SEC Filing | United Community Banks, Inc.

View:

Download DOC

Download PDF

Download XLS

t72400_8k.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):

January 19, 2012

United Community Banks, Inc.

(Exact name of registrant as specified in its charter)

Georgia	No. 001-35095	No. 58-180-7304
(State or other jurisdiction of	(Commission File Number)	(IRS Employer
incorporation)		Identification No.)

125 Highway 515 East, P.O. Box 398

Blairsville, Georgia 30512

(Address of principal executive offices)

Registrant's telephone number, including area code:

(706) 781-2265

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c))

Item 2.02	Results of Operations and Financial Condition.

	On January 25, 2012, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the quarter and year ended December 31, 2011 (the “News Release”). The News Release, including financial schedules, is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference. In connection with issuing the News Release, on January 26, 2012 at 11:00 a.m. EST, the Registrant intends to hold a conference call/webcast to discuss the News Release. In addition to the News Release, during the conference call the Registrant intends to discuss certain financial information contained in the December 31, 2011 Investor Presentation (the “Investor Presentation”), which will be posted to the Registrant’s website at www.ucbi.com. The Investor Presentation is attached as Exhibit 99.2 to this Current Report on Form 8-K and incorporated herein by reference. The presentation of the Registrant’s financial results includes operating performance measures and core earnings measures, which are measures of performance determined by methods other than in accordance with generally accepted accounting principles, or GAAP. Management included non-GAAP operating performance and core earnings measures because it believes they are useful for evaluating the Registrant’s operations and performance over periods of time, and uses operating performance and core earnings measures in managing and evaluating the Registrant’s business and intends to refer to them in discussions about the Registrant’s operations and performance. Operating performance measures for the fourth quarter of 2010 exclude the effects of an $11.75 million pre-tax partial recovery of a 2007 fraud loss and third quarter 2010 operating performance measures exclude the effects of a $210.6 million non-cash goodwill impairment charge. These items have been excluded from operating performance measures because management believes the items are non-recurring in nature and do not reflect overall trends in the Registrant’s earnings. Additionally, core earnings measures exclude credit related costs such as the provision for loan losses, certain expenses and charges related to the Registrant’s 2011 asset disposition plans in the first quarter of 2011, the loss from the sale of nonperforming assets to Fletcher International, Ltd. in the second quarter of 2010 and foreclosed property expense, securities gains and losses, income taxes and other items of a non-recurring nature. Core earnings are useful in evaluating the underlying earnings performance trends of the Registrant. Management believes these non-GAAP performance measures may provide users of the Registrant’s financial information with a meaningful measure for assessing the Registrant’s financial results and comparing those financial results to prior periods. Operating performance and core earnings measures should be viewed in addition to, and not as an alternative or substitute for, the Registrant’s performance measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Item 5.02	Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Arrangements of Certain Officers.

	On January 19, 2012, Peter E. Raskind resigned as a director of the Registrant and the Registrant’s wholly-owned subsidiary, United Community Bank (the “bank”), so he could pursue another opportunity as a director of a large financial institution. On that same date, the Registrant’s board of directors appointed Clifford V. Brokaw, Managing Director of Corsair Capital LLC and a director of Torus Insurance Holdings, to serve as a director of the Registrant following regulatory approval and the bank effective immediately. Mr. Brokaw was appointed to replace Mr. Raskind under the terms of an investment agreement the Registrant entered into with Corsair Georgia, L.P. as part of the Registrant’s previously announced $380 million private placement.

Item 9.01	Financial Statements and Exhibits
	(a) Financial statements: None (b) Pro forma financial information: None (c) Exhibits: 99.1 Press Release, dated January 25, 2012 99.2 Investor Presentation, Fourth Quarter 2011

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

UNITED COMMUNITY BANKS, INC.

By: /s/ Rex S. Schuette

Rex S. Schuette

Executive Vice President and

Chief Financial Officer

Date: January 25, 2012

ex99-1.htm

Exhibit 99.1

For Immediate Release

For more information:

Rex S. Schuette

Chief Financial Officer

(706) 781-2266

Rex_Schuette@ucbi.com

UNITED COMMUNITY BANKS, INC. REPORTS

EARNINGS OF $9.9 MILLION FOR FOURTH QUARTER 2011

·	Net income of $9.9 million, or 12 cents per share

·	Loans stable with prior quarter, first time since March 2008

·	Core transaction deposits up $266 million, or 10 percent, for the year

·	Nonperforming assets decline to $160 million, or 2.3 percent of assets

·	New director appointed

BLAIRSVILLE, GA – January 25, 2012 – United Community Banks, Inc. (NASDAQ: UCBI) today reported net income of $9.9 million, or 12 cents per share, for the fourth quarter of 2011. The fourth quarter results included, among other items, a higher level of foreclosure costs reflecting an increase in sales activities, as well as the positive impact of a $3.5 million reversal of a previously established reserve related to the settlement of a state tax dispute.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Conference Call

United will hold a conference call today, Thursday, January 26, 2012, at 11 a.m. ET to discuss the contents of this news release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 41622107. The conference call also will be webcast and can be accessed by selecting ‘Calendar of Events’ within the Investor Relations section of the United’s website at www.ucbi.com.

About United Community Banks, Inc.

Headquartered in Blairsville, United Community Banks, Inc. is the third-largest bank holding company in Georgia. United has assets of $7.0 billion and operates 27 community banks with 106 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina and east Tennessee. United specializes in providing personalized community banking services to individuals and small to mid-size businesses and also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United’s common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at United’s web site at www.ucbi.com.

Safe Harbor

This news release contains forward-looking statements, as defined by federal securities laws, including statements about United’s financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United’s filings with the Securities and Exchange Commission including its 2010 Annual Report on Form 10-Kand Quarterly Reports on Form 10-Q for the periods ended June 30, 2011 and September 30, 2011 under the sections entitled “Forward-Looking Statements” and “Risk Factors” and in United’s Current Reports on Form 8-K. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.

# # #

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Selected Financial Information

																Fourth
	2011												2010			Quarter			For the Twelve						YTD
(in thousands, except per share	Fourth			Third			Second			First			Fourth			2011-2010			Months Ended						2011-2010
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			Change			2011			2010			Change
INCOME SUMMARY
Interest revenue	$	71,905		$	74,543		$	76,931		$	75,965		$	81,215					$	299,344		$	343,123
Interest expense		12,855			15,262			17,985			19,573			21,083						65,675			100,071
Net interest revenue		59,050			59,281			58,946			56,392			60,132			(2	) %		233,669			243,052			(4	) %
Operating provision for loan losses (1)		14,000			36,000			11,000			190,000			47,750						251,000			234,750
Fee revenue (2)		12,667			11,498			13,905			11,838			12,442			2			49,908			48,548			3
Total operating revenue (1)(2)		57,717			34,779			61,851			(121,770	)		24,824						32,577			56,850
Operating expenses (3)		51,080			46,520			48,728			115,271			64,918			(21	)		261,599			242,952			8
Loss on sale of nonperforming assets		-			-			-			-			-						-			45,349
Operating income (loss) from continuing operations before income taxes		6,637			(11,741	)		13,123			(237,041	)		(40,094	)					(229,022	)		(231,451	)
Operating income tax expense (benefit)		(3,264	)		(402	)		1,095			295			144,760						(2,276	)		73,218
Net operating income (loss) from continuing operations (1)(2)(3)		9,901			(11,339	)		12,028			(237,336	)		(184,854	)					(226,746	)		(304,669	)
Noncash goodwill impairment charges		-			-			-			-			-						-			(210,590	)
Partial reversal of fraud loss provision		-			-			-			-			11,750						-			11,750
Loss from discontinued operations		-			-			-			-			-						-			(101	)
Gain from sale of subsidiary		-			-			-			-			-						-			1,266
Net income (loss)		9,901			(11,339	)		12,028			(237,336	)		(173,104	)					(226,746	)		(502,344	)
Preferred dividends and discount accretion		3,025			3,019			3,016			2,778			2,586						11,838			10,316
Net income (loss) available to common shareholders	$	6,876		$	(14,358	)	$	9,012		$	(240,114	)	$	(175,690	)				$	(238,584	)	$	(512,660	)

PERFORMANCE MEASURES
Per common share:
Diluted operating income (loss) from continuing operations (1)(2)(3)	$	.12		$	(.25	)	$	.16		$	(13.00	)	$	(9.87	)				$	(5.97	)	$	(16.64	)
Diluted income (loss) from continuing operations		.12			(.25	)		.16			(13.00	)		(9.25	)					(5.97	)		(27.15	)
Diluted income (loss)		.12			(.25	)		.16			(13.00	)		(9.25	)					(5.97	)		(27.09	)
Book value		6.62			6.77			7.11			2.20			15.40			(57	)		6.62			15.40			(57	)
Tangible book value (5)		6.47			6.61			6.94			1.69			14.80			(56	)		6.47			14.80			(56	)

Key performance ratios:
Return on equity (4)(6)		7.40	%		(15.06	) %		42.60	%		(526.54	) %		(196.10	)%					(93.57	) %		(85.08	)%
Return on assets (6)		.56			(.64	)		.66			(13.04	)		(9.47	)					(3.15	)		(6.61	)
Net interest margin (6)		3.51			3.55			3.41			3.30			3.58						3.44			3.56
Operating efficiency ratio from continuing operations (2)(3)		71.23			65.73			66.88			169.08			89.45						92.27			98.98
Equity to assets		8.28			8.55			8.06			6.15			7.80						7.75			10.77
Tangible equity to assets (5)		8.16			8.42			7.93			6.01			7.64						7.62			8.88
Tangible common equity to assets (5)		5.38			5.65			1.37			2.70			5.22						3.74			6.52
Tangible common equity to risk-weighted assets (5)		8.22			8.52			8.69			.75			5.64						8.22			5.64

ASSET QUALITY *
Non-performing loans	$	127,479		$	144,484		$	71,065		$	83,769		$	179,094					$	127,479		$	179,094
Foreclosed properties		32,859			44,263			47,584			54,378			142,208						32,859			142,208
Total non-performing assets (NPAs)		160,338			188,747			118,649			138,147			321,302						160,338			321,302
Allowance for loan losses		114,468			146,092			127,638			133,121			174,695						114,468			174,695
Operating net charge-offs (1)		45,624			17,546			16,483			231,574			47,668						311,227			215,657
Allowance for loan losses to loans		2.79	%		3.55	%		3.07	%		3.17	%		3.79	%					2.79	%		3.79	%
Operating net charge-offs to average loans (1)(6)		4.39			1.68			1.58			20.71			4.03						7.33			4.42
NPAs to loans and foreclosed properties		3.87			4.54			2.82			3.25			6.77						3.87			6.77
NPAs to total assets		2.30			2.74			1.66			1.79			4.42						2.30			4.42

AVERAGE BALANCES ($ in millions)
Loans	$	4,175		$	4,194		$	4,266		$	4,599		$	4,768			(12	)	$	4,307		$	4,961			(13	)
Investment securities		2,141			2,150			2,074			1,625			1,354			58			1,999			1,453			38
Earning assets		6,688			6,630			6,924			6,902			6,680			-			6,785			6,822			(1	)
Total assets		7,019			7,000			7,363			7,379			7,254			(3	)		7,189			7,605			(5	)
Deposits		6,115			6,061			6,372			6,560			6,294			(3	)		6,275			6,373			(2	)
Shareholders’ equity		581			598			594			454			566			3			557			819			(32	)
Common shares - basic (thousands)		57,646			57,599			25,427			18,466			18,984						39,943			18,925
Common shares - diluted (thousands)		57,646			57,599			57,543			18,466			18,984						39,943			18,925

AT PERIOD END ($ in millions)
Loans *	$	4,110		$	4,110		$	4,163		$	4,194		$	4,604			(11	)	$	4,110		$	4,604			(11	)
Investment securities		2,120			2,123			2,188			1,884			1,490			42			2,120			1,490			42
Total assets		6,983			6,894			7,152			7,709			7,276			(4	)		6,983			7,276			(4	)
Deposits		6,098			6,005			6,183			6,598			6,469			(6	)		6,098			6,469			(6	)
Shareholders’ equity		575			583			603			586			469			23			575			469			23
Common shares outstanding (thousands)		57,561			57,510			57,469			20,903			18,937						57,561			18,937

(1) Excludes the partial reversal of a previously established provision for fraud-related loan losses of $11.8 million in the fourth quarter of 2010. Operating charge-offs also exclude the $11.8 million related partial recovery of the previously charged off amount. (2) Excludes revenue generated by discontinued operations in the first quarter of 2010. (3) Excludes the goodwill impairment charge of $211 million in the third quarter of 2010 and expenses relating to discontinued operations in the first quarter of 2010. (4) Net loss available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (5) Excludes effect of acquisition related intangibles and associated amortization. (6) Annualized.

* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.

UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Years Ended December 31,

(in thousands, except per share data;
taxable equivalent)	2011			2010			2009			2008			2007
INCOME SUMMARY
Net interest revenue	$	233,669		$	243,052		$	245,227		$	238,704		$	274,483
Operating provision for loan losses (1)		251,000			234,750			310,000			184,000			37,600
Operating fee revenue (2)		49,908			48,548			50,964			46,081			53,701
Total operating revenue (1)(2)		32,577			56,850			(13,809	)		100,785			290,584
Operating expenses (3)		261,599			242,952			217,050			200,335			181,730
Loss on sale of nonperforming assets		-			45,349			-			-			-
Operating (loss) income from continuing operations before taxes		(229,022	)		(231,451	)		(230,859	)		(99,550	)		108,854
Operating income taxes		(2,276	)		73,218			(91,754	)		(35,651	)		40,266
Net operating (loss) income from continuing operations		(226,746	)		(304,669	)		(139,105	)		(63,899	)		68,588
Gain from acquisition, net of tax		-			-			7,062			-			-
Noncash goodwill impairment charges		-			(210,590	)		(95,000	)		-			-
Severance cost, net of tax benefit		-			-			(1,797	)		-			-
Fraud loss provision and subsequent recovery, net of tax benefit		-			11,750			-			-			(10,998	)
Net (loss) income from discontinued operations		-			(101	)		513			449			403
Gain from sale of subsidiary, net of income taxes and selling costs		-			1,266			-			-			-
Net (loss) income		(226,746	)		(502,344	)		(228,327	)		(63,450	)		57,993
Preferred dividends and discount accretion		11,838			10,316			10,242			724			18
Net (loss) income available to common shareholders	$	(238,584	)	$	(512,660	)	$	(238,569	)	$	(64,174	)	$	57,975

PERFORMANCE MEASURES
Per common share:
Diluted operating (loss) earnings from continuing operations (1)(2)(3)	$	(5.97	)	$	(16.64	)	$	(12.37	)	$	(6.82	)	$	7.36
Diluted (loss) earnings from continuing operations		(5.97	)		(27.15	)		(19.80	)		(6.82	)		6.18
Diluted (loss) earnings		(5.97	)		(27.09	)		(19.76	)		(6.77	)		6.22
Cash dividends declared (rounded)		-			-			-			.87			1.73
Stock dividends declared (6)		-			-		3 for 130			2 for 130				-
Book value		6.62			15.40			41.78			84.75			88.52
Tangible book value (5)		6.47			14.80			30.09			51.93			54.62

Key performance ratios:
Return on equity (4)		(93.57	) %		(85.08	) %		(34.40	) %		(7.82	) %		7.79	%
Return on assets		(3.15	)		(6.61	)		(2.76	)		(.76	)		.75
Net interest margin		3.44			3.56			3.29			3.18			3.88
Operating efficiency ratio from continuing operations (2)(3)		92.27			98.98			73.97			70.00			55.53
Equity to assets		7.75			10.77			11.12			10.22			9.61
Tangible equity to assets (5)		7.62			8.88			8.33			6.67			6.63
Tangible common equity to assets (5)		3.74			6.52			6.15			6.57			6.63
Tangible common equity to risk-weighted assets (5)		8.22			5.64			10.39			8.34			8.21

ASSET QUALITY *
Non-performing loans	$	127,479		$	179,094		$	264,092		$	190,723		$	28,219
Foreclosed properties		32,859			142,208			120,770			59,768			18,039
Total non-performing assets (NPAs)		160,338			321,302			384,862			250,491			46,258
Allowance for loan losses		114,468			174,695			155,602			122,271			89,423
Operating net charge-offs (1)		311,227			215,657			276,669			151,152			21,834
Allowance for loan losses to loans		2.79	%		3.79	%		3.02	%		2.14	%		1.51	%
Operating net charge-offs to average loans (1)		7.33			4.42			5.03			2.57			.38
NPAs to loans and foreclosed properties		3.87			6.77			7.30			4.35			.78
NPAs to total assets		2.30			4.42			4.81			2.92			.56

AVERAGE BALANCES ($ in millions)
Loans	$	4,307		$	4,961		$	5,548		$	5,891		$	5,735
Investment securities		1,999			1,453			1,656			1,489			1,278
Earning assets		6,785			6,822			7,465			7,504			7,071
Total assets		7,189			7,605			8,269			8,319			7,731
Deposits		6,275			6,373			6,713			6,524			6,029
Shareholders’ equity		557			819			920			850			743
Common shares - Basic (thousands)		39,943			18,925			12,075			9,474			9,190
Common shares - Diluted (thousands)		39,943			18,925			12,075			9,474			9,319

AT YEAR END ($ in millions)
Loans *	$	4,110		$	4,604		$	5,151		$	5,705		$	5,929
Investment securities		2,120			1,490			1,530			1,617			1,357
Total assets		6,983			7,276			8,000			8,592			8,207
Deposits		6,098			6,469			6,628			7,004			6,076
Shareholders’ equity		575			469			962			989			832
Common shares outstanding (thousands)		57,561			18,937			18,809			9,602			9,381

(1) Excludes pre-tax provision for fraud-related loan losses and related charge-offs of $18 million, net of income tax benefit of $7 million in 2007 and subsequent recovery of $11.8 million in 2010. (2) Excludes the gain from acquisition of $11.4 million, net of income tax expense of $4.3 million in 2009. (3) Excludes the goodwill impairment charges of $211 million and $95 million in 2010 and 2009, respectively, and severance costs of $2.9 million, net of income tax benefit of $1.1 million in 2009. (4) Net (loss) income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (5) Excludes effect of acquisition related intangibles and associated amortization. (6) Number of new shares issued for shares currently held.

* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.

UNITED COMMUNITY BANKS, INC.

Operating Earnings to GAAP Earnings Reconciliation

Selected Financial Information


	2011												2010
(in thousands, except per share	Fourth			Third			Second			First			Fourth			For the Twelve Months Ended
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			2011			2010			2009			2008			2007

Interest revenue reconciliation
Interest revenue - taxable equivalent	$	71,905		$	74,543		$	76,931		$	75,965		$	81,215		$	299,344		$	343,123		$	404,961		$	466,969		$	550,917
Taxable equivalent adjustment		(423	)		(420	)		(429	)		(435	)		(497	)		(1,707	)		(2,001	)		(2,132	)		(2,261	)		(1,881	)
Interest revenue (GAAP)	$	71,482		$	74,123		$	76,502		$	75,530		$	80,718		$	297,637		$	341,122		$	402,829		$	464,708		$	549,036

Net interest revenue reconciliation
Net interest revenue - taxable equivalent	$	59,050		$	59,281		$	58,946		$	56,392		$	60,132		$	233,669		$	243,052		$	245,227		$	238,704		$	274,483
Taxable equivalent adjustment		(423	)		(420	)		(429	)		(435	)		(497	)		(1,707	)		(2,001	)		(2,132	)		(2,261	)		(1,881	)
Net interest revenue (GAAP)	$	58,627		$	58,861		$	58,517		$	55,957		$	59,635		$	231,962		$	241,051		$	243,095		$	236,443		$	272,602

Provision for loan losses reconciliation
Operating provision for loan losses	$	14,000		$	36,000		$	11,000		$	190,000		$	47,750		$	251,000		$	234,750		$	310,000		$	184,000		$	37,600
Provision for special fraud-related loan loss and partial recovery		-			-			-			-			(11,750	)		-			(11,750	)		-			-			18,000
Provision for loan losses (GAAP)	$	14,000		$	36,000		$	11,000		$	190,000		$	36,000		$	251,000		$	223,000		$	310,000		$	184,000		$	55,600

Fee revenue reconciliation
Operating fee revenue	$	12,667		$	11,498		$	13,905		$	11,838		$	12,442		$	49,908		$	48,548		$	50,964		$	46,081		$	53,701
Gain from acquisition		-			-			-			-			-			-			-			11,390			-			-
Fee revenue (GAAP)	$	12,667		$	11,498		$	13,905		$	11,838		$	12,442		$	49,908		$	48,548		$	62,354		$	46,081		$	53,701
Total revenue reconciliation
Total operating revenue	$	57,717		$	34,779		$	61,851		$	(121,770	)	$	24,824		$	32,577		$	56,850		$	(13,809	)	$	100,785		$	290,584
Taxable equivalent adjustment		(423	)		(420	)		(429	)		(435	)		(497	)		(1,707	)		(2,001	)		(2,132	)		(2,261	)		(1,881	)
Gain from acquisition		-			-			-			-			-			-			-			11,390			-			-
Provision for special fraud-related loan loss and partial recovery		-			-			-			-			11,750			-			11,750			-			-			(18,000	)
Total revenue (GAAP)	$	57,294		$	34,359		$	61,422		$	(122,205	)	$	36,077		$	30,870		$	66,599		$	(4,551	)	$	98,524		$	270,703

Expense reconciliation
Operating expense	$	51,080		$	46,520		$	48,728		$	115,271		$	64,918		$	261,599		$	288,301		$	217,050		$	200,335		$	181,730
Noncash goodwill impairment charge		-			-			-			-			-			-			210,590			95,000			-			-
Severance costs		-			-			-			-			-			-			-			2,898			-			-
Operating expense (GAAP)	$	51,080		$	46,520		$	48,728		$	115,271		$	64,918		$	261,599		$	498,891		$	314,948		$	200,335		$	181,730

Income (loss) from continuing operations before taxes reconciliation
Operating income (loss) from continuing operations before taxes	$	6,637		$	(11,741	)	$	13,123		$	(237,041	)	$	(40,094	)	$	(229,022	)	$	(231,451	)	$	(230,859	)	$	(99,550	)	$	108,854
Taxable equivalent adjustment		(423	)		(420	)		(429	)		(435	)		(497	)		(1,707	)		(2,001	)		(2,132	)		(2,261	)		(1,881	)
Gain from acquisition		-			-			-			-			-			-			-			11,390			-			-
Noncash goodwill impairment charge		-			-			-			-			-			-			(210,590	)		(95,000	)		-			-
Severance costs		-			-			-			-			-			-			-			(2,898	)		-			-
Provision for special fraud-related loan loss and partial recovery		-			-			-			-			11,750			-			11,750			-			-			(18,000	)
Income (loss) from continuing operations before taxes (GAAP)	$	6,214		$	(12,161	)	$	12,694		$	(237,476	)	$	(28,841	)	$	(230,729	)	$	(432,292	)	$	(319,499	)	$	(101,811	)	$	88,973

Income tax (benefit) expense reconciliation
Operating income tax (benefit) expense	$	(3,264	)	$	(402	)	$	1,095		$	295		$	144,760		$	(2,276	)	$	73,218		$	(91,754	)	$	(35,651	)	$	40,266
Taxable equivalent adjustment		(423	)		(420	)		(429	)		(435	)		(497	)		(1,707	)		(2,001	)		(2,132	)		(2,261	)		(1,881	)
Gain from acquisition, tax expense		-			-			-			-			-			-			-			4,328			-			-
Severance costs, tax benefit		-			-			-			-			-			-			-			(1,101	)		-			-
Provision for special fraud-related loan loss tax benefit		-			-			-			-			-			-			-			-			-			(7,002	)
Income tax (benefit) expense (GAAP)	$	(3,687	)	$	(822	)	$	666		$	(140	)	$	144,263		$	(3,983	)	$	71,217		$	(90,659	)	$	(37,912	)	$	31,383

Diluted earnings (loss) from continuing operations per common share reconciliation
Diluted operating earnings (loss) from continuing operations per common share	$	.12		$	(.25	)	$	.16		$	(13.00	)	$	(9.87	)	$	(5.97	)	$	(16.64	)	$	(12.37	)	$	(6.82	)	$	7.36
Gain from acquisition		-			-			-			-			-			-			-			.58			-			-
Noncash goodwill impairment charge		-			-			-			-			-			-			(11.13	)		(7.86	)		-			-
Severance costs		-			-			-			-			-			-			-			(.15	)		-			-
Provision for special fraud-related loan loss and partial recovery		-			-			-			-			.62			-			.62			-			-			(1.18	)
Diluted earnings (loss) from continuing operations per common share (GAAP)	$	.12		$	(.25	)	$	.16		$	(13.00	)	$	(9.25	)	$	(5.97	)	$	(27.15	)	$	(19.80	)	$	(6.82	)	$	6.18

Book value per common share reconciliation
Tangible book value per common share	$	6.47		$	6.61		$	6.94		$	1.69		$	14.80		$	6.47		$	14.80		$	30.09		$	51.93		$	54.62
Effect of goodwill and other intangibles		.15			.16			.17			.51			.60			.15			.60			11.69			32.82			33.90
Book value per common share (GAAP)	$	6.62		$	6.77		$	7.11		$	2.20		$	15.40		$	6.62		$	15.40		$	41.78		$	84.75		$	88.52

Efficiency ratio from continuing operations reconciliation
Operating efficiency ratio from continuing operations		71.23	%		65.73	%		66.88	%		169.08	%		89.45	%		92.27	%		98.98	%		73.97	%		70.00	%		55.53	%
Gain from acquisition		-			-			-			-			-			-			-			(2.77	)		-			-
Noncash goodwill impairment charge		-			-			-			-			-			-			72.29			31.17			-			-
Severance costs		-			-			-			-			-			-			-			.95			-			-
Efficiency ratio from continuing operations (GAAP)		71.23	%		65.73	%		66.88	%		169.08	%		89.45	%		92.27	%		171.27	%		103.32	%		70.00	%		55.53	%

Average equity to assets reconciliation
Tangible common equity to assets		5.38	%		5.65	%		1.37	%		2.70	%		5.22	%		3.74	%		6.52	%		6.15	%		6.57	%		6.63	%
Effect of preferred equity		2.78			2.77			6.56			3.31			2.42			3.88			2.36			2.18			.10			-
Tangible equity to assets		8.16			8.42			7.93			6.01			7.64			7.62			8.88			8.33			6.67			6.63
Effect of goodwill and other intangibles		.12			.13			.13			.14			.16			.13			1.89			2.79			3.55			2.98
Equity to assets (GAAP)		8.28	%		8.55	%		8.06	%		6.15	%		7.80	%		7.75	%		10.77	%		11.12	%		10.22	%		9.61	%

Actual tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets		8.22	%		8.52	%		8.69	%		.75	%		5.64	%		8.22	%		5.64	%		10.39	%		8.34	%		8.21	%
Effect of other comprehensive income		(.03	)		(.29	)		(.42	)		(.32	)		(.42	)		(.03	)		(.42	)		(.87	)		(.91	)		(.23	)
Effect of deferred tax limitation		-			-			-			-			-			-			-			(1.27	)		-			-
Effect of trust preferred		1.18			1.19			1.15			1.13			1.06			1.18			1.06			.97			.88			.65
Effect of preferred equity		4.27			4.33			4.20			5.87			3.53			4.27			3.53			3.19			2.90			-
Tier I capital ratio (Regulatory)		13.64	%		13.75	%		13.62	%		7.43	%		9.81	%		13.64	%		9.81	%		12.41	%		11.21	%		8.63	%

Net charge-offs reconciliation
Operating net charge-offs	$	45,624		$	17,546		$	16,483		$	231,574		$	47,668		$	311,227		$	215,657		$	276,669		$	151,152		$	21,834
Subsequent partial recovery of fraud-related charge-off		-			-			-			-			(11,750	)		-			(11,750	)		-			-			18,000
Net charge-offs (GAAP)	$	45,624		$	17,546		$	16,483		$	231,574		$	35,918		$	311,227		$	203,907		$	276,669		$	151,152		$	39,834

