2012 Annual Report
United Community Banks, Inc.
United Community Banks, Inc.
Financial Highlights
(in millions, except per share data)
Core Earnings Summary
Net interest revenue
Core fee revenue
Core operating expenses
Core earnings (pre-tax, pre-credit)
Provision for loan losses
Foreclosed property costs
Bulk Loan Sale costs
Reclassification of pension costs
Severance costs
Hedge ineffectiveness gains, net
Securities gains, net
Loss on prepayment of borrowings
Provision for litigation settlement
Gain on sale of low income housing tax credits
Interest on federal tax refund
Income tax (expense) benefit
Net income (loss)
Preferred dividends and discount accretion
Net income (loss) available to common shareholders
Per Common Share
Diluted income (loss)
Book value
Tangible book value
Performance Measures
Net interest margin
Allowance for loan losses to loans
Tangible common equity to assets (year-end)
Tier I risk-based capital ratio (year-end)
As of Year-End
Loans
Investment securities
Total assets
Deposits
Shareholders’ equity
Common shares outstanding (thousands)
Shareholders
Employees
Banking offices
2012
2011
$
$
$
$
229.1
53.5
166.1
116.5
(62.5)
(14.0)
-
-
(2.3)
.7
7.1
(6.7)
(4.0)
.7
1.1
(2.7)
33.9
(12.2)
21.7
0.38
6.67
6.57
3.50 %
2.57
5.60
14.16
4,175
2,079
6,802
5,952
581
57,741
15,000
1,590
105
$
$
$
$
235.7
44.2
180.3
99.6
(251.0)
(78.9)
(5.6)
2.3
(1.1)
5.0
.8
(.8)
-
.7
-
2.3
(226.7)
(11.9)
(238.6)
(5.97)
6.62
6.47
3.44 %
2.79
5.35
13.69
4,110
2,120
6,983
6,098
575
57,561
16,900
1,754
106
LETTER TO SHAREHOLDERS
Dear Fellow Shareholders,
Before reviewing 2012 and a promising outlook for 2013, I want to begin with
this: The past 12 months have been among the most positive United Community
Banks has experienced in years. We closed the year with our fifth consecutive
profitable quarter, and our sixth out of the past seven, solidly on the path to our
goal of sustained profitability.
You well know that the past five years have been uncharted territory for all banks,
with no map or rulebook through the economic environment. However, United
has a skilled, experienced and dedicated management team and board to lead
the way. These men and women have been, and continue to be, our compass
and true north.
In last year’s annual report I described our objectives in 2012. In this letter I will
review our record toward accomplishing those objectives.
2011 ended on a good note with a profitable quarter, our second of the year after
13 consecutive quarterly losses. The first quarter of 2012 followed suit with what
would be the first of four profitable quarters, and the highest pre-tax, pre-credit
earnings since the fourth quarter of 2009. Setting the stage for these results, and
pivotal for this company, was the March 2011 execution of our capital transaction
and problem asset disposition plan.
Our 2011 annual report outlined key areas of concentration for 2012: core deposit
growth, loan growth, credit quality, margin, fee revenue, expense reductions,
customer service and profitability. We have made significant progress.
CORE DEPOSIT GROWTH
After attracting an impressive $266 million in net new core transaction deposits
in 2011, we set an ambitious goal to grow these deposits again in 2012, this time
by 8 percent. As it turned out we exceeded this goal with growth of 11 percent,
or $311 million, most of it in noninterest-bearing demand deposits.
United employees opened a record 37,072 new core deposit accounts and sold
15,306 new services in 2012 as part of our highly successful United Express
campaign. Over the past four years, United Express has provided a financial
incentive to bring in new business, but we have found that the primary driving
force for our bankers is not extra money but a point of pride. They want to help this
company return to sustained success, in this case by providing a steady source
of new core deposits. To be perfectly clear, they have delivered with growth of
$1.1 billion over the past four years while adding thousands of new customers.
