United Community Banks, Inc.
Jan 28, 2011

United Community Banks, Inc. Reports Net Operating Loss of $23.6 Million for Fourth Quarter 2010

BLAIRSVILLE, GA -- (MARKET WIRE) -- 01/28/11 -- United Community Banks, Inc. (NASDAQ: UCBI)


--  Net operating loss lowest since second quarter 2009

--  Credit measures continue to improve; nonperforming assets lowest since

    2008

--  Allowance-to-loans ratio increases to 3.79 percent

--  Core transaction deposits up 12 percent annualized

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Conference Call

United Community Banks will hold a conference call today, Friday, January 28, 2011, at 11 a.m. ET to discuss the contents of this news release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the password '35075160.' The conference call also will be webcast and can be accessed by selecting 'Calendar of Events' within the Investor Relations section of the company's website at www.ucbi.com.

About United Community Banks, Inc.

Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. United Community Banks has assets of $7.4 billion and operates 27 community banks with 106 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina and east Tennessee. The Company specializes in providing personalized community banking services to individuals and small to mid-size businesses. United Community Banks also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United Community Banks common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at the Company's web site at www.ucbi.com.

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        Fourth       Third       Second      First       Fourth

 equivalent)     Quarter     Quarter      Quarter     Quarter     Quarter

               ---------   ----------   ---------   ---------   ---------

INCOME SUMMARY

Interest

 revenue       $  81,215   $   84,360   $  87,699   $  89,849   $  97,481

Interest

 expense          21,083       24,346      26,072      28,570      33,552

               ---------   ----------   ---------   ---------   ---------

  Net

   interest

   revenue        60,132       60,014      61,627      61,279      63,929

Operating

 provision for

 loan losses

 (1)              47,750       50,500      61,500      75,000      90,000

Operating fee

 revenue (2)      12,442       12,861      11,579      11,666      14,447

               ---------   ----------   ---------   ---------   ---------

  Total

   operating

   revenue

   (1)(2)         24,824       22,375      11,706      (2,055)    (11,624)

Operating

 expenses (3)     64,918       64,906      58,308      54,820      60,126

Loss on sale of

 nonperforming

 assets                -            -      45,349           -           -

               ---------   ----------   ---------   ---------   ---------

  Operating

   loss from

   continuing

   operations

   before taxes  (40,094)     (42,531)    (91,951)    (56,875)    (71,750)

Operating

 income tax

 benefit         (16,520)     (16,706)    (32,419)    (22,417)    (31,687)

               ---------   ----------   ---------   ---------   ---------

  Net operating

   loss from

   continuing

   operations

   (1)(2)(3)     (23,574)     (25,825)    (59,532)    (34,458)    (40,063)

Gain from

 acquisition,

 net of tax

 expense               -            -           -           -           -

Noncash

 goodwill

 impairment

 charges               -     (210,590)          -           -           -

Severance

 costs, net of

 tax benefit           -            -           -           -           -

Partial

 reversal of

 fraud loss

 provision,

 net of tax

 expense           7,179            -           -           -           -

(Loss) income

 from

 discontinued

 operations            -            -           -        (101)        228

Gain from sale of

 subsidiary,

 net of income

 taxes and

 selling costs         -            -           -       1,266           -

               ---------   ----------   ---------   ---------   ---------

  Net loss       (16,395)    (236,415)    (59,532)    (33,293)    (39,835)

Preferred

 dividends and

 discount

 accretion         2,586        2,581       2,577       2,572       2,567

               ---------   ----------   ---------   ---------   ---------

Net loss

 available to

 common

 shareholders  $ (18,981)  $ (238,996)  $ (62,109)  $ (35,865)  $ (42,402)

               =========   ==========   =========   =========   =========

PERFORMANCE

 MEASURES

  Per common

   share:

    Diluted

     operating

     loss from

     continuing

     operations

     (1)(2)(3) $    (.28)  $     (.30)  $    (.66)  $    (.39)  $    (.45)

    Diluted

     loss from

     continuing

     operations     (.20)       (2.52)       (.66)       (.39)       (.45)

    Diluted

     loss           (.20)       (2.52)       (.66)       (.38)       (.45)

    Stock

     dividends

     declared

     (7)               -            -           -           -           -

    Book value      4.84         5.14        7.71        7.95        8.36

    Tangible

     book

     value (5)      4.76         5.05        5.39        5.62        6.02

  Key

   performance

   ratios:

    Return on

     equity

     (4)(6)       (17.16)%    (148.04)%    (35.89)%    (20.10)%    (22.08)%

    Return on

     assets

     (6)            (.89)      (12.47)      (3.10)      (1.70)      (1.91)

    Net

     interest

     margin

     (6)            3.58         3.57        3.60        3.49        3.40

    Operating

     efficiency

     ratio from

     continuing

     operations

     (2)(3)        89.45        89.38      141.60       75.22       78.74

    Equity to

     assets         8.85        11.37       11.84       11.90       11.94

    Tangible

     equity to

     assets

     (5)            8.75         9.19        9.26        9.39        9.53

    Tangible

     common

     equity to

     assets

     (5)            6.35         6.78        6.91        7.13        7.37

    Tangible

     common

     equity to

     risk-

     weighted

     assets (5)     9.05         9.60        9.97       10.03       10.39

ASSET QUALITY *

  Non-

   performing

   loans       $ 179,094   $  217,766   $ 224,335   $ 280,802   $ 264,092

  Foreclosed

   properties    142,208      129,964     123,910     136,275     120,770

               ---------   ----------   ---------   ---------   ---------

    Total

     non-

     performing

     assets

     (NPAs)      321,302      347,730     348,245     417,077     384,862

  Allowance

   for loan

   losses        174,695      174,613     174,111     173,934     155,602

  Operating

   net

   charge-offs

   (1)            47,668       49,998      61,323      56,668      84,585

  Allowance

   for loan

   losses to

   loans            3.79 %       3.67 %      3.57 %      3.48 %      3.02 %

  Operating

   net

   charge-offs

   to average

   loans

   (1)(6)           4.03         4.12        4.98        4.51        6.37

  NPAs to

   loans and

   foreclosed

   properties       6.77         7.11        6.97        8.13        7.30

  NPAs to

   total

   assets           4.32         4.96        4.55        5.32        4.81

AVERAGE

 BALANCES ($

 in millions)

  Loans        $   4,768   $    4,896   $   5,011   $   5,173   $   5,357

  Investment

   securities      1,354        1,411       1,532       1,518       1,529

  Earning

   assets          6,680        6,676       6,854       7,085       7,487

  Total assets     7,338        7,522       7,704       7,946       8,287

  Deposits         6,294        6,257       6,375       6,570       6,835

  Shareholders'

   equity            649          855         912         945         989

  Common

   shares -

   basic

   (thousands)    94,918       94,679      94,524      94,390      94,219

  Common

   shares -

   diluted

   (thousands)    94,918       94,679      94,524      94,390      94,219

AT PERIOD END

 ($ in

 millions)

  Loans *      $   4,604   $    4,760   $   4,873   $   4,992   $   5,151

  Investment

   securities      1,490        1,310       1,488       1,527       1,530

  Total assets     7,443        7,013       7,652       7,837       8,000

  Deposits         6,469        5,999       6,330       6,488       6,628

  Shareholders'

   equity            636          662         904         926         962

  Common

   shares

   outstanding

   (thousands)    94,685       94,433      94,281      94,176      94,046



(1)  Excludes the partial reversal of a previously established provision

for fraud-related loan losses of $11.8 million, net of tax expense of $4.6

million in 2010.  Operating charge-offs also exclude the $11.8 million

related partial recovery of the previously charged off amount. (2) Excludes

the gain from acquisition of $11.4 million, (income tax expense of $4.3

million) in the second quarter of 2009 and revenue generated by

discontinued operations in all periods presented.  (3)  Excludes goodwill

impairment charges of $211 million in the third quarter of 2010 and  $25

million and $70 million in the third and first quarters of 2009,

respectively, severance costs of $2.9 million, (income tax benefit of $1.1

million) in the first quarter of 2009 and expenses relating to discontinued

operations for all periods presented.  (4)  Net loss available to common

shareholders, which is net of preferred stock dividends, divided by average

realized common equity, which excludes accumulated other comprehensive

income (loss).  (5)  Excludes effect of acquisition related intangibles and

associated amortization.  (6) Annualized.  (7)  Number of new shares issued

for shares currently held.



