United Community Banks, Inc.
Jan 25, 2012

United Community Banks, Inc. Reports Earnings of $9.9 Million for Fourth Quarter 2011

BLAIRSVILLE, GA -- (MARKET WIRE) -- 01/25/12 -- United Community Banks, Inc. (NASDAQ: UCBI)

United Community Banks, Inc. (NASDAQ: UCBI) today reported net income of $9.9 million, or 12 cents per share, for the fourth quarter of 2011. The fourth quarter results included, among other items, a higher level of foreclosure costs reflecting an increase in sales activities, as well as the positive impact of a $3.5 million reversal of a previously established reserve related to the settlement of a state tax dispute.

The 2011 net loss of $227 million primarily reflects significant credit costs in the first quarter incurred in connection with United's problem asset disposition plan. The plan was executed in connection with raising $380 million of new capital in March 2011.

"United is moving forward with a sound balance sheet and strong capital structure. This is beginning to be demonstrated in our financial results including the fourth quarter profit," stated Jimmy Tallent, United's president and chief executive officer. "Our core pre-tax, pre-credit earnings, excluding one-time items, were above the third quarter. We continued to dispose of problem assets aggressively. We believe the remaining credit challenges are manageable and while we are not invulnerable to the still-fragile economy, our expectation is continued profitability during 2012."

Total loans were $4.1 billion at quarter-end, equal to third quarter and down $494 million from a year earlier. "We have worked diligently to reverse the trend of declining loan balances, and achieved great progress toward that goal during 2011," stated Tallent. "The $494 million decline included $410 million in the first quarter, primarily from the bulk loan sale and de-risking of our balance sheet, which were strategic components of our problem asset disposition plan. We are now in a position to prudently rebuild our loan portfolio and grow net interest revenue and earnings. We are encouraged to have $182 million of new loan commitments with $147 million funded in the fourth quarter and $542 million of new loan commitments with $392 million funded in the full year. The majority were commercial loans."

The fourth quarter provision for loan losses was $14 million, down from an operating provision of $47.7 million a year ago which excluded a recovery of $11.7 million related to a 2007 fraud-related loan charge-off. The third quarter 2011 provision for loan losses was $36 million, including $25 million specifically related to United's largest loan relationship.

Net charge-offs for the fourth quarter were $45.6 million, compared to $17.5 million for the third quarter and down from $47.7 million in operating net charge-offs a year ago. Fourth quarter 2011 net charge-offs included the $25 million charge-off related to a large loan relationship that was reserved for in the third quarter of 2011. Nonperforming assets decreased $28 million during the fourth quarter to $160 million at December 31, 2011, primarily related to this $25 million partial charge-off.

"Nonperforming assets have been written down to levels that should allow for continued liquidation without significant losses," Tallent said. "Total nonperforming assets will continue to be impacted by our ability to liquidate foreclosed properties, and also could be affected by uneven levels of nonperforming loan inflows and charge-offs. Looking ahead, we expect our overall credit trends to improve during 2012, although not necessarily on a straight line."

Taxable equivalent net interest revenue of $59.1 million declined slightly from the third quarter. Compared with the fourth quarter of 2010, net interest revenue declined $1.1 million, primarily due to a decrease in interest revenue resulting from a $593 million reduction in average loan balances. The effect of this reduction was significantly offset by lower interest expense due to reductions in deposit rates. Net interest margin was 3.51 percent for the fourth quarter of 2011, down seven basis points from a year ago and four basis points from the third quarter.

"Loan and deposit growth are key for increasing core earnings," Tallent commented. "The weak economy has created a highly competitive environment for good, quality loans and recognizing this, we are gaining traction with the addition of seasoned lenders in key markets. We have had tremendous success attracting core transaction deposits -- increasing the balance by $266 million in 2011, or 10 percent, from a year ago and we remain sharply focused on growing core deposits. This focus continues is 2012."

Fee revenue was $12.7 million in the fourth quarter of 2011, compared to $11.5 million in the third quarter and $12.4 million a year ago. Service charges and fees were $7.2 million, up $209,000 from a year ago, due primarily to a $434,000 increase in ATM and debit card revenue, which totaled $3.0 million. However, these fees were partially offset by a $295,000 decline in overdraft fees resulting from lower volumes. Mortgage fees of $1.8 million were up $677,000 from the third quarter and down $43,000 from a year ago. The comparisons to prior periods are significantly influenced by the interest rate environment and refinancing activities.

Other fee revenue of $2.8 million reflected an increase of $828,000 from the third quarter of 2011, and an increase of $51,000 from the fourth quarter of 2010. The increase from the third quarter was primarily due to the recognition of a $728,000 gain from the sale of low-income housing tax credits, while the fourth quarter of 2010 included a similar gain. Also included in each period was the recognition of deferred gains relating to the ineffectiveness of terminated cash flow hedges on certain prime-based loans. Hedge ineffectiveness gains recognized in the fourth quarter were $313,000, compared with $575,000 in the third quarter and $400,000 a year ago.

Excluding foreclosed property costs, fourth quarter 2011 operating expenses were $41.8 million, down from the third quarter of 2011 and fourth quarter of 2010 by $1.9 million and $2.5 million, respectively. The decrease from the third quarter was mostly in salaries and employee benefits. The decrease from a year ago was mostly due to lower professional fees, a lower FDIC assessment and lower salaries and employee benefits.

Foreclosed property costs for the fourth quarter of 2011 were $9.3 million as compared to $2.8 million last quarter and $20.6 million a year ago. The fourth quarter of 2011 included $2.4 million for maintenance of foreclosed properties and $6.9 million in net losses and write-downs on properties. For the third quarter of 2011, foreclosed property costs included $1.8 million in maintenance and $968,000 in net losses and write-downs. Fourth quarter 2010 costs included $4.8 million in maintenance and $15.8 million in net write-downs and losses.

The income tax benefit for the fourth quarter included the release of $3.5 million from a previously established reserve for uncertain tax positions upon the settlement of a state tax dispute. United's third quarter tax benefit also included the release of approximately $1.1 million in reserves for uncertain tax positions relating to state tax returns that have expired. Excluding these items, the tax provision for both periods was minimal due to the full deferred tax asset valuation allowance.

"Earlier this month we announced we would record a full valuation allowance for our net deferred tax asset, and that we would restate our previously filed financial reports going back to the fourth quarter of 2010," Tallent said. "This restatement results from an ongoing comment process with the SEC which we believe has now been resolved. While the comment process outcome was disappointing, it had no effect on our positive momentum and outlook."

Tallent continued, "The full valuation allowance results from a difference in judgment regarding the weighting of evidence supporting our deferred tax asset. We are now placing more weight on the objective negative evidence represented by our recent cumulative losses rather than the more subjective positive evidence represented by our future earnings forecasts. Once we have achieved sustained profitability and improved credit performance such that the weighting of the evidence shifts, we would expect to be able to reverse the valuation allowance. At December 31, 2011, the $268 million valuation allowance reduced Tangible Book Value per share by $4.65 and Tangible Common Equity-to-Assets ratio by approximately 2.83 percent.

As of December 31, 2011, capital ratios for United were as follows: Tier 1 Risk-Based of 13.6 percent; Tier 1 Leverage of 8.8 percent; and Total Risk-Based of 15.4 percent. The Tier 1 Common Risk-Based ratio was 8.2 and the Tangible Common Equity-to-Assets ratio was 5.4 percent.

United also reported today that Clifford V. Brokaw, a managing director of Corsair Capital LLC, United's largest shareholder, has been named to its board of directors, subject to regulatory approval, and to its wholly owned subsidiary, United Community Bank. Brokaw succeeds Corsair Capital's previous board appointee, Peter Raskind, who is expected to be named a director of one of the nation's largest banks. Under regulatory requirements he is unable to serve as a board member simultaneously on more than one large bank holding company or bank board. In addition to Corsair, Brokaw has been a managing director of the financial institutions group at Goldman Sachs & Co, worked in the mergers and acquisitions group of J.P. Morgan, and is a director of Torus Insurance Holdings.

"We are delighted to have Cliff join our board," Tallent said. "He has already been a valuable source for guidance and direction as a board observer over the past nine months, and we look forward to his counsel in an official capacity going forward."

Conference Call

United will hold a conference call tomorrow, January 26, 2012, 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 41622107. The conference call also will be webcast and can be accessed by selecting 'Calendar of Events' within the Investor Relations section of the United's website at www.ucbi.com.

About United Community Banks, Inc.

Headquartered in Blairsville, United Community Banks, Inc. is the third-largest bank holding company in Georgia. United has assets of $7.0 billion and operates 27 community banks with 106 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina and east Tennessee. United specializes in providing personalized community banking services to individuals and small to mid-size businesses and also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United's common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at United'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 United's financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United's filings with the Securities and Exchange Commission including its 2010 Annual Report on Form 10-Kand Quarterly Reports on Form 10-Q for the periods ended June 30, 2011 and September 30, 2011 under the sections entitled "Forward-Looking Statements" and "Risk Factors" and in United's Current Reports on Form 8-K. 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

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

                       Fourth     Third     Second     First       Fourth

                       Quarter   Quarter    Quarter   Quarter     Quarter



(in thousands, except

 per share data;

 taxable equivalent)

INCOME SUMMARY

Interest revenue      $ 71,905  $ 74,543   $ 76,931  $  75,965   $  81,215

Interest expense        12,855    15,262     17,985     19,573      21,083

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

  Net interest

   revenue              59,050    59,281     58,946     56,392      60,132

Operating provision

 for loan losses (1)    14,000    36,000     11,000    190,000      47,750

Fee revenue (2)         12,667    11,498     13,905     11,838      12,442

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

  Total operating

   revenue (1)(2)       57,717    34,779     61,851   (121,770)     24,824

Operating expenses

 (3)                    51,080    46,520     48,728    115,271      64,918

Loss on sale of

 nonperforming assets        -         -          -          -           -

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

  Operating income

   (loss) from

   continuing

   operations before

   income taxes          6,637   (11,741)    13,123   (237,041)    (40,094)

Operating income tax

 expense (benefit)      (3,264)     (402)     1,095        295     144,760

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

  Net operating

   income (loss) from

   continuing

   operations

   (1)(2)(3)            9,901    (11,339)   12,028    (237,336)   (184,854)

Noncash goodwill

 impairment charges          -         -          -          -           -

Partial reversal of

 fraud loss provision        -         -          -          -      11,750

Loss from

 discontinued

 operations                  -         -          -          -           -

Gain from sale of

 subsidiary                  -         -          -          -           -

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

  Net income (loss)      9,901   (11,339)    12,028   (237,336)   (173,104)

Preferred dividends

 and discount

 accretion               3,025     3,019      3,016      2,778       2,586

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

Net income (loss)

 available to common

 shareholders         $  6,876  $(14,358)  $  9,012  $(240,114)  $(175,690)

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



PERFORMANCE MEASURES

  Per common share:



    Diluted operating

     income (loss)

     from continuing

     operations

     (1)(2)(3)        $    .12  $   (.25)  $    .16  $  (13.00)  $   (9.87)

