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United Community Banks

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Industry Banks - Regional
Employees 1001-5000
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FY2013 Annual Report · United Community Banks
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2013 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  
Gain on bank-owned life insurance  
Severance costs  
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 benefit (expense)  
      Net income  
Preferred dividends and discount accretion  
      Net income available to common shareholders  

Per Common Share  
Diluted earnings  
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)  
Beneficial owners  
Employees  
Banking offices  

 2013 

 2012 

$  219.6  
 53.9  
   163.5  
   110.0  
 (65.5) 
 (7.9) 
1.5 
 (2.3) 
 .2  
-  
 - 
 .5  
 -  
   236.7  
   273.2  
 (12.1) 
$  261.1  

$  4.44  
   11.30  
   11.26  

$  229.8 
 53.4 
   166.0  
   117.2 
 (62.5)
 (14.0)
-
 (2.3)
 7.1 
 (6.7)
 (4.0)  
 .7 
 1.1   
 (2.7) 
 33.9
 (12.2) 
$  21.7  

$  0.38
 6.67 
 6.57 

 3.30   %   
 1.77  
 9.07  
   12.74  

3.51  % 
 2.57 
 5.60 
   14.16 

$  4,329  
  2,312  
  7,425  
  6,202  
796  

  59,432  
  16,650  
   1,506  
 102  

$  4,175 
   2,079 
   6,802 
   5,952 
 581 

  57,741 
  15,000 
   1,590 
 105 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letter to Shareholders

2013 was nothing less than a transformative year for United Community Banks.  Before 

the year began, we had identified a number of critical initiatives that we believed we had to 

complete to put the last of the financial crisis behind us and execute our growth plans.  We 

developed a thorough action plan to address each initiative and I am pleased to report that 

our bankers executed it flawlessly.

Credit quality was improving steadily, but incrementally, at the end of 2012.  We could have 

continued at that pace and in time would have reached our targets, but not without significant 

ongoing costs including further delays in pursuing strategic growth initiatives.  The continuing 

process of cleaning up the loan portfolio was carrying a heavy price in valuable resources and 

masking the benefit of expense reductions.  Credit-related memorandums of understanding 

We developed a 

thorough action 

plan to address 

each initiative and 

I am pleased to 

report that our 

bankers executed 

it flawlessly.

(MOUs) with regulators were restricting our ability to redeem 

preferred stock and expand into new markets.  Because of 

the  full  valuation  allowance  on  our  deferred  tax  asset,  our 

balance sheet and tangible book value were not reflecting the 

tremendous value of our income tax benefits.  We were growing 

loans, but intense competitive pressures were contributing to a 

shrinking margin in a low interest rate environment.

We identified several major goals to restore our superior credit 

quality and to remove the restrictions that were keeping us 

from  executing  growth  plans  and  maximizing  the  value  of 

your investment in United.  These goals included reducing our 

classified assets to less than 30 percent of our tier 1 regulatory capital plus our allowance 

for loan losses; reversing the valuation allowance on our deferred tax asset; terminating the 

MOUs; and redeeming our TARP preferred stock.  It is a pleasure to report that we have 

accomplished these goals and are now focused on growing the business.

Let me take a moment to describe our 2013 accomplishments in more detail, and how they 

affect us going forward.

one

Restoration of credit quality measures to among the industry’s best

During  the  second  quarter  we  completed  sales  of  $172  million  in  classified  assets,  a 

momentous event for our company and the culmination of several quarters of planning and 

coordination with regulators.  After these transactions our classified asset ratio (classified 

assets to tier 1 regulatory capital plus our allowance for loan losses) was below the 30 

Our improved asset 

quality and sustained 

profitability led to 

the release of our 

$272 million deferred 

tax asset valuation 
allowance which 

added $4.69 to our 

tangible book value.

percent target, and our ratio of nonperforming assets to 

total assets was not only much improved but was among 

the lowest in the country among banks of similar size.  

