United Community Banks, Inc.
Jan 29, 2010

United Community Banks, Inc. Reports Net Operating Loss for Fourth Quarter 2009

BLAIRSVILLE, GA, Jan 29, 2010 (MARKETWIRE via COMTEX News Network) -- United Community Banks, Inc. (NASDAQ: UCBI)

--  Non-performing assets down $30 million to $385 million from last
    quarter
--  Provision for loan losses of $90 million exceeded charge-offs by $5.4
    million
--  Allowance-to-loans ratio of 3.02 percent, up from 2.80 percent last
    quarter
--  Margin continues to improve to 3.40%, up 70 basis points from a year
    ago
--  Capital ratios remain strong


United Community Banks, Inc. (NASDAQ: UCBI) today reported a net operating loss of $39.8 million, or 45 cents per diluted share, for the fourth quarter of 2009.

Net operating loss for the year 2009 was $138.6 million, or $2.47 per diluted share, and did not reflect $95 million of non-cash charges for goodwill impairment in the first and third quarters. Also not included were $2.9 million in severance costs in the first quarter and the $11.4 million gain on the Southern Community Bank acquisition in the second quarter, all of which are considered non-operating items and are therefore excluded from operating earnings. Including these non-operating items, the net loss for 2009 was $228.3 million, or $3.95 per diluted share.

"Credit continues to be our major challenge," stated Jimmy Tallent, president and chief executive officer. "We were able to sell non-performing loans and foreclosed properties totaling $81 million, up from $55 million in the third quarter. In addition, we made significant progress in 2009 in terms of implementing offensive strategies that allowed us to almost double our quarter's core earnings from a year ago."

Total loans were $5.151 billion at year-end, down $212 million from the third quarter and $554 million from year-end 2008, reflecting ongoing reductions due to weakness in the residential construction market and the overall weak business environment. "The decline in loans was primarily in residential construction and acquisition and development loans," stated Tallent. As of December 31, 2009, residential construction loans were $1.050 billion, or 20 percent of total loans, a decrease of $429 million from a year ago and $135 million from the third quarter of 2009. Our new loan business continues to offset some of this decline and totaled $273 million, or five percent for the year. The growth was consistent for all quarters, with the majority of the growth in commercial loans within the Atlanta market.

Taxable equivalent net interest revenue of $63.9 million reflected an increase of $925 thousand from last quarter. "The taxable equivalent net interest margin was 3.40 percent, up slightly from 3.39 percent last quarter," stated Tallent. "The margin improvement would have been greater, but we made a decision to build liquidity due to uncertainties in the market. This lowered our margin by approximately 20 basis points this quarter compared to two basis points last quarter. We expect most of the excess liquidity to run off in the first half of 2010. During the quarter we continued to maintain our loan pricing while significantly reducing deposit costs, which drove the expansion of our net interest margin."

"Though core customer transaction deposits were up only slightly from the third quarter, they grew $205 million for the year, or 10 percent, excluding the acquisition in the second quarter," Tallent said. "This growth reflects the continued success of adding to our customer base through customer referral and cross-selling programs. For the full year of 2009, we opened 9,904 net new core deposit accounts and added 60,318 new services."

The fourth quarter provision for loan losses was $90.0 million compared to $95.0 million for the third quarter of 2009. Net charge-offs for the fourth quarter were $84.6 million compared to $90.5 million for the third quarter of 2009. At quarter-end, non-performing assets totaled $385 million compared to $415 million at September 30, 2009. The ratio of non-performing assets to total assets at the end of the fourth and third quarters was 4.81 percent and 4.91 percent, respectively. The allowance for loan losses to total loans was 3.02 percent and 2.80 percent, respectively.

"We are pleased to report a decline in non-performing assets in the fourth quarter," stated Tallent. "Also, on the positive side, we did see a decline this quarter in our classified and watch list loans. Our past due loans over 30 days declined from 2.02 percent to 1.44 percent. Residential construction loans continue to be at the center of our challenges. In terms of non-performing assets, we are hopeful our declining trend will continue given the portfolio run-off in Atlanta, and the decline in past dues and classified loans. However, we could face more difficulty liquidating properties in our non-Atlanta markets. We expect charge-offs to decline from current levels, but remain elevated in 2010."

Operating fee revenue of $17.2 million for the fourth quarter of 2009 increased $1.6 million from last quarter and $6.5 million from last year primarily due to non-core revenue items. These non-core items included securities gains of $2.0 million, $1.1 million and $838 thousand for the fourth quarter 2009, third quarter 2009 and fourth quarter 2008, respectively. Also, the fourth quarter 2008 included $2.7 million in prepayment charges to restructure borrowings. Excluding these items, core fee revenue was $15.2 million for the fourth quarter of 2009, compared to $14.5 million for last quarter and $12.6 million a year ago. Service charges and fees of $8.3 million for the fourth quarter of 2009 were up $515 thousand from a year ago, primarily due to higher ATM and debit card fees relating to an increase in transactions and new customer accounts. Consulting fees of $2.8 million were up $492 thousand from last quarter and $1.5 million from a year ago due in large part to increasing demand for regulatory compliance assistance. Consulting fees were down in the fourth quarter of 2008 due to an internal project for United to improve profitability that did not result in the recognition of revenue.

Operating expenses for the fourth quarter of 2009 were $62.5 million, an increase of $10.1 million from fourth quarter 2008, driven by the $9.2 million increase in foreclosed property costs and $1.7 million increase in FDIC insurance premiums. Foreclosed property costs for the fourth quarter were $14.4 million as compared to $5.2 million last year and $7.9 million last quarter. Foreclosed property costs this quarter included $9.6 million for write-downs and losses on sales and $4.8 million for maintenance, property taxes, and other related costs. This quarter included $7.4 million of losses on sales due to the higher volume of property sold during the quarter. Also, $2.2 million of additional write downs were taken on existing foreclosed properties to help expedite future sales. Salary and benefit costs for the fourth quarter totaled $26.2 million, up from $24.4 million last year due primarily to a $3.0 million bonus accrual reduction and a deferred compensation credit adjustment of $736 thousand recorded last year. Excluding these items, salary and benefit costs were down $2.0 million compared to last year, reflective of the reduction in work force of 183 staff positions during 2009, that was offset partially by the acquisition of Southern Community Bank in June 2009. Communications costs for the quarter remained flat, while advertising and printing costs were down $325 thousand and $448 thousand, respectively, from last year. Other expenses of $4.5 million decreased $2.5 million from the fourth quarter of 2008, due primarily to $2.0 million of bank owned life insurance expenses accrued last year that were later recovered in the second quarter of 2009 with the decision to cancel the surrender of our bank owned life insurance policies.

The effective tax rate for the fourth quarter of 2009 was 45 percent, compared to 28 percent last quarter and 38 percent last year. The fourth quarter 2009 tax benefit includes the favorable settlement of a several-year state tax audit dispute that was fully reserved due to the uncertainty of the tax position. The third quarter 2008 effective rate was lower due to a goodwill impairment charge which was not a taxable event and therefore did not result in the recognition of a tax benefit. The effective tax rate for 2010 is expected to be 40 percent, slightly higher than the effective tax rate for 2008.

On December 31, 2009, the company's regulatory capital ratios were as follows: Tier I Risk-Based Capital of 12.4 percent; Leverage of 8.5 percent; and Total Risk-Based of 15.1 percent. Also, the quarterly average tangible equity-to-assets ratio was 9.5 percent and tangible common equity-to-assets ratio was 7.4 percent.

"Our ultimate goal is to return to profitability as soon as possible, and our attention is relentlessly focused toward that goal," concluded Tallent.

Conference Call

United Community Banks will hold a conference call today, Friday, January 29, 2010, at 11 a.m. ET to discuss the contents of this news release and to share business highlights for the quarter. To access the call, dial (888) 806-6208 and use the password '8006436.' The conference call also will be webcast and can be accessed by selecting 'Calendar of Events' within the Investor Relations section of the company's web site at http://ir.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 $8.0 billion and operates 27 community banks with 107 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina and east Tennessee. The company specializes in providing personalized community banking services to individuals and small to mid-size businesses. United Community Banks also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United Community Banks common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at the company's web site at www.ucbi.com.