* Excludes loans and foreclosed properties covered by loss sharing

  agreements with the FDIC.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Selected Financial Information



                                           2010        2009      Fourth

                                        ---------   ---------    Quarter

(in thousands, except per share           Fourth      Fourth    2010-2009

data; taxable equivalent)                 Quarter     Quarter     Change

                                        ---------   ---------   ---------

INCOME SUMMARY

Interest revenue                        $  81,215   $  97,481

Interest expense                           21,083      33,552

                                        ---------   ---------

  Net interest revenue                     60,132      63,929          (6)%

Operating provision for loan losses (1)    47,750      90,000

Operating fee revenue (2)                  12,442      14,447         (14)

                                        ---------   ---------

  Total operating revenue (1)(2)           24,824     (11,624)

Operating expenses (3)                     64,918      60,126           8

Loss on sale of nonperforming assets            -           -

                                        ---------   ---------

  Operating loss from continuing

   operations before taxes                (40,094)    (71,750)         44

Operating income tax benefit              (16,520)    (31,687)

                                        ---------   ---------

  Net operating loss from continuing

   operations (1)(2)(3)                   (23,574)    (40,063)         41

Gain from acquisition, net of tax

 expense                                        -           -

Noncash goodwill impairment charges             -           -

Severance costs, net of tax benefit             -           -

Partial reversal of fraud loss

 provision, net of tax expense              7,179           -

(Loss) income from discontinued

 operations                                     -         228

Gain from sale of subsidiary, net of

 income taxes and selling costs                 -           -

                                        ---------   ---------

  Net loss                                (16,395)    (39,835)         59

Preferred dividends and discount

 accretion                                  2,586       2,567

                                        ---------   ---------

Net loss available to common

 shareholders                           $ (18,981)  $ (42,402)

                                        =========   =========

PERFORMANCE MEASURES

  Per common share:

    Diluted operating loss from

     continuing operations (1)(2)(3)    $    (.28)  $    (.45)         38

    Diluted loss from continuing

     operations                              (.20)       (.45)         56

    Diluted loss                             (.20)       (.45)         56

    Stock dividends declared (7)                -           -

    Book value                               4.84        8.36         (42)

    Tangible book value (5)                  4.76        6.02         (21)



  Key performance ratios:

    Return on equity (4)(6)                (17.16)%    (22.08)%

    Return on assets (6)                     (.89)      (1.91)

    Net interest margin (6)                  3.58        3.40

    Operating efficiency ratio from

     continuing operations (2)(3)           89.45       78.74

    Equity to assets                         8.85       11.94

    Tangible equity to assets (5)            8.75        9.53

    Tangible common equity to assets

     (5)                                     6.35        7.37

    Tangible common equity to

     risk-weighted assets (5)                9.05       10.39



ASSET QUALITY *

  Non-performing loans                  $ 179,094   $ 264,092

  Foreclosed properties                   142,208     120,770

                                        ---------   ---------

    Total non-performing assets (NPAs)    321,302     384,862

  Allowance for loan losses               174,695     155,602

  Operating net charge-offs (1)            47,668      84,585

  Allowance for loan losses to loans         3.79 %      3.02 %

  Operating net charge-offs to average

   loans (1)(6)                              4.03        6.37

  NPAs to loans and foreclosed

   properties                                6.77        7.30

  NPAs to total assets                       4.32        4.81



AVERAGE BALANCES ($ in millions)

  Loans                                 $   4,768   $   5,357         (11)

  Investment securities                     1,354       1,529         (11)

  Earning assets                            6,680       7,487         (11)

  Total assets                              7,338       8,287         (11)

  Deposits                                  6,294       6,835          (8)

  Shareholders' equity                        649         989         (34)

  Common shares - basic (thousands)        94,918      94,219

  Common shares - diluted (thousands)      94,918      94,219



AT PERIOD END ($ in millions)

  Loans *                               $   4,604   $   5,151         (11)

  Investment securities                     1,490       1,530          (3)

  Total assets                              7,443       8,000          (7)

  Deposits                                  6,469       6,628          (2)

  Shareholders' equity                        636         962         (34)

  Common shares outstanding (thousands)    94,685      94,046



(1)  Excludes the partial reversal of a previously established provision

for fraud-related loan losses of $11.8 million, net of tax expense of $4.6

million in 2010.  Operating charge-offs also exclude the $11.8 million

related partial recovery of the previously charged off amount. (2) Excludes

the gain from acquisition of $11.4 million, (income tax expense of $4.3

million) in the second quarter of 2009 and revenue generated by

discontinued operations in all periods presented.  (3)  Excludes goodwill

impairment charges of $211 million in the third quarter of 2010 and  $25

million and $70 million in the third and first quarters of 2009,

respectively, severance costs of $2.9 million, (income tax benefit of $1.1

million) in the first quarter of 2009 and expenses relating to discontinued

operations for all periods presented.  (4)  Net loss available to common

shareholders, which is net of preferred stock dividends, divided by average

realized common equity, which excludes accumulated other comprehensive

income (loss).  (5)  Excludes effect of acquisition related intangibles and

associated amortization.  (6) Annualized.  (7)  Number of new shares issued

for shares currently held.



* Excludes loans and foreclosed properties covered by loss sharing

  agreements with the FDIC.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Selected Financial Information



                                            For the Twelve

(in thousands, except per share              Months Ended          YTD

                                        ---------------------   2010-2009

data; taxable equivalent)                  2010        2009       Change

                                        ---------   ---------   ---------

INCOME SUMMARY

Interest revenue                        $ 343,123   $ 404,961

Interest expense                          100,071     159,734

                                        ---------   ---------

    Net interest revenue                  243,052     245,227          (1)%

Operating provision for loan losses (1)   234,750     310,000

Operating fee revenue (2)                  48,548      50,964          (5)

                                        ---------   ---------

    Total operating revenue (1)(2)         56,850     (13,809)

Operating expenses (3)                    242,952     217,050          12

Loss on sale of nonperforming assets       45,349           -

                                        ---------   ---------

 Operating loss from continuing

  operations before taxes                (231,451)   (230,859)

Operating income tax benefit              (88,062)    (91,754)

                                        ---------   ---------

 Net operating loss from continuing

  operations (1)(2)(3)                   (143,389)   (139,105)         (3)

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)

Partial reversal of fraud loss

 provision, net of tax expense              7,179           -

(Loss) income from discontinued

 operations                                  (101)        513

Gain from sale of subsidiary, net of

 income taxes and selling costs             1,266           -

                                        ---------   ---------

  Net loss                               (345,635)   (228,327)        (51)

Preferred dividends and discount

 accretion                                 10,316      10,242

                                        ---------   ---------

Net loss available to common

 shareholders                           $(355,951)  $(238,569)

                                        =========   =========

PERFORMANCE MEASURES

  Per common share:

    Diluted operating loss from

     continuing operations (1)(2)(3)    $   (1.62)  $   (2.47)         34

    Diluted loss from continuing

     operations                             (3.77)      (3.96)          5

    Diluted loss                            (3.76)      (3.95)          5

    Stock dividends declared (7)                -   3 for 130

    Book value                               4.84        8.36         (42)

    Tangible book value (5)                  4.76        6.02         (21)



  Key performance ratios:

    Return on equity (4)(6)                (57.08)%    (34.40)%

    Return on assets (6)                    (4.53)      (2.76)

    Net interest margin (6)                  3.56        3.29

    Operating efficiency ratio from

     continuing operations (2)(3)           98.98       73.97

    Equity to assets                        11.01       11.12

    Tangible equity to assets (5)            9.15        8.33

    Tangible common equity to assets

     (5)                                     6.80        6.15

    Tangible common equity to

     risk-weighted assets (5)                9.05       10.39



ASSET QUALITY *

  Non-performing loans                  $ 179,094   $ 264,092

  Foreclosed properties                   142,208     120,770

                                        ---------   ---------

    Total non-performing assets (NPAs)    321,302     384,862

  Allowance for loan losses               174,695     155,602

  Operating net charge-offs (1)           215,657     276,669

  Allowance for loan losses to loans         3.79 %      3.02 %

  Operating net charge-offs to average

   loans (1)(6)                              4.42        5.03

  NPAs to loans and foreclosed

   properties                                6.77        7.30

  NPAs to total assets                       4.32        4.81



AVERAGE BALANCES ($ in millions)

  Loans                                 $   4,961   $   5,548         (11)

  Investment securities                     1,453       1,656         (12)

  Earning assets                            6,822       7,465          (9)

  Total assets                              7,626       8,269          (8)

  Deposits                                  6,373       6,713          (5)

  Shareholders' equity                        840         920          (9)

  Common shares - basic (thousands)        94,624      60,374

  Common shares - diluted (thousands)      94,624      60,374



AT PERIOD END ($ in millions)

  Loans *                               $   4,604   $   5,151         (11)

  Investment securities                     1,490       1,530          (3)

  Total assets                              7,443       8,000          (7)

  Deposits                                  6,469       6,628          (2)

  Shareholders' equity                        636         962         (34)

  Common shares outstanding (thousands)    94,685      94,046



(1)  Excludes the partial reversal of a previously established provision

for fraud-related loan losses of $11.8 million, net of tax expense of $4.6

million in 2010.  Operating charge-offs also exclude the $11.8 million

related partial recovery of the previously charged off amount. (2) Excludes

the gain from acquisition of $11.4 million, (income tax expense of $4.3

million) in the second quarter of 2009 and revenue generated by

discontinued operations in all periods presented.  (3)  Excludes goodwill

impairment charges of $211 million in the third quarter of 2010 and  $25

million and $70 million in the third and first quarters of 2009,

respectively, severance costs of $2.9 million, (income tax benefit of $1.1

million) in the first quarter of 2009 and expenses relating to discontinued

operations for all periods presented.  (4)  Net loss available to common

shareholders, which is net of preferred stock dividends, divided by average

realized common equity, which excludes accumulated other comprehensive

income (loss).  (5)  Excludes effect of acquisition related intangibles and

associated amortization.  (6) Annualized.  (7)  Number of new shares issued

for shares currently held.



* Excludes loans and foreclosed properties covered by loss sharing

  agreements with the FDIC.









UNITED COMMUNITY BANKS, INC.

