United Community Banks, Inc.
Jan 23, 2009

United Community Banks, Inc. Announces Results for Fourth Quarter 2008

BLAIRSVILLE, GA, Jan 23, 2009 (MARKET WIRE via COMTEX News Network) -- United Community Banks, Inc. (NASDAQ: UCBI) today announced a net loss of $46.7 million, or 99 cents per diluted share, for the fourth quarter of 2008, compared to net income of $4.2 million, or 9 cents per diluted share, for the same time last year. For the year 2008, the company had a net loss of $63.5 million, or $1.35 per diluted share, compared to net income of $58.0 million, or $1.24 per diluted share, for 2007.

"Challenges in the housing market, particularly in Atlanta, continued to have a significant impact on our loan portfolio and earnings in the fourth quarter," said Jimmy Tallent, president and chief executive officer. "We saw a rise in the level of classified and non-performing assets and further deterioration in property valuations. While we remain committed to moving through this down cycle as quickly as possible, it is clearly a very difficult environment."

For the fourth quarter of 2008, loans were $5.7 billion, down $224 million from a year ago and down $125 million on a linked-quarter basis, reflecting the company's continuing efforts to reduce exposure to the residential construction and housing markets. At December 31, 2008, residential construction loans were $1.5 billion, or 26 percent of total loans, a decrease of $350 million from a year ago and $117 million from the third quarter.

Taxable equivalent net interest revenue of $51.9 million reflected a decrease of $6.9 million from the third quarter of 2008 and $17.9 million from the fourth quarter of 2007. Taxable equivalent net interest margin was 2.70 percent compared with 3.17 percent for the third quarter of 2008 and 3.73 percent for the fourth quarter of 2007.

"Margin compression was primarily driven by actions taken late in the third quarter and early in the fourth quarter to build liquidity in a very fragile banking environment," stated Tallent. "Banks were not lending to other banks and consumers were concerned about bank failures and FDIC insurance levels on their deposits. About two-thirds of the margin compression was due to our aggressive actions to build liquidity and the remaining third was due to the higher level of non-performing assets and the steep decline in the targeted federal funds rate impacting our asset sensitive balance sheet," added Tallent.

"With liquidity improving late in the quarter we are letting brokered deposits run-off," stated Tallent. "Also, we have lowered our deposit pricing and widened the credit spreads on our prime based loans. With the actions we have taken and liquidity remaining stable, we expect a measurable improvement in our margin, approaching 3 percent by the end of the first quarter of 2009."

The fourth quarter provision for loan losses was $85.0 million. Net charge-offs for the quarter were $74.0 million compared with $55.7 million for the third quarter of 2008. At quarter-end, non-performing assets totaled $250.5 million compared with $177.7 million at September 30, 2008. The ratio of non-performing assets to total assets at year-end and at the end of the third quarter was 2.94 percent and 2.20 percent, respectively.

"The down economic cycle continued to impact our credit quality, particularly within the Atlanta residential construction portfolio," stated Tallent. "The rise in non-performing assets was primarily the result of continued deterioration in the Atlanta housing market and softened demand from buyers, given the deterioration of pricing and valuations. The environment is not getting better. Despite this, our strategy will be the same to recognize and move troubled assets through our process as quickly as possible. We expect to see the challenges continue in the quarters ahead and charge-offs to be elevated over historical levels as we work through our problem credits. But at all times, we will make the best economic decision for our company."

Fee revenue of $10.7 million reflected a decrease of $5.4 million from the fourth quarter of 2007. Service charges and fees on deposit accounts of $7.7 million decreased $608,000 due to lower activity and transaction charges. Consulting fees were down $1.3 million from last year primarily due to the advisory consulting services' assistance in United's corporate-wide initiative to improve profitability and weakness in the financial services industry that affected sales efforts and delayed consulting contracts. The advisory consulting services were performed by a wholly-owned subsidiary and, therefore, eliminated from the consolidated fee revenue. "Late in the fourth quarter, we took an opportunity to lower funding costs by prepaying higher-rate Federal Home Loan Bank advances," stated Tallent. "Securities gains of $838,000 partially offset $2.7 million in charges from the prepayment of the advances." Other fee revenue of $1.4 million declined $684,000 due to lower earnings on bank-owned life insurance assets.

Operating expenses of $52.4 million reflected an increase of $3.1 million from the fourth quarter of 2007. This increase was primarily due to higher foreclosed property costs of $1.4 million and an increase in foreclosure-related professional legal fees of $504,000 and the FDIC increasing insurance premiums by $879,000. Salaries and employee benefit costs of $24.4 million declined $2.7 million from last year due to lower incentive compensation. This decrease was offset by an increase in other expenses of $3.1 million, including a $2.4 million accrual for contested costs on bank-owned life insurance assets and losses on deferred compensation assets of $700,000.

United continues to maintain a very strong capital position, which was bolstered by the completion of the sale on December 5, 2008 of $180 million in preferred stock and warrants to the U.S. Treasury through its Capital Purchase Program. In addition, the company privately placed $13 million of trust preferred securities on October 31, 2008. At December 31, 2008, the company's capital ratios were as follows: Tier I Risk-Based Capital of 11.2 percent; Leverage of 8.3 percent; and Total Risk-Based of 13.9 percent. Also, the average tangible equity-to-assets ratio was 6.6 percent and the average tangible common equity-to-assets ratio was 6.2 percent.

"We remain firmly committed to a strategy of aggressive disposition of problem credits, as we believe moving through this credit cycle as quickly as possible is the best course of action," Tallent said. "Our strong capital position enables us to absorb losses without impairing the company's financial soundness."

"In the coming year, we will be intently focused on working through this credit cycle, improving our margin, growing core deposits and reducing expenses," Tallent concluded.

