United Community Banks, Inc.
Jul 26, 2012

United Community Banks, Inc. Reports Earnings of $6.5 Million for Second Quarter 2012

Earnings Press Release Second Quarter 2012

BLAIRSVILLE, GA -- (Marketwire) -- 07/26/12 -- United Community Banks, Inc. (NASDAQ: UCBI)

United Community Banks, Inc. (NASDAQ: UCBI) today reported net income of $6.5 million, or six cents per share, for the second quarter of 2012; and $18.0 million, or 21 cents per share, year-to-date. The results for the second quarter and first six months of 2012 reflect strong core transaction deposit growth, increases in fee revenue and lower operating expenses compared with the same periods a year ago.

"Our lower operating expenses reflect ongoing efforts to meaningfully increase operating efficiency, while at the same time remaining focused on improving credit measures," said Jimmy Tallent, president and chief executive officer. "Our credit measures continue their positive trend, with nonperforming assets down $15.8 million, or 10 percent, from the first quarter. The second quarter marks our fourth profitable quarter following our 2011 capital transaction and the execution of our problem asset disposition plan. Looking forward, we expect profitability to continue from improved efficiency, revenue enhancements and expense reductions while growing and improving our business mix of loans and deposits."

Total loans were $4.12 billion at quarter-end, down slightly from the first quarter and down $44 million from a year earlier. "While loans declined slightly in the second quarter they remain up year-to-date. We expect some volatility in balances due to the ongoing sluggish economy. We are prudently growing the portfolio by focusing on full-service relationships with small-to-medium-sized businesses. During the second quarter we added $132 million in new loan commitments, of which $87 million were funded by quarter-end. The majority were commercial loans."

"Growing quality loan and deposit relationships remains a key focus for 2012," Tallent commented. "The highly competitive market for quality lending opportunities keeps pressure on loan pricing. At the same time our success attracting core transaction deposits has continued, with balances increasing $12 million in the second quarter and an especially strong $151 million in the first quarter. Annualized, the growth rate is 11 percent."

The second quarter provision for loan losses was $18 million, up from $11 million a year ago and $15 million in the first quarter. Second quarter net charge-offs were $18.9 million, compared to $16.5 million in the second quarter of 2011 and $15.9 million in the first quarter of 2012.

"Nonperforming assets of $145.8 million were down $15.8 million from the first quarter," Tallent said. "Nonperforming asset levels are impacted significantly by the inflow of new nonperforming loans and our ability to liquidate foreclosed properties. In the second quarter, the inflow of new nonperforming loans slowed to $29.4 million from $32.4 million in the first quarter. Also, loans past due 30 to 89 days declined from .86 percent of outstanding loans in the first quarter to .65 percent in the second quarter. We expect our overall credit trends to continue to improve during 2012, although not necessarily in a linear fashion."

Taxable equivalent net interest revenue declined $2.0 million from the first quarter of 2012, and $2.1 million from the second quarter of 2011, to $56.8 million. Said Tallent, "The decrease from the first quarter was primarily due to the lower yield on the securities portfolio, which was significantly impacted by heavy prepayment activity in the mortgage market. This activity accelerated the amortization of bond purchase premiums, suppressing the securities portfolio yield. Further, the yields at which the proceeds were reinvested fell short of those of the bonds they replaced. Consequently, our net interest margin was down 10 basis points from the first quarter, to 3.43 percent. It was up two basis points, however, from the second quarter of 2011."

Fee revenue was $12.9 million in the second quarter, compared to $15.4 million in the first quarter and $13.9 million a year ago. The decline in fee revenue from the first quarter of 2012 and second quarter of 2011 was primarily due to nonrecurring revenue items noted below. Service charges and fees were $7.8 million, similar to the first quarter and up $208,000 from the second quarter of 2011. The increase in service charges and fees from a year ago reflects new fees on deposit accounts that became effective in the first quarter of 2012, which more than offset lower overdraft fees.

Fee revenue for the quarter included $6.5 million of securities gains reflecting the sale of $175 million in fixed rate securities. As part of the balance sheet restructuring, $75 million of fixed rate wholesale funding was prepaid, resulting in prepayment charges of $6.2 million. "Overall, the deleveraging of our balance sheet should improve our margin and interest rate sensitivity, while maintaining the level of net interest revenue," stated Tallent.

Mortgage fee revenue of $2.3 million reflected a $223,000 increase from the first quarter and $1.4 million from a year ago. Comparisons to prior periods are influenced significantly by the interest rate environment and refinancing activities. Closed mortgage loans totaled $79.8 million in the second quarter of 2012 compared with $81.7 million in the first quarter and $50.5 million in the second quarter of 2011. Other fee revenue was down $3 million from both the first quarter of 2012 and the fourth quarter of 2011, to $1.6 million. The first quarter of 2012 included $1.1 million in interest on a prior year's federal tax refund, $728,000 in gains from the sale of low income housing tax credits, and $115,000 in hedge ineffectiveness gains. The second quarter of 2011 included $2.8 million in hedge ineffectiveness gains, in contrast with $180,000 in hedge ineffectiveness losses in the second quarter of 2012.

Excluding foreclosed property costs, second quarter 2012 operating expenses were $42.5 million compared to $43.1 million for the first quarter and $46.8 million a year ago. Lower staff levels and related costs were the primary drivers of the decrease from both periods, with 93 fewer staff positions compared to the first quarter and 153 fewer from a year ago. Most other expense categories were down as well, reflecting efforts to improve operating efficiency by lowering costs. The decrease in operating expenses from a year ago also reflects a $1.1 million decrease in the FDIC assessment due to a lower assessment rate.

