United Community Banks, Inc.
Jul 28, 2011

United Community Banks, Inc. Reports Earnings of $7.6 Million or Eight Cents per Share for Second Quarter 2011

BLAIRSVILLE, GA -- (MARKET WIRE) -- 07/28/11 -- United Community Banks, Inc. (NASDAQ: UCBI)

United Community Banks, Inc. (NASDAQ: UCBI) today reported net income of $7.6 million, or 8 cents per diluted share, for the second quarter of 2011. The year-to-date net loss of $135 million reflects the significant credit losses in the first quarter incurred in connection with the Problem Asset Disposition Plan which was announced last quarter in conjunction with the raising of $380 million in new capital.

"The de-risking of our balance sheet and capital transaction, coupled with the execution of the Problem Asset Disposition Plan in the first quarter allowed us to return to profitability much sooner than would have otherwise been feasible," stated Jimmy Tallent, president and chief executive officer. "While we still have work to do in this difficult economic environment, our credit trends show improvement by every measure and we expect that positive trend to continue."

Total loans were $4.2 billion at quarter-end, down $31 million from the end of the first quarter and $710 million from a year earlier. "The $31 million decrease from last quarter is actually a very encouraging sign in that it is the smallest quarterly decrease in loan balances since the first quarter of 2008," stated Tallent. "We believe the slowing attrition in the loan portfolio marks the approach of an inflection point upon which we can once again begin to grow our loan portfolio. We were pleased with our new loans made during the second quarter that included $136 million of loan commitments with $105 million funded of which the majority were commercial loans. Our pipeline of new business continues to gain momentum and we continue to add commercial lenders to our metro markets across our footprint. I'm encouraged by the direction in which we are heading. I can't overemphasize the importance of restoring modest growth to our loan portfolio and growing net interest revenue."

Taxable equivalent net interest revenue of $58.9 million was up $2.6 million from the first quarter due mostly to the impact last quarter of a $2 million interest reversal on the performing classified loans that were included in the bulk loan sale. Compared with the second quarter of 2010, net interest revenue was $2.7 million lower, primarily due to the $745 million reduction in average loan balances that was offset partially by lower rates on our deposits. Net interest margin was 3.41 percent for the second quarter of 2011, down 19 basis points from a year ago and equal to the first quarter after adding back the $2 million interest reversal in the bulk loan sale.

"Growing loans and deposits is the key to building core earnings," Tallent commented. "We are making steady progress on the lending side and grew core transaction deposits in the second quarter by $69 million, or 10 percent, on an annualized basis. This was the tenth consecutive quarter of core deposit growth."

Operating fee revenue was $13.9 million in the second quarter of 2011, compared to $11.6 million a year ago and $11.8 million last quarter. Service charges and fees were $7.6 million, down $385,000 from a year ago, due primarily to lower overdraft fees resulting from regulatory changes last year that required customers to provide consent before using overdraft services. Partially offsetting this reduction in overdraft fees was an increase in ATM and debit card usage fees. Service charges and fees were up $888,000 from last quarter due to the increase in ATM and debit card usage fees. Mortgage fees of $952,000 were down $649,000 from a year ago and down $542,000 from last quarter due to the lower level of refinancing activities. Other fee revenue of $4.7 million reflected an increase of $3.3 million from a year ago and $1.8 million from the first quarter primarily due to the accelerated recognition of deferred gains relating to the ineffectiveness of terminated cash flow hedges on certain prime-based loans. Gains recognized in the second quarter were $2.8 million compared with $1.3 million in the first quarter of 2011 and $239,000 in the second quarter of 2010.

Excluding foreclosed property costs and the loss on sale of nonperforming assets in 2010, the second quarter operating expenses were $46.8 million, flat with the first quarter and $3.1 million higher than a year ago. Salary and benefit costs totaled $26.4 million and increased $2.8 million from last year and $1.5 million from first quarter. Severance costs for eliminated staff positions account for $1.2 million of the increase from both periods. Also contributing to the increase from a year ago were $717,000 in higher incentive costs, lower deferred direct loan origination costs of $518,000 and a $288,000 change in the value of our deferred compensation liability.

Foreclosed property costs for the second quarter of 2011 were $1.9 million as compared to $64.9 million last quarter and $14.5 million a year ago. For the second quarter of 2011, these costs were for maintenance of foreclosed properties. For the first quarter of 2011, foreclosed property costs included $60.6 million of write downs and losses on accelerated sales related to the asset disposition plan and $4.3 million of maintenance costs. Second quarter 2010 included $11.2 million of write downs and losses and $3.3 million for maintenance costs.

The effective tax rate for the second quarter of 2011 was 40 percent, equal to the first quarter of 2011. The effective tax rate for the balance of 2011 will continue in the 40 percent range due to year-to-date net losses and will return to a normal range of 35 to 36 percent with expected profitability for 2012.

As of June 30, 2011, the capital ratios for United were as follows: Tier 1 Risk Based of 13.9 percent; Tier 1 Leverage of 8.7 percent; and, Total Risk Based of 16.4 percent. The quarterly average tangible equity-to-assets ratio was 11.1 percent. As of quarter-end, tangible common equity-to-assets ratio was 8.9 percent compared to the quarterly average of 4.8 percent which was distorted by the late-quarter timing of the conversion of the mandatorily convertible preferred stock that occurred late in the quarter. The quarter-end tangible common equity to assets ratio of 8.9 percent is more representative of United's current capital strength.

"It is of course good to once again report positive earnings," Tallent said. "The last three years have been extremely challenging in our industry, and challenges remain as the economy continues to struggle. We have laid out our strategy and now we are about the business of implementation. Our company has completed the capital transaction, de-risked our balance sheet through the Problem Asset Disposition Plan, executed the reverse stock split, and achieved profitability. We are on the right track but by no means satisfied; there is more work to do on credit quality, commercial loans, core deposits, customer service, and organic growth. We are moving forward with determination and optimism."

Conference Call
United Community Banks will hold a conference call today, Thursday, July 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 conference number 78907241. 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 United's 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 anticipated 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 "Risk Factors" of United Community Banks, Inc.'s annual report filed on Form 10-K with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.










UNITED COMMUNITY BANKS, INC.

Financial Highlights

Selected Financial Information





                               2011                      2010

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

(in thousands, except

 per share

 data; taxable          Second     First     Fourth      Third     Second

 equivalent)            Quarter   Quarter    Quarter    Quarter    Quarter

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

INCOME SUMMARY

Interest revenue       $ 76,931 $   75,965  $ 81,215  $   84,360  $ 87,699

Interest expense         17,985     19,573    21,083      24,346    26,072

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

  Net interest revenue   58,946     56,392    60,132      60,014    61,627

Operating provision

 for loan losses (1)     11,000    190,000    47,750      50,500    61,500

Fee revenue (2)          13,905     11,838    12,442      12,861    11,579

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

  Total operating

   revenue (1)(2)        61,851   (121,770)   24,824      22,375    11,706

Operating expenses (3)   48,728    115,271    64,918      64,906    58,308

Loss on sale of

 nonperforming assets         -          -         -           -    45,349

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

  Operating income

   (loss) from

   continuing

   operations before

   income taxes          13,123   (237,041)  (40,094)    (42,531)  (91,951)

Operating income tax

 expense (benefit)        5,506    (94,555)  (16,520)    (16,706)  (32,419)

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

  Net operating income

   (loss) from

   continuing

   operations

   (1)(2)(3)              7,617   (142,486)  (23,574)    (25,825)  (59,532)

Noncash goodwill

 impairment charges           -          -         -    (210,590)        -

Partial reversal of

 fraud loss provision,

 net of income tax            -          -     7,179           -         -

Loss from discontinued

 operations, net of

 income tax                   -          -         -           -         -

Gain from sale of

 subsidiary, net

 income tax                   -          -         -           -         -

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

  Net income (loss)       7,617   (142,486)  (16,395)   (236,415)  (59,532)

Preferred dividends

 and discount

 accretion                3,016      2,778     2,586       2,581     2,577

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

Net income (loss)

 available to common

 shareholders          $  4,601 $ (145,264) $(18,981) $ (238,996) $(62,109)

