United Community Banks, Inc.
Oct 28, 2010

United Community Banks, Inc. Reports Net Operating Loss of $25.8 Million for Third Quarter 2010

BLAIRSVILLE, GA, Oct 28, 2010 (MARKETWIRE via COMTEX News Network) -- United Community Banks, Inc. (NASDAQ: UCBI)

--  Net operating loss at lowest level since second quarter 2009
--  Net charge offs and nonperforming assets continue downward trend -- to
    lowest level since first quarter of 2009
--  Provision for loan losses of $50.5 million is the lowest level since
    the second quarter of 2008
--  Allowance-to-loans ratio increases to 3.67 percent
--  Core transaction deposits this quarter up 11 percent on annualized
    basis

United Community Banks, Inc. (NASDAQ: UCBI) today reported a net operating loss from continuing operations of $25.8 million, or 30 cents per diluted share, for the third quarter of 2010. The third quarter operating loss excludes a non-cash charge for goodwill impairment of $210.6 million, or $2.22 per diluted share. Including the goodwill impairment charge, the third quarter net loss was $236.4 million, or $2.52 per diluted share.

United's net operating loss from continuing operations for the first nine months of 2010 and 2009 was $119.8 million and $99.0 million, or $1.35 and $2.18 per diluted share, respectively. In the attached schedules, operating loss from continuing operations for all periods excludes consulting fee revenue and operating expenses of Brintech, Inc. during the periods it was owned by United, and the gain from the sale of the company in the first quarter of 2010. The net income or loss from Brintech's discontinued operations is reported as a separate line in the consolidated statement of income.

The net operating loss from continuing operations for the first nine months of 2010 excludes the $210.6 million non-cash charge for goodwill impairment. Including the goodwill impairment charge, United's net loss for the first nine months of 2010 was $329.2 million, or $3.56 per diluted share.

The net operating loss from continuing operations for the first nine months of 2009 excludes $95 million in non-cash charges for impairment of goodwill and $1.8 million in severance costs, net of taxes, relating to a reduction in work force. Also excluded is the $7.1 million gain, net of taxes, on the acquisition of Southern Community Bank in the second quarter 2009. These charges and gains were considered non-operating items and therefore were excluded from operating earnings. Including these non-operating items, United's net loss for the first nine months of 2009 was $188.5 million, or $4.01 per diluted share.

"We are seeing several positive trends emerging in our credit quality indicators," stated Jimmy Tallent, president and chief executive officer. "Our nonperforming assets, net charge-offs and provision for loan losses continue to decline, appearing to confirm that the worst is behind us. While credit challenges remain, we are optimistic about the opportunities that lie ahead within our geographic footprint."

Tallent further commented, "With the United stock price falling in the third quarter and remaining at a substantial discount to tangible book value for an extended period, the Company could no longer support the $210.6 million balance of goodwill on its books. While reporting a charge of this magnitude is discouraging, I want to emphasize that goodwill impairment is a non-cash charge that has no impact on our regulatory capital ratios or our ability to return to profitability."

Total loans were $4.8 billion at quarter-end, down $113 million from the end of the second quarter and down $603 million from a year ago. As of quarter-end, residential construction loans were $764 million, or 16 percent of total loans, down $56 million from the prior quarter-end and down $421 million from a year ago. This decline was net of new lending during the quarter that totaled $85 million, primarily commercial and small business loans in metropolitan Atlanta and north Georgia.

Taxable equivalent net interest revenue of $60 million was $3 million lower than the third quarter of 2009 due to the lower level of interest-earning assets. Average loans and securities declined $669 million and $204 million, respectively, from the third quarter of 2009. The net interest margin was 3.57 percent for the third quarter of 2010, up 18 basis points from a year ago but down three basis points from the second quarter. "By staying focused on deposit and loan pricing, we've been able to hold net interest revenue above $60 million despite continuing attrition in the loan portfolio," Tallent said.

"We grew core transaction deposits for the seventh consecutive quarter with an increase of $67 million over the second quarter, or 11 percent on an annualized basis," Tallent stated. "That compares to core deposit growth of $94 million during the second quarter of 2010 and $219 million from a year ago. There are outstanding opportunities to gain new deposit business due to disruption in the banking industry, particularly within our markets, and our strong service culture. The exceptional growth in our core transaction deposits and our loyal customer base are a testament to the underlying value of our franchise, which I believe is not reflected in our current stock price."

The third quarter 2010 provision for loan losses decreased to $50.5 million from $61.5 million in the second quarter and $95 million a year ago. Net charge-offs were at their lowest level since the first quarter of 2009, down $11.3 million from second quarter of 2010 and down $40.5 million from the third quarter of 2009. Non-performing assets decreased to $348 million at quarter-end from $415 million at September 30, 2009, the lowest level since the first quarter of 2009. The level of nonperforming assets has declined by $69 million from its peak in the first quarter of 2010.

Operating fee revenue was $12.9 million in the third quarter of 2010, compared to $13.4 million a year ago. The decrease was caused by net gains related to balance sheet management activities that resulted from the sale of securities in both periods and losses from the prepayment of Federal Home Loan Bank advances in the third quarter of 2010. Excluding the net effect of the balance sheet management activities, operating fee revenue increased $363,000 from the third quarter of 2009. Service charges and fees of $7.6 million were down $490,000, due primarily to lower overdraft fees resulting from recent regulatory changes that require customers to give consent before using United's overdraft services. Mortgage loan fees of $2.1 million were up $239,000 from a year ago as refinancing activity increased with lower long-term rates. Other fee revenue increased $339,000 to $2.2 million, due primarily to the acceleration of deferred gains relating to the ineffectiveness of terminated cash flow hedges on certain prime-based loans.

Third quarter operating expenses were $64.9 million, excluding non-cash goodwill impairment charges, an increase of $13.5 million from a year ago. Foreclosed property costs of $19.8 million increased $11.8 million from the third quarter of 2009 and accounted for most of the year-over-year increase in total operating expenses. The third quarter 2010 foreclosed property costs included $5.6 million for maintenance, property taxes and other related costs, compared to $3.8 million last year. In addition, losses relating to the sale of properties totaled $7.1 million and write-downs of other foreclosed properties also totaled $7.1 million, both to help expedite sales of foreclosed properties. Salary and benefit costs totaled $24.9 million, an increase of $1.0 million from last year due primarily to decreased capitalization of direct loan origination costs and higher group medical insurance costs. Other operating expenses increased $759,000 to $4.6 million from a year ago due to an increase in collections expenses and loan workout costs.

"We continued to focus on reducing expenses; most of our controllable costs were either flat or down compared to a year ago," commented Tallent. "The rise in foreclosed property costs and collection expenses resulted from the increase in the number of properties we are managing, as well as the decline in values of properties sold and held for disposition."

Excluding the goodwill impairment charge, the effective tax rate for the third quarter of 2010 was 40 percent, which was consistent with the prior quarter. The effective tax rate for the remainder of 2010 is expected to be 40 percent, slightly higher than the effective tax rate for the full year 2009.

As of September 30, 2010, the capital ratios for United were as follows: Tier 1 Risk Based Capital of 10.4 percent; Leverage of 7.3 percent; and, Total Risk Based Capital of 13.0 percent. The quarterly average tangible equity-to-assets ratio was 9.2 percent and the tangible common equity-to-assets ratio was 6.8 percent.

"While the Company is above the regulatory well-capitalized levels, we continue to evaluate and analyze various capital alternatives to further strengthen our capital position which we believe is prudent in light of the current operating and regulatory environment," stated Tallent.

"There are many positive trends that are encouraging," Tallent said. "Our credit metrics are moving in the right direction with several of them approaching the lowest level since the beginning of the credit cycle in 2008. Also, core customer deposit growth has been the strongest in our company's history. Aside from special items like the non-cash impairment charge this quarter and the loss on sale of nonperforming assets to a private equity firm last quarter, our net operating loss from continuing operations has declined each quarter for the past four consecutive quarters. Residential construction loans, where most of the problems have been, have decreased from a high of 35 percent to 16 percent of total loans. We have widened our net interest margin by growing core deposits and obtaining more favorable loan and time deposit pricing. All the while, our customer satisfaction scores lead the industry, which is a remarkable tribute to 1,821 United bankers serving customers throughout our communities."

Conference Call

United Community Banks will hold a conference call today, Thursday, October 28, 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 (877) 380-5665 and use the password '16060267.' The conference call also will be webcast and can be accessed by selecting 'Calendar of Events' within the Investor Relations section of the company's website at www.ucbi.com.

About United Community Banks, Inc.

Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. United Community Banks has assets of $7.0 billion and operates 27 community banks with 106 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina and east Tennessee. The Company specializes in providing personalized community banking services to individuals and small to mid-size businesses. United Community Banks also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United Community Banks common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at the Company's web site at www.ucbi.com.

