SEC Filing | United Community Banks, Inc.

View:

Download DOC

Download PDF

Download XLS

Form 8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 28, 2011

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.)


125 Highway 515 East, 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 January 28, 2011, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the quarter ended December 31, 2010 (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 January 28, 2011 at 11:00 a.m. EST, the Registrant intends to hold a conference call/webcast to discuss the News Release. In addition to the News Release, during the conference call the Registrant intends to discuss certain financial information contained in the December 31, 2010 Investor Presentation (the “Investor Presentation”) which will be posted to the Registrant’s website. The Investor Presentation is attached as Exhibit 99.2 to this report.

The presentation of the Registrant’s financial results included operating performance measures and core earnings measures, which are measures of performance determined by methods other than in accordance with generally accepted accounting principles, or GAAP. Management included non-GAAP operating performance and core earnings measures because it believes they are useful for evaluating the Registrant’s operations and performance over periods of time, and uses operating performance and core earnings measures in managing and evaluating the Registrant’s business and intends to refer to them in discussions about the Registrant’s operations and performance. Operating performance measures for the fourth quarter of 2010 exclude the effects of an $11.75 million pre-tax partial recovery of a 2007 fraud loss and third quarter 2010 operating performance measures exclude the effects of a $210.6 million non-cash goodwill impairment charge. Operating performance measures for 2009 exclude the effects of $25 million and $70 million, in non-cash goodwill impairment charges in the third and first quarters, respectively, (bringing the total goodwill impairment charge for the year 2009 to $95 million), $2.9 million in non-recurring severance charges related to a reduction in workforce recorded in the first quarter and an $11.4 million gain in the second quarter from the acquisition of Southern Community Bank that resulted from a bargain purchase. These items have been excluded from operating performance measures because management believes that the items are non-recurring in nature and do not reflect overall trends in the Registrant’s earnings. Additionally, core earnings measures exclude credit related costs such as the provision for loan losses, the loss from sale of nonperforming assets to Fletcher International in the second quarter of 2010 and foreclosed property expense, securities gains and losses, income taxes and other items of a non-recurring nature. Core earnings are useful in evaluating the underlying earnings performance trends of the Registrant. Management believes these non-GAAP performance measures may provide users of the Registrant’s financial information with a meaningful measure for assessing the Registrant’s financial results and comparing those financial results to prior periods.

Operating performance and core earnings 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 January 28, 2011
	99.2			Investor Presentation, Fourth Quarter 2010

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


		*/s/ Rex S. Schuette* Rex S. Schuette
		Executive Vice President and
January 28, 2011		Chief Financial Officer

Exhibit 99.1

Exhibit 99.1

(LOGO)

For Immediate Release

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

UNITED COMMUNITY BANKS, INC. REPORTS
NET OPERATING LOSS OF $23.6 MILLION FOR FOURTH QUARTER 2010

•

Net operating loss lowest since second quarter 2009

•

Credit measures continue to improve; nonperforming assets lowest since 2008

•

Allowance-to-loans ratio increases to 3.79 percent

•

Core transaction deposits up 12 percent annualized

BLAIRSVILLE, GA – January 28, 2011 – United Community Banks, Inc. (NASDAQ: UCBI) today reported a net operating loss from continuing operations of $23.6 million, or 28 cents per diluted share, for the fourth quarter of 2010. The fourth quarter operating loss excludes a partial recovery of $11.8 million, or eight cents per diluted share, from a previously incurred fraud loss related to two failed real estate developments in western North Carolina. Including the recovery, the fourth quarter net loss was $16.4 million, or 20 cents per diluted share.

For 2010 and 2009, United’s net operating losses from continuing operations were $143.4 million and $139.1 million, or $1.62 and $2.47 per diluted share, respectively. In the attached schedules, operating losses from continuing operations for all periods exclude consulting fee revenue and operating expenses of Brintech, Inc. during the periods it was owned by United. Also excluded is the gain from the sale of Brintech in the first quarter of 2010. The net income or loss from Brintech’s discontinued operations is reported as a separate line in the consolidated statement of income.

- 1 -

In addition to excluding the fourth quarter partial recovery of the fraud loss from western North Carolina, the net operating loss from continuing operations for the full year 2010 excludes the $210.6 million non-cash charge for goodwill impairment. Including the partial recovery and goodwill impairment charge, United’s net loss for the full year 2010 was $345.6 million, or $3.76 per diluted share.

The net operating loss from continuing operations for the full year 2009 excludes $95 million in non-cash charges for impairment of goodwill and $1.8 million in severance costs, net of taxes, relating to a reduction in work force. Also excluded is the $7.1 million gain, net of taxes, on the acquisition of Southern Community Bank in the second quarter 2009. These charges and gains were considered non-operating items and therefore were excluded from operating earnings. Including these non-operating items, United’s net loss for 2009 was $228.3 million, or $3.95 per diluted share.

“We are encouraged by the improving trends in our credit quality indicators,” said Jimmy Tallent, president and chief executive officer. “Credit quality improved from the third quarter in every measure, with nonperforming assets, net charge-offs and provision for loan losses falling to their lowest levels in many quarters. At the same time, the housing market and general economy within our footprint remain weak, so we look toward the future with guarded optimism.”

Total loans were $4.6 billion at quarter-end, down $156 million from the end of the third quarter and down $547 million from a year ago. Residential construction loans were $695 million, or 15 percent of total loans, down $69 million from the end of the third quarter and down $355 million from a year ago. The decline in loans was net of new lending that totaled $78 million during the fourth quarter and $320 million for the full year, primarily commercial and small business loans in metropolitan Atlanta and north Georgia.

- 2 -

Taxable equivalent net interest revenue of $60.1 million was $3.8 million lower than the fourth quarter of 2009 due to the lower level of interest-earning assets. Average loans and securities declined $589 million and $175 million, respectively, from the fourth quarter of 2009. The net interest margin was 3.58 percent for the fourth quarter of 2010, up 18 basis points from a year ago and up one basis point from the third quarter.

“While remaining sharply focused on deposit and loan pricing, we’ve maintained liquidity significantly above historical levels in light of the uncertain times,” Tallent said. “This excess liquidity lowered our margin by 30 basis points in the fourth quarter and 19 basis points in the third quarter.”

“We grew core transaction deposits for the eighth consecutive quarter,” Tallent continued. “The fourth quarter increase was $77 million, 12 percent on an annualized basis,” Tallent continued. “This brought our 2010 core deposit growth to $291 million, a 12 percent increase.”

“We continue to see tremendous core deposit growth opportunities in our markets due to disruption in the banking environment,” Tallent said. “We have launched a new core deposit marketing initiative that stresses our strong customer service culture, and is already showing great promise.”

The fourth quarter 2010 operating provision for loan losses decreased from $50.5 million in the third quarter and from $90 million a year ago, to $47.8 million in the fourth quarter. Operating net charge-offs continued their downward trend to $47.7 million in the fourth quarter, $2.3 million less than the third quarter and $36.9 million less than the fourth quarter of 2009. The operating provision for loan losses and operating net charge-offs for the fourth quarter of 2010 exclude the partial recovery of $11.8 million from the fraud loss incurred in 2007 in western North Carolina.

Non-performing assets decreased to $321 million at quarter-end from $348 million at September 30 and from $385 million at December 31, 2009.

- 3 -

Operating fee revenue was $12.4 million in the fourth quarter of 2010, compared to $14.4 million a year ago. The fourth quarter of 2009 included $2.0 million in securities gains which accounts for the decrease. Service charges and fees of $7.0 million were down $1.2 million, due primarily to lower overdraft fees resulting from recent regulatory changes that require customers to give consent before using United’s overdraft services. Mortgage loan fees were up $217,000 from a year ago, to $1.9 million, due to higher refinancing activity resulting from low long-term interest rates. Other fee revenue increased $676,000 to $2.8 million, due primarily to the acceleration of deferred gains relating to the ineffectiveness of terminated cash flow hedges on certain prime-based loans.

Fourth quarter operating expenses were $64.9 million, up $4.8 million from a year ago due to higher foreclosed property costs. Foreclosed property costs were $20.6 million, a $6.2 million increase from the fourth quarter of 2009 reflecting additional losses from declining real estate values. Fourth quarter 2010 foreclosed property costs, including maintenance, property taxes and other related costs were even with last year at $4.8 million. Losses relating to the sale of properties totaled $7.8 million and write-downs of other foreclosed properties totaled $8.0 million. The losses and write-downs increased $451,000 and $5.8 million, respectively, compared to fourth quarter 2009, which helped expedite sales of foreclosed properties. Salary and benefit costs totaled $23.8 million, a decrease of $284,000 from last year due primarily to lower stock-based compensation expense. Other operating expenses decreased $530,000 from a year ago, to $3.9 million, due primarily to lower ATM network costs and appraisal fees.

