SEC Filing | United Community Banks, Inc.

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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):
January 20, 2016

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

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

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

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

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

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

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

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

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

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

Item 2.02

Results of Operations and Financial Condition.

On January 20, 2016, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the quarter ended December 31, 2015 (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 January 20, 2016 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 Fourth Quarter 2015 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 operating and 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 operating and core earnings measures because it believes they are useful for evaluating the Registrant’s operations and performance over periods of time, and uses operating and 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. Operating earnings measures exclude merger-related charges and an impairment charge associated with properties purchased for future branch expansion. Core earnings measures also 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. Operating and 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.

Operating and 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 January 20, 2016

99.2		Investor Presentation, Fourth Quarter 2015

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: January 20, 2016

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

NET OPERATING INCOME OF $23.8 MILLION FOR FOURTH QUARTER 2015,

UP 30 PERCENT FROM A YEAR AGO

	●	Operating earnings per diluted share of 33 cents, up 10 percent from a year ago
	●	Operating return on assets of .99 percent
	●	Operating return on tangible common equity of 10.9 percent
	●	Loans up $162 million from third quarter, or 11 percent annualized, excluding sale of healthcare loans
	●	Loan growth for year of $444 million, or 10 percent, excluding mergers and healthcare loan sale
	●	Core transaction deposits up $524 million for 2015, or 14 percent, excluding deposits acquired in mergers

BLAIRSVILLE, GA – January 20, 2016 – United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today continued its strong momentum as it moves forward as a regional community bank in the Southeast, reflecting strong loan, core deposit and fee revenue growth, and a lower provision for credit losses. For the fourth quarter of 2015, net operating income of $23.8 million increased 30 percent from a year ago and operating earnings per diluted share of 33 cents was up 10 percent from a year ago.

Operating earnings and operating earnings per diluted share for the fourth quarter of 2015 exclude the effects of merger-related and other charges for impairment on properties acquired for future expansion. Including those charges, net income was $18.2 million for the fourth quarter, or 25 cents per diluted share. Also, operating earnings this quarter include three months of earnings from the acquisition of The Palmetto Bank (“Palmetto”), as compared to one month for the third quarter of 2015.

For the full year of 2015, United achieved net income of $71.6 million, or $1.09 per diluted share. Excluding merger-related and other charges, net operating income was $83.2 million, or $1.27 per diluted share.

At December 31, 2015, preliminary regulatory capital ratios were as follows: Tier 1 Risk-Based of 11.5 percent; Total Risk-Based of 12.5 percent; Common Equity Tier 1 Risk-Based of 11.5 percent; and, Tier 1 Leverage of 8.3 percent.

“United continues to enhance its long term value potential. This past year of 2015 demonstrated the strengths of our footprint and the momentum that characterizes our organization as we enter into 2016,” said Jimmy Tallent, chairman and chief executive officer. “In 2015, we struck the proper balance of investing for our future and delivering strong financial results. The fourth quarter was a continuation of that solid performance.

“Total loan production continued strong in the fourth quarter, though not readily apparent in our year-end loan balances due to the sale of our $190 million of healthcare loans,” Tallent continued. “Year-to-date loan growth, excluding loans acquired in mergers and our sale of healthcare loans, was $444 million, or 10 percent, slightly above our 2015 target of mid-to-upper-single-digit loan growth. Our loan growth was funded with solid core transaction deposit growth of $524 million, or 14 percent, excluding mergers.

“Fourth quarter net loan growth of $162 million, excluding the healthcare loan sale, was driven by loan production of $590 million across all of our markets,” added Tallent. “Our community banks originated $360 million in loan production, while our specialized lending area, which includes asset-based, commercial real estate, middle market, SBA and builder finance lending, produced $157 million.”

Fourth quarter taxable-equivalent net interest revenue totaled $74.0 million, up $8.33 million from the third quarter of 2015 and up $15.7 million from the fourth quarter of 2014. The increase in net interest revenue reflects strong loan and core deposit growth, net interest revenue from the Palmetto and First National Bank acquisitions, and an increase in net interest margin.

“The taxable-equivalent net interest margin of 3.34 percent is an increase of eight basis points from the third quarter and up three basis points from a year ago,” said Tallent. “The increase from third quarter reflects higher yields on our loan and securities portfolios as well as a two basis point decrease in the average rate on our interest-bearing liabilities.

“This quarter, our loan yield, net interest margin and net interest revenue benefited from the discount accretion from the acquired loan portfolios. The sale of our lower-yielding healthcare loans also contributed to the higher loan yield and net interest margin,” commented Tallent. “Additionally, the securities yield benefited from the mix of floating rate securities, slower prepayments and restructuring of a corporate bond, while interest-bearing liabilities benefited from Palmetto’s highly desirable deposit base that provided a very low cost source of funds.”

The fourth quarter provision for credit losses was $300 thousand, down $400 thousand from the third quarter and down $1.50 million from the fourth quarter of 2014. Fourth quarter net charge-offs were $1.30 million compared with $1.42 million in the third quarter and $2.51 million a year ago. Strong recoveries of previously charged-off loans drove net charge-offs down in the third and fourth quarters of 2015 compared with fourth quarter 2014. Nonperforming assets were .29 percent of total assets at year-end, compared with .29 percent in the third quarter and .26 percent a year ago.

Fourth quarter fee revenue totaled $21.3 million, up $2.99 million from the third quarter and $6.46 million from the fourth quarter of 2014. The increase from the third quarter was primarily due to the full quarter impact of the Palmetto acquisition. Total service charges and fees were $11.5 million, up $2.17 million from the third quarter and up $3.05 million from a year ago. Mortgage fees of $3.29 million were down $550 thousand from the third quarter and up $1.18 million from a year ago. The decrease from the third quarter reflects seasonality and lower refinancing activity. Closed mortgage loans totaled $138 million in the fourth quarter of 2015, compared with $141 million in the third quarter and $77.4 million in the fourth quarter of 2014. During the fourth quarter, sales of $25.1 million in SBA loans resulted in net gains of $2.00 million. This compares with $17.8 million in loans sold and net gains of $1.65 million in the third quarter of 2015, and $15.8 million in loans sold and net gains of $926 thousand in the fourth quarter of 2014.

“We are committed to growing our revenue stream by focusing on fee-generating products and services,” stated Tallent. “The growing SBA lending business and commitment to expanding our mortgage origination business are key parts of this strategy.”

Operating expenses, excluding merger-related and other charges of $9.08 million, were $56.4 million in the fourth quarter. This compares with $48.5 million in the third quarter of 2015 and $41.9 million in the fourth quarter of 2014. The increase from the third quarter reflects approximately $5.6 million of operating expenses related to the full-quarter impact of the Palmetto acquisition. Palmetto’s operating expenses are expected to decline following systems conversions late in the first quarter in 2016, as anticipated cost savings are realized.

“The increase in operating expenses from third quarter also reflects higher professional fees and consulting services for several, mostly one-time, regulatory-related compliance projects throughout the company,” stated Tallent. “With the heightened sensitivity to compliance, we made a decision to accelerate these projects into the current year.”

Fourth quarter salaries and employee benefits expense totaled $32.9 million, up $3.60 million from the third quarter and $6.35 million from a year ago. The linked-quarter increase was primarily due to the full-quarter impact of Palmetto’s costs, our new Charleston loan production office, and higher incentive costs associated with the growth in earnings and lending businesses. The increase from a year ago reflects the impact of mergers, investment in new lenders and support staff for the specialized lending area, as well as higher commissions and incentives associated with the overall improvement in earnings and growth in the SBA and mortgage lending businesses, commercial loans and core deposits.

Occupancy expense of $4.67 million and communications and equipment expense of $4.74 million for the fourth quarter were up $653 thousand and $772 thousand, respectively, with the full-quarter of Palmetto’s expenses accounting for most of the increase in both expense categories.

Other operating expenses for the fourth quarter totaled $7.01 million, up $1.46 million from the third quarter and up $3.08 million from the fourth quarter of 2014. The linked-quarter increase is mostly due to the inclusion of Palmetto’s operating expenses for the full-quarter versus one month in the third quarter. The increase from last year is due to the acquisitions and higher transaction processing costs for interchange and internet banking services.

“Palmetto merged into United on September 1 and our team of bankers has been working diligently to bring these two great companies together,” noted Tallent. “System conversions are targeted for late February 2016 and, upon their completion, Palmetto branches will begin doing business under the United Community Bank brand.”

Fourth quarter expenses included an after-tax merger charge of $1.94 million primarily related to severance and retention bonuses, system conversion costs, and advisory and professional services fees for the Palmetto acquisition. United also incurred an after-tax non-operating impairment charge in the fourth quarter of $3.65 million to write-down properties acquired in prior years for future branch expansion.

“As part of our growth strategy, we are evaluating all of our delivery channels, including future branch sites,” said Tallent. “Some of these properties will be retained for future branch sites, others will be sold. These decisions will be made over the next two years as we continue to execute on our growth strategies. However, because we’ve held these properties for a long time, we evaluated them for impairment and wrote-down the properties accordingly.”

“Our fourth quarter results mark the completion of another strong year,” Tallent said. “We will remember 2015 as the year we successfully re-entered the mergers and acquisitions business. I could not be more pleased with the partners we have chosen and our exceptional team of bankers who worked tirelessly to bring it all about. I’m excited about the momentum and foundation we are building at United and the opportunities for growth and success they will bring.”

Conference Call

United will hold a conference call today, Wednesday, January 20, 2016, 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 19833202. The conference call also will be webcast and available for replay for 30 days by selecting “Events & Presentations” 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 $9.6 billion in assets. The company’s banking subsidiary, United Community Bank, is one of the Southeast’s largest full-service banks, operating 134 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in personalized community banking services for individuals, small businesses and corporations. United Community Bank offers a full range of consumer and commercial banking services including mortgage, advisory, treasury management and other products. In 2014 and 2015, United Community Bank was ranked first in customer satisfaction in the southeast by J.D. Power and again in 2016 was ranked among the top 100 on the Forbes list of America’s Best Banks. 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 2014 Annual Report on Form 10-K under the sections entitled “Forward-Looking Statements” and “Risk Factors.” Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.

