Press Release Details

BLAIRSVILLE, GA, Nov 18, 2008 (MARKET WIRE via COMTEX News Network) -- United Community Banks, Inc. (NASDAQ: UCBI) today announced that the U.S. Treasury Department has given preliminary approval of its $180 million investment in the company and of United's participation in the Capital Purchase Program. United plans to issue $180 million of senior preferred stock to the Treasury, along with warrants to purchase $27 million in common stock. Final closing of the transaction is expected within 30 days and is contingent upon standard closing documents.

"This investment by the Treasury will further strengthen the company's capital position," said Jimmy Tallent, President and Chief Executive Officer. "United's Tier 1 Risk-Based Capital ratio of 8.66 percent at quarter-end was already well above the regulatory requirements of 6 percent for a 'well-capitalized' institution. With this new capital, United's Tier 1 ratio will increase to 11.60 percent. Also, United's Total Risk-Based Capital ratio of 11.40 percent would improve to 14.30 percent, both well in excess of the regulatory requirement of 10 percent for a 'well-capitalized' institution."

"United was already above the well-capitalized levels, but we have been looking for cost-effective opportunities to add to our capital base," added Tallent. "The significant increase in capital will add to an already successful strategy of supporting the growth within our communities through smart, responsible lending to both existing and new customers. It also enables us to consider other strategic opportunities that may arise to expand our franchise."

About United Community Banks, Inc.

Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. United Community Banks has assets of $8.1 billion and operates 27 community banks with 108 banking offices located throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina and east Tennessee. The company specializes in providing personalized community banking services to individuals and small to mid-size businesses. United Community Banks also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United Community Banks common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at the company's web site at www.ucbi.com.

Safe Harbor

This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of some factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled "Forward-Looking Statements" on page 4 of United Community Banks, Inc.'s annual report filed on Form 10-K with the Securities and Exchange Commission.

For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
Email Contact

SOURCE: United Community Banks, Inc.

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