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 24, 2014

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:

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

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

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

o 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 24, 2014, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the quarter ended June 30, 2014 (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 24, 2014 at 11:00 a.m. ET, 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 2014 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 24, 2014
99.2	Investor Presentation, Second Quarter 2014

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 24, 2014

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 $16.4 MILLION FOR SECOND QUARTER 2014

● 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

BLAIRSVILLE, GA – July 24, 2014 – United Community Banks, Inc. (NASDAQ: 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.

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“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.

2

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.”

3

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.

# # #

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UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
																Second			For the Six
	2014						2013									Quarter			Months Ended						YTD
(in thousands, except per share	Second			First			Fourth			Third			Second			2014-2013			June 30,						2014-2013
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			Change				2014			2013		Change
INCOME SUMMARY
Interest revenue	$	61,783		$	60,495		$	61,695		$	61,426		$	62,088					$	122,278		$	124,202
Interest expense		6,833			6,326			5,816			7,169			7,157						13,159			14,697
Net interest revenue		54,950			54,169			55,879			54,257			54,931			-	%		109,119			109,505			-	%
Provision for credit losses		2,200			2,500			3,000			3,000			48,500						4,700			59,500
Fee revenue		14,143			12,176			13,519			14,225			15,943			(11	)		26,319			28,854			(9	)
Total revenue		66,893			63,845			66,398			65,482			22,374						130,738			78,859
Operating expenses		40,532			39,050			41,614			40,097			48,823			(17	)		79,582			92,593			(14	)
Income (loss) before income taxes		26,361			24,795			24,784			25,385			(26,449	)					51,156			(13,734	)
Income tax expense (benefit)		10,004			9,395			8,873			9,885			(256,413	)					19,399			(255,463	)
Net income		16,357			15,400			15,911			15,500			229,964						31,757			241,729
Preferred dividends and discount accretion		-			439			2,912			3,059			3,055						439			6,107
Net income available to common shareholders	$	16,357		$	14,961		$	12,999		$	12,441		$	226,909					$	31,318		$	235,622
PERFORMANCE MEASURES
Per common share:
Diluted income	$	.27		$	.25		$	.22		$	.21		$	3.90					$	.52		$	4.05
Book value		11.94			11.66			11.30			10.99			10.90			10			11.94			10.90			10
Tangible book value (2)		11.91			11.63			11.26			10.95			10.82			10			11.91			10.82			10
Key performance ratios:
Return on common equity (1)(3)		8.99	%		8.64	%		7.52	%		7.38	%		197.22	%					8.82	%		108.34	%
Return on assets (3)		.88			.85			.86			.86			13.34						.87			7.09
Net interest margin (3)		3.21			3.21			3.26			3.26			3.33						3.21			3.35
Efficiency ratio		58.65			59.05			60.02			58.55			68.89						58.85			66.98
Equity to assets		9.61			9.52			11.62			11.80			11.57	(4)					9.56			8.90
Tangible equity to assets (2)		9.58			9.50			11.59			11.76			11.53	(4)					9.54			8.83
Tangible common equity to assets (2)		9.58			9.22			8.99			9.02			8.79	(4)					9.40			5.99
Tangible common equity to risk-weighted assets (2)		13.92			13.63			13.18			13.34			13.16						13.92			13.16
ASSET QUALITY *
Non-performing loans	$	20,724		$	25,250		$	26,819		$	26,088		$	27,864					$	20,724		$	27,864
Foreclosed properties		2,969			5,594			4,221			4,467			3,936						2,969			3,936
Total non-performing assets (NPAs)		23,693			30,844			31,040			30,555			31,800						23,693			31,800
Allowance for loan losses		73,248			75,223			76,762			80,372			81,845						73,248			81,845
Net charge-offs		4,175			4,039			4,445			4,473			72,408						8,214			84,792
Allowance for loan losses to loans		1.66	%		1.73	%		1.77	%		1.88	%		1.95	%					1.66	%		1.95	%
Net charge-offs to average loans (3)		.38			.38			.41			.42			6.87						.38			4.07
NPAs to loans and foreclosed properties		.54			.71			.72			.72			.76						.54			.76
NPAs to total assets		.32			.42			.42			.42			.44						.32			.44
AVERAGE BALANCES ($ in millions)
Loans	$	4,376		$	4,356		$	4,315		$	4,250		$	4,253			3		$	4,366		$	4,225			3
Investment securities		2,326			2,320			2,280			2,178			2,161			8			2,323			2,151			8
Earning assets		6,861			6,827			6,823			6,615			6,608			4			6,844			6,578			4
Total assets		7,418			7,384			7,370			7,170			6,915			7			7,401			6,875			8
Deposits		6,187			6,197			6,190			5,987			5,983			3			6,192			5,964			4
Shareholders’ equity		713			703			856			846			636			12			708			612			16
Common shares - basic (thousands)		60,712			60,059			59,923			59,100			58,141						60,386			58,111
Common shares - diluted (thousands)		60,714			60,061			59,925			59,202			58,141						60,388			58,111
AT PERIOD END ($ in millions)
Loans *	$	4,410		$	4,356		$	4,329		$	4,267		$	4,189			5		$	4,410		$	4,189			5
Investment securities		2,190			2,302			2,312			2,169			2,152			2			2,190			2,152			2
Total assets		7,352			7,398			7,425			7,243			7,163			3			7,352			7,163			3
Deposits		6,164			6,248			6,202			6,113			6,012			3			6,164			6,012			3
Shareholders’ equity		722			704			796			852			829			(13	)		722			829			(13	)
Common shares outstanding (thousands)		60,139			60,092			59,432			59,412			57,831						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									For the Six Months
(in thousands, except per share	Second			First			Fourth			Third			Second			Ended June 30,
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			2014			2013
Interest revenue reconciliation
Interest revenue - taxable equivalent	$	61,783		$	60,495		$	61,695		$	61,426		$	62,088		$	122,278		$	124,202
Taxable equivalent adjustment		(377	)		(357	)		(380	)		(370	)		(368	)		(734	)		(733	)
Interest revenue (GAAP)	$	61,406		$	60,138		$	61,315		$	61,056		$	61,720		$	121,544		$	123,469
Net interest revenue reconciliation
Net interest revenue - taxable equivalent	$	54,950		$	54,169		$	55,879		$	54,257		$	54,931		$	109,119		$	109,505
Taxable equivalent adjustment		(377	)		(357	)		(380	)		(370	)		(368	)		(734	)		(733	)
Net interest revenue (GAAP)	$	54,573		$	53,812		$	55,499		$	53,887		$	54,563		$	108,385		$	108,772
Total revenue reconciliation
Total operating revenue	$	66,893		$	63,845		$	66,398		$	65,482		$	22,374		$	130,738		$	78,859
Taxable equivalent adjustment		(377	)		(357	)		(380	)		(370	)		(368	)		(734	)		(733	)
Total revenue (GAAP)	$	66,516		$	63,488		$	66,018		$	65,112		$	22,006		$	130,004		$	78,126
Income (loss) before taxes reconciliation
Income (loss) before taxes	$	26,361		$	24,795		$	24,784		$	25,385		$	(26,449	)	$	51,156		$	(13,734	)
Taxable equivalent adjustment		(377	)		(357	)		(380	)		(370	)		(368	)		(734	)		(733	)
Income (loss) before taxes (GAAP)	$	25,984		$	24,438		$	24,404		$	25,015		$	(26,817	)	$	50,422		$	(14,467	)
Income tax expense (benefit) reconciliation
Income tax expense (benefit)	$	10,004		$	9,395		$	8,873		$	9,885		$	(256,413	)	$	19,399		$	(255,463	)
Taxable equivalent adjustment		(377	)		(357	)		(380	)		(370	)		(368	)		(734	)		(733	)
Income tax expense (benefit) (GAAP)	$	9,627		$	9,038		$	8,493		$	9,515		$	(256,781	)	$	18,665		$	(256,196	)
Book value per common share reconciliation
Tangible book value per common share	$	11.91		$	11.63		$	11.26		$	10.95		$	10.82		$	11.91		$	10.82
Effect of goodwill and other intangibles		.03			.03			.04			.04			.08			.03			.08
Book value per common share (GAAP)	$	11.94		$	11.66		$	11.30		$	10.99		$	10.90		$	11.94		$	10.90
Average equity to assets reconciliation
Tangible common equity to assets		9.58	%		9.22	%		8.99	%		9.02	%		8.79	%		9.40	%		5.99	%
Effect of preferred equity		-			.28			2.60			2.74			2.74			.14			2.84
Tangible equity to assets		9.58			9.50			11.59			11.76			11.53			9.54			8.83
Effect of goodwill and other intangibles		.03			.02			.03			.04			.04			.02			.07
Equity to assets (GAAP)		9.61	%		9.52	%		11.62	%		11.80	%		11.57	%		9.56	%		8.90	%
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	%		13.92	%		13.16	%
Effect of other comprehensive income		.53			.36			.39			.49			.29			.53			.29
Effect of deferred tax limitation		(3.74	)		(3.92	)		(4.26	)		(4.72	)		(4.99	)		(3.74	)		(4.99	)
Effect of trust preferred		1.04			1.03			1.04			1.09			1.11			1.04			1.11
Effect of preferred equity		-			-			2.39			4.01			4.11			-			4.11
Tier I capital ratio (Regulatory)		11.75	%		11.10	%		12.74	%		14.21	%		13.68	%		11.75	%		13.68	%

