United Community Banks, Inc.
Jan 24, 2013

United Community Banks, Inc. Reports Earnings of $9.3 Million for Fourth Quarter 2012

BLAIRSVILLE, GA -- (Marketwire) -- 01/24/13 -- United Community Banks, Inc. (NASDAQ: UCBI)

United Community Banks, Inc. (NASDAQ: UCBI) today reported net income of $9.3 million, or 11 cents per share, for the fourth quarter of 2012, and net income of $37.9 million, or 44 cents per share, for the year. The results for the fourth quarter and year reflect modest loan growth, improved credit quality, strong core transaction deposit growth, an increase in fee revenue, and lower operating expenses compared with the same periods a year ago.

"We had another positive quarter and a very productive year in rebuilding our core earnings and positioning United for future growth," said Jimmy Tallent, president and chief executive officer. "In the fourth quarter we achieved meaningful improvement in every key measure of credit quality, and we continued to build strong momentum in growing new customer loan and deposit relationships."

Tallent continued, "We grew our loan portfolio by $37 million from the third quarter, for an annualized rate of 4 percent. That was no easy accomplishment in the current business environment. Additionally, our core transaction deposits increased by $75 million, or 10 percent annualized. At the same time we lowered nonperforming assets by 10 percent, to $128 million. This total includes our lowest level of foreclosed properties since 2007, at $18 million. Even more encouraging was the significant drop in net charge-offs to $14.5 million, the lowest level since the second quarter of 2008."

"This was a good way to end a successful year," Tallent stated. "During 2012, we achieved $65 million in net new loan growth and we increased core transaction deposits by $311 million or 11 percent. Continued growth in quality loan and deposit relationships remains a top priority."

The fourth quarter provision for loan losses was $14 million, equal to a year ago and down $1.5 million from the third quarter. Fourth quarter net charge-offs were $14.5 million compared to $20.6 million in the third quarter and $45.6 million in the fourth quarter of 2011.

"The inflow of nonperforming loans in the fourth quarter was $20 million, the lowest quarterly total since the beginning of the economic cycle," Tallent said. "We expect this trend will lead to lower quarterly charge-offs and loan loss provisions during 2013."

Taxable equivalent net interest revenue totaled $56.0 million, down $1.34 million from the third quarter of 2012 and down $3.02 million from the fourth quarter of 2011. "The decrease primarily reflects lower yields on our investment securities and loan portfolios, as well as the overlap of new senior debt issued at the beginning of the fourth quarter that was used to repay subordinated debt that matured late in the fourth quarter," said Tallent.

"The lower yield on our loan portfolio reflects ongoing pricing pressure on new and renewed loans," Tallent continued. "Our investment securities interest decline was due to reinvestment of cash flows at record low rates. We continue to look for reinvestment opportunities with a focus on floating-rate securities to alleviate market and duration risk. Floating-rate securities, which account for 38 percent of the total investment securities portfolio, improve our interest sensitivity position by reducing our exposure to rising interest rates," Tallent continued.

The taxable equivalent net interest margin was down 16 basis points from the third quarter and 7 basis points from a year ago to 3.44 percent. "Five of the 16 basis point linked-quarter margin decline was due to the overlap in the replacement of maturing subordinated debt," stated Tallent. "Another five basis points was due to the scheduled repricing of certain corporate bonds from a fixed to floating rate. These floating rate securities were part of a planned strategy to maintain a neutral to slightly asset-sensitive interest rate position. The balance of the decrease was due to a new loan product offering with a low introductory rate that will reprice in 2013 and continued loan pricing pressures."

Fee revenue was $14.8 million for the fourth quarter, compared to $13.8 million for the third quarter and $12.7 million a year ago. The increase from prior quarters was primarily due to the higher level of mortgage loans closed and related fees. Mortgage refinancing activity continued at a strong pace through the fourth quarter as mortgage rates remained at record low levels. Closed mortgage loans totaled $100 million in the fourth quarter compared with $108 million in the third quarter and $78.8 million in the fourth quarter of 2011. Service charges and fees on deposit accounts were also up from a year ago due to new fees on low balance deposit accounts that became effective in the first quarter of 2012, and to higher debit card interchange fees.

Other fee revenue was down $217,000 from the third quarter of 2012 and $466,000 from the fourth quarter of 2011 to $2.34 million. The decrease was primarily due to lower hedge ineffectiveness gains and to a fourth quarter 2011 gain of $728,000 from the sale of state low-income housing tax credits.

Operating expenses, excluding foreclosed property costs, were $42.1 million for the fourth quarter of 2012 compared to $41.1 million for the third quarter and $41.8 million a year ago. The increase from a year ago was due primarily to a $2.24 million, one-time credit adjustment in the fourth quarter of 2011 related to our retirement plan that reduced salary and employee benefit expense in that period. Excluding the foreclosed property costs and the one-time credit adjustment, quarterly operating expenses were down $1.9 million from a year ago. Reduced staff levels and related costs were the primary drivers of the decrease. United had 164 fewer staff positions in the fourth quarter of 2012 compared to the fourth quarter of 2011.

Foreclosed property costs for the fourth quarter of 2012 were $4.6 million, compared to $3.7 million in the third quarter and $9.3 million a year ago. Fourth quarter 2012 costs included $1.4 million for maintenance and $3.2 million in net losses and write-downs. For the third quarter of 2012, foreclosed property costs included $962,000 in maintenance and $2.7 million in net losses and write-downs. Fourth quarter 2011 foreclosed property costs included $2.4 million in maintenance and $6.9 million in net losses and write-downs.

As of December 31, 2012, capital ratios were as follows: Tier 1 Risk-Based of 14.2 percent; Tier 1 Leverage of 9.7 percent; Total Risk-Based of 15.8 percent; Tier 1 Common Risk-Based of 8.9 percent; and, Tangible Equity-to-Assets of 8.6 percent.

"By every measure, 2012 has been a year of significant improvement for United Community Banks," Tallent said. "Reflecting on all that this banking team has accomplished in restoring credit quality, regaining momentum in new business growth, and improving operating efficiency, I cannot help but look forward with excitement.

"We know that challenges remain as the economy continues to be sluggish and rates are at record lows," Tallent continued. "At the same time we expect credit measures to continue to improve, and this will translate into lower levels of charge-offs and provisioning. We see opportunities to grow our mortgage and advisory services businesses, and will look to expand both. We believe we can grow our loan portfolio and we will accomplish this by continuing to add lenders in key markets, as well as expanding into new markets, like Greenville, South Carolina, where we recently opened a loan production office."

Tallent concluded, "We constantly evaluate and find ways to improve this company -- to make it more productive and efficient while continuing to deliver the best customer service in the industry. Ultimately we are committed to delivering superior financial results on behalf of our shareholders. We are committed, we are up to the challenge, and we look ahead with determination and optimism."

