January 23, 2008

United Community Banks, Inc. Reports Diluted Operating Earnings per Share of 13 Cents for Fourth Quarter 2007

BLAIRSVILLE, GA, Jan 23, 2008 (MARKET WIRE via COMTEX News Network) -- United Community Banks, Inc. (NASDAQ: UCBI)

HIGHLIGHTS:
--  Fourth Quarter Operating Earnings
      --  Diluted operating earnings per share of 13 cents, lowered
          significantly by $26.5 million provision for loan losses
      --  Non-performing assets slightly above third quarter level

United Community Banks, Inc. (NASDAQ: UCBI) today announced diluted operating earnings per share of 13 cents for the fourth quarter of 2007, compared to 44 cents for the fourth quarter of 2006. Total revenue on a taxable equivalent basis was $59.3 million for the quarter, compared to $72.1 million for the fourth quarter of 2006. These decreases reflect a higher provision for loan losses in the fourth quarter of 2007 and reflect a more challenging credit environment.

Net operating income was $6.0 million, compared with $18.4 million in the fourth quarter of 2006. Operating return on tangible equity was 5.06 percent and operating return on assets was .29 percent for the fourth quarter of 2007, compared with 17.49 percent and 1.10 percent a year ago, respectively.

"The residential housing market continued to weaken in the fourth quarter, making it one of the most challenging quarters we have faced in recent years," said Jimmy Tallent, president and chief executive officer. "In response to the difficult operating environment, we worked aggressively to move non-performing loans and assets out of the bank, taking charge-offs and write downs when necessary."

For the full year, diluted operating earnings per share was $1.48, compared with $1.66 for 2006. Taxable equivalent operating revenue was up 10 percent to $299.5 million versus $272.4 million for 2006, despite the increase in the provision for loan losses. Net operating income for 2007 was $69.0 million compared with $68.8 million for 2006.

Earnings measures for the fourth quarter and full year of 2007 are presented on an operating basis that excludes a second quarter $15 million special provision for loan losses related to two failed residential real estate developments near Spruce Pine, North Carolina. An additional $3 million special provision for loan losses related to these developments was recorded in the fourth quarter of 2007, bringing the total for the year to $18 million. Because the provision was the result of a fraud-related matter that is considered isolated and non-recurring, management believes the presentation of operating earnings is useful for understanding underlying core earnings and credit trends.

Loans were up $553 million from the end of 2006, due primarily to loans added through the acquisition of First Bank of the South in the second quarter. Excluding acquisitions, loans were flat year-over-year. "In 2007, residential construction loan growth slowed substantially due to the weak housing market, particularly in the Atlanta region," Tallent said. "The weak housing market reduced our ability to grow and we expect that this slower-than-normal loan growth will continue until the market stabilizes. In fact, on a linked-quarter basis residential construction loans were down $110 million. However, on the positive side, we saw $90 million loan growth in the commercial and residential mortgage portfolios. So we are getting growth across our markets, but this growth is more than offset by construction paydowns. To enhance the growth and diversity of our loan portfolio, we are actively exploring opportunities to add commercial lending expertise and to expand small business lending. We are targeting core loan growth for 2008 to be flat to 4 percent, but expect to be at the low end of that range for the first half."

Deposits increased $303 million, or 5 percent, from a year ago due to the acquisition of First Bank of the South. "Total deposits, excluding acquired deposits, decreased by $265 million from the prior year as we let non-relationship time deposits run off in view of declining loan demand," commented Tallent. "Excluding these time deposits, customer deposits were up $25 million from the prior year, but down $77 million from the third quarter."

"We believe the fourth quarter decline was temporary and directly related to the current economic environment," said Tallent. "The number of customer relationships continues to increase and our customer satisfaction scores remain at historical highs. In fact, in November we hit a record high of 95.3 percent, proof that our bankers remain focused on the all-important business of taking excellent care of customers."

For the fourth quarter 2007, taxable equivalent net interest revenue of $69.7 million reflected an increase of $7.2 million, or 11 percent, from the fourth quarter of 2006. The full year increase was $36.6 million, or 15 percent, compared to 2006. Taxable equivalent net interest margin was 3.73 percent for the fourth quarter, compared with 3.89 percent for the third quarter of 2007 and 3.99 percent for the fourth quarter of 2006. "Our net interest margin continues to be under pressure due to very competitive CD pricing, the higher level of non-performing assets, and a slight change in the mix of earning assets," stated Tallent. "With the Federal Reserve's rate cut yesterday and the outlook for the continued easing of rates, we expect to see these margin pressures continue into 2008. If liquidity pressures continue to keep an imbalance on our CD pricing, we expect to see further margin compression in the first quarter."

The fourth quarter provision for loan losses was $29.5 million, including a $3 million special provision for the Spruce Pine developments in North Carolina. This compared with provisions of $3.7 million in both the fourth quarter of 2006 and third quarter of 2007. Net charge-offs were $31.0 million, including $18 million related to the Spruce Pine loans, compared with $5.2 million for the third quarter and $1.9 million a year ago. Annualized net charge-offs to average loans, excluding Spruce Pine, was 87 basis points for the fourth quarter compared to 35 basis points for the third quarter and 15 basis points for the fourth quarter of 2006.

"The increase in the fourth quarter provision was due to management's decision to deal with problem credits assertively," Tallent said. "In the fourth quarter, we charged down non-performing loans aggressively, enabling us to reduce the level of total non-performing assets below the third quarter level. The higher provision increased our allowance-to-loans ratio to 1.51 percent. We believe that our actions in the fourth quarter better position us to manage what we expect to be a challenging 2008."

At year-end, non-performing assets totaled $46.3 million, compared with $63.3 million at September 30, 2007 and $13.7 million at December 31, 2006. The remaining balance of fraud-related assets for Spruce Pine was $5.3 million, compared with $23.6 million at September 30, 2007. Excluding Spruce Pine, non-performing assets were $41.0 million at year-end compared with $39.8 million at September 30, 2007 and $13.7 million a year ago and as a percentage of total assets was 50 basis points, 49 basis points, and 19 basis points, respectively. The Spruce Pine non-performing assets, as a percentage of total assets, was six basis points at December 31, 2007 and 28 basis points at September 30, 2007. "We continued negotiations related to Spruce Pine during the fourth quarter and have been in contact with all of the borrowers or their counsel," commented Tallent. "Even though we charged-off these loans, we will seek full recovery, and in the past 30 days, we have reached settlement with several borrowers."

"Non-performing assets, until recently, were at very low levels and at the lower end of our historic 20 to 35 basis point range," Tallent said. "During the past two quarters, excluding the Spruce Pine loans, non-performing assets increased above this range to 50 basis points. Most of the rise was construction-related due to softening in the residential housing market. We continue to see a buildup of lot inventory in the Atlanta region and a standstill in new construction lending. We don't know the length of this current cycle, but we expect several quarters will pass before we return to our historical range for non-performing assets."

Fee revenue of $16.1 million for the fourth quarter reflected an increase of $2.9 million, or 22 percent, from $13.2 million for the fourth quarter of 2006. Service charges and fees on deposit accounts of $8.4 million reflected an increase of $1.3 million, or 18 percent, from the fourth quarter of 2006 due to growth in transactions, new accounts and higher ATM and debit card usage. Consulting fees were $2.6 million -- up $482,000, or 23 percent, from a year ago -- surpassing the record level set last quarter and reflecting strong growth in the advisory services practice. Brokerage fees were up $411,000 to $1.1 million from a year ago due to strong retention rates and additional customers.

"During the fourth quarter, we took an opportunity to lower our funding costs by prepaying higher-rate Federal Home Loan Bank advances," Tallent said. "The gain from the sale of securities more than offset the charges from the prepayment of the advances." Other fee revenue of $2.1 million included $727,000 of earnings from bank-owned life insurance assets that were added in the second quarter of 2007.