Net charge-offs to average loans reconciliation
Operating net charge-offs to average loans		4.39	%		1.68	%		1.58	%		20.71	%		4.03	%		7.33	%		4.42	%		5.03	%		2.57	%		.38	%
Subsequent partial recovery of fraud-related charge-off		-			-			-			-			(1.00	)		-			(.25	)		-			-			.31
Net charge-offs to average loans (GAAP)		4.39	%		1.68	%		1.58	%		20.71	%		3.03	%		7.33	%		4.17	%		5.03	%		2.57	%		.69	%

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Period-End (1)


	2011								2010		Linked			Year over
	Fourth		Third		Second		First		Fourth		Quarter			Year
(in millions)	Quarter		Quarter		Quarter		Quarter		Quarter		Change			Change
LOANS BY CATEGORY
Commercial (sec.by RE)	$	1,822	$	1,771	$	1,742	$	1,692	$	1,761	$	51		$	61
Commercial construction		164		169		195		213		297		(5	)		(133	)
Commercial & industrial		428		429		428		431		441		(1	)		(13	)
Total commercial		2,414		2,369		2,365		2,336		2,499		45			(85	)
Residential construction		448		474		502		550		695		(26	)		(247	)
Residential mortgage		1,135		1,150		1,177		1,187		1,279		(15	)		(144	)
Consumer / installment		113		117		119		121		131		(4	)		(18	)
Total loans	$	4,110	$	4,110	$	4,163	$	4,194	$	4,604		-			(494	)

LOANS BY MARKET
Atlanta MSA	$	1,220	$	1,192	$	1,188	$	1,179	$	1,310		28			(90	)
Gainesville MSA		265		272		275		282		312		(7	)		(47	)
North Georgia		1,426		1,478		1,500		1,531		1,689		(52	)		(263	)
Western North Carolina		597		607		626		640		702		(10	)		(105	)
Coastal Georgia		346		316		325		312		335		30			11
East Tennessee		256		245		249		250		256		11			-
Total loans	$	4,110	$	4,110	$	4,163	$	4,194	$	4,604		-			(494	)

RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development	$	88	$	97	$	105	$	116	$	174		(9	)		(86	)
Land loans		61		60		62		69		99		1			(38	)
Lot loans		207		216		218		228		275		(9	)		(68	)
Total		356		373		385		413		548		(17	)		(192	)

House loans
Spec		59		64		74		88		97		(5	)		(38	)
Sold		33		37		43		49		50		(4	)		(17	)
Total		92		101		117		137		147		(9	)		(55	)
Total residential construction	$	448	$	474	$	502	$	550	$	695		(26	)		(247	)

RESIDENTIAL CONSTRUCTION - ATLANTA MSA
Dirt loans
Acquisition & development	$	17	$	19	$	20	$	22	$	30		(2	)		(13	)
Land loans		14		15		16		19		23		(1	)		(9	)
Lot loans		22		22		22		24		32		-			(10	)
Total		53		56		58		65		85		(3	)		(32	)

House loans
Spec		27		28		30		34		38		(1	)		(11	)
Sold		6		8		9		11		10		(2	)		(4	)
Total		33		36		39		45		48		(3	)		(15	)
Total residential construction	$	86	$	92	$	97	$	110	$	133		(6	)		(47	)

(1) Excludes total loans of $54.5 million, $57.8 million, $70.8 million, $63.3 million and $68.2 million as of December 31, 2011, September 30, 2011, June 30, 2011, March 31, 2011 and December 31, 2010, respectively, that are covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Year-End (1)

(in millions)	2011		2010		2009		2008		2007
LOANS BY CATEGORY
Commercial (sec. by RE)	$	1,822	$	1,761	$	1,779	$	1,627	$	1,476
Commercial construction		164		297		363		500		527
Commercial & industrial		428		441		390		410		418
Total commercial		2,414		2,499		2,532		2,537		2,421
Residential construction		448		695		1,050		1,479		1,829
Residential mortgage		1,135		1,279		1,427		1,526		1,502
Consumer / installment		113		131		142		163		177
Total loans	$	4,110	$	4,604	$	5,151	$	5,705	$	5,929

LOANS BY MARKET
Atlanta MSA	$	1,220	$	1,310	$	1,435	$	1,706	$	2,002
Gainesville MSA		265		312		390		420		399
North Georgia		1,426		1,689		1,884		2,040		2,060
Western North Carolina		597		702		772		810		806
Coastal Georgia		346		335		405		464		416
East Tennessee		256		256		265		265		246
Total loans	$	4,110	$	4,604	$	5,151	$	5,705	$	5,929

(1) Excludes total loans of $54.5 million, $68.2 million and $85.1 million as of December 31, 2011, 2010 and 2009, respectively, that are covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality (1)

	Fourth Quarter 2011									Third Quarter 2011									Second Quarter 2011
(in thousands)	Non-performing Loans			Foreclosed Properties			Total NPAs			Non-performing Loans			Foreclosed Properties			Total NPAs			Non-performing Loans			Foreclosed Properties			Total NPAs
NPAs BY CATEGORY
Commercial (sec.by RE)	$	27,322		$	9,745		$	37,067		$	21,998		$	8,880		$	30,878		$	17,764		$	6,796		$	24,560
Commercial construction		16,655			3,336			19,991			11,370			5,862			17,232			2,782			6,764			9,546
Commercial & industrial		34,613			-			34,613			53,009			-			53,009			1,998			-			1,998
Total commercial		78,590			13,081			91,671			86,377			14,742			101,119			22,544			13,560			36,104
Residential construction		25,523			12,851			38,374			34,472			21,561			56,033			22,643			24,968			47,611
Residential mortgage		22,358			6,927			29,285			22,671			7,960			30,631			24,809			9,056			33,865
Consumer / installment		1,008			-			1,008			964			-			964			1,069			-			1,069
Total NPAs	$	127,479		$	32,859		$	160,338		$	144,484		$	44,263		$	188,747		$	71,065		$	47,584		$	118,649
Balance as a % of
Unpaid Principal		71.3	%		35.9	%		59.3	%		77.8	%		33.4	%		59.3	%		64.5	%		32.6	%		46.3	%

NPAs BY MARKET
Atlanta MSA	$	14,480		$	6,169		$	20,649		$	13,350		$	12,971		$	26,321		$	14,700		$	11,239		$	25,939
Gainesville MSA		2,069			3,760			5,829			5,311			2,495			7,806			4,505			3,174			7,679
North Georgia		88,600			15,136			103,736			105,078			17,467			122,545			28,117			21,278			49,395
Western North Carolina		15,100			5,365			20,465			13,243			7,941			21,184			15,153			8,953			24,106
Coastal Georgia		5,248			1,620			6,868			5,600			2,354			7,954			5,357			2,564			7,921
East Tennessee		1,982			809			2,791			1,902			1,035			2,937			3,233			376			3,609
Total NPAs	$	127,479		$	32,859		$	160,338		$	144,484		$	44,263		$	188,747		$	71,065		$	47,584		$	118,649

NPA ACTIVITY
Beginning Balance	$	144,484		$	44,263		$	188,747		$	71,065		$	47,584		$	118,649		$	83,769		$	54,378		$	138,147
Loans placed on non-accrual		45,675			-			45,675			103,365			-			103,365			35,911			-			35,911
Payments received		(1,884	)		-			(1,884	)		(3,995	)		-			(3,995	)		(7,702	)		-			(7,702	)
Loan charge-offs		(44,757	)		-			(44,757	)		(15,335	)		-			(15,335	)		(18,888	)		-			(18,888	)
Foreclosures		(16,039	)		16,039			-			(10,616	)		10,616			-			(22,025	)		22,025			-
Capitalized costs		-			141			141			-			818			818			-			20			20
Note / property sales		-			(20,651	)		(20,651	)		-			(13,787	)		(13,787	)		-			(28,939	)		(28,939	)
Write downs		-			(3,893	)		(3,893	)		-			(1,772	)		(1,772	)		-			(3,118	)		(3,118	)
Net gains (losses) on sales		-			(3,040	)		(3,040	)		-			804			804			-			3,218			3,218
Ending Balance	$	127,479		$	32,859		$	160,338		$	144,484		$	44,263		$	188,747		$	71,065		$	47,584		$	118,649

	Fourth Quarter 2011					Third Quarter 2011					Second Quarter 2011 (2)
(in thousands)	Net Charge-Offs		Net Charge- Offs to Average Loans (3)			Net Charge-Offs		Net Charge- Offs to Average Loans (3)			Net Charge-Offs		Net Charge- Offs to Average Loans (3)
NET CHARGE-OFFS BY CATEGORY
Commercial (sec.by RE)	$	4,962		1.09	%	$	2,192		.50	%	$	3,259		.76	%
Commercial construction		3,318		7.88			1,625		3.54			869		1.70
Commercial & industrial		18,940		17.47			420		.39			523		.49
Total commercial		27,220		4.51			4,237		.71			4,651		.79
Residential construction		12,090		10.36			6,381		5.19			6,629		5.04
Residential mortgage		5,887		2.04			6,110		2.09			4,589		1.55
Consumer / installment		427		1.47			818		2.75			614		2.04
Total	$	45,624		4.39		$	17,546		1.68		$	16,483		1.58

NET CHARGE-OFFS BY MARKET
Atlanta MSA	$	4,195		1.37	%	$	2,813		.94	%	$	2,920		.99	%
Gainesville MSA		2,572		3.84			1,804		2.64			2,318		3.36
North Georgia		34,970		9.46			8,124		2.16			6,575		1.72
Western North Carolina		3,180		2.10			3,608		2.31			3,522		2.21
Coastal Georgia		335		.41			709		.88			815		1.02
East Tennessee		372		.59			488		.78			333		.54
Total	$	45,624		4.39		$	17,546		1.68		$	16,483		1.58

(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.

(2) Includes charge-offs on loans related to United’s previously announced asset disposition plan. Such charge-offs severely distorted charge off rates for the first and second quarters of 2011. A separate schedule has been included in this earnings release presenting the components of net charge-offs by loan category and geographic market for the first and second quarters of 2011.

(3) Annualized.

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Net Charge-Off Summary (1)


	Second Quarter 2011							First Quarter 2011						First Six Months 2011
(in thousands)	Other		Problem Asset Disposition Plan			Total		Other		Problem Asset Disposition Plan		Total		Other		Problem Asset Disposition Plan		Total
BY CATEGORY
Commercial (sec. by RE)	$	4,972	$	(1,713	)	$	3,259	$	2,842	$	45,765	$	48,607	$	7,814	$	44,052	$	51,866
Commercial construction		2,201		(1,332	)		869		1,146		48,569		49,715		3,347		47,237		50,584
Commercial & industrial		639		(116	)		523		513		3,527		4,040		1,152		3,411		4,563
Total commercial		7,812		(3,161	)		4,651		4,501		97,861		102,362		12,313		94,700		107,013
Residential construction		9,471		(2,842	)		6,629		10,643		81,495		92,138		20,114		78,653		98,767
Residential mortgage		5,844		(1,255	)		4,589		4,989		31,394		36,383		10,833		30,139		40,972
Consumer / installment		625		(11	)		614		383		308		691		1,008		297		1,305
Total	$	23,752	$	(7,269	)	$	16,483	$	20,516	$	211,058	$	231,574	$	44,268	$	203,789	$	248,057
BY MARKET
Atlanta MSA	$	4,875	$	(1,955	)	$	2,920	$	3,296	$	53,193	$	56,489	$	8,171	$	51,238	$	59,409
Gainesville MSA		2,576		(258	)		2,318		954		7,662		8,616		3,530		7,404		10,934
North Georgia		10,360		(3,785	)		6,575		8,544		114,761		123,305		18,904		110,976		129,880
Western North Carolina		4,263		(741	)		3,522		6,749		19,698		26,447		11,012		18,957		29,969
Coastal Georgia		1,206		(391	)		815		341		11,662		12,003		1,547		11,271		12,818
East Tennessee		472		(139	)		333		632		4,082		4,714		1,104		3,943		5,047
Total	$	23,752	$	(7,269	)	$	16,483	$	20,516	$	211,058	$	231,574	$	44,268	$	203,789	$	248,057

(1) This schedule presents net charge-offs by loan type and geographic market separated between those charge offs related to United’s first quarter 2011 Problem Asset Disposition Plan including losses on loans sold in the bulk loan sale transaction that closed on April 18, 2011 and all other charge-offs. The charge-offs on the bulk loan sale recognized in the first quarter were estimated based on indicative bids from prospective buyers. Actual losses were less than estimated resulting in an adjustment to the loss in the second quarter.

UNITED COMMUNITY BANKS, INC.

Consolidated Statement of Operations (Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
(in thousands, except per share data)	2011			2010			2011			2010

Interest revenue:
Loans, including fees	$	57,697		$	66,659		$	239,056		$	277,904
Investment securities, including tax exempt of $255, $251, $1,009 and $1,137		13,296			13,215			56,260			59,958
Federal funds sold, commercial paper and deposits in banks		489			844			2,321			3,260
Total interest revenue		71,482			80,718			297,637			341,122

Interest expense:
Deposits:
NOW		807			1,662			3,998			6,966
Money market		800			2,036			5,456			7,552
Savings		41			81			234			331
Time		7,338			12,868			39,151			66,883
Total deposit interest expense		8,986			16,647			48,839			81,732
Federal funds purchased, repurchase agreements and other short-term borrowings		1,053			1,073			4,250			4,235
Federal Home Loan Bank advances		441			608			2,042			3,355
Long-term debt		2,375			2,755			10,544			10,749
Total interest expense		12,855			21,083			65,675			100,071
Net interest revenue		58,627			59,635			231,962			241,051
Provision for loan losses		14,000			36,000			251,000			223,000
Net interest revenue after provision for loan losses		44,627			23,635			(19,038	)		18,051

Fee revenue:
Service charges and fees		7,248			7,039			29,110			30,127
Mortgage loan and other related fees		1,825			1,868			5,419			7,019
Brokerage fees		782			778			2,986			2,662
Securities gains, net		4			-			842			2,552
Loss from prepayment of debt		-			-			(791	)		(2,233	)
Other		2,808			2,757			12,342			8,421
Total fee revenue		12,667			12,442			49,908			48,548
Total revenue		57,294			36,077			30,870			66,599

Operating expenses:
Salaries and employee benefits		23,473			23,777			100,095			96,618
Communications and equipment		3,129			3,377			13,135			13,781
Occupancy		3,972			4,024			15,645			15,394
Advertising and public relations		944			1,102			4,291			4,625
Postage, printing and supplies		1,017			1,063			4,256			4,072
Professional fees		1,996			3,016			9,727			9,254
Foreclosed property		9,302			20,602			78,905			65,707
FDIC assessments and other regulatory charges		2,599			3,299			14,259			13,747
Amortization of intangibles		746			771			3,016			3,160
Other		3,902			3,887			18,270			16,594
Goodwill impairment		-			-			-			210,590
Loss on sale of nonperforming assets		-			-			-			45,349
Total operating expenses		51,080			64,918			261,599			498,891
Loss from continuing operations before income taxes		6,214			(28,841	)		(230,729	)		(432,292	)
Income tax benefit		(3,687	)		144,263			(3,983	)		71,217
Net loss from continuing operations		9,901			(173,104	)		(226,746	)		(503,509	)
Loss from discontinued operations, net of income taxes		-			-			-			(101	)
Gain from sale of subsidiary, net of income taxes and selling costs		-			-			-			1,266
Net loss		9,901			(173,104	)		(226,746	)		(502,344	)
Preferred stock dividends and discount accretion		3,025			2,586			11,838			10,316
Net loss available to common shareholders	$	6,876		$	(175,690	)	$	(238,584	)	$	(512,660	)

Loss from continuing operations per common share - Basic	$	.12		$	(9.25	)	$	(5.97	)	$	(27.15	)
Loss from continuing operations per common share - Diluted		.12			(9.25	)		(5.97	)		(27.15	)
Loss per common share - Basic		.12			(9.25	)		(5.97	)		(27.09	)
Loss per common share - Diluted		.12			(9.25	)		(5.97	)		(27.09	)
Weighted average common shares outstanding - Basic		57,646			18,984			39,943			18,925
Weighted average common shares outstanding - Diluted		57,646			18,984			39,943			18,925

UNITED COMMUNITY BANKS, INC.