The effective tax rate for the fourth quarter of 2010 was 43 percent, up slightly from the 40 percent in the third quarter due to the statute expiration of certain state tax returns and resulting release of related reserves. Absent the tax reserve adjustment, the effective tax rate would have been 40 percent, which is the expected effective rate for 2011.

As of December 31, 2010, the capital ratios for United were as follows: Tier 1 Risk Based of 9.7 percent; Leverage of 6.8 percent; and, Total Risk Based of 12.1 percent. The quarterly average tangible equity-to-assets ratio was 8.8 percent and the tangible common equity-to-assets ratio was 6.4 percent.

- 4 -

“The last three years have been difficult, to state the obvious,” Tallent said. “We are seeing encouraging signs, however; our credit metrics are moving in the right direction with several approaching their lowest levels since the beginning of the credit cycle in 2008. Core customer deposit growth has been the strongest in our history and we’ve made great strides increasing the net interest margin with deference to the need to maintain higher-than-normal levels of liquidity. We’ve rebalanced our loan portfolio by shrinking residential construction loans to 15 percent of the portfolio from a high of 35 percent.”

“As to capital, we exceed regulatory well-capitalized levels but continue to evaluate alternatives to further strengthen our position,” Tallent said. “We believe this course is prudent in light of the operating and regulatory environment, and are very pleased that these efforts have advanced substantially. We expect to announce a capital plan by the end of the first quarter of 2011.”

Conference Call
United Community Banks will hold a conference call today, Friday, January 28, 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 password ‘35075160.’ 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 $7.4 billion and operates 27 community banks with 106 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.

- 5 -

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 3 of United Community Banks, Inc.’s annual report filed on Form 10-K with the Securities and Exchange Commission.

# # #

- 6 -

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information


																Fourth
	2010												2009			Quarter			For the Twelve						YTD
(in thousands, except per share	Fourth			Third			Second			First			Fourth			2010-2009			Months Ended						2010-2009
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			Change			2010			2009			Change
INCOME SUMMARY
Interest revenue	$	81,215		$	84,360		$	87,699		$	89,849		$	97,481					$	343,123		$	404,961
Interest expense		21,083			24,346			26,072			28,570			33,552						100,071			159,734

Net interest revenue		60,132			60,014			61,627			61,279			63,929			(6	)%		243,052			245,227			(1	)%
Operating provision for loan losses ⁽¹⁾		47,750			50,500			61,500			75,000			90,000						234,750			310,000
Operating fee revenue⁽²⁾		12,442			12,861			11,579			11,666			14,447			(14	)		48,548			50,964			(5	)

Total operating revenue ⁽¹⁾⁽²⁾		24,824			22,375			11,706			(2,055	)		(11,624	)					56,850			(13,809	)
Operating expenses⁽³⁾		64,918			64,906			58,308			54,820			60,126			8			242,952			217,050			12
Loss on sale of nonperforming assets		—			—			45,349			—			—						45,349			—

Operating loss from continuing operations before taxes		(40,094	)		(42,531	)		(91,951	)		(56,875	)		(71,750	)		44			(231,451	)		(230,859	)
Operating income tax benefit		(16,520	)		(16,706	)		(32,419	)		(22,417	)		(31,687	)					(88,062	)		(91,754	)

Net operating loss from continuing operations ^(1)(2)(3)		(23,574	)		(25,825	)		(59,532	)		(34,458	)		(40,063	)		41			(143,389	)		(139,105	)		(3	)
Gain from acquisition, net of tax expense		—			—			—			—			—						—			7,062
Noncash goodwill impairment charges		—			(210,590	)		—			—			—						(210,590	)		(95,000	)
Severance costs, net of tax benefit		—			—			—			—			—						—			(1,797	)
Partial reversal of fraud loss provision, net of tax expense		7,179			—			—			—			—						7,179			—
(Loss) income from discontinued operations		—			—			—			(101	)		228						(101	)		513
Gain from sale of subsidiary, net of income taxes and selling costs		—			—			—			1,266			—						1,266			—

Net loss		(16,395	)		(236,415	)		(59,532	)		(33,293	)		(39,835	)		59			(345,635	)		(228,327	)		(51	)
Preferred dividends and discount accretion		2,586			2,581			2,577			2,572			2,567						10,316			10,242

Net loss available to common shareholders	$	(18,981	)	$	(238,996	)	$	(62,109	)	$	(35,865	)	$	(42,402	)				$	(355,951	)	$	(238,569	)


PERFORMANCE MEASURES
Per common share:
Diluted operating loss from continuing operations^(1)(2)(3)	$	(.28	)	$	(.30	)	$	(.66	)	$	(.39	)	$	(.45	)		38		$	(1.62	)	$	(2.47	)		34
Diluted loss from continuing operations		(.20	)		(2.52	)		(.66	)		(.39	)		(.45	)		56			(3.77	)		(3.96	)		5
Diluted loss		(.20	)		(2.52	)		(.66	)		(.38	)		(.45	)		56			(3.76	)		(3.95	)		5
Stock dividends declared⁽⁷⁾		—			—			—			—			—						—		3 for 130
Book value		4.84			5.14			7.71			7.95			8.36			(42	)		4.84			8.36			(42	)
Tangible book value⁽⁵⁾		4.76			5.05			5.39			5.62			6.02			(21	)		4.76			6.02			(21	)
Key performance ratios:
Return on equity⁽⁴⁾⁽⁶⁾		(17.16	)%		(148.04	)%		(35.89	)%		(20.10	)%		(22.08	)%					(57.08	)%		(34.40	)%
Return on assets⁽⁶⁾		(.89	)		(12.47	)		(3.10	)		(1.70	)		(1.91	)					(4.53	)		(2.76	)
Net interest margin⁽⁶⁾		3.58			3.57			3.60			3.49			3.40						3.56			3.29
Operating efficiency ratio from continuing operations⁽²⁾⁽³⁾		89.45			89.38			141.60			75.22			78.74						98.98			73.97
Equity to assets		8.85			11.37			11.84			11.90			11.94						11.01			11.12
Tangible equity to assets⁽⁵⁾		8.75			9.19			9.26			9.39			9.53						9.15			8.33
Tangible common equity to assets⁽⁵⁾		6.35			6.78			6.91			7.13			7.37						6.80			6.15
Tangible common equity to risk-weighted assets⁽⁵⁾		9.05			9.60			9.97			10.03			10.39						9.05			10.39

ASSET QUALITY *
Non-performing loans	$	179,094		$	217,766		$	224,335		$	280,802		$	264,092					$	179,094		$	264,092
Foreclosed properties		142,208			129,964			123,910			136,275			120,770						142,208			120,770

Total non-performing assets (NPAs)		321,302			347,730			348,245			417,077			384,862						321,302			384,862
Allowance for loan losses		174,695			174,613			174,111			173,934			155,602						174,695			155,602
Operating net charge-offs ⁽¹⁾		47,668			49,998			61,323			56,668			84,585						215,657			276,669
Allowance for loan losses to loans		3.79	%		3.67	%		3.57	%		3.48	%		3.02	%					3.79	%		3.02	%
Operating net charge-offs to average loans⁽¹⁾⁽⁶⁾		4.03			4.12			4.98			4.51			6.37						4.42			5.03
NPAs to loans and foreclosed properties		6.77			7.11			6.97			8.13			7.30						6.77			7.30
NPAs to total assets		4.32			4.96			4.55			5.32			4.81						4.32			4.81

AVERAGE BALANCES ($ in millions)
Loans	$	4,768		$	4,896		$	5,011		$	5,173		$	5,357			(11	)	$	4,961		$	5,548			(11	)
Investment securities		1,354			1,411			1,532			1,518			1,529			(11	)		1,453			1,656			(12	)
Earning assets		6,680			6,676			6,854			7,085			7,487			(11	)		6,822			7,465			(9	)
Total assets		7,338			7,522			7,704			7,946			8,287			(11	)		7,626			8,269			(8	)
Deposits		6,294			6,257			6,375			6,570			6,835			(8	)		6,373			6,713			(5	)
Shareholders’ equity		649			855			912			945			989			(34	)		840			920			(9	)
Common shares — basic (thousands)		94,918			94,679			94,524			94,390			94,219						94,624			60,374
Common shares — diluted (thousands)		94,918			94,679			94,524			94,390			94,219						94,624			60,374

AT PERIOD END ($ in millions)
Loans *	$	4,604		$	4,760		$	4,873		$	4,992		$	5,151			(11	)	$	4,604		$	5,151			(11	)
Investment securities		1,490			1,310			1,488			1,527			1,530			(3	)		1,490			1,530			(3	)
Total assets		7,443			7,013			7,652			7,837			8,000			(7	)		7,443			8,000			(7	)
Deposits		6,469			5,999			6,330			6,488			6,628			(2	)		6,469			6,628			(2	)
Shareholders’ equity		636			662			904			926			962			(34	)		636			962			(34	)
Common shares outstanding (thousands)		94,685			94,433			94,281			94,176			94,046						94,685			94,046


⁽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 2010. Operating charge-offs also exclude the $11.8 million related partial recovery of the previously charged off amount.

