UNITED COMMUNITY BANKS INC.

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United Community Banks, Inc. Announces Fourth Quarter Earnings

Diluted earnings per share up 52 percent, to 38 cents, from fourth quarter 2015

Excluding merger-related and other non-operating charges, diluted operating EPS up 21 percent, to 40 cents

Return on assets of 1.03 percent, or 1.10 percent excluding merger-related and other charges
Loan growth of $196 million from the third quarter, or 12 percent annualized
Core transaction deposits up $62.4 million from the third quarter, or 4 percent annualized
Efficiency ratio of 57.7 percent, or 56.6 percent excluding merger-related and other charges

BLAIRSVILLE, Ga., Jan. 25, 2017 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ:UCBI) (“United”) today announced strong fourth quarter results with solid loan growth, effective expense management, sound credit quality and improvement in nearly every other performance measure. Net income grew to $27.2 million, or 38 cents per diluted share, compared with $18.2 million, or 25 cents per diluted share, for the fourth quarter of 2015. Net income for the full year of 2016 was $100.7 million, or $1.40 per diluted share. This compares with $71.6 million, or $1.09 per diluted share, for 2015.

On an operating basis, net income rose to $28.9 million for the fourth quarter of 2016 compared with $23.8 million for the fourth quarter of 2015. Fourth quarter 2016 operating net income excludes pre-tax merger-related charges of $1.14 million and the associated tax benefit of $432,000, as well as a tax charge of $976,000 related to the cancellation of nonqualified stock options.

Fourth quarter 2015 operating net income excludes $3.11 million in pre-tax merger-related charges and $5.97 million in pre-tax charges for impairment on properties acquired for future expansion. The tax benefit on the fourth quarter 2015 charges was $3.49 million. On a per diluted share basis, operating net income was 40 cents for the fourth quarter of 2016 compared with 33 cents for the fourth quarter of 2015. For the full year of 2016, operating net income was $106.7 million, or $1.48 per diluted share, compared with $83.1 million, or $1.27 per diluted share, for 2015.

At December 31, 2016, preliminary regulatory capital ratios were as follows: Tier 1 Risk-Based of 11.3 percent; Total Risk-Based of 12.1 percent; Common Equity Tier 1 Risk-Based of 11.3 percent; and, Tier 1 Leverage of 8.5 percent.

“Our fourth quarter results mark a solid ending to an exceptional year for United Community Banks,” said Jimmy Tallent, chairman and chief executive officer. “Our bankers continue to make progress in improving our financial performance. A year ago we set a goal of achieving a 1.10 percent operating return on assets by the fourth quarter of 2016. We knew that achieving this goal would not be easy, but we also knew our determined bankers and how they react to a challenge. I am proud to say that in the fourth quarter, not only did they achieve that goal, but they also pushed our operating return on tangible common equity to 12.5 percent and improved our operating efficiency ratio to 56.6 percent. I could not be more pleased.” Operating performance measures exclude the charges mentioned above. Including those charges, return on assets was 1.03 percent, return on common equity was 9.89 percent and the efficiency ratio was 57.7 percent.

“In the fourth quarter we completed all systems conversions for Tidelands Bank, and we have achieved all expected cost savings from that acquisition,” Tallent said. “We are proud that Tidelands is now fully integrated with United Community Bank, operating under our brand in coastal South Carolina.

“Fourth quarter loan production was $747 million,” Tallent added. “Linked-quarter loan growth of $196 million, or 12 percent annualized, was slightly above our 2016 loan growth target of mid-to-upper single-digit. Our community banks originated $490 million in loans while specialized lending produced $216 million. United’s specialized lending area encompasses commercial real estate, middle market, SBA, asset-based lending, senior living and builder finance.”

Fourth quarter net interest revenue totaled $80.9 million, up $1.9 million from the third quarter and up $7.2 million from the fourth quarter of 2015. The increase from both periods reflects loan growth, and the increase from a year ago also includes net interest revenue from recent acquisitions.

The taxable-equivalent net interest margin of 3.34 percent remained the same as in the third quarter of 2016 and the fourth quarter of 2015. The effect of rising short-term interest rates and lower wholesale borrowings offset the impact of competitive loan pricing.

No provision for credit losses was required for the fourth quarter. This compares with a provision recovery of $300,000 in the third quarter, and a provision of $300,000 in the fourth quarter of 2015. Fourth quarter net charge-offs totaled $1.5 million, compared with $1.4 million in the third quarter and $1.3 million in the fourth quarter of 2015. Contributing to the low level of net charge-offs were continued strong recoveries of previously charged-off loans. Nonperforming assets were .28 percent of total assets at December 31, 2016, compared with .30 percent at September 30, 2016 and .29 percent at December 31, 2015.

“Our lack of need for a provision for loan losses reflects continued strong credit quality and a low overall level of net charge-offs,” Tallent commented. “Our credit quality indicators remain favorable and our outlook is for positive credit quality and low provision levels through 2017. We expect to gradually increase provision levels with loan growth during the year, which is expected to slightly decrease our allowance and the related ratio to total loans.”

Fourth quarter fee revenue totaled $25.2 million, a decrease of $1.13 million from the third quarter and up $3.95 million from a year ago. Mortgage fees were up $477,000 from the third quarter, and $3.23 million from a year ago. Gains from sales of SBA loans were up $549,000 from the third quarter, and up $1.03 million from a year ago due to continued growth in SBA lending. Offsetting the mortgage and SBA business growth from the third quarter of 2016 were decreases in merchant services and brokerage fees, and in deposit account fees and service charges. Customer derivative fees were also down from the record level achieved in the third quarter.

“The rise in mortgage fees reflects our strategic investment in additional mortgage lenders where we see opportunities to gain market share and higher spreads on loan sales,” Tallent said. “Also, our SBA lending business remains a top priority. In the fourth quarter we sold $41 million in loans compared with $32 million in the third quarter and $25 million in the fourth quarter of 2015.”

Operating expenses were $61.3 million for the fourth quarter, compared with $64.0 million for the third quarter and $65.5 million for the fourth quarter of 2015. Included in operating expenses are merger-related and impairment charges of $1.14 million in the fourth quarter, $3.15 million in the third quarter and $9.08 million in the fourth quarter of 2015. Excluding these charges, fourth quarter operating expenses were $60.2 million compared with $60.9 million for the third quarter, and $56.4 million a year ago.

The decrease in operating expenses from the third quarter is mostly in salaries and employee benefits costs and a decrease in professional fees. The increase from a year ago reflects the additional operating expenses of Tidelands Bank following its acquisition on July 1, 2016. United’s financial results include operating expenses of acquired companies beginning on their respective acquisition dates. The benefit of higher revenue and the lower level of fourth quarter expenses compared to the third quarter also improved the operating efficiency ratio to 56.6 percent, compared to 57.8 percent in the third quarter and 59.4 percent a year ago.