Consolidated Balance Sheet

	December 31,			December 31,
(in thousands, except share and per share data)	2011			2010
	(unaudited)			(audited)
ASSETS
Cash and due from banks	$	53,807		$	95,994
Interest-bearing deposits in banks		139,609			111,901
Federal funds sold, reverse repurchase agreements, commercial paper and short-term investments		185,000			441,562
Cash and cash equivalents		378,416			649,457
Securities available for sale		1,790,047			1,224,417
Securities held to maturity (fair value $333,912 and $267,988)		330,203			265,807
Mortgage loans held for sale		23,881			35,908
Loans, net of unearned income		4,109,614			4,604,126
Less allowance for loan losses		114,468			174,695
Loans, net		3,995,146			4,429,431
Assets covered by loss sharing agreements with the FDIC		78,145			131,887
Premises and equipment, net		175,088			178,239
Accrued interest receivable		20,693			24,299
Goodwill and other intangible assets		8,428			11,446
Foreclosed property		32,859			142,208
Other assets		150,514			183,160
Total assets	$	6,983,420		$	7,276,259
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand	$	992,109		$	793,414
NOW		1,509,896			1,424,781
Money market		1,038,778			891,252
Savings		199,007			183,894
Time:
Less than $100,000		1,332,394			1,496,700
Greater than $100,000		847,152			1,002,359
Brokered		178,647			676,772
Total deposits		6,097,983			6,469,172
Federal funds purchased, repurchase agreements, and other short-term borrowings		102,577			101,067
Federal Home Loan Bank advances		40,625			55,125
Long-term debt		120,225			150,146
Unsettled securities purchases		10,325			-
Accrued expenses and other liabilities		36,199			32,171
Total liabilities		6,407,934			6,807,681
Shareholders’ equity:
Preferred stock, $1 par value; 10,000,000 shares authorized;
Series A; $10 stated value; 21,700 shares issued and outstanding		217			217
Series B; $1,000 stated value; 180,000 shares issued and outstanding		177,092			175,711
Series D; $1,000 stated value; 16,613 shares issued and outstanding		16,613			-
Common stock, $1 par value; 100,000,000 shares authorized;
41,647,100 and 18,937,001 shares issued and outstanding		41,647			18,937
Common stock, non-voting, $1 par value; 30,000,000 shares authorized;
15,914,209 shares issued and outstanding		15,914			-
Common stock issuable; 93,681 and 67,287 shares		3,233			3,894
Capital surplus		1,054,940			741,244
Accumulated deficit		(730,861	)		(492,276	)
Accumulated other comprehensive income		(3,309	)		20,851
Total shareholders’ equity		575,486			468,578
Total liabilities and shareholders’ equity	$	6,983,420		$	7,276,259

UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended December 31,

	2011								2010
	Average					Avg.			Average					Avg.
(dollars in thousands, taxable equivalent)	Balance			Interest		Rate			Balance			Interest		Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2)	$	4,175,320		$	57,773		5.49	%	$	4,768,120		$	66,750		5.55	%
Taxable securities (3)		2,114,069			13,041		2.47			1,327,999			12,964		3.90
Tax-exempt securities (1)(3)		27,224			417		6.13			25,917			410		6.33
Federal funds sold and other interest-earning assets		371,606			674		.73			558,143			1,091		.78

Total interest-earning assets		6,688,219			71,905		4.27			6,680,179			81,215		4.83
Non-interest-earning assets:
Allowance for loan losses		(145,559	)							(185,300	)
Cash and due from banks		54,485								112,923
Premises and equipment		176,182								178,729
Other assets (3)		245,664								467,871
Total assets	$	7,018,991							$	7,254,402

Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,451,581			807		.22		$	1,436,976			1,662		.46
Money market		1,041,375			800		.30			870,884			2,036		.93
Savings		198,541			41		.08			184,651			81		.17
Time less than $100,000		1,358,367			3,668		1.07			1,489,933			6,292		1.68
Time greater than $100,000		875,434			2,867		1.30			1,010,104			4,736		1.86
Brokered		180,933			803		1.76			491,477			1,840		1.49
Total interest-bearing deposits		5,106,231			8,986		.70			5,484,025			16,647		1.20

Federal funds purchased and other borrowings		102,776			1,053		4.06			102,830			1,073		4.14
Federal Home Loan Bank advances		40,625			441		4.31			58,712			608		4.11
Long-term debt		120,217			2,375		7.84			150,137			2,755		7.28
Total borrowed funds		263,618			3,869		5.82			311,679			4,436		5.65

Total interest-bearing liabilities		5,369,849			12,855		.95			5,795,704			21,083		1.44
Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,008,327								809,604
Other liabilities		59,908								83,452
Total liabilities		6,438,084								6,688,760
Shareholders’ equity		580,907								565,642
Total liabilities and shareholders’ equity	$	7,018,991							$	7,254,402

Net interest revenue				$	59,050							$	60,132
Net interest-rate spread							3.32	%							3.39	%

Net interest margin (4)							3.51	%							3.58	%

(1)	Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2)	Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
(3)	Securities available for sale are shown at amortized cost. Pretax unrealized gains of $31.3 million in 2011 and $40.8 million in 2010 are included in other assets for purposes of this presentation.
(4)	Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Twelve Months Ended December 31,
	2011								2010
	Average					Avg.			Average					Avg.
(dollars in thousands, taxable equivalent)	Balance			Interest		Rate			Balance			Interest		Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2)	$	4,307,111		$	239,195		5.55	%	$	4,960,805		$	278,149		5.61	%
Taxable securities (3)		1,973,678			55,251		2.80			1,425,322			58,821		4.13
Tax-exempt securities (1)(3)		25,693			1,651		6.43			27,827			1,860		6.68
Federal funds sold and other interest-earning assets		478,403			3,247		.68			408,359			4,293		1.05

Total interest-earning assets		6,784,885			299,344		4.41			6,822,313			343,123		5.03
Non-interest-earning assets:
Allowance for loan losses		(145,656	)							(190,227	)
Cash and due from banks		90,212								106,582
Premises and equipment		178,061								180,379
Other assets (3)		281,233								685,547
Total assets	$	7,188,735							$	7,604,594

Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,348,493			3,998		.30		$	1,360,729			6,966		.51
Money market		993,871			5,456		.55			780,982			7,552		.97
Savings		195,468			234		.12			184,479			331		.18
Time less than $100,000		1,471,596			18,648		1.27			1,581,750			30,260		1.91
Time greater than $100,000		948,659			14,347		1.51			1,084,967			23,114		2.13
Brokered		401,393			6,156		1.53			610,483			13,509		2.21
Total interest-bearing deposits		5,359,480			48,839		.91			5,603,390			81,732		1.46

Federal funds purchased and other borrowings		102,727			4,250		4.14			103,479			4,235		4.09
Federal Home Loan Bank advances		47,220			2,042		4.32			90,137			3,355		3.72
Long-term debt		139,666			10,544		7.55			150,107			10,749		7.16
Total borrowed funds		289,613			16,836		5.81			343,723			18,339		5.34

Total interest-bearing liabilities		5,649,093			65,675		1.16			5,947,113			100,071		1.68
Non-interest-bearing liabilities:
Non-interest-bearing deposits		915,649								769,395
Other liabilities		66,809								69,367
Total liabilities		6,631,551								6,785,875
Shareholders’ equity		557,184								818,719
Total liabilities and shareholders’ equity	$	7,188,735							$	7,604,594

Net interest revenue				$	233,669							$	243,052
Net interest-rate spread							3.25	%							3.35	%

Net interest margin (4)							3.44	%							3.56	%

(1)	Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2)	Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
(3)	Securities available for sale are shown at amortized cost. Pretax unrealized gains of $32.2 million in 2011 and $43.2 million in 2010 are included in other assets for purposes of this presentation.
(4)	Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

UNITED COMMUNITY BANKS, INC.
Previously Reported Financial Information - As Restated for Full Valuation Allowance on Net Deferred Tax Asset
	For the Three Months Ended
	September 30, 2011									June 30, 2011							March 31, 2011									December 31, 2010
(in thousands, except per share	As			Adjust-			As			As		Adjust-			As		As			Adjust-			As			As			Adjust-			As
data; taxable equivalent)	Reported			ment			Restated			Reported		ment			Restated		Reported			ment			Restated			Reported			ment			Restated
Consolidated Statement of Operations
Income tax expense (benefit)	$	(5,959	)	$	5,137		$	(822	)	$	5,077	$	(4,411	)	$	666	$	(94,990	)	$	94,850		$	(140	)	$	(12,446	)	$	156,709		$	144,263
Net income (loss) from continuing operations		(6,202	)		(5,137	)		(11,339	)		7,617		4,411			12,028		(142,486	)		(94,850	)		(237,336	)		(16,395	)		(156,709	)		(173,104	)
Net operating income (loss) from continuing operations		(6,202	)		(5,137	)		(11,339	)		7,617		4,411			12,028		(142,486	)		(94,850	)		(237,336	)		(23,574	)		(161,280	)		(184,854	)
Net income (loss)		(6,202	)		(5,137	)		(11,339	)		7,617		4,411			12,028		(142,486	)		(94,850	)		(237,336	)		(16,395	)		(156,709	)		(173,104	)
Net income (loss) available to common shareholders		(9,221	)		(5,137	)		(14,358	)		4,601		4,411			9,012		(145,264	)		(94,850	)		(240,114	)		(18,981	)		(156,709	)		(175,690	)

Per Share Information
Income (loss) from continuing operations - basic	$	(.16	)	$	(.09	)	$	(.25	)	$	.18	$	.17		$	.35	$	(7.87	)	$	(5.13	)	$	(13.00	)	$	(1.00	)	$	(8.25	)	$	(9.25	)
Income (loss) from continuing operations - diluted		(.16	)		(.09	)		(.25	)		.08		.08			.16		(7.87	)		(5.13	)		(13.00	)		(1.00	)		(8.25	)		(9.25	)
Operating income (loss) from continuing operations - diluted		(.16	)		(.09	)		(.25	)		.08		.08			.16		(7.87	)		(5.13	)		(13.00	)		(1.38	)		(8.49	)		(9.87	)
Income (loss) - basic		(.16	)		(.09	)		(.25	)		.18		.17			.35		(7.87	)		(5.13	)		(13.00	)		(1.00	)		(8.25	)		(9.25	)
Income (loss) - diluted		(.16	)		(.09	)		(.25	)		.08		.08			.16		(7.87	)		(5.13	)		(13.00	)		(1.00	)		(8.25	)		(9.25	)

Key Performance Measures
Return on equity (%)		(5.72	)		(9.34	)		(15.06	)		5.34		37.26			42.60		(147.11	)		(379.43	)		(526.54	)		(17.16	)		(178.94	)		(196.10	)
Return on assets (%)		(.34	)		(.30	)		(.64	)		.40		.26			.66		(7.61	)		(5.43	)		(13.04	)		(.89	)		(8.58	)		(9.47	)
Equity to assets (%)		11.83			(3.28	)		8.55			11.21		(3.15	)		8.06		8.82			(2.67	)		6.15			8.85			(1.05	)		7.80
Tangible equity to assets (%)		11.76			(3.34	)		8.42			11.13		(3.20	)		7.93		8.73			(2.72	)		6.01			8.75			(1.11	)		7.64
Tangible common equity to assets (%)		9.09			(3.44	)		5.65			4.79		(3.42	)		1.37		5.51			(2.81	)		2.70			6.35			(1.13	)		5.22
Tangible common equity to risk-weighted assets (%)		14.41			(5.89	)		8.52			14.26		(5.57	)		8.69		6.40			(5.65	)		.75			9.05			(3.41	)		5.64
Average total assets ($ in millions)	$	7,261		$	(261	)	$	7,000		$	7,624	$	(261	)	$	7,363	$	7,595		$	(216	)	$	7,379		$	7,338		$	(84	)	$	7,254
Average shareholders’ equity ($ in millions)		859			(261	)		598			854		(260	)		594		670			(216	)		454			649			(83	)		566

Regulatory Capital Ratios - Holding Company
Tier 1 leverage ratio (%)		8.97			(.18	)		8.79			8.71		(.19	)		8.52		4.95			(.20	)		4.75			6.75			.01			6.76
Tier 1 risk-based capital ratio (%)		13.97			(.22	)		13.75			13.88		(.26	)		13.62		7.67			(.24	)		7.43			9.67			.14			9.81
Total risk-based capital ratio (%)		15.84			(.21	)		15.63			16.40		(.24	)		16.16		15.34			(.49	)		14.85			12.11			.14			12.25

Regulatory Capital Ratios - Bank
Tier 1 leverage ratio (%)		8.84			(.18	)		8.66			8.54		(.19	)		8.35		8.34			(.22	)		8.12			7.45			-			7.45
Tier 1 risk-based capital ratio (%)		13.80			(.26	)		13.54			13.62		(.29	)		13.33		12.95			(.24	)		12.71			10.72			.13			10.85
Total risk-based capital ratio (%)		15.07			(.25	)		14.82			15.41		(.29	)		15.12		14.73			(.24	)		14.49			12.48			.13			12.61

UNITED COMMUNITY BANKS, INC.