# # #

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Selected Financial Information

																Fourth			For the Twelve
	2015												2014			Quarter			Months Ended						YTD
(in thousands, except per share	Fourth			Third			Second			First			Fourth			2015-2014			December 31,						2015-2014
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			Change			2015			2014			Change
INCOME SUMMARY
Interest revenue	$	79,646		$	71,120		$	66,134		$	62,909		$	64,353					$	279,809		$	249,969
Interest expense		5,598			5,402			4,817			5,292			6,021						21,109			25,551
Net interest revenue		74,048			65,718			61,317			57,617			58,332			27	%		258,700			224,418			15	%
Provision for credit losses		300			700			900			1,800			1,800						3,700			8,500
Fee revenue		21,284			18,297			17,266			15,682			14,823			44			72,529			55,554			31
Total revenue		95,032			83,315			77,683			71,499			71,355			33			327,529			271,472			21
Expenses - operating ⁽¹⁾		56,410			48,525			45,247			43,061			41,919			35			193,243			162,865			19
Income before income tax expense - operating ⁽¹⁾		38,622			34,790			32,436			28,438			29,436			31			134,286			108,607			24
Income tax expense - operating ⁽¹⁾		14,822			13,064			12,447			10,768			11,189			32			51,101			40,987			25
Net income - operating ⁽¹⁾		23,800			21,726			19,989			17,670			18,247			30			83,185			67,620			23
Preferred dividends and discount accretion		25			25			17			-			-						67			439
Net income available to common shareholders - operating ⁽¹⁾		23,775			21,701			19,972			17,670			18,247			30			83,118			67,181			24
Merger-related and other charges, net of income tax benefit		5,592			3,839			2,176			-			-						11,607			-
Net income available to common shareholders - GAAP	$	18,183		$	17,862		$	17,796		$	17,670		$	18,247			-		$	71,511		$	67,181			6

PERFORMANCE MEASURES
Per common share:
Diluted income - operating ⁽¹⁾	$	.33		$	.33		$	.32		$	.29		$	.30			10		$	1.27		$	1.11			14
Diluted income - GAAP		.25			.27			.28			.29			.30			(17	)		1.09			1.11			(2	)
Cash dividends declared		.06			.06			.05			.05			.05						.22			.11
Book value		14.02			13.95			12.95			12.58			12.20			15			14.02			12.20			15
Tangible book value⁽³⁾		12.06			12.08			12.66			12.53			12.15			(1	)		12.06			12.15			(1	)

Key performance ratios:
Return on tangible common equity - operating^(1)(2)(3)(4)		10.87	%		10.29	%		10.20	%		9.46	%		9.74	%					10.24	%		9.32	%
Return on common equity - operating^(1)(2)(4)		9.18			9.54			9.90			9.34			9.60						9.48			9.17
Return on common equity - GAAP⁽²⁾⁽⁴⁾		7.02			7.85			8.83			9.34			9.60						8.15			9.17
Return on assets - operating⁽¹⁾⁽⁴⁾		.99			1.00			1.00			.94			.96						.98			.91
Return on assets - GAAP⁽⁴⁾		.76			.82			.89			.94			.96						.85			.91
Dividend payout ratio - operating ⁽¹⁾		18.18			18.18			15.63			17.24			16.67						17.32			9.91
Dividend payout ratio - GAAP		24.00			22.22			17.86			17.24			16.67						20.18			9.91
Net interest margin⁽⁴⁾		3.34			3.26			3.30			3.31			3.31						3.30			3.26
Efficiency ratio - operating ⁽¹⁾		59.41			57.81			57.59			59.15			57.47						58.51			58.26
Efficiency ratio - GAAP		68.97			64.65			61.63			59.15			57.47						63.96			58.26
Average equity to average assets		10.68			10.39			10.05			9.86			9.76						10.27			9.69
Average tangible equity to average assets⁽³⁾		9.40			9.88			9.91			9.82			9.72						9.74			9.67
Average tangible common equity to average assets⁽³⁾		9.29			9.77			9.83			9.82			9.72						9.66			9.60
Tangible common equity to risk-weighted assets^(3)(5)(6)		12.82			13.08			13.24			13.53			13.82						12.82			13.82

ASSET QUALITY
Nonperforming loans	$	22,653		$	20,064		$	18,805		$	19,015		$	17,881			27		$	22,653		$	17,881			27
Foreclosed properties		4,883			7,669			2,356			1,158			1,726			183			4,883			1,726			183
Total nonperforming assets (NPAs)		27,536			27,733			21,161			20,173			19,607			40			27,536			19,607			40
Allowance for loan losses		68,448			69,062			70,129			70,007			71,619			(4	)		68,448			71,619			(4	)
Net charge-offs		1,302			1,417			978			2,562			2,509			(48	)		6,259			13,878			(55	)
Allowance for loan losses to loans		1.14	%		1.15	%		1.36	%		1.46	%		1.53	%					1.14	%		1.53	%
Allowance for loan losses to loans, excl. acquired loans		1.35			1.37			1.42			1.46			1.53						1.35			1.53
Net charge-offs to average loans⁽⁴⁾		.09			.10			.08			.22			.22						.12			.31
NPAs to loans and foreclosed properties		.46			.46			.41			.42			.42						.46			.42
NPAs to total assets		.29			.29			.26			.26			.26						.29			.26

AVERAGE BALANCES ($ in millions)
Loans	$	5,975		$	5,457		$	5,017		$	4,725		$	4,621			29		$	5,298		$	4,450			19
Investment securities		2,607			2,396			2,261			2,203			2,222			17			2,368			2,274			4
Earning assets		8,792			8,009			7,444			7,070			7,013			25			7,834			6,880			14
Total assets		9,558			8,634			8,017			7,617			7,565			26			8,462			7,436			14
Deposits		8,028			7,135			6,669			6,369			6,383			26			7,055			6,228			13
Shareholders’ equity		1,021			897			806			751			738			38			869			720			21
Common shares - basic (thousands)		72,135			66,294			62,549			60,905			60,830			19			65,488			60,588			8
Common shares - diluted (thousands)		72,140			66,300			62,553			60,909			60,833			19			65,492			60,590			8

AT PERIOD END ($ in millions)
Loans	$	5,995		$	6,024		$	5,174		$	4,788		$	4,672			28		$	5,995		$	4,672			28
Investment securities		2,656			2,457			2,322			2,201			2,198			21			2,656			2,198			21
Total assets		9,626			9,414			8,246			7,664			7,567			27			9,626			7,567			27
Deposits		7,881			7,905			6,808			6,438			6,327			25			7,881			6,327			25
Shareholders’ equity		1,018			1,013			827			764			740			38			1,018			740			38
Common shares outstanding (thousands)		71,484			71,472			62,700			60,309			60,259			19			71,484			60,259			19

⁽¹⁾Excludes merger-related charges and impairment losses on surplus bank property. ⁽²⁾ 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). ⁽³⁾ Excludes effect of acquisition related intangibles and associated amortization. ⁽⁴⁾ Annualized. ⁽⁵⁾ December 31, September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015. ⁽⁶⁾ Fourth quarter 2015 ratio is preliminary.

UNITED COMMUNITY BANKS, INC.

Selected Financial Information

For the Years Ended December 31,

(in thousands, except per share data;
taxable equivalent)	2015			2014			2013			2012			2011
INCOME SUMMARY
Net interest revenue	$	258,700		$	224,418		$	219,641		$	229,758		$	238,670
Provision for credit losses		3,700			8,500			65,500			62,500			251,000
Fee revenue		72,529			55,554			56,598			56,112			44,907
Total revenue		327,529			271,472			210,739			223,370			32,577
Expenses - operating ⁽¹⁾		193,243			162,865			174,304			186,774			261,599
Income (loss) before income tax expense (benefit) - operating ⁽¹⁾		134,286			108,607			36,435			36,596			(229,022	)
Income tax expense (benefit) - operating ⁽¹⁾		51,101			40,987			(236,705	)		2,740			(2,276	)
Net income (loss) - operating ⁽¹⁾		83,185			67,620			273,140			33,856			(226,746	)
Preferred dividends and discount accretion		67			439			12,078			12,148			11,838
Net income (loss) available to common shareholders - operating ⁽¹⁾		83,118			67,181			261,062			21,708			(238,584	)
Merger-related and other charges, net of income tax benefit		(11,607	)		-			-			-			-
Net income (loss) available to common shareholders - GAAP	$	71,511		$	67,181		$	261,062		$	21,708		$	(238,584	)

PERFORMANCE MEASURES
Per common share:
Diluted income (loss) - operating ⁽¹⁾	$	1.27		$	1.11		$	4.44		$	.38		$	(5.97	)
Diluted income (loss) - GAAP		1.09			1.11			4.44			.38			(5.97	)
Cash dividends declared		.22			.11			-			-			-
Book value		14.02			12.20			11.30			6.67			6.62
Tangible book value⁽³⁾		12.06			12.15			11.26			6.57			6.47

Key performance ratios:
Return on tangible common equity - operating ^(1)(2)(3)		10.24	%		9.32	%		47.35	%		6.27	%		(96.20	)%
Return on common equity - operating ⁽¹⁾⁽²⁾		9.48			9.17			46.72			5.43			(93.57	)
Return on common equity - GAAP ⁽²⁾		8.15			9.17			46.72			5.43			(93.57	)
Return on assets - operating ⁽¹⁾		.98			.91			3.86			.49			(3.15	)
Return on assets - GAAP		.85			.91			3.86			.49			(3.15	)
Dividend payout ratio - operating ⁽¹⁾		17.32			9.91			-			-			-
Dividend payout ratio - GAAP		20.18			9.91			-			-			-
Net interest margin		3.30			3.26			3.30			3.51			3.52
Efficiency ratio - operating ⁽¹⁾		58.51			58.26			63.14			65.43			92.27
Efficiency ratio - GAAP		63.96			58.26			63.14			65.43			92.27
Average equity to average assets		10.27			9.69			10.35			8.47			7.75
Average tangible equity to average assets ⁽³⁾		9.74			9.67			10.31			8.38			7.62
Average tangible common equity to average assets ⁽³⁾		9.66			9.60			7.55			5.54			3.74
Tangible common equity to risk-weighted assets^(3)(4)(5)		12.82			13.82			13.17			8.26			8.25

ASSET QUALITY
Non-performing loans	$	22,653		$	17,881		$	26,819		$	109,894		$	127,479
Foreclosed properties		4,883			1,726			4,221			18,264			32,859
Total non-performing assets (NPAs)		27,536			19,607			31,040			128,158			160,338
Allowance for loan losses		68,448			71,619			76,762			107,137			114,468
Net charge-offs		6,259			13,879			93,710			69,831			311,227
Allowance for loan losses to loans		1.14	%		1.53	%		1.77	%		2.57	%		2.79	%
Allowance for loan losses to loans, excluding acquired loans		1.35			1.53			1.77			2.57			2.79
Net charge-offs to average loans		.12			.31			2.22			1.69			7.33
NPAs to loans and foreclosed properties		.46			.42			.72			3.06			3.87
NPAs to total assets		.29			.26			.42			1.88			2.30

AVERAGE BALANCES ($ in millions)
Loans	$	5,298		$	4,450		$	4,254		$	4,166		$	4,307
Investment securities		2,368			2,274			2,190			2,089			1,999
Earning assets		7,834			6,880			6,649			6,547			6,785
Total assets		8,462			7,436			7,074			6,865			7,189
Deposits		7,055			6,228			6,027			5,885			6,275
Shareholders’ equity		869			720			732			582			557
Common shares - Basic (thousands)		65,488			60,588			58,787			57,857			39,943
Common shares - Diluted (thousands)		65,492			60,590			58,845			57,857			39,943

AT YEAR END ($ in millions)
Loans	$	5,995		$	4,672		$	4,329		$	4,175		$	4,110
Investment securities		2,656			2,198			2,312			2,079			2,120
Total assets		9,626			7,567			7,425			6,802			6,983
Deposits		7,881			6,327			6,202			5,952			6,098
Shareholders’ equity		1,018			740			796			581			575
Common shares outstanding (thousands)		71,484			60,259			59,432			57,741			57,561

⁽¹⁾ Excludes merger-related charges and impairment losses on surplus bank property. ⁽²⁾ Net income (loss) available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). ⁽³⁾ Excludes effect of acquisition related intangibles and associated amortization. ⁽⁴⁾ December 31, 2015 calculated under Basel III rules, which became effective January 1, 2015. ⁽⁵⁾ 2015 ratio is preliminary.