Tallent concluded, “I am very proud of our bankers and the exceptional results they achieved in 2016. They steadily improved financial performance while providing the best in customer service, which is the foundation of our success and the core of everything we do. With our strong earnings momentum, a high-quality balance sheet and strategic investments in our franchise, I look forward with optimism going into 2017.”

Conference Call
United will hold a conference call today, Wednesday, January 25, 2017, at 11 a.m. ET to discuss the contents of this earnings release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 47644518. 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. (NASDAQ:UCBI) is a registered bank holding company based in Blairsville, Georgia with $10.7 billion in assets. The company’s banking subsidiary, United Community Bank, is one of the southeast region’s largest full-service banks, operating 139 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in providing personalized community banking services to individuals, small businesses and corporations. Services include a full range of consumer and commercial banking products including mortgage, advisory, and treasury management. Respected national research firms consistently recognize United Community Bank for outstanding customer service: In 2014, 2015 and 2016, J.D. Power ranked United Community Bank first in customer satisfaction in the Southeast. In 2017, for the fourth consecutive year, Forbes included United among their list of the top 100 Best Banks in America. Additional information about the company and the bank’s full range of products and services can be found at www.ucbi.com.

Non-GAAP Financial Measures
This News Release contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as “operating net income,” “operating net income per diluted share,” “tangible book value,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “operating dividend payout ratio,” “operating efficiency ratio,” “average tangible equity to average assets,” “average tangible common equity to average assets” and “tangible common equity to risk-weighted assets.” These non-GAAP measures are included because United believes they may provide useful supplemental information for evaluating United’s underlying performance trends. These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included with the accompanying financial statement tables.

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 2015 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
		2016																2015			Quarter
	Fourth				Third				Second				First				Fourth				2016-2015
(in thousands, except per share data)	Quarter				Quarter				Quarter				Quarter				Quarter				Change
INCOME SUMMARY
Interest revenue	$	87,778			$	85,439			$	81,082			$	80,721			$	79,362
Interest expense		6,853				6,450				6,164				5,769				5,598
Net interest revenue		80,925				78,989				74,918				74,952				73,764			10		%
Provision for credit losses		-				(300	)			(300	)			(200	)			300
Fee revenue		25,233				26,361				23,497				18,606				21,284			19
Total revenue		106,158				105,650				98,715				93,758				94,748			12
Expenses		61,321				64,023				58,060				57,885				65,488			(6	)
Income before income tax expense		44,837				41,627				40,655				35,873				29,260			53
Income tax expense		17,616				15,753				15,389				13,578				11,052			59
Net income		27,221				25,874				25,266				22,295				18,208			50
Preferred dividends		-				-				-				21				25
Net income available to common shareholders	$	27,221			$	25,874			$	25,266			$	22,274			$	18,183			50
Merger-related and other charges		1,141				3,152				1,176				2,653				9,078
Income tax benefit of merger-related and other charges		(432	)			(1,193	)			(445	)			(1,004	)			(3,486	)
Impairment of deferred tax asset on cancelled non- qualified stock options		976				-				-				-				-
Net income available to common shareholders - operating ⁽¹⁾	$	28,906			$	27,833			$	25,997			$	23,923			$	23,775			22

PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP	$	.38			$	.36			$	.35			$	.31			$	.25			52
Diluted net income - operating ⁽¹⁾		.40				.39				.36				.33				.33			21
Cash dividends declared		.08				.08				.07				.07				.06
Book value		15.06				15.12				14.80				14.35				14.02			7
Tangible book value⁽³⁾		12.95				13.00				12.84				12.40				12.06			7

Key performance ratios:
Return on common equity - GAAP⁽²⁾⁽⁴⁾		9.89		%		9.61		%		9.54		%		8.57		%		7.02		%
Return on common equity - operating^(1)(2)(4)		10.51				10.34				9.81				9.20				9.18
Return on tangible common equity - operating^(1)(2)(³⁾⁽⁴⁾		12.47				12.45				11.56				10.91				10.87
Return on assets - GAAP⁽⁴⁾		1.03				1.00				1.04				.93				.76
Return on assets - operating⁽¹⁾⁽⁴⁾		1.10				1.08				1.07				1.00				.99
Dividend payout ratio - GAAP		21.05				22.22				20.00				22.58				24.00
Dividend payout ratio - operating ⁽¹⁾		20.00				20.51				19.44				21.21				18.18
Net interest margin (fully taxable equivalent)⁽⁴⁾		3.34				3.34				3.35				3.41				3.34
Efficiency ratio - GAAP		57.65				60.78				59.02				61.94				68.97
Efficiency ratio - operating ⁽¹⁾		56.58				57.79				57.82				59.10				59.41
Average equity to average assets		10.35				10.38				10.72				10.72				10.68
Average tangible equity to average assets⁽³⁾		9.04				8.98				9.43				9.41				9.40
Average tangible common equity to average assets⁽³⁾		9.04				8.98				9.43				9.32				9.29
Tangible common equity to risk-weighted assets⁽³⁾⁽⁵⁾		11.89				12.22				12.87				12.77				12.82

ASSET QUALITY
Nonperforming loans	$	21,539			$	21,572			$	21,348			$	22,419			$	22,653			(5	)
Foreclosed properties		7,949				9,187				6,176				5,163				4,883			63
Total nonperforming assets (NPAs)		29,488				30,759				27,524				27,582				27,536			7
Allowance for loan losses		61,422				62,961				64,253				66,310				68,448			(10	)
Net charge-offs		1,539				1,359				1,730				2,138				1,302			18
Allowance for loan losses to loans		.89		%		.94		%		1.02		%		1.09		%		1.14		%
Net charge-offs to average loans⁽⁴⁾		.09				.08				.11				.14				.09
NPAs to loans and foreclosed properties		.43				.46				.44				.45				.46
NPAs to total assets		.28				.30				.28				.28				.29

AVERAGE BALANCES ($ in millions)
Loans	$	6,814			$	6,675			$	6,151			$	6,004			$	5,975			14
Investment securities		2,690				2,610				2,747				2,718				2,607			3
Earning assets		9,665				9,443				9,037				8,876				8,792			10
Total assets		10,484				10,281				9,809				9,634				9,558			10
Deposits		8,552				8,307				7,897				7,947				8,028			7
Shareholders’ equity		1,085				1,067				1,051				1,033				1,021			6
Common shares - basic (thousands)		71,641				71,556				72,202				72,162				72,135			(1	)
Common shares - diluted (thousands)		71,648				71,561				72,207				72,166				72,140			(1	)

AT PERIOD END ($ in millions)
Loans	$	6,921			$	6,725			$	6,287			$	6,106			$	5,995			15
Investment securities		2,762				2,560				2,677				2,757				2,656			4
Total assets		10,709				10,298				9,928				9,781				9,616			11
Deposits		8,638				8,442				7,857				7,960				7,873			10
Shareholders’ equity		1,076				1,079				1,060				1,034				1,018			6
Common shares outstanding (thousands)		70,899				70,861				71,122				71,544				71,484			(1	)