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



PERFORMANCE MEASURES

  Per common share:

    Diluted operating

     income (loss)

     from continuing

     operations

     (1)(2)(3)         $    .08 $    (7.87) $  (1.38) $    (1.50) $  (3.29)

    Diluted income

     (loss) from

     continuing

     operations             .08      (7.87)    (1.00)     (12.62)    (3.29)

    Diluted income

     (loss)                 .08      (7.87)    (1.00)     (12.62)    (3.29)

    Book value            11.59      14.78     24.18       25.70     38.55

    Tangible book

     value (5)            11.47      14.44     23.78       25.26     26.95



  Key performance

   ratios:

    Return on equity

     (4)(6)                5.34%   (147.11)%  (17.16)%   (148.04)%  (35.89)%

    Return on assets

     (6)                    .40      (7.61)     (.89)     (12.47)    (3.10)

    Net interest

     margin (6)            3.41       3.30      3.58        3.57      3.60

    Operating

     efficiency ratio

     from continuing

     operations (2)(3)    66.88     169.08     89.45       89.38    141.60

    Equity to assets      11.21       8.82      8.85       11.37     11.84

    Tangible equity to

     assets (5)           11.13       8.73      8.75        9.19      9.26

    Tangible common

     equity to assets

     (5)                   4.79       5.51      6.35        6.78      6.91

    Tangible common

     equity to risk-

     weighted assets

     (5)                  14.26       6.40      9.05        9.60      9.97



ASSET QUALITY *

  Non-performing loans $ 71,065 $   83,769  $179,094  $  217,766  $224,335

  Foreclosed

   properties            47,584     54,378   142,208     129,964   123,910

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

    Total non-

     performing assets

     (NPAs)             118,649    138,147   321,302     347,730   348,245

  Allowance for loan

   losses               127,638    133,121   174,695     174,613   174,111

  Operating net

   charge-offs (1)       16,483    231,574    47,668      49,998    61,323

  Allowance for loan

   losses to loans         3.07 %     3.17 %    3.79 %      3.67 %    3.57 %

  Operating net

   charge-offs to

   average loans

   (1)(6)                  1.58      20.71      4.03        4.12      4.98

  NPAs to loans and

   foreclosed

   properties              2.82       3.25      6.77        7.11      6.97

  NPAs to total assets     1.60       1.73      4.32        4.96      4.55



AVERAGE BALANCES ($ in

 millions)

  Loans                $  4,266 $    4,599  $  4,768  $    4,896  $  5,011

  Investment

   securities             2,074      1,625     1,354       1,411     1,532

  Earning assets          6,924      6,902     6,680       6,676     6,854

  Total assets            7,624      7,595     7,338       7,522     7,704

  Deposits                6,372      6,560     6,294       6,257     6,375

  Shareholders' equity      854        670       649         855       912

  Common shares -

   basic (thousands)     25,427     18,466    18,984      18,936    18,905

  Common shares -

   diluted (thousands)   57,543     18,466    18,984      18,936    18,905



AT PERIOD END ($ in

 millions)

  Loans *              $  4,163 $    4,194  $  4,604  $    4,760  $  4,873

  Investment

   securities             2,188      1,884     1,490       1,310     1,488

  Total assets            7,410      7,974     7,443       7,013     7,652

  Deposits                6,183      6,598     6,469       5,999     6,330

  Shareholders' equity      860        850       636         662       904

  Common shares

   outstanding

   (thousands)           57,469     20,903    18,937      18,887    18,856



(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 the fourth quarter of 2010. Operating charge-offs also exclude

the $11.8 million related partial recovery of the previously charged off

amount. (2) Excludes revenue generated by discontinued operations in the

first quarter of 2010. (3) Excludes the goodwill impairment charge of $211

million in the third quarter of 2010 and expenses relating to discontinued

operations in the first quarter of 2010. (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.



* Excludes loans and foreclosed properties covered by loss sharing

agreements with the FDIC.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Selected Financial Information



(in thousands,     2011      2010     Second      For the Six

 except per      --------- ---------  Quarter     Months Ended       YTD

 share data;      Second    Second   2011-2010 ------------------ 2011-2010

 taxable          Quarter   Quarter   Change     2011      2010     Change

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



INCOME SUMMARY

Interest revenue $  76,931 $  87,699           $ 152,896  $ 177,548

Interest expense    17,985    26,072              37,558     54,642

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

  Net interest

   revenue          58,946    61,627       (4)%  115,338    122,906     (6)%

Operating

 provision for

 loan losses (1)    11,000    61,500             201,000    136,500

Fee revenue (2)     13,905    11,579       20     25,743     23,245     11

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

  Total

   operating

   revenue

   (1)(2)           61,851    11,706             (59,919)     9,651

Operating

 expenses (3)       48,728    58,308      (16)   163,999    113,128     45

Loss on sale of

 nonperforming

 assets                  -    45,349                   -     45,349

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

  Operating

   income (loss)

   from

   continuing

   operations

   before income

   taxes            13,123   (91,951)     114   (223,918)  (148,826)

Operating income

 tax expense

 (benefit)           5,506   (32,419)            (89,049)   (54,836)

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

  Net operating

   income (loss)

   from

   continuing

   operations

  (1)(2)(3)          7,617   (59,532)     113   (134,869)   (93,990)   (43)

Noncash goodwill

 impairment

 charges                 -         -                   -          -

Partial reversal

 of fraud loss

 provision, net

 of income tax           -         -                   -          -

Loss from

 discontinued

 operations, net

 of income tax           -         -                   -       (101)

Gain from sale

 of subsidiary,

 net income tax          -         -                   -      1,266

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

  Net income

   (loss)            7,617   (59,532)     113   (134,869)   (92,825)   (45)

Preferred

 dividends and

 discount

 accretion           3,016     2,577               5,794      5,149

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

Net income

 (loss)

 available to

 common

 shareholders    $   4,601 $ (62,109)          $(140,663) $ (97,974)

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



PERFORMANCE

 MEASURES

  Per common

   share:

    Diluted

     operating

     income

     (loss) from

     continuing

     operations

     (1)(2)(3)   $     .08 $   (3.29)     102  $   (6.40) $   (5.25)   (22)

    Diluted

     income

     (loss) from

     continuing

     operations        .08     (3.29)     102      (6.40)     (5.25)   (22)

    Diluted

     income

     (loss)            .08     (3.29)     102      (6.40)     (5.19)   (23)

    Book value       11.59     38.55      (70)     11.59      38.55    (70)

    Tangible

     book value

     (5)             11.47     26.95      (57)     11.47      26.95    (57)



  Key

   performance

   ratios:

    Return on

     equity

     (4)(6)           5.34%   (35.89)%            (76.07)%   (27.87)%

    Return on

     assets (6)        .40     (3.10)              (3.57)     (2.39)

    Net interest

     margin (6)       3.41      3.60                3.36       3.55

    Operating

     efficiency

     ratio from

     continuing

     operations

     (2)(3)          66.88    141.60              116.28     108.48

    Equity to

     assets          11.21     11.84               10.02      11.87

    Tangible

     equity to

     assets (5)      11.13      9.26                9.94       9.32

    Tangible

     common

     equity to

     assets (5)       4.79      6.91                5.15       7.02

    Tangible

     common

     equity to

     risk-

     weighted

     assets (5)      14.26      9.97               14.26       9.97



ASSET QUALITY *

  Non-performing

   loans         $  71,065 $ 224,335           $  71,065  $ 224,335

  Foreclosed

   properties       47,584   123,910              47,584    123,910

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

    Total non-

     performing

     assets

     (NPAs)        118,649   348,245             118,649    348,245

  Allowance for

   loan losses     127,638   174,111             127,638    174,111

  Operating net

   charge-offs

   (1)              16,483    61,323             248,057    117,991

  Allowance for

   loan losses

   to loans           3.07%     3.57%               3.07%      3.57%

  Operating net

   charge-offs

   to average

   loans (1)(6)       1.58      4.98               11.46       4.75

  NPAs to loans

   and

   foreclosed

   properties         2.82      6.97                2.82       6.97

  NPAs to total

   assets             1.60      4.55                1.60       4.55



AVERAGE BALANCES

 ($ in millions)

