UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 23, 2008

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

Georgia		No. 0-21656		No. 58-180-7304
(State or other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

63 Highway 515, P.O. Box 398 Blairsville, Georgia		30512
(Address of Principal Executive Offices)		(Zip Code)

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

Not applicable

(Former name or former address if changed since last report.)

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

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

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

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

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02		Results of Operation and Financial Condition
		On October 23, 2008, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the quarter ended September 30, 2008 (the “News Release”). The News Release, including financial schedules, is attached as Exhibit 99.1 to this report. In connection with issuing the News Release, on October 23, 2008 at 11:00 a.m. EST, the Registrant intends to hold a conference call/webcast to discuss the News Release. The presentation of the Registrant’s financial results included operating performance measures, which are measures of performance determined by methods other than in accordance with generally accepted accounting principles, or GAAP. Management included non-GAAP operating performance measures because it believes it is useful for evaluating the Registrant’s operations and performance over periods of time, and uses operating performance measures in managing and evaluating the Registrant’s business and intends to use it in discussions about the Registrant’s operations and performance. Operating performance measures exclude the effects of a special $15 million fraud related provision for loan losses recorded in the second quarter of 2007, an additional $3 million provision for loan losses recorded in the fourth quarter of 2007, and $18 million in fraud related charge offs recorded in the fourth quarter of 2007 because management feels that the events leading to the taking of the special provisions and charge offs were isolated, non-recurring events and do not reflect overall trends in the Registrant’s earnings. Management believes these non-GAAP performance measures may provide users of the Registrant’s financial information with a meaningful measure for assessing the Registrant’s financial results and comparing those financial results to prior periods. Operating performance measures should be viewed in addition to, and not as an alternative or substitute for, the Registrant’s performance measures determined in accordance with GAAP, and is not necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Item 9.01		Financial Statements and Exhibits
		(a) Financial statements: None (b) Pro forma financial information: None (c) Exhibits:
		99.1 Press Release, dated October 23, 2008

	/s/ Rex S. Schuette
October 23, 2008	Rex S. Schuette Executive Vice President and Chief Financial Officer

Exhibit Number		Description
99.1		Press Release, dated October 23, 2008

For Immediate Release

For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
Rex_Schuette@ucbi.com

UNITED COMMUNITY BANKS, INC. ANNOUNCES
RESULTS FOR THIRD QUARTER 2008

• Third quarter provision for loan losses of $76 million

• Allowance-to-loans ratio of 1.91%, up from 1.53% in second quarter

• Net loss for third quarter

• Capital levels strong

BLAIRSVILLE, GA — October 23, 2008 — United Community Banks, Inc. (NASDAQ: UCBI) today announced a net loss of $39.9 million, or 84 cents per diluted share, for the third quarter of 2008 compared to net income of $22.5 million, or 46 cents per diluted share, for the third quarter of 2007. For the first nine months of 2008, the company had a net loss of $16.7 million, or 35 cents per diluted share, compared to net operating income of $63.0 million, or $1.36 per diluted share, for the first nine months of 2007.

“As we noted in our October 6 announcement, economic pressures on the housing market, particularly in Atlanta, had an impact on our loan portfolio in the third quarter,” stated Jimmy Tallent, president and chief executive officer. “As a result, we increased our provision for loan losses, which covered our higher net charge-offs and strengthened our allowance-to-loans ratio. Despite the challenging environment, we were able to negotiate sales of some of our largest and most impaired assets. We will continue our strategy to deal aggressively with problem credits, with a goal of emerging as quickly as possible from this difficult credit cycle.”

Loans were down $123 million to $5.83 billion from the third quarter of 2007 and down $103 million on a linked-quarter basis as the company continued to reduce its exposure to the residential construction and housing markets. At September 30, 2008, residential construction loans were $1.6 billion, or 27 percent of total loans, a decrease of $339 million from a year ago and $149 million from the second quarter. “Partially off-setting the decrease in residential construction loans, we had $49 million of growth this quarter in the residential mortgage and commercial areas of our loan portfolio,” Tallent said. “We are making good progress in rebalancing our portfolio and further reducing our exposure to residential construction.”