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)
	2014				2013						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	$	1,163	$	1,142	$	1,134	$	1,129	$	1,119	$	21		$	44
Income producing commercial RE		598		624		623		614		629		(26	)		(31	)
Commercial & industrial		554		495		472		457		437		59			117
Commercial construction		160		148		149		137		133		12			27
Total commercial		2,475		2,409		2,378		2,337		2,318		66			157
Residential mortgage		861		866		875		888		876		(5	)		(15	)
Home equity lines of credit		451		447		441		421		402		4			49
Residential construction		302		318		328		318		332		(16	)		(30	)
Consumer installment		321		316		307		303		261		5			60
Total loans	$	4,410	$	4,356	$	4,329	$	4,267	$	4,189		54			221
LOANS BY MARKET
North Georgia	$	1,175	$	1,205	$	1,240	$	1,262	$	1,265		(30	)		(90	)
Atlanta MSA		1,305		1,290		1,275		1,246		1,227		15			78
North Carolina		555		563		572		575		576		(8	)		(21	)
Coastal Georgia		426		425		423		421		397		1			29
Gainesville MSA		257		262		255		253		256		(5	)		1
East Tennessee		270		272		280		277		282		(2	)		(12	)
South Carolina / Corporate		206		131		88		47		34		75			172
Other (2)		216		208		196		186		152		8			64
Total loans	$	4,410	$	4,356	$	4,329	$	4,267	$	4,189		54			221
RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development	$	34	$	37	$	39	$	40	$	42		(3	)		(8	)
Land loans		36		37		38		35		36		(1	)		-
Lot loans		151		159		166		167		173		(8	)		(22	)
Total		221		233		243		242		251		(12	)		(30	)
House loans
Spec		19		19		23		30		34		-			(15	)
Sold		62		66		62		46		47		(4	)		15
Total		81		85		85		76		81		(4	)		-
Total residential construction	$	302	$	318	$	328	$	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									First Quarter 2014									Fourth Quarter 2013
	Non-performing			Foreclosed			Total			Non-performing			Foreclosed			Total			Non-performing			Foreclosed			Total
(in thousands)	Loans			Properties			NPAs			Loans			Properties			NPAs			Loans			Properties			NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE	$	2,975		$	653		$	3,628		$	3,868		$	1,167		$	5,035		$	5,822		$	832		$	6,654
Income producing CRE		1,032			242			1,274			1,278			1,645			2,923			2,518			-			2,518
Commercial & industrial		1,102			-			1,102			822			-			822			427			-			427
Commercial construction		95			-			95			479			-			479			361			-			361
Total commercial		5,204			895			6,099			6,447			2,812			9,259			9,128			832			9,960
Residential mortgage		10,201			1,426			11,627			13,307			2,146			15,453			11,730			2,684			14,414
Home equity lines of credit		510			128			638			1,106			362			1,468			1,448			389			1,837
Residential construction		4,248			520			4,768			3,805			274			4,079			4,264			316			4,580
Consumer installment		561			-			561			585			-			585			249			-			249
Total NPAs	$	20,724		$	2,969		$	23,693		$	25,250		$	5,594		$	30,844		$	26,819		$	4,221		$	31,040
Balance as a % of
Unpaid Principal		66.5	%		50.4	%		63.9	%		65.8	%		53.9	%		63.2	%		65.3	%		44.5	%		61.4	%
NONPERFORMING ASSETS BY MARKET
North Georgia	$	8,216		$	1,392		$	9,608		$	12,166		$	2,058		$	14,224		$	12,352		$	2,494		$	14,846
Atlanta MSA		3,883			510			4,393			2,916			904			3,820			2,830			684			3,514
North Carolina		5,314			615			5,929			6,501			866			7,367			6,567			683			7,250
Coastal Georgia		782			80			862			800			1,607			2,407			2,342			173			2,515
Gainesville MSA		921			49			970			1,145			-			1,145			928			-			928
East Tennessee		1,218			323			1,541			1,428			159			1,587			1,800			187			1,987
South Carolina / Corporate		-			-			-			-			-			-			-			-			-
Other (3)		390			-			390			294			-			294			-			-			-
Total NPAs	$	20,724		$	2,969		$	23,693		$	25,250		$	5,594		$	30,844		$	26,819		$	4,221		$	31,040
NONPERFORMING ASSETS ACTIVITY
Beginning Balance	$	25,250		$	5,594		$	30,844		$	26,819		$	4,221		$	31,040		$	26,088		$	4,467		$	30,555
Loans placed on non-accrual		9,529			-			9,529			9,303			-			9,303			11,043			-			11,043
Payments received		(4,027	)		-			(4,027	)		(1,666	)		-			(1,666	)		(1,688	)		-			(1,688	)
Loan charge-offs		(8,341	)		-			(8,341	)		(4,839	)		-			(4,839	)		(4,621	)		-			(4,621	)
Foreclosures		(1,687	)		1,687			-			(4,367	)		4,367			-			(4,003	)		4,003			-
Capitalized costs		-			-			-			-			-			-			-			-			-
Property sales		-			(4,430	)		(4,430	)		-			(3,238	)		(3,238	)		-			(4,684	)		(4,684	)
Write downs		-			(305	)		(305	)		-			(277	)		(277	)		-			(326	)		(326	)
Net gains (losses) on sales		-			423			423			-			521			521			-			761			761
Ending Balance	$	20,724		$	2,969		$	23,693		$	25,250		$	5,594		$	30,844		$	26,819		$	4,221		$	31,040

	Second Quarter 2014						First Quarter 2014					Fourth Quarter 2013
(in thousands)	Net Charge-Offs			Net Charge- Offs to Average Loans (2)			Net Charge-Offs		Net Charge- Offs to Average Loans (2)			Net Charge-Offs			Net Charge- Offs to Average Loans (2)
NET CHARGE-OFFS BY CATEGORY
Owner occupied CRE	$	(1,836	)		(.64	)%	$	278		.10	%	$	1,638			.57	%
Income producing CRE		435			.29			205		.13			320			.21
Commercial & industrial		662			.52			421		.35			(149	)		(.13	)
Commercial construction		131			.34			-		-			(9	)		(.02	)
Total commercial		(608	)		(.10	)		904		.15			1,800			.30
Residential mortgage		2,509			1.17			1,515		.71			1,426			.64
Home equity lines of credit		466			.42			993		.90			417			.38
Residential construction		1,671			2.13			212		.27			327			.40
Consumer installment		137			.18			415		.54			475			.62
Total	$	4,175			.38		$	4,039		.38		$	4,445			.41
NET CHARGE-OFFS BY MARKET
North Georgia	$	(741	)		(.25	)%	$	1,272		.42	%	$	1,603			.51	%
Atlanta MSA		1,481			.46			1,232		.39			636			.20
North Carolina		2,161			1.55			577		.41			1,104			.76
Coastal Georgia		116			.11			512		.49			345			.33
Gainesville MSA		797			1.23			141		.22			346			.54
East Tennessee		288			.42			239		.35			323			.46
South Carolina / Corporate		-			-			-		-			-			-
Other (3)		73			.14			66		.14			88			.20
Total	$	4,175			.38		$	4,039		.38		$	4,445			.41

(1)	Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2)	Annualized.
(3)	Includes purchased indirect auto loans that are not assigned to a geographic region.

UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands, except per share data)	2014			2013			2014			2013
Interest revenue:
Loans, including fees	$	48,261		$	50,730		$	95,949		$	101,665
Investment securities, including tax exempt of $193, $210, $381 and $422		12,165			10,074			23,772			20,018
Deposits in banks and short-term investments		980			916			1,823			1,786
Total interest revenue		61,406			61,720			121,544			123,469
Interest expense:
Deposits:
NOW		411			419			851			873
Money market		757			534			1,320			1,096
Savings		21			36			41			72
Time		2,018			2,950			3,789			6,241
Total deposit interest expense		3,207			3,939			6,001			8,282
Short-term borrowings		908			522			1,748			1,038
Federal Home Loan Bank advances		80			30			138			49
Long-term debt		2,638			2,666			5,272			5,328
Total interest expense		6,833			7,157			13,159			14,697
Net interest revenue		54,573			54,563			108,385			108,772
Provision for credit losses		2,200			48,500			4,700			59,500
Net interest revenue after provision for credit losses		52,373			6,063			103,685			49,272
Fee revenue:
Service charges and fees		8,527			7,972			16,425			15,375
Mortgage loan and other related fees		1,877			3,003			3,231			5,658
Brokerage fees		1,245			1,063			2,422			1,830
Securities gains, net		4,435			-			4,652			116
Loss from prepayment of debt		(4,446	)		-			(4,446	)		-
Other		2,505			3,905			4,035			5,875
Total fee revenue		14,143			15,943			26,319			28,854
Total revenue		66,516			22,006			130,004			78,126
Operating expenses:
Salaries and employee benefits		24,287			24,734			48,683			48,326
Communications and equipment		3,037			3,468			6,276			6,514
Occupancy		3,262			3,449			6,640			6,816
Advertising and public relations		1,139			1,037			1,765			1,975
Postage, printing and supplies		804			894			1,580			1,757
Professional fees		2,172			2,499			3,599			4,865
Foreclosed property		102			5,151			218			7,484
FDIC assessments and other regulatory charges		1,425			2,505			2,778			5,010
Amortization of intangibles		361			491			748			1,196
Other		3,943			4,595			7,295			8,650
Total operating expenses		40,532			48,823			79,582			92,593
Net income (loss) before income taxes		25,984			(26,817	)		50,422			(14,467	)
Income tax expense (benefit)		9,627			(256,781	)		18,665			(256,196	)
Net income		16,357			229,964			31,757			241,729
Preferred stock dividends and discount accretion		-			3,055			439			6,107
Net income available to common shareholders	$	16,357		$	226,909		$	31,318		$	235,622
Earnings per common share:
Basic	$	.27		$	3.90		$	.52		$	4.05
Diluted		.27			3.90			.52			4.05
Weighted average common shares outstanding:
Basic		60,712			58,141			60,386			58,111
Diluted		60,714			58,141			60,388			58,111

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet (Unaudited)
	June 30,			December 31,			June 30,
(in thousands, except share and per share data)	2014			2013			2013
ASSETS
Cash and due from banks	$	91,791		$	71,230		$	62,564
Interest-bearing deposits in banks		100,270			119,669			141,016
Short-term investments		47,999			37,999			57,000
Cash and cash equivalents		240,060			228,898			260,580
Securities available for sale		1,741,268			1,832,217			1,937,264
Securities held to maturity (fair value $458,864, $485,585 and $226,695)		448,752			479,742			214,947
Mortgage loans held for sale		14,918			10,319			19,150
Loans, net of unearned income		4,410,285			4,329,266			4,189,368
Less allowance for loan losses		(73,248	)		(76,762	)		(81,845	)
Loans, net		4,337,037			4,252,504			4,107,523
Assets covered by loss sharing agreements with the FDIC		3,595			22,882			35,675
Premises and equipment, net		161,614			163,589			167,197
Bank owned life insurance		80,922			80,670			82,276
Accrued interest receivable		19,141			19,598			19,279
Intangible assets		2,731			3,480			4,315
Foreclosed property		2,969			4,221			3,936
Net deferred tax asset		233,149			258,518			272,287
Derivative financial instruments		22,024			23,833			9,017
Other assets		43,886			44,948			29,189
Total assets	$	7,352,066		$	7,425,419		$	7,162,635
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand	$	1,519,635		$	1,388,512		$	1,349,804
NOW		1,334,883			1,427,939			1,225,664
Money market		1,245,912			1,227,575			1,167,889
Savings		279,203			251,125			247,821
Time:
Less than $100,000		805,289			892,961			982,009
Greater than $100,000		554,310			588,689			664,112
Brokered		424,313			424,704			374,530
Total deposits		6,163,545			6,201,505			6,011,829
Short-term borrowings		76,256			53,241			54,163
Federal Home Loan Bank advances		175,125			120,125			70,125
Long-term debt		129,865			129,865			124,845
Derivative financial instruments		36,545			46,232			29,330
Unsettled securities purchases		7,264			29,562			1,582
Accrued expenses and other liabilities		41,497			49,174			41,458
Total liabilities		6,630,097			6,629,704			6,333,332
Shareholders’ equity:
Preferred stock, $1 par value; 10,000,000 shares authorized;
Series A; $10 stated value; 0, 0 and 21,700 shares issued and outstanding		-			-			217
Series B; $1,000 stated value; 0, 105,000 and 180,000 shares issued and outstanding		-			105,000			179,323
Series D; $1,000 stated value; 0, 16,613 and 16,613 shares issued and outstanding		-			16,613			16,613
Common stock, $1 par value; 100,000,000 shares authorized;
50,058,295, 46,243,345 and 43,356,492 shares issued and outstanding		50,058			46,243			43,356
Common stock, non-voting, $1 par value; 26,000,000 shares authorized;
10,080,787, 13,188,206 and 14,474,810 shares issued and outstanding		10,081			13,188			14,475
Common stock issuable; 314,039, 241,832 and 271,215 shares		4,649			3,930			4,705
Capital surplus		1,091,780			1,078,676			1,057,931
Accumulated deficit		(418,583	)		(448,091	)		(473,531	)
Accumulated other comprehensive loss		(16,016	)		(19,844	)		(13,786	)
Total shareholders’ equity		721,969			795,715			829,303
Total liabilities and shareholders’ equity	$	7,352,066		$	7,425,419		$	7,162,635

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended June 30,
	2014								2013
	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)	$	4,376,174		$	48,435		4.44	%	$	4,253,361		$	50,808		4.79	%
Taxable securities (3)		2,306,457			11,972		2.08			2,139,221			9,864		1.84
Tax-exempt securities (1)(3)		19,592			316		6.45			21,597			344		6.37
Federal funds sold and other interest-earning assets		158,418			1,060		2.68			193,370			1,072		2.22
Total interest-earning assets		6,860,641			61,783		3.61			6,607,549			62,088		3.77
Non-interest-earning assets:
Allowance for loan losses		(76,843	)							(106,417	)
Cash and due from banks		63,853								63,457
Premises and equipment		161,443								168,272
Other assets (3)		408,768								181,987
Total assets	$	7,417,862							$	6,914,848
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,356,141			411		.12		$	1,245,301			419		.13
Money market		1,361,045			757		.22			1,306,522			534		.16
Savings		275,540			21		.03			245,211			36		.06
Time less than $100,000		818,048			933		.46			1,000,511			1,568		.63
Time greater than $100,000		563,489			865		.62			674,200			1,380		.82
Brokered time deposits		334,919			220		.26			195,182			2		.00
Total interest-bearing deposits		4,709,182			3,207		.27			4,666,927			3,939		.34
Federal funds purchased and other borrowings		108,311			908		3.36			72,139			522		2.90
Federal Home Loan Bank advances		154,795			80		.21			58,916			30		.20
Long-term debt		129,865			2,638		8.15			124,838			2,666		8.57
Total borrowed funds		392,971			3,626		3.70			255,893			3,218		5.04
Total interest-bearing liabilities		5,102,153			6,833		.54			4,922,820			7,157		.58
Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,477,849								1,315,812
Other liabilities		125,173								40,603
Total liabilities		6,705,175								6,279,235
Shareholders’ equity		712,687								635,613
Total liabilities and shareholders’ equity	$	7,417,862							$	6,914,848
Net interest revenue				$	54,950							$	54,931
Net interest-rate spread							3.07	%							3.19	%
Net interest margin (4)							3.21	%							3.33	%