⁽²⁾		Excludes the gain from acquisition of $11.4 million, (income tax expense of $4.3 million) in the second quarter of 2009 and revenue generated by discontinued operations in all periods presented.

⁽³⁾		Excludes goodwill impairment charges of $211 million in the third quarter of 2010 and $25 million and $70 million in the third and first quarters of 2009, respectively, severance costs of $2.9 million, (income tax benefit of $1.1 million) in the first quarter of 2009 and expenses relating to discontinued operations for all periods presented.

⁽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.

⁽⁷⁾		Number of new shares issued for shares currently held.

*		Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.

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


(in thousands, except per share data;
taxable equivalent)	2010			2009			2008			2007			2006
INCOME SUMMARY
Net interest revenue	$	243,052		$	245,227		$	238,704		$	274,483		$	237,880
Operating provision for loan losses ⁽¹⁾		234,750			310,000			184,000			37,600			14,600
Operating fee revenue ⁽²⁾		48,548			50,964			46,081			53,701			41,671

Total operating revenue (¹⁾⁽²⁾		56,850			(13,809	)		100,785			290,584			264,951
Operating expenses ⁽³⁾		242,952			217,050			200,335			181,730			155,306
Loss on sale of nonperforming assets		45,349			—			—			—			—

Operating (loss) income from continuing operations before taxes		(231,451	)		(230,859	)		(99,550	)		108,854			109,645
Operating income taxes		(88,062	)		(91,754	)		(35,651	)		40,266			41,249

Net operating (loss) income from continuing operations		(143,389	)		(139,105	)		(63,899	)		68,588			68,396
Gain from acquisition, net of tax		—			7,062			—			—			—
Noncash goodwill impairment charges		(210,590	)		(95,000	)		—			—			—
Severance cost, net of tax benefit		—			(1,797	)		—			—			—
Fraud loss provision and subsequent recovery, net of tax benefit		7,179			—			—			(10,998	)		—
Net (loss) income from discontinued operations		(101	)		513			449			403			419
Gain from sale of subsidiary, net of income taxes and selling costs		1,266			—			—			—			—

Net (loss) income		(345,635	)		(228,327	)		(63,450	)		57,993			68,815
Preferred dividends and discount accretion		10,316			10,242			724			18			19

Net (loss) income available to common shareholders	$	(355,951	)	$	(238,569	)	$	(64,174	)	$	57,975		$	68,796


PERFORMANCE MEASURES
Per common share:
Diluted operating (loss) earnings from continuing operations ^(1)(2)(3)	$	(1.62	)	$	(2.47	)	$	(1.36	)	$	1.47		$	1.65
Diluted (loss) earnings from continuing operations		(3.77	)		(3.96	)		(1.36	)		1.24			1.65
Diluted (loss) earnings		(3.76	)		(3.95	)		(1.35	)		1.24			1.66
Cash dividends declared (rounded)		—			—			.18			.36			.32
Stock dividends declared⁽⁶⁾		—			3 for 130			2 for 130			—			—
Book value		4.84			8.36			16.95			17.73			14.37
Tangible book value⁽⁵⁾		4.76			6.02			10.39			10.94			10.57

Key performance ratios:
Return on equity ⁽⁴⁾		(57.08	)%		(34.40	)%		(7.82	)%		7.79	%		13.28	%
Return on assets		(4.53	)		(2.76	)		(.76	)		.75			1.09
Net interest margin		3.56			3.29			3.18			3.88			4.05
Operating efficiency ratio from continuing operations ⁽²⁾⁽³⁾		98.98			73.97			70.00			55.53			55.30
Equity to assets		11.01			11.12			10.22			9.61			8.06
Tangible equity to assets ⁽⁵⁾		9.15			8.33			6.67			6.63			6.32
Tangible common equity to assets ⁽⁵⁾		6.80			6.15			6.57			6.63			6.32
Tangible common equity to risk-weighted assets⁽⁵⁾		9.05			10.39			8.34			8.21			8.09

ASSET QUALITY *
Non-performing loans	$	179,094		$	264,092		$	190,723		$	28,219		$	12,458
Foreclosed properties		142,208			120,770			59,768			18,039			1,196

Total non-performing assets (NPAs)		321,302			384,862			250,491			46,258			13,654
Allowance for loan losses		174,695			155,602			122,271			89,423			66,566
Operating net charge-offs⁽¹⁾		215,657			276,669			151,152			21,834			5,524
Allowance for loan losses to loans		3.79	%		3.02	%		2.14	%		1.51	%		1.24	%
Operating net charge-offs to average loans⁽¹⁾		4.42			5.03			2.57			.38			.12
NPAs to loans and foreclosed properties		6.77			7.30			4.35			.78			.25
NPAs to total assets		4.32			4.81			2.92			.56			.19

AVERAGE BALANCES ($ in millions)
Loans	$	4,961		$	5,548		$	5,891		$	5,735		$	4,801
Investment securities		1,453			1,656			1,489			1,278			1,042
Earning assets		6,822			7,465			7,504			7,071			5,877
Total assets		7,626			8,269			8,319			7,731			6,287
Deposits		6,373			6,713			6,524			6,029			5,017
Shareholders’ equity		840			920			850			743			507
Common shares — Basic (thousands)		94,624			60,374			47,369			45,948			40,413
Common shares — Diluted (thousands)		94,624			60,374			47,369			46,593			41,575

AT YEAR END ($ in millions)
Loans *	$	4,604		$	5,151		$	5,705		$	5,929		$	5,377
Investment securities		1,490			1,530			1,617			1,357			1,107
Total assets		7,443			8,000			8,592			8,207			7,101
Deposits		6,469			6,628			7,004			6,076			5,773
Shareholders’ equity		636			962			989			832			617
Common shares outstanding (thousands)		94,685			94,046			48,009			46,903			42,891


⁽¹⁾		Excludes pre-tax provision for fraud-related loan losses and related charge-offs of $18 million, net of income tax benefit of $7 million in 2007 and subsequent recovery of $11.8 million, net of tax expense of $4.6 million in 2010.

⁽²⁾		Excludes the gain from acquisition of $11.4 million, net of income tax expense of $4.3 million in 2009.

⁽³⁾		Excludes the goodwill impairment charges of $211 million and $95 million in 2010 and 2009, respectively, and severance costs of $2.9 million, net of income tax benefit of $1.1 million in 2009.

⁽⁴⁾		Net (loss) income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss).

⁽⁵⁾		Excludes effect of acquisition related intangibles and associated amortization.

⁽⁶⁾		Number of new shares issued for shares currently held.

*		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


	2010												2009
(in thousands, except per share	Fourth			Third			Second			First			Fourth			For the Twelve Months Ended
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			2010			2009			2008			2007			2006

Interest revenue reconciliation
Interest revenue — taxable equivalent	$	81,215		$	84,360		$	87,699		$	89,849		$	97,481		$	343,123		$	404,961		$	466,969		$	550,917		$	446,695
Taxable equivalent adjustment		(497	)		(511	)		(500	)		(493	)		(601	)		(2,001	)		(2,132	)		(2,261	)		(1,881	)		(1,868	)

Interest revenue (GAAP)	$	80,718		$	83,849		$	87,199		$	89,356		$	96,880		$	341,122		$	402,829		$	464,708		$	549,036		$	444,827


Net interest revenue reconciliation
Net interest revenue — taxable equivalent	$	60,132		$	60,014		$	61,627		$	61,279		$	63,929		$	243,052		$	245,227		$	238,704		$	274,483		$	237,880
Taxable equivalent adjustment		(497	)		(511	)		(500	)		(493	)		(601	)		(2,001	)		(2,132	)		(2,261	)		(1,881	)		(1,868	)

Net interest revenue (GAAP)	$	59,635		$	59,503		$	61,127		$	60,786		$	63,328		$	241,051		$	243,095		$	236,443		$	272,602		$	236,012