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                   2010                          2009
 share data;    ---------------------------------   ---------------------
 taxable          Third       Second      First       Fourth      Third
 equivalent)     Quarter     Quarter     Quarter     Quarter     Quarter
                ---------   ---------   ---------   ---------   ---------
INCOME SUMMARY
Interest
 revenue        $  84,360   $  87,699   $  89,849   $  97,481   $ 101,181
Interest
 expense           24,346      26,072      28,570      33,552      38,177
                ---------   ---------   ---------   ---------   ---------
  Net interest
   revenue         60,014      61,627      61,279      63,929      63,004
Provision for
 loan losses       50,500      61,500      75,000      90,000      95,000
Operating fee
 revenue (1)       12,861      11,579      11,666      14,447      13,389
                ---------   ---------   ---------   ---------   ---------
  Total
   operating
   revenue (1)     22,375      11,706      (2,055)    (11,624)    (18,607)
Operating
 expenses (2)      64,906      58,308      54,820      60,126      51,426
Loss on sale of
 nonperforming
 assets                 -      45,349           -           -           -
                ---------   ---------   ---------   ---------   ---------
  Operating loss
   from
   continuing
   operations
   before taxes   (42,531)    (91,951)    (56,875)    (71,750)    (70,033)
Operating
 income tax
 benefit          (16,706)    (32,419)    (22,417)    (31,687)    (26,252)
                ---------   ---------   ---------   ---------   ---------
  Net operating
   loss from
   continuing
   operations
   (1)(2)         (25,825)    (59,532)    (34,458)    (40,063)    (43,781)
Gain from
 acquisition,
 net of tax
 expense                -           -           -           -           -
Noncash
 goodwill
 impairment
 charges         (210,590)          -           -           -     (25,000)
Severance
 costs, net of
 tax benefit            -           -           -           -           -
(Loss) income
 from
 discontinued
 operations             -           -        (101)        228          63
Gain from sale
 of subsidiary,
 net of income
 taxes and
 selling costs          -           -       1,266           -           -
                ---------   ---------   ---------   ---------   ---------
  Net loss       (236,415)    (59,532)    (33,293)    (39,835)    (68,718)
Preferred
 dividends and
 discount
 accretion          2,581       2,577       2,572       2,567       2,562
                ---------   ---------   ---------   ---------   ---------
Net loss
 available to
 common
 shareholders   $(238,996)  $ (62,109)  $ (35,865)  $ (42,402)  $ (71,280)
                =========   =========   =========   =========   =========
PERFORMANCE
 MEASURES
  Per common
   share:
    Diluted
     operating
     loss from
     continuing
     operations
     (1)(2)     $    (.30)  $    (.66)  $    (.39)  $    (.45)  $    (.93)
    Diluted
     loss from
     continuing
     operations     (2.52)       (.66)       (.39)       (.45)      (1.43)
    Diluted
     loss           (2.52)       (.66)       (.38)       (.45)      (1.43)
    Stock
     dividends
     declared
     (6)                -           -           -           -   1 for 130
    Book value       5.14        7.71        7.95        8.36        8.85
    Tangible
     book value
     (4)             5.05        5.39        5.62        6.02        6.50
  Key
   performance
   ratios:
    Return on
     equity
     (3)(5)       (148.04)%    (35.89)%    (20.10)%    (22.08)%    (45.52)%
    Return on
     assets (5)    (12.47)      (3.10)      (1.70)      (1.91)      (3.32)
    Net
     interest
     margin (5)      3.57        3.60        3.49        3.40        3.39
    Operating
     efficiency
     ratio from
     continuing
     operations
     (1)(2)         89.38      141.60       75.22       78.74       68.35
    Equity to
     assets         11.37       11.84       11.90       11.94       10.27
    Tangible
     equity to
     assets (4)      9.19        9.26        9.39        9.53        7.55
    Tangible
     common
     equity to
     assets (4)      6.78        6.91        7.13        7.37        5.36
    Tangible
     common
     equity to
     risk-
     weighted
     assets (4)      9.60        9.97       10.03       10.39       10.67
ASSET QUALITY *
  Non-
   performing
   loans        $ 217,766   $ 224,335   $ 280,802   $ 264,092   $ 304,381
  Foreclosed
   properties     129,964     123,910     136,275     120,770     110,610
                ---------   ---------   ---------   ---------   ---------
    Total
     non-
     performing
     assets
     (NPAs)       347,730     348,245     417,077     384,862     414,991
  Allowance for
   loan losses    174,613     174,111     173,934     155,602     150,187
  Net
   charge-offs     49,998      61,323      56,668      84,585      90,491
  Allowance for
   loan losses
   to loans          3.67 %      3.57 %      3.48 %      3.02 %      2.80 %
  Net
   charge-offs
   to average
   loans (5)         4.12        4.98        4.51        6.37        6.57
  NPAs to loans
   and
   foreclosed
   properties        7.11        6.97        8.13        7.30        7.58
  NPAs to total
   assets            4.96        4.55        5.32        4.81        4.91
AVERAGE
 BALANCES ($ in
 millions)
  Loans         $   4,896   $   5,011   $   5,173   $   5,357   $   5,565
  Investment
   securities       1,411       1,532       1,518       1,529       1,615
  Earning
   assets           6,676       6,854       7,085       7,487       7,401
  Total assets      7,522       7,704       7,946       8,287       8,208
  Deposits          6,257       6,375       6,570       6,835       6,690
  Shareholders'
   equity             855         912         945         989         843
  Common shares
   - basic
   (thousands)     94,679      94,524      94,390      94,219      49,771
  Common shares
   - diluted
   (thousands)     94,679      94,524      94,390      94,219      49,771
AT PERIOD END
 ($ in
 millions)
  Loans *       $   4,760   $   4,873   $   4,992   $   5,151   $   5,363
  Investment
   securities       1,310       1,488       1,527       1,530       1,533
  Total assets      7,013       7,652       7,837       8,000       8,444
  Deposits          5,999       6,330       6,488       6,628       6,821
  Shareholders'
   equity             662         904         926         962       1,007
  Common shares
   outstanding
   (thousands)     94,433      94,281      94,176      94,046      93,901
(1) Excludes the gain from acquisition of $11.4 million, (income tax
expense of $4.3 million) in the second quarter of 2009 and revenue
generated by discontinued operations in all periods presented.
(2) Excludes goodwill impairment charges of $211 million in the third
quarter of 2010 and  $25 million and $70 million in the third and first
quarters of 2009, respectively, severance costs of $2.9 million, (income
tax benefit of $1.1 million) in the first quarter of 2009 and expenses
relating to discontinued operations for all periods presented. (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.
* Excludes loans and foreclosed properties covered by loss sharing
agreements with the FDIC.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
                                           2010        2009       Third
                                        ---------   ---------    Quarter
(in thousands, except per share           Third       Third     2010-2009
data; taxable equivalent)                 Quarter     Quarter     Change
                                        ---------   ---------   ---------
INCOME SUMMARY
Interest revenue                        $  84,360   $ 101,181
Interest expense                           24,346      38,177
                                        ---------   ---------
  Net interest revenue                     60,014      63,004          (5)%
Provision for loan losses                  50,500      95,000
Operating fee revenue (1)                  12,861      13,389          (4)
                                        ---------   ---------
  Total operating revenue (1)              22,375     (18,607)
Operating expenses (2)                     64,906      51,426          26
Loss on sale of nonperforming assets            -           -
                                        ---------   ---------
  Operating loss from continuing
   operations before taxes                (42,531)    (70,033)         39
Operating income tax benefit              (16,706)    (26,252)
                                        ---------   ---------
  Net operating loss from continuing
   operations (1)(2)                      (25,825)    (43,781)         41
Gain from acquisition, net of tax
 expense                                        -           -
Noncash goodwill impairment charges      (210,590)    (25,000)
Severance costs, net of tax benefit             -           -
(Loss) income from discontinued
 operations                                     -          63
Gain from sale of subsidiary, net of
 income taxes and selling costs                 -           -
                                        ---------   ---------
  Net loss                               (236,415)    (68,718)       (244)
Preferred dividends and discount
 accretion                                  2,581       2,562
                                        ---------   ---------
Net loss available to common
 shareholders                           $(238,996)  $ (71,280)
                                        =========   =========
PERFORMANCE MEASURES
  Per common share:
    Diluted operating loss from
     continuing operations (1)(2)       $    (.30)  $    (.93)         68
    Diluted loss from continuing
     operations                             (2.52)      (1.43)        (76)
    Diluted loss                            (2.52)      (1.43)        (76)
    Stock dividends declared (6)                -   1 for 130
    Book value                               5.14        8.85         (42)
    Tangible book value (4)                  5.05        6.50         (22)
  Key performance ratios:
    Return on equity (3)(5)               (148.04)%    (45.52)%
    Return on assets (5)                   (12.47)      (3.32)
    Net interest margin (5)                  3.57        3.39
    Operating efficiency ratio from
     continuing operations (1)(2)           89.38       68.35
    Equity to assets                        11.37       10.27
    Tangible equity to assets (4)            9.19        7.55
    Tangible common equity to assets
     (4)                                     6.78        5.36
    Tangible common equity to
     risk-weighted assets (4)                9.60       10.67
ASSET QUALITY *
  Non-performing loans                  $ 217,766   $ 304,381
  Foreclosed properties                   129,964     110,610
                                        ---------   ---------
    Total non-performing assets (NPAs)    347,730     414,991
  Allowance for loan losses               174,613     150,187
  Net charge-offs                          49,998      90,491
  Allowance for loan losses to loans         3.67 %      2.80 %
  Net charge-offs to average loans (5)       4.12        6.57
  NPAs to loans and foreclosed
   properties                                7.11        7.58
  NPAs to total assets                       4.96        4.91
AVERAGE BALANCES ($ in millions)
  Loans                                 $   4,896   $   5,565         (12)
  Investment securities                     1,411       1,615         (13)
  Earning assets                            6,676       7,401         (10)
  Total assets                              7,522       8,208          (8)
  Deposits                                  6,257       6,690          (6)
  Shareholders' equity                        855         843           1
  Common shares - basic (thousands)        94,679      49,771
  Common shares - diluted (thousands)      94,679      49,771
AT PERIOD END ($ in millions)
  Loans *                               $   4,760   $   5,363         (11)
  Investment securities                     1,310       1,533         (15)