Operating expenses of $49.3 million reflected an increase of $6.8 million, or 16 percent, from the fourth quarter of 2006. Salaries and employee benefit costs totaled $27.1 million, which was $592,000, or 2 percent, higher than the fourth quarter of 2006. Although acquisitions added approximately $1.5 million, this was more than offset by a reduction in bonus and profit sharing expense of $3.5 million. Occupancy expense increased $650,000 to $3.5 million due to the higher costs of operating additional banking offices. Professional fees increased $535,000 to $1.8 million, reflecting higher fees associated with loan work-outs, foreclosures and corporate initiatives. Other expenses of $8.8 million were $5.1 million higher than a year ago and included $3.7 million of write-downs and related costs on foreclosed properties and higher FDIC insurance premiums of $927,000.

"Our operating efficiency ratio of 57.67 percent for the fourth quarter was at the upper end of our long-term efficiency target range of 56 to 58 percent, primarily due to accelerated write-downs on foreclosed properties," Tallent said. "Despite these challenges, we continue to maintain disciplined expense controls."

"In the third quarter, the Board of Directors increased the level of our stock purchase program to three million shares, and we have purchased two million shares through December 2007," noted Tallent. "Even though we believe our stock price is significantly undervalued, it is important to maintain a strong capital position during this difficult credit environment. At year-end, we continued to maintain strong capital ratios, with all of our regulatory capital ratios above the well-capitalized level and our tangible equity-to-asset ratio at 6.58 percent. To help maintain this, we will wait to evaluate any additional stock purchases until the second half of 2008.

"We remain committed to increasing long-term shareholder value by delivering solid growth in earnings per share, building our franchise and providing superior customer service," said Tallent. "These are very challenging times for financial institutions, and our outlook for 2008 will be tempered by these challenges. Given the uncertainty and volatility in both the housing market and broader economy, we do not have a clear enough view to provide guidance beyond the first quarter. Based on these assumptions and continued growth in the economy, we expect core annualized loan growth for the quarter to be flat. We expect margin compression to continue, net charge-offs to be $5 million to $7 million, and operating earnings per share to be 34 to 38 cents."

"We remain focused on the solid business model and guiding principles that have resulted in our past achievements," Tallent concluded. "We will continue to provide unparalleled customer service in our markets and are optimistic about the stability and long-term growth this will bring."

Conference Call

United Community Banks will hold a conference call on Wednesday, January 23, 2008, at 11 a.m. ET to discuss the contents of this news release, as well as business highlights for the quarter and the financial outlook for 2008. The telephone number for the conference call is (888) 262-8720 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 $8.2 billion and operates 27 community banks with 111 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.

