United Community Banks, Inc.
Apr 26, 2012

United Community Banks, Inc. Reports Earnings of $11.5 Million for First Quarter 2012

BLAIRSVILLE, GA -- (Marketwire) -- 04/26/12 -- United Community Banks, Inc. (NASDAQ: UCBI)

United Community Banks, Inc. (NASDAQ: UCBI) today reported net income of $11.5 million, or 15 cents per share, for the first quarter of 2012. The positive results reflect strong core transaction deposit growth, modest loan growth, a fee revenue increase and lower operating expenses compared with the fourth quarter of 2011.

"Momentum continues to build in restoring and improving our financial performance," said Jimmy Tallent, president and chief executive officer. "With credit problems now at a manageable level, we have increased our focus on improving core pre-tax, pre-credit earnings through revenue growth and higher efficiency. The results are encouraging: Core pre-tax, pre-credit earnings, excluding one-time items, were at their highest level since the fourth quarter of 2009."

Total loans were $4.13 billion at quarter-end, up $18 million from the fourth quarter and down $66 million from a year earlier. "In the fourth quarter we reversed the trend of declining loan balances, and in the first quarter we achieved modest loan growth," stated Tallent. "We are prudently growing our portfolio by focusing on full-service relationships with small-to-medium sized businesses. During the first quarter we added $169 million in new loan commitments of which $131 million were funded by quarter-end. The majority were commercial loans."

The first quarter provision for loan losses was $15 million, down from $190 million a year ago and up slightly from $14 million in the fourth quarter of 2011. The first quarter 2011 provision was elevated due to execution of United's problem asset disposition plan following the successful raising of $380 million in capital.

First quarter net charge-offs were $15.9 million, compared to $232 million in the first quarter of 2011 and $45.6 million in the fourth quarter. A bulk loan sale, part of the problem asset disposition plan, elevated net charge-offs in the 2011 first quarter. Fourth quarter 2011 net charge-offs included $25 million related to United's largest loan relationship.

Nonperforming assets of $161.6 million reflected a $1.3 million increase from the fourth quarter of 2011, and a $23.4 million increase from the first quarter of 2011. Said Tallent, "Nonperforming asset levels are impacted significantly by the inflow of new nonperforming loans and our ability to liquidate foreclosed properties. While the inflow of new nonperforming loans fell from $46 million in the fourth quarter to $32 million in the first quarter, nonperforming assets did not decline due to slow foreclosed property sales, which is typical in the winter months. We expect our overall credit trends to improve during 2012, although not necessarily on a straight line."

Taxable equivalent net interest revenue of $58.9 million reflected a slight decline from the fourth quarter of 2011, and an increase of $2.5 million from the first quarter of 2011 due to the $2 million reversal of accrued interest last year on performing loans included in the bulk loan sale. The net interest margin was 3.53 percent for the first quarter of 2012, up 23 basis points from a year ago and two basis points from the fourth quarter of 2011.

"Growing quality loan and deposit relationships is a key focus in 2012," Tallent commented. "The weak economy has created a highly competitive environment for good, quality loans; yet, our momentum continues to build as the seasoned relationship managers we have added in key markets attract new business. Our success attracting core transaction deposits also has continued, with balances increasing $151 million during the first quarter. That is 21 percent growth on an annualized basis."

Fee revenue was $15.4 million in the first quarter of 2012, compared to $12.7 million in the fourth quarter and $11.8 million a year ago. Service charges and fees were $7.8 million, up $535,000 from the fourth quarter and $1.1 million from a year ago. The increase in service charges and fees from both periods reflects new charges on deposit accounts that became effective in the first quarter of 2012, and higher debit card revenue. Combined, these revenue increases more than offset lower overdraft fees.

Mortgage fee revenue increased $274,000 from the fourth quarter, and $605,000 from a year ago, to $2.1 million. The comparisons to prior periods are influenced significantly by the interest rate environment and refinancing activities. Mortgage loans closed totaled $81.7 million in the first quarter of 2012 compared with $78.8 million and $74.5 million, respectively, in the fourth and first quarters of 2011. Other fee revenue of $4.6 million reflected a $1.8 million increase from the fourth quarter, and a $1.7 million increase from the first quarter of 2011. The increase from both prior periods was primarily due to the recognition of $1.1 million in interest received for 2008's federal tax refund.

Excluding foreclosed property costs, first quarter 2012 operating expenses were $43.1 million compared to $41.8 million for the fourth quarter of 2011. Operating expenses increased $1.3 million on a linked-quarter basis due to a reclassification of expenses reflected in the fourth quarter of 2011 that transferred $2.2 million of salary and employee benefit costs to other comprehensive income for unamortized prior service costs and actuarial losses related to United's modified retirement plan. Excluding this one-time adjustment, the first quarter's total operating expenses were down $900,000 from the fourth quarter, primarily due to lower staff costs. First quarter operating expenses decreased by $7.2 million in the first quarter compared to the same period a year ago, primarily due to $2.9 million in higher FDIC premium assessments in the first quarter of 2011, and costs incurred during that period related to the problem asset disposition plan: $1.0 million in professional fees and $2.6 million in property taxes paid on assets sold.