2
LOAN GROWTH
Despite a continued struggling economy in 2012,
business lending continued to produce favorable
results. We introduced a fixed-rate commercial
we had positive annual loan growth for the first
loan product that meets a customer need without
time since 2007. In the first quarter we recorded
exposing United to interest rate risk. Our back-
our first linked-quarter loan growth since 2008,
to-back interest rate swap program enables us
and in the third quarter we achieved our first
to compete effectively with product offerings of
12-month loan growth since the downward
much larger financial institutions. We gained good
economic cycle began in 2007.
traction with this product in 2012, adding to fee
revenue.
Driving the growth were new loan products that
further diversified the portfolio. These include
In total, during the year we funded $505 million
targeted new retail products that have enabled
in new loans compared to $392 million in 2011.
us to meet customer needs better and create
Our continuing focus is on growing commercial
a much more efficient delivery channel. Our
business that results in new full-service
service continues to be unmatched, and we have
relationships. To support this effort, over the
leveraged our high customer satisfaction scores
past 18 months we have added 15 experienced
to attract new customers to these products and
lenders who are established within our existing
services.
and expanded metro markets. Additionally in late
2012, we opened a commercial loan office in
One of our new retail products is a home equity
Greenville, South Carolina, expanding our reach
line of credit (HELOC) that is allowing us to
into this new and robust market.
achieve a more favorable balance in our overall
loan mix. From its introduction in the summer of
2012 through year-end, the product generated
CREDIT QUALITY
A staunch commitment throughout the economic
$100 million in new loan balances. It has brought
downturn has been aggressive management of
in new customers and deepened relationships
our credit challenges. I am pleased to report that
with existing customers who have strong credit
our credit quality measures have significantly
metrics. The success of these HELOC loans has
improved, especially in the latter half of the year.
had a slight negative impact on our margin in
the short term due to the introductory interest
By year-end many of these measures were
rate of 1 percent APR for the first year. The
product has a floating rate that will reset to prime
beginning to return to pre-downturn levels. Fourth
quarter net charge-offs of $14.5 million were
plus beginning in mid-2013 and help minimize
at the lowest level since the second quarter
exposure to rising rates in the future.
In January, 2013, we rolled out our
of 2008. The inflow of new non-performing
loans was $20.2 million, the lowest since this
economic cycle began. Our year-end balance of
‘SmarterMortgage’ product with competitive
foreclosed property was $18.3 million, the lowest
closing costs and low monthly payments. This is
since the end of 2007. Past due loans were .65
an attractive alternative for customers who want
percent of total loans, well below our pre-credit
their mortgage and servicing to remain with their
cycle target of 1 percent. Clearly we are making
local United bank.
important progress on the credit front.
On the commercial side, our focus on owner-
occupied commercial real estate and small
3
MARGIN
Our net interest margin for the full year of 2012
requiring that we be more efficient. Our steady
focus on efficiency and expense reductions
was 3.50 percent, slightly higher than 3.44
resulted in a $14 million decrease in core
percent in 2011. Growth in core transaction
operating expenses during 2012, including an $8
deposits has helped to lower funding costs, but
million decline in core personnel costs.
the unprecedented low interest rate environment
shows no sign of changing near term, and will
We also saw significant decreases in occupancy
continue to create pricing headwinds and natural
expenses and our FDIC insurance assessment.
margin compression throughout 2013. We
Occupancy expenses were down $1.34 million
continue to see competitive pressures on loan
reflecting our efforts to control our utilities
pricing, as well as low reinvestment rates for our
and insurance costs, lower property taxes as a
securities portfolio.
result of challenging our assessments and lower
depreciation charges. The lower FDIC insurance
I will add that this rate environment has produced
assessment reflects a lower assessment rate
some good news: Our mortgage business has
resulting from our improving credit and capital
thrived and produced fee revenue growth that
metrics as well as the FDIC’s change to an asset-
has offset most of the decrease in net interest
based assessment in early 2011 that was more
revenue.
favorable to United.