                       UNITED COMMUNITY BANKS, INC.
                           Financial Highlights
                      Selected Financial Information
                                                     2007
                                     -------------------------------------
(in thousands, except per share        Fourth        Third       Second
data; taxable equivalent)              Quarter      Quarter      Quarter
                                     -----------  -----------  -----------
INCOME SUMMARY
Interest revenue                     $   140,768  $   144,884  $   136,237
Interest expense                          71,038       73,203       68,270
                                     -----------  -----------  -----------
    Net interest revenue                  69,730       71,681       67,967
Provision for loan losses (1)             26,500        3,700        3,700
Fee revenue                               16,100       15,615       16,554
                                     -----------  -----------  -----------
   Total operating revenue                59,330       83,596       80,821
Operating expenses                        49,336       48,182       47,702
                                     -----------  -----------  -----------
    Income before taxes                    9,994       35,414       33,119
Income taxes                               3,960       12,878       12,043
                                     -----------  -----------  -----------
   Net operating income                    6,034       22,536       21,076
Fraud loss provision, net of tax (1)       1,833            -        9,165
                                     -----------  -----------  -----------
   Net income                        $     4,201  $    22,536  $    11,911
                                     ===========  ===========  ===========
OPERATING PERFORMANCE  (1)
  Earnings per common share:
    Basic                            $       .13  $       .47  $       .47
    Diluted                                  .13          .46          .46
  Return on tangible equity (2)(3)(4)       5.06%       17.54%       17.52%
  Return on assets (4)                       .29         1.11         1.12
  Dividend payout ratio                    69.23        19.15        19.15
GAAP PERFORMANCE MEASURES
  Per common share:
    Basic earnings                   $       .09  $       .47  $       .26
    Diluted earnings                         .09          .46          .26
    Cash dividends declared                  .09          .09          .09
    Book value                             17.73        17.53        16.98
    Tangible book value (3)                10.94        10.82        10.44
  Key performance ratios:
    Return on equity (2)(4)                 2.01%       10.66%        7.05%
    Return on assets (4)                     .20         1.11          .64
    Net interest margin (4)                 3.73         3.89         3.94
    Efficiency ratio                       57.67        55.34        56.59
    Dividend payout ratio                 100.00        19.15        34.62
    Equity to assets                       10.20        10.32         8.94
    Tangible equity to assets (3)           6.58         6.65         6.65
ASSET QUALITY
  Allowance for loan losses          $    89,423  $    90,935  $    92,471
  Non-performing assets                   46,258       63,337       43,601
  Net charge-offs                         31,012        5,236        2,124
  Allowance for loan losses to loans        1.51%        1.53%        1.54%
  Non-performing assets to total
   assets                                    .56          .77          .54
  Net charge-offs to average loans (4)      2.07          .35          .15
AVERAGE BALANCES
  Loans                              $ 5,940,230  $ 5,966,933  $ 5,619,950
  Investment securities                1,404,796    1,308,192    1,242,448
  Earning assets                       7,424,992    7,332,492    6,915,134
  Total assets                         8,210,120    8,083,739    7,519,392
  Deposits                             6,151,476    6,246,319    5,945,633
  Shareholders' equity                   837,195      834,094      672,348
  Common shares - basic                   47,203       48,348       44,949
  Common shares - diluted                 47,652       48,977       45,761
AT PERIOD END
  Loans                              $ 5,929,263  $ 5,952,749  $ 5,999,093
  Investment securities                1,356,846    1,296,826    1,213,659
  Total assets                         8,207,302    8,180,600    8,087,667
  Deposits                             6,075,951    6,154,308    6,361,269
  Shareholders' equity                   831,902      833,761      828,731
  Common shares outstanding               46,903       47,542       48,781
(1)  Excludes effect of special $15 million fraud related provision for
loan losses recorded in the second quarter of 2007 and an additional $3
million in the fourth quarter of 2007.
(2)  Net income available to common shareholders, which excludes preferred
stock dividends, divided by average realized common equity, which excludes
accumulated other comprehensive income (loss).
(3)  Excludes effect of acquisition related intangibles and associated
amortization.
(4)  Annualized.
                       UNITED COMMUNITY BANKS, INC.
                           Financial Highlights
                      Selected Financial Information
                                         2007         2006        Fourth
                                     -----------  -----------    Quarter
(in thousands, except per share         First       Fourth      2007-2006
data; taxable equivalent)              Quarter      Quarter       Change
                                     -----------  -----------  -----------
INCOME SUMMARY
Interest revenue                     $   129,028  $   123,463
Interest expense                          63,923       60,912
                                     -----------  -----------
    Net interest revenue                  65,105       62,551           11%
Provision for loan losses (1)              3,700        3,700
Fee revenue                               14,382       13,215           22
                                     -----------  -----------
   Total operating revenue                75,787       72,066          (18)
Operating expenses                        44,841       42,521           16
                                     -----------  -----------
    Income before taxes                   30,946       29,545          (66)
Income taxes                              11,601       11,111
                                     -----------  -----------
   Net operating income                   19,345       18,434          (67)
Fraud loss provision, net of tax (1)           -            -
                                     -----------  -----------
   Net income                        $    19,345  $    18,434          (77)
                                     ===========  ===========
OPERATING PERFORMANCE  (1)
  Earnings per common share:
    Basic                            $       .45  $       .45          (71)
    Diluted                                  .44          .44          (70)
  Return on tangible equity (2)(3)(4)      17.18%       17.49%
  Return on assets (4)                      1.11         1.10
  Dividend payout ratio                    20.00        17.78
GAAP PERFORMANCE MEASURES
  Per common share:
    Basic earnings                   $       .45  $       .45          (80)
    Diluted earnings                         .44          .44          (80)
    Cash dividends declared                  .09          .08           13
    Book value                             14.83        14.37           23
    Tangible book value (3)                11.06        10.57            4
  Key performance ratios:
    Return on equity (2)(4)                12.47%       13.26%
    Return on assets (4)                    1.11         1.10
    Net interest margin (4)                 3.99         3.99
    Efficiency ratio                       56.56        55.93
    Dividend payout ratio                  20.00        17.78
    Equity to assets                        8.80         8.21
    Tangible equity to assets (3)           6.66         6.46
ASSET QUALITY
  Allowance for loan losses          $    68,804  $    66,566
  Non-performing assets                   14,290       13,654
  Net charge-offs                          1,462        1,930
  Allowance for loan losses to loans        1.27%        1.24%
  Non-performing assets to total
   assets                                    .20          .19
  Net charge-offs to average loans (4)       .11          .15
AVERAGE BALANCES
  Loans                              $ 5,402,860  $ 5,134,721           16
  Investment securities                1,153,208    1,059,125           33
  Earning assets                       6,599,035    6,225,943           19
  Total assets                         7,092,710    6,669,950           23
  Deposits                             5,764,426    5,517,696           11
  Shareholders' equity                   624,100      547,419           53
  Common shares - basic                   43,000       41,096
  Common shares - diluted                 43,912       42,311
AT PERIOD END
  Loans                              $ 5,402,198  $ 5,376,538           10
  Investment securities                1,150,424    1,107,153           23
  Total assets                         7,186,602    7,101,249           16
  Deposits                             5,841,687    5,772,886            5
  Shareholders' equity                   638,456      616,767           35
  Common shares outstanding               43,038       42,891
(1)  Excludes effect of special $15 million fraud related provision for
loan losses recorded in the second quarter of 2007 and an additional $3
million in the fourth quarter of 2007.
(2)  Net income available to common shareholders, which excludes preferred
stock dividends, divided by average realized common equity, which excludes
accumulated other comprehensive income (loss).
(3)  Excludes effect of acquisition related intangibles and associated
amortization.
(4)  Annualized.
                       UNITED COMMUNITY BANKS, INC.
                           Financial Highlights
                      Selected Financial Information
                                          For the Twelve
                                           Months Ended            YTD
(in thousands, except per share      ------------------------   2007-2006
data; taxable equivalent)                2007         2006        Change
                                     -----------  -----------  -----------
INCOME SUMMARY
Interest revenue                     $   550,917  $   446,695
Interest expense                         276,434      208,815
                                     -----------  -----------
    Net interest revenue                 274,483      237,880           15%
Provision for loan losses (1)             37,600       14,600
Fee revenue                               62,651       49,095           28
                                     -----------  -----------
   Total operating revenue               299,534      272,375           10
Operating expenses                       190,061      162,070           17
                                     -----------  -----------
    Income before taxes                  109,473      110,305           (1)
Income taxes                              40,482       41,490
                                     -----------  -----------
   Net operating income                   68,991       68,815            -
Fraud loss provision, net of tax (1)      10,998            -
                                     -----------  -----------
   Net income                        $    57,993  $    68,815          (16)
                                     ===========  ===========
OPERATING PERFORMANCE  (1)
  Earnings per common share:
    Basic                            $      1.50  $      1.70          (12)
    Diluted                                 1.48         1.66          (11)
  Return on tangible equity (2)(3)(4)      14.23%       17.52%
  Return on assets (4)                       .89         1.09
  Dividend payout ratio                    24.00        18.82
GAAP PERFORMANCE MEASURES
  Per common share:
    Basic earnings                   $      1.26  $      1.70          (26)
    Diluted earnings                        1.24         1.66          (25)
    Cash dividends declared                  .36          .32           13
    Book value                             17.73        14.37           23
    Tangible book value (3)                10.94        10.57            4
  Key performance ratios:
    Return on equity (2)(4)                 7.79%       13.28%
    Return on assets (4)                     .75         1.09
    Net interest margin (4)                 3.88         4.05
    Efficiency ratio                       56.53        56.22
    Dividend payout ratio                  28.57        18.82