Foreclosed property costs for the first quarter of 2012 were $3.8 million, compared to $9.3 million in the fourth quarter of 2011 and $64.9 million in the first quarter a year ago. First quarter 2012 costs included $1.6 million for maintenance and $2.2 million in net losses and write-downs. For the fourth quarter of 2011, foreclosed property costs included $2.4 million in maintenance and $6.9 million in net losses and write-downs. First quarter 2011 costs included $4.3 million in maintenance and $60.6 million in net write-downs and losses, mostly related to the problem asset disposition plan.

As of March 31, 2012, capital ratios were as follows: Tier 1 Risk-Based of 13.7 percent; Tier 1 Leverage of 8.9 percent; and Total Risk-Based of 15.4 percent. The Tier 1 Common Risk-Based ratio was 8.3 and the Tangible Equity-to-Assets ratio was 8.1 percent.

"We are on the path to recovery as indicated by three profitable quarters out of the past four," stated Tallent. "The economy is still weak and work remains to resolve credit problems, though we believe far more of that work is behind us. Looking forward, we expect continued profitability and improved financial performance from revenue enhancements and expense reductions."

Conference Call

United will hold a conference call today, Thursday, April 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 69716155. 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 $7.2 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 2011 Annual Report on Form 10-K under the section entitled "Forward-Looking Statements" and "Risk Factors." 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



                         2012                       2011

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

(in thousands, except

 per share              First      Fourth     Third      Second     First

data; taxable

 equivalent)           Quarter    Quarter    Quarter    Quarter    Quarter

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

INCOME SUMMARY

Interest revenue      $  70,221  $  71,905  $  74,543  $  76,931  $  75,965

Interest expense         11,357     12,855     15,262     17,985     19,573

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

    Net interest

     revenue             58,864     59,050     59,281     58,946     56,392

Provision for loan

 losses                  15,000     14,000     36,000     11,000    190,000

Fee revenue              15,379     12,667     11,498     13,905     11,838

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

    Total revenue        59,243     57,717     34,779     61,851   (121,770)

Operating expenses       46,955     51,080     46,520     48,728    115,271

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

    Income (loss)

     before income

     taxes               12,288      6,637    (11,741)    13,123   (237,041)

Income tax expense

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

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

    Net income (loss)    11,528      9,901    (11,339)    12,028   (237,336)

Preferred dividends

 and discount

 accretion                3,030      3,025      3,019      3,016      2,778

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

Net income (loss)

 available to common

 shareholders         $   8,498  $   6,876  $ (14,358) $   9,012  $(240,114)

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



PERFORMANCE MEASURES

  Per common share:

    Diluted income

     (loss)           $     .15  $     .12  $    (.25) $     .16  $  (13.00)

    Book value             6.68       6.62       6.77       7.11       2.20

    Tangible book

     value (2)             6.54       6.47       6.61       6.94       1.69



  Key performance

   ratios:

    Return on equity

     (1)(3)                8.78%      7.40%   (15.06)%     42.60%  (526.54)%

    Return on assets

     (3)                    .66        .56       (.64)       .66     (13.04)

    Net interest

     margin (3)            3.53       3.51       3.55       3.41       3.30

    Efficiency ratio      63.31      71.23      65.73      66.88     169.08

    Equity to assets       8.19       8.28       8.55       8.06       6.15

    Tangible equity

     to assets (2)         8.08       8.16       8.42       7.93       6.01

    Tangible common

     equity to assets

     (2)                   5.33       5.38       5.65       1.37       2.70

    Tangible common

     equity to risk-

     weighted assets

     (2)                   8.21       8.25       8.52       8.69        .75



ASSET QUALITY *

  Non-performing

   loans              $ 129,704  $ 127,479  $ 144,484  $  71,065  $  83,769

  Foreclosed

   properties            31,887     32,859     44,263     47,584     54,378

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

    Total non-

     performing

     assets (NPAs)      161,591    160,338    188,747    118,649    138,147

  Allowance for loan

   losses               113,601    114,468    146,092    127,638    133,121

  Net charge-offs        15,867     45,624     17,546     16,483    231,574

  Allowance for loan

   losses to loans         2.75%      2.79%      3.55%      3.07%      3.17%

  Net charge-offs to

   average loans (3)       1.55       4.39       1.68       1.58      20.71

  NPAs to loans and

   foreclosed

   properties              3.88       3.87       4.54       2.82       3.25

  NPAs to total

   assets                  2.25       2.30       2.74       1.66       1.79



AVERAGE BALANCES($ in

 millions)