Conference Call

United Community Banks will hold a conference call today, Friday, January 23, 2009, at 11 a.m. ET to discuss the contents of this news release and to share business highlights for the quarter. The telephone number for the conference call is (877) 723-9518 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 $8.5 billion and operates 27 community banks with 107 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
                                                     2008
                                     -------------------------------------
(in thousands, except per share        Fourth        Third       Second
data; taxable equivalent)              Quarter      Quarter      Quarter
                                     -----------  -----------  -----------
INCOME SUMMARY
Net interest revenue                      51,873       58,791       61,753
Provision for loan losses (1)             85,000       76,000       15,500
Fee revenue                               10,718       13,121       15,105
                                     -----------  -----------  -----------
  Total operating revenue                (22,409)      (4,088)      61,358
Operating expenses                        52,439       56,970       49,761
                                     -----------  -----------  -----------
  (Loss) income before taxes             (74,848)     (61,058)      11,597
Income tax expense (benefit)             (28,101)     (21,184)       4,504
                                     -----------  -----------  -----------
  Net operating (loss) income            (46,747)     (39,874)       7,093
Fraud loss provision, net of tax (1)           -            -            -
                                     -----------  -----------  -----------
  Net (loss) income                      (46,747)     (39,874)       7,093
Preferred stock dividends                    712            4            4
                                     -----------  -----------  -----------
  Net (loss) income available to
   common shareholders               $   (47,459) $   (39,878) $     7,089
                                     ===========  ===========  ===========
OPERATING PERFORMANCE  (1)
  Earnings (loss) per common share:
    Basic                            $      (.99) $      (.84) $       .15
    Diluted                                 (.99)        (.84)         .15
  Return on tangible equity
   (2)(3)(4)                                  NM%          NM%        5.86%
  Return on assets (4)                        NM           NM          .34
GAAP PERFORMANCE MEASURES
  Per common share:
    Basic earnings (loss)            $      (.99) $      (.84) $       .15
    Diluted earnings (loss)                 (.99)        (.84)         .15
    Cash dividends declared                    -            -          .09
    Stock dividends declared                 .09          .09            -
    Book value                             16.95        17.12        17.75
    Tangible book value (3)                10.39        10.48        11.03
  Key performance ratios:
    Return on equity (2)(4)                   NM%          NM%        3.41%
    Return on assets                       (2.20)       (1.95)         .34
    Net interest margin (4)                 2.70         3.17         3.32
    Efficiency ratio                       81.34        79.35        65.05
    Cash dividend payout ratio                 -            -        60.00
    Equity to assets                       10.08        10.28        10.33
    Tangible equity to assets (3)           6.59         6.65         6.77
    Tangible common equity to assets
     (3)                                    6.23         6.65         6.77
ASSET QUALITY
  Allowance for loan losses          $   122,271  $   111,299  $    91,035
  Net charge-offs (1)                     74,028       55,736       14,313
  Non-performing loans (NPLs)            190,723      139,266      123,786
  OREO                                    59,768       38,438       28,378
                                     -----------  -----------  -----------
    Total non-performing assets
     (NPAs)                              250,491      177,704      152,164
  Allowance for loan losses to loans
   (1)                                      2.14%        1.91%        1.53%
  Net charge-offs to average loans
   (1)(4)                                   5.09         3.77          .97
  NPAs to loans and OREO                    4.35         3.03         2.55
  NPAs to total assets                      2.94         2.20         1.84
AVERAGE BALANCES
  Loans                              $ 5,784,139  $ 5,889,168  $ 5,933,143
  Investment securities                1,508,808    1,454,740    1,507,240
  Earning assets                       7,662,536    7,384,287    7,478,018
  Total assets                         8,449,097    8,146,880    8,295,748
  Deposits                             6,982,229    6,597,339    6,461,361
  Shareholders' equity                   851,956      837,487      856,727
  Common shares - basic                   47,844       47,417       47,158
  Common shares - diluted                 47,844       47,417       47,249
AT PERIOD END
  Loans                              $ 5,704,861  $ 5,829,937  $ 5,933,141
  Investment securities                1,617,187    1,400,827    1,430,588
  Total assets                         8,520,765    8,072,543    8,264,051
  Deposits                             7,003,624    6,689,335    6,696,456
  Shareholders' equity                   989,382      816,880      837,890
  Common shares outstanding               48,009       47,596       47,096
(1)  Excludes effect of special $15 million fraud related provision for
loan losses recorded in the second quarter of 2007, an additional $3
million provision in the fourth quarter of 2007, and $18 million of
related loan charge-offs recorded in the fourth quarter of 2007 which
were all related to a failed real estate development and are considered
non-recurring.  (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.  NM - Not meaningful.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
                                                      2007       Fourth
                                     -----------  -----------    Quarter
(in thousands, except per share         First       Fourth      2008-2007
data; taxable equivalent)              Quarter      Quarter      Change
                                     -----------  -----------  ----------
INCOME SUMMARY
Net interest revenue                      66,287       69,730         (26)%
Provision for loan losses (1)              7,500       26,500
Fee revenue                               14,197       16,100         (33)
                                     -----------  -----------
  Total operating revenue                 72,984       59,330        (138)
Operating expenses                        47,529       49,336           6
                                     -----------  -----------
  (Loss) income before taxes              25,455        9,994          NM
Income tax expense (benefit)               9,377        3,960
                                     -----------  -----------
  Net operating (loss) income             16,078        6,034          NM
Fraud loss provision, net of tax (1)           -        1,833
                                     -----------  -----------
  Net (loss) income                       16,078        4,201          NM
Preferred stock dividends                      4            4
                                     -----------  -----------
  Net (loss) income available to
   common shareholders               $    16,074  $     4,197          NM
                                     ===========  ===========
OPERATING PERFORMANCE  (1)
  Earnings (loss) per common share:
    Basic                            $       .34  $       .13          NM
    Diluted                                  .34          .13          NM
  Return on tangible equity
   (2)(3)(4)                               13.16%        5.06%
  Return on assets (4)                       .78          .29
GAAP PERFORMANCE MEASURES
  Per common share:
    Basic earnings (loss)            $       .34  $       .09          NM
    Diluted earnings (loss)                  .34          .09          NM
    Cash dividends declared                  .09          .09          NM
    Stock dividends declared                   -            -          NM
    Book value                             18.50        17.70          (4)
    Tangible book value (3)                11.76        10.92          (5)
  Key performance ratios:
    Return on equity (2)(4)                 7.85%        2.01%
    Return on assets                         .78          .20
    Net interest margin (4)                 3.55         3.73
    Efficiency ratio                       59.05        57.67
    Cash dividend payout ratio             26.47       100.00
    Equity to assets                       10.30        10.20
    Tangible equity to assets (3)           6.73         6.58
    Tangible common equity to assets
     (3)                                    6.73         6.58
ASSET QUALITY
  Allowance for loan losses          $    89,848  $    89,423
  Net charge-offs (1)                      7,075       13,012
  Non-performing loans (NPLs)             67,728       28,219
  OREO                                    22,136       18,039
                                     -----------  -----------
    Total non-performing assets
     (NPAs)                               89,864       46,258
  Allowance for loan losses to loans
   (1)                                      1.51%        1.51%
  Net charge-offs to average loans
   (1)(4)                                    .48          .87
  NPAs to loans and OREO                    1.50          .78
  NPAs to total assets                      1.07          .56
AVERAGE BALANCES
  Loans                              $ 5,958,296  $ 5,940,230          (3)
  Investment securities                1,485,515    1,404,796           7
  Earning assets                       7,491,480    7,424,992           3
  Total assets                         8,305,621    8,210,120           3
  Deposits                             6,051,069    6,151,476          14
  Shareholders' equity                   855,659      837,195           2
  Common shares - basic                   47,052       47,273
  Common shares - diluted                 47,272       47,652
AT PERIOD END
  Loans                              $ 5,967,839  $ 5,929,263          (4)
  Investment securities                1,508,402    1,356,846          19
  Total assets                         8,386,255    8,207,302           4
  Deposits                             6,175,769    6,075,951          15
  Shareholders' equity                   871,452      831,902          19
  Common shares outstanding               47,004       46,903
(1)  Excludes effect of special $15 million fraud related provision for
loan losses recorded in the second quarter of 2007, an additional $3
million provision in the fourth quarter of 2007, and $18 million of related
loan charge-offs recorded in the fourth quarter of 2007 which were all
related to a failed real estate development and are considered
non-recurring.  (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.  NM - Not meaningful.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
                                          For the Twelve
                                           Months Ended            YTD
(in thousands, except per share     -------------------------   2008-2007
data; taxable equivalent)               2008          2007        Change
                                    -----------   ------------  ---------
INCOME SUMMARY
Net interest revenue                    238,704        274,483        (13)%
Provision for loan losses (1)           184,000         37,600
Fee revenue                              53,141         62,651        (15)
                                    -----------   ------------
  Total operating revenue               107,845        299,534        (64)
Operating expenses                      206,699        190,061          9
                                    -----------   ------------
  (Loss) income before taxes            (98,854)       109,473         NM
Income tax expense (benefit)            (35,404)        40,482
                                    -----------   ------------
  Net operating (loss) income           (63,450)        68,991         NM
Fraud loss provision, net of tax
 (1)                                          -         10,998
                                    -----------   ------------
  Net (loss) income                     (63,450)        57,993         NM
Preferred stock dividends                   724             18