  Loans          $   4,266 $   5,011      (15) $   4,432  $   5,091    (13)

  Investment

   securities        2,074     1,532       35      1,851      1,525     21

  Earning assets     6,924     6,854        1      6,913      6,969     (1)

  Total assets       7,624     7,704       (1)     7,609      7,825     (3)

  Deposits           6,372     6,375        -      6,465      6,472      -

  Shareholders'

   equity              854       912       (6)       763        929    (18)

  Common shares

   - basic

   (thousands)      25,427    18,905              21,965     18,891

  Common shares

   - diluted

   (thousands)      57,543    18,905              21,965     18,891



AT PERIOD END ($

 in millions)

  Loans *        $   4,163 $   4,873      (15) $   4,163  $   4,873    (15)

  Investment

   securities        2,188     1,488       47      2,188      1,488     47

  Total assets       7,410     7,652       (3)     7,410      7,652     (3)

  Deposits           6,183     6,330       (2)     6,183      6,330     (2)

  Shareholders'

   equity              860       904       (5)       860        904     (5)

  Common shares

   outstanding

   (thousands)      57,469    18,856              57,469     18,856



(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 the fourth quarter of 2010. Operating charge-offs also exclude

the $11.8 million related partial recovery of the previously charged off

amount. (2) Excludes revenue generated by discontinued operations in the

first quarter of 2010. (3) Excludes the goodwill impairment charge of $211

million in the third quarter of 2010 and expenses relating to discontinued

operations in the first quarter of 2010. (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.



* 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





                             2011                        2010

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

(in thousands,

 except per share

 data; taxable       Second      First      Fourth      Third      Second

 equivalent)         Quarter     Quarter    Quarter     Quarter    Quarter

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



Interest revenue

 reconciliation

Interest revenue -

 taxable equivalent $  76,931  $   75,965  $  81,215  $   84,360  $  87,699

Taxable equivalent

 adjustment              (429)       (435)      (497)       (511)      (500)

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

  Interest revenue

   (GAAP)           $  76,502  $   75,530  $  80,718  $   83,849  $  87,199

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



Net interest

 revenue

 reconciliation

Net interest

 revenue - taxable

 equivalent         $  58,946  $   56,392  $  60,132  $   60,014  $  61,627

Taxable equivalent

 adjustment              (429)       (435)      (497)       (511)      (500)

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

  Net interest

   revenue (GAAP)   $  58,517  $   55,957  $  59,635  $   59,503  $  61,127

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



Provision for loan

 losses

 reconciliation

Operating provision

 for loan losses    $  11,000  $  190,000  $  47,750  $   50,500  $  61,500

Partial reversal of

 special fraud-

 related provision

 for loan loss              -           -    (11,750)          -          -

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

  Provision for

   loan losses

   (GAAP)           $  11,000  $  190,000  $  36,000  $   50,500  $  61,500

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



Total revenue

 reconciliation

Total operating

 revenue            $  61,851  $ (121,770) $  24,824  $   22,375  $  11,706

Taxable equivalent

 adjustment              (429)       (435)      (497)       (511)      (500)

Partial reversal of

 special fraud-

 related provision

 for loan loss              -           -     11,750           -          -

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

  Total revenue

   (GAAP)           $  61,422  $ (122,205) $  36,077  $   21,864  $  11,206

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



Expense

 reconciliation

Operating expense   $  48,728  $  115,271  $  64,918  $   64,906  $ 103,657

Noncash goodwill

 impairment charge          -           -          -     210,590          -

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

  Operating expense

   (GAAP)           $  48,728  $  115,271  $  64,918  $  275,496  $ 103,657

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



Income (loss) from

 continuing

 operations before

 taxes

 reconciliation

Operating income

 (loss) from

 continuing

 operations before

 taxes              $  13,123  $ (237,041) $ (40,094) $  (42,531) $ (91,951)

Taxable equivalent

 adjustment              (429)       (435)      (497)       (511)      (500)

Noncash goodwill

 impairment charge          -           -          -    (210,590)         -

Partial reversal of

 special fraud-

 related provision

 for loan loss              -           -     11,750           -          -

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

  Income (loss)

   from continuing

   operations

   before taxes

   (GAAP)           $  12,694  $ (237,476) $ (28,841) $ (253,632) $ (92,451)

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



Income tax expense

 (benefit)

 reconciliation

Operating income

 tax expense

 (benefit)          $   5,506  $  (94,555) $ (16,520) $  (16,706) $ (32,419)

Taxable equivalent

 adjustment              (429)       (435)      (497)       (511)      (500)

Partial reversal of

 special fraud-

 related provision

 for loan loss              -           -      4,571           -          -

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

  Income tax

   expense

   (benefit) (GAAP) $   5,077  $  (94,990) $ (12,446) $  (17,217) $ (32,919)

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



Diluted earnings (loss) from

 continuing operations per

 common share reconciliation

Diluted operating

 earnings (loss)

 from continuing

 operations per

 common share       $     .08  $    (7.87) $   (1.38) $    (1.50) $   (3.29)

Noncash goodwill

 impairment charge          -           -          -      (11.12)         -

Partial reversal of

 special fraud-

 related provision

 for loan loss              -           -        .38           -          -

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

  Diluted earnings

   (loss) from

   continuing

   operations per

   common share

   (GAAP)           $     .08  $    (7.87) $   (1.00) $   (12.62) $   (3.29)

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



Book value per

 common share

 reconciliation

Tangible book value

 per common share   $   11.47  $    14.44  $   23.78  $    25.26  $   26.95

Effect of goodwill

 and other

 intangibles              .12         .34        .40         .44      11.60

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

  Book value per

   common share

   (GAAP)           $   11.59  $    14.78  $   24.18  $    25.70  $   38.55

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



Efficiency ratio

 from continuing

 operations

 reconciliation

Operating

 efficiency ratio

 from continuing

 operations             66.88%     169.08%     89.45%      89.38%    141.60%

Noncash goodwill

 impairment charge          -           -          -      290.00          -

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

  Efficiency ratio

   from continuing

   operations

   (GAAP)               66.88%     169.08%     89.45%     379.38%    141.60%

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



Average equity to

 assets

 reconciliation

Tangible common

 equity to assets        4.79%       5.51%      6.35%       6.78%      6.91%

Effect of preferred

 equity                  6.34        3.22       2.40        2.41       2.35

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

  Tangible equity

   to assets            11.13        8.73       8.75        9.19       9.26

Effect of goodwill

 and other

 intangibles              .08         .09        .10        2.18       2.58

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

  Equity to assets

   (GAAP)               11.21%       8.82%      8.85%      11.37%     11.84%

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



Actual tangible

 common equity to

 risk-weighted

 assets

 reconciliation

Tangible common

 equity to risk-

 weighted assets        14.26%       6.40%      9.05%       9.60%      9.97%

Effect of other

 comprehensive

 income                  (.65)       (.58)      (.62)       (.81)      (.87)

Effect of deferred

 tax limitation         (5.04)      (5.10)     (3.34)      (2.94)     (2.47)

Effect of trust

 preferred               1.14        1.12       1.06        1.06       1.03

Effect of preferred

 equity                  4.17        5.97       3.52        3.51       3.41

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

  Tier I capital

   ratio

   (Regulatory)         13.88%       7.81%      9.67%      10.42%     11.07%

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



Net charge-offs

 reconciliation

Operating net

 charge-offs        $  16,483  $  231,574  $  47,668  $   49,998  $  61,323

Subsequent partial

 recovery of fraud-

 related charge-off         -           -    (11,750)          -          -

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

  Net charge-offs

   (GAAP)           $  16,483  $  231,574  $  35,918  $   49,998  $  61,323

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



Net charge-offs to

 average loans

 reconciliation

Operating net

 charge-offs to

 average loans           1.58%      20.71%      4.03%       4.12%      4.98%

Subsequent partial

 recovery of fraud-

 related charge-off         -           -      (1.00)          -          -

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

  Net charge-offs

   to average loans

   (GAAP)                1.58%      20.71%      3.03%       4.12%      4.98%

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









UNITED COMMUNITY BANKS, INC.