    Diluted income

     (loss) from

     continuing

     operations            .12      (.25)       .16     (13.00)      (9.25)

    Diluted income

     (loss)                .12      (.25)       .16     (13.00)      (9.25)

    Book value            6.62      6.77       7.11       2.20       15.40

    Tangible book

     value (5)            6.47      6.61       6.94       1.69       14.80



  Key performance

   ratios:

    Return on equity

     (4)(6)               7.40%   (15.06)%    42.60%   (526.54)%   (196.10)%

    Return on assets

     (6)                   .56      (.64)       .66     (13.04)      (9.47)

    Net interest

     margin (6)           3.51      3.55       3.41       3.30        3.58

    Operating

     efficiency ratio

     from continuing

     operations

     (2)(3)              71.23     65.73      66.88     169.08       89.45

    Equity to assets      8.28      8.55       8.06       6.15        7.80

    Tangible equity

     to assets (5)        8.16      8.42       7.93       6.01        7.64

    Tangible common

     equity to assets

     (5)                  5.38      5.65       1.37       2.70        5.22

    Tangible common

     equity to risk-

     weighted assets

     (5)                  8.22      8.52       8.69        .75        5.64



ASSET QUALITY *

  Non-performing

   loans              $127,479  $144,484   $ 71,065  $  83,769   $ 179,094

  Foreclosed

   properties           32,859    44,263     47,584     54,378     142,208

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

    Total non-

     performing

     assets (NPAs)     160,338   188,747    118,649    138,147     321,302

  Allowance for loan

   losses              114,468   146,092    127,638    133,121     174,695

  Operating net

   charge-offs (1)      45,624    17,546     16,483    231,574      47,668

  Allowance for loan

   losses to loans        2.79%     3.55%      3.07%      3.17%       3.79%

  Operating net

   charge-offs to

   average loans

   (1)(6)                 4.39      1.68       1.58      20.71        4.03

  NPAs to loans and

   foreclosed

   properties             3.87      4.54       2.82       3.25        6.77

  NPAs to total

   assets                 2.30      2.74       1.66       1.79        4.42



AVERAGE BALANCES ($

 in millions)

  Loans               $  4,175  $  4,194   $  4,266  $   4,599   $   4,768

  Investment

   securities            2,141     2,150      2,074      1,625       1,354

  Earning assets         6,688     6,630      6,924      6,902       6,680

  Total assets           7,019     7,000      7,363      7,379       7,254

  Deposits               6,115     6,061      6,372      6,560       6,294

  Shareholders'

   equity                  581       598        594        454         566

  Common shares -

   basic (thousands)    57,646    57,599     25,427     18,466      18,984

  Common shares -

   diluted

   (thousands)          57,646    57,599     57,543     18,466      18,984



AT PERIOD END ($ in

 millions)

  Loans *             $  4,110  $  4,110   $  4,163  $   4,194   $   4,604

  Investment

   securities            2,120     2,123      2,188      1,884       1,490

  Total assets           6,983     6,894      7,152      7,709       7,276

  Deposits               6,098     6,005      6,183      6,598       6,469

  Shareholders'

   equity                  575       583        603        586         469

  Common shares

   outstanding

   (thousands)          57,561    57,510     57,469     20,903      18,937



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

 for fraud-related loan losses of $11.8 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



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

                                                                  Fourth

                                         2011         2010        Quarter

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

                                        Fourth       Fourth

                                       Quarter      Quarter      2011-2010



(in thousands, except per share

 data; taxable equivalent)                                        Change

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

INCOME SUMMARY

Interest revenue                     $    71,905  $    81,215

Interest expense                          12,855       21,083

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

  Net interest revenue                    59,050       60,132           (2)%

Operating provision for loan losses

 (1)                                      14,000       47,750

Fee revenue (2)                           12,667       12,442            2

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

  Total operating revenue (1)(2)          57,717       24,824

Operating expenses (3)                    51,080       64,918          (21)

Loss on sale of nonperforming assets           -            -

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

  Operating income (loss) from

   continuing operations before

   income taxes                            6,637      (40,094)

Operating income tax expense

 (benefit)                                (3,264)     144,760

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

  Net operating income (loss) from

   continuing operations(1)(2)(3)          9,901     (184,854)

Noncash goodwill impairment charges            -            -

Partial reversal of fraud loss

 provision                                     -       11,750

Loss from discontinued operations              -            -

Gain from sale of subsidiary                   -            -

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

  Net income (loss)                        9,901     (173,104)

Preferred dividends and discount

 accretion                                 3,025        2,586

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

Net income (loss) available to

 common shareholders                 $     6,876  $  (175,690)

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



PERFORMANCE MEASURES

  Per common share:

    Diluted operating income (loss)

     from continuing operations

     (1)(2)(3)                       $       .12  $     (9.87)

    Diluted income (loss) from

     continuing operations                   .12        (9.25)

    Diluted income (loss)                    .12        (9.25)

    Book value                              6.62        15.40          (57)

    Tangible book value (5)                 6.47        14.80          (56)



  Key performance ratios:

    Return on equity (4)(6)                 7.40%     (196.10)%

    Return on assets (6)                     .56        (9.47)

    Net interest margin (6)                 3.51         3.58

    Operating efficiency ratio from

     continuing operations (2)(3)          71.23        89.45

    Equity to assets                        8.28         7.80

    Tangible equity to assets (5)           8.16         7.64

    Tangible common equity to assets

     (5)                                    5.38         5.22

    Tangible common equity to risk-

     weighted assets (5)                    8.22         5.64



ASSET QUALITY *

  Non-performing loans               $   127,479  $   179,094

  Foreclosed properties                   32,859      142,208

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

    Total non-performing assets

     (NPAs)                              160,338      321,302

  Allowance for loan losses              114,468      174,695

  Operating net charge-offs (1)           45,624       47,668

  Allowance for loan losses to loans        2.79%        3.79%

  Operating net charge-offs to

   average loans (1)(6)                     4.39         4.03

  NPAs to loans and foreclosed

   properties                               3.87         6.77

  NPAs to total assets                      2.30         4.42



AVERAGE BALANCES ($ in millions)

  Loans                              $     4,175  $     4,768          (12)

  Investment securities                    2,141        1,354           58

  Earning assets                           6,688        6,680            -

  Total assets                             7,019        7,254           (3)

  Deposits                                 6,115        6,294           (3)

  Shareholders' equity                       581          566            3

  Common shares - basic (thousands)       57,646       18,984

  Common shares - diluted

   (thousands)                            57,646       18,984



AT PERIOD END ($ in millions)

  Loans *                            $     4,110  $     4,604          (11)

  Investment securities                    2,120        1,490           42

  Total assets                             6,983        7,276           (4)

  Deposits                                 6,098        6,469           (6)

  Shareholders' equity                       575          469           23

  Common shares outstanding

   (thousands)                            57,561       18,937



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

 for fraud-related loan losses of $11.8 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





                                                                    YTD

                                          For the Twelve         2011-2010

                                           Months Ended           Change





(in thousands, except per share

 data; taxable equivalent)              2011          2010

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

INCOME SUMMARY

Interest revenue                    $   299,344   $   343,123

Interest expense                         65,675       100,071

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

  Net interest revenue                  233,669       243,052           (4)%

Operating provision for loan losses

 (1)                                    251,000       234,750

Fee revenue (2)                          49,908        48,548            3

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

  Total operating revenue (1)(2)         32,577        56,850

Operating expenses (3)                  261,599       242,952            8

Loss on sale of nonperforming

 assets                                       -        45,349

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

  Operating income (loss) from

   continuing operations before

   income taxes                        (229,022)     (231,451)

Operating income tax expense

 (benefit)                               (2,276)       73,218

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

  Net operating income (loss) from

   continuing operations (1)(2)(3)     (226,746)     (304,669)

Noncash goodwill impairment charges           -      (210,590)

Partial reversal of fraud loss

 provision                                    -        11,750

Loss from discontinued operations             -          (101)

Gain from sale of subsidiary                  -         1,266

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

  Net income (loss)                    (226,746)     (502,344)

Preferred dividends and discount

 accretion                               11,838        10,316

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

Net income (loss) available to

 common shareholders                $  (238,584)  $  (512,660)

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



PERFORMANCE MEASURES

  Per common share:

    Diluted operating income (loss)

     from continuing operations

     (1)(2)(3)                      $     (5.97)  $    (16.64)

    Diluted income (loss) from

     continuing operations                (5.97)       (27.15)

    Diluted income (loss)                 (5.97)       (27.09)

    Book value                             6.62         15.40          (57)

    Tangible book value (5)                6.47         14.80          (56)



  Key performance ratios:

    Return on equity (4)(6)              (93.57)%      (85.08)%

    Return on assets (6)                  (3.15)        (6.61)

    Net interest margin (6)                3.44          3.56

    Operating efficiency ratio from

     continuing operations (2)(3)         92.27         98.98

    Equity to assets                       7.75         10.77

    Tangible equity to assets (5)          7.62          8.88

    Tangible common equity to

     assets (5)                            3.74          6.52

    Tangible common equity to risk-

     weighted assets (5)                   8.22          5.64



ASSET QUALITY *

  Non-performing loans              $   127,479   $   179,094

  Foreclosed properties                  32,859       142,208

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

    Total non-performing assets

     (NPAs)                             160,338       321,302

  Allowance for loan losses             114,468       174,695

  Operating net charge-offs (1)         311,227       215,657

  Allowance for loan losses to

   loans                                   2.79%         3.79%

  Operating net charge-offs to

   average loans (1)(6)                    7.33          4.42

  NPAs to loans and foreclosed

   properties                              3.87          6.77

  NPAs to total assets                     2.30          4.42



AVERAGE BALANCES ($ in millions)

  Loans                             $     4,307   $     4,961          (13)

  Investment securities                   1,999         1,453           38

  Earning assets                          6,785         6,822           (1)

  Total assets                            7,189         7,605           (5)

  Deposits                                6,275         6,373           (2)

  Shareholders' equity                      557           819          (32)

  Common shares - basic (thousands)      39,943        18,925

  Common shares - diluted

   (thousands)                           39,943        18,925



AT PERIOD END ($ in millions)

  Loans *                           $     4,110   $     4,604          (11)

  Investment securities                   2,120         1,490           42

  Total assets                            6,983         7,276           (4)

  Deposits                                6,098         6,469           (6)

  Shareholders' equity                      575           469           23

  Common shares outstanding

   (thousands)                           57,561        18,937



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

 for fraud-related loan losses of $11.8 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.