Safe Harbor

This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of some factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled "Forward-Looking Statements" on page 3 of United Community Banks, Inc.'s annual report filed on Form 10-K with the Securities and Exchange Commission.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
(in thousands,
 except per                         2009                          2008
 share         ----------------------------------------------  ----------
data; taxable    Fourth       Third      Second       First      Fourth
 equivalent)     Quarter     Quarter     Quarter     Quarter     Quarter
               ----------  ----------  ----------  ----------  ----------
INCOME SUMMARY
Interest
 revenue       $   97,481  $  101,181  $  102,737  $  103,562  $  108,434
Interest
 expense           33,552      38,177      41,855      46,150      56,561
               ----------  ----------  ----------  ----------  ----------
  Net
   interest
   revenue         63,929      63,004      60,882      57,412      51,873
Provision for
 loan losses       90,000      95,000      60,000      65,000      85,000
Operating fee
 revenue (1)       17,221      15,671      13,050      12,846      10,718
               ----------  ----------  ----------  ----------  ----------
  Total
   operating
   revenue (1)     (8,850)    (16,325)     13,932       5,258     (22,409)
Operating
 expenses (2)      62,532      53,606      55,348      52,569      52,439
               ----------  ----------  ----------  ----------  ----------
  Operating
   loss before
   taxes          (71,382)    (69,931)    (41,416)    (47,311)    (74,848)
Operating
 income tax
 benefit          (31,547)    (26,213)    (18,353)    (15,335)    (28,101)
               ----------  ----------  ----------  ----------  ----------
  Net operating
   loss (1)(2)    (39,835)    (43,718)    (23,063)    (31,976)    (46,747)
Gain from
 acquisition,
 net of tax
 expense                -           -       7,062           -           -
Noncash
 goodwill
 impairment
 charge                 -     (25,000)          -     (70,000)          -
Severance
 costs, net of
 tax benefit            -           -           -      (1,797)          -
               ----------  ----------  ----------  ----------  ----------
  Net loss        (39,835)    (68,718)    (16,001)   (103,773)    (46,747)
Preferred
 dividends and
 discount
 accretion          2,567       2,562       2,559       2,554         712
Net loss
 available
 to common     ----------  ----------  ----------  ----------  ----------
 shareholders  $  (42,402) $  (71,280) $  (18,560) $ (106,327) $  (47,459)
               ==========  ==========  ==========  ==========  ==========
PERFORMANCE
 MEASURES
  Per common
   share:
    Diluted
     operating
     loss
     (1)(2)    $     (.45) $     (.93) $     (.53) $     (.71) $     (.99)
    Diluted
     loss            (.45)      (1.43)       (.38)      (2.20)       (.99)
    Cash
     dividends
     declared           -           -           -           -           -
    Stock
     dividends
     declared
     (6)                -   1 for 130   1 for 130   1 for 130   1 for 130
    Book value       8.36        8.85       13.87       14.70       16.95
    Tangible
     book
     value (4)       6.02        6.50        8.85        9.65       10.39
  Key
   performance
   ratios:
    Return on
     equity
     (3)(5)        (22.08)%    (45.52)%    (11.42)%    (58.28)%    (23.83)%
    Return on
     assets
     (5)            (1.91)      (3.32)       (.78)      (5.03)      (2.19)
    Net
     interest
     margin
     (5)             3.40        3.39        3.28        3.08        2.70
    Operating
     efficiency
     ratio (1)(2)   79.02       69.15       74.15       75.15       81.34
    Equity to
     assets         11.94       10.27       10.71       11.56       10.04
    Tangible
     equity to
     assets (4)      9.53        7.55        7.96        8.24        6.56
    Tangible
     common
     equity to
     assets (4)      7.37        5.36        5.77        6.09        6.21
    Tangible
     common
     equity to
     risk-
     weighted
     assets (4)     10.39       10.67        7.49        8.03        8.34
ASSET QUALITY *
  Non-performing
   loans
   (NPLs)      $  264,092  $  304,381  $  287,848  $  259,155  $  190,723
  Foreclosed
   properties     120,770     110,610     104,754      75,383      59,768
               ----------  ----------  ----------  ----------  ----------
    Total
     non-
     performing
     assets
     (NPAs)       384,862     414,991     392,602     334,538     250,491
  Allowance
   for loan
   losses         155,602     150,187     145,678     143,990     122,271
  Net
   charge-offs     84,585      90,491      58,312      43,281      74,028
  Allowance
   for loan
   losses to
   loans             3.02 %      2.80 %      2.64 %      2.56 %      2.14 %
  Net
   charge-offs
   to average
   loans (5)         6.37        6.57        4.18        3.09        5.09
  NPAs to
   loans and
   foreclosed
   properties        7.30        7.58        6.99        5.86        4.35
  NPAs to
   total
   assets            4.81        4.91        4.63        4.09        2.92
AVERAGE
 BALANCES
  Loans        $5,357,150  $5,565,498  $5,597,259  $5,675,054  $5,784,139
  Investment
   securities   1,528,805   1,615,499   1,771,482   1,712,654   1,508,808
  Earning
   assets       7,486,790   7,400,539   7,442,178   7,530,230   7,662,536
  Total assets  8,286,544   8,208,199   8,212,140   8,372,281   8,487,017
  Deposits      6,835,052   6,689,948   6,544,537   6,780,531   6,982,229
  Shareholders'
   equity         989,279     843,130     879,210     967,505     851,956
  Common
   shares -
   basic           94,219      49,771      48,794      48,324      47,844
  Common
   shares -
   diluted         94,219      49,771      48,794      48,324      47,844
AT PERIOD END
  Loans        $5,151,476  $5,362,689  $5,513,087  $5,632,705  $5,704,861
  Investment
   securities   1,530,047   1,532,514   1,816,787   1,719,033   1,617,187
  Total assets  7,999,914   8,443,617   8,477,355   8,171,663   8,591,933
  Deposits      6,627,834   6,821,306   6,848,760   6,616,488   7,003,624
  Shareholders'
   equity         962,321   1,006,638     855,272     888,853     989,382
  Common
   shares
   outstanding     94,046      93,901      48,933      48,487      48,009
(1)  Excludes the gain from acquisition of $11.4 million, net of income tax
expense of $4.3 million in the second quarter of 2009. (2)  Excludes the
goodwill impairment charges of $25 million and $70
million in the third and first quarters of 2009, respectively, and
severance costs of $2.9 million, net of income tax benefit of $1.1 million
in the first quarter of 2009. (3)  Net loss available to common
shareholders, which is net of preferred stock dividends, divided by average
realized common equity, which excludes accumulated other comprehensive
income (loss). (4)  Excludes effect of acquisition related intangibles and
associated amortization. (5)  Annualized.  (6)  Number of new shares issued
for shares currently held.  NM - Not meaningful.
* Excludes loans and foreclosed properties covered by loss sharing
agreements with the FDIC.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
(in
 thousands,
 except
 per share                          Fourth
 data;                              Quarter     For the Twelve       YTD
 taxable         Fourth Quarter      2009-       Months Ended        2009-
 equiv-    ------------------------  2008  ------------------------  2008
 alent)        2009         2008    Change      2009         2008   Change
           -----------  ----------- ------ -----------  ----------- ------
INCOME
 SUMMARY
Interest
 revenue   $    97,481  $   108,434        $   404,961  $   466,969
Interest
 expense        33,552       56,561            159,734      228,265
           -----------  -----------        -----------  -----------
  Net
   interest
   revenue      63,929       51,873     23%    245,227      238,704      3%
Provision
 for loan
 losses         90,000       85,000            310,000      184,000
Operating
 fee
 revenue
 (1)            17,221       10,718     61      58,788       53,141     11
           -----------  -----------        -----------  -----------
  Total
   operating
   revenue
   (1)          (8,850)     (22,409)    61      (5,985)     107,845   (106)
Operating
 expenses
 (2)            62,532       52,439     19     224,055      206,699      8
           -----------  -----------        -----------  -----------
  Operating
   loss
   before
   taxes       (71,382)     (74,848)     5    (230,040)     (98,854)  (133)
Operating
 income
 tax
 benefit       (31,547)     (28,101)           (91,448)     (35,404)
           -----------  -----------        -----------  -----------
  Net
   operating
   loss
   (1)(2)      (39,835)     (46,747)    15    (138,592)     (63,450)  (118)
Gain from
 acquisition,
 net of tax
 expense             -            -              7,062            -
Noncash
 goodwill
 impairment
 charge              -            -            (95,000)           -
Severance
 costs,
 net of tax
 benefit             -            -             (1,797)           -
           -----------  -----------        -----------  -----------
  Net loss     (39,835)     (46,747)    15    (228,327)     (63,450)  (260)
Preferred
 dividends
 and discount
 accretion       2,567          712             10,242          724
Net loss
 available
 to common
 share-
 holders   -----------  -----------        -----------  -----------
           $   (42,402) $   (47,459)       $  (238,569) $   (64,174)
           ===========  ===========        ===========  ===========
PERFORMANCE
 MEASURES
  Per
   common
   share:
    Diluted
     operating
     loss
     (1)
     (2)   $      (.45) $      (.99)    55 $     (2.47) $     (1.35)   (83)
    Diluted
     loss         (.45)        (.99)    55       (3.95)       (1.35)  (193)
    Cash
     dividends
     declared        -            -                  -          .18
    Stock
     dividends
     declared
     (6)             -    1 for 130          3 for 130    2 for 130
    Book
     value        8.36        16.95    (51)       8.36        16.95    (51)
    Tangible
     book
     value
     (4)          6.02        10.39    (42)       6.02        10.39    (42)
  Key
   performance
   ratios:
    Return
     on
     equity
     (3)(5)     (22.08)%     (23.83)%           (34.40)%      (7.82)%
    Return
     on
     assets
     (5)         (1.91)       (2.19)             (2.76)        (.76)
    Net
     interest
     margin (5)   3.40         2.70               3.29         3.18
    Operating
     efficiency
     ratio
     (1)(2)      79.02        81.34              74.37        70.49
    Equity
     to
     assets      11.94        10.04              11.12        10.22
    Tangible
     equity to
     assets (4)   9.53         6.56               8.33         6.67
    Tangible
     common
     equity
     to assets
     (4)          7.37         6.21               6.15         6.57
    Tangible
     common
     equity
     to risk-
     weighted
     assets
     (4)         10.39         8.34              10.39         8.34
ASSET
 QUALITY *
  Non-
   performing
   loans
   (NPLs)  $   264,092  $   190,723        $   264,092  $   190,723
  Foreclosed
   proper-
   ties        120,770       59,768            120,770       59,768
           -----------  -----------        -----------  -----------
    Total
     non-
     performing
     assets
     (NPAs)    384,862      250,491            384,862      250,491
  Allowance
   for loan
   losses      155,602      122,271            155,602      122,271
  Net
   charge-
   offs         84,585       74,028            276,669      151,152
  Allowance
   for loan
   losses to
   loans          3.02 %       2.14 %             3.02 %       2.14 %
  Net
   charge-
   offs to
   average
   loans (5)      6.37         5.09               5.03         2.57
  NPAs to
   loans
   and
   foreclosed
   properties     7.30         4.35               7.30         4.35
  NPAs to
   total
   assets         4.81         2.92               4.81         2.92
AVERAGE
 BALANCES
  Loans    $ 5,357,150  $ 5,784,139     (7)$ 5,547,915  $ 5,890,889     (6)
  Investment
   securi-
   ties      1,528,805    1,508,808      1   1,656,492    1,489,036     11
  Earning
   assets    7,486,790    7,662,536     (2)  7,464,639    7,504,186     (1)
  Total
   assets    8,286,544    8,487,017     (2)  8,269,387    8,319,201     (1)
  Deposits   6,835,052    6,982,229     (2)  6,712,605    6,524,457      3
  Share-
   holders'
   equity      989,279      851,956     16     919,631      850,426      8
  Common
   shares
