United Community Banks, Inc. Reports Earnings of $10.6 Million

United Community Banks, Inc. Reports Earnings of $10.6 Million for
Third Quarter 2012 
BLAIRSVILLE, GA -- (Marketwire) -- 10/25/12 --   United Community
Banks, Inc. (NASDAQ: UCBI) 


 
--  Net income of $10.6 million, or 13 cents per share
--  Loans up $18.6 million from second quarter, and $28 million from a
    year ago
--  Core transaction deposits up $72 million in third quarter, or 9
    percent annualized
--  Nonperforming assets decline $3.8 million, or 3 percent, from second
    quarter
--  Capital position sound

  
United Community Banks, Inc. (NASDAQ: UCBI) today reported net income
of $10.6 million, or 13 cents per share, for the third quarter of
2012; and net income of $28.6 million, or 34 cents per share,
year-to-date. The results for the third quarter and first nine months
of 2012 reflect modest loan growth, strong core transaction deposit
growth, increases in fee revenue and lower operating expenses
compared with the same periods a year ago. 
"United Community Banks is capitalizing on business opportunities,
strengthening its financial foundation and building long-term value
for customers, employees and shareholders," said Jimmy Tallent,
president and chief executive officer. "Our third quarter was
successful by nearly every measure, and represents the fifth
profitable quarter since our 2011 capital transaction and problem
asset disposition plan execution." 
Tallent continued, "We achieved both positive linked-quarter and
year-over-year loan growth. Our credit measures continue their
positive trend, with nonperforming assets down $3.8 million, or 3
percent, from the second quarter. At the same time we reduced
expenses and improved operating efficiency. We expect profitability
to continue from improved efficiency and further expense reductions,
as well as revenue enhancements from prudent growth of our business
mix of loans and deposits. We are gaining momentum and achieving
success." 
Tallent said, "Continued expansion of quality loan and deposit
relationships remains a top priority. Total loans were $4.138 billion
at quarter-end, up $18.6 million from the second quarter and up $28
million from a year earlier, reflecting the first annual loan growth
in over four years. We are strategically growing the portfolio by
focusing on full-s
ervice relationships with small-to-medium-sized
businesses. During the third quarter we added $218 million in new
loan commitments, of which $137 million were funded by quarter-end.
We also grew core transaction deposits by $72 million, contributing
to an especially strong $236 million total in the first nine months.
Annualized, the linked-quarter growth rate is 9 percent and
year-to-date is 11 percent." 
The third quarter provision for loan losses was $15.5 million, down
from $36 million a year ago and $18 million in the second quarter.
The third quarter 2011 provision for loan losses included $25 million
specifically related to United's largest lending relationship. Third
quarter net charge-offs were $20.6 million, compared to $18.9 million
in the second quarter of 2012 and $17.5 million in the third quarter
of 2011. Tallent added, "Net charge-offs of $20.6 million this
quarter included losses from the sale of $13 million in performing
classified loans that had $3.6 million in specific reserves at the
end of the second quarter. The losses on the sold loans account for
most of the difference between our provision for loan losses and
charge-offs this quarter."  
"Overall credit trends continued to improve this quarter with the
exception of a slight increase in net charge-offs," Tallent said.
"Most notably our performing classified loans, which are defined as
accruing substandard for regulatory purposes, decreased $41.1 million
in the third quarter, or 13 percent, to $282.5 million at
quarter-end. Nonperforming assets were $142 million in the third
quarter, down $3.8 million from the second quarter. Nonperforming
asset levels are impacted positively or negatively by the inflow of
new nonperforming loans and our ability to liquidate foreclosed
properties. In the third quarter, the inflow of new nonperforming
loans was $30.5 million compared with $29.4 million in the second
quarter and $103 million a year ago. Also, loans past due 30 to 89
days increased slightly from .65 percent of outstanding loans in the
second quarter to .68 percent in the third quarter." 
Taxable equivalent net interest revenue totaled $57.4 million, up
$535,000 from the second quarter of 2012 but down $1.91 million from
the third quarter of 2011. "The decrease from last year primarily
reflects lower yields on both our investment securities and loan
portfolios," stated Tallent. "Our investment securities interest
decline was due to reinvestment at record low rates, combined with
$179 million in lower average balances for the quarter. We continue
to look for reinvestment opportunities with a focus on floating-rate
securities to alleviate market and duration risk. Floating-rate
securities now account for 39 percent of the total investment
securities portfolio. The lower yield on our loan portfolio reflects
ongoing pricing pressure on new and reviewed loans." 
Taxable equivalent net interest margin of 3.60 percent was up 17
basis points from last quarter and 5 basis points from a year ago.
The increase in the third quarter was primarily due to our second
quarter balance sheet restructuring and the resulting smaller balance
sheet.  
Fee revenue was $13.8 million for the third quarter, compared to
$12.9 million for the second quarter and $11.5 million a year ago.
The increase from prior quarters was primarily due to the higher
level of mortgage loans closed and related mortgage fees. Mortgage
refinancing activity continued to accelerate through the third
quarter as mortgage rates fell to record low levels. Closed mortgage
loans totaled $108 million in the third quarter of 2012 compared with
$79.8 million in the second quarter and $57.4 million in the third
quarter of 2011. Service charges and fees on deposit accounts were
also up from a year ago due to new fees on low balance deposit
accounts that became effective in the first quarter of 2012, more
than offsetting lower overdraft fees. 
Other fee revenue of $2.56 million was up $930,000 from the second
quarter of 2012 and $579,000 from the third quarter of 2011,
primarily related to fees on our new customer derivatives product and
non-core items. In the third quarter of 2012, United earned $278,000
in net fees on customer derivative transactions through its recently
initiated back-to-back swap program on fixed rate commercial loans.
The non-core other fee revenue items in the third quarter included
$608,000 in hedge ineffectiveness gains, compared with $180,000 in
hedge ineffectiveness losses in the second quarter of 2012 and
$575,000 in hedge ineffectiveness gains in the third quarter of 2011.
Another non-core item relates to net gains or losses on United's
deferred compensation plan assets. In the third quarter of 2012,
United had $153,000 in gains on deferred compensation plan assets
compared with $386,000 in losses a year ago and $8,000 in losses in
the second quarter of 2012. Gains and losses on deferred compensation
plan assets included in fee revenue are directly offset by losses or
gains on United's deferred compensation plan liabilities that
increase or decrease salaries and employee benefit costs each
quarter. 
Operating expenses, excluding foreclosed property costs, were $41.1
million for the third quarter of 2012 compared to $42.5 million for
the second 
quarter and $43.7 million a year ago. Reduced staff levels
and related costs were the primary drivers of the decrease from both
periods, with 22 fewer staff positions compared to the second quarter
and 170 fewer from a year ago. Most other expense categories were
down as well, reflecting efforts to improve operating efficiency. 
Foreclosed property costs for the third quarter of 2012 were $3.7
million, compared to $1.9 million in the second quarter and $2.8
million a year ago. Third quarter 2012 costs included $962,000 for
maintenance and $2.7 million in net losses and write-downs. For the
second quarter, foreclosed property costs included $1.1 million in
maintenance and $739,000 in net losses and write-downs. Third quarter
2011 costs included $1.8 million in maintenance and $968,000 in net
losses and write-downs. The rise this quarter in net losses and
write-downs was due primarily to re-appraisals of properties held for
sale. 
As of September 30, 2012, capital ratios were as follows: Tier 1
Risk-Based of 14.3 percent; Tier 1 Leverage of 9.8 percent; and Total
Risk-Based of 15.8 percent. The Tier 1 Common Risk-Based ratio was
8.8 percent and the tangible equity-to-assets ratio was 8.7 percent. 
"We have made significant progress on all fronts to position us as
the customer service leader in financial services," Tallent said.
"This progress includes successfully recapitalizing the company,
aggressively addressing our credit challenges, and rebalancing our
loan portfolio for a more favorable risk profile going forward. We
have also made significant progress in building on our already strong
deposit base and improving operating efficiency." 
Tallent noted the recent addition of Lynn Harton, who brings to
United 29 years of executive banking experience, as chief operating
officer. "Lynn has earned a high level of respect in our industry and
we are delighted to have him on board," Tallent said. "We also
strengthened our board of directors earlier this year with the
addition of two experienced business, risk management and capital
markets professionals. With this added depth and expertise, coupled
with our exceptional bankers and their documented outstanding level
of customer service, we are well positioned with the right people,
strategies, products, and business model to be the financial services
leader in our markets." 
Conference Call
 United will hold a conference call today, Thursday,
October 25, 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 36390832.
The conference call also will be webcast and can be accessed by
selecting 'Calendar of Events' within the Investor Relations section
of United's website at www.ucbi.com. 
About United Community Banks, Inc.
 Headquartered in Blairsville,
United Community Banks, Inc. is the third-largest bank holding
company in Georgia. United has assets of $6.7 billion and operates 27
community banks with 104 banking offices throughout north Georgia,
the Atlanta region, coastal Georgia, western North Carolina and east
Tennessee. United specializes in providing personalized community
banking services to individuals and small to mid-size businesses and
also offers the convenience of 24-hour access through a network of
ATMs, telephone and on-line banking. United's common stock is listed
on the Nasdaq Global Select Market under the symbol UCBI. Additional
information may be found at United's website at www.ucbi.com. 
Safe Harbor
 This news release contains forward-looking statements,
as defined by federal securities laws, including statements about
United's financial outlook and business environment. These statements
are based on current expectations and are provided to assist in the
understanding of future financial performance. Such performance
involves risks and uncertainties that may cause actual results to
differ materially from those expressed or implied in any such
statements. For a discussion of some of the risks and other factors
that may cause such forward-looking statements to differ materially
from actual results, please refer to United's filings with the
Securities and Exchange Commission including its 2011 Annual Report
on Form 10-K under the sections entitled "Forward-Looking Statements"
and "Risk Factors." Forward-looking statements speak only as of the
date they are made, and we undertake no obligation to update or
revise forward-looking statements.  