Foreclosed property costs for the second quarter of 2012 were $1.9 million, compared to $3.8 million in the first quarter and $1.9 million a year ago. Second quarter 2012 costs included $1.1 million for maintenance and $739,000 in net losses and write-downs. For the first quarter, foreclosed property costs included $1.6 million in maintenance and $2.2 million in net losses and write-downs. Second quarter 2011 costs included $2.0 million in maintenance and $100,000 in net gains from sales.

As of June 30, 2012, capital ratios were as follows: Tier 1 Risk-Based of 14.2 percent; Tier 1 Leverage of 9.1 percent; and Total Risk-Based of 15.9 percent. The Tier 1 Common Risk-Based ratio was 8.7 percent and the tangible equity-to-assets ratio was 8.2 percent.

Conference Call
United will hold a conference call today, Thursday, July 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 97692673. 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 $6.7 billion and operates 27 community banks with 104 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 data; taxable        Second     First    Fourth     Third    Second

 equivalent)                Quarter   Quarter   Quarter   Quarter   Quarter

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

INCOME SUMMARY

Interest revenue           $ 66,780  $ 70,221  $ 71,905  $ 74,543  $ 76,931

Interest expense              9,944    11,357    12,855    15,262    17,985

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

    Net interest revenue     56,836    58,864    59,050    59,281    58,946

Provision for loan losses    18,000    15,000    14,000    36,000    11,000

Fee revenue                  12,867    15,379    12,667    11,498    13,905

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

    Total revenue            51,703    59,243    57,717    34,779    61,851

Operating expenses           44,310    46,955    51,080    46,520    48,728

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

    Income (loss) before

     income taxes             7,393    12,288     6,637   (11,741)   13,123

Income tax expense

 (benefit)                      894       760    (3,264)     (402)    1,095

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

    Net income (loss)         6,499    11,528     9,901   (11,339)   12,028

Preferred dividends and

 discount accretion           3,032     3,030     3,025     3,019     3,016

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

Net income (loss)

 available to common

 shareholders              $  3,467  $  8,498  $  6,876  $(14,358) $  9,012

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



PERFORMANCE MEASURES

  Per common share:

    Diluted income (loss)  $    .06  $    .15  $    .12  $   (.25) $    .16

    Book value                 6.61      6.68      6.62      6.77      7.11

    Tangible book value

     (2)                       6.48      6.54      6.47      6.61      6.94



  Key performance ratios:

    Return on equity

     (1)(3)                    3.51%     8.78%     7.40%  (15.06)%    42.60%

    Return on assets (3)        .37       .66       .56      (.64)      .66

    Net interest margin

     (3)                       3.43      3.53      3.51      3.55      3.41

    Efficiency ratio          63.84     63.31     71.23     65.73     66.88

    Equity to assets           8.33      8.19      8.28      8.55      8.06

    Tangible equity to

     assets (2)                8.24      8.08      8.16      8.42      7.93

    Tangible common equity

     to assets (2)             5.45      5.33      5.38      5.65      1.37

    Tangible common equity

     to risk- weighted

     assets (2)                8.37      8.21      8.25      8.52      8.69



ASSET QUALITY *

  Non-performing loans     $115,340  $129,704  $127,479  $144,484  $ 71,065

  Foreclosed properties      30,421    31,887    32,859    44,263    47,584

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

    Total non-performing

     assets (NPAs)          145,761   161,591   160,338   188,747   118,649

  Allowance for loan

   losses                   112,705   113,601   114,468   146,092   127,638

  Net charge-offs            18,896    15,867    45,624    17,546    16,483

  Allowance for loan

   losses to loans             2.74%     2.75%     2.79%     3.55%     3.07%

  Net charge-offs to

   average loans (3)           1.85      1.55      4.39      1.68      1.58

  NPAs to loans and

   foreclosed properties       3.51      3.88      3.87      4.54      2.82

  NPAs to total assets         2.16      2.25      2.30      2.74      1.66



AVERAGE BALANCES ($ in

 millions)

  Loans                    $  4,156  $  4,168  $  4,175  $  4,194  $  4,266

  Investment securities       2,145     2,153     2,141     2,150     2,074

  Earning assets              6,665     6,700     6,688     6,630     6,924

  Total assets                6,993     7,045     7,019     7,000     7,363

  Deposits                    5,853     6,028     6,115     6,061     6,372

  Shareholders' equity          583       577       581       598       594

  Common shares - basic

   (thousands)               57,840    57,764    57,646    57,599    25,427

  Common shares - diluted

   (thousands)               57,840    57,764    57,646    57,599    57,543



AT PERIOD END ($ in

 millions)

  Loans *                  $  4,119  $  4,128  $  4,110  $  4,110  $  4,163

  Investment securities       1,984     2,202     2,120     2,123     2,188

  Total assets                6,737     7,174     6,983     6,894     7,152

  Deposits                    5,822     6,001     6,098     6,005     6,183

  Shareholders' equity          576       580       575       583       603

  Common shares

   outstanding (thousands)   57,641    57,603    57,561    57,510    57,469



(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



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

                                      Second       For the Six

(in thousands,      Second Quarter    Quarter      Months Ended       YTD

except per share  ------------------   2012-    -------------------  2012-

data; taxable                           2011                          2011

 equivalent)        2012      2011     Change     2012      2011     Change

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

INCOME SUMMARY

Interest revenue  $ 66,780  $ 76,931            $137,001  $ 152,896

Interest expense     9,944    17,985              21,301     37,558

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

    Net interest

     revenue        56,836    58,946       (4)%  115,700    115,338       -%

Provision for

 loan losses        18,000    11,000              33,000    201,000

Fee revenue         12,867    13,905       (7)    28,246     25,743      10

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

    Total revenue   51,703    61,851             110,946    (59,919)