    Equity to assets                        9.61         8.06
    Tangible equity to assets (3)           6.63         6.32
ASSET QUALITY
  Allowance for loan losses          $    89,423  $    66,566
  Non-performing assets                   46,258       13,654
  Net charge-offs                         39,834        5,524
  Allowance for loan losses to loans        1.51%        1.24%
  Non-performing assets to total
   assets                                    .56          .19
  Net charge-offs to average loans (4)       .69          .12
AVERAGE BALANCES
  Loans                              $ 5,734,608  $ 4,800,981           19
  Investment securities                1,277,935    1,041,897           23
  Earning assets                       7,070,900    5,877,483           20
  Total assets                         7,730,530    6,287,148           23
  Deposits                             6,028,625    5,017,435           20
  Shareholders' equity                   742,771      506,946           47
  Common shares - basic                   45,893       40,393
  Common shares - diluted                 46,593       41,575
AT PERIOD END
  Loans                              $ 5,929,263  $ 5,376,538           10
  Investment securities                1,356,846    1,107,153           23
  Total assets                         8,207,302    7,101,249           16
  Deposits                             6,075,951    5,772,886            5
  Shareholders' equity                   831,902      616,767           35
  Common shares outstanding               46,903       42,891
(1)  Excludes effect of special $15 million fraud related provision for
loan losses recorded in the second quarter of 2007 and an additional $3
million in the fourth quarter of 2007.
(2)  Net income available to common shareholders, which excludes preferred
stock dividends, divided by average realized common equity, which excludes
accumulated other comprehensive income (loss).
(3)  Excludes effect of acquisition related intangibles and associated
amortization.
(4)  Annualized.
                       UNITED COMMUNITY BANKS, INC.
                      Selected Financial Information
                     For the Years Ended December 31,
 (in thousands, except per share data;
  taxable equivalent)                    2007         2006         2005
                                     -----------  -----------  -----------
 INCOME SUMMARY
 Interest revenue                    $   550,917  $   446,695  $   324,225
 Interest expense                        276,434      208,815      127,426
                                     -----------  -----------  -----------
     Net interest revenue                274,483      237,880      196,799
 Provision for loan losses                37,600       14,600       12,100
 Fee revenue                              62,651       49,095       46,148
                                     -----------  -----------  -----------
    Total revenue                        299,534      272,375      230,847
 Operating expenses (1)                  190,061      162,070      140,808
                                     -----------  -----------  -----------
     Income before taxes                 109,473      110,305       90,039
 Income taxes                             40,482       41,490       33,297
                                     -----------  -----------  -----------
    Net operating income                  68,991       68,815       56,742
 Fraud loss provision, net of tax         10,998            -            -
 Merger-related charges, net of tax            -            -            -
                                     -----------  -----------  -----------
    Net income                       $    57,993  $    68,815  $    56,742
                                     ===========  ===========  ===========
 OPERATING PERFORMANCE  (1)
  Earnings per common share:
    Basic                            $      1.50  $      1.70  $      1.47
    Diluted                                 1.48         1.66         1.43
  Return on tangible equity (2)(3)         14.23%       17.52%       18.99%
  Return on assets                           .89         1.09         1.04
  Efficiency ratio                         56.53        56.35        57.77
  Dividend payout ratio                    24.00        18.82        19.05
 GAAP PERFORMANCE
  Per common share:
    Basic earnings                   $      1.26  $      1.70  $      1.47
    Diluted earnings                        1.24         1.66         1.43
    Cash dividends declared
     (rounded)                               .36          .32          .28
    Book value                             17.73        14.37        11.80
    Tangible book value (3)                10.94        10.57         8.94
  Key performance ratios:
    Return on equity (2)                    7.79%       13.28%       13.46%
    Return on assets                         .75         1.09         1.04
    Net interest margin                     3.88         4.05         3.85
    Dividend payout ratio                  28.57        18.82        19.05
    Equity to assets                        9.61         8.06         7.63
    Tangible equity to assets (3)           6.63         6.32         5.64
 ASSET QUALITY
   Allowance for loan losses         $    89,423  $    66,566  $    53,595
   Non-performing assets                  46,258       13,654       12,995
   Net charge-offs                        39,834        5,524        5,701
   Allowance for loan losses to loans       1.51%        1.24%        1.22%
   Non-performing assets to total
    assets                                   .56          .19          .22
   Net charge-offs to average loans          .69          .12          .14
 AVERAGE BALANCES
   Loans                             $ 5,734,608  $ 4,800,981  $ 4,061,091
   Investment securities               1,277,935    1,041,897      989,201
   Earning assets                      7,070,900    5,877,483    5,109,053
   Total assets                        7,730,530    6,287,148    5,472,200
   Deposits                            6,028,625    5,017,435    4,003,084
   Shareholders' equity                  742,771      506,946      417,309
   Common shares - Basic                  45,893       40,393       38,477
   Common shares - Diluted                46,593       41,575       39,721
 AT YEAR END
   Loans                             $ 5,929,263  $ 5,376,538  $ 4,398,286
   Investment securities               1,356,846    1,107,153      990,687
   Total assets                        8,207,302    7,101,249    5,865,756
   Deposits                            6,075,951    5,772,886    4,477,600
   Shareholders' equity                  831,902      616,767      472,686
   Common shares outstanding              46,903       42,891       40,020
(1) Excludes pre-tax provision for fraud losses of $18 million, or $.24 per
diluted common share, recorded in 2007 and pre-tax merger-related charges
totaling $.9 million, or $.02 per diluted common share, recorded in 2004
and $2.1 million, or $.04 per diluted common share, recorded in 2003.
(2) Net income available to common stockholders, which excludes preferred
stock dividends, divided by average realized common equity which excludes
accumulated other comprehensive income (loss).
(3) Excludes effect of acquisition related intangibles and associated
amortization.
(4) Compound annual growth rate.
                       UNITED COMMUNITY BANKS, INC.
                      Selected Financial Information
                     For the Years Ended December 31,
 (in thousands, except
  per share data;                                                5 Year
 taxable equivalent)        2004         2003         2002       CAGR (4)
                        -----------  -----------  -----------  -----------
 INCOME SUMMARY
 Interest revenue       $   227,792  $   198,689  $   185,498
 Interest expense            74,794       70,600       76,357
                        -----------  -----------  -----------
     Net interest
      revenue               152,998      128,089      109,141           20%
 Provision for loan
  losses                      7,600        6,300        6,900
 Fee revenue                 39,539       38,184       30,734           15
                        -----------  -----------  -----------
    Total revenue           184,937      159,973      132,975           18
 Operating expenses (1)     110,974       97,251       80,690           19
                        -----------  -----------  -----------
     Income before
      taxes                  73,963       62,722       52,285           16
 Income taxes                26,807       23,247       19,505
                        -----------  -----------  -----------
    Net operating
     income                  47,156       39,475       32,780           16
 Fraud loss provision,
  net of tax                      -            -            -
 Merger-related
  charges, net of tax           565        1,357            -
                        -----------  -----------  -----------
    Net income          $    46,591  $    38,118  $    32,780           12
                        ===========  ===========  ===========
 OPERATING PERFORMANCE
   (1)
  Earnings per common
   share:
    Basic               $      1.31  $      1.15  $      1.02            8
    Diluted                    1.27         1.12          .99            8
  Return on tangible
   equity (2)(3)              19.74%       19.24%       17.88%
  Return on assets             1.07         1.06         1.11
  Efficiency ratio            57.65        58.39        57.72
  Dividend payout ratio       18.32        17.39        16.34
 GAAP PERFORMANCE
  Per common share:
    Basic earnings      $      1.29  $      1.11  $      1.02            4
    Diluted earnings           1.25         1.08          .99            5
    Cash dividends
     declared (rounded)         .24          .20          .17           17
    Book value                10.39         8.47         6.89           21
    Tangible book value
     (3)                       7.34         6.52         6.49           11
  Key performance
   ratios:
    Return on equity
     (2)                      14.39%       14.79%       16.54%
    Return on assets           1.05         1.02         1.11
    Net interest margin        3.71         3.68         3.95
    Dividend payout
     ratio                    18.60        18.02        16.34
    Equity to assets           7.45         7.21         7.01
    Tangible equity to
     assets (3)                5.78         6.02         6.60
 ASSET QUALITY
   Allowance for loan
    losses              $    47,196  $    38,655  $    30,914
   Non-performing
    assets                    8,725        7,589        8,019
   Net charge-offs            3,617        4,097        3,111
   Allowance for loan
    losses to loans            1.26%        1.28%        1.30%
   Non-performing
    assets to total
    assets                      .17          .19          .25
   Net charge-offs to
    average loans               .11          .15          .14
 AVERAGE BALANCES
   Loans                $ 3,322,916  $ 2,753,451  $ 2,239,875           21
   Investment
    securities              734,577      667,211      464,468           22
   Earning assets         4,119,327    3,476,030    2,761,265           21
   Total assets           4,416,835    3,721,284    2,959,295           21
   Deposits               3,247,612    2,743,087    2,311,717           21
   Shareholders' equity     329,225      268,446      207,312           29
   Common shares -
    Basic                    36,071       34,132       32,062
   Common shares -
    Diluted                  37,273       35,252       33,241
 AT YEAR END
   Loans                $ 3,734,905  $ 3,015,997  $ 2,381,798           20
   Investment
    securities              879,978      659,891      559,390           19
   Total assets           5,087,702    4,068,834    3,211,344           21
   Deposits               3,680,516    2,857,449    2,385,239           21
   Shareholders' equity     397,088      299,373      221,579           30
   Common shares
    outstanding              38,168       35,289       31,895            8
(1) Excludes pre-tax provision for fraud losses of $18 million, or $.24 per
diluted common share, recorded in 2007 and pre-tax merger-related charges
totaling $.9 million, or $.02 per diluted common share, recorded in 2004
and $2.1 million, or $.04 per diluted common share, recorded in 2003.
(2) Net income available to common stockholders, which excludes preferred
stock dividends, divided by average realized common equity which excludes
accumulated other comprehensive income (loss).
(3) Excludes effect of acquisition related intangibles and associated
amortization.
(4) Compound annual growth rate.
                       UNITED COMMUNITY BANKS, INC.
                           Financial Highlights
                 Loan Portfolio Composition at Period-End
                                                   2007
                                -------------------------------------------