⁽¹⁾ Excludes merger-related charges, a fourth quarter 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options and fourth quarter 2015 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⁾ Fourth quarter 2016 ratio is preliminary.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information

	For the Twelve
	Months Ended								YTD
	December 31,								2016-2015
(in thousands, except per share data)		2016				2015			Change
INCOME SUMMARY
Interest revenue	$	335,020			$	278,532
Interest expense		25,236				21,109
Net interest revenue		309,784				257,423			20		%
Provision for credit losses		(800	)			3,700
Fee revenue		93,697				72,529			29
Total revenue		404,281				326,252			24
Expenses		241,289				211,238			14
Income before income tax expense		162,992				115,014			42
Income tax expense		62,336				43,436			44
Net income		100,656				71,578			41
Preferred dividends		21				67
Net income available to common shareholders	$	100,635			$	71,511			41
Merger-related and other charges		8,122				17,995
Income tax benefit of merger-related and other charges		(3,074	)			(6,388	)
Impairment of deferred tax asset on cancelled non- qualified stock options		976				-
Net income available to common shareholders - operating ⁽¹⁾	$	106,659			$	83,118			28

PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP	$	1.40			$	1.09			28
Diluted net income - operating ⁽¹⁾		1.48				1.27			17
Cash dividends declared		.30				.22
Book value		15.06				14.02			7
Tangible book value⁽³⁾		12.95				12.06			7

Key performance ratios:
Return on common equity - GAAP⁽²⁾⁽⁴⁾		9.41		%		8.15		%
Return on common equity - operating^(1)(2)(4)		9.98				9.48
Return on tangible common equity - operating^(1)(2)(3)(4)		11.86				10.24
Return on assets - GAAP⁽⁴⁾		1.00				.85
Return on assets - operating⁽¹⁾⁽⁴⁾		1.06				.98
Dividend payout ratio - GAAP		21.43				20.18
Dividend payout ratio - operating ⁽¹⁾		20.27				17.32
Net interest margin (fully taxable equivalent)⁽⁴⁾		3.36				3.30
Efficiency ratio - GAAP		59.80				63.96
Efficiency ratio - operating ⁽¹⁾		57.78				58.51
Average equity to average assets		10.54				10.27
Average tangible equity to average assets⁽³⁾		9.21				9.74
Average tangible common equity to average assets⁽³⁾		9.19				9.66
Tangible common equity to risk-weighted assets⁽³⁾⁽⁵⁾		11.89				12.82

ASSET QUALITY
Nonperforming loans	$	21,539			$	22,653			(5	)
Foreclosed properties		7,949				4,883			63
Total nonperforming assets (NPAs)		29,488				27,536			7
Allowance for loan losses		61,422				68,448			(10	)
Net charge-offs		6,766				6,259			8
Allowance for loan losses to loans		.89		%		1.14		%
Net charge-offs to average loans⁽⁴⁾		.11				.12
NPAs to loans and foreclosed properties		.43				.46
NPAs to total assets		.28				.29

AVERAGE BALANCES ($ in millions)
Loans	$	6,413			$	5,298			21
Investment securities		2,691				2,368			14
Earning assets		9,257				7,834			18
Total assets		10,054				8,462			19
Deposits		8,177				7,055			16
Shareholders’ equity		1,059				869			22
Common shares - basic (thousands)		71,910				65,488			10
Common shares - diluted (thousands)		71,915				65,492			10

AT PERIOD END ($ in millions)
Loans	$	6,921			$	5,995			15
Investment securities		2,762				2,656			4
Total assets		10,709				9,616			11
Deposits		8,638				7,873			10
Shareholders’ equity		1,076				1,018			6
Common shares outstanding (thousands)		70,899				71,484			(1	)

⁽¹⁾ Excludes merger-related charges, a fourth quarter 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options and fourth quarter 2015 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⁾ Fourth quarter 2016 ratio is preliminary.

UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Years Ended December 31,

(in thousands, except per share data)		2016				2015				2014			2013				2012
INCOME SUMMARY
Interest revenue	$	335,020			$	278,532			$	248,432		$	245,840			$	265,977
Interest expense		25,236				21,109				25,551			27,682				37,909
Net interest revenue		309,784				257,423				222,881			218,158				228,068
Provision for credit losses		(800	)			3,700				8,500			65,500				62,500
Fee revenue		93,697				72,529				55,554			56,598				56,112
Total revenue		404,281				326,252				269,935			209,256				221,680
Expenses		241,289				211,238				162,865			174,304				186,774
Income before income tax expense		162,992				115,014				107,070			34,952				34,906
Income tax expense (benefit)		62,336				43,436				39,450			(238,188	)			1,050
Net income		100,656				71,578				67,620			273,140				33,856
Preferred dividends		21				67				439			12,078				12,148
Net income available to common shareholders	$	100,635			$	71,511			$	67,181		$	261,062			$	21,708
Merger-related and other charges		8,122				17,995				-			-				-
Income tax benefit of merger-related and other charges		(3,074	)			(6,388	)			-			-				-
Impairment of deferred tax asset on cancelled non-qualified stock options		976				-				-			-				-
Net income available to common shareholders - operating ⁽¹⁾	$	106,659			$	83,118			$	67,181		$	261,062			$	21,708

PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP	$	1.40			$	1.09			$	1.11		$	4.44			$ .38
Diluted net income - operating ⁽¹⁾		1.48				1.27				1.11			4.44			.38
Cash dividends declared		.30				.22				.11			-				-
Book value		15.06				14.02				12.20			11.30				6.67
Tangible book value⁽³⁾		12.95				12.06				12.15			11.26				6.57

Key performance ratios:
Return on common equity - GAAP⁽²⁾		9.41		%		8.15		%		9.17	%		46.72		%		5.43	%
Return on common equity - operating⁽¹⁾⁽²⁾		9.98				9.48				9.17			46.72				5.43
Return on tangible common equity - operating^(1)(2)(3)		11.86				10.24				9.32			47.35				6.27
Return on assets - GAAP		1.00				.85				.91			3.86				.49
Return on assets - operating⁽¹⁾		1.06				.98				.91			3.86				.49
Dividend payout ratio - GAAP		21.43				20.18				9.91			-				-
Dividend payout ratio - operating ⁽¹⁾		20.27				17.32				9.91			-				-
Net interest margin (fully taxable equivalent)		3.36				3.30				3.26			3.30				3.51
Efficiency ratio - GAAP		59.80				63.96				58.26			63.14				65.43
Efficiency ratio - operating ⁽¹⁾		57.78				58.51				58.26			63.14				65.43
Average equity to average assets		10.54				10.27				9.69			10.35				8.47
Average tangible equity to average assets⁽³⁾		9.21				9.74				9.67			10.31				8.38
Average tangible common equity to average assets⁽³⁾		9.19				9.66				9.60			7.55				5.54
Tangible common equity to risk-weighted assets⁽³⁾⁽⁴⁾		11.89				12.82				13.82			13.17				8.26