(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 $1.86 million in 2014 and pretax unrealized gains of $17.7 million in 2013 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,
	2014								2013
	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)	$	4,365,930		$	96,303		4.45	%	$	4,225,215		$	101,808		4.86	%
Taxable securities (3)		2,303,404			23,391		2.03			2,129,208			19,596		1.84
Tax-exempt securities (1)(3)		19,881			624		6.28			21,665			691		6.38
Federal funds sold and other interest-earning assets		154,651			1,960		2.53			201,478			2,107		2.09
Total interest-earning assets		6,843,866			122,278		3.60			6,577,566			124,202		3.80
Non-interest-earning assets:
Allowance for loan losses		(77,165	)							(108,667	)
Cash and due from banks		62,958								63,873
Premises and equipment		162,112								168,773
Other assets (3)		409,466								173,168
Total assets	$	7,401,237							$	6,874,713
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,385,964			851		.12		$	1,274,144			873		.14
Money market		1,368,975			1,320		.19			1,282,101			1,096		.17
Savings		267,588			41		.03			239,691			72		.06
Time less than $100,000		847,707			1,946		.46			1,020,000			3,317		.66
Time greater than $100,000		570,799			1,783		.63			684,320			2,857		.84
Brokered time deposits		311,579			60		.04			185,210			67		.07
Total interest-bearing deposits		4,752,612			6,001		.25			4,685,466			8,282		.36
Federal funds purchased and other borrowings		110,436			1,748		3.19			72,148			1,038		2.90
Federal Home Loan Bank advances		140,014			138		.20			46,064			49		.21
Long-term debt		129,865			5,272		8.19			124,827			5,328		8.61
Total borrowed funds		380,315			7,158		3.80			243,039			6,415		5.32
Total interest-bearing liabilities		5,132,927			13,159		.52			4,928,505			14,697		.60
Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,439,447								1,278,875
Other liabilities		120,943								55,639
Total liabilities		6,693,317								6,263,019
Shareholders’ equity		707,920								611,694
Total liabilities and shareholders’ equity	$	7,401,237							$	6,874,713
Net interest revenue				$	109,119							$	109,505
Net interest-rate spread							3.08	%							3.20	%
Net interest margin (4)							3.21	%							3.35	%

(1)	Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans.  The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2)	Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
(3)	Securities available for sale are shown at amortized cost.  Pretax unrealized losses of $1.37 million in 2014 and pretax unrealized gains of $17.4 million in 2013 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 2014 Investor Presentation

2 2 Cautionary Statement Cautionary Statement This investor presentation may contain forward -looking statements, as defined by federal securities laws, inclu ding statements about United ’s financial outlook and business environment. These statements a re 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 refe r to United Community Banks, Inc. ’s filings with the Securities and Exchange Commission, including its 2013 Annual Re port on Form 10-K and its most recent quarterly report on Form 10-Q 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. Non Non - - GAAP Measures 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 mea sures are: fee revenue, operating expense, net income (loss), and equity toassets. Management uses these non -GAAP financial measures because we believe they are useful for e valuating our operations and performance over periods of time, as well as in m anaging and evaluating our business and in discussions about our operations and performance. Management be lieves these non -GAAP financial measures provide users of our financial information with a meaningful mea sure 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, p lease refer to the ‘Non-GAAP Reconcilement Tables’at the end of the Appendix to this presentation.

3 3 United at a Glance United at a Glance Founded in 1950 Third-largest bank holding company headquartered in Georgia with 1,500 employees Key Statistics as of 6/30/14 Key Statistics as of 6/30/14 (in billions) Assets Assets Deposits Deposits Loans Loans $7.35 $6.16 $4.41 Deposit Market Share Deposit Market Share (1) (1) Market Market Offices Offices Deposit Deposit Market Market Share Share Rank Rank No. Georgia 22 34% 1 Atlanta MSA 36 4 6 Gainesville 5 12 4 Coastal Georgia 8 4 7 W. North Carolina 19 13 3 E. Tennessee 8 2 8 (1) FDIC deposit market share and rank as of June 30, 2013 for markets where United takes deposits. Source: SNL and FDIC. Excludes 4 Loan Production Offices in GA, TN and SC, and one newly formed bank in Greenville, SC.

4 4 Footprint Footprint Savannah Nashville Greenville Asheville Atlanta Chattanooga Raleigh Charlotte Charleston Myrtle Beach Knoxville Current Footprint Blairsville Headquartered in Blairsville, Georgia with 103 locations in: Georgia; North Carolina; South Carolina; and Tennessee

5 5 Business and Operating Model Business and Operating Model Service is Point of Differentiation #1 in Customer Satisfaction according to Customer Service Profiles #1 in Southeast and #2 in US in Customer Satisfaction by national research company Golden rule of banking –treating people the way we want to be treated “The Bank that SERVICE Built SM ” Customer surveys consistently reveal 95%+ satisfaction rate Local CEOs with deep roots in their communities Resources of a $7.35 billion bank Operates in a number of the more demographically attractive U.S. markets Organic growth supported by de novos and selective acquisitions Twenty-eight “community banks” Strategic footprint with substantial banking opportunities Disciplined growth strategy “Community bank service, large bank resources”

6 6 2013 2013 – – Transformative Year Transformative Year Strengthened structure, resources, and financial performance Several years of credit clean-up Final classified asset sales Diversified loan portfolio Recalibrated core expense base $31 million reduction past three years Efficiency ratio below 60% DTA Allowance recaptured Redemption of all preferred stock (TARP) Re-established dividends to Parent Company and Shareholders Capital ratios strong Executed Strategies SCALABLE FOR GROWTH BEYOND $10 BILLION Key leadership roles Consumer underwriting Loan operations Mortgage Treasury services Lending SBA Healthcare Corporate CRE Income Asset based Strengthened Risk Management Business Investments

7 7 2014 Goals 2014 Goals Community bank service with large bank resources Strong local leadership and senior management Funding advantage in legacy markets Consistent and attractive culture Class leading customer satisfaction HOW? LEVERAGE OUR STRENGTHS Continue to invest in and improve commercial and retail capabilities Diversify portfolio –focus on C&I; owner occupied; specialized lending for healthcare, corporate, asset based and SBA; and, consumer lending Momentum building across footprint Invest in people; strengthen commercial and specialized lending group and markets Grow loans in mid-single digits Improve retail and small business bank Grow sales –better / diversified product design, merchandising and campaignexecution Streamline deliver processes that focus on how we serve our customers Increase core transaction deposits in the mid-single digits Grow net interest revenue Credit trends and costs continue at or below current levels Grow fee revenue modestly Maintain operating efficiency below 60% while investing in revenue producers Focus on acquisition opportunities

8 8 Highlights Second Quarter 2014 Highlights Second Quarter 2014 IMPROVING QUARTERLY RESULTS 2Q14 2Q14 1Q14 1Q14 Net Income $16.4M $15.8M EPS $.27 $.25 ROA .88% .85% ROCE 8.99% 8.64% Solid Improvement in Credit Quality Provision of $2.2 million vs. $48.5 million 2Q13 (classified assets sales) Net charge-offs decline to .38% of total loans vs. 6.87% in 2Q13 NPAs declined to .32% of total assets vs. .42% in 1Q14 and 44% in 2Q13 Allowance 1.66% of total loans vs. 1.73% at 1Q14 and 1.95 at 2Q13 Classified ratio of 23%, down from 27% at 1Q14 Operating Efficiencies Strengthen Efficiency ratio of 58.7%; significantly down from 68.9% a year ago Continued focus on reducing costs and improving fee revenue