  Total assets                              7,013       8,444         (17)
  Deposits                                  5,999       6,821         (12)
  Shareholders' equity                        662       1,007         (34)
  Common shares outstanding (thousands)    94,433      93,901
(1) Excludes the gain from acquisition of $11.4 million, (income tax
expense of $4.3 million) in the second quarter of 2009 and revenue
generated by discontinued operations in all periods presented.
(2) Excludes goodwill impairment charges of $211 million in the third
quarter of 2010 and  $25 million and $70 million in the third and first
quarters of 2009, respectively, severance costs of $2.9 million, (income
tax benefit of $1.1 million) in the first quarter of 2009 and expenses
relating to discontinued operations for all periods presented.
(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.
* Excludes loans and foreclosed properties covered by loss sharing
agreements with the FDIC.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
                                             For the Nine
                                             Months Ended          YTD
(in thousands, except per share         ---------------------   2010-2009
 data; taxable equivalent)                 2010        2009       Change
                                        ---------   ---------   ----------
INCOME SUMMARY
Interest revenue                        $ 261,908   $ 307,480
Interest expense                           78,988     126,182
                                        ---------   ---------
  Net interest revenue                    182,920     181,298            1%
Provision for loan losses                 187,000     220,000
Operating fee revenue (1)                  36,106      36,517           (1)
                                        ---------   ---------
  Total operating revenue (1)              32,026      (2,185)
Operating expenses (2)                    178,034     156,924           13
Loss on sale of nonperforming assets       45,349           -
                                        ---------   ---------
  Operating loss from continuing
   operations before taxes               (191,357)   (159,109)         (20)
Operating income tax benefit              (71,542)    (60,067)
                                        ---------   ---------
  Net operating loss from continuing
   operations (1)(2)                     (119,815)    (99,042)         (21)
Gain from acquisition, net of tax
 expense                                        -       7,062
Noncash goodwill impairment charges      (210,590)    (95,000)
Severance costs, net of tax benefit             -      (1,797)
(Loss) income from discontinued
 operations                                  (101)        285
Gain from sale of subsidiary, net of
 income taxes and selling costs             1,266           -
                                        ---------   ---------
  Net loss                               (329,240)   (188,492)         (75)
Preferred dividends and discount
 accretion                                  7,730       7,675
                                        ---------   ---------
Net loss available to common
 shareholders                           $(336,970)  $(196,167)
                                        =========   =========
PERFORMANCE MEASURES
  Per common share:
    Diluted operating loss from
     continuing operations (1)(2)       $   (1.35)  $   (2.18)          38
    Diluted loss from continuing
     operations                             (3.58)      (4.01)          11
    Diluted loss                            (3.56)      (4.01)          11
    Stock dividends declared (6)                -   3 for 130
    Book value                               5.14        8.85          (42)
    Tangible book value (4)                  5.05        6.50          (22)
  Key performance ratios:
    Return on equity (3)(5)                (65.69)%    (39.11)%
    Return on assets (5)                    (5.70)      (3.05)
    Net interest margin (5)                  3.56        3.25
    Operating efficiency ratio from
     continuing operations (1)(2)          102.14       72.29
    Equity to assets                        11.70       10.84
    Tangible equity to assets (4)            9.28        7.92
    Tangible common equity to assets
     (4)                                     6.94        5.74
    Tangible common equity to
     risk-weighted assets (4)                9.60       10.67
ASSET QUALITY *
  Non-performing loans                  $ 217,766   $ 304,381
  Foreclosed properties                   129,964     110,610
                                        ---------   ---------
    Total non-performing assets (NPAs)    347,730     414,991
  Allowance for loan losses               174,613     150,187
  Net charge-offs                         167,989     192,084
  Allowance for loan losses to loans         3.67 %      2.80 %
  Net charge-offs to average loans (5)       4.54        4.60
  NPAs to loans and foreclosed
   properties                                7.11        7.58
  NPAs to total assets                       4.96        4.91
AVERAGE BALANCES ($ in millions)
  Loans                                 $   5,026   $   5,612          (10)
  Investment securities                     1,487       1,700          (13)
  Earning assets                            6,870       7,457           (8)
  Total assets                              7,723       8,264           (7)
  Deposits                                  6,399       6,671           (4)
  Shareholders' equity                        904         896            1
  Common shares - basic (thousands)        94,527      48,968
  Common shares - diluted (thousands)      94,527      48,968
AT PERIOD END ($ in millions)
  Loans *                               $   4,760   $   5,363          (11)
  Investment securities                     1,310       1,533          (15)
  Total assets                              7,013       8,444          (17)
  Deposits                                  5,999       6,821          (12)
  Shareholders' equity                        662       1,007          (34)
  Common shares outstanding (thousands)    94,433      93,901
(1) Excludes the gain from acquisition of $11.4 million, (income tax
expense of $4.3 million) in the second quarter of 2009 and revenue
generated by discontinued operations in all periods presented.
(2) Excludes goodwill impairment charges of $211 million in the third
quarter of 2010 and  $25 million and $70 million in the third and first
quarters of 2009, respectively, severance costs of $2.9 million, (income
tax benefit of $1.1 million) in the first quarter of 2009 and expenses
relating to discontinued operations for all periods presented.
(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.
* 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,                     2010                       2009
 except per share    -------------------------------  --------------------
data; taxable          Third      Second     First      Fourth     Third
 equivalent)          Quarter    Quarter    Quarter    Quarter    Quarter
                     ---------  ---------  ---------  ---------  ---------
Interest revenue
 reconciliation
Interest revenue -
 taxable equivalent  $  84,360  $  87,699  $  89,849  $  97,481  $ 101,181
Taxable equivalent
 adjustment               (511)      (500)      (493)      (601)      (580)
                     ---------  ---------  ---------  ---------  ---------
  Interest revenue
   (GAAP)            $  83,849  $  87,199  $  89,356  $  96,880  $ 100,601
                     =========  =========  =========  =========  =========
Net interest revenue
 reconciliation
Net interest revenue
 - taxable
 equivalent          $  60,014  $  61,627  $  61,279  $  63,929  $  63,004
Taxable equivalent
 adjustment               (511)      (500)      (493)      (601)      (580)
                     ---------  ---------  ---------  ---------  ---------
  Net interest
   revenue (GAAP)    $  59,503  $  61,127  $  60,786  $  63,328  $  62,424
                     =========  =========  =========  =========  =========
Fee revenue
 reconciliation
Operating fee
 revenue             $  12,861  $  11,579  $  11,666  $  14,447  $  13,389
Gain from
 acquisition                 -          -          -          -          -
                     ---------  ---------  ---------  ---------  ---------
  Fee revenue (GAAP) $  12,861  $  11,579  $  11,666  $  14,447  $  13,389
                     =========  =========  =========  =========  =========
Total revenue
 reconciliation
Total operating
 revenue             $  22,375  $  11,706  $  (2,055) $ (11,624) $ (18,607)
Taxable equivalent
 adjustment               (511)      (500)      (493)      (601)      (580)
Gain from
 acquisition                 -          -          -          -          -
                     ---------  ---------  ---------  ---------  ---------
  Total revenue
   (GAAP)            $  21,864  $  11,206  $  (2,548) $ (12,225) $ (19,187)
                     =========  =========  =========  =========  =========
Expense
 reconciliation
Operating expense    $  64,906  $ 103,657  $  54,820  $  60,126  $  51,426
Noncash goodwill
 impairment charge     210,590          -          -          -     25,000
Severance costs              -          -          -          -          -
                     ---------  ---------  ---------  ---------  ---------
  Operating expense
   (GAAP)            $ 275,496  $ 103,657  $  54,820  $  60,126  $  76,426
                     =========  =========  =========  =========  =========
Loss from continuing
 operations before
 taxes
 reconciliation
Operating loss from
 continuing
 operations before
 taxes               $ (42,531) $ (91,951) $ (56,875) $ (71,750) $ (70,033)
Taxable equivalent
 adjustment               (511)      (500)      (493)      (601)      (580)
Gain from
 acquisition                 -          -          -          -          -
Noncash goodwill
 impairment charge    (210,590)         -          -          -    (25,000)
Severance costs              -          -          -          -          -
                     ---------  ---------  ---------  ---------  ---------
  Loss from
   continuing
   operations before
   taxes (GAAP)      $(253,632) $ (92,451) $ (57,368) $ (72,351) $ (95,613)
                     =========  =========  =========  =========  =========
Income tax benefit
 reconciliation
Operating income tax
 benefit             $ (16,706) $ (32,419) $ (22,417) $ (31,687) $ (26,252)
Taxable equivalent
 adjustment               (511)      (500)      (493)      (601)      (580)
Gain from
 acquisition, tax
 expense                     -          -          -          -          -
Severance costs, tax
 benefit                     -          -          -          -          -
                     ---------  ---------  ---------  ---------  ---------
  Income tax benefit
   (GAAP)            $ (17,217) $ (32,919) $ (22,910) $ (32,288) $ (26,832)
                     =========  =========  =========  =========  =========
Diluted loss from
 continuing
 operations per
 common share
 reconciliation
Diluted operating
 loss from
 continuing
 operations per
 common share        $    (.30) $    (.66) $    (.39) $    (.45) $    (.93)
Gain from
 acquisition                 -          -          -          -          -
Noncash goodwill
 impairment charge       (2.22)         -          -          -       (.50)
Severance costs              -          -          -          -          -
                     ---------  ---------  ---------  ---------  ---------
  Diluted loss
   from continuing
   operations per
   common share
   (GAAP)            $   (2.52) $    (.66) $    (.39) $    (.45) $   (1.43)
                     =========  =========  =========  =========  =========
Book value per
 common share
 reconciliation
Tangible book value
 per common share    $    5.05  $    5.39  $    5.62  $    6.02  $    6.50
Effect of goodwill
 and other
 intangibles              0.09       2.32       2.33       2.34       2.35
                     ---------  ---------  ---------  ---------  ---------
  Book value per
   common share
   (GAAP)            $    5.14  $    7.71  $    7.95  $    8.36  $    8.85