Conference Call

United will hold a conference call today, Thursday, January 24, 2013, 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 86024021. The conference call also will be webcast and can be accessed by selecting 'Calendar of Events' within the Investor Relations section of 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 $6.8 billion and operates 105 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina, east Tennessee and northwest South Carolina. 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 website 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 sections 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 data; Fourth     Third    Second     First    Fourth

 taxable equivalent)       Quarter   Quarter   Quarter   Quarter   Quarter

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

INCOME SUMMARY

Interest revenue           $ 64,450  $ 65,978  $ 66,780  $ 70,221  $ 71,905

Interest expense              8,422     8,607     9,944    11,357    12,855

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

  Net interest revenue       56,028    57,371    56,836    58,864    59,050

Provision for loan losses    14,000    15,500    18,000    15,000    14,000

Fee revenue                  14,761    13,764    12,867    15,379    12,667

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

  Total revenue              56,789    55,635    51,703    59,243    57,717

Operating expenses           46,726    44,783    44,310    46,955    51,080

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

  Income (loss) before

   income taxes              10,063    10,852     7,393    12,288     6,637

Income tax expense

 (benefit)                      802       284       894       760    (3,264)

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

  Net income (loss)           9,261    10,568     6,499    11,528     9,901

Preferred dividends and

 discount accretion           3,045     3,041     3,032     3,030     3,025

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

Net income (loss)

 available to common

 shareholders              $  6,216  $  7,527  $  3,467  $  8,498  $  6,876

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



PERFORMANCE MEASURES

  Per common share:

    Diluted income (loss)  $    .11  $    .13  $    .06  $    .15  $    .12

    Book value                 6.74      6.75      6.61      6.68      6.62

    Tangible book value

     (2)                       6.64      6.64      6.48      6.54      6.47



  Key performance ratios:

    Return on equity

     (1)(3)                    6.03%     7.43%     3.51%     8.78%     7.40%

    Return on assets (3)        .54       .63       .37       .66       .56

    Net interest margin

     (3)                       3.44      3.60      3.43      3.53      3.51

    Efficiency ratio          66.04     62.95     63.84     63.31     71.23

    Equity to assets           8.63      8.75      8.33      8.19      8.28

    Tangible equity to

     assets (2)                8.55      8.66      8.24      8.08      8.16

    Tangible common equity

     to assets (2)             5.67      5.73      5.45      5.33      5.38

    Tangible common equity

     to risk- weighted

     assets (2)                8.33      8.44      8.37      8.21      8.25



ASSET QUALITY *

  Non-performing loans     $109,894  $115,001  $115,340  $129,704  $127,479

  Foreclosed properties      18,264    26,958    30,421    31,887    32,859

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

    Total non-performing

     assets (NPAs)          128,158   141,959   145,761   161,591   160,338

  Allowance for loan

   losses                   107,137   107,642   112,705   113,601   114,468

  Net charge-offs            14,505    20,563    18,896    15,867    45,624

  Allowance for loan

   losses to loans             2.57%     2.60%     2.74%     2.75%     2.79%

  Net charge-offs to

   average loans (3)           1.39      1.99      1.85      1.55      4.39

  NPAs to loans and

   foreclosed properties       3.06      3.41      3.51      3.88      3.87

  NPAs to total assets         1.88      2.12      2.16      2.25      2.30



AVERAGE BALANCES($ in

 millions)

  Loans                    $  4,191  $  4,147  $  4,156  $  4,168  $  4,175

  Investment securities       2,088     1,971     2,145     2,153     2,141

  Earning assets              6,482     6,346     6,665     6,700     6,688

  Total assets                6,778     6,648     6,993     7,045     7,019

  Deposits                    5,873     5,789     5,853     6,028     6,115

  Shareholders' equity          585       582       583       577       581

  Common shares - basic

   (thousands)               57,971    57,880    57,840    57,764    57,646

  Common shares - diluted

   (thousands)               57,971    57,880    57,840    57,764    57,646



AT PERIOD END($ in

 millions)

  Loans *                  $  4,175  $  4,138  $  4,119  $  4,128  $  4,110

  Investment securities       2,079     2,025     1,984     2,202     2,120

  Total assets                6,802     6,699     6,737     7,174     6,983

  Deposits                    5,952     5,823     5,822     6,001     6,098

  Shareholders' equity          585       585       576       580       575

  Common shares

   outstanding (thousands)   57,741    57,710    57,641    57,603    57,561



(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



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

                                      Fourth

(in thousands,      2012      2011    Quarter    For the Twelve       YTD

 except per share --------  --------   2012-     Months Ended        2012-

 data; taxable     Fourth    Fourth     2011   ------------------     2011

 equivalent)       Quarter   Quarter   Change    2012      2011      Change

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

INCOME SUMMARY

Interest revenue  $ 64,450  $ 71,905           $267,429  $ 299,344

Interest expense     8,422    12,855             38,330     65,675

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

    Net interest

     revenue        56,028    59,050      (5)%  229,099    233,669      (2)%

Provision for

 loan losses        14,000    14,000             62,500    251,000

Fee revenue         14,761    12,667       17    56,771     49,908       14

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

    Total revenue   56,789    57,717            223,370     32,577

Operating

 expenses           46,726    51,080       (9)  182,774    261,599      (30)

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

    Income (loss)

     before

     income taxes   10,063     6,637       52    40,596   (229,022)

Income tax

 expense

 (benefit)             802    (3,264)             2,740     (2,276)

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

    Net income

     (loss)          9,261     9,901       (6)   37,856   (226,746)

Preferred

 dividends and

 discount

 accretion           3,045     3,025             12,148     11,838

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

Net income (loss)

 available to

 common

 shareholders     $  6,216  $  6,876      (10) $ 25,708  $(238,584)

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



PERFORMANCE

 MEASURES

  Per common

   share:

    Diluted

     income

     (loss)       $    .11  $    .12       (8) $    .44  $   (5.97)

    Book value        6.74      6.62        2      6.74       6.62        2

    Tangible book

     value (2)        6.64      6.47        3      6.64       6.47        3



  Key performance

   ratios:

    Return on

     equity

     (1)(3)           6.03%     7.40%              6.43%    (93.57)%

    Return on

     assets (3)        .54       .56                .55      (3.15)

    Net interest

     margin (3)       3.44      3.51               3.50       3.44

    Efficiency

     ratio           66.04     71.23              64.02      92.27

    Equity to

     assets           8.63      8.28               8.47       7.75

    Tangible

     equity to

     assets (2)       8.55      8.16               8.38       7.62

    Tangible

     common

     equity to

     assets (2)       5.67      5.38               5.54       3.74

    Tangible

     common

     equity to

     risk-

     weighted

     assets (2)       8.33      8.25               8.33       8.25



ASSET QUALITY *

  Non-performing

   loans          $109,894  $127,479           $109,894  $ 127,479

  Foreclosed

   properties       18,264    32,859             18,264     32,859

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

    Total non-

     performing

     assets

     (NPAs)        128,158   160,338            128,158    160,338

  Allowance for

   loan losses     107,137   114,468            107,137    114,468

  Net charge-offs   14,505    45,624             69,831    311,227

  Allowance for

   loan losses to

   loans              2.57%     2.79%              2.57%      2.79%

  Net charge-offs

   to average

   loans (3)          1.39      4.39               1.69       7.33

  NPAs to loans

   and foreclosed

   properties         3.06      3.87               3.06       3.87

  NPAs to total

   assets             1.88      2.30               1.88       2.30



AVERAGE BALANCES

 ($ in millions)

  Loans           $  4,191  $  4,175        -  $  4,166  $   4,307       (3)

  Investment

   securities        2,088     2,141       (2)    2,089      1,999        5

  Earning assets     6,482     6,688       (3)    6,547      6,785       (4)

  Total assets       6,778     7,019       (3)    6,865      7,189       (5)

  Deposits           5,873     6,115       (4)    5,885      6,275       (6)

  Shareholders'

   equity              585       581        1       582        557        4

  Common shares -

   basic

   (thousands)      57,971    57,646             57,857     39,943

  Common shares -

   diluted

   (thousands)      57,971    57,646             57,857     39,943



AT PERIOD END ($

 in millions)

  Loans *         $  4,175  $  4,110        2  $  4,175  $   4,110        2

  Investment

   securities        2,079     2,120       (2)    2,079      2,120       (2)

  Total assets       6,802     6,983       (3)    6,802      6,983       (3)

  Deposits           5,952     6,098       (2)    5,952      6,098       (2)

  Shareholders'

   equity              585       575        2       585        575        2

  Common shares

   outstanding

   (thousands)      57,741    57,561             57,741     57,561



(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.