Accompanying benefits were significantly lower costs from 

work-out related expenses including charge-offs, loan loss 

provisions, foreclosed property management, and legal 

and appraisal fees.

Our improved asset quality and sustained profitability over 

several quarters led to the release of our $272 million 

deferred  tax  asset  valuation  allowance  in  the  second 

quarter.  This reversal allowed our substantial tax benefit 

to be reflected on the balance sheet and added $4.69 to 

our tangible book value, which was important to our stock 

valuation.  Stock prices trade at multiples of tangible book 

value, so our stock price was understated as long as the valuation allowance was in place.  

During 2013 our stock price increased 88 percent.

Achieving our goals and laying the foundation for strong performance

Since mid-2010 we had been subject to two informal memorandums of understanding with 

regulators.  The MOU with the Federal Deposit Insurance Corporation (FDIC) and Georgia 

Department of Banking and Finance (GDBF) was lifted in December 2013, and the MOU 

with the Federal Reserve Bank and the GDBF was lifted a month later.  These were pivotal 

events that lowered our deposit insurance costs, freed us to expand into new markets through 

acquisitions and branching, removed other restrictions and reporting requirements, and allowed 

us to re-establish dividends from the bank to the holding company for the first time since 2008.

As we knew would be the case when we adopted our aggressive plan in late 2012, achieving 

one goal led to achieving another.  The dramatic improvement in credit quality led to the lifting 

of the MOUs, which allowed us to re-establish the bank dividend to the holding company, 

which was critical to redeeming the preferred stock that we had issued in late 2008 under the 

U.S. Treasury’s Troubled Asset Relief Program (TARP).  Bank dividends, along with cash on 

hand and short-term debt, financed our redemption of $180 million in preferred stock in late 

2013 and early 2014, shortly before the dividend rate was set to increase – another significant 

cost savings.  In March 2014 we redeemed the remaining $16.6 million of outstanding 

preferred stock, marking the end of these costly obligations.  The full $197 million redemption 

was accomplished without issuing common stock that would have diluted the holdings of 

our shareholders.

two

Redeeming the preferred stock was critical to maximizing earnings per share.  So were reducing 

credit-related and FDIC insurance expenses, as we did significantly with our classified asset 

improvements and MOU releases, and finding other ways to lower costs.  Our improved credit 

measures and stronger earnings performance led to lower borrowing costs, and in the third 

quarter we refinanced $35 million in subordinated debt with senior notes at a one and a half 

percent lower rate.  These and other expense reductions contributed to an operating efficiency 

ratio of 60 percent at the end of 2013, compared to 72 percent a year before.

We  have  over  the  past  year  cited  a  goal  of  a  one 

percent return on assets by the fourth quarter of 2014, 

but the timing may be delayed into 2015 due to the 

preferred  stock  redemption.    Payment  of  preferred 

stock dividends is not included in the return on assets 

calculation, whereas borrowing costs for trust preferred 

securities  are  included.    Redeeming  our  preferred 

stock had a tremendous impact on our top priority of 

improving earnings per share.  With the preferred stock 

As we knew would 

be the case when we 

adopted our aggressive 

plan in late 2012, 

achieving one goal led 
to achieving another.

redemptions now behind us, we return our attention to improving return on assets, which at 

.86 percent in the fourth quarter is well down the path toward achieving our goal.

While  making  significant  headway  in  resolving  credit  quality,  efficiency  and  regulatory 

challenges, we also focused on reinvesting in strategic business growth on four major fronts: 

quality loans, other strategic business growth, specialized revenue-producing talent, and 

outstanding service.

Strategic growth: talent, markets and products

In late 2012 we opened a loan production office in Greenville, South Carolina, where Lynn 

Harton has deep market knowledge and relationships from his years of financial services 

leadership in the state.  Greenville and the state of South Carolina consistently rank high 

nationally for having a favorable business climate.  During 2013 we opened a full-service 

office, added new commercial lenders, and by year-end produced outstanding loan balances 

of $61 million and unfunded loan commitments of another $132 million.  In the second 

quarter of 2013 we entered Nashville, Tennessee with experienced lenders in that market’s 

busy healthcare sector, and by year-end added $28 million in outstanding loan balances.  