Operating Earnings to GAAP Earnings Reconciliation

Selected Financial Information







                                                 For the Six Months Ended

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

(in thousands, except per share

data; taxable equivalent)                           2011           2010

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



Interest revenue reconciliation

Interest revenue - taxable equivalent          $     152,896  $     177,548

Taxable equivalent adjustment                           (864)          (993)

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

    Interest revenue (GAAP)                    $     152,032  $     176,555

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



Net interest revenue reconciliation

Net interest revenue - taxable equivalent      $     115,338  $     122,906

Taxable equivalent adjustment                           (864)          (993)

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

    Net interest revenue (GAAP)                $     114,474  $     121,913

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



Provision for loan losses reconciliation

Operating provision for loan losses            $     201,000  $     136,500

Partial reversal of special fraud-related

 provision for loan loss                                   -              -

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

    Provision for loan losses (GAAP)           $     201,000  $     136,500

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



Total revenue reconciliation

Total operating revenue                        $     (59,919) $       9,651

Taxable equivalent adjustment                           (864)          (993)

Partial reversal of special fraud-related

 provision for loan loss                                   -              -

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

    Total revenue (GAAP)                       $     (60,783) $       8,658

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



Expense reconciliation

Operating expense                              $     163,999  $     158,477

Noncash goodwill impairment charge                         -              -

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

    Operating expense (GAAP)                   $     163,999  $     158,477

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



Income (loss) from continuing operations

 before taxes reconciliation

Operating income (loss) from continuing

 operations before taxes                       $    (223,918) $    (148,826)

Taxable equivalent adjustment                           (864)          (993)

Noncash goodwill impairment charge                         -              -

Partial reversal of special fraud-related

 provision for loan loss                                   -              -

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

    Income (loss) from continuing operations

     before taxes (GAAP)                       $    (224,782) $    (149,819)

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



Income tax expense (benefit) reconciliation

Operating income tax expense (benefit)         $     (89,049) $     (54,836)

Taxable equivalent adjustment                           (864)          (993)

Partial reversal of special fraud-related

 provision for loan loss                                   -              -

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

    Income tax expense (benefit) (GAAP)        $     (89,913) $     (55,829)

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



Diluted earnings (loss) from continuing operations per

 common share reconciliation

Diluted operating earnings (loss) from

 continuing operations per common share        $       (6.40) $       (5.25)

Noncash goodwill impairment charge                         -              -

Partial reversal of special fraud-related

 provision for loan loss                                   -              -

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

    Diluted earnings (loss) from continuing

     operations per common share (GAAP)        $       (6.40) $       (5.25)

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



Book value per common share reconciliation

Tangible book value per common share           $       11.47  $       26.95

Effect of goodwill and other intangibles                 .12          11.60

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

    Book value per common share (GAAP)         $       11.59  $       38.55

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



Efficiency ratio from continuing operations

 reconciliation

Operating efficiency ratio from continuing

 operations                                   %       116.28%        108.48%

Noncash goodwill impairment charge                         -              -

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

    Efficiency ratio from continuing

     operations (GAAP)                        %       116.28%        108.48%

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



Average equity to assets reconciliation

Tangible common equity to assets              %         5.15%          7.02%

Effect of preferred equity                              4.79           2.30

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

    Tangible equity to assets                           9.94           9.32

Effect of goodwill and other intangibles                 .08           2.55

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

    Equity to assets (GAAP)                   %        10.02%         11.87%

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



Actual tangible common equity to risk-

 weighted assets reconciliation

Tangible common equity to risk-weighted

 assets                                       %        14.26%          9.97%

Effect of other comprehensive income                    (.65)          (.87)

Effect of deferred tax limitation                      (5.04)         (2.47)

Effect of trust preferred                               1.14           1.03

Effect of preferred equity                              4.17           3.41

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

    Tier I capital ratio (Regulatory)         %        13.88%         11.07%

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



Net charge-offs reconciliation

Operating net charge-offs                      $     248,057  $     117,991

Subsequent partial recovery of fraud-related

 charge-off                                                -              -

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

    Net charge-offs (GAAP)                     $     248,057  $     117,991

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



Net charge-offs to average loans

 reconciliation

Operating net charge-offs to average loans    %        11.46%          4.75%

Subsequent partial recovery of fraud-related

 charge-off                                                -              -

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

    Net charge-offs to average loans (GAAP)   %        11.46%          4.75%

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









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Period-End (1)





                                       2011                  2010

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

                                 Second    First   Fourth    Third   Second

(in millions)                    Quarter  Quarter  Quarter  Quarter  Quarter

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

LOANS BY CATEGORY

Commercial (sec. by RE)         $  1,742 $  1,692 $  1,761 $  1,781 $  1,780

Commercial construction              195      213      297      310      342

Commercial & industrial              428      431      441      456      441

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

    Total commercial               2,365    2,336    2,499    2,547    2,563

Residential construction             502      550      695      764      820

Residential mortgage               1,177    1,187    1,279    1,316    1,356

Consumer / installment               119      121      131      133      134

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

    Total loans                 $  4,163 $  4,194 $  4,604 $  4,760 $  4,873

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





LOANS BY MARKET

Atlanta MSA                     $  1,188 $  1,179 $  1,310 $  1,365 $  1,373

Gainesville MSA                      275      282      312      316      343

North Georgia                      1,500    1,531    1,689    1,755    1,808

Western North Carolina               626      640      702      719      738

Coastal Georgia                      325      312      335      345      356

East Tennessee                       249      250      256      260      255

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

    Total loans                 $  4,163 $  4,194 $  4,604 $  4,760 $  4,873

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





RESIDENTIAL CONSTRUCTION

Dirt loans

  Acquisition & development     $    105 $    116 $    174 $    190 $    214

  Land loans                          62       69       99      104      110

  Lot loans                          218      228      275      303      311

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

      Total                          385      413      548      597      635

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



House loans

  Spec                                74       88       97      109      125

  Sold                                43       49       50       58       60

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

      Total                          117      137      147      167      185

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

Total residential construction  $    502 $    550 $    695 $    764 $    820

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





RESIDENTIAL CONSTRUCTION - ATLANTA MSA

Dirt loans

  Acquisition & development     $     20 $     22 $     30 $     34 $     40

  Land loans                          16       19       23       27       32

  Lot loans                           22       24       32       45       39

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

      Total                           58       65       85      106      111

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



House loans

  Spec                                30       34       38       42       48

  Sold                                 9       11       10       11       10

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

      Total                           39       45       48       53       58

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

Total residential construction  $     97 $    110 $    133 $    159 $    169

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



(1) Excludes total loans of $70.8 million, $63.3 million, $68.2 million,

 $75.2 million and $80.8 million as of June 30, 2011, March 31, 2011,

 December 31, 2010, September 30, 2010 and June 30, 2010, 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)





                                       2011         2010

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

                                                                      Year

                                                            Linked    over

                                 Second    First   Second  Quarter    Year

(in millions)                    Quarter  Quarter  Quarter  Change   Change

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

LOANS BY CATEGORY

Commercial (sec. by RE)         $  1,742 $  1,692 $  1,780 $    50  $   (38)

Commercial construction              195      213      342     (18)    (147)

Commercial & industrial              428      431      441      (3)     (13)

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

    Total commercial               2,365    2,336    2,563      29     (198)

Residential construction             502      550      820     (48)    (318)

Residential mortgage               1,177    1,187    1,356     (10)    (179)

Consumer / installment               119      121      134      (2)     (15)

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

    Total loans                 $  4,163 $  4,194 $  4,873     (31)    (710)

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





LOANS BY MARKET

Atlanta MSA                     $  1,188 $  1,179 $  1,373       9     (185)

Gainesville MSA                      275      282      343      (7)     (68)

North Georgia                      1,500    1,531    1,808     (31)    (308)

Western North Carolina               626      640      738     (14)    (112)

Coastal Georgia                      325      312      356      13      (31)

East Tennessee                       249      250      255      (1)      (6)

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

    Total loans                 $  4,163 $  4,194 $  4,873     (31)    (710)

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





RESIDENTIAL CONSTRUCTION

Dirt loans

  Acquisition & development     $    105 $    116 $    214     (11)    (109)