ASSET QUALITY
Nonperforming loans	$	21,539			$	22,653			$	17,881		$	26,819			$	109,894
Foreclosed properties		7,949				4,883				1,726			4,221				18,264
Total nonperforming assets (NPAs)		29,488				27,536				19,607			31,040				128,158
Allowance for loan losses		61,422				68,448				71,619			76,762				107,137
Net charge-offs		6,766				6,259				13,879			93,710				69,831
Allowance for loan losses to loans		.89		%		1.14		%		1.53	%		1.77		%		2.57	%
Net charge-offs to average loans		.11				.12				.31			2.22				1.69
NPAs to loans and foreclosed properties		.43				.46				.42			.72				3.06
NPAs to total assets		.28				.29				.26			.42				1.88

AVERAGE BALANCES ($ in millions)
Loans	$	6,413			$	5,298			$	4,450		$	4,254			$	4,166
Investment securities		2,691				2,368				2,274			2,190				2,089
Earning assets		9,257				7,834				6,880			6,649				6,547
Total assets		10,054				8,462				7,436			7,074				6,865
Deposits		8,177				7,055				6,228			6,027				5,885
Shareholders’ equity		1,059				869				720			732				582
Common shares - basic (thousands)		71,910				65,488				60,588			58,787				57,857
Common shares - diluted (thousands)		71,915				65,492				60,590			58,845				57,857

AT PERIOD END ($ in millions)
Loans	$	6,921			$	5,995			$	4,672		$	4,329			$	4,175
Investment securities		2,762				2,656				2,198			2,312				2,079
Total assets		10,709				9,616				7,558			7,424				6,801
Deposits		8,638				7,873				6,335			6,202				5,952
Shareholders’ equity		1,076				1,018				740			796				581
Common shares outstanding (thousands)		70,899				71,484				60,259			59,432				57,741

⁽¹⁾ Excludes merger-related charges, a 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options and 2015 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⁾ 2016 ratio is preliminary.

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information


		2016																2015
	Fourth				Third				Second				First				Fourth
(in thousands, except per share data)	Quarter				Quarter				Quarter				Quarter				Quarter

Expense reconciliation
Expenses (GAAP)	$	61,321			$	64,023			$	58,060			$	57,885			$	65,488
Merger-related and other charges		(1,141	)			(3,152	)			(1,176	)			(2,653	)			(9,078	)
Expenses - operating	$	60,180			$	60,871			$	56,884			$	55,232			$	56,410

Net income reconciliation
Net income (GAAP)	$	27,221			$	25,874			$	25,266			$	22,295			$	18,208
Merger-related and other charges		1,141				3,152				1,176				2,653				9,078
Income tax benefit of merger-related and other charges		(432	)			(1,193	)			(445	)			(1,004	)			(3,486	)
Impairment of deferred tax asset on cancelled non-qualified stock options		976				-				-				-				-
Net income - operating	$	28,906			$	27,833			$	25,997			$	23,944			$	23,800

Net income available to common shareholders reconciliation
Net income available to common shareholders (GAAP)	$	27,221			$	25,874			$	25,266			$	22,274			$	18,183
Merger-related and other charges		1,141				3,152				1,176				2,653				9,078
Income tax benefit of merger-related and other charges		(432	)			(1,193	)			(445	)			(1,004	)			(3,486	)
Impairment of deferred tax asset on cancelled non-qualified stock options		976				-				-				-				-
Net income available to common shareholders - operating	$	28,906			$	27,833			$	25,997			$	23,923			$	23,775

Diluted income per common share reconciliation
Diluted income per common share (GAAP)		$ .38			$	.36			$	.35			$	.31			$	.25
Merger-related and other charges		.01				.03				.01				.02				.08
Impairment of deferred tax asset on cancelled non-qualified stock options		.01				-				-				-				-
Diluted income per common share - operating	$	.40			$	.39			$	.36			$	.33			$	.33

Book value per common share reconciliation
Book value per common share (GAAP)	$	15.06			$	15.12			$	14.80			$	14.35			$	14.02
Effect of goodwill and other intangibles		(2.11	)			(2.12	)			(1.96	)			(1.95	)			(1.96	)
Tangible book value per common share	$	12.95			$	13.00			$	12.84			$	12.40			$	12.06

Return on tangible common equity reconciliation
Return on common equity (GAAP)		9.89		%		9.61		%		9.54		%		8.57		%		7.02		%
Merger-related and other charges		.26				.73				.27				.63				2.16
Impairment of deferred tax asset on cancelled non-qualified stock options		.36				-				-				-				-
Return on common equity - operating		10.51				10.34				9.81				9.20				9.18
Effect of goodwill and other intangibles		1.96				2.11				1.75				1.71				1.69
Return on tangible common equity - operating		12.47		%		12.45		%		11.56		%		10.91		%		10.87		%

Return on assets reconciliation
Return on assets (GAAP)		1.03		%		1.00		%		1.04		%		.93		%		.76		%
Merger-related and other charges		.03				.08				.03				.07				.23
Impairment of deferred tax asset on cancelled non-qualified stock options		.04				-				-				-				-
Return on assets - operating		1.10		%		1.08		%		1.07		%		1.00		%		.99		%

Dividend payout ratio reconciliation
Dividend payout ratio (GAAP)		21.05		%		22.22		%		20.00		%		22.58		%		24.00		%
Merger-related and other charges		(.54	)			(1.71	)			(.56	)			(1.37	)			(5.82	)
Impairment of deferred tax asset on cancelled non-qualified stock options		(.51	)			-				-				-				-
Dividend payout ratio - operating		20.00		%		20.51		%		19.44		%		21.21		%		18.18		%

Efficiency ratio reconciliation
Efficiency ratio (GAAP)		57.65		%		60.78		%		59.02		%		61.94		%		68.97		%
Merger-related and other charges		(1.07	)			(2.99	)			(1.20	)			(2.84	)			(9.56	)
Efficiency ratio - operating		56.58		%		57.79		%		57.82		%		59.10		%		59.41		%

Average equity to assets reconciliation
Equity to assets (GAAP)		10.35		%		10.38		%		10.72		%		10.72		%		10.68		%
Effect of goodwill and other intangibles		(1.31	)			(1.40	)			(1.29	)			(1.31	)			(1.28	)
Tangible equity to assets		9.04				8.98				9.43				9.41				9.40
Effect of preferred equity		-				-				-				(.09	)			(.11	)
Tangible common equity to assets		9.04		%		8.98		%		9.43		%		9.32		%		9.29		%

Tangible common equity to risk-weighted assets reconciliation ⁽¹⁾
Tier 1 capital ratio (Regulatory)		11.27		%		11.04		%		11.44		%		11.32		%		11.45		%
Effect of other comprehensive income		(.34	)			-				(.06	)			(.25	)			(.38	)
Effect of deferred tax limitation		1.27				1.50				1.63				1.85				2.05
Effect of trust preferred		(.25	)			(.26	)			(.08	)			(.08	)			(.08	)
Effect of preferred equity		-				-				-				-				(.15	)
Basel III intangibles transition adjustment		(.06	)			(.06	)			(.06	)			(.07	)			(.10	)
Basel III disallowed investments		-				-				-				-				.03
Tangible common equity to risk-weighted assets		11.89		%		12.22		%		12.87		%		12.77		%		12.82		%

⁽¹⁾ Fourth quarter 2016 ratios are preliminary.