 
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Selected Financial Information                                              
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                          2012                   2011       
                               -------------------------- ----------------- 
(in thousands, except per share  Third   Second    First   Fourth    Third  
data; taxable equivalent)       Quarter  Quarter  Quarter  Quarter  Quarter 
--------------------------------------- -------- -------- -------- -------- 
INCOME SUMMARY                                                              
Interest revenue               $ 65,978 $ 66,780 $ 70,221 $ 71,905 $ 74,543 
Interest expense                  8,607    9,944   11,357   12,855   15,262 
                               -------- -------- -------- -------- -------- 
    Net interest revenue         57,371   56,836   58,864   59,050   59,281 
Provision for loan losses        15,500   18,000   15,000   14,000   36,000 
Fee revenue                      13,764   12,867   15,379   12,667   11,498 
                               -------- -------- -------- -------- -------- 
    Total revenue                55,635   51,703   59,243   57,717   34,779 
Operating expenses               44,783   44,310   46,955   51,080   46,520 
                               -------- -------- -------- -------- -------- 
    Income (loss) before income                                             
     taxes                       10,852    7,393   12,288    6,637  (11,741)
Income tax expense (benefit)        284      894      760   (3,264)    (402)
                               -------- -------- -------- -------- -------- 
    Net income (loss)            10,568    6,499   11,528    9,901  (11,339)
Preferred dividends and                                                     
 discount accretion               3,041    3,032    3,030    3,025    3,019 
                               -------- -------- -------- -------- -------- 
  Net income (loss) available                                               
   to common shareholders      $  7,527 $  3,467 $  8,498 $  6,876 $(14,358)
                               ======== ======== ======== ======== ======== 
                                                                            
PERFORMANCE MEASURES                                                        
  Per common share:                                                         
    Diluted income (loss)      $    .13 $    .06 $    .15 $    .12 $   (.25)
    Book value                     6.75     6.61     6.68     6.62     6.77 
    Tangible book value (2)        6.64     6.48     6.54     6.47     6.61 
                                                                            
  Key performance ratios:                                                   
    Return on equity (1)(3)        7.43%    3.51%    8.78%    7.40%  (15.06)
    Return on assets (3)            .63      .37      .66      .56     (.64)
    Net interest margin (3)        3.60     3.43     3.53     3.51     3.55 
    Efficiency ratio              62.95    63.84    63.31    71.23    65.73 
    Equity to assets               8.75     8.33     8.19     8.28     8.55 
    Tangible equity to assets                                               
     (2)                           8.66     8.24     8.08     8.16     8.42 
    Tangible common equity to                                               
     assets (2)                    5.73     5.45     5.33     5.38     5.65 
    Tangible common equity to                                               
     risk- weighted assets (2)     8.44     8.37     8.21     8.25     8.52 
                                                                            
ASSET QUALITY *                                                             
  Non-performing loans         $115,001 $115,340 $129,704 $127,479 $144,484 
  Foreclosed properties          26,958   30,421   31,887   32,859   44,263 
                               -------- -------- -------- -------- -------- 
    Total non-performing assets                                             
     (NPAs)                     141,959  145,761  161,591  160,338  188,747 
  Allowance for loan losses     107,642  112,705  113,601  114,468  146,092 
  Net charge-offs                20,563   18,896   15,867   45,624   17,546 
  Allowance for loan losses to                                              
   loans                           2.60%    2.74%    2.75%    2.79%    3.55 
  Net charge-offs to average                                                
   loans (3)                       1.99     1.85     1.55     4.39     1.68 
  NPAs to loans and foreclosed                                              
   properties                      3.41     3.51     3.88     3.87     4.54 
  NPAs to total assets             2.12     2.16     2.25     2.30     2.74 
                                                                            
AVERAGE BALANCES ($ in                                                      
 millions)                                                                  
  Loans                        $  4,147 $  4,156 $  4,168 $  4,175 $  4,194 
  Investment securities           1,971    2,145    2,153    2,141    2,150 
  Earning assets                  6,346    6,665    6,700    6,688    6,630 
  Total assets                    6,648    6,993    7,045    7,019    7,000 
  Deposits                        5,789    5,853    6,028    6,115    6,061 
  Shareholders' equity              582      583      577      581      598 
  Common shares - basic                                                     
   (thousands)                   57,880   57,840   57,764   57,646   57,599 
  Common shares - diluted                                                   
   (thousands)                   57,880   57,840   57,764   57,646   57,599 
                                                                            
AT PERIOD END ($ in millions)                                               
  Loans *                      $  4,138 $  4,119 $  4,128 $  4,110 $  4,110 
  Investment securities           2,025    1,984    2,202    2,120    2,123 
  Total assets                    6,699    6,737    7,174    6,983    6,894 
  Deposits                        5,823    5,822    6,001    6,098    6,005 
  Shareholders' equity              585      576      580      575      583 
  Common shares outstanding                                                 
   (thousands)                   57,710   57,641   57,603   57,561   57,510 
                                                                            
(1) Net loss available to common shareholders, which is net of preferred    
 stock dividends, divided by average realized common equity, which excludes 
 accumulated other comprehensive income (loss). (2) Excludes effect of      
 acquisition related intangibles and associated amortization. (3)           
 Annualized.                                                                
                                                                            
* Excludes loans and foreclosed properties covered by loss sharing          
 agreements with the FDIC.                                                  
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Selected Financial Information                                              
                                                                            
----------------------------------------------------------------------------
                                         Third      For the Nine            
                                        Quarter     Months Ended       YTD  
                                         2012-                        2012- 
                       Third Quarter      2011     September 30,       2011 
                     -----------------          -------------------         
(in thousands, except                                                       
 per share data;                                                            
 taxable equivalent)   2012     2011     Change    2012      2011     Change
----------------------------- --------  ------- --------- ---------  -------
INCOME SUMMARY                                                              
Interest revenue     $ 65,978 $ 74,543          $ 202,979 $ 227,439         
Interest expense        8,607   15,262             29,908    52,820         
                     -------- --------          --------- ---------         
   Net interest                                                             
    revenue            57,371   59,281    (3) %   173,071   174,619    (1) %
Provision for loan                                                          
 losses                15,500   36,000             48,500   237,000         
Fee revenue            13,764   11,498    20       42,010    37,241    13   
                     -------- --------          --------- ---------         
   Total revenue       55,635   34,779            166,581   (25,140)        
Operating expenses     44,783   46,520    (4)     136,048   210,519   (35)  
                     -------- --------          --------- ---------         
   Income (loss)                                                            
    before income                                                           
    taxes              10,852  (11,741)            30,533  (235,659)        
Income tax expense                                                          
 (benefit)                284     (402)             1,938       988         
                     -------- --------          --------- ---------         
   Net income (loss)   10,568  (11,339)            28,595  (236,647)        
Preferred dividends                                                         
 and discount                                                               
 accretion              3,041    3,019              9,103     8,813         
                     -------- --------          --------- ---------         
Net income (loss)                                                           
 available to common                                                        
 shareholders        $  7,527 $(14,358)         $  19,492 $(245,460)        
                     ======== ========          ========= =========         
                                                                            
PERFORMANCE MEASURES                                                        
 Per common share:                                                          
   Diluted income                                                           
    (loss)           $    .13 $   (.25)         $     .34 $   (7.23)        
   Book value            6.75     6.77     -         6.75      6.77     -   
   Tangible book                                                            
    value (2)            6.64     6.61     -         6.64      6.61     -   
                                                                            