                     =========  =========  =========  =========  =========
Efficiency ratio
 from continuing
 operations
 reconciliation
Operating efficiency
 ratio from
 continuing
 operations              89.38%    141.60%     75.22%     78.74%     68.35%
Gain from
 acquisition                 -          -          -          -          -
Noncash goodwill
 impairment charge      290.00          -          -          -      33.22
Severance costs              -          -          -          -          -
                     ---------  ---------  ---------  ---------  ---------
  Efficiency ratio
   from continuing
   operations (GAAP)    379.38%    141.60%     75.22%     78.74%    101.57%
                     =========  =========  =========  =========  =========
Average equity to
 assets
 reconciliation
Tangible common
 equity to assets         6.78%      6.91%      7.13%      7.37%      5.36%
Effect of preferred
 equity                   2.41       2.35       2.26       2.16       2.19
                     ---------  ---------  ---------  ---------  ---------
  Tangible equity to
   assets                 9.19       9.26       9.39       9.53       7.55
Effect of goodwill
 and other
 intangibles              2.18       2.58       2.51       2.41       2.72
                     ---------  ---------  ---------  ---------  ---------
  Equity to assets
   (GAAP)                11.37%     11.84%     11.90%     11.94%     10.27%
                     =========  =========  =========  =========  =========
Actual tangible
 common equity to
 risk-weighted
 assets
 reconciliation
Tangible common
 equity to
 risk-weighted
 assets                   9.60%      9.97%     10.03%     10.39%     10.67%
Effect of other
 comprehensive
 income                   (.81)      (.87)      (.85)      (.87)      (.90)
Effect of deferred
 tax limitation          (2.94)     (2.47)     (1.75)     (1.27)      (.58)
Effect of trust
 preferred                1.06       1.03       1.00        .97        .92
Effect of preferred
 equity                   3.51       3.41       3.29       3.19       3.04
                     ---------  ---------  ---------  ---------  ---------
  Tier I capital
   ratio
   (Regulatory)          10.42%     11.07%     11.72%     12.41%     13.15%
                     =========  =========  =========  =========  =========
UNITED COMMUNITY BANKS, INC.
Operating Earnings to GAAP Earnings Reconciliation
Selected Financial Information
                                                        For the Nine
(in thousands, except per share                         Months Ended
 data; taxable equivalent)                        ------------------------
                                                       2010         2009
                                                  -----------  -----------
Interest revenue reconciliation
Interest revenue - taxable equivalent             $   261,908  $   307,480
Taxable equivalent adjustment                          (1,504)      (1,531)
                                                  -----------  -----------
    Interest revenue (GAAP)                       $   260,404  $   305,949
                                                  ===========  ===========
Net interest revenue reconciliation
Net interest revenue - taxable equivalent         $   182,920  $   181,298
Taxable equivalent adjustment                          (1,504)      (1,531)
                                                  -----------  -----------
    Net interest revenue (GAAP)                   $   181,416  $   179,767
                                                  ===========  ===========
Fee revenue reconciliation
Operating fee revenue                             $    36,106  $    36,517
Gain from acquisition                                       -       11,390
                                                  -----------  -----------
    Fee revenue (GAAP)                            $    36,106  $    47,907
                                                  ===========  ===========
Total revenue reconciliation
Total operating revenue                           $    32,026  $    (2,185)
Taxable equivalent adjustment                          (1,504)      (1,531)
Gain from acquisition                                       -       11,390
                                                  -----------  -----------
    Total revenue (GAAP)                          $    30,522  $     7,674
                                                  ===========  ===========
Expense reconciliation
Operating expense                                 $   223,383  $   156,924
Noncash goodwill impairment charge                    210,590       95,000
Severance costs                                             -        2,898
                                                  -----------  -----------
    Operating expense (GAAP)                      $   433,973  $   254,822
                                                  ===========  ===========
Loss from continuing operations before taxes
 reconciliation
Operating loss from continuing operations before
 taxes                                            $  (191,357) $  (159,109)
Taxable equivalent adjustment                          (1,504)      (1,531)
Gain from acquisition                                       -       11,390
Noncash goodwill impairment charge                   (210,590)     (95,000)
Severance costs                                             -       (2,898)
                                                  -----------  -----------
    Loss from continuing operations before taxes
     (GAAP)                                       $  (403,451) $  (247,148)
                                                  ===========  ===========
Income tax benefit reconciliation
Operating income tax benefit                      $   (71,542) $   (60,067)
Taxable equivalent adjustment                          (1,504)      (1,531)
Gain from acquisition, tax expense                          -        4,328
Severance costs, tax benefit                                -       (1,101)
                                                  -----------  -----------
    Income tax benefit (GAAP)                     $   (73,046) $   (58,371)
                                                  ===========  ===========
Diluted loss from continuing operations per
 common share reconciliation
Diluted operating loss from continuing operations
 per common share                                 $     (1.35) $     (2.18)
Gain from acquisition                                       -          .14
Noncash goodwill impairment charge                      (2.23)       (1.93)
Severance costs                                             -         (.04)
                                                  -----------  -----------
    Diluted loss from continuing operations per
     common share (GAAP)                          $     (3.58) $     (4.01)
                                                  ===========  ===========
Book value per common share reconciliation
Tangible book value per common share              $      5.05  $      6.50
Effect of goodwill and other intangibles                 0.09         2.35
                                                  -----------  -----------
    Book value per common share (GAAP)            $      5.14  $      8.85
                                                  ===========  ===========
Efficiency ratio from continuing operations
 reconciliation
Operating efficiency ratio from continuing
 operations                                            102.14%       72.29%
Gain from acquisition                                       -        (3.60)
Noncash goodwill impairment charge                      96.29        41.58
Severance costs                                             -         1.27
                                                  -----------  -----------
    Efficiency ratio from continuing operations
     (GAAP)                                            198.43%      111.54%
                                                  ===========  ===========
Average equity to assets reconciliation
Tangible common equity to assets                         6.94%        5.74%
Effect of preferred equity                               2.34         2.18
                                                  -----------  -----------
    Tangible equity to assets                            9.28         7.92
Effect of goodwill and other intangibles                 2.42         2.92
                                                  -----------  -----------
    Equity to assets (GAAP)                             11.70%       10.84%
                                                  ===========  ===========
Actual tangible common equity to risk-weighted
 assets reconciliation
Tangible common equity to risk-weighted assets           9.60%       10.67%
Effect of other comprehensive income                     (.81)        (.90)
Effect of deferred tax limitation                       (2.94)        (.58)
Effect of trust preferred                                1.06          .92
Effect of preferred equity                               3.51         3.04
                                                  -----------  -----------
    Tier I capital ratio (Regulatory)                   10.42%       13.15%
                                                  ===========  ===========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)
                                             2010                2009
                                    ----------------------- ---------------
                                    Third   Second  First   Fourth  Third
(in millions)                       Quarter Quarter Quarter Quarter Quarter
                                    ------- ------- ------- ------- -------
LOANS BY CATEGORY
Commercial (sec. by RE)             $ 1,781 $ 1,780 $ 1,765 $ 1,779 $ 1,787
Commercial construction                 310     342     357     363     380
Commercial & industrial                 456     441     381     390     403
                                    ------- ------- ------- ------- -------
    Total commercial                  2,547   2,563   2,503   2,532   2,570
Residential construction                764     820     960   1,050   1,185
Residential mortgage                  1,316   1,356   1,390   1,427   1,461
Consumer / installment                  133     134     139     142     147
                                    ------- ------- ------- ------- -------
    Total loans                     $ 4,760 $ 4,873 $ 4,992 $ 5,151 $ 5,363
                                    ======= ======= ======= ======= =======
LOANS BY MARKET
Atlanta MSA                         $ 1,365 $ 1,373 $ 1,404 $ 1,435 $ 1,526
Gainesville MSA                         316     343     372     390     402
North Georgia                         1,755   1,808   1,814   1,884   1,942
Western North Carolina                  719     738     756     772     786
Coastal Georgia                         345     356     388     405     440
East Tennessee                          260     255     258     265     267
                                    ------- ------- ------- ------- -------
    Total loans                     $ 4,760 $ 4,873 $ 4,992 $ 5,151 $ 5,363
                                    ======= ======= ======= ======= =======
RESIDENTIAL CONSTRUCTION
Dirt loans
  Acquisition & development         $   190 $   214 $   290 $   332 $   380
  Land loans                            104     110     124     127     159
  Lot loans                             303     311     321     336     336
                                    ------- ------- ------- ------- -------
    Total                               597     635     735     795     875
                                    ------- ------- ------- ------- -------
House loans
  Spec                                  109     125     153     178     218
  Sold                                   58      60      72      77      92
                                    ------- ------- ------- ------- -------
    Total                               167     185     225     255     310
                                    ------- ------- ------- ------- -------