Previously Reported Financial Information - As Restated for Full Valuation Allowance on Net Deferred Tax Asset

	For the Year to Date Period Ended
	September 30, 2011									June 30, 2011									March 31, 2011									December 31, 2010
(in thousands, except per share	As			Adjust-			As			As			Adjust-			As			As			Adjust-			As			As			Adjust-			As
data; taxable equivalent)	Reported			ment			Restated			Reported			ment			Restated			Reported			ment			Restated			Reported			ment			Restated

Consolidated Statement of Operations
Income tax expense (benefit)	$	(95,872	)	$	95,576		$	(296	)	$	(89,913	)	$	90,439		$	526		$	(94,990	)	$	94,850		$	(140	)	$	(85,492	)	$	156,709		$	71,217
Net income (loss) from continuing operations		(141,071	)		(95,576	)		(236,647	)		(134,869	)		(90,439	)		(225,308	)		(142,486	)		(94,850	)		(237,336	)		(346,800	)		(156,709	)		(503,509	)
Net operating income (loss) from continuing operations		(141,071	)		(95,576	)		(236,647	)		(134,869	)		(90,439	)		(225,308	)		(142,486	)		(94,850	)		(237,336	)		(143,389	)		(161,280	)		(304,669	)
Net income (loss)		(141,071	)		(95,576	)		(236,647	)		(134,869	)		(90,439	)		(225,308	)		(142,486	)		(94,850	)		(237,336	)		(345,635	)		(156,709	)		(502,344	)
Net income (loss) available to common shareholders		(149,884	)		(95,576	)		(245,460	)		(140,663	)		(90,439	)		(231,102	)		(145,264	)		(94,850	)		(240,114	)		(355,951	)		(156,709	)		(512,660	)

Per Share Information
Income (loss) from continuing operations - basic	$	(4.41	)	$	(2.82	)	$	(7.23	)	$	(6.40	)	$	(4.12	)	$	(10.52	)	$	(7.87	)	$	(5.13	)	$	(13.00	)	$	(18.87	)	$	(8.28	)	$	(27.15	)
Income (loss) from continuing operations - diluted		(4.41	)		(2.82	)		(7.23	)		(6.40	)		(4.12	)		(10.52	)		(7.87	)		(5.13	)		(13.00	)		(18.87	)		(8.28	)		(27.15	)
Operating income (loss) from continuing operations - diluted		(4.41	)		(2.82	)		(7.23	)		(6.40	)		(4.12	)		(10.52	)		(7.87	)		(5.13	)		(13.00	)		(8.12	)		(8.52	)		(16.64	)
Income (loss) - basic		(4.41	)		(2.82	)		(7.23	)		(6.40	)		(4.12	)		(10.52	)		(7.87	)		(5.13	)		(13.00	)		(18.81	)		(8.28	)		(27.09	)
Income (loss) - diluted		(4.41	)		(2.82	)		(7.23	)		(6.40	)		(4.12	)		(10.52	)		(7.87	)		(5.13	)		(13.00	)		(18.81	)		(8.28	)		(27.09	)

Consolidated Statement of Changes in Shareholders’ Equity
Net income (loss)	$	(141,071	)	$	(95,576	)	$	(236,647	)	$	(134,869	)	$	(90,439	)	$	(225,308	)	$	(142,486	)	$	(94,850	)	$	(237,336	)	$	(345,635	)	$	(156,709	)	$	(502,344	)
Unrealized holding gains (losses) on available for sale securities		2,910			1,678			4,588			5,133			2,870			8,003			(1,003	)		(674	)		(1,677	)		(4,986	)		(3,165	)		(8,151	)
Reclassification adjustment for gains on securities available for sale included in fee revenue		-			-			-			-			-			-			-			-			-			(1,559	)		(993	)		(2,552	)
Unrealized losses on derivative financial instruments qualifying as cash flow hedges		(7,680	)		(4,890	)		(12,570	)		(5,879	)		(3,743	)		(9,622	)		(2,580	)		(1,643	)		(4,223	)		(10,011	)		(6,070	)		(16,081	)
Comprehensive income (loss)		(145,841	)		(98,788	)		(244,629	)		(135,615	)		(91,312	)		(226,927	)		(146,069	)		(97,167	)		(243,236	)		(362,191	)		(166,937	)		(529,128	)
Penalty received on incomplete private equity transaction		2,375			875			3,250			2,375			875			3,250			-			-			-			-			-			-

Consolidated Statement of Cash Flows
Net income (loss)	$	(141,071	)	$	(95,576	)	$	(236,647	)	$	(134,869	)	$	(90,439	)	$	(225,308	)	$	(142,486	)	$	(94,850	)	$	(237,336	)	$	(345,635	)	$	(156,709	)	$	(502,344	)
Deferred income tax benefit		-			-			-			-			-			-			-			-			-			(87,455	)		156,709			69,254
Net change in other assets and accrued interest receivable		(35,735	)		95,576			59,841			(49,255	)		90,439			41,184			(90,321	)		94,850			4,529			-			-			-

Key Performance Measures
Return on equity (%)		(43.31	)		(108.01	)		(151.32	)		(76.07	)		(269.79	)		(345.86	)		(147.11	)		(379.43	)		(526.54	)		(57.08	)		(27.98	)		(85.06	)
Return on assets (%)		(2.52	)		(1.85	)		(4.37	)		(3.57	)		(2.59	)		(6.16	)		(7.61	)		(5.43	)		(13.04	)		(4.53	)		(2.08	)		(6.61	)
Equity to assets (%)		10.61			(3.03	)		7.58			10.02			(2.91	)		7.11			8.82			(2.67	)		6.15			11.01			(.24	)		10.77
Tangible equity to assets (%)		10.53			(3.08	)		7.45			9.94			(2.96	)		6.98			8.73			(2.72	)		6.01			9.15			(.32	)		8.83
Tangible common equity to assets (%)		6.44			(3.23	)		3.21			5.15			(3.12	)		2.03			5.51			(2.81	)		2.70			6.80			(.32	)		6.48
Tangible common equity to risk-weighted assets (%)		14.41			(5.89	)		8.52			14.26			(5.57	)		8.69			6.40			(5.65	)		.75			9.05			(3.41	)		5.64
Average total assets ($ in millions)	$	7,492		$	(246	)	$	7,246		$	7,609		$	(238	)	$	7,371		$	7,595		$	(216	)	$	7,379		$	7,626		$	(21	)	$	7,605
Average shareholders’ equity ($ in millions)		795			(246	)		549			763			(239	)		524			670			(216	)		454			840			(21	)		819

UNITED COMMUNITY BANKS, INC.

Previously Reported Financial Information - As Restated for Full Valuation Allowance on Net Deferred Tax Asset

	As Of
	September 30, 2011									June 30, 2011									March 31, 2011									December 31, 2010
(in thousands, except per share	As			Adjust-			As			As			Adjust-			As			As			Adjust-			As			As			Adjust-			As
data; taxable equivalent)	Reported			ment			Restated			Reported			ment			Restated			Reported			ment			Restated			Reported			ment			Restated
Consolidated Balance Sheet
Net deferred tax asset	$	264,275		$	(264,275	)	$	-		$	261,268		$	(261,268	)	$	-		$	266,367		$	(266,367	)	$	-		$	166,937		$	(166,937	)	$	-
Other assets		153,329			(575	)		152,754			172,074			3,894			175,968			174,742			2,263			177,005			183,160			-			183,160
Total assets		7,159,123			(264,850	)		6,894,273			7,409,669			(257,374	)		7,152,295			7,973,592			(264,104	)		7,709,488			7,443,196			(166,937	)		7,276,259
Capital surplus		1,052,690			875			1,053,565			1,051,607			875			1,052,482			738,963			-			738,963			741,244			-			741,244
(Accumulated deficit) retained earnings		(485,451	)		(252,285	)		(737,736	)		(476,230	)		(247,148	)		(723,378	)		(480,831	)		(251,559	)		(732,390	)		(335,567	)		(156,709	)		(492,276	)
Accumulated other comprehensive income		26,309			(13,440	)		12,869			30,333			(11,101	)		19,232			27,496			(12,545	)		14,951			31,079			(10,228	)		20,851
Total shareholders’ equity		848,217			(264,850	)		583,367			859,975			(257,374	)		602,601			850,148			(264,104	)		586,044			635,515			(166,937	)		468,578
Total liabilities and shareholders’ equity		7,159,123			(264,850	)		6,894,273			7,409,669			(257,374	)		7,152,295			7,973,592			(264,104	)		7,709,488			7,443,196			(166,937	)		7,276,259

Key Performance Measures
Book value per share	$	11.37		$	(4.60	)	$	6.77		$	11.59		$	(4.48	)	$	7.11		$	14.78		$	(12.58	)	$	2.20		$	24.48		$	(9.08	)	$	15.40
Tangible book value per share		11.26			(4.65	)		6.61			11.47			(4.53	)		6.94			14.44			(12.75	)		1.69			23.78			(8.98	)		14.80
Nonperforming assets to total assets (%)		2.64			.10			2.74			1.60			.06			1.66			1.73			.06			1.79			4.32			.10			4.42

ex99-2.htm

Exhibit 99.2

United Community Banks, Inc.

Investor Presentation

Fourth Quarter 2011

Jimmy C. Tallent Rex S. Schuette David P. Shearrow

President & CEO EVP & CFO EVP & CRO rex_schuette@ucbi.com (706) 781-2266

Cautionary Statement 2

This presentation 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. 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 factors that may cause such forward-looking statements to differ materially from actual results, please refer to United Community Banks, Inc.’s Annual Report filed on Form 10-K with the Securities and Exchange Commission.

Non-GAAP Measures 3

This presentation also contains non-GAAP financial measures determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). Such non-GAAP financial measures include the following: net interest margin – pre credit, core net interest margin, core net interest revenue, core fee revenue, core operating expense, core earnings, net operating (loss) income and net operating (loss) earnings per share, tangible common equity to tangible assets, tangible equity to tangible assets and tangible common equity to risk-weighted assets. The most comparable GAAP measures to these measures are: net interest margin, net interest revenue, fee revenue, operating expense, net (loss) income, diluted (loss) earnings per share and equity to assets.

Management uses these non-GAAP financial measures because we believe it is useful for evaluating our operations and performance over periods of time, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes these non-GAAP financial measures provide users of our financial information with a meaningful measure for assessing our financial results and credit trends, as well as comparison to financial results for prior periods. These non-GAAP financial measures should not be considered as a substitute for financial measures determined in accordance with GAAP and may not be comparable to other similarly titled financial measures used by other companies. For a reconciliation of the differences between our non-GAAP financial measures and the most comparable GAAP measures, please refer to the ‘Non-GAAP Reconcilement Tables’ at the end of the Appendix of this presentation.

Highlights Fourth Quarter 4

Net Income of $9.9 Million, or 12 Cents per Share

Second quarterly profit in 2011

Loan Growth Flat

First time since March 2008

Strong Core Deposit Growth

Nonperforming Assets Decline to $160 Million, or 2.3% of Assets

LOAN PORTFOLIO & CREDIT 5 QUALITY

Loan Portfolio (total $4.11 billion) 6

Geographic Diversity

$.45B $ in millions Residential Construction $1.14B .11B

11%

Residential Installment Mortgage 3% 28%

$2.41B Commercial 58%

Commercial Loans (total $2.41 billion) 7

$.16B

Geographic Diversity Comm

Const $ in millions 7% $.43B

C & I 18% $1.11B

Owner Occupied 46% $.71B

Income Producing 29%

Avg Loan Size (,000)

$700 $600

610

$500 $400 449

420

$300 $200 $100

Owner Income C & I Comm Occupied Producing Constr

Commercial Real Estate (by loan type) 8

(in millions)

December 31, 2011 Portfolio Characteristics

Owner Income

Loan Type Occupied Producing Total Percent

Office Buildings $ 285 $ 211 $ 496 27 % 61% owner-occupied Retail 120 145 265 15 Small Warehouses/Storage 115 78 193 11 Multi-Residential Properties 60 84 144 8Small business, doctors, Churches 139 - 139 8dentists, attorneys, CPAs Hotels/Motels - 92 92 5 Convenience Stores 63 22 85 5 Franchise / Restaurants 37 34 71 4$12 million project limit Farmland 63 - 63 3 Manufacturing Facility 51 10 61 3 Golf Course/Recreation 60 - 60 3Average Loan Size Auto Dealership/Service 44 8 52 3 Leasehold Property 17 7 24 1-$468 Composite CRE Daycare Facility 16 10 26 1 Carwash 19 1 20 1-$420 Owner Occupied Other Small Business 10 8 18 1 Funeral Home 12 1 13 1-$610 Income Producing Total$ 1,111 $ 711 $ 1,822

Commercial Construction (by loan type) 9

(in millions)

December 31, 2011 Loan Type Amount Percent

Land Develop - Vacant (Improved) $ 65 39 % Portfolio Characteristics Raw Land - Vacant (Unimproved) 5735 Commercial Land Development 2515Average loan size: $449k Golf Course/Country Club 64 Office Buildings 32 Churches 32 Warehouse 21 Miscellaneous Construction 32 Total Commercial Construction$ 164 100 %

Residential Mortgage (total $1.14 billion) 10

Geographic Diversity $.30B

Home Equity $ in millions 26%

Avg loan size: $44k

$.84B

Mortgage Avg loan 74% size: $72k

Origination Characteristics No broker loans Policy Max LTV: 80-85% 53.8% of HE Primary Lien

Residential Construction (total $.45 billion) 11

Geographic Diversity a L d n

$ in millions

Developing

o C s n r u t t i c n o

Average Loan Size

Spec $223k Develop $619k Sold $132k Raw Land $150k Lot $88k

Residential Construction – Total Company 12

4Q11 vs. (in millions) 4Q11 3Q11

2Q11 1Q11 4Q10 4Q10

Land Loans

Developing Land

$ 88 $ 97

$ 105 $ 116

$ 174 $ (86)

