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

United Community Banks, Inc. Reports Earnings of $9.3 Million for Fourth 
Quarter 2012 
BLAIRSVILLE, GA -- (Marketwire) -- 01/24/13 --  United Community
Banks, Inc. (NASDAQ: UCBI) 


 
--  Net income of $9.3 million, or 11 cents per share
--  Loans up $37.2 million from third quarter, or 4 percent annualized
--  Core transaction deposits up $75.2 million in fourth quarter, or 10
    percent annualized
--  Solid improvement in credit quality

  
United Community Banks, Inc. (NASDAQ: UCBI) today reported net income
of $9.3 million, or 11 cents per share, for the fourth quarter of
2012, and net income of $37.9 million, or 44 cents per share, for the
year.  The results for the fourth quarter and year reflect modest
loan growth, improved credit quality, strong core transaction deposit
growth, an increase in fee revenue, and lower operating expenses
compared with the same periods a year ago. 
"We had another positive quarter and a very productive year in
rebuilding our core earnings and positioning United for future
growth," said Jimmy Tallent, president and chief executive officer. 
"In the fourth quarter we achieved meaningful improvement in every
key measure of credit quality, and we continued to build strong
momentum in growing new customer loan and deposit relationships." 
Tallent continued, "We grew our loan portfolio by $37 million from
the third quarter, for an annualized rate of 4 percent.  That was no
easy accomplishment in the current business environment. 
Additionally, our core transaction deposits increased by $75 million,
or 10 percent annualized.  At the same time we lowered nonperforming
assets by 10 percent, to $128 million. This total includes our lowest
level of foreclosed properties since 2007, at $18 million.  Even more
encouraging was the significant drop in net charge-offs to $14.5
million, the lowest level since the second quarter of 2008." 
"This was a good way to end a successful year," Tallent stated. 
"During 2012, we achieved $65 million in net new loan growth and we
increased core transaction deposits by $311 million or 11 percent. 
Continued growth in quality loan and deposit relationships remains a
top priority." 
The fourth quarter provision for loan losses was $14 million, equal
to a year ago and down $1.5 million from the 
third quarter.  Fourth
quarter net charge-offs were $14.5 million compared to $20.6 million
in the third quarter and $45.6 million in the fourth quarter of 2011. 
"The inflow of nonperforming loans in the fourth quarter was $20
million, the lowest quarterly total since the beginning of the
economic cycle," Tallent said.  "We expect this trend will lead to
lower quarterly charge-offs and loan loss provisions during 2013." 
Taxable equivalent net interest revenue totaled $56.0 million, down
$1.34 million from the third quarter of 2012 and down $3.02 million
from the fourth quarter of 2011.  "The decrease primarily reflects
lower yields on our investment securities and loan portfolios, as
well as the overlap of new senior debt issued at the beginning of the
fourth quarter that was used to repay subordinated debt that matured
late in the fourth quarter," said Tallent. 
"The lower yield on our loan portfolio reflects ongoing pricing
pressure on new and renewed loans," Tallent continued.  "Our
investment securities interest decline was due to reinvestment of
cash flows at record low rates.  We continue to look for reinvestment
opportunities with a focus on floating-rate securities to alleviate
market and duration risk.  Floating-rate securities, which account
for 38 percent of the total investment securities portfolio, improve
our interest sensitivity position by reducing our exposure to rising
interest rates," Tallent continued. 
The taxable equivalent net interest margin was down 16 basis points
from the third quarter and 7 basis points from a year ago to 3.44
percent.  "Five of the 16 basis point linked-quarter margin decline
was due to the overlap in the replacement of maturing subordinated
debt," stated Tallent. "Another five basis points was due to the
scheduled repricing of certain corporate bonds from a fixed to
floating rate.  These floating rate securities were part of a planned
strategy to maintain a neutral to slightly asset-sensitive interest
rate position.  The balance of the decrease was due to a new loan
product offering with a low introductory rate that will reprice in
2013 and continued loan pricing pressures." 
Fee revenue was $14.8 million for the fourth quarter, compared to
$13.8 million for the third quarter and $12.7 million a year ago. 
The increase from prior quarters was primarily due to the higher
level of mortgage loans closed and related fees.  Mortgage