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information


	For the Twelve Months Ended December 31,
	For the Twelve Months Ended December 31,
(in thousands, except per share data)		2016				2015				2014				2013				2012

Expense reconciliation
Expenses (GAAP)	$	241,289			$	211,238			$	162,865			$	174,304			$	186,774
Merger-related and other charges		(8,122	)			(17,995	)			-				-				-
Expenses - operating	$	233,167			$	193,243			$	162,865			$	174,304			$	186,774

Net income reconciliation
Net income (GAAP)	$	100,656			$	71,578			$	67,620			$	273,140			$	33,856
Merger-related and other charges		8,122				17,995				-				-				-
Income tax benefit of merger-related and other charges		(3,074	)			(6,388	)			-				-				-
Impairment of deferred tax asset on cancelled non-qualified stock options		976				-				-				-				-
Net income - operating	$	106,680			$	83,185			$	67,620			$	273,140			$	33,856

Net income available to common shareholders reconciliation
Net income available to common shareholders (GAAP)	$	100,635			$	71,511			$	67,181			$	261,062			$	21,708
Merger-related and other charges		8,122				17,995				-				-				-
Income tax benefit of merger-related and other charges		(3,074	)			(6,388	)			-				-				-
Impairment of deferred tax asset on cancelled non-qualified stock options		976				-				-				-				-
Net income available to common shareholders - operating	$	106,659			$	83,118			$	67,181			$	261,062			$	21,708

Diluted income per common share reconciliation
Diluted income per common share (GAAP)	$	1.40			$	1.09			$	1.11			$	4.44			$	.38
Merger-related and other charges		.07				.18				-				-				-
Impairment of deferred tax asset on cancelled non-qualified stock options		.01				-				-				-				-
Diluted income per common share - operating	$	1.48			$	1.27			$	1.11			$	4.44			$	.38

Book value per common share reconciliation
Book value per common share (GAAP)	$	15.06			$	14.02			$	12.20			$	11.30			$	6.67
Effect of goodwill and other intangibles		(2.11	)			(1.96	)			(.05	)			(.04	)			(.10	)
Tangible book value per common share	$	12.95			$	12.06			$	12.15			$	11.26			$	6.57

Return on tangible common equity reconciliation
Return on common equity (GAAP)		9.41		%		8.15		%		9.17		%		46.72		%		5.43		%
Merger-related and other charges		.48				1.33				-				-				-
Impairment of deferred tax asset on cancelled non-qualified stock options		.09				-				-				-				-
Return on common equity - operating		9.98				9.48				9.17				46.72				5.43
Effect of goodwill and other intangibles		1.88				.76				.15				.63				.84
Return on tangible common equity - operating		11.86		%		10.24		%		9.32		%		47.35		%		6.27		%

Return on assets reconciliation
Return on assets (GAAP)		1.00		%		.85		%		.91		%		3.86		%		.49		%
Merger-related and other charges		.05				.13				-				-				-
Impairment of deferred tax asset on cancelled non-qualified stock options		.01
Return on assets - operating		1.06		%		.98		%		.91		%		3.86		%		.49		%

Dividend payout ratio reconciliation
Dividend payout ratio (GAAP)		21.43		%		20.18		%		9.91		%		-		%		-		%
Merger-related and other charges		(1.02	)			(2.86	)			-				-				-
Impairment of deferred tax asset on cancelled non-qualified stock options		(.14	)			-				-				-				-
Dividend payout ratio - operating		20.27		%		17.32		%		9.91		%		-		%		-		%

Efficiency ratio reconciliation
Efficiency ratio (GAAP)		59.80		%		63.96		%		58.26		%		63.14		%		65.43		%
Merger-related and other charges		(2.02	)			(5.45	)			-				-				-
Efficiency ratio - operating		57.78		%		58.51		%		58.26		%		63.14		%		65.43		%

Average equity to assets reconciliation
Equity to assets (GAAP)		10.54		%		10.27		%		9.69		%		10.35		%		8.47		%
Effect of goodwill and other intangibles		(1.33	)			(.53	)			(.02	)			(.04	)			(.09	)
Tangible equity to assets		9.21				9.74				9.67				10.31				8.38
Effect of preferred equity		(.02	)			(.08	)			(.07	)			(2.76	)			(2.84	)
Tangible common equity to assets		9.19		%		9.66		%		9.60		%		7.55		%		5.54		%

Tangible common equity to risk-weighted assets reconciliation ⁽¹⁾
Tier 1 capital ratio (Regulatory)		11.27		%		11.45		%		12.06		%		12.74		%		14.16		%
Effect of other comprehensive income		(.34	)			(.38	)			(.35	)			(.39	)			(.51	)
Effect of deferred tax limitation		1.27				2.05				3.11				4.26				-
Effect of trust preferred		(.25	)			(.08	)			(1.00	)			(1.04	)			(1.15	)
Effect of preferred equity		-				(.15	)			-				(2.39	)			(4.24	)
Basel III intangibles transition adjustment		(.06	)			(.10	)			-				-				-
Basel III disallowed investments		-				.03				-				-				-
Tangible common equity to risk-weighted assets		11.89		%		12.82		%		13.82		%		13.18		%		8.26		%

⁽¹⁾ Fourth quarter 2016 ratios are preliminary.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End


		2016								2015
	Fourth		Third		Second		First		Fourth
(in millions)	Quarter		Quarter ⁽¹⁾		Quarter ⁽¹⁾		Quarter ⁽¹⁾		Quarter ⁽¹⁾
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,650	$	1,587	$	1,527	$	1,509	$	1,571
Income producing commercial RE		1,282		1,277		1,101		1,071		1,021
Commercial & industrial		1,070		994		925		854		785
Commercial construction		634		567		565		535		518
Total commercial		4,636		4,425		4,118		3,969		3,895
Residential mortgage		857		814		784		774		764
Home equity lines of credit		655		693		616		597		589
Residential construction		190		200		170		167		176
Consumer installment		583		593		599		599		571
Total loans	$	6,921	$	6,725	$	6,287	$	6,106	$	5,995

LOANS BY MARKET
North Georgia	$	1,097	$	1,110	$	1,097	$	1,097	$	1,125
Atlanta MSA		1,399		1,332		1,314		1,257		1,259
North Carolina		545		548		543		543		549
Coastal Georgia		581		565		541		543		537
Gainesville MSA		248		236		240		248		254
East Tennessee		504		506		509		495		504
South Carolina		1,233		1,199		862		821		819
Specialized Lending		855		763		706		628		492
Indirect auto		459		466		475		474		456
Total loans	$	6,921	$	6,725	$	6,287	$	6,106	$	5,995