  Land loans                          62       69      110      (7)     (48)

  Lot loans                          218      228      311     (10)     (93)

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

      Total                          385      413      635     (28)    (250)

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



House loans

  Spec                                74       88      125     (14)     (51)

  Sold                                43       49       60      (6)     (17)

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

      Total                          117      137      185     (20)     (68)

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

Total residential construction  $    502 $    550 $    820     (48)    (318)

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





RESIDENTIAL CONSTRUCTION - ATLANTA MSA

Dirt loans

  Acquisition & development     $     20 $     22 $     40      (2)     (20)

  Land loans                          16       19       32      (3)     (16)

  Lot loans                           22       24       39      (2)     (17)

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

      Total                           58       65      111      (7)     (53)

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



House loans

  Spec                                30       34       48      (4)     (18)

  Sold                                 9       11       10      (2)      (1)

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

      Total                           39       45       58      (6)     (19)

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

Total residential construction  $     97 $    110 $    169     (13)     (72)

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



(1) Excludes total loans of $70.8 million, $63.3 million, $68.2 million,

 $75.2 million and $80.8 million as of June 30, 2011, March 31, 2011,

 December 31, 2010, September 30, 2010 and June 30, 2010, 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)





                                           Second Quarter 2011

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

                             Non-performing    Foreclosed        Total

(in thousands)                    Loans        Properties         NPAs

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

NPAs BY CATEGORY

Commercial (sec. by RE)      $       17,764  $        6,796  $       24,560

Commercial construction               2,782           6,764           9,546

Commercial & industrial               1,998               -           1,998

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

  Total commercial                   22,544          13,560          36,104

Residential construction             22,643          24,968          47,611

Residential mortgage                 24,809           9,056          33,865

Consumer / installment                1,069               -           1,069

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

  Total NPAs                 $       71,065  $       47,584  $      118,649

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

Balance as a % of

    Unpaid Principal                   64.5%           32.6%           46.3%



NPAs BY MARKET

Atlanta MSA                  $       14,700  $       11,239  $       25,939

Gainesville MSA                       4,505           3,174           7,679

North Georgia                        28,117          21,278          49,395

Western North Carolina               15,153           8,953          24,106

Coastal Georgia                       5,357           2,564           7,921

East Tennessee                        3,233             376           3,609

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

  Total NPAs                 $       71,065  $       47,584  $      118,649

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





NPA ACTIVITY

Beginning Balance            $       83,769  $       54,378  $      138,147

Loans placed on non-accrual          35,911               -          35,911

Payments received                    (7,702)              -          (7,702)

Loan charge-offs                    (18,888)              -         (18,888)

Foreclosures                        (22,025)         22,025               -

Capitalized costs                         -              20              20

Note / property sales                     -         (28,939)        (28,939)

Loans held for sale                       -               -               -

Write downs                               -          (3,118)         (3,118)

Net losses on sales                       -           3,218           3,218

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

  Ending Balance             $       71,065  $       47,584  $      118,649

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



(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) The NPA activity shown for the first quarter of 2011 is presented with

 all activity related to loans transferred to the loans held for sale

 classification on one line as if those loans were transferred to held for

 sale at the beginning of the period.



(3) Includes charge-offs on loans related to United's previously announced

 asset disposition plan. Such charge-offs severely distorted charge off

 rates for the first and second quarters of 2011. A separate schedule has

 been included in this earnings release presenting the components of net

 charge-offs by loan category and geographic market for the first and

 second quarters of 2011.



(4) 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.



(5) Annualized.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality (1)





                                         First Quarter 2011 (2)

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

                             Non-performing    Foreclosed        Total

(in thousands)                    Loans        Properties         NPAs

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

NPAs BY CATEGORY

Commercial (sec. by RE)      $       20,648  $        7,886  $       28,534

Commercial construction               3,701          11,568          15,269

Commercial & industrial               2,198               -           2,198

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

 Total commercial                    26,547          19,454          46,001

Residential construction             32,038          25,807          57,845

Residential mortgage                 23,711           9,117          32,828

Consumer / installment                1,473               -           1,473

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

 Total NPAs                  $       83,769  $       54,378  $      138,147

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

Balance as a % of

  Unpaid Principal                     57.3%           30.3%           42.4%



NPAs BY MARKET

Atlanta MSA                  $       21,501  $       16,913  $       38,414

Gainesville MSA                       4,332           2,157           6,489

North Georgia                        30,214          23,094          53,308

Western North Carolina               18,849           7,802          26,651

Coastal Georgia                       5,847           3,781           9,628

East Tennessee                        3,026             631           3,657

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

 Total NPAs                  $       83,769  $       54,378  $      138,147

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





NPA ACTIVITY

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

Loans placed on non-accrual          54,730               -          54,730

Payments received                    (3,550)              -          (3,550)

Loan charge-offs                    (43,969)              -         (43,969)

Foreclosures                        (17,052)         17,052               -

Capitalized costs                         -             270             270

Note / property sales               (11,400)        (44,547)        (55,947)

Loans held for sale                 (74,084)              -         (74,084)

Write downs                               -         (48,585)        (48,585)

Net losses on sales                       -         (12,020)        (12,020)

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

 Ending Balance              $       83,769  $       54,378  $      138,147

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



(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) The NPA activity shown for the first quarter of 2011 is presented with

 all activity related to loans transferred to the loans held for sale

 classification on one line as if those loans were transferred to held for

 sale at the beginning of the period.



(3) Includes charge-offs on loans related to United's previously announced

 asset disposition plan. Such charge-offs severely distorted charge off

 rates for the first and second quarters of 2011. A separate schedule has

 been included in this earnings release presenting the components of net

 charge-offs by loan category and geographic market for the first and

 second quarters of 2011.



(4) 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.



(5) Annualized.









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)

Loans held for sale                       -               -               -

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.



(2) The NPA activity shown for the first quarter of 2011 is presented with

 all activity related to loans transferred to the loans held for sale

 classification on one line as if those loans were transferred to held for

 sale at the beginning of the period.



(3) Includes charge-offs on loans related to United's previously announced

 asset disposition plan. Such charge-offs severely distorted charge off

 rates for the first and second quarters of 2011. A separate schedule has

 been included in this earnings release presenting the components of net

 charge-offs by loan category and geographic market for the first and

 second quarters of 2011.



(4) 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.



(5) Annualized.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality(1)



                   Second Quarter       First Quarter      Fourth Quarter

                       2011 (3)            2011 (3)           2010 (4)

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

                             Net                 Net                Net

                           Charge-             Charge-             Charge-

                    Net    Offs to      Net    Offs to      Net    Offs to

                  Charge-  Average    Charge-  Average    Charge-  Average

(in thousands)      Offs   Loans(5)     Offs   Loans(5)     Offs   Loans(5)

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

NET CHARGE-OFFS BY

 CATEGORY

Commercial (sec.

 by RE)          $   3,259      .76% $  48,607    11.07% $   6,493     1.45%

Commercial

 construction          869     1.70     49,715    76.95      3,924     5.12

Commercial &

 industrial            523      .49      4,040     3.64      2,891     2.54

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

  Total

   commercial        4,651      .79    102,362    16.66     13,308     2.09

Residential

 construction        6,629     5.04     92,138    58.20     24,497    13.28

Residential

 mortgage            4,589     1.55     36,383    11.62      9,176     2.80

Consumer /

 installment           614     2.04        691     2.16        687     2.06

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

  Total          $  16,483     1.58  $ 231,574    20.71  $  47,668     4.03

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





NET CHARGE-OFFS BY MARKET

Atlanta MSA      $   2,920      .99% $  56,489    17.86% $  15,222     4.48%

Gainesville MSA      2,318     3.36      8,616    11.93      3,434     4.37

North Georgia        6,575     1.72    123,305    29.66     18,537     4.26

Western North

 Carolina            3,522     2.21     26,447    15.61      5,154     2.87

Coastal Georgia        815     1.02     12,003    14.80      3,670     4.27

East Tennessee         333      .54      4,714     7.47      1,651     2.53

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

  Total          $  16,483     1.58  $ 231,574    20.71  $  47,668     4.03

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



(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) The NPA activity shown for the first quarter of 2011 is presented with

 all activity related to loans transferred to the loans held for sale

 classification on one line as if those loans were transferred to held for

 sale at the beginning of the period.