Operating

 expenses           44,310    48,728       (9)    91,265    163,999     (44)

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

    Income (loss)

     before

     income taxes    7,393    13,123              19,681   (223,918)

Income tax

 expense

 (benefit)             894     1,095               1,654      1,390

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

    Net income

     (loss)          6,499    12,028      (46)    18,027   (225,308)

Preferred

 dividends and

 discount

 accretion           3,032     3,016               6,062      5,794

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

Net income (loss)

 available to

 common

 shareholders     $  3,467  $  9,012      (62)  $ 11,965  $(231,102)

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



PERFORMANCE

 MEASURES

  Per common

   share:

    Diluted

     income

     (loss)       $    .06  $    .16      (63)  $    .21  $  (10.52)

    Book value        6.61      7.11       (7)      6.61       7.11      (7)

    Tangible book

     value (2)        6.48      6.94       (7)      6.48       6.94      (7)



  Key performance

   ratios:

    Return on

     equity

     (1)(3)           3.51%    42.60%               6.12%  (345.86)%

    Return on

     assets (3)        .37       .66                 .52      (6.16)

    Net interest

     margin (3)       3.43      3.41                3.48       3.36

    Efficiency

     ratio           63.84     66.88               63.56     116.28

    Equity to

     assets           8.33      8.06                8.26       7.11

    Tangible

     equity to

     assets (2)       8.24      7.93                8.16       7.00

    Tangible

     common

     equity to

     assets (2)       5.45      1.37                5.39       2.05

    Tangible

     common

     equity to

     risk-

     weighted

     assets (2)       8.37      8.69                8.37       8.69



ASSET QUALITY *

  Non-performing

   loans          $115,340  $ 71,065            $115,340  $  71,065

  Foreclosed

   properties       30,421    47,584              30,421     47,584

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

    Total non-

     performing

     assets

     (NPAs)        145,761   118,649             145,761    118,649

  Allowance for

   loan losses     112,705   127,638             112,705    127,638

  Net charge-offs   18,896    16,483              34,763    248,057

  Allowance for

   loan losses to

   loans              2.74%     3.07%               2.74%      3.07%

  Net charge-offs

   to average

   loans (3)          1.85      1.58                1.70      11.46

  NPAs to loans

   and foreclosed

   properties         3.51      2.82                3.51       2.82

  NPAs to total

   assets             2.16      1.66                2.16       1.66



AVERAGE

 BALANCES($ in

 millions)

  Loans           $  4,156  $  4,266       (3)  $  4,162  $   4,432      (6)

  Investment

   securities        2,145     2,074        3      2,149      1,851      16

  Earning assets     6,665     6,924       (4)     6,682      6,913      (3)

  Total assets       6,993     7,363       (5)     7,019      7,371      (5)

  Deposits           5,853     6,372       (8)     5,940      6,465      (8)

  Shareholders'

   equity              583       594       (2)       580        524      11

  Common shares -

   basic

   (thousands)      57,840    25,427              57,803     21,965

  Common shares -

   diluted

   (thousands)      57,840    57,543              57,803     21,965



AT PERIOD END($

 in millions)

  Loans *         $  4,119  $  4,163       (1)  $  4,119  $   4,163      (1)

  Investment

   securities        1,984     2,188       (9)     1,984      2,188      (9)

  Total assets       6,737     7,152       (6)     6,737      7,152      (6)

  Deposits           5,822     6,183       (6)     5,822      6,183      (6)

  Shareholders'

   equity              576       603       (4)       576        603      (4)

  Common shares

   outstanding

   (thousands)      57,641    57,469              57,641     57,469



(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 data; taxable        Second     First    Fourth     Third    Second

 equivalent)                Quarter   Quarter   Quarter   Quarter   Quarter

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



Interest revenue

 reconciliation

Interest revenue - taxable

 equivalent                $ 66,780  $ 70,221  $ 71,905  $ 74,543  $ 76,931

Taxable equivalent

 adjustment                    (444)     (446)     (423)     (420)     (429)

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

  Interest revenue (GAAP)  $ 66,336  $ 69,775  $ 71,482  $ 74,123  $ 76,502

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



Net interest revenue

 reconciliation

Net interest revenue -

 taxable equivalent        $ 56,836  $ 58,864  $ 59,050  $ 59,281  $ 58,946

Taxable equivalent

 adjustment                    (444)     (446)     (423)     (420)     (429)

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

  Net interest revenue

   (GAAP)                  $ 56,392  $ 58,418  $ 58,627  $ 58,861  $ 58,517

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



Total revenue

 reconciliation

Total operating revenue    $ 51,703  $ 59,243  $ 57,717  $ 34,779  $ 61,851

Taxable equivalent

 adjustment                    (444)     (446)     (423)     (420)     (429)

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

  Total revenue (GAAP)     $ 51,259  $ 58,797  $ 57,294  $ 34,359  $ 61,422

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



Income (loss) before taxes

 reconciliation

Income (loss) before taxes $  7,393  $ 12,288  $  6,637  $(11,741) $ 13,123

Taxable equivalent

 adjustment                    (444)     (446)     (423)     (420)     (429)