Selected Financial Information



                                For the Years Ended December 31,

(in thousands,      ------------------------------------------------------

 except per share

 data; taxable

 equivalent)           2010         2009       2008        2007      2006

                    ---------   ---------   ---------   --------  --------

 INCOME SUMMARY

Net interest

 revenue            $ 243,052   $ 245,227   $ 238,704   $274,483  $237,880

Operating provision

 for loan losses (1)  234,750     310,000     184,000     37,600    14,600

Operating fee

 revenue (2)           48,548      50,964      46,081     53,701    41,671

                    ---------   ---------   ---------   --------  --------

   Total operating

    revenue (1)(2)     56,850     (13,809)    100,785    290,584   264,951

Operating

 expenses (3)         242,952     217,050     200,335    181,730   155,306

Loss on sale of

 nonperforming

 assets                45,349           -           -          -         -

                    ---------   ---------   ---------   --------  --------

    Operating

     (loss) income

     from continuing

     operations

     before taxes    (231,451)   (230,859)    (99,550)   108,854   109,645

Operating income

 taxes                (88,062)    (91,754)    (35,651)    40,266    41,249

                    ---------   ---------   ---------   --------  --------

   Net operating

    (loss) income

    from continuing

    operations       (143,389)   (139,105)    (63,899)    68,588    68,396

Gain from acquisition,

 net of tax                 -       7,062           -          -         -

Noncash goodwill

 impairment charges  (210,590)    (95,000)          -          -         -

Severance cost, net

 of tax benefit             -      (1,797)          -          -         -

Fraud loss

 provision and

 subsequent

 recovery, net of

 tax benefit            7,179           -           -    (10,998)        -

Net (loss) income

 from discontinued

 operations              (101)        513         449        403       419

Gain from sale of

 subsidiary, net of

 income taxes and

 selling costs          1,266           -           -          -         -

                    ---------   ---------   ---------   --------  --------

   Net (loss)

    income           (345,635)   (228,327)    (63,450)    57,993    68,815

Preferred dividends

 and discount

 accretion             10,316      10,242         724         18        19

                    ---------   ---------   ---------   --------  --------

   Net (loss)

    income available

    to common

    shareholders    $(355,951)  $(238,569)  $ (64,174)  $ 57,975  $ 68,796

                    =========   =========   =========   ========  ========

PERFORMANCE

 MEASURES

  Per common share:

    Diluted operating

     (loss) earnings

      from continuing

      operations

     (1)(2)(3)      $   (1.62)  $   (2.47)  $   (1.36)  $   1.47  $   1.65

    Diluted (loss)

     earnings from

     continuing

     operations         (3.77)      (3.96)      (1.36)      1.24      1.65

    Diluted (loss)

     earnings           (3.76)      (3.95)      (1.35)      1.24      1.66

    Cash dividends

     declared

     (rounded)              -           -         .18        .36       .32

    Stock dividends

     declared (6)           -   3 for 130   2 for 130          -         -

    Book value           4.84        8.36       16.95      17.73     14.37

    Tangible book

     value (5)           4.76        6.02       10.39      10.94     10.57

  Key performance

   ratios:

    Return on

     equity (4)        (57.08)%    (34.40)%     (7.82)%     7.79%    13.28%

    Return on

     assets             (4.53)      (2.76)       (.76)       .75      1.09

    Net interest

     margin              3.56        3.29        3.18       3.88      4.05

    Operating

     efficiency

     ratio from

     continuing

     operations

     (2)(3)             98.98       73.97       70.00      55.53     55.30

    Equity to assets    11.01       11.12       10.22       9.61      8.06

    Tangible equity

     to assets (5)       9.15        8.33        6.67       6.63      6.32

    Tangible common

     equity to

     assets (5)          6.80        6.15        6.57       6.63      6.32

    Tangible common

     equity to

     risk-weighted

     assets (5)          9.05       10.39        8.34       8.21      8.09

ASSET QUALITY *

  Non-performing

   loans            $ 179,094   $ 264,092   $ 190,723   $ 28,219  $ 12,458

  Foreclosed

   properties         142,208     120,770      59,768     18,039     1,196

                    ---------   ---------   ---------   --------  --------

     Total

      non-performing

      assets(NPAs)    321,302     384,862     250,491     46,258    13,654

   Allowance for

    loan losses       174,695     155,602     122,271     89,423    66,566

   Operating net

    charge-offs (1)   215,657     276,669     151,152     21,834     5,524

   Allowance for

    loan losses to

    loans                3.79 %      3.02 %      2.14 %     1.51%     1.24%

   Operating net

    charge-offs to

    average loans (1)    4.42        5.03        2.57        .38       .12

   NPAs to loans

    and foreclosed

    properties           6.77        7.30        4.35        .78       .25

   NPAs to total

    assets               4.32        4.81        2.92        .56       .19

AVERAGE BALANCES ($

 in millions)

   Loans            $   4,961   $   5,548   $   5,891   $  5,735  $  4,801

   Investment

    securities          1,453       1,656       1,489      1,278     1,042

   Earning assets       6,822       7,465       7,504      7,071     5,877

   Total assets         7,626       8,269       8,319      7,731     6,287

   Deposits             6,373       6,713       6,524      6,029     5,017

   Shareholders'

    equity                840         920         850        743       507

   Common shares -

    Basic

    (thousands)        94,624      60,374      47,369     45,948    40,413

   Common shares -

    Diluted

    (thousands)        94,624      60,374      47,369     46,593    41,575

AT YEAR END ($ in

 millions)

   Loans *          $   4,604   $   5,151   $   5,705   $  5,929  $  5,377

   Investment

    securities          1,490       1,530       1,617      1,357     1,107

   Total assets         7,443       8,000       8,592      8,207     7,101

   Deposits             6,469       6,628       7,004      6,076     5,773

   Shareholders'

    equity                636         962         989        832       617

   Common shares

    outstanding

    (thousands)        94,685      94,046      48,009     46,903    42,891



(1)  Excludes pre-tax provision for fraud-related loan losses and related

charge-offs of $18 million, net of income tax benefit of $7 million in 2007

and subsequent recovery of $11.8 million, net of tax expense of $4.6

million in 2010.  (2) Excludes the gain from acquisition of $11.4 million,

net of income tax expense of $4.3 million in 2009. (3) Excludes the

goodwill impairment charges of $211 million and $95 million in 2010 and

2009, respectively, and severance costs of $2.9 million, net of income tax

benefit of $1.1 million in 2009.  (4) Net (loss) income available to

common shareholders, which is net of preferred stock dividends, divided by

average realized common equity, which excludes accumulated other

comprehensive income (loss).  (5) Excludes effect of acquisition related

intangibles and associated amortization.  (6) Number of new shares issued

for shares currently held.



*  Excludes loans and foreclosed properties covered by loss sharing

   agreements with the FDIC.







UNITED COMMUNITY BANKS, INC.

Operating Earnings to GAAP Earnings Reconciliation

Selected Financial Information



                                        2010                       2009

                    -------------------------------------------  ---------

(in thousands,

 except per share

 data; taxable       Fourth      Third      Second      First      Fourth

 equivalent)         Quarter     Quarter    Quarter    Quarter    Quarter

                    ---------  ----------  ---------  ---------  ---------

Interest revenue

 reconciliation

Interest revenue -

 taxable equivalent $  81,215  $   84,360  $  87,699  $  89,849  $  97,481

Taxable equivalent

 adjustment              (497)       (511)      (500)      (493)      (601)

                    ---------  ----------  ---------  ---------  ---------

    Interest revenue

     (GAAP)         $  80,718  $   83,849  $  87,199  $  89,356  $  96,880

                    =========  ==========  =========  =========  =========

Net interest revenue

 reconciliation

Net interest revenue -

 taxable equivalent $  60,132  $   60,014  $  61,627  $  61,279  $  63,929

Taxable equivalent

 adjustment              (497)       (511)      (500)      (493)      (601)

                    ---------  ----------  ---------  ---------  ---------

    Net interest

     revenue (GAAP) $  59,635  $   59,503  $  61,127  $  60,786  $  63,328

                    =========  ==========  =========  =========  =========

Provision for loan

 losses reconciliation

Operating provision

 for loan losses    $  47,750  $   50,500  $  61,500  $  75,000  $  90,000

Provision for

 special fraud-related

 loan loss and partial

 recovery             (11,750)          -          -          -          -

                    ---------  ----------  ---------  ---------  ---------

    Provision for

     loan losses

     (GAAP)         $  36,000  $   50,500  $  61,500  $  75,000  $  90,000

                    =========  ==========  =========  =========  =========

Fee revenue

 reconciliation

Operating fee

 revenue            $  12,442  $   12,861  $  11,579  $  11,666  $  14,447

Gain from

 acquisition                -           -          -          -          -

                    ---------  ----------  ---------  ---------  ---------

    Fee revenue

     (GAAP)         $  12,442  $   12,861  $  11,579  $  11,666  $  14,447

                    =========  ==========  =========  =========  =========

Total revenue

 reconciliation

Total operating

 revenue            $  24,824  $   22,375  $  11,706  $  (2,055) $ (11,624)

Taxable equivalent

 adjustment              (497)       (511)      (500)      (493)      (601)

Gain from

 acquisition                -           -          -          -          -

Provision for

 special

 fraud-related loan

 loss and partial

 recovery              11,750           -          -          -          -

                    ---------  ----------  ---------  ---------  ---------

    Total revenue

     (GAAP)         $  36,077  $   21,864  $  11,206  $  (2,548) $ (12,225)

                    =========  ==========  =========  =========  =========

Expense

 reconciliation

Operating expense   $  64,918  $   64,906  $ 103,657  $  54,820  $  60,126

Noncash goodwill

 impairment charge          -     210,590          -          -          -

Severance costs             -           -          -          -          -

                    ---------  ----------  ---------  ---------  ---------

    Operating

     expense (GAAP) $  64,918  $  275,496  $ 103,657  $  54,820  $  60,126

                    =========  ==========  =========  =========  =========

(Loss) income from

 continuing

 operations before

 taxes

 reconciliation

Operating (loss)

 income from

 continuing

 operations before

 taxes              $ (40,094) $  (42,531) $ (91,951) $ (56,875) $ (71,750)