Provision for loan losses reconciliation
Operating provision for loan losses	$	47,750		$	50,500		$	61,500		$	75,000		$	90,000		$	234,750		$	310,000		$	184,000		$	37,600		$	14,600
Provision for special fraud-related loan loss and partial recovery		(11,750	)		—			—			—			—			(11,750	)		—			—			18,000			—

Provision for loan losses (GAAP)	$	36,000		$	50,500		$	61,500		$	75,000		$	90,000		$	223,000		$	310,000		$	184,000		$	55,600		$	14,600


Fee revenue reconciliation
Operating fee revenue	$	12,442		$	12,861		$	11,579		$	11,666		$	14,447		$	48,548		$	50,964		$	46,081		$	53,701		$	41,671
Gain from acquisition		—			—			—			—			—			—			11,390			—			—			—

Fee revenue (GAAP)	$	12,442		$	12,861		$	11,579		$	11,666		$	14,447		$	48,548		$	62,354		$	46,081		$	53,701		$	41,671


Total revenue reconciliation
Total operating revenue	$	24,824		$	22,375		$	11,706		$	(2,055	)	$	(11,624	)	$	56,850		$	(13,809	)	$	100,785		$	290,584		$	264,951
Taxable equivalent adjustment		(497	)		(511	)		(500	)		(493	)		(601	)		(2,001	)		(2,132	)		(2,261	)		(1,881	)		(1,868	)
Gain from acquisition		—			—			—			—			—			—			11,390			—			—			—
Provision for special fraud-related loan loss and partial recovery		11,750			—			—			—			—			11,750			—			—			(18,000	)		—

Total revenue (GAAP)	$	36,077		$	21,864		$	11,206		$	(2,548	)	$	(12,225	)	$	66,599		$	(4,551	)	$	98,524		$	270,703		$	263,083


Expense reconciliation
Operating expense	$	64,918		$	64,906		$	103,657		$	54,820		$	60,126		$	288,301		$	217,050		$	200,335		$	181,730		$	155,306
Noncash goodwill impairment charge		—			210,590			—			—			—			210,590			95,000			—			—			—
Severance costs		—			—			—			—			—			—			2,898			—			—			—

Operating expense (GAAP)	$	64,918		$	275,496		$	103,657		$	54,820		$	60,126		$	498,891		$	314,948		$	200,335		$	181,730		$	155,306


(Loss) income from continuing operations before taxes reconciliation
Operating (loss) income from continuing operations before taxes	$	(40,094	)	$	(42,531	)	$	(91,951	)	$	(56,875	)	$	(71,750	)	$	(231,451	)	$	(230,859	)	$	(99,550	)	$	108,854		$	109,645
Taxable equivalent adjustment		(497	)		(511	)		(500	)		(493	)		(601	)		(2,001	)		(2,132	)		(2,261	)		(1,881	)		(1,868	)
Gain from acquisition		—			—			—			—			—			—			11,390			—			—			—
Noncash goodwill impairment charge		—			(210,590	)		—			—			—			(210,590	)		(95,000	)		—			—			—
Severance costs		—			—			—			—			—			—			(2,898	)		—			—			—
Provision for special fraud-related loan loss and partial recovery		11,750			—			—			—			—			11,750			—			—			(18,000	)		—

(Loss) income from continuing operations before taxes (GAAP)	$	(28,841	)	$	(253,632	)	$	(92,451	)	$	(57,368	)	$	(72,351	)	$	(432,292	)	$	(319,499	)	$	(101,811	)	$	88,973		$	107,777


Income tax (benefit) expense reconciliation
Operating income tax (benefit) expense	$	(16,520	)	$	(16,706	)	$	(32,419	)	$	(22,417	)	$	(31,687	)	$	(88,062	)	$	(91,754	)	$	(35,651	)	$	40,266		$	41,249
Taxable equivalent adjustment		(497	)		(511	)		(500	)		(493	)		(601	)		(2,001	)		(2,132	)		(2,261	)		(1,881	)		(1,868	)
Gain from acquisition, tax expense		—			—			—			—			—			—			4,328			—			—			—
Severance costs, tax benefit		—			—			—			—			—			—			(1,101	)		—			—			—
Provision for special fraud-related loan loss and partial recovery, tax		4,571			—			—			—			—			4,571			—			—			(7,002	)		—

Income tax (benefit) expense (GAAP)	$	(12,446	)	$	(17,217	)	$	(32,919	)	$	(22,910	)	$	(32,288	)	$	(85,492	)	$	(90,659	)	$	(37,912	)	$	31,383		$	39,381


Diluted (loss) income from continuing operations per common share reconciliation
Diluted operating (loss) income from continuing operations per common share	$	(.28	)	$	(.30	)	$	(.66	)	$	(.39	)	$	(.45	)	$	(1.62	)	$	(2.47	)	$	(1.36	)	$	1.47		$	1.65
Gain from acquisition		—			—			—			—			—			—			.12			—			—			—
Noncash goodwill impairment charge		—			(2.22	)		—			—			—			(2.23	)		(1.58	)		—			—			—
Severance costs		—			—			—			—			—			—			(.03	)		—			—			—
Provision for special fraud-related loan loss and partial recovery		.08			—			—			—			—			.08			—			—			(.23	)		—

Diluted (loss) income from continuing operations per common share (GAAP)	$	(.20	)	$	(2.52	)	$	(.66	)	$	(.39	)	$	(.45	)	$	(3.77	)	$	(3.96	)	$	(1.36	)	$	1.24		$	1.65


Book value per common share reconciliation
Tangible book value per common share	$	4.76		$	5.05		$	5.39		$	5.62		$	6.02		$	4.76		$	6.02		$	10.39		$	10.94		$	10.57
Effect of goodwill and other intangibles		.08			.09			2.32			2.33			2.34			.08			2.34			6.56			6.79			3.80

Book value per common share (GAAP)	$	4.84		$	5.14		$	7.71		$	7.95		$	8.36		$	4.84		$	8.36		$	16.95		$	17.73		$	14.37


Efficiency ratio from continuing operations reconciliation
Operating efficiency ratio from continuing operations		89.45	%		89.38	%		141.60	%		75.22	%		78.74	%		98.98	%		73.97	%		70.00	%		55.53	%		55.30	%
Gain from acquisition		—			—			—			—			—			—			(2.77	)		—			—			—
Noncash goodwill impairment charge		—			290.00			—			—			—			72.29			31.17			—			—			—
Severance costs		—			—			—			—			—			—			.95			—			—			—

Efficiency ratio from continuing operations (GAAP)		89.45	%		379.38	%		141.60	%		75.22	%		78.74	%		171.27	%		103.32	%		70.00	%		55.53	%		55.30	%


Average equity to assets reconciliation
Tangible common equity to assets		6.35	%		6.78	%		6.91	%		7.13	%		7.37	%		6.80	%		6.15	%		6.57	%		6.63	%		6.32	%
Effect of preferred equity		2.40			2.41			2.35			2.26			2.16			2.35			2.18			.10			—			—

Tangible equity to assets		8.75			9.19			9.26			9.39			9.53			9.15			8.33			6.67			6.63			6.32
Effect of goodwill and other intangibles		.10			2.18			2.58			2.51			2.41			1.86			2.79			3.55			2.98			1.74

Equity to assets (GAAP)		8.85	%		11.37	%		11.84	%		11.90	%		11.94	%		11.01	%		11.12	%		10.22	%		9.61	%		8.06	%


Actual tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets		9.05	%		9.60	%		9.97	%		10.03	%		10.39	%		9.05	%		10.39	%		8.34	%		8.21	%		8.09	%
Effect of other comprehensive income		(.62	)		(.81	)		(.87	)		(.85	)		(.87	)		(.62	)		(.87	)		(.91	)		(.23	)		.07
Effect of deferred tax limitation		(3.34	)		(2.94	)		(2.47	)		(1.75	)		(1.27	)		(3.34	)		(1.27	)		—			—			—
Effect of trust preferred		1.06			1.06			1.03			1.00			.97			1.06			.97			.88			.65			.81
Effect of preferred equity		3.52			3.51			3.41			3.29			3.19			3.52			3.19			2.90			—			.01

Tier I capital ratio (Regulatory)		9.67	%		10.42	%		11.07	%		11.72	%		12.41	%		9.67	%		12.41	%		11.21	%		8.63	%		8.98	%


Net charge-offs reconciliation
Operating net charge-offs	$	47,668		$	49,998		$	61,323		$	56,668		$	84,585		$	215,657		$	276,669		$	151,152		$	21,834		$	5,524
Fraud related charge-offs and subsequent partial recovery		(11,750	)		—			—			—			—			(11,750	)		—			—			18,000			—