Total customer deposits increased $98 million from the third quarter of 2007 and were down $217 million compared to the second quarter of 2008. “We saw a similar seasonal trend last year between the second and third quarters, but some of the decrease in customer deposits this quarter certainly reflects the concerns people are having about the banking industry,” stated Tallent. “In response, we launched a company-wide customer education program about our bank’s safety and soundness and about customers’ options for FDIC insurance. This effort helped assure that all customers who came to us with concerns about their deposits could have their questions answered quickly and reassuringly.”

Taxable equivalent net interest revenue of $58.8 million reflected a decrease of $3.0 million from the second quarter of 2008 and $12.9 million from the third quarter of 2007. Taxable equivalent net interest margin was 3.17 percent compared with 3.32 percent for the second quarter of 2008 and 3.89 percent for the third quarter of 2007. “We continued to see margin compression in the third quarter,” Tallent said. “A higher level of non-performing assets, continued competitive deposit pricing, and liquidity were key contributors.”

The third quarter provision for loan losses was $76.0 million. Net charge-offs for the third quarter were $55.7 million compared with $14.3 million for the second quarter of 2008. Annualized net charge-offs to average loans was 377 basis points for the third quarter of 2008 compared with 97 basis points for the second quarter of 2008. “Net charge-offs increased significantly this quarter due to our aggressive efforts to move problem credits off our books,” said Tallent. “Specifically, we sold non-performing assets totaling $66 million. Among these were 13 of our largest non-performing assets, totaling $42 million, at the very end of the third quarter. Additionally, we had verbal commitments on three non-performing assets that were written down this quarter. The losses on these 16 sales represented a significant portion of the $55.7 million in charge-offs for the third quarter.” At quarter-end, non-performing assets totaled $177.7 million compared with $152.2 million at June 30, 2008. The ratio of non-performing assets to total assets at quarter-end and last quarter was 2.20 percent and 1.84 percent, respectively.

Fee revenue of $13.1 million was down $2.5 million from the third quarter of 2007 and down $2.0 million from the second quarter of 2008. Service charges and fees on deposit accounts of $8.2 million were up $316,000 from the third quarter of 2007 and up $214,000 from last quarter. Mortgage fees were down $708,000 from last year and $792,000 from last quarter due to the slowdown in the housing market. Consulting fees were down $654,000 from last year and $525,000 from last quarter due to weakness in the market that affected sales efforts and closing contracts. Other revenue was down $1.4 million from last year and $735,000 from the second quarter of 2008, primarily due to lower levels of earnings on bank-owned life insurance and deferred compensation plan assets.

Operating expenses of $57.0 million reflected an increase of $8.8 million from the third quarter of 2007 and $7.2 million from last quarter. Salaries and employee benefit costs of $28.6 million declined $1.1 million from last year due to lower incentive compensation. Other expenses of $15.3 million increased $10.1 million from the third quarter of 2007 and $7.7 million from last quarter primarily due to a higher level of foreclosed property costs. Foreclosed property costs, which included $8.3 million of write-downs this quarter, totaled $10.1 million for the third quarter compared with $591,000 a year ago and $2.9 million last quarter.

The board of directors approved the regular quarterly dividend that will be paid in shares of common stock on January 2, 2009 for shareholders of record as of December 10, 2008. The dividend rate is 0.7692 percent. “Each shareholder will receive one new share of common stock for every 130 shares held on December 10, 2008,” said Tallent. “This is equal to the third quarter stock dividend. The stock dividend is an appropriate balance between the company’s need to retain capital during these uncertain times and the needs of those shareholders who depend on a cash dividend. Shareholders can choose either to sell their new shares or continue to hold them, increasing their ownership at a time when the stock price is historically low.”