Selected Financial Information

For the Years Ended December 31,





(in thousands,

 except per share

 data; taxable

 equivalent)        2011        2010        2009        2008        2007

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

INCOME SUMMARY

Net interest

 revenue         $  233,669  $  243,052  $  245,227  $  238,704  $  274,483

Operating

 provision for

 loan losses (1)    251,000     234,750     310,000     184,000      37,600

Operating fee

 revenue (2)         49,908      48,548      50,964      46,081      53,701

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

 Total operating

  revenue (1)(2)     32,577      56,850     (13,809)    100,785     290,584

Operating

 expenses (3)       261,599     242,952     217,050     200,335     181,730

Loss on sale of

 nonperforming

 assets                   -      45,349           -           -           -

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

  Operating

   (loss) income

   from

   continuing

   operations

   before taxes    (229,022)   (231,451)   (230,859)    (99,550)    108,854

Operating income

 taxes               (2,276)     73,218     (91,754)    (35,651)     40,266

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

 Net operating

  (loss) income

  from continuing

  operations       (226,746)   (304,669)   (139,105)    (63,899)     68,588

Gain from

 acquisition, net

 of tax                   -           -       7,062           -           -

Noncash goodwill

 impairment

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

Severance cost,

 net of tax

 benefit                  -           -      (1,797)          -           -

Fraud loss

 provision and

 subsequent

 recovery, net of

 tax benefit              -      11,750           -           -     (10,998)

Net (loss) income

 from

 discontinued

 operations               -        (101)        513         449         403

Gain from sale of

 subsidiary, net

 of income taxes

 and selling

 costs                    -       1,266           -           -           -

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

 Net (loss)

  income           (226,746)   (502,344)   (228,327)    (63,450)     57,993

Preferred

 dividends and

 discount

 accretion           11,838      10,316      10,242         724          18

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

 Net (loss)

  income

  available to

  common

  shareholders   $ (238,584) $ (512,660) $ (238,569) $  (64,174) $   57,975

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



PERFORMANCE

 MEASURES

 Per common

  share:

  Diluted

   operating

   (loss)

   earnings from

   continuing

   operations

   (1)(2)(3)     $    (5.97) $   (16.64) $   (12.37) $    (6.82) $     7.36

  Diluted (loss)

   earnings from

   continuing

   operations         (5.97)     (27.15)     (19.80)      (6.82)       6.18

  Diluted (loss)

   earnings           (5.97)     (27.09)     (19.76)      (6.77)       6.22

  Cash dividends

   declared

   (rounded)              -           -           -         .87        1.73

  Stock dividends

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

  Book value           6.62       15.40       41.78       84.75       88.52

  Tangible book

   value (5)           6.47       14.80       30.09       51.93       54.62



 Key performance

  ratios:

  Return on

   equity (4)        (93.57)%    (85.08)%    (34.40)%     (7.82)%      7.79%

  Return on

   assets             (3.15)      (6.61)      (2.76)       (.76)        .75

  Net interest

   margin              3.44        3.56        3.29        3.18        3.88

  Operating

   efficiency

   ratio from

   continuing

   operations

   (2)(3)             92.27       98.98       73.97       70.00       55.53

  Equity to

   assets              7.75       10.77       11.12       10.22        9.61

  Tangible equity

   to assets (5)       7.62        8.88        8.33        6.67        6.63

  Tangible common

   equity to

   assets (5)          3.74        6.52        6.15        6.57        6.63

  Tangible common

   equity to

   risk-weighted

   assets (5)          8.22        5.64       10.39        8.34        8.21



ASSET QUALITY *

 Non-performing

  loans          $  127,479  $  179,094  $  264,092  $  190,723  $   28,219

 Foreclosed

  properties         32,859     142,208     120,770      59,768      18,039

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

  Total non-

   performing

   assets (NPAs)    160,338     321,302     384,862     250,491      46,258

 Allowance for

  loan losses       114,468     174,695     155,602     122,271      89,423

 Operating net

  charge-offs (1)   311,227     215,657     276,669     151,152      21,834

 Allowance for

  loan losses to

  loans                2.79%       3.79%       3.02%       2.14%       1.51%

 Operating net

  charge-offs to

  average loans

  (1)                  7.33        4.42        5.03        2.57         .38

 NPAs to loans

  and foreclosed

  properties           3.87        6.77        7.30        4.35         .78

 NPAs to total

  assets               2.30        4.42        4.81        2.92         .56



AVERAGE BALANCES

 ($ in millions)

 Loans           $    4,307  $    4,961  $    5,548  $    5,891  $    5,735

 Investment

  securities          1,999       1,453       1,656       1,489       1,278

 Earning assets       6,785       6,822       7,465       7,504       7,071

 Total assets         7,189       7,605       8,269       8,319       7,731

 Deposits             6,275       6,373       6,713       6,524       6,029

 Shareholders'

  equity                557         819         920         850         743

 Common shares -

  Basic

  (thousands)        39,943      18,925      12,075       9,474       9,190

 Common shares -

  Diluted

  (thousands)        39,943      18,925      12,075       9,474       9,319



AT YEAR END ($ in

 millions)

 Loans *         $    4,110  $    4,604  $    5,151  $    5,705  $    5,929

 Investment

  securities          2,120       1,490       1,530       1,617       1,357

 Total assets         6,983       7,276       8,000       8,592       8,207

 Deposits             6,098       6,469       6,628       7,004       6,076

 Shareholders'

  equity                575         469         962         989         832

 Common shares

  outstanding

  (thousands)        57,561      18,937      18,809       9,602       9,381



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

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

 2007 and subsequent recovery of $11.8 million in 2010. (2) Excludes the

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

 million in 2009. (3) Excludes the goodwill impairment charges of $211

 million and $95 million in 2010 and 2009, respectively, and severance

 costs of $2.9 million, net of income tax benefit of $1.1 million in 2009.

 (4) Net (loss) income available to common shareholders, which is net of

 preferred stock dividends, divided by average realized common equity,

 which excludes accumulated other comprehensive income (loss). (5) Excludes

 effect of acquisition related intangibles and associated amortization. (6)

 Number of new shares issued for shares currently held.



* Excludes loans and foreclosed properties covered by loss sharing

 agreements with the FDIC.






UNITED COMMUNITY BANKS, INC.

Operating Earnings to GAAP Earnings Reconciliation

Selected Financial Information





                                         2011                        2010

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

                        Fourth     Third      Second     First      Fourth

                       Quarter    Quarter    Quarter    Quarter    Quarter

(in thousands, except

 per share data;

 taxable equivalent)



Interest revenue

 reconciliation

Interest revenue -

 taxable equivalent   $  71,905  $  74,543  $  76,931  $  75,965  $  81,215

Taxable equivalent

 adjustment                (423)      (420)      (429)      (435)      (497)

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

  Interest revenue

   (GAAP)             $  71,482  $  74,123  $  76,502  $  75,530  $  80,718

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



Net interest revenue

 reconciliation

Net interest revenue

 - taxable equivalent $  59,050  $  59,281  $  58,946  $  56,392  $  60,132

Taxable equivalent

 adjustment                (423)      (420)      (429)      (435)      (497)

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

  Net interest

   revenue (GAAP)     $  58,627  $  58,861  $  58,517  $  55,957  $  59,635

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



Provision for loan

 losses

 reconciliation

Operating provision

 for loan losses      $  14,000  $  36,000  $  11,000  $ 190,000  $  47,750

Provision for special

 fraud-related loan

 loss and partial

 recovery                     -          -          -          -    (11,750)

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

  Provision for loan

   losses (GAAP)      $  14,000  $  36,000  $  11,000  $ 190,000  $  36,000

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



Fee revenue

 reconciliation

Operating fee revenue $  12,667  $  11,498  $  13,905  $  11,838  $  12,442

Gain from acquisition         -          -          -          -          -

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

  Fee revenue (GAAP)  $  12,667  $  11,498  $  13,905  $  11,838  $  12,442

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

Total revenue

 reconciliation

Total operating

 revenue              $  57,717  $  34,779  $  61,851  $(121,770) $  24,824

Taxable equivalent

 adjustment                (423)      (420)      (429)      (435)      (497)

Gain from acquisition         -          -          -          -          -

Provision for special

 fraud-related loan

 loss and partial

 recovery                     -          -          -          -     11,750

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

  Total revenue

   (GAAP)             $  57,294  $  34,359  $  61,422  $(122,205) $  36,077

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



Expense

 reconciliation

Operating expense     $  51,080  $  46,520  $  48,728  $ 115,271  $  64,918

Noncash goodwill

 impairment charge            -          -          -          -          -

Severance costs               -          -          -          -          -

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

  Operating expense

   (GAAP)             $  51,080  $  46,520  $  48,728  $ 115,271  $  64,918

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



Income (loss) from

 continuing

 operations before

 taxes reconciliation

Operating income

 (loss) from

 continuing

 operations before

 taxes                $   6,637  $ (11,741) $  13,123  $(237,041) $ (40,094)

Taxable equivalent

 adjustment                (423)      (420)      (429)      (435)      (497)

Gain from acquisition         -          -          -          -          -

Noncash goodwill

 impairment charge            -          -          -          -          -

Severance costs               -          -          -          -          -

Provision for special

 fraud-related loan

 loss and partial

 recovery                     -          -          -          -     11,750

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

  Income (loss) from

   continuing

   operations before

   taxes (GAAP)       $   6,214  $ (12,161) $  12,694  $(237,476) $ (28,841)

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



Income tax (benefit)

 expense

 reconciliation

Operating income tax

 (benefit) expense    $  (3,264) $    (402) $   1,095  $     295  $ 144,760

Taxable equivalent

 adjustment                (423)      (420)      (429)      (435)      (497)

Gain from

 acquisition, tax

 expense                      -          -          -          -          -

Severance costs, tax

 benefit                      -          -          -          -          -

Provision for special

 fraud-related loan

 loss tax benefit             -          -          -          -          -

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

  Income tax

   (benefit) expense

   (GAAP)             $  (3,687) $    (822) $     666  $    (140) $ 144,263

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



Diluted earnings

 (loss) from

 continuing

 operations per

 common share

 reconciliation

Diluted operating

 earnings (loss) from

 continuing

 operations per

 common share         $     .12  $    (.25) $     .16  $  (13.00) $   (9.87)

Gain from acquisition         -          -          -          -          -

Noncash goodwill

 impairment charge            -          -          -          -          -

Severance costs               -          -          -          -          -

Provision for special

 fraud-related loan

 loss and partial

 recovery                     -          -          -          -        .62

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

  Diluted earnings

   (loss) from

   continuing

   operations per

   common share

   (GAAP)             $     .12  $    (.25) $     .16  $  (13.00) $   (9.25)

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



Book value per common

 share reconciliation

Tangible book value

 per common share     $    6.47  $    6.61  $    6.94  $    1.69  $   14.80

Effect of goodwill

 and other

 intangibles                .15        .16        .17        .51        .60

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

  Book value per

   common share

   (GAAP)             $    6.62  $    6.77  $    7.11  $    2.20  $   15.40

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



Efficiency ratio from

 continuing

 operations

 reconciliation

Operating efficiency

 ratio from

 continuing

 operations               71.23%     65.73%     66.88%    169.08%     89.45%

Gain from acquisition         -          -          -          -          -

Noncash goodwill

 impairment charge            -          -          -          -          -

Severance costs               -          -          -          -          -

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

  Efficiency ratio

   from continuing

   operations (GAAP)      71.23%     65.73%     66.88%    169.08%     89.45%

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



Average equity to

 assets

 reconciliation

Tangible common

 equity to assets          5.38%      5.65%      1.37%      2.70%      5.22%

Effect of preferred

 equity                    2.78       2.77       6.56       3.31       2.42

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

  Tangible equity to

   assets                  8.16       8.42       7.93       6.01       7.64

Effect of goodwill

 and other

 intangibles                .12        .13        .13        .14        .16

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

  Equity to assets

   (GAAP)                  8.28%      8.55%      8.06%      6.15%      7.80%

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



Actual tangible

 common equity to

 risk-weighted assets

 reconciliation

Tangible common

 equity to risk-

 weighted assets           8.22%      8.52%      8.69%       .75%      5.64%

Effect of other

 comprehensive income      (.03)      (.29)      (.42)      (.32)      (.42)

Effect of deferred

 tax limitation               -          -          -          -          -

Effect of trust

 preferred                 1.18       1.19       1.15       1.13       1.06

Effect of preferred

 equity                    4.27       4.33       4.20       5.87       3.53

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

  Tier I capital

   ratio (Regulatory)     13.64%     13.75%     13.62%      7.43%      9.81%

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



Net charge-offs

 reconciliation

Operating net charge-

 offs                 $  45,624  $  17,546  $  16,483  $ 231,574  $  47,668

Subsequent partial

 recovery of fraud-

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

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

  Net charge-offs

   (GAAP)             $  45,624  $  17,546  $  16,483  $ 231,574  $  35,918

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



Net charge-offs to

 average loans

 reconciliation

Operating net charge-

 offs to average

 loans                     4.39%      1.68%      1.58%     20.71%      4.03%

Subsequent partial

 recovery of fraud-

 related charge-off           -          -          -          -      (1.00)

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

  Net charge-offs to

   average loans

   (GAAP)                  4.39%      1.68%      1.58%     20.71%      3.03%

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






UNITED COMMUNITY BANKS, INC.