 Key performance                                                            
  ratios:                                                                   
   Return on equity                                                         
    (1)(3)               7.43%  (15.06)%             6.57%  (151.32)%       
   Return on assets                                                         
    (3)                   .63     (.64)               .53     (4.37)        
   Net interest                                                             
    margin (3)           3.60     3.55               3.52      3.42         
   Efficiency ratio     62.95    65.73              63.36     99.39         
   Equity to assets      8.75     8.55               8.42      7.58         
   Tangible equity to                                                       
    assets (2)           8.66     8.42               8.32      7.47         
   Tangible common                                                          
    equity to assets                                                        
    (2)                  5.73     5.65               5.50      3.23         
   Tangible common                                                          
    equity to risk-                                                         
    weighted assets                                                         
    (2)                  8.44     8.52               8.44      8.52         
                                                                            
ASSET QUALITY *                                                             
 Non-performing loans$115,001 $144,484          $ 115,001 $ 144,484         
 Foreclosed                                                                 
  properties           26,958   44,263             26,958    44,263         
                     -------- --------          --------- ---------         
   Total non-                                                               
    performing assets                                                       
    (NPAs)            141,959  188,747            141,959   188,747         
 Allowance for loan                                                         
  losses              107,642  146,092            107,642   146,092         
 Net charge-offs       20,563   17,546             55,326   265,603         
 Allowance for loan                                                         
  losses to loans        2.60%    3.55%              2.60%     3.55%        
 Net charge-offs to                                                         
  average loans (3)      1.99     1.68               1.80      8.28         
 NPAs to loans and                                                          
  foreclosed                                                                
  properties             3.41     4.54               3.41      4.54         
 NPAs to total assets    2.12     2.74               2.12      2.74         
                                                                            
AVERAGE BALANCES ($                                                         
 in millions)                                                               
 Loans               $  4,147 $  4,194    (1)   $   4,157 $   4,352    (4)  
 Investment                                                                 
  securities            1,971    2,150    (8)       2,089     1,952     7   
 Earning assets         6,346    6,630    (4)       6,569     6,817    (4)  
 Total assets           6,648    7,000    (5)       6,894     7,246    (5)  
 Deposits               5,789    6,061    (4)       5,890     6,329    (7)  
 Shareholders' equity     582      598    (3)         580       549     6   
 Common shares -                                                            
  basic (thousands)    57,880   57,599             57,826    33,973         
 Common shares -                                                            
  diluted (thousands)  57,880   57,599             57,826    33,973         
                                                                            
AT PERIOD END ($ in                                                         
 millions)                                                                  
 Loans *             $  4,138 $  4,110     1    $   4,138 $   4,110     1   
 Investment                                                                 
  securities            2,025    2,123    (5)       2,025     2,123    (5)  
 Total assets           6,699    6,894    (3)       6,699     6,894    (3)  
 Deposits               5,823    6,005    (3)       5,823     6,005    (3)  
 Shareholders' equity     585      583     -          585       583     -   
 Common shares                                                              
  outstanding                                                               
  (thousands)          57,710   57,510             57,710    57,510         
                                                                            
(1) Net loss ava
ilable to common shareholders, which is net of preferred    
 stock dividends, divided by average realized common equity, which excludes 
 accumulated other comprehensive income (loss). (2) Excludes effect of      
 acquisition related intangibles and associated amortization. (3)           
 Annualized.                                                                
                                                                            
* Excludes loans and foreclosed properties covered by loss sharing          
 agreements with the FDIC.                                                  
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Non-GAAP Performance Measures Reconciliation                                
Selected Financial Information                                              
                                                                            
----------------------------------------------------------------------------
                                                                            
                                         2012                   2011        
                              -------------------------- ------------------ 
(in thousands, except per                                                   
 share                          Third   Second    First   Fourth     Third  
data; taxable equivalent)      Quarter  Quarter  Quarter  Quarter   Quarter 
-------------------------------------- -------- -------- --------  -------- 
                                                                            
Interest revenue                                                            
 reconciliation                                                             
Interest revenue - taxable                                                  
 equivalent                   $ 65,978 $ 66,780 $ 70,221 $ 71,905  $ 74,543 
Taxable equivalent adjustment     (419)    (444)    (446)    (423)     (420)
                              -------- -------- -------- --------  -------- 
  Interest revenue (GAAP)     $ 65,559 $ 66,336 $ 69,775 $ 71,482  $ 74,123 
                              ======== ======== ======== ========  ======== 
                                                                            
Net interest revenue                                                        
 reconciliation                                                             
Net interest revenue - taxable                                              
 equivalent                   $ 57,371 $ 56,836 $ 58,864 $ 59,050  $ 59,281 
Taxable equivalent adjustment     (419)    (444)    (446)    (423)     (420)
                              -------- -------- -------- --------  -------- 
  Net interest revenue (GAAP) $ 56,952 $ 56,392 $ 58,418 $ 58,627  $ 58,861 
                              ======== ======== ======== ========  ======== 
                                                                            
Total revenue reconciliation                                                
Total operating revenue       $ 55,635 $ 51,703 $ 59,243 $ 57,717  $ 34,779 
Taxable equivalent adjustment     (419)    (444)    (446)    (423)     (420)
                              -------- -------- -------- --------  -------- 
  Total revenue (GAAP)        $ 55,216 $ 51,259 $ 58,797 $ 57,294  $ 34,359 
                              ======== ======== ======== ========  ======== 
                                                                            
Income (loss) before taxes                                                  
 reconciliation                                                             
Income (loss) before taxes    $ 10,852 $  7,393 $ 12,288 $  6,637  $(11,741)
Taxable equivalent adjustment     (419)    (444)    (446)    (423)     (420)
                              -------- -------- -------- --------  -------- 
  Income (loss) before taxes                                                
   (GAAP)                     $ 10,433 $  6,949 $ 11,842 $  6,214  $(12,161)
                              ======== ======== ======== ========  ======== 
                                                                            
Income tax (benefit) expense                                                
 reconciliation                                                             
Income tax (benefit) expense  $    284 $    894 $    760 $ (3,264) $   (402)
Taxable equivalent adjustment     (419)    (444)    (446)    (423)     (420)
                              -------- -------- -------- --------  -------- 
  Income tax (benefit) expense                                              
   (GAAP)                     $   (135)$    450 $    314 $ (3,687) $   (822)
                              ======== ======== ======== ========  ======== 
                                                                            
Book value per common share                                                 
 reconciliation                                                             
Tangible book value per common                                              
 share                        $   6.64 $   6.48 $   6.54 $   6.47  $   6.61 
Effect of goodwill and other                                                
 intangibles                       .11      .13      .14      .15       .16 
                              -------- -------- -------- --------  -------- 
  Book value per common share                                               
   (GAAP)                     $   6.75 $   6.61 $   6.68 $   6.62  $   6.77 
                              ======== ======== ======== ========  ======== 
                                                                            
Average equity to assets                                                    
 reconciliation                                                             
Tangible common equity to                                                   
 assets                           5.73%    5.45%    5.33%    5.38%     5.65%
Effect of preferred equity        2.93     2.79     2.75     2.78      2.77 
                              -------- -------- -------- --------  -------- 
  Tangible equity to assets       8.66     8.24     8.08     8.16      8.42 
Effect of goodwill and other                                                
 intangibles                       .09      .09      .11      .12       .13 
                              -------- -------- -------- --------  -------- 
  Equity to assets (GAAP)         8.75%    8.33%    8.19%    8.28%     8.55%
                              ======== ======== ======== ========  ======== 
                                                                            
Tangible common equity to risk-weighted assets                              
 reconciliation                                                             
Tangible common equity to                                                   
 risk-weighted assets             8.44%    8.37%    8.21%    8.25%     8.52%
Effect of other comprehensive                                               
 income                            .36      .28      .10     (.03)     (.29)
Effect of trust preferred         1.17     1.19     1.15     1.18      1.19 
Effect of preferred equity        4.29     4.35     4.23     4.29      4.33 
                              -------- -------- -------- --------  -------- 
  Tier I capital ratio                                                      
   (Regulatory)                  14.26%   14.19%   13.69%   13.69%    13.75%
                              ======== ======== ======== ========  ======== 
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Non-GAAP Performance Measures Reconciliation                                
Selected Financial Information                                              
                                                                            
----------------------------------------------------------------------------
                                                                            
                                                        For the Nine        
(in thousands, except per share                         Months Ended        
                                                 -------------------------- 
data; taxable equivalent)                            2012          2011     
-------------------------------------------------------------  ------------ 
                                                                            
Interest revenue reconciliation                                             
Interest revenue - taxable equivalent            $    202,979  $    227,439 
Taxable equivalent adjustment                          (1,309)       (1,284)
                                                 ------------  ------------ 
  Interest revenue (GAAP)                        $    201,670  $    226,155 
                                                 ============  ============ 
                                                                            
Net interest revenue reconciliation                                         
Net interest revenue - taxable equivalent        $    173,071  $    174,619 
Taxable equivalent adjustment                          (1,309)       (1,284)
                                                 ------------  ------------ 
  Net interest revenue (GAAP)                    $    171,762  $    173,335 
                                                 ============  ============ 
                                                                            