At September 30, 2008, the company’s capital ratios were as follows: Tier I Risk-Based Capital of 8.66 percent; Leverage of 6.69 percent; and, Total Risk-Based of 11.40 percent. Also, the tangible equity-to-assets ratio was 6.65 percent. “We will continue to seek loan and foreclosed property sales as we expect further deterioration in real estate valuations and pricing,” said Tallent. “Our strong capital levels enable us to pursue this strategy and absorb higher credit costs without impairing our financial soundness. A company cannot have too much capital in this environment, so we will be alert for cost-effective opportunities to maintain and build our capital levels. And, we recently executed on two of these opportunities. We issued $30 million of subordinated debt in August and we will close $12 million of internally offered trust preferred securities by the end of October. Both of these securities will increase our regulatory capital levels. In addition, we are exploring the Treasury’s TARP Program that would allow us to issue preferred stock.”

“We are of course disappointed with the third quarter loss,” Tallent continued. “At the same time, we firmly believe that the company’s ability to manage through this cycle, and to support our long-term success, have been strengthened by the actions taken during the quarter. As we look ahead, we expect to see ongoing credit challenges and upward pressure on the level of non-performing assets. Charge-offs will continue to be elevated as we work through our problem credits, but we certainly don’t see a repeat of the third quarter-level charge-offs in the immediate future.”

Conference Call
United Community Banks will hold a conference call on Thursday, October 23, 2008, at 11 a.m. EDT to discuss the contents of this news release and to share business highlights for the quarter. The telephone number for the conference call is (877) 591-4953 and the pass code is “UCBI.” The conference call will also be available by web cast within the Investor Relations section of the company’s web site 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 $8.1 billion and operates 27 community banks with 108 banking offices located 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 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 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 “Forward-Looking Statements” on page 4 of United Community Banks, Inc.’s annual report filed on Form 10-K with the Securities and Exchange Commission.

# # #

(Tables Follow)