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

  Income (loss) before

   taxes (GAAP)            $  6,949  $ 11,842  $  6,214  $(12,161) $ 12,694

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



Income tax (benefit)

 expense reconciliation

Income tax (benefit)

 expense                   $    894  $    760  $ (3,264) $   (402) $  1,095

Taxable equivalent

 adjustment                    (444)     (446)     (423)     (420)     (429)

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

  Income tax (benefit)

   expense (GAAP)          $    450  $    314  $ (3,687) $   (822) $    666

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



Book value per common

 share reconciliation

Tangible book value per

 common share              $   6.48  $   6.54  $   6.47  $   6.61  $   6.94

Effect of goodwill and

 other intangibles              .13       .14       .15       .16       .17

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

  Book value per common

   share (GAAP)            $   6.61  $   6.68  $   6.62  $   6.77  $   7.11

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



Average equity to assets

 reconciliation

Tangible common equity to

 assets                        5.45%     5.33%     5.38%     5.65%     1.37%

Effect of preferred equity     2.79      2.75      2.78      2.77      6.56

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

  Tangible equity to

   assets                      8.24      8.08      8.16      8.42      7.93

Effect of goodwill and

 other intangibles              .09       .11       .12       .13       .13

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

  Equity to assets (GAAP)      8.33%     8.19%     8.28%     8.55%     8.06%

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



Tangible common equity to risk-weighted

 assets reconciliation

Tangible common equity to

 risk-weighted assets          8.37%     8.21%     8.25%     8.52%     8.69%

Effect of other

 comprehensive income           .28       .10      (.03)     (.29)     (.42)

Effect of trust preferred      1.19      1.15      1.18      1.19      1.15

Effect of preferred equity     4.35      4.23      4.29      4.33      4.20

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

  Tier I capital ratio

   (Regulatory)               14.19%    13.69%    13.69%    13.75%    13.62%

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









UNITED COMMUNITY BANKS, INC.

Non-GAAP Performance Measures Reconciliation

Selected Financial Information



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



                                                           For the Six

(in thousands, except per share                           Months Ended

data; taxable equivalent)                               2012        2011

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



Interest revenue reconciliation

Interest revenue - taxable equivalent                $  137,001  $  152,896

Taxable equivalent adjustment                              (890)       (864)

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

  Interest revenue (GAAP)                            $  136,111  $  152,032

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



Net interest revenue reconciliation

Net interest revenue - taxable equivalent            $  115,700  $  115,338

Taxable equivalent adjustment                              (890)       (864)

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

  Net interest revenue (GAAP)                        $  114,810  $  114,474

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



Total revenue reconciliation

Total operating revenue                              $  110,946  $  (59,919)

Taxable equivalent adjustment                              (890)       (864)

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

  Total revenue (GAAP)                               $  110,056  $  (60,783)

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



Income (loss) before taxes reconciliation

Income (loss) before taxes                           $   19,681  $ (223,918)

Taxable equivalent adjustment                              (890)       (864)

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

  Income (loss) before taxes (GAAP)                  $   18,791  $ (224,782)

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



Income tax (benefit) expense reconciliation

Income tax (benefit) expense                         $    1,654  $    1,390

Taxable equivalent adjustment                              (890)       (864)

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

  Income tax (benefit) expense (GAAP)                $      764  $      526

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



Book value per common share reconciliation

Tangible book value per common share                 $     6.48  $     6.94

Effect of goodwill and other intangibles                    .13         .17

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

  Book value per common share (GAAP)                 $     6.61  $     7.11

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



Average equity to assets reconciliation

Tangible common equity to assets                           5.39%       2.05

Effect of preferred equity                                 2.77        4.95

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

  Tangible equity to assets                                8.16        7.00

Effect of goodwill and other intangibles                    .10         .11

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

  Equity to assets (GAAP)                                  8.26%       7.11

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



Tangible common equity to risk-weighted assets

 reconciliation

Tangible common equity to risk-weighted assets             8.37%       8.69

Effect of other comprehensive income                        .28        (.42)

Effect of trust preferred                                  1.19        1.15

Effect of preferred equity                                 4.35        4.20

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

  Tier I capital ratio (Regulatory)                       14.19%      13.62

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









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Period-End (1)