Total revenue reconciliation                                                
Total operating revenue                          $    166,581  $    (25,140)
Taxable equivalent adjustment                          (1,309)       (1,284)
                                                 ------------  ------------ 
  Total revenue (GAAP)                           $    165,272  $    (26,424)
                                                 ============  ============ 
                                                                            
Income (loss) before taxes reconciliation                                   
Income (loss) before taxes                       $     30,533  $   (235,659)
Taxable equivalent adjustment                          (1,309)       (1,284)
                                                 ------------  ------------ 
  Income (loss) before taxes (GAAP)              $     29,224  $   (236,943)
                                                 ============  ============ 
                                                                            
Income tax (benefit) expense reconciliation                                 
Income tax (benefit) expense                     $      1,938  $        988 
Taxable equivalent adjustment                          (1,309)       (1,284)
                                                 ------------  ------------ 
  Income tax (benefit) expense (GAAP)            $        629  $       (296)
                                                 ============  ============ 
                                                                            
Book value per common share reconciliation                                  
Tangible book value per common share             $       6.64  $       6.61 
Effect of goodwill and other intangibles                  .11           .16 
                                                 ------------  ------------ 
  Book value per common share (GAAP)             $       6.75  $       6.77 
                                                 ============  ============ 
                                                                            
Average equity to assets reconciliation                                     
Tangible common equity to assets                         5.50%         3.23%
Effect of preferred equity                               2.82          4.24 
                                                 ------------  ------------ 
  Tangible equity to assets                              8.32          7.47 
Effect of goodwill and other intangibles                  .10           .11 
                                                 ------------  ------------ 
  Equity to assets (GAAP)                                8.42%         7.58%
                                                 ============  ============ 
                                                                            
Tangible common equity to risk-weighted assets                              
 reconciliation                                                             
Tangible common equity to risk-weighted assets           8.44%         8.52%
Effect of other comprehensive income                      .36          (.29)
Effect of trust preferred                                1.17          1.19 
Effect of preferred equity                               4.29          4.33 
                                                 ------------  ------------ 
  Tier I capital ratio (Regulatory)                     14.26%        13.75%
                                                 ============  ============ 
                                                                            
                                                                            
                                                                            

 
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Loan Portfolio Composition at Period-End (1)                                
                                                                            
----------------------------------------------------------------------------
                                                                            
                                           2012                   2011      
                                -------------------------- -----------------
                                  Third   Second    First   Fourth    Third 
(in millions)                    Quarter  Quarter  Quarter  Quarter  Quarter
---------------------------------------- -------- -------- -------- --------
LOANS BY CATEGORY                                                           
Commercial (sec.by RE)          $  1,819 $  1,837 $  1,843 $  1,822 $  1,771
Commercial & industrial              460      450      440      428      429
Commercial construction              161      169      167      164      169
                                -------- -------- -------- -------- --------
  Total commercial                 2,440    2,456    2,450    2,414    2,369
Residential mortgage               1,174    1,128    1,131    1,135    1,150
Residential construction             389      409      436      448      474
Consumer installment                 135      126      111      113      117
                                -------- -------- -------- -------- --------
  Total loans                   $  4,138 $  4,119 $  4,128 $  4,110 $  4,110
                                ======== ======== ======== ======== ========
                                                                            
LOANS BY MARKET                                                             
North Georgia                   $  1,383 $  1,387 $  1,408 $  1,426 $  1,478
Atlanta MSA                        1,257    1,252    1,239    1,220    1,192
North Carolina                       579      576      588      597      607
Coastal Georgia                      380      369      366      346      316
Gainesville MSA                      256      259      262      265      272
East Tennessee                       283      276      265      256      245
                                -------- -------- -------- -------- --------
  Total loans                   $  4,138 $  4,119 $  4,128 $  4,110 $  4,110
                                ======== ======== ======== ======== ========
                                                                            
RESIDENTIAL CONSTRUCTION                                                    
Dirt loans                                                                  
  Acquisition & development     $     71 $     78 $     86 $     88 $     97
  Land loans                          41       45       57       61       60
  Lot loans                          196      203      204      207      216
                                -------- -------- -------- -------- --------
    Total                            308      326      347      356      373
                                -------- -------- -------- -------- --------
                                                                            
House loans                                                                 
  Spec                                44       49       57       59       64
  Sold                                37       34       32       33       37
                                -------- -------- -------- -------- --------
    Total                             81       83       89       92      101
                                -------- -------- -------- -------- --------
Total residential construction  $    389 $    409 $    436 $    448 $    474
                                ======== ======== ======== ======== ========
                                                                            
RESIDENTIAL CONSTRUCTION - ATLANTA MSA                                      
Dirt loans                                                                  
  Acquisition & development     $     14 $     14 $     17 $     17 $     19
  Land loans                           9        9       13       14       15
  Lot loans                           18       22       22       22       22
                                -------- -------- -------- -------- --------
    Total                             41       45       52       53       56
                                -------- -------- -------- -------- --------
                                                                            
House loans                                                                 
  Spec                                19       24       27       27       28
  Sold                                 8        7        7        6        8
                                -------- -------- -------- -------- --------
    Total                             27       31       34       33       36
                                -------- -------- -------- -------- --------
Total residential construction  $     68 $     76 $     86 $     86 $     92
                                ======== ======== ======== ======== ========
                                                                            
(1) Excludes total loans of $37.0 million, $41.5 million, $47.2 million,    
 $54.5 million and $57.8 million as of September 30, 2012, June 30, 2012,   
 March 31, 2012, December 31, 2011 and September 30, 2011, respectively,    
 that are covered by the loss-sharing agreement with the FDIC, related to   
 the acquisition of Southern Community Bank.                                
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Loan Portfolio Composition at Period-End (1)                                
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                  2012             Linked   
                                         ----------------------             
                                            Third      Second      Quarter  
(in millions)                              Quarter     Quarter     Change   
---------------------------------------------------  ----------  ---------- 
LOANS BY CATEGORY                                                           
Commercial (sec.by RE)                   $    1,819  $    1,837  $      (18)
Commercial & industrial                         460         450          10 
Commercial construction                         161         169          (8)
                                         ----------  ----------             
    Total commercial                          2,440       2,456         (16)
Residential mortgage                          1,174       1,128          46 
Residential construction                        389         409         (20)
Consumer installment                            135         126           9 
                                         ----------  ----------             
    Total loans                          $    4,138  $    4,119          19 
                                         ==========  ==========             
                                                                            
LOANS BY MARKET                                                             
North Georgia                            $    1,383  $    1,387          (4)
Atlanta MSA                                   1,257       1,252           5 
North Carolina                                  579         576           3 
Coastal Georgia                                 380         369          11 
Gainesville MSA                                 256         259          (3)
East Tennessee                                  283         276           7 
                                         ----------  ----------             
    Total loans                          $    4,138  $    4,119          19 
                                         ==========  ==========             
                                                                            
RESIDENTIAL CONSTRUCTION                                                    
Dirt loans                                                                  
  Acquisition & development              $       71  $       78          (7)
  Land loans                                     41          45          (4)
  Lot loans                                     196         203          (7)
                                         ----------  ----------             
    Total                                       308         326         (18)
                                         ----------  ----------             
                                                                            
House loans                                                                 
  Spec                                           44          49          (5)
  Sold                                           37          34           3 
                                         ----------  ----------             
    Total                                        81          83          (2)
                                         ----------  ----------             
Total residential construction           $      389  $      409         (20)
                                         ==========  ==========             
                                                                            
RESIDENTIAL CONSTRUCTION - ATLANTA MSA                                      
Dirt loans                                                                  
  Acquisition & development              $       14  $       14           - 
  Land loans                                      9           9           - 
  Lot loans                                      18          22          (4)
                                         ----------  ----------             
    Total                                        41          45          (4)
                                         ----------  ----------             
                                                                            
House loans                                                                 
  Spec                                           19          24          (5)
  Sold                                            8           7           1 
                                         ----------  ----------             
    Total                                        27          31          (4)
                                         ----------  ----------             
Total residential construction           $       68  $       76          (8)
                                         ==========  ==========             
                                                                            
(1) Excludes total loans of $37.0 million, $41.5 million, $47.2 million,    
 $54.5 million and $57.8 million as of September 30, 2012, June 30, 2012,   
 March 31, 2012, December 31, 2011 and September 30, 2011, respectively,    
 that are covered by the loss-sharing agreement with the FDIC, related to   
 the acquisition of Southern Community Bank.                                
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Loan Portfolio Composition at Period-End (1)                                
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                               2012       2011    Year over 
                                            ---------  ---------            
                                              Third      Third       Year   
(in millions)                                Quarter    Quarter     Change  
-----------------------------------------------------  ---------  --------- 
LOANS BY CATEGORY                                                           
Commercial (sec.by RE)                      $   1,819  $   1,771  $      48 
Commercial & industrial                           460        429         31 
Commercial construction                           161        169         (8)
                                            ---------  ---------            
    Total commercial                            2,440      2,369         71 
Residential mortgage                            1,174      1,150         24 
Residential construction                          389        474        (85)
Consumer installment                              135        117         18 
                                            ---------  ---------            
    Total loans                             $   4,138  $   4,110         28 
                                            =========  =========            
                                                                            