Demographic trends are driving growth in healthcare, and we will leverage our new expertise 

in that sector across the United footprint.

In 2012 we introduced a home equity line of credit with a low introductory rate for the first 

year, followed by a reset to prime plus.  At the end of 2013 the product had over $196 million 

in balances, of which $84 million had reset.  Early in 2013 we introduced SmarterMortgage, 

an in-house product that allows customers to refinance conveniently and with low closing 

costs, and by year-end had booked over 1,000 new loans totaling $141 million.  Not only 

did these new products create new balances; they also, and even more importantly, brought 

us many new customer relationships.  We are investing our strong deposit growth into these 

three

mostly variable-interest mortgage products, and they are helping diversify the loan portfolio 

and reduce exposure to rising interest rates.

Not only did these new 

products create new 

balances; they also, and 

even more importantly, 

brought us many new 

customer relationships.

We worked hard and successfully to improve operating 

efficiency, while at the same time making sensible and 

opportunistic strategic investments in our future.  Our 

entry  into  Nashville  and  expansion  in  Greenville  are 

examples of such opportunities, and we see more ahead 

including growing the mortgage business, particularly 

in our newer and more metropolitan markets.  To that 

end, in the third quarter of 2013 we hired a 29-year 

mortgage  banking  veteran  as  president  of  United 

Community Mortgage Services.  Under his leadership 

we will make mortgage banking an even stronger part 

of our relationship strategy.  We also added new leadership in advisory and treasury services, 

and are already seeing tremendous progress.  To support our retail banking focus and 

centralize consumer underwriting, we added a senior retail credit officer with over 30 years 

of experience in these disciplines.  We have added seasoned bankers in many back office 

support functions.  This new talent enhances our already solid banking team and provides a 

strong and dependable platform for growth.

Customer service

Products and delivery systems look much alike from bank to bank – but there is a difference 

in service, and that is an area where United Community Bank continues to excel.  I know we 

aren’t the only company to make such a claim, but don’t take it from me; third-party research 

Products and delivery 

systems look much 

alike from bank to 

bank – but there 

is a difference in 

service, and that is 

an area where United 

Community Bank 

continues to excel.

organizations have repeatedly verified our competitive 

service  difference.    In  early  2012,  Customer  Service 

Profiles awarded United the highest customer satisfaction 

rating of all banks they studied nationwide.  In early 2013 

another well known and highly respected national market 

research company cited us as having the second-highest 

customer satisfaction score in the Southeast.  With a score 

of 835, we missed the top spot by one point.  In early 

2014 it happened again, with United being recognized 
in the March issue of Fortune magazine as one of the 
top customer service champions across all industries. 

The countless ways that our people serve customers so 

well, with genuine care consistently day-in and day-out, 
is absolutely extraordinary.  The story continues, and that 

speaks very well for our future.

four

Looking forward

The achievements of 2013 have laid vital groundwork for the future.  They are as important as 

they are long in coming – the culmination of five years of hard work and perseverance among 

our bankers.  They stood their ground and executed through hard times, while adapting to 

changes in our industry along the way.  They did more with less: 2013 total operating expenses 

were 7 percent or $12 million lower than in 2012; and 33 percent or $87 million lower than in 

2011.  They kept a steadfast focus on customers, who rewarded them – awarded all of us – 

by remaining loyal to our bank.  A look back at these difficult years is encouraging in one very 

important sense; it shows what this team is capable of in years to come.

While the future looks brighter, it is not without challenges.  The economic recovery continues, 

but on its own slow pace.  Our industry is seeing loan growth, albeit gradual.  Interest margins 

are narrow and regulations have increased.  Pricing pressure 

will likely remain near-term from competition and the low 

interest rate environment.