  Loans               $   4,168  $   4,175  $   4,194  $   4,266  $   4,599

  Investment

   securities             2,153      2,141      2,150      2,074      1,625

  Earning assets          6,700      6,688      6,630      6,924      6,902

  Total assets            7,045      7,019      7,000      7,363      7,379

  Deposits                6,028      6,115      6,061      6,372      6,560

  Shareholders'

   equity                   577        581        598        594        454

  Common shares -

   basic (thousands)     57,764     57,646     57,599     25,427     18,466

  Common shares -

   diluted

   (thousands)           57,764     57,646     57,599     57,543     18,466



AT PERIOD END($ in

 millions)

  Loans *             $   4,128  $   4,110  $   4,110  $   4,163  $   4,194

  Investment

   securities             2,202      2,120      2,123      2,188      1,884

  Total assets            7,174      6,983      6,894      7,152      7,709

  Deposits                6,001      6,098      6,005      6,183      6,598

  Shareholders'

   equity                   580        575        583        603        586

  Common shares

   outstanding

   (thousands)           57,603     57,561     57,510     57,469     20,903



(1) 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). (2) Excludes effect of

 acquisition related intangibles and associated amortization. (3)

 Annualized.



* Excludes loans and foreclosed properties covered by loss sharing

 agreements with the FDIC.







UNITED COMMUNITY BANKS, INC.

Financial Highlights

Selected Financial Information

                                                                    First

                                           2012         2011       Quarter

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

(in thousands, except per share           First        First      2012-2011

data; taxable equivalent)                Quarter      Quarter      Change

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

INCOME SUMMARY

Interest revenue                       $    70,221  $    75,965

Interest expense                            11,357       19,573

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

    Net interest revenue                    58,864       56,392           4%

Provision for loan losses                   15,000      190,000

Fee revenue                                 15,379       11,838          30

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

    Total revenue                           59,243     (121,770)

Operating expenses                          46,955      115,271         (59)

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

Income (loss) before income taxes           12,288     (237,041)

Income tax expense (benefit)                   760          295

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

    Net income (loss)                       11,528     (237,336)

Preferred dividends and discount

 accretion                                   3,030        2,778

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

Net income (loss) available to common

 shareholders                          $     8,498  $  (240,114)

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



PERFORMANCE MEASURES

  Per common share:

    Diluted income (loss)              $       .15  $    (13.00)

    Book value                                6.68         2.20         204

    Tangible book value (2)                   6.54         1.69         287



  Key performance ratios:

    Return on equity (1)(3)                   8.78%    (526.54)%

    Return on assets (3)                       .66       (13.04)

    Net interest margin (3)                   3.53         3.30

    Efficiency ratio                         63.31       169.08

    Equity to assets                          8.19         6.15

    Tangible equity to assets (2)             8.08         6.01

    Tangible common equity to assets

     (2)                                      5.33         2.70

    Tangible common equity to risk-

     weighted assets (2)                      8.21          .75



ASSET QUALITY *

  Non-performing loans                 $   129,704  $    83,769

  Foreclosed properties                     31,887       54,378

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

    Total non-performing assets (NPAs)     161,591      138,147

  Allowance for loan losses                113,601      133,121

  Net charge-offs                           15,867      231,574

  Allowance for loan losses to loans          2.75%        3.17%

  Net charge-offs to average loans (3)        1.55        20.71

  NPAs to loans and foreclosed

   properties                                 3.88         3.25

  NPAs to total assets                        2.25         1.79



AVERAGE BALANCES($ in millions)

  Loans                                $     4,168  $     4,599          (9)

  Investment securities                      2,153        1,625          32

  Earning assets                             6,700        6,902          (3)

  Total assets                               7,045        7,379          (5)

  Deposits                                   6,028        6,560          (8)

  Shareholders' equity                         577          454          27

  Common shares - basic (thousands)         57,764       18,466

  Common shares - diluted (thousands)       57,764       18,466



AT PERIOD END($ in millions)

  Loans *                              $     4,128  $     4,194          (2)

  Investment securities                      2,202        1,884          17

  Total assets                               7,174        7,709          (7)

  Deposits                                   6,001        6,598          (9)

  Shareholders' equity                         580          586          (1)

  Common shares outstanding

   (thousands)                              57,603       20,903



(1) 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). (2) Excludes effect of

 acquisition related intangibles and associated amortization. (3)

 Annualized.



* Excludes loans and foreclosed properties covered by loss sharing

 agreements with the FDIC.







UNITED COMMUNITY BANKS, INC.

