United Community Banks, Inc. Reports Net Loss of $6.2 Million for Third Quarter 2011

Press Release Details

Oct 27, 2011

United Community Banks, Inc. Reports Net Loss of $6.2 Million for Third Quarter 2011

BLAIRSVILLE, GA -- (MARKET WIRE) -- 10/27/11 -- United Community Banks, Inc. (NASDAQ: UCBI)

  • Special $25 million loan loss provision drove net loss
  • Excluding this special provision, net income was $8.8 million, or 10 cents per share
  • Net interest margin rose 14 basis points on lower deposit pricing
  • Core transaction deposits up 16 percent on an annualized basis

United Community Banks, Inc. (NASDAQ: UCBI) today reported a net loss of $6.2 million, or 16 cents per share, for the third quarter of 2011. The third quarter net loss resulted from a special loan loss provision of $25 million, or 26 cents per share, recorded in connection with the nonaccrual classification of United's largest loan relationship, which was announced earlier. Excluding this special provision, net income was $8.8 million, or 10 cents per share.

The year-to-date net loss of $141 million primarily reflects significant credit costs in the first quarter incurred in connection with the Company's problem asset disposition plan. The plan was executed in conjunction with raising $380 million of new capital on March 30, 2011.

"We believe the loss was an isolated situation that does not reflect deterioration in the remainder of our loan portfolio," stated Jimmy Tallent, president and chief executive officer. "Aside from this one relationship, which we have been watching closely for several quarters, our credit quality continued to improve and stabilize in the third quarter."

Total loans were $4.1 billion at quarter-end, down $53 million from the end of the second quarter and down $650 million from a year earlier. "The $53 million decrease during the third quarter was up from the $31 million decrease during the second quarter, but still represents the second lowest quarterly decrease in loan balances since the first quarter of 2008," stated Tallent. "We remain confident that soon we can once again begin to grow our loan portfolio. We are encouraged to have $141 million of new loan commitments, with $88 million funded, during the third quarter. The majority were commercial loans."

The third quarter provision for loan losses was $36 million, up from $11 million in the second quarter, but down from $50.5 million a year ago. Included in the third quarter provision was the previously announced $25 million special provision for the Company's largest lending relationship. Net charge-offs for the third quarter were $17.5 million, compared to $16.4 million for the second quarter but down from $50.0 million a year ago. Second quarter net charge-offs included a $7.3 million recovery from an April 18 bulk loan sale transaction. Excluding that recovery, third quarter net charge-offs declined $6.2 million from last quarter.

Nonperforming assets increased $70 million to $189 million at quarter-end. The increase reflects placing the previously mentioned $76.6 million loan on nonaccrual.

Taxable equivalent net interest revenue of $59.3 million increased $335,000 from the second quarter. Compared with the third quarter of 2010, net interest revenue declined $733,000, primarily due to a $702 million reduction in average loan balances that was significantly offset by lower funding costs and deposit rates. Net interest margin was 3.55 percent for the third quarter of 2011, down two basis points from a year ago and up 14 basis points from the second quarter.

"Growing loans and deposits are key initiatives to further building core earnings," Tallent commented. "The weak economy has created a highly competitive environment for good, quality loans and we are working diligently to get our share. We have had tremendous success in gathering core transaction deposits -- increasing the balance $112 million from the second quarter, or 16 percent on an annualized basis. This was the eleventh consecutive quarter of growth in core transaction deposits, which now represents 48 percent of total deposits compared to 30 percent at the end of 2008."

Fee revenue was $11.5 million in the third quarter of 2011, compared to $12.9 million a year ago and $13.9 million last quarter. Service charges and fees were $7.5 million, down $114,000 from a year ago, due primarily to lower overdraft fees of $886,000 resulting from regulatory changes last year that required customers to provide consent before using overdraft services. Mostly offsetting this reduction in overdraft fees was an increase of $785,000 in ATM and debit card usage fees. Mortgage fees of $1.1 million were down $923,000 from a year ago and up $196,000 from last quarter. The decrease from last year was due to the lower level of refinancing activities. Other fee revenue of $2.0 million reflected a decrease of $173,000 from a year ago and $2.7 million from the second quarter. The decrease from the second quarter was primarily due to the accelerated recognition of deferred gains relating to the ineffectiveness of terminated cash flow hedges on certain prime-based loans. Hedge ineffectiveness gains recognized in the third quarter were $575,000 compared with $2.8 million in the second quarter of 2011 and $336,000 in the third quarter of 2010. Also contributing to the decrease in other fee revenue from the second quarter and a year ago was a change in the market value of deferred compensation plan assets which accounted for $393,000 and $657,000 of the decrease in other fee revenue from the second quarter of 2011 and the third quarter of 2010, respectively.

Excluding foreclosed property costs and the goodwill impairment charge in 2010, third quarter 2011 operating expenses were $43.7 million, down from both the second quarter of 2011 and third quarter of 2010 by $3.1 million and $1.4 million, respectively. The decreases were mostly in FDIC assessments and the other expense category. FDIC assessments and other regulatory charges of $2.6 million were down $1.0 million from the second quarter and $653,000 from a year ago primarily due to the new asset based formula and a lower assessment rate. The decrease in the other expense category was mostly due to lower collections costs. Salary and benefit costs totaled $25.3 million, a $371,000 increase from last year and a $1.2 million decrease from the second quarter due to staff reductions and related severance costs.

Foreclosed property costs for the third quarter of 2011 were $2.8 million as compared to $1.9 million last quarter and $19.8 million a year ago. The third quarter of 2011 included $1.8 million for maintenance of foreclosed properties and $1.0 million in net losses and write-downs on properties. For the second quarter of 2011, foreclosed property costs were almost entirely for maintenance costs. The third quarter of 2010 included $14.2 million of net write-downs and losses and $5.6 million of maintenance costs.

The effective tax rate for the third quarter of 2011 was 49 percent, up from the 40 percent effective tax rate for the first and second quarters of 2011. The tax benefit in the third quarter includes the release of approximately $1.1 million in reserves for uncertain tax positions relating to state tax returns whose limitations have expired. Excluding the reserve release, the third quarter effective tax rate would have been 40 percent. The effective tax rate is expected to return to a normal range of 35 to 36 percent with expected profitability for 2012.

As of September 30, 2011, the capital ratios for United were as follows: Tier 1 Risk-Based of 14.0 percent; Tier 1 Leverage of 9.0 percent; and Total Risk-Based of 15.8 percent. The quarterly average tangible equity-to-assets ratio was 11.8 percent, and the tangible common equity-to-assets ratio was 9.1 percent.

"Reporting a third quarter loss after achieving profitability last quarter is disappointing, but must be put into context," Tallent said. "Our objective is to deal aggressively and decisively with credit issues as they are identified. The large classification during the quarter was an isolated situation that we do not believe indicates a trend. Excluding this one item, our credit metrics continued to improve and we are on the right path to be profitable next quarter and into 2012."

Tallent added, "United has been working diligently with the SEC to resolve comments regarding our net deferred tax asset made during their review of two resale registration statements and related periodic reports. The SEC has inquired as to the necessity of an additional deferred tax asset valuation allowance. We continue to believe an additional valuation allowance is not required based on our expectation that, more likely than not, we will realize all of our net deferred tax assets many years prior to their expiration. However, considering the SEC's inquiry, it is possible we could be required to record a valuation allowance."

Conference Call
United Community Banks will hold a conference call today, Thursday, October 27, 2011, 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 14298726. The conference call also will be webcast and can be accessed by selecting 'Calendar of Events' within the Investor Relations section of the company's website at www.ucbi.com.

About United Community Banks, Inc.
Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. United Community Banks has assets of $7.2 billion and operates 27 community banks with 105 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina and east Tennessee. The Company specializes in providing personalized community banking services to individuals and small to mid-size businesses. United Community Banks also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United Community Banks common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at the Company's web site at www.ucbi.com.

Safe Harbor
This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial United's outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those anticipated in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of some factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled.




UNITED COMMUNITY BANKS, INC.

Financial Highlights

Selected Financial Information



                                     2011                      2010

                        -----------------------------  -------------------

(in thousands, except

 per share data;          Third    Second     First     Fourth     Third

 taxable equivalent)     Quarter   Quarter   Quarter    Quarter   Quarter

                        --------  --------  ---------  --------  ---------

INCOME SUMMARY

Interest revenue        $ 74,543  $ 76,931  $  75,965  $ 81,215  $  84,360

Interest expense          15,262    17,985     19,573    21,083     24,346

                        --------  --------  ---------  --------  ---------

   Net interest revenue   59,281    58,946     56,392    60,132     60,014

Operating provision for

 loan losses (1)          36,000    11,000    190,000    47,750     50,500

Fee revenue (2)           11,498    13,905     11,838    12,442     12,861

                        --------  --------  ---------  --------  ---------

   Total operating

    revenue (1)(2)        34,779    61,851   (121,770)   24,824     22,375

Operating expenses (3)    46,520    48,728    115,271    64,918     64,906

Loss on sale of

 nonperforming assets          -         -          -         -          -

                        --------  --------  ---------  --------  ---------

   Operating (loss)

    income from

    continuing

    operations before

    income taxes         (11,741)   13,123   (237,041)  (40,094)   (42,531)

Operating income tax

 (benefit) expense        (5,539)    5,506    (94,555)  (16,520)   (16,706)

                        --------  --------  ---------  --------  ---------

   Net operating (loss)

    income from

    continuing

    operations(1)(2)(3)   (6,202)    7,617   (142,486)  (23,574)   (25,825)

Noncash goodwill

 impairment charges            -         -          -         -   (210,590)