Selected Financial Information

For the Years Ended December 31,



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

(in thousands, except

 per share data;

 taxable equivalent)     2012       2011       2010       2009       2008

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

INCOME SUMMARY

Net interest revenue  $ 229,099  $ 233,669  $ 243,052  $ 245,227  $ 238,704

Operating provision

 for loan losses (1)     62,500    251,000    234,750    310,000    184,000

Operating fee revenue

 (2)                     56,771     49,908     48,548     50,964     46,081

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

    Total operating

     revenue (1)(2)     223,370     32,577     56,850    (13,809)   100,785

Operating expenses

 (3)                    182,774    261,599    242,952    217,050    200,335

Loss on sale of

 nonperforming assets         -          -     45,349          -          -

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

    Operating income

     (loss) from

     continuing

     operations

     before taxes        40,596   (229,022)  (231,451)  (230,859)   (99,550)

Operating income

 taxes                    2,740     (2,276)    73,218    (91,754)   (35,651)

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

    Net operating

     income (loss)

     from continuing

     operations          37,856   (226,746)  (304,669)  (139,105)   (63,899)

Gain from

 acquisition, net of

 tax                          -          -          -      7,062          -

Noncash goodwill

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

Severance cost, net

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

Fraud loss provision

 and subsequent

 recovery, net of tax

 benefit                      -          -     11,750          -          -

Net income (loss)

 from discontinued

 operations                   -          -       (101)       513        449

Gain from sale of

 subsidiary, net of

 income taxes and

 selling costs                -          -      1,266          -          -

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

    Net income (loss)    37,856   (226,746)  (502,344)  (228,327)   (63,450)

Preferred dividends

 and discount

 accretion               12,148     11,838     10,316     10,242        724

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

    Net income (loss)

     available to

     common

     shareholders     $  25,708  $(238,584) $(512,660) $(238,569) $ (64,174)

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



PERFORMANCE MEASURES

  Per common share:

    Diluted operating

     earnings (loss)

     from continuing

     operations

     (1)(2)(3)        $     .44  $   (5.97) $  (16.64) $  (12.37) $   (6.82)

    Diluted earnings

     (loss) from

     continuing

     operations             .44      (5.97)    (27.15)    (19.80)     (6.82)

    Diluted earnings

     (loss)                 .44      (5.97)    (27.09)    (19.76)     (6.77)

    Cash dividends

     declared

     (rounded)                -          -          -          -        .87

    Stock dividends                                        3 for      2 for

     declared (6)             -          -          -        130        130

    Book value             6.74       6.62      15.40      41.78      84.75

    Tangible book

     value (5)             6.64       6.47      14.80      30.09      51.93



  Key performance

   ratios:

    Return on equity

     (4)                   6.43    (93.57)%   (85.08)%   (34.40)%    (7.82)%

    Return on assets        .55      (3.15)     (6.61)     (2.76)      (.76)

    Net interest

     margin                3.50       3.44       3.56       3.29       3.18

    Operating

     efficiency ratio

     from continuing

     operations

     (2)(3)               64.02      92.27      98.98      73.97      70.00

    Equity to assets       8.47       7.75      10.77      11.12      10.22

    Tangible equity

     to assets (5)         8.38       7.62       8.88       8.33       6.67

    Tangible common

     equity to assets

     (5)                   5.54       3.74       6.52       6.15       6.57

    Tangible common

     equity to risk-

     weighted assets

     (5)                   8.33       8.25       5.64      10.39       8.34



ASSET QUALITY *

  Non-performing

   loans              $ 109,894  $ 127,479  $ 179,094  $ 264,092  $ 190,723

  Foreclosed

   properties            18,264     32,859    142,208    120,770     59,768

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

    Total non-

     performing

     assets (NPAs)      128,158    160,338    321,302    384,862    250,491

  Allowance for loan

   losses               107,137    114,468    174,695    155,602    122,271

  Operating net

   charge-offs (1)       69,831    311,227    215,657    276,669    151,152

  Allowance for loan

   losses to loans         2.57%      2.79%      3.79%      3.02%      2.14%

  Operating net

   charge-offs to

   average loans (1)       1.69       7.33       4.42       5.03       2.57

  NPAs to loans and

   foreclosed

   properties              3.06       3.87       6.77       7.30       4.35

  NPAs to total

   assets                  1.88       2.30       4.42       4.81       2.92



AVERAGE BALANCES ($

 in millions)

  Loans               $   4,166  $   4,307  $   4,961  $   5,548  $   5,891

  Investment

   securities             2,089      1,999      1,453      1,656      1,489

  Earning assets          6,547      6,785      6,822      7,465      7,504

  Total assets            6,865      7,189      7,605      8,269      8,319

  Deposits                5,885      6,275      6,373      6,713      6,524

  Shareholders'

   equity                   582        557        819        920        850

  Common shares -

   Basic (thousands)     57,857     39,943     18,925     12,075      9,474

  Common shares -

   Diluted

   (thousands)           57,857     39,943     18,925     12,075      9,474



AT YEAR END ($ in

 millions)

  Loans *             $   4,175  $   4,110  $   4,604  $   5,151  $   5,705

  Investment

   securities             2,079      2,120      1,490      1,530      1,617

  Total assets            6,802      6,983      7,276      8,000      8,592

  Deposits                5,952      6,098      6,469      6,628      7,004

  Shareholders'

   equity                   585        575        469        962        989

  Common shares

   outstanding

   (thousands)           57,741     57,561     18,937     18,809      9,602



(1) Excludes the subsequent recovery of $11.8 million in previously

 recognized fraud related loan losses in 2010. (2) Excludes the gain from

 acquisition of $11.4 million, net of income tax expense of $4.3 million in

 2009. (3) Excludes goodwill impairment charges of $211 million and $95

 million in 2010 and 2009, respectively, and severance costs of $2.9

 million, net of income tax benefit of $1.1 million in 2009. (4) Net income

 (loss) available to common shareholders, which is net of preferred stock

 dividends, divided by average realized common equity, which excludes

 accumulated other comprehensive income (loss). (5) Excludes effect of

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

 new shares issued for shares currently held.



* Excludes loans and foreclosed properties covered by loss sharing

 agreements with the FDIC.









UNITED COMMUNITY BANKS, INC.