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



                                           2012                2011

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

                                      Second  First   Fourth  Third   Second

(in millions)                        Quarter Quarter Quarter Quarter Quarter

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

LOANS BY CATEGORY

Commercial (sec.by RE)               $ 1,837 $ 1,843 $ 1,822 $ 1,771 $ 1,742

Commercial & industrial                  450     440     428     429     428

Commercial construction                  169     167     164     169     195

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

    Total commercial                   2,456   2,450   2,414   2,369   2,365

Residential mortgage                   1,128   1,131   1,135   1,150   1,177

Residential construction                 409     436     448     474     502

Consumer installment                     126     111     113     117     119

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

    Total loans                      $ 4,119 $ 4,128 $ 4,110 $ 4,110 $ 4,163

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



LOANS BY MARKET

North Georgia                        $ 1,387 $ 1,408 $ 1,426 $ 1,478 $ 1,500

Atlanta MSA                            1,252   1,239   1,220   1,192   1,188

North Carolina                           576     588     597     607     626

Coastal Georgia                          369     366     346     316     325

Gainesville MSA                          259     262     265     272     275

East Tennessee                           276     265     256     245     249

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

    Total loans                      $ 4,119 $ 4,128 $ 4,110 $ 4,110 $ 4,163

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



RESIDENTIAL CONSTRUCTION

Dirt loans

  Acquisition & development          $    78 $    86 $    88 $    97 $   105

  Land loans                              45      57      61      60      62

  Lot loans                              203     204     207     216     218

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

    Total                                326     347     356     373     385

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



House loans

  Spec                                    49      57      59      64      74

  Sold                                    34      32      33      37      43

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

    Total                                 83      89      92     101     117

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

Total residential construction       $   409 $   436 $   448 $   474 $   502

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



RESIDENTIAL CONSTRUCTION - ATLANTA MSA

Dirt loans

  Acquisition & development          $    14 $    17 $    17 $    19 $    20

  Land loans                               9      13      14      15      16

  Lot loans                               22      22      22      22      22

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

    Total                                 45      52      53      56      58

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



House loans

  Spec                                    24      27      27      28      30

  Sold                                     7       7       6       8       9

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

    Total                                 31      34      33      36      39

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

Total residential construction       $    76 $    86 $    86 $    92 $    97

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



(1) Excludes total loans of $41.5 million, $47.2 million, $54.5 million,

 $57.8 million and $70.8 million as of June 30, 2012, March 31, 2012,

 December 31, 2011, September 30, 2011 and June 30, 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

                                    Second  First   Second Quarter    Year

(in millions)                      Quarter Quarter Quarter Change   Change

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



LOANS BY CATEGORY

Commercial (sec.by RE)             $ 1,837 $ 1,843 $ 1,742 $    (6) $    95

Commercial & industrial                450     440     428      10       22

Commercial construction                169     167     195       2      (26)

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

    Total commercial                 2,456   2,450   2,365       6       91

Residential mortgage                 1,128   1,131   1,177      (3)     (49)

Residential construction               409     436     502     (27)     (93)

Consumer installment                   126     111     119      15        7

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

    Total loans                    $ 4,119 $ 4,128 $ 4,163      (9)     (44)

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



LOANS BY MARKET

North Georgia                      $ 1,387 $ 1,408 $ 1,500     (21)    (113)

Atlanta MSA                          1,252   1,239   1,188      13       64

North Carolina                         576     588     626     (12)     (50)

Coastal Georgia                        369     366     325       3       44

Gainesville MSA                        259     262     275      (3)     (16)

East Tennessee                         276     265     249      11       27

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

    Total loans                    $ 4,119 $ 4,128 $ 4,163      (9)     (44)

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



RESIDENTIAL CONSTRUCTION

Dirt loans

  Acquisition & development        $    78 $    86 $   105      (8)     (27)

  Land loans                            45      57      62     (12)     (17)

  Lot loans                            203     204     218      (1)     (15)

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

    Total                              326     346     385     (21)     (59)

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



House loans

  Spec                                  49      57      74      (8)     (25)

  Sold                                  34      32      43       2       (9)

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

    Total                               83      89     117      (6)     (34)

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

Total residential construction     $   409 $   436 $   502     (27)     (93)

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



RESIDENTIAL CONSTRUCTION - ATLANTA MSA

Dirt loans

  Acquisition & development        $    14 $    17 $    20      (3)      (6)

  Land loans                             9      13      16      (4)      (7)

  Lot loans                             22      22      22       -        -

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

    Total                               45      52      58      (7)     (13)

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



House loans

  Spec                                  24      27      30      (3)      (6)

  Sold                                   7       7       9       -       (2)

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

    Total                               31      34      39      (3)      (8)

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

Total residential construction     $    76 $    86 $    97     (10)     (21)

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



(1) Excludes total loans of $41.5 million, $47.2 million, $54.5 million,

 $57.8 million and $70.8 million as of June 30, 2012, March 31, 2012,

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



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



                                           Second Quarter 2012

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

                             Non-performing    Foreclosed         Total

(in thousands)                    Loans        Properties         NPAs

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

NPAs BY CATEGORY

Commercial (sec.by RE)       $       19,115  $       10,586  $       29,701

Commercial & industrial              34,982               -          34,982

Commercial construction              18,175           2,732          20,907

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

  Total commercial                   72,272          13,318          85,590

Residential mortgage                 16,631           5,591          22,222

Residential construction             25,530          11,512          37,042

Consumer installment                    907               -             907

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

  Total NPAs                 $      115,340  $       30,421  $      145,761

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

  Balance as a % of Unpaid

   Principal                           68.8%           39.3%           59.4%



NPAs BY MARKET

North Georgia                $       77,332  $       13,546  $       90,878

Atlanta MSA                          17,593           8,651          26,244

North Carolina                       10,657           3,287          13,944

Coastal Georgia                       5,822             785           6,607

Gainesville MSA                         991           2,998           3,989

East Tennessee                        2,945           1,154           4,099

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

  Total NPAs                 $      115,340  $       30,421  $      145,761

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





NPA ACTIVITY

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

Loans placed on non-accrual          29,364               -          29,364

Payments received                   (15,027)              -         (15,027)

Loan charge-offs                    (19,382)              -         (19,382)

Foreclosures                         (9,319)          9,319               -

Capitalized costs                         -             415             415

Note / property sales                     -         (10,461)        (10,461)

Write downs                               -          (1,008)         (1,008)

Net gains (losses) on sales               -             269             269

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

  Ending Balance             $      115,340  $       30,421  $      145,761

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



(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 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)