(3) Includes charge-offs on loans related to United's previously announced

 asset disposition plan. Such charge-offs severely distorted charge off

 rates for the first and second quarters of 2011. A separate schedule has

 been included in this earnings release presenting the components of net

 charge-offs by loan category and geographic market for the first and

 second quarters of 2011.



(4) 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.



(5) Annualized.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Net Charge-Off Summary(1)



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



                                              Second Quarter 2011

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

                                                    Problem

                                                     Asset

                                                  Disposition

(in thousands)                         Other         Plan          Total

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

BY CATEGORY

Commercial (sec. by RE)            $       4,972 $     (1,713) $       3,259

Commercial construction                    2,201       (1,332)           869

Commercial & industrial                      639         (116)           523

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

  Total commercial                         7,812       (3,161)         4,651

Residential construction                   9,471       (2,842)         6,629

Residential mortgage                       5,844       (1,255)         4,589

Consumer / installment                       625          (11)           614

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

  Total                            $      23,752 $     (7,269) $      16,483

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



BY MARKET

Atlanta MSA                        $       4,875 $     (1,955) $       2,920

Gainesville MSA                            2,576         (258)         2,318

North Georgia                             10,360       (3,785)         6,575

Western North Carolina                     4,263         (741)         3,522

Coastal Georgia                            1,206         (391)           815

East Tennessee                               472         (139)           333

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

  Total                            $      23,752 $     (7,269) $      16,483

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





(1) This schedule presents net charge-offs by loan type and geographic

 market separated between those charge offs related to United's first

 quarter 2011 Problem Asset Disposition Plan including losses on loans sold

 in the bulk loan sale transaction that closed on April 18, 2011 and all

 other charge-offs. The charge-offs on the bulk loan sale recognized in the

 first quarter were estimated based on indicative bids from prospective

 buyers. Actual losses were less than estimated resulting in an adjustment

 to the loss in the second quarter.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Net Charge-Off Summary(1)



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



                                               First Quarter 2011

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

                                                 Problem Asset

                                                  Disposition

(in thousands)                         Other          Plan         Total

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

BY CATEGORY

Commercial (sec. by RE)            $       2,842 $      45,765 $      48,607

Commercial construction                    1,146        48,569        49,715

Commercial & industrial                      513         3,527         4,040

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

  Total commercial                         4,501        97,861       102,362

Residential construction                  10,643        81,495        92,138

Residential mortgage                       4,989        31,394        36,383

Consumer / installment                       383           308           691

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

  Total                            $      20,516 $     211,058 $     231,574

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



BY MARKET

Atlanta MSA                        $       3,296 $      53,193 $      56,489

Gainesville MSA                              954         7,662         8,616

North Georgia                              8,544       114,761       123,305

Western North Carolina                     6,749        19,698        26,447

Coastal Georgia                              341        11,662        12,003

East Tennessee                               632         4,082         4,714

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

  Total                            $      20,516 $     211,058 $     231,574

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





(1) This schedule presents net charge-offs by loan type and geographic

 market separated between those charge offs related to United's first

 quarter 2011 Problem Asset Disposition Plan including losses on loans sold

 in the bulk loan sale transaction that closed on April 18, 2011 and all

 other charge-offs. The charge-offs on the bulk loan sale recognized in the

 first quarter were estimated based on indicative bids from prospective

 buyers. Actual losses were less than estimated resulting in an adjustment

 to the loss in the second quarter.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Net Charge-Off Summary(1)



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



                                             First Six Months 2011

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

                                                 Problem Asset

                                                  Disposition

(in thousands)                         Other          Plan         Total

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

BY CATEGORY

Commercial (sec. by RE)            $       7,814 $      44,052 $      51,866

Commercial construction                    3,347        47,237        50,584

Commercial & industrial                    1,152         3,411         4,563

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

 Total commercial                         12,313        94,700       107,013

Residential construction                  20,114        78,653        98,767

Residential mortgage                      10,833        30,139        40,972

Consumer / installment                     1,008           297         1,305

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

 Total                             $      44,268 $     203,789 $     248,057

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



BY MARKET

Atlanta MSA                        $       8,171 $      51,238 $      59,409

Gainesville MSA                            3,530         7,404        10,934

North Georgia                             18,904       110,976       129,880

Western North Carolina                    11,012        18,957        29,969

Coastal Georgia                            1,547        11,271        12,818

East Tennessee                             1,104         3,943         5,047

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

 Total                             $      44,268 $     203,789 $     248,057

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





(1) This schedule presents net charge-offs by loan type and geographic

 market separated between those charge offs related to United's first

 quarter 2011 Problem Asset Disposition Plan including losses on loans sold

 in the bulk loan sale transaction that closed on April 18, 2011 and all

 other charge-offs. The charge-offs on the bulk loan sale recognized in the

 first quarter were estimated based on indicative bids from prospective

 buyers. Actual losses were less than estimated resulting in an adjustment

 to the loss in the second quarter.









UNITED COMMUNITY BANKS, INC.

Consolidated Statement of Operations (Unaudited)



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

                                                    Three Months Ended

                                                         June 30,

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

(in thousands, except per share data)               2011           2010

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



Interest revenue:

  Loans, including fees                        $      60,958  $      70,611

  Investment securities, including tax exempt

   of $251, $295, $510 and $606                       14,792         15,829

  Federal funds sold, commercial paper and

   deposits in banks                                     752            759

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

      Total interest revenue                          76,502         87,199

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



Interest expense:

  Deposits:

    NOW                                                1,036          1,745

    Money market                                       1,499          1,829

    Savings                                               64             83

    Time                                              10,995         17,718

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

      Total deposit interest expense                  13,594         21,375

  Federal funds purchased, repurchase

   agreements and other short-term borrowings          1,074          1,056

  Federal Home Loan Bank advances                        570            974

  Long-term debt                                       2,747          2,667

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

    Total interest expense                            17,985         26,072

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

    Net interest revenue                              58,517         61,127

  Provision for loan losses                           11,000         61,500

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

    Net interest revenue after provision for

     loan losses                                      47,517           (373)

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



Fee revenue:

  Service charges and fees                             7,608          7,993

  Mortgage loan and other related fees                   952          1,601

  Brokerage fees                                         691            586

  Securities gains, net                                  783              -

  Loss from prepayment of debt                          (791)             -

  Other                                                4,662          1,399

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

    Total fee revenue                                 13,905         11,579

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

    Total revenue                                     61,422         11,206

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



Operating expenses:

  Salaries and employee benefits                      26,436         23,590

  Communications and equipment                         3,378          3,511

  Occupancy                                            3,805          3,836

  Advertising and public relations                     1,317          1,352

  Postage, printing and supplies                       1,085            765

  Professional fees                                    2,350          2,178

  Foreclosed property                                  1,891         14,540

  FDIC assessments and other regulatory

   charges                                             3,644          3,566

  Amortization of intangibles                            760            794

  Other                                                4,062          4,176

  Loss on sale of nonperforming assets                     -         45,349

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

    Total operating expenses                          48,728        103,657

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

  Income (loss) from continuing operations

   before income taxes                                12,694        (92,451)

  Income tax expense (benefit)                         5,077        (32,919)

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

    Net income (loss) from continuing

     operations                                        7,617        (59,532)

  Loss from discontinued operations, net of

   income taxes                                            -              -

  Gain from sale of subsidiary, net of income

   taxes and selling costs                                 -              -

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

    Net income (loss)                                  7,617        (59,532)

  Preferred stock dividends and discount

   accretion                                           3,016          2,577

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

    Net income (loss) available to common

     shareholders                              $       4,601  $     (62,109)

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



Earnings (loss) from continuing operations per

 common share - Basic                          $         .18  $       (3.29)

Earnings (loss) from continuing operations per

 common share - Diluted                                  .08          (3.29)

Earnings (loss) per common share - Basic                 .18          (3.29)

Earnings (loss) per common share - Diluted               .08          (3.29)

Weighted average common shares outstanding -

 Basic                                                25,427         18,905

Weighted average common shares outstanding -

 Diluted                                              57,543         18,905









UNITED COMMUNITY BANKS, INC.