Partial reversal of

 fraud loss provision,

 net of income tax             -         -          -     7,179          -

Loss from discontinued

 operations, net of

 income tax                    -         -          -         -          -

Gain from sale of

 subsidiary, net income

 tax                           -         -          -         -          -

                        --------  --------  ---------  --------  ---------

   Net (loss) income      (6,202)    7,617   (142,486)  (16,395)  (236,415)

Preferred dividends and

 discount accretion        3,019     3,016      2,778     2,586      2,581

                        --------  --------  ---------  --------  ---------

Net (loss) income

 available to common

 shareholders           $ (9,221) $  4,601  $(145,264) $(18,981) $(238,996)

                        ========  ========  =========  ========  =========



PERFORMANCE MEASURES

  Per common share:

   Diluted operating

    (loss) income from

    continuing

    operations

    (1)(2)(3)           $   (.16) $    .08  $   (7.87) $  (1.38) $   (1.50)

   Diluted (loss)

    income from

    continuing

    operations              (.16)      .08      (7.87)    (1.00)    (12.62)

   Diluted (loss)

    income                  (.16)      .08      (7.87)    (1.00)    (12.62)

   Book value              11.37     11.59      14.78     24.18      25.70

   Tangible book value

    (5)                    11.26     11.47      14.44     23.78      25.26



  Key performance

   ratios:

   Return on equity

    (4)(6)                 (5.72)%    5.34%   (147.11)%  (17.16)%  (148.04)%

   Return on assets (6)     (.34)      .40      (7.61)     (.89)    (12.47)

   Net interest margin

    (6)                     3.55      3.41       3.30      3.58       3.57

   Operating efficiency

    ratio from

    continuing

    operations (2)(3)      65.73     66.88     169.08     89.45      89.38

   Equity to assets        11.83     11.21       8.82      8.85      11.37

   Tangible equity to

    assets (5)             11.76     11.13       8.73      8.75       9.19

   Tangible common

    equity to assets

    (5)                     9.09      4.79       5.51      6.35       6.78

   Tangible common

    equity to risk-

    weighted assets (5)    14.41     14.26       6.40      9.05       9.60



ASSET QUALITY *

  Non-performing loans  $144,484  $ 71,065  $  83,769  $179,094  $ 217,766

  Foreclosed properties   44,263    47,584     54,378   142,208    129,964

                        --------  --------  ---------  --------  ---------

   Total non-performing

    assets (NPAs)        188,747   118,649    138,147   321,302    347,730

  Allowance for loan

   losses                146,092   127,638    133,121   174,695    174,613

  Operating net charge-

   offs (1)               17,546    16,483    231,574    47,668     49,998

  Allowance for loan

   losses to loans          3.55%     3.07%      3.17%     3.79%      3.67%

  Operating net charge-

   offs to average

   loans (1)(6)             1.68      1.58      20.71      4.03       4.12

  NPAs to loans and

   foreclosed

   properties               4.54      2.82       3.25      6.77       7.11

  NPAs to total assets      2.64      1.60       1.73      4.32       4.96



AVERAGE BALANCES($ in

 millions)

  Loans                 $  4,194  $  4,266  $   4,599  $  4,768  $   4,896

  Investment securities    2,150     2,074      1,625     1,354      1,411

  Earning assets           6,630     6,924      6,902     6,680      6,676

  Total assets             7,261     7,624      7,595     7,338      7,522

  Deposits                 6,061     6,372      6,560     6,294      6,257

  Shareholders' equity       859       854        670       649        855

  Common shares - basic

   (thousands)            57,599    25,427     18,466    18,984     18,936

  Common shares -

   diluted (thousands)    57,599    57,543     18,466    18,984     18,936



AT PERIOD END($ in

 millions)

  Loans *               $  4,110  $  4,163  $   4,194  $  4,604  $   4,760

  Investment securities    2,123     2,188      1,884     1,490      1,310

  Total assets             7,159     7,410      7,974     7,443      7,013

  Deposits                 6,005     6,183      6,598     6,469      5,999

  Shareholders' equity       848       860        850       636        662

  Common shares

   outstanding

   (thousands)            57,510    57,469     20,903    18,937     18,887



(1) Excludes the partial reversal of a previously established provision

 for fraud-related loan losses of $11.8 million, net of tax expense of

 $4.6 million in the fourth quarter of 2010. Operating charge-offs also

 exclude the $11.8 million related partial recovery of the previously

 charged off amount. (2) Excludes revenue generated by discontinued

 operations in the first quarter of 2010. (3) Excludes the goodwill

 impairment charge of $211 million in the third quarter of 2010 and

 expenses relating to discontinued operations in the first quarter of

 2010. (4) Net 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). (5)

 Excludes effect of acquisition related intangibles and associated

 amortization. (6) Annualized.



* Excludes loans and foreclosed properties covered by loss sharing

 agreements with the FDIC.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Selected Financial Information



                                        Third

(in thousands,                          Quarter     For the Nine      YTD

 except per share     Third Quarter      2011-      Months Ended      2011-

 data;  taxable    -------------------   2010  --------------------   2010

 equivalent)         2011       2010    Change    2011       2010    Change

                   --------  ---------  -----  ---------  ---------  -----

INCOME SUMMARY

Interest revenue   $ 74,543  $  84,360         $ 227,439  $ 261,908

Interest expense     15,262     24,346            52,820     78,988

                   --------  ---------         ---------  ---------

  Net interest

   revenue           59,281     60,014     (1)%  174,619    182,920     (5)%

Operating

 provision for

 loan losses (1)     36,000     50,500           237,000    187,000

Fee revenue (2)      11,498     12,861    (11)    37,241     36,106      3

                   --------  ---------         ---------  ---------

Total operating

 revenue (1)(2)      34,779     22,375           (25,140)    32,026

Operating expenses

 (3)                 46,520     64,906    (28)   210,519    178,034     18

Loss on sale of

 nonperforming

 assets                   -          -                 -     45,349

                   --------  ---------         ---------  ---------

  Operating (loss)

   income from

   continuing

   operations

   before income

   taxes            (11,741)   (42,531)   (72)  (235,659)  (191,357)    23

Operating income

 tax (benefit)

 expense             (5,539)   (16,706)          (94,588)   (71,542)

                   --------  ---------         ---------  ---------

  Net operating

   (loss) income

   from continuing

   operations

   (1)(2)(3)         (6,202)   (25,825)   (76)  (141,071)  (119,815)    18

Noncash goodwill

 impairment

 charges                  -   (210,590)                -   (210,590)

Partial reversal

 of fraud loss

 provision, net of

 income tax               -          -                 -          -

Loss from

 discontinued

 operations, net

 of income tax            -          -                 -       (101)

Gain from sale of

 subsidiary, net

 income tax               -          -                 -      1,266

                   --------  ---------         ---------  ---------

  Net (loss)

   income            (6,202)  (236,415)   (97)  (141,071)  (329,240)   (57)

Preferred

 dividends and

 discount

 accretion            3,019      2,581             8,813      7,730

                   --------  ---------         ---------  ---------

Net (loss) income

 available to

 common

 shareholders      $ (9,221) $(238,996)        $(149,884) $(336,970)

                   ========  =========         =========  =========



PERFORMANCE

 MEASURES

 Per common share:

  Diluted

   operating

   (loss) income

   from continuing

   operations

   (1)(2)(3)         $ (.16)   $ (1.50)   (89)   $ (4.41)   $ (6.75)   (35)

  Diluted (loss)

   income from

   continuing

   operations          (.16)    (12.62)   (99)     (4.41)    (17.89)   (75)

  Diluted (loss)

   income              (.16)    (12.62)   (99)     (4.41)    (17.82)   (75)

  Book value          11.37      25.70    (56)     11.37      25.70    (56)

  Tangible book

   value (5)          11.26      25.26    (55)     11.26      25.26    (55)



 Key performance

  ratios:

  Return on equity

   (4)(6)             (5.72)%  (148.04)%          (43.31)%   (65.69)%

  Return on assets

   (6)                 (.34)    (12.47)            (2.52)     (5.70)

  Net interest

   margin (6)          3.55       3.57              3.42       3.56

  Operating

   efficiency

   ratio from

   continuing

   operations

   (2)(3)             65.73      89.38             99.39     102.14

  Equity to assets    11.83      11.37             10.61      11.70

  Tangible equity

   to assets (5)      11.76       9.19             10.53       9.28

  Tangible common

   equity to

   assets (5)          9.09       6.78              6.44       6.94

  Tangible common

   equity to risk-

   weighted assets

   (5)                14.41       9.60             14.41       9.60



ASSET QUALITY *

 Non-performing

  loans            $144,484  $ 217,766         $ 144,484  $ 217,766

 Foreclosed

  properties         44,263    129,964            44,263    129,964

                   --------  ---------         ---------  ---------

  Total non-

   performing

   assets (NPAs)    188,747    347,730           188,747    347,730

 Allowance for

  loan losses       146,092    174,613           146,092    174,613

 Operating net

  charge-offs (1)    17,546     49,998           265,603    167,989

 Allowance for

  loan losses to

  loans                3.55%      3.67%             3.55%      3.67%

 Operating net

  charge-offs to

  average loans

  (1)(6)               1.68       4.12              8.28       4.54

 NPAs to loans and

  foreclosed

  properties           4.54       7.11              4.54       7.11

 NPAs to total

  assets               2.64       4.96              2.64       4.96



AVERAGE BALANCES($

 in millions)

 Loans             $  4,194  $   4,896    (14) $   4,352  $   5,026    (13)

 Investment

  securities          2,150      1,411     52      1,952      1,487     31

 Earning assets       6,630      6,676     (1)     6,817      6,870     (1)

 Total assets         7,261      7,522     (3)     7,492      7,723     (3)

 Deposits             6,061      6,257     (3)     6,329      6,399     (1)

 Shareholders'

  equity                859        855      -        795        904    (12)

 Common shares -

  basic

  (thousands)        57,599     18,936            33,973     18,905

 Common shares -

  diluted

  (thousands)        57,599     18,936            33,973     18,905



AT PERIOD END($ in

 millions)

 Loans *           $  4,110  $   4,760    (14) $   4,110  $   4,760    (14)

 Investment

  securities          2,123      1,310     62      2,123      1,310     62

 Total assets         7,159      7,013      2      7,159      7,013      2

 Deposits             6,005      5,999      -      6,005      5,999      -

 Shareholders'

  equity                848        662     28        848        662     28

 Common shares

  outstanding

  (thousands)        57,510     18,887            57,510     18,887



(1) Excludes the partial reversal of a previously established provision

 for fraud-related loan losses of $11.8 million, net of tax expense of

 $4.6 million in the fourth quarter of 2010. Operating charge-offs also

 exclude the $11.8 million related partial recovery of the previously

 charged off amount. (2) Excludes revenue generated by discontinued

 operations in the first quarter of 2010. (3) Excludes the goodwill

 impairment charge of $211 million in the third quarter of 2010 and

 expenses relating to discontinued operations in the first quarter of

 2010. (4) Net 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). (5)

 Excludes effect of acquisition related intangibles and associated

 amortization. (6) Annualized.