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



                        Second Quarter     First Quarter    Fourth Quarter

                             2012              2012              2011

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

                                  Net               Net               Net

                                Charge-           Charge-           Charge-

                                Offs to           Offs to           Offs to

                         Net    Average     Net   Average     Net   Average

                       Charge-   Loans    Charge-  Loans    Charge-  Loans

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

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

NET CHARGE-OFFS BY CATEGORY

Commercial (sec.by

 RE)                  $  4,349      .95% $  3,697     .81% $  4,962    1.09%

Commercial &

 industrial                775      .70       669     .62    18,940   17.47

Commercial

 construction               88      .21       334     .81     3,318    7.88

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

  Total commercial       5,212      .86     4,700     .78    27,220    4.51

Residential mortgage     3,862     1.38     5,375    1.91     5,887    2.04

Residential

 construction            9,563     9.14     5,314    4.84    12,090   10.36

Consumer installment       259      .88       478    1.72       427    1.47

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

  Total               $ 18,896     1.85  $ 15,867    1.55  $ 45,624    4.39

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





NET CHARGE-OFFS BY MARKET

North Georgia         $ 12,474     3.58% $  9,022    2.56% $ 34,970    9.46%

Atlanta MSA              2,307      .75     2,729     .89     4,195    1.37

North Carolina           3,634     2.52     1,679    1.14     3,180    2.10

Coastal Georgia            211      .23     1,329    1.53       335     .41

Gainesville MSA           (187)    (.29)      883    1.35     2,572    3.84

East Tennessee             457      .68       225     .34       372     .59

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

  Total               $ 18,896     1.85  $ 15,867    1.55  $ 45,624    4.39

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



(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     Six Months Ended

                                       June 30,              June 30,

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

(in thousands, except per share

 data)                              2012       2011       2012       2011

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



Interest revenue:

  Loans, including fees          $  54,178  $  60,958  $ 109,937  $ 122,065

  Investment securities,

   including tax exempt of $262,

   $251, $512 and $510              11,062     14,792     24,066     28,396

  Federal funds sold, reverse

   repurchase agreements,

   commercial paper and deposits

   in banks                          1,096        752      2,108      1,571

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

      Total interest revenue        66,336     76,502    136,111    152,032

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



Interest expense:

  Deposits:

    NOW                                503      1,036      1,140      2,360

    Money market                       661      1,499      1,302      3,527

    Savings                             38         64         75        141

    Time                             5,073     10,995     11,232     22,727

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

      Total deposit interest

       expense                       6,275     13,594     13,749     28,755

  Federal funds purchased,

   repurchase agreements and

   other short-term borrowings         904      1,074      1,949      2,116

  Federal Home Loan Bank

   advances                            390        570        856      1,160

  Long-term debt                     2,375      2,747      4,747      5,527

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

    Total interest expense           9,944     17,985     21,301     37,558

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

    Net interest revenue            56,392     58,517    114,810    114,474

  Provision for loan losses         18,000     11,000     33,000    201,000

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

    Net interest revenue after

     provision for loan losses      38,392     47,517     81,810    (86,526)

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



Fee revenue:

  Service charges and fees           7,816      7,608     15,599     14,328

  Mortgage loan and other

   related fees                      2,322        952      4,421      2,446

  Brokerage fees                       809        691      1,622      1,368

  Securities gains, net              6,490        783      7,047        838

  Loss from prepayment of debt      (6,199)      (791)    (6,681)      (791)

  Other                              1,629      4,662      6,238      7,554

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

    Total fee revenue               12,867     13,905     28,246     25,743

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

    Total revenue                   51,259     61,422    110,056    (60,783)

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



Operating expenses:

  Salaries and employee benefits    24,297     26,436     49,522     51,360

  Communications and equipment       3,211      3,378      6,366      6,722

  Occupancy                          3,539      3,805      7,310      7,879

  Advertising and public

   relations                         1,088      1,317      1,934      2,295

  Postage, printing and supplies       916      1,085      1,895      2,203

  Professional fees                  1,952      2,350      3,927      5,680

  Foreclosed property                1,851      1,891      5,676     66,790

  FDIC assessments and other

   regulatory charges                2,545      3,644      5,055      9,057

  Amortization of intangibles          730        760      1,462      1,522

  Other                              4,181      4,062      8,118     10,491

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

    Total operating expenses        44,310     48,728     91,265    163,999

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

    Net income (loss) before

     income taxes                    6,949     12,694     18,791   (224,782)

Income tax expense                     450        666        764        526

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

    Net income (loss)                6,499     12,028     18,027   (225,308)

Preferred stock dividends and

 discount accretion                  3,032      3,016      6,062      5,794

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

    Net income (loss) available

     to common shareholders      $   3,467  $   9,012  $  11,965  $(231,102)

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



Earnings (loss) per common share

 - Basic                         $     .06  $     .35  $     .21  $  (10.52)

Earnings (loss) per common share

 - Diluted                             .06        .16        .21     (10.52)

Weighted average common shares

 outstanding - Basic                57,840     25,427     57,803     21,965



Weighted average common shares

 outstanding - Diluted              57,840     57,543     57,803     21,965





UNITED COMMUNITY BANKS, INC.