Raw Land 61 60

62 69

99 (38) Lot Loans 207

216 218 228 275 (68)

Total 356 373 385

413 548 (192)

Construction Loans

Spec 59 64 74

88 97 (38)

Sold 33 37 43 49

50 (17)

Total 92 101 117

137 147 (55)

Total Res Construction$ 448$ 474$ 502

$ 550$ 695$ (247)

By Region

Atlanta $ 86 $ 92 $ 97

$ 110 $ 133 $ (47)

Gainesville MSA 20 25 25 26 36

(16)

North Georgia 214 229 249 266 339

(125)

North Carolina 91 92 95 106 140 (49)

Coastal Georgia 24 24 24 27 30 (6)

Tennessee 13 12 12 15 17 (4)

Total Res Construction $ 448 $ 474

$ 502 $ 550 $ 695 $ (247)

New Loans Funded – Category and Market 13

(in millions)

2011 2011 CATEGORY 4Q YTD MARKET 4Q YTD

Commercial RE: Atlanta $ 56.1 $ 138.4 Owner Occupied $ 54.1 $ 146.8 N. Georgia 30.0 113.3 Income Producing 24.1 66.1Coastal Georgia 35.6 73.0 Total Commercial RE 78.2 212.9North Carolina 7.2 25.2 Commercial C & I 41.4 79.6Tennessee 12.7 25.0 Commercial Constr. 2.1 6.7Gainesville 5.7 17.4 Residential 19.2 60.8 Total Markets$ 147.3$ 392.3 Residential Constr. 5.5 28.5 Consumer .9 3.8 Total Categories$ 147.3$ 392.3

New Loan Commitments – Category and Market 14

(in millions)

2011 2011 CATEGORY 4Q YTD MARKET 4Q YTD

Commercial RE: Atlanta $ 69.3 $ 206.5 Owner Occupied $ 56.7 $ 152.1 N. Georgia 40.0 155.2 Income Producing 25.4 72.7Coastal Georgia 38.1 81.3 Total Commercial RE 82.1 224.8North Carolina 10.1 38.8 Commercial C & I 52.6 130.6Tennessee 17.3 36.7 Commercial Constr. 5.2 20.4Gainesville 7.2 23.7 Residential 23.4 74.1 Total Markets$ 182.0$ 542.2 Residential Constr. 17.2 87.1 Consumer 1.5 5.2 Total Categories$ 182.0$ 542.2

Credit Quality 15

(in millions)4Q11 3Q11 2Q11 1Q11 4Q10 Operating Net Charge-offs(1) $ 20.6 $ 17.5 $ 16.5 $ 231.6 $ 47.7a

% of Average Loans(1) 1.99 % 1.68 % 1.58 % 20.71 % 4.03 %

Allowance for Loan Losses $ 114.5 $ 146.1 $ 127.6 $ 133.1 $ 174.7

as % of Total Loans 2.79 % 3.55 % 3.07 % 3.17 % 3.79 % as % of NPLs 90 101 180 159 98

Past Due Loans (30 89 Days) .75 % .70 % .65 % 1.26 % 1.26 %

Non-Performing Loans $ 127.5 $ 144.5 $ 71.0 $ 83.7 $ 179.1 OREO 32.8 44.2 47.6 54.4 142.2 Total NPAs $ 160.3 $ 188.7 $ 118.6 $ 138.1 $ 321.3

Accruing TDRs $ 105.8 $ 69.8 $ 41.5 $ 44.4 $ 100.7

As % of Original Principal Balance

Non-Performing Loans 71.3 % 77.8 % 64.5 % 57.3 % 67.2 % OREO 35.9 33.4 32.6 30.3 64.4

Total NPAs as % of Total Assets 2.30 2.74 1.66 1.79 4.42 as % of Loans & OREO 3.87 4.54 2.82 3.25 6.77

(1) Excludes $25 million of charge-offs for largest loan relationship in 4Q11 and $11.75 million partial recovery of 2007 fraud loss in 4Q10.

NPL Inflow Trends 16

Quarterly NPL Inflows Since 2009 ($mm)

$193.3 76.4% $200.0 $174.8 $177.7 $174.9 Decline $155.0 from Peak $139.0 $150.0$119.8 $103.4 $100.0$81.0

$54.7 $45.7 $50.0 $35.9

$0.0

Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11

Resi Construction Com. Construction Resi. Mortgage Com. RE Commercial Consumer

Total NPLs ($mm)

Net Charge‐offs by Loan Category 17

(in thousands)

4Q11(1) % of Average Loans (Annualized)

% of Avg

Total Loans 3Q11 2Q11(2) 1Q11 (2)

Commercial (Sec. by RE):

Owner Occupied $ 3,019 1.16 % .34 % .89 % .89 % Income Producing 1,042 .57 .71 1.54 .33 Total Comm (Sec. by RE) 4,061 .90 .50 1.16 .65 Commercial Construction 455 1.08 3.54 4.31 1.77 Commercial & Industrial 1,894 1.75 .39 .59 .46 Total Commercial 6,410 1.06 .71 1.33 .73

Residential Construction 7,900 6.77 5.19 7.19 6.72 Residential Mortgage 5,887 2.04 2.09 1.97 1.59 Consumer/ Installment 427 1.47 2.75 2.07 1.19 Total Net Charge-offs $ 20,624 1.99 1.68 2.27 1.84

(1) Excludes charge-offs for largest loan relationship of Commerical Construction $2,863; Commercial & Industrial $17,046; CRE Income Producing $901; and, Residential Construction $4,190 (2) Calculated excluding losses related to asset disposition plans.

plans.

Net Charge‐offs by Market 18

(in thousands)

4Q11(1) % of Average Loans (Annualized)

% of Avg

Total Loans 3Q11 2Q11(2) 1Q11(2)

Atlanta MSA $ 4,195 1.37 % .94 % 1.66 % 1.04 % Gainesville MSA 2,572 3.84 2.64 3.73 1.32 North Georgia 9,970 2.70 2.16 2.71 2.06 Western North Carolina 3,180 2.10 2.31 2.67 3.98 Coastal Georgia 335 .41 .88 1.52 0.42 East Tennessee 372 .59 .78 .76 1.00

Total $ 20,624 1.99 1.68 2.27 1.84

NPAs by Loan Category and Market 19

(in thousands)

4Q11 4Q11

NPLs OREO Total NPAs NPLs

OREO Total NPAs

LOAN CATEGORY MARKETS

Commercial (sec. by RE):

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

Owner Occupied

$ 15,490 $ 6,931 $ 22,189

Gainesville MSA 2,069 3,760 5,829

Income Producing 11,832 2,814 14,621

North Georgia 88,600 15,136 103,736

Commercial Construction 16,655 3,336 19,991

Western N. Carolina 15,100 5,365 20,465

Commercial & Industrial 34,613 - 34,613

Coastal Georgia 5,248 1,620 6,868

Total Commercial 78,590 13,081 91,414

East Tennessee 1,982 809 2,791

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

Residential Construction 25,523 12,851 38,374

Residential

Mortgage

22,358 6,927 29,285

Consumer/ Installment 1,008 - 1,008

Total $ 127,479 $ 32,859 $ 160,081

Financial Review 20

Core Earnings Summary 21

(In Thousands) Variance - Incr / (Decr) 4Q11 3Q11 4Q10

Net Interest Revenue $ 59,050 $ (231) $ (1,082)

Fee Revenue 11,442 133 294

Gross Revenue 70,492 (98) (788)

Operating Expense (Excl OREO) 43,843 (250) (261)

Pre-Tax, Pre-Credit (Core) $ 26,649 $ 152 $ (527)

Net Interest Margin 3.51 % (.04) % (.07) %

Net Interest Margin 22

NIM Characteristics

4.50% 4.48% • Margin changes

4.05%

3.87% 3.84% 3.81%

3.71% -4 bps vs. 3Q11 -7 bps vs. 4Q10

• Lowered Core and CD Deposit Pricing

• Loan Pricing at risk

• 4Q Excess liquidity –lowered Margin by 67 bps NIM and 66 bps in Q3

NIM – Core Credit(1)(2)

(1) Excludes impact of reversal of interest on performing loans classified as held for sale – Q1 2011 (2) Excluding impact of nonaccrual loans, OREO and interest reversals

Margin – Credit Costs 23

Credit Costs Impacting Margin

.50%

.47% .46%*

.45%

.11% .11% Historically 8 to 12 bps

.40%

.35%

.30% .30% Significant improvement with

.29%

.30% de-risking balance sheet first

.19% .16% .05% .05%

.25% .07% quarter .07% .20% .07% .13%

.15% Cost 4Q11 vs. Historical – 18 .10% .19% bps (annual earnings impact

.17% .18%

.15%

.05% .12% of $12.1 million)

.00%

4Q10 1Q11 2Q11 3Q11 4Q11 1 bps = $670 thousand in NIR

Interest Reversals

Carry Cost of NPAs *Excludes bulk loan sale impact of 10

Lost Interest on C/Os bps

Key Drivers of Net Interest Revenue / Margin 24

Positive Impact on Margin

 Holding loan pricing flat

 Actively lowering deposit pricing

4.35 4.31 4.74 4.76 4.79 Loan Pricing Spreads

Deposit Pricing, Excluding Brokered Deposits 25

1.25 1.16

1.12

1.00 .93

.89

.75 .62 .61

.46 .50 .46 .44 .39

.32 .36 .26 .30

.25 .22

.00

CDs MMDA NOW

Note – CD pricing reflects the quarter-ending new and renewed yield. MMDA / NOW pricing reflects the deposit yield for each quarter

Deposit Mix (total $6.1 billion) 26

4Q11

Brokered

($ in millions) $6.1B 3%

Public Funds

14% Demand & 48% NOW

4Q11 3Q11 4Q10 4Q08 28%

Demand / NOW $ 1,674 $ 1,686

$ 1,573 $ 1,457 Time >$100k

13%

MMDA / Savings 1,228 1,220

1,063 630

Core Transaction 2,902 2,906

2,636 2,087

-4 +266 Time <$100k MMDA & Sav.

22% 20%

10% Growth

+815

39% Growth

4Q08

Time < $100,000 1,326 1,387

1,491 1,945 $7.0B

Demand & 30%

Public Deposits 844 597

663 755 Brokered

11% NOW

Total Core 5,072 4,890

4,790 4,787 21%

Public Funds

Time >$100,000 807 867

940 1,336 12%

Public Deposits 40 38

62 87 MMDA & Sav.

Total Customer 5,919 5,795

5,792 6,210 9%

Time >$100k

Brokered

Deposits 179 210

677 793 19%

Total Deposits $ 6,098 $ 6,005

$ 6,469 $ 7,003 Time <$100k

28%

Core Deposit Growth – Category and Market 27

(in millions, excluding public)

2011 2011

CATEGORY 4Q YTD MARKET 4Q YTD

Demand $ 8.8 $ 185.7 Atlanta $ 10.2 $ 102.4

MM Accounts 8.7 149.8 N. Georgia (12.8) 80.8

Savings (1.3) 14.9 North Carolina (3.6) 27.4

NOW (20.1) (84.1) Tennessee 1.6 20.7

Total Categories $ (3.9) $ 266.3 Coastal Georgia (5.9) 19.6

Gainesville 6.6 15.4

Total Markets $ (3.9) $ 266.3

Fee Revenue - Core 28

(In Thousands)

Variance - Incr / (Decr) 4Q11 3Q11 4Q10

NSF & Overdraft Fees $ 3,537 $ (4) $ (295) ATM Fees 2,969 (333)

434 Other Service Charges 742 51 70 Total Service Charges and Fees 7,248 (286) 209 M

ortgage Loan & Related Fees 1,825 677

(43) Brokerage Fees 782 (54) 4 Other 1,587 (204) 124 Total$ 11,442$ 133$ 294

Excludes net securities gains and charges on prepayment of FHLB advances, hedge ineffectiveness gains, gains from the sale of low income housing tax credits and mark to market adjustments on United's deferred compensation plan assets.

Operating Expenses - Core 29

(In Thousands)

Variance - Incr / (Decr) 4Q11 3Q11 4Q10

Salaries & Employee Benefits $ 25,538 $ (110) 1,973 Communications & Equipment 3,129 (155) (248) Occupancy 3,972 178 (52) FDIC Assessment 2,599 (4) (700) Advertising & Public Relations 944 (108) (158) Postage, Printing & Supplies 1,017 (19) (46) Professional Fees 1,996 (55) (1,020) Other Expense 4,648 23 (10)

$ 43,843 $ (250) $ (261)

Excludes foreclosed property costs, adjustment to reclassify pension plan actuarial gains and losses and unamortized prior service costs to other comprehensive income, and mark to market adjustments on United's deferred compensation plan liability.

Net Operating Loss 30

(In Thousands)

4Q11 3Q11 4Q10 Pre-Tax, Pre-Credit (Core) $ 26,649

$ 26,497 $ 27,176

Provision for Loan Loss (14,000)

(36,000) (47,750)

Foreclosed Property Costs:

Write-downs (3,892)

(1,772) (8,031) Gains (Losses)

on Sales (3,041)

804 (7,818) Maintenance, Taxes, Etc.