Net charge-offs (GAAP)	$	35,918		$	49,998		$	61,323		$	56,668		$	84,585		$	203,907		$	276,669		$	151,152		$	39,834		$	5,524



Net charge-offs to average loans reconciliation
Operating net charge-offs to average loans		4.03	%		4.12	%		4.98	%		4.51	%		6.37	%		4.42	%		5.03	%		2.57	%		.38	%		.12	%
Effect of fraud related charge offs and subsequent partial recovery		(1.00	)		—			—			—			—			(.25	)		—			—			.31			—

Net charge-offs to average loans (GAAP)		3.03	%		4.12	%		4.98	%		4.51	%		6.37	%		4.17	%		5.03	%		2.57	%		.69	%		.12	%

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End ⁽¹⁾


	2010								2009		Linked			Year over
	Fourth		Third		Second		First		Fourth		Quarter			Year
(in millions)	Quarter		Quarter		Quarter		Quarter		Quarter		Change			Change
LOANS BY CATEGORY
Commercial (sec. by RE)	$	1,761	$	1,781	$	1,780	$	1,765	$	1,779	$	(20	)	$	(18	)
Commercial construction		297		310		342		357		363		(13	)		(66	)
Commercial & industrial		441		456		441		381		390		(15	)		51

Total commercial		2,499		2,547		2,563		2,503		2,532		(48	)		(33	)
Residential construction		695		764		820		960		1,050		(69	)		(355	)
Residential mortgage		1,279		1,316		1,356		1,390		1,427		(37	)		(148	)
Consumer / installment		131		133		134		139		142		(2	)		(11	)

Total loans	$	4,604	$	4,760	$	4,873	$	4,992	$	5,151		(156	)		(547	)


LOANS BY MARKET
Atlanta MSA	$	1,310	$	1,365	$	1,373	$	1,404	$	1,435		(55	)		(125	)
Gainesville MSA		312		316		343		372		390		(4	)		(78	)
North Georgia		1,689		1,755		1,808		1,814		1,884		(66	)		(195	)
Western North Carolina		702		719		738		756		772		(17	)		(70	)
Coastal Georgia		335		345		356		388		405		(10	)		(70	)
East Tennessee		256		260		255		258		265		(4	)		(9	)

Total loans	$	4,604	$	4,760	$	4,873	$	4,992	$	5,151		(156	)		(547	)


RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development	$	174	$	190	$	214	$	290	$	332		(16	)		(158	)
Land loans		99		104		110		124		127		(5	)		(28	)
Lot loans		275		303		311		321		336		(28	)		(61	)

Total		548		597		635		735		795		(49	)		(247	)


House loans
Spec		97		109		125		153		178		(12	)		(81	)
Sold		50		58		60		72		77		(8	)		(27	)

Total		147		167		185		225		255		(20	)		(108	)

Total residential construction	$	695	$	764	$	820	$	960	$	1,050		(69	)		(355	)


RESIDENTIAL CONSTRUCTION — ATLANTA MSA
Dirt loans
Acquisition & development	$	30	$	34	$	40	$	66	$	76		(4	)		(46	)
Land loans		23		27		32		43		43		(4	)		(20	)
Lot loans		32		45		39		47		52		(13	)		(20	)

Total		85		106		111		156		171		(21	)		(86	)


House loans
Spec		38		42		48		58		68		(4	)		(30	)
Sold		10		11		10		14		16		(1	)		(6	)

Total		48		53		58		72		84		(5	)		(36	)

Total residential construction	$	133	$	159	$	169	$	228	$	255		(26	)		(122	)


⁽¹⁾		Excludes total loans of $68.2 million, $75.2 million, $80.8 million, $79.5 million and $85.1 million as of December 31, 2010, September 30, 2010, June 30, 2010, March 31, 2010 and December 31, 2009, 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 Year-End ⁽¹⁾


(in millions)	2010		2009		2008		2007		2006
LOANS BY CATEGORY
Commercial (sec. by RE)	$	1,761	$	1,779	$	1,627	$	1,476	$	1,230
Commercial construction		297		363		500		527		469
Commercial & industrial		441		390		410		418		296

Total commercial		2,499		2,532		2,537		2,421		1,995
Residential construction		695		1,050		1,479		1,829		1,864
Residential mortgage		1,279		1,427		1,526		1,502		1,338
Consumer / installment		131		142		163		177		180

Total loans	$	4,604	$	5,151	$	5,705	$	5,929	$	5,377


LOANS BY MARKET
Atlanta MSA	$	1,310	$	1,435	$	1,706	$	2,002	$	1,651
Gainesville MSA		312		390		420		399		354
North Georgia		1,689		1,884		2,040		2,060		2,034
Western North Carolina		702		772		810		806		773
Coastal Georgia		335		405		464		416		358
East Tennessee		256		265		265		246		207

Total loans	$	4,604	$	5,151	$	5,705	$	5,929	$	5,377


⁽¹⁾		Excludes total loans of $68.2 million and $85.1 million as of December 31, 2010 and 2009, 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⁾


	Fourth Quarter 2010									Third Quarter 2010									Second Quarter 2010
	Non-performing			Foreclosed			Total			Non-performing			Foreclosed			Total			Non-performing			Foreclosed			Total
(in thousands)	Loans			Properties			NPAs			Loans			Properties			NPAs			Loans			Properties			NPAs
NPAs BY CATEGORY
Commercial (sec. by RE)	$	44,927		$	23,659		$	68,586		$	53,646		$	14,838		$	68,484		$	56,013		$	13,297		$	69,310
Commercial construction		21,374			17,808			39,182			17,279			15,125			32,404			17,872			11,339			29,211
Commercial & industrial		5,611			—			5,611			7,670			—			7,670			7,245			—			7,245

Total commercial		71,912			41,467			113,379			78,595			29,963			108,558			81,130			24,636			105,766
Residential construction		54,505			78,231			132,736			79,321			73,206			152,527			88,375			74,444			162,819
Residential mortgage		51,083			22,510			73,593			58,107			26,795			84,902			53,175			24,830			78,005
Consumer / installment		1,594			—			1,594			1,743			—			1,743			1,655			—			1,655

Total NPAs	$	179,094		$	142,208		$	321,302		$	217,766		$	129,964		$	347,730		$	224,335		$	123,910		$	348,245

Balance as a % of Unpaid Principal		67.2	%		64.4	%		65.9	%		70.0	%		65.9	%		68.4	%		69.4	%		71.9	%		70.3	%

NPAs BY MARKET
Atlanta MSA	$	48,289		$	41,154		$	89,443		$	65,304		$	32,785		$	98,089		$	74,031		$	30,605		$	104,636
Gainesville MSA		5,171			9,273			14,444			11,905			5,685			17,590			10,730			2,750			13,480
North Georgia		83,551			66,211			149,762			92,295			67,439			159,734			102,198			60,597			162,795
Western North Carolina		25,832			11,553			37,385			31,545			11,559			43,104			22,776			11,473			34,249
Coastal Georgia		11,145			11,901			23,046			10,611			10,951			21,562			8,341			16,548			24,889
East Tennessee		5,106			2,116			7,222			6,106			1,545			7,651			6,259			1,937			8,196

Total NPAs	$	179,094		$	142,208		$	321,302		$	217,766		$	129,964		$	347,730		$	224,335		$	123,910		$	348,245


NPA ACTIVITY
Beginning Balance	$	217,766		$	129,964		$	347,730		$	224,335		$	123,910		$	348,245		$	280,802		$	136,275		$	417,077
Loans placed on non-accrual		81,023			—			81,023			119,783			—			119,783			155,007			—			155,007
Payments received		(7,250	)		—			(7,250	)		(11,469	)		—			(11,469	)		(12,189	)		—			(12,189	)
Loan charge-offs		(47,913	)		—			(47,913	)		(52,647	)		—			(52,647	)		(62,693	)		—			(62,693	)
Foreclosures		(61,432	)		61,432			—			(59,844	)		59,844			—			(66,994	)		66,994			—
Capitalized costs		—			170			170			—			601			601			—			305			305
Note / property sales		(3,100	)		(33,509	)		(36,609	)		(2,392	)		(40,203	)		(42,595	)		(69,598	)		(68,472	)		(138,070	)
Write downs		—			(8,031	)		(8,031	)		—			(7,051	)		(7,051	)		—			(6,094	)		(6,094	)
Net losses on sales		—			(7,818	)		(7,818	)		—			(7,137	)		(7,137	)		—			(5,098	)		(5,098	)