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information

																						Third
		2008												2007								Quarter				For the Nine								YTD
(in thousands, except per share		Third				Second				First				Fourth				Third				2008-2007				Months Ended								2008-2007
data; taxable equivalent)		Quarter				Quarter				Quarter				Quarter				Quarter				Change				2008				2007				Change
INCOME SUMMARY
Interest revenue		$	112,510			$	116,984			$	129,041			$	140,768			$	144,884							$	358,535			$	410,150
Interest expense			53,719				55,231				62,754				71,038				73,203								171,704				205,396
Net interest revenue			58,791				61,753				66,287				69,730				71,681				(18	)%			186,831				204,754				(9	)%
Provision for loan losses (1)			76,000				15,500				7,500				26,500				3,700								99,000				11,100
Fee revenue			13,121				15,105				14,197				16,100				15,615				(16	)			42,423				46,551				(9	)
Total operating revenue			(4,088	)			61,358				72,984				59,330				83,596				(105	)			130,254				240,205				(46	)
Operating expenses			56,970				49,761				47,529				49,336				48,182				18				154,260				140,725				10
Income (loss) before taxes			(61,058	)			11,597				25,455				9,994				35,414				(272	)			(24,006	)			99,480				(124	)
Income tax expense (benefit)			(21,184	)			4,504				9,377				3,960				12,878								(7,303	)			36,523
Net operating income (loss)			(39,874	)			7,093				16,078				6,034				22,536				(277	)			(16,703	)			62,957				(127	)
Fraud loss provision, net of tax (1)			—				—				—				1,833				—								—				9,165
Net income (loss)		$	(39,874	)		$	7,093			$	16,078			$	4,201			$	22,536				(277	)		$	(16,703	)		$	53,792				(131	)
OPERATING PERFORMANCE (1)
Earnings (loss) per common share:
Basic		$	(.84	)		$	.15			$	.34			$	.13			$	.47				(279	)		$	(.35	)		$	1.38				(125	)
Diluted			(.84	)			.15				.34				.13				.46				(283	)			(.35	)			1.36				(126	)
Return on equity (2)			(19.07	)%			3.41	%			7.85	%			2.89	%			10.66	%							(2.69	)%			10.04	%
Return on tangible equity (2)(3)(4)			(30.43	)			5.86				13.16				5.06				17.54								(3.99	)			17.42
Return on assets (4)			(1.95	)			.34				.78				.29				1.11								(.27	)			1.11
Dividend payout ratio			(10.71	)			60.00				26.47				69.23				19.15								(77.14	)			19.57
GAAP PERFORMANCE MEASURES
Per common share:
Basic earnings (loss)		$	(.84	)		$	.15			$	.34			$	.09			$	.47				(279	)		$	(.35	)		$	1.18				(130	)
Diluted earnings (loss)			(.84	)			.15				.34				.09				.46				(283	)			(.35	)			1.16				(130	)
Cash / stock dividends declared			.09				.09				.09				.09				.09				0				.27				.27				0
Book value			17.12				17.75				18.50				17.70				17.51				(2	)			17.12				17.51				(2	)
Tangible book value (3)			10.48				11.03				11.76				10.92				10.81				(3	)			10.48				10.81				(3	)
Key performance ratios:
Return on equity (2)(4)			(19.07	)%			3.41	%			7.85	%			2.01	%			10.66	%							(2.69	)%			10.04	%
Return on assets			(1.95	)			.34				.78				.20				1.11								(.27	)			.95
Net interest margin (4)			3.17				3.32				3.55				3.73				3.89								3.35				3.94
Efficiency ratio			79.35				65.05				59.05				57.67				55.34								67.43				56.14
Dividend payout ratio			(10.71	)			60.00				26.47				100.00				19.15								(77.14	)			22.88
Equity to assets			10.28				10.33				10.30				10.20				10.32								10.30				9.39
Tangible equity to assets (3)			6.65				6.77				6.73				6.58				6.65								6.72				6.65
ASSET QUALITY
Allowance for loan losses		$	111,299			$	91,035			$	89,848			$	89,423			$	90,935							$	111,299			$	90,935
Net charge-offs (1)			55,736				14,313				7,075				13,012				5,236								77,124				8,822
Non-performing loans			139,266				123,786				67,728				28,219				46,783								139,266				46,783
OREO			38,438				28,378				22,136				18,039				16,554								38,438				16,554
Total non-performing assets			177,704				152,164				89,864				46,258				63,337								177,704				63,337
Allowance for loan losses to loans (1)			1.91	%			1.53	%			1.51	%			1.51	%			1.28	%							1.91	%			1.28	%
Net charge-offs to average loans (1)(4)			3.77				.97				.48				.87				.35								1.74				.21
Non-performing assets to loans and OREO			3.03				2.55				1.50				.78				1.06								3.03				1.06
Non-performing assets to total assets			2.20				1.84				1.07				.56				.77								2.20				.77
AVERAGE BALANCES
Loans		$	5,889,168			$	5,933,143			$	5,958,296			$	5,940,230			$	5,966,933				(1	)		$	5,926,731			$	5,665,314				5
Investment securities			1,454,740				1,507,240				1,485,515				1,404,796				1,308,192				11				1,482,397				1,235,183				20
Earning assets			7,384,287				7,478,018				7,491,480				7,424,992				7,332,492				1				7,451,017				6,951,573				7
Total assets			8,146,880				8,295,748				8,305,621				8,210,120				8,083,739				1				8,249,042				7,568,910				9
Deposits			6,597,339				6,461,361				6,051,069				6,151,476				6,246,319				6				6,370,753				5,987,225				6
Shareholders’ equity			837,487				856,727				855,659				837,195				834,094				0				849,912				710,950				20
Common shares — basic			47,304				47,060				46,966				47,203				48,348								47,111				45,452
Common shares — diluted			47,479				47,249				47,272				47,652				48,977								47,334				46,235
AT PERIOD END
Loans		$	5,829,937			$	5,933,141			$	5,967,839			$	5,929,263			$	5,952,749				(2	)		$	5,829,937			$	5,952,749				(2	)
Investment securities			1,400,827				1,430,588				1,508,402				1,356,846				1,296,826				8				1,400,827				1,296,826				8
Total assets			8,072,543				8,264,051				8,386,255				8,207,302				8,180,600				(1	)			8,072,543				8,180,600				(1	)
Deposits			6,689,335				6,696,456				6,175,769				6,075,951				6,154,308				9				6,689,335				6,154,308				9
Shareholders’ equity			816,880				837,890				871,452				831,902				833,761				(2	)			816,880				833,761				(2	)
Common shares outstanding			47,596				47,096				47,004				46,903				47,542								47,596				47,542