                                    -----------   ------------
  Net (loss) income available
   to common shareholders           $   (64,174)  $     57,975         NM
                                    ===========   ============
OPERATING PERFORMANCE  (1)
  Earnings (loss) per common share:
    Basic                           $     (1.35)  $       1.50         NM
    Diluted                               (1.35)          1.48         NM
  Return on tangible equity
   (2)(3)(4)                             (12.37)%        14.23%
  Return on assets (4)                     (.76)           .89
GAAP PERFORMANCE MEASURES
  Per common share:
    Basic earnings (loss)           $     (1.35)  $       1.26         NM
    Diluted earnings (loss)               (1.35)          1.24         NM
    Cash dividends declared                 .18            .36        (50)
    Stock dividends declared                .18              -        100
    Book value                            16.95          17.70         (4)
    Tangible book value (3)               10.39          10.92         (5)
  Key performance ratios:
    Return on equity (2)(4)               (7.82)%         7.79%
    Return on assets                       (.76)           .75
    Net interest margin (4)                3.18           3.88
    Efficiency ratio                      70.49          56.53
    Cash dividend payout ratio           (13.33)         28.57
    Equity to assets                      10.25           9.61
    Tangible equity to assets (3)          6.69           6.63
    Tangible common equity to
     assets (3)                            6.59           6.63
ASSET QUALITY
  Allowance for loan losses         $   122,271   $     89,423
  Net charge-offs (1)                   151,152         21,834
  Non-performing loans (NPLs)           190,723         28,219
  OREO                                   59,768         18,039
                                    -----------   ------------
    Total non-performing assets
     (NPAs)                             250,491         46,258
  Allowance for loan losses to
   loans (1)                               2.14 %         1.51%
  Net charge-offs to average loans
   (1)(4)                                  2.57            .38
  NPAs to loans and OREO                   4.35            .78
  NPAs to total assets                     2.94            .56
AVERAGE BALANCES
  Loans                             $ 5,890,889   $  5,734,608          3
  Investment securities               1,489,036      1,277,935         17
  Earning assets                      7,504,186      7,070,900          6
  Total assets                        8,299,330      7,730,530          7
  Deposits                            6,524,457      6,028,625          8
  Shareholders' equity                  850,426        742,771         14
  Common shares - basic                  47,369         45,948
  Common shares - diluted                47,369         46,593
AT PERIOD END
  Loans                             $ 5,704,861   $  5,929,263         (4)
  Investment securities               1,617,187      1,356,846         19
  Total assets                        8,520,765      8,207,302          4
  Deposits                            7,003,624      6,075,951         15
  Shareholders' equity                  989,382        831,902         19
  Common shares outstanding              48,009         46,903
(1)  Excludes effect of special $15 million fraud related provision for
loan losses recorded in the second quarter of 2007, an additional $3
million provision in the fourth quarter of 2007, and $18 million of related
loan charge-offs recorded in the fourth quarter of 2007 which were all
related to a failed real estate development and are considered
non-recurring.  (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.  NM - Not meaningful.
UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Years Ended December 31,
(in thousands, except
 per share data;
 taxable equivalent)       2008          2007         2006         2005
                        ----------   -----------  -----------  -----------
INCOME SUMMARY
Net interest revenue       238,704       274,483      237,880      196,799
Provision for loan
 losses                    184,000        37,600       14,600       12,100
Fee revenue                 53,141        62,651       49,095       46,148
                        ----------   -----------  -----------  -----------
  Total revenue            107,845       299,534      272,375      230,847
Operating expenses (1)     206,699       190,061      162,070      140,808
                        ----------   -----------  -----------  -----------
  (Loss) income
   before taxes            (98,854)      109,473      110,305       90,039
Income taxes               (35,404)       40,482       41,490       33,297
                        ----------   -----------  -----------  -----------
  Net operating
   (loss) income           (63,450)       68,991       68,815       56,742
Fraud loss provision,
 net of tax                      -        10,998            -            -
Merger-related charges,
 net of tax                      -             -            -            -
                        ----------   -----------  -----------  -----------
  Net (loss) income        (63,450)       57,993       68,815       56,742
Preferred stock
 dividends                     724            18           19           23
                        ----------   -----------  -----------  -----------
  Net (loss) income
   available to common
   shareholders         $  (64,174)  $    57,975  $    68,796  $    56,719
                        ==========   ===========  ===========  ===========
OPERATING PERFORMANCE (1)
  Earnings (loss) per
   common share:
    Basic               $    (1.35)  $      1.50  $      1.70  $      1.47
    Diluted                  (1.35)         1.48         1.66         1.43
  Return on tangible
   equity (2)(3)            (12.37)%       14.23%       17.52%       18.99%
  Return on assets            (.76)          .89         1.09         1.04
  Efficiency ratio           70.49         56.53        56.35        57.77
  Cash dividend payout
   ratio                    (13.33)        24.00        18.82        19.05
GAAP PERFORMANCE
  Per common share:
    Basic earnings
     (loss)             $    (1.35)  $      1.26  $      1.70  $      1.47
    Diluted earnings
     (loss)                  (1.35)         1.24         1.66         1.43
    Cash dividends
     declared (rounded)        .18           .36          .32          .28
    Stock dividends
     declared                  .18             -            -            -
    Book value               16.95         17.73        14.37        11.80
    Tangible book value
     (3)                     10.39         10.94        10.57         8.94
  Key performance
   ratios:
    Return on equity
     (2)                     (7.82)%        7.79%       13.28%       13.46%
    Return on assets          (.76)          .75         1.09         1.04
    Net interest margin       3.18          3.88         4.05         3.85
    Cash dividend
     payout ratio           (13.33)        28.57        18.82        19.05
    Equity to assets         10.25          9.61         8.06         7.63
    Tangible equity to
     assets (3)               6.69          6.63         6.32         5.64
    Tangible common
     equity to assets
     (3)                      6.59          6.63         6.32         5.64
ASSET QUALITY
  Allowance for loan
   losses               $  122,271   $    89,423  $    66,566  $    53,595
  Net charge-offs (1)      151,152        21,834        5,524        5,701
  Non-performing loans
   (NPLs)                  190,723        28,219       12,458       11,997
  OREO                      59,768        18,039        1,196          998
                        ----------   -----------  -----------  -----------
    Total
     non-performing
     assets (NPAs)          250,491        46,258       13,654       12,995
  Allowance for loan
   losses to loans (1)        2.14 %        1.51%        1.24%        1.22%
  Net charge-offs to
   average loans (1)          2.57           .38          .12          .14
  NPAs to loans and
   OREO                       4.35           .78          .25          .30
  NPAs to total assets        2.94           .56          .19          .22
AVERAGE BALANCES
  Loans                 $5,890,889   $ 5,734,608  $ 4,800,981  $ 4,061,091
  Investment
   securities            1,489,036     1,277,935    1,041,897      989,201
  Earning assets         7,504,186     7,070,900    5,877,483    5,109,053
  Total assets           8,299,330     7,730,530    6,287,148    5,472,200
  Deposits               6,524,457     6,028,625    5,017,435    4,003,084
  Shareholders' equity     850,426       742,771      506,946      417,309
  Common shares -
   Basic                    47,369        45,948       40,413       38,477
  Common shares -
   Diluted                  47,369        46,593       41,575       39,721
AT YEAR END
  Loans                 $5,704,861   $ 5,929,263  $ 5,376,538  $ 4,398,286
  Investment
   securities            1,617,187     1,356,846    1,107,153      990,687
  Total assets           8,520,765     8,207,302    7,101,249    5,865,756
  Deposits               7,003,624     6,075,951    5,772,886    4,477,600
  Shareholders' equity     989,382       831,902      616,767      472,686
  Common shares
   outstanding              48,009        46,903       42,891       40,020
(1)  Excludes pre-tax provision for fraud-related loan losses and related
charge-offs 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.
NM - Not meaningful.
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     CAGR (4)
                                       -----------  -----------  ---------
INCOME SUMMARY
Net interest revenue                       152,998      128,089         13%
Provision for loan losses                    7,600        6,300
Fee revenue                                 39,539       38,184          7
                                       -----------  -----------
  Total revenue                            184,937      159,973         (8)
Operating expenses (1)                     110,974       97,251         16
                                       -----------  -----------
  (Loss) income before taxes                73,963       62,722         NM
Income taxes                                26,807       23,247
                                       -----------  -----------
  Net operating (loss) income               47,156       39,475         NM
Fraud loss provision, net of tax                 -            -
Merger-related charges, net of tax             565        1,357
                                       -----------  -----------
  Net (loss) income                         46,591       38,118         NM
Preferred stock dividends                        9           66
                                       -----------  -----------
  Net (loss) income available to
   common shareholders                 $    46,582  $    38,052         NM
                                       ===========  ===========
OPERATING PERFORMANCE  (1)
  Earnings (loss) per common share:
    Basic                              $      1.31  $      1.15         NM
    Diluted                                   1.27         1.12         NM
  Return on tangible equity (2)(3)           19.74%       19.24%
  Return on assets                            1.07         1.06
  Efficiency ratio                           57.65        58.39
  Cash dividend payout ratio                 18.32        17.39
GAAP PERFORMANCE
  Per common share:
    Basic earnings (loss)              $      1.29  $      1.11         NM
    Diluted earnings (loss)                   1.25         1.08         NM
    Cash dividends declared (rounded)          .24          .20         (2)
    Stock dividends declared                     -            -         NM
    Book value                               10.39         8.47         15
    Tangible book value (3)                   7.34         6.52         10
  Key performance ratios:
    Return on equity (2)                     14.39%       14.79%
    Return on assets                          1.05         1.02
    Net interest margin                       3.71         3.68
    Cash dividend payout ratio               18.60        18.02
    Equity to assets                          7.45         7.21
    Tangible equity to assets (3)             5.78         6.02
    Tangible common equity to assets
     (3)                                      5.78         6.03
ASSET QUALITY
  Allowance for loan losses            $    47,196  $    38,655
  Net charge-offs (1)                        3,617        4,097
  Non-performing loans (NPLs)                8,031        6,627