* Excludes loans and foreclosed properties covered by loss sharing

 agreements with the FDIC.









UNITED COMMUNITY BANKS, INC.

Operating Earnings to GAAP Earnings Reconciliation

Selected Financial Information



                                     2011                      2010

                        -----------------------------  --------------------

(in thousands, except

 per share data;          Third    Second     First      Fourth     Third

 taxable equivalent)     Quarter   Quarter   Quarter    Quarter    Quarter

                        --------  --------  ---------  ---------  ---------



Interest revenue

 reconciliation

Interest revenue -

 taxable equivalent     $ 74,543  $ 76,931  $  75,965  $  81,215  $  84,360

Taxable equivalent

 adjustment                 (420)     (429)      (435)      (497)      (511)

                        --------  --------  ---------  ---------  ---------

  Interest revenue

   (GAAP)               $ 74,123  $ 76,502  $  75,530  $  80,718  $  83,849

                        ========  ========  =========  =========  =========



Net interest revenue

 reconciliation

Net interest revenue -

 taxable equivalent     $ 59,281  $ 58,946  $  56,392  $  60,132  $  60,014

Taxable equivalent

 adjustment                 (420)     (429)      (435)      (497)      (511)

                        --------  --------  ---------  ---------  ---------

  Net interest revenue

   (GAAP)               $ 58,861  $ 58,517  $  55,957  $  59,635  $  59,503

                        ========  ========  =========  =========  =========



Provision for loan

 losses reconciliation

Operating provision for

 loan losses            $ 36,000  $ 11,000  $ 190,000  $  47,750  $  50,500

Partial reversal of

 special fraud-related

 provision for loan

 loss                          -         -          -    (11,750)         -

                        --------  --------  ---------  ---------  ---------

  Provision for loan

   losses (GAAP)        $ 36,000  $ 11,000  $ 190,000  $  36,000  $  50,500

                        ========  ========  =========  =========  =========



Total revenue

 reconciliation

Total operating revenue $ 34,779  $ 61,851  $(121,770) $  24,824  $  22,375

Taxable equivalent

 adjustment                 (420)     (429)      (435)      (497)      (511)

Partial reversal of

 special fraud-related

 provision for loan

 loss                          -         -          -     11,750          -

                        --------  --------  ---------  ---------  ---------

  Total revenue (GAAP)  $ 34,359  $ 61,422  $(122,205) $  36,077  $  21,864

                        ========  ========  =========  =========  =========



Expense reconciliation

Operating expense       $ 46,520  $ 48,728  $ 115,271  $  64,918  $  64,906

Noncash goodwill

 impairment charge             -         -          -          -    210,590

                        --------  --------  ---------  ---------  ---------

  Operating expense

   (GAAP)               $ 46,520  $ 48,728  $ 115,271  $  64,918  $ 275,496

                        ========  ========  =========  =========  =========



(Loss) income from

 continuing operations

 before taxes

 reconciliation

Operating (loss) income

 from continuing

 operations before

 taxes                  $(11,741) $ 13,123  $(237,041) $ (40,094) $ (42,531)

Taxable equivalent

 adjustment                 (420)     (429)      (435)      (497)      (511)

Noncash goodwill

 impairment charge             -         -          -          -   (210,590)

Partial reversal of

 special fraud-related

 provision for loan

 loss                          -         -          -     11,750          -

                        --------  --------  ---------  ---------  ---------

  (Loss) income from

   continuing

   operations before

   taxes (GAAP)         $(12,161) $ 12,694  $(237,476) $ (28,841) $(253,632)

                        ========  ========  =========  =========  =========



Income tax (benefit)

 expense reconciliation

Operating income tax

 (benefit) expense      $ (5,539) $  5,506  $ (94,555) $ (16,520) $ (16,706)

Taxable equivalent

 adjustment                 (420)     (429)      (435)      (497)      (511)

Partial reversal of

 special fraud-related

 provision for loan

 loss                          -         -          -      4,571          -

                        --------  --------  ---------  ---------  ---------

  Income tax (benefit)

   expense (GAAP)       $ (5,959) $  5,077  $ (94,990) $ (12,446) $ (17,217)

                        ========  ========  =========  =========  =========



Diluted (loss) earnings from

 continuing operations per

 common share reconciliation

Diluted operating

 (loss) earnings from

 continuing operations

 per common share       $   (.16) $    .08  $   (7.87) $   (1.38) $   (1.50)

Noncash goodwill

 impairment charge             -         -          -          -     (11.12)

Partial reversal of

 special fraud-related

 provision for loan

 loss                          -         -          -        .38          -

                        --------  --------  ---------  ---------  ---------

  Diluted (loss)

   earnings from

   continuing

   operations per

   common share (GAAP)  $   (.16) $    .08  $   (7.87) $   (1.00) $  (12.62)

                        ========  ========  =========  =========  =========



Book value per common

 share reconciliation

Tangible book value per

 common share           $  11.26  $  11.47  $   14.44  $   23.78  $   25.26

Effect of goodwill and

 other intangibles           .11       .12        .34        .40        .44

                        --------  --------  ---------  ---------  ---------

  Book value per common

   share (GAAP)         $  11.37  $  11.59  $   14.78  $   24.18  $   25.70

                        ========  ========  =========  =========  =========



Efficiency ratio from

 continuing operations

 reconciliation

Operating efficiency

 ratio from continuing

 operations                65.73%    66.88%    169.08%     89.45%     89.38%

Noncash goodwill

 impairment charge             -         -          -          -     290.00

                        --------  --------  ---------  ---------  ---------

  Efficiency ratio from

   continuing

   operations (GAAP)       65.73%    66.88%    169.08%     89.45%    379.38%

                        ========  ========  =========  =========  =========



Average equity to

 assets reconciliation

Tangible common equity

 to assets                  9.09%     4.79%      5.51%      6.35%      6.78%

Effect of preferred

 equity                     2.67      6.34       3.22       2.40       2.41

                        --------  --------  ---------  ---------  ---------

  Tangible equity to

   assets                  11.76     11.13       8.73       8.75       9.19

Effect of goodwill and

 other intangibles           .07       .08        .09        .10       2.18

                        --------  --------  ---------  ---------  ---------

  Equity to assets

   (GAAP)                  11.83%    11.21%      8.82%      8.85%     11.37%

                        ========  ========  =========  =========  =========



Actual tangible common

 equity to risk-

 weighted assets

 reconciliation

Tangible common equity

 to risk-weighted

 assets                    14.41%    14.26%      6.40%      9.05%      9.60%

Effect of other

 comprehensive income       (.58)     (.65)      (.58)      (.62)      (.81)

Effect of deferred tax

 limitation                (5.34)    (5.04)     (5.10)     (3.34)     (2.94)

Effect of trust

 preferred                  1.18      1.14       1.12       1.06       1.06

Effect of preferred

 equity                     4.30      4.17       5.97       3.52       3.51

                        --------  --------  ---------  ---------  ---------

  Tier I capital ratio

   (Regulatory)            13.97%    13.88%      7.81%      9.67%     10.42%

                        ========  ========  =========  =========  =========



Net charge-offs

 reconciliation

Operating net charge-

 offs                   $ 17,546  $ 16,483  $ 231,574  $  47,668  $  49,998

Subsequent partial

 recovery of fraud-

 related charge-off            -         -          -    (11,750)         -

                        --------  --------  ---------  ---------  ---------

  Net charge-offs

   (GAAP)               $ 17,546  $ 16,483  $ 231,574  $  35,918  $  49,998

                        ========  ========  =========  =========  =========



Net charge-offs to

 average loans

 reconciliation

Operating net charge-

 offs to average loans      1.68%     1.58%     20.71%      4.03%      4.12%

Subsequent partial

 recovery of fraud-

 related charge-off            -         -          -      (1.00)         -

                        --------  --------  ---------  ---------  ---------

  Net charge-offs to

   average loans (GAAP)     1.68%     1.58%     20.71%      3.03%      4.12%

                        ========  ========  =========  =========  =========



Net (loss) income

 reconciliation

Net income excluding

 special provision      $  8,798

Effect of special

 provision for loan

 losses on largest

 lending relationship    (15,000)

                        --------

  Net loss (GAAP)       $ (6,202)

                        ========



Net (loss) income per

 diluted share

 reconciliation

Net income per diluted

 share excluding

 special provision      $    .10

Effect of special

 provision for loan

 losses on largest

 lending relationship       (.26)

                        --------

  Net loss per diluted

   share (GAAP)         $   (.16)

                        ========









UNITED COMMUNITY BANKS, INC.