Non-GAAP Performance Measures Reconciliation

Selected Financial Information



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



                                               2012                   2011

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

(in thousands, except per share  Fourth   Third    Second   First    Fourth

 data; taxable equivalent)      Quarter  Quarter  Quarter  Quarter  Quarter

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



Interest revenue reconciliation

Interest revenue - taxable

 equivalent                     $64,450  $65,978  $66,780  $70,221  $71,905

Taxable equivalent adjustment      (381)    (419)    (444)    (446)    (423)

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

  Interest revenue (GAAP)       $64,069  $65,559  $66,336  $69,775  $71,482

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



Net interest revenue

 reconciliation

Net interest revenue - taxable

 equivalent                     $56,028  $57,371  $56,836  $58,864  $59,050

Taxable equivalent adjustment      (381)    (419)    (444)    (446)    (423)

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

  Net interest revenue (GAAP)   $55,647  $56,952  $56,392  $58,418  $58,627

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



Provision for loan losses

 reconciliation

Operating provision for loan

 losses                         $14,000  $15,500  $18,000  $15,000  $14,000

Partial recovery of special

 fraud-related loan loss              -        -        -        -        -

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

  Provision for loan losses

   (GAAP)                       $14,000  $15,500  $18,000  $15,000  $14,000

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



Fee revenue reconciliation

Operating fee revenue           $14,761  $13,764  $12,867  $15,379  $12,667

Gain from acquisition                 -        -        -        -        -

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

  Fee revenue (GAAP)            $14,761  $13,764  $12,867  $15,379  $12,667

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



Total revenue reconciliation

Total operating revenue         $56,789  $55,635  $51,703  $59,243  $57,717

Taxable equivalent adjustment      (381)    (419)    (444)    (446)    (423)

Gain from acquisition                 -        -        -        -        -

Partial recovery of special

 fraud-related loan loss              -        -        -        -        -

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

  Total revenue (GAAP)          $56,408  $55,216  $51,259  $58,797  $57,294

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



Expense reconciliation

Operating expense               $46,726  $44,783  $44,310  $46,955  $51,080

Noncash goodwill impairment

 charge                               -        -        -        -        -

Severance costs                       -        -        -        -        -

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

  Operating expense (GAAP)      $46,726  $44,783  $44,310  $46,955  $51,080

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



Income (loss) before taxes

 reconciliation

Income (loss) before taxes      $10,063  $10,852  $ 7,393  $12,288  $ 6,637

Taxable equivalent adjustment      (381)    (419)    (444)    (446)    (423)

Gain from acquisition                 -        -        -        -        -

Noncash goodwill impairment

 charge                               -        -        -        -        -

Severance costs                       -        -        -        -        -

Partial recovery of special

 fraud-related loan loss              -        -        -        -        -

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

  Income (loss) before taxes

   (GAAP)                       $ 9,682  $10,433  $ 6,949  $11,842  $ 6,214

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



Income tax (benefit) expense

 reconciliation

Income tax (benefit) expense    $   802  $   284  $   894  $   760  $(3,264)

Taxable equivalent adjustment      (381)    (419)    (444)    (446)    (423)

Gain from acquisition, tax

 expense                              -        -        -        -        -

Severance costs, tax benefit          -        -        -        -        -

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

  Income tax (benefit) expense

   (GAAP)                       $   421  $  (135) $   450  $   314  $(3,687)

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



Diluted earnings (loss) from

 continuing operations per

 common share reconciliation

Diluted operating earnings

 (loss) from continuing

 operations per common share    $   .11  $   .13  $   .06  $   .15  $   .12

Gain from acquisition                 -        -        -        -        -

Noncash goodwill impairment

 charge                               -        -        -        -        -

Severance costs                       -        -        -        -        -

Partial recovery of special

 fraud-related loan loss              -        -        -        -        -

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

  Diluted earnings (loss) from

   continuing operations per

   common share (GAAP)          $   .11  $   .13  $   .06  $   .15  $   .12

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



Book value per common share

 reconciliation

Tangible book value per common

 share                          $  6.64  $  6.64  $  6.48  $  6.54  $  6.47

Effect of goodwill and other

 intangibles                        .10      .11      .13      .14      .15

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

  Book value per common share

   (GAAP)                       $  6.74  $  6.75  $  6.61  $  6.68  $  6.62

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



Efficiency ratio from

 continuing operations

 reconciliation

Operating efficiency ratio from

 continuing operations            66.04%   62.95%   63.84%   63.31%   71.23%

Gain from acquisition                 -        -        -        -        -

Noncash goodwill impairment

 charge                               -        -        -        -        -

Severance costs                       -        -        -        -        -

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

  Efficiency ratio from

   continuing operations (GAAP)   66.04%   62.95%   63.84%   63.31%   71.23%

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



Average equity to assets

 reconciliation

Tangible common equity to

 assets                            5.67%    5.73%    5.45%    5.33%    5.38%

Effect of preferred equity         2.88     2.93     2.79     2.75     2.78

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

  Tangible equity to assets        8.55     8.66     8.24     8.08     8.16

Effect of goodwill and other

 intangibles                        .08      .09      .09      .11      .12

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

  Equity to assets (GAAP)          8.63%    8.75%    8.33%    8.19%    8.28%

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



Tangible common equity to risk-

 weighted assets reconciliation

Tangible common equity to risk-

 weighted assets                   8.33%    8.44%    8.37%    8.21%    8.25%

Effect of other comprehensive

 income                             .51      .36      .28      .10     (.03)

Effect of deferred tax

 limitation                           -        -        -        -        -

Effect of trust preferred          1.15     1.17     1.19     1.15     1.18

Effect of preferred equity         4.24     4.29     4.35     4.23     4.29

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

  Tier I capital ratio

   (Regulatory)                   14.23%   14.26%   14.19%   13.69%   13.69%

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



Net charge-offs reconciliation

Operating net charge-offs       $14,505  $20,563  $18,896  $15,867  $45,624

Subsequent partial recovery of

 fraud-related charge-off             -        -        -        -        -

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

  Net charge-offs (GAAP)        $14,505  $20,563  $18,896  $15,867  $45,624

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



Net charge-offs to average

 loans reconciliation

Operating net charge-offs to

 average loans                     1.39%    1.99%    1.85%    1.55%    4.39%

Subsequent partial recovery of

 fraud-related charge-off             -        -        -        -        -

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

  Net charge-offs to average

   loans (GAAP)                    1.39%    1.99%    1.85%    1.55%    4.39%

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









UNITED COMMUNITY BANKS, INC.

Non-GAAP Performance Measures Reconciliation

Selected Financial Information



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

(in thousands, except                     For the Twelve

 per share                                 Months Ended

 data; taxable        -----------------------------------------------------

 equivalent)             2012       2011       2010       2009       2008

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



Interest revenue

 reconciliation

Interest revenue -

 taxable equivalent   $ 267,429  $ 299,344  $ 343,123  $ 404,961  $ 466,969

Taxable equivalent

 adjustment              (1,690)    (1,707)    (2,001)    (2,132)    (2,261)

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

  Interest revenue

   (GAAP)             $ 265,739  $ 297,637  $ 341,122  $ 402,829  $ 464,708

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



Net interest revenue

 reconciliation

Net interest revenue

 - taxable equivalent $ 229,099  $ 233,669  $ 243,052  $ 245,227  $ 238,704

Taxable equivalent

 adjustment              (1,690)    (1,707)    (2,001)    (2,132)    (2,261)

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

  Net interest

   revenue (GAAP)     $ 227,409  $ 231,962  $ 241,051  $ 243,095  $ 236,443

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



Provision for loan

 losses

 reconciliation

Operating provision

 for loan losses      $  62,500  $ 251,000  $ 234,750  $ 310,000  $ 184,000

Partial recovery of

 special fraud-

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

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

  Provision for loan

   losses (GAAP)      $  62,500  $ 251,000  $ 223,000  $ 310,000  $ 184,000

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



Fee revenue

 reconciliation

Operating fee revenue $  56,771  $  49,908  $  48,548  $  50,964  $  46,081

Gain from acquisition         -          -          -     11,390          -

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

  Fee revenue (GAAP)  $  56,771  $  49,908  $  48,548  $  62,354  $  46,081

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



Total revenue

 reconciliation

Total operating

 revenue              $ 223,370  $  32,577  $  56,850  $ (13,809) $ 100,785

Taxable equivalent

 adjustment              (1,690)    (1,707)    (2,001)    (2,132)    (2,261)