FEE REVENUE
We made great progress on the fee revenue side
Among ongoing efficiency and cost reduction
efforts, we closed two underperforming bank
early in 2012, partially due to new service charges
offices in the first quarter of 2013.
that allowed us to make low-balance deposit
relationships profitable. Very little attrition resulted
Lowering headcount is extremely painful. Such
as most customers were able to avoid the fees by
decisions are unquestionably the most difficult
maintaining higher balances. We also renegotiated
I have had to make in my career. While these
our debit card and ATM service provider
tough measures have been necessary, we have
contracts, resulting in increased fee revenue that
been very careful to conduct them in a caring and
more than offset lower fees brought about by
dignified way to soften the landing with fair and
regulatory changes. Overall, deposit service fee
appropriate severance packages. Bottom line,
revenue increased $2.6 million during the year.
we have reduced core operating expense by $14
million over the past year.
As mentioned above we saw solid growth in
mortgage fees as a result of the record low
interest rate environment and our bankers’
CUSTOMER SERVICE
In light of the challenges faced and changes
outstanding efforts to grow market share.
made, it is a testimony to our people that
Refinancing activities also helped boost this
customer satisfaction has not suffered one bit.
source of fee revenue.
EXPENSE REDUCTIONS
The rising cost of doing business and the
United Community Bank has been the bank of
choice in our communities for more than 60 years
and continues to be so today. We are blessed
with dedicated bankers who are completely
weak economy makes it a very challenging
focused on the number one task: creating the
environment for new growth opportunities,
finest banking experience anywhere.
4
Our bankers remain as successful as ever at
this task, earning customer satisfaction ratings
LOOKING FORWARD
While we see more consistently profitable
that consistently remain above 95 percent –
times ahead, some obstacles still remain. The
the highest in the industry. When asked to
sluggish economy and record low interest
support new promotions or incentives, there
rate environment are expected to continue,
they are again, stepping up to meet and exceed
presenting loan growth challenges and net
expectations. And I want to emphasize that I also
interest margin pressures. We see margin
am recognizing the many employees who do not
compression continuing throughout 2013.
directly serve external customers, but provide
critical support to internal customers – their fellow
On the positive side, we expect a continuing
employees – in ways that allow them to do their
trend of improving credit metrics that should
jobs so well. This is an incredible group of people.
translate into lower levels of charge-offs and
PROFITABILITY
All of our 2012 initiatives were aimed at one
overarching goal: improving profitability and the
related provision expense. We also see, and
are acting upon, opportunities to expand our
mortgage and advisory service businesses.
long-term value of your investment in United
We believe we can overcome the challenges of
Community Banks. This is an ongoing priority
a slow economy and grow our loan portfolio in
that drives everything we do. That is why a year
the mid-single digit range. We can do this, in part,
ago I made a pledge to you and to our Board of
by continuing to add commercial lenders in key
Directors to improve our quarterly core pre-tax,
markets while also growing retail loans through
pre-credit earnings on an annualized basis by $10
our new product offerings. We will continue to
million through fee revenue growth and expense
reduce costs and increase efficiency, while being
reductions. We set the fourth quarter of 2011 as
careful to do so in ways that preserve our unique
our base, and the fourth quarter of 2012 as our
culture of superior service.
target.
We have again set a goal for the coming year: to
I am extremely pleased to report that we
increase our annualized run rate of core pre-tax,
achieved this $10 million goal for the fourth
pre-credit earnings by $10 million, using the
quarter of 2012. Our annualized run rate in
fourth quarter of 2012 as our benchmark. We
core operating expenses declined by $9 million
compared to 2011, and our annualized core fee
will focus on fee revenue, loan and core deposit
growth and operating efficiency.
revenue run rate increased by over $12 million – a
core earnings improvement of $21 million.
A question for 2013 is United’s plans for the
$180 million in preferred stock issued to the
Even though net margin compression offset
U.S. Treasury in 2008. In March, 2013, the
more than half of these earnings improvements,
Treasury elected to remarket our stock to other
we were able to meet our goal. These results
investors as they have done in the past with
are impressive by any measure and represent a
many other banks. We believe this reflects our
significant achievement for this banking team.
positive progress through the credit cycle and our
I cannot imagine a team anywhere rising to the
sustained earnings over the past seven quarters.
challenge and working harder to achieve goals
The Treasury was able to remarket its investment
than this one did in 2012.
under very favorable terms, and the institutional
investors demonstrated their confidence by
acquiring our stock.