LOANS BY MARKET                                                             
North Georgia                               $   1,383  $   1,478        (95)
Atlanta MSA                                     1,257      1,192         65 
North Carolina                                    579        607        (28)
Coastal Georgia                                   380        316         64 
Gainesville MSA                                   256        272        (16)
East Tennessee                                    283        245         38 
                                            ---------  ---------            
    Total loans                             $   4,138  $   4,110         28 
                                            =========  =========            
                                                                            
RESIDENTIAL CONSTRUCTION                                                    
Dirt loans                                                                  
  Acquisition & development                 $      71  $      97        (26)
  Land loans                                       41         60        (19)
  Lot loans                                       196        216        (20)
                                            ---------  ---------            
    Total                                         308        373        (65)
                                            ---------  ---------            
                                                                            
House loans                                                                 
  Spec                                             44         64        (20)
  Sold                                             37         37          - 
                                            ---------  ---------            
    Total                                          81        101        (20)
                                            ---------  ---------            
Total residential construction              $     389  $     474        (85)
                                            =========  =========            
                                                                            
RESIDENTIAL CONSTRUCTION - ATLANTA MSA                                      
Dirt loans                                                                  
  Acquisition & development                 $      14  $      19         (5)
  Land loans                                        9         15         (6)
  Lot loans                                        18         22         (4)
                                            ---------  ---------            
    Total                                          41         56        (15)
                                            ---------  ---------            
                                                                            
House loans                                                                 
  Spec                                             19         28         (9)
  Sold                                              8          8          - 
                                            ---------  ---------            
    Total                                          27         36         (9)
                                            ---------  ---------            
Total residential construction              $      68  $      92        (24)
                                            =========  =========            
                                                                            
(1) Excludes total loans of $37.0 million, $41.5 million, $47.2 million,    
 $54.5 million and $57.8 million as of September 30, 2012, June 30, 2012,   
 March 31, 2012, December 31, 2011 and September 30, 2011, respectively,    
 that are covered by the loss-sharing agreement with the FDIC, related to   
 the acquisition of Southern Community Bank.                                
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Credit Quality(1)                                                           
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                 Third Quarter 2012         
                                         ---------------------------------- 
                                            Non-                            
                                         performing  Foreclosed     Total   
(in thousands)                              Loans    Properties     NPAs    
---------------------------------------------------  ----------  ---------- 
NPAs BY CATEGORY                                                            
Commercial (sec.by RE)                   $   25,896  $    8,767  $   34,663 
Commercial & industrial                      32,678           -      32,678 
Commercial construction                      18,590       3,121      21,711 
                                         ----------  ----------  ---------- 
  Total commercial                           77,164      11,888      89,052 
Residential mortgage                         13,996       6,031      20,027 
Residential construction                     22,935       9,039      31,974 
Consumer installment                            906           -         906 
                                         ----------  ----------  ---------- 
  Total NPAs                             $  115,001  $   26,958  $  141,959 
                                         ==========  ==========  ========== 
  Balance as a % of Unpaid Principal           68.8%       36.4%       58.8%
                                                                            
NPAs BY MARKET                                                              
North Georgia                            $   72,211  $   14,582  $   86,793 
Atlanta MSA                                  21,349       5,926      27,275 
North Carolina                                9,622       2,771      12,393 
Coastal Georgia                               6,822         864       7,686 
Gainesville MSA                                 840       1,328       2,168 
East Tennessee                                4,157       1,487       5,644 
                                         ----------  ----------  ---------- 
  Total NPAs                             $  115,001  $   26,958  $  141,959 
                                         ==========  ==========  ========== 
                                                                            
                                                                            
NPA ACTIVITY                                                                
Beginning Balance                        $  115,340  $   30,421  $  145,761 
Loans placed on non-accrual                  30,535           -      30,535 
Payments received                            (3,646)          -      (3,646)
Loan charge-offs                            (19,227)          -     (19,227)
Foreclosures                                 (8,001)      8,001           - 
Capitalized costs                                 -         102         102 
Note / property sales                             -      (8,822)     (8,822)
Write downs                                       -      (2,394)     (2,394)
Net gains (losses) on sales                       -        (350)       (350)
                                         ----------  ----------  ---------- 
  Ending Balance                         $  115,001  $   26,958  $  141,959 
                                         ==========  ==========  ========== 
                                                                            
(1) Excludes non-performing loans and foreclosed properties covered by the  
 loss-sharing agreement with the FDIC, related to the acquisition of        
 Southern Community Bank.                                                   
(2) Annualized.                                                             
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Credit Quality(1)                                                           
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                 Second Quarter 2012        
                                         ---------------------------------- 
                                            Non-                            
                                         performing  Foreclosed     Total   
(in thousands)                              Loans    Properties     NPAs    
---------------------------------------------------  ----------  ---------- 
NPAs BY CATEGORY                                                            
Commercial (sec.by RE)                   $   19,115  $   10,586  $   29,701 
Commercial & industrial                      34,982           -      34,982 
Commercial construction                      18,175       2,732      20,907 
                                         ----------  ----------  ---------- 
  Total commercial                           72,272      13,318      85,590 
Residential mortgage                         16,631       5,591      22,222 
Residential construction                     25,530      11,512      37,042 
Consumer installment                            907           -         907 
                                         ----------  ----------  ---------- 
  Total NPAs                             $  115,340  $   30,421  $  145,761 
                                         ==========  ==========  ========== 
  Balance as a % of Unpaid Principal           68.8%       39.3%       59.4%
                                                                            
NPAs BY MARKET                                                              
North Georgia                            $   77,332  $   13,546  $   90,878 
Atlanta MSA                                  17,593       8,651      26,244 
North Carolina                               10,657       3,287      13,944 
Coastal Georgia                               5,822         785       6,607 
Gainesville MSA                                 991       2,998       3,989 
East Tennessee                                2,945       1,154       4,099 
                                         ----------  ----------  ---------- 
  Total NPAs                             $  115,340  $   30,421  $  145,761 
                                         ==========  ==========  ========== 
                                                                            
                                                                            
NPA ACTIVITY                                                                
Beginning Balance                        $  129,704  $   31,887  $  161,591 
Loans placed on non-accrual                  29,364           -      29,364 
Payments received                           (15,027)          -     (15,027)
Loan charge-offs                            (19,382)          -     (19,382)
Foreclosures                                 (9,319)      9,319           - 
Capitalized costs                                 -         415         415 
Note / property sales                             -     (10,461)    (10,461)
Write downs                                       -      (1,008)     (1,008)
Net gains (losses) on sales                       -         269         269 
                                         ----------  ----------  ---------- 
  Ending Balance                         $  115,340  $   30,421  $  145,761 
                                         ==========  ==========  ========== 
                                                                            
(1) Excludes non-performing loans and foreclosed properties covered by the  
 loss-sharing agreement with the FDIC, related to the acquisition of        
 Southern Community Bank.                                                   
(2) Annualized.                                                             
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Credit Quality(1)                                                           
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                 First Quarter 2012         
                                         ---------------------------------- 
                                            Non-                            
                                         performing  Foreclosed     Total   
(in thousands)                              Loans    Properties     NPAs    
---------------------------------------------------  ----------  ---------- 
NPAs BY CATEGORY                                                            
Commercial (sec.by RE)                   $   26,081  $   10,808  $   36,889 
Commercial & industrial                      36,314           -      36,314 
Commercial construction                      23,319       3,266      26,585 
                                         ----------  ----------  ---------- 
  Total commercial                           85,714      14,074      99,788 
Residential mortgage                         18,741       5,882      24,623 
Residential construction                     24,341      11,931      36,272 
Consumer installment                            908           -         908 
                                         ----------  ----------  ---------- 
  Total NPAs                             $  129,704  $   31,887  $  161,591 
                                         ==========  ==========  ========== 
  Balance as a % of Unpaid Principal           70.6%       36.1%       59.4%
                                                                            
NPAs BY MARKET                                                              
North Georgia                            $   81,117  $   14,559  $   95,676 
Atlanta MSA                                  22,321       7,647      29,968 
North Carolina                               15,765       4,650      20,415 
Coastal Georgia                               5,622       1,268       6,890 
Gainesville MSA                               2,210       3,387       5,597 
East Tennessee                                2,669         376       3,045 
                                         ----------  ----------  ---------- 
  Total NPAs                             $  129,704  $   31,887  $  161,591 
                                         ==========  ==========  ========== 
                                                                            