Ending Balance	$	179,094		$	142,208		$	321,302		$	217,766		$	129,964		$	347,730		$	224,335		$	123,910		$	348,245


	Fourth Quarter 2010 ⁽³⁾					Third Quarter 2010					Second Quarter 2010
			Net Charge-					Net Charge-					Net Charge-
			Offs to					Offs to					Offs to
	Net		Average			Net		Average			Net		Average
(in thousands)	Charge-Offs		Loans⁽²⁾			Charge-Offs		Loans⁽²⁾			Charge-Offs		Loans⁽²⁾
NET CHARGE-OFFS BY CATEGORY
Commercial (sec. by RE)	$	6,493		1.45	%	$	14,212		3.16	%	$	9,757		2.21	%
Commercial construction		3,924		5.12			1,972		2.40			1,460		1.67
Commercial & industrial		2,891		2.54			1,207		1.07			867		.85

Total commercial		13,308		2.09			17,391		2.70			12,084		1.91
Residential construction		24,497		13.28			23,934		11.99			41,515		18.71
Residential mortgage		9,176		2.80			7,695		2.29			6,517		1.90
Consumer / installment		687		2.06			978		2.90			1,207		3.53

Total	$	47,668		4.03		$	49,998		4.12		$	61,323		4.98


NET CHARGE-OFFS BY MARKET
Atlanta MSA	$	15,222		4.48	%	$	13,753		3.97	%	$	16,926		4.85	%
Gainesville MSA		3,434		4.37			1,143		1.40			2,547		3.01
North Georgia		18,537		4.26			26,554		5.92			28,100		6.19
Western North Carolina		5,154		2.87			5,509		2.99			7,194		3.86
Coastal Georgia		3,670		4.27			2,702		3.05			5,581		6.07
East Tennessee		1,651		2.53			337		.52			975		1.53

Total	$	47,668		4.03		$	49,998		4.12		$	61,323		4.98


⁽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⁾		Annualized.

⁽³⁾		North Carolina residential construction net charge offs for the fourth quarter of 2010 exclude a $11.8 million partial recovery of a 2007 fraud-related charge-off.

UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)


	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
(in thousands, except per share data)	2010			2009			2010			2009

Interest revenue:
Loans, including fees	$	66,659		$	78,064		$	277,904		$	322,509
Investment securities, including tax exempt of $251, $336, $1,137 and $1,322		13,215			17,313			59,958			77,370
Federal funds sold, commercial paper and deposits in banks		844			1,503			3,260			2,950

Total interest revenue		80,718			96,880			341,122			402,829


Interest expense:
Deposits:
NOW		1,662			2,315			6,966			11,023
Money market		2,036			2,328			7,552			9,545
Savings		81			105			331			483
Time		12,868			24,026			66,883			120,326

Total deposit interest expense		16,647			28,774			81,732			141,377
Federal funds purchased, repurchase agreements and other short-term borrowings		1,073			1,081			4,235			2,842
Federal Home Loan Bank advances		608			1,045			3,355			4,622
Long-term debt		2,755			2,652			10,749			10,893

Total interest expense		21,083			33,552			100,071			159,734

Net interest revenue		59,635			63,328			241,051			243,095
Provision for loan losses		36,000			90,000			223,000			310,000

Net interest revenue after provision for loan losses		23,635			(26,672	)		18,051			(66,905	)


Fee revenue:
Service charges and fees		7,039			8,257			30,127			30,986
Mortgage loan and other related fees		1,868			1,651			7,019			8,959
Brokerage fees		778			443			2,662			2,085
Securities gains, net		—			2,015			2,552			2,756
Gain from acquisition		—			—			—			11,390
Losses from prepayment of borrowings		—			—			(2,233	)		—
Other		2,757			2,081			8,421			6,178

Total fee revenue		12,442			14,447			48,548			62,354

Total revenue		36,077			(12,225	)		66,599			(4,551	)


Operating expenses:
Salaries and employee benefits		23,777			24,061			96,618			101,568
Communications and equipment		3,377			3,819			13,781			14,676
Occupancy		4,024			4,003			15,394			15,653
Advertising and public relations		1,102			958			4,625			3,950
Postage, printing and supplies		1,063			1,307			4,072			5,040
Professional fees		3,016			2,646			9,254			11,480
Foreclosed property		20,602			14,391			65,707			32,365
FDIC assessments and other regulatory charges		3,299			3,711			13,747			16,004
Amortization of intangibles		771			813			3,160			3,104
Other		3,887			4,417			16,594			13,210
Loss on sale of nonperforming assets		—			—			45,349			—
Goodwill impairment		—			—			210,590			95,000
Severance costs		—			—			—			2,898

Total operating expenses		64,918			60,126			498,891			314,948

Loss from continuing operations before income taxes		(28,841	)		(72,351	)		(432,292	)		(319,499	)
Income tax benefit		(12,446	)		(32,288	)		(85,492	)		(90,659	)

Net loss from continuing operations		(16,395	)		(40,063	)		(346,800	)		(228,840	)
(Loss) income from discontinued operations, net of income taxes		—			228			(101	)		513
Gain from sale of subsidiary, net of income taxes and selling costs		—			—			1,266			—

Net loss		(16,395	)		(39,835	)		(345,635	)		(228,327	)
Preferred stock dividends and discount accretion		2,586			2,567			10,316			10,242

Net loss available to common shareholders	$	(18,981	)	$	(42,402	)	$	(355,951	)	$	(238,569	)


Loss from continuing operations per common share — Basic / Diluted	$	(.20	)	$	(.45	)	$	(3.77	)	$	(3.96	)
Loss per common share — Basic / Diluted		(.20	)		(.45	)		(3.76	)		(3.95	)
Weighted average common shares outstanding — Basic / Diluted		94,918			94,219			94,624			60,374

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet


	December 31,			December 31,
(in thousands, except share and per share data)	2010			2009
	(unaudited)			(unaudited)
ASSETS

Cash and due from banks	$	95,994		$	126,265
Interest-bearing deposits in banks		111,901			120,382
Federal funds sold, commercial paper and short-term investments		441,562			129,720

Cash and cash equivalents		649,457			376,367

Securities available for sale		1,224,417			1,530,047
Securities held to maturity (fair value $267,988)		265,807			—
Mortgage loans held for sale		35,908			30,226
Loans, net of unearned income		4,604,126			5,151,476
Less allowance for loan losses		174,695			155,602

Loans, net		4,429,431			4,995,874
Assets covered by loss sharing agreements with the FDIC		131,887			185,938
Premises and equipment, net		178,239			182,038
Accrued interest receivable		24,299			33,867
Goodwill and other intangible assets		11,446			225,196
Foreclosed property		142,208			120,770
Other assets		350,097			319,591

Total assets	$	7,443,196		$	7,999,914


LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand	$	793,414		$	707,826
NOW		1,424,781			1,335,790
Money market		891,252			713,901
Savings		183,894			177,427
Time:
Less than $100,000		1,496,700			1,746,511
Greater than $100,000		1,002,359			1,187,499
Brokered		676,772			758,880

Total deposits		6,469,172			6,627,834
Federal funds purchased, repurchase agreements, and other short-term borrowings		101,067			101,389
Federal Home Loan Bank advances		55,125			114,501
Long-term debt		150,146			150,066
Accrued expenses and other liabilities		32,171			43,803

Total liabilities		6,807,681			7,037,593


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
Series B; $1,000 stated value; 180,000 shares issued and outstanding		175,711			174,408
Common stock, $1 par value; 200,000,000 shares authorized;
94,685,003 and 94,045,603 shares issued and outstanding		94,685			94,046
Common stock issuable; 336,437 and 221,906 shares		3,894			3,597
Capital surplus		665,496			622,034
(Accumulated deficit) retained earnings		(335,567	)		20,384
Accumulated other comprehensive income		31,079			47,635

Total shareholders’ equity		635,515			962,321

Total liabilities and shareholders’ equity	$	7,443,196		$	7,999,914

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


	2010								2009
	Average					Avg.			Average					Avg.
(dollars in thousands, taxable equivalent)	Balance			Interest		Rate			Balance			Interest		Rate
Assets:
Interest-earning assets:
Loans, net of unearned income ⁽¹⁾⁽²⁾	$	4,768,120		$	66,750		5.55	%	$	5,357,150		$	78,088		5.78	%
Taxable securities ⁽³⁾		1,327,999			12,964		3.90			1,496,251			16,947		4.53
Tax-exempt securities ⁽¹⁾⁽³⁾		25,917			410		6.33			32,554			599		7.36
Federal funds sold and other interest-earning assets		558,143			1,091		.78			600,835			1,847		1.23