refinancing activity continued at a strong pace through the fourth
quarter as mortgage rates remained at record low levels.  Closed
mortgage loans totaled $100 million in the fourth quarter compared
with $108 million in the third quarter and $78.8 million in the
fourth quarter of 2011.  Service charges and fees on deposit accounts
were also up from a year ago due to new fees on low balance deposit
accounts that became effective in the first quarter of 2012, and to
higher debit card interchange fees. 
Other fee revenue was down $217,000 from the third quarter of 2012
and $466,000 from the fourth quarter of 2011 to $2.34 million.  The
decrease was primarily due to lower hedge ineffectiveness gains and
to a fourth quarter 2011 gain of $728,000 from the sale of state
low-income housing tax credits. 
Operating expenses, excluding foreclosed property costs, were $42.1
million for the fourth quarter of 2012 compared to $41.1 million for
the third quarter and $41.8 million a year ago.  The increase from a
year ago was due primarily to a $2.24 million, one-time credit
adjustment in the fourth quarter of 2011 related to our retirement
plan that reduced salary and employee benefit expense in that period.
 Excluding the foreclosed property costs and the one-time credit
adjustment, quarterly operating expenses were down $1.9 million from
a year ago.  Reduced staff levels and related costs were the primary
drivers of the decrease. United had 164 fewer staff positions in the
fourth quarter of 2012 compared to the fourth quarter of 2011. 
Foreclosed property costs for the fourth quarter of 2012 were $4.6
million, compared to $3.7 million in the third quarter and $9.3
million a year ago.  Fourth quarter 2012 costs included $1.4 million
for maintenance and $3.2 million in net losses and write-downs.  For
the third quarter of 2012, foreclosed property costs included
$962,000 in maintenance and $2.7 million in net losses and
write-downs.  Fourth quarter 2011 foreclosed property costs included
$2.4 million in maintenance and $6.9 million in net losses and
write-downs. 
As of December 31, 2012, capital ratios were as follows: Tier 1
Risk-Based of 14.2 percent; Tier 1 Leverage of 9.7 percent; Total
Risk-Based of 15.8 percent; Tier 1 Common Risk-Based of 8.9 percent;
and, Tangible Equity-to-Assets of 8.6 percent. 
"By every measure, 2012 has been a year of significant improvement
for United Community Banks," Tallent said.  "Reflecting on all that
this banking team has accomplished in restoring credit quality,
regaining momentum in new business growth, and improving operating
efficiency, I cannot help but look forward with excitement. 
"We know that challenges remain as the economy continues to be
sluggish and rates are at record lows," Tallent continued.  "At the
same time we expect credit measures to continue to improve, and th
is
will translate into lower levels of charge-offs and provisioning. We
see opportunities to grow our mortgage and advisory services
businesses, and will look to expand both.  We believe we can grow our
loan portfolio and we will accomplish this by continuing to add
lenders in key markets, as well as expanding into new markets, like
Greenville, South Carolina, where we recently opened a loan
production office." 
Tallent concluded, "We constantly evaluate and find ways to improve
this company -- to make it more productive and efficient while
continuing to deliver the best customer service in the industry. 
Ultimately we are committed to delivering superior financial results
on behalf of our shareholders.  We are committed, we are up to the
challenge, and we look ahead with determination and optimism." 
Conference Call 
United will hold a conference call today, Thursday, January 24, 2013,
at 11 a.m. ET to discuss the contents of this news release and to
share business highlights for the quarter.  To access the call, dial
(877) 380-5665 and use the conference number 86024021.  The
conference call also will be webcast and can be accessed by selecting
'Calendar of Events' within the Investor Relations section of
United's website at www.ucbi.com.  
About United Community Banks, Inc. 
Headquartered in Blairsville, United Community Banks, Inc. is the
third-largest bank holding company in Georgia. United has assets of
$6.8 billion and operates 105 banking offices throughout north
Georgia, the Atlanta region, coastal Georgia, western North Carolina,
 east Tennessee and northwest South Carolina.  United specializes in
providing personalized community banking services to individuals and
small to mid-size businesses and also offers the convenience of
24-hour access through a network of ATMs, telephone and on-line
banking. United's common stock is listed