UNITED COMMUNITY BANKS, INC.

Non-GAAP Performance Measures Reconciliation

Selected Financial Information

	2015												2014			For the Twelve Months Ended
(in thousands, except per share	Fourth			Third			Second			First			Fourth			December 31,
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			2015			2014			2013			2012			2011

Interest revenue reconciliation
Interest revenue - taxable equivalent	$	79,646		$	71,120		$	66,134		$	62,909		$	64,353		$	279,809		$	249,969		$	247,323		$	267,667		$	304,308
Taxable equivalent adjustment		(284	)		(292	)		(326	)		(375	)		(398	)		(1,277	)		(1,537	)		(1,483	)		(1,690	)		(1,707	)
Interest revenue (GAAP)	$	79,362		$	70,828		$	65,808		$	62,534		$	63,955		$	278,532		$	248,432		$	245,840		$	265,977		$	302,601

Net interest revenue reconciliation
Net interest revenue - taxable equivalent	$	74,048		$	65,718		$	61,317		$	57,617		$	58,332		$	258,700		$	224,418		$	219,641		$	229,758		$	238,670
Taxable equivalent adjustment		(284	)		(292	)		(326	)		(375	)		(398	)		(1,277	)		(1,537	)		(1,483	)		(1,690	)		(1,707	)
Net interest revenue (GAAP)	$	73,764		$	65,426		$	60,991		$	57,242		$	57,934		$	257,423		$	222,881		$	218,158		$	228,068		$	236,963

Total revenue reconciliation
Total operating revenue	$	95,032		$	83,315		$	77,683		$	71,499		$	71,355		$	327,529		$	271,472		$	210,739		$	223,370		$	32,577
Taxable equivalent adjustment		(284	)		(292	)		(326	)		(375	)		(398	)		(1,277	)		(1,537	)		(1,483	)		(1,690	)		(1,707	)
Total revenue (GAAP)	$	94,748		$	83,023		$	77,357		$	71,124		$	70,957		$	326,252		$	269,935		$	209,256		$	221,680		$	30,870

Expense reconciliation
Expenses - operating	$	56,410		$	48,525		$	45,247		$	43,061		$	41,919		$	193,243		$	162,865		$	174,304		$	186,774		$	261,599
Merger-related and other charges		9,078			5,744			3,173			-			-			17,995			-			-			-			-
Expenses (GAAP)	$	65,488		$	54,269		$	48,420		$	43,061		$	41,919		$	211,238		$	162,865		$	174,304		$	186,774		$	261,599

Income before taxes reconciliation
Income before taxes - operating	$	38,622		$	34,790		$	32,436		$	28,438		$	29,436		$	134,286		$	108,607		$	36,435		$	36,596		$	(229,022	)
Taxable equivalent adjustment		(284	)		(292	)		(326	)		(375	)		(398	)		(1,277	)		(1,537	)		(1,483	)		(1,690	)		(1,707	)
Merger-related and other charges		(9,078	)		(5,744	)		(3,173	)		-			-			(17,995	)		-			-			-			-
Income before taxes (GAAP)	$	29,260		$	28,754		$	28,937		$	28,063		$	29,038		$	115,014		$	107,070		$	34,952		$	34,906		$	(230,729	)

Income tax expense reconciliation
Income tax expense - operating	$	14,822		$	13,064		$	12,447		$	10,768		$	11,189		$	51,101		$	40,987		$	(236,705	)	$	2,740		$	(2,276	)
Taxable equivalent adjustment		(284	)		(292	)		(326	)		(375	)		(398	)		(1,277	)		(1,537	)		(1,483	)		(1,690	)		(1,707	)
Merger-related and other charges, tax benefit		(3,486	)		(1,905	)		(997	)		-			-			(6,388	)		-			-			-			-
Income tax expense (GAAP)	$	11,052		$	10,867		$	11,124		$	10,393		$	10,791		$	43,436		$	39,450		$	(238,188	)	$	1,050		$	(3,983	)

Net income reconciliation
Net income - operating	$	23,800		$	21,726		$	19,989		$	17,670		$	18,247		$	83,185		$	67,620		$	273,140		$	33,856		$	(226,746	)
Merger-related and other charges, net of income tax benefit		(5,592	)		(3,839	)		(2,176	)		-			-			(11,607	)		-			-			-			-
Net income (GAAP)	$	18,208		$	17,887		$	17,813		$	17,670		$	18,247		$	71,578		$	67,620		$	273,140		$	33,856		$	(226,746	)

Net income available to common shareholders reconciliation
Net income available to common shareholders - operating	$	23,775		$	21,701		$	19,972		$	17,670		$	18,247		$	83,118		$	67,181		$	261,062		$	21,708		$	(238,584	)
Merger-related and other charges, net of income tax benefit		(5,592	)		(3,839	)		(2,176	)		-			-			(11,607	)		-			-			-			-
Net income available to common shareholders (GAAP)	$	18,183		$	17,862		$	17,796		$	17,670		$	18,247		$	71,511		$	67,181		$	261,062		$	21,708		$	(238,584	)

Diluted income per common share reconciliation
Diluted income per common share - operating	$	.33		$	.33		$	.32		$	.29		$	.30		$	1.27		$	1.11		$	4.44		$	.38		$	(5.97	)
Merger-related and other charges		(.08	)		(.06	)		(.04	)		-			-			(.18	)		-			-			-			-
Diluted income per common share (GAAP)	$	.25		$	.27		$	.28		$	.29		$	.30		$	1.09		$	1.11		$	4.44		$	.38		$	(5.97	)

Book value per common share reconciliation
Tangible book value per common share	$	12.06		$	12.08		$	12.66		$	12.53		$	12.15		$	12.06		$	12.15		$	11.26		$	6.57		$	6.47
Effect of goodwill and other intangibles		1.96			1.87			.29			.05			.05			1.96			.05			.04			.10			.15
Book value per common share (GAAP)	$	14.02		$	13.95		$	12.95		$	12.58		$	12.20		$	14.02		$	12.20		$	11.30		$	6.67		$	6.62

Return on tangible common equity reconciliation
Return on tangible common equity - operating		10.87	%		10.29	%		10.20	%		9.46	%		9.74	%		10.24	%		9.32	%		47.35	%		6.27	%		(96.20	)%
Effect of goodwill and other intangibles		(1.69	)		(.75	)		(.30	)		(.12	)		(.14	)		(.76	)		(.15	)		(.63	)		(.84	)		2.63
Return on common equity - operating		9.18			9.54			9.90			9.34			9.60			9.48			9.17			46.72			5.43			(93.57	)
Merger-related and other charges		(2.16	)		(1.69	)		(1.07	)		-			-			(1.33	)		-			-			-			-
Return on common equity (GAAP)		7.02	%		7.85	%		8.83	%		9.34	%		9.60	%		8.15	%		9.17	%		46.72	%		5.43	%		(93.57	)%

Return on assets reconciliation
Return on assets - operating		.99	%		1.00	%		1.00	%		.94	%		.96	%		.98	%		.91	%		3.86	%		.49	%		(3.15	)%
Merger-related and other charges		(.23	)		(.18	)		(.11	)		-			-			(.13	)		-			-			-			-
Return on assets (GAAP)		.76	%		.82	%		.89	%		.94	%		.96	%		.85	%		.91	%		3.86	%		.49	%		(3.15	)%

Allowance for loan losses to loans reconciliation
Allowance for loan losses to loans, excl. acquired loans		1.35	%		1.37	%		1.42	%		1.46	%		1.53	%		1.35	%		1.53	%		1.77	%		2.57	%		2.79	%
Effect of removing acquired loans from ratio		(.21	)		(.22	)		(.06	)		-			-			(.21	)		-			-			-			-
Allowance for loan losses to loans (GAAP)		1.14	%		1.15	%		1.36	%		1.46	%		1.53	%		1.14	%		1.53	%		1.77	%		2.57	%		2.79	%

Dividend payout ratio reconciliation
Dividend payout ratio - operating		18.18	%		18.18	%		15.63	%		17.24	%		16.67	%		17.32	%		9.91	%		-	%		-	%		-	%
Merger-related and other charges		5.82			4.04			2.23			-			-			2.86			-			-			-			-
Dividend payout ratio (GAAP)		24.00	%		22.22	%		17.86	%		17.24	%		16.67	%		20.18	%		9.91	%		-	%		-	%		-	%

Efficiency ratio reconciliation
Efficiency ratio - operating		59.41	%		57.81	%		57.59	%		59.15	%		57.47	%		58.51	%		58.26	%		63.14	%		65.43	%		92.27	%
Merger-related and other charges		9.56			6.84			4.04			-			-			5.45			-			-			-			-
Efficiency ratio (GAAP)		68.97	%		64.65	%		61.63	%		59.15	%		57.47	%		63.96	%		58.26	%		63.14	%		65.43	%		92.27	%

Average equity to assets reconciliation
Tangible common equity to assets		9.29	%		9.77	%		9.83	%		9.82	%		9.72	%		9.66	%		9.60	%		7.55	%		5.54	%		3.74	%
Effect of preferred equity		.11			.11			.08			-			-			.08			.07			2.76			2.84			3.88
Tangible equity to assets		9.40			9.88			9.91			9.82			9.72			9.74			9.67			10.31			8.38			7.62
Effect of goodwill and other intangibles		1.28			.51			.14			.04			.04			.53			.02			.04			.09			.13
Equity to assets (GAAP)		10.68	%		10.39	%		10.05	%		9.86	%		9.76	%		10.27	%		9.69	%		10.35	%		8.47	%		7.75	%

Tangible common equity to risk-weighted assets reconciliation ⁽¹⁾
Tangible common equity to risk-weighted assets		12.82	%		13.08	%		13.24	%		13.53	%		13.82	%		12.82	%		13.82	%		13.18	%		8.26	%		8.25	%
Effect of other comprehensive income		.38			.23			.28			.19			.35			.38			.35			.39			.51			(.03	)
Effect of deferred tax limitation		(2.05	)		(2.24	)		(2.49	)		(2.86	)		(3.11	)		(2.05	)		(3.11	)		(4.26	)		-			-
Effect of trust preferred		.08			.08			.63			.67			1.00			.08			1.00			1.04			1.15			1.18
Effect of preferred equity		.15			.15			.17			-			-			.15			-			2.39			4.24			4.29
Basel III intangibles transition adjustment		.10			.13			.06			.04			-			.10			-			-			-			-
Basel III disallowed investments		(.03	)		(.03	)		(.03	)		(.04	)		-			(.03	)		-			-			-			-
Tier I capital ratio (Regulatory)		11.45	%		11.40	%		11.86	%		11.53	%		12.06	%		11.45	%		12.06	%		12.74	%		14.16	%		13.69	%

⁽¹⁾ December 31, September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015. Fourth quarter 2015 ratios are preliminary.