Gain from acquisition         -          -          -     11,390          -

Partial recovery of

 special fraud-

 related loan loss            -          -     11,750          -          -

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

  Total revenue

   (GAAP)             $ 221,680  $  30,870  $  66,599  $  (4,551) $  98,524

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



Expense

 reconciliation

Operating expense     $ 182,774  $ 261,599  $ 288,301  $ 217,050  $ 200,335

Noncash goodwill

 impairment charge            -          -    210,590     95,000          -

Severance costs               -          -          -      2,898          -

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

  Operating expense

   (GAAP)             $ 182,774  $ 261,599  $ 498,891  $ 314,948  $ 200,335

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



Income (loss) before

 taxes reconciliation

Income (loss) before

 taxes                $  40,596  $(229,022) $(231,451) $(230,859) $ (99,550)

Taxable equivalent

 adjustment              (1,690)    (1,707)    (2,001)    (2,132)    (2,261)

Gain from acquisition         -          -          -     11,390          -

Noncash goodwill

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

Severance costs               -          -          -     (2,898)         -

Partial recovery of

 special fraud-

 related loan loss            -          -     11,750          -          -

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

  Income (loss)

   before taxes

   (GAAP)             $  38,906  $(230,729) $(432,292) $(319,499) $(101,811)

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



Income tax (benefit)

 expense

 reconciliation

Income tax (benefit)

 expense              $   2,740  $  (2,276) $  73,218  $ (91,754) $ (35,651)

Taxable equivalent

 adjustment              (1,690)    (1,707)    (2,001)    (2,132)    (2,261)

Gain from

 acquisition, tax

 expense                      -          -          -      4,328          -

Severance costs, tax

 benefit                      -          -          -     (1,101)         -

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

  Income tax

   (benefit) expense

   (GAAP)             $   1,050  $  (3,983) $  71,217  $ (90,659) $ (37,912)

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



Diluted earnings

 (loss) from

 continuing

 operations per

 common share

 reconciliation

Diluted operating

 earnings (loss) from

 continuing

 operations per

 common share         $     .44  $   (5.97) $  (16.64) $  (12.37) $   (6.82)

Gain from acquisition         -          -          -        .58          -

Noncash goodwill

 impairment charge            -          -     (11.13)     (7.86)         -

Severance costs               -          -          -       (.15)         -

Partial recovery of

 special fraud-

 related loan loss            -          -        .62          -          -

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

  Diluted earnings

   (loss) from

   continuing

   operations per

   common share

   (GAAP)             $     .44  $   (5.97) $  (27.15) $  (19.80) $   (6.82)

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



Book value per common

 share reconciliation

Tangible book value

 per common share     $    6.64  $    6.47  $   14.80  $   30.09  $   51.93

Effect of goodwill

 and other

 intangibles                .10        .15        .60      11.69      32.82

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

  Book value per

   common share

   (GAAP)             $    6.74  $    6.62  $   15.40  $   41.78  $   84.75

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



Efficiency ratio from

 continuing

 operations

 reconciliation

Operating efficiency

 ratio from

 continuing

 operations               64.02%     92.27%     98.98%     73.97%     70.00%

Gain from acquisition         -          -          -      (2.77)         -

Noncash goodwill

 impairment charge            -          -      72.29      31.17          -

Severance costs               -          -          -        .95          -

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

  Efficiency ratio

   from continuing

   operations (GAAP)      64.02%     92.27%    171.27%    103.32%     70.00%

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



Average equity to

 assets

 reconciliation

Tangible common

 equity to assets          5.54%      3.74%      6.52%      6.15%      6.57%

Effect of preferred

 equity                    2.84       3.88       2.36       2.18        .10

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

  Tangible equity to

   assets                  8.38       7.62       8.88       8.33       6.67

Effect of goodwill

 and other

 intangibles                .09        .13       1.89       2.79       3.55

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

  Equity to assets

   (GAAP)                  8.47%      7.75%     10.77%     11.12%     10.22%

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



Tangible common

 equity to risk-

 weighted assets

 reconciliation

Tangible common

 equity to risk-

 weighted assets           8.33%      8.25%      5.64%     10.39%      8.34%

Effect of other

 comprehensive income       .51       (.03)      (.42)      (.87)      (.91)

Effect of deferred

 tax limitation               -          -          -      (1.27)         -

Effect of trust

 preferred                 1.15       1.18       1.06        .97        .88

Effect of preferred

 equity                    4.24       4.29       3.53       3.19       2.90

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

  Tier I capital

   ratio (Regulatory)     14.23%     13.69%      9.81%     12.41%     11.21%

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



Net charge-offs

 reconciliation

Operating net charge-

 offs                 $  69,831  $ 311,227  $ 215,657  $ 276,669  $ 151,152

Subsequent partial

 recovery of fraud-

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

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

  Net charge-offs

   (GAAP)             $  69,831  $ 311,227  $ 203,907  $ 276,669  $ 151,152

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



Net charge-offs to

 average loans

 reconciliation

Operating net charge-

 offs to average

 loans                     1.69%      7.33%      4.42%      5.03%      2.57%

Subsequent partial

 recovery of fraud-

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

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

  Net charge-offs to

   average loans

   (GAAP)                  1.69%      7.33%      4.17%      5.03%      2.57%

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









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at

 Period-End (1)



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



                                                   2012                2011

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

                                      Fourth  Third   Second  First   Fourth

(in millions)                        Quarter Quarter Quarter Quarter Quarter

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

LOANS BY CATEGORY

Owner occupied commercial RE         $ 1,131 $ 1,126 $ 1,140 $ 1,137 $ 1,112

Income producing commercial RE           682     693     697     706     710

Commercial & industrial                  458     460     450     440     428

Commercial construction                  155     161     169     167     164

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

  Total commercial                     2,426   2,440   2,456   2,450   2,414

Residential mortgage                     829     833     834     836     835

Home equity lines of credit              385     341     294     295     300

Residential construction                 382     389     409     436     448

Consumer installment                     153     135     126     111     113

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

  Total loans                        $ 4,175 $ 4,138 $ 4,119 $ 4,128 $ 4,110

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



LOANS BY MARKET

North Georgia                        $ 1,364 $ 1,383 $ 1,387 $ 1,408 $ 1,426

Atlanta MSA                            1,288   1,257   1,252   1,239   1,220

North Carolina                           579     579     576     588     597

Coastal Georgia                          400     380     369     366     346

Gainesville MSA                          261     256     259     262     265

East Tennessee                           283     283     276     265     256

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

  Total loans                        $ 4,175 $ 4,138 $ 4,119 $ 4,128 $ 4,110

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



RESIDENTIAL CONSTRUCTION

Dirt loans

  Acquisition & development          $    62 $    71 $    78 $    86 $    88

  Land loans                              46      41      45      57      61

  Lot loans                              193     196     203     204     207

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

    Total                                301     308     326     347     356

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



House loans

  Spec                                    41      44      49      57      59

  Sold                                    40      37      34      32      33

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

    Total                                 81      81      83      89      92

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

Total residential construction       $   382 $   389 $   409 $   436 $   448

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



(1) Excludes total loans of $33.4 million, $37.0 million, $41.5 million,

 $47.2 million and $54.5 million as of December 31, 2012, September 30,

 2012, June 30, 2012, March 31, 2012 and December 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