Operating Earnings to GAAP Earnings Reconciliation

Selected Financial Information



                                   For the Twelve Months Ended

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

(in thousands, except

 per share data;

 taxable equivalent)     2011       2010       2009       2008       2007

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



Interest revenue

 reconciliation

Interest revenue -

 taxable equivalent   $ 299,344  $ 343,123  $ 404,961  $ 466,969  $ 550,917

Taxable equivalent

 adjustment              (1,707)    (2,001)    (2,132)    (2,261)    (1,881)

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

  Interest revenue

   (GAAP)             $ 297,637  $ 341,122  $ 402,829  $ 464,708  $ 549,036

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



Net interest revenue

 reconciliation

Net interest revenue

 - taxable equivalent $ 233,669  $ 243,052  $ 245,227  $ 238,704  $ 274,483

Taxable equivalent

 adjustment              (1,707)    (2,001)    (2,132)    (2,261)    (1,881)

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

  Net interest

   revenue (GAAP)     $ 231,962  $ 241,051  $ 243,095  $ 236,443  $ 272,602

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



Provision for loan

 losses

 reconciliation

Operating provision

 for loan losses      $ 251,000  $ 234,750  $ 310,000  $ 184,000  $  37,600

Provision for special

 fraud-related loan

 loss and partial

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

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

  Provision for loan

   losses (GAAP)      $ 251,000  $ 223,000  $ 310,000  $ 184,000  $  55,600

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



Fee revenue

 reconciliation

Operating fee revenue $  49,908  $  48,548  $  50,964  $  46,081  $  53,701

Gain from acquisition         -          -     11,390          -          -

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

  Fee revenue (GAAP)  $  49,908  $  48,548  $  62,354  $  46,081  $  53,701

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

Total revenue

 reconciliation

Total operating

 revenue              $  32,577  $  56,850  $ (13,809) $ 100,785  $ 290,584

Taxable equivalent

 adjustment              (1,707)    (2,001)    (2,132)    (2,261)    (1,881)

Gain from acquisition         -          -     11,390          -          -

Provision for special

 fraud-related loan

 loss and partial

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

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

  Total revenue

   (GAAP)             $  30,870  $  66,599  $  (4,551) $  98,524  $ 270,703

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



Expense

 reconciliation

Operating expense     $ 261,599  $ 288,301  $ 217,050  $ 200,335  $ 181,730

Noncash goodwill

 impairment charge            -    210,590     95,000          -          -

Severance costs               -          -      2,898          -          -

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

  Operating expense

   (GAAP)             $ 261,599  $ 498,891  $ 314,948  $ 200,335  $ 181,730

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



Income (loss) from

 continuing

 operations before

 taxes reconciliation

Operating income

 (loss) from

 continuing

 operations before

 taxes                $(229,022) $(231,451) $(230,859) $ (99,550) $ 108,854

Taxable equivalent

 adjustment              (1,707)    (2,001)    (2,132)    (2,261)    (1,881)

Gain from acquisition         -          -     11,390          -          -

Noncash goodwill

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

Severance costs               -          -     (2,898)         -          -

Provision for special

 fraud-related loan

 loss and partial

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

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

  Income (loss) from

   continuing

   operations before

   taxes (GAAP)       $(230,729) $(432,292) $(319,499) $(101,811) $  88,973

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



Income tax (benefit)

 expense

 reconciliation

Operating income tax

 (benefit) expense    $  (2,276) $  73,218  $ (91,754) $ (35,651) $  40,266

Taxable equivalent

 adjustment              (1,707)    (2,001)    (2,132)    (2,261)    (1,881)

Gain from

 acquisition, tax

 expense                      -          -      4,328          -          -

Severance costs, tax

 benefit                      -          -     (1,101)         -          -

Provision for special

 fraud-related loan

 loss tax benefit             -          -          -          -     (7,002)

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

  Income tax

   (benefit) expense

   (GAAP)             $  (3,983) $  71,217  $ (90,659) $ (37,912) $  31,383

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



Diluted earnings

 (loss) from

 continuing

 operations per

 common share

 reconciliation

Diluted operating

 earnings (loss) from

 continuing

 operations per

 common share         $   (5.97) $  (16.64) $  (12.37) $   (6.82) $    7.36

Gain from acquisition         -          -        .58          -          -

Noncash goodwill

 impairment charge            -     (11.13)     (7.86)         -          -

Severance costs               -          -       (.15)         -          -

Provision for special

 fraud-related loan

 loss and partial

 recovery                     -        .62          -          -      (1.18)

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

  Diluted earnings

   (loss) from

   continuing

   operations per

   common share

   (GAAP)             $   (5.97) $  (27.15) $  (19.80) $   (6.82) $    6.18

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



Book value per common

 share reconciliation

Tangible book value

 per common share     $    6.47  $   14.80  $   30.09  $   51.93  $   54.62

Effect of goodwill

 and other

 intangibles                .15        .60      11.69      32.82      33.90

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

  Book value per

   common share

   (GAAP)             $    6.62  $   15.40  $   41.78  $   84.75  $   88.52

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



Efficiency ratio from

 continuing

 operations

 reconciliation

Operating efficiency

 ratio from

 continuing

 operations               97.27%     98.98%     73.97%     70.00%     55.53%

Gain from acquisition         -          -      (2.77)         -          -

Noncash goodwill

 impairment charge            -      72.29      31.17          -          -

Severance costs               -          -        .95          -          -

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

  Efficiency ratio

   from continuing

   operations (GAAP)      97.27%    171.27%    103.32%     70.00%     55.53%

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



Average equity to

 assets

 reconciliation

Tangible common

 equity to assets          3.74%      6.52%      6.15%      6.57%      6.63%

Effect of preferred

 equity                    3.88       2.36       2.18        .10          -

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

  Tangible equity to

   assets                  7.62       8.88       8.33       6.67       6.63

Effect of goodwill

 and other

 intangibles                .13       1.89       2.79       3.55       2.98

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

  Equity to assets

   (GAAP)                  7.75%     10.77%     11.12%     10.22%      9.61%

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



Actual tangible

 common equity to

 risk-weighted assets

 reconciliation

Tangible common

 equity to risk-

 weighted assets           8.22%      5.64%     10.39%      8.34%      8.21%

Effect of other

 comprehensive income      (.03)      (.42)      (.87)      (.91)      (.23)

Effect of deferred

 tax limitation               -          -      (1.27)         -          -

Effect of trust

 preferred                 1.18       1.06        .97        .88        .65

Effect of preferred

 equity                    4.27       3.53       3.19       2.90          -

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

  Tier I capital

   ratio (Regulatory)     13.64%      9.81%     12.41%     11.21%      8.63%

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



Net charge-offs

 reconciliation

Operating net charge-

 offs                 $ 311,227  $ 215,657  $ 276,669  $ 151,152  $  21,834

Subsequent partial

 recovery of fraud-

 related charge-off           -    (11,750)         -          -     18,000

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

  Net charge-offs

   (GAAP)             $ 311,227  $ 203,907  $ 276,669  $ 151,152  $  39,834

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



Net charge-offs to

 average loans

 reconciliation

Operating net charge-

 offs to average

 loans                     4.39%      4.42%      5.03%      2.57%       .38%

Subsequent partial

 recovery of fraud-

 related charge-off           -       (.25)         -          -        .31

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

  Net charge-offs to

   average loans

   (GAAP)                  4.39%      4.17%      5.03%      2.57%       .69%

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




UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Period-End (1)





                                             2011                     2010

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

                             Fourth    Third     Second    First     Fourth

(in millions)               Quarter   Quarter   Quarter   Quarter   Quarter

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

LOANS BY CATEGORY

Commercial (sec. by RE)    $   1,822 $   1,771 $   1,742 $   1,692 $   1,761

Commercial construction          164       169       195       213       297

Commercial & industrial          428       429       428       431       441

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

    Total commercial           2,414     2,369     2,365     2,336     2,499

Residential construction         448       474       502       550       695

Residential mortgage           1,135     1,150     1,177     1,187     1,279

Consumer / installment           113       117       119       121       131

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

    Total loans            $   4,110 $   4,110 $   4,163 $   4,194 $   4,604

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



LOANS BY MARKET

Atlanta MSA                $   1,220 $   1,192 $   1,188 $   1,179 $   1,310

Gainesville MSA                  265       272       275       282       312

North Georgia                  1,426     1,478     1,500     1,531     1,689

Western North Carolina           597       607       626       640       702

Coastal Georgia                  346       316       325       312       335

East Tennessee                   256       245       249       250       256

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

Total loans                $   4,110 $   4,110 $   4,163 $   4,194 $   4,604

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



RESIDENTIAL CONSTRUCTION

Dirt loans

  Acquisition &

   development             $      88 $      97 $     105 $     116 $     174

  Land loans                      61        60        62        69        99

  Lot loans                      207       216       218       228       275

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

    Total                        356       373       385       413       548

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



House loans

  Spec                            59        64        74        88        97

  Sold                            33        37        43        49        50

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

    Total                         92       101       117       137       147

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

Total residential

 construction              $     448 $     474 $     502 $     550 $     695

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



RESIDENTIAL CONSTRUCTION -

 ATLANTA MSA

Dirt loans

  Acquisition &

   development             $      17 $      19 $      20 $      22 $      30

  Land loans                      14        15        16        19        23

  Lot loans                       22        22        22        24        32

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

    Total                         53        56        58        65        85

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



House loans

  Spec                            27        28        30        34        38

  Sold                             6         8         9        11        10

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

    Total                         33        36        39        45        48

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

Total residential

 construction              $      86 $      92 $      97 $     110 $     133

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



(1) Excludes total loans of $54.5 million, $57.8 million, $70.8 million,

 $63.3 million and $68.2 million as of December 31, 2011, September 30,

 2011, June 30, 2011, March 31, 2011 and December 31, 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   Linked     Year over