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Period-End

	2015								2014		Linked			Year over
	Fourth		Third		Second		First		Fourth		Quarter			Year
(in millions)	Quarter		Quarter		Quarter		Quarter		Quarter		Change			Change
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,494	$	1,479	$	1,266	$	1,167	$	1,163	$	15		$	331
Income producing commercial RE		824		818		689		636		599		6			225
Commercial & industrial		785		890		793		716		710		(105	)		75
Commercial construction		342		319		238		230		196		23			146
Total commercial		3,445		3,506		2,986		2,749		2,668		(61	)		777
Residential mortgage		1,029		1,062		935		864		866		(33	)		163
Home equity lines of credit		598		585		491		465		466		13			132
Residential construction		352		334		299		291		299		18			53
Consumer installment		571		537		463		419		373		34			198
Total loans	$	5,995	$	6,024	$	5,174	$	4,788	$	4,672		(29	)		1,323

LOANS BY MARKET
North Georgia	$	1,125	$	1,130	$	1,155	$	1,150	$	1,163		(5	)		(38	)
Atlanta MSA		1,259		1,266		1,275		1,254		1,243		(7	)		16
North Carolina		549		546		533		539		553		3			(4	)
Coastal Georgia		537		506		499		476		456		31			81
Gainesville MSA		254		252		257		255		257		2			(3	)
East Tennessee		504		511		525		281		280		(7	)		224
South Carolina		819		783		35		30		30		36			789
Specialized Lending		492		609		538		487		421		(117	)		71
Indirect auto		456		421		357		316		269		35			187
Total loans	$	5,995	$	6,024	$	5,174	$	4,788	$	4,672		(29	)		1,323

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Year-End

(in millions)	2015		2014		2013		2012		2011
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,494	$	1,163	$	1,134	$	1,131	$	1,112
Income producing commercial RE		824		599		623		682		710
Commercial & industrial		785		710		472		458		428
Commercial construction		342		196		149		155		164
Total commercial		3,445		2,668		2,378		2,426		2,414
Residential mortgage		1,029		866		875		829		835
Home equity lines of credit		598		466		441		385		300
Residential construction		352		299		328		382		448
Consumer installment		571		373		307		153		113
Total loans	$	5,995	$	4,672	$	4,329	$	4,175	$	4,110

LOANS BY MARKET
North Georgia	$	1,125	$	1,163	$	1,240	$	1,364	$	1,426
Atlanta MSA		1,259		1,243		1,235		1,204		1,144
North Carolina		549		553		572		579		597
Coastal Georgia		537		456		423		400		346
Gainesville MSA		254		257		255		261		265
East Tennessee		504		280		280		283		256
South Carolina		819		30		4		-		-
Specialized Lending		492		421		124		46		76
Indirect auto		456		269		196		38		-
Total loans	$	5,995	$	4,672	$	4,329	$	4,175	$	4,110

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality

	Fourth Quarter 2015									Third Quarter 2015									Second Quarter 2015
	Nonperforming			Foreclosed			Total			Nonperforming			Foreclosed			Total			Nonperforming			Foreclosed			Total
(in thousands)	Loans			Properties			NPAs			Loans			Properties			NPAs			Loans			Properties			NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE	$	7,036		$	2,652		$	9,688		$	5,918		$	882		$	6,800		$	4,878		$	360		$	5,238
Income producing CRE		2,595			-			2,595			1,238			4,084			5,322			883			-			883
Commercial & industrial		892			-			892			1,068			-			1,068			1,389			-			1,389
Commercial construction		328			437			765			256			657			913			59			382			441
Total commercial		10,851			3,089			13,940			8,480			5,623			14,103			7,209			742			7,951
Residential mortgage		8,555			1,242			9,797			8,847			1,454			10,301			8,599			1,373			9,972
Home equity lines of credit		851			80			931			890			87			977			940			54			994
Residential construction		1,398			472			1,870			929			505			1,434			1,358			187			1,545
Consumer installment		998			-			998			918			-			918			699			-			699
Total NPAs	$	22,653		$	4,883		$	27,536		$	20,064		$	7,669		$	27,733		$	18,805		$	2,356		$	21,161
Balance as a % of
Unpaid Principal		71.4	%		34.2	%		59.8	%		70.3	%		45.8	%		61.2	%		64.9	%		46.6	%		62.2	%

NONPERFORMING ASSETS BY MARKET
North Georgia	$	5,167		$	1,612		$	6,779		$	6,403		$	1,263		$	7,666		$	6,157		$	657		$	6,814
Atlanta MSA		3,023			625			3,648			1,750			1,122			2,872			2,361			135			2,496
North Carolina		5,289			183			5,472			4,564			9			4,573			4,746			690			5,436
Coastal Georgia		2,079			-			2,079			338			66			404			659			-			659
Gainesville MSA		307			-			307			325			3			328			864			22			886
East Tennessee		3,448			157			3,605			2,886			231			3,117			1,885			852			2,737
South Carolina		323			2,306			2,629			267			4,975			5,242			-			-			-
Specialized Lending		2,231			-			2,231			2,809			-			2,809			1,565			-			1,565
Indirect auto		786			-			786			722			-			722			568			-			568
Total NPAs	$	22,653		$	4,883		$	27,536		$	20,064		$	7,669		$	27,733		$	18,805		$	2,356		$	21,161

NONPERFORMING ASSETS ACTIVITY
Beginning Balance	$	20,064		$	7,669		$	27,733		$	18,805		$	2,356		$	21,161		$	19,015		$	1,158		$	20,173
Acquisitions		-			(1,585	)		(1,585	)		-			4,848			4,848			-			962			962
Loans placed on non-accrual		10,768			-			10,768			8,923			-			8,923			6,552			-			6,552
Payments received		(4,893	)		-			(4,893	)		(4,233	)		-			(4,233	)		(3,839	)		-			(3,839	)
Loan charge-offs		(1,813	)		-			(1,813	)		(1,531	)		-			(1,531	)		(1,854	)		-			(1,854	)
Foreclosures		(1,473	)		1,497			24			(1,900	)		1,900			-			(1,069	)		1,069			-
Capitalized costs		-			-			-			-			256			256			-			-			-
Property sales		-			(2,968	)		(2,968	)		-			(1,916	)		(1,916	)		-			(895	)		(895	)
Write downs		-			11			11			-			(79	)		(79	)		-			(9	)		(9	)
Net gains (losses) on sales		-			259			259			-			304			304			-			71			71
Ending Balance	$	22,653		$	4,883		$	27,536		$	20,064		$	7,669		$	27,733		$	18,805		$	2,356		$	21,161

	Fourth Quarter 2015						Third Quarter 2015						Second Quarter 2015
				Net Charge-						Net Charge-						Net Charge-
				Offs to						Offs to						Offs to
	Net			Average			Net			Average			Net			Average
(in thousands)	Charge-Offs			Loans ⁽¹⁾			Charge-Offs			Loans ⁽¹⁾			Charge-Offs			Loans ⁽¹⁾
NET CHARGE-OFFS BY CATEGORY
Owner occupied CRE	$	861			.23	%	$	236			.07	%	$	285			.09	%
Income producing CRE		(35	)		(.02	)		(106	)		(.06	)		(276	)		(.17	)
Commercial & industrial		(719	)		(.34	)		190			.09			(627	)		(.33	)
Commercial construction		253			.31			59			.09			96			.16
Total commercial		360			.04			379			.05			(522	)		(.07	)
Residential mortgage		(120	)		(.05	)		433			.18			787			.35
Home equity lines of credit		194			.13			293			.22			322			.27
Residential construction		415			.48			(124	)		(.16	)		107			.14
Consumer installment		453			.33			436			.35			284			.26
Total	$	1,302			.09		$	1,417			.10		$	978			.08

NET CHARGE-OFFS BY MARKET
North Georgia	$	1,011			.36	%	$	1,352			.47	%	$	911			.32	%
Atlanta MSA		496			.16			74			.02			138			.04
North Carolina		426			.31			183			.13			176			.13
Coastal Georgia		47			.04			19			.02			(40	)		(.03	)
Gainesville MSA		(340	)		(.54	)		(236	)		(.36	)		(233	)		(.36	)
East Tennessee		(326	)		(.26	)		153			.12			127			.11
South Carolina		(474	)		(.24	)		(247	)		(.34	)		-			-
Specialized Lending		253			.18			(42	)		(.03	)		(224	)		(.17	)
Indirect auto		209			.19			161			.17			123			.14
Total	$	1,302			.09		$	1,417			.10		$	978			.08

⁽¹⁾ Annualized.

UNITED COMMUNITY BANKS, INC.

Consolidated Statement of Income (Unaudited)

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
(in thousands, except per share data)	2015		2014		2015			2014
Interest revenue:
Loans, including fees	$	63,442	$	50,677	$	223,256		$	196,279
Investment securities, including tax exempt of $189, $180, $705 and $738		14,952		12,375		51,848			48,493
Deposits in banks and short-term investments		968		903		3,428			3,660
Total interest revenue		79,362		63,955		278,532			248,432

Interest expense:
Deposits:
NOW		426		435		1,505			1,651
Money market		1,006		868		3,466			3,060
Savings		27		20		98			81
Time		922		1,623		3,756			7,133
Total deposit interest expense		2,381		2,946		8,825			11,925
Short-term borrowings		85		96		364			2,160
Federal Home Loan Bank advances		436		339		1,743			912
Long-term debt		2,696		2,640		10,177			10,554
Total interest expense		5,598		6,021		21,109			25,551
Net interest revenue		73,764		57,934		257,423			222,881
Provision for credit losses		300		1,800		3,700			8,500
Net interest revenue after provision for credit losses		73,464		56,134		253,723			214,381

Fee revenue:
Service charges and fees		11,500		8,446		36,825			33,073
Mortgage loan and other related fees		3,290		2,111		13,592			7,520
Brokerage fees		1,058		1,176		5,041			4,807
Gains from sales of government guaranteed loans		1,995		926		6,276			2,615
Securities gains, net		378		208		2,255			4,871
Loss from prepayment of debt		-		-		(1,294	)		(4,446	)
Other		3,063		1,956		9,834			7,114
Total fee revenue		21,284		14,823		72,529			55,554
Total revenue		94,748		70,957		326,252			269,935

Operating expenses:
Salaries and employee benefits		32,939		26,592		116,688			100,941
Communications and equipment		4,735		3,153		15,273			12,523
Occupancy		4,666		3,448		15,372			13,513
Advertising and public relations		978		802		3,667			3,461
Postage, printing and supplies		1,293		1,086		4,273			3,542
Professional fees		3,331		2,034		10,175			7,907
FDIC assessments and other regulatory charges		1,463		883		5,106			4,792
Merger-related and other charges		9,078		-		17,995			-
Other		7,005		3,921		22,689			16,186
Total operating expenses		65,488		41,919		211,238			162,865
Net income before income taxes		29,260		29,038		115,014			107,070
Income tax expense		11,052		10,791		43,436			39,450
Net income		18,208		18,247		71,578			67,620
Preferred stock dividends and discount accretion		25		-		67			439
Net income available to common shareholders	$	18,183	$	18,247	$	71,511		$	67,181

Earnings per common share:
Basic	$	.25	$	.30	$	1.09		$	1.11
Diluted		.25		.30		1.09			1.11
Weighted average common shares outstanding:
Basic		72,135		60,830		65,488			60,588
Diluted		72,140		60,833		65,492			60,590

UNITED COMMUNITY BANKS, INC.