Taxable equivalent

 adjustment              (497)       (511)      (500)      (493)      (601)

Gain from

 acquisition                -           -          -          -          -

Noncash goodwill

 impairment charge          -    (210,590)         -          -          -

Severance costs             -           -          -          -          -

Provision for

 special

 fraud-related loan

 loss and partial

 recovery              11,750           -          -          -          -

                    ---------  ----------  ---------  ---------  ---------

    (Loss) income

     from continuing

     operations

     before taxes

     (GAAP)         $ (28,841) $ (253,632) $ (92,451) $ (57,368) $ (72,351)

                    =========  ==========  =========  =========  =========

Income tax

 (benefit) expense

 reconciliation

Operating income

 tax (benefit)

 expense            $ (16,520) $  (16,706) $ (32,419) $ (22,417) $ (31,687)

Taxable equivalent

 adjustment              (497)       (511)      (500)      (493)      (601)

Gain from

 acquisition, tax

 expense                    -           -          -          -          -

Severance costs,

 tax benefit                -           -          -          -          -

Provision for

 special

 fraud-related loan

 loss and partial

 recovery, tax          4,571           -          -          -          -

                    ---------  ----------  ---------  ---------  ---------

    Income tax

     (benefit)

     expense (GAAP) $ (12,446) $  (17,217) $ (32,919) $ (22,910) $ (32,288)

                    =========  ==========  =========  =========  =========

Diluted (loss)

 income from

 continuing

 operations per

 common share

 reconciliation

Diluted operating

 (loss) income from

 continuing

 operations per

 common share       $    (.28) $     (.30) $    (.66) $    (.39) $    (.45)

Gain from

 acquisition                -           -          -          -          -

Noncash goodwill

 impairment charge          -       (2.22)         -          -          -

Severance costs             -           -          -          -          -

Provision for

 special

 fraud-related loan

 loss and partial

 recovery                 .08           -          -          -          -

                    ---------  ----------  ---------  ---------  ---------

    Diluted (loss)

     income from

     continuing

     operations per

     common share

     (GAAP)         $    (.20) $    (2.52) $    (.66) $    (.39) $    (.45)

                    =========  ==========  =========  =========  =========

Book value per

 common share

 reconciliation

Tangible book value

 per common share   $    4.76  $     5.05  $    5.39  $    5.62  $    6.02

Effect of goodwill

 and other

 intangibles              .08         .09       2.32       2.33       2.34

                    ---------  ----------  ---------  ---------  ---------

   Book value per

    common share

    (GAAP)          $    4.84  $     5.14  $    7.71  $    7.95  $    8.36

                    =========  ==========  =========  =========  =========

Efficiency ratio

 from continuing

 operations

 reconciliation

Operating

 efficiency ratio

 from continuing

 operations             89.45%      89.38%    141.60%     75.22%     78.74%

Gain from

 acquisition                -           -          -          -          -

Noncash goodwill

 impairment charge          -      290.00          -          -          -

Severance costs             -           -          -          -          -

                    ---------  ----------  ---------  ---------  ---------

    Efficiency

     ratio from

     continuing

     operations

     (GAAP)             89.45%     379.38%    141.60%     75.22%     78.74%

                    =========  ==========  =========  =========  =========

Average equity to

 assets

 reconciliation

Tangible common

 equity to assets        6.35%       6.78%      6.91%      7.13%      7.37%

Effect of preferred

 equity                  2.40        2.41       2.35       2.26       2.16

                    ---------  ----------  ---------  ---------  ---------

    Tangible equity

     to assets           8.75        9.19       9.26       9.39       9.53

Effect of goodwill

 and other

 intangibles              .10        2.18       2.58       2.51       2.41

                    ---------  ----------  ---------  ---------  ---------

    Equity to

     assets (GAAP)       8.85%      11.37%     11.84%     11.90%     11.94%

                    =========  ==========  =========  =========  =========

Actual tangible

 common equity to

 risk-weighted

 assets

 reconciliation

Tangible common

 equity to

 risk-weighted

 assets                  9.05%       9.60%      9.97%     10.03%     10.39%

Effect of other

 comprehensive

 income                  (.62)       (.81)      (.87)      (.85)      (.87)

Effect of deferred

 tax limitation         (3.34)      (2.94)     (2.47)     (1.75)     (1.27)

Effect of trust

 preferred               1.06        1.06       1.03       1.00        .97

Effect of preferred

 equity                  3.52        3.51       3.41       3.29       3.19

                    ---------  ----------  ---------  ---------  ---------

    Tier I capital

     ratio(Regulatory)   9.67%      10.42%     11.07%     11.72%     12.41%

                    =========  ==========  =========  =========  =========

Net charge-offs

 reconciliation

Operating net

 charge-offs        $  47,668  $   49,998  $  61,323  $  56,668  $  84,585

Fraud related

 charge-offs and

 subsequent partial

 recovery             (11,750)          -          -          -          -

                    ---------  ----------  ---------  ---------  ---------

    Net charge-offs

     (GAAP)         $  35,918  $   49,998  $  61,323  $  56,668  $  84,585

                    =========  ==========  =========  =========  =========

Net charge-offs to

 average loans

 reconciliation

Operating net

 charge-offs to

 average loans           4.03%       4.12%      4.98%      4.51%      6.37%

Effect of fraud

 related charge

 offs and

 subsequent partial

 recovery               (1.00)          -          -          -          -

                    ---------  ----------  ---------  ---------  ---------

    Net charge-offs

     to average

     loans (GAAP)        3.03%       4.12%      4.98%      4.51%      6.37%

                    =========  ==========  =========  =========  =========









UNITED COMMUNITY BANKS, INC.

Operating Earnings to GAAP Earnings Reconciliation

Selected Financial Information







(in thousands,

 except per share                 For the Twelve Months Ended

                    ------------------------------------------------------

data; taxable

 equivalent)           2010        2009        2008       2007      2006

                    ----------  ----------  ----------  --------  --------

Interest revenue

 reconciliation

Interest revenue -

 taxable equivalent $  343,123  $  404,961  $  466,969  $550,917  $446,695

Taxable equivalent

 adjustment             (2,001)     (2,132)     (2,261)   (1,881)   (1,868)

                    ----------  ----------  ----------  --------  --------

    Interest

     revenue (GAAP) $  341,122  $  402,829  $  464,708  $549,036  $444,827

                    ==========  ==========  ==========  ========  ========

Net interest

 revenue

 reconciliation

Net interest

 revenue - taxable

 equivalent         $  243,052  $  245,227  $  238,704  $274,483  $237,880

Taxable equivalent

 adjustment             (2,001)     (2,132)     (2,261)   (1,881)   (1,868)

                    ----------  ----------  ----------  --------  --------

    Net interest

     revenue (GAAP) $  241,051  $  243,095  $  236,443  $272,602  $236,012

                    ==========  ==========  ==========  ========  ========

Provision for loan

 losses

 reconciliation

Operating provision

 for loan losses    $  234,750  $  310,000  $  184,000  $ 37,600  $ 14,600

Provision for

 special

 fraud-related loan

 loss and partial

 recovery              (11,750)          -           -    18,000         -

                    ----------  ----------  ----------  --------  --------

    Provision for

     loan losses

     (GAAP)         $  223,000  $  310,000  $  184,000  $ 55,600  $ 14,600

                    ==========  ==========  ==========  ========  ========

Fee revenue

 reconciliation

Operating fee

 revenue            $   48,548  $   50,964  $   46,081  $ 53,701  $ 41,671

Gain from

 acquisition                 -      11,390           -         -         -

                    ----------  ----------  ----------  --------  --------

    Fee revenue

     (GAAP)         $   48,548  $   62,354  $   46,081  $ 53,701  $ 41,671

                    ==========  ==========  ==========  ========  ========

Total revenue

 reconciliation

Total operating

 revenue            $   56,850  $  (13,809) $  100,785  $290,584  $264,951

Taxable equivalent

 adjustment             (2,001)     (2,132)     (2,261)   (1,881)   (1,868)

Gain from

 acquisition                 -      11,390           -         -         -

Provision for

 special fraud-

 related loan

 loss and partial

 recovery               11,750           -           -   (18,000)        -

                    ----------  ----------  ----------  --------  --------

    Total revenue

     (GAAP)         $   66,599  $   (4,551) $   98,524  $270,703  $263,083

                    ==========  ==========  ==========  ========  ========

Expense

 reconciliation

Operating expense   $  288,301  $  217,050  $  200,335  $181,730  $155,306

Noncash goodwill

 impairment charge     210,590      95,000           -         -         -

Severance costs              -       2,898           -         -         -

                    ----------  ----------  ----------  --------  --------

    Operating

     expense (GAAP) $  498,891  $  314,948  $  200,335  $181,730  $155,306

                    ==========  ==========  ==========  ========  ========

(Loss) income from

 continuing

 operations before

 taxes reconciliation

Operating (loss)

 income from

 continuing

 operations before

 taxes              $ (231,451) $ (230,859) $  (99,550) $108,854  $109,645

Taxable equivalent

 adjustment             (2,001)     (2,132)     (2,261)   (1,881)   (1,868)

Gain from

 acquisition                 -      11,390           -         -         -

Noncash goodwill

 impairment charge    (210,590)    (95,000)          -         -         -

Severance costs              -      (2,898)          -         -         -

Provision for

 special

 fraud-related loan

 loss and partial

 recovery               11,750           -           -   (18,000)        -

                    ----------  ----------  ----------  --------  --------

    (Loss) income

     from continuing

     operations

     before taxes

     (GAAP)         $ (432,292) $ (319,499) $ (101,811) $ 88,973  $107,777

                    ==========  ==========  ==========  ========  ========

Income tax

 (benefit) expense

 reconciliation

Operating income

 tax (benefit)

 expense            $  (88,062) $  (91,754) $  (35,651) $ 40,266  $ 41,249

Taxable equivalent

 adjustment             (2,001)     (2,132)     (2,261)   (1,881)   (1,868)