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

                           Fourth    Third     Fourth   Quarter       Year

(in millions)             Quarter   Quarter   Quarter    Change     Change

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

LOANS BY CATEGORY

Commercial (sec.by RE)   $   1,822 $   1,771 $   1,761 $      51  $      61

Commercial construction        164       169       297        (5)      (133)

Commercial & industrial        428       429       441        (1)       (13)

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

    Total commercial         2,414     2,369     2,499        45        (85)

Residential construction       448       474       695       (26)      (247)

Residential mortgage         1,135     1,150     1,279       (15)      (144)

Consumer / installment         113       117       131        (4)       (18)

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

    Total loans          $   4,110 $   4,110 $   4,604         -       (494)

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



LOANS BY MARKET

Atlanta MSA              $   1,220 $   1,192 $   1,310        28        (90)

Gainesville MSA                265       272       312        (7)       (47)

North Georgia                1,426     1,478     1,689       (52)      (263)

Western North Carolina         597       607       702       (10)      (105)

Coastal Georgia                346       316       335        30         11

East Tennessee                 256       245       256        11          -

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

    Total loans          $   4,110 $   4,110 $   4,604         -       (494)

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



RESIDENTIAL CONSTRUCTION

Dirt loans

  Acquisition &

   development           $      88 $      97 $     174        (9)       (86)

  Land loans                    61        60        99         1        (38)

  Lot loans                    207       216       275        (9)       (68)

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

    Total                      356       373       548       (17)      (192)

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



House loans

  Spec                          59        64        97        (5)       (38)

  Sold                          33        37        50        (4)       (17)

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

    Total                       92       101       147        (9)       (55)

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

Total residential

 construction            $     448 $     474 $     695       (26)      (247)

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



RESIDENTIAL CONSTRUCTION

 - ATLANTA MSA

Dirt loans

  Acquisition &

   development           $      17 $      19 $      30        (2)       (13)

  Land loans                    14        15        23        (1)        (9)

  Lot loans                     22        22        32         -        (10)

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

    Total                       53        56        85        (3)       (32)

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



House loans

  Spec                          27        28        38        (1)       (11)

  Sold                           6         8        10        (2)        (4)

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

    Total                       33        36        48        (3)       (15)

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

Total residential

 construction            $      86 $      92 $     133        (6)       (47)

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



(1) Excludes total loans of $54.5 million, $57.8 million, $70.8 million,

 $63.3 million and $68.2 million as of December 31, 2011, September 30,

 2011, June 30, 2011, March 31, 2011 and December 31, 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 Year-End (1)





(in millions)                 2011      2010      2009      2008      2007

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

LOANS BY CATEGORY

Commercial (sec. by RE)    $   1,822 $   1,761 $   1,779 $   1,627 $   1,476

Commercial construction          164       297       363       500       527

Commercial & industrial          428       441       390       410       418

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

  Total commercial             2,414     2,499     2,532     2,537     2,421

Residential construction         448       695     1,050     1,479     1,829

Residential mortgage           1,135     1,279     1,427     1,526     1,502

Consumer / installment           113       131       142       163       177

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

  Total loans              $   4,110 $   4,604 $   5,151 $   5,705 $   5,929

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





LOANS BY MARKET

Atlanta MSA                $   1,220 $   1,310 $   1,435 $   1,706 $   2,002

Gainesville MSA                  265       312       390       420       399

North Georgia                  1,426     1,689     1,884     2,040     2,060

Western North Carolina           597       702       772       810       806

Coastal Georgia                  346       335       405       464       416

East Tennessee                   256       256       265       265       246

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

  Total loans              $   4,110 $   4,604 $   5,151 $   5,705 $   5,929

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



(1) Excludes total loans of $54.5 million, $68.2 million and $85.1 million

 as of December 31, 2011, 2010 and 2009, respectively, that are covered by

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

 Southern Community Bank.




UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality (1)





                                               Fourth Quarter 2011

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

                                          Non-

                                       performing   Foreclosed     Total

(in thousands)                           Loans      Properties      NPAs

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

NPAs BY CATEGORY

Commercial (sec.by RE)                $    27,322  $     9,745  $    37,067

Commercial construction                    16,655        3,336       19,991

Commercial & industrial                    34,613            -       34,613

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

  Total commercial                         78,590       13,081       91,671

Residential construction                   25,523       12,851       38,374

Residential mortgage                       22,358        6,927       29,285

Consumer / installment                      1,008            -        1,008

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

  Total NPAs                          $   127,479  $    32,859  $   160,338

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

  Balance as a % of Unpaid Principal         71.3%        35.9%        59.3%



NPAs BY MARKET

Atlanta MSA                           $    14,480  $     6,169  $    20,649

Gainesville MSA                             2,069        3,760        5,829

North Georgia                              88,600       15,136      103,736

Western North Carolina                     15,100        5,365       20,465

Coastal Georgia                             5,248        1,620        6,868

East Tennessee                              1,982          809        2,791

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

  Total NPAs                          $   127,479  $    32,859  $   160,338

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





NPA ACTIVITY

Beginning Balance                     $   144,484  $    44,263  $   188,747

Loans placed on non-accrual                45,675            -       45,675

Payments received                          (1,884)           -       (1,884)

Loan charge-offs                          (44,757)           -      (44,757)

Foreclosures                              (16,039)      16,039            -

Capitalized costs                               -          141          141

Note / property sales                           -      (20,651)     (20,651)

Write downs                                     -       (3,893)      (3,893)

Net gains (losses) on sales                     -       (3,040)      (3,040)

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

  Ending Balance                      $   127,479  $    32,859  $   160,338

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



(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) 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.

(3) Annualized.




UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality (1)





                                                Third Quarter 2011

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

                                          Non-

                                       performing   Foreclosed     Total

(in thousands)                           Loans      Properties      NPAs

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

NPAs BY CATEGORY

Commercial (sec.by RE)                $    21,998  $     8,880  $    30,878

Commercial construction                    11,370        5,862       17,232

Commercial & industrial                    53,009            -       53,009

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

  Total commercial                         86,377       14,742      101,119

Residential construction                   34,472       21,561       56,033

Residential mortgage                       22,671        7,960       30,631

Consumer / installment                        964            -          964

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

  Total NPAs                          $   144,484  $    44,263  $   188,747

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

  Balance as a % of Unpaid Principal         77.8%        33.4%        59.3%



NPAs BY MARKET

Atlanta MSA                           $    13,350  $    12,971  $    26,321

Gainesville MSA                             5,311        2,495        7,806

North Georgia                             105,078       17,467      122,545

Western North Carolina                     13,243        7,941       21,184

Coastal Georgia                             5,600        2,354        7,954

East Tennessee                              1,902        1,035        2,937

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

  Total NPAs                          $   144,484  $    44,263  $   188,747

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





NPA ACTIVITY

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

Loans placed on non-accrual               103,365            -      103,365

Payments received                          (3,995)           -       (3,995)

Loan charge-offs                          (15,335)           -      (15,335)

Foreclosures                              (10,616)      10,616            -

Capitalized costs                               -          818          818

Note / property sales                           -      (13,787)     (13,787)

Write downs                                     -       (1,772)      (1,772)

Net gains (losses) on sales                     -          804          804

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

  Ending Balance                      $   144,484  $    44,263  $   188,747

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



(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) 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.

(3) Annualized.




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)

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

Net gains (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) 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.

(3) Annualized.







UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality (1)





                        Fourth Quarter     Third Quarter    Second Quarter

                             2011              2011             2011(2)

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

                                  Net               Net               Net

                                Charge-           Charge-           Charge-

                                Offs to           Offs to           Offs to

                          Net   Average     Net   Average     Net   Average

                        Charge-  Loans    Charge-  Loans    Charge-  Loans

(in thousands)           Offs     (3)      Offs     (3)      Offs     (3)

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

NET CHARGE-OFFS BY CATEGORY

Commercial (sec. by

 RE)                   $  4,962    1.09% $  2,192     .50% $  3,259     .76%

Commercial

 construction             3,318    7.88     1,625    3.54       869    1.70

Commercial &

 industrial              18,940   17.47       420     .39       523     .49

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

  Total commercial       27,220    4.51     4,237     .71     4,651     .79

Residential

 construction            12,090   10.36     6,381    5.19     6,629    5.04

Residential mortgage      5,887    2.04     6,110    2.09     4,589    1.55

Consumer / installment      427    1.47       818    2.75       614    2.04

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

  Total                $ 45,624    4.39  $ 17,546    1.68  $ 16,483    1.58

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





NET CHARGE-OFFS BY

 MARKET

Atlanta MSA            $  4,195    1.37% $  2,813     .94% $  2,920     .99%

Gainesville MSA           2,572    3.84     1,804    2.64     2,318    3.36

North Georgia            34,970    9.46     8,124    2.16     6,575    1.72

Western North Carolina    3,180    2.10     3,608    2.31     3,522    2.21

Coastal Georgia             335     .41       709     .88       815    1.02

East Tennessee              372     .59       488     .78       333     .54

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

  Total                $ 45,624    4.39  $ 17,546    1.68  $ 16,483    1.58

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



(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) 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.

(3) 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

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





UNITED COMMUNITY BANKS, INC.

Financial Highlights

Net Charge-Off Summary (1)





                              First Quarter 2011

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

                                          Problem

                                           Asset

                                        Disposition

(in thousands)                Other        Plan

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

BY CATEGORY

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

Commercial construction          1,146       48,569

Commercial & industrial            513        3,527

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

  Total commercial               4,501       97,861

Residential construction        10,643       81,495

Residential mortgage             4,989       31,394

Consumer / installment             383          308

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

  Total                   $     20,516 $    211,058

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



BY MARKET

Atlanta MSA               $      3,296 $     53,193

Gainesville MSA                    954        7,662

North Georgia                    8,544      114,761

Western North Carolina           6,749       19,698

Coastal Georgia                    341       11,662

East Tennessee                     632        4,082

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

  Total                   $     20,516 $    211,058

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





UNITED COMMUNITY BANKS, INC.

