets Variance

Business Mix – Deposits at quarter - end 34 $ in millions 2Q13 vs. DEPOSITS BY CATEGORY 2Q13 1Q13 4Q12 3Q12 2Q12 2Q12 Demand & Now 1,916$ 1,894$ 1,841$ 1,796$ 1,735$ 181$ MMDA & Savings 1,406 1,401 1,372 1,342 1,330 76 Core Transaction Deposits 3,322 3,295 3,213 3,138 3,065 257 Time < $100,000 977 1,014 1,050 1,118 1,159 (182) Time ≥ $100,000 < $250,000 512 528 547 598 625 (113) Public Deposits 674 700 739 612 623 51 Total Core Deposits 5,485 5,537 5,549 5,466 5,472 13 Time ≥ $250,000 120 125 127 101 103 17 Public Deposits 32 32 31 32 36 (4) Total Customer Deposits 5,637 5,694 5,707 5,599 5,611 26 Brokered Deposits 375 332 245 224 211 164 Total Deposits 6,012$ 6,026$ 5,952$ 5,823$ 5,822$ 190$

Core Transaction Deposits 35 $1,271 $886 $567 $212 $211 $175 $1,282 $874 $546 $205 $212 $176 $0 $200 $400 $600 $800 $1,000 $1,200 Atlanta MSA North Georgia North Carolina Gainesville MSA Coastal Georgia East Tennessee 1Q13 2Q13 Core Transactions / Total Deposits % 1Q13 Coastal GA 67.6 % 68.0 % Gainesville MSA 67.0 65.0 North Carolina 62.6 60.1 Atlanta MSA 62.1 61.9 East TN 61.5 60.2 North Georgia 50.0 48.7 Total 58.9 % 57.9 % 2Q13 $ in millions

Lending & Credit Environment 36 Regional Credit Review – Standard Underwriting • Legal Lending Limit $221 • House Lending Limit 132 • Project Lending Limit 12 • Top 25 Relationships 345 PROACTIVELY ADDRESSING CREDIT ENVIRONMENT STRUCTURE PROCESS POLICY • Centralized underwriting and approval process • Segregated work - out teams • Highly skilled ORE disposition group • Seasoned regional credit professionals • Continuous external loan review • Internal loan review of new credit relationships • Intensive executive management involvement x Weekly past due meetings x Weekly NPA/ORE meetings x Quarterly criticized watch loan review meetings x Quarterly pass commercial and CRE portfolio review meetings • Ongoing enhancements to credit policy • Periodic updates to portfolio limits $ in millions

Commercial Construction & Real Estate 37 Amount Percent Land Develop - Vacant (Improved) 54.1$ 41 % Raw Land - Vacant (Unimproved) 34.8 26 Commercial Land Development 16.2 12 Churches 8.8 7 Office Buildings 8.3 6 Warehouse 2.7 2 Hotels / Motels 2.2 2 Miscellaneous 5.4 4 Total Commercial Construction 132.6$ 30-Jun-13 COMMERCIAL CONSTRUCTION $ in millions Owner Occupied Income Producing Total Percent Office Buildings 304.4$ 175.1$ 479.5$ 27 % Retail 108.8 127.2 236.0 14 Small Warehouses / Storage 125.3 58.6 183.9 11 Churches 133.8 - 133.8 8 Convenience Stores 85.9 15.9 101.8 6 Other Properties 61.8 32.0 93.8 5 Hotels / Motels - 86.1 86.1 5 Franchise / Restaurants 37.8 33.7 71.5 4 Farmland 58.5 - 58.5 3 Multi-Residential / Other Properties - 57.7 57.7 3 Manufacturing Facility 48.9 6.5 55.4 3 Leasehold Property 17.1 13.3 30.4 2 Golf Course / Recreation 29.9 - 29.9 2 Auto Dealership / Service 21.9 3.2 25.1 1 Automotive Service 17.6 5.6 23.2 1 Daycare Facility 11.5 7.2 18.7 1 Funeral Home 16.0 .6 16.6 1 Carwash 16.2 .3 16.5 1 Movie Theater / Bowling Recreation 9.5 - 9.5 1 Marina 9.2 - 9.2 1 Mobile Home Parks - 6.1 6.1 0 Assisted Living / Nursing Home 4.9 - 4.9 0 Total Commercial Real Estate 1,119.0$ 629.1$ 1,748.1$ 30-Jun-13 COMMERCIAL REAL ESTATE Average Loan Size ($ in thousands) • Commercial Construction $362K • Commercial RE: • Composite CRE 462 • Owner Occupied 427 • Income Producing 587 Commercial RE Characteristics • 64.0% owner occupied • Small business, doctors, dentists, attorneys, CPAs • $12 million project limit