5
This transaction is a win-win for both United and
Over the past few years we have experienced a
the Treasury. The Treasury was paid back, in fact,
long and sometimes rocky ride with its share of
more than their original investment when including
detours. But in 2012 we made the critical turn
dividends over the past four years. United is now
that begins our ascent to sustained profitability
free from the restrictions of the Troubled Asset
and solid returns.
Relief Program (TARP), but retains the valuable
regulatory capital. In the future when prudent, we
Our employees have been inspiring along this
will consider alternative solutions to repurchase
journey. Your company could not and would
or refinance in a manner that best serves our
not have achieved the progress we have made
common shareholders.
without these dedicated and talented people.
Many others, maybe even understandably, would
Before closing I want to make you aware of recent
have thrown up their hands and surrendered to
changes in our leadership.
the challenges we’ve experienced. Many would
have quit or bided their time clinging to their
On our management team, I am very pleased to
jobs. Not the United family. Just when you think
announce that Lynn Harton has joined United as
they can’t give any more, they do. When you
Chief Operating Officer, succeeding Guy Freeman
think their spirit is surely going to break, it’s there
who retired at the beginning of 2012. Lynn, a native
stronger than ever, and they rally around United
of North Carolina, brings 29 years of executive
more vigorously than ever before.
banking experience. He already has made some very
valuable and exciting contributions.
I cannot thank these people enough. They are
the heart of United Community Banks. Each
On our holding company Board of Directors, I report
management team member, each director
with much regret the retirement of John D. Stephens,
and each shareholder owes them a debt of
who has been a valued member of the United
gratitude. I certainly do. And, this management
Community Banks Board since 2007. His 44 years of
team is laser focused on creating value for our
business and industrial experience have provided a
shareholders. Because of them, I look forward
most unique perspective and background that we will
with optimism.
greatly miss. I know I speak for the entire Board and
United family when I say, “Thank you so very much,
John, for your guidance, wisdom and friendship all
these many years.”
Sincerely,
Additionally, Bob Head has decided to retire from the
Board at the end of his current term. Bob was Chairman
of the holding company Board from 1988 (when our
Jimmy Tallent
holding company was formed) to 2012. He also has
served for 40 years on the Board of United Community
Bank. Bob was at the helm through a period of much
change, outstanding growth and great challenge, and
he led our Board with valuable discernment, a steady
hand and keen vision. There is no way I can adequately
express my appreciation to Bob for his years of
faithful service and outstanding leadership and we
will continue to seek his advice and counsel.
6
Consolidated Statement of Operations
(in thousands, except per share data)
2012
2011
2010
$
217,140
$ 239,056
$ 277,904
INTEREST REVENUE:
Loans, including fees
Investment securities:
Taxable
Tax exempt
Deposits in banks and short-term investments
Total interest revenue
INTEREST EXPENSE:
Deposits:
NOW
Money market
Savings
Time
Total deposit interest expense
Short-term borrowings
Federal Home Loan Bank advances
Long-term debt
Total interest expense
Net interest revenue
Provision for loan losses
Net interest revenue after provision for loan losses
FEE REVENUE:
Service charges and fees
Mortgage loan and other related fees