⁽¹⁾ Certain prior period amounts have been reclassified to conform to the current presentation.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End


		2016				2015	Linked Quarter Change			Year over Year Change
	Fourth		Third		Fourth
(in millions)	Quarter		Quarter ⁽¹⁾		Quarter ⁽¹⁾
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,650	$	1,587	$	1,571	$	63		$	79
Income producing commercial RE		1,282		1,277		1,021		5			261
Commercial & industrial		1,070		994		785		76			285
Commercial construction		634		567		518		67			116
Total commercial		4,636		4,425		3,895		211			741
Residential mortgage		857		814		764		43			93
Home equity lines of credit		655		693		589		(38	)		66
Residential construction		190		200		176		(10	)		14
Consumer installment		583		593		571		(10	)		12
Total loans	$	6,921	$	6,725	$	5,995		196			926

LOANS BY MARKET
North Georgia	$	1,097	$	1,110	$	1,125		(13	)		(28	)
Atlanta MSA		1,399		1,332		1,259		67			140
North Carolina		545		548		549		(3	)		(4	)
Coastal Georgia		581		565		537		16			44
Gainesville MSA		248		236		254		12			(6	)
East Tennessee		504		506		504		(2	)		-
South Carolina		1,233		1,199		819		34			414
Specialized Lending		855		763		492		92			363
Indirect auto		459		466		456		(7	)		3
Total loans	$	6,921	$	6,725	$	5,995		196			926

⁽¹⁾ Certain prior period amounts have been reclassified to conform to the current presentation.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Year-End


(in millions)		2016	2015 ⁽¹⁾		2014⁽¹⁾		2013⁽¹⁾		2012⁽¹⁾
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,650	$	1,571	$	1,257	$	1,238	$	1,254
Income producing commercial RE		1,282		1,021		767		807		891
Commercial & industrial		1,070		785		710		471		456
Commercial construction		634		518		364		336		407
Total commercial		4,636		3,895		3,098		2,852		3,008
Residential mortgage		857		764		614		604		517
Home equity lines of credit		655		589		456		430		375
Residential construction		190		176		131		136		122
Consumer installment		583		571		373		307		153
Total loans	$	6,921	$	5,995	$	4,672	$	4,329	$	4,175


LOANS BY MARKET
North Georgia	$	1,097	$	1,125	$	1,163	$	1,240	$	1,364
Atlanta MSA		1,399		1,259		1,243		1,235		1,204
North Carolina		545		549		553		572		579
Coastal Georgia		581		537		456		423		400
Gainesville MSA		248		254		257		255		261
East Tennessee		504		504		280		280		283
South Carolina		1,233		819		30		4		-
Specialized Lending		855		492		421		124		46
Indirect auto		459		456		269		196		38
Total loans	$	6,921	$	5,995	$	4,672	$	4,329	$	4,175


⁽¹⁾ Certain prior period amounts have been reclassified to conform to the current presentation.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality


	Fourth Quarter 2016
	Nonperforming			Foreclosed			Total
(in thousands)	Loans			Properties			NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE	$	7,373		$	3,145		$	10,518
Income producing CRE		1,324			36			1,360
Commercial & industrial		966			-			966
Commercial construction		1,538			2,977			4,515
Total commercial		11,201			6,158			17,359
Residential mortgage		6,368			1,260			7,628
Home equity lines of credit		1,831			531			2,362
Residential construction		776			-			776
Consumer installment		1,363			-			1,363
Total NPAs	$	21,539		$	7,949		$	29,488

NONPERFORMING ASSETS BY MARKET
North Georgia	$	5,278		$	856		$	6,134
Atlanta MSA		1,259			716			1,975
North Carolina		4,750			632			5,382
Coastal Georgia		1,778			-			1,778
Gainesville MSA		279			-			279
East Tennessee		2,354			675			3,029
South Carolina		2,494			5,070			7,564
Specialized Lending		2,072			-			2,072
Indirect auto		1,275			-			1,275
Total NPAs	$	21,539		$	7,949		$	29,488


NONPERFORMING ASSETS ACTIVITY
Beginning Balance	$	21,572		$	9,187		$	30,759
Acquisitions		-			-			-
Loans placed on non-accrual		6,346			-			6,346
Payments received		(3,832	)		-			(3,832	)
Loan charge-offs		(1,293	)		-			(1,293	)
Foreclosures		(1,254	)		1,530			276
Capitalized costs		-			26			26
Property sales		-			(2,737	)		(2,737	)
Write downs		-			(254	)		(254	)
Net gains (losses) on sales		-			197			197
Ending Balance	$	21,539		$	7,949		$	29,488


⁽¹⁾ Annualized. ⁽²⁾ Certain prior period amounts have been reclassified to conform to the current presentation.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality


	Third Quarter 2016 ⁽²⁾
	Nonperforming			Foreclosed			Total
(in thousands)	Loans			Properties			NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE	$	7,693		$	3,188		$	10,881
Income producing CRE		2,422			765			3,187
Commercial & industrial		1,079			-			1,079
Commercial construction		1,977			1,274			3,251
Total commercial		13,171			5,227			18,398
Residential mortgage		5,440			1,211			6,651
Home equity lines of credit		1,194			514			1,708
Residential construction		369			2,235			2,604
Consumer installment		1,398			-			1,398
Total NPAs	$	21,572		$	9,187		$	30,759

NONPERFORMING ASSETS BY MARKET
North Georgia	$	5,356		$	653		$	6,009
Atlanta MSA		979			1,530			2,509
North Carolina		5,216			543			5,759
Coastal Georgia		1,606			47			1,653
Gainesville MSA		222			-			222
East Tennessee		3,281			160			3,441
South Carolina		2,015			6,254			8,269
Specialized Lending		1,597			-			1,597
Indirect auto		1,300			-			1,300
Total NPAs	$	21,572		$	9,187		$	30,759


NONPERFORMING ASSETS ACTIVITY
Beginning Balance	$	21,348		$	6,176		$	27,524
Acquisitions		-			7,495			7,495
Loans placed on non-accrual		6,680			-			6,680
Payments received		(3,938	)		-			(3,938	)
Loan charge-offs		(1,236	)		-			(1,236	)
Foreclosures		(1,282	)		2,335			1,053
Capitalized costs		-			3			3
Property sales		-			(6,553	)		(6,553	)
Write downs		-			(53	)		(53	)
Net gains (losses) on sales		-			(216	)		(216	)
Ending Balance	$	21,572		$	9,187		$	30,759


⁽¹⁾ Annualized. ⁽²⁾ Certain prior period amounts have been reclassified to conform to the current presentation.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality


	Second Quarter 2016 ⁽²⁾
	Nonperforming			Foreclosed			Total
(in thousands)	Loans			Properties			NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE	$	8,218		$	3,096		$	11,314
Income producing CRE		2,511			1,554			4,065
Commercial & industrial		949			-			949
Commercial construction		1,398			-			1,398
Total commercial		13,076			4,650			17,726
Residential mortgage		5,636			1,160			6,796
Home equity lines of credit		1,308			83			1,391
Residential construction		379			283			662
Consumer installment		949			-			949
Total NPAs	$	21,348		$	6,176		$	27,524

NONPERFORMING ASSETS BY MARKET
North Georgia	$	6,219		$	1,086		$	7,305
Atlanta MSA		1,140			2,041			3,181
North Carolina		4,762			224			4,986
Coastal Georgia		1,186			168			1,354
Gainesville MSA		234			-			234
East Tennessee		3,616			247			3,863
South Carolina		1,271			2,410			3,681
Specialized Lending		2,108			-			2,108
Indirect auto		812			-			812
Total NPAs	$	21,348		$	6,176		$	27,524


NONPERFORMING ASSETS ACTIVITY
Beginning Balance	$	22,419		$	5,163		$	27,582
Acquisitions		-			(497	)		(497	)
Loans placed on non-accrual		6,786			-			6,786
Payments received		(4,201	)		-			(4,201	)
Loan charge-offs		(1,803	)		-			(1,803	)
Foreclosures		(1,853	)		2,722			869
Capitalized costs		-			98			98
Property sales		-			(1,424	)		(1,424	)
Write downs		-			(73	)		(73	)
Net gains (losses) on sales		-			187			187
Ending Balance	$	21,348		$	6,176		$	27,524


⁽¹⁾ Annualized. ⁽²⁾ Certain prior period amounts have been reclassified to conform to the current presentation.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality

	Fourth Quarter 2016					Third Quarter 2016⁽²⁾					Second Quarter 2016 ⁽²⁾
				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	$	1		-	%	$	46		.01	%	$	800		.21	%
Income producing CRE		527		.16			70		.02			81		.03
Commercial & industrial		(201	)	(.08)			453		.18			(392	)	(.18)
Commercial construction		241		.16			(194	)	(.13)			(196	)	(.14)
Total commercial		568		.05			375		.03			293		.03
Residential mortgage		322		.15			(47	)	(.02)			489		.25
Home equity lines of credit		151		.09			267		.16			253		.17
Residential construction		(16	)	(.03)			242		.51			210		.51
Consumer installment		514		.35			522		.34			485		.33
Total	$	1,539		.09		$	1,359		.08		$	1,730		.11


NET CHARGE-OFFS BY MARKET
North Georgia	$	575		.21	%	$	68		.02	%	$	428		.16	%
Atlanta MSA		12		-			398		.12			1		-
North Carolina		714		.52			329		.24			575		.43
Coastal Georgia		118		.08			432		.31			177		.13
Gainesville MSA		(32	)	(.05)			15		.03			(87	)	(.14)
East Tennessee		(139	)	(.11)			(69	)	(.05)			346		.28
South Carolina		(2	)	-			(66	)	(.02)			49		.02
Specialized Lending		(21	)	(.01)			69		.04			(18	)	(.01)
Indirect auto		314		.27			183		.15			259		.22
Total	$	1,539		.09		$	1,359		.08		$	1,730		.11

⁽¹⁾ Annualized. ⁽²⁾ Certain prior period amounts have been reclassified to conform to the current presentation.

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)		2016		2015		2016			2015

Interest revenue:
Loans, including fees	$	71,494	$	63,442	$	268,382		$	223,256
Investment securities, including tax exempt of $165, $189, $614 and $705		15,988		14,952		64,027			51,848
Deposits in banks and short-term investments		296		968		2,611			3,428
Total interest revenue		87,778		79,362		335,020			278,532

Interest expense:
Deposits:
NOW		522		426		1,903			1,505
Money market		1,321		1,006		4,982			3,466
Savings		33		27		135			98
Time		1,084		922		3,136			3,756
Total deposit interest expense		2,960		2,381		10,156			8,825
Short-term borrowings		121		85		399			364
Federal Home Loan Bank advances		945		436		3,676			1,743
Long-term debt		2,827		2,696		11,005			10,177
Total interest expense		6,853		5,598		25,236			21,109
Net interest revenue		80,925		73,764		309,784			257,423
Provision for credit losses		-		300		(800	)		3,700
Net interest revenue after provision for credit losses		80,925		73,464		310,584			253,723

Fee revenue:
Service charges and fees		10,653		11,500		42,113			36,825
Mortgage loan and other related fees		6,516		3,290		20,292			13,592
Brokerage fees		911		1,058		4,280			5,041
Gains from sales of government guaranteed loans		3,028		1,995		9,545			6,276
Securities gains, net		60		378		982			2,255
Loss from prepayment of debt		-		-		-			(1,294	)
Other		4,065		3,063		16,485			9,834
Total fee revenue		25,233		21,284		93,697			72,529
Total revenue		106,158		94,748		404,281			326,252

Operating expenses:
Salaries and employee benefits		35,677		32,939		138,789			116,688
Communications and equipment		4,753		4,735		18,355			15,273
Occupancy		5,210		4,666		19,603			15,372
Advertising and public relations		1,151		978		4,426			3,667
Postage, printing and supplies		1,353		1,293		5,382			4,273
Professional fees		2,773		3,331		11,822			10,175
FDIC assessments and other regulatory charges		1,413		1,463		5,866			5,106
Amortization of intangibles		1,066		1,041		4,182			2,444
Merger-related and other charges		1,141		9,078		8,122			17,995
Other		6,784		5,964		24,742			20,245
Total operating expenses		61,321		65,488		241,289			211,238
Net income before income taxes		44,837		29,260		162,992			115,014
Income tax expense		17,616		11,052		62,336			43,436
Net income		27,221		18,208		100,656			71,578
Preferred stock dividends and discount accretion		-		25		21			67
Net income available to common shareholders	$	27,221	$	18,183	$	100,635		$	71,511

Earnings per common share:
Basic	$ .38		$ .25		$	1.40		$	1.09
Diluted	.38		.25			1.40			1.09
Weighted average common shares outstanding:
Basic		71,641		72,135		71,910			65,488
Diluted		71,648		72,440		71,915			65,492

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet (Unaudited)

	December 31,			December 31,
(in thousands, except share and per share data)		2016			2015