  OREO                                         694          962
                                       -----------  -----------
    Total non-performing assets (NPAs)       8,725        7,589
  Allowance for loan losses to loans
   (1)                                        1.26%        1.28%
  Net charge-offs to average loans (1)         .11          .15
  NPAs to loans and OREO                       .23          .25
  NPAs to total assets                         .17          .19
AVERAGE BALANCES
  Loans                                $ 3,322,916  $ 2,753,451         16
  Investment securities                    734,577      667,211         17
  Earning assets                         4,119,327    3,476,030         17
  Total assets                           4,416,835    3,721,284         17
  Deposits                               3,247,612    2,743,087         19
  Shareholders' equity                     329,225      268,446         26
  Common shares - Basic                     36,071       34,132          7
  Common shares - Diluted                   37,273       35,252          6
AT YEAR END
  Loans                                $ 3,734,905  $ 3,015,997         14
  Investment securities                    879,978      659,891         20
  Total assets                           5,087,702    4,068,834         16
  Deposits                               3,680,516    2,857,449         20
  Shareholders' equity                     397,088      299,373         27
  Common shares outstanding                 38,168       35,289          6
(1)  Excludes pre-tax provision for fraud-related loan losses and related
charge-offs 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.
NM - Not meaningful.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
                                                      2008
                                      -------------------------------------
                                        Fourth        Third       Second
(in millions)                           Quarter      Quarter      Quarter
                                      -----------  -----------  -----------
LOANS BY CATEGORY
Commercial (sec. by RE)               $     1,627  $     1,604  $     1,584
Commercial construction                       500          509          522
Commercial & industrial                       410          425          417
                                      -----------  -----------  -----------
     Total commercial                       2,537        2,538        2,523
Residential construction                    1,479        1,596        1,745
Residential mortgage                        1,526        1,528        1,494
Consumer / installment                        163          168          171
                                      -----------  -----------  -----------
     Total loans                      $     5,705  $     5,830  $     5,933
                                      ===========  ===========  ===========
LOANS BY MARKET
Atlanta MSA                           $     1,706  $     1,800  $     1,934
Gainesville MSA                               420          426          422
North Georgia                               2,040        2,066        2,065
Western North Carolina                        810          815          819
Coastal Georgia                               464          458          436
East Tennessee                                265          265          257
                                      -----------  -----------  -----------
     Total loans                      $     5,705  $     5,830  $     5,933
                                      ===========  ===========  ===========
RESIDENTIAL CONSTRUCTION
Dirt loans
   Acquisition & development          $       484  $       516  $       569
   Land loans                                 153          142          139
   Lot loans                                  358          385          401
                                      -----------  -----------  -----------
      Total                                   995        1,043        1,109
                                      -----------  -----------  -----------
House loans
   Spec                                       347          393          450
   Sold                                       137          160          186
                                      -----------  -----------  -----------
      Total                                   484          553          636
                                      -----------  -----------  -----------
Total residential construction        $     1,479  $     1,596  $     1,745
                                      ===========  ===========  ===========
RESIDENTIAL CONSTRUCTION - ATLANTA MSA
Dirt loans
   Acquisition & development          $       167  $       185  $       232
   Land loans                                  56           47           50
   Lot loans                                   86          103          117
                                      -----------  -----------  -----------
      Total                                   309          335          399
                                      -----------  -----------  -----------
House loans
   Spec                                       189          227          271
   Sold                                        40           49           58
                                      -----------  -----------  -----------
      Total                                   229          276          329
                                      -----------  -----------  -----------
Total residential construction        $       538  $       611  $       728
                                      ===========  ===========  ===========
(1)  Annualized.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
                                              2007                 Year
                                 ---------  ---------  Linked      over
                                   First     Fourth    Quarter     Year
(in millions)                     Quarter    Quarter   Change(1)  Change
                                 ---------  ---------  -------    -------
LOANS BY CATEGORY
Commercial (sec. by RE)          $   1,526  $   1,476        6 %       10 %
Commercial construction                548        527       (7)        (5)
Commercial & industrial                437        418      (14)        (2)
                                 ---------  ---------
     Total commercial                2,511      2,421        -          5
Residential construction             1,791      1,829      (29)       (19)
Residential mortgage                 1,491      1,502       (1)         2
Consumer / installment                 175        177      (12)        (8)
                                 ---------  ---------
     Total loans                 $   5,968  $   5,929       (9)        (4)
                                 =========  =========
LOANS BY MARKET
Atlanta MSA                      $   1,978  $   2,002      (21)%      (15)%
Gainesville MSA                        415        400       (6)         5
North Georgia                        2,071      2,060       (5)        (1)
Western North Carolina                 816        806       (2)         -
Coastal Georgia                        439        416        5         12
East Tennessee                         249        245        -          8
                                 ---------  ---------
     Total loans                 $   5,968  $   5,929       (9)        (4)
                                 =========  =========
RESIDENTIAL CONSTRUCTION
Dirt loans
   Acquisition & development     $     583  $     592      (25)%      (18)%
   Land loans                          130        126       31         21
   Lot loans                           406        407      (28)       (12)
                                 ---------  ---------
      Total                          1,119      1,125      (18)       (12)
                                 ---------  ---------
House loans
   Spec                                460        473      (47)%      (27)%
   Sold                                212        231      (58)       (41)
                                 ---------  ---------
      Total                            672        704      (50)       (31)
                                 ---------  ---------
Total residential construction   $   1,791  $   1,829      (29)       (19)
                                 =========  =========
RESIDENTIAL CONSTRUCTION - ATLANTA MSA
Dirt loans
   Acquisition & development     $     252  $     258      (39)%      (35)%
   Land loans                           50         52       77          8
   Lot loans                           117        117      (66)       (26)
                                 ---------  ---------
      Total                            419        427      (31)       (28)
                                 ---------  ---------
House loans
   Spec                                271        280      (67)%      (33)%
   Sold                                 71         77      (73)       (48)
                                 ---------  ---------
      Total                            342        357      (68)       (36)
                                 ---------  ---------
Total residential construction   $     761  $     784      (48)       (31)
                                 =========  =========
(1)  Annualized.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Year-End
(in millions)                            2008         2007         2006
                                      -----------  -----------  -----------
LOANS BY CATEGORY
Commercial (sec. by RE)               $     1,627  $     1,476  $     1,230
Commercial construction                       500          527          470
Commercial & industrial                       410          418          296
                                      -----------  -----------  -----------
     Total commercial                       2,537        2,421        1,996
Residential construction                    1,479        1,829        1,864
Residential mortgage                        1,526        1,502        1,338
Consumer / installment                        163          177          179
                                      -----------  -----------  -----------
     Total loans                      $     5,705  $     5,929  $     5,377
                                      ===========  ===========  ===========
LOANS BY MARKET
Atlanta MSA                           $     1,706  $     2,002  $     1,651
Gainesville MSA                               420          400          354
North Georgia                               2,040        2,060        2,034
Western North Carolina                        810          806          773
Coastal Georgia                               464          415          358
East Tennessee                                265          246          207
                                      -----------  -----------  -----------
  Total loans                         $     5,705  $     5,929  $     5,377
                                      ===========  ===========  ===========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Year-End
(in millions)                            2005         2004         2003
                                      -----------  -----------  -----------
LOANS BY CATEGORY
Commercial (sec. by RE)               $     1,055  $       966  $       777
Commercial construction                       358          239          164
Commercial & industrial                       237          212          190
                                      -----------  -----------  -----------
     Total commercial                       1,650        1,417        1,131
Residential construction                    1,381        1,066          763
Residential mortgage                        1,206        1,102          982
Consumer / installment                        161          150          140
                                      -----------  -----------  -----------
     Total loans                      $     4,398  $     3,735  $     3,016
                                      ===========  ===========  ===========
LOANS BY MARKET
Atlanta MSA                           $     1,207  $     1,061  $       662
Gainesville MSA                               249            -            -
North Georgia                               1,790        1,627        1,481
Western North Carolina                        668          633          548
Coastal Georgia                               306          274          222
East Tennessee                                178          140          103
                                      -----------  -----------  -----------