Non-GAAP Performance Measures Reconciliation

Selected Financial Information



                         2012                       2011

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

(in thousands, except

 per share              First      Fourth     Third      Second     First

data; taxable

 equivalent)           Quarter    Quarter    Quarter    Quarter    Quarter

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



Interest revenue

 reconciliation

Interest revenue -

 taxable equivalent   $  70,221  $  71,905  $  74,543  $  76,931  $  75,965

Taxable equivalent

 adjustment                (446)      (423)      (420)      (429)      (435)

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

  Interest revenue

   (GAAP)             $  69,775  $  71,482  $  74,123  $  76,502  $  75,530

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



Net interest revenue

 reconciliation

Net interest revenue

 - taxable equivalent $  58,864  $  59,050  $  59,281  $  58,946  $  56,392

Taxable equivalent

 adjustment                (446)      (423)      (420)      (429)      (435)

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

  Net interest

   revenue (GAAP)     $  58,418  $  58,627  $  58,861  $  58,517  $  55,957

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



Total revenue

 reconciliation

Total operating

 revenue              $  59,243  $  57,717  $  34,779  $  61,851  $(121,770)

Taxable equivalent

 adjustment                (446)      (423)      (420)      (429)      (435)

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

  Total revenue

   (GAAP)             $  58,797  $  57,294  $  34,359  $  61,422  $(122,205)

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



Income (loss) before

 taxes reconciliation

Income (loss) before

 taxes                $  12,288  $   6,637  $ (11,741) $  13,123  $(237,041)

Taxable equivalent

 adjustment                (446)      (423)      (420)      (429)      (435)

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

  Income (loss)

   before taxes

   (GAAP)             $  11,842  $   6,214  $ (12,161) $  12,694  $(237,476)

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



Income tax (benefit)

 expense

 reconciliation

Income tax (benefit)

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

Taxable equivalent

 adjustment                (446)      (423)      (420)      (429)      (435)

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

  Income tax

   (benefit) expense

   (GAAP)             $     314  $  (3,687) $    (822) $     666  $    (140)

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



Book value per common

 share reconciliation

Tangible book value

 per common share     $    6.54  $    6.47  $    6.61  $    6.94  $    1.69

Effect of goodwill

 and other

 intangibles                .14        .15        .16        .17        .51

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

  Book value per

   common share

   (GAAP)             $    6.68  $    6.62  $    6.77  $    7.11  $    2.20

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



Average equity to

 assets

 reconciliation

Tangible common

 equity to assets          5.33%      5.38%      5.65%      1.37%      2.70%

Effect of preferred

 equity                    2.75       2.78       2.77       6.56       3.31

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

  Tangible equity to

   assets                  8.08       8.16       8.42       7.93       6.01

Effect of goodwill

 and other

 intangibles                .11        .12        .13        .13        .14

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

  Equity to assets

   (GAAP)                  8.19%      8.28%      8.55%      8.06%      6.15%

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



Tangible common

 equity to risk-

 weighted assets

 reconciliation

Tangible common

 equity to risk-

 weighted assets           8.21%      8.25%      8.52%      8.69%       .75%

Effect of other

 comprehensive income       .10       (.03)      (.29)      (.42)      (.32)

Effect of trust

 preferred                 1.15       1.18       1.19       1.15       1.13

Effect of preferred

 equity                    4.23       4.29       4.33       4.20       5.87

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

  Tier I capital

   ratio (Regulatory)     13.69%     13.69%     13.75%     13.62%      7.43%

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







UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Period-End (1)



                                  2012                   2011

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

                                  First   Fourth    Third   Second    First

(in millions)                    Quarter  Quarter  Quarter  Quarter  Quarter

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

LOANS BY CATEGORY

Commercial (sec.by RE)          $  1,843 $  1,822 $  1,771 $  1,742 $  1,692

Commercial & industrial              440      428      429      428      431

Commercial construction              167      164      169      195      213

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

    Total commercial               2,450    2,414    2,369    2,365    2,336

Residential mortgage               1,131    1,135    1,150    1,177    1,187

Residential construction             436      448      474      502      550

Consumer installment                 111      113      117      119      121

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

    Total loans                 $  4,128 $  4,110 $  4,110 $  4,163 $  4,194

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



LOANS BY MARKET

North Georgia                   $  1,408 $  1,426 $  1,478 $  1,500 $  1,531

Atlanta MSA                        1,239    1,220    1,192    1,188    1,179

North Carolina                       588      597      607      626      640

Coastal Georgia                      366      346      316      325      312

Gainesville MSA                      262      265      272      275      282

East Tennessee                       265      256      245      249      250

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

    Total loans                 $  4,128 $  4,110 $  4,110 $  4,163 $  4,194

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



RESIDENTIAL CONSTRUCTION

  Dirt loans

  Acquisition & development     $     86 $     88 $     97 $    105 $    116

  Land loans                          57       61       60       62       69

  Lot loans                          203      207      216      218      228

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

    Total                            346      356      373      385      413

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



House loans

  Spec                                57       59       64       74       88

  Sold                                32       33       37       43       49

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

    Total                             89       92      101      117      137

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

Total residential construction  $    435 $    448 $    474 $    502 $    550

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



RESIDENTIAL CONSTRUCTION - ATLANTA MSA

  Dirt loans

  Acquisition & development     $     17 $     17 $     19 $     20 $     22

  Land loans                          13       14       15       16       19

  Lot loans                           22       22       22       22       24

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

    Total                             52       53       56       58       65

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



House loans

  Spec                                27       27       28       30       34

  Sold                                 7        6        8        9       11

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

    Total                             34       33       36       39       45

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

Total residential construction  $     86 $     86 $     92 $     97 $    110

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



(1) Excludes total loans of $47.2 million, $54.5 million, $57.8 million,

 $70.8 million and $63.3 million as of March 31, 2012, December 31, 2011,

 September 30, 2011, June 30, 2011 and March 31, 2011, 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)