ASSETS
Cash and due from banks	$	99,489		$	86,912
Interest-bearing deposits in banks		117,859			153,451
Cash and cash equivalents		217,348			240,363
Securities available for sale		2,432,438			2,291,511
Securities held to maturity (fair value $333,170 and $371,658)		329,843			364,696
Mortgage loans held for sale (includes $27,891 and $0 at fair value)		29,878			24,231
Loans, net of unearned income		6,920,636			5,995,441
Less allowance for loan losses		(61,422	)		(68,448	)
Loans, net		6,859,214			5,926,993
Premises and equipment, net		189,938			178,165
Bank owned life insurance		143,543			105,493
Accrued interest receivable		28,018			25,786
Net deferred tax asset		154,336			197,613
Derivative financial instruments		23,688			20,082
Goodwill and other intangible assets		156,222			147,420
Other assets		144,189			94,075
Total assets	$	10,708,655		$	9,616,428
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand	$	2,637,004		$	2,204,755
NOW		1,989,763			1,975,884
Money market		1,846,440			1,599,637
Savings		549,713			471,129
Time		1,287,142			1,282,803
Brokered		327,496			338,985
Total deposits		8,637,558			7,873,193
Short-term borrowings		5,000			16,640
Federal Home Loan Bank advances		709,209			430,125
Long-term debt		175,078			163,836
Derivative financial instruments		27,648			28,825
Accrued expenses and other liabilities		78,427			85,524
Total liabilities		9,632,920			8,598,143
Shareholders' equity:
Preferred stock, $1 par value; 10,000,000 shares authorized;
Series H; $1,000 stated value; 0 and 9,992 shares issued and outstanding		-			9,992
Common stock, $1 par value; 150,000,000 shares authorized;
70,899,114 and 66,198,477 shares issued and outstanding		70,899			66,198
Common stock, non-voting, $1 par value; 26,000,000 shares authorized;
0 and 5,285,516 shares issued and outstanding		-			5,286
Common stock issuable; 519,874 and 458,953 shares		7,327			6,779
Capital surplus		1,275,849			1,286,361
Accumulated deficit		(251,857	)		(330,879	)
Accumulated other comprehensive loss		(26,483	)		(25,452	)
Total shareholders' equity		1,075,735			1,018,285
Total liabilities and shareholders' equity	$	10,708,655		$	9,616,428

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 31,

						2016								2015
	Average						Avg.		Average							Avg.
(dollars in thousands, fully taxable equivalent (FTE))	Balance				Interest		Rate		Balance				Interest			Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (FTE) ⁽¹⁾⁽²⁾	$	6,814,114			$	71,522	4.18	%	$	5,975,491			$	63,509		4.22	%
Taxable securities ⁽³⁾		2,664,395				15,823	2.38			2,575,846				14,763		2.29
Tax-exempt securities (FTE) ⁽¹⁾⁽³⁾		25,735				270	4.20			30,748				309		4.02
Federal funds sold and other interest-earning assets		160,391				430	1.07			210,341				1,065		2.03

Total interest-earning assets (FTE)		9,664,635				88,045	3.63			8,792,426				79,646		3.60
Non-interest-earning assets:
Allowance for loan losses		(62,767	)							(69,743	)
Cash and due from banks		101,006								88,057
Premises and equipment		189,719								192,040
Other assets ⁽³⁾		591,491								554,974
Total assets	$	10,484,084							$	9,557,754

Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,920,124				522	.11		$	1,865,305				426		.09
Money market		2,058,589				1,321	.26			1,897,364				1,006		.21
Savings		544,490				33	.02			465,993				27		.02
Time		1,317,794				813	.25			1,317,770				1,007		.30
Brokered time deposits		103,577				271	1.04			258,698				(85	)	(.13)
Total interest-bearing deposits		5,944,574		-		2,960	.20			5,805,130		-		2,381		.16

Federal funds purchased and other borrowings		51,224				121	.94			40,148				85		.84
Federal Home Loan Bank advances		476,698				945	.79			191,484				436		.90
Long-term debt		175,018				2,827	6.43			165,620				2,696		6.46
Total borrowed funds		702,940				3,893	2.20			397,252				3,217		3.21

Total interest-bearing liabilities		6,647,514				6,853	.41			6,202,382				5,598		.36
Non-interest-bearing liabilities:
Non-interest-bearing deposits		2,607,878								2,223,011
Other liabilities		143,609								111,757
Total liabilities		9,399,001								8,537,150
Shareholders' equity		1,085,083								1,020,604
Total liabilities and shareholders' equity	$	10,484,084							$	9,557,754

Net interest revenue (FTE)					$	81,192							$	74,048
Net interest-rate spread (FTE)							3.22	%								3.24	%

Net interest margin (FTE) ⁽⁴⁾							3.34	%								3.34	%

⁽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 $18.6 million in 2016 and $7.45 million in 2015 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,

					2016								2015
	Average						Avg.		Average						Avg.
(dollars in thousands, fully taxable equivalent (FTE))	Balance			Interest			Rate		Balance			Interest			Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (FTE) ⁽¹⁾⁽²⁾	$	6,412,740		$	268,478		4.19	%	$	5,297,687		$	223,713		4.22	%
Taxable securities ⁽³⁾		2,665,051			63,413		2.38			2,342,533			51,143		2.18
Tax-exempt securities (FTE) ⁽¹⁾⁽³⁾		26,244			1,005		3.83			25,439			1,154		4.54
Federal funds sold and other interest-earning assets		152,722			3,149		2.06			168,494			3,799		2.25

Total interest-earning assets (FTE)		9,256,757			336,045		3.63			7,834,153			279,809		3.57
Non-interest-earning assets:
Allowance for loan losses		(65,294	)							(71,001	)
Cash and due from banks		95,613								81,244
Premises and equipment		187,698								174,835
Other assets ⁽³⁾		579,051								442,878
Total assets	$	10,053,825							$	8,462,109

Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,826,729			1,903		.10		$	1,563,911			1,505		.10
Money market		1,941,288			4,982		.26			1,678,765			3,466		.21
Savings		515,179			135		.03			372,414			98		.03
Time		1,289,876			3,138		.24			1,269,360			4,823		.38
Brokered time deposits		171,420			(2	)	.00			269,162			(1,067	)	(.40)
Total interest-bearing deposits		5,744,492			10,156		.18			5,153,612			8,825		.17

Federal funds purchased and other borrowings		34,906			399		1.14			49,301			364		.74
Federal Home Loan Bank advances		499,026			3,676		.74			250,404			1,743		.70
Long-term debt		170,479			11,005		6.46			139,979			10,177		7.27
Total borrowed funds		704,411			15,080		2.14			439,684			12,284		2.79

Total interest-bearing liabilities		6,448,903			25,236		.39			5,593,296			21,109		.38
Non-interest-bearing liabilities:
Non-interest-bearing deposits		2,432,846								1,901,521
Other liabilities		112,774								97,890
Total liabilities		8,994,523								7,592,707
Shareholders' equity		1,059,302								869,402
Total liabilities and shareholders' equity	$	10,053,825							$	8,462,109

Net interest revenue (FTE)				$	310,809							$	258,700
Net interest-rate spread (FTE)							3.24	%							3.19	%

Net interest margin (FTE) ⁽⁴⁾							3.36	%							3.30	%

⁽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 $16.0 million in 2016 and $11.4 million in 2015 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.

For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
[email protected]

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