Consolidated Balance Sheet (Unaudited)

	December 31,			December 31,
(in thousands, except share and per share data)	2015			2014

ASSETS
Cash and due from banks	$	86,912		$	77,180
Interest-bearing deposits in banks		153,451			89,074
Short-term investments		-			26,401
Cash and cash equivalents		240,363			192,655
Securities available for sale		2,291,511			1,782,734
Securities held to maturity (fair value $371,658 and $425,233)		364,696			415,267
Mortgage loans held for sale		24,231			13,737
Loans, net of unearned income		5,995,441			4,672,119
Less allowance for loan losses		(68,448	)		(71,619	)
Loans, net		5,926,993			4,600,500
Premises and equipment, net		178,165			159,390
Bank owned life insurance		105,493			81,294
Accrued interest receivable		25,786			20,103
Net deferred tax asset		197,613			215,503
Derivative financial instruments		20,082			20,599
Goodwill and other intangible assets		147,420			3,641
Other assets		103,755			61,563
Total assets	$	9,626,108		$	7,566,986
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand	$	2,204,755		$	1,574,317
NOW		1,975,884			1,504,887
Money market		1,599,637			1,273,283
Savings		471,129			292,308
Time:
Less than $100,000		830,301			748,478
Greater than $100,000		452,502			508,228
Brokered		346,881			425,011
Total deposits		7,881,089			6,326,512
Short-term borrowings		16,640			6,000
Federal Home Loan Bank advances		430,125			270,125
Long-term debt		165,620			129,865
Derivative financial instruments		28,825			31,997
Unsettled securities purchases		2			5,425
Accrued expenses and other liabilities		85,522			57,485
Total liabilities		8,607,823			6,827,409
Shareholders' equity:
Preferred stock, $1 par value; 10,000,000 shares authorized; Series H; $1,000 stated value; 9,992 and 0 shares issued and outstanding		9,992			-
Common stock, $1 par value; 100,000,000 shares authorized; 66,198,477 and 50,178,605 shares issued and outstanding		66,198			50,178
Common stock, non-voting, $1 par value; 26,000,000 shares authorized; 5,285,516 and 10,080,787 shares issued and outstanding		5,286			10,081
Common stock issuable; 458,953 and 357,983 shares		6,779			5,168
Capital surplus		1,286,361			1,080,508
Accumulated deficit		(330,879	)		(387,568	)
Accumulated other comprehensive loss		(25,452	)		(18,790	)
Total shareholders' equity		1,018,285			739,577
Total liabilities and shareholders' equity	$	9,626,108		$	7,566,986

UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended December 31,

	2015									2014
	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⁾	$	5,975,491		$	63,509			4.22	%	$	4,620,517		$	50,883		4.37	%
Taxable securities ⁽³⁾		2,575,846			14,763			2.29			2,202,986			12,195		2.21
Tax-exempt securities ⁽¹⁾⁽³⁾		30,748			309			4.02			18,579			295		6.35
Federal funds sold and other interest-earning assets		210,341			1,065			2.03			170,703			980		2.30

Total interest-earning assets		8,792,426			79,646			3.60			7,012,785			64,353		3.65
Non-interest-earning assets:
Allowance for loan losses		(69,743	)								(72,534	)
Cash and due from banks		88,057									73,973
Premises and equipment		192,040									160,049
Other assets ⁽³⁾		554,974									391,097
Total assets	$	9,557,754								$	7,565,370

Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,865,305			426			.09		$	1,481,414			435		.12
Money market		1,897,364			1,006			.21			1,433,680			868		.24
Savings		465,993			27			.02			291,163			20		.03
Time less than $100,000		848,469			617			.29			761,850			814		.42
Time greater than $100,000		469,301			390			.33			520,937			763		.58
Brokered time deposits		258,698			(85	)		(.13	)		273,706			46		.07
Total interest-bearing deposits		5,805,130			2,381			.16			4,762,750			2,946		.25

Federal funds purchased and other borrowings		40,148			85			.84			24,750			96		1.54
Federal Home Loan Bank advances		191,484			436			.90			193,549			339		.69
Long-term debt		165,620			2,696			6.46			129,865			2,640		8.07
Total borrowed funds		397,252			3,217			3.21			348,164			3,075		3.50

Total interest-bearing liabilities		6,202,382			5,598			.36			5,110,914			6,021		.47
Non-interest-bearing liabilities:
Non-interest-bearing deposits		2,223,011									1,620,635
Other liabilities		111,757									95,679
Total liabilities		8,537,150									6,827,228
Shareholders' equity		1,020,604									738,142
Total liabilities and shareholders' equity	$	9,557,754								$	7,565,370

Net interest revenue				$	74,048								$	58,332
Net interest-rate spread								3.24	%							3.18	%

Net interest margin ⁽⁴⁾								3.34	%							3.31	%

⁽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 $7.45 million in 2015 and pretax unrealized gains of $8.59 million in 2014 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 Twelve Months Ended December 31,

	2015									2014
	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⁾	$	5,297,687		$	223,713			4.22	%	$	4,450,268		$	197,039		4.43	%
Taxable securities ⁽³⁾		2,342,533			51,143			2.18			2,255,084			47,755		2.12
Tax-exempt securities ⁽¹⁾⁽³⁾		25,439			1,154			4.54			19,279			1,209		6.27
Federal funds sold and other interest-earning assets		168,494			3,799			2.25			155,803			3,966		2.55

Total interest-earning assets		7,834,153			279,809			3.57			6,880,434			249,969		3.63
Non-interest-earning assets:
Allowance for loan losses		(71,001	)								(75,237	)
Cash and due from banks		81,244									67,818
Premises and equipment		174,835									161,391
Other assets ⁽³⁾		442,878									401,240
Total assets	$	8,462,109								$	7,435,646

Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,563,911			1,505			.10		$	1,396,373			1,651		.12
Money market		1,678,765			3,466			.21			1,389,837			3,060		.22
Savings		372,414			98			.03			277,351			81		.03
Time less than $100,000		788,737			2,840			.36			811,846			3,636		.45
Time greater than $100,000		480,623			1,983			.41			551,027			3,373		.61
Brokered time deposits		269,162			(1,067	)		(.40	)		293,657			124		.04
Total interest-bearing deposits		5,153,612			8,825			.17			4,720,091			11,925		.25

Federal funds purchased and other borrowings		49,301			364			.74			74,541			2,160		2.90
Federal Home Loan Bank advances		250,404			1,743			.70			175,481			912		.52
Long-term debt		139,979			10,177			7.27			129,865			10,554		8.13
Total borrowed funds		439,684			12,284			2.79			379,887			13,626		3.59

Total interest-bearing liabilities		5,593,296			21,109			.38			5,099,978			25,551		.50
Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,901,521									1,507,944
Other liabilities		97,890									107,523
Total liabilities		7,592,707									6,715,445
Shareholders' equity		869,402									720,201
Total liabilities and shareholders' equity	$	8,462,109								$	7,435,646

Net interest revenue				$	258,700								$	224,418
Net interest-rate spread								3.19	%							3.13	%

Net interest margin ⁽⁴⁾								3.30	%							3.26	%

⁽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 $11.4 million in 2015 and pretax unrealized gains of $3.36 million in 2014 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.

Exhibit 99.2

ucbi.com | 1

ucbi.com | 2 ucbi.com | 2 Disclosures efficiency ratio, operating dividend payout ratio, core fee revenue, core operating expense, core earnings, tangible common equity to tangible assets, tangible equity to tangible assets and tangible common equity to risk - weighted assets . The most comparable GAAP measures to these measures are : net income, net income available to common shareholders, diluted income per common share, ROE, ROA, efficiency ratio, dividend payout ratio, fee revenue, operating expense, net income, and equity to assets . Management uses these non - GAAP financial measures because we believe they are useful for evaluating our operations and performance over periods of time, as well as in managing and evaluating our business and in discussions about our operations and performance . Management believes these non - GAAP financial measures provide users of our financial information with a meaningful measure for assessing our financial results and credit trends, as well as for comparison to financial results for prior periods . These non - GAAP financial measures should not be considered as a substitute for financial measures determined in accordance with GAAP and may not be comparable to other similarly titled financial measures used by other companies . For a reconciliation of the differences between our non - GAAP financial measures and the most comparable GAAP measures, please refer to the ‘Non - GAAP Reconcilement Tables’ at the end of this presentation . CAUTIONARY STATEMENT This investor presentation may contain forward - looking statements, as defined by federal securities laws, including statements about United’s financial outlook and business environment . These statements are based on current expectations and are provided to assist in the understanding of future financial performance . Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements . For a discussion of some of the risks and other factors that may cause such forward - looking statements to differ materially from actual results, please refer to United Community Banks, Inc . ’s filings with the Securities and Exchange Commission, including its 2014 Annual Report 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 - 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 : operating net income, operating net income available to common shareholders, operating diluted income per common share, operating ROE, operating ROA, operating

ucbi.com | 3 Fourth Quarter 2015 Highlights ucbi.com | 3 (in millions) 4Q15 3Q15 4Q14 Net Income ($ in millions) Operating (1) $ 23.8 $ 21.7 $ 18.2 GAAP 18.2 17.9 18.2 EPS Operating (1) .33 .33 .30 GAAP .25 .27 .30 ROA Operating (1) .99 1.00 .96 GAAP .76 .82 .96 ROTCE Operating (1) 10.87 10.29 9.74 ROCE GAAP 7.02 7.85 9.60 Improving Quarterly Results Net Interest Revenue ► $74.0 Million – Loan Growth and Margin Yields Positive Net Interest Revenue Results ● Increased $8.3 million (Palmetto - $7.0 million) from 3Q15 and $15.7 million from 4Q14 ● Average loans totaled $6.0 billion in 4Q15 up $518 million (9.5%) from 3Q15 and $1.6 billion (29.3%) from 4Q14 ● Margin increased to 3.34% vs. 3.26% in 3Q15 and 3.31% in 4Q14 o Loan yield of 4.22%, up 6 bps from 3Q15; taxable securities yield of 2.29%, up 16 bps from 3Q15 o Lower funding costs – down 2 bps from 3Q15 and down 11 bps from 4Q14 Core Fee Revenue ► $20.8 Million – Growing Fee Revenue ● Increased $2.3 million (Palmetto - $2.1 million) from 3Q15 and $6.2 million from 4Q14 ● Interchange fees of $5.4 million vs. $4.4 million in 3Q15 and $4.0 million in 4Q2014 ● Gain on sales of SBA loans of $2.0 million vs. $1.6 million in 3Q15 and $926 thousand in 4Q14 ● Mortgage revenue of $3.3 million vs. $3.8 million in 3Q15 and $2.1 million in 4Q14 ( 1) Excludes the effect of merger - related and other non - operating charges of $9.1 million in 4Q15 and $5.7 million in 3Q15 % % %

ucbi.com | 4 Fourth Quarter 2015 Highlights ucbi.com | 4 Improving Quarterly Results Loan Growth ► Growth in Many Sectors of the Portfolio ● Loan growth, excluding healthcare sale and acquisitions, of $162 million, or 11% annualized, from 3Q15 and $444 million year - to - date, or 10% ● Strong loan production of $590 million vs. $452 million in 3Q15 and $401 million in 4Q14 Core Transactio n Deposits ► $5.3 Billion – Growing Lower Cost Core Transaction Deposits (Excludes Time Deposits) ● Increased $524 million (14%) from 4Q14 (excluding acquisitions) ● Represents 70% of total customer deposits Credit Quality ► Outstanding Credit Performance ● Provision $300 thousand – decreased $400 thousand from 3Q15 and $1.5 million from 4Q14 ● Net charge - offs to loans of 9bps (or .09%) - decreased 1bp from 3Q15 and 13bp from 4Q14 ● NPAs were .29% of total assets vs. .29% in 3Q15 and .26% in 4Q14 ● Allowance 1.14% (1.35% excluding mergers) of total loans vs. 1.15% (1.37% excluding mergers) at 3Q15 and 1.53% at 4Q14 Capital Ratios ► Solid and Well - Capitalized (1) ● Quarterly dividend of 6 cents per share ● Tier I Common to Risk Weighted Assets of 11.5% and Tier I Leverage of 8.3% ● Tier I Risk Based Capital of 11.5% and Total Risk Based Capital of 12.5% Acquisitions ► Executing on Acquisitions and Integration in 2015 ● Closed merger with Palmetto Bancshares, Inc. (The Palmetto Bank: “Palmetto”) on Sept. 1 o Systems conversion for Palmetto scheduled for February 20, 2016 ● Closed merger with MoneyTree Corporation (First National Bank: “FNB”) on May 1 o Completed systems conversion for FNB in July (1) 4Q15 capital ratios are preliminary estimates