   - basic      94,219       47,844             60,374       47,369
  Common
   shares
   - diluted    94,219       47,844             60,374       47,369
AT PERIOD
 END
  Loans    $ 5,151,476  $ 5,704,861    (10)$ 5,151,476  $ 5,704,861    (10)
  Investment
   securi-
   ties      1,530,047    1,617,187     (5)  1,530,047    1,617,187     (5)
  Total
   assets    7,999,914    8,591,933     (7)  7,999,914    8,591,933     (7)
  Deposits   6,627,834    7,003,624     (5)  6,627,834    7,003,624     (5)
  Share-
   holders'
   equity      962,321      989,382     (3)    962,321      989,382     (3)
  Common
   shares
   outstand-
   ing          94,046       48,009             94,046       48,009
(1)  Excludes the gain from acquisition of $11.4 million, net of income tax
expense of $4.3 million in the second quarter of 2009.  (2)  Excludes the
goodwill impairment charges of $25 million and $70 million in the third and
first quarters of 2009, respectively, and severance costs of $2.9 million,
net of income tax benefit of $1.1 million in the first quarter of 2009.
(3)  Net loss available to common shareholders, which is net of preferred
stock dividends, divided by average realized common equity, which excludes
accumulated other comprehensive income (loss).  (4)  Excludes effect of
acquisition related intangibles and associated amortization.  (5)
Annualized.  (6)  Number of new shares issued for shares currently held.
NM - Not meaningful.
* Excludes loans and foreclosed properties covered by loss sharing
agreements with the FDIC.
UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Years Ended December 31,
(in thousands,
 except per
 share data;
taxable
 equivalent)      2009        2008        2007        2006        2005
               ----------  ----------  ----------- ----------- -----------
 INCOME
  SUMMARY
Net interest
 revenue       $  245,227  $  238,704  $   274,483 $   237,880 $   196,799
Provision for
 loan losses
 (1)              310,000     184,000       37,600      14,600      12,100
Operating fee
 revenue (2)       58,788      53,141       62,651      49,095      46,148
               ----------  ----------  ----------- ----------- -----------
  Total
   operating
   revenue
   (1)(2)          (5,985)    107,845      299,534     272,375     230,847
Operating
 expenses (3)     224,055     206,699      190,061     162,070     140,808
               ----------  ----------  ----------- ----------- -----------
  Operating
   (loss)
   income
   before
   taxes         (230,040)    (98,854)     109,473     110,305      90,039
Operating
 income taxes     (91,448)    (35,404)      40,482      41,490      33,297
               ----------  ----------  ----------- ----------- -----------
  Net
   operating
   (loss)
   income        (138,592)    (63,450)      68,991      68,815      56,742
Gain from
 acquisition,
 net of tax         7,062           -            -           -           -
Noncash
 goodwill
 impairment
 charge           (95,000)          -            -           -           -
Severance
 cost, net of
 tax benefit       (1,797)          -            -           -           -
Fraud loss
 provision,
 net of tax
 benefit                -           -      (10,998)          -           -
  Net (loss)
   income        (228,327)    (63,450)      57,993      68,815      56,742
Preferred
 dividends and
 discount
 accretion         10,242         724           18          19          23
               ----------  ----------  ----------- ----------- -----------
  Net (loss)
   income
   available
   to common
   shareh-
   olders      $ (238,569) $  (64,174) $    57,975 $    68,796 $    56,719
               ==========  ==========  =========== =========== ===========
 PERFORMANCE
  MEASURES
Per common
 share:
  Diluted
   operating
   (loss)
   earnings
   (1)(2)(3)   $    (2.47) $    (1.35) $      1.48 $      1.66 $      1.43
  Diluted
   (loss)
   earnings         (3.95)      (1.35)        1.24        1.66        1.43
  Cash
   dividends
   declared
   (rounded)          -         .18          .36         .32         .28
  Stock
   dividends
   declared
   (6)          3 for 130   2 for 130            -           -           -
  Book value         8.36       16.95        17.73       14.37       11.80
  Tangible
   book
   value (5)         6.02       10.39        10.94       10.57        8.94
Key
 performance
 ratios:
  Return on
   equity
   (4)             (34.40)%     (7.82)%       7.79%      13.28%      13.46%
  Return on
   assets           (2.76)       (.76)         .75        1.09        1.04
  Net
   interest
   margin            3.29        3.18         3.88        4.05        3.85
  Operating
   efficiency
   ratio
   (2)(3)           74.37       70.49        56.53       56.35       57.77
  Equity to
   assets           11.12       10.22         9.61        8.06        7.63
  Tangible
   equity to
   assets (5)        8.33        6.67         6.63        6.32        5.64
  Tangible
   common
   equity to
   assets (5)        6.15        6.57         6.63        6.32        5.64
  Tangible
   common
   equity to
   risk-weighted
   assets (5)       10.39        8.34         8.21        8.09        7.75
ASSET QUALITY *
  Non-performing
   loans
   (NPLs)      $  264,092  $  190,723  $    28,219 $    12,458 $    11,997
  Foreclosed
   properties     120,770      59,768       18,039       1,196         998
               ----------  ----------  ----------- ----------- -----------
    Total
     non-
     performing
     assets
     (NPAs)       384,862     250,491       46,258      13,654      12,995
    Allowance
     for loan
     losses       155,602     122,271       89,423      66,566      53,595
   Operating
    net
    charge-offs
    (1)           276,669     151,152       21,834       5,524       5,701
   Allowance
    for loan
    losses to
    loans            3.02 %      2.14 %       1.51%       1.24%       1.22%
   Operating
    net
    charge-offs
    to average
    loans (1)        5.03        2.57          .38         .12         .14
   NPAs to
    loans and
    foreclosed
    properties       7.30        4.35          .78         .25         .30
   NPAs to
    total
    assets           4.81        2.92          .56         .19         .22
AVERAGE
 BALANCES
   Loans       $5,547,915  $5,890,889  $ 5,734,608 $ 4,800,981 $ 4,061,091
   Investment
    securities  1,656,492   1,489,036    1,277,935   1,041,897     989,201
   Earning
    assets      7,464,639   7,504,186    7,070,900   5,877,483   5,109,053
   Total
    assets      8,269,387   8,319,201    7,730,530   6,287,148   5,472,200
   Deposits     6,712,605   6,524,457    6,028,625   5,017,435   4,003,084
   Shareholders'
    equity        919,631     850,426      742,771     506,946     417,309
   Common
    shares -
    Basic          60,374      47,369       45,948      40,413      38,477
   Common
    shares -
    Diluted        60,374      47,369       46,593      41,575      39,721
AT YEAR END
   Loans       $5,151,476  $5,704,861  $ 5,929,263 $ 5,376,538 $ 4,398,286
   Investment
    securities  1,530,047   1,617,187    1,356,846   1,107,153     990,687
   Total
    assets      7,999,914   8,591,933    8,207,302   7,101,249   5,865,756
   Deposits     6,627,834   7,003,624    6,075,951   5,772,886   4,477,600
   Shareholders'
    equity        962,321     989,382      831,902     616,767     472,686
   Common
    shares
    outstanding    94,046      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, net of income tax benefit of $7 million in
2007.  (2)  Excludes the gain from acquisition of $11.4 million, net of
income tax expense of $4.3 million in 2009.  (3)  Excludes the goodwill
impairment charge of $95 million and severance costs of $2.9 million, net
of income tax benefit of $1.1 million in 2009.  (4)  Net (loss) income
available to common shareholders, which is net of preferred stock
dividends, divided by average realized common equity, which excludes
accumulated other comprehensive income (loss).  (5)  Excludes effect of
acquisition related intangibles and associated amortization.  (6)  Number
of new shares issued for shares currently held.  NM - Not meaningful.
*  Excludes loans and foreclosed properties covered by loss sharing
agreements with the FDIC.
UNITED COMMUNITY BANKS, INC.
Operating Earnings to GAAP Earnings Reconciliation
Selected Financial Information
(in thousands,                          2009                       2008
 except per share   ------------------------------------------- ----------
 data; taxable        Fourth     Third      Second     First      Fourth
 equivalent)          Quarter    Quarter    Quarter    Quarter    Quarter
                    ---------- ---------- ---------- ---------- ----------
Interest revenue
 reconciliation
Interest revenue -
 taxable equivalent $   97,481 $  101,181 $  102,737 $  103,562 $  108,434
Taxable equivalent
 adjustment               (601)      (580)      (463)      (488)      (553)
                    ---------- ---------- ---------- ---------- ----------
    Interest
     revenue (GAAP) $   96,880 $  100,601 $  102,274 $  103,074 $  107,881
                    ========== ========== ========== ========== ==========
Net interest
 revenue
 reconciliation
Net interest
 revenue - taxable
 equivalent         $   63,929 $   63,004 $   60,882 $   57,412 $   51,873
Taxable equivalent
 adjustment               (601)      (580)      (463)      (488)      (553)
                    ---------- ---------- ---------- ---------- ----------
    Net interest
     revenue (GAAP) $   63,328 $   62,424 $   60,419 $   56,924 $   51,320
                    ========== ========== ========== ========== ==========
Provision for loan
 losses
 reconciliation
Operating provision
 for loan losses    $   90,000 $   95,000 $   60,000 $   65,000 $   85,000
Special
 fraud-related
 provision for loan
 losses                      -          -          -          -          -
                    ---------- ---------- ---------- ---------- ----------
    Provision for
     loan losses
     (GAAP)         $   90,000 $   95,000 $   60,000 $   65,000 $   85,000
                    ========== ========== ========== ========== ==========
Fee revenue
 reconciliation
Operating fee
 revenue            $   17,221 $   15,671 $   13,050 $   12,846 $   10,718
Gain from
 acquisition                 -          -     11,390          -          -
                    ---------- ---------- ---------- ---------- ----------
    Fee revenue
     (GAAP)         $   17,221 $   15,671 $   24,440 $   12,846 $   10,718
                    ========== ========== ========== ========== ==========
Total revenue
 reconciliation
Total operating
 revenue            $   (8,850)$  (16,325)$   13,932 $    5,258 $  (22,409)
Taxable equivalent
 adjustment               (601)      (580)      (463)      (488)      (553)
Gain from
 acquisition                 -          -     11,390          -          -
Special
 fraud-related
 provision for loan
 losses                      -          -          -          -          -
                    ---------- ---------- ---------- ---------- ----------
    Total revenue
     (GAAP)         $   (9,451)$  (16,905)$   24,859 $    4,770 $  (22,962)
                    ========== ========== ========== ========== ==========
Expense
 reconciliation
Operating expense   $   62,532 $   53,606 $   55,348 $   52,569 $   52,439
Noncash goodwill
 impairment charge           -     25,000          -     70,000          -
Severance costs              -          -          -      2,898          -
                    ---------- ---------- ---------- ---------- ----------
    Operating
     expense (GAAP) $   62,532 $   78,606 $   55,348 $  125,467 $   52,439
                    ========== ========== ========== ========== ==========
(Loss) income
 before taxes
 reconciliation
Operating (loss)
 income before
 taxes              $  (71,382)$  (69,931)$  (41,416)$  (47,311)$  (74,848)
Taxable equivalent
 adjustment               (601)      (580)      (463)      (488)      (553)
Gain from
 acquisition                 -          -     11,390          -          -
Noncash goodwill
 impairment charge           -    (25,000)         -    (70,000)         -
Severance costs              -          -          -     (2,898)         -
Special
 fraud-related
 provision for loan
 losses                      -          -          -          -          -
                    ---------- ---------- ---------- ---------- ----------
    (Loss) income
     before taxes
     (GAAP)         $  (71,983)$  (95,511)$  (30,489)$ (120,697)$  (75,401)
                    ========== ========== ========== ========== ==========
Income tax
 (benefit) expense
 reconciliation
Operating income
 tax (benefit)
 expense            $  (31,547)$  (26,213)$  (18,353)$  (15,335)$  (28,101)
Taxable equivalent