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

		2008												2007								Linked				Year over
		Third				Second				First				Fourth				Third				Quarter				Year
(in millions)		Quarter				Quarter				Quarter				Quarter				Quarter				Change(1)				Change
LOANS BY CATEGORY
Commercial (sec. by RE)		$	1,604			$	1,584			$	1,526			$	1,476			$	1,441				5	%			11	%
Commercial construction			509				522				548				527				531				(10	)			(4	)
Commercial & industrial			425				417				437				418				408				8				4
Total commercial			2,538				2,523				2,511				2,421				2,380				2				7
Residential construction			1,596				1,745				1,791				1,830				1,935				(34	)			(18	)
Residential mortgage			1,528				1,494				1,491				1,502				1,459				9				5
Consumer / installment			168				171				175				176				179				(7	)			(6	)
Total loans		$	5,830			$	5,933			$	5,968			$	5,929			$	5,953				(7	)			(2	)
LOANS BY MARKET
Atlanta MSA		$	1,800			$	1,934			$	1,978			$	2,002			$	2,057				(28	)%			(12	)%
Gainesville MSA			426				422				415				400				394				4				8
North Georgia			2,066				2,065				2,071				2,060				2,026				0				2
Western North Carolina			815				819				816				806				834				(2	)			(2	)
Coastal Georgia			458				436				439				416				402				20				14
East Tennessee			265				257				249				245				240				12				10
Total loans		$	5,830			$	5,933			$	5,968			$	5,929			$	5,953				(7	)			(2	)
RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development		$	516			$	569			$	583			$	593			$	592				(37	)%			(13	)%
Land loans			142				139				130				126				125				9				14
Lot loans			385				401				406				407				403				(16	)			(4	)
Total			1,043				1,109				1,119				1,126				1,120				(24	)			(7	)
House loans
Spec			393				450				460				473				539				(51	)%			(27	)%
Sold			160				186				212				231				276				(56	)			(42	)
Total			553				636				672				704				815				(52	)			(32	)
Total residential construction		$	1,596			$	1,745			$	1,791			$	1,830			$	1,935				(34	)			(18	)
RESIDENTIAL CONSTRUCTION — ATLANTA MSA
Dirt loans
Acquisition & development		$	185			$	232			$	252			$	258			$	268				(81	)%			(31	)%
Land loans			47				50				50				52				50				(24	)			(6	)
Lot loans			103				117				117				117				123				(48	)			(16	)
Total			335				399				419				427				441				(64	)			(24	)
House loans
Spec			227				271				271				280				322				(65	)%			(30	)%
Sold			49				58				71				77				104				(62	)			(53	)
Total			276				329				342				357				426				(64	)			(35	)
Total residential construction		$	611			$	728			$	761			$	784			$	867				(64	)			(30	)