With credit quality under control, our attention is laser-focused 

on advancing the business and earnings.  That means growth 

from targeted high-opportunity areas including commercial, 

SBA, asset-based and mortgage lending, and, on the fee 

revenue  side,  financial  advisory  and  brokerage  services.  

We look for continued solid performance from the mix of 

floating and fixed rate securities in our investment portfolio.  

Floating rate securities are part of our overall interest rate risk 

A look back at 

these difficult years 

is encouraging in 

one very important 

sense; it shows what 

this team is capable 

of in years to come.

management program.  We are well prepared for an eventual rise in interest rates.  We are 

carefully managing expenses while strategically investing in markets, services and talent.  With 

the release of the MOUs we are able to evaluate acquisition opportunities that can add value 

in and around our footprint.

Much has changed for the better.  We leave behind the troubles of the financial crisis but carry 

forward the lessons learned and the valuable experience gained through the process.  We 

move ahead with strong risk management practices, a well diversified loan portfolio and an 

exceptional team of bankers unmatched in the industry.  I am grateful for the strong support 

of our customers, the wise counsel of our board members, and the remarkable character of 

our employees.  As for our shareholders, the first priority, always and especially after these 

recent years, is to reward your loyalty by increasing the value of your investment in United 

Community Banks.

  Sincerely,

  Jimmy Tallent

five

 
 
CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands, except per share data)  

  2013 

  2012 

 2011

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 credit losses 
      Net interest revenue after provision for credit 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 
  Other 
      Total operating expenses 
      Income (loss) before income taxes 
Income tax expense (benefit) 
      Net income (loss) 
Preferred stock dividends 
      Net income (loss) available to common shareholders 

Income (loss) per common share: 
     Basic 
     Diluted 
Weighted average common shares outstanding: 
     Basic 
     Diluted 

six

 $  200,893  

$  217,378  

$   244,020 

   40,331  
827  
   3,789  
  245,840  

   43,657  
 956  
 3,986  
  265,977  

   55,251 
 1,009 
 2,321 
   302,601 

   1,759  
   2,210  
133  
   10,464  
   14,566  
   2,071  
68  
   10,977  
   27,682  
  218,158  
   65,500  
  152,658  

   31,997  
   9,925 
   4,465  
186  
-  

   10,025  
   56,598  
  209,256  

   96,233  
   13,930  
   13,233  
   9,219  
   9,617  
   3,283  
   3,718  
   2,031 
   7,869  
   15,171  
  174,304  
   34,952  
  (238,188) 
  237,140  
   12,078  
 $  261,062  

 2,049  
 2,518  
 150  
   19,097  
   23,814  
 2,987  
 907  
   10,201  
   37,909  
  228,068  
   62,500  
  165,568  

   31,670 
   10,483 
 3,082  
 7,078  
 (6,681) 
   10,480  
   56,112  
  221,680  

   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 
   12,148  
$   21,708  

 3,998 
 5,456 
 234 
 39,114 
   48,802 
 4,250 
 2,042
 10,544 
 65,638 
 236,963 
  251,000  
   (14,037)  

   29,110 
 5,419 
 2,986 
 842 
 (791)
 7,341 
 44,907 
 30,870 

 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)
 11,838  
$  (238,584) 

$ 

4.44  
4.44  

$  

.38  
.38  

$  
$  

(5.97)
(5.97)

  58,787  
  58,845  

   57,857   
   57,857   

  39,943
  39,943

 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         
 
 
  
 
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 $485,585 and $261,131) 
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 
Intangible assets 
Foreclosed property 
Net deferred tax asset 
Derivative financial instruments 
Other assets 

2013 

2012

 $  

71,230  
119,669 
37,999  
228,898  
   1,832,217  
479,742  
10,319  
   4,329,266  
(76,762)  
     4,252,504  
22,882  
163,589  
80,670 
19,598 
3,480  
4,221  
258,518  
23,833  
44,948  