 adjustment               (601)      (580)      (463)      (488)      (553)
Gain from
 acquisition, tax
 expense                     -          -      4,328          -          -
Severance costs,
 tax benefit                 -          -          -     (1,101)         -
Special
 fraud-related
 provision for loan
 losses                      -          -          -          -          -
                    ---------- ---------- ---------- ---------- ----------
    Income tax
     (benefit)
     expense (GAAP) $  (32,148)$  (26,793)$  (14,488)$  (16,924)$  (28,654)
                    ========== ========== ========== ========== ==========
(Loss) earnings per
 common share
 reconciliation
Operating (loss)
 earnings per
 common share       $     (.45)$     (.93)$     (.53)$     (.71)$     (.99)
Gain from
 acquisition                 -          -        .15          -          -
Noncash goodwill
 impairment charge           -       (.50)         -      (1.45)         -
Severance costs              -          -          -       (.04)         -
Special
 fraud-related
 provision for loan
 losses                      -          -          -          -          -
                    ---------- ---------- ---------- ---------- ----------
    (Loss) earnings
     per common
     share (GAAP)   $     (.45)$    (1.43)$     (.38)$    (2.20)$     (.99)
                    ========== ========== ========== ========== ==========
Book value
 reconciliation
Tangible book value $     6.02 $     6.50 $     8.85 $     9.65 $    10.39
Effect of goodwill
 and other
 intangibles              2.34       2.35       5.02       5.05       6.56
                    ---------- ---------- ---------- ---------- ----------
    Book value
     (GAAP)         $     8.36 $     8.85 $    13.87 $    14.70 $    16.95
                    ========== ========== ========== ========== ==========
Efficiency ratio
 reconciliation
Operating
 efficiency ratio        79.02%     69.15%     74.15%     75.15%     81.34%
Gain from
 acquisition                 -          -      (9.82)         -          -
Noncash goodwill
 impairment charge           -      32.24          -     100.06          -
Severance costs              -          -          -       4.14          -
                    ---------- ---------- ---------- ---------- ----------
    Efficiency
     ratio (GAAP)        79.02%    101.39%     64.33%    179.35%     81.34%
                    ========== ========== ========== ========== ==========
Average equity to
 assets
 reconciliation
Tangible common
 equity to assets         7.37%      5.36%      5.77%      6.09%      6.21%
Effect of preferred
 equity                   2.16       2.19       2.19       2.15        .35
                    ---------- ---------- ---------- ---------- ----------
    Tangible equity
     to assets            9.53       7.55       7.96       8.24       6.56
Effect of goodwill
 and other
 intangibles              2.41       2.72       2.75       3.32       3.48
                    ---------- ---------- ---------- ---------- ----------
    Equity to
     assets (GAAP)       11.94%     10.27%     10.71%     11.56%     10.04%
                    ========== ========== ========== ========== ==========
Actual tangible
 common equity to
 risk-weighted
 assets
 reconciliation
Tangible common
 equity to
 risk-weighted
 assets                  10.39%     10.67%      7.49%      8.03%      8.34%
Effect of other
 comprehensive
 income                   (.87)      (.90)      (.72)     (1.00)      (.91)
Effect of deferred
 tax limitation          (1.27)      (.58)      (.22)         -          -
Effect of trust
 preferred                 .97        .92        .90        .89        .88
Effect of preferred
 equity                   3.19       3.04       2.99       2.96       2.90
                    ---------- ---------- ---------- ---------- ----------
    Tier I capital
     ratio
     (Regulatory)        12.41%     13.15%     10.44%     10.88%     11.21%
                    ========== ========== ========== ========== ==========
Net charge-offs
 reconciliation
Operating net
 charge-offs        $   84,585 $   90,491 $   58,312 $   43,281 $   74,028
Fraud related
 charge-offs                 -          -          -          -          -
                    ---------- ---------- ---------- ---------- ----------
    Net charge-offs
     (GAAP)         $   84,585 $   90,491 $   58,312 $   43,281 $   74,028
                    ========== ========== ========== ========== ==========
Net charge-offs to
 average loans
 reconciliation
Operating net
 charge-offs to
 average loans            6.37%      6.57%      4.18%      3.09%      5.09%
Effect of fraud
 related charge
 offs                        -          -          -          -          -
                    ---------- ---------- ---------- ---------- ----------
    Net charge-offs
     to average
     loans (GAAP)         6.37%      6.57%      4.18%      3.09%      5.09%
                    ========== ========== ========== ========== ==========
UNITED COMMUNITY BANKS, INC.
Operating Earnings to GAAP Earnings Reconciliation
Selected Financial Information
(in thousands,                          For the Twelve
 except per share                        Months Ended
data; taxable       ------------------------------------------------------
 equivalent)           2009       2008       2007       2006       2005
                    ---------- ---------- ---------- ---------- ----------
Interest revenue
 reconciliation
Interest revenue -
 taxable equivalent $  404,961 $  466,969 $  550,917 $  446,695 $  324,225
Taxable equivalent
 adjustment             (2,132)    (2,261)    (1,881)    (1,868)    (1,636)
                    ---------- ---------- ---------- ---------- ----------
    Interest
     revenue (GAAP) $  402,829 $  464,708 $  549,036 $  444,827 $  322,589
                    ========== ========== ========== ========== ==========
Net interest
 revenue
 reconciliation
Net interest
 revenue - taxable
 equivalent         $  245,227 $  238,704 $  274,483 $  237,880 $  196,799
Taxable equivalent
 adjustment             (2,132)    (2,261)    (1,881)    (1,868)    (1,636)
                    ---------- ---------- ---------- ---------- ----------
    Net interest
     revenue (GAAP) $  243,095 $  236,443 $  272,602 $  236,012 $  195,163
                    ========== ========== ========== ========== ==========
Provision for loan
 losses
 reconciliation
Operating provision
 for loan losses    $  310,000 $  184,000 $   37,600 $   14,600 $   12,100
Special
 fraud-related
 provision for loan
 losses                      -          -     18,000          -          -
                    ---------- ---------- ---------- ---------- ----------
    Provision for
     loan losses
     (GAAP)         $  310,000 $  184,000 $   55,600 $   14,600 $   12,100
                    ========== ========== ========== ========== ==========
Fee revenue
 reconciliation
Operating fee
 revenue            $   58,788 $   53,141 $   62,651 $   49,095 $   46,148
Gain from
 acquisition            11,390          -          -          -          -
                    ---------- ---------- ---------- ---------- ----------
    Fee revenue
     (GAAP)         $   70,178 $   53,141 $   62,651 $   49,095 $   46,148
                    ========== ========== ========== ========== ==========
Total revenue
 reconciliation
Total operating
 revenue            $   (5,985)$  107,845 $  299,534 $  272,375 $  230,847
Taxable equivalent
 adjustment             (2,132)    (2,261)    (1,881)    (1,868)    (1,636)
Gain from
 acquisition            11,390          -          -          -          -
Special
 fraud-related
 provision for loan
 losses                      -          -    (18,000)         -          -
                    ---------- ---------- ---------- ---------- ----------
    Total revenue
     (GAAP)         $    3,273 $  105,584 $  279,653 $  270,507 $  229,211
                    ========== ========== ========== ========== ==========
Expense
 reconciliation
Operating expense   $  224,055 $  206,699 $  190,061 $  162,070 $  140,808
Noncash goodwill
 impairment charge      95,000          -          -          -          -
Severance costs          2,898          -          -          -          -
                    ---------- ---------- ---------- ---------- ----------
    Operating
     expense (GAAP) $  321,953 $  206,699 $  190,061 $  162,070 $  140,808
                    ========== ========== ========== ========== ==========
(Loss) income
 before taxes
 reconciliation
Operating (loss)
 income before
 taxes              $ (230,040)$  (98,854)$  109,473 $  110,305 $   90,039
Taxable equivalent
 adjustment             (2,132)    (2,261)    (1,881)    (1,868)    (1,636)
Gain from
 acquisition            11,390          -          -          -          -
Noncash goodwill
 impairment charge     (95,000)         -          -          -          -
Severance costs         (2,898)         -          -          -          -
Special
 fraud-related
 provision for loan
 losses                      -          -    (18,000)         -          -
                    ---------- ---------- ---------- ---------- ----------
    (Loss) income
     before taxes
     (GAAP)         $ (318,680)$ (101,115)$   89,592 $  108,437 $   88,403
                    ========== ========== ========== ========== ==========
Income tax
 (benefit) expense
 reconciliation
Operating income
 tax (benefit)
 expense            $  (91,448)$  (35,404)$   40,482 $   41,490 $   33,297
Taxable equivalent
 adjustment             (2,132)    (2,261)    (1,881)    (1,868)    (1,636)
Gain from
 acquisition, tax
 expense                 4,328          -          -          -          -
Severance costs,
 tax benefit            (1,101)         -          -          -          -
Special
 fraud-related
 provision for loan
 losses                      -          -     (7,002)         -          -
                    ---------- ---------- ---------- ---------- ----------
    Income tax
     (benefit)
     expense (GAAP) $  (90,353)$  (37,665)$   31,599 $   39,622 $   31,661
                    ========== ========== ========== ========== ==========
(Loss) earnings per
 common share
 reconciliation
Operating (loss)
 earnings per
 common share       $    (2.47)$    (1.35)$     1.48 $     1.66 $     1.43
Gain from
 acquisition               .12          -          -          -          -
Noncash goodwill
 impairment charge       (1.57)         -          -          -          -
Severance costs           (.03)         -          -          -          -
Special
 fraud-related
 provision for loan
 losses                      -          -       (.24)         -          -
                    ---------- ---------- ---------- ---------- ----------
    (Loss) earnings
     per common
     share (GAAP)   $    (3.95)$    (1.35)$     1.24 $     1.66 $     1.43
                    ========== ========== ========== ========== ==========
Book value
 reconciliation
Tangible book value $     6.02 $    10.39 $    10.94 $    10.57 $     8.94
Effect of goodwill
 and other
 intangibles              2.34       6.56       6.79       3.80       2.86
                    ---------- ---------- ---------- ---------- ----------
   Book value
    (GAAP)          $     8.36 $    16.95 $    17.73 $    14.37 $    11.80
                    ========== ========== ========== ========== ==========
Efficiency ratio
 reconciliation
Operating
 efficiency ratio        74.37%     70.49%     56.53%     56.35%     57.77%
Gain from
 acquisition             (2.71)         -          -          -          -
Noncash goodwill
 impairment charge       30.39          -          -          -          -
Severance costs            .93          -          -          -          -
                    ---------- ---------- ---------- ---------- ----------
    Efficiency
     ratio (GAAP)       102.98%     70.49%     56.53%     56.35%     57.77%
                    ========== ========== ========== ========== ==========
Average equity to
 assets
 reconciliation
Tangible common
 equity to assets         6.15%      6.57%      6.63%      6.32%      5.64%
Effect of preferred
 equity                   2.18        .10          -          -          -
                    ---------- ---------- ---------- ---------- ----------
    Tangible equity
     to assets            8.33       6.67       6.63       6.32       5.64
Effect of goodwill
 and other
 intangibles              2.79       3.55       2.98       1.74       1.99
                    ---------- ---------- ---------- ---------- ----------
    Equity to
     assets (GAAP)       11.12%     10.22%      9.61%      8.06%      7.63%
                    ========== ========== ========== ========== ==========
Actual tangible
 common equity to
 risk-weighted
 assets