Consolidated Balance Sheet



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



(in thousands, except share and      June 30,    December 31,    June 30,

 per share data)                       2012          2011          2011

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

                                    (unaudited)    (audited)    (unaudited)

ASSETS

  Cash and due from banks          $     50,596  $     53,807  $    163,331

  Interest-bearing deposits in

   banks                                133,857       139,609        41,863

  Federal funds sold, reverse

   repurchase agreements,

   commercial paper and short-term

   investments                          120,000       185,000       174,996

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

    Cash and cash equivalents           304,453       378,416       380,190

  Securities available for sale       1,701,583     1,790,047     1,816,613

  Securities held to maturity

   (fair value $299,971, $343,531

   and $379,231)                        282,750       330,203       371,578

  Mortgage loans held for sale           18,645        23,881        19,406

  Loans, net of unearned income       4,119,235     4,109,614     4,163,447

    Less allowance for loan losses      112,705       114,468       127,638

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

      Loans, net                      4,006,530     3,995,146     4,035,809

  Assets covered by loss sharing

   agreements with the FDIC              65,914        78,145        95,726

  Premises and equipment, net           172,200       175,088       178,208

  Bank owned life insurance              81,265        80,599        80,134

  Accrued interest receivable            20,151        20,693        21,291

  Goodwill and other intangible

   assets                                 6,965         8,428         9,922

  Foreclosed property                    30,421        32,859        47,584

  Other assets                           46,229        69,915        95,834

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

    Total assets                   $  6,737,106  $  6,983,420  $  7,152,295

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

LIABILITIES AND SHAREHOLDERS'

 EQUITY

Liabilities:

  Deposits:

    Demand                         $  1,150,444  $    992,109  $    899,017

    NOW                               1,196,507     1,509,896     1,306,109

    Money market                      1,117,139     1,038,778       989,600

    Savings                             219,077       199,007       197,927

    Time:

      Less than $100,000              1,164,451     1,332,394     1,508,444

      Greater than $100,000             764,343       847,152       981,154

    Brokered                            210,506       178,647       300,964

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

        Total deposits                5,822,467     6,097,983     6,183,215

  Federal funds purchased,

   repurchase agreements, and

   other short-term borrowings           53,656       102,577       103,666

  Federal Home Loan Bank advances       125,125        40,625        40,625

  Long-term debt                        120,265       120,225       150,186

  Unsettled securities purchases              -        10,325        35,634

  Accrued expenses and other

   liabilities                           39,598        36,199        36,368

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

    Total liabilities                 6,161,111     6,407,934     6,549,694

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

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                        177,814       177,092       176,392

    Series D; $1,000 stated value;

     16,613 shares issued and

     outstanding                         16,613        16,613        16,613

  Common stock, $1 par value;

   100,000,000 shares authorized;

   41,726,509, 41,647,100 and

   41,554,874 shares issued and

   outstanding                           41,727        41,647        41,555

  Common stock, non-voting, $1 par

   value; 30,000,000 shares

   authorized; 15,914,209 shares

   issued and outstanding                15,914        15,914        15,914

  Common stock issuable; 94,657,

   93,681 and 83,575 shares               2,893         3,233         3,574

  Capital surplus                     1,056,819     1,054,940     1,052,482

  Accumulated deficit                  (718,896)     (730,861)     (723,378)

  Accumulated other comprehensive

   (loss) income                        (17,106)       (3,309)       19,232

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

    Total shareholders' equity          575,995       575,486       602,601

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

    Total liabilities and

     shareholders' equity          $  6,737,106  $  6,983,420  $  7,152,295

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









UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended June 30,



                                                          2012

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

                                             Average                 Avg.

(dollars in thousands, taxable equivalent)   Balance    Interest     Rate

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

Assets:

Interest-earning assets:

  Loans, net of unearned income (1)(2)     $4,155,619  $   54,296      5.25%

  Taxable securities (3)                    2,121,053      10,800      2.04

  Tax-exempt securities (1)(3)                 24,242         429      7.08

  Federal funds sold and other interest-

   earning assets                             364,099       1,255      1.38

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



    Total interest-earning assets           6,665,013      66,780      4.03

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

Non-interest-earning assets:

  Allowance for loan losses                  (115,955)

  Cash and due from banks                      51,907

  Premises and equipment                      173,792

  Other assets (3)                            218,347

                                           ----------

    Total assets                           $6,993,104

                                           ==========



Liabilities and Shareholders' Equity:

Interest-bearing liabilities:

  Interest-bearing deposits:

    NOW                                    $1,279,686         503       .16

    Money market                            1,132,548         661       .23

    Savings                                   216,175          38       .07

    Time less than $100,000                 1,183,845       2,520       .86

    Time greater than $100,000                778,477       2,063      1.07

    Brokered time deposits                    150,449         490      1.31

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

      Total interest-bearing deposits       4,741,180       6,275       .53

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



    Federal funds purchased and other

     borrowings                                97,134         904      3.74

    Federal Home Loan Bank advances           278,971         390       .56

    Long-term debt                            120,256       2,375      7.94

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

      Total borrowed funds                    496,361       3,669      2.97

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



      Total interest-bearing liabilities    5,237,541       9,944       .76

                                                       ----------

Non-interest-bearing liabilities:

  Non-interest-bearing deposits             1,112,128

  Other liabilities                            60,726

                                           ----------

    Total liabilities                       6,410,395

Shareholders' equity                          582,709

                                           ----------

    Total liabilities and shareholders'

     equity                                $6,993,104

                                           ==========



Net interest revenue                                   $   56,836

                                                       ==========

Net interest-rate spread                                               3.27%

                                                                  =========



Net interest margin (4)                                                3.43%

                                                                  =========



(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 $25.7 million in 2012 and $32.2 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.









UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended June 30,



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

                                                          2011

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

                                             Average                 Avg.