Total interest-earning assets		6,680,179			81,215		4.83			7,486,790			97,481		5.17

Non-interest-earning assets:
Allowance for loan losses		(185,300	)							(162,203	)
Cash and due from banks		112,923								107,153
Premises and equipment		178,729								182,790
Other assets ⁽³⁾		551,340								672,014

Total assets	$	7,337,871							$	8,286,544


Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,436,976		$	1,662		.46		$	1,334,578		$	2,315		.69
Money market		870,884			2,036		.93			726,680			2,328		1.27
Savings		184,651			81		.17			178,191			105		.23
Time less than $100,000		1,489,933			6,292		1.68			1,812,823			10,952		2.40
Time greater than $100,000		1,010,104			4,736		1.86			1,215,579			8,074		2.64
Brokered		491,477			1,840		1.49			844,462			5,000		2.35

Total interest-bearing deposits		5,484,025			16,647		1.20			6,112,313			28,774		1.87


Federal funds purchased and other borrowings		102,830			1,073		4.14			105,130			1,081		4.08
Federal Home Loan Bank advances		58,712			608		4.11			156,979			1,045		2.64
Long-term debt		150,137			2,755		7.28			150,060			2,652		7.01

Total borrowed funds		311,679			4,436		5.65			412,169			4,778		4.60


Total interest-bearing liabilities		5,795,704			21,083		1.44			6,524,482			33,552		2.04

Non-interest-bearing liabilities:
Non-interest-bearing deposits		809,604								722,739
Other liabilities		83,452								50,044

Total liabilities		6,688,760								7,297,265
Shareholders’ equity		649,111								989,279

Total liabilities and shareholders’ equity	$	7,337,871							$	8,286,544


Net interest revenue				$	60,132							$	63,929

Net interest-rate spread							3.39	%							3.13	%


Net interest margin ⁽⁴⁾							3.58	%							3.40	%


⁽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.

⁽³⁾		Securities available for sale are shown at amortized cost. Pretax unrealized gains of $40.8 million in 2010 and $22.1 million in 2009 are included in other assets for purposes of this presentation.

⁽⁴⁾		Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

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


	2010								2009
	Average					Avg.			Average					Avg.
(dollars in thousands, taxable equivalent)	Balance			Interest		Rate			Balance			Interest		Rate
Assets:
Interest-earning assets:
Loans, net of unearned income ⁽¹⁾⁽²⁾	$	4,960,805		$	278,149		5.61	%	$	5,547,915		$	322,284		5.81	%
Taxable securities ⁽³⁾		1,425,322			58,821		4.13			1,626,032			76,048		4.68
Tax-exempt securities ⁽¹⁾⁽³⁾		27,827			1,860		6.68			30,460			2,164		7.10
Federal funds sold and other interest-earning assets		408,359			4,293		1.05			260,232			4,465		1.72


Total interest-earning assets		6,822,313			343,123		5.03			7,464,639			404,961		5.43

Non-interest-earning assets:
Allowance for loan losses		(190,227	)							(146,535	)
Cash and due from banks		106,582								105,127
Premises and equipment		180,379								180,381
Other assets ⁽³⁾		706,586								665,775

Total assets	$	7,625,633							$	8,269,387


Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,360,729		$	6,966		.51		$	1,297,139		$	11,023		.85
Money market		780,982			7,552		.97			589,389			9,545		1.62
Savings		184,479			331		.18			177,410			483		.27
Time less than $100,000		1,581,750			30,260		1.91			1,891,774			56,811		3.00
Time greater than $100,000		1,084,967			23,114		2.13			1,306,302			42,518		3.25
Brokered		610,483			13,509		2.21			756,122			20,997		2.78

Total interest-bearing deposits		5,603,390			81,732		1.46			6,018,136			141,377		2.35


Federal funds purchased and other borrowings		103,479			4,235		4.09			177,589			2,842		1.60
Federal Home Loan Bank advances		90,137			3,355		3.72			220,468			4,622		2.10
Long-term debt		150,107			10,749		7.16			150,604			10,893		7.23

Total borrowed funds		343,723			18,339		5.34			548,661			18,357		3.35


Total interest-bearing liabilities		5,947,113			100,071		1.68			6,566,797			159,734		2.43

Non-interest-bearing liabilities:
Non-interest-bearing deposits		769,395								694,469
Other liabilities		69,367								88,490

Total liabilities		6,785,875								7,349,756
Shareholders’ equity		839,758								919,631

Total liabilities and shareholders’ equity	$	7,625,633							$	8,269,387


Net interest revenue				$	243,052							$	245,227

Net interest-rate spread							3.35	%							3.00	%


Net interest margin ⁽⁴⁾							3.56	%							3.29	%


⁽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.

⁽³⁾		Securities available for sale are shown at amortized cost. Pretax unrealized gains of $43.2 million in 2010 and $15.3 million in 2009 are included in other assets for purposes of this presentation.

⁽⁴⁾		Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

Exhibit 99.2

Exhibit 99.2

United Community Banks, Inc. Investor Presentation Fourth Quarter 2010 Jimmy C. Tallent President & CEO Rex S. Schuette EVP & CFO rex_schuette@ucbi.com (706) 781-2266 David P. Shearrow EVP & CRO # in Customer Satisfaction As reported by Customer Service Profiles 1

This presentation 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. 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 factors that may cause such forward-looking statements to differ materially from actual results, please refer to United Community Banks, Inc.'s Annual Report filed on Form 10-K with the Securities and Exchange Commission. Cautionary Statement 2

This presentation also contains non-GAAP financial measures determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). Such non-GAAP financial measures include the following: net interest margin - pre credit, core fee revenue, core operating expense, core earnings, net operating (loss) income and net operating (loss) earnings per share, tangible common equity to tangible assets, tangible equity to tangible assets and tangible common equity to risk-weighted assets. The most comparable GAAP measures to these measures are: net interest margin, fee revenue, operating expense, net (loss) income, diluted (loss) earnings per share and equity to assets. Management uses these non-GAAP financial measures because we believe it is useful for evaluating our operations and performance over periods of time, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes these non-GAAP financial measures provide users of our financial information with a meaningful measure for assessing our financial results and credit trends, as well as comparison to financial results for prior periods. These non-GAAP financial measures should not be considered as a substitute for financial measures determined in accordance with GAAP and may not be comparable to other similarly titled financial measures used by other companies. For a reconciliation of the differences between our non-GAAP financial measures and the most comparable GAAP measures, please refer to the 'Non-GAAP Reconcilement Tables' at the end of the Appendix of this presentation. We have not reconciled tangible common equity to tangible assets and core earnings to the extent such numbers are presented on a forward-looking basis based on management's internal stress test or SCAP methodology. Estimates that would be required for such reconciliations cannot reliably be produced without unreasonable effort. 3 Non-GAAP Measures

Highlights Fourth Quarter Credit Loan and Deposit Growth Core Earnings Capital 4

5 LOAN PORTFOLIO & CREDIT QUALITY

Structure Centralized underwriting and approval process Segregated work-out teams Highly skilled ORE disposition group Seasoned regional credit professionals Process Continuous external loan review Intensive executive management involvement: Weekly past due meetings Weekly NPA/ORE meetings Quarterly criticized watch loan review meetings Quarterly pass commercial and CRE portfolio review meetings Internal loan review of new credit relationships Ongoing stress testing... commenced in 2007 Policy Ongoing enhancements to credit policy Periodic updates to portfolio limits 6 Proactively Addressing Credit Environment

North Georgia Atlanta MSA Western North Carolina Coastal Georgia Gainesville MSA Eastern Tennessee East 0.37 0.29 0.15 0.07 0.07 0.05 Geographic Diversity 7 Loan Portfolio (total $4.60 billion) $ in millions

Atlanta MSA North Georgia Coastal Georgia Western North Carolina Gainesville MSA Eastern Tennessee East 0.39 0.31 0.08 0.08 0.08 0.06 Commercial Construction Owner-Occupied Income Producing C & I East 12 39 31 18 Geographic Diversity Average Loan Size CRE: $447k C&I: $85k Comm. Constr. $650k 8 Commercial Loans (total $2.50 billion) $ in millions

56% owner-occupied Typical owner-occupied: small business, doctors, dentists, attorneys, CPAs $12 million project limit $447K average loan size Portfolio Characteristics 9 Commercial Real Estate (by loan type)

$650k Average loan size Portfolio Characteristics 10 Commercial Construction (by loan type)