 reconciliation
Tangible common
 equity to
 risk-weighted
 assets                  10.39%      8.34%      8.21%      8.09%      7.75%
Effect of other
 comprehensive
 income                   (.87)      (.91)      (.23)       .07        .23
Effect of deferred
 tax limitation          (1.27)         -          -          -          -
Effect of trust
 preferred                 .97        .88        .65        .81        .89
Effect of preferred
 equity                   3.19       2.90          -        .01        .01
                    ---------- ---------- ---------- ---------- ----------
    Tier I capital
     ratio
     (Regulatory)        12.41%     11.21%      8.63%      8.98%      8.88%
                    ========== ========== ========== ========== ==========
Net charge-offs
 reconciliation
Operating net
 charge-offs        $  276,669 $  151,152 $   21,834 $    5,524 $    5,701
Fraud related
 charge-offs                 -          -     18,000          -          -
                    ---------- ---------- ---------- ---------- ----------
    Net charge-offs
     (GAAP)         $  276,669 $  151,152 $   39,834 $    5,524 $    5,701
                    ========== ========== ========== ========== ==========
Net charge-offs to
 average loans
 reconciliation
Operating net
 charge-offs to
 average loans            5.03%      2.57%       .38%       .12%       .14%
Effect of fraud
 related charge
 offs                        -          -        .31          -          -
                    ---------- ---------- ---------- ---------- ----------
    Net charge-offs
     to average
     loans (GAAP)         5.03%      2.57%       .69%       .12%       .14%
                    ========== ========== ========== ========== ==========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
                                       2009                         2008
                  ---------------------------------------------- ----------
                    Fourth      Third       Second      First      Fourth
(in millions)     Quarter (1) Quarter (1) Quarter (1)  Quarter    Quarter
                  ----------- ----------- ----------- ---------- ----------
LOANS BY CATEGORY
Commercial (sec.
 by RE)           $     1,779 $     1,787 $     1,797 $    1,779 $    1,627
Commercial
 construction             363         380         379        377        500
Commercial &
 industrial               390         403         399        387        410
                  ----------- ----------- ----------- ---------- ----------
     Total
      commercial        2,532       2,570       2,575      2,543      2,537
Residential
 construction           1,050       1,185       1,315      1,430      1,479
Residential
 mortgage               1,427       1,461       1,470      1,504      1,526
Consumer /
 installment              142         147         153        156        163
                  ----------- ----------- ----------- ---------- ----------
     Total loans  $     5,151 $     5,363 $     5,513 $    5,633 $    5,705
                  =========== =========== =========== ========== ==========
LOANS BY MARKET
Atlanta MSA       $     1,435 $     1,526 $     1,605 $    1,660 $    1,706
Gainesville MSA           390         402         413        422        420
North Georgia           1,884       1,942       1,978      2,014      2,040
Western North
 Carolina                 772         786         794        808        810
Coastal Georgia           405         440         455        460        464
East Tennessee            265         267         268        269        265
                  ----------- ----------- ----------- ---------- ----------
     Total loans  $     5,151 $     5,363 $     5,513 $    5,633 $    5,705
                  =========== =========== =========== ========== ==========
RESIDENTIAL
 CONSTRUCTION
Dirt loans
   Acquisition &
    development   $       332 $       380 $       413 $      445 $      484
   Land loans             127         159         159        155        153
   Lot loans              336         336         369        390        358
                  ----------- ----------- ----------- ---------- ----------
      Total               795         875         941        990        995
                  ----------- ----------- ----------- ---------- ----------
House loans
   Spec                   178         218         268        317        347
   Sold                    77          92         106        123        137
                  ----------- ----------- ----------- ---------- ----------
      Total               255         310         374        440        484
                  ----------- ----------- ----------- ---------- ----------
Total residential
 construction     $     1,050 $     1,185 $     1,315 $    1,430 $    1,479
                  =========== =========== =========== ========== ==========
RESIDENTIAL
 CONSTRUCTION -
 ATLANTA MSA
Dirt loans
   Acquisition &
    development   $        76 $       100 $       124 $      148 $      167
   Land loans              43          61          63         52         56
   Lot loans               52          54          81         98         86
                  ----------- ----------- ----------- ---------- ----------
      Total               171         215         268        298        309
                  ----------- ----------- ----------- ---------- ----------
House loans
   Spec                    68          91         127        164        189
   Sold                    16          22          29         33         40
                  ----------- ----------- ----------- ---------- ----------
      Total                84         113         156        197        229
                  ----------- ----------- ----------- ---------- ----------
Total residential
 construction     $       255 $       328 $       424 $      495 $      538
                  =========== =========== =========== ========== ==========
(1)  Excludes total loans of $85.1 million, $104.0 million and $109.9
million as of December 31, 2009, September 30, 2009 and June 30, 2009,
respectively, that are covered by the loss-sharing agreement with the FDIC,
related to the acquisition of Southern Community Bank.
(2)  Annualized.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
                                                                   Year
                                                      Linked       over
                                                      Quarter      Year
                          2009             2008     Change (2)    Change
                 ----------------------- ---------- ----------   --------
                   Fourth      Third       Fourth
(in millions)    Quarter (1) Quarter (1)  Quarter     Actual       Actual
                 ----------- ----------- ---------- ----------   --------
LOANS BY
 CATEGORY
Commercial (sec.
 by RE)          $     1,779 $     1,787 $    1,627         (2)%        9 %
Commercial
 construction            363         380        500        (18)       (27)
Commercial &
 industrial              390         403        410        (13)        (5)
                 ----------- ----------- ----------
     Total
      commercial       2,532       2,570      2,537         (6)         -
Residential
 construction          1,050       1,185      1,479        (46)       (29)
Residential
 mortgage              1,427       1,461      1,526         (9)        (6)
Consumer /
 installment             142         147        163        (14)       (13)
                 ----------- ----------- ----------
     Total loans $     5,151 $     5,363 $    5,705        (16)       (10)
                 =========== =========== ==========
LOANS BY MARKET
Atlanta MSA      $     1,435 $     1,526 $    1,706        (24)%      (16)%
Gainesville MSA          390         402        420        (12)        (7)
North Georgia          1,884       1,942      2,040        (12)        (8)
Western North
 Carolina                772         786        810         (7)        (5)
Coastal Georgia          405         440        464        (32)       (13)
East Tennessee           265         267        265         (3)         -
                 ----------- ----------- ----------
     Total loans $     5,151 $     5,363 $    5,705        (16)       (10)
                 =========== =========== ==========
RESIDENTIAL
 CONSTRUCTION
Dirt loans
   Acquisition &
    development  $       332 $       380 $      484        (51)%      (31)%
   Land loans            127         159        153        (81)       (17)
   Lot loans             336         336        358          -         (6)
                 ----------- ----------- ----------
      Total              795         875        995        (37)       (20)
                 ----------- ----------- ----------
House loans
   Spec                  178         218        347        (73)%      (49)%
   Sold                   77          92        137        (65)       (44)
                 ----------- ----------- ----------
      Total              255         310        484        (71)       (47)
                 ----------- ----------- ----------
Total
 residential
 construction    $     1,050 $     1,185 $    1,479        (46)       (29)
                 =========== =========== ==========
RESIDENTIAL
 CONSTRUCTION -
 ATLANTA MSA
Dirt loans
   Acquisition &
    development  $        76 $       100 $      167        (96)%      (54)%
   Land loans             43          61         56       (118)       (23)
   Lot loans              52          54         86        (15)       (40)
                 ----------- ----------- ----------
      Total              171         215        309        (82)       (45)
                 ----------- ----------- ----------
House loans
   Spec                   68          91        189       (101)%      (64)%
   Sold                   16          22         40       (109)       (60)
                 ----------- ----------- ----------
      Total               84         113        229       (103)       (63)
                 ----------- ----------- ----------
Total
 residential
 construction    $       255 $       328 $      538        (89)       (53)
                 =========== =========== ==========
(1)  Excludes total loans of $85.1 million, $104.0 million and $109.9
million as of December 31, 2009, September 30, 2009 and June 30, 2009,
respectively, that are covered by the loss-sharing agreement with the FDIC,
related to the acquisition of Southern Community Bank.
(2)  Annualized.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Year-End
(in millions)                              2009        2008        2007
                                        ----------- ----------- -----------
LOANS BY CATEGORY
Commercial (sec. by RE)                 $     1,779 $     1,627 $     1,476
Commercial construction                         363         500         527
Commercial & industrial                         390         410         418
                                        ----------- ----------- -----------
     Total commercial                         2,532       2,537       2,421
Residential construction                      1,050       1,479       1,829
Residential mortgage                          1,427       1,526       1,502
Consumer / installment                          142         163         177
                                        ----------- ----------- -----------
     Total loans                        $     5,151 $     5,705 $     5,929
                                        =========== =========== ===========
LOANS BY MARKET
Atlanta MSA                             $     1,435 $     1,706 $     2,002
Gainesville MSA                                 390         420         399
North Georgia                                 1,884       2,040       2,060
Western North Carolina                          772         810         806
Coastal Georgia                                 405         464         416
East Tennessee                                  265         265         246
                                        ----------- ----------- -----------
  Total loans                           $     5,151 $     5,705 $     5,929
                                        =========== =========== ===========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Year-End
(in millions)                              2006        2005        2004
                                        ----------- ----------- -----------
LOANS BY CATEGORY
Commercial (sec. by RE)                 $     1,230 $     1,055 $       967
Commercial construction                         469         359         249
Commercial & industrial                         296         237         212
                                        ----------- ----------- -----------