                                2012          2011

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

                                                                     Year

                                                          Linked     over

                                First   Fourth    First   Quarter    Year

(in millions)                  Quarter  Quarter  Quarter  Change    Change

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

LOANS BY CATEGORY

Commercial (sec.by RE)        $  1,843 $  1,822 $  1,692 $     21  $    151

Commercial & industrial            440      428      431       12         9

Commercial construction            167      164      213        3       (46)

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

    Total commercial             2,450    2,414    2,336       36       114

Residential mortgage             1,131    1,135    1,187       (4)      (56)

Residential construction           436      448      550      (12)     (114)

Consumer installment               111      113      121       (2)      (10)

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

    Total loans               $  4,128 $  4,110 $  4,194       18       (66)

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



LOANS BY MARKET

North Georgia                 $  1,408 $  1,426 $  1,531      (18)     (123)

Atlanta MSA                      1,239    1,220    1,179       19        60

North Carolina                     588      597      640       (9)      (52)

Coastal Georgia                    366      346      312       20        54

Gainesville MSA                    262      265      282       (3)      (20)

East Tennessee                     265      256      250        9        15

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

    Total loans               $  4,128 $  4,110 $  4,194       18       (66)

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



RESIDENTIAL CONSTRUCTION

Dirt loans

  Acquisition & development   $     86 $     88 $    116       (2)      (30)

  Land loans                        57       61       69       (4)      (12)

  Lot loans                        203      207      228       (4)      (25)

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

    Total                          346      356      413      (10)      (67)

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



House loans

  Spec                              57       59       88       (2)      (31)

  Sold                              32       33       49       (1)      (17)

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

    Total                           89       92      137       (3)      (48)

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

Total residential

 construction                 $    435 $    448 $    550      (13)     (115)

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



RESIDENTIAL CONSTRUCTION - ATLANTA MSA

Dirt loans

  Acquisition & development   $     17 $     17 $     22        -        (5)

  Land loans                        13       14       19       (1)       (6)

  Lot loans                         22       22       24        -        (2)

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

    Total                           52       53       65       (1)      (13)

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



House loans

  Spec                              27       27       34        -        (7)

  Sold                               7        6       11        1        (4)

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

    Total                           34       33       45        1       (11)

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

Total residential

 construction                 $     86 $     86 $    110        -       (24)

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



(1) Excludes total loans of $47.2 million, $54.5 million, $57.8 million,

 $70.8 million and $63.3 million as of March 31, 2012, December 31, 2011,

 September 30, 2011, June 30, 2011 and March 31, 2011, 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)



                                                First Quarter 2012

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

                                          Non-

                                       performing   Foreclosed     Total

(in thousands)                           Loans      Properties      NPAs

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

NPAs BY CATEGORY

Commercial (sec.by RE)                $    26,081  $    10,808  $    36,889

Commercial & industrial                    36,314            -       36,314

Commercial construction                    23,319        3,266       26,585

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

  Total commercial                         85,714       14,074       99,788

Residential mortgage                       18,741        5,882       24,623

Residential construction                   24,341       11,931       36,272

Consumer installment                          908            -          908

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

  Total NPAs                          $   129,704  $    31,887  $   161,591

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

  Balance as a % of Unpaid Principal         70.6%        36.1%        59.4%



NPAs BY MARKET

North Georgia                         $    81,117  $    14,559  $    95,676

Atlanta MSA                                22,321        7,647       29,968

North Carolina                             15,765        4,650       20,415

Coastal Georgia                             5,622        1,268        6,890

Gainesville MSA                             2,210        3,387        5,597

East Tennessee                              2,669          376        3,045

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

  Total NPAs                          $   129,704  $    31,887  $   161,591

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





NPA ACTIVITY

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

Loans placed on non-accrual                32,437            -       32,437

Payments received                          (5,945)           -       (5,945)

Loan charge-offs                          (14,733)           -      (14,733)

Foreclosures                               (9,534)       9,534            -

Capitalized costs                               -          329          329

Note / property sales                           -       (8,631)      (8,631)

Write downs                                     -       (2,111)      (2,111)

Net gains (losses) on sales                     -          (93)         (93)

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

  Ending Balance                      $   129,704  $    31,887  $   161,591

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



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

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

 Southern Community Bank.







UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality(1)



                                               Fourth Quarter 2011

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

                                          Non-

                                       performing   Foreclosed     Total

(in thousands)                           Loans      Properties      NPAs

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

NPAs BY CATEGORY

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

Commercial & industrial                    34,613            -       34,613

Commercial construction                    16,655        3,336       19,991

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

  Total commercial                         78,590       13,081       91,671

Residential mortgage                       22,358        6,927       29,285

Residential construction                   25,523       12,851       38,374

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

North Georgia                         $    88,600  $    15,136  $   103,736

Atlanta MSA                                14,480        6,169       20,649

North Carolina                             15,100        5,365       20,465

Coastal Georgia                             5,248        1,620        6,868

Gainesville MSA                             2,069        3,760        5,829

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.







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 & industrial                    53,009            -       53,009

Commercial construction                    11,370        5,862       17,232

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

  Total commercial                         86,377       14,742      101,119

Residential mortgage                       22,671        7,960       30,631

Residential construction                   34,472       21,561       56,033

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

North Georgia                         $   105,078  $    17,467  $   122,545

Atlanta MSA                                13,350       12,971       26,321

North Carolina                             13,243        7,941       21,184

Coastal Georgia                             5,600        2,354        7,954

Gainesville MSA                             5,311        2,495        7,806

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.







UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality(1)



                      First Quarter      Fourth Quarter     Third Quarter

                           2012               2011               2011

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

                                Net                Net                Net

                              Charge-            Charge-            Charge-

                              Offs to            Offs to            Offs to

                       Net    Average     Net    Average     Net    Average

                     Charge-            Charge-            Charge-

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

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

NET CHARGE-OFFS BY

 CATEGORY

Commercial (sec.by

 RE)                $  3,697      .81% $  4,962     1.09% $  2,192      .50%

Commercial &

 industrial              669      .62    18,940    17.47       420      .39

Commercial

 construction            334      .81     3,318     7.88     1,625     3.54

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

  Total commercial     4,700      .78    27,220     4.51     4,237      .71

Residential

 mortgage              5,375     1.91     5,887     2.04     6,110     2.09

Residential

 construction          5,314     4.84    12,090    10.36     6,381     5.19

Consumer

 installment             478     1.72       427     1.47       818     2.75

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

  Total             $ 15,867     1.55  $ 45,624     4.39  $ 17,546     1.68

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





NET CHARGE-OFFS BY

 MARKET

North Georgia       $  9,022     2.56% $ 34,970     9.46% $  8,124     2.16%

Atlanta MSA            2,729      .89     4,195     1.37     2,813      .94

North Carolina         1,679     1.14     3,180     2.10     3,608     2.31

Coastal Georgia        1,329     1.53       335      .41       709      .88

Gainesville MSA          883     1.35     2,572     3.84     1,804     2.64

East Tennessee           225      .34       372      .59       488      .78

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

  Total             $ 15,867     1.55  $ 45,624     4.39  $ 17,546     1.68

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



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

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

 Southern Community Bank.

(2) Annualized.







UNITED COMMUNITY BANKS, INC.

Consolidated Statement of Operations (Unaudited)



                                                      Three Months Ended

                                                           March 31,

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

(in thousands, except per share data)                  2012         2011

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



Interest revenue:

  Loans, including fees                            $    55,759  $    61,107

  Investment securities, including tax exempt of

   $250 and $259                                        13,004       13,604

  Federal funds sold, reverse repurchase

   agreements, commercial paper and deposits in

   banks                                                 1,012          819

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

      Total interest revenue                            69,775       75,530

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



Interest expense:

  Deposits:

    NOW                                                    637        1,324

    Money market                                           641        2,028

    Savings                                                 37           77

    Time                                                 6,159       11,732

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

      Total deposit interest expense                     7,474       15,161

  Federal funds purchased, repurchase agreements

   and other short-term borrowings                       1,045        1,042

  Federal Home Loan Bank advances                          466          590

  Long-term debt                                         2,372        2,780

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

    Total interest expense                              11,357       19,573

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

    Net interest revenue                                58,418       55,957

  Provision for loan losses                             15,000      190,000

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

    Net interest revenue after provision for loan

     losses                                             43,418     (134,043)

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



Fee revenue:

  Service charges and fees                               7,783        6,720

  Mortgage loan and other related fees                   2,099        1,494

  Brokerage fees                                           813          677

  Securities gains, net                                    557           55

  Loss from prepayment of debt                            (482)           -

  Other                                                  4,609        2,892

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

    Total fee revenue                                   15,379       11,838

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

    Total revenue                                       58,797     (122,205)

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



Operating expenses:

  Salaries and employee benefits                        25,225       24,924

  Communications and equipment                           3,155        3,344

  Occupancy                                              3,771        4,074

  Advertising and public relations                         846          978

  Postage, printing and supplies                           979        1,118

  Professional fees                                      1,975        3,330

  Foreclosed property                                    3,825       64,899

  FDIC assessments and other regulatory charges          2,510        5,413

  Amortization of intangibles                              732          762

  Other                                                  3,937        6,429

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

    Total operating expenses                            46,955      115,271

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

    Net income (loss) before income taxes               11,842     (237,476)