Operating Earnings to GAAP Earnings Reconciliation

Selected Financial Information



(in thousands, except per share data; taxable          For the Nine Months

 equivalent)                                                  Ended

                                                     ----------------------

                                                        2011        2010

                                                     ----------  ----------



Interest revenue reconciliation

Interest revenue - taxable equivalent                $  227,439  $  261,908

Taxable equivalent adjustment                            (1,284)     (1,504)

                                                     ----------  ----------

  Interest revenue (GAAP)                            $  226,155  $  260,404

                                                     ==========  ==========



Net interest revenue reconciliation

Net interest revenue - taxable equivalent            $  174,619  $  182,920

Taxable equivalent adjustment                            (1,284)     (1,504)

                                                     ----------  ----------

  Net interest revenue (GAAP)                        $  173,335  $  181,416

                                                     ==========  ==========



Provision for loan losses reconciliation

Operating provision for loan losses                  $  237,000  $  187,000

Partial reversal of special fraud-related provision

 for loan loss                                                -           -

                                                     ----------  ----------

  Provision for loan losses (GAAP)                   $  237,000  $  187,000

                                                     ==========  ==========



Total revenue reconciliation

Total operating revenue                              $  (25,140) $   32,026

Taxable equivalent adjustment                            (1,284)     (1,504)

Partial reversal of special fraud-related provision

 for loan loss                                                -           -

                                                     ----------  ----------

  Total revenue (GAAP)                               $  (26,424) $   30,522

                                                     ==========  ==========



Expense reconciliation

Operating expense                                    $  210,519  $  223,383

Noncash goodwill impairment charge                            -     210,590

                                                     ----------  ----------

  Operating expense (GAAP)                           $  210,519  $  433,973

                                                     ==========  ==========



(Loss) income from continuing operations before

 taxes reconciliation

Operating (loss) income from continuing operations

 before taxes                                        $ (235,659) $ (191,357)

Taxable equivalent adjustment                            (1,284)     (1,504)

Noncash goodwill impairment charge                            -    (210,590)

Partial reversal of special fraud-related provision

 for loan loss                                                -           -

                                                     ----------  ----------

  (Loss) income from continuing operations before

   taxes (GAAP)                                      $ (236,943) $ (403,451)

                                                     ==========  ==========



Income tax (benefit) expense reconciliation

Operating income tax (benefit) expense               $  (94,588) $  (71,542)

Taxable equivalent adjustment                            (1,284)     (1,504)

Partial reversal of special fraud-related provision

 for loan loss                                                -           -

                                                     ----------  ----------

  Income tax (benefit) expense (GAAP)                $  (95,872) $  (73,046)

                                                     ==========  ==========



Diluted (loss) earnings from continuing operations per common

 share reconciliation

Diluted operating (loss) earnings from continuing

 operations per common share                         $    (4.41) $    (6.75)

Noncash goodwill impairment charge                            -      (11.14)

Partial reversal of special fraud-related provision

 for loan loss                                                -           -

                                                     ----------  ----------

  Diluted (loss) earnings from continuing operations

   per common share (GAAP)                           $    (4.41) $   (17.89)

                                                     ==========  ==========



Book value per common share reconciliation

Tangible book value per common share                 $    11.26  $    25.26

Effect of goodwill and other intangibles                    .11         .44

                                                     ----------  ----------

  Book value per common share (GAAP)                 $    11.37  $    25.70

                                                     ==========  ==========



Efficiency ratio from continuing operations

 reconciliation

Operating efficiency ratio from continuing

 operations                                               99.39%     102.14%

Noncash goodwill impairment charge                            -       96.29

                                                     ----------  ----------

  Efficiency ratio from continuing operations (GAAP)      99.39%     198.43%

                                                     ==========  ==========



Average equity to assets reconciliation

Tangible common equity to assets                           6.44%       6.94%

Effect of preferred equity                                 4.09        2.34

                                                     ----------  ----------

  Tangible equity to assets                               10.53        9.28

Effect of goodwill and other intangibles                    .08        2.42

                                                     ----------  ----------

  Equity to assets (GAAP)                                 10.61%      11.70%

                                                     ==========  ==========



Actual tangible common equity to risk-weighted

 assets reconciliation

Tangible common equity to risk-weighted assets            14.41%       9.60%

Effect of other comprehensive income                       (.58)       (.81)

Effect of deferred tax limitation                         (5.34)      (2.94)

Effect of trust preferred                                  1.18        1.06

Effect of preferred equity                                 4.30        3.51

                                                     ----------  ----------

  Tier I capital ratio (Regulatory)                       13.97%      10.42%

                                                     ==========  ==========



Net charge-offs reconciliation

Operating net charge-offs                            $  265,603  $  167,989

Subsequent partial recovery of fraud-related charge-

 off                                                          -           -

                                                     ----------  ----------

  Net charge-offs (GAAP)                             $  265,603  $  167,989

                                                     ==========  ==========



Net charge-offs to average loans reconciliation

Operating net charge-offs to average loans                 8.28%       4.54%

Subsequent partial recovery of fraud-related charge-

 off                                                          -           -

                                                     ----------  ----------

  Net charge-offs to average loans (GAAP)                  8.28%       4.54%

                                                     ==========  ==========









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Period-End (1)



                                           2011                   2010

                                -------------------------- -----------------

                                  Third   Second    First   Fourth    Third

(in millions)                    Quarter  Quarter  Quarter  Quarter  Quarter

                                -------- -------- -------- -------- --------

LOANS BY CATEGORY

Commercial (sec.by RE)          $  1,771 $  1,742 $  1,692 $  1,761 $  1,781

Commercial construction              169      195      213      297      310

Commercial & industrial              429      428      431      441      456

                                -------- -------- -------- -------- --------

    Total commercial               2,369    2,365    2,336    2,499    2,547

Residential construction             474      502      550      695      764

Residential mortgage               1,150    1,177    1,187    1,279    1,316

Consumer / installment               117      119      121      131      133

                                -------- -------- -------- -------- --------

    Total loans                 $  4,110 $  4,163 $  4,194 $  4,604 $  4,760

                                ======== ======== ======== ======== ========



LOANS BY MARKET

Atlanta MSA                     $  1,192 $  1,188 $  1,179 $  1,310 $  1,365

Gainesville MSA                      272      275      282      312      316

North Georgia                      1,478    1,500    1,531    1,689    1,755

Western North Carolina               607      626      640      702      719

Coastal Georgia                      316      325      312      335      345

East Tennessee                       245      249      250      256      260

                                -------- -------- -------- -------- --------

    Total loans                 $  4,110 $  4,163 $  4,194 $  4,604 $  4,760

                                ======== ======== ======== ======== ========



RESIDENTIAL CONSTRUCTION

Dirt loans

  Acquisition & development     $     97 $    105 $    116 $    174 $    190

  Land loans                          60       62       69       99      104

  Lot loans                          216      218      228      275      303

                                -------- -------- -------- -------- --------

      Total                          373      385      413      548      597

                                -------- -------- -------- -------- --------



House loans

  Spec                                64       74       88       97      109

  Sold                                37       43       49       50       58

                                -------- -------- -------- -------- --------

      Total                          101      117      137      147      167

                                -------- -------- -------- -------- --------

Total residential construction  $    474 $    502 $    550 $    695 $    764

                                ======== ======== ======== ======== ========



RESIDENTIAL CONSTRUCTION - ATLANTA MSA

Dirt loans

  Acquisition & development     $     19 $     20 $     22 $     30 $     34

  Land loans                          15       16       19       23       27

  Lot loans                           22       22       24       32       45

                                -------- -------- -------- -------- --------

      Total                           56       58       65       85      106

                                -------- -------- -------- -------- --------



House loans

  Spec                                28       30       34       38       42

  Sold                                 8        9       11       10       11

                                -------- -------- -------- -------- --------

      Total                           36       39       45       48       53

                                -------- -------- -------- -------- --------

Total residential construction  $     92 $     97 $    110 $    133 $    159

                                ======== ======== ======== ======== ========



(1) Excludes total loans of $57.8 million, $70.8 million, $63.3 million,

 $68.2 million and $75.2 million as of September 30, 2011, June 30, 2011,

 March 31, 2011, December 31, 2010 and September 30, 2010, respectively,

 that are covered by the loss-sharing agreement with the FDIC, related to

 the acquisition of Southern Community Bank.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Period-End (1)



                                   2011         2010

                            ----------------- --------

                                                         Linked   Year over

                              Third   Second    Third   Quarter     Year

(in millions)                Quarter  Quarter  Quarter   Change     Change

                            -------- -------- -------- ---------  ---------

LOANS BY CATEGORY

Commercial (sec.by RE)      $  1,771 $  1,742 $  1,781 $      29  $     (10)

Commercial construction          169      195      310       (26)      (141)

Commercial & industrial          429      428      456         1        (27)

                            -------- -------- --------

    Total commercial           2,369    2,365    2,547         4       (178)

Residential construction         474      502      764       (28)      (290)

Residential mortgage           1,150    1,177    1,316       (27)      (166)

Consumer / installment           117      119      133        (2)       (16)

                            -------- -------- --------

    Total loans             $  4,110 $  4,163 $  4,760       (53)      (650)

                            ======== ======== ========



LOANS BY MARKET

Atlanta MSA                 $  1,192 $  1,188 $  1,365         4       (173)

Gainesville MSA                  272      275      316        (3)       (44)

North Georgia                  1,478    1,500    1,755       (22)      (277)

Western North Carolina           607      626      719       (19)      (112)