(2,369) (1,845) (4,753)

Total Foreclosed Property Costs (9,302)

(2,813) (20,602) Hedge Ineffectiveness

Gains 313 575 400

Securities Gains, Net 4 -

-Gains from Sale of Low Income Housing Tax Credits

728 - 682 Reclassification of

Acturial Gains and Losses and Prior Service Cost to OCI

2,245 - -Income Tax (Expense)

Benefit 3,264 402 (144,760)

Net Operating Income (Loss)

$ 9,901

$ (11,339) $ (184,854)

Partial Recovery of 2007 Fraud Loss - - 11,750

Net Income (Loss) $ 9,901

$ (11,339) $ (173,104)

Net Operating Income (Loss) Per Share $

.12 $ (.25) $ (9.87)

Net Income (Loss) 31

(In Thousands)

4Q11 3Q11 4Q10 Net Income (Loss)

$ 9,901

$ (11,339) $ (173,104)

Preferred Stock Dividends

(3,025) (3,019)

(2,586)

Net Income (Loss) Avail to Common Shareholders

$ 6,876 $ (14,358)

$ (175,690) Net Income (Loss) Per Share$ .12$

(.25)$ (9.25) Tangible Book Value

$ 6.47$ 6.61$ 14.80

Shares Outstanding (millions)

57.6 57.5 18.9

Capital Ratios

Well- Minimum

Capitalized Guideline DEC '11

SEP '11 JUN '11 Bank Tier 1 RBC

6 % 10 %

13.6 % 13.5 % 13.3 % Total RBC

10 11 14.8 14.8

15.1 Leverage 5

8 8.8 8.7 8.4

Holding Company

Tier 1

RBC 6

10 13.6

13.8 13.6 Total RBC

11 15.4 15.6 16.2

Leverage 5 8 8.8

8.8 8.5 Tier I Common RBC 4.5 7 8.2 8.2

8.3

Tangible Equity to Assets 8.2

8.4 7.9 Tangible

Common to Assets

5.4 5.7 5.6 (1)

(1) As of quarter-end (capital raise conversion)

United at a Glance 34

Assets $7.0 Billion Banks 27 Deposits $6.1 Billion Offices 106

Experienced Proven Leadership 35

Joined Years in UCBI Banking

Jimmy Tallent President & CEO 1984 37 Rex Schuette Chief Financial Officer 2001 34 David ShearrowChief Risk Officer200730 Craig MetzMarketing & Retail Banking200219

Regional Presidents:

Bill Gilbert North & Coastal Georgia 2000 35 Tim Schools North Carolina & Tennessee 201112 Glenn WhiteAtlanta200737

Business and Operating Model 36

“Community bank service, large bank resources”

Twenty-seven “community banks”

 Local CEOs with deep roots in their communities

 Resources of $7.0 billion bank

Service is point of differentiation

 #1 in Customer Satisfaction according to Customer Service Profiles

 J.D. Power Customer Service Champion

 Recognized 40 companies in the U.S.

 Only bank to be recognized

 Golden rule of banking

 “The Bank That SERVICE Built”

 Ongoing customer surveys

 95% satisfaction rate in 2011

Strategic footprint with substantial banking opportunities

 Operates in a number of the more demographically attractive markets in the U.S.

Disciplined growth strategy

 Organic supported by de novos and selective acquisitions

Robust Demographics (fast growing markets) 37

Population Growth (%) Population Actual Projected Markets1 (in thousands) 2000 - 20102010 - 2015

North Georgia 394 23 % 7 % Atlanta MSA 5,611 32 10 Gainesville MSA 1913713 Coastal Georgia 373115 Western North Carolina 429124 East Tennessee 860146

Total Markets

Georgia 10,014 22 7 North Carolina 9,552 19 8 Tennessee 6,366125 United States 311,213114

¹ Population data is for 2010 and includes those markets where United takes deposits. Source: SNL

Market Share Opportunities 38

(excellent growth prospects)

Market

Deposits United Deposit

Markets (in billions) (1) Deposits (2) Banks Offices Share(1) Rank(1)

North Georgia $ 6.8 $ 2.0 11 23 33 % 1 Atlanta MSA 48.2 2.1103847 Gainesville MSA 2.5 .315143 Coastal Georgia 7.0 .42867 Western North Carolina 7.3 1.0 121133 East Tennessee 15.9 .3 211210

Total Markets $ 87.7 $ 6.1 27 106

¹ FDIC deposit market share and rank as of 6/11 for markets where United takes deposits. Source: SNL and FDIC.

2 Based on current quarter.

Leading Demographics 39

Total Assets 2010 - 2015 Population Rank Ticker Company(1) State ($ B) Growth (2)

1 CFR Cullen/Frost Bankers, Inc. TX $19.5 9.07%

2 WAL Western Alliance Bancorporation AZ 6.5 7.60

3 FCNCA First Citizens Bancshares, Inc. NC 21.0 7.41

4 GBCI Glacier Bancorp, Inc. MT 7.0 7.19

5 PRSP Prosperity Bancshares, Inc. TX 9.6 7.18

6 IBOC International Bancshares Corporation TX 11.6 7.06

7 UCBI United Community Banks, Inc. GA 7.0 7.06

8 TCBI Texas Capital Bancshares, Inc. TX 7.7 6.37

9 HBHC Hancock Holding Company MS 19.4 6.29

10 FCBN First Citizens Bancorporation, Inc. SC 8.3 6.05

11 FIBK First Interstate BancSystem, Inc. MT 7.3 5.93

12 BOKF BOK Financial Corporation OK 25.1 5.91

13 SNV Synovus Financial Corp. GA 28.3 4.84

14 STSA Sterling Financial Corporation WA 9.2 4.51

15 FHN First Horizon National Corporation TN 25.6 4.43

Note: Financial information as of September 30, 2011

(1) Includes publicly traded companies with assets between $5.0 – 50.0 billion as of September 30, 2011 (2) Population growth weighted by county (cumulative) Data Source: SNL Financial

Proactively Addressing Credit Environment 40

Structure

 Centralized underwriting and approval process

 Segregated work-out teams

 Highly skilled ORE disposition group

 Seasoned regional credit professionals

Process

 Continuous external loan review

 Intensive executive management involvement: o Weekly past due meetings o Weekly NPA/ORE meetings o Quarterly criticized watch loan review meetings o Quarterly pass commercial and CRE portfolio review meetings

 Internal loan review of new credit relationships

Policy

 Ongoing enhancements to credit policy

 Periodic updates to portfolio limits

Performing Classified Loans 41

(in millions) 4Q11 3Q11 2Q11 1Q11

4Q10 LOANS BY CATEGORY

Commercial (Sec. by RE):

Owner Occupied $ 79 $ 69

$ 72 $ 75 $ 86 Income

Producing 64 65 46 45 71

Total Comm (Sec. by RE) 143 134 118 120

157 Commercial Construction 18 26 31 35

90 Commercial & Industrial 16 25 17 16 17

TOTAL COMMERCIAL 177

185 166 171 264

Consumer / Installment 3 3

3 2 3

Residential Construction 72 76 74 81 159 Residential Mortgage 76 77 70 69

86 LOANS$ 328$ 341$ 313$ 323$ 512

Business Mix Loans (at quarter-end) 42

4Q11 vs. (in millions) 4Q11 3Q11 2Q11

1Q11 4Q10 4Q10 LOANS BY CATEGORY

Commercial (Sec. by RE):

Owner Occupied $ 1,111 $ 1,037 $ 1,014

$ 994 $ 980 $ 131 Income Producing

711 734 728 698 781 (70) Total Comm (Sec. by

RE) 1,822 1,771 1,742 1,692 1,761 61 Commercial

Construction 164 169 195 213 297 (133) Commercial & Industrial

428 429 428 431 441 (13)

Total Commercial 2,414 2,369 2,365

2,336 2,499 (85)

Residential Construction 448 474 502

550 695 (247)

Residential Mortgage 1,135 1,150 1,177 1,187 1,279 (144) Consumer / Installment 113 117 119 121 131

(18) TOTAL LOANS$ 4,110$ 4,110$ 4,163$ 4,194$ 4,604$ (494)

Loans – Markets Served (at quarter-end) 43

4Q11 vs. (in millions) 4Q11 3Q11 2Q11

1Q11 4Q10 4Q10 LOANS BY MARKET

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

$ 1,179 $ 1,310 $ (90) Gainesville MSA 265 272 275 282 312

(47) North Georgia 1,426 1,478 1,500 1,531 1,689

(263) Western North Carolina 597 607 626 640 702

(105) Coastal Georgia 346 316 325 312 335 11

East Tennessee

256 245 249 250 256 -

Total $ 4,110 $ 4,110 $ 4,163

$ 4,194 $ 4,604 $ (494)

Residential Construction – North Georgia 44

4Q11 vs. (in millions) 4Q11 3Q11 2Q11 1Q11

4Q10 4Q10

Land Loans

Developing Land $ 44 $ 51 $ 58

$ 62

$ 88 $ (44) Raw Land 26 25 25 27

40 (14) Lot Loans 118 124 129 131 159 (41)

Total 188 200 212 220

287 (99)

Construction Loans

Spec 12 15 18 25

31 (19) Sold 14 14 19 21

21 (7)

Total 26 29 37 46

52 (26) Total Res Construction $ 214$ 229$ 249$ 266$ 339$ (125)

Residential Construction – Atlanta MSA 45

4Q11 vs. (in millions) 4Q11 3Q11 2Q11 1Q11

4Q10 4Q10

Land Loans

Developing Land $ 17 $ 19 $ 20

$ 22 $ 30 $ (13) Raw Land 14 15 16 19 23 (9) Lot Loans 22 22 22 24 32 (10)

Total 53 56 58 65

85 (32)

Construction Loans

Spec 27 28 30 34

38 (11) Sold 6 8

9 11 10 (4)

Total 33 36 39 45

48 (15) Total Res Construction $ 86$ 92$ 97$ 110$ 133$ (47)

Business Mix Loans (at year-end) 46

(in millions) 2011 2010 2009 2008 2007

LOANS BY CATEGORY

Commercial (Sec. by RE) $ 1,822 $ 1,761

$ 1,779

$ 1,627 $ 1,476 Commercial Construction 164

297 363 500 527 Commercial & Industrial 428

441 390 410 418

Total Commercial 2,414 2,499 2,532

2,537 2,421

Residential Construction 448 695 1,050

1,479 1,829 Residential Mortgage 1,135 1,279 1,427 1,526 1,502

Consumer / Installment 113 131 142 163 177

TOTAL LOANS$ 4,110$ 4,604$ 5,151$ 5,705$ 5,929

Loans – Markets Served (at year-end) 47

(in millions) 2011 2010 2009 2008 2007 LOANS BY MARKET

Atlanta MSA $ 1,220 $ 1,310 $ 1,435 $ 1,706 $ 2,002 Gainesville MSA 265 312 390 420 399 North Georgia 1,426 1,689 1,884 2,040 2,060 Western North Carolina 597 702 772 810 806 Coastal Georgia 346 335 405 464 416 East Tennessee 256 256 265 265 246

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

Lending – Credit Summary 48

(in millions)

Legal lending limit $156

House lending limit 20

Project lending limit 12 Top 25 relationships 414

Regional credit review – Standard underwriting

NPAs by Loan Category, Market, and Activity 49

Credit Quality (1)

Fourth Quarter 2011 Third Quarter 2011

Second Quarter 2011

Non-performing Foreclosed Total Non-performing

Foreclosed Total Non-performing

ForeclosedTotal (in thousands) Loans Properties NPAs Loans Properties NPAs

Loans Properties NPAs NPAs BY CATEGORY

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

37,067 $ 21,998 $ 8,880 $ 30,878 $ 17,764 $ 6,796 $

24,560 Commercial construction 16,655 3,336 19,991

11,370 5,862

17,232 2,782 6,764 9,546 Commercial & industrial

34,613 - 34,613 53,009 - 53,009

1,998 - 1,998 Total commercial 78,590 13,081

91,671 86,377 14,742

101,119 22,544 13,560 36,104 Residential construction 25,523 12,851 38,374 34,472 21,561

56,033 22,643 24,968 47,611 Residential mortgage 22,358 6,927 29,285 22,671 7,960

30,631 24,809 9,056 33,865 Consumer / installment

1,008 - 1,008 964 - 964 1,069

- 1,069 Total NPAs$ 127,479 $ 32,859 $ 160,338 $

144,484 $ 44,263 $ 188,747 $ 71,065 $ 47,584 $ 118,649

Balance as a % of

Unpaid Principal 71.3% 35.9% 59.3% 77.8%

33.4% 59.3% 64.5% 32.6% 46.3%

NPAs BY MARKET

Atlanta MSA $ 14,480 $ 6,169 $ 20,649 $ 13,350 $

12,971 $ 26,321 $ 14,700 $ 11,239 $ 25,939 Gainesville MSA 2,069 3,760 5,829 5,311 2,495

7,806 4,505 3,174 7,679 North Georgia 88,600

15,136 103,736 105,078 17,467

122,545 28,117 21,278 49,395 Western North Carolina 15,100 5,365 20,465 13,243 7,941

21,184 15,153 8,953 24,106 Coastal Georgia 5,248

1,620 6,868 5,600 2,354

7,954 5,357 2,564 7,921 East Tennessee 1,982 809 2,791 1,902 1,035

2,937 3,233 376 3,609 Total NPAs$ 127,479 $ 32,859 $ 160,338 $ 144,484 $ 44,263 $ 188,747 $ 71,065 $ 47,584 $ 118,649

NPA ACTIVITY

Beginning Balance $ 144,484 $ 44,263 $ 188,747 $ 71,065 $ 47,584 $ 118,649 $ 83,769 $ 54,378 $ 138,147 Loans placed on non-accrual 45,675 - 45,675 103,365 - 103,365 35,911 - 35,911 Payments received (1,884) - (1,884) (3,995) - (3,995) (7,702) - (7,702) Loan charge-offs (44,757) - (44,757) (15,335) - (15,335) (18,888) - (18,888) Foreclosures (16,039) 16,039 - (10,616) 10,616 - (22,025) 22,025 -Capitalized costs - 141 141 - 818 818 - 20 20 Note / property sales - (20,651) (20,651) - (13,787) (13,787) - (28,939) (28,939) Write downs - (3,893) (3,893) - (1,772) (1,772) - (3,118) (3,118) Net gains (losses) on sales - (3,040) (3,040) - 804 804 - 3,218 3,218 Ending Balance$ 127,479 $ 32,859 $ 160,338 $ 144,484 $ 44,263 $ 188,747 $ 71,065 $ 47,584 $ 118,649

(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.