  Income tax expense (benefit)                             314         (140)

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

    Net income (loss)                                   11,528     (237,336)

  Preferred stock dividends and discount accretion       3,030        2,778

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

    Net income (loss) available to common

     shareholders                                  $     8,498  $  (240,114)

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



Earnings (loss) per common share - Basic / Diluted $       .15  $    (13.00)

Weighted average common shares outstanding - Basic

 / Diluted                                              57,764       18,466







UNITED COMMUNITY BANKS, INC.

Consolidated Balance Sheet





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

 per share data)                     2012           2011           2011

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

                                 (unaudited)    (unaudited)    (unaudited)

ASSETS

  Cash and due from banks       $      53,147  $      53,807  $     153,891

  Interest-bearing deposits in

   banks                              139,439        139,609        465,656

  Federal funds sold, reverse

   repurchase agreements,

   commercial paper and short-

   term investments                   235,000        185,000        470,087

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

    Cash and cash equivalents         427,586        378,416      1,089,634

  Securities available for sale     1,898,815      1,790,047      1,638,494

  Securities held to maturity

   (fair value $318,490,

   $343,531 and $248,361)             303,636        330,203        245,430

  Loans held for sale                       -              -         80,629

  Mortgage loans held for sale         24,809         23,881         25,364

  Loans, net of unearned income     4,127,566      4,109,614      4,194,372

    Less allowance for loan

     losses                           113,601        114,468        133,121

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

      Loans, net                    4,013,965      3,995,146      4,061,251

  Assets covered by loss

   sharing agreements with the

   FDIC                                72,854         78,145        125,789

  Premises and equipment, net         174,419        175,088        179,143

  Bank owned life insurance            80,956         80,599         79,777

  Accrued interest receivable          20,292         20,693         21,687

  Goodwill and other intangible

   assets                               7,695          8,428         10,684

  Foreclosed property                  31,887         32,859         54,378

  Unsettled securities sales           43,527              -              -

  Other assets                         73,252         69,915         97,228

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

    Total assets                $   7,173,693  $   6,983,420  $   7,709,488

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

LIABILITIES AND SHAREHOLDERS'

 EQUITY

Liabilities:

  Deposits:

    Demand                      $   1,101,757  $     992,109  $     864,708

    NOW                             1,389,016      1,509,896      1,320,136

    Money market                    1,123,734      1,038,778        967,938

    Savings                           214,150        199,007        193,591

    Time:

      Less than $100,000            1,207,479      1,332,394      1,576,505

      Greater than $100,000           796,882        847,152        990,289

      Brokered                        167,521        178,647        684,581

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

        Total deposits              6,000,539      6,097,983      6,597,748

  Federal funds purchased,

   repurchase agreements, and

   other short-term borrowings        101,925        102,577        102,107

  Federal Home Loan Bank

   advances                           215,125         40,625         55,125

  Long-term debt                      120,245        120,225        150,166

  Unsettled securities

   purchases                          119,565         10,325        177,532

  Accrued expenses and other

   liabilities                         36,755         36,199         40,766

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

      Total liabilities             6,594,154      6,407,934      7,123,444

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

Shareholders' equity:

  Preferred stock, $1 par

   value; 10,000,000 shares

   authorized;

      Series A; $10 stated

       value; 21,700 shares

       issued and outstanding             217            217            217

      Series B; $1,000 stated

       value; 180,000 shares

       issued and outstanding         177,451        177,092        176,049

      Series D; $1,000 stated

       value; 16,613 shares

       issued and outstanding          16,613         16,613         16,613

      Series F; $1,000 stated

       value; 195,872 shares

       issued and outstanding               -              -        195,872

      Series G; $1,000 stated

       value; 151,185 shares

       issued and outstanding               -              -        151,185

  Common stock, $1 par value;

   100,000,000 shares

   authorized; 41,688,647,

   41,647,100 and 20,903,111

   shares issued and

   outstanding                         41,689         41,647         20,903

  Common stock, non-voting, $1

   par value; 30,000,000 shares

   authorized; 15,914,209

   shares issued and

   outstanding                         15,914         15,914              -

  Common stock issuable;

   90,126, 93,681 and 79,428

   shares                               2,948          3,233          3,681

  Capital surplus                   1,056,135      1,054,940        738,963

  Accumulated deficit                (722,363)      (730,861)      (732,390)

  Accumulated other

   comprehensive (loss) income         (9,065)        (3,309)        14,951

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

      Total shareholders'

       equity                         579,539        575,486        586,044

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

      Total liabilities and

       shareholders' equity     $   7,173,693  $   6,983,420  $   7,709,488

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







UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended March 31,



                                                           2012

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

                                                 Average               Avg.