  Total loans                         $     4,398  $     3,735  $     3,016
                                      ===========  ===========  ===========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
                                                Fourth Quarter 2008
                                      -------------------------------------
                                       Nonaccrual                   Total
(in thousands)                           Loans         OREO         NPAs
                                      -----------  -----------  -----------
NPAs BY CATEGORY
Commercial (sec. by RE)               $    15,188  $     2,427  $    17,615
Commercial construction                     1,513        2,333        3,846
Commercial & industrial                     1,920            -        1,920
                                      -----------  -----------  -----------
     Total commercial                      18,621        4,760       23,381
Residential construction                  144,836       48,572      193,408
Residential mortgage                       25,574        6,436       32,010
Consumer / installment                      1,692            -        1,692
                                      -----------  -----------  -----------
     Total NPAs                       $   190,723  $    59,768  $   250,491
                                      ===========  ===========  ===========
NPAs BY MARKET
Atlanta MSA                           $   105,476  $    42,336  $   147,812
Gainesville MSA                            16,208        1,110       17,318
North Georgia                              31,631       12,785       44,416
Western North Carolina                     18,509        2,986       21,495
Coastal Georgia                            11,863          138       12,001
East Tennessee                              7,036          413        7,449
                                      -----------  -----------  -----------
     Total NPAs                       $   190,723  $    59,768  $   250,491
                                      ===========  ===========  ===========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
                                                Third Quarter 2008
                                      -------------------------------------
                                       Nonaccrual                   Total
(in thousands)                           Loans         OREO         NPAs
                                      -----------  -----------  -----------
NPAs BY CATEGORY
Commercial (sec. by RE)               $     9,961  $       854  $    10,815
Commercial construction                     2,924          375        3,299
Commercial & industrial                     1,556            -        1,556
                                      -----------  -----------  -----------
     Total commercial                      14,441        1,229       15,670
Residential construction                  102,095       32,453      134,548
Residential mortgage                       21,335        4,756       26,091
Consumer / installment                      1,395            -        1,395
                                      -----------  -----------  -----------
     Total NPAs                       $   139,266  $    38,438  $   177,704
                                      ===========  ===========  ===========
NPAs BY MARKET
Atlanta MSA                           $    80,805  $    27,011  $   107,816
Gainesville MSA                            15,105          648       15,753
North Georgia                              20,812        8,337       29,149
Western North Carolina                     13,432        1,509       14,941
Coastal Georgia                             3,682          601        4,283
East Tennessee                              5,430          332        5,762
                                      -----------  -----------  -----------
     Total NPAs                       $   139,266  $    38,438  $   177,704
                                      ===========  ===========  ===========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
                                               Second Quarter 2008
                                      -------------------------------------
                                       Nonaccrual                   Total
(in thousands)                           Loans         OREO         NPAs
                                      -----------  -----------  -----------
NPAs BY CATEGORY
Commercial (sec. by RE)               $     4,610  $       593  $     5,203
Commercial construction                     3,027        1,859        4,886
Commercial & industrial                     2,950            -        2,950
                                      -----------  -----------  -----------
     Total commercial                      10,587        2,452       13,039
Residential construction                   90,283       22,075      112,358
Residential mortgage                       21,792        3,851       25,643
Consumer / installment                      1,124            -        1,124
                                      -----------  -----------  -----------
     Total NPAs                       $   123,786  $    28,378  $   152,164
                                      ===========  ===========  ===========
NPAs BY MARKET
Atlanta MSA                           $    89,327  $    15,196  $   104,523
Gainesville MSA                             4,885           12        4,897
North Georgia                              16,117        8,277       24,394
Western North Carolina                      9,838          990       10,828
Coastal Georgia                             1,575        3,871        5,446
East Tennessee                              2,044           32        2,076
                                      -----------  -----------  -----------
     Total NPAs                       $   123,786  $    28,378  $   152,164
                                      ===========  ===========  ===========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
                       Fourth Quarter     Third Quarter    Second Quarter
                            2008              2008              2008
                      ----------------- ----------------- -----------------
                                 Net               Net               Net
                               Charge-           Charge-           Charge-
                         Net   Offs to     Net   Offs to     Net   Offs to
                       Charge- Average   Charge- Average   Charge- Average
(in thousands)          Offs   Loans(1)   Offs   Loans(1)   Offs   Loans(1)
                      -------- -------  -------- -------  -------- -------
NET CHARGE-OFFS BY CATEGORY
Commercial (sec. by
 RE)                  $  4,460    1.10% $    257     .06% $    424     .11%
Commercial
 construction            1,442    1.14       225     .17       125     .09
Commercial &
 industrial              3,416    3.24     1,018     .96       398     .38
                      --------          --------          --------
     Total commercial    9,318    1.46     1,500     .24       947     .15
Residential
 construction           57,882   14.93    50,228   11.94    10,343    2.36
Residential mortgage     5,852    1.52     3,332     .88     2,576     .70
Consumer /
 installment               976    2.34       676    1.58       447    1.05
                      --------          --------          --------
     Total            $ 74,028    5.09  $ 55,736    3.77  $ 14,313     .97
                      ========          ========          ========
NET CHARGE-OFFS BY MARKET
Atlanta MSA           $ 49,309   10.80% $ 48,313   10.08% $ 10,682    2.22%
Gainesville MSA          7,994    8.60     1,470    1.49       360     .34
North Georgia            9,872    1.91     4,567     .88     1,829     .36
Western North
 Carolina                2,371    1.16       855     .42       279     .14
Coastal Georgia          3,150    2.70       249     .22       980     .90
East Tennessee           1,332    2.02       282     .43       183     .29
                      --------          --------          --------
     Total            $ 74,028    5.09  $ 55,736    3.77  $ 14,313     .97
                      ========          ========          ========
(1)  Annualized.
UNITED COMMUNITY BANKS, INC.
Operating Earnings to GAAP Earnings Reconciliation
Presented Only For Periods Where Non-GAAP Earnings Measures Are Shown
(in thousands, except per share data)
                                                       2008
                                      ------------------------------------
                                        Fourth        Third       Second
                                        Quarter      Quarter      Quarter
                                      ----------   ----------   ----------
Special provision for fraud related
 loan losses                          $        -   $        -   $        -
                                      ----------   ----------   ----------
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          -            -            -
Income tax effect of special
 provision                                     -            -            -
                                      ----------   ----------   ----------
          After-tax effect of special
           provision                  $        -   $        -   $        -
                                      ==========   ==========   ==========
Net Income (Loss) Reconciliation
Operating net income (loss)           $  (46,747)  $  (39,874)  $    7,093
After-tax effect of special provision
 and merger-related charges                    -            -            -
                                      ----------   ----------   ----------
     Net income (loss) (GAAP)         $  (46,747)  $  (39,874)  $    7,093
                                      ==========   ==========   ==========
Basic Earnings (Loss) Per Share
 Reconciliation
Basic operating earnings (loss)
 per share                            $     (.99)  $     (.84)  $      .15
Per share effect of special provision
 and merger-related charges                    -            -            -
                                      ----------   ----------   ----------
     Basic earnings (loss) per share
      (GAAP)                          $     (.99)  $     (.84)  $      .15
                                      ==========   ==========   ==========
Diluted Earnings (Loss) Per Share
 Reconciliation
Diluted operating earnings (loss)
 per share                            $     (.99)  $     (.84)  $      .15
Per share effect of special provision
 and merger-related charges                    -            -            -
                                      ----------   ----------   ----------
     Diluted earnings (loss) per
      share (GAAP)                    $     (.99)  $     (.84)  $      .15
                                      ==========   ==========   ==========
Provision for Loan Losses
 Reconciliation
Operating provision for loan losses   $   85,000   $   76,000   $   15,500
Special provision for fraud related
 loan losses                                   -            -            -
                                      ----------   ----------   ----------
     Provision for loan losses (GAAP) $   85,000   $   76,000   $   15,500
                                      ==========   ==========   ==========
Nonperforming Assets Reconciliation
Nonperforming assets excluding
 fraud-related assets                 $  247,719   $  174,227   $  148,219
Fraud-related loans and OREO included
 in nonperforming assets                   2,772        3,477        3,945
                                      ----------   ----------   ----------
     Nonperforming assets (GAAP)      $  250,491   $  177,704   $  152,164
                                      ==========   ==========   ==========
Allowance for Loan Losses
 Reconciliation
Allowance for loan losses excluding
 special fraud-related allowance      $  122,271   $  111,299   $   91,035
Fraud-related allowance for loan
 losses                                        -            -            -
                                      ----------   ----------   ----------
     Allowance for loan losses (GAAP) $  122,271   $  111,299   $   91,035
                                      ==========   ==========   ==========
Net Charge Offs Reconciliation
Net charge offs excluding charge off
 of fraud-related loans               $   74,028   $   55,736   $   14,313
Fraud-related loans charged off                -            -            -
                                      ----------   ----------   ----------
     Net charge offs (GAAP)           $   74,028   $   55,736   $   14,313
                                      ==========   ==========   ==========