Total residential construction      $   764 $   820 $   960 $ 1,050 $ 1,185
                                    ======= ======= ======= ======= =======
RESIDENTIAL CONSTRUCTION - ATLANTA
 MSA
Dirt loans
  Acquisition & development         $    34 $    40 $    66 $    76 $   100
  Land loans                             27      32      43      43      61
  Lot loans                              45      39      47      52      54
                                    ------- ------- ------- ------- -------
    Total                               106     111     156     171     215
                                    ------- ------- ------- ------- -------
House loans
  Spec                                   42      48      58      68      91
  Sold                                   11      10      14      16      22
                                    ------- ------- ------- ------- -------
    Total                                53      58      72      84     113
                                    ------- ------- ------- ------- -------
Total residential construction      $   159 $   169 $   228 $   255 $   328
                                    ======= ======= ======= ======= =======
(1)  Excludes total loans of $75.2 million, $80.8 million, $79.5 million,
$85.1 million and $104.0 million as of September 30, 2010, June 30, 2010,
March 31, 2010, December 31, 2009 and September 30, 2009, respectively,
that are covered by the loss-sharing agreement with the FDIC, related
to the acquisition of Southern Community Bank.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)
                                     2010         2009               Year
                                --------------- ---------  Linked    over
                                Third   Second    Third   Quarter    Year
(in millions)                   Quarter Quarter Quarter    Change   Change
                                ------- ------- --------- --------  ------
LOANS BY CATEGORY
Commercial (sec. by RE)         $ 1,781 $ 1,780 $   1,787 $      1  $   (6)
Commercial construction             310     342       380      (32)    (70)
Commercial & industrial             456     441       403       15      53
                                ------- ------- ---------
    Total commercial              2,547   2,563     2,570      (16)    (23)
Residential construction            764     820     1,185      (56)   (421)
Residential mortgage              1,316   1,356     1,461      (40)   (145)
Consumer / installment              133     134       147       (1)    (14)
                                ------- ------- ---------
    Total loans                 $ 4,760 $ 4,873 $   5,363     (113)   (603)
                                ======= ======= =========
LOANS BY MARKET
Atlanta MSA                     $ 1,365 $ 1,373 $   1,526       (8)   (161)
Gainesville MSA                     316     343       402      (27)    (86)
North Georgia                     1,755   1,808     1,942      (53)   (187)
Western North Carolina              719     738       786      (19)    (67)
Coastal Georgia                     345     356       440      (11)    (95)
East Tennessee                      260     255       267        5      (7)
                                ------- ------- ---------
    Total loans                 $ 4,760 $ 4,873 $   5,363     (113)   (603)
                                ======= ======= =========
RESIDENTIAL CONSTRUCTION
Dirt loans
  Acquisition & development     $   190 $   214 $     380      (24)   (190)
  Land loans                        104     110       159       (6)    (55)
  Lot loans                         303     311       336       (8)    (33)
                                ------- ------- ---------
    Total                           597     635       875      (38)   (278)
                                ------- ------- ---------
House loans
  Spec                              109     125       218      (16)   (109)
  Sold                               58      60        92       (2)    (34)
                                ------- ------- ---------
    Total                           167     185       310      (18)   (143)
                                ------- ------- ---------
Total residential construction  $   764 $   820 $   1,185      (56)   (421)
                                ======= ======= =========
RESIDENTIAL CONSTRUCTION -
 ATLANTA MSA
Dirt loans
  Acquisition & development     $    34 $    40 $     100       (6)    (66)
  Land loans                         27      32        61       (5)    (34)
  Lot loans                          45      39        54        6      (9)
                                ------- ------- ---------
    Total                           106     111       215       (5)   (109)
                                ------- ------- ---------
House loans
  Spec                               42      48        91       (6)    (49)
  Sold                               11      10        22        1     (11)
                                ------- ------- ---------
    Total                            53      58       113       (5)    (60)
                                ------- ------- ---------
Total residential construction  $   159 $   169 $     328      (10)   (169)
                                ======= ======= =========
(1)  Excludes total loans of $75.2 million, $80.8 million, $79.5 million,
$85.1 million and $104.0 million as of September 30, 2010, June 30, 2010,
March 31, 2010, December 31, 2009 and September 30, 2009, respectively,
that are covered by the loss-sharing agreement with the FDIC, related to
the acquisition of Southern Community Bank.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
                                          Third Quarter 2010
                            ----------------------------------------------
                            Non-performing    Foreclosed        Total
(in thousands)                   Loans        Properties        NPAs
                            --------------  --------------  --------------
NPAs BY CATEGORY
Commercial (sec. by RE)     $       53,646  $       14,838  $       68,484
Commercial construction             17,279          15,125          32,404
Commercial & industrial              7,670               -           7,670
                            --------------  --------------  --------------
     Total commercial               78,595          29,963         108,558
Residential construction            79,321          73,206         152,527
Residential mortgage                58,107          26,795          84,902
Consumer / installment               1,743               -           1,743
                            --------------  --------------  --------------
     Total NPAs             $      217,766  $      129,964  $      347,730
                            ==============  ==============  ==============
NPAs BY MARKET
Atlanta MSA                 $       65,304  $       32,785  $       98,089
Gainesville MSA                     11,905           5,685          17,590
North Georgia                       92,295          67,439         159,734
Western North Carolina              31,545          11,559          43,104
Coastal Georgia                     10,611          10,951          21,562
East Tennessee                       6,106           1,545           7,651
                            --------------  --------------  --------------
     Total NPAs             $      217,766  $      129,964  $      347,730
                            ==============  ==============  ==============
     Balance as a % of
      Unpaid Principal                70.0%           65.9%           68.4%
NPA ACTIVITY
Beginning Balance           $      224,335  $      123,910  $      348,245
Loans placed on non-accrual        119,783               -         119,783
Payments received                  (11,469)              -         (11,469)
Loan charge-offs                   (52,647)              -         (52,647)
Foreclosures                       (59,844)         59,844               -
Capitalized costs                        -             601             601
Note / property sales               (2,392)        (40,203)        (42,595)
Write downs                              -          (7,051)         (7,051)
Net losses on sales                      -          (7,137)         (7,137)
                            --------------  --------------  --------------
     Ending Balance         $      217,766  $      129,964  $      347,730
                            ==============  ==============  ==============
(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.
Financial Highlights
Credit Quality (1)
                                          Second Quarter 2010
                            ----------------------------------------------
                            Non-performing    Foreclosed        Total
(in thousands)                  Loans         Properties        NPAs
                            --------------  --------------  --------------
NPAs BY CATEGORY
Commercial (sec. by RE)     $       56,013  $       13,297  $       69,310
Commercial construction             17,872          11,339          29,211
Commercial & industrial              7,245               -           7,245
                            --------------  --------------  --------------
     Total commercial               81,130          24,636         105,766
Residential construction            88,375          74,444         162,819
Residential mortgage                53,175          24,830          78,005
Consumer / installment               1,655               -           1,655
                            --------------  --------------  --------------
     Total NPAs             $      224,335  $      123,910  $      348,245
                            ==============  ==============  ==============
     Balance as a % of
      Unpaid Principal                69.4%           71.9%           70.3%
NPAs BY MARKET
Atlanta MSA                 $       74,031  $       30,605  $      104,636
Gainesville MSA                     10,730           2,750          13,480
North Georgia                      102,198          60,597         162,795
Western North Carolina              22,776          11,473          34,249
Coastal Georgia                      8,341          16,548          24,889
East Tennessee                       6,259           1,937           8,196
                            --------------  --------------  --------------
     Total NPAs             $      224,335  $      123,910  $      348,245
                            ==============  ==============  ==============
NPA ACTIVITY
Beginning Balance           $      280,802  $      136,275  $      417,077
Loans placed on non-accrual        155,007               -         155,007
Payments received                  (12,189)              -         (12,189)
Loan charge-offs                   (62,693)              -         (62,693)
Foreclosures                       (66,994)         66,994               -
Capitalized costs                        -             305             305
Note / property sales              (69,598)        (68,472)       (138,070)
Write downs                              -          (6,094)         (6,094)
Net losses on sales                      -          (5,098)         (5,098)
                            --------------  --------------  --------------
     Ending Balance         $      224,335  $      123,910  $      348,245
                            ==============  ==============  ==============
(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.
Financial Highlights
Credit Quality (1)
                                          First Quarter 2010
                            ----------------------------------------------
                            Non-performing    Foreclosed        Total
(in thousands)                   Loans        Properties        NPAs
                            --------------  --------------  --------------
NPAs BY CATEGORY
Commercial (sec. by RE)     $       45,918  $       21,597  $       67,515
Commercial construction             23,556          14,285          37,841
Commercial & industrial              3,610               -           3,610
                            --------------  --------------  --------------