Consolidated Statement of Operations (Unaudited)



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

                                                     Six Months Ended

                                                         June 30,

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

(in thousands, except per share data)               2011           2010

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



Interest revenue:

  Loans, including fees                        $     122,065  $     142,826

  Investment securities, including tax exempt

   of $251, $295, $510 and $606                       28,396         32,032

  Federal funds sold, commercial paper and

   deposits in banks                                   1,571          1,697

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

      Total interest revenue                         152,032        176,555

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



Interest expense:

  Deposits:

    NOW                                                2,360          3,599

    Money market                                       3,527          3,586

    Savings                                              141            167

    Time                                              22,727         37,916

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

      Total deposit interest expense                  28,755         45,268

  Federal funds purchased, repurchase

   agreements and other short-term borrowings          2,116          2,094

  Federal Home Loan Bank advances                      1,160          1,951

  Long-term debt                                       5,527          5,329

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

    Total interest expense                            37,558         54,642

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

    Net interest revenue                             114,474        121,913

  Provision for loan losses                          201,000        136,500

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

    Net interest revenue after provision for

     loan losses                                     (86,526)       (14,587)

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



Fee revenue:

  Service charges and fees                            14,328         15,440

  Mortgage loan and other related fees                 2,446          3,080

  Brokerage fees                                       1,368          1,153

  Securities gains, net                                  838             61

  Loss from prepayment of debt                          (791)             -

  Other                                                7,554          3,511

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

    Total fee revenue                                 25,743         23,245

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

    Total revenue                                    (60,783)         8,658

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



Operating expenses:

  Salaries and employee benefits                      51,360         47,950

  Communications and equipment                         6,722          6,784

  Occupancy                                            7,879          7,650

  Advertising and public relations                     2,295          2,395

  Postage, printing and supplies                       2,203          1,990

  Professional fees                                    5,680          4,121

  Foreclosed property                                 66,790         25,353

  FDIC assessments and other regulatory

   charges                                             9,057          7,192

  Amortization of intangibles                          1,522          1,596

  Other                                               10,491          8,097

  Loss on sale of nonperforming assets                     -         45,349

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

    Total operating expenses                         163,999        158,477

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

  Income (loss) from continuing operations

   before income taxes                              (224,782)      (149,819)

  Income tax expense (benefit)                       (89,913)       (55,829)

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

    Net income (loss) from continuing

     operations                                     (134,869)       (93,990)

  Loss from discontinued operations, net of

   income taxes                                            -           (101)

  Gain from sale of subsidiary, net of income

   taxes and selling costs                                 -          1,266

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

    Net income (loss)                               (134,869)       (92,825)

  Preferred stock dividends and discount

   accretion                                           5,794          5,149

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

    Net income (loss) available to common

     shareholders                              $    (140,663) $     (97,974)

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



Earnings (loss) from continuing operations per

 common share - Basic                          $       (6.40) $       (5.25)

Earnings (loss) from continuing operations per

 common share - Diluted                                (6.40)         (5.25)

Earnings (loss) per common share - Basic               (6.40)         (5.19)

Earnings (loss) per common share - Diluted             (6.40)         (5.19)

Weighted average common shares outstanding -

 Basic                                                21,965         18,891

Weighted average common shares outstanding -

 Diluted                                              21,965         18,891









UNITED COMMUNITY BANKS, INC.

Consolidated Balance Sheet



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

(in thousands, except share and                 December 31,

 per share data)                June 30, 2011       2010      June 30, 2010

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

                                 (unaudited)     (audited)     (unaudited)

ASSETS

  Cash and due from banks       $     163,331  $      95,994  $     115,088

  Interest-bearing deposits in

   banks                               41,863        111,901        105,183

  Federal funds sold,

   commercial paper and short-

   term investments                   174,996        441,562        148,227

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

    Cash and cash equivalents         380,190        649,457        368,498

  Securities available for sale     1,816,613      1,224,417      1,165,776

  Securities held to maturity

   (fair value $379,231,

   267,988 and $327,497)              371,578        265,807        322,148

  Mortgage loans held for sale         19,406         35,908         22,705

  Loans, net of unearned income     4,163,447      4,604,126      4,873,030

    Less allowance for loan

     losses                           127,638        174,695        174,111

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

      Loans, net                    4,035,809      4,429,431      4,698,919

  Assets covered by loss

   sharing agreements with the

   FDIC                                95,726        131,887        156,611

  Premises and equipment, net         178,208        178,239        180,125

  Accrued interest receivable          21,291         24,299         29,650

  Goodwill and other intangible

   assets                               9,922         11,446        223,600

  Foreclosed property                  47,584        142,208        123,910

  Net deferred tax asset              261,268        166,937        111,485

  Other assets                        172,074        183,160        249,057

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

    Total assets                $   7,409,669  $   7,443,196  $   7,652,484

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

LIABILITIES AND SHAREHOLDERS'

 EQUITY

Liabilities:

  Deposits:

    Demand                      $     899,017  $     793,414  $     779,934

    NOW                             1,306,109      1,424,781      1,326,861

    Money market                      989,600        891,252        756,370

    Savings                           197,927        183,894        185,176

    Time:

      Less than $100,000            1,508,444      1,496,700      1,575,211

      Greater than $100,000           981,154      1,002,359      1,093,975

      Brokered                        300,964        676,772        611,985

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

        Total deposits              6,183,215      6,469,172      6,329,512

  Federal funds purchased,

   repurchase agreements, and

   other short-term borrowings        103,666        101,067        104,127

  Federal Home Loan Bank

   advances                            40,625         55,125        104,138

  Long-term debt                      150,186        150,146        150,106

  Unsettled securities

   purchases                           35,634              -         20,941

  Accrued expenses and other

   liabilities                         36,368         32,171         39,243

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

    Total liabilities               6,549,694      6,807,681      6,748,067

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

Shareholders' equity:

  Preferred stock, $1 par

   value; 10,000,000 shares

   authorized;

    Series A; $10 stated value;

     21,700 shares issued and

     outstanding                          217            217            217

    Series B; $1,000 stated

     value; 180,000 shares

     issued and outstanding           176,392        175,711        175,050

    Series D; $1,000 stated

     value; 16,613 shares

     issued and outstanding            16,613              -              -

  Common stock, $1 par value;

   100,000,000 shares

   authorized; 41,554,874,

   18,937,001 and 18,856,185

   shares issued and

   outstanding                         41,555         18,937         18,856

  Common stock, non-voting, $1

   par value; 30,000,000 shares

   authorized; 15,914,209

   shares issued and

   outstanding                         15,914              -              -

  Common stock issuable;

   83,575, 67,287 and 56,954

   shares                               3,574          3,894          3,898

  Capital surplus                   1,051,607        741,244        739,261

  Accumulated deficit                (476,230)      (335,567)       (77,590)

  Accumulated other

   comprehensive income                30,333         31,079         44,725

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

    Total shareholders' equity        859,975        635,515        904,417

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

    Total liabilities and

     shareholders' equity       $   7,409,669  $   7,443,196  $   7,652,484

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









UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended June 30,



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

                                                             2011

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

                                               Average                Avg.