Gain from

 acquisition, tax

 expense                     -       4,328           -         -         -

Severance costs,

 tax benefit                 -      (1,101)          -         -         -

Provision for

 special

 fraud-related loan

 loss and partial

 recovery, tax           4,571           -           -    (7,002)        -

                    ----------  ----------  ----------  --------  --------

    Income tax

     (benefit)

     expense (GAAP) $  (85,492) $  (90,659) $  (37,912) $ 31,383  $ 39,381

                    ==========  ==========  ==========  ========  ========

Diluted (loss)

 income from

 continuing

 operations per

 common share

 reconciliation

Diluted operating

 (loss) income from

 continuing

 operations per

 common share       $    (1.62) $    (2.47) $    (1.36) $   1.47  $   1.65

Gain from

 acquisition                 -         .12           -         -         -

Noncash goodwill

 impairment charge       (2.23)      (1.58)          -         -         -

Severance costs              -        (.03)          -         -         -

Provision for

 special

 fraud-related loan

 loss and partial

 recovery                  .08           -           -      (.23)        -

                    ----------  ----------  ----------  --------  --------

    Diluted (loss)

     income from

     continuing

     operations per

     common share

     (GAAP)         $    (3.77) $    (3.96) $    (1.36) $   1.24  $   1.65

                    ==========  ==========  ==========  ========  ========

Book value per

 common share

 reconciliation

Tangible book value

 per common share   $     4.76  $     6.02  $    10.39  $  10.94  $  10.57

Effect of goodwill

 and other

 intangibles               .08        2.34        6.56      6.79      3.80

                    ----------  ----------  ----------  --------  --------

   Book value per

    common share

    (GAAP)          $     4.84  $     8.36  $    16.95  $  17.73  $  14.37

                    ==========  ==========  ==========  ========  ========

Efficiency ratio

 from continuing

 operations

 reconciliation

Operating

 efficiency ratio

 from continuing

 operations              98.98%      73.97%      70.00%    55.53%    55.30%

Gain from

 acquisition                 -       (2.77)          -         -         -

Noncash goodwill

 impairment charge       72.29       31.17           -         -         -

Severance costs              -         .95           -         -         -

                    ----------  ----------  ----------  --------  --------

    Efficiency

     ratio from

     continuing

     operations

     (GAAP)             171.27%     103.32%      70.00%    55.53%    55.30%

                    ==========  ==========  ==========  ========  ========

Average equity to

 assets

 reconciliation

Tangible common

 equity to assets         6.80%       6.15%       6.57%     6.63%     6.32%

Effect of preferred

 equity                   2.35        2.18         .10         -         -

                    ----------  ----------  ----------  --------  --------

    Tangible equity

     to assets            9.15        8.33        6.67      6.63      6.32

Effect of goodwill

 and other

 intangibles              1.86        2.79        3.55      2.98      1.74

                    ----------  ----------  ----------  --------  --------

    Equity to

     assets (GAAP)       11.01%      11.12%      10.22%     9.61%     8.06%

                    ==========  ==========  ==========  ========  ========

Actual tangible

 common equity to

 risk-weighted

 assets

 reconciliation

Tangible common

 equity to

 risk-weighted

 assets                   9.05%      10.39%       8.34%     8.21%     8.09%

Effect of other

 comprehensive

 income                   (.62)       (.87)       (.91)     (.23)      .07

Effect of deferred

 tax limitation          (3.34)      (1.27)          -         -         -

Effect of trust

 preferred                1.06         .97         .88       .65       .81

Effect of preferred

 equity                   3.52        3.19        2.90         -       .01

                    ----------  ----------  ----------  --------  --------

    Tier I capital

     ratio

     (Regulatory)         9.67%      12.41%      11.21%     8.63%     8.98%

                    ==========  ==========  ==========  ========  ========

Net charge-offs

 reconciliation

Operating net

 charge-offs        $  215,657  $  276,669  $  151,152  $ 21,834  $  5,524

Fraud related

 charge-offs and

 subsequent partial

 recovery              (11,750)          -           -    18,000         -

                    ----------  ----------  ----------  --------  --------

    Net charge-offs

     (GAAP)         $  203,907  $  276,669  $  151,152  $ 39,834  $  5,524

                    ==========  ==========  ==========  ========  ========

Net charge-offs to

 average loans

 reconciliation

Operating net

 charge-offs to

 average loans            4.42%       5.03%       2.57%      .38%      .12%

Effect of fraud

 related charge

 offs and

 subsequent partial

 recovery                 (.25)          -           -       .31         -

                    ----------  ----------  ----------  --------  --------

    Net charge-offs

     to average

     loans (GAAP)         4.17%       5.03%       2.57%      .69%      .12%

                    ==========  ==========  ==========  ========  ========









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Period-End (1)



                                              2010                   2009

                               ----------------------------------- --------

                               Fourth    Third   Second    First   Fourth

(in millions)                  Quarter  Quarter  Quarter  Quarter  Quarter

                               -------- -------- -------- -------- --------

LOANS BY CATEGORY

Commercial (sec. by RE)        $  1,761 $  1,781 $  1,780 $  1,765 $  1,779

Commercial construction             297      310      342      357      363

Commercial & industrial             441      456      441      381      390

                               -------- -------- -------- -------- --------

    Total commercial              2,499    2,547    2,563    2,503    2,532

Residential construction            695      764      820      960    1,050

Residential mortgage              1,279    1,316    1,356    1,390    1,427

Consumer / installment              131      133      134      139      142

                               -------- -------- -------- -------- --------

    Total loans                $  4,604 $  4,760 $  4,873 $  4,992 $  5,151

                               ======== ======== ======== ======== ========





LOANS BY MARKET

Atlanta MSA                    $  1,310 $  1,365 $  1,373 $  1,404 $  1,435

Gainesville MSA                     312      316      343      372      390

North Georgia                     1,689    1,755    1,808    1,814    1,884

Western North Carolina              702      719      738      756      772

Coastal Georgia                     335      345      356      388      405

East Tennessee                      256      260      255      258      265

                               -------- -------- -------- -------- --------

    Total loans                $  4,604 $  4,760 $  4,873 $  4,992 $  5,151

                               ======== ======== ======== ======== ========





RESIDENTIAL CONSTRUCTION

Dirt loans

  Acquisition & development    $    174 $    190 $    214 $    290 $    332

  Land loans                         99      104      110      124      127

  Lot loans                         275      303      311      321      336

                               -------- -------- -------- -------- --------

    Total                           548      597      635      735      795

                               -------- -------- -------- -------- --------



House loans

  Spec                               97      109      125      153      178

  Sold                               50       58       60       72       77

                               -------- -------- -------- -------- --------

    Total                           147      167      185      225      255

                               -------- -------- -------- -------- --------

Total residential construction $    695 $    764 $    820 $    960 $  1,050

                               ======== ======== ======== ======== ========





RESIDENTIAL CONSTRUCTION -

 ATLANTA MSA

Dirt loans

  Acquisition & development    $     30 $     34 $     40 $     66 $     76

  Land loans                         23       27       32       43       43

  Lot loans                          32       45       39       47       52

                               -------- -------- -------- -------- --------

    Total                            85      106      111      156      171

                               -------- -------- -------- -------- --------



House loans

  Spec                               38       42       48       58       68

  Sold                               10       11       10       14       16

                               -------- -------- -------- -------- --------

    Total                            48       53       58       72       84

                               -------- -------- -------- -------- --------

Total residential construction $    133 $    159 $    169 $    228 $    255

                               ======== ======== ======== ======== ========



(1)  Excludes total loans of $68.2 million, $75.2 million, $80.8 million,

$79.5 million and $85.1 million as of December 31, 2010, September 30,

2010, June 30, 2010, March 31, 2010 and December 31, 2009, respectively,

that are covered by the loss-sharing agreement with the FDIC, related to

the acquisition of Southern Community Bank.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Period-End (1)



                                     2010          2009             Year

                               ----------------- -------- Linked    over

                               Fourth    Third   Fourth   Quarter   Year

(in millions)                  Quarter  Quarter  Quarter  Change   Change

                               -------- -------- -------- -------  -------

LOANS BY CATEGORY

Commercial (sec. by RE)        $  1,761 $  1,781 $  1,779 $   (20) $   (18)

Commercial construction             297      310      363     (13)     (66)

Commercial & industrial             441      456      390     (15)      51

                               -------- -------- --------

    Total commercial              2,499    2,547    2,532     (48)     (33)

Residential construction            695      764    1,050     (69)    (355)

Residential mortgage              1,279    1,316    1,427     (37)    (148)

Consumer / installment              131      133      142      (2)     (11)

                               -------- -------- --------

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

                               ======== ======== ========





LOANS BY MARKET

Atlanta MSA                    $  1,310 $  1,365 $  1,435     (55)    (125)

Gainesville MSA                     312      316      390      (4)     (78)

North Georgia                     1,689    1,755    1,884     (66)    (195)

Western North Carolina              702      719      772     (17)     (70)

Coastal Georgia                     335      345      405     (10)     (70)

East Tennessee                      256      260      265      (4)      (9)

                               -------- -------- --------

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

                               ======== ======== ========





RESIDENTIAL CONSTRUCTION

Dirt loans

  Acquisition & development    $    174 $    190 $    332     (16)    (158)