9 9 Highlights Second Quarter 2014 Highlights Second Quarter 2014 Solid Capital Ratios and Cash Dividend to Shareholders Initiated quarterly cash dividend to shareholders in second quarter Tier I Common to Risk Weighted Assets of 10.7%; Tangible Common to RWAs of 13.9% Tier 1 Risk Based Capital of 11.8% and Tier I Leverage of 8.3% Core Fee Revenue Up $2 million across all categories compared to 1Q14 Gain on sales of SBA loans of $.7 million (added SBA team) Down from 2Q13 –mortgage volume and BOLI gain (non-core) Balance Sheet Loan growth this quarter of $54.6 million, or 5% annualized Restructured/deleverage securities portfolio –increasing yield, with securities gains $4.4 million Offset gains by charge of $4.4 million to prepay $44 million costly borrowings Overall –improved interest revenue and stabilized margin of 3.21% Continued Strong Core Transaction Deposit Growth Up $52 million in the second quarter or 6% annualized Up $303 million (9%) from year ago Represents 63% of total customer deposits compared to 34% at 4Q08

10 10 Earnings Per Share Earnings Per Share GOAL OF 1% ROA (1) (1) Excludes loss on classified asset sales and DTA recapture.

FINANCIAL REVIEW

12 12 Core Earnings Trend and Core Fee Revenue Core Earnings Trend and Core Fee Revenue Core Earnings $28.8 Million Up $1.4 million from 1Q14 and up $1.8 from a year ago. $ in millions 2Q14 1Q14 2Q13 Net Interest Revenue 54,950$ 781$ 19$ Fee Revenue 13,938 2,008 (125) Gross Revenue 68,888 2,789 (106) Operating Expense (Excl OREO) 40,131 1,382 (1,936) Pre-Tax, Pre-Credit (Core) 28,757$ 1,407$ 1,830$ Net Interest Margin 3.21 % - % (.12)% Variance - Increase / (Decrease) 2Q14 1Q14 2Q13 Overdraft Fees 2,944$ 24$ (88)$ Interchange Fees 3,976 445 338 Other Service Charges 1,607 160 305 Total Service Charges and Fees 8,527 629 555 Mortgage Loan & Related Fees 1,877 523 (1,126) Brokerage Fees 1,245 68 182 Other 2,289 788 264 Total Fee Revenue - Core 13,938 2,008 (125) Non-Core (1) 205 (41) (1,675) Reported - GAAP 14,143$ 1,967$ (1,800)$ Variance - Increase / (Decrease) (1) Includes securities gains (losses) and losses on prepayment of borrowings, gains from sales of low income housing tax credits, gains on bank owned life insurance policies, and gains and losses on deferred compensation plan assets. CORE EARNINGS CORE FEE REVENUE $ in thousands

13 13 Core Operating Expenses Core Operating Expenses (1) Includes foreclosed property costs, severance, and gains and losses on deferred compensation plan liabilities. $ in thousands 2Q14 1Q14 2Q13 Salaries & Employee Benefits 23,988$ (223)$ 859$ Communications & Equipment 3,037 (202) (431) Occupancy 3,262 (116) (187) FDIC Assessment 1,425 72 (1,080) Advertising & Public Relations 1,139 513 102 Postage, Printing & Supplies 804 28 (90) Professional Fees 2,172 745 (327) Other Expense 4,304 565 (782) Core Operating Expenses 40,131 1,382 (1,936) Non-Core (1) 401 100 (6,355) Reported GAAP 40,532$ 1,482$ (8,291)$ 2Q14 1Q14 2Q13 Efficiency Ratio 58.7 % 59.1 % 68.9 % Variance - Increase / (Decrease)

14 14 Key Drivers of Net Interest Revenue / Margin Key Drivers of Net Interest Revenue / Margin Net Interest Revenue 2Q growth impacted by: Net loan growth Higher securities yield Offset partially by pricing competition $ in millions KEY DRIVERS OF NIR NET INTEREST REVENUE & MARGIN Loan / Securities Pricing Deposit Pricing (excl. brokered) Loan Yields Securities Yields Avg Rate on Int Bearing Dep’s • CD pricing reflects the quarter-average new and renewed yield • MMDA / NOW pricing reflects the deposit yield for each quarter • CD pricing reflects the quarter-average new and renewed yield • MMDA / NOW pricing reflects the deposit yield for each quarter CDs MMDA NOW

15 15 Net Income Net Income $ in thousands NET OPERATING INCOME 2Q14 1Q14 2Q13 Core Earnings (Pre-Tax, Pre-Credit) 28,757$ 1,407$ 1,830$ Provision for Loan Loss 2,200 (300) (46,300) NON-CORE FEE REVENUE: Securities Gains 4,435 4,218 4,435 Loss on Prepayment of Borrowings (4,446) (4,446) (4,446) Sale of Low Income Housing Tax Credits Gain - - (468) Bank Owned Life Insurance Policy Gain - - (1,366) Deferred Compensation Plan Assets Gain 216 187 170 Total Non-Core Fee Revenue 205 (41) (1,675) NON-CORE OPERATING EXPENSES: Foreclosed Property Write Downs 305 28 (1,064) Foreclosed Property (Gains) Losses on Sales (423) 98 (3,368) Forclosed Property Maintenance Expenses 220 (140) (617) Severance Costs 83 (73) (1,476) Gains (Losses) on Deferred Comp Plan Liability 216 187 170 Total Non-Core Operating Expenses 401 100 (6,355) Income Tax Expense 10,004 609 266,417 Net Income 16,357$ 957$ (213,607)$ Preferred Stock Dividends - (439) (3,054) Net Income Avail to Common Shareholders 16,357$ 1,396$ (210,553)$ Net Income Per Share .27$ .02$ (3.63)$ Tangible Book Value 11.91$ .28$ 1.09$ Return on Assets .88 % .03 % (12.46) % Return on Common Equity 8.99 .35 (188.23) Variance - Increase / (Decrease) 60.1M Shares Outstanding Quarterly Net Income $ in millions 2Q14 $16.4 1Q14 $15.4 4Q13 15.9 3Q13 15.5 2Q13 230.0

16 16 Customer Deposit Mix & Core Growth Customer Deposit Mix & Core Growth $ in thousands Time >$100M 9% Demand & NOW 37% Deposits by % / Customer Mix Public Funds 14% Time <$100M 14% MMDA & Sav 26% Time >$100M 22% Demand & NOW 23% Public Funds 14% Time <$100M 31% MMDA & Sav 10% 2Q14 $5.7B 63%* 2Q08 $6.2B 34%* 2Q14 1Q14 2Q13 4Q08 Demand / NOW 2,106$ 2,073$ 1,916$ 1,457$ MMDA / Savings 1,518 1,499 1,406 630 Core Transaction 3,624 3,572 3,322 2,087 Time < $100,000 801 828 977 1,945 Public Deposits 760 804 674 755 Total Core 5,185 5,204 4,973 4,787 Time >$100,000 521 539 632 1,336 Public Deposits 33 34 32 87 Total Customer 5,739 5,777 5,637 6,210 Brokered Deposits 425 471 375 793 Total Deposits 6,164$ 6,248$ 6,012$ 7,003$ Total Deposit Mix Core Deposit Growth –Category & Market CATEGORY 2Q14 YTD MARKET 2Q14 YTD Demand 40.2$ 135.9$ Atlanta 21.1$ 80.7$ MM Accounts 9.9 21.1 N. Georgia 4.8 50.6 Savings 8.4 28.2 North Carolina 20.8 19.9 NOW (6.5) 1.6 Coastal Georgia 1.4 15.9 Total Categories 52.0$ 186.8$ Tennessee 2.0 4.10 Gainesville 0.9 12.4 Growth (Annualized) 6 % South Carolina 1.0 3.2 52.0$ 186.8$ Growth Growth *% of core transaction customer deposits Significant growth in core transaction deposits since 4Q08