(dollars in thousands, taxable equivalent)       Balance     Interest  Rate

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

Assets:

Interest-earning assets:

  Loans, net of unearned income (1)(2)         $ 4,168,440  $  55,842  5.39%

  Taxable securities (3)                         2,127,794     12,754  2.40

  Tax-exempt securities (1)(3)                      25,438        410  6.45

  Federal funds sold and other interest-

   earning assets                                  377,988      1,215  1.29

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



      Total interest-earning assets              6,699,660     70,221  4.21

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

Non-interest-earning assets:

  Allowance for loan losses                       (117,803)

  Cash and due from banks                           54,664

  Premises and equipment                           174,849

  Other assets (3)                                 233,676

                                               -----------

      Total assets                             $ 7,045,046

                                               ===========



Liabilities and Shareholders' Equity:

Interest-bearing liabilities:

  Interest-bearing deposits:

    NOW                                        $ 1,458,112        637   .18

    Money market                                 1,069,658        641   .24

    Savings                                        205,402         37   .07

    Time less than $100,000                      1,271,351      3,026   .96

    Time greater than $100,000                     821,164      2,415  1.18

    Brokered                                       161,335        718  1.79

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

      Total interest-bearing deposits            4,987,022      7,474   .60

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



    Federal funds purchased and other

     borrowings                                    102,258      1,045  4.11

    Federal Home Loan Bank advances                138,372        466  1.35

    Long-term debt                                 120,237      2,372  7.93

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

      Total borrowed funds                         360,867      3,883  4.33

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



      Total interest-bearing liabilities         5,347,889     11,357   .85

                                                            ---------

Non-interest-bearing liabilities:

    Non-interest-bearing deposits                1,040,587

    Other liabilities                               79,612

                                               -----------

      Total liabilities                          6,468,088

Shareholders' equity                               576,958

                                               -----------

      Total liabilities and shareholders'

       equity                                  $ 7,045,046

                                               ===========



Net interest revenue                                        $  58,864

                                                            =========

Net interest-rate spread                                               3.36%

                                                                      =====



Net interest margin(4)                                                 3.53%

                                                                      =====



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

 to reflect comparable interest on taxable securities and loans. The

 rateused 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 $23.6 million in 2012 and $27.2 million in 2011 are

 includedin other assets for purposes of this presentation.

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

 by average interest-earning assets.







UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended March 31,



                                                           2011

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

                                                 Average               Avg.

(dollars in thousands, taxable equivalent)       Balance     Interest  Rate

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

Assets:

Interest-earning assets:

  Loans, net of unearned income (1)(2)         $ 4,598,860  $  61,070  5.39%

  Taxable securities (3)                         1,599,481     13,345  3.34

  Tax-exempt securities (1)(3)                      25,827        424  6.57

  Federal funds sold and other interest-

   earning assets                                  677,453      1,126   .66

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



      Total interest-earning assets              6,901,621     75,965  4.45

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

Non-interest-earning assets:

  Allowance for loan losses                       (169,113)

  Cash and due from banks                          134,341

  Premises and equipment                           179,353

  Other assets (3)                                 332,827

                                               -----------

      Total assets                             $ 7,379,029

                                               ===========



Liabilities and Shareholders' Equity:

Interest-bearing liabilities:

  Interest-bearing deposits:

    NOW                                        $ 1,373,142      1,324   .39

    Money market                                   928,542      2,028   .89

    Savings                                        187,423         77   .17

    Time less than $100,000                      1,540,342      5,451  1.44

    Time greater than $100,000                     990,881      4,151  1.70

    Brokered                                       698,288      2,130  1.24

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

      Total interest-bearing deposits            5,718,618     15,161  1.08

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



    Federal funds purchased and other

     borrowings                                    101,097      1,042  4.18

    Federal Home Loan Bank advances                 55,125        590  4.34

    Long-term debt                                 150,157      2,780  7.51

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

      Total borrowed funds                         306,379      4,412  5.84

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



      Total interest-bearing liabilities         6,024,997     19,573  1.32

                                                            ---------

Non-interest-bearing liabilities:

  Non-interest-bearing deposits                    841,351

  Other liabilities                                 58,634

                                               -----------

    Total liabilities                            6,924,982

Shareholders' equity                               454,047

                                               -----------

      Total liabilities and shareholders'

       equity                                  $ 7,379,029

                                               ===========



Net interest revenue                                        $  56,392

                                                            =========

Net interest-rate spread                                               3.13%

                                                                      =====



Net interest margin(4)                                                 3.30%

                                                                      =====



(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 $23.6 million in 2012 and $27.2 million in 2011 are

 included in other assets for purposes of this presentation.

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

 by average interest-earning assets.





For more information:

Rex S. Schuette

Chief Financial Officer

(706) 781-2266

Email Contact



Source: United Community Banks, Inc.

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