Allowance for Loan Losses to Loans
 Ratio Reconciliation
Allowance for loan losses to loans
 ratio excluding fraud-related
 allowance                                  2.14%        1.91%        1.53%
Portion of allowance assigned to
 fraud-related loans                           -            -            -
                                      ----------   ----------   ----------
     Allowance for loan losses to
      loans ratio (GAAP)                    2.14%        1.91%        1.53%
                                      ==========   ==========   ==========
Nonperforming Assets to Total Assets
 Ratio Reconciliation
Nonperforming assets to total assets
 ratio excluding fraud-related assets       2.91%        2.16%        1.79%
Fraud-related nonperforming assets           .03          .04          .05
                                      ----------   ----------   ----------
     Nonperforming assets to total
      assets ratio (GAAP)                   2.94%        2.20%        1.84%
                                      ==========   ==========   ==========
Net Charge Offs to Average Loans
 Ratio Reconciliation
Net charge offs to average loans
 ratio excluding fraud-related loans        5.09%        3.77%         .97%
Charge offs of fraud-related loans             -            -            -
                                      ----------   ----------   ----------
     Net charge offs to average loans
      ratio (GAAP)                          5.09%        3.77%         .97%
                                      ==========   ==========   ==========
Operating Expenses Reconciliation
Operating expenses (operating basis)  $   52,439   $   56,970   $   47,961
Merger-related charges                         -            -            -
                                      ----------   ----------   ----------
     Operating expenses (GAAP)        $   52,439   $   56,970   $   47,961
                                      ==========   ==========   ==========
UNITED COMMUNITY BANKS, INC.
Operating Earnings to GAAP Earnings Reconciliation
Presented Only For Periods Where Non-GAAP Earnings Measures Are Shown
(in thousands, except per share data)
                                                      2008         2007
                                                   ----------   ----------
                                                      First       Fourth
                                                     Quarter      Quarter
                                                   ----------   ----------
Special provision for fraud related loan losses    $        -   $    3,000
                                                   ----------   ----------
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
Income tax effect of special provision                      -        1,167
                                                   ----------   ----------
          After-tax effect of special provision    $        -   $    1,833
                                                   ==========   ==========
Net Income (Loss) Reconciliation
Operating net income (loss)                        $   16,078   $    6,034
After-tax effect of special provision and
 merger-related charges                                     -       (1,833)
                                                   ----------   ----------
     Net income (loss) (GAAP)                      $   16,078   $    4,201
                                                   ==========   ==========
Basic Earnings (Loss) Per Share Reconciliation
Basic operating earnings (loss) per share          $      .34   $      .13
Per share effect of special provision and
 merger-related charges                                     -         (.04)
                                                   ----------   ----------
     Basic earnings (loss) per share (GAAP)        $      .34   $      .09
                                                   ==========   ==========
Diluted Earnings (Loss) Per Share Reconciliation
Diluted operating earnings (loss) per share        $      .34   $      .13
Per share effect of special provision and
 merger-related charges                                     -         (.04)
                                                   ----------   ----------
     Diluted earnings (loss) per share (GAAP)      $      .34   $      .09
                                                   ==========   ==========
Provision for Loan Losses Reconciliation
Operating provision for loan losses                $    7,500   $   26,500
Special provision for fraud related loan losses             -        3,000
                                                   ----------   ----------
     Provision for loan losses (GAAP)              $    7,500   $   29,500
                                                   ==========   ==========
Nonperforming Assets Reconciliation
Nonperforming assets excluding fraud-related
 assets                                            $   85,182   $   40,956
Fraud-related loans and OREO included in
 nonperforming assets                                   4,682        5,302
                                                   ----------   ----------
     Nonperforming assets (GAAP)                   $   89,864   $   46,258
                                                   ==========   ==========
Allowance for Loan Losses Reconciliation
Allowance for loan losses excluding special
 fraud-related allowance                           $   89,848   $   89,423
Fraud-related allowance for loan losses                     -            -
                                                   ----------   ----------
     Allowance for loan losses (GAAP)              $   89,848   $   89,423
                                                   ==========   ==========
Net Charge Offs Reconciliation
Net charge offs excluding charge off of
 fraud-related loans                               $    7,075   $   13,012
Fraud-related loans charged off                             -       18,000
                                                   ----------   ----------
     Net charge offs (GAAP)                        $    7,075   $   31,012
                                                   ==========   ==========
Allowance for Loan Losses to Loans Ratio
 Reconciliation
Allowance for loan losses to loans ratio excluding
 fraud-related allowance                                 1.51%        1.51%
Portion of allowance assigned to fraud-related
 loans                                                      -            -
                                                   ----------   ----------
     Allowance for loan losses to loans ratio (GAAP)     1.51%        1.51%
                                                   ==========   ==========
Nonperforming Assets to Total Assets Ratio
 Reconciliation
Nonperforming assets to total assets ratio
 excluding fraud-related assets                          1.02%         .50%
Fraud-related nonperforming assets                        .05          .06
                                                   ----------   ----------
     Nonperforming assets to total assets ratio
     (GAAP)                                             1.07%         .56%
                                                   ==========   ==========
Net Charge Offs to Average Loans Ratio
 Reconciliation
Net charge offs to average loans ratio excluding
 fraud-related loans                                      .48%         .87%
Charge offs of fraud-related loans                          -         1.20
                                                   ----------   ----------
     Net charge offs to average loans ratio (GAAP)        .48%        2.07%
                                                   ==========   ==========
Operating Expenses Reconciliation
Operating expenses (operating basis)               $   47,529   $   49,336
Merger-related charges                                      -            -
                                                   ----------   ----------
     Operating expenses (GAAP)                     $   47,529   $   49,336
                                                   ==========   ==========
UNITED COMMUNITY BANKS, INC.
Operating Earnings to GAAP Earnings Reconciliation
Presented Only For Periods Where Non-GAAP Earnings Measures Are Shown
(in thousands, except per share data)
                                          Years Ended December 31,
                                ------------------------------------------
                                  2008       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 (Loss)
 Reconciliation
Operating net income (loss)     $ (63,450) $  68,991  $  47,156  $  39,475
After-tax effect of special
 provision and merger-related
 charges                                -    (10,998)      (119)      (566)
                                ---------  ---------  ---------  ---------
     Net income (loss) (GAAP)   $ (63,450) $  57,993  $  47,037  $  38,909
                                =========  =========  =========  =========
Basic Earnings (Loss) Per Share
 Reconciliation
Basic operating earnings (loss)
 per share                      $   (1.35) $    1.50  $    1.31  $    1.15
Per share effect of special
 provision and merger-related
 charges                                -       (.24)      (.02)      (.04)
                                ---------  ---------  ---------  ---------
     Basic earnings (loss) per
      share (GAAP)              $   (1.35) $    1.26  $    1.29  $    1.11
                                =========  =========  =========  =========
Diluted Earnings (Loss) Per
 Share Reconciliation
Diluted operating earnings
 (loss) per share               $   (1.35) $    1.48  $    1.27  $    1.12
Per share effect of special
 provision and merger-related
 charges                                -       (.24)      (.02)      (.04)
                                ---------  ---------  ---------  ---------
     Diluted earnings (loss)
      per share (GAAP)          $   (1.35) $    1.24  $    1.25  $    1.08
                                =========  =========  =========  =========
Provision for Loan Losses
 Reconciliation
Operating provision for loan
 losses                         $ 184,000  $  37,600  $   7,600  $   6,300
Special provision for fraud
 related loan losses                    -     18,000          -          -
                                ---------  ---------  ---------  ---------
     Provision for loan losses
      (GAAP)                    $ 184,000  $  55,600  $   7,600  $   6,300
                                =========  =========  =========  =========
Nonperforming Assets
 Reconciliation
Nonperforming assets excluding
 fraud-related assets           $ 247,719  $  40,956  $   8,725  $   7,589
Fraud-related loans and OREO
 included in nonperforming
 assets                             2,772      5,302          -          -
                                ---------  ---------  ---------  ---------
     Nonperforming assets
      (GAAP)                    $ 250,491  $  46,258  $   8,725  $   7,589
                                =========  =========  =========  =========
Allowance for Loan Losses
 Reconciliation
Allowance for loan losses
 excluding special
 fraud-related allowance        $ 122,271  $  89,423  $  47,196  $  38,655
Fraud-related allowance for
 loan losses                            -          -          -          -
                                ---------  ---------  ---------  ---------
     Allowance for loan losses
      (GAAP)                    $ 122,271  $  89,423  $  47,196  $  38,655
                                =========  =========  =========  =========
Net Charge Offs Reconciliation
Net charge offs excluding
 charge off of fraud-related
 loans                          $ 151,152  $  21,834  $   3,617  $   4,097
Fraud-related loans charged off         -     18,000          -          -
                                ---------  ---------  ---------  ---------
     Net charge offs (GAAP)     $ 151,152  $  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             2.14%      1.51%      1.26%      1.28%
Portion of allowance assigned
 to fraud-related loans                 -          -          -          -
                                ---------  ---------  ---------  ---------
     Allowance for loan losses
      to loans ratio (GAAP)          2.14%      1.51%      1.26%      1.28%
                                =========  =========  =========  =========
Nonperforming Assets to Total
 Assets Ratio Reconciliation
Nonperforming assets to total
 assets ratio excluding
 fraud-related assets                2.91%       .50%       .17%       .19%
Fraud-related nonperforming
 assets                               .03        .06          -          -
                                ---------  ---------  ---------  ---------