Coastal Georgia                  316      325      345        (9)       (29)

East Tennessee                   245      249      260        (4)       (15)

                            -------- -------- --------

    Total loans             $  4,110 $  4,163 $  4,760       (53)      (650)

                            ======== ======== ========



RESIDENTIAL CONSTRUCTION

Dirt loans

  Acquisition & development $     97 $    105 $    190        (8)       (93)

  Land loans                      60       62      104        (2)       (44)

  Lot loans                      216      218      303        (2)       (87)

                            -------- -------- --------

     Total                       373      385      597       (12)      (224)

                            -------- -------- --------



House loans

  Spec                            64       74      109       (10)       (45)

  Sold                            37       43       58        (6)       (21)

                            -------- -------- --------

      Total                      101      117      167       (16)       (66)

                            -------- -------- --------

Total residential

 construction               $    474 $    502 $    764       (28)      (290)

                            ======== ======== ========



RESIDENTIAL CONSTRUCTION - ATLANTA MSA

Dirt loans

  Acquisition & development $     19 $     20 $     34        (1)       (15)

  Land loans                      15       16       27        (1)       (12)

  Lot loans                       22       22       45         -        (23)

                            -------- -------- --------

    Total                         56       58      106        (2)       (50)

                            -------- -------- --------



House loans

  Spec                            28       30       42        (2)       (14)

  Sold                             8        9       11        (1)        (3)

                            -------- -------- --------

    Total                         36       39       53        (3)       (17)

                            -------- -------- --------

Total residential

 construction               $     92 $     97 $    159        (5)       (67)

                            ======== ======== ========



(1) Excludes total loans of $57.8 million, $70.8 million, $63.3 million,

 $68.2 million and $75.2 million as of September 30, 2011, June 30, 2011,

 March 31, 2011, December 31, 2010 and September 30, 2010, respectively,

 that are covered by the loss-sharing agreement with the FDIC, related to

 the acquisition of Southern Community Bank.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality (1)



                                           Third Quarter 2011

                                   ----------------------------------------

                                       Non-

                                    performing    Foreclosed       Total

(in thousands)                         Loans      Properties       NPAs

                                   ------------  ------------  ------------

NPAs BY CATEGORY

Commercial (sec.by RE)             $     21,998  $      8,880  $     30,878

Commercial construction                  11,370         5,862        17,232

Commercial & industrial                  53,009             -        53,009

                                   ------------  ------------  ------------

  Total commercial                       86,377        14,742       101,119

Residential construction                 34,472        21,561        56,033

Residential mortgage                     22,671         7,960        30,631

Consumer / installment                      964             -           964

                                   ------------  ------------  ------------

  Total NPAs                       $    144,484  $     44,263  $    188,747

                                   ============  ============  ============

  Balance as a % of Unpaid

   Principal                               77.8%         33.4%         59.3%



NPAs BY MARKET

Atlanta MSA                        $     13,350  $     12,971  $     26,321

Gainesville MSA                           5,311         2,495         7,806

North Georgia                           105,078        17,467       122,545

Western North Carolina                   13,243         7,941        21,184

Coastal Georgia                           5,600         2,354         7,954

East Tennessee                            1,902         1,035         2,937

                                   ------------  ------------  ------------

  Total NPAs                       $    144,484  $     44,263  $    188,747

                                   ============  ============  ============





NPA ACTIVITY

Beginning Balance                  $     71,065  $     47,584  $    118,649

Loans placed on non-accrual             103,365             -       103,365

Payments received                        (3,995)            -        (3,995)

Loan charge-offs                        (15,335)            -       (15,335)

Foreclosures                            (10,616)       10,616             -

Capitalized costs                             -           818           818

Note / property sales                         -       (13,787)      (13,787)

Loans held for sale                           -             -             -

Write downs                                   -        (1,772)       (1,772)

Net gains (losses) on sales                   -           804           804

                                   ------------  ------------  ------------

  Ending Balance                   $    144,484  $     44,263  $    188,747

                                   ============  ============  ============





(1) Excludes non-performing loans and foreclosed properties covered by the

 loss-sharing agreement with the FDIC, related to the acquisition of

 Southern Community Bank.

(2) The NPA activity shown for the first quarter of 2011 is presented with

 all activity related to loans transferred to the loans held for sale

 classification on one line as if those loans were transferred to held for

 sale at the beginning of the period.

(3) Includes charge-offs on loans related to United's previously announced

 asset disposition plan. Such charge-offs severely distorted charge off

 rates for the first and second quarters of 2011. A separate schedule has

 been included in this earnings release presenting the components of net

 charge-offs by loan category and geographic market for the first and

 second quarters of 2011.

(4) Annualized.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality (1)



                                           Second Quarter 2011

                                   ----------------------------------------

                                       Non-

                                    performing    Foreclosed       Total

(in thousands)                         Loans      Properties       NPAs

                                   ------------  ------------  ------------

NPAs BY CATEGORY

Commercial (sec.by RE)             $     17,764  $      6,796  $     24,560

Commercial construction                   2,782         6,764         9,546

Commercial & industrial                   1,998             -         1,998

                                   ------------  ------------  ------------

  Total commercial                       22,544        13,560        36,104

Residential construction                 22,643        24,968        47,611

Residential mortgage                     24,809         9,056        33,865

Consumer / installment                    1,069             -         1,069

                                   ------------  ------------  ------------

  Total NPAs                       $     71,065  $     47,584  $    118,649

                                   ============  ============  ============

  Balance as a % of Unpaid

   Principal                               64.5%         32.6%         46.3%



NPAs BY MARKET

Atlanta MSA                        $     14,700  $     11,239  $     25,939

Gainesville MSA                           4,505         3,174         7,679

North Georgia                            28,117        21,278        49,395

Western North Carolina                   15,153         8,953        24,106

Coastal Georgia                           5,357         2,564         7,921

East Tennessee                            3,233           376         3,609

                                   ------------  ------------  ------------

  Total NPAs                       $     71,065  $     47,584  $    118,649

                                   ============  ============  ============





NPA ACTIVITY

Beginning Balance                  $     83,769  $     54,378  $    138,147

Loans placed on non-accrual              35,911             -        35,911

Payments received                        (7,702)            -        (7,702)

Loan charge-offs                        (18,888)            -       (18,888)

Foreclosures                            (22,025)       22,025             -

Capitalized costs                             -            20            20

Note / property sales                         -       (28,939)      (28,939)

Loans held for sale                           -             -             -

Write downs                                   -        (3,118)       (3,118)

Net gains (losses) on sales                   -         3,218         3,218

                                   ------------  ------------  ------------

  Ending Balance                   $     71,065  $     47,584  $    118,649

                                   ============  ============  ============



(1) Excludes non-performing loans and foreclosed properties covered by the

 loss-sharing agreement with the FDIC, related to the acquisition of

 Southern Community Bank.

(2) The NPA activity shown for the first quarter of 2011 is presented with

 all activity related to loans transferred to the loans held for sale

 classification on one line as if those loans were transferred to held for

 sale at the beginning of the period.

(3) Includes charge-offs on loans related to United's previously announced

 asset disposition plan. Such charge-offs severely distorted charge off

 rates for the first and second quarters of 2011. A separate schedule has

 been included in this earnings release presenting the components of net

 charge-offs by loan category and geographic market for the first and

 second quarters of 2011.

(4) Annualized.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality (1)



                                            First Quarter 2011 (2)

                                   ----------------------------------------

                                       Non-

                                    performing    Foreclosed       Total

(in thousands)                         Loans      Properties       NPAs

                                   ------------  ------------  ------------

NPAs BY CATEGORY

Commercial (sec.by RE)             $     20,648  $      7,886  $     28,534

Commercial construction                   3,701        11,568        15,269

Commercial & industrial                   2,198             -         2,198

                                   ------------  ------------  ------------

  Total commercial                       26,547        19,454        46,001

Residential construction                 32,038        25,807        57,845

Residential mortgage                     23,711         9,117        32,828

Consumer / installment                    1,473             -         1,473

                                   ------------  ------------  ------------

  Total NPAs                       $     83,769  $     54,378  $    138,147

                                   ============  ============  ============

  Balance as a % of Unpaid

   Principal                               57.3%         30.3%         42.4%



NPAs BY MARKET

Atlanta MSA                        $     21,501  $     16,913  $     38,414

Gainesville MSA                           4,332         2,157         6,489

North Georgia                            30,214        23,094        53,308

Western North Carolina                   18,849         7,802        26,651

Coastal Georgia                           5,847         3,781         9,628

East Tennessee                            3,026           631         3,657

                                   ------------  ------------  ------------

  Total NPAs                       $     83,769  $     54,378  $    138,147

                                   ============  ============  ============





NPA ACTIVITY

Beginning Balance                  $    179,094  $    142,208  $    321,302

Loans placed on non-accrual              54,730             -        54,730

Payments received                        (3,550)            -        (3,550)

Loan charge-offs                        (43,969)            -       (43,969)

Foreclosures                            (17,052)       17,052             -

Capitalized costs                             -           270           270

Note / property sales                   (11,400)      (44,547)      (55,947)

Loans held for sale                     (74,084)            -       (74,084)

Write downs                                   -       (48,585)      (48,585)

Net gains (losses) on sales                   -       (12,020)      (12,020)

                                   ------------  ------------  ------------

  Ending Balance                   $     83,769  $     54,378  $    138,147

                                   ============  ============  ============



(1) Excludes non-performing loans and foreclosed properties covered by the

 loss-sharing agreement with the FDIC, related to the acquisition of

 Southern Community Bank.

(2) The NPA activity shown for the first quarter of 2011 is presented with

 all activity related to loans transferred to the loans held for sale

 classification on one line as if those loans were transferred to held for

 sale at the beginning of the period.