Financial Highlights

Net Charge-Off Summary (1)





                             First

                         Quarter 2011          First Six Months 2011

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

                                                      Problem

                                                       Asset

                                                    Disposition

(in thousands)               Total        Other        Plan         Total

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

BY CATEGORY

Commercial (sec. by RE)  $     48,607 $      7,814 $     44,052 $     51,866

Commercial construction        49,715        3,347       47,237       50,584

Commercial & industrial         4,040        1,152        3,411        4,563

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

  Total commercial            102,362       12,313       94,700      107,013

Residential construction       92,138       20,114       78,653       98,767

Residential mortgage           36,383       10,833       30,139       40,972

Consumer / installment            691        1,008          297        1,305

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

  Total                  $    231,574 $     44,268 $    203,789 $    248,057

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



BY MARKET

Atlanta MSA              $     56,489 $      8,171 $     51,238 $     59,409

Gainesville MSA                 8,616        3,530        7,404       10,934

North Georgia                 123,305       18,904      110,976      129,880

Western North Carolina         26,447       11,012       18,957       29,969

Coastal Georgia                12,003        1,547       11,271       12,818

East Tennessee                  4,714        1,104        3,943        5,047

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

  Total                  $    231,574 $     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    Twelve Months Ended

                                     December 31,          December 31,

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

(in thousands, except per share

 data)                              2011       2010       2011       2010

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



Interest revenue:

  Loans, including fees          $  57,697  $  66,659  $ 239,056  $ 277,904

  Investment securities,

   including tax exempt of $255,

   $251, $1,009 and $1,137          13,296     13,215     56,260     59,958

  Federal funds sold, commercial

   paper and deposits in banks         489        844      2,321      3,260

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

      Total interest revenue        71,482     80,718    297,637    341,122

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



Interest expense:

  Deposits:

    NOW                                807      1,662      3,998      6,966

    Money market                       800      2,036      5,456      7,552

    Savings                             41         81        234        331

    Time                             7,338     12,868     39,151     66,883

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

      Total deposit interest

       expense                       8,986     16,647     48,839     81,732

  Federal funds purchased,

   repurchase agreements and

   other short-term borrowings       1,053      1,073      4,250      4,235

  Federal Home Loan Bank

   advances                            441        608      2,042      3,355

  Long-term debt                     2,375      2,755     10,544     10,749

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

    Total interest expense          12,855     21,083     65,675    100,071

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

    Net interest revenue            58,627     59,635    231,962    241,051

  Provision for loan losses         14,000     36,000    251,000    223,000

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

    Net interest revenue after

     provision for loan losses      44,627     23,635    (19,038)    18,051

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



Fee revenue:

  Service charges and fees           7,248      7,039     29,110     30,127

  Mortgage loan and other

   related fees                      1,825      1,868      5,419      7,019

  Brokerage fees                       782        778      2,986      2,662

  Securities gains, net                  4          -        842      2,552

  Loss from prepayment of debt           -          -       (791)    (2,233)

  Other                              2,808      2,757     12,342      8,421

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

    Total fee revenue               12,667     12,442     49,908     48,548

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

    Total revenue                   57,294     36,077     30,870     66,599

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



Operating expenses:

  Salaries and employee benefits    23,473     23,777    100,095     96,618

  Communications and equipment       3,129      3,377     13,135     13,781

  Occupancy                          3,972      4,024     15,645     15,394

  Advertising and public

   relations                           944      1,102      4,291      4,625

  Postage, printing and supplies     1,017      1,063      4,256      4,072

  Professional fees                  1,996      3,016      9,727      9,254

  Foreclosed property                9,302     20,602     78,905     65,707

  FDIC assessments and other

   regulatory charges                2,599      3,299     14,259     13,747

  Amortization of intangibles          746        771      3,016      3,160

  Other                              3,902      3,887     18,270     16,594

  Goodwill impairment                    -          -          -    210,590

  Loss on sale of nonperforming

   assets                                -          -          -     45,349

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

    Total operating expenses        51,080     64,918    261,599    498,891

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

  Loss from continuing

   operations before income

   taxes                             6,214    (28,841)  (230,729)  (432,292)

  Income tax benefit                (3,687)   144,263     (3,983)    71,217

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

    Net loss from continuing

     operations                      9,901   (173,104)  (226,746)  (503,509)

  Loss from discontinued

   operations, net of income

   taxes                                 -          -          -       (101)

  Gain from sale of subsidiary,

   net of income taxes and

   selling costs                         -          -          -      1,266

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

    Net loss                         9,901   (173,104)  (226,746)  (502,344)

  Preferred stock dividends and

   discount accretion                3,025      2,586     11,838     10,316

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

    Net loss available to common

     shareholders                $   6,876  $(175,690) $(238,584) $(512,660)

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



Loss from continuing operations

 per common share - Basic        $     .12  $   (9.25) $   (5.97) $  (27.15)

Loss from continuing operations

 per common share - Diluted            .12      (9.25)     (5.97)    (27.15)

Loss per common share - Basic          .12      (9.25)     (5.97)    (27.09)

Loss per common share - Diluted        .12      (9.25)     (5.97)    (27.09)

Weighted average common shares

 outstanding - Basic                57,646     18,984     39,943     18,925

Weighted average common shares

 outstanding - Diluted              57,646     18,984     39,943     18,925






UNITED COMMUNITY BANKS, INC.

Consolidated Balance Sheet



                                                 December 31,  December 31,

(in thousands, except share and per share data)      2011          2010

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

                                                  (unaudited)    (audited)

ASSETS

  Cash and due from banks                        $     53,807  $     95,994

  Interest-bearing deposits in banks                  139,609       111,901

  Federal funds sold, reverse repurchase

   agreements, commercial paper and short-term

   investments                                        185,000       441,562

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

    Cash and cash equivalents                         378,416       649,457

  Securities available for sale                     1,790,047     1,224,417

  Securities held to maturity (fair value

   $333,912 and $267,988)                             330,203       265,807

  Mortgage loans held for sale                         23,881        35,908

  Loans, net of unearned income                     4,109,614     4,604,126

    Less allowance for loan losses                    114,468       174,695

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

      Loans, net                                    3,995,146     4,429,431

  Assets covered by loss sharing agreements with

   the FDIC                                            78,145       131,887

  Premises and equipment, net                         175,088       178,239

  Accrued interest receivable                          20,693        24,299

  Goodwill and other intangible assets                  8,428        11,446

  Foreclosed property                                  32,859       142,208

  Other assets                                        150,514       183,160

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

    Total assets                                 $  6,983,420  $  7,276,259

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

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

  Deposits:

    Demand                                       $    992,109  $    793,414

    NOW                                             1,509,896     1,424,781

    Money market                                    1,038,778       891,252

    Savings                                           199,007       183,894

    Time:

      Less than $100,000                            1,332,394     1,496,700

      Greater than $100,000                           847,152     1,002,359

      Brokered                                        178,647       676,772

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

        Total deposits                              6,097,983     6,469,172

Federal funds purchased, repurchase agreements,

 and other short-term borrowings                      102,577       101,067

Federal Home Loan Bank advances                        40,625        55,125

Long-term debt                                        120,225       150,146

Unsettled securities purchases                         10,325             -

Accrued expenses and other liabilities                 36,199        32,171

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

    Total liabilities                               6,407,934     6,807,681

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

Shareholders' equity:

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

   shares authorized;

    Series A; $10 stated value; 21,700 shares

     issued and outstanding                               217           217

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

     shares issued and outstanding                    177,092       175,711

    Series D; $1,000 stated value; 16,613 shares

     issued and outstanding                            16,613             -

  Common stock, $1 par value; 100,000,000 shares

   authorized; 41,647,100 and 18,937,001 shares

   issued and outstanding                             41,647        18,937

  Common stock, non-voting, $1 par value;

   30,000,000 shares authorized; 15,914,209

   shares issued and outstanding                      15,914             -

  Common stock issuable; 93,681 and 67,287

   shares                                               3,233         3,894

  Capital surplus                                   1,054,940       741,244

  Accumulated deficit                                (730,861)     (492,276)

  Accumulated other comprehensive income               (3,309)       20,851

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

    Total shareholders' equity                        575,486       468,578

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

    Total liabilities and shareholders' equity   $  6,983,420  $  7,276,259

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










UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended December 31,



                                   2011                        2010

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

(dollars in

 thousands, taxable    Average             Avg.    Average             Avg.

 equivalent)           Balance   Interest  Rate    Balance   Interest  Rate

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

Assets:

 Interest-earning

 assets:

 Loans, net of

  unearned income

  (1)(2)             $4,175,320  $ 57,773  5.49% $4,768,120  $ 66,750  5.55%

 Taxable securities

  (3)                 2,114,069    13,041  2.47   1,327,999    12,964  3.90

 Tax-exempt

  securities (1)(3)      27,224       417  6.13      25,917       410  6.33

 Federal funds sold

  and other

  interest-earning

  assets                371,606       674   .73     558,143     1,091   .78

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



  Total interest-

   earning assets     6,688,219    71,905  4.27   6,680,179    81,215  4.83

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

Non-interest-earning

 assets:

 Allowance for loan

  losses               (145,559)                   (185,300)

 Cash and due from

  banks                  54,485                     112,923

 Premises and

  equipment             176,182                     178,729

 Other assets (3)       245,664                     467,871

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

  Total assets       $7,018,991                  $7,254,402

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



Liabilities and

 Shareholders'

 Equity:

 Interest-bearing

 liabilities:

  Interest-bearing

   deposits:

  NOW                $1,451,581       807   .22  $1,436,976     1,662   .46

  Money market        1,041,375       800   .30     870,884     2,036   .93

  Savings               198,541        41   .08     184,651        81   .17

  Time less than

   $100,000           1,358,367     3,668  1.07   1,489,933     6,292  1.68

  Time greater than

   $100,000             875,434     2,867  1.30   1,010,104     4,736  1.86

  Brokered              180,933       803  1.76     491,477     1,840  1.49

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

    Total interest-

     bearing

     deposits         5,106,231     8,986   .70   5,484,025    16,647  1.20

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



  Federal funds

   purchased and

   other borrowings     102,776     1,053  4.06     102,830     1,073  4.14

  Federal Home Loan

   Bank advances         40,625       441  4.31      58,712       608  4.11

  Long-term debt        120,217     2,375  7.84     150,137     2,755  7.28

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

    Total borrowed

     funds              263,618     3,869  5.82     311,679     4,436  5.65

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



    Total interest-

     bearing

     liabilities      5,369,849    12,855   .95   5,795,704    21,083  1.44

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

Non-interest-bearing

 liabilities:

 Non-interest-

  bearing deposits    1,008,327                     809,604

 Other liabilities       59,908                      83,452

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

  Total liabilities   6,438,084                   6,688,760

Shareholders' equity    580,907                     565,642

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

  Total liabilities

   and shareholders'

   equity            $7,018,991                  $7,254,402

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



Net interest revenue             $ 59,050                    $ 60,132

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

Net interest-rate

 spread                                    3.32%                       3.39%

                                          =====                       =====



Net interest margin

 (4)                                       3.51%                       3.58%

                                          =====                       =====



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

 to reflect comparable interest on taxable securities and loans. The rate

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

 federal tax adjusted state income tax rate.

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

 the accrual of interest has been discontinued and loans that are held for

 sale.