ucbi.com | 5 $58.3 $57.6 $61.3 $65.7 $74.0 $42.1 $42.2 $45.1 $48.8 $56.5 $30.8 $30.5 $33.4 $35.4 $38.3 $14.6 $15.1 $17.2 $18.4 $20.8 $10 $20 $30 $40 $50 $60 $70 $80 4Q14 1Q15 2Q15 3Q15 4Q15 Net Interest Revenue Core Operating Expenses Core Earnings Core Fee Revenue Trends Core Earnings, Fee Revenue, and Operating Expenses Core Earnings $38.3 Million Up $2.9 million from 3Q15 and Up $7.5 million from 4Q14 ucbi.com | 5 4Q15 3Q15 4Q14 Salaries & Employee Benefits 32,603$ 3,044$ 6,426$ Communications & Equipment 4,735 772 1,582 Occupancy 4,666 653 1,218 FDIC Assessment 1,463 327 580 Advertising & Public Relations 978 166 176 Postage, Printing & Supplies 1,293 244 207 Professional Fees 3,331 663 1,297 Other Expense 7,408 1,844 2,910 Core Operating Expenses 56,477 7,713 14,396 Non-Core Operating Expenses (1) 9,011 3,506 9,173 Reported - GAAP 65,488$ 11,219$ 23,569$ Variance - Incr/(Decr) 4Q15 3Q15 4Q14 Overdraft Fees 3,872$ 568$ 936$ Interchange Fees 5,445 1,081 1,468 Other Service Charges 2,183 516 650 Total Service Charges and Fees 11,500 2,165 3,054 Mortgage Loan & Related Fees 3,290 (550) 1,179 Brokerage Fees 1,058 (142) (118) Gains from SBA Loan Sales 1,995 349 1,069 Other 2,913 486 1,019 Core Fee Revenue 20,756 2,308 6,203 Non-Core Fee Revenue (1) 528 679 258 Reported - GAAP 21,284$ 2,987$ 6,461$ Variance - Incr/(Decr) 4Q15 3Q15 4Q14 Net Interest Revenue 74,048$ 8,330$ 15,716$ Core Fee Revenue 20,756 2,308 6,203 Gross Revenue 94,804 10,638 21,919 Core Operating Expenses 56,477 7,713 14,396 Core Earnings 38,327 2,925 7,523 Non-Core Fee Revenue (1) 528 679 258 Non-Core Operating Expenses (1) (9,011) (3,506) (9,173) Provision for credit losses (300) 400 1,500 Income taxes (11,336) (177) (147) Reported - GAAP 18,208$ 321$ (39)$ Net Interest Margin 3.34 % .08 % .03 % Variance - Incr/(Decr) $ in t housands $ in thousands (1) See Non - GAAP Reconciliation Tables slide at the conclusion of this presentation for a reconciliation of core disclosures to GA AP disclosures $ in thousands Core Operating Expenses Core Earnings (pre - tax, pre - credit) Core Fee Revenue M illions

ucbi.com | 6 $58.3 $57.6 $61.3 $65.7 $74.0 $35 $40 $45 $50 $55 $60 $65 $70 $75 4Q14 1Q15 2Q15 3Q15 4Q15 4.37% 4.16% 4.22% 2.21% 2.13% 2.29% .25% .17% .16% 0% 1% 2% 3% 4% 5% 4Q14 1Q15 2Q15 3Q15 4Q15 .16% .17% .16% .24% .22% .21% .12% .09% .09% .00% .05% .10% .15% .20% .25% .30% 4Q14 1Q15 2Q15 3Q15 4Q15 3.31% 3.31% 3.30% 3.26% 3.34% 3.00% 3.25% 3.50% Key Drivers of Net Interest Revenue / Margin ucbi.com | 6 Net Interest Revenue Key Drivers Net Interest Revenue & Margin Impacted By NET INTEREST REVENUE ► Full quarter impact of Palmetto’s loans and historically lower cost of deposits ► Current rising interest rate environment Millions Loan / Securities Pricing Customer Deposit Pricing (1) Loan Yields Investment Securities Yields - Taxable Average Rate on Interest Bearing Deposits ( 1) E xcludes brokered deposits CDs MMDA NOW

ucbi.com | 7 Balance Sheet Growth New Loans Funded and Advances (1) $ in millions ucbi.com | 7 4Q15 3Q15 4Q14 3Q15 4Q14 Atlanta 94.7$ 86.7$ 91.6$ 8.0$ 3.1$ Coastal Georgia 59.2 28.2 34.0 31.0 25.2 N. Georgia 61.0 58.1 54.9 2.9 6.1 North Carolina 27.6 28.2 33.1 (.6) (5.5) Tennessee 27.3 27.5 24.1 (.2) 3.2 Gainesville 21.5 11.7 14.3 9.8 7.2 South Carolina 68.3 16.1 9.0 52.2 59.3 Total Community Banks 359.6 256.5 261.0 103.1 98.6 Asset-based Lending 18.4 17.1 1.3 1.3 17.1 Commercial RE 47.5 57.5 17.0 (10.0) 30.5 Healthcare - 19.8 53.7 (19.8) (53.7) Middle Market 48.2 7.5 10.9 40.7 37.3 SBA 24.1 26.5 4.8 (2.4) 19.3 Builder Finance 19.2 21.4 - (2.2) 19.2 4Q15 3Q15 4Q14 3Q15 4Q14 Total Specialized Lending 157.4 149.8 87.7 7.6 69.7 Commercial & Industrial 160.5$ 94.8$ 116.0$ 65.7$ 44.5$ Owner Occupied CRE 84.4 51.4 56.0 33.0 28.4 Indirect Auto 73.0 45.7 52.4 27.3 20.6 Income Producing CRE 100.1 95.6 45.9 4.5 54.2 Total 590.0$ 452.0$ 401.1$ 138.0$ 188.9$ Commercial Constr. 16.3 8.3 6.0 8.0 10.3 Total Commercial 361.3 250.1 223.9 111.2 137.4 Residential Mortgage 34.7 41.4 32.7 (6.7) 2.0 Residential HELOC 41.6 44.5 36.9 (2.9) 4.7 Residential Construction 58.3 54.2 40.8 4.1 17.5 Consumer 94.1 61.8 66.8 32.3 27.3 Total 590.0$ 452.0$ 401.1$ 138.0$ 188.9$ Variance-Incr(Decr) Variance-Incr(Decr) (1) Represents new loans funded and net loan advances (net of payments on lines of credit) New Loans Funded and Advances $401.1 $422.8 $526.1 $452.0 $590.0 $350 $400 $450 $500 $550 $600 4Q14 1Q15 2Q15 3Q15 4Q15 New Loans Funded and Advances by Market New Loans Funded and Advances by Category

ucbi.com | 8 2011 2012 2013 2014 2015 North Georgia 1,426$ 1,364$ 1,240$ 1,163$ 1,125$ Atlanta MSA 1,144 1,204 1,235 1,243 1,259 North Carolina 597 579 572 553 549 Coastal Georgia 346 400 423 456 537 Gainesville MSA 265 261 255 257 254 East Tennessee 256 283 280 280 504 (1) South Carolina - - 4 30 819 (2) Total Community Banks 4,034 4,091 4,009 3,982 5,047 Specialized Lending 76 46 124 421 492 Indirect Auto - 38 196 269 456 (3) Total Loans 4,110$ 4,175$ 4,329$ 4,672$ 5,995$ Balance Sheet Growth Loan Mix $4.11 $4.18 $4.33 $4.67 $6.00 - $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 2011 2012 2013 2014 2015 Billions Commercial construction Income producing commercial real estate Owner occupied commercial real estate Commercial & industrial Indirect auto Residential HELOC Residential mortgage Residential construction Consumer installment Commercial Retail 2011 2012 2013 2014 2015 Commercial C & I 428$ 458$ 472$ 710$ 785$ Owner-Occupied CRE 1,112 1,131 1,134 1,163 1,494 Income-Producing CRE 710 682 623 599 824 Commercial Constr. 164 155 149 196 342 Total Commercial 2,414 2,426 2,378 2,668 3,445 Residential Mortgage 835 829 875 866 1,029 Residential HELOC 300 385 441 466 598 Residential Construction 448 382 328 299 352 Consumer 113 115 111 104 115 Indirect Auto - 38 196 269 456 Total Loans 4,110$ 4,175$ 4,329$ 4,672$ 5,995$ ucbi.com | 8 ( 1) Includes $244 million from the acquisition of FNB on May 1, 2015 (2) Includes $733 million from the acquisition of Palmetto on September 1, 2015 (3) Includes $62.6 million from the acquisition of Palmetto on September 1, 2015 Loans by Category i n millions Loans by Region i n millions

ucbi.com | 9 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Non-Interest Bearing Core Demand Deposit 185$ 232$ 123$ 161$ 618$ Demand Deposit 955$ 1,188$ 1,311$ 1,471$ 2,089$ NOW (84) (65) 4 9 441 MMDA 150 115 73 41 325 Interest Bearing Core Savings 15 29 24 41 177 Total CommercialNOW 719 654 659 668 1,109 Growth by Category 266$ 311$ 224$ 252$ 1,561$ MMDA 1,030 1,145 1,218 1,259 1,584 Savings 198 226 250 292 469 Atlanta MSA 102$ 160$ 75$ 84$ 223$ Total Interest Bearing Core 1,947 2,025 2,127 2,219 3,162 North Georgia 81 41 62 90 158 North Carolina 27 47 42 35 63 Total Core Deposits 2,902 3,213 3,438 3,690 5,251 Coastal Georgia 20 38 2 22 24 East Tennessee 21 9 4 8 234 Time (Customer) Gainesville MSA 15 16 19 10 34 (1) Less than $100,000 1,121 1,050 888 744 823 South Carolina - - 20 3 825 (2) Greater than $100,000 1,012 674 557 479 428 Growth by Region 266$ 311$ 224$ 252$ 1,561$ Total Time 2,133 1,724 1,445 1,223 1,251 Public Funds 884 770 894 989 1,032 Brokered 179 245 412 425 347 Total LoansTotal Deposits 6,098$ 5,952$ 6,189$ 6,327$ 7,881$ Balance Sheet Growth Customer Deposit Mix $5.92 $5.71 $5.78 $5.90 $7.53 - $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 2011 2012 2013 2014 2015 Billions Public funds Time (customer) Interest bearing core transaction Non-interest bearing core transaction Time & Public Core Transaction ucbi.com | 9 Deposits by Category i n millions Core Deposit Growth by Category & Region i n millions (1) Includes $ 247 million from the acquisition of FNB on May 1, 2015 (2) Includes $790 million from the acquisition of Palmetto on September 1, 2015