                                  Fourth     Third      Second     First
(in millions)                    Quarter    Quarter   Quarter(1)  Quarter
                                ---------- ---------- ---------- ----------
LOANS BY CATEGORY
Commercial (sec. by RE)         $    1,476 $    1,441 $    1,461 $    1,227
Commercial construction                527        527        509        462
Commercial & industrial                418        408        421        315
                                ---------- ---------- ---------- ----------
     Total commercial                2,421      2,376      2,391      2,004
Residential construction             1,829      1,939      2,013      1,874
Residential mortgage                 1,502      1,459      1,413      1,353
Consumer / installment                 177        179        182        171
                                ---------- ---------- ---------- ----------
     Total loans                $    5,929 $    5,953 $    5,999 $    5,402
                                ========== ========== ========== ==========
LOANS BY MARKET
Atlanta Region                  $    2,402 $    2,451 $    2,518 $    2,015
North Georgia                        2,060      2,026      2,032      2,010
Western North Carolina                 806        834        816        782
Coastal Georgia                        415        402        396        372
East Tennessee                         246        240        237        223
                                ---------- ---------- ---------- ----------
     Total loans                $    5,929 $    5,953 $    5,999 $    5,402
                                ========== ========== ========== ==========
RESIDENTIAL CONSTRUCTION
Dirt loans
     Acquisition & development  $      592 $      596 $      602 $      580
     Land loans                        126        125        113        122
     Lot loans                         407        403        393        362
                                ---------- ---------- ---------- ----------
          Total                      1,125      1,124      1,108      1,064
                                ---------- ---------- ---------- ----------
House loans
     Spec                              473        539        596        533
     Sold                              231        276        309        277
                                ---------- ---------- ---------- ----------
          Total                        704        815        905        810
                                ---------- ---------- ---------- ----------
Total residential construction  $    1,829 $    1,939 $    2,013 $    1,874
                                ========== ========== ========== ==========
RESIDENTIAL CONSTRUCTION -
 ATLANTA REGION
Dirt loans
     Acquisition & development  $      311 $      312 $      336 $      317
     Land loans                         54         53         50         52
     Lot loans                         131        135        140        113
                                ---------- ---------- ---------- ----------
          Total                        496        500        526        482
                                ---------- ---------- ---------- ----------
House loans
     Spec                              286        328        378        298
     Sold                               82        112        140        124
                                ---------- ---------- ---------- ----------
          Total                        368        440        518        422
                                ---------- ---------- ---------- ----------
Total residential construction  $      864 $      940 $    1,044 $      904
                                ========== ========== ========== ==========
(1)  Acquired Gwinnett Commercial Group on June 1, 2007 with total loans of
$534 million in the Atlanta Region.
(2)  Annualized.
                       UNITED COMMUNITY BANKS, INC.
                           Financial Highlights
                 Loan Portfolio Composition at Period-End
                                         Linked
                                         Quarter
                               2006     Change(2)   Year over Year Change
                            ----------- ---------   ---------------------
                              Fourth                            Excluding
(in millions)                 Quarter     Actual      Actual     Acquired
                            ----------- ---------   ---------   ---------
LOANS BY CATEGORY
Commercial (sec. by RE)     $     1,230        10%         20%          3%
Commercial construction             470         -          12           7
Commercial & industrial             296        10          41           4
                            -----------
     Total commercial             1,996         8          21           4
Residential construction          1,864       (23)         (2)        (11)
Residential mortgage              1,338        12          12          11
Consumer / installment              179        (4)         (1)         (6)
                            -----------
     Total loans            $     5,377        (2)         10           -
                            ===========
LOANS BY MARKET
Atlanta Region              $     2,005        (8)%        20 %        (7)%
North Georgia                     2,034         7           1           1
Western North Carolina              773       (13)          4           4
Coastal Georgia                     358        13          16          16
East Tennessee                      207        10          19          19
                            -----------
     Total loans            $     5,377        (2)         10           -
                            ===========
RESIDENTIAL CONSTRUCTION
Dirt loans
     Acquisition &
      development           $       579        (3)%         2 %        (6)%
     Land loans                     127         3          (1)         (3)
     Lot loans                      364         4          12           5
                            -----------
          Total                   1,070         -           5          (2)
                            -----------
House loans
     Spec                           516       (49)         (8)        (21)
     Sold                           278       (65)        (17)        (28)
                            -----------
          Total                     794       (54)        (11)        (23)
                            -----------
Total residential
 construction               $     1,864       (23)         (2)        (11)
                            ===========
RESIDENTIAL CONSTRUCTION -
 ATLANTA REGION
Dirt loans
     Acquisition &
      development           $       321        (1)%        (3)%       (18)%
     Land loans                      57         8          (5)        (11)
     Lot loans                      109       (12)         20          (3)
                            -----------
          Total                     487        (3)          2         (14)
                            -----------
House loans
     Spec                           297       (51)         (4)        (25)
     Sold                           117      (107)        (30)        (57)
                            -----------
          Total                     414       (65)        (11)        (34)
                            -----------
Total residential
 construction               $       901       (32)         (4)        (23)
                            ===========
(1)  Acquired Gwinnett Commercial Group on June 1, 2007 with total loans of
$534 million in the Atlanta Region.
(2)  Annualized.
                       UNITED COMMUNITY BANKS, INC.
                           Financial Highlights
                  Loan Portfolio Composition at Year-End
(in millions)                         2007    2006    2005    2004    2003
                                    ------- ------- ------- ------- -------
LOANS BY CATEGORY
Commercial (sec. by RE)             $ 1,476 $ 1,230 $ 1,055 $   966 $   777
Commercial construction                 527     470     358     239     164
Commercial & industrial                 418     296     237     212     190
                                    ------- ------- ------- ------- -------
     Total commercial                 2,421   1,996   1,650   1,417   1,131
Residential construction              1,829   1,864   1,381   1,066     763
Residential mortgage                  1,502   1,338   1,206   1,102     982
Consumer / installment                  177     179     161     150     140
                                    ------- ------- ------- ------- -------
     Total loans                    $ 5,929 $ 5,377 $ 4,398 $ 3,735 $ 3,016
                                    ======= ======= ======= ======= =======
LOANS BY MARKET
Atlanta Region                      $ 2,402 $ 2,005 $ 1,456 $ 1,061 $   662
North Georgia                         2,060   2,034   1,790   1,627   1,481
Western North Carolina                  806     773     668     633     548
Coastal Georgia                         415     358     306     274     222
East Tennessee                          246     207     178     140     103
                                    ------- ------- ------- ------- -------
  Total loans                       $ 5,929 $ 5,377 $ 4,398 $ 3,735 $ 3,016
                                    ======= ======= ======= ======= =======
                       UNITED COMMUNITY BANKS, INC.
            Operating Earnings to GAAP Earnings Reconciliation
                  (in thousands, except per share data)
                                               Fourth     Third    Second
                                              Quarter   Quarter   Quarter
                                                2007      2007      2007
                                              --------  --------  --------
Special provision for fraud related loan
 losses                                       $  3,000  $      -  $ 15,000
                                              --------  --------  --------
Merger-related charges included in expenses:
     Salaries and employee benefits -
      severance and related costs                    -         -         -
     Professional fees                               -         -         -
     Contract termination costs                      -         -         -
     Other merger-related expenses                   -         -         -
                                              --------  --------  --------
          Total merger-related charges               -         -         -
                                              --------  --------  --------
            Pre-tax earnings impact of
             non-operating charges               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 Reconciliation
Operating net income                          $  6,034  $ 22,536  $ 21,076
After-tax effect of special provision and
 merger-related charges                         (1,833)        -    (9,165)
                                              --------  --------  --------
     Net income (GAAP)                        $  4,201  $ 22,536  $ 11,911
                                              ========  ========  ========
Basic Earnings Per Share Reconciliation
Basic operating earnings per share            $    .13  $    .47  $    .47
Per share effect of special provision and
 merger-related charges                           (.04)        -      (.21)
                                              --------  --------  --------
     Basic earnings per share (GAAP)          $    .09  $    .47  $    .26
                                              ========  ========  ========
Diluted Earnings Per Share Reconciliation
Diluted operating earnings per share          $    .13  $    .46  $    .46
Per share effect of special provision and
 merger-related charges                           (.04)        -      (.20)
                                              --------  --------  --------
     Diluted earnings per share (GAAP)        $    .09  $    .46  $    .26
                                              ========  ========  ========
Provision for Loan Losses Reconciliation
Operating provision for loan losses           $ 26,500  $  3,700  $  3,700
Special provision for fraud related loan
 losses                                          3,000         -    15,000
                                              --------  --------  --------
     Provision for loan losses (GAAP)         $ 29,500  $  3,700  $ 18,700
                                              ========  ========  ========
Nonperforming Assets Reconciliation
Nonperforming assets excluding fraud-related
 assets                                       $ 40,956  $ 39,761  $ 19,968
Fraud-related loans and OREO included in
 nonperforming assets                            5,302    23,576    23,633
                                              --------  --------  --------
     Nonperforming assets (GAAP)              $ 46,258  $ 63,337  $ 43,601
                                              ========  ========  ========