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

 unrealized gains of $31.3 million in 2011 and $40.8 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 Twelve Months Ended December 31,



                                   2011                        2010

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

(dollars in

 thousands, taxable    Average             Avg.    Average             Avg.

 equivalent)           Balance   Interest  Rate    Balance   Interest  Rate

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

Assets:

Interest-earning

 assets:

 Loans, net of

  unearned income

  (1)(2)             $4,307,111  $239,195  5.55% $4,960,805  $278,149  5.61%

 Taxable securities

  (3)                 1,973,678    55,251  2.80   1,425,322    58,821  4.13

 Tax-exempt

  securities (1)(3)      25,693     1,651  6.43      27,827     1,860  6.68

 Federal funds sold

  and other

  interest-earning

  assets                478,403     3,247   .68     408,359     4,293  1.05

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



  Total interest-

   earning assets     6,784,885   299,344  4.41   6,822,313   343,123  5.03

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

Non-interest-earning

 assets:

 Allowance for loan

  losses               (145,656)                   (190,227)

 Cash and due from

  banks                  90,212                     106,582

 Premises and

  equipment             178,061                     180,379

 Other assets (3)       281,233                     685,547

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

  Total assets       $7,188,735                  $7,604,594

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



Liabilities and

 Shareholders'

 Equity:

Interest-bearing

 liabilities:

 Interest-bearing

  deposits:

  NOW                $1,348,493     3,998   .30  $1,360,729     6,966   .51

  Money market          993,871     5,456   .55     780,982     7,552   .97

  Savings               195,468       234   .12     184,479       331   .18

  Time less than

   $100,000           1,471,596    18,648  1.27   1,581,750    30,260  1.91

  Time greater than

   $100,000             948,659    14,347  1.51   1,084,967    23,114  2.13

  Brokered              401,393     6,156  1.53     610,483    13,509  2.21

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

    Total interest-

     bearing

     deposits         5,359,480    48,839   .91   5,603,390    81,732  1.46

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



  Federal funds

   purchased and

   other borrowings     102,727     4,250  4.14     103,479     4,235  4.09

  Federal Home Loan

   Bank advances         47,220     2,042  4.32      90,137     3,355  3.72

  Long-term debt        139,666    10,544  7.55     150,107    10,749  7.16

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

    Total borrowed

     funds              289,613    16,836  5.81     343,723    18,339  5.34

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



    Total interest-

     bearing

     liabilities      5,649,093    65,675  1.16   5,947,113   100,071  1.68

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

Non-interest-bearing

 liabilities:

 Non-interest-

  bearing deposits      915,649                     769,395

 Other liabilities       66,809                      69,367

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

  Total liabilities   6,631,551                   6,785,875

Shareholders' equity    557,184                     818,719

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

  Total liabilities

   and shareholders'

   equity            $7,188,735                  $7,604,594

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



Net interest revenue             $233,669                    $243,052

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

Net interest-rate

 spread                                    3.25%                       3.35%

                                          =====                       =====



Net interest margin

 (4)                                       3.44%                       3.56%

                                          =====                       =====



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

 to reflect comparable interest on taxable securities and loans. The rate

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

 federal tax adjusted state income tax rate.

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

 the accrual of interest has been discontinued 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 $43.2 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.

Previously Reported Financial Information - As Restated for Full Valuation

 Allowance on Net Deferred Tax Asset



                                    For the Three Months Ended

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

                          September 30, 2011             June 30, 2011

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

(in thousands,

 except per share

 data; taxable          As     Adjust-     As        As    Adjust-     As

 equivalent)         Reported    ment   Restated  Reported   ment   Restated

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



Consolidated

 Statement of

 Operations

Income tax expense

 (benefit)           $ (5,959) $ 5,137  $   (822) $  5,077 $(4,411) $    666

Net income (loss)

 from continuing

 operations            (6,202)  (5,137)  (11,339)    7,617   4,411    12,028

Net operating income

 (loss) from

 continuing

 operations            (6,202)  (5,137)  (11,339)    7,617   4,411    12,028

Net income (loss)      (6,202)  (5,137)  (11,339)    7,617   4,411    12,028

Net income (loss)

 available to common

 shareholders          (9,221)  (5,137)  (14,358)    4,601   4,411     9,012



Per Share

 Information

Income (loss) from

 continuing

 operations - basic  $   (.16) $  (.09) $   (.25) $    .18 $   .17  $    .35

Income (loss) from

 continuing

 operations -

 diluted                 (.16)    (.09)     (.25)      .08     .08       .16

Operating income

 (loss) from

 continuing

 operations -

 diluted                 (.16)    (.09)     (.25)      .08     .08       .16

Income (loss) -

 basic                   (.16)    (.09)     (.25)      .18     .17       .35

Income (loss) -

 diluted                 (.16)    (.09)     (.25)      .08     .08       .16



Key Performance

 Measures

Return on equity (%)    (5.72)   (9.34)   (15.06)     5.34   37.26     42.60

Return on assets (%)     (.34)    (.30)     (.64)      .40     .26       .66

Equity to assets (%)    11.83    (3.28)     8.55     11.21   (3.15)     8.06

Tangible equity to

 assets (%)             11.76    (3.34)     8.42     11.13   (3.20)     7.93

Tangible common

 equity to assets

 (%)                     9.09    (3.44)     5.65      4.79   (3.42)     1.37

Tangible common

 equity to risk-

 weighted assets (%)    14.41    (5.89)     8.52     14.26   (5.57)     8.69

Average total assets

 ($ in millions)     $  7,261  $  (261) $  7,000  $  7,624 $  (261) $  7,363

Average

 shareholders'

 equity ($ in

 millions)                859     (261)      598       854    (260)      594



Regulatory Capital

 Ratios - Holding

 Company

Tier 1 leverage

 ratio (%)               8.97     (.18)     8.79      8.71    (.19)     8.52

Tier 1 risk-based

 capital ratio (%)      13.97     (.22)    13.75     13.88    (.26)    13.62

Total risk-based

 capital ratio (%)      15.84     (.21)    15.63     16.40    (.24)    16.16



Regulatory Capital

 Ratios - Bank

Tier 1 leverage

 ratio (%)               8.84     (.18)     8.66      8.54    (.19)     8.35

Tier 1 risk-based

 capital ratio (%)      13.80     (.26)    13.54     13.62    (.29)    13.33

Total risk-based

 capital ratio (%)      15.07     (.25)    14.82     15.41    (.29)    15.12










UNITED COMMUNITY BANKS, INC.

Previously Reported Financial Information - As Restated for Full Valuation

 Allowance on Net Deferred Tax Asset



                               For the Three Months Ended

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

                     March 31, 2011                 December 31, 2010

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

(in

 thousands,

 except per

 share data;

 taxable         As      Adjust-      As        As      Adjust-       As

 equivalent)  Reported    ment     Restated  Reported     ment     Restated

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



Consolidated

 Statement of

 Operations

Income tax

 expense

 (benefit)   $ (94,990) $ 94,850  $    (140) $(12,446) $ 156,709  $ 144,263

Net income

 (loss) from

 continuing

 operations   (142,486)  (94,850)  (237,336)  (16,395)  (156,709)  (173,104)

Net operating

 income

 (loss) from

 continuing

 operations   (142,486)  (94,850)  (237,336)  (23,574)  (161,280)  (184,854)

Net income

 (loss)       (142,486)  (94,850)  (237,336)  (16,395)  (156,709)  (173,104)

Net income

 (loss)

 available to

 common

 shareholders (145,264)  (94,850)  (240,114)  (18,981)  (156,709)  (175,690)



Per Share

 Information

Income (loss)

 from

 continuing

 operations -

 basic       $   (7.87) $  (5.13) $  (13.00) $  (1.00) $   (8.25) $   (9.25)

Income (loss)

 from

 continuing

 operations -

 diluted         (7.87)    (5.13)    (13.00)    (1.00)     (8.25)     (9.25)

Operating

 income

 (loss) from

 continuing

 operations -

 diluted         (7.87)    (5.13)    (13.00)    (1.38)     (8.49)     (9.87)

Income (loss)

 - basic         (7.87)    (5.13)    (13.00)    (1.00)     (8.25)     (9.25)

Income (loss)

 - diluted       (7.87)    (5.13)    (13.00)    (1.00)     (8.25)     (9.25)



Key

 Performance

 Measures

Return on

 equity (%)    (147.11)  (379.43)   (526.54)   (17.16)   (178.94)   (196.10)

Return on

 assets (%)      (7.61)    (5.43)    (13.04)     (.89)     (8.58)     (9.47)

Equity to

 assets (%)       8.82     (2.67)      6.15      8.85      (1.05)      7.80

Tangible

 equity to

 assets (%)       8.73     (2.72)      6.01      8.75      (1.11)      7.64

Tangible

 common

 equity to

 assets (%)       5.51     (2.81)      2.70      6.35      (1.13)      5.22

Tangible

 common

 equity to

 risk-

 weighted

 assets (%)       6.40     (5.65)       .75      9.05      (3.41)      5.64

Average total

 assets ($ in

 millions)   $   7,595  $   (216) $   7,379  $  7,338  $     (84) $   7,254

Average

 shareholders'

 equity ($

 in millions)      670      (216)       454       649        (83)       566



Regulatory

 Capital

 Ratios -

 Holding

 Company

Tier 1

 leverage

 ratio (%)        4.95      (.20)      4.75      6.75        .01       6.76

Tier 1 risk-

 based

 capital

 ratio (%)        7.67      (.24)      7.43      9.67        .14       9.81

Total risk-

 based

 capital

 ratio (%)       15.34      (.49)     14.85     12.11        .14      12.25



Regulatory

 Capital

 Ratios -

 Bank

Tier 1

 leverage

 ratio (%)        8.34      (.22)      8.12      7.45          -       7.45

Tier 1 risk-

 based

 capital

 ratio (%)       12.95      (.24)     12.71     10.72        .13      10.85

Total risk-

 based

 capital

 ratio (%)       14.73      (.24)     14.49     12.48        .13      12.61










UNITED COMMUNITY BANKS, INC.