17 17 Capital Ratios Capital Ratios Holding Company Well- Cap 2Q14 1Q14 4Q13 3Q13 2Q13 Tier I RBC 6 % 11.8 % 11.1 % 12.7 % 14.2 % 13.7 % Total RBC 10 13.0 12.4 14.0 15.5 15.2 Leverage 5 8.3 8.0 9.1 10.0 9.8 Tier 1 Common RBC 10.7 10.1 9.3 9.0 8.5 Tangible Common to Assets 9.6 9.2 9.0 9.0 6.3 Tangible Equity to Assets 9.6 9.5 11.6 11.8 9.1 Bank Well- Cap 2Q14 1Q14 4Q13 3Q13 2Q13 Tier 1 RBC 6 % 13.4 % 12.6 % 13.5 % 14.5 % 14.2 % Total RBC 10 14.6 13.9 14.8 15.7 15.5 Leverage 5 9.4 9.1 9.6 10.2 10.1

LOAN PORTFOLIO & CREDIT QUALITY

19 19 Loan Portfolio Loan Portfolio (total $4.41 billion) (total $4.41 billion) Diversifying Portfolio Geographic Diversity Residential Mortgage 30% $1.31 Resi Constr 7% $.30 Consumer 7% $.32 By Loan Type 1Q11 $4.194 2Q14 $4.410 Constr 8% $.350 A&D 10% $.413 Constr 5% $.241 A&D 5% $.221 Reduced concentrations of A&D and Investor RE loans Total Loans Loan Diversification & Type • Reducing land exposure • Focus on small business, C&I, and specialized lending • Enhanced retail products $ in billions

20 20 New Loans Funded and Advances New Loans Funded and Advances (1) (1) $ in millions CATEGORY 2Q14 1Q14 2Q13 2Q14 1Q14 2Q13 Commercial C & I 115.4$ 74.7$ 58.3$ Atlanta 91.0$ 86.1$ 94.2$ Owner Occupied CRE 65.6 48.9 50.7 Coastal Georgia 28.5 31.1 26.7 Income Producing CRE 40.8 41.1 30.4 N. Georgia 69.0 41.3 64.5 Commercial Constr. 2.7 1.9 3.6 North Carolina 21.0 16.9 39.7 Total Commercial 224.5 166.6 143.0 Tennessee 16.7 9.6 25.7 Residential Mortgage 19.2 15.2 70.6 Gainesville 10.1 8.9 14.8 Residential HELOC 32.9 30.1 38.4 South Carolina 88.3 60.3 33.7 Residential Construction 34.0 29.6 31.6 Other (Indirect Auto) 32.2 33.3 104.5 Consumer 46.2 46.0 120.2 Total Markets 356.8$ 287.5$ 403.8$ Total Categories 356.8$ 287.5$ 403.8$ New Loans Funded and Advances MARKET (1) Represents new loans funded and net loan advances (net of payments on lines of credit)

21 21 Commercial Loans Commercial Loans (total $2.47 billion) (total $2.47 billion) $ in billions Geographic Diversity Income Producing 24% $.60B C & I 22% $.55B Comm Constr 7% $.16B Average Loan Size By Loan Type

22 22 Retail Retail (total $1.63 billion) (total $1.63 billion) Geographic Diversity Home Equity LOC 28% $.451B Avg loan size $48 thousand By Loan Type Mortgage 53% $.861B Avg loan size $101 thousand $ in billions Consumer 6% $.105B Indirect Auto 13% $.216B Success with new portfolio products and HELOCs Conservative underwriting 62.8% of HE Primary Lien

23 23 Residential Construction Residential Construction (total $302 million) (total $302 million) $ in millions Geographic Diversity Raw 12% $36 Lot 50% $151 By Loan Type Developing 11% $34 Sold 21% $62 Spec 6% $19 2Q14 1Q14 4Q13 3Q13 2Q13 2Q14 vs. 2Q13 TOTAL COMPANY Land Loans Developing 34$ 37$ 39$ 40$ 42$ (8)$ Raw 36 37 38 35 36 - Lot 151 159 166 167 173 (22) Total 221 233 243 242 251 (30) Construction Loans Spec 19 19 23 30 34 (15) Sold 62 66 62 46 47 15 Total 81 85 85 76 81 - Total 302$ 318$ 328$ 318$ 332$ (30)$ CONSTRUCTION

24 24 Credit Quality Credit Quality $ in millions 2Q14 1Q14 4Q13 3Q13 2Q13 Net Charge-offs 4.2$ 4.0$ 4.4$ 4.5$ 72.4$ as % of Average Loans .38 % .38 % .41 % .42 % 6.87 % Allowance for Loan Losses 73.2$ 75.2$ 76.8$ 80.4$ 81.8$ as % of Total Loans 1.66 % 1.73 % 1.77 % 1.88 % 1.95 % as % of NPLs 353 299 286 308 294 Past Due Loans (30 - 89 Days) .32% .40% .58% .45% .49% Non-Performing Loans 20.7$ 25.2$ 26.8$ 26.1$ 27.9$ OREO 3.0 5.6 4.2 4.5 3.9 Total NPAs 23.7 30.8 31.0 30.6 31.8 Performing Classified Loans 147.5 164.9 172.7 173.6 176.3 Total Classified Assets 171.2$ 195.7$ 203.7$ 204.2$ 208.1$ as % of Tier 1 / Allowance 23 % 27 % 27 % 26 % 27 % Accruing TDRs (see page 27) 84.5$ 77.9$ 78.7$ 79.8$ 77.8$ As % of Original Principal Balance Non-Performing Loans 66.5 % 65.8 % 65.3 % 61.6 % 62.6 % OREO 50.4 53.9 44.5 41.5 31.6 Total NPAs as % of Total Assets .32 .42 .42 .42 .44 as % of Loans & OREO .54 .71 .72 .72 .76

25 25 Non Non - - Performing Loans (NPLs) Inflow Trends Performing Loans (NPLs) Inflow Trends $ in millions Quarterly NPL Inflows Total NPLs

26 26 Performing Classified Loans Performing Classified Loans $ in millions 2Q13 3Q13 4Q13 1Q14 2Q14 Commercial: Commercial & Industrial 11$ 10$ 9$ 8$ 6$ Owner Occupied 43 40 43 48 48 Total C & I 54 50 52 56 54 Income Producing CRE 36 36 34 37 25 Commercial Construction 16 17 17 5 4 Total Commercial 106 103 104 98 83 Residential Mortgage 51 53 52 51 49 Residential Construction 17 16 14 13 13 Consumer / Installment 2 2 3 2 2 Total Performing Classified 176$ 174$ 173$ 164$ 147$ Classified to Tier 1 + ALL 27% 26% 27% 27% 23% By Category

27 27 TDRs TDRs $ in millions LOAN TYPE 2Q14 vs. 2Q13 2Q14 vs. 2Q13 2Q14 vs. 2Q13 Commercial (Sec by RE) 43.8$ 40.4$ 1.9$ 2.0$ 45.7$ 42.4$ Commercial & Industrial 2.9 2.9 - .1 2.9 3.0 Commercial Construction 11.1 12.9 .1 .1 11.2 13.0 Total Commercial 57.8 56.2 2.0 2.2 59.8 58.4 Residential Mortgage 17.9 14.3 2.2 2.1 20.1 16.4 Residential Construction 8.4 7.2 2.0 2.7 10.4 9.9 Consumer Installment .3 .1 - .1 .3 .2 Total 84.5$ 77.8$ 6.2$ 7.1$ 90.7$ 84.9$ Accruing (1) Non-Accruing Total TDRs Accruing TDRs TDR credit quality improving Accruing TDR past due 30 –89 days = 2.83% 42% of accruing TDRs are pass credits (1) 63.8 percent of accruing TDR loans have an interest rate of 4 percent or greater