  Land loans                         99      104      127      (5)     (28)

  Lot loans                         275      303      336     (28)     (61)

                               -------- -------- --------

    Total                           548      597      795     (49)    (247)

                               -------- -------- --------



House loans

  Spec                               97      109      178     (12)     (81)

  Sold                               50       58       77      (8)     (27)

                               -------- -------- --------

    Total                           147      167      255     (20)    (108)

                               -------- -------- --------

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

                               ======== ======== ========





RESIDENTIAL CONSTRUCTION -

 ATLANTA MSA

Dirt loans

  Acquisition & development    $     30 $     34 $     76      (4)     (46)

  Land loans                         23       27       43      (4)     (20)

  Lot loans                          32       45       52     (13)     (20)

                               -------- -------- --------

    Total                            85      106      171     (21)     (86)

                               -------- -------- --------



House loans

  Spec                               38       42       68      (4)     (30)

  Sold                               10       11       16      (1)      (6)

                               -------- -------- --------

   Total                             48       53       84      (5)     (36)

                               -------- -------- --------

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

                               ======== ======== ========



(1)  Excludes total loans of $68.2 million, $75.2 million, $80.8 million,

$79.5 million and $85.1 million as of December 31, 2010, September 30,

2010, June 30, 2010, March 31, 2010 and December 31, 2009, respectively,

that are covered by the loss-sharing









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Year-End (1)



(in millions)                    2010     2009     2008     2007     2006

                               -------- -------- -------- -------- --------

LOANS BY CATEGORY

Commercial (sec. by RE)        $  1,761 $  1,779 $  1,627 $  1,476 $  1,230

Commercial construction             297      363      500      527      469

Commercial & industrial             441      390      410      418      296

                               -------- -------- -------- -------- --------

    Total commercial              2,499    2,532    2,537    2,421    1,995

Residential construction            695    1,050    1,479    1,829    1,864

Residential mortgage              1,279    1,427    1,526    1,502    1,338

Consumer / installment              131      142      163      177      180

                               -------- -------- -------- -------- --------

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

                               ======== ======== ======== ======== ========





LOANS BY MARKET

Atlanta MSA                    $  1,310 $  1,435 $  1,706 $  2,002 $  1,651

Gainesville MSA                     312      390      420      399      354

North Georgia                     1,689    1,884    2,040    2,060    2,034

Western North Carolina              702      772      810      806      773

Coastal Georgia                     335      405      464      416      358

East Tennessee                      256      265      265      246      207

                               -------- -------- -------- -------- --------

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

                               ======== ======== ======== ======== ========



(1)  Excludes total loans of $68.2 million and $85.1 million as of December

31, 2010 and 2009, respectively, that are covered by the loss-sharing

agreement with the FDIC, related to the acquisition of Southern Community

Bank.







UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality (1)

                                             Fourth Quarter 2010

                                   ---------------------------------------

                                        Non-

                                     performing   Foreclosed      Total

(in thousands)                         Loans      Properties       NPAs

                                   -------------  -----------  -----------

NPAs BY CATEGORY

Commercial (sec. by RE)            $      44,927  $    23,659  $    68,586

Commercial construction                   21,374       17,808       39,182

Commercial & industrial                    5,611            -        5,611

                                   -------------  -----------  -----------

  Total commercial                        71,912       41,467      113,379

Residential construction                  54,505       78,231      132,736

Residential mortgage                      51,083       22,510       73,593

Consumer / installment                     1,594            -        1,594

                                   -------------  -----------  -----------

  Total NPAs                       $     179,094  $   142,208  $   321,302

                                   =============  ===========  ===========

    Balance as a % of Unpaid

     Principal                              67.2%        64.4%        65.9%



NPAs BY MARKET

Atlanta MSA                        $      48,289  $    41,154  $    89,443

Gainesville MSA                            5,171        9,273       14,444

North Georgia                             83,551       66,211      149,762

Western North Carolina                    25,832       11,553       37,385

Coastal Georgia                           11,145       11,901       23,046

East Tennessee                             5,106        2,116        7,222

                                   -------------  -----------  -----------

  Total NPAs                       $     179,094  $   142,208  $   321,302

                                   =============  ===========  ===========





NPA ACTIVITY

Beginning Balance                  $     217,766  $   129,964  $   347,730

Loans placed on non-accrual               81,023            -       81,023

Payments received                         (7,250)           -       (7,250)

Loan charge-offs                         (47,913)           -      (47,913)

Foreclosures                             (61,432)      61,432            -

Capitalized costs                              -          170          170

Note / property sales                     (3,100)     (33,509)     (36,609)

Write downs                                    -       (8,031)      (8,031)

Net losses on sales                            -       (7,818)      (7,818)

                                   -------------  -----------  -----------

  Ending Balance                   $     179,094  $   142,208  $   321,302

                                   =============  ===========  ===========



(1)  Excludes non-performing loans and foreclosed properties covered by the

loss-sharing agreement with the FDIC, related to the acquisition of

Southern Community Bank.







UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality (1)





                                                Third Quarter 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

                                        ==========  ==========  ==========

     Balance as a % of

          Unpaid Principal                    70.0%       65.9%       68.4%



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

                                        ==========  ==========  ==========





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.









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.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality (1)







                       Fourth Quarter     Third Quarter    Second Quarter

                          2010 (3)            2010              2010

                      ----------------- ----------------- -----------------

                                 Net               Net               Net

                               Charge-           Charge-           Charge-

                               Offs to           Offs to           Offs to

                        Net    Average    Net    Average    Net    Average

                      Charge-   Loans   Charge-   Loans   Charge-   Loans

(in thousands)          Offs     (2)      Offs     (2)      Offs     (2)

                      -------- -------  -------- -------  -------- -------

NET CHARGE-OFFS BY

 CATEGORY

Commercial (sec. by

 RE)                  $  6,493    1.45% $ 14,212    3.16% $  9,757    2.21%

Commercial

 construction            3,924    5.12     1,972    2.40     1,460    1.67

Commercial &

 industrial              2,891    2.54     1,207    1.07       867     .85

                      --------          --------          --------

  Total commercial      13,308    2.09    17,391    2.70    12,084    1.91

Residential

 construction           24,497   13.28    23,934   11.99    41,515   18.71

Residential mortgage     9,176    2.80     7,695    2.29     6,517    1.90

Consumer /

 installment               687    2.06       978    2.90     1,207    3.53

                      --------          --------          --------

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

                      ========          ========          ========





NET CHARGE-OFFS BY

 MARKET

Atlanta MSA           $ 15,222    4.48% $ 13,753    3.97% $ 16,926    4.85%

Gainesville MSA          3,434    4.37     1,143    1.40     2,547    3.01

North Georgia           18,537    4.26    26,554    5.92    28,100    6.19

Western North

 Carolina                5,154    2.87     5,509    2.99     7,194    3.86

Coastal Georgia          3,670    4.27     2,702    3.05     5,581    6.07

East Tennessee           1,651    2.53       337     .52       975    1.53

                      --------          --------          --------

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

                      ========          ========          ========



(1)  Excludes non-performing loans and foreclosed properties covered by the

     loss-sharing agreement with the FDIC, related to the acquisition of

     Southern Community Bank.

(2)  Annualized.

(3)  North Carolina residential construction net charge offs for the fourth

     quarter of 2010 exclude a $11.8 million partial recovery of a 2007

     fraud-related charge-off.







UNITED COMMUNITY BANKS, INC.

Consolidated Statement of Income (Unaudited)





                                                       Three Months Ended

                                                         December 31,

                                                     ---------------------

(in thousands, except per share data)                  2010        2009

                                                     ---------   ---------

Interest revenue:

  Loans, including fees                              $  66,659   $  78,064

  Investment securities, including tax exempt of

   $251 and $336                                        13,215      17,313

  Federal funds sold, commercial paper and deposits

   in banks                                                844       1,503

                                                     ---------   ---------

      Total interest revenue                            80,718      96,880

                                                     ---------   ---------

Interest expense:

  Deposits:

    NOW                                                  1,662       2,315

    Money market                                         2,036       2,328

    Savings                                                 81         105

    Time                                                12,868      24,026

                                                     ---------   ---------

      Total deposit interest expense                    16,647      28,774

  Federal funds purchased, repurchase agreements

   and other short-term borrowings                       1,073       1,081

  Federal Home Loan Bank advances                          608       1,045

  Long-term debt                                         2,755       2,652

                                                     ---------   ---------

    Total interest expense                              21,083      33,552

                                                     ---------   ---------

    Net interest revenue                                59,635      63,328

  Provision for loan losses                             36,000      90,000

                                                     ---------   ---------

    Net interest revenue after provision for loan

     losses                                             23,635     (26,672)

                                                     ---------   ---------

Fee revenue:

  Service charges and fees                               7,039       8,257

  Mortgage loan and other related fees                   1,868       1,651

  Brokerage fees                                           778         443

  Securities gains, net                                      -       2,015

  Gain from acquisition                                      -           -

  Losses from prepayment of borrowings                       -           -

  Other                                                  2,757       2,081

                                                     ---------   ---------

    Total fee revenue                                   12,442      14,447

                                                     ---------   ---------

    Total revenue                                       36,077     (12,225)

                                                     ---------   ---------

Operating expenses:

  Salaries and employee benefits                        23,777      24,061

  Communications and equipment                           3,377       3,819

  Occupancy                                              4,024       4,003

  Advertising and public relations                       1,102         958

  Postage, printing and supplies                         1,063       1,307

  Professional fees                                      3,016       2,646

  Foreclosed property                                   20,602      14,391

  FDIC assessments and other regulatory charges          3,299       3,711

  Amortization of intangibles                              771         813

  Other                                                  3,887       4,417

  Loss on sale of nonperforming assets                       -           -

  Goodwill impairment                                        -           -

  Severance costs                                            -           -

                                                     ---------   ---------

    Total operating expenses                            64,918      60,126

                                                     ---------   ---------

  Loss from continuing operations before income

   taxes                                               (28,841)    (72,351)

  Income tax benefit                                   (12,446)    (32,288)

                                                     ---------   ---------

    Net loss from continuing operations                (16,395)    (40,063)

 (Loss) income from discontinued operations, net of

  income taxes                                               -         228

 Gain from sale of subsidiary, net of income taxes

  and selling costs                                          -           -

                                                     ---------   ---------

    Net loss                                           (16,395)    (39,835)

  Preferred stock dividends and discount accretion       2,586       2,567

                                                     ---------   ---------

    Net loss available to common shareholders        $ (18,981)  $ (42,402)

                                                     =========   =========

Loss from continuing operations per common share -

 Basic / Diluted                                     $    (.20)  $    (.45)

Loss per common share - Basic / Diluted                   (.20)       (.45)

Weighted average common shares outstanding - Basic

 / Diluted                                              94,918      94,219







UNITED COMMUNITY BANKS, INC.