(3) Includes charge-offs on loans related to United's previously announced

 asset disposition plan. Such charge-offs severely distorted charge off

 rates for the first and second quarters of 2011. A separate schedule has

 been included in this earnings release presenting the components of net

 charge-offs by loan category and geographic market for the first and

 second quarters of 2011.

(4) Annualized.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality(1)



                       Third Quarter     Second Quarter     First Quarter

                           2011             2011(3)            2011(3)

                     ----------------  -----------------  -----------------

                                Net                Net                Net

                              Charge-            Charge-            Charge-

                       Net    Offs to     Net    Offs to     Net    Offs to

                     Charge-  Average   Charge-  Average   Charge-  Average

(in thousands)         Offs  Loans(4)    Offs   Loans(4)    Offs   Loans(4)

                     ------- --------  -------- --------  -------- --------

NET CHARGE-OFFS BY CATEGORY

Commercial (sec.by

 RE)                 $ 2,192      .50% $  3,259      .76% $ 48,607    11.07%

Commercial

 construction          1,625     3.54       869     1.70    49,715    76.95

Commercial &

 industrial              420      .39       523      .49     4,040     3.64

                     -------           --------           --------

  Total commercial     4,237      .71     4,651      .79   102,362    16.66

Residential

 construction          6,381     5.19     6,629     5.04    92,138    58.20

Residential mortgage   6,110     2.09     4,589     1.55    36,383    11.62

Consumer /

 installment             818     2.75       614     2.04       691     2.16

                     -------           --------           --------

  Total              $17,546     1.68  $ 16,483     1.58  $231,574    20.71

                     =======           ========           ========





NET CHARGE-OFFS BY

 MARKET

Atlanta MSA          $ 2,813      .94% $  2,920      .99% $ 56,489    17.86%

Gainesville MSA        1,804     2.64     2,318     3.36     8,616    11.93

North Georgia          8,124     2.16     6,575     1.72   123,305    29.66

Western North

 Carolina              3,608     2.31     3,522     2.21    26,447    15.61

Coastal Georgia          709      .88       815     1.02    12,003    14.80

East Tennessee           488      .78       333      .54     4,714     7.47

                     -------           --------           --------

  Total              $17,546     1.68  $ 16,483     1.58  $231,574    20.71

                     =======           ========           ========



(1) Excludes non-performing loans and foreclosed properties covered by the

 loss-sharing agreement with the FDIC, related to the acquisition of

 Southern Community Bank.

(2) The NPA activity shown for the first quarter of 2011 is presented with

 all activity related to loans transferred to the loans held for sale

 classification on one line as if those loans were transferred to held for

 sale at the beginning of the period.

(3) Includes charge-offs on loans related to United's previously announced

 asset disposition plan. Such charge-offs severely distorted charge off

 rates for the first and second quarters of 2011. A separate schedule has

 been included in this earnings release presenting the components of net

 charge-offs by loan category and geographic market for the first and

 second quarters of 2011.

(4) Annualized.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Net Charge-Off Summary(1)



                                              Second Quarter 2011

                                   -----------------------------------------

                                                    Problem

                                                     Asset

                                                  Disposition

(in thousands)                         Other         Plan          Total

                                   ------------- ------------  -------------

BY CATEGORY

Commercial (sec. by RE)            $       4,972 $     (1,713) $       3,259

Commercial construction                    2,201       (1,332)           869

Commercial & industrial                      639         (116)           523

                                   ------------- ------------  -------------

  Total commercial                         7,812       (3,161)         4,651

Residential construction                   9,471       (2,842)         6,629

Residential mortgage                       5,844       (1,255)         4,589

Consumer / installment                       625          (11)           614

                                   ------------- ------------  -------------

  Total                            $      23,752 $     (7,269) $      16,483

                                   ============= ============  =============



BY MARKET

Atlanta MSA                        $       4,875 $     (1,955) $       2,920

Gainesville MSA                            2,576         (258)         2,318

North Georgia                             10,360       (3,785)         6,575

Western North Carolina                     4,263         (741)         3,522

Coastal Georgia                            1,206         (391)           815

East Tennessee                               472         (139)           333

                                   ------------- ------------  -------------

  Total                            $      23,752 $     (7,269) $      16,483

                                   ============= ============  =============





(1) This schedule presents net charge-offs by loan type and geographic

 market separated between those charge offs related to United's first

 quarter 2011 Problem Asset Disposition Plan including losses on loans sold

 in the bulk loan sale transaction that closed on April 18, 2011 and all

 other charge-offs. The charge-offs on the bulk loan sale recognized in the

 first quarter were estimated based on indicative bids from prospective

 buyers. Actual losses were less than estimated resulting in an adjustment

 to the loss in the second quarter.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Net Charge-Off Summary(1)



                                               First Quarter 2011

                                   -----------------------------------------

                                                 Problem Asset

                                                  Disposition

(in thousands)                         Other          Plan         Total

                                   ------------- ------------- -------------

BY CATEGORY

Commercial (sec. by RE)            $       2,842 $      45,765 $      48,607

Commercial construction                    1,146        48,569        49,715

Commercial & industrial                      513         3,527         4,040

                                   ------------- ------------- -------------

  Total commercial                         4,501        97,861       102,362

Residential construction                  10,643        81,495        92,138

Residential mortgage                       4,989        31,394        36,383

Consumer / installment                       383           308           691

                                   ------------- ------------- -------------

  Total                            $      20,516 $     211,058 $     231,574

                                   ============= ============= =============



BY MARKET

Atlanta MSA                        $       3,296 $      53,193 $      56,489

Gainesville MSA                              954         7,662         8,616

North Georgia                              8,544       114,761       123,305

Western North Carolina                     6,749        19,698        26,447

Coastal Georgia                              341        11,662        12,003

East Tennessee                               632         4,082         4,714

                                   ------------- ------------- -------------

  Total                            $      20,516 $     211,058 $     231,574

                                   ============= ============= =============





(1) This schedule presents net charge-offs by loan type and geographic

 market separated between those charge offs related to United's first

 quarter 2011 Problem Asset Disposition Plan including losses on loans sold

 in the bulk loan sale transaction that closed on April 18, 2011 and all

 other charge-offs. The charge-offs on the bulk loan sale recognized in the

 first quarter were estimated based on indicative bids from prospective

 buyers. Actual losses were less than estimated resulting in an adjustment

 to the loss in the second quarter.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Net Charge-Off Summary(1)



                                             First Six Months 2011

                                   -----------------------------------------

                                                 Problem Asset

                                                  Disposition

(in thousands)                         Other          Plan         Total

                                   ------------- ------------- -------------

BY CATEGORY

Commercial (sec. by RE)            $       7,814 $      44,052 $      51,866

Commercial construction                    3,347        47,237        50,584

Commercial & industrial                    1,152         3,411         4,563

                                   ------------- ------------- -------------

  Total commercial                        12,313        94,700       107,013

Residential construction                  20,114        78,653        98,767

Residential mortgage                      10,833        30,139        40,972

Consumer / installment                     1,008           297         1,305

                                   ------------- ------------- -------------

  Total                            $      44,268 $     203,789 $     248,057

                                   ============= ============= =============



BY MARKET

Atlanta MSA                        $       8,171 $      51,238 $      59,409

Gainesville MSA                            3,530         7,404        10,934

North Georgia                             18,904       110,976       129,880

Western North Carolina                    11,012        18,957        29,969

Coastal Georgia                            1,547        11,271        12,818

East Tennessee                             1,104         3,943         5,047

                                   ------------- ------------- -------------

  Total                            $      44,268 $     203,789 $     248,057

                                   ============= ============= =============





(1) This schedule presents net charge-offs by loan type and geographic

 market separated between those charge offs related to United's first

 quarter 2011 Problem Asset Disposition Plan including losses on loans sold

 in the bulk loan sale transaction that closed on April 18, 2011 and all

 other charge-offs. The charge-offs on the bulk loan sale recognized in the

 first quarter were estimated based on indicative bids from prospective

 buyers. Actual losses were less than estimated resulting in an adjustment

 to the loss in the second quarter.









UNITED COMMUNITY BANKS, INC.

Consolidated Statement of Operations (Unaudited)



                                                        Three Months Ended

                                                           September 30,

                                                       --------------------

(in thousands, except per share data)                     2011       2010

                                                       ---------  ---------



Interest revenue:

  Loans, including fees                                $  59,294  $  68,419

  Investment securities, including tax exempt of $244,

   $279, $754 and $886                                    14,568     14,711

  Federal funds sold, commercial paper and deposits in

   banks                                                     261        719

                                                       ---------  ---------

      Total interest revenue                              74,123     83,849

                                                       ---------  ---------



Interest expense:

  Deposits:

    NOW                                                      831      1,705

    Money market                                           1,129      1,930

    Savings                                                   52         83

    Time                                                   9,086     16,099

                                                       ---------  ---------

      Total deposit interest expense                      11,098     19,817

  Federal funds purchased, repurchase agreements and

   other short-term borrowings                             1,081      1,068

  Federal Home Loan Bank advances                            441        796

  Long-term debt                                           2,642      2,665

                                                       ---------  ---------

    Total interest expense                                15,262     24,346

                                                       ---------  ---------

    Net interest revenue                                  58,861     59,503

  Provision for loan losses                               36,000     50,500

                                                       ---------  ---------

    Net interest revenue after provision for loan

     losses                                               22,861      9,003

                                                       ---------  ---------



Fee revenue:

  Service charges and fees                                 7,534      7,648

  Mortgage loan and other related fees                     1,148      2,071

  Brokerage fees                                             836        731

  Securities gains, net                                        -      2,491

  Loss from prepayment of debt                                 -     (2,233)