     Total commercial               73,084          35,882         108,966
Residential construction           147,326          74,220         221,546
Residential mortgage                57,920          26,173          84,093
Consumer / installment               2,472               -           2,472
                            --------------  --------------  --------------
     Total NPAs             $      280,802  $      136,275  $      417,077
                            ==============  ==============  ==============
     Balance as a % of
      Unpaid Principal                71.6%           67.5%           70.2%
NPAs BY MARKET
Atlanta MSA                 $       81,914  $       36,951  $      118,865
Gainesville MSA                     17,058           3,192          20,250
North Georgia                      109,280          63,128         172,408
Western North Carolina              31,353           8,588          39,941
Coastal Georgia                     33,438          21,871          55,309
East Tennessee                       7,759           2,545          10,304
                            --------------  --------------  --------------
     Total NPAs             $      280,802  $      136,275  $      417,077
                            ==============  ==============  ==============
NPA ACTIVITY
Beginning Balance           $      264,092  $      120,770  $      384,862
Loans placed on non-accrual        139,030               -         139,030
Payments received                   (5,733)              -          (5,733)
Loan charge-offs                   (58,897)              -         (58,897)
Foreclosures                       (49,233)         49,233               -
Capitalized costs                        -             320             320
Note / property sales               (8,457)        (25,951)        (34,408)
Write downs                              -          (4,579)         (4,579)
Net losses on sales                      -          (3,518)         (3,518)
                            --------------  --------------  --------------
     Ending Balance         $      280,802  $      136,275  $      417,077
                            ==============  ==============  ==============
(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.
Financial Highlights
Credit Quality (1)
                Third Quarter 2010  Second Quarter 2010 First Quarter 2010
                ------------------- ------------------- -------------------
                            Net                 Net                 Net
                          Charge-             Charge-             Charge-
                   Net    Offs to      Net    Offs to      Net    Offs to
                 Charge-  Average    Charge-  Average    Charge-  Average
(in thousands)    Offs    Loans (2)   Offs    Loans (2)   Offs    Loans (2)
                --------- --------  --------- --------  --------- --------
NET CHARGE-OFFS
 BY CATEGORY
Commercial
 (sec. by RE)   $  14,212     3.16% $   9,757     2.21% $   1,964      .45%
Commercial
 construction       1,972     2.40      1,460     1.67      2,206     2.48
Commercial &
 industrial         1,207     1.07        867      .85      4,110     4.31
                ---------           ---------           ---------
     Total
      commercial   17,391     2.70     12,084     1.91      8,280     1.33
Residential
 construction      23,934    11.99     41,515    18.71     43,100    17.32
Residential
 mortgage           7,695     2.29      6,517     1.90      4,551     1.31
Consumer /
 installment          978     2.90      1,207     3.53        737     2.12
                ---------           ---------           ---------
     Total      $  49,998     4.12  $  61,323     4.98  $  56,668     4.51
                =========           =========           =========
NET CHARGE-OFFS
 BY MARKET
Atlanta MSA     $  13,753     3.97% $  16,926     4.85% $  15,545     4.32%
Gainesville MSA     1,143     1.40      2,547     3.01      1,675     1.92
North Georgia      26,554     5.92     28,100     6.19     29,747     6.51
Western North
 Carolina           5,509     2.99      7,194     3.86      3,695     1.96
Coastal Georgia     2,702     3.05      5,581     6.07      5,649     5.74
East Tennessee        337      .52        975     1.53        357      .55
                ---------           ---------           ---------
     Total      $  49,998     4.12  $  61,323     4.98  $  56,668     4.51
                =========           =========           =========
(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
                                                     September 30,
                                             -----------------------------
(in thousands, except per share data)            2010            2009
                                             -------------   -------------
Interest revenue:
  Loans, including fees                      $      68,419   $      80,874
  Investment securities, including tax
   exempt of $280, $328, $886 and $956              14,711          18,820
  Federal funds sold, commercial paper and
   deposits in banks                                   719             907
                                             -------------   -------------
      Total interest revenue                        83,849         100,601
                                             -------------   -------------
Interest expense:
  Deposits:
    NOW                                              1,705           2,528
    Money market                                     1,930           2,711
    Savings                                             83             130
    Time                                            16,099          28,183
                                             -------------   -------------
      Total deposit interest expense                19,817          33,552
  Federal funds purchased, repurchase
   agreements and other short-term borrowings        1,068             613
  Federal Home Loan Bank advances                      796           1,300
  Long-term debt                                     2,665           2,712
                                             -------------   -------------
    Total interest expense                          24,346          38,177
                                             -------------   -------------
    Net interest revenue                            59,503          62,424
  Provision for loan losses                         50,500          95,000
                                             -------------   -------------
    Net interest revenue after provision for
     loan losses                                     9,003         (32,576)
                                             -------------   -------------
Fee revenue:
  Service charges and fees                           7,648           8,138
  Mortgage loan and other related fees               2,071           1,832
  Brokerage fees                                       731             456
  Securities gains, net                              2,491           1,149
  Gain from acquisition                                  -               -
  Losses from prepayment of borrowings              (2,233)              -
  Other                                              2,153           1,814
                                             -------------   -------------
    Total fee revenue                               12,861          13,389
                                             -------------   -------------
    Total revenue                                   21,864         (19,187)
                                             -------------   -------------
Operating expenses:
  Salaries and employee benefits                    24,891          23,889
  Communications and equipment                       3,620           3,640
  Occupancy                                          3,720           4,063
  Advertising and public relations                   1,128             823
  Postage, printing and supplies                     1,019           1,270
  Professional fees                                  2,117           2,358
  Foreclosed property                               19,752           7,918
  FDIC assessments and other regulatory
   charges                                           3,256           2,801
  Amortization of intangibles                          793             813
  Other                                              4,610           3,851
  Loss on sale of nonperforming assets                   -               -
  Goodwill impairment                              210,590          25,000
  Severance costs                                        -               -
                                             -------------   -------------
    Total operating expenses                       275,496          76,426
                                             -------------   -------------
  Loss from continuing operations before
   income taxes                                   (253,632)        (95,613)
  Income tax benefit                               (17,217)        (26,832)
                                             -------------   -------------
    Net loss from continuing operations           (236,415)        (68,781)
  (Loss) income from discontinued
   operations, net of income taxes                       -              63
  Gain from sale of subsidiary, net of
   income taxes and selling costs                        -               -
                                             -------------   -------------
    Net loss                                      (236,415)        (68,718)
  Preferred stock dividends and discount
   accretion                                         2,581           2,562
                                             -------------   -------------
    Net loss available to common
     shareholders                            $    (238,996)  $     (71,280)
                                             =============   =============
Loss from continuing operations per common
 share - Basic / Diluted                     $       (2.52)  $       (1.43)
Loss per common share - Basic / Diluted              (2.52)          (1.43)
Weighted average common shares outstanding -
 Basic / Diluted                                    94,679          49,771
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
                                                   Nine Months Ended
                                                     September 30,
                                             -----------------------------
(in thousands, except per share data)             2010            2009
                                             -------------   -------------
Interest revenue:
  Loans, including fees                      $     211,245   $     244,445
  Investment securities, including tax
   exempt of $280, $328, $886 and $956              46,743          60,057
  Federal funds sold, commercial paper and
   deposits in banks                                 2,416           1,447
                                             -------------   -------------
    Total interest revenue                         260,404         305,949
                                             -------------   -------------
Interest expense:
  Deposits:
    NOW                                              5,304           8,708
    Money market                                     5,516           7,217
    Savings                                            250             378
    Time                                            54,015          96,300
                                             -------------   -------------
      Total deposit interest expense                65,085         112,603
  Federal funds purchased, repurchase
   agreements and other short-term borrowings        3,162           1,761
  Federal Home Loan Bank advances                    2,747           3,577
  Long-term debt                                     7,994           8,241
                                             -------------   -------------
      Total interest expense                        78,988         126,182
                                             -------------   -------------