                                 --------------- -------  Linked  Year over

                                  Fourth  Third   Fourth  Quarter   Year

(in millions)                    Quarter Quarter Quarter  Change    Change

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

LOANS BY CATEGORY

Owner occupied commercial RE     $ 1,131 $ 1,126 $ 1,112 $      5  $     19

Income producing commercial RE       682     693     710      (11)      (28)

Commercial & industrial              458     460     428       (2)       30

Commercial construction              155     161     164       (6)       (9)

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

  Total commercial                 2,426   2,440   2,414      (14)       12

Residential mortgage                 829     833     835       (4)       (6)

Home equity lines of credit          385     341     300       44        85

Residential construction             382     389     448       (7)      (66)

Consumer installment                 153     135     113       18        40

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

  Total loans                    $ 4,175 $ 4,138 $ 4,110       37        65

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



LOANS BY MARKET

North Georgia                    $ 1,364 $ 1,383 $ 1,426      (19)      (62)

Atlanta MSA                        1,288   1,257   1,220       31        68

North Carolina                       579     579     597        -       (18)

Coastal Georgia                      400     380     346       20        54

Gainesville MSA                      261     256     265        5        (4)

East Tennessee                       283     283     256        -        27

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

  Total loans                    $ 4,175 $ 4,138 $ 4,110       37        65

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



RESIDENTIAL CONSTRUCTION

Dirt loans

  Acquisition & development      $    62 $    71 $    88       (9)      (26)

  Land loans                          46      41      61        5       (15)

  Lot loans                          193     196     207       (3)      (14)

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

    Total                            301     308     356       (7)      (55)

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



House loans

  Spec                                41      44      59       (3)      (18)

  Sold                                40      37      33        3         7

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

    Total                             81      81      92        -       (11)

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

Total residential construction   $   382 $   389 $   448       (7)      (66)

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



(1) Excludes total loans of $33.4 million, $37.0 million, $41.5 million,

 $47.2 million and $54.5 million as of December 31, 2012, September 30,

 2012, June 30, 2012, March 31, 2012 and December 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 Year-End (1)



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



(in millions)                     2012     2011     2010     2009     2008

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

LOANS BY CATEGORY

Owner occupied commercial RE    $  1,131 $  1,112 $    980 $    963 $    955

Income producing commercial RE       682      710      781      816      672

Commercial & industrial              458      428      441      390      410

Commercial construction              155      164      297      363      500

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

    Total commercial               2,426    2,414    2,499    2,532    2,537

Residential mortgage                 829      835      944    1,052    1,142

Home equity lines of credit          385      300      335      375      384

Residential construction             382      448      695    1,050    1,479

Consumer / installment               153      113      131      142      163

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

    Total loans                 $  4,175 $  4,110 $  4,604 $  5,151 $  5,705

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





LOANS BY MARKET

North Georgia                   $  1,364 $  1,426 $  1,689 $  1,884 $  2,040

Atlanta MSA                        1,288    1,220    1,310    1,435    1,706

North Carolina                       579      597      702      772      810

Coastal Georgia                      400      346      335      405      464

Gainesville MSA                      261      265      312      390      420

East Tennessee                       283      256      256      265      265

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

  Total loans                   $  4,175 $  4,110 $  4,604 $  5,151 $  5,705

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



(1) Excludes total loans of $33.4 million, $54.5 million, $68.2 million and

 $85.1 million as of December 31, 2012, 2011, 2010 and 2009, respectively,

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

 the acquisition of Southern Community Bank.









UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality(1)



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



                                                 Fourth Quarter 2012

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

                                            Non-

                                         performing  Foreclosed     Total

(in thousands)                              Loans    Properties     NPAs

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

NPAs BY CATEGORY

Owner occupied CRE                       $   12,599  $    4,989  $   17,588

Income producing CRE                          9,549         490      10,039

Commercial & industrial                      31,817           -      31,817

Commercial construction                      23,843       2,204      26,047

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

  Total commercial                           77,808       7,683      85,491

Residential mortgage                         11,151       4,753      15,904

Home equity lines of credit                   1,438           -       1,438

Residential construction                     18,702       5,828      24,530

Consumer installment                            795           -         795

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

  Total NPAs                             $  109,894  $   18,264  $  128,158

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

  Balance as a % of Unpaid Principal           69.5%       39.7%       62.8%



NPAs BY MARKET

North Georgia                            $   69,950  $    8,219  $   78,169

Atlanta MSA                                  18,556       3,442      21,998

North Carolina                               11,014       2,579      13,593

Coastal Georgia                               3,810       1,609       5,419

Gainesville MSA                                 903         556       1,459

East Tennessee                                5,661       1,859       7,520

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

  Total NPAs                             $  109,894  $   18,264  $  128,158

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





NPA ACTIVITY

Beginning Balance                        $  115,001  $   26,958  $  141,959

Loans placed on non-accrual                  20,211           -      20,211

Payments received                            (6,458)          -      (6,458)

Loan charge-offs                            (11,722)          -     (11,722)

Foreclosures                                 (7,138)      7,138           -

Capitalized costs                                 -         201         201

Note / property sales                             -     (12,845)    (12,845)

Write downs                                       -      (1,438)     (1,438)

Net gains (losses) on sales                       -      (1,750)     (1,750)

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

  Ending Balance                         $  109,894  $   18,264  $  128,158

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



(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 2012

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

                                            Non-

                                         performing  Foreclosed     Total

(in thousands)                              Loans    Properties     NPAs

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

NPAs BY CATEGORY

Owner occupied CRE                       $   14,140  $    7,170  $   21,310

Income producing CRE                         11,756       1,597      13,353

Commercial & industrial                      32,678           -      32,678

Commercial construction                      18,590       3,121      21,711

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

  Total commercial                           77,164      11,888      89,052

Residential mortgage                         12,629       6,031      18,660

Home equity lines of credit                   1,367           -       1,367

Residential construction                     22,935       9,039      31,974

Consumer installment                            906           -         906

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

  Total NPAs                             $  115,001  $   26,958  $  141,959

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

  Balance as a % of Unpaid Principal           68.8%       36.4%       58.8%



NPAs BY MARKET

North Georgia                            $   72,211  $   14,582  $   86,793

Atlanta MSA                                  21,349       5,926      27,275

North Carolina                                9,622       2,771      12,393

Coastal Georgia                               6,822         864       7,686

Gainesville MSA                                 840       1,328       2,168

East Tennessee                                4,157       1,487       5,644

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

  Total NPAs                             $  115,001  $   26,958  $  141,959

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





NPA ACTIVITY

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

Loans placed on non-accrual                  30,535           -      30,535

Payments received                            (3,646)          -      (3,646)

Loan charge-offs                            (19,227)          -     (19,227)

Foreclosures                                 (8,001)      8,001           -

Capitalized costs                                 -         102         102

Note / property sales                             -      (8,822)     (8,822)

Write downs                                       -      (2,394)     (2,394)

Net gains (losses) on sales                       -        (350)       (350)