ucbi.com | 10 Credit Quality 4Q15 3Q15 2Q15 1Q15 4Q14 Net Charge-offs 1.3$ 1.4$ 1.0$ 2.6$ 2.5$ as % of Average Loans 0.09 % 0.10 % 0.08 % 0.22 % 0.22 % Allowance for Loan Losses 68.4$ 69.1$ 70.1$ 70.0$ 71.6$ as % of Total Loans 1.14 % 1.15% 1.36 % 1.46 % 1.53 % as % of Total Loans, Excluding Merger 1.35 1.37 1.42 as % of NPLs 302 344 373 368 401 Past Due Loans (30 - 89 Days) 0.26 % 0.27 % 0.24 % 0.25 % 0.31 % Non-Performing Loans 22.6$ 20.0$ 18.8$ 19.0$ 17.9$ OREO 4.9 7.7 2.4 1.2 1.7 Total NPAs 27.5 27.7 21.2 20.2 19.6 Performing Classified Loans 127.5 136.0 115.7 121.7 128.4 Total Classified Assets 155.0$ 163.7$ 136.9$ 141.9$ 148.0$ as % of Tier 1 / Allowance 17 % 18 % 18 % 20 % 20 % Accruing TDRs (see page 27) 83.0$ 84.6$ 86.1$ 82.3$ 81.3$ As % of Original Principal Balance Non-Performing Loans 71.4 % 70.3 % 64.9 % 72.0 % 69.9 % OREO 34.2 45.8 46.6 56.6 54.1 Total NPAs as % of Total Assets 0.29 0.29 0.26 0.26 0.26 as % of Loans & OREO 0.46 0.46 0.41 0.42 0.42 $ in millions ucbi.com | 10

ucbi.com | 11 Operating Earnings per Share and Operating Return on Assets $.30 $.29 $.32 $.33 $.33 $.18 $.20 $.22 $.24 $.26 $.28 $.30 $.32 $.34 4Q14 1Q15 2Q15 3Q15 4Q15 Operating Earnings per Share (1) .96% .94% 1.00% 1.00% .99% .00% .20% .40% .60% .80% 1.00% 1.20% 4Q14 1Q15 2Q15 3Q15 4Q15 Operating Return on Assets (1 ) ucbi.com | 11 (1) Excludes the effect of merger - related and other non - operating charges

ucbi.com | 12 Holding Company Well - Cap 4Q15 (2) 3Q15 2Q15 1Q15 4Q14 Tier I RBC 8.0% 11.5% 11.4% 11.9% 11.5% 12.1% Total RBC 10.0 12.5 12.5 13.1 12.8 13.3 Leverage 5.0 8.3 9.1 9.1 8.7 8.7 Tier I Common RBC 6.5 11.5 11.4 11.9 11.5 11.1 Tangible Common Equity to Assets 9.3 9.8 9.8 9.8 9.7 Tangible Equity to Assets 9.4 9.9 9.9 9.8 9.7 Bank Well - Cap 4Q15 (2) 3Q15 2Q15 1Q15 4Q14 Tier I RBC 8.0% 13.0 % 12.9 % 12.0 % 11.8% 12.9% Total RBC 10.0 14.1 14.0 13.2 13.1 14.1 Leverage 5.0 9.5 10.3 9.1 8.9 9.3 Capital Ratios (1) ucbi.com | 12 (1) Effective January 1, 2015, all regulatory ratios calculated under Basel III rules (2) 4Q15 capital ratios are preliminary estimates

ucbi.com | 13 2016 ► Continue to deepen commercial and retail capabilities ● Diversify portfolio – focus on: C&I; CRE owner occupied; Specialized Lending for corporate, asset - based, SBA and builder finance ● Invest in people with strong recruiting and training plans ● Grow loans in mid - to upper - single digits ► Improve retail and small business bank ● Grow sales with better / diversified product design, merchandising and campaign execution ● Improve our technology with a focus on making it easy for our customers to bank with us ● Increase core transaction deposits in the mid - single digits ► Grow net interest revenue through solid loan growth and slight margin expansion, if rates continue to rise ► Credit quality trends continue and costs increase slightly from current levels ► Grow fee revenue by investing in mortgage, advisory services, SBA capabilities and product pricing reviews ► Maintain operating efficiency below 58 percent ► Seek acquisition opportunities that fit our culture and risk and return targets Strategic Principles ucbi.com | 13 Leverage Our Strengths ► Community bank service with large bank resources ► Strong local leadership and senior management ► Combination of growing metro markets legacy markets with high deposit market sh ► Consistent and attractive culture ► Class leading customer satisfaction

ucbi.com | 14 United Acquisition of MoneyTree Corporation / FNB ucbi.com | 14 Data Source: SNL Financial and Company Documents; financial data as of 12/31/14 Founded: 1907 Headquarters: Lenoir City, TN Total Assets: $425 million Deposits: $354 million Consolidated TCE (1) : $39 million FY 2014 ROAA: .64% NPAs / Assets: .28% merged with MoneyTree Corporation (First National Bank) ▪ 107 year old community bank ▪ Doubles UCBI’s East Tennessee presence ▪ Increased presence in key markets of Knoxville, Lenoir City and Cleveland ▪ Meaningful cost synergies resulting from significant branch overlap – consolidated six branches 3Q15 ▪ 1 % EPS accretion in 2015; 3% in 2016 and 2017 ▪ Tangible book value dilution of < 1% and breakeven in < 3 years ▪ Nominal impact on UCBI’s capital ratios Deal Highlights Aggregate Deal Value: $52 million Price Per Share: $63.59 Price / 2014 EPS: 19.9x Price / TBV: 1.4x Consideration Mix: 80% Stock - 2.36 million shares issued 20% Cash - $10.7 million Pricing Summary (1 ) Including the conversion of the Series C Cumulative Convertible Preferred Stock Date Closed: May 1, 2015 Conversion Completed: July 2015

ucbi.com | 15 ▪ Continues Southeastern metro market expansion ▪ Accelerated Greenville expansion and leverages existing, on - the - ground, senior leadership and in - market resources ▪ High - quality franchise, founded 109 years ago, with deep community roots ▪ Shared community banking philosophy driven by client focus, local expertise, and cultural fit ▪ Strong core deposit base (.04% overall cost of deposits) ▪ Significant cost synergies enhance deal economics ▪ Low execution risk and attractive returns ▪ Double - digit EPS accretion in 2017, TBV earnback < 5 years, IRR > 20% United Acquisition of Palmetto Bancshares ucbi.com | 15 Founded: 1906 Headquarters: Greenville, SC Total Assets: $1,173 million Loans: $836 million Deposits: $967 million Tangible Common Eq. $136 million ROA: 1.0% ROE: 8.3% TCE / TA 11.6% merged with Palmetto Bancshares, Inc. Deal Highlights Data Source: SNL Financial and Company Documents; financial data as of Q1 - 2015 Aggregate Deal Value: $241 million Price Per Share: $18.53 Price / 2016 EPS: 19.5x Price / TBV: 1.8x Consideration Mix: 70% Stock - 8.70 million shares issued 30% Cash - $74.0 million Pricing Summary Date Closed: September 1, 2015 Planned Conversion: February 2016

ucbi.com | 16 4Q15 3Q15 2Q15 1Q15 4Q14 Net Income Operating net income 23,800$ 21,726$ 19,989$ 17,670$ 18,247$ Merger-related and other charges (9,078) (5,744) (3,173) - - Tax benefit on merger-related and other charges 3,486 1,905 997 - - Net Income (GAAP) 18,208$ 17,887$ 17,813$ 17,670$ 18,247$ Earnings per Share Operating earnings per share 0.33$ 0.33$ 0.32$ 0.29$ 0.30$ Merger-related and other charges (0.08) (0.06) (0.04) - - Earnings per share (GAAP) 0.25$ 0.27$ 0.28$ 0.29$ 0.30$ Return on Assets Operating return on assets 0.99 % 1.00 % 1.00 % 0.94 % 0.96 % Merger-related and other charges (0.23) (0.18) (0.11) - - Return on assets (GAAP) 0.76 % 0.82 % 0.89 % 0.94 % 0.96 % Return on Tangible Common Equity Operating return on tangible common equity 10.87 % 10.29 % 10.20 % 9.46 % 9.74 % Effect of goodwill and intangibles (1.69) (0.75) (0.30) (0.12) (0.14) Return on tangible common equity 9.18 9.54 9.90 9.34 9.60 Effect of merger-related charges (2.16) (1.69) (1.07) - - Return on common equity (GAAP) 7.02 % 7.85 % 8.83 % 9.34 % 9.60 % Allowance as a % of Loans, Excluding Acquired Loans Allowance as a % of loans, excluding acquired loans 1.35 % 1.37 % 1.42 % 1.46 % 1.53 % Allowance coverage of loans acquired through merger (0.21) (0.22) (0.06) - - Allowance as a % of loans (GAAP) 1.14 % 1.15 % 1.36 % 1.46 % 1.53 % Non - GAAP Reconciliation Tables $ in thousands ucbi.com | 16

ucbi.com | 17 4Q15 3Q15 2Q15 1Q15 4Q14 Core Fee Revenue Core fee revenue 20,756$ 18,448$ 17,220$ 15,120$ 14,553$ Securities gains, net 378 325 13 1,539 208 Losses on prepayment of borrowings - (256) - (1,038) - Mark to market on deferred compensation plan assets 150 (220) 33 61 62 Non-core fee revenue 528 (151) 46 562 270 Fee revenue (GAAP) 21,284$ 18,297$ 17,266$ 15,682$ 14,823$ Core Operating Expense Core operating expense 56,477$ 48,764$ 45,135$ 42,191$ 42,081$ Foreclosed property expense (103) (22) 60 96 131 Severance 186 3 19 23 353 Reversal of litigation reserve (300) - - - (1,200) Loss share settlements - - - 690 492 Merger-related charges 3,109 5,744 3,173 - - Impairment charge on real estate held for future use 5,969 - - - - Mark to market on deferred compensation plan liability 150 (220) 33 61 62 Non-core operating expenses 9,011 5,505 3,285 870 (162) Operating expense (GAAP) 65,488$ 54,269$ 48,420$ 43,061$ 41,919$ Non - GAAP Reconciliation Tables $ in thousands ucbi.com | 17

ucbi.com | 18 UNITED COMMUNITY BANKS, INC. FOURTH QUARTER 2015 EXHIBITS January 20, 2016 ucbi.com | 18

ucbi.com | 19 Current Footprint ucbi.com | 19 Key Statistics as of 12/31/15 ► Headquartered in Blairsville, Georgia ► Four state regional community bank: GA, NC, SC and TN ► 134 Locations ► Founded in 1950 ► Largest community bank headquartered in Georgia and one of the largest in the Southeast ► 1,932 employees ► $9.6 billion in assets; $6.0 billion in loans; $7.9 billion in deposits