Net Charge-offs by Category and Market 50

Credit Quality (1)

Fourth Quarter 2011 Third Quarter 2011

Second Quarter 2011 (2) Net Charge-

Net Charge- Net Charge-Offs toOffs toOffs to NetAverageNetAverageNetAverage (in thousands)

Charge-Offs Loans (3) Charge-Offs Loans (3) Charge-Offs Loans (3)

NET CHARGE-OFFS BY CATEGORY

Commercial (sec.by RE) $ 4,962 1.09 % $ 2,192 .50 % $ 3,259 .76 % Commercial

construction 3,318 7.88 1,625 3.54

869 1.70 Commercial & industrial 18,940 17.47

420 .39

523 .49 Total commercial 27,220 4.51 4,237

.71 4,651 .79 Residential construction 12,090 10.36 6,381 5.19

6,629 5.04 Residential mortgage 5,887 2.04

6,110 2.09 4,589 1.55 Consumer / installment 427 1.47 818 2.75

614 2.04 Total$ 45,624 4.39$ 17,546 1.68$

16,483 1.58

NET CHARGE-OFFS BY MARKET

Atlanta MSA $ 4,195 1.37 %

$ 2,813 .94 %

$ 2,920 .99 % Gainesville MSA 2,572

3.84 1,804 2.64

2,318 3.36 North Georgia 34,970 9.46

8,124 2.16 6,575 1.72 Western North Carolina 3,180 2.10 3,608 2.31

3,522 2.21 Coastal Georgia 335 .41

709 .88 815 1.02 East Tennessee 372 .59 488 .78

333 .54 Total$ 45,624 4.39$ 17,546 1.68$ 16,483 1.58

(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.

(2) Includes charge-offs on loans related to United's previously announced asset disposition plan. Such charge-offs severely distorted charge off rates for the first and second quarters of 2011. A separate schedule has been included in this earnings release presenting the components of net charge-offs by loan category and geographic market for the first and second quarters of 2011.

(3) Annualized.

Net Charge-offs by Category and Market 51

Asset Disposition Plan as of March 31, 2011

Credit Quality - Net Charge-Offs First Quarter 2011 (1)

Asset Disposition Plan

Bulk Loan Sale (2) First Quarter Performing

Nonperforming Other Bulk Loan Foreclosure

Other Net2011 Net Charge-(in thousands) Loans Loans Sales (3)

Charge-Offs (4) Charge-Offs Offs NET CHARGE-OFFS BY CATEGORY

Commercial (sec. by RE) $ 29,451 $ 11,091

$ 3,318 $ 1,905 $ 2,842 $ 48,607 Commercial

construction 32,530 15,328 292 419

1,146 49,715 Commercial & industrial 365

2,303 859 - 513 4,040

Total commercial 62,346 28,722 4,469

2,324 4,501 102,362 Residential construction 43,018

23,459 3,325 11,693

10,643 92,138 Residential mortgage 13,917

14,263 1,676 1,538

4,989 36,383 Consumer / installment 86

168 30 24

383 691 Total$ 119,367 $ 66,612 $

9,500 $ 15,579 $ 20,516 $ 231,574

NET CHARGE-OFFS BY MARKET

Atlanta MSA $ 37,186 $ 8,545 $ 1,428 $

6,034 $ 3,296 $ 56,489 Gainesville MSA 3,563 2,442 957 700

954 8,616 North Georgia 57,969 47,699

2,508 6,585

8,544 123,305 Western North Carolina 11,138

4,743 2,415 1,402

6,749 26,447 Coastal Georgia 6,835 2,180

2,013 634

341 12,003 East Tennessee 2,676 1,003 179 224

632 4,714 Total$ 119,367 $ 66,612 $ 9,500 $ 15,579 $ 20,516 $ 231,574

(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) Charge-offs totaling $186 million were recognized on the bulk loan sale in the first quarter of 2011. The loans were transferred to the loans held for sale category in anticipation of the second quarter bulk loan sale that was completed on April 18, 2011.

(3) Losses on smaller bulk sale transactions completed during the first quarter of 2011.

(4) Loan charge-offs recognized in the first quarter of 2011 related to loans transferred to foreclosed properties. Such charge-offs were elevated in the first quarter as a result of the asset disposition plan, which called for aggressive write downs to expedite sales in the second and third quarters of 2011.

Credit Quality – Bulk Loan Sale Summary 52

as of March 31, 2011

Credit Quality - Bulk Loan Sale Summary (1)

Performing Loans Nonperforming Loans

Total Loans

Carrying Charge- Loans Held Carrying

Charge- Loans Held Carrying Charge-

Loans Held (in thousands) Amount (2) Offs (3) for Sale (4) Amount (2) Offs (3)

for Sale (4) Amount (2) Offs (3) for Sale (4) BY CATEGORY

Commercial (sec. by RE) $ 40,902 $ 29,451 $ 11,451 $ 17,202 $ 11,090 $

6,112 $ 58,104 $ 40,541 $ 17,563 Commercial construction 45,490 32,530 12,960 22,440 15,328 7,112 67,930

47,858 20,072 Commercial & industrial 504 365 139

3,397 2,302 1,095 3,901

2,667 1,234 Total commercial 86,896 62,346 24,550 43,039

28,720 14,319 129,935

91,066 38,869 Residential construction 59,747 43,018 16,729 35,508

23,459 12,049 95,255

66,477 28,778 Residential mortgage 19,342 13,917 5,425 21,716

14,262 7,454 41,058

28,179 12,879 Consumer / installment 120 86 34 238

169 69 358

255 103 Total$ 166,105 $ 119,367 $ 46,738 $ 100,501 $ 66,610 $

33,891 $ 266,606 $ 185,977 $ 80,629

BY MARKET

Atlanta MSA $ 51,647 $ 37,186 $ 14,461 $ 13,755 $ 8,545 $

5,210 $ 65,402 $ 45,731 $ 19,671 Gainesville MSA 4,949 3,563 1,386 3,695 2,442 1,253 8,644

6,005 2,639 North Georgia 80,831 57,969 22,862 70,900

47,698 23,202 151,731

105,667 46,064 Western North Carolina 15,468 11,138

4,330 7,228 4,743 2,485

22,696 15,881 6,815 Coastal Georgia 9,493 6,835

2,658 3,527 2,179 1,348

13,020 9,014 4,006 East Tennessee 3,717 2,676 1,041 1,396 1,003

393 5,113 3,679 1,434 Total$ 166,105

$ 119,367 $ 46,738 $ 100,501 $ 66,610 $ 33,891 $ 266,606

$ 185,977 $ 80,629

(1) This schedule presents a summary of classified loans included in the bulk loan sale transaction that closed on April 18, 2011.

(2) This column represents the book value, or carrying amount, of the loans prior to charge offs to mark loans to expected proceeds from sale.

(3) This column represents the charge-offs required to adjust the loan balances to the expected proceeds from the sale based on indicative bids received from prospective buyers, including principal payments received or committed advances made after the cutoff date through March 31, 2011 that are part of the settlement.

(4) This column represents the expected proceeds from the bulk sale based on indicative bids received from prospective buyers and equals the balance shown on the consolidated balance sheet as loans held for sale.

Loans / Deposits – Liquidity 53

(in millions) Variance 4Q11 3Q11 4Q10

vs 3Q11 vs 4Q10

Loans $ 4,110 $ 4,110 $ 4,604

$ - $ (494)

Core (DDA, MMDA, Savings) $ 2,902

$ 2,906

$ 2,636 $ (4) $ 266 Public Funds 884 635 725 249 159 CD's 2,133 2,254 2,431 (121) (298) Total Deposits

(excl Brokered)$ 5,919$ 5,795$ 5,792$ 124$ 127

Loan to Deposit Ratio 69% 71% 79%

Investment Securities:

Available for Sale $ 1,227 $ 1,173 $ 1,120

$ 54 $ 107 Held to Maturity 330 354 266

(24) 64 Total Investment Securities 1,557 1,527 1,386 30 171 Floating Rate CMD, Bonds 563 596 104 (33) 459

Total Securities Portfolio 2,120 2,123 1,490 (3) 630

Percent of Assets (Excludes Floaters) 22% 22% 19%

Commercial & Short-Term Paper $ 185 $ - $ 442 $ 185

$ (257) Floating Rate Securities 563 596 104 (33)

459 Excess Fed and Other Cash 140 230 112 (90)

28 Total Excess Liquidity$ 888$ 826$ 658$

62$ 230

Wholesale Borrowings - Liquidity 54

(in millions)

Unused Variance Capacity 4Q11 3Q11

4Q10 vs 3Q11 vs 4Q10

Wholesale Borrowings

Brokered Deposits $ 1,567 $ 179

$ 210

$ 677 $ (31) $ (498) FHLB

1,058 41 41 55 - (14) Fed Funds

50 - - - - -Other Wholesale

453 103 103 101 - 2

Total $ 3,128 $ 323 $ 354

$ 833 $ (31) $ (510)

Long-Term Debt

Sub-Debt $ 65 $ 65

$ 95 $ - $ (30) Trust Preferred Securities 55 55 55 -

Total Long-Term Debt $ 120 $ 120

$ 150 $ - $ (30)

Business Mix – Deposits (at quarter-end) 55

(in millions)

4Q11 vs. DEPOSITS BY CATEGORY 4Q11 3Q11

2Q11 1Q11 4Q10 4Q10

Demand & Now $ 1,674 $ 1,686 $ 1,620

$ 1,576

$ 1,573 $ 101 MMDA & Savings 1,228 1,220 1,174

1,149 1,063 165

Core Transaction Deposits 2,902 2,906

2,794

2,725 2,636 266

Time < $100,000 1,326 1,387 1,503

1,570 1,491 (165) Public Deposits 844

597 605 628 663 181

Total Core Deposits 5,072 4,890 4,902

4,923 4,790 282

Time > $100,000 807 867 936

946 940 (133) Public Deposits 40

38 44 44 62 (22)

Total Customer Deposits 5,919 5,795

5,882

5,913 5,792 127

Brokered Deposits 179 210 301

685 677 (498)

Total Deposits $ 6,098 $ 6,005 $ 6,183

$ 6,598 $ 6,469 $ (371)

Core Transaction Deposits 56

Geographic Diversity

4Q 10 4Q 11 Core Transactions / Total Deposits (%)

$ in millions 4Q11 4Q10

Eastern Tennessee

Atlanta MSA 51.0 % 50.3 % North Georgia 44.0 39.5

Coastal Georgia

Western NC 52.9 48.2 Gainesville MSA 56.8 51.2

Gainesville MSA

Coastal GA 43.2 39.5

Western North Carolina East TN 53.2 44.1

Total 49.0 % 45.5 %

North Georgia

Atlanta MSA

NPA Sale in 2Q10 57

Sold $103 Million NPA’s – With a $65 Million Capital Option and Warrant

 Completed sale on April 30, 2010

 Accelerates disposition of the more illiquid assets

CATEGORY (in millions) MARKETS (in millions)

Commercial $ 29.4 Atlanta $ 10.7 Commercial Construction 11.3 Gainesville 13.5 Residential Construction 62.4N. Georgia 50.0 Total$ 103.1Coastal Georgia 7.6 North Carolina 21.3

$ 103.1

NPA Sale – Fair Value Accounting 2Q10 58

Fair Value Accounting – Warrant / Option to Purchase Equity

 Increase to Capital Surplus - $39.8 million

 Pre-tax expense charge - $45.3 million; after-tax cost - $30.0 million

 GAAP Capital +$9.8million – Slight Negative to “Regulatory Capital” (DTA)

(in millions)

Income Capital Statement Surplus

Fair Value of Warrants / Option $ (39.8) $ 39.8 Loan Discount (3.5% to 5.8%) (4.5) Closing Costs (1.0) Total Charge to Expense (45.3) Tax Benefit 15.3 Impact on Net Loss$ (30.0)$ 39.8

Impact on GAAP Equity $ +9.8

Non-GAAP Reconciliation Tables 59

(in thousands except EPS)

Operating Earnings to GAAP Earnings Reconciliation

4Q11 3Q11 4Q10

Core net interest revenue reconciliation

Core net interest revenue $ 59,050 $ 59,281 $ 60,132 Taxable equivalent adjustment (423) (420) (497) Net interest revenue (GAAP)$ 58,627$ 58,861$ 59,635

Core fee revenue reconciliation

Core fee revenue $ 11,442 $ 11,309 $ 11,148 Securities gains, net 4 - -Gains from sales of low income housing tax credits 728 - 682 Hedge ineffectiveness gains 313 575 400 Mark to market on deferred compensation plan assets 180 (386) 212 Fee revenue (GAAP)$ 12,667$ 11,498$ 12,442

Core operating expense reconciliation

Core operating expense $ 43,843 $ 44,093 $ 44,104 Foreclosed property expense 9,302 2,813 20,602 Mark to market on deferred compensation plan liability 180 (386) 212 Reclassification of pension plan acturial gains and losses and unamortized prior service costs to other comprehensive income (2,245) - - Operating expense (GAAP)$ 51,080$ 46,520$ 64,918

Non-GAAP Reconciliation Tables 60

Operating Earnings to GAAP Earnings Reconciliation

4Q11 3Q11 4Q10

Net interest margin - pre credit reconciliation

Net interest margin - pre credit

3.81 % 3.84 % 4.05 % Effect of interest

reversals, lost interest, and carry costs of NPAs (.30)

(.29) (.47)

Net interest margin 3.51

3.55 3.58

Tangible common equity and tangible equity to tangible assets

reconciliation

Tangible common equity to tangible assets

5.38 % 5.65 % 5.22 %

Effect of preferred equity 2.78 2.77 2.42

Tangible equity to tangible assets 8.16

8.42 7.64

Effect of goodwill and other intangibles .12

.13 .16

Equity to assets (GAAP) 8.28 %

8.55 % 7.80 %

Tangible common equity to risk-weighted assets reconciliation

Tangible common equity to risk-weighted assets

8.22 % 8.52 % 5.64 %

Effect of preferred equity

4.27 4.33 3.53

Tangible equity to risk weighted assets

12.49

12.85 9.17

Effect of other comprehensive income (.03)

(.29) (.42)

Effect of trust preferred 1.18 1.19

1.06

Tier I capital ratio (Regulatory)

13.64 % 13.75 % 9.81 %

Analyst Coverage 61

FBR Capital Raymond James & Assoc.

(Market Perform - Jul 28, 2011) (Market Perform - Oct 31, 2011)

FIG Partners Sandler O'Neill & Partners

(Market Perform - Jan 6, 2012) (Hold, Jan 6, 2012)

Guggenheim Securities, LLC Stephens, Inc.

(Neutral - Jan 6, 2012) (Equal Weight - Jan 23, 2012)

Keefe, Bruyette & Woods SunTrust Robinson Humphrey

(Market Perform - Jan 6, 2012) (Neutral - Jan 6, 2012)

Macquarie Capital (USA)

(Neutral - Jan 6, 2012)

United Community Banks, Inc.

Investor Presentation

Fourth Quarter 2011