                                                                            
NPA ACTIVITY                                                                
Beginning Balance                        $  127,479  $   32,859  $  160,338 
Loans placed on non-accrual                  32,437           -      32,437 
Payments received                            (5,945)          -      (5,945)
Loan charge-offs                            (14,733)          -     (14,733)
Foreclosures                                 (9,534)      9,534           - 
Capitalized costs                                 -         329         329 
Note / property sales                             -      (8,631)     (8,631)
Write downs                                       -      (2,111)     (2,111)
Net gains (losses) on sales                       -         (93)        (93)
                                         ----------  ----------  ---------- 
  Ending Balance                         $  129,704  $   31,887  $  161,591 
                                         ==========  ==========  ========== 
                                                                            
(1) Excludes non-performing loans and foreclosed properties covered by the  
 loss-sharing agreement with the FDIC, related to the acquisition of        
 Southern Community Bank.                                                   
(2) Annualized.                                                             
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Credit Quality(1)                                                           
                                                                            
---------------------- -----------------------------------------------------
                         Third Quarter     Second Quarter    First Quarter  
                              2012              2012              2012      
                       ----------------- ----------------- -----------------
                                   Net               Net               Net  
                                 Charge-           Charge-           Charge-
                          Net    Offs to    Net    Offs to    Net    Offs to
                        Charge-  Average  Charge-  Average  Charge-  Average
(in thousands)           Offs   Loans(2)   Offs   Loans(2)   Offs   Loans(2)
---------------------- -------- -------- -------- -------- -------- --------
NET CHARGE-OFFS BY CATEGORY                                                 
Commercial (sec.by RE) $  8,174    1.79% $  4,349     .95% $  3,697     .81%
Commercial &                                                                
 industrial                (259)   (.23)      775     .70       669     .62 
Commercial                                                                  
 construction             3,190    7.74        88     .21       334     .81 
                       --------          --------          --------         
  Total commercial       11,105    1.81     5,212     .86     4,700     .78 
Residential mortgage      3,527    1.23     3,862    1.38     5,375    1.91 
Residential                                                                 
 construction             5,676    5.69     9,563    9.14     5,314    4.84 
Consumer installment        255     .78       259     .88       478    1.72 
                       --------          --------          --------         
  Total                $ 20,563    1.99  $ 18,896    1.85  $ 15,867    1.55 
                       ========          ========          ========         
                                                                            
                                                                            
NET CHARGE-OFFS BY MARKET                                                   
North Georgia          $  6,451    1.84% $ 12,474    3.58% $  9,022    2.56%
Atlanta MSA               9,344    3.02     2,307     .75     2,729     .89 
North Carolina            1,674    1.15     3,634    2.52     1,679    1.14 
Coastal Georgia           2,486    2.67       211     .23     1,329    1.53 
Gainesville MSA             294     .45      (187)   (.29)      883    1.35 
East Tennessee              314     .45       457     .68       225     .34 
                       --------          --------          --------         
  Total                $ 20,563    1.99  $ 18,896    1.85  $ 15,867    1.55 
                       ========          ========          ========         
                                                                            
(1) Excludes non-performing loans and foreclosed properties covered by the  
 loss-sharing agreement with the FDIC, related to the acquisition of        
 Southern Community Bank.                                                   
(2) Annualized.                                                             
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Consolidated Statement of Operations                                        
 (Unaudited)                                                                
                                                                            
--------------------------------------------------------------------------- 
                                  Three Months Ended    Nine Months Ended   
                                    September 30,         September 30,     
                                --------------------- --------------------- 
(in thousands, except per share                                             
 data)                             2012       2011       2012       2011    
------------------------------------------ ---------- ---------- ---------- 
                                                                            
Interest revenue:                                                           
  Loans, including fees         $   53,868 $   59,294 $  163,805 $  181,359 
  Investment securities,                                                    
   including tax exempt of $225,                                            
   $244, $737 and $754              10,706     14,568     34,772     42,964 
  Federal funds sold, reverse                                               
   repurchase agreements,                                                   
   commercial paper and deposits                                            
   in banks                            985        261      3,093      1,832 
                                ---------- ---------- ---------- ---------- 
    Total interest revenue          65,559     74,123    201,670    226,155 
                                ---------- ---------- ---------- ---------- 
                                                                            
Interest expense:                                                           
  Deposits:                                                                 
    NOW                                447        831      1,587      3,191 
    Money market                       599      1,129      1,901      4,656 
    Savings                             37         52        112        193 
    Time                             4,612      9,086     15,844     31,813 
                                ---------- ---------- ---------- ---------- 
      Total deposit interest                                                
       expense                       5,695     11,098     19,444     39,853 
  Federal funds purchased,                                                  
   repurchase agreements and                                                
   other short-term borrowings         514      1,081      2,463      3,197 
  Federal Home Loan Bank                                                    
   advances                             26        441        882      1,601 
  Long-term debt                     2,372      2,642      7,119      8,169 
                                ---------- ---------- ---------- ---------- 
    Total interest expense           8,607     15,262     29,908     52,820 
                                ---------- ---------- ---------- ---------- 
    Net interest revenue            56,952     58,861    171,762    173,335 
  Provision for loan losses         15,500     36,000     48,500    237,000 
                                ---------- ---------- ---------- ---------- 
    Net interest revenue after                                              
     provision for loan losses      41,452     22,861    123,262    (63,665)
                                ---------- ---------- ---------- ---------- 
                                                                            
Fee revenue:                                                                
  Service charges and fees           7,696      7,534     23,295     21,862 
  Mortgage loan and other                                                   
   related fees                      2,800      1,148      7,221      3,594 
  Brokerage fees                       709        836      2,331      2,204 
  Securities gains, net                  -          -      7,047        838 
  Loss from prepayment of debt           -          -     (6,681)      (791)
  Other                              2,559      1,980      8,797      9,534 
                                ---------- ---------- ---------- ---------- 
    Total fee revenue               13,764     11,498     42,010     37,241 
                                ---------- ---------- ---------- ---------- 
    Total revenue                   55,216     34,359    165,272    (26,424)
                                ---------- ---------- ---------- ---------- 
                                                                            
Operating expenses:                                                         
  Salaries and employee benefits    22,918     25,262     72,440     76,622 
  Communications and equipment       3,254      3,284      9,620     10,006 
  Occupancy                          3,539      3,794     10,849     11,673 
  Advertising and public                                                    
   relations                           934      1,052      2,868      3,347 
  Postage, printing and supplies       954      1,036      2,849      3,239 
  Professional fees                  2,180      2,051      6,107      7,731 
  Foreclosed property                3,706      2,813      9,382     69,603 
  FDIC assessments and other                                                
   regulatory charges                2,537      2,603      7,592     11,660 
  Amortization of intangibles          728        748      2,190      2,270 
  Other                              4,033      3,877     12,151     14,368 
                                ---------- ---------- ---------- ---------- 
    Total operating expenses        44,783     46,520    136,048    210,519 
                                ---------- ---------- ---------- ---------- 
    Net income (loss) before                                                
     income taxes                   10,433    (12,161)    29,224   (236,943)
  Income tax (benefit) expense        (135)      (822)       629       (296)
                                ---------- ---------- ---------- ---------- 
    Net income (loss)               10,568    (11,339)    28,595   (236,647)
  Preferred stock dividends and                                             
   discount accretion                3,041      3,019      9,103      8,813 
                                ---------- ---------- ---------- ---------- 
    Net income (loss) available                                             
     to common shareholders     $    7,527 $  (14,358)$   19,492 $ (245,460)
                                ========== ========== ========== ========== 
                                                                            
Earnings (loss) per common share                                            
 - Basic                        $      .13 $     (.25)$      .34 $    (7.23)
Earnings (loss) per common share                                            
 - Diluted                             .13       (.25)       .34      (7.23)
Weighted average common shares                                              
 outstanding - Basic                57,880     57,599     57,826     33,973 
Weighted average common shares                                              
 outstanding - Diluted              57,880     57,599     57,826     33,973 
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Consolidated Balance Sheet                                                  
                                                                            