Allowance for Loan Losses Reconciliation
Allowance for loan losses excluding special
 fraud-related allowance                      $ 89,423  $ 75,935  $ 77,471
Fraud-related allowance for loan losses              -    15,000    15,000
                                              --------  --------  --------
     Allowance for loan losses (GAAP)         $ 89,423  $ 90,935  $ 92,471
                                              ========  ========  ========
Net Charge Offs Reconciliation
Net charge offs excluding charge off of
 fraud-related loans                          $ 13,012  $  5,236  $  2,124
Fraud-related loans charged off                 18,000         -         -
                                              --------  --------  --------
     Net charge offs (GAAP)                   $ 31,012  $  5,236  $  2,124
                                              ========  ========  ========
Allowance for Loan Losses to Loans Ratio
 Reconciliation
Allowance for loan losses to loans ratio
 excluding fraud-related allowance                1.51%     1.28%     1.29%
Portion of allowance assigned to
 fraud-related loans                                 -       .25       .25
                                              --------  --------  --------
     Allowance for loan losses to loans ratio
      (GAAP)                                      1.51%     1.53%     1.54%
                                              ========  ========  ========
Nonperforming Assets to Total Assets Ratio
 Reconciliation
Nonperforming assets to total assets ratio
 excluding fraud-related assets                    .50%      .49%      .25%
Fraud-related nonperforming assets                 .06       .28       .29
                                              --------  --------  --------
     Nonperforming assets to total assets
      ratio (GAAP)                                 .56%      .77%      .54%
                                              ========  ========  ========
Net Charge Offs to Average Loans Ratio
 Reconciliation
Net charge offs to average loans ratio
 excluding fraud-related loans                     .87%      .35%      .15%
Charge offs of fraud-related loans                1.20         -         -
                                              --------  --------  --------
     Net charge offs to average loans ratio
      (GAAP)                                      2.07%      .35%      .15%
                                              ========  ========  ========
Operating Expenses Reconciliation
Operating expenses (operating basis)          $ 49,336  $ 47,702  $ 47,702
Merger-related charges                               -         -         -
                                              --------  --------  --------
     Operating expenses (GAAP)                $ 49,336  $ 47,702  $ 47,702
                                              ========  ========  ========
UNITED COMMUNITY BANKS, INC.
Operating Earnings to GAAP Earnings Reconciliation
(in thousands, except per share data)
                                               Years Ended December 31,
                                           -------------------------------
                                             2007       2004       2003
                                           ---------  ---------  ---------
Special provision for fraud related loan
 losses                                    $  18,000  $       -  $       -
                                           ---------  ---------  ---------
Merger-related charges included in
 expenses:
     Salaries and employee benefits -
      severance and related costs                  -        203        135
     Professional fees                             -        407        885
     Contract termination costs                    -        119        566
     Other merger-related expenses                 -        141        502
                                           ---------  ---------  ---------
        Total merger-related charges               -        870      2,088
                                           ---------  ---------  ---------
          Pre-tax earnings impact of
           non-operating charges              18,000        870      2,088
Income tax effect of special provision         7,002        305        731
                                           ---------  ---------  ---------
        After-tax effect of special
         provision                         $  10,998  $     565  $   1,357
                                           =========  =========  =========
Net Income Reconciliation
Operating net income                       $  68,991  $  47,156  $  39,475
After-tax effect of special provision and
 merger-related charges                      (10,998)      (565)    (1,357)
                                           ---------  ---------  ---------
     Net income (GAAP)                     $  57,993  $  46,591  $  38,118
                                           =========  =========  =========
Basic Earnings Per Share Reconciliation
Basic operating earnings per share         $    1.50  $    1.31  $    1.15
Per share effect of special provision and
 merger-related charges                         (.24)      (.02)      (.04)
                                           ---------  ---------  ---------
     Basic earnings per share (GAAP)       $    1.26  $    1.29  $    1.11
                                           =========  =========  =========
Diluted Earnings Per Share Reconciliation
Diluted operating earnings per share       $    1.48  $    1.27  $    1.12
Per share effect of special provision and
 merger-related charges                         (.24)      (.02)      (.04)
                                           ---------  ---------  ---------
     Diluted earnings per share (GAAP)     $    1.24  $    1.25  $    1.08
                                           =========  =========  =========
Provision for Loan Losses Reconciliation
Operating provision for loan losses        $  37,600  $   7,600  $   6,300
Special provision for fraud related loan
 losses                                       18,000          -          -
                                           ---------  ---------  ---------
     Provision for loan losses (GAAP)      $  55,600  $   7,600  $   6,300
                                           =========  =========  =========
Nonperforming Assets Reconciliation
Nonperforming assets excluding
 fraud-related assets                      $  40,956  $   8,725  $   7,589
Fraud-related loans and OREO included in
 nonperforming assets                          5,302          -          -
                                           ---------  ---------  ---------
     Nonperforming assets (GAAP)           $  46,258  $   8,725  $   7,589
                                           =========  =========  =========
Allowance for Loan Losses Reconciliation
Allowance for loan losses excluding
 special fraud-related allowance           $  89,423  $  47,196  $  38,655
Fraud-related allowance for loan losses            -          -          -
                                           ---------  ---------  ---------
     Allowance for loan losses (GAAP)      $  89,423  $  47,196  $  38,655
                                           =========  =========  =========
Net Charge Offs Reconciliation
Net charge offs excluding charge off of
 fraud-related loans                       $  21,834  $   3,617  $   4,097
Fraud-related loans charged off               18,000          -          -
                                           ---------  ---------  ---------
     Net charge offs (GAAP)                $  39,834  $   3,617  $   4,097
                                           =========  =========  =========
Allowance for Loan Losses to Loans Ratio
 Reconciliation
Allowance for loan losses to loans ratio
 excluding fraud-related allowance              1.51%      1.26%      1.28%
Portion of allowance assigned to
 fraud-related loans                               -          -          -
                                           ---------  ---------  ---------
     Allowance for loan losses to loans
      ratio (GAAP)                              1.51%      1.26%      1.28%
                                           =========  =========  =========
Nonperforming Assets to Total Assets Ratio
 Reconciliation
Nonperforming assets to total assets ratio
 excluding fraud-related assets                  .50%       .17%       .19%
Fraud-related nonperforming assets               .06          -          -
                                           ---------  ---------  ---------
     Nonperforming assets to total assets
      ratio (GAAP)                               .56%       .17%       .19%
                                           =========  =========  =========
Net Charge Offs to Average Loans Ratio
 Reconciliation
Net charge offs to average loans ratio
 excluding fraud-related loans                   .38%       .11%       .15%
Charge offs of fraud-related loans               .31          -          -
                                           ---------  ---------  ---------
     Net charge offs to average loans
      ratio (GAAP)                               .69%       .11%       .15%
                                           =========  =========  =========
Operating Expenses Reconciliation
Operating expenses (operating basis)       $ 190,061  $ 110,974  $  97,251
Merger-related charges                             -        870      2,088
                                           ---------  ---------  ---------
     Operating expenses (GAAP)             $ 190,061  $ 111,844  $  99,339
                                           =========  =========  =========
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income
                                                       Three Months Ended
                                                          December 31,
                                                      --------------------
 (in thousands, except per share data)                  2007       2006
                                                      ---------  ---------
Interest revenue:
  Loans, including fees                               $ 121,248  $ 109,869
  Investment securities:
    Taxable                                              18,296     12,488
    Tax exempt                                              405        472
  Federal funds sold and deposits in banks                  336        117
                                                      ---------  ---------
    Total interest revenue                              140,285    122,946
                                                      ---------  ---------
Interest expense:
  Deposits:
    NOW                                                  10,999      9,120
    Money market                                          4,314      2,527
    Savings                                                 417        248
    Time                                                 40,934     40,645
                                                      ---------  ---------
     Total deposit interest expense                      56,664     52,540
  Federal funds purchased, repurchase agreements
   and other short-term borrowings                        6,010      1,505
  Federal Home Loan Bank advances                         6,275      4,677
  Long-term debt                                          2,089      2,190
                                                      ---------  ---------
    Total interest expense                               71,038     60,912
                                                      ---------  ---------
    Net interest revenue                                 69,247     62,034
  Provision for loan losses                              29,500      3,700
                                                      ---------  ---------
    Net interest revenue after provision for loan
     losses                                              39,747     58,334
                                                      ---------  ---------
Fee revenue:
  Service charges and fees                                8,350      7,064
  Mortgage loan and other related fees                    1,720      2,154
  Consulting fees                                         2,577      2,095
  Brokerage fees                                          1,064        653
  Securities gains (losses), net                          1,364       (258)
  Losses on prepayment of borrowings                     (1,078)         -
  Other                                                   2,103      1,507
                                                      ---------  ---------
    Total fee revenue                                    16,100     13,215
                                                      ---------  ---------
    Total revenue                                        55,847     71,549
                                                      ---------  ---------
Operating expenses:
  Salaries and employee benefits                         27,116     26,524