North Georgia Western North Carolina Atlanta MSA Coastal Georgia Eastern Tennessee Gainesville MSA East 0.4 0.26 0.14 0.07 0.06 0.06 Mortgage Home Equity East 94 34 Geographic Diversity Avg loan size: $45k Avg loan size: $96k Origination Characteristics No broker loans No sub-prime / Alt-A Policy Max LTV: 80-85% 51% of HE Primary Lien 11 Residential Mortgage (total $1.28 billion) $ in millions

North Georgia Western North Carolina Atlanta MSA Gainesville MSA Coastal Georgia Eastern Tennessee East 0.49 0.2 0.19 0.05 0.04 0.03 Geographic Diversity Developing Spec $241k Sold $147k Develop $650k Raw Land $257k Lot $111k Average Loan Size Lot Spec Sold Developing Raw East 0.4 0.14 0.07 0.25 0.14 Construction Land 12 Residential Construction (total $.70 billion) $ in millions

13 North Georgia MSA (residential construction)

14 Atlanta MSA (residential construction)

Credit Quality (in millions) 4Q10 3Q10 2Q10 1Q10 4Q 09 Operating Net Charge-offs(1) $ 47.7 $ 50.0 $ 61.3 $ 56.7 $ 84.6 as % of Average Loans(1) 4.03 % 4.12 % 4.98 % 4.51 % 6.37 % Allowance for Loan Losses $ 174.7 $ 174.6 $ 174.1 $ 173.9 $ 155.6 as % of Total Loans 3.79 % 3.67 % 3.57 % 3.48 % 3.02 % as % of NPLs 98 80 78 62 59 as % of NPLs - Adjusted (2) 274 257 234 142 190 Past Due Loans (30 - 89 Days) 1.26 % 1.24 % 1.69 % 2.17 % 1.44 % Non-Performing Loans $ 179.1 $ 217.8 $ 224.3 $ 280.8 $ 264.1 OREO 142.2 129.9 123.9 136.3 120.8 Total NPAs $ 321.3 $ 347.7 $ 348.2 $ 417.1 $ 384.9 As % of Original Principal Balance Non-Performing Loans 67.2 % 70.0 % 69.4 % 71.6 % 70.4 % OREO 64.4 65.9 71.9 67.4 66.6 Total NPAs as % of Total Assets 4.32 % 4.96 % 4.55 % 5.32 % 4.81 % as % of Loans & OREO 6.77 7.11 6.97 8.13 7.30 Excludes $11.75 million partial recovery of 2007 fraud loss. Excluding loans with no allocated reserve 15

Excludes $11.75 million partial recovery of 2007 fraud loss. Based on simple average of the four quarters 16 Net Charge-offs by Loan Category

Based on simple average of the four quarters Excludes fraud loss recovery of $11.750M 17 Net Charge-offs by Market

18 NPAs by Loan Category and Market

19 FINANCIAL RESULTS

4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 16.5 21.5 26.7 31.7 29.9 28.9 29.4 27.5 27.6 Core Earnings 20 In millions

Core Earnings Summary 21

4Q09 1Q10 2Q10 3Q10 4Q10 Net Interest Margin 0.034 0.0349 0.036 0.0357 0.0358 0.0064 0.0066 0.0064 0.0056 0.0047 Margin changes +1 bps vs. 3Q10 +18 bps vs. 4Q09 Maintained loan & CD pricing 4Q Excess liquidity - lowered Margin by 30 bps NIM Characteristics 4.04% 4.15% NIM NIM - Pre Credit (1) (1) Excluding impact of nonaccrual loans, OREO and interest reversals 4.24% 4.13% 4.05% Net Interest Margin 22

4Q09 1Q10 2Q10 3Q10 4Q10 Lost Interest on C/Os 0.0017 0.002 0.002 0.002 0.0017 Nonaccrual/OREO 0.0027 0.0026 0.0025 0.0022 0.0019 Interest Reversals 0.002 0.002 0.0019 0.0014 0.0011 Historically 8 to 12 bps Credit cycle - significant drag on margin but improving Cost 4Q10 vs. Historical - 35 bps (annual earnings impact of $23 million) 1 bps = $670K NIR Declining trend due to improvements in credit quality Credit Costs Impacting Margin ..64% ..66% ..64% ..47% Lost Interest on C/Os Interest Reversals Carry Cost of NPAs ..56% Margin - Credit Costs 23

Demand & NOW MMDA & Sav. Time <$100k Time >$100k Public Funds Brokered East 1573 1064 1490 940 725 677 24 Deposit Mix (total $6.5 billion)

Net Operating Loss - From Continuing Operations 25

Net Loss 26

Capital Ratios 27

28 APPENDIX

Assets $7.4 Billion Deposits $6.5 Billion Banks 27 Offices 106 29 United at a Glance

30 Experienced Proven Leadership Joined Years in UCBI Banking Jimmy Tallent President & CEO 1984 36 Guy Freeman Chief Operating Officer 1992 52 Rex Schuette Chief Financial Officer 2001 33 David Shearrow Chief Risk Officer 2007 29 Glenn White President, Atlanta Region 2007 36 Craig Metz Marketing 2002 18 Bill Gilbert Retail Banking 2000 34

Business and Operating Model Twenty-seven "community banks" Local CEOs with deep roots in their communities Resources of $7.4 billion bank Service is point of differentiation Golden rule of banking "The Bank That SERVICE Built" Ongoing customer surveys 95+% satisfaction rate Strategic footprint with substantial banking opportunities Operates in a number of the more demographically attractive markets in the U.S. Disciplined growth strategy Organic supported by de novos and selective acquisitions 31 "Community bank service, large bank resources"

32 Robust Demographics (fast growing markets)

1 FDIC deposit market share and rank as of 6/10 for markets where United takes deposits. Source: SNL and FDIC. 2 Based on current quarter. 33 Market Share Opportunities (excellent growth prospects)

34 Leading Demographics

35 Small Business Market Growth Number of Businesses with 1 - 49 Employees

36 Performing Classified Loans

37 Business Mix Loans (at quarter-end)

38 Loans - Markets Served (at quarter-end)

39 Residential Construction - Total Company

40 Residential Construction - Atlanta MSA

41 Residential Construction - North Georgia

42 Business Mix Loans (at year-end)

43 Loans - Markets Served (at year-end)

(in millions) 44 Lending - Credit Summary Legal lending limit $182 House lending limit 20 Project lending limit 12 Top 25 relationships 441 9.6% of total loans Regional credit review - Standard underwriting

45 NPAs by Loan Category, Market, and Activity

NPAs by Loan Category, Market, and Activity (Cont'd.)

47 Net Charge-offs by Category and Market

Net Charge-offs by Category and Market (Cont'd.)

49 Loans / Deposits - Liquidity

50 Wholesale Borrowings - Liquidity

51 Business Mix - Deposits (at quarter-end)

$ in millions 4Q 09 4Q 10 Geographic Diversity Atlanta MSA North Georgia Western North Carolina Gainesville MSA Coastal Georgia Eastern Tennessee 4Q10 981 727 461 171 152 144 4Q09 874 653 416 148 128 125 Atlanta MSA North Georgia Western North Carolina Gainesville MSA Coastal Georgia Eastern Tennessee 52 Core Transaction Deposits

NPA Sale in 2Q Sold $103 Million NPA's - With a $65 Million Capital Option and Warrant Completed sale on April 30, 2010 Accelerates disposition of the more illiquid assets 53

NPA Sale - Fair Value Accounting Fair Value Accounting - Warrant / Option to Purchase Equity Increase to Capital Surplus - $39.8 million Pre-tax expense charge - $45.3 million; after-tax cost - $30.0 million GAAP Capital +$9.8million - Slight Negative to "Regulatory Capital" (DTA) 54

Southern Community Bank ($ in millions) Purchased - June 19, 2009 Nine years old - Enhances presence in southside metro Atlanta markets Four banking offices in southside metro Atlanta MSA - Fayetteville, Coweta and Henry counties 54 employees (Reduced by 17 after conversion in September 2009) $208 in customer deposits, including $53 core deposits FDIC assisted transaction: 80% guarantee on $109 loss threshold, 95% above Fully discounted bid with no credit exposure Accounted for credit related items (at FMV) as "covered assets" on balance sheet Pre-tax gain on acquisition of $11.4 Accretive to earnings per share 55 4Q10 3Q10 2Q10 1Q10 4Q09 2Q09 Loans 68 $ 75 $ 81 $ 79 $ 85 $ 110 $ OREO 32 30 33 32 34 25 FDIC Receivable 32 40 43 58 67 95 Total Covered Assets 132 $ 145 $ 157 $ 169 $ 186 $ 230 $

56 Non-GAAP Reconciliation Tables

57 Non-GAAP Reconciliation Tables

58 Analyst Coverage