Consolidated Statement of Income (Unaudited)



                                                     Twelve Months Ended

                                                         December 31,

                                                   -----------------------

(in thousands, except per share data)                 2010         2009

                                                   ----------   ----------

Interest revenue:

  Loans, including fees                            $  277,904   $  322,509

  Investment securities, including tax exempt of

   $1,137 and $1,322                                   59,958       77,370

  Federal funds sold, commercial paper and

   deposits in banks                                    3,260        2,950

                                                   ----------   ----------

      Total interest revenue                          341,122      402,829

                                                   ----------   ----------

Interest expense:

  Deposits:

    NOW                                                 6,966       11,023

    Money market                                        7,552        9,545

    Savings                                               331          483

    Time                                               66,883      120,326

                                                   ----------   ----------

      Total deposit interest expense                   81,732      141,377

  Federal funds purchased, repurchase agreements

   and other short-term borrowings                      4,235        2,842

  Federal Home Loan Bank advances                       3,355        4,622

  Long-term debt                                       10,749       10,893

                                                   ----------   ----------

    Total interest expense                            100,071      159,734

                                                   ----------   ----------

    Net interest revenue                              241,051      243,095

  Provision for loan losses                           223,000      310,000

                                                   ----------   ----------

    Net interest revenue after provision for loan

     losses                                            18,051      (66,905)

                                                   ----------   ----------

Fee revenue:

  Service charges and fees                             30,127       30,986

  Mortgage loan and other related fees                  7,019        8,959

  Brokerage fees                                        2,662        2,085

  Securities gains, net                                 2,552        2,756

  Gain from acquisition                                     -       11,390

  Losses from prepayment of borrowings                 (2,233)           -

  Other                                                 8,421        6,178

                                                   ----------   ----------

    Total fee revenue                                  48,548       62,354

                                                   ----------   ----------

    Total revenue                                      66,599       (4,551)

                                                   ----------   ----------

Operating expenses:

  Salaries and employee benefits                       96,618      101,568

  Communications and equipment                         13,781       14,676

  Occupancy                                            15,394       15,653

  Advertising and public relations                      4,625        3,950

  Postage, printing and supplies                        4,072        5,040

  Professional fees                                     9,254       11,480

  Foreclosed property                                  65,707       32,365

  FDIC assessments and other regulatory charges        13,747       16,004

  Amortization of intangibles                           3,160        3,104

  Other                                                16,594       13,210

  Loss on sale of nonperforming assets                 45,349            -

  Goodwill impairment                                 210,590       95,000

  Severance costs                                           -        2,898

                                                   ----------   ----------

    Total operating expenses                          498,891      314,948

                                                   ----------   ----------

  Loss from continuing operations before income

   taxes                                             (432,292)    (319,499)

  Income tax benefit                                  (85,492)     (90,659)

                                                   ----------   ----------

    Net loss from continuing operations              (346,800)    (228,840)

 (Loss) income from discontinued operations, net

  of income taxes                                        (101)         513

 Gain from sale of subsidiary, net of income

  taxes and selling costs                               1,266            -

                                                   ----------   ----------

    Net loss                                         (345,635)    (228,327)

  Preferred stock dividends and discount

   accretion                                           10,316       10,242

                                                   ----------   ----------

    Net loss available to common shareholders      $ (355,951)  $ (238,569)

                                                   ==========   ==========

Loss from continuing operations per common share

 - Basic / Diluted                                 $    (3.77)  $    (3.96)

Loss per common share - Basic / Diluted                 (3.76)       (3.95)

Weighted average common shares outstanding -

 Basic / Diluted                                       94,624       60,374







UNITED COMMUNITY BANKS, INC.

Consolidated Balance Sheet





(in thousands, except share and per share      December 31,    December 31,

 data)                                             2010           2009

                                               ------------   -------------

                                               (unaudited)    (unaudited)

ASSETS

  Cash and due from banks                      $     95,994   $     126,265

  Interest-bearing deposits in banks                111,901         120,382

  Federal funds sold, commercial paper and

   short-term investments                           441,562         129,720

                                               ------------   -------------

    Cash and cash equivalents                       649,457         376,367

  Securities available for sale                   1,224,417       1,530,047

  Securities held to maturity (fair value

   $267,988)                                        265,807               -

  Mortgage loans held for sale                       35,908          30,226

  Loans, net of unearned income                   4,604,126       5,151,476

    Less allowance for loan losses                  174,695         155,602

                                               ------------   -------------

      Loans, net                                  4,429,431       4,995,874

  Assets covered by loss sharing agreements

   with the FDIC                                    131,887         185,938

  Premises and equipment, net                       178,239         182,038

  Accrued interest receivable                        24,299          33,867

  Goodwill and other intangible assets               11,446         225,196

  Foreclosed property                               142,208         120,770

  Other assets                                      350,097         319,591

                                               ------------   -------------

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

                                               ============   =============

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

  Deposits:

    Demand                                     $    793,414   $     707,826

    NOW                                           1,424,781       1,335,790

    Money market                                    891,252         713,901

    Savings                                         183,894         177,427

    Time:

      Less than $100,000                          1,496,700       1,746,511

      Greater than $100,000                       1,002,359       1,187,499

      Brokered                                      676,772         758,880

                                               ------------   -------------

        Total deposits                            6,469,172       6,627,834

  Federal funds purchased, repurchase

   agreements, and other short-term

   borrowings                                       101,067         101,389

  Federal Home Loan Bank advances                    55,125         114,501

  Long-term debt                                    150,146         150,066

  Accrued expenses and other liabilities             32,171          43,803

                                               ------------   -------------

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

                                               ------------   -------------

Shareholders' equity:

  Preferred stock, $1 par value; 10,000,000

   shares authorized;

      Series A; $10 stated value; 21,700

       shares issued and outstanding                    217             217

      Series B; $1,000 stated value; 180,000

       shares issued and outstanding                175,711         174,408

  Common stock, $1 par value; 200,000,000

   shares authorized; 94,685,003 and 94,045,603

   shares issued and outstanding                     94,685          94,046

  Common stock issuable; 336,437 and 221,906

   shares                                             3,894           3,597

  Capital surplus                                   665,496         622,034

  (Accumulated deficit) retained earnings          (335,567)         20,384

  Accumulated other comprehensive income             31,079          47,635

                                               ------------   -------------

      Total shareholders' equity                    635,515         962,321

                                               ------------   -------------

      Total liabilities and shareholders'

       equity                                  $  7,443,196   $   7,999,914

                                               ============   =============









UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended December 31,



                                                      2010

                                     -------------------------------------

                                       Average                     Avg.

(dollars in thousands, taxable         Balance      Interest       Rate

 equivalent)                         -----------  ------------ -----------



Assets:

Interest-earning assets:

  Loans, net of unearned income

   (1)(2)                            $ 4,768,120  $     66,750        5.55%

  Taxable securities (3)               1,327,999        12,964        3.90

  Tax-exempt securities (1)(3)            25,917           410        6.33

  Federal funds sold and other

   interest-earning assets               558,143         1,091         .78

                                     -----------  ------------

      Total interest-earning assets    6,680,179        81,215        4.83

                                     -----------  ------------

Non-interest-earning assets:

  Allowance for loan losses             (185,300)

  Cash and due from banks                112,923

  Premises and equipment                 178,729

  Other assets (3)                       551,340

                                     -----------

      Total assets                   $ 7,337,871

                                     ===========

Liabilities and Shareholders'

 Equity:

Interest-bearing liabilities:

  Interest-bearing deposits:

    NOW                              $ 1,436,976  $      1,662         .46

    Money market                         870,884         2,036         .93

    Savings                              184,651            81         .17

    Time less than $100,000            1,489,933         6,292        1.68

    Time greater than $100,000         1,010,104         4,736        1.86

    Brokered                             491,477         1,840        1.49

                                     -----------  ------------

      Total interest-bearing

       deposits                        5,484,025        16,647        1.20

                                     -----------  ------------

    Federal funds purchased and

     other borrowings                    102,830         1,073        4.14

    Federal Home Loan Bank advances       58,712           608        4.11

    Long-term debt                       150,137         2,755        7.28

                                     -----------  ------------

      Total borrowed funds               311,679         4,436        5.65

                                     -----------  ------------

      Total interest-bearing

       liabilities                     5,795,704        21,083        1.44

                                                  ------------

Non-interest-bearing liabilities:

  Non-interest-bearing deposits          809,604

  Other liabilities                       83,452

                                     -----------

      Total liabilities                6,688,760

Shareholders' equity                     649,111

                                     -----------

      Total liabilities and

       shareholders' equity          $ 7,337,871

                                     ===========

Net interest revenue                              $     60,132

                                                  ============

Net interest-rate spread                                              3.39%

                                                               ===========

Net interest margin (4)                                               3.58%

                                                               ===========



(1)  Interest revenue on tax-exempt securities and loans has been increased

     to reflect comparable interest on taxable securities and loans.  The

     rate used was 39%, reflecting the statutory federal income tax rate

     and the federal tax adjusted state income tax rate.