--------------------------------------------------------------------------- 
(in thousands, except share     September 30,   December 31,  September 30, 
 and per share data)                 2012           2011           2011     
--------------------------------------------------------------------------- 
                                 (unaudited)     (audited)     (unaudited)  
ASSETS                                                                      
 Cash and due from banks        $      57,270  $      53,807  $      57,780 
 Interest-bearing deposits in                                               
  banks                               119,355        139,609        241,440 
 Federal funds sold, reverse                                                
  repurchase agreements,                                                    
  commercial paper and short-                                               
  term investments                     45,000        185,000              - 
                                -------------  -------------  ------------- 
  Cash and cash equivalents           221,625        378,416        299,220 
 Securities available for sale      1,761,994      1,790,047      1,769,083 
 Securities held to maturity                                                
  (fair value $281,336, $343,531                                            
  and $369,020)                       262,648        330,203        353,739 
 Mortgage loans held for sale          30,571         23,881         22,050 
 Loans, net of unearned income      4,137,845      4,109,614      4,109,875 
  Less allowance for loan losses      107,642        114,468        146,092 
                                -------------  -------------  ------------- 
   Loans, net                       4,030,203      3,995,146      3,963,783 
 Assets covered by loss sharing                                             
  agreements with the FDIC             53,070         78,145         83,623 
 Premises and equipment, net          170,532        175,088        176,839 
 Bank owned life insurance             81,574         80,599         80,452 
 Accrued interest receivable           19,133         20,693         19,744 
 Goodwill and other intangible                                              
  assets                                6,237          8,428          9,175 
 Foreclosed property                   26,958         32,859         44,263 
 Other assets                          34,690         69,915         72,302 
                                -------------  -------------  ------------- 
  Total assets                  $   6,699,235  $   6,983,420  $   6,894,273 
                                =============  =============  ============= 
LIABILITIES AND SHAREHOLDERS'                                               
 EQUITY                                                                     
Liabilities:                                                                
 Deposits:                                                                  
  Demand                        $   1,210,703  $     992,109  $     966,452 
  NOW                               1,184,341      1,509,896      1,299,512 
  Money market                      1,126,312      1,038,778      1,030,370 
  Savings                             222,431        199,007        200,231 
  Time:                                                                     
   Less than $100,000               1,123,672      1,332,394      1,393,559 
   Greater than $100,000              731,766        847,152        905,183 
  Brokered                            223,474        178,647        209,998 
                                -------------  -------------  ------------- 
    Total deposits                  5,822,699      6,097,983      6,005,305 
 Federal funds purchased,                                                   
  repurchase agreements, and                                                
  other short-term borrowings          53,243        102,577        102,883 
 Federal Home Loan Bank advances       50,125         40,625         40,625 
 Long-term debt                       120,285        120,225        120,206 
 Unsettled securities purchases        24,319         10,325         10,585 
 Accrued expenses and other                                                 
  liabilities                          43,309         36,199         31,302 
                                -------------  -------------  ------------- 
  Total liabilities                 6,113,980      6,407,934      6,310,906 
                                -------------  -------------  ------------- 
Shareholders' equity:                                                       
 Preferred stock, $1 par value;                                             
  10,000,000 shares authorized;                                             
  Series A; $10 stated value;                                               
   21,700 shares issued and                                                 
   outstanding                            217            217            217 
  Series B; $1,000 stated value;                                            
   180,000 shares issued and                                                
   outstanding                        178,183        177,092        176,739 
  Series D; $1,000 stated value;                                            
   16,613 shares issued and                                                 
   outstanding                         16,613         16,613         16,613 
 Common stock, $1 par value;                                                
  100,000,000 shares authorized;                                            
  42,393,319, 41,647,100 and                                                
  41,595,692 shares issued and                                              
  outstanding                          42,393         41,647         41,596 
 Common stock, non-voting, $1                                               
  par value; 30,000,000 shares                                              
  authorized; 15,316,794,                                                   
  15,914,209 and 15,914,209                                                 
  shares issued and outstanding        15,317         15,914         15,914 
 Common stock issuable; 129,270,                                            
  93,681 and 88,501 shares              3,247          3,233          3,590 
 Capital surplus                    1,056,998      1,054,940      1,053,565 
 Accumulated deficit                 (711,369)      (730,861)      (737,736)
 Accumulated other comprehensive                                            
  (loss) income                       (16,344)        (3,309)        12,869 
                                -------------  -------------  ------------- 
  Total shareholders' equity          585,255        575,486        583,367 
                                -------------  -------------  ------------- 
  Total liabilities and                                                     
   shareholders' equity         $   6,699,235  $   6,983,420  $   6,894,273 
                                =============  =============  ============= 
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Average Consolidated Balance Sheets and Net Interest Analysis               
For the Three Months Ended September 30,                                    
                                                                            
----------------------------------------------------------------------------
                                                          2012              
                                           ---------------------------------
                                             Average                 Avg.   
(dollars in thousands, taxable equivalent)   Balance    Interest     Rate   
-----------------------------------------------------  ---------- ----------
Assets:                                                                     
Interest-earning assets:                                                    
  Loans, net of unearned income (1)(2)     $4,147,220  $   53,963      5.18%
  Taxable securities (3)                    1,947,780      10,481      2.15 
  Tax-exempt securities (1)(3)                 22,895         368      6.43 
  Federal funds sold and other interest-                                    
   earning assets                             227,950       1,166      2.05 
                                           ----------  ----------           
                                                                            
    Total interest-earning assets           6,345,845      65,978      4.14 
                                                       ----------           
Non-interest-earning assets:                                                
  Allowance for loan losses                  (112,034)                      
  Cash and due from banks                      51,705                       
  Premises and equipment                      171,608                       
  Other assets (3)                            190,439                       
                                           ----------                       
    Total assets                           $6,647,563                       
                                           ==========                       
                                                                            
Liabilities and Shareholders' Equity:                                       
Interest-bearing liabilities:                                               
  Interest-bearing deposits:                                                
    NOW                                    $1,176,087         447       .15 
    Money market                            1,157,655         599       .21 
    Savings                                   221,186          37       .07 
    Time less than $100,000                 1,144,103       2,260       .79 
    Time greater than $100,000                750,828       1,876       .99 
    Brokered time deposits                    176,114         476      1.08 
                                           ----------  ----------           
      Total interest-bearing deposits       4,625,973       5,695       .49 
                                           ----------  ----------           
                                                                            
  Federal funds purchased and other                                         
   borrowings                                  55,994         514      3.65 
  Federal Home Loan Bank advances              44,473          26       .23 
  Long-term debt                              120,276       2,372      7.85 
                                           ----------  ----------           
    Total borrowed funds                      220,743       2,912      5.25 
                                           ----------  ----------           
                                                                            
    Total interest-bearing liabilities      4,846,716       8,607       .71 
                                                       ----------           
Non-interest-bearing liabilities:                                           
  Non-interest-bearing deposits             1,163,471                       
  Other liabilities                            55,607                       
                                           ----------                       
    Total liabilities                       6,065,794                       
Shareholders' equity                          581,769                       
                                           ----------                       
    Total liabilities and shareholders'                                     
     equity                                $6,647,563                       
                                           ==========                       
                                                                            
Net interest revenue                                   $   57,371           
                                                       ==========           
Net interest-rate spread                                               3.43%
                                                                  ========= 
                                                                            
Net interest margin (4)                                                3.60%
                                                                  ========= 
                                                                            
(1)  Interest revenue on tax-exempt securities and loans has been increased 
     to reflect comparable interest on taxable securities and loans. The    
     rate used was 39%, reflecting the statutory federal income tax rate and
     the federal tax adjusted state income tax rate.                        
(2)  Included in the average balance of loans outstanding are loans where   
     the accrual of interest has been discontinued and loans that are held  
     for sale.                                                              
(3)  Securities available for sale are shown at amortized cost. Pretax      
     unrealized gains of $22.9 million in 2012 and $37.9 million in 2011 are
     included in other assets for purposes of this presentation.            
(4)  Net interest margin is taxable equivalent net-interest revenue divided 
     by average interest-earning assets.                                    
                                                                            
                                                                            
                                                                            

 
UNITED COMMUNITY BANKS, INC.                                                
Average Consolidated Balance Sheets and Net Interest Analysis               
For the Three Months Ended September 30,                                    
                                                                            
----------------------------------------------------------------------------
                                                          2011              
                                           ---------------------------------
                                             Average                 Avg.   
(dollars in thousands, taxable equivalent)   Balance    Interest     Rate   
-----------------------------------------------------  ---------- ----------
Assets:                                                                     
Interest-earning assets:                                                    
  Loans, net of unearned income (1)(2)     $4,193,951  $   59,394      5.62%
  Taxable securities (3)                    2,125,154      14,324      2.70 
  Tax-exempt securities (1)(3)                 24,675         399      6.47 
  Federal funds sold and other interest-                                    
   earning assets                             286,194         426       .60 
                                           ----------  ----------           
                                                                            
    Total interest-earning assets           6,629,974      74,543      4.47 
                                                       ----------           
  Non-interest-earning assets:                                              
  Allowance for loan losses                  (128,654)                      
  Cash and due from banks                      53,500                       
  Premises and equipment                      177,798                       
  Other assets (3)                            267,349                       
                                           ----------                       
    Total assets                           $6,999,967                       
                                           ==========                       
                                                                            
Liabilities and Shareholders' Equity:                                       
Interest-bearing liabilities:                                               
  Interest-bearing deposits:                                                
    NOW                                    $1,258,929         831       .26 
    Money market                            1,024,559       1,129       .44 
    Savings                                   199,793          52       .10 
    Time less than $100,000                 1,448,024       4,539      1.24 
    Time greater than $100,000                940,864       3,456      1.46 
    Brokered time deposits                    260,423       1,091      1.66 
                                           ----------  ----------           
      Total interest-bearing deposits       5,132,592      11,098       .86 
                                           ----------  ----------           
                                                                            