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

  Ending Balance                         $  115,001  $   26,958  $  141,959

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



(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 2012

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

                                            Non-

                                         performing  Foreclosed     Total

(in thousands)                              Loans    Properties     NPAs

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

NPAs BY CATEGORY

Owner occupied CRE                       $    9,399  $    7,914  $   17,313

Income producing CRE                          9,716       2,672      12,388

Commercial & industrial                      34,982           -      34,982

Commercial construction                      18,175       2,732      20,907

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

  Total commercial                           72,272      13,318      85,590

Residential mortgage                         15,272       5,591      20,863

Home equity lines of credit                   1,359           -       1,359

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)



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

                      Fourth Quarter     Third Quarter      Second Quarter

                           2012               2012               2012

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

                                Net                Net                Net

                              Charge-            Charge-            Charge-

                              Offs to            Offs to            Offs to

                        Net   Average     Net    Average     Net    Average

(in thousands)        Charge-  Loans    Charge-   Loans    Charge-   Loans

                       Offs     (2)      Offs      (2)      Offs      (2)

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

NET CHARGE-OFFS BY

 CATEGORY

Owner occupied CRE   $  4,997    1.76% $  6,192     3.56% $  1,305      .46%

Income producing CRE    1,153     .67     1,982      .70     3,044     1.75

Commercial &

 industrial               135     .12      (259)    (.23)      775      .70

Commercial

 construction           1,688    4.25     3,190     7.74        88      .21

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

  Total commercial      7,973    1.30    11,105     1.81     5,212      .86

Residential mortgage    3,254    1.55     2,846     1.40     1,971      .70

Home equity lines of

 credit                   445     .49       681      .80     1,891     2.60

Residential

 construction           2,435    2.52     5,676     5.69     9,563     9.14

Consumer installment      398    1.10       255      .78       259      .88

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

  Total              $ 14,505    1.39  $ 20,563     1.99  $ 18,896     1.85

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





NET CHARGE-OFFS BY

 MARKET

North Georgia        $  4,474    1.26% $  6,451     1.84% $ 12,474     3.58%

Atlanta MSA             3,977    1.27     9,344     3.02     2,307      .75

North Carolina          2,032    1.39     1,674     1.15     3,634     2.52

Coastal Georgia           574     .60     2,486     2.67       211      .23

Gainesville MSA         1,331    2.04       294      .45      (187)    (.29)

East Tennessee          2,117    2.98       314      .45       457      .68

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

  Total              $ 14,505    1.39  $ 20,563     1.99  $ 18,896     1.85

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



(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   Twelve Months Ended

                                      December 31,         December 31,

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

(in thousands, except per share

 data)                               2012      2011       2012       2011

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



Interest revenue:

  Loans, including fees           $  53,335 $  57,697  $ 217,140  $ 239,056

  Investment securities,

   including tax exempt of $219,

   $255, $956 and $1,009              9,841    13,296     44,613     56,260

  Federal funds sold, reverse

   repurchase agreements,

   commercial paper and deposits

   in banks                             893       489      3,986      2,321

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

    Total interest revenue           64,069    71,482    265,739    297,637

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



Interest expense:

  Deposits:

    NOW                                 462       807      2,049      3,998

    Money market                        617       800      2,518      5,456

    Savings                              38        41        150        234

    Time                              3,674     7,338     19,518     39,151

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

      Total deposit interest

       expense                        4,791     8,986     24,235     48,839

Federal funds purchased,

 repurchase agreements and other

 short-term borrowings                  524     1,053      2,987      4,250

Federal Home Loan Bank advances          25       441        907      2,042

Long-term debt                        3,082     2,375     10,201     10,544

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

    Total interest expense            8,422    12,855     38,330     65,675

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

    Net interest revenue             55,647    58,627    227,409    231,962

Provision for loan losses            14,000    14,000     62,500    251,000

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

    Net interest revenue after

     provision for loan losses       41,647    44,627    164,909    (19,038)

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



Fee revenue:

  Service charges and fees            8,375     7,248     31,670     29,110

  Mortgage loan and other related

   fees                               3,262     1,825     10,483      5,419

  Brokerage fees                        751       782      3,082      2,986

  Securities gains, net                  31         4      7,078        842

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

  Other                               2,342     2,808     11,139     12,342

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

    Total fee revenue                14,761    12,667     56,771     49,908

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

    Total revenue                    56,408    57,294    221,680     30,870

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



Operating expenses:

  Salaries and employee benefits     23,586    23,473     96,026    100,095

  Communications and equipment        3,320     3,129     12,940     13,135

  Occupancy                           3,455     3,972     14,304     15,645

  Advertising and public

   relations                            987       944      3,855      4,291

  Postage, printing and supplies      1,050     1,017      3,899      4,256

  Professional fees                   2,685     1,996      8,792      9,727

  Foreclosed property                 4,611     9,302     13,993     78,905

  FDIC assessments and other

   regulatory charges                 2,505     2,599     10,097     14,259

  Amortization of intangibles           727       746      2,917      3,016

  Other                               3,800     3,902     15,951     18,270

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

    Total operating expenses         46,726    51,080    182,774    261,599

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

    Net income (loss) before

     income taxes                     9,682     6,214     38,906   (230,729)

Income tax (benefit) expense            421    (3,687)     1,050     (3,983)

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

    Net income (loss)                 9,261     9,901     37,856   (226,746)

Preferred stock dividends and

 discount accretion                   3,045     3,025     12,148     11,838

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

    Net income (loss) available

     to common shareholders       $   6,216 $   6,876  $  25,708  $(238,584)

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



Earnings (loss) per common share

 - Basic                          $     .11 $     .12  $     .44  $   (5.97)

Earnings (loss) per common share

 - Diluted                              .11       .12        .44      (5.97)

Weighted average common shares

 outstanding - Basic                 57,971    57,646     57,857     39,943

Weighted average common shares

 outstanding - Diluted               57,971    57,646     57,857     39,943









UNITED COMMUNITY BANKS, INC.

Consolidated Balance Sheet



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

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

 data)                                              2012           2011

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

                                                (unaudited)     (audited)

ASSETS

  Cash and due from banks                      $      66,536  $      53,807

  Interest-bearing deposits in banks                 124,613        139,609

  Federal funds sold, reverse repurchase

   agreements, securities lending, commercial

   paper and short-term investments                   60,000        185,000

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

    Cash and cash equivalents                        251,149        378,416

  Securities available for sale                    1,834,593      1,790,047

  Securities held to maturity (fair value

   $261,131 and $343,531)                            244,184        330,203

  Mortgage loans held for sale                        28,821         23,881

  Loans, net of unearned income                    4,175,008      4,109,614

    Less allowance for loan losses                  (107,137)      (114,468)

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

      Loans, net                                   4,067,871      3,995,146

  Assets covered by loss sharing agreements

   with the FDIC                                      47,467         78,145

  Premises and equipment, net                        168,920        175,088

  Bank owned life insurance                           81,867         80,599

  Accrued interest receivable                         18,659         20,693

  Goodwill and other intangible assets                 5,510          8,428

  Foreclosed property                                 18,264         32,859

  Other assets                                        34,954         69,915

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

    Total assets                               $   6,802,259  $   6,983,420

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

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

  Deposits:

    Demand                                     $   1,252,605  $     992,109

    NOW                                            1,316,453      1,509,896

    Money market                                   1,149,912      1,038,778

    Savings                                          227,308        199,007

    Time:

      Less than $100,000                           1,055,271      1,332,394

      Greater than $100,000                          705,558        847,152

    Brokered                                         245,033        178,647

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

      Total deposits                               5,952,140      6,097,983

  Federal funds purchased, repurchase

   agreements, and other short-term borrowings        52,574        102,577

  Federal Home Loan Bank advances                     40,125         40,625

  Long-term debt                                     124,805        120,225

  Unsettled securities purchases                           -         10,325

  Accrued expenses and other liabilities              47,210         36,199

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

    Total liabilities                              6,216,854      6,407,934

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

Shareholders' equity:

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

   shares authorized;

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

     issued and outstanding                              217            217

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

     shares issued and outstanding                   178,557        177,092

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

     shares issued and outstanding                    16,613         16,613

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

   shares authorized; 42,423,870 and

   41,647,100 shares issued and outstanding           42,424         41,647

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

   30,000,000 shares authorized; 15,316,794

   and 15,914,209 shares issued and

   outstanding                                        15,317         15,914

  Common stock issuable; 133,238 and 93,681

   shares                                              3,119          3,233

  Capital surplus                                  1,057,951      1,054,940

  Accumulated deficit                               (705,153)      (730,861)

  Accumulated other comprehensive loss               (23,640)        (3,309)

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

    Total shareholders' equity                       585,405        575,486

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

    Total liabilities and shareholders' equity $   6,802,259  $   6,983,420

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










UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended December 31,



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

                                  2012                       2011

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

(dollars in thousands,   Average            Avg.    Average            Avg.

 taxable equivalent)     Balance   Interest Rate    Balance   Interest Rate

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

Assets:

Interest-earning

 assets:

  Loans, net of

   unearned income

   (1)(2)              $4,190,725  $ 53,366 5.07% $4,175,320  $ 57,773 5.49%

  Taxable securities

   (3)                  2,065,311     9,622 1.86   2,114,069    13,041 2.47

  Tax-exempt

   securities (1)(3)       22,483       358 6.37      27,224       417 6.13

  Federal funds sold

   and other interest-

   earning assets         203,090     1,104 2.17     371,606       674  .73

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



      Total interest-

       earning assets   6,481,609    64,450 3.96   6,688,219    71,905 4.27

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

Non-interest-earning

 assets:

  Allowance for loan

   losses                (112,846)                  (145,559)

  Cash and due from

   banks                   54,714                     54,485

  Premises and

   equipment              169,967                    176,182

  Other assets (3)        184,398                    245,664

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

      Total assets     $6,777,842                 $7,018,991

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



Liabilities and

 Shareholders' Equity:

Interest-bearing

 liabilities:

  Interest-bearing

   deposits:

    NOW                $1,261,796       462  .15  $1,451,581       807  .22

    Money market        1,200,701       617  .20   1,041,375       800  .30

    Savings               224,624        38  .07     198,541        41  .08

    Time less than

     $100,000           1,082,761     1,982  .73   1,358,367     3,668 1.07

    Time greater than

     $100,000             715,902     1,673  .93     875,434     2,867 1.30

    Brokered time

     deposits             135,708        19  .06     180,933       803 1.76

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

      Total interest-

       bearing

       deposits         4,621,492     4,791  .41   5,106,231     8,986  .70

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



    Federal funds

     purchased and

     other borrowings      67,403       524 3.09     102,776     1,053 4.06

    Federal Home Loan

     Bank advances         39,092        25  .25      40,625       441 4.31

    Long-term debt        149,564     3,082 8.20     120,217     2,375 7.84

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

      Total borrowed

       funds              256,059     3,631 5.64     263,618     3,869 5.82

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



      Total interest-

       bearing

       liabilities      4,877,551     8,422  .69   5,369,849    12,855  .95

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

Non-interest-bearing

 liabilities:

  Non-interest-bearing

   deposits             1,251,327                  1,008,327

  Other liabilities        63,785                     59,908

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

      Total

       liabilities      6,192,663                  6,438,084

Shareholders' equity      585,179                    580,907

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

      Total

       liabilities and

       shareholders'

       equity          $6,777,842                 $7,018,991

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



Net interest revenue               $ 56,028                   $ 59,050

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

Net interest-rate

 spread                                     3.27%                      3.32%

                                            ====                       ====



Net interest margin

 (4)                                        3.44%                      3.51%

                                            ====                       ====



(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 $22.2 million in 2012 and $31.3 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 Twelve Months Ended December 31,



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

                                  2012                       2011

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

(dollars in thousands,   Average            Avg.    Average            Avg.

 taxable equivalent)     Balance   Interest Rate    Balance   Interest Rate

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

Assets:

Interest-earning

 assets:

  Loans, net of

   unearned income

   (1)(2)              $4,165,520  $217,467 5.22% $4,307,111  $239,195 5.55%

  Taxable securities

   (3)                  2,065,162    43,657 2.11   1,973,678    55,251 2.80

  Tax-exempt

   securities (1)(3)       23,759     1,565 6.59      25,693     1,651 6.43

  Federal funds sold

   and other interest-

   earning assets         292,857     4,740 1.62     478,403     3,247  .68

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



      Total interest-

       earning assets   6,547,298   267,429 4.08   6,784,885   299,344 4.41

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

Non-interest-earning

 assets:

  Allowance for loan

   losses                (114,647)                  (145,656)

  Cash and due from

   banks                   53,247                     90,212

  Premises and

   equipment              172,544                    178,061

  Other assets (3)        206,609                    281,233

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

      Total assets     $6,865,051                 $7,188,735

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



Liabilities and

 Shareholders' Equity:

Interest-bearing

 liabilities:

  Interest-bearing

   deposits:

    NOW                $1,293,510     2,049  .16  $1,348,493     3,998  .30

    Money market        1,140,354     2,518  .22     993,871     5,456  .55

    Savings               216,880       150  .07     195,468       234  .12

    Time less than

     $100,000           1,170,202     9,788  .84   1,471,596    18,648 1.27

    Time greater than

     $100,000             766,411     8,027 1.05     948,659    14,347 1.51

    Brokered time

     deposits             155,902     1,703 1.09     401,393     6,156 1.53

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

      Total interest-

       bearing

       deposits         4,743,259    24,235  .51   5,359,480    48,839  .91

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



    Federal funds

     purchased and

     other borrowings      80,593     2,987 3.71     102,727     4,250 4.14

    Federal Home Loan

     Bank advances        124,771       907  .73      47,220     2,042 4.32

    Long-term debt        127,623    10,201 7.99     139,666    10,544 7.55

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

      Total borrowed

       funds              332,987    14,095 4.23     289,613    16,836 5.81

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



      Total interest-

       bearing

       liabilities      5,076,246    38,330  .76   5,649,093    65,675 1.16

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

Non-interest-bearing

 liabilities:

  Non-interest-bearing

   deposits             1,142,236                    915,649

  Other liabilities        64,986                     66,809

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

      Total

       liabilities      6,283,468                  6,631,551

Shareholders' equity      581,583                    557,184

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

      Total

       liabilities and

       shareholders'

       equity          $6,865,051                 $7,188,735

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



Net interest revenue               $229,099                   $233,669

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

Net interest-rate

 spread                                     3.32%                      3.25%

                                            ====                       ====



Net interest margin

 (4)                                        3.50%                      3.44%

                                            ====                       ====



(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 $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.






For more information:

Rex S. Schuette

Chief Financial Officer

(706) 781-2266

Email Contact



Source: United Community Banks, Inc.

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