     Total commercial                         1,995       1,651       1,428
Residential construction                      1,864       1,380       1,055
Residential mortgage                          1,338       1,206       1,102
Consumer / installment                          180         161         150
                                        ----------- ----------- -----------
     Total loans                        $     5,377 $     4,398 $     3,735
                                        =========== =========== ===========
LOANS BY MARKET
Atlanta MSA                             $     1,651 $     1,207 $     1,061
Gainesville MSA                                 354         249           -
North Georgia                                 2,034       1,790       1,627
Western North Carolina                          773         668         633
Coastal Georgia                                 358         306         274
East Tennessee                                  207         178         140
                                        ----------- ----------- -----------
  Total loans                           $     5,377 $     4,398 $     3,735
                                        =========== =========== ===========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
                                            Fourth Quarter 2009
                                  ----------------------------------------
                                  Non-performing  Foreclosed      Total
(in thousands)                        Loans       Properties       NPAs
                                  --------------  -----------  -----------
NPAs BY CATEGORY
Commercial (sec. by RE)           $       37,040  $    15,842  $    52,882
Commercial construction                   19,976        9,761       29,737
Commercial & industrial                    3,946            -        3,946
                                  --------------  -----------  -----------
     Total commercial                     60,962       25,603       86,565
Residential construction                 142,332       76,519      218,851
Residential mortgage                      58,767       18,648       77,415
Consumer / installment                     2,031            -        2,031
                                  --------------  -----------  -----------
     Total NPAs                   $      264,092  $   120,770  $   384,862
                                  ==============  ===========  ===========
NPAs BY MARKET
Atlanta MSA                       $      106,536  $    41,125  $   147,661
Gainesville MSA                            5,074        2,614        7,688
North Georgia                             87,598       53,072      140,670
Western North Carolina                    29,610        5,096       34,706
Coastal Georgia                           26,871       17,150       44,021
East Tennessee                             8,403        1,713       10,116
                                  --------------  -----------  -----------
     Total NPAs                   $      264,092  $   120,770  $   384,862
                                  ==============  ===========  ===========
NPA ACTIVITY
Beginning Balance                 $      304,381  $   110,610  $   414,991
Loans placed on non-accrual              174,898            -      174,898
Payments received                        (26,935)           -      (26,935)
Loan charge-offs                         (88,427)           -      (88,427)
Foreclosures                             (79,983)      79,983            -
Capitalized costs                              -          981          981
Note / property sales                    (19,842)     (61,228)     (81,070)
Write downs                                    -       (2,209)      (2,209)
Net gains (losses) on sales                    -       (7,367)      (7,367)
                                  --------------  -----------  -----------
     Ending Balance               $      264,092  $   120,770  $   384,862
                                  ==============  ===========  ===========
(1)  Excludes non-performing loans and foreclosed properties  covered by
the loss-sharing  agreement with the FDIC, related  to the acquisition of
Southern  Community Bank.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
                                             Third Quarter 2009
                                   ---------------------------------------
                                   Non-performing   Foreclosed     Total
(in thousands)                         Loans        Properties     NPAs
                                   --------------  ------------  ---------
NPAs BY CATEGORY
Commercial (sec. by RE)            $       38,379  $     12,566  $  50,945
Commercial construction                    38,505         5,543     44,048
Commercial & industrial                     3,794             -      3,794
                                   --------------  ------------  ---------
   Total commercial                        80,678        18,109     98,787
Residential construction                  171,027        79,045    250,072
Residential mortgage                       50,626        13,456     64,082
Consumer / installment                      2,050             -      2,050
                                   --------------  ------------  ---------
   Total NPAs                      $      304,381  $    110,610  $ 414,991
                                   ==============  ============  =========
NPAs BY MARKET
Atlanta MSA                        $      120,599  $     54,670  $ 175,269
Gainesville MSA                            12,916         8,429     21,345
North Georgia                              96,373        36,718    133,091
Western North Carolina                     25,775         5,918     31,693
Coastal Georgia                            38,414         3,045     41,459
East Tennessee                             10,304         1,830     12,134
                                   --------------  ------------  ---------
   Total NPAs                      $      304,381  $    110,610  $ 414,991
                                   ==============  ============  =========
NPA ACTIVITY
Beginning Balance                  $      287,848  $    104,754  $ 392,602
Loans placed on non-accrual               190,164             -    190,164
Payments received                         (16,597)            -    (16,597)
Loan charge-offs                          (92,359)            -    (92,359)
Foreclosures                              (56,624)       56,624          -
Capitalized costs                               -           579        579
Note / property sales                      (8,051)      (47,240)   (55,291)
Write downs                                     -        (1,906)    (1,906)
Net gains (losses) on sales                     -        (2,201)    (2,201)
                                   --------------  ------------  ---------
   Ending Balance                  $      304,381  $    110,610  $ 414,991
                                   ==============  ============  =========
(1)  Excludes non-performing loans and foreclosed properties covered by the
loss-sharing agreement with the FDIC, related to the acquisition of
Southern Community Bank.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
                                             Second Quarter 2009
                                   ---------------------------------------
                                   Non-performing   Foreclosed     Total
(in thousands)                         Loans        Properties     NPAs
                                   --------------  ------------  ---------
NPAs BY CATEGORY
Commercial (sec. by RE)            $       37,755  $      5,395  $  43,150
Commercial construction                    15,717         5,847     21,564
Commercial & industrial                    11,378             -     11,378
                                   --------------  ------------  ---------
   Total commercial                        64,850        11,242     76,092
Residential construction                  176,400        81,648    258,048
Residential mortgage                       44,256        11,864     56,120
Consumer / installment                      2,342             -      2,342
                                   --------------  ------------  ---------
   Total NPAs                      $      287,848  $    104,754  $ 392,602
                                   ==============  ============  =========
NPAs BY MARKET
Atlanta MSA                        $      148,155  $     50,450  $ 198,605
Gainesville MSA                             9,745         3,511     13,256
North Georgia                              72,174        37,454    109,628
Western North Carolina                     21,814         7,245     29,059
Coastal Georgia                            30,311         3,904     34,215
East Tennessee                              5,649         2,190      7,839
                                   --------------  ------------  ---------
   Total NPAs                      $      287,848  $    104,754  $ 392,602
                                   ==============  ============  =========
NPA ACTIVITY
Beginning Balance                  $      259,155  $     75,383  $ 334,538
Loans placed on non-accrual               169,351             -    169,351
Payments received                         (15,597)            -    (15,597)
Loan charge-offs                          (60,644)            -    (60,644)
Foreclosures                              (64,417)       64,417          -
Capitalized costs                               -         1,324      1,324
Note / property sales                           -       (33,752)   (33,752)
Write downs                                     -        (2,738)    (2,738)
Net gains (losses) on sales                     -           120        120
                                   --------------  ------------  ---------
   Ending Balance                  $      287,848  $    104,754  $ 392,602
                                   ==============  ============  =========
(1)  Excludes non-performing loans and foreclosed properties covered by the
loss-sharing agreement with the FDIC, related to the acquisition of
Southern Community Bank.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
                       Fourth Quarter     Third Quarter    Second Quarter
                            2009              2009              2009
                      ----------------- ----------------- -----------------
                                 Net               Net               Net
                               Charge-           Charge-           Charge-
                               Offs to           Offs to           Offs to
                        Net    Average    Net    Average    Net    Average
                      Charge-   Loans   Charge-   Loans   Charge-   Loans
(in thousands)          Offs     (2)      Offs     (2)      Offs     (2)
                      -------- -------  -------- -------  -------- -------
NET CHARGE-OFFS BY
 CATEGORY
Commercial (sec. by
 RE)                  $  3,896     .86% $ 10,568    2.33% $  5,986    1.34%
Commercial
 construction            4,717    5.03     4,369    4.55       756     .80
Commercial &
 industrial                153     .15     1,792    1.76     3,107    3.16
                      --------          --------          --------
   Total commercial      8,766    1.36    16,729    2.57     9,849    1.54
Residential
 construction           67,393   23.87    67,520   21.31    44,240   12.90
Residential mortgage     7,026    1.93     5,051    1.36     3,526     .95
Consumer /
 installment             1,400    3.83     1,191    3.13       697    1.80
                      --------          --------          --------
   Total              $ 84,585    6.37  $ 90,491    6.57  $ 58,312    4.18
                      ========          ========          ========
NET CHARGE-OFFS BY
 MARKET
Atlanta MSA           $ 43,595   12.07% $ 50,129   12.61% $ 37,473    8.89%
Gainesville MSA          2,273    2.49     1,473    1.60     4,125    4.38
North Georgia           18,057    3.57    24,017    4.74    12,571    2.52
Western North
 Carolina               10,091    5.11     3,949    1.98     1,015     .51
Coastal Georgia          8,109    7.72    10,051    8.78       969     .85
East Tennessee           2,460    3.67       872    1.30     2,159    3.21
                      --------          --------          --------
   Total              $ 84,585    6.37  $ 90,491    6.57  $ 58,312    4.18
                      ========          ========          ========
(1)  Excludes non-performing loans and foreclosed properties covered by the
loss-sharing agreement with the FDIC, related to the acquisition of