Loans by Business Mix and Region 38 $ in millions 2Q13 1Q13 4Q12 3Q12 2Q12 2Q13 vs. 2Q12 QUARTERLY LOANS - BUSINESS MIX BY CATEGORY Commercial: Comm & Indus 437$ 454$ 458$ 460$ 450$ (13)$ Owner Occ'd 1,119 1,130 1,131 1,126 1,140 (21) Total C & I 1,556 1,584 1,589 1,586 1,590 (34) Income Prod CRE 629 674 682 693 697 (68) Comm Constr 133 152 155 161 169 (36) Total Comm 2,318 2,410 2,426 2,440 2,456 (138) Resi Mortgage 1,278 1,246 1,214 1,174 1,128 150 Resi Constr 332 372 382 389 409 (77) Consum / Install 261 166 153 135 126 135 Total Loans 4,189$ 4,194$ 4,175$ 4,138$ 4,119$ 70$ 2Q13 1Q13 4Q12 3Q12 2Q12 2Q13 vs. 2Q12 QUARTERLY LOANS - BY REGION North Georgia 1,265$ 1,363$ 1,364$ 1,382$ 1,387$ (122)$ Atlanta MSA 1,227 1,262 1,250 1,238 1,242 (15) North Carolina 576 575 579 579 576 - Coastal Georgia 397 398 400 380 369 28 Gainesville MSA 256 259 261 256 259 (3) East Tennessee 282 282 283 283 276 6 South Carolina 34 - - - - 34 Other (Ind. Auto) 152 55 38 20 10 142 Total Loans 4,189$ 4,194$ 4,175$ 4,138$ 4,119$ 70$ 2012 2011 2010 2009 2008 ANNUAL LOANS - BUSINESS MIX BY CATEGORY Commercial: Comm & Indus 458$ 428$ 441$ 390$ 410$ Owner Occ'd 1,131 1,112 980 963 956 Total C & I 1,589 1,540 1,421 1,353 1,366 Income Prod CRE 682 710 781 816 671 Comm Constr 155 164 297 363 500 Total Comm 2,426 2,414 2,499 2,532 2,537 Resi Mortgage 1,214 1,135 1,279 1,427 1,526 Resi Constr 382 448 695 1,050 1,479 Consum / Install 153 113 131 142 163 Total Loans 4,175$ 4,110$ 4,604$ 5,151$ 5,705$ 2012 2011 2010 2009 2008 ANNUAL LOANS - BY REGION North Georgia 1,364$ 1,426$ 1,689$ 1,884$ 2,040$ Atlanta MSA 1,250 1,220 1,310 1,435 1,706 North Carolina 579 597 702 772 810 Coastal Georgia 400 346 335 405 464 Gainesville MSA 261 265 312 390 420 East Tennessee 283 256 256 265 265 South Carolina - - - - - Other (Ind. Auto) 38 - - - - Total Loans 4,175$ 4,110$ 4,604$ 5,151$ 5,705$

Non GAAP Reconciliation Tables 39 2Q13 1Q13 4Q12 3Q12 2Q12 CORE FEE REVENUE Core fee revenue 14,063$ 12,618$ 14,551$ 13,003$ 12,764$ Securities gains, net - 116 31 - 6,490 Loss on prepayment of borrowings - - - - (6,199) Gains from sales of low income housing tax credits 468 - - - - Hedge ineffectiveness gains (losses) 369 (85) 116 608 (180) BOLI death benefit gain 1,366 - - - - Mark to market on deferred compensation plan assets 46 177 63 153 (8) Fee revenue (GAAP) 16,312$ 12,826$ 14,761$ 13,764$ 12,867$ CORE OPERATING EXPENSE Core operating expense 42,067$ 40,900$ 41,489$ 40,523$ 41,312$ Foreclosed property expense 5,151 2,333 4,611 3,706 1,851 Severance 1,559 360 563 401 1,155 Provision for litigation settlement - - 4,000 - - Mark to market on deferred compensation plan liability 46 177 63 153 (8) Operating expense (GAAP) 48,823$ 43,770$ 50,726$ 44,783$ 44,310$ TANGIBLE COMMON EQUITY AND TANGIBLE EQUITY TO TANGIBLE ASSETS Tangible common equity to tangible assets 6.30 % 5.66 % 5.67 % 5.73 % 5.45 % Effect of preferred equity 2.83 2.87 2.88 2.93 2.79 Tangible equity to tangible assets 9.13 8.53 8.55 8.66 8.24 Effect of goodwill and other intangibles .06 .07 .08 .09 .09 Equity to assets (GAAP) 9.19 % 8.60 % 8.63 % 8.75 % 8.33 % TANGIBLE COMMON EQUITY TO RISK-WEIGHTED ASSETS Tangible common equity to risk-weighted assets 13.16 % 8.45 % 8.26 % 8.44 % 8.37 % Effect of preferred equity 4.11 4.22 4.24 4.29 4.35 Tangible equity to risk weighted assets 17.27 12.67 12.50 12.73 12.72 Effect of deferred tax limitation (4.99) - - - - Effect of other comprehensive income .29 .49 .51 .36 .28 Effect of trust preferred 1.11 1.15 1.15 1.17 1.19 Tier I capital ratio (Regulatory) 13.68 % 14.31 % 14.16 % 14.26 % 14.19 % Operating Earnings to GAAP Earnings Reconciliation $ in thousands