  Other                                                    1,980      2,153

                                                       ---------  ---------

    Total fee revenue                                     11,498     12,861

                                                       ---------  ---------

    Total revenue                                         34,359     21,864

                                                       ---------  ---------



Operating expenses:

  Salaries and employee benefits                          25,262     24,891

  Communications and equipment                             3,284      3,620

  Occupancy                                                3,794      3,720

  Advertising and public relations                         1,052      1,128

  Postage, printing and supplies                           1,036      1,019

  Professional fees                                        2,051      2,117

  Foreclosed property                                      2,813     19,752

  FDIC assessments and other regulatory charges            2,603      3,256

  Amortization of intangibles                                748        793

  Other                                                    3,877      4,610

  Goodwill impairment                                          -    210,590

  Loss on sale of nonperforming assets                         -          -

                                                       ---------  ---------

    Total operating expenses                              46,520    275,496

                                                       ---------  ---------

  Loss from continuing operations before income taxes    (12,161)  (253,632)

  Income tax benefit                                      (5,959)   (17,217)

                                                       ---------  ---------

    Net loss from continuing operations                   (6,202)  (236,415)

  Loss from discontinued operations, net of income

   taxes                                                       -          -

  Gain from sale of subsidiary, net of income taxes

   and selling costs                                           -          -

                                                       ---------  ---------

    Net loss                                              (6,202)  (236,415)

  Preferred stock dividends and discount accretion         3,019      2,581

                                                       ---------  ---------

    Net loss available to common shareholders          $  (9,221) $(238,996)

                                                       =========  =========



Loss from continuing operations per common share -

 Basic                                                 $    (.16) $  (12.62)

Loss from continuing operations per common share -

 Diluted                                                    (.16)    (12.62)

Loss per common share - Basic                               (.16)    (12.62)

Loss per common share - Diluted                             (.16)    (12.62)

Weighted average common shares outstanding - Basic        57,599     18,936

Weighted average common shares outstanding - Diluted      57,599     18,936









UNITED COMMUNITY BANKS, INC.

Consolidated Statement of Operations (Unaudited)



                                                        Nine Months Ended

                                                          September 30,

                                                     ----------------------

(in thousands, except per share data)                   2011        2010

                                                     ----------  ----------



Interest revenue:

  Loans, including fees                              $  181,359  $  211,245

  Investment securities, including tax exempt of

   $244, $279, $754 and $886                             42,964      46,743

  Federal funds sold, commercial paper and deposits

   in banks                                               1,832       2,416

                                                     ----------  ----------

      Total interest revenue                            226,155     260,404

                                                     ----------  ----------



Interest expense:

  Deposits:

    NOW                                                   3,191       5,304

    Money market                                          4,656       5,516

    Savings                                                 193         250

    Time                                                 31,813      54,015

                                                     ----------  ----------

      Total deposit interest expense                     39,853      65,085

  Federal funds purchased, repurchase agreements and

   other short-term borrowings                            3,197       3,162

  Federal Home Loan Bank advances                         1,601       2,747

  Long-term debt                                          8,169       7,994

                                                     ----------  ----------

    Total interest expense                               52,820      78,988

                                                     ----------  ----------

    Net interest revenue                                173,335     181,416

  Provision for loan losses                             237,000     187,000

                                                     ----------  ----------

    Net interest revenue after provision for loan

     losses                                             (63,665)     (5,584)

                                                     ----------  ----------



Fee revenue:

  Service charges and fees                               21,862      23,088

  Mortgage loan and other related fees                    3,594       5,151

  Brokerage fees                                          2,204       1,884

  Securities gains, net                                     838       2,552

  Loss from prepayment of debt                             (791)     (2,233)

  Other                                                   9,534       5,664

                                                     ----------  ----------

    Total fee revenue                                    37,241      36,106

                                                     ----------  ----------

    Total revenue                                       (26,424)     30,522

                                                     ----------  ----------



Operating expenses:

  Salaries and employee benefits                         76,622      72,841

  Communications and equipment                           10,006      10,404

  Occupancy                                              11,673      11,370

  Advertising and public relations                        3,347       3,523

  Postage, printing and supplies                          3,239       3,009

  Professional fees                                       7,731       6,238

  Foreclosed property                                    69,603      45,105

  FDIC assessments and other regulatory charges          11,660      10,448

  Amortization of intangibles                             2,270       2,389

  Other                                                  14,368      12,707

  Goodwill impairment                                         -     210,590

  Loss on sale of nonperforming assets                        -      45,349

                                                     ----------  ----------

    Total operating expenses                            210,519     433,973

                                                     ----------  ----------

  Loss from continuing operations before income

   taxes                                               (236,943)   (403,451)

  Income tax benefit                                    (95,872)    (73,046)

                                                     ----------  ----------

    Net loss from continuing operations                (141,071)   (330,405)

  Loss from discontinued operations, net of income

   taxes                                                      -        (101)

  Gain from sale of subsidiary, net of income taxes

   and selling costs                                          -       1,266

                                                     ----------  ----------

    Net loss                                           (141,071)   (329,240)

  Preferred stock dividends and discount accretion        8,813       7,730

                                                     ----------  ----------

    Net loss available to common shareholders        $ (149,884) $ (336,970)

                                                     ==========  ==========



Loss from continuing operations per common share -

 Basic                                               $    (4.41) $   (17.89)

Loss from continuing operations per common share -

 Diluted                                                  (4.41)     (17.89)

Loss per common share - Basic                             (4.41)     (17.82)

Loss per common share - Diluted                           (4.41)     (17.82)

Weighted average common shares outstanding - Basic       33,973      18,905

Weighted average common shares outstanding - Diluted     33,973      18,905









UNITED COMMUNITY BANKS, INC.

Consolidated Balance Sheet



(in thousands, except share and  September 30,  December 31,  September 30,

 per share data)                      2011          2010           2010

                                 -------------  ------------  -------------

                                  (unaudited)     (audited)    (unaudited)

ASSETS

Cash and due from banks          $      57,780  $     95,994  $     104,033

Interest-bearing deposits in

 banks                                 241,440       111,901         64,408

Federal funds sold, commercial

 paper and short-term

 investments                                 -       441,562        108,579

                                 -------------  ------------  -------------

  Cash and cash equivalents            299,220       649,457        277,020

Securities available for sale        1,769,083     1,224,417      1,053,518

Securities held to maturity

 (fair value $369,020, $267,988

 and $263,012)                         353,739       265,807        256,694

Mortgage loans held for sale            22,050        35,908         20,630

Loans, net of unearned income        4,109,875     4,604,126      4,759,504

  Less allowance for loan losses       146,092       174,695        174,613

                                 -------------  ------------  -------------

      Loans, net                     3,963,783     4,429,431      4,584,891

Assets covered by loss sharing

 agreements with the FDIC               83,623       131,887        144,581

Premises and equipment, net            176,839       178,239        178,842

Accrued interest receivable             19,744        24,299         24,672

Goodwill and other intangible

 assets                                  9,175        11,446         12,217

Foreclosed property                     44,263       142,208        129,964

Net deferred tax asset                 264,275       166,937        146,831

Other assets                           153,329       183,160        183,189

                                 -------------  ------------  -------------

    Total assets                 $   7,159,123  $  7,443,196  $   7,013,049

                                 =============  ============  =============

LIABILITIES AND SHAREHOLDERS'

 EQUITY

Liabilities:

  Deposits:

    Demand                       $     966,452  $    793,414  $     783,251

    NOW                              1,299,512     1,424,781      1,338,371

    Money market                     1,030,370       891,252        804,644

    Savings                            200,231       183,894        186,617

    Time:

      Less than $100,000             1,393,559     1,496,700      1,498,379

      Greater than $100,000            905,183     1,002,359      1,033,132

      Brokered                         209,998       676,772        354,243

                                 -------------  ------------  -------------

      Total deposits                 6,005,305     6,469,172      5,998,637

Federal funds purchased,

 repurchase agreements, and

 other short-term borrowings           102,883       101,067        103,780

Federal Home Loan Bank advances         40,625        55,125         55,125

Long-term debt                         120,206       150,146        150,126

Unsettled securities purchases          10,585             -              -

Accrued expenses and other

 liabilities                            31,302        32,171         42,906

                                 -------------  ------------  -------------

    Total liabilities                6,310,906     6,807,681      6,350,574

                                 -------------  ------------  -------------

Shareholders' equity:

  Preferred stock, $1 par value;

   10,000,000 shares authorized;

    Series A; $10 stated value;

     21,700 shares issued and

     outstanding                           217           217            217

    Series B; $1,000 stated

     value; 180,000 shares

     issued and outstanding            176,739       175,711        175,378

    Series D; $1,000 stated

     value; 16,613 shares issued

     and outstanding                    16,613             -              -

  Common stock, $1 par value;

   100,000,000 shares

   authorized; 41,595,692,

   18,937,001 and 18,886,660

   shares issued and outstanding        41,596        18,937         18,887

  Common stock, non-voting, $1

   par value; 30,000,000 shares

   authorized; 15,914,209 shares

   issued and outstanding               15,914             -              -

  Common stock issuable; 88,501,

   67,287 and 61,119 shares              3,590         3,894          3,961

  Capital surplus                    1,052,690       741,244        740,151

  Accumulated deficit                 (485,451)     (335,567)      (316,587)

  Accumulated other

   comprehensive income                 26,309        31,079         40,468

                                 -------------  ------------  -------------

    Total shareholders' equity         848,217       635,515        662,475

                                 -------------  ------------  -------------

    Total liabilities and

     shareholders' equity        $   7,159,123  $  7,443,196  $   7,013,049

                                 =============  ============  =============









UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended September 30,



                                                           2011

                                             ------------------------------

                                               Average                Avg.