  Communications and equipment                            3,890      4,101
  Occupancy                                               3,489      2,839
  Advertising and public relations                        1,873      1,905
  Postage, printing and supplies                          1,546      1,564
  Professional fees                                       1,809      1,274
  Amortization of intangibles                               771        523
  Other                                                   8,842      3,791
                                                      ---------  ---------
    Total operating expenses                             49,336     42,521
                                                      ---------  ---------
  Income before income taxes                              6,511     29,028
  Income taxes                                            2,310     10,594
                                                      ---------  ---------
    Net income                                        $   4,201  $  18,434
                                                      =========  =========
Earnings per common share:
  Basic                                               $     .09  $     .45
  Diluted                                                   .09        .44
Dividends per common share                                  .09        .08
Weighted average common shares outstanding:
  Basic                                                  47,203     41,096
  Diluted                                                47,652     42,311
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income
                                                      Twelve Months Ended
                                                          December 31,
                                                      --------------------
 (in thousands, except per share data)                  2007       2006
                                                      ---------  ---------
Interest revenue:
  Loans, including fees                               $ 482,333  $ 394,907
  Investment securities:
    Taxable                                              64,377     47,149
    Tax exempt                                            1,718      1,969
  Federal funds sold and deposits in banks                  608        802
                                                      ---------  ---------
      Total interest revenue                            549,036    444,827
                                                      ---------  ---------
Interest expense:
  Deposits:
    NOW                                                  45,142     30,549
    Money market                                         15,396      7,496
    Savings                                               1,653        928
    Time                                                167,400    130,324
                                                      ---------  ---------
      Total deposit interest expense                    229,591    169,297
  Federal funds purchased, repurchase agreements
   and other short-term borrowings                       16,236      7,319
  Federal Home Loan Bank advances                        22,013     23,514
  Long-term debt                                          8,594      8,685
                                                      ---------  ---------
    Total interest expense                              276,434    208,815
                                                      ---------  ---------
    Net interest revenue                                272,602    236,012
  Provision for loan losses                              55,600     14,600
                                                      ---------  ---------
    Net interest revenue after provision for loan
     losses                                             217,002    221,412
                                                      ---------  ---------
Fee revenue:
  Service charges and fees                               31,433     27,159
  Mortgage loan and other related fees                    8,537      7,303
  Consulting fees                                         8,946      7,291
  Brokerage fees                                          4,095      3,083
  Securities gains (losses), net                          3,182       (643)
  Losses on prepayment of borrowings                     (2,242)      (636)
  Other                                                   8,700      5,538
                                                      ---------  ---------
    Total fee revenue                                    62,651     49,095
                                                      ---------  ---------
    Total revenue                                       279,653    270,507
                                                      ---------  ---------
Operating expenses:
  Salaries and employee benefits                        115,153    100,964
  Communications and equipment                           15,483     15,071
  Occupancy                                              13,613     11,632
  Advertising and public relations                        7,524      7,623
  Postage, printing and supplies                          6,365      5,748
  Professional fees                                       7,218      4,442
  Amortization of intangibles                             2,739      2,032
  Other                                                  21,966     14,558
                                                      ---------  ---------
    Total operating expenses                            190,061    162,070
                                                      ---------  ---------
  Income before income taxes                             89,592    108,437
  Income taxes                                           31,599     39,622
                                                      ---------  ---------
    Net income                                        $  57,993  $  68,815
                                                      =========  =========
Earnings per common share:
  Basic                                               $    1.26  $    1.70
  Diluted                                                  1.24       1.66
Dividends per common share                                  .36        .32
Weighted average common shares outstanding:
  Basic                                                  45,893     40,393
  Diluted                                                46,593     41,575
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
                                              December 31,   December 31,
 (in thousands, except share and per share        2007           2006
  data)                                       -------------  -------------
                                               (unaudited)    (unaudited)
 ASSETS
   Cash and due from banks                    $     157,549  $     158,348
   Interest-bearing deposits in banks                62,074         12,936
                                              -------------  -------------
     Cash and cash equivalents                      219,623        171,284
   Securities available for sale                  1,356,846      1,107,153
   Mortgage loans held for sale                      28,004         35,325
   Loans, net of unearned income                  5,929,263      5,376,538
     Less allowance for loan losses                  89,423         66,566
                                              -------------  -------------
        Loans, net                                5,839,840      5,309,972
   Premises and equipment, net                      180,088        139,716
   Accrued interest receivable                       62,828         58,291
   Goodwill and other intangible assets             325,305        167,058
   Other assets                                     194,768        112,450
                                              -------------  -------------
     Total assets                             $   8,207,302  $   7,101,249
                                              =============  =============
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Liabilities:
   Deposits:
     Demand                                   $     700,941  $     659,892
     NOW                                          1,474,818      1,307,654
     Money market                                   452,917        255,862
     Savings                                        186,392        175,631
     Time:
       Less than $100,000                         1,573,604      1,650,906
       Greater than $100,000                      1,364,763      1,397,245
       Brokered                                     322,516        325,696
                                              -------------  -------------
          Total deposits                          6,075,951      5,772,886
   Federal funds purchased, repurchase
    agreements and other short-term
    borrowings                                      638,462         65,884
   Federal Home Loan Bank advances                  519,782        489,084
   Long-term debt                                   107,996        113,151
   Accrued expenses and other liabilities            33,209         43,477
                                              -------------  -------------
     Total liabilities                            7,375,400      6,484,482
                                              -------------  -------------
 Shareholders' equity:
   Preferred stock, $1 par value; $10 stated
    value; 10,000,000 shares authorized;
    25,800 and 32,200 shares issued and
    outstanding                                         258            322
   Common stock, $1 par value; 100,000,000
    shares authorized; 48,809,301 and
    42,890,863 shares issued                         48,809         42,891
   Common stock issuable; 73,250 and 29,821
    shares                                            2,100            862
   Capital surplus                                  462,881        270,383
   Retained earnings                                347,391        306,261
   Treasury stock; 1,905,921 shares as of
    December 31, 2007, at cost                      (43,798)             -
   Accumulated other comprehensive income
    (loss)                                           14,261         (3,952)
                                              -------------  -------------
     Total shareholders' equity                     831,902        616,767
     Total liabilities and shareholders'
      equity                                  $   8,207,302  $   7,101,249
                                              =============  =============
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 31,
                                                         2007
                                         ---------------------------------
(dollars in thousands, taxable             Average                   Avg.
 equivalent)                               Balance      Interest     Rate
                                         -----------  ------------ -------
Assets:
Interest-earning assets:
  Loans, net of unearned income (1)(2)   $ 5,940,230  $    121,161    8.09%
  Taxable securities (3)                   1,366,507        18,296    5.36
  Tax-exempt securities (1) (3)               38,289           666    6.96
  Federal funds sold and other
   interest-earning assets                    79,966           645    3.23
                                         -----------  ------------
     Total interest-earning assets         7,424,992       140,768    7.53
                                         -----------  ------------
Non-interest-earning assets:
  Allowance for loan losses                  (89,797)
  Cash and due from banks                    147,500
  Premises and equipment                     177,445
  Other assets (3)                           549,980
                                         -----------
     Total assets                        $ 8,210,120
                                         ===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
  Interest-bearing deposits:
   NOW                                   $ 1,491,091  $     10,999    2.93
   Money market                              483,289         4,314    3.54
   Savings                                   191,133           417     .87
   Time less than $100,000                 1,583,777        19,408    4.86
   Time greater than $100,000              1,362,812        17,467    5.08
   Brokered                                  323,175         4,059    4.98
                                         -----------  ------------
       Total interest-bearing deposits     5,435,277        56,664    4.14
                                         -----------  ------------
   Federal funds purchased and other
    borrowings                               466,408         6,010    5.11
   Federal Home Loan Bank advances           531,196         6,275    4.69
   Long-term debt                            143,814         2,089    5.76
                                         -----------  ------------