     Nonperforming assets to
      total assets ratio (GAAP)      2.94%       .56%       .17%       .19%
                                =========  =========  =========  =========
Net Charge Offs to Average
 Loans Ratio Reconciliation
Net charge offs to average
 loans ratio excluding
 fraud-related loans                 2.57%       .38%       .11%       .15%
Charge offs of fraud-related
 loans                                  -        .31          -          -
                                ---------  ---------  ---------  ---------
     Net charge offs to average
      loans ratio (GAAP)             2.57%       .69%       .11%       .15%
                                =========  =========  =========  =========
Operating Expenses
 Reconciliation
Operating expenses (operating
 basis)                         $ 206,699  $ 190,061  $ 110,974  $  97,251
Merger-related charges                  -          -        870      2,088
                                ---------  ---------  ---------  ---------
     Operating expenses (GAAP)  $ 206,699  $ 190,061  $ 111,844  $  99,339
                                =========  =========  =========  =========
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
                                                     Three Months Ended
                                                         December 31,
                                                   -----------------------
(in thousands, except per share data)                 2008         2007
                                                   ----------   ----------
Interest revenue:
  Loans, including fees                            $   86,409   $  121,248
  Investment securities:
    Taxable                                            18,640       18,296
    Tax exempt                                            324          405
  Federal funds sold, commercial paper and
   deposits in banks                                    2,508          336
                                                   ----------   ----------
       Total interest revenue                         107,881      140,285
                                                   ----------   ----------
Interest expense:
   Deposits:
     NOW                                                6,045       10,999
     Money market                                       3,124        4,314
     Savings                                              204          417
     Time                                              41,512       40,934
                                                   ----------   ----------
       Total deposit interest expense                  50,885       56,664
  Federal funds purchased, repurchase agreements
   and other short-term borrowings                        445        6,010
  Federal Home Loan Bank advances                       2,358        6,275
  Long-term debt                                        2,873        2,089
                                                   ----------   ----------
    Total interest expense                             56,561       71,038
                                                   ----------   ----------
    Net interest revenue                               51,320       69,247
  Provision for loan losses                            85,000       29,500
                                                   ----------   ----------
    Net interest (loss) revenue after provision
     for loan losses                                  (33,680)      39,747
                                                   ----------   ----------
Fee revenue:
  Service charges and fees                              7,742        8,350
  Mortgage loan and other related fees                  1,528        1,720
  Consulting fees                                       1,260        2,577
  Brokerage fees                                          645        1,064
  Securities gains, net                                   838        1,364
  Losses on prepayment of borrowings                   (2,714)      (1,078)
  Other                                                 1,419        2,103
                                                   ----------   ----------
    Total fee revenue                                  10,718       16,100
                                                   ----------   ----------
    Total revenue                                     (22,962)      55,847
                                                   ----------   ----------
Operating expenses:
  Salaries and employee benefits                       24,441       27,116
  Communications and equipment                          3,897        3,890
  Occupancy                                             3,663        3,489
  Advertising and public relations                      1,358        1,873
  Postage, printing and supplies                        1,763        1,546
  Professional fees                                     2,313        1,809
  Foreclosed property                                   5,238        3,850
  FDIC assessments and other regulatory charges         1,980        1,101
  Amortization of intangibles                             745          771
  Other                                                 7,041        3,891
                                                   ----------   ----------
    Total operating expenses                           52,439       49,336
                                                   ----------   ----------
  (Loss) income before income taxes                   (75,401)       6,511
  Income tax (benefit) expense                        (28,654)       2,310
                                                   ----------   ----------
    Net (loss) income                                 (46,747)       4,201
  Preferred stock dividends                               712            4
                                                   ----------   ----------
    Net (loss) income available to common
     shareholders                                  $  (47,459)  $    4,197
                                                   ==========   ==========
(Loss) earnings per common share:
  Basic                                            $     (.99)  $      .09
  Diluted                                                (.99)         .09
Cash dividends per common share                           .00          .09
Stock dividends per common share                          .09          .00
Weighted average common shares outstanding:
  Basic                                                47,844       47,273
  Diluted                                              47,844       47,652
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
                                                     Twelve Months Ended
                                                         December 31,
                                                   -----------------------
(in thousands, except per share data)                 2008         2007
                                                   ----------   ----------
Interest revenue:
  Loans, including fees                            $  385,959   $  482,333
  Investment securities:
    Taxable                                            74,405       64,377
    Tax exempt                                          1,464        1,718
  Federal funds sold, commercial paper and deposits
   in banks                                             2,880          608
                                                   ----------   ----------
      Total interest revenue                          464,708      549,036
                                                   ----------   ----------
Interest expense:
  Deposits:
    NOW                                                28,626       45,142
    Money market                                       10,643       15,396
    Savings                                               764        1,653
    Time                                              158,268      167,400
                                                   ----------   ----------
      Total deposit interest expense                  198,301      229,591
  Federal funds purchased, repurchase agreements
   and other short-term borrowings                      7,699       16,236
  Federal Home Loan Bank advances                      13,026       22,013
  Long-term debt                                        9,239        8,594
                                                   ----------   ----------
    Total interest expense                            228,265      276,434
                                                   ----------   ----------
    Net interest revenue                              236,443      272,602
  Provision for loan losses                           184,000       55,600
                                                   ----------   ----------
    Net interest (loss) revenue after provision
     for loan losses                                   52,443      217,002
                                                   ----------   ----------
Fee revenue:
  Service charges and fees                             31,683       31,433
  Mortgage loan and other related fees                  7,103        8,537
  Consulting fees                                       7,046        8,946
  Brokerage fees                                        3,457        4,095
  Securities gains, net                                 1,315        3,182
  Losses on prepayment of borrowings                   (2,714)      (2,242)
  Other                                                 5,251        8,700
                                                   ----------   ----------
    Total fee revenue                                  53,141       62,651
                                                   ----------   ----------
    Total revenue                                     105,584      279,653
                                                   ----------   ----------
Operating expenses:
  Salaries and employee benefits                      110,574      115,153
  Communications and equipment                         15,490       15,483
  Occupancy                                            14,988       13,613
  Advertising and public relations                      6,117        7,524
  Postage, printing and supplies                        6,296        6,365
  Professional fees                                     7,509        7,218
  Foreclosed property                                  19,110        4,980
  FDIC assessments and other regulatory charges         6,020        2,780
  Amortization of intangibles                           3,009        2,739
  Other                                                17,586       14,206
                                                   ----------   ----------
    Total operating expenses                          206,699      190,061
                                                   ----------   ----------
  (Loss) income before income taxes                  (101,115)      89,592
  Income tax (benefit) expense                        (37,665)      31,599
                                                   ----------   ----------
    Net (loss) income                                 (63,450)      57,993
  Preferred stock dividends                               724           18
                                                   ----------   ----------
    Net (loss) income available to common
     shareholders                                  $  (64,174)  $   57,975
                                                   ==========   ==========
(Loss) earnings per common share:
  Basic                                            $    (1.35)  $     1.26
  Diluted                                               (1.35)        1.24
Cash dividends per common share                           .18          .36
Stock dividends per common share                          .18          .00
Weighted average common shares outstanding:
  Basic                                                47,369       45,948
  Diluted                                              47,369       46,593
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
                                                  December 31, December 31,
 (in thousands, except share and per share data)      2008         2007
                                                  -----------  -----------
                                                  (unaudited)  (unaudited)
 ASSETS
   Cash and due from banks                        $   116,395  $   157,549
   Interest-bearing deposits in banks                   8,417       62,074
   Federal funds sold, commercial paper and
    short-term investments                            368,609            -
                                                  -----------  -----------