(dollars in thousands, taxable equivalent)     Balance     Interest   Rate

                                             -----------  ---------- ------

Assets:

Interest-earning assets:

  Loans, net of unearned income (1)(2)       $ 4,193,951  $   59,394   5.62%

  Taxable securities (3)                       2,125,154      14,324   2.70

  Tax-exempt securities (1)(3)                    24,675         399   6.47

  Federal funds sold and other interest-

   earning assets                                286,194         426    .60

                                             -----------  ----------



    Total interest-earning assets              6,629,974      74,543   4.47

                                             -----------  ----------

Non-interest-earning assets:

  Allowance for loan losses                     (128,654)

  Cash and due from banks                         53,500

  Premises and equipment                         177,798

  Other assets (3)                               528,461

                                             -----------

    Total assets                             $ 7,261,079

                                             ===========



Liabilities and Shareholders' Equity:

Interest-bearing liabilities:

  Interest-bearing deposits:

    NOW                                      $ 1,258,929         831    .26

    Money market                               1,024,559       1,129    .44

    Savings                                      199,793          52    .10

    Time less than $100,000                    1,448,024       4,539   1.24

    Time greater than $100,000                   940,864       3,456   1.46

    Brokered                                     260,423       1,091   1.66

                                             -----------  ----------

      Total interest-bearing deposits          5,132,592      11,098    .86

                                             -----------  ----------



    Federal funds purchased and other

     borrowings                                  103,850       1,081   4.13

    Federal Home Loan Bank advances               40,625         441   4.31

    Long-term debt                               138,457       2,642   7.57

                                             -----------  ----------

      Total borrowed funds                       282,932       4,164   5.84

                                             -----------  ----------



      Total interest-bearing liabilities       5,415,524      15,262   1.12

                                                          ----------

Non-interest-bearing liabilities:

  Non-interest-bearing deposits                  928,788

  Other liabilities                               57,427

                                             -----------

      Total liabilities                        6,401,739

Shareholders' equity                             859,340

                                             -----------

      Total liabilities and shareholders'

       equity                                $ 7,261,079

                                             ===========



Net interest revenue                                      $   59,281

                                                          ==========

Net interest-rate spread                                               3.35%

                                                                     ======



Net interest margin (4)                                                3.55%

                                                                     ======



(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 $37.9 million in 2011 and $45.4 million in 2010 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 Three Months Ended September 30,



                                                          2010

                                             ------------------------------

                                               Average                Avg.

(dollars in thousands, taxable equivalent)     Balance     Interest   Rate

                                             -----------  ---------- ------

Assets:

Interest-earning assets:

  Loans, net of unearned income (1)(2)       $ 4,896,471  $   68,540   5.55%

  Taxable securities (3)                       1,384,682      14,431   4.17

  Tax-exempt securities (1)(3)                    26,481         459   6.93

  Federal funds sold and other interest-

   earning assets                                368,108         930   1.01

                                             -----------  ----------



    Total interest-earning assets              6,675,742      84,360   5.02

                                             -----------  ----------

Non-interest-earning assets:

  Allowance for loan losses                     (194,300)

  Cash and due from banks                        107,825

  Premises and equipment                         179,839

  Other assets (3)                               752,780

                                             -----------

    Total assets                             $ 7,521,886

                                             ===========



Liabilities and Shareholders' Equity:

Interest-bearing liabilities:

  Interest-bearing deposits:

    NOW                                      $ 1,318,779       1,705    .51

    Money market                                 781,903       1,930    .98

    Savings                                      186,123          83    .18

    Time less than $100,000                    1,541,772       7,190   1.85

    Time greater than $100,000                 1,065,789       5,506   2.05

    Brokered                                     573,606       3,403   2.35

                                             -----------  ----------

      Total interest-bearing deposits          5,467,972      19,817   1.44

                                             -----------  ----------



    Federal funds purchased and other

     borrowings                                  104,370       1,068   4.06

    Federal Home Loan Bank advances               80,220         796   3.94

    Long-term debt                               150,119       2,665   7.04

                                             -----------  ----------

      Total borrowed funds                       334,709       4,529   5.37

                                             -----------  ----------



      Total interest-bearing liabilities       5,802,681      24,346   1.66

                                                          ----------

Non-interest-bearing liabilities:

  Non-interest-bearing deposits                  789,231

  Other liabilities                               74,482

                                             -----------

      Total liabilities                        6,666,394

Shareholders' equity                             855,492

                                             -----------

      Total liabilities and shareholders'

       equity                                $ 7,521,886

                                             ===========



Net interest revenuea                                     $   60,014

                                                          ==========

Net interest-rate spread                                               3.36%

                                                                     ======



Net interest margin (4)                                                3.57%

                                                                     ======



(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 $37.9 million in 2011 and $45.4 million in 2010 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 Nine Months Ended September 30,



                                                          2011

                                             ------------------------------

                                               Average                Avg.

(dollars in thousands, taxable equivalent)     Balance     Interest   Rate

                                             -----------  ---------- ------

Assets:

Interest-earning assets:

  Loans, net of unearned income (1)(2)       $ 4,351,524  $  181,422   5.57%

  Taxable securities (3)                       1,926,365      42,210   2.92

  Tax-exempt securities (1)(3)                    25,178       1,234   6.53

  Federal funds sold and other interest-

   earning assets                                514,392       2,573    .67

                                             -----------  ----------



    Total interest-earning assets              6,817,459     227,439   4.46

                                             -----------  ----------

Non-interest-earning assets:

  Allowance for loan losses                     (145,689)

  Cash and due from banks                        102,251

  Premises and equipment                         178,694

  Other assets (3)                               539,177

                                             -----------

    Total assets                             $ 7,491,892

                                             ===========



Liabilities and Shareholders' Equity:

Interest-bearing liabilities:

  Interest-bearing deposits:

    NOW                                      $ 1,313,752       3,191    .32

    Money market                                 977,863       4,656    .64

    Savings                                      194,433         193    .13

    Time less than $100,000                    1,509,753      14,980   1.33

    Time greater than $100,000                   973,335      11,480   1.58

    Brokered                                     475,687       5,353   1.50

                                             -----------  ----------

      Total interest-bearing deposits          5,444,823      39,853    .98

                                             -----------  ----------



    Federal funds purchased and other

     borrowings                                  102,711       3,197   4.16

    Federal Home Loan Bank advances               49,442       1,601   4.33

    Long-term debt                               146,221       8,169   7.47

                                             -----------  ----------

      Total borrowed funds                       298,374      12,967   5.81

                                             -----------  ----------



      Total interest-bearing liabilities       5,743,197      52,820   1.23

                                                          ----------

Non-interest-bearing liabilities:

  Non-interest-bearing deposits                  884,417

  Other liabilities                               69,131

                                             -----------

      Total liabilities                        6,696,745

Shareholders' equity                             795,147

                                             -----------

      Total liabilities and shareholders'

       equity                                $ 7,491,892

                                             ===========



Net interest revenue                                      $  174,619

                                                          ==========

Net interest-rate spread                                               3.23%

                                                                     ======



Net interest margin (4)                                                3.42%

                                                                     ======



(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 $32.4 million in 2011 and $44.1 million in 2010 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 Nine Months Ended September 30,



                                                          2010

                                             ------------------------------

                                               Average                Avg.

(dollars in thousands, taxable equivalent)     Balance     Interest   Rate

                                             -----------  ---------- ------

Assets:

Interest-earning assets:

  Loans, net of unearned income (1)(2)       $ 5,025,739  $  211,399   5.62%

  Taxable securities (3)                       1,458,120      45,857   4.19

  Tax-exempt securities (1)(3)                    28,470       1,450   6.79

  Federal funds sold and other interest-

   earning assets                                357,881       3,202   1.19

                                             -----------  ----------



    Total interest-earning assets              6,870,210     261,908   5.09

                                             -----------  ----------

Non-interest-earning assets:

  Allowance for loan losses                     (191,888)

  Cash and due from banks                        104,446

  Premises and equipment                         180,936

  Other assets (3)                               758,903

                                             -----------

    Total assets                             $ 7,722,607

                                             ===========



Liabilities and Shareholders' Equity:

Interest-bearing liabilities:

  Interest-bearing deposits:

    NOW                                      $ 1,335,034       5,304    .53

    Money market                                 750,685       5,516    .98

    Savings                                      184,420         250    .18

    Time less than $100,000                    1,612,691      23,968   1.99

    Time greater than $100,000                 1,110,195      18,378   2.21

    Brokered                                     650,588      11,669   2.40

                                             -----------  ----------

      Total interest-bearing deposits          5,643,613      65,085   1.54

                                             -----------  ----------



    Federal funds purchased and other

     borrowings                                  103,697       3,162   4.08

    Federal Home Loan Bank advances              100,727       2,747   3.65

    Long-term debt                               150,098       7,994   7.12

                                             -----------  ----------

      Total borrowed funds                       354,522      13,903   5.24

                                             -----------  ----------



      Total interest-bearing liabilities       5,998,135      78,988   1.76

                                                          ----------

Non-interest-bearing liabilities:

  Non-interest-bearing deposits                  755,845

  Other liabilities                               64,622

                                             -----------

      Total liabilities                        6,818,602

Shareholders' equity                             904,005

                                             -----------

      Total liabilities and shareholders'

       equity                                $ 7,722,607

                                             ===========



Net interest revenue                                      $  182,920

                                                          ==========

Net interest-rate spread                                               3.33%

                                                                     ======



Net interest margin (4)                                                3.56%

                                                                     ======



(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 $32.4 million in 2011 and $44.1 million in 2010 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 Contact



Source: United Community Banks, Inc.

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