Brokerage fees
Securities gains, net
Losses on prepayment of borrowings
Other
Total fee revenue
Total revenue
OPERATING EXPENSES:
Salaries and employee benefits
Occupancy
Communications and equipment
FDIC assessments and other regulatory charges
Professional fees
Postage, printing and supplies
Advertising and public relations
Amortization of intangibles
Foreclosed property
Goodwill impairment
Loss on sale of nonperforming assets
Other
Total operating expenses
Income (loss) from continuing operations before income taxes
Income tax expense (benefit)
Net income (loss) from continuing operations
Loss from discontinued operations, net of income taxes
Gain from sale of subsidiary, net of income taxes and selling costs
Net income (loss)
Preferred stock dividends
Net income (loss) available to common shareholders
43,657
956
3,986
265,739
2,049
2,518
150
19,518
24,235
2,987
907
10,201
38,330
227,409
62,500
164,909
31,670
10,483
3,082
7,078
(6,681)
11,139
56,771
221,680
55,251
1,009
2,321
297,637
3,998
5,456
234
39,151
48,839
4,250
2,042
10,544
65,675
231,962
251,000
(19,038)
29,110
5,419
2,986
842
(791)
12,342
49,908
30,870
96,026
14,304
12,940
10,097
8,792
3,899
3,855
2,917
13,993
-
-
19,951
186,774
34,906
1,050
33,856
-
-
33,856
12,148
21,708
$
100,095
15,645
13,135
14,259
9,727
4,256
4,291
3,016
78,905
-
-
18,270
261,599
(230,729)
(3,983)
(226,746)
-
-
(226,746)
11,838
$ (238,584)
58,821
1,137
3,260
341,122
6,966
7,552
331
66,883
81,732
4,235
3,355
10,749
100,071
241,051
223,000
18,051
30,127
7,019
2,662
2,552
(2,233)
8,421
48,548
66,599
96,618
15,394
13,781
13,747
9,254
4,072
4,625
3,160
65,707
210,590
45,349
16,594
498,891
(432,292)
71,217
(503,509)
(101)
1,266
(502,344)
10,316
$ (512,660)
$
(27.15)
(27.09)
18,925
Income (loss) from continuing operations per common share - basic / diluted
Income (loss) per common share - basic / diluted
Weighted average common shares outstanding - basic / diluted
$
.38
.38
57,857
$
(5.97)
(5.97)
39,943
7
Consolidated Balance Sheet
(in thousands, except per share data)
ASSETS
Cash and due from banks
Interest-bearing deposits in banks
Short-term investments
Cash and cash equivalents
Securities available for sale
Securities held to maturity (fair value $261,131 and $343,531)
Mortgage loans held for sale
Loans, net of unearned income
Less allowance for loan losses
Loans, net
Assets covered by loss sharing agreements with the FDIC
Premises and equipment, net
Bank-owned life insurance
Accrued interest receivable
Goodwill and other intangible assets
Foreclosed property
Other assets
$
2012
66,536
124,613
60,000
251,149
1,834,593
244,184
28,821
4,175,008
(107,137)
4,067,871
47,467
168,920
81,867
18,659
5,510
18,264
34,954
$
2011
53,807
139,609
185,000
378,416
1,790,047
330,203
23,881
4,109,614
(114,468)
3,995,146
78,145
175,088
80,599
20,693
8,428
32,859
69,915
Total assets
$
6,802,259
$
6,983,420
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand
NOW
Money market
Savings
Time:
Less than $100,000
Greater than $100,000
Brokered
Total deposits
Short-term borrowings
Federal Home Loan Bank advances
Long-term debt
Unsettled securities purchases
Accrued expenses and other liabilities
Total liabilities
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $1 par value, 10,000,000 shares authorized:
Series A, $10 stated value, 21,700 shares issued and outstanding
Series B, $1,000 stated value, 180,000 shares issued and outstanding
Series D, $1,000 stated value, 16,613 shares issued and outstanding
Common stock, $1 par value, 100,000,000 shares authorized,
42,423,870 and 41,647,100 shares issued and outstanding
Common stock, non-voting $1 par value, 30,000,000 shares authorized,
15,316,794 and 15,914,209 shares issued and outstanding
Common stock issuable, 133,238 and 93,681 shares