$  

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
-
658
34,296 

            Total assets 

 $    7,425,419   

$    6,802,259 

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 
  Derivative financial instruments 
  Unsettled securities purchases 
   Accrued expenses and other liabilities 

 $   1,388,512  
     1,427,939  
     1,227,575  
251,125  

892,961  
588,689  
   424,704  
      6,201,505 
53,241  
120,125  
129,865  
46,232  
29,562    
49,174  

$   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 
12,543
- 
38,667 

            Total liabilities 

  6,629,704   

  6,220,854 

Commitments and contingencies 
Shareholders’ equity: 
   Preferred stock, $1 par value; 10,000,000 shares authorized; 
      Series A, $10 stated value, 0 and 21,700 shares issued and outstanding 
      Series B, $1,000 stated value, 105,000 and 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; 
        46,243,345 and 42,423,870 shares issued and outstanding 
   Common stock, non-voting $1 par value; 30,000,000 shares authorized; 
        13,188,206 and 15,316,794 shares issued and outstanding 
   Common stock issuable; 241,832 and 133,238 shares 
   Capital surplus 
   Accumulated deficit 
   Accumulated other comprehensive loss 

-  
105,000  
16,613  

217 
  178,557 
16,613 

46,243  

42,424 

13,188  
3,930 
     1,078,676  
(448,091) 
(19,844)  

15,317 
3,119 
 1,057,951 
(709,153)
(23,640) 

            Total shareholders’ equity 

   795,715  

   581,405 

            Total liabilities and shareholders’ equity 

 $    7,425,419  

$    6,802,259 

seven

  
 
  
  
  
  
  
  
 
    
 
    
    
 
    
 
    
 
    
 
    
 
    
 
  
  
 
  
  
  
    
  
    
    
  
    
 
    
 
    
    
 
    
 
  
 
  
  
  
    
 
    
 
  
    
  
  
    
 
    
 
  
 
  
  
SELECTED FINANCIAL DATA - QUARTERLY CORE SUMMARY

(in millions, except per share data; taxable equivalent)  

Q-4 

Q-3 

Q-2 

Q-1 

2013

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 gains/losses from sales 
   Other expenses 
Severance costs 
Securities gains, net 
Gain on bank-owned life insurance 
Provision for litigation settlement 
Gain on sale of low income housing tax credits 
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 (period end) (3) 
   Tangible common equity to assets (period end) (3) 

ASSET QUALITY* 
  Nonperforming loans 
  Foreclosed properties 
    Total nonperforming 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 

$  

55.9   $  
13.2  
 69.1  
41.2  
 27.9 
 (3.0) 

54.2   $  
14.0  
68.2  
39.3  
28.9  
(3.0) 

54.9   $  
14.1  
69.0  
42.1  
26.9  
(48.5) 

 .4 
 (.6) 
 -   
 .1  
 -    
-   
 -    
(8.9) 
 15.9  
2.9  

.3 
(.5) 
(.4) 
-    
.1   
-     
-    
(9.9) 
15.5  
3.1  

$  

13.0   $  

12.4   $  

(4.3) 
(.8) 
(1.6) 
-   
1.4 
-    
.5    

256.4  
230.0  
3.1  
226.9   $  

54.6   $  
12.6  
67.2  
40.9  
26.3  
(11.0) 

(1.1) 
(1.2) 
(.4) 
.1  
-   
-    
-    
(.9) 
11.8  
3.1  
8.7   $  

$  

.22   $  

.21   $  

3.90   $  

.15   $  

 11.30  
 11.26  

10.99  
10.95  

10.90  
10.82  

6.85  
6.76  

 3.26  %  
 .86  
 7.52  
 10.71  
 9.07  

 3.26  %  
.86  
7.38  
11.73  
9.01  

 3.33  %  
13.34  
197.22  
11.51  
8.78  

 3.37  %  
.70  
8.51  
8.58  
5.72  

2012

Q-4

56.1 
14.6 
70.7 
41.5 
29.2 
(14.0)