Previously Reported Financial Information - As Restated for Full Valuation

 Allowance on Net Deferred Tax Asset



                            For the Year to Date Period Ended

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

                   September 30, 2011                 June 30, 2011

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

(in

 thousands,

 except per

 share data;

 taxable         As     Adjustme      As         As     Adjustme      As

 equivalent)  Reported     nt      Restated   Reported     nt      Restated

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



Consolidated

 Statement of

 Operations

Income tax

 expense

 (benefit)   $ (95,872) $ 95,576  $    (296) $ (89,913) $ 90,439  $     526

Net income

 (loss) from

 continuing

 operations   (141,071)  (95,576)  (236,647)  (134,869)  (90,439)  (225,308)

Net operating

 income

 (loss) from

 continuing

 operations   (141,071)  (95,576)  (236,647)  (134,869)  (90,439)  (225,308)

Net income

 (loss)       (141,071)  (95,576)  (236,647)  (134,869)  (90,439)  (225,308)

Net income

 (loss)

 available to

 common

 shareholders (149,884)  (95,576)  (245,460)  (140,663)  (90,439)  (231,102)



Per Share

 Information

Income (loss)

 from

 continuing

 operations -

 basic       $   (4.41) $  (2.82) $   (7.23) $   (6.40) $  (4.12) $  (10.52)

Income (loss)

 from

 continuing

 operations -

 diluted         (4.41)    (2.82)     (7.23)     (6.40)    (4.12)    (10.52)



Operating

 income

 (loss) from

 continuing

 operations -

 diluted         (4.41)    (2.82)     (7.23)     (6.40)    (4.12)    (10.52)

Income (loss)

 - basic         (4.41)    (2.82)     (7.23)     (6.40)    (4.12)    (10.52)

Income (loss)

 - diluted       (4.41)    (2.82)     (7.23)     (6.40)    (4.12)    (10.52)



Consolidated

 Statement of

 Changes in

Shareholders'

 Equity

Net income

 (loss)      $(141,071) $(95,576) $(236,647) $(134,869) $(90,439) $(225,308)

Unrealized

 holding

 gains

 (losses) on

 available

 for sale

securities       2,910     1,678      4,588      5,133     2,870      8,003

Reclassifica-

 tion

 adjustment

 for gains on

 securities

 available

 for sale

 included in

 fee revenue         -         -          -          -         -          -

Unrealized

 losses on

 derivative

 financial

 instruments

 qualifying

 as cash flow

 hedges         (7,680)   (4,890)   (12,570)    (5,879)   (3,743)    (9,622)

Comprehensive

 income

 (loss)       (145,841)  (98,788)  (244,629)  (135,615)  (91,312)  (226,927)

Penalty

 received on

 incomplete

 private

 equity

 transaction     2,375       875      3,250      2,375       875      3,250



Consolidated

 Statement of

 Cash Flows

Net income

 (loss)      $(141,071) $(95,576) $(236,647) $(134,869) $(90,439) $(225,308)

Deferred

 income tax

 benefit             -         -          -          -         -          -

Net change in

 other assets

 and accrued

 interest

 receivable    (35,735)   95,576     59,841    (49,255)   90,439     41,184



Key

 Performance

 Measures

Return on

 equity (%)     (43.31)  (108.01)   (151.32)    (76.07)  (269.79)   (345.86)

Return on

 assets (%)      (2.52)    (1.85)     (4.37)     (3.57)    (2.59)     (6.16)

Equity to

 assets (%)      10.61     (3.03)      7.58      10.02     (2.91)      7.11

Tangible

 equity to

 assets (%)      10.53     (3.08)      7.45       9.94     (2.96)      6.98

Tangible

 common

 equity to

 assets (%)       6.44     (3.23)      3.21       5.15     (3.12)      2.03

Tangible

 common

 equity to

 risk-

 weighted

 assets (%)      14.41     (5.89)      8.52      14.26     (5.57)      8.69

Average total

 assets ($ in

 millions)   $   7,492  $   (246) $   7,246  $   7,609  $   (238) $   7,371

Average

 shareholders'

 equity ($

 in millions)      795      (246)       549        763      (239)       524










UNITED COMMUNITY BANKS, INC.

Previously Reported Financial Information - As Restated for Full Valuation

 Allowance on Net Deferred Tax Asset



                           For the Year to Date Period Ended

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

                    March 31, 2011                 December 31, 2010

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

(in

 thousands,

 except per

 share data;

 taxable        As     Adjustme      As         As     Adjustmen      As

 equivalent) Reported     nt      Restated   Reported      t       Restated

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



Consolidated

 Statement

 of

 Operations

Income tax

 expense

 (benefit)  $ (94,990) $ 94,850  $    (140) $ (85,492) $ 156,709  $  71,217

Net income

 (loss) from

 continuing

 operations  (142,486)  (94,850)  (237,336)  (346,800)  (156,709)  (503,509)

Net

 operating

 income

 (loss) from

 continuing

 operations  (142,486)  (94,850)  (237,336)  (143,389)  (161,280)  (304,669)

Net income

 (loss)      (142,486)  (94,850)  (237,336)  (345,635)  (156,709)  (502,344)

Net income

 (loss)

 available

 to common

 shareholders(145,264)  (94,850)  (240,114)  (355,951)  (156,709)  (512,660)



Per Share

 Information

Income

 (loss) from

 continuing

 operations

 - basic    $   (7.87) $  (5.13) $  (13.00) $  (18.87) $   (8.28) $  (27.15)

Income

 (loss) from

 continuing

 operations

 - diluted      (7.87)    (5.13)    (13.00)    (18.87)     (8.28)    (27.15)



Operating

 income

 (loss) from

 continuing

 operations

 -diluted       (7.87)    (5.13)    (13.00)     (8.12)     (8.52)    (16.64)

Income

 (loss) -

 basic          (7.87)    (5.13)    (13.00)    (18.81)     (8.28)    (27.09)

Income

 (loss) -

 diluted        (7.87)    (5.13)    (13.00)    (18.81)     (8.28)    (27.09)



Consolidated

 Statement

 of Changes

 in

 Shareholders'

 Equity

Net income

 (loss)     $(142,486) $(94,850) $(237,336) $(345,635) $(156,709) $(502,344)

Unrealized

 holding

 gains

 (losses) on

 available

 for sale

 securities    (1,003)     (674)    (1,677)    (4,986)    (3,165)    (8,151)

Reclassifica-

 tion

 adjustment

 for gains

 on

 securities

 available

 for sale

 included in

 fee revenue        -         -          -     (1,559)      (993)    (2,552)

Unrealized

 losses on

 derivative

 financial

 instruments

 qualifying

 as cash

 flow hedges   (2,580)   (1,643)    (4,223)   (10,011)    (6,070)   (16,081)

Comprehens-

 ive income

 (loss)      (146,069)  (97,167)  (243,236)  (362,191)  (166,937)  (529,128)

Penalty

 received on

 incomplete

 private

 equity

 transaction        -         -          -          -          -          -



Consolidated

 Statement

 of Cash

 Flows

Net income

 (loss)     $(142,486) $(94,850) $(237,336) $(345,635) $(156,709) $(502,344)

Deferred

 income tax

 benefit            -         -          -    (87,455)   156,709     69,254

Net change

 in other

 assets and

 accrued

 interest

 receivable   (90,321)   94,850      4,529          -          -          -



Key

 Performance

 Measures

Return on

 equity (%)   (147.11)  (379.43)   (526.54)    (57.08)    (27.98)    (85.06)

Return on

 assets (%)     (7.61)    (5.43)    (13.04)     (4.53)     (2.08)     (6.61)

Equity to

 assets (%)      8.82     (2.67)      6.15      11.01       (.24)     10.77

Tangible

 equity to

 assets (%)      8.73     (2.72)      6.01       9.15       (.32)      8.83

Tangible

 common

 equity to

 assets (%)      5.51     (2.81)      2.70       6.80       (.32)      6.48

Tangible

 common

 equity to

 risk-

 weighted

 assets (%)      6.40     (5.65)       .75       9.05      (3.41)      5.64

Average

 total

 assets ($

 in

 millions)  $   7,595  $   (216) $   7,379  $   7,626  $     (21) $   7,605

Average

 shareholders'

 equity

 ($ in

 millions)        670      (216)       454        840        (21)       819










UNITED COMMUNITY BANKS, INC.

Previously Reported Financial Information - As Restated for Full Valuation

 Allowance on Net Deferred Tax Asset





                                                    As Of

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

                                             September 30, 2011

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

(in thousands, except per share

 data; taxable equivalent)         As Reported   Adjustment    As Restated

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



Consolidated Balance Sheet

Net deferred tax asset            $    264,275  $   (264,275) $          -

Other assets                           153,329          (575)      152,754

Total assets                         7,159,123      (264,850)    6,894,273

Capital surplus                      1,052,690           875     1,053,565

(Accumulated deficit) retained

 earnings                             (485,451)     (252,285)     (737,736)

Accumulated other comprehensive

 income                                 26,309       (13,440)       12,869

Total shareholders' equity             848,217      (264,850)      583,367

Total liabilities and

 shareholders' equity                7,159,123      (264,850)    6,894,273



Key Performance Measures

Book value per share              $      11.37  $      (4.60) $       6.77

Tangible book value per share            11.26         (4.65)         6.61

Nonperforming assets to total

 assets (%)                               2.64           .10          2.74









UNITED COMMUNITY BANKS, INC.

Previously Reported Financial Information - As Restated for Full Valuation

 Allowance on Net Deferred Tax Asset





                                                    As Of

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

                                                 June 30, 2011

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

(in thousands, except per share

 data; taxable equivalent)          As Reported   Adjustment    As Restated

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



Consolidated Balance Sheet

Net deferred tax asset             $    261,268  $   (261,268) $          -

Other assets                            172,074         3,894       175,968

Total assets                          7,409,669      (257,374)    7,152,295

Capital surplus                       1,051,607           875     1,052,482

(Accumulated deficit) retained

 earnings                              (476,230)     (247,148)     (723,378)

Accumulated other comprehensive

 income                                  30,333       (11,101)       19,232

Total shareholders' equity              859,975      (257,374)      602,601

Total liabilities and

 shareholders' equity                 7,409,669      (257,374)    7,152,295



Key Performance Measures

Book value per share               $      11.59  $      (4.48) $       7.11

Tangible book value per share             11.47         (4.53)         6.94

Nonperforming assets to total

 assets (%)                                1.60           .06          1.66










UNITED COMMUNITY BANKS, INC.

Previously Reported Financial Information - As Restated for Full Valuation

 Allowance on Net Deferred Tax Asset





                                                    As Of

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

                                               March 31, 2011

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

(in thousands, except per share

 data; taxable equivalent)         As Reported   Adjustment    As Restated

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



Consolidated Balance Sheet

Net deferred tax asset            $    266,367  $   (266,367) $          -

Other assets                           174,742         2,263       177,005

Total assets                         7,973,592      (264,104)    7,709,488

Capital surplus                        738,963             -       738,963

(Accumulated deficit) retained

 earnings                             (480,831)     (251,559)     (732,390)

Accumulated other comprehensive

 income                                 27,496       (12,545)       14,951

Total shareholders' equity             850,148      (264,104)      586,044

Total liabilities and

 shareholders' equity                7,973,592      (264,104)    7,709,488



Key Performance Measures

Book value per share              $      14.78  $     (12.58) $       2.20

Tangible book value per share            14.44        (12.75)         1.69

Nonperforming assets to total

 assets (%)                               1.73           .06          1.79





UNITED COMMUNITY BANKS, INC.

Previously Reported Financial Information - As Restated for Full Valuation

 Allowance on Net Deferred Tax Asset





                                                    As Of

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

                                               December 31, 2010

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

(in thousands, except per share

 data; taxable equivalent)          As Reported   Adjustment    As Restated

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



Consolidated Balance Sheet

Net deferred tax asset             $    166,937  $   (166,937) $          -

Other assets                            183,160             -       183,160

Total assets                          7,443,196      (166,937)    7,276,259

Capital surplus                         741,244             -       741,244

(Accumulated deficit) retained

 earnings                              (335,567)     (156,709)     (492,276)

Accumulated other comprehensive

 income                                  31,079       (10,228)       20,851

Total shareholders' equity              635,515      (166,937)      468,578

Total liabilities and

 shareholders' equity                 7,443,196      (166,937)    7,276,259



Key Performance Measures

Book value per share               $      24.48  $      (9.08) $      15.40

Tangible book value per share             23.78         (8.98)        14.80

Nonperforming assets to total

 assets (%)                                4.32           .10          4.42



For more information:

Rex S. Schuette

Chief Financial Officer

(706) 781-2266

Email Contact



Source: United Community Banks, Inc.

News Provided by Acquire Media