Capital surplus
Accumulated deficit
Accumulated other comprehensive loss
Total shareholders’ equity
$
1,252,605
1,316,453
1,149,912
227,308
1,055,271
705,558
245,033
5,952,140
52,574
40,125
124,805
-
51,210
6,220,854
217
178,557
16,613
42,424
15,317
3,119
1,057,951
(709,153)
(23,640)
581,405
$
992,109
1,509,896
1,038,778
199,007
1,332,394
847,152
178,647
6,097,983
102,577
40,625
120,225
10,325
36,199
6,407,934
217
177,092
16,613
41,647
15,914
3,233
1,054,940
(730,861)
(3,309)
575,486
Total liabilities and shareholders’ equity
$ 6,802,259
$
6,983,420
8
Selected Financial Data - Quarterly Core Summary
(in millions, except per share data; taxable equivalent)
Q-4
Q-3
Q-2
Q-1
Q-4
2012
2011
CORE EARNINGS SUMMARY
Net interest revenue
Core fee revenue (1)
Core revenue (1)
Core operating expenses (2)
Core earnings (pre-tax, pre-credit) (1)(2)
Provision for loan losses
Foreclosed property costs:
Write downs and losses from sales
Other expenses
Reclassification of pension prior service cost and actuarial losses
Severance costs
Hedge ineffectiveness gains (losses), net
Securities gains, net
Loss on prepayment of borrowings
Provision for litigation settlement
Gain on sale of low income housing tax credits
Interest on federal tax refund
Income tax (expense) benefit
Net income
Preferred dividends and discount accretion
Net income available to common shareholders
PERFORMANCE MEASURES
Per common share:
Diluted earnings
Book value
Tangible book value (3)
Key performance ratios:
Net interest margin (4)
Return on assets (4)
Return on common equity (4)(5)
Tangible equity to assets (3)
Tangible common equity to assets (3)
ASSET QUALITY*
Non-performing loans
Foreclosed properties
Total non-performing assets (NPAs)
Allowance for loan losses
Net charge-offs
Allowance for loan losses to loans
Net charge-offs to average loans (4)
NPAs to loans and foreclosed properties
NPAs to total assets
AT PERIOD END
Loans*
Investment securities
Total assets
Deposits
Shareholders’ equity
Common shares outstanding
$
$
$
$
$
$
$
$
56.0
14.6
70.6
41.5
29.1
(14.0)
(3.2)
(1.4)
-
(.5)
.1
-
-
(4.0)
-
-
(.8)
5.3
3.1
2.2
.04
6.67
6.57
57.4 $
13.0
70.4
40.5
29.9
(15.5)
(2.7)
(1.0)
-
(.4)
.6
-
-
-
-
-
(.3)
10.6
3.1
7.5 $
56.8 $
12.8
69.6
41.3
28.3
(18.0)
(.7)
(1.1)
-
(1.2)
(.2)
6.5
(6.2)
-
-
-
(.9)
6.5
3.0
3.5 $
58.9 $
13.1
72.0
42.7
29.3
(15.0)
(2.2)
(1.6)
-
(.2)
.1
.6
(.5)
-
.7
1.1
(.8)
11.5
3.0
8.5 $
59.1
11.4
70.5
43.9
26.6
(14.0)
(6.9)
(2.4)
2.3
-
.3
-
-
-
.7
-
3.3
9.9
3.0
6.9
$
.13
6.75
6.64
$
.06
6.61
6.48
.15 $
6.68
6.54
.12
6.62
6.47
3.44 %
.31
2.15
8.55
5.67
3.60 %
.63
7.43
8.66
5.73
3.43 %
.37
3.51
8.24
5.45
$
109.9
18.3
128.2
107.1
14.5
2.57 %
1.39
3.06
1.88
$
4,175
2,079
6,802
5,952
581
57.7
$
115.0
27.0
142.0
107.6
20.6
2.60 %
1.99
3.41
2.12
$
4,138
2,025
6,699
5,823
585
57.7
$
115.4
30.4
145.8
112.7
18.9
2.74 %
1.85
3.51
2.16
$
4,119
1,984
6,737
5,822
576
57.6
3.53 %
.66
8.78
8.08
5.33
129.7 $
31.9
161.6
113.6
15.9
2.75 %
1.55
3.88
2.25
4,128 $
2,202
7,174
6,001
580
57.6
3.51 %
.56
7.40
8.16
5.38
127.5
32.8
160.3
114.5
45.6
2.79 %
4.39
3.87
2.30
4,110
2,120
6,983
6,098
575
57.6
(1) Excludes net securities gains and losses, losses from the prepayment of borrowings, gains from the sale of low income housing tax credits, hedge ineffectiveness gains and interest on a federal tax refund. (2) Excludes foreclosed
property costs, reclassification of prior service cost and actuarial losses on Modified Retirement Plan to other comprehensive income, severance costs and a provision for litigation settlement. (3) Excluded the effect of acquisition-related
intangible assets. (4) Annualized. (5) Net income available to common shareholders, which is net of preferred dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss).