(3.2)
(1.4)

(.5)  
-   
-   
(4.0)  
- 
(.8)
5.3 
3.1 
2.2 

.04 
6.67 
6.57 

 3.45  % 
.31 
2.15 
8.47 
5.60 

$  

26.8   $  

26.1   $  

27.9   $  

4.2  
 31.0  

 76.8  
 4.4  

1.77  %  
 .41  
 .72  
 .42  

4.5  
30.6  

80.4  
4.5  

1.88  %  
.42  
.72  
.42  

3.9  
31.8  

81.8  
72.4  

1.95  %  
6.87  
.76  
.44  

96.0   $  
16.7  
112.7  

105.8  
12.4  

109.9 
18.3 
128.2 

107.1 
14.5 

2.52  %  
1.21  
2.68  
1.65  

2.57  % 
1.39 
3.06 
1.88 

$  

4,329   $  
 2,312  
 7,425  
 6,202  
 796  
 59.4  

4,267   $  
2,169  
7,243  
6,113  
852  
59.4  

4,189   $  
2,152  
7,163  
6,102  
829  
57.8  

4,194   $  
2,141  
6,849  
6,026  
592  
57.8  

4,175 
2,079 
6,802 
5,952 
581 
57.7

(1) Excludes net securities gains and losses, losses from the prepayment of borrowings, gains from the sale of low income housing tax credits and gain on bank owned life insurance.  (2) Excludes foreclosed 
property costs and severance costs.  (3) Excludes 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.

eight

  
 
 
 
 
  
 
 
 
 
   
   
   
 
  
 
 
 
 
  
 
 
 
 
        
    
 
    
 
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
        
 
 
 
 
 
 
 
 
 
 
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.

Board of Directors

W.C. Nelson, Jr.
Chairman
Owner, Nelson Tractor Co. 

Jimmy C. Tallent
President 
Chief Executive Officer

Robert H. Blalock
Owner, Blalock Insurance Agency, Inc.

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

STOC K PRICE

Quarter 

High 

Low 

Close  

Average 
Daily 
Volume 

2012  4th  

  $   9.49  

$   8.01  

$    9.44  

202,871

2013  1st  

$ 11.57  

$   9.59  

$ 11.34  

 195,803 

2nd 

3rd 

4th 

12.94  

16.04  

18.56  

 10.15  

12.15  

14.82  

12.42  

14.99  

17.75  

184,922  

341,270  

421,948  

Investor Information
Investor information including this report, 
Form 10-K, quarterly financial results, 
press releases and various other reports 
are available online at www.ir.ucbi.com. 
Alternatively, shareholders may contact 
Investor Relations at (866) 270-5900 or 
investor_relations@ucbi.com.

Stock Exchange
United Community Banks, Inc. (Ticker: 
UCBI) common stock is listed for trading 
on the NASDAQ Global Select Market.

Registrar Transfer Agent
IST Shareholder Services
433 S. Carlton Ave.
Wheaton, Illinois 60187
(630) 480-0393
Email: info@ilstk.com
www.istshareholderservices.com

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. © 2014.

Thomas A. Richlovsky
Retired Chief Financial Officer 
Treasurer 
National City Corporation

Tim R. Wallis
President 
Chief Executive Officer 
Wallis Printing Company

Robert L. Head, Jr.
Director Emeritus
Owner, Head Westgate

Executive Officers

Jimmy C. Tallent
President 
Chief Executive Officer

H. Lynn Harton
Executive Vice President 
Chief Operating Officer

Rex S. Schuette
Executive Vice President
Chief Financial Officer

David P. Shearrow
Executive Vice President
Chief Risk Officer

Bill M. Gilbert
Director of Banking

United Community Banks, Inc.
125 Highway 515 East  |  Blairsville, Georgia 30512
706.781.2265  |  866.270.7200  |  ucbi.com

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ucbi.com