(dollars in thousands, taxable equivalent)   Balance    Interest     Rate

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

Assets:

Interest-earning assets:

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

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

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

  Federal funds sold and other interest-

   earning assets                             583,832       1,021       .70

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



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

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

Non-interest-earning assets:

  Allowance for loan losses                  (139,744)

  Cash and due from banks                     119,801

  Premises and equipment                      178,949

  Other assets (3)                            280,204

                                           ----------

      Total assets                         $7,362,980

                                           ==========



Liabilities and Shareholders' Equity:

Interest-bearing liabilities:

  Interest-bearing deposits:

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

    Money market                              979,432       1,499       .61

    Savings                                   195,946          64       .13

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

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

    Brokered time deposits                    473,161       2,132      1.81

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

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

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



    Federal funds purchased and other

     borrowings                               103,156       1,074      4.18

    Federal Home Loan Bank advances            52,735         570      4.34

    Long-term debt                            150,178       2,747      7.34

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

      Total borrowed funds                    306,069       4,391      5.75

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



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

                                                       ----------

Non-interest-bearing liabilities:

  Non-interest-bearing deposits               882,151

  Other liabilities                            91,353

                                           ----------

      Total liabilities                     6,769,272

Shareholders' equity                          593,708

                                           ----------

      Total liabilities and shareholders'

       equity                              $7,362,980

                                           ==========



Net interest revenue                                   $   58,946

                                                       ==========

Net interest-rate spread                                               3.21%

                                                                  =========



Net interest margin (4)                                                3.41%

                                                                  =========



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

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

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

 federal tax adjusted state income tax rate.

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

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

 sale.

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

 unrealized gains of $25.7 million in 2012 and $32.2 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.









UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Six Months Ended June 30,



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

                                                          2012

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

                                             Average                 Avg.

(dollars in thousands, taxable equivalent)   Balance    Interest     Rate

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

Assets:

Interest-earning assets:

  Loans, net of unearned income (1)(2)     $4,162,030  $  110,138      5.32%

  Taxable securities (3)                    2,124,422      23,554      2.22

  Tax-exempt securities (1)(3)                 24,840         839      6.76

  Federal funds sold and other interest-

   earning assets                             371,044       2,470      1.33

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



      Total interest-earning assets         6,682,336     137,001      4.12

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

Non-interest-earning assets:

  Allowance for loan losses                  (116,879)

  Cash and due from banks                      53,286

  Premises and equipment                      174,321

  Other assets (3)                            226,013

                                           ----------

      Total assets                         $7,019,077

                                           ==========



Liabilities and Shareholders' Equity:

Interest-bearing liabilities:

  Interest-bearing deposits:

    NOW                                    $1,368,900       1,140       .17

    Money market                            1,101,103       1,302       .24

    Savings                                   210,789          75       .07

    Time less than $100,000                 1,227,599       5,546       .91

    Time greater than $100,000                799,821       4,478      1.13

    Brokered time deposits                    155,892       1,208      1.56

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

      Total interest-bearing deposits       4,864,104      13,749       .57

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



    Federal funds purchased and other

     borrowings                                99,696       1,949      3.93

    Federal Home Loan Bank advances           208,672         856       .82

    Long-term debt                            120,246       4,747      7.94

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

      Total borrowed funds                    428,614       7,552      3.54

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



      Total interest-bearing liabilities    5,292,718      21,301       .81

                                                       ----------

Non-interest-bearing liabilities:

  Non-interest-bearing deposits             1,076,358

  Other liabilities                            70,330

                                           ----------

      Total liabilities                     6,439,406

Shareholders' equity                          579,671

                                           ----------

      Total liabilities and shareholders'

       equity                              $7,019,077

                                           ==========



Net interest revenue                                   $  115,700

                                                       ==========

Net interest-rate spread                                               3.31%

                                                                  =========



Net interest margin (4)                                                3.48%

                                                                  =========



(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 $24.7 million in 2012 and $29.7 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.









UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Six Months Ended June 30,



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

                                                          2011

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

                                             Average                 Avg.

(dollars in thousands, taxable equivalent)   Balance    Interest     Rate

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

Assets:

Interest-earning assets:

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

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

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

  Federal funds sold and other interest-

   earning assets                             630,384       2,147       .68

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



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

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

Non-interest-earning assets:

  Allowance for loan losses                  (154,347)

  Cash and due from banks                     127,031

  Premises and equipment                      179,150

  Other assets (3)                            306,495

                                           ----------

      Total assets                         $7,371,086

                                           ==========



Liabilities and Shareholders' Equity:

Interest-bearing liabilities:

  Interest-bearing deposits:

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

    Money market                              954,128       3,527       .75

    Savings                                   191,708         141       .15

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

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

    Brokered time deposits                    585,103       4,262      1.47

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

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

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



    Federal funds purchased and other

     borrowings                               102,132       2,116      4.18

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

    Long-term debt                            150,169       5,527      7.42

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

      Total borrowed funds                    306,224       8,803      5.80

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



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

                                                       ----------

Non-interest-bearing liabilities:

  Non-interest-bearing deposits               861,864

  Other liabilities                            75,083

                                           ----------

      Total liabilities                     6,846,698

Shareholders' equity                          524,388

                                           ----------

      Total liabilities and shareholders'

       equity                              $7,371,086

                                           ==========



Net interest revenue                                   $  115,338

                                                       ==========

Net interest-rate spread                                               3.17%

                                                                  =========



Net interest margin (4)                                                3.36%

                                                                  =========



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

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

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

 federal tax adjusted state income tax rate.

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

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

 sale.

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

 unrealized gains of $24.7 million in 2012 and $29.7 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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