    Federal funds purchased and other                                       
     borrowings                               103,850       1,081      4.13 
    Federal Home Loan Bank advances            40,625         441      4.31 
    Long-term debt                            138,457       2,642      7.57 
                                           ----------  ----------           
      Total borrowed funds                    282,932       4,164      5.84 
                                           ----------  ----------           
                                                                            
      Total interest-bearing liabilities    5,415,524      15,262      1.12 
                                                       ----------           
Non-interest-bearing liabilities:                                           
    Non-interest-bearing deposits             928,788                       
    Other liabilities                          57,427                       
                                           ----------                       
      Total liabilities                     6,401,739                       
    Shareholders' equity                      598,228                       
                                           ----------                       
      Total liabilities and shareholders'                                   
       equity                              $6,999,967                       
                                           ==========                       
                                                                            
Net interest revenue                                   $   59,281           
                                                       ==========           
Net interest-rate spread                                               3.35%
                                                                  ========= 
                                                                            
Net interest margin (4)                                                3.55%
                                                                  ========= 
                                                                            
(1)  Interest revenue on tax-exempt securities and loans has been increased 
     to reflect comparable interest on taxable securities and loans. The    
     rate used was 39%, reflecting the statutory federal income tax rate and
     the federal tax adjusted state income tax rate.                        
(2)  Included in the average balance of loans outstanding are loans where   
     the accrual of interest has been discontinued and loans that are held  
     for sale.                                                              
(3)  Securities available for sale are shown at amortized cost. Pretax      
     unrealized gains of $22.9 million in 2012 and $37.9 million in 2011 are
     included in other assets for purposes of this presentation.            
(4)  Net interest margin is taxable equivalent net-interest revenue divided 
     by average interest-earning assets.                                    
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Average Consolidated Balance Sheets and Net Interest Analysis               
For the Nine Months Ended September 30,                                     
                                                                            
----------------------------------------------------------------------------
                                                          2012              
                                           ---------------------------------
                                             Average                 Avg.   
(dollars in thousands, taxable equivalent)   Balance    Interest     Rate   
-----------------------------------------------------  ---------- ----------
Assets:                                                                     
Interest-earning assets:                                                    
  Loans, net of unearned income (1)(2)     $4,157,057  $  164,101      5.27%
  Taxable securities (3)                    2,065,112      34,035      2.20 
  Tax-exempt securities (1)(3)                 24,187       1,207      6.65 
  Federal funds sold and other interest-                                    
   earning assets                             322,998       3,636      1.50 
                                           ----------  ----------           
                                                                            
    Total interest-earning assets           6,569,354     202,979      4.13 
                                                       ----------           
Non-interest-earning assets:                                                
  Allowance for loan losses                  (115,252)                      
  Cash and due from banks                      52,755                       
  Premises and equipment                      173,410                       
  Other assets (3)                            214,068                       
                                           ----------                       
    Total assets                           $6,894,335                       
                                           ==========                       
                                                                            
Liabilities and Shareholders' Equity:                                       
Interest-bearing liabilities:                                               
  Interest-bearing deposits:                                                
    NOW                                    $1,304,159       1,587       .16 
    Money market                            1,120,091       1,901       .23 
    Savings                                   214,280         112       .07 
    Time less than $100,000                 1,199,563       7,806       .87 
    Time greater than $100,000                783,370       6,354      1.08 
    Brokered time deposits                    162,682       1,684      1.38 
                                           ----------  ----------           
      Total interest-bearing deposits       4,784,145      19,444       .54 
                                           ----------  ----------           
                                                                            
    Federal funds purchased and other                                       
     borrowings                                85,022       2,463      3.87 
    Federal Home Loan Bank advances           153,539         882       .77 
    Long-term debt                            120,256       7,119      7.91 
                                           ----------  ----------           
      Total borrowed funds                    358,817      10,464      3.90 
                                           ----------  ----------           
                                                                            
      Total interest-bearing liabilities    5,142,962      29,908       .78 
                                                       ----------           
Non-interest-bearing liabilities:                                           
  Non-interest-bearing deposits             1,105,607                       
  Other liabilities                            65,390                       
                                           ----------                       
      Total liabilities                     6,313,959                       
Shareholders' equity                          580,376                       
                                           ----------                       
Total liabilities and shareholders' equity $6,894,335                       
                                           ==========                       
                                                                            
Net interest revenue                                   $  173,071           
                                                       ==========           
Net interest-rate spread                                               3.35%
                                                                  ========= 
                                                                            
Net interest margin (4)                                                3.52%
                                                                  ========= 
                                                                            
(1)  Interest revenue on tax-exempt securities and loans has been increased 
     to reflect comparable interest on taxable securities and loans. The    
     rate used was 39%, reflecting the statutory federal income tax rate and
     the federal tax adjusted state income tax rate.                        
(2)  Included in the average balance of loans outstanding are loans where   
     the accrual of interest has been discontinued and loans that are held  
     for sale.                                                              
(3)  Securities available for sale are shown at amortized cost. Pretax      
     unrealized gains of $24.1 million in 2012 and $32.4 million in 2011 are
     included in other assets for purposes of this presentation.            
(4)  Net interest margin is taxable equivalent net-interest revenue divided 
     by average interest-earning assets.                                    
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Average Consolidated Balance Sheets and Net Interest Analysis               
For the Nine Months Ended September 30,                                     
                                                                            
----------------------------------------------------------------------------
                                                          2011              
                                           ---------------------------------
                                             Average                 Avg.   
(dollars in thousands, taxable equivalent)   Balance    Interest     Rate   
-----------------------------------------------------  ---------- ----------
Assets:                                                                     
Interest-earning assets:                                                    
  Loans, net of unearned income (1)(2)     $4,351,524  $  181,422      5.57%
  Taxable securities (3)                    1,926,365      42,210      2.92 
  Tax-exempt securities (1)(3)                 25,178       1,234      6.53 
  Federal funds sold and other interest-                                    
   earning assets                             514,392       2,573       .67 
                                           ----------  ----------           
                                                                            
    Total interest-earning assets           6,817,459     227,439      4.46 
                                                       ----------           
Non-interest-earning assets:                                                
  Allowance for loan losses                  (145,689)                      
  Cash and due from banks                     102,251                       
  Premises and equipment                      178,694                       
  Other assets (3)                            293,386                       
                                           ----------                       
    Total assets                           $7,246,101                       
                                           ==========                       
                                                                            
Liabilities and Shareholders' Equity:                                       
Interest-bearing liabilities:                                               
  Interest-bearing deposits:                                                
    NOW                                    $1,313,752       3,191       .32 
    Money market                              977,863       4,656       .64 
    Savings                                   194,433         193       .13 
    Time less than $100,000                 1,509,753      14,980      1.33 
    Time greater than $100,000                973,335      11,480      1.58 
    Brokered time deposits                    475,687       5,353      1.50 
                                           ----------  ----------           
      Total interest-bearing deposits       5,444,823      39,853       .98 
                                           ----------  ----------           
                                                                            
  Federal funds purchased and other                                         
   borrowings                                 102,711       3,197      4.16 
  Federal Home Loan Bank advances              49,442       1,601      4.33 
  Long-term debt                              146,221       8,169      7.47 
                                           ----------  ----------           
      Total borrowed funds                    298,374      12,967      5.81 
                                           ----------  ----------           
                                                                            
      Total interest-bearing liabilities    5,743,197      52,820      1.23 
                                                       ----------           
Non-interest-bearing liabilities:                                           
  Non-interest-bearing deposits               884,417                       
  Other liabilities                            69,131                       
                                           ----------                       
      Total liabilities                     6,696,745                       
Shareholders' equity                          549,356                       
                                           ----------                       
      Total liabilities and shareholders'                                   
       equity                              $7,246,101                       
                                           ==========                       
                                                                            
Net interest revenue                                   $  174,619           
                                                       ==========           
Net interest-rate spread                                               3.23%
                                                                  ========= 
                                                                            
Net interest margin (4)                                                3.42%
                                                                  ========= 
                                                                            
     Interest revenue on tax-exempt securities and loans has been increased 
     to reflect comparable interest on taxable securities and loans. The    
(1)  rate used was 39%, reflecting the statutory federal income tax rate and
     the federal tax adjusted state income tax rate.                        
     Included in the average balance of loans outstanding are loans where   
(2)  the accrual of interest has been discontinued and loans that are held  
     for sale.                                                              
     Securities available for sale are shown at amortized cost. Pretax      
(3)  unrealized gains of $24.1 million in 2012 and $32.4 million in 2011 are
     included in other assets for purposes of this presentation.            
     Net interest margin is taxable equivalent net-interest revenue divided 
(4)  by average interest-earning assets.                                    

  
For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
Rex_Schuette@ucbi.com