      Total borrowed funds                 1,141,418        14,374    5.00
                                         -----------  ------------
      Total interest-bearing liabilities   6,576,695        71,038    4.29
                                                      ------------
Non-interest-bearing liabilities:
  Non-interest-bearing deposits              716,199
  Other liabilities                           80,031
                                         -----------
     Total liabilities                     7,372,925
Shareholders' equity                         837,195
                                         -----------
     Total liabilities and shareholders'
      equity                             $ 8,210,120
                                         ===========
Net interest revenue                                  $     69,730
                                                      ============
Net interest-rate spread                                              3.24%
                                                                   =======
Net interest margin (4)                                               3.73%
                                                                   =======
(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 losses of $799 thousand in 2007 and $12.7 million in 2006 are
included in other assets for purposes of this presentation.
(4)  Net interest margin is taxable equivalent net-interest revenue divided
by average interest-earning assets.
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 31,
                                                        2006
                                         ---------------------------------
(dollars in thousands, taxable             Average                   Avg.
 equivalent)                               Balance      Interest     Rate
                                         -----------  ------------ -------
Assets:
Interest-earning assets:
  Loans, net of unearned income (1)(2)   $ 5,134,721  $    109,756    8.48%
  Taxable securities (3)                   1,014,959        12,488    4.92
  Tax-exempt securities (1) (3)               44,166           777    7.04
  Federal funds sold and other
   interest-earning assets                    32,097           442    5.51
                                         -----------  ------------
     Total interest-earning assets         6,225,943       123,463    7.87
                                         -----------  ------------
Non-interest-earning assets:
  Allowance for loan losses                  (64,301)
  Cash and due from banks                    121,276
  Premises and equipment                     133,364
  Other assets (3)                           253,668
                                         -----------
     Total assets                        $ 6,669,950
                                         ===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
  Interest-bearing deposits:
   NOW                                   $ 1,181,578  $      9,120    3.06
   Money market                              248,530         2,527    4.03
   Savings                                   170,472           248     .58
   Time less than $100,000                 1,578,369        19,072    4.79
   Time greater than $100,000              1,330,375        17,366    5.18
   Brokered                                  353,133         4,207    4.73
                                         -----------  ------------
       Total interest-bearing deposits     4,862,457        52,540    4.29
                                         -----------  ------------
   Federal funds purchased and other
    borrowings                               105,650         1,505    5.65
   Federal Home Loan Bank advances           334,217         4,677    5.55
   Long-term debt                            112,923         2,190    7.69
                                         -----------  ------------
      Total borrowed funds                   552,790         8,372    6.01
                                         -----------  ------------
      Total interest-bearing liabilities   5,415,247        60,912    4.46
                                                      ------------
Non-interest-bearing liabilities:
  Non-interest-bearing deposits              655,239
  Other liabilities                           52,045
                                         -----------
     Total liabilities                     6,122,531
Shareholders' equity                         547,419
                                         -----------
     Total liabilities and shareholders'
      equity                             $ 6,669,950
                                         ===========
Net interest revenue                                  $     62,551
                                                      ============
Net interest-rate spread                                              3.41%
                                                                   =======
Net interest margin (4)                                               3.99%
                                                                   =======
(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 losses of $799 thousand in 2007 and $12.7 million in 2006 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,
                                                        2007
                                         ---------------------------------
(dollars in thousands, taxable             Average                   Avg.
 equivalent)                               Balance      Interest     Rate
                                         -----------  ------------ -------
Assets:
Interest-earning assets:
  Loans, net of unearned income (1)(2)   $ 5,734,608  $    481,590    8.40%
  Taxable securities (3)                   1,236,595        64,377    5.21
  Tax-exempt securities (1) (3)               41,340         2,826    6.84
  Federal funds sold and other
   interest-earning assets                    58,357         2,124    3.64
                                         -----------  ------------
     Total interest-earning assets         7,070,900       550,917    7.79
                                         -----------  ------------
Non-interest-earning assets:
  Allowance for loan losses                  (81,378)
  Cash and due from banks                    135,021
  Premises and equipment                     164,153
  Other assets (3)                           441,834
                                         -----------
     Total assets                        $ 7,730,530
                                         ===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
  Interest-bearing deposits:
    NOW                                  $ 1,406,655  $     45,142    3.21
    Money market                             399,838        15,396    3.85
    Savings                                  188,560         1,653     .88
    Time less than $100,000                1,619,279        79,333    4.90
    Time greater than $100,000             1,377,915        71,467    5.19
    Brokered                                 337,376        16,600    4.92
                                         -----------  ------------
       Total interest-bearing deposits     5,329,623       229,591    4.31
                                         -----------  ------------
    Federal funds purchased and other
     borrowings                              308,372        16,236    5.27
    Federal Home Loan Bank advances          455,620        22,013    4.83
    Long-term debt                           122,555         8,594    7.01
                                         -----------  ------------
      Total borrowed funds                   886,547        46,843    5.28
                                         -----------  ------------
      Total interest-bearing liabilities   6,216,170       276,434    4.45
                                                      ------------
Non-interest-bearing liabilities:
  Non-interest-bearing deposits              699,002
  Other liabilities                           72,587
                                         -----------
     Total liabilities                     6,987,759
Shareholders' equity                         742,771
                                         -----------
     Total liabilities and shareholders'
      equity                             $ 7,730,530
                                         ===========
Net interest revenue                                  $    274,483
                                                      ============
Net interest-rate spread                                              3.34%
                                                                   =======
Net interest margin (4)                                               3.88%
                                                                   =======
(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 losses of $8.1 million in 2007 and $17.5 million in 2006 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,
                                                       2006
                                         ---------------------------------
(dollars in thousands, taxable             Average                   Avg.
 equivalent)                               Balance      Interest     Rate
                                         -----------  ------------ -------
Assets:
Interest-earning assets:
  Loans, net of unearned income (1)(2)   $ 4,800,981  $    394,439    8.22%
  Taxable securities (3)                     995,172        47,149    4.74
  Tax-exempt securities (1) (3)               46,725         3,240    6.93
  Federal funds sold and other
   interest-earning assets                    34,605         1,867    5.40
                                         -----------  ------------
     Total interest-earning assets         5,877,483       446,695    7.60
                                         -----------  ------------
Non-interest-earning assets:
  Allowance for loan losses                  (59,376)
  Cash and due from banks                    122,268
  Premises and equipment                     123,865
  Other assets (3)                           222,908
                                         -----------
     Total assets                        $ 6,287,148
                                         ===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
  Interest-bearing deposits:
    NOW                                  $ 1,115,434  $     30,549    2.74
    Money market                             202,477         7,496    3.70
    Savings                                  172,698           928     .54
    Time less than $100,000                1,410,869        61,676    4.37
    Time greater than $100,000             1,134,414        54,304    4.79
    Brokered                                 334,243        14,344    4.29
                                         -----------  ------------
       Total interest-bearing deposits     4,370,135       169,297    3.87
                                         -----------  ------------
    Federal funds purchased and other
     borrowings                              140,544         7,319    5.21
    Federal Home Loan Bank advances          465,820        23,514    5.05
    Long-term debt                           112,135         8,685    7.75
                                         -----------  ------------
      Total borrowed funds                   718,499        39,518    5.50
                                         -----------  ------------
      Total interest-bearing liabilities   5,088,634       208,815    4.10
                                                      ------------
Non-interest-bearing liabilities:
  Non-interest-bearing deposits              647,300
  Other liabilities                           44,268
                                         -----------
     Total liabilities                     5,780,202
Shareholders' equity                         506,946
                                         -----------
     Total liabilities and shareholders'
      equity                             $ 6,287,148
                                         ===========
Net interest revenue                                  $    237,880
                                                      ============
Net interest-rate spread                                              3.50%
                                                                   =======
Net interest margin (4)                                               4.05%
                                                                   =======
(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 losses of $8.1 million in 2007 and $17.5 million in 2006 are
included in other assets for purposes of this presentation.
(4)  Net interest margin is taxable equivalent net-interest revenue divided
by average interest-earning assets.

For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
Email Contact


SOURCE: United Community Banks, Inc.

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