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality

		Third Quarter 2008												Second Quarter 2008												First Quarter 2008
		Nonaccrual								Total				Nonaccrual								Total				Nonaccrual								Total
(in thousands)		Loans				OREO				NPAs				Loans				OREO				NPAs				Loans				OREO				NPAs
NPAs BY CATEGORY
Commercial (sec. by RE)		$	9,961			$	854			$	10,815			$	4,610			$	593			$	5,203			$	4,070			$	653			$	4,723
Commercial construction			2,924				375				3,299				3,027				1,859				4,886				1,514				961				2,475
Commercial & industrial			1,556				—				1,556				2,950				—				2,950				1,936				—				1,936
Total commercial			14,441				1,229				15,670				10,587				2,452				13,039				7,520				1,614				9,134
Residential construction			102,095				32,453				134,548				90,283				22,075				112,358				42,249				16,486				58,735
Residential mortgage			21,335				4,756				26,091				21,792				3,851				25,643				16,965				4,036				21,001
Consumer / installment			1,395				—				1,395				1,124				—				1,124				994				—				994
Total NPAs		$	139,266			$	38,438			$	177,704			$	123,786			$	28,378			$	152,164			$	67,728			$	22,136			$	89,864
NPAs BY MARKET
Atlanta MSA		$	80,805			$	27,011			$	107,816			$	89,327			$	15,196			$	104,523			$	37,442			$	16,121			$	53,563
Gainesville MSA			15,105				648				15,753				4,885				12				4,897				4,584				909				5,493
North Georgia			20,812				8,337				29,149				16,117				8,277				24,394				11,969				3,385				15,354
Western North Carolina			13,432				1,509				14,941				9,838				990				10,828				7,775				1,405				9,180
Coastal Georgia			3,682				601				4,283				1,575				3,871				5,446				5,266				95				5,361
East Tennessee			5,430				332				5,762				2,044				32				2,076				692				221				913
Total NPAs		$	139,266			$	38,438			$	177,704			$	123,786			$	28,378			$	152,164			$	67,728			$	22,136			$	89,864

		Third Quarter 2008								Second Quarter 2008								First Quarter 2008
						Net Charge-								Net Charge-								Net Charge-
						Offs to								Offs to								Offs to
		Net				Average				Net				Average				Net				Average
(in thousands)		Charge-Offs				Loans(1)				Charge-Offs				Loans(1)				Charge-Offs				Loans(1)
NET CHARGE-OFFS BY CATEGORY
Commercial (sec. by RE)		$	257				.06	%		$	424				.11	%		$	630				.17	%
Commercial construction			225				.17				125				.09				—				—
Commercial & industrial			1,018				.96				398				.38				304				.29
Total commercial			1,500				.24				947				.15				934				.15
Residential construction			50,228				11.94				10,343				2.36				4,665				1.03
Residential mortgage			3,332				.88				2,576				.70				1,011				.27
Consumer / installment			676				1.58				447				1.05				465				1.06
Total NPAs		$	55,736				3.77			$	14,313				.97			$	7,075				.48
NET CHARGE-OFFS BY MARKET
Atlanta MSA		$	48,313				10.08	%		$	10,682				2.22	%		$	4,647				.94	%
Gainesville MSA			1,470				1.49				360				.34				323				.32
North Georgia			4,567				.88				1,829				.36				1,280				.25
Western North Carolina			855				.42				279				.14				57				.03
Coastal Georgia			249				.22				980				.90				42				.04
East Tennessee			282				.43				183				.29				726				1.18
Total NPAs		$	55,736				3.77			$	14,313				.97			$	7,075				.48

UNITED COMMUNITY BANKS, INC.
Operating Earnings to GAAP Earnings Reconciliation
(in thousands, except per share data)