      Net interest revenue                         181,416         179,767
  Provision for loan losses                        187,000         220,000
                                             -------------   -------------
      Net interest revenue after provision
       for loan losses                              (5,584)        (40,233)
                                             -------------   -------------
Fee revenue:
  Service charges and fees                          23,088          22,729
  Mortgage loan and other related fees               5,151           7,308
  Brokerage fees                                     1,884           1,642
  Securities gains, net                              2,552             741
  Gain from acquisition                                  -          11,390
  Losses from prepayment of borrowings              (2,233)              -
  Other                                              5,664           4,097
                                             -------------   -------------
    Total fee revenue                               36,106          47,907
                                             -------------   -------------
    Total revenue                                   30,522           7,674
                                             -------------   -------------
Operating expenses:
  Salaries and employee benefits                    72,841          77,507
  Communications and equipment                      10,404          10,857
  Occupancy                                         11,370          11,650
  Advertising and public relations                   3,523           2,992
  Postage, printing and supplies                     3,009           3,733
  Professional fees                                  6,238           8,834
  Foreclosed property                               45,105          17,974
  FDIC assessments and other regulatory
   charges                                          10,448          12,293
  Amortization of intangibles                        2,389           2,291
  Other                                             12,707           8,793
  Loss on sale of nonperforming assets              45,349               -
  Goodwill impairment                              210,590          95,000
  Severance costs                                        -           2,898
                                             -------------   -------------
    Total operating expenses                       433,973         254,822
                                             -------------   -------------
  Loss from continuing operations before
   income taxes                                   (403,451)       (247,148)
  Income tax benefit                               (73,046)        (58,371)
                                             -------------   -------------
    Net loss from continuing operations           (330,405)       (188,777)
  (Loss) income from discontinued
   operations, net of income taxes                    (101)            285
  Gain from sale of subsidiary, net of
   income taxes and selling costs                    1,266               -
                                             -------------   -------------
    Net loss                                      (329,240)       (188,492)
  Preferred stock dividends and discount
   accretion                                         7,730           7,675
                                             -------------   -------------
    Net loss available to common
     shareholders                            $    (336,970)  $    (196,167)
                                             =============   =============
Loss from continuing operations per common
 share - Basic / Diluted                     $       (3.58)  $       (4.01)
Loss per common share - Basic / Diluted              (3.56)          (4.01)
Weighted average common shares outstanding -
 Basic / Diluted                                    94,527          48,968
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
 (in thousands, except share and   September 30, December 31, September 30,
   per share data)                     2010          2009          2009
                                   ------------  ------------  ------------
                                    (unaudited)    (audited)   (unaudited)
 ASSETS
   Cash and due from banks         $    104,033  $    126,265  $    195,559
   Interest-bearing deposits in
    banks                                64,408       120,382        78,589
   Federal funds sold, commercial
    paper and short-term
    investments                         108,579       129,720       397,361
                                   ------------  ------------  ------------
       Cash and cash equivalents        277,020       376,367       671,509
   Securities available for sale      1,053,518     1,530,047     1,532,514
   Securities held to maturity
    (fair value $263,012)               256,694             -             -
   Mortgage loans held for sale          20,630        30,226        20,460
   Loans, net of unearned income      4,759,504     5,151,476     5,362,689
       Less allowance for loan
        losses                          174,613       155,602       150,187
                                   ------------  ------------  ------------
           Loans, net                 4,584,891     4,995,874     5,212,502
   Assets covered by loss sharing
    agreements with the FDIC            144,581       185,938       197,914
   Premises and equipment, net          178,842       182,038       179,467
   Accrued interest receivable           24,672        33,867        35,679
   Goodwill and other intangible
    assets                               12,217       225,196       226,008
   Foreclosed property                  129,964       120,770       110,610
   Other assets                         330,020       319,591       256,954
                                   ------------  ------------  ------------
       Total assets                $  7,013,049  $  7,999,914  $  8,443,617
                                   ============  ============  ============
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Liabilities:
   Deposits:
     Demand                        $    783,251  $    707,826  $    703,054
     NOW                              1,338,371     1,335,790     1,318,264
     Money market                       804,644       713,901       687,780
     Savings                            186,617       177,427       180,738
     Time:
        Less than $100,000            1,498,379     1,746,511     1,854,726
        Greater than $100,000         1,033,132     1,187,499     1,237,172
        Brokered                        354,243       758,880       839,572
                                   ------------  ------------  ------------
             Total deposits           5,998,637     6,627,834     6,821,306
   Federal funds purchased,
    repurchase agreements, and
    other short-term borrowings         103,780       101,389       101,951
   Federal Home Loan Bank
    advances                             55,125       114,501       314,704
   Long-term debt                       150,126       150,066       150,046
   Accrued expenses and other
    liabilities                          42,906        43,803        48,972
                                   ------------  ------------  ------------
        Total liabilities             6,350,574     7,037,593     7,436,979
                                   ------------  ------------  ------------
 Shareholders' equity:
   Preferred stock, $1 par value;
    10,000,000 shares authorized;
        Series A; $10 stated value;
         21,700 shares issued and
         outstanding                        217           217           217
        Series B; $1,000 stated
         value; 180,000 shares
         issued and outstanding         175,378       174,408       174,095
   Common stock, $1 par value;
    200,000,000 shares authorized;
    94,433,300, 94,045,603 and
    93,901,492 shares issued and
    outstanding                          94,433        94,046        93,901
   Common stock issuable; 305,594,
    221,906 and 196,818 shares            3,961         3,597         3,471
   Capital surplus                      664,605       622,034       620,494
   (Accumulated deficit)
    retained earnings                  (316,587)       20,384        62,786
   Accumulated other
    comprehensive income                 40,468        47,635        51,674
                                   ------------  ------------  ------------
        Total shareholders' equity      662,475       962,321     1,006,638
                                   ------------  ------------  ------------
        Total liabilities and
         shareholders' equity      $  7,013,049  $  7,999,914  $  8,443,617
                                   ============  ============  ============
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended September 30,
                                                      2010
                                     -------------------------------------
(dollars in thousands, taxable         Average                     Avg.
 equivalent)                           Balance      Interest       Rate
                                     -----------  ------------ -----------
Assets:
Interest-earning assets:
  Loans, net of unearned income
   (1)(2)                            $ 4,896,471  $     68,540     5.55 %
  Taxable securities (3)               1,384,682        14,431     4.17
  Tax-exempt securities (1)(3)            26,481           459     6.93
  Federal funds sold and other
   interest-earning assets               368,108           930     1.01
                                     -----------  ------------
     Total interest-earning assets     6,675,742        84,360     5.02
                                     -----------  ------------
Non-interest-earning assets:
  Allowance for loan losses             (194,300)
  Cash and due from banks                107,825
  Premises and equipment                 179,839
  Other assets (3)                       752,780
                                     -----------
     Total assets                    $ 7,521,886
                                     ===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
  Interest-bearing deposits:
    NOW                              $ 1,318,779  $      1,705      .51
    Money market                         781,903         1,930      .98
    Savings                              186,123            83      .18
    Time less than $100,000            1,541,772         7,190     1.85
    Time greater than $100,000         1,065,789         5,506     2.05
    Brokered                             573,606         3,403     2.35
                                     -----------  ------------
       Total interest-bearing
        deposits                       5,467,972        19,817     1.44
                                     -----------  ------------
    Federal funds purchased and other
     borrowings                          104,370         1,068     4.06
    Federal Home Loan Bank advances       80,220           796     3.94
    Long-term debt                       150,119         2,665     7.04
                                     -----------  ------------
      Total borrowed funds               334,709         4,529     5.37
                                     -----------  ------------
      Total interest-bearing
       liabilities                     5,802,681        24,346     1.66
                                                  ------------
Non-interest-bearing liabilities:
  Non-interest-bearing deposits          789,231
  Other liabilities                       74,482
                                     -----------
     Total liabilities                 6,666,394
Shareholders' equity                     855,492
                                     -----------
     Total liabilities and
      shareholders' equity           $ 7,521,886
                                     ===========
Net interest revenue                              $     60,014
                                                  ============
Net interest-rate spread                                           3.36 %