(2)  Included in the average balance of loans outstanding are loans where

     the accrual of interest has been discontinued.

(3)  Securities available for sale are shown at amortized cost.  Pretax

     unrealized gains of $40.8 million in 2010 and $22.1 million in 2009

     are included in other assets for purposes of this presentation.

(4)  Net interest margin is taxable equivalent net-interest revenue divided

     by average interest-earning assets.









UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended December 31,



                                                          2009

                                             -----------------------------

                                               Average               Avg.

(dollars in thousands, taxable equivalent)     Balance    Interest   Rate

                                             ----------  ----------- -----

Assets:

Interest-earning assets:

  Loans, net of unearned income (1)(2)       $5,357,150  $    78,088  5.78%

  Taxable securities (3)                      1,496,251       16,947  4.53

  Tax-exempt securities (1)(3)                   32,554          599  7.36

  Federal funds sold and other

   interest-earning assets                      600,835        1,847  1.23

                                             ----------  -----------

       Total interest-earning assets          7,486,790       97,481  5.17

                                             ----------  -----------

Non-interest-earning assets:

  Allowance for loan losses                    (162,203)

  Cash and due from banks                       107,153

  Premises and equipment                        182,790

  Other assets (3)                              672,014

                                             ----------

       Total assets                          $8,286,544

                                             ==========

Liabilities and Shareholders' Equity:

Interest-bearing liabilities:

  Interest-bearing deposits:

    NOW                                      $1,334,578  $     2,315   .69

    Money market                                726,680        2,328  1.27

    Savings                                     178,191          105   .23

    Time less than $100,000                   1,812,823       10,952  2.40

    Time greater than $100,000                1,215,579        8,074  2.64

    Brokered                                    844,462        5,000  2.35

                                             ----------  -----------

       Total interest-bearing deposits        6,112,313       28,774  1.87

                                             ----------  -----------

    Federal funds purchased and other

     borrowings                                 105,130        1,081  4.08

    Federal Home Loan Bank advances             156,979        1,045  2.64

    Long-term debt                              150,060        2,652  7.01

                                             ----------  -----------

       Total borrowed funds                     412,169        4,778  4.60

                                             ----------  -----------

       Total interest-bearing liabilities     6,524,482       33,552  2.04

                                                         -----------

Non-interest-bearing liabilities:

    Non-interest-bearing deposits               722,739

    Other liabilities                            50,044

                                             ----------

       Total liabilities                      7,297,265

Shareholders' equity                            989,279

                                             ----------

       Total liabilities and shareholders'

        equity                               $8,286,544

                                             ==========

Net interest revenue                                     $    63,929

                                                         ===========

Net interest-rate spread                                              3.13%

                                                                     =====

Net interest margin (4)                                               3.40%

                                                                     =====



(1)  Interest revenue on tax-exempt securities and loans has been increased

     to reflect comparable interest on taxable securities and loans. The

     rate used was 39%, reflecting the statutory federal income tax rate

     and the federal tax adjusted state income tax rate.

(2)  Included in the average balance of loans outstanding are loans where

     the accrual of interest has been discontinued.

(3)  Securities available for sale are shown at amortized cost. Pretax

     unrealized gains of $40.8 million in 2010 and $22.1 million in 2009

     are included in other assets for purposes of this presentation.

(4)  Net interest margin is taxable equivalent net-interest revenue divided

     by average interest-earning assets.









UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Twelve Months Ended December 31,



                                                            2010

                                             -----------------------------

                                               Average               Avg.

(dollars in thousands, taxable equivalent)     Balance    Interest   Rate

                                             ----------  ----------- -----

Assets:

Interest-earning assets:

  Loans, net of unearned income (1)(2)       $4,960,805  $   278,149  5.61%

  Taxable securities (3)                      1,425,322       58,821  4.13

  Tax-exempt securities (1)(3)                   27,827        1,860  6.68

  Federal funds sold and other

   interest-earning assets                      408,359        4,293  1.05

                                             ----------  -----------

      Total interest-earning assets           6,822,313      343,123  5.03

                                             ----------  -----------

Non-interest-earning assets:

  Allowance for loan losses                    (190,227)

  Cash and due from banks                       106,582

  Premises and equipment                        180,379

  Other assets (3)                              706,586

                                             ----------

      Total assets                           $7,625,633

                                             ==========

Liabilities and Shareholders' Equity:

Interest-bearing liabilities:

  Interest-bearing deposits:

    NOW                                      $1,360,729  $     6,966   .51

    Money market                                780,982        7,552   .97

    Savings                                     184,479          331   .18

    Time less than $100,000                   1,581,750       30,260  1.91

    Time greater than $100,000                1,084,967       23,114  2.13

    Brokered                                    610,483       13,509  2.21

                                             ----------  -----------

      Total interest-bearing deposits         5,603,390       81,732  1.46

                                             ----------  -----------

    Federal funds purchased and other

     borrowings                                 103,479        4,235  4.09

    Federal Home Loan Bank advances              90,137        3,355  3.72

    Long-term debt                              150,107       10,749  7.16

                                             ----------  -----------

      Total borrowed funds                      343,723       18,339  5.34

                                             ----------  -----------

      Total interest-bearing liabilities      5,947,113      100,071  1.68

                                                         -----------

Non-interest-bearing liabilities:

  Non-interest-bearing deposits                 769,395

  Other liabilities                              69,367

                                             ----------

      Total liabilities                       6,785,875

Shareholders' equity                            839,758

                                             ----------

      Total liabilities and shareholders'

       equity                                $7,625,633

                                             ==========

Net interest revenue                                     $   243,052

                                                         ===========

Net interest-rate spread                                              3.35%

                                                                     =====

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 $43.2 million in 2010 and $15.3 million in 2009

     are included in other assets for purposes of this presentation.

(4)  Net interest margin is taxable equivalent net-interest revenue divided

     by average interest-earning assets.









UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Twelve Months Ended December 31,



                                                           2009

                                             -----------------------------

                                               Average               Avg.

(dollars in thousands, taxable equivalent)     Balance    Interest   Rate

                                             ----------  ----------- -----

Assets:

Interest-earning assets:

  Loans, net of unearned income (1)(2)       $5,547,915  $   322,284  5.81%

  Taxable securities (3)                      1,626,032       76,048  4.68

  Tax-exempt securities (1)(3)                   30,460        2,164  7.10

  Federal funds sold and other

   interest-earning assets                      260,232        4,465  1.72

                                             ----------  -----------

       Total interest-earning assets          7,464,639      404,961  5.43

                                             ----------  -----------

Non-interest-earning assets:

  Allowance for loan losses                    (146,535)

  Cash and due from banks                       105,127

  Premises and equipment                        180,381

  Other assets (3)                              665,775

                                             ----------

       Total assets                          $8,269,387

                                             ==========

Liabilities and Shareholders' Equity:

Interest-bearing liabilities:

  Interest-bearing deposits:

    NOW                                      $1,297,139  $    11,023   .85

    Money market                                589,389        9,545  1.62

    Savings                                     177,410          483   .27

    Time less than $100,000                   1,891,774       56,811  3.00

    Time greater than $100,000                1,306,302       42,518  3.25

    Brokered                                    756,122       20,997  2.78

                                             ----------  -----------

       Total interest-bearing deposits        6,018,136      141,377  2.35

                                             ----------  -----------

    Federal funds purchased and other

     borrowings                                 177,589        2,842  1.60

    Federal Home Loan Bank advances             220,468        4,622  2.10

    Long-term debt                              150,604       10,893  7.23

                                             ----------  -----------

       Total borrowed funds                     548,661       18,357  3.35

                                             ----------  -----------

       Total interest-bearing liabilities     6,566,797      159,734  2.43

                                                         -----------

Non-interest-bearing liabilities:

  Non-interest-bearing deposits                 694,469

  Other liabilities                              88,490

                                             ----------

       Total liabilities                      7,349,756

Shareholders' equity                            919,631

                                             ----------

       Total liabilities and shareholders'

        equity                               $8,269,387

                                             ==========

Net interest revenue                                     $   245,227

                                                         ===========

Net interest-rate spread                                              3.00%

                                                                     =====

Net interest margin (4)                                               3.29%

                                                                     =====

(1)  Interest revenue on tax-exempt securities and loans has been increased

     to reflect comparable interest on taxable securities and loans. The

     rate used was 39%, reflecting the statutory federal income tax rate

     and the federal tax adjusted state income tax rate.

(2)  Included in the average balance of loans outstanding are loans where

     the accrual of interest has been discontinued.

(3)  Securities available for sale are shown at amortized cost. Pretax

     unrealized gains of $43.2 million in 2010 and $15.3 million in 2009

     are included in other assets for purposes of this presentation.

(4)  Net interest margin is taxable equivalent net-interest revenue divided

     by average interest-earning assets.

For more information:

Rex S. Schuette

Chief Financial Officer

(706) 781-2266

Email Contact



Source: United Community Banks, Inc.

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