28 28 Net Charge Net Charge - - offs by Category & Market offs by Category & Market $ in thousands NET CHARGE-OFFS BY CATEGORY Total % of Avg Loans 1Q14 4Q13 3Q13 2Q13 Commercial (Sec. by RE): Owner Occupied (1,836)$ (.64) % .10 % .57 % .58 % 5.85 % Income Producing 435 .29 .13 .21 .14 5.45 Total Comm (Sec. by RE) (1,401) (.32) .11 .44 .49 5.70 Commercial & Industrial 662 .52 .35 (.13) .12 13.91 Commercial Construction 131 .34 - (.02) .39 17.53 Total Commercial (608) (.10) .15 .30 .36 7.96 - - - 2.52 Residential Mortgage 2,509 1.17 .70 .64 .31 2.52 Home Equity LOC 466 .42 .93 .38 .37 1.04 Residential Construction 1,671 2.13 .27 .40 1.31 20.91 Consumer/ Installment 137 .18 .54 .62 .28 .10 Total Net Charge-offs 4,175$ .38 .38 .41 .42 6.87 NET CHARGE-OFFS BY MARKET North Georgia (741)$ (.25) % .42 % .51 % .66 % 17.20 % Atlanta MSA 1,481 .46 .39 .20 .33 3.21 North Carolina 2,161 1.55 .41 .76 .49 1.36 Coastal Georgia 116 .11 .49 .33 .14 .49 Gainesville MSA 797 1.23 .22 .54 .15 .19 East Tennessee 288 .42 .35 .46 .51 1.01 South Carolina / Corporate - - - - - - Other (Indirect Auto) 73 .14 .14 .20 .17 .24 2Q14 % of Average Loans (Annualized)

29 29 NPAs by Loan Category & Market NPAs by Loan Category & Market $ in thousands NPLs OREO Total NPAs NPLs OREO Total NPAs LOAN CATEGORY LOAN CATEGORY Commercial (sec. by RE): Commercial (sec. by RE): Owner Occupied 2,975$ 653$ 3,628$ Owner Occupied 5,283$ 547$ 5,830$ Income Producing 1,032 242 1,274 Income Producing 1,954 - 1,954 Commercial & Industrial 1,102 - 1,102 Commercial & Industrial 548 - 548 Commercial Construction 95 - 95 Commercial Construction 504 376 880 Total Commercial 5,204 895 6,099 Total Commercial 8,289 923 9,212 Residential Mortgage 10,201 1,426 11,627 Residential Mortgage 12,847 1,303 14,150 HELOC 510 128 638 HELOC 1,491 140 1,631 Residential Construction 4,248 520 4,768 Residential Construction 4,838 1,570 6,408 Consumer/ Installment 561 - 561 Consumer/ Installment 399 - 399 Total 20,724$ 2,969$ 23,693$ Total 27,864$ 3,936$ 31,800$ MARKET MARKET Gainesville 921$ 49$ 970$ Gainesville 1,008$ -$ 1,008$ Coastal Georgia 782 80 862 Coastal Georgia 2,588 627 3,215 East Tennessee 1,218 323 1,541 East Tennessee 1,123 200 1,323 North Carolina 5,314 615 5,929 North Carolina 6,512 295 6,807 Atlanta MSA 3,883 510 4,393 Atlanta MSA 3,803 1,197 5,000 North Georgia 8,216 1,392 9,608 North Georgia 12,830 1,617 14,447 Indirect Auto 390 - 390 2Q14 2Q13 *NPAs to total assets –.32% / Allowance to loans at 1.66% Non Performing Assets

APPENDIX

31 31 Experienced Proven Leadership Experienced Proven Leadership • Over 40 years in banking • Led company from $42 million in assets in 1989 to $7.3 billion today • Trustee of Young Harris College • Georgia Power Company Board Member • GA Economic Developers Association Spirit of Georgia Award recipient • Over 31 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 36 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 31 years in banking • Responsible for Risk Management and Credit Risk Administration; Chairman of Risk Management Committee; also responsible for credit underwriting, review, policy and special assets • Former EVP & SCO for SunTrust Banks • Over 36 years in banking • Responsible for 28 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 24 years in lending • Responsible for specialized lending • Former SBA head: TD Bank and Carolina First’s SBA programs • Former President of UPS Capital Business Credit • Highly decorated Commander in the U.S. Naval Reserve Intelligence Program (retired)

32 32 Market Share Opportunities & Demographics Market Share Opportunities & Demographics North Georgia $ 6.4 $ 2.2 11 22 34% 1 Western North Carolina 10.9 .9 1 19 8 3 Gainesville MSA 2.7 .3 1 5 12 4 Atlanta MSA 54.4 2.2 10 36 4 7 Coastal Georgia 7.0 .3 2 8 4 7 East Tennessee 15.6 .3 2 8 2 8 Total Markets $ 97.0 $ 6.2 27 98 ¹ FDIC deposit market share and rank as of 6/13 for markets where United takes deposits. Data Source: SNL and FDIC. 2 Based on current quarter. 3 Excludes four loan production offices and one full service banking office in Greenville, SC. Population Actual Projected Markets 1 (in thousands) 2010 - 2014 2014 - 2019 Atlanta, GA MSA 5,574 5% 3% East Tennessee 877 3 3 Greenville-Mauldin-Easley, SC MSA 856 4 4 Western North Carolina 443 2 5 Coastal Georgia 401 5 4 North Georgia 385 - 3 Gainesville, GA MSA 189 5 2 Total Markets Georgia 10,072 4 3 North Carolina 10,358 4 5 Tennessee 6,532 3 4 South Carolina 4,792 4 5 United States 317,199 3 3 ¹ Population data is for 2014 and includes those markets where United takes deposits. Data Source: SNL Population Growth (%) FAST GROWING MARKETS EXCELLENT GROWTH OPPORTUNITIES Markets Banks Offices (3) Rank (1) Market Deposits (in billions) (1) United Deposits (in billions) (2,3) Deposit Share (1)

33 33 Liquidity Liquidity 2Q14 1Q14 2Q13 vs 2Q13 Loans 4,410$ 4,356$ 4,189$ 54$ 221$ Core (DDA, MMDA, Savings) 3,624$ 3,572$ 3,322$ 52$ 302$ Public Funds 793 838 707 (45) 86 CD's 1,322 1,367 1,608 (45) (286) Total Deposits (excl Brokered) 5,739$ 5,777$ 5,637$ (38)$ 102$ Loan to Deposit Ratio 77% 75% 74% Investment Securities: Available for Sale -Fixed 1,076$ 948$ 1,120$ 128$ (44)$ -Floating 665 890 817 (225) (152) Held to Maturity -Fixed 443 459 197 (16) 246 -Floating 6 6 18 - (12) Total Investment Securities 2,190 2,303 2,152 (113) 38 Floating as % of Total Securities 31% 39% 39% vs 1Q14 Variance Unused Capacity 2Q14 1Q14 2Q13 vs1Q14 vs 2Q13 Wholesale Borrowings Brokered Deposits 1,403$ (1) 424$ 470$ 375$ (46)$ 49$ FHLB 921 175 50 70 125 105 Holding Company LOC 10 40 40 - - 40 Fed Funds 882 25 30 - (5) 25 Other Wholesale - 11 53 54 (42) (43) Total 3,216$ 675$ 643$ 499$ 32$ 176$ Long-Term Debt Senior Debt 75$ 75$ 35$ -$ 40$ Sub-Debt - - 35 - (35) Trust Preferred Securities 55 55 55 - - Total Long-Term Debt 130$ 130$ 125$ -$ 5$ Variance $ in millions (1) Estimated brokered deposit total capacity at 25% of assets

34 34 Business Mix Business Mix – – Deposits Deposits (at quarter (at quarter - - end) end) 2Q14 vs. DEPOSITS BY CATEGORY 2Q14 1Q14 4Q13 3Q13 2Q13 2Q13 Demand & Now 2,106$ 2,073$ 1,969$ 1,979$ 1,916$ 190$ MMDA & Savings 1,518 1,499 1,468 1,437 1,406 112 Core Transaction Deposits 3,624 3,572 3,437 3,416 3,322 302 Time < $100,000 801 828 888 920 977 (176) Time ≥ $100,000 < $250,000 441 427 443 473 512 (71) Public Deposits 760 804 863 734 674 86 Total Core Deposits 5,626 5,631 5,631 5,543 5,485 141 Time ≥ $250,000 110 112 114 120 120 (10) Public Deposits 33 34 32 31 32 1 Total Customer Deposits 5,769 5,777 5,777 5,694 5,637 132 Brokered Deposits 425 471 425 419 375 50 Total Deposits 6,194$ 6,248$ 6,202$ 6,113$ 6,012$ 182$ $ in millions