Southern Community Bank.  (2)  Annualized.
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
                                                       Three Months Ended
                                                          December 31,
                                                      --------------------
(in thousands, except per share data)                   2009       2008
                                                      ---------  ---------
Interest revenue:
 Loans, including fees                                $  78,064  $  86,409
 Investment securities, including tax exempt of $366
  and $324                                               17,313     18,964
 Federal funds sold, commercial paper, deposits in
  banks and other                                         1,503      2,508
                                                      ---------  ---------
   Total interest revenue                                96,880    107,881
                                                      ---------  ---------
Interest expense:
 Deposits:
  NOW                                                     2,315      6,045
  Money market                                            2,328      3,124
  Savings                                                   105        204
  Time                                                   24,026     41,512
                                                      ---------  ---------
   Total deposit interest expense                        28,774     50,885
 Federal funds purchased, repurchase agreements
  and other short-term borrowings                         1,081        445
 Federal Home Loan Bank advances                          1,045      2,358
 Long-term debt                                           2,652      2,873
                                                      ---------  ---------
  Total interest expense                                 33,552     56,561
                                                      ---------  ---------
  Net interest revenue                                   63,328     51,320
 Provision for loan losses                               90,000     85,000
                                                      ---------  ---------
  Net interest revenue after provision for loan
   losses                                               (26,672)   (33,680)
                                                      ---------  ---------
Fee revenue:
 Service charges and fees                                 8,257      7,742
 Mortgage loan and other related fees                     1,651      1,528
 Consulting fees                                          2,774      1,260
 Brokerage fees                                             443        645
 Securities gains, net                                    2,015        838
 Gain from acquisition                                        -          -
 Losses on prepayment of borrowings                           -     (2,714)
 Other                                                    2,081      1,419
                                                      ---------  ---------
  Total fee revenue                                      17,221     10,718
                                                      ---------  ---------
  Total revenue                                          (9,451)   (22,962)
                                                      ---------  ---------
Operating expenses:
 Salaries and employee benefits                          26,189     24,441
 Communications and equipment                             3,932      3,897
 Occupancy                                                4,038      3,663
 Advertising and public relations                         1,033      1,358
 Postage, printing and supplies                           1,315      1,763
 Professional fees                                        2,571      2,313
 Foreclosed property                                     14,391      5,238
 FDIC assessments and other regulatory charges            3,711      1,980
 Amortization of intangibles                                813        745
 Other                                                    4,539      7,041
 Goodwill impairment                                          -          -
 Severance costs                                              -          -
                                                      ---------  ---------
  Total operating expenses                               62,532     52,439
                                                      ---------  ---------
 Loss before income taxes                               (71,983)   (75,401)
 Income tax benefit                                     (32,148)   (28,654)
                                                      ---------  ---------
  Net loss                                              (39,835)   (46,747)
 Preferred stock dividends, including discount
  accretion                                               2,567        712
                                                      ---------  ---------
  Net loss available to common shareholders           $ (42,402) $ (47,459)
                                                      =========  =========
Basic loss per common share                           $    (.45) $    (.99)
Diluted loss per common share                              (.45)      (.99)
Weighted average common shares outstanding - Basic       94,219     47,844
Weighted average common shares outstanding - Diluted     94,219     47,844
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
                                                      Twelve Months Ended
                                                         December 31,
                                                    ----------------------
(in thousands, except per share data)                  2009        2008
                                                    ----------  ----------
Interest revenue:
 Loans, including fees                              $  322,509  $  385,959
 Investment securities, including tax exempt of
  $1,322 and $1,464                                     77,370      75,869
 Federal funds sold, commercial paper, deposits in
  banks and other                                        2,950       2,880
                                                    ----------  ----------
   Total interest revenue                              402,829     464,708
                                                    ----------  ----------
Interest expense:
 Deposits:
  NOW                                                   11,023      28,626
  Money market                                           9,545      10,643
  Savings                                                  483         764
  Time                                                 120,326     158,268
                                                    ----------  ----------
   Total deposit interest expense                      141,377     198,301
 Federal funds purchased, repurchase agreements
  and other short-term borrowings                        2,842       7,699
 Federal Home Loan Bank advances                         4,622      13,026
 Long-term debt                                         10,893       9,239
                                                    ----------  ----------
  Total interest expense                               159,734     228,265
                                                    ----------  ----------
  Net interest revenue                                 243,095     236,443
 Provision for loan losses                             310,000     184,000
                                                    ----------  ----------
  Net interest revenue after provision for loan
   losses                                              (66,905)     52,443
                                                    ----------  ----------
Fee revenue:
 Service charges and fees                               30,986      31,683
 Mortgage loan and other related fees                    8,959       7,103
 Consulting fees                                         7,822       7,046
 Brokerage fees                                          2,085       3,457
 Securities gains, net                                   2,756       1,315
 Gain from acquisition                                  11,390           -
 Losses on prepayment of borrowings                          -      (2,714)
 Other                                                   6,180       5,251
                                                    ----------  ----------
  Total fee revenue                                     70,178      53,141
                                                    ----------  ----------
  Total revenue                                          3,273     105,584
                                                    ----------  ----------
Operating expenses:
 Salaries and employee benefits                        108,967     110,574
 Communications and equipment                           15,038      15,490
 Occupancy                                              15,796      14,988
 Advertising and public relations                        4,220       6,117
 Postage, printing and supplies                          5,068       6,296
 Professional fees                                       9,925       7,509
 Foreclosed property                                    32,365      19,110
 FDIC assessments and other regulatory charges          16,004       6,020
 Amortization of intangibles                             3,104       3,009
 Other                                                  13,568      17,586
 Goodwill impairment                                    95,000           -
 Severance costs                                         2,898           -
                                                    ----------  ----------
  Total operating expenses                             321,953     206,699
                                                    ----------  ----------
 Loss before income taxes                             (318,680)   (101,115)
 Income tax benefit                                    (90,353)    (37,665)
                                                    ----------  ----------
  Net loss                                            (228,327)    (63,450)
 Preferred stock dividends, including discount
  accretion                                             10,242         724
                                                    ----------  ----------
  Net loss available to common shareholders         $ (238,569) $  (64,174)
                                                    ==========  ==========
Basic loss per common share                         $    (3.95) $    (1.35)
Diluted loss per common share                            (3.95)      (1.35)
Weighted average common shares outstanding -
 Basic                                                  60,374      47,369
Weighted average common shares outstanding -
 Diluted                                                60,374      47,369
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
                                                  December 31, December 31,
 (in thousands, except share and per share data)      2009        2008
                                                  ------------ -----------
                                                  (unaudited)   (audited)
ASSETS
  Cash and due from banks                        $    126,265 $   116,395
  Interest-bearing deposits in banks                  120,382       8,417
  Federal funds sold, commercial paper and
   short-term investments                             129,720     368,609
                                                 ------------ -----------
      Cash and cash equivalents                       376,367     493,421
  Securities available for sale                     1,530,047   1,617,187
  Mortgage loans held for sale                         30,226      20,334
  Loans, net of unearned income                     5,151,476   5,704,861
       Less allowance for loan losses                 155,602     122,271
                                                 ------------ -----------
              Loans, net                            4,995,874   5,582,590
  Acquired assets covered by loss sharing
   agreements with the FDIC                           185,938           -
  Premises and equipment, net                         182,038     179,160
  Accrued interest receivable                          33,867      46,088
  Goodwill and other intangible assets                225,196     321,798
  Other assets                                        440,361     331,355
                                                 ------------ -----------
      Total assets                               $  7,999,914 $ 8,591,933