(dollars in thousands, taxable equivalent)     Balance     Interest   Rate

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

Assets:

Interest-earning assets:

  Loans, net of unearned income (1)(2)       $4,266,211  $    60,958   5.73%

  Taxable securities (3)                      2,048,683       14,541   2.84

  Tax-exempt securities (1)(3)                   25,044          411   6.56

  Federal funds sold and other interest-

   earning assets                               583,832        1,021    .70

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



    Total interest-earning assets             6,923,770       76,931   4.45

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

Non-interest-earning assets:

  Allowance for loan losses                    (139,744)

  Cash and due from banks                       119,801

  Premises and equipment                        178,949

  Other assets (3)                              540,943

                                             ----------

    Total assets                             $7,623,719

                                             ==========



Liabilities and Shareholders' Equity:

Interest-bearing liabilities:

  Interest-bearing deposits:

    NOW                                      $1,310,441        1,036    .32

    Money market                                979,432        1,499    .61

    Savings                                     195,946           64    .13

    Time less than $100,000                   1,541,909        4,990   1.30

    Time greater than $100,000                  988,810        3,873   1.57

    Brokered                                    473,161        2,132   1.81

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

      Total interest-bearing deposits         5,489,699       13,594    .99

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



    Federal funds purchased and other

     borrowings                                 103,156        1,074   4.18

    Federal Home Loan Bank advances              52,735          570   4.34

    Long-term debt                              150,178        2,747   7.34

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

      Total borrowed funds                      306,069        4,391   5.75

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



Total interest-bearing liabilities            5,795,768       17,985   1.24

                                                         -----------

Non-interest-bearing liabilities:

  Non-interest-bearing deposits                 882,151

  Other liabilities                              91,353

                                             ----------

    Total liabilities                         6,769,272

Shareholders' equity                            854,447

                                             ----------

    Total liabilities and shareholders'

     equity                                  $7,623,719

                                             ==========



Net interest revenue                                     $    58,946

                                                         ===========

Net interest-rate spread                                               3.21%

                                                                     ======



Net interest margin(4)                                                 3.41%

                                                                     ======



(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 and loans that are held for

 sale.

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

 unrealized gains of $32.2 million in 2011 and $43.6 million in 2010 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 June 30,



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

                                                             2010

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

                                               Average                Avg.

(dollars in thousands, taxable equivalent)     Balance     Interest   Rate

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

Assets:

Interest-earning assets:

  Loans, net of unearned income (1)(2)       $5,010,937  $    70,640   5.65%

  Taxable securities (3)                      1,503,162       15,534   4.13

  Tax-exempt securities (1)(3)                   28,920          482   6.67

  Federal funds sold and other interest-

   earning assets                               311,475        1,043   1.34

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



    Total interest-earning assets             6,854,494       87,699   5.13

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

Non-interest-earning assets:

  Allowance for loan losses                    (193,998)

  Cash and due from banks                       100,931

  Premises and equipment                        181,064

  Other assets (3)                              761,803

                                             ----------

    Total assets                             $7,704,294

                                             ==========



Liabilities and Shareholders' Equity:

Interest-bearing liabilities:

  Interest-bearing deposits:

    NOW                                      $1,325,099        1,745    .53

    Money market                                746,039        1,829    .98

    Savings                                     186,628           83    .18

    Time less than $100,000                   1,605,308        7,887   1.97

    Time greater than $100,000                1,110,010        6,102   2.20

    Brokered                                    642,954        3,729   2.33

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

      Total interest-bearing deposits         5,616,038       21,375   1.53

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



    Federal funds purchased and other

     borrowings                                 104,637        1,056   4.05

    Federal Home Loan Bank advances             107,948          974   3.62

    Long-term debt                              150,097        2,667   7.13

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

      Total borrowed funds                      362,682        4,697   5.19

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



      Total interest-bearing liabilities      5,978,720       26,072   1.75

                                                         -----------

Non-interest-bearing liabilities:

  Non-interest-bearing deposits                 758,558

  Other liabilities                              54,931

                                             ----------

    Total liabilities                         6,792,209

Shareholders' equity                            912,085

                                             ----------

    Total liabilities and shareholders'

     equity                                  $7,704,294

                                             ==========



Net interest revenue                                     $    61,627

                                                         ===========

Net interest-rate spread                                               3.38%

                                                                     ======



Net interest margin(4)                                                 3.60%

                                                                     ======



(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 and loans that are held for

 sale.

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

 unrealized gains of $32.2 million in 2011 and $43.6 million in 2010 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 Six Months Ended June 30,



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

                                                             2011

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

                                               Average                Avg.

(dollars in thousands, taxable equivalent)     Balance     Interest   Rate

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

Assets:

Interest-earning assets:

  Loans, net of unearned income (1)(2)       $4,431,617  $   122,028   5.55%

  Taxable securities (3)                      1,825,322       27,886   3.06

  Tax-exempt securities (1)(3)                   25,434          835   6.57

  Federal funds sold and other interest-

   earning assets                               630,384        2,147    .68

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



    Total interest-earning assets             6,912,757      152,896   4.45

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

Non-interest-earning assets:

  Allowance for loan losses                    (154,347)

  Cash and due from banks                       127,031

  Premises and equipment                        179,150

  Other assets (3)                              544,625

                                             ----------

    Total assets                             $7,609,216

                                             ==========



Liabilities and Shareholders' Equity:

Interest-bearing liabilities:

  Interest-bearing deposits:

    NOW                                      $1,341,618        2,360    .35

    Money market                                954,128        3,527    .75

    Savings                                     191,708          141    .15

    Time less than $100,000                   1,541,130       10,441   1.37

    Time greater than $100,000                  989,840        8,024   1.63

    Brokered                                    585,103        4,262   1.47

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

      Total interest-bearing deposits         5,603,527       28,755   1.03

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



    Federal funds purchased and other

     borrowings                                 102,132        2,116   4.18

    Federal Home Loan Bank advances              53,923        1,160   4.34

    Long-term debt                              150,169        5,527   7.42

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

      Total borrowed funds                      306,224        8,803   5.80

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



Total interest-bearing liabilities            5,909,751       37,558   1.28

                                                         -----------

Non-interest-bearing liabilities:

    Non-interest-bearing deposits               861,864

    Other liabilities                            75,083

                                             ----------

      Total liabilities                       6,846,698

Shareholders' equity                            762,518

                                             ----------

      Total liabilities and shareholders'

       equity                                $7,609,216

                                             ==========



Net interest revenue                                     $   115,338

                                                         ===========

Net interest-rate spread                                               3.17%

                                                                     ======



Net interest margin(4)                                                 3.36%

                                                                     ======



(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 and loans that are held for

 sale.

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

 unrealized gains of $29.7 million in 2011 and $43.4 million in 2010 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 Six Months Ended June 30,



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

                                                            2010

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

                                             Average                  Avg.

(dollars in thousands, taxable equivalent)   Balance      Interest    Rate

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

Assets:

Interest-earning assets:

  Loans, net of unearned income (1)(2)     $ 5,091,445  $    142,859   5.66%

  Taxable securities (3)                     1,495,447        31,426   4.20

  Tax-exempt securities (1)(3)                  29,482           991   6.72

  Federal funds sold and other interest-

   earning assets                              352,683         2,272   1.29

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



    Total interest-earning assets            6,969,057       177,548   5.13

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

Non-interest-earning assets:

  Allowance for loan losses                   (190,662)

  Cash and due from banks                      102,728

  Premises and equipment                       181,493

  Other assets (3)                             762,014

                                           -----------

    Total assets                           $ 7,824,630

                                           ===========



Liabilities and Shareholders' Equity:

Interest-bearing liabilities:

  Interest-bearing deposits:

    NOW                                    $ 1,343,297         3,599    .54

    Money market                               734,817         3,586    .98

    Savings                                    183,555           167    .18

    Time less than $100,000                  1,648,739        16,778   2.05

    Time greater than $100,000               1,132,767        12,872   2.29

    Brokered                                   689,717         8,266   2.42

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

      Total interest-bearing deposits        5,732,892        45,268   1.59

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



    Federal funds purchased and other

     borrowings                                103,355         2,094   4.09

    Federal Home Loan Bank advances            111,150         1,951   3.54

    Long-term debt                             150,088         5,329   7.16

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

      Total borrowed funds                     364,593         9,374   5.18

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



      Total interest-bearing liabilities     6,097,485        54,642   1.81

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

Non-interest-bearing liabilities:

  Non-interest-bearing deposits                738,876

  Other liabilities                             59,605

                                           -----------

    Total liabilities                        6,895,966

  Shareholders' equity                         928,664

                                           -----------

    Total liabilities and shareholders'

     equity                                $ 7,824,630

                                           ===========



Net interest revenue                                    $    122,906

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

Net interest-rate spread                                               3.32%

                                                                     ======



Net interest margin(4)                                                 3.55%

                                                                     ======



(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 and loans that are held for

 sale.

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

 unrealized gains of $29.7 million in 2011 and $43.4 million in 2010 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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