35 35 Core Transaction Deposits Core Transaction Deposits 1Q14 South Carolina 99.0 % 99.0 % Gainesville MSA 72.4 71.0 Coastal GA 70.6 69.6 East TN 66.2 65.9 North Carolina 66.0 64.2 Atlanta MSA 65.9 65.0 North Georgia 54.2 52.7 Total 63.1 % 61.8 % 2Q14 Core Transactions / Total Deposits $ in millions

36 36 Lending & Credit Environment Lending & Credit Environment PROACTIVELY ADDRESSING CREDIT ENVIRONMENT • Centralized underwriting and approval process • Segregated work-out teams • Highly skilled ORE disposition group • Seasoned regional credit professionals 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 $ in millions

37 37 Commercial Construction & Real Estate Commercial Construction & Real Estate Amount Percent Land Develop - Vacant (Improved) 53$ 34 % Raw Land - Vacant (Unimproved) 26 16 Multi-Residential 25 16 Commercial Land Development 16 10 Office Buildings 11 7 Other Properties 10 6 Churches 7 4 Hotels / Motels 5 3 Mfg Facility 3 2 Retail Building 2 1 Warehouse 2 1 Total Commercial Construction 160$ 30-Jun-14 COMMERCIAL CONSTRUCTION Owner Occupied Income Producing Total Percent Office Buildings 313.9$ 152.1$ 466.0$ 26.4 % Retail Building 100.1 149.9 250.0 14.2 Warehouse 120.2 57.9 178.1 10.1 Churches 139.0 - 139.0 7.9 Other Properties 108.1 38.6 146.7 8.3 Convenience Stores 87.4 17.7 105.1 6.0 Hotels / Motels - 63.5 63.5 3.6 Restaurants/Franchise Fast Food 35.1 26.9 62.0 3.5 Mfg Facility 49.1 5.3 54.4 3.1 Farmland 50.4 - 50.4 2.9 Multi-Resi Properties - 50.3 50.3 2.9 Leasehold Property 16.6 15.1 31.7 1.8 Golf Course/Country Club 25.7 - 25.7 1.5 Automotive Dealership 17.2 8.0 25.2 1.4 Automotive Service 17.9 .1 18.0 1.0 Daycare Facility 9.3 8.1 17.4 1.0 Funeral Home 14.3 .6 14.9 .8 Carwash 16.5 - 16.5 .9 Assisted Living / Nursing Home 9.6 - 9.6 .5 Marina 7.2 - 7.2 .4 Mobile Home Parks - 4.9 4.9 .3 Movie Theaters/Bowling/Rec 4.7 - 4.7 .3 Other Small Business 20.7 - 20.7 1.2 Total Commercial Real Estate 1,163.0$ 599.0$ 1,762.0$ 30-Jun-14 COMMERCIAL REAL ESTATE $ in millions

38 38 Loans by Business Mix and Region Loans by Business Mix and Region 2Q14 1Q14 4Q13 3Q13 2Q13 2Q14 vs. 2Q13 QUARTERLY LOANS - BUSINESS MIX BY CATEGORY Commercial: Comm & Indus 554$ 495$ 472$ 457$ 437$ 117$ Owner Occ'd 1,163 1,142 1,134 1,129 1,119 44 Total C & I 1,717 1,637 1,606 1,586 1,556 161 Income Prod CRE 598 624 623 614 629 (31) Comm Constr 160 148 149 137 133 27 Total Comm 2,475 2,409 2,378 2,337 2,318 157 Resi Mortgage 1,312 1,313 1,316 1,309 1,278 34 Resi Constr 302 318 328 318 332 (30) Consum / Install 321 316 307 303 261 60 Total Loans 4,410$ 4,356$ 4,329$ 4,267$ 4,189$ 221$ 2Q14 1Q14 4Q13 3Q13 2Q13 2Q14 vs. 2Q13 QUARTERLY LOANS - BY REGION North Georgia 1,175$ 1,205$ 1,240$ 1,262$ 1,265$ (90)$ Atlanta MSA 1,305 1,290 1,275 1,246 1,227 78 North Carolina 555 563 572 575 576 (21) Coastal Georgia 426 425 423 421 397 29 Gainesville MSA 257 262 255 253 256 1 East Tennessee 270 272 280 277 282 (12) South Carolina 206 131 88 47 34 172 Other (Ind. Auto) 216 208 196 186 152 64 Total Loans 4,410$ 4,356$ 4,329$ 4,267$ 4,189$ 221$ 2013 2012 2011 2010 2009 ANNUAL LOANS - BUSINESS MIX BY CATEGORY Commercial: Comm & Indus 472$ 458$ 428$ 441$ 390$ Owner Occ'd 1,134 1,131 1,112 980 963 Total C & I 1,606 1,589 1,540 1,421 1,353 Income Prod CRE 623 682 710 781 816 Comm Constr 149 155 164 297 363 Total Comm 2,378 2,426 2,414 2,499 2,532 Resi Mortgage 1,316 1,214 1,135 1,279 1,427 Resi Constr 328 382 448 695 1,050 Consum / Install 307 153 113 131 142 Total Loans 4,329$ 4,175$ 4,110$ 4,604$ 5,151$ 2013 2012 2011 2010 2009 ANNUAL LOANS - BY REGION North Georgia 1,240$ 1,364$ 1,426$ 1,689$ 1,884$ Atlanta MSA 1,275 1,250 1,220 1,310 1,435 North Carolina 572 579 597 702 772 Coastal Georgia 423 400 346 335 405 Gainesville MSA 255 261 265 312 390 East Tennessee 280 283 256 256 265 South Carolina 88 - - - - Other (Ind. Auto) 196 38 - - - Total Loans 4,329$ 4,175$ 4,110$ 4,604$ 5,151$ $ in millions

39 39 Non Non - - GAAP Reconciliation Tables GAAP Reconciliation Tables 2Q14 1Q14 4Q13 3Q13 2Q13 CORE FEE REVENUE Core fee revenue 13,938$ 11,930$ 13,219$ 13,966$ 14,063$ Securities gains, net 4,435 217 70 - - Losses on prepayment of borrowings (4,446) Gains from sales of low income housing tax credits - - - - 468 BOLI death benefit gain - - - 86 1,366 Mark to market on deferred compensation plan assets 216 29 230 173 46 Fee revenue (GAAP) 14,143$ 12,176$ 13,519$ 14,225$ 15,943$ CORE OPERATING EXPENSE Core operating expense 40,131$ 38,749$ 41,193$ 39,325$ 42,067$ Foreclosed property expense 102 116 191 194 5,151 Severance 83 156 - 405 1,559 Mark to market on deferred compensation plan liability 216 29 230 173 46 Operating expense (GAAP) 40,532$ 39,050$ 41,614$ 40,097$ 48,823$ TANGIBLE COMMON EQUITY AND TANGIBLE EQUITY TO TANGIBLE ASSETS Tangible common equity to tangible assets 9.58 % 9.22 % 8.99 % 9.02 % 6.30 % Effect of preferred equity - .28 2.60 2.74 2.83 Tangible equity to tangible assets 9.58 9.50 11.59 11.76 9.13 Effect of goodwill and other intangibles .03 .02 .03 .04 .06 Equity to assets (GAAP) 9.61 % 9.52 % 11.62 % 11.80 % 9.19 % TANGIBLE COMMON EQUITY TO RISK-WEIGHTED ASSETS Tangible common equity to risk-weighted assets 13.78 % 13.63 % 13.18 % 13.34 % 13.16 % Effect of preferred equity - - 2.39 4.01 4.11 Tangible equity to risk weighted assets 13.78 13.63 15.57 17.35 17.27 Effect of deferred tax limitation (3.71) (3.92) (4.26) (4.72) (4.99) Effect of other comprehensive income .53 .36 .39 .49 .29 Effect of trust preferred 1.03 1.03 1.04 1.09 1.11 Tier I capital ratio (Regulatory) 11.63 % 11.10 % 12.74 % 14.21 % 13.68 % Operating Earnings to GAAP Earnings Reconciliation $ in millions