ucbi.com | 20 Business and Operating Model Local CEOs with deep roots in their communities Resources of a $9.6 billion bank Operate in demographically attractive markets Organic growth supported by de novos and selective acquisitions Twenty - Nine “community banks” Strategic footprint with substantial banking opportunities Disciplined growth strategy Service is Point of Differentiation ► #1 in customer satisfaction according to Customer Service Profiles, the banking industry’s leader in customer research and improvement ► #1 in Southeast in customer satisfaction by national research company ► Golden rule of banking – treating people the way we want to be treated ► One of the Top 100 “Best Banks in America” as ranked by Forbes “Community Bank Service, Large Bank Resources” ucbi.com | 20

ucbi.com | 21 Experienced Proven Leadership Jimmy C. Tallent Chairman & CEO Joined 1984 H. Lynn Harton Board, President & COO Joined 2012 Bill M. Gilbert President, Community Banking Joined 2000 Bradley J. Miller EVP, CRO & General Counsel Joined 2007 • Over 40 years in banking • Led company from $42 million in assets in 1989 to $9.6 billion today • Trustee of Young Harris College • Georgia Power Company Board Member • GA Economic Developers Association Spirit of Georgia Award recipient • Over 30 years in banking • Responsible for overall banking, credit and operations • Former Consultant and Special Assistant to the CEO and EVP of Commercial Banking for TD Bank Financial Group; and President & CEO of The South Financial Group • Over 35 years in banking • Responsible for accounting, finance and reporting activities, M&A and investor relations • Former CAO and Controller for State Street Corporation • Former ABA Accounting Committee Chairman • Over 35 years in banking • Responsible for 29 community banks with 127 branch offices • Formerly of Riegel Textile Credit Union; President of Farmers and Merchants Bank • Former Georgia Board of Natural Resources Board Chairman • Over 20 years of experience in consumer and banking law • Responsible for legal , enterprise r isk m anagement , and compliance • Chairman of the Georgia Bankers Association Bank Counsel Section • Member of the American Bankers Association Regional General Counsels Robert A. Edwards EVP & CCO Joined 2015 Richard W. Bradshaw President, Specialized Lending Joined 2014 • Over 24 years in lending • Responsible for specialized lending • Former SBA head: TD Bank and Carolina First’s SBA programs; President of UPS Capital Business Credit • Highly decorated Commander in the U.S. Naval Reserve Intelligence Program (retired) • Over 25 years in banking • Responsible for credit risk including credit underwriting, policy and special assets • Former EVP & Executive Credit Officer for TD Bank, NA and Chief Credit Officer of The South Financial Group. ucbi.com | 21 Rex S. Schuette EVP & CFO Joined 2001

ucbi.com | 22 Market Share Opportunities ucbi.com | 22 (1) (2) (3) (1) (1) North Georgia $ 6.6 $ 2.2 9 22 37% 1 Atlanta, Georgia 60.8 2.4 10 36 4 6 Gainesville, Georgia 3.0 .3 1 5 12 4 Coastal Georgia 8.0 .3 2 7 3 9 Western North Carolina 11.8 1.0 1 19 8 4 East Tennessee 16.3 .6 2 12 4 5 Upstate South Carolina 21.0 1.1 4 26 5 7 Total Markets $ 127.5 $ 7.9 29 127 Market Deposits United Deposits Deposit Share Excellent Growth Opportunities Banks Offices Rank (1) FDIC deposit market share and rank as of June 30, 2015 for markets where United takes deposits. Data Source: FDIC. (2) Based on current quarter. (3) Excludes seven loan production offices $ in billions

ucbi.com | 23 Market Share Demographics ucbi.com | 23 3.35% 4.23% 4.96% 5.70% 6.38% 6.49% 6.91% 0% 1% 2% 3% 4% 5% 6% 7% 8% Knoxville, TN Cleveland, TN Asheville, NC Greenville, SC Atlanta, GA Gainesville, GA Savannah, GA Key MSA Growth Markets Projected Change 2016 - 2021 3.69% 3.82% 4.84% 4.93% 5.40% 0% 1% 2% 3% 4% 5% 6% United States Tennessee Georgia North Carolina South Carolina State Population Growth Projected Change 2016 – 2021 Source: SNL Financial

ucbi.com | 24 Liquidity ucbi.com | 24 Capacity 4Q15 3Q15 4Q14 vs 3Q15 vs 4Q14 WHOLESALE BORROWINGS Brokered Deposits (1) 615$ 347$ 517$ 425$ (170)$ (78)$ FHLB 550 430 200 270 230 160 Holding Company LOC 40 - - - - - Fed Funds 515 - 5 - (5) - Other Wholesale - 17 14 6 3 11 Total 1,720$ 794$ 736$ 701$ 58$ 93$ LONG-TERM DEBT Senior Debt 160$ 160$ 75$ -$ 85$ Trust Preferred Securities 6 6 55 - (49) Total Long-Term Debt 166$ 166$ 130$ -$ 36$ Cash 50$ 54$ 32$ (4)$ 18$ Loans / Deposits Loans 5,995$ 6,022$ 4,672$ (27)$ 1,323$ Core (DDA, MMDA, Savings) 5,251$ 5,246$ 3,690$ 5$ 1,561$ Public Funds 1,032 831 989 201 43 CD's 1,251 1,311 1,223 (60) 28 Total Deposits (excl Brokered) 7,534$ 7,388$ 5,902$ 146$ 1,632$ Loan to Deposit Ratio 80% 82% 79% Investment Securities Available for Sale -Fixed 1,608$ 1,435$ 1,114$ 173$ 494$ -Floating 683 665 669 18 14 Held to Maturity -Fixed 361 354 410 7 (49) -Floating 4 4 5 - (1) Total Investment Securities 2,656$ 2,458$ 2,198$ 198$ 458$ Floating as % of Total Securities 26% 27% 31% Wholesale Borrowings Holding Company Long - Term Debt / Cash Investment Securities (1) Estimated brokered deposit total capacity at 10% of assets $ in millions Loans / Deposits

ucbi.com | 25 Lending & Credit Environment ucbi.com | 25 $ in millions Regional Credit Review – Standard Underwriting • Legal Lending Limit $ 242 • House Lending Limit 28 • Project Lending Limit 17 • Top 25 Relationships 395 STRUCTURE • Centralized underwriting and approval process • Segregated work - out teams • Highly skilled ORE disposition group • Seasoned regional credit professionals PROCESS • Continuous external loan review • Internal loan review of new credit relationships • Intensive executive management involvement POLICY • Ongoing enhancements to credit policy • Quarterly updates to portfolio limits and concentrations (quarterly review with Board of Directors) • Centralized underwriting and approval process • Segregated work - out teams • Highly skilled ORE disposition group • Seasoned regional credit professionals • Weekly senior credit meetings • Bi - weekly NPA/ORE and past due meetings • Quarterly criticized watch loan review meetings Proactively Addressing Credit Environment

ucbi.com | 26 Performing Classified Loans ucbi.com | 26 By Category $ in millions 4Q14 1Q15 2Q15 3Q15 4Q15 Commercial & Industrial 8$ 7$ 6$ 6$ 6$ Owner-Occupied CRE 46 44 40 42 40 Total Commercial & Industrial 54 51 46 48 46 Income-Producing CRE 20 20 19 30 30 Commercial Construction 4 3 3 3 1 Total Commercial 78 74 68 81 77 Residential Mortgage 32 30 30 36 31 Residential HELOC 5 6 6 7 7 Residential Construction 11 10 10 10 11 Consumer / Installment 2 2 2 2 2 Total Performing Classified 128$ 122$ 116$ 136$ 128$ Classified to Tier 1 + ALL 20% 20% 18% 18% 17% $128 $122 $116 $136 $128 $110 $130 $150 4Q14 1Q15 2Q15 3Q15 4Q15

ucbi.com | 27 $81.3 $82.3 $86.1 $84.6 $83.0 $75 $80 $85 $90 $95 $100 4Q14 1Q15 2Q15 3Q15 4Q15 TDRs ucbi.com | 27 $ in millions LOAN TYPE 4Q15(1) 3Q15 4Q14 4Q15 3Q15 4Q14 4Q15 3Q15 4Q14 Commercial & Industrial 2.8$ 3.5$ 25.3$ 0.1$ -$ 1.0$ 2.9$ 3.5$ 26.3$ Owner-Occupied CRE 30.8 31.6 17.4 1.3 1.2 0.5 32.1 32.8 17.9 Income-Producing CRE 15.4 14.1 2.7 .2 .3 .1 15.6 14.4 2.8 Commercial Construction 10.5 11.2 11.3 .1 .1 - 10.6 11.3 11.3 Total Commercial 59.5 60.4 56.7 1.7 1.6 1.6 61.2 62.0 58.3 Residential Mortgage 17.2 17.3 16.0 1.6 2.1 1.8 18.8 19.4 17.8 Residential HELOC .2 .5 .5 - - - 0.2 0.5 0.5 Residential Construction 5.2 5.7 7.9 .1 .3 .4 5.3 6.0 8.3 Consumer / Installment .9 .7 .2 .2 .1 - 1.1 0.8 0.2 Total TDRs 83.0$ 84.6$ 81.3$ 3.6$ 4.1$ 3.8$ 86.6$ 88.7$ 85.1$ Accruing Non-Accruing Total TDRs Accruing TDRs ► Accruing TDR past due 30 – 89 days = .51% ► 60% of accruing TDRs are pass credits (1) 66% of accruing TDR loans have an interest rate of 4% or greater

ucbi.com | 28 Lending & Credit Environment ucbi.com | 28 Outstanding Multi-Residential 84$ 24.6 % Land Develop - Vacant (Improved) 56 16.4 Retail Building 49 14.3 Commercial Land Development 32 9.3 Raw Land - Vacant (Unimproved) 31 9.1 Other Properties 30 8.8 Hotels / Motels 26 7.6 Warehouse 15 4.4 Restaurants / Franchise 10 2.9 Office Buildings 8 2.3 Assisted Living/Nursing Home/Rehab 1 0.3 Total Commercial Construction 342$ 100.0 % % of Category Commercial Real Estate Mix i n millions Commercial Construction Mix i n millions Owner- Occupied Income- Producing Total Office Buildings 375$ 208$ 583$ 25.2 % Retail Building 121 226 347 15.0 Other Properties 199 38 237 10.2 Warehouse 150 74 224 9.7 Churches 176 - 176 7.6 Convenience Stores 90 47 137 5.9 Hotels / Motels - 86 86 3.7 Manufacturing Facility 66 17 83 3.6 Restaurants / Franchise Fast Food 53 26 79 3.4 Multi-Residential - 67 67 2.9 Assisted Living / Nursing Home 62 5 67 2.9 Farmland 62 - 62 2.7 Golf Course / Country Club 40 - 40 1.7 Leasehold Property 16 8 24 1.0 Carwash 22 - 22 0.9 Automotive Service 13 7 20 0.9 Automotive Dealership 16 3 19 0.8 Daycare Facility 10 6 16 0.7 Funeral Home 15 - 15 0.6 Mobile Home Parks - 6 6 0.3 Marina 5 - 5 0.2 Movie Theaters / Bowling / Rec 3 - 3 0.1 Total Commercial Real Estate 1,494$ 824$ 2,318$ 100.0 % Outstanding % of Category Average Loan Size (in thousands) • Commercial Construction $577 • Commercial RE: • Composite CRE 461 • Owner - Occupied 410 • Income - Producing 594 Commercial RE Characteristics • 64% owner occupied • Small business, doctors, dentists, attorneys, CPAs • $17 million project limit