                                                               =========
Net interest margin (4)                                            3.57 %
                                                               =========
(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 $45.4 million in 2010 and $13.8 million in 2009
     are included in other assets for purposes of this presentation.
(4)  Net interest margin is taxable equivalent net-interest revenue divided
     by average interest-earning assets.
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended September 30,
                                                      2009
                                     -------------------------------------
(dollars in thousands, taxable         Average                     Avg.
 equivalent)                           Balance      Interest       Rate
                                     -----------  ------------ -----------
Assets:
Interest-earning assets:
  Loans, net of unearned income
   (1)(2)                            $ 5,565,498  $     80,880     5.77 %
  Taxable securities (3)               1,585,154        18,492     4.67
  Tax-exempt securities (1)(3)            30,345           537     7.08
  Federal funds sold and other
   interest-earning assets               219,542         1,272     2.32
                                     -----------  ------------
     Total interest-earning assets     7,400,539       101,181     5.43
                                     -----------  ------------
Non-interest-earning assets:
  Allowance for loan losses             (147,074)
  Cash and due from banks                107,062
  Premises and equipment                 179,764
  Other assets (3)                       667,908
                                     -----------
     Total assets                    $ 8,208,199
                                     ===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
  Interest-bearing deposits:
    NOW                              $ 1,238,596  $      2,528      .81
    Money market                         628,392         2,711     1.71
    Savings                              180,216           130      .29
    Time less than $100,000            1,918,439        13,300     2.75
    Time greater than $100,000         1,292,786        10,106     3.10
    Brokered                             707,678         4,777     2.68
                                     -----------  ------------
       Total interest-bearing
        deposits                       5,966,107        33,552     2.23
                                     -----------  ------------
  Federal funds purchased and other
   borrowings                            234,211           613     1.04
  Federal Home Loan Bank advances        210,625         1,300     2.45
  Long-term debt                         150,353         2,712     7.16
                                     -----------  ------------
      Total borrowed funds               595,189         4,625     3.08
                                     -----------  ------------
      Total interest-bearing
       liabilities                     6,561,296        38,177     2.31
                                                  ------------
Non-interest-bearing liabilities:
  Non-interest-bearing deposits          723,841
  Other liabilities                       79,932
                                     -----------
     Total liabilities                 7,365,069
Shareholders' equity                     843,130
                                     -----------
     Total liabilities and
      shareholders' equity           $ 8,208,199
                                     ===========
Net interest revenue                              $     63,004
                                                  ============
Net interest-rate spread                                           3.12 %
                                                               =========
Net interest margin (4)                                            3.39 %
                                                               =========
(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 $45.4 million in 2010 and $13.8 million in 2009
     are included in other assets for purposes of this presentation.
(4)  Net interest margin is taxable equivalent net-interest revenue
     divided by average interest-earning assets.
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Nine Months Ended September 30,
                                                      2010
                                     -------------------------------------
(dollars in thousands, taxable         Average                     Avg.
 equivalent)                           Balance      Interest       Rate
                                     -----------  ------------ -----------
Assets:
Interest-earning assets:
  Loans, net of unearned income
   (1)(2)                            $ 5,025,739  $    211,399     5.62 %
  Taxable securities (3)               1,458,120        45,857     4.19
  Tax-exempt securities (1)(3)            28,470         1,450     6.79
  Federal funds sold and other
   interest-earning assets               357,881         3,202     1.19
                                     -----------  ------------
     Total interest-earning assets     6,870,210       261,908     5.09
                                     -----------  ------------
Non-interest-earning assets:
  Allowance for loan losses             (191,888)
  Cash and due from banks                104,446
  Premises and equipment                 180,936
  Other assets (3)                       758,903
                                     -----------
     Total assets                    $ 7,722,607
                                     ===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
  Interest-bearing deposits:
    NOW                              $ 1,335,034  $      5,304      .53
    Money market                         750,685         5,516      .98
    Savings                              184,420           250      .18
    Time less than $100,000            1,612,691        23,968     1.99
    Time greater than $100,000         1,110,195        18,378     2.21
    Brokered                             650,588        11,669     2.40
                                     -----------  ------------
       Total interest-bearing
        deposits                       5,643,613        65,085     1.54
                                     -----------  ------------
  Federal funds purchased and other
   borrowings                            103,697         3,162     4.08
  Federal Home Loan Bank advances        100,727         2,747     3.65
  Long-term debt                         150,098         7,994     7.12
                                     -----------  ------------
      Total borrowed funds               354,522        13,903     5.24
                                     -----------  ------------
      Total interest-bearing
       liabilities                     5,998,135        78,988     1.76
                                                  ------------
Non-interest-bearing liabilities:
  Non-interest-bearing deposits          755,845
  Other liabilities                       64,622
                                     -----------
     Total liabilities                 6,818,602
Shareholders' equity                     904,005
                                     -----------
     Total liabilities and
      shareholders' equity           $ 7,722,607
                                     ===========
Net interest revenue                              $    182,920
                                                  ============
Net interest-rate spread                                           3.33 %
                                                               =========
Net interest margin (4)                                            3.56 %
                                                               =========
(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 $44.1 million in 2010 and $13.0 million in 2009
     are included in other assets for purposes of this presentation.
(4)  Net interest margin is taxable equivalent net-interest revenue
     divided by average interest-earning assets.
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Nine Months Ended September 30,
                                                      2009
                                     -------------------------------------
(dollars in thousands, taxable         Average                     Avg.
 equivalent)                           Balance      Interest       Rate
                                     -----------  ------------ -----------
Assets:
Interest-earning assets:
  Loans, net of unearned income
   (1)(2)                            $ 5,612,202  $    244,196     5.82 %
  Taxable securities (3)               1,669,768        59,101     4.72
  Tax-exempt securities (1)(3)            29,754         1,565     7.01
  Federal funds sold and other
   interest-earning assets               145,449         2,618     2.40
                                     -----------  ------------
     Total interest-earning assets     7,457,173       307,480     5.51
                                     -----------  ------------
Non-interest-earning assets:
  Allowance for loan losses             (141,255)
  Cash and due from banks                104,444
  Premises and equipment                 179,569
  Other assets (3)                       663,674
                                     -----------
     Total assets                    $ 8,263,605
                                     ===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
  Interest-bearing deposits:
    NOW                              $ 1,284,522  $      8,708      .91
    Money market                         543,122         7,217     1.78
    Savings                              177,147           378      .29
    Time less than $100,000            1,918,379        45,859     3.20
    Time greater than $100,000         1,336,876        34,444     3.44
    Brokered                             726,352        15,997     2.94
                                     -----------  ------------
       Total interest-bearing
        deposits                       5,986,398       112,603     2.51
                                     -----------  ------------
  Federal funds purchased and other
   borrowings                            202,008         1,761     1.17
  Federal Home Loan Bank advances        241,863         3,577     1.98
  Long-term debt                         150,788         8,241     7.31
                                     -----------  ------------
      Total borrowed funds               594,659        13,579     3.05
                                     -----------  ------------
      Total interest-bearing
       liabilities                     6,581,057       126,182     2.56
                                                  ------------
Non-interest-bearing liabilities:
  Non-interest-bearing deposits          684,942
  Other liabilities                      101,447
                                     -----------
     Total liabilities                 7,367,446
Shareholders' equity                     896,159
                                     -----------
     Total liabilities and
      shareholders' equity           $ 8,263,605
                                     ===========
Net interest revenue                              $    181,298
                                                  ============
Net interest-rate spread                                           2.95 %
                                                               =========
Net interest margin (4)                                            3.25 %
                                                               =========
(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 $44.1 million in 2010 and $13.0 million in 2009
     are included in other assets for purposes of this presentation.
(4)  Net interest margin is taxable equivalent net-interest revenue
     divided by average interest-earning assets.

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


SOURCE: United Community Banks, Inc.

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