		2008												2007								For the Nine Months Ended
		Third				Second				First				Fourth				Third				September 30
		Quarter				Quarter				Quarter				Quarter				Quarter				2008				2007
Special provision for fraud related loan losses		$	—			$	—			$	—			$	3,000			$	—			$	—			$	15,000
Income tax effect of special provision			—				—				—				1,167				—				—				5,835
After-tax effect of special provision		$	—			$	—			$	—			$	1,833			$	—			$	—			$	9,165
Net Income (Loss) Reconciliation
Operating net income (loss)		$	(39,874	)		$	7,093			$	16,078			$	6,034			$	22,536			$	(16,703	)		$	62,957
After-tax effect of special provision and merger-related charges			—				—				—				(1,833	)			—				—				(9,165	)
Net income (loss) (GAAP)		$	(39,874	)		$	7,093			$	16,078			$	4,201			$	22,536			$	(16,703	)		$	53,792
Basic Earnings (Loss) Per Share Reconciliation
Basic operating earnings (loss) per share		$	(.84	)		$	.15			$	.34			$	.13			$	.47			$	(.35	)		$	1.38
Per share effect of special provision and merger-related charges			—				—				—				(.04	)			—				—				(.20	)
Basic earnings (loss) per share (GAAP)		$	(.84	)		$	.15			$	.34			$	.09			$	.47			$	(.35	)		$	1.18
Diluted Earnings (Loss) Per Share Reconciliation
Diluted operating earnings (loss) per share		$	(.84	)		$	.15			$	.34			$	.13			$	.46			$	(.35	)		$	1.36
Per share effect of special provision and merger-related charges			—				—				—				(.04	)			—				—				(.20	)
Diluted earnings (loss) per share (GAAP)		$	(.84	)		$	.15			$	.34			$	.09			$	.46			$	(.35	)		$	1.16
Provision for Loan Losses Reconciliation
Operating provision for loan losses		$	76,000			$	15,500			$	7,500			$	26,500			$	3,700			$	99,000			$	11,100
Special provision for fraud related loan losses			—				—				—				3,000				—				—				15,000
Provision for loan losses (GAAP)		$	76,000			$	15,500			$	7,500			$	29,500			$	3,700			$	99,000			$	26,100
Nonperforming Assets Reconciliation
Nonperforming assets excluding fraud-related assets		$	174,227			$	148,219			$	85,182			$	40,956			$	39,761			$	174,227			$	39,761
Fraud-related loans and OREO included in nonperforming assets			3,477				3,945				4,682				5,302				23,576				3,477				23,576
Nonperforming assets (GAAP)		$	177,704			$	152,164			$	89,864			$	46,258			$	63,337			$	177,704			$	63,337
Allowance for Loan Losses Reconciliation
Allowance for loan losses excluding special fraud-related allowance		$	111,299			$	91,035			$	89,848			$	89,423			$	75,935			$	111,299			$	75,935
Fraud-related allowance for loan losses			—				—				—				—				15,000				—				15,000
Allowance for loan losses (GAAP)		$	111,299			$	91,035			$	89,848			$	89,423			$	90,935			$	111,299			$	90,935
Net Charge Offs Reconciliation
Net charge offs excluding charge off of fraud-related loans		$	55,736			$	14,313			$	7,075			$	13,012			$	5,236			$	77,124			$	8,822
Fraud-related loans charged off			—				—				—				18,000				—				—				—
Net charge offs (GAAP)		$	55,736			$	14,313			$	7,075			$	31,012			$	5,236			$	77,124			$	8,822
Allowance for Loan Losses to Loans Ratio Reconciliation
Allowance for loan losses to loans ratio excluding fraud-related allowance			1.91	%			1.53	%			1.51	%			1.51	%			1.28	%			1.91	%			1.28	%
Portion of allowance assigned to fraud-related loans			—				—				—				—				.25				—				.25
Allowance for loan losses to loans ratio (GAAP)			1.91	%			1.53	%			1.51	%			1.51	%			1.53	%			1.91	%			1.53	%
Nonperforming Assets to Total Assets Ratio Reconciliation
Nonperforming assets to total assets ratio excluding fraud-related assets			2.16	%			1.79	%			1.02	%			.50	%			.49	%			2.16	%			.49	%
Fraud-related nonperforming assets			.04				.05				.05				.06				.28				.04				.28
Nonperforming assets to total assets ratio (GAAP)			2.20	%			1.84	%			1.07	%			.56	%			.77	%			2.20	%			.77	%
Net Charge Offs to Average Loans Ratio Reconciliation
Net charge offs to average loans ratio excluding fraud-related loans			3.77	%			.97	%			.48	%			.87	%			.35	%			1.74	%			.21	%
Charge offs of fraud-related loans			—				—				—				1.20				—				—				—
Net charge offs to average loans ratio (GAAP)			3.77	%			.97	%			.48	%			2.07	%			.35	%			1.74	%			.21	%