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
9
Corporate Information
Financial Information
Analysts and investors seeking financial
information should contact:
Rex S. Schuette
Executive Vice President and
Chief Financial Officer
(706) 781-2265
rex_schuette@ucbi.com
This Annual Report contains forward-looking
statements that involve risk and uncertainty
and actual results could differ materially from
the anticipated results or other expectations
expressed in the forward-looking statements.
A discussion of factors that could cause
actual results to differ materially from those
expressed in the forward-looking statements
is included in the Annual Report on Form
10-K filed with the Securities and Exchange
Commission.
This Annual Report also contains financial
measures that were prepared on a basis
different from accounting principles
generally accepted in the United States
(“GAAP”). References to operating
earnings, pre-tax, pre-credit earnings and
core earnings are non-GAAP financial
measures. Management has included such
non-GAAP financial measures because
such non-GAAP measures exclude certain
non-recurring revenue and expense items
and therefore provide a meaningful basis for
analyzing financial trends. A reconciliation
of these measures to financial measures
determined using GAAP is included in the
Annual Report on Form 10-K filed with the
Securities and Exchange Commission.
Stock Price
2012
2011
Average
Daily
Volume
Low Close
Average
Daily
Low Close Volume
High
Quarter High
1st
2nd
3rd
4th
$ 10.30 $ 6.37 $ 9.75
142,987
$ 11.85
$ 5.95 $ 11.65
227,321
9.77
8.82
9.49
7.76
6.12
8.01
8.57
8.39
9.44
145,132
329,475
202,871
14.65
11.33
8.90
9.80
10.56
139,741
7.67
6.22
8.49
6.99
214,303
202,024
Account Consolidation
If you receive duplicate statements from
United and wish to discontinue such
mailings, or would like to consolidate your
accounts, contact Shareholder Relations at
(866) 270-5900 or investor_relations@ucbi.com.
This will enable United to avoid unnecessary
cost for duplication and mailing.
Shareholders seeking information on stock-
transfer requirements, lost certificates,
dividends and other shareholder matters,
should contact Shareholder Relations.
Transfer Agent and
Registrant
IST Shareholder Services
433 S. Carlton Ave.
Wheaton, Illinois 60187
(630) 480-0393
Independent
Registered Public
Accountants
PricewaterhouseCoopers LLP
Atlanta, Georgia
Legal Counsel
Troutman Sanders LLP
Atlanta, Georgia
Equal Opportunity Employer
United Community Banks is an equal
opportunity employer. All matters regarding
recruiting, hiring, training, compensation,
benefits, promotions, transfers and other
personnel policies will remain free from
discriminatory practices.
United Community Banks, Inc. © 2013.
Board of Directors
W.C. Nelson, Jr.
Chairman
Owner, Nelson Tractor Co.
Jimmy C. Tallent
President and
Chief Executive Officer
Robert H. Blalock
Owner, Blalock Insurance
Agency, Inc.
Executive Officers
Jimmy C. Tallent
President and
Chief Executive Officer
H. Lynn Harton
Chief Operating Officer
Clifford V. Brokaw
Managing Director
Corsair Capital
L. Cathy Cox
President, Young Harris College
Steven J. Goldstein
Retired Chief Financial Officer,
Federal Home Loan Bank of
Atlanta
Robert L. Head, Jr.
Owner, Head Westgate
Thomas A. Richlovsky
Retired Chief Financial Officer
and Treasurer
National City Corporation
John D. Stephens
Partner, Stephens MDS, LP
Tim R. Wallis
President and
Chief Executive Officer
Wallis Printing Company
Rex S. Schuette
Executive Vice President
Chief Financial Officer
David P. Shearrow
Executive Vice President
Chief Risk Officer
Bill M. Gilbert
Director of Banking
Tim Schools
Chief Strategy Officer
United Community Banks, Inc.
125 Highway 515 East | Blairsville, Georgia 30512
706.781.2265 | 866.270.7200 | ucbi.com
ucbi.com