     Cash and cash equivalents                        493,421      219,623
   Securities available for sale                    1,617,187    1,356,846
   Mortgage loans held for sale                        20,334       28,004
   Loans, net of unearned income                    5,704,861    5,929,263
     Less allowance for loan losses                   122,271       89,423
                                                  -----------  -----------
         Loans, net                                 5,582,590    5,839,840
   Premises and equipment, net                        179,160      180,088
   Accrued interest receivable                         46,088       62,828
   Goodwill and other intangible assets               321,798      325,305
   Other assets                                       260,187      194,768
                                                  -----------  -----------
     Total assets                                 $ 8,520,765  $ 8,207,302
                                                  ===========  ===========
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Liabilities:
   Deposits:
     Demand                                       $   654,036  $   700,941
     NOW                                            1,543,385    1,474,818
     Money market                                     466,750      452,917
     Savings                                          170,275      186,392
     Time:
         Less than $100,000                         1,953,235    1,573,604
         Greater than $100,000                      1,422,974    1,364,763
         Brokered                                     792,969      322,516
                                                  -----------  -----------
            Total deposits                          7,003,624    6,075,951
    Federal funds purchased, repurchase
     agreements, and other short-term borrowings      108,411      638,462
    Federal Home Loan Bank advances                   235,321      519,782
    Long-term debt                                    150,986      107,996
    Accrued expenses and other liabilities             33,041       33,209
                                                  -----------  -----------
         Total liabilities                          7,531,383    7,375,400
                                                  -----------  -----------
 Shareholders' equity:
     Preferred stock, $1 par value; 10,000,000
      shares authorized;
         Series A; $10 stated value; 25,800 and
          25,800 shares issued
          and outstanding                                 258          258
         Series B; $1,000 stated value; 180,000
          shares issued and outstanding
          at December 31, 2008                        173,180            -
     Common stock, $1 par value; 100,000,000
      shares authorized;
      48,809,301 and 48,809,301 shares issued          48,809       48,809
     Common stock issuable; 129,304 and 73,250
      shares                                            2,908        2,100
     Capital surplus                                  460,708      462,881
     Retained earnings                                265,405      347,391
     Treasury stock; 799,892 and 1,905,921
      shares, at cost                                 (16,465)     (43,798)
     Accumulated other comprehensive income            54,579       14,261
                                                  -----------  -----------
         Total shareholders' equity                   989,382      831,902
                                                  -----------  -----------
         Total liabilities and shareholders'
          equity                                  $ 8,520,765  $ 8,207,302
                                                  ===========  ===========
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 31,
                                                      2008
                                     -----------  ------------ -----------
(dollars in thousands, taxable         Average                     Avg.
 equivalent)                           Balance      Interest       Rate
                                     -----------  ------------ -----------
Assets:
Interest-earning assets:
  Loans, net of unearned income
   (1)(2)                            $ 5,784,139  $     86,530        5.95%
  Taxable securities (3)               1,478,427        18,640        5.04
  Tax-exempt securities (1)(3)            30,381           530        6.98
  Federal funds sold and other
   interest-earning assets               369,589         2,734        2.96
                                     -----------  ------------
      Total interest-earning assets    7,662,536       108,434        5.64
                                     -----------  ------------
Non-interest-earning assets:
  Allowance for loan losses             (109,956)
  Cash and due from banks                116,463
  Premises and equipment                 179,807
  Other assets (3)                       600,247
                                     -----------
      Total assets                   $ 8,449,097
                                     ===========
Liabilities and Shareholders'
 Equity:
Interest-bearing liabilities:
  Interest-bearing deposits:
    NOW                              $ 1,534,370  $      6,045        1.57
    Money market                         424,940         3,124        2.92
    Savings                              174,186           204         .47
    Time less than $100,000            1,916,811        18,524        3.84
    Time greater than $100,000         1,448,818        14,558        4.00
    Brokered                             818,100         8,430        4.10
                                     -----------  ------------
      Total interest-bearing
       deposits                        6,317,225        50,885        3.20
                                     -----------  ------------
  Federal funds purchased and other
   borrowings                            109,712           445        1.61
  Federal Home Loan Bank advances        284,860         2,358        3.29
  Long-term debt                         146,746         2,873        7.79
                                     -----------  ------------
      Total borrowed funds               541,318         5,676        4.17
                                     -----------  ------------
      Total interest-bearing
       liabilities                     6,858,543        56,561        3.28
                                                  ------------
Non-interest-bearing liabilities:
  Non-interest-bearing deposits          665,004
  Other liabilities                       73,594
                                     -----------
      Total liabilities                7,597,141
Shareholders' equity                     851,956
                                     -----------
      Total liabilities and
       shareholders' equity          $ 8,449,097
                                     ===========
Net interest revenue                              $     51,873
                                                  ============
Net interest-rate spread                                              2.36%
                                                               ===========
Net interest margin (4)                                               2.70%
                                                               ===========
(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 $3.6 million in 2008 and $799 thousand in 2007 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,
                                                      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            1,583,989        19,392        4.86
    Time greater than $100,000         1,362,812        17,467        5.08
    Brokered                             322,963         4,075        5.01
                                     -----------  ------------
      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 $3.6 million in 2008 and $799 thousand in 2007 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,
                                                      2008
                                     -----------  ------------ -----------
(dollars in thousands, taxable         Average                     Avg.
 equivalent)                           Balance      Interest       Rate
                                     -----------  ------------ -----------
Assets:
Interest-earning assets:
  Loans, net of unearned income
   (1)(2)                            $ 5,890,889  $    386,132        6.55%
  Taxable securities (3)               1,455,206        74,405        5.11
  Tax-exempt securities (1)(3)            33,830         2,406        7.11
  Federal funds sold and other
   interest-earning assets               124,261         4,026        3.24
                                     -----------  ------------
      Total interest-earning assets    7,504,186       466,969        6.22
                                     -----------  ------------
Non-interest-earning assets:
  Allowance for loan losses              (97,385)
  Cash and due from banks                131,778
  Premises and equipment                 180,857
  Other assets (3)                       579,894
                                     -----------
      Total assets                   $ 8,299,330
                                     ===========
Liabilities and Shareholders'
 Equity:
Interest-bearing liabilities:
  Interest-bearing deposits:
    NOW                              $ 1,491,419  $     28,626        1.92
    Money market                         426,988        10,643        2.49
    Savings                              182,067           764         .42
    Time less than $100,000            1,724,036        71,844        4.17
    Time greater than $100,000         1,457,397        62,888        4.32
    Brokered                             565,111        23,536        4.16
                                     -----------  ------------
      Total interest-bearing
       deposits                        5,847,018       198,301        3.39
                                     -----------  ------------
  Federal funds purchased and other
   borrowings                            324,634         7,699        2.37
  Federal Home Loan Bank advances        410,605        13,026        3.17
  Long-term debt                         120,442         9,239        7.67
                                     -----------  ------------
      Total borrowed funds               855,681        29,964        3.50
                                     -----------  ------------
      Total interest-bearing
       liabilities                     6,702,699       228,265        3.41
                                                  ------------
Non-interest-bearing liabilities:
  Non-interest-bearing deposits          677,439
  Other liabilities                       68,766
                                     -----------
      Total liabilities                7,448,904
Shareholders' equity                     850,426
                                     -----------
      Total liabilities and
       shareholders' equity          $ 8,299,330
                                     ===========
Net interest revenue                              $    238,704
                                                  ============
Net interest-rate spread                                              2.81%
                                                               ===========
Net interest margin (4)                                               3.18%
                                                               ===========
(1)  Interest revenue on tax-exempt securities and loans has been increased
to reflect comparable interest on taxable securities and loans.  The rate
used was 39%, reflecting the statutory federal income tax rate and
the federal tax adjusted state income tax rate.
(2)  Included in the average balance of loans outstanding are loans where
the accrual of interest has been discontinued.
(3)  Securities available for sale are shown at amortized cost.  Pretax
unrealized gains of $3.3 million in 2008 and pretax unrealized losses of
$8.1 million in 2007 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            1,619,332        79,317        4.90
    Time greater than $100,000         1,377,915        71,467        5.19
    Brokered                             337,323        16,616        4.93
                                     -----------  ------------
      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 gains of $3.3 million in 2008 and pretax unrealized losses of
$8.1 million in 2007 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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