                                                 ============ ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
  Deposits:
       Demand                                    $    707,826 $   654,036
       NOW                                          1,335,790   1,543,385
       Money market                                   713,901     466,750
       Savings                                        177,427     170,275
       Time:
            Less than $100,000                      1,746,511   1,953,235
            Greater than $100,000                   1,187,499   1,422,974
            Brokered                                  758,880     792,969
                                                 ------------ -----------
                     Total deposits                 6,627,834   7,003,624
   Federal funds purchased, repurchase
    agreements, and other short-term borrowings       101,389     108,411
   Federal Home Loan Bank advances                    114,501     235,321
   Long-term debt                                     150,066     150,986
   Accrued expenses and other liabilities              43,803     104,209
                                                 ------------ -----------
        Total liabilities                           7,037,593   7,602,551
                                                 ------------ -----------
Shareholders' equity:
    Preferred stock, $1 par value; 10,000,000
     shares authorized;
       Series A; $10 stated value; 21,700 and
        25,800 shares issued and outstanding              217         258
       Series B; $1,000 stated value; 180,000
        shares issued and outstanding                 174,408     173,180
    Common stock, $1 par value; 100,000,000
     shares authorized; 94,045,603 and
     48,809,301 shares issued                          94,046      48,809
    Common stock issuable; 221,906 and 129,304
     shares                                             3,597       2,908
    Capital surplus                                   622,034     460,708
    Retained earnings                                  20,384     265,405
    Treasury stock; 799,892 shares, at cost                 -     (16,465)
    Accumulated other comprehensive income             47,635      54,579
                                                 ------------ -----------
        Total shareholders' equity                    962,321     989,382
                                                 ------------ -----------
        Total liabilities and shareholders'
         equity                                  $  7,999,914 $ 8,591,933
                                                 ============ ===========
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 31,
                                                      2009
                                     -----------  ------------ -----------
(dollars in thousands, taxable         Average                     Avg.
 equivalent)                           Balance      Interest       Rate
                                     -----------  ------------ -----------
Assets:
Interest-earning assets:
  Loans, net of unearned income
   (1)(2)                            $ 5,357,150  $     78,088        5.78%
  Taxable securities (3)               1,496,251        16,947        4.53
  Tax-exempt securities (1)(3)            32,554           599        7.36
  Federal funds sold and other
   interest-earning assets               600,835         1,847        1.23
                                     -----------  ------------
     Total interest-earning assets     7,486,790        97,481        5.17
                                     -----------  ------------
Non-interest-earning assets:
  Allowance for loan losses             (162,203)
  Cash and due from banks                107,153
  Premises and equipment                 182,790
  Other assets (3)                       672,014
                                     -----------
     Total assets                    $ 8,286,544
                                     ===========
Liabilities and Shareholders'
 Equity:
Interest-bearing liabilities:
  Interest-bearing deposits:
    NOW                              $ 1,334,578  $      2,315         .69
    Money market                         726,680         2,328        1.27
    Savings                              178,191           105         .23
    Time less than $100,000            1,812,823        10,952        2.40
    Time greater than $100,000         1,215,579         8,074        2.64
    Brokered                             844,462         5,000        2.35
                                     -----------  ------------
       Total interest-bearing
        deposits                       6,112,313        28,774        1.87
                                     -----------  ------------
    Federal funds purchased and other
     borrowings                          105,130         1,081        4.08
    Federal Home Loan Bank advances      156,979         1,045        2.64
    Long-term debt                       150,060         2,652        7.01
                                     -----------  ------------
      Total borrowed funds               412,169         4,778        4.60
                                     -----------  ------------
      Total interest-bearing
       liabilities                     6,524,482        33,552        2.04
                                                  ------------
Non-interest-bearing liabilities:
  Non-interest-bearing deposits          722,739
  Other liabilities                       50,044
                                     -----------
     Total liabilities                 7,297,265
Shareholders' equity                     989,279
                                     -----------
     Total liabilities and
      shareholders' equity           $ 8,286,544
                                     ===========
Net interest revenue                              $     63,929
                                                  ============
Net interest-rate spread                                              3.13%
                                                               ===========
Net interest margin (4)                                               3.40%
                                                               ===========
(1)  Interest revenue on tax-exempt securities and loans has been increased
     to reflect comparable interest on taxable securities and loans.  The
     rate used was 39%, reflecting the statutory federal income tax rate
     and the federal tax adjusted state income tax rate.
(2)  Included in the average balance of loans outstanding are loans where
     the accrual of interest has been discontinued.
(3)  Securities available for sale are shown at amortized cost.  Pretax
     unrealized gains of $22.1 million in 2009 and pretax unrealized losses
     of $3.6 million in 2008 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,
                                                      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)                       638,167
                                     -----------
     Total assets                    $ 8,487,017
                                     ===========
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                      111,514
                                     -----------
     Total liabilities                 7,635,061
Shareholders' equity                     851,956
                                     -----------
     Total liabilities and
      shareholders' equity           $ 8,487,017
                                     ===========
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 gains of $22.1 million in 2009 and pretax unrealized losses
     of $3.6 million in 2008 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,
                                                      2009
                                     -----------  ------------ -----------
(dollars in thousands, taxable         Average                     Avg.
 equivalent)                           Balance      Interest       Rate
                                     -----------  ------------ -----------
Assets:
Interest-earning assets:
  Loans, net of unearned
   income (1)(2)                     $ 5,547,915  $    322,284        5.81%
  Taxable securities (3)               1,626,032        76,048        4.68
  Tax-exempt securities (1)(3)            30,460         2,164        7.10
  Federal funds sold and other
   interest-earning assets               260,232         4,465        1.72
                                     -----------  ------------
     Total interest-earning assets     7,464,639       404,961        5.43
                                     -----------  ------------
Non-interest-earning assets:
  Allowance for loan losses             (146,535)
  Cash and due from banks                105,127
  Premises and equipment                 180,381
  Other assets (3)                       665,775
                                     -----------
     Total assets                    $ 8,269,387
                                     ===========
Liabilities and Shareholders'
 Equity:
Interest-bearing liabilities:
  Interest-bearing deposits:
    NOW                              $ 1,297,139  $     11,023         .85
    Money market                         589,389         9,545        1.62
    Savings                              177,410           483         .27
    Time less than $100,000            1,891,774        56,811        3.00
    Time greater than $100,000         1,306,302        42,518        3.25
    Brokered                             756,122        20,997        2.78
                                     -----------  ------------
       Total interest-bearing
        deposits                       6,018,136       141,377        2.35
                                     -----------  ------------
    Federal funds purchased and other
     borrowings                          177,589         2,842        1.60
    Federal Home Loan Bank advances      220,468         4,622        2.10
    Long-term debt                       150,604        10,893        7.23
                                     -----------  ------------
      Total borrowed funds               548,661        18,357        3.35
                                     -----------  ------------
      Total interest-bearing
       liabilities                     6,566,797       159,734        2.43
                                                  ------------
Non-interest-bearing liabilities:
  Non-interest-bearing deposits          694,469
  Other liabilities                       88,490
                                     -----------
     Total liabilities                 7,349,756
Shareholders' equity                     919,631
                                     -----------
     Total liabilities and
      shareholders' equity           $ 8,269,387
                                     ===========
Net interest revenue                              $    245,227
                                                  ============
Net interest-rate spread                                              3.00%
                                                               ===========
Net interest margin (4)                                               3.29%
                                                               ===========
(1)  Interest revenue on tax-exempt securities and loans has been increased
     to reflect comparable interest on taxable securities and loans.  The
     rate used was 39%, reflecting the statutory federal income tax rate
     and the federal tax adjusted state income tax rate.
(2)  Included in the average balance of loans outstanding are loans where
     the accrual of interest has been discontinued.
(3)  Securities available for sale are shown at amortized cost.  Pretax
     unrealized gains of $15.3 million in 2009 and $3.3 million in 2008 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)                       599,765
                                     -----------
     Total assets                    $ 8,319,201
                                     ===========
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                       88,637
                                     -----------
     Total liabilities                 7,468,775
Shareholders' equity                     850,426
                                     -----------
     Total liabilities and
      shareholders' equity           $ 8,319,201
                                     ===========
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 $15.3 million in 2009 and $3.3 million in 2008 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.

http://www2.marketwire.com/mw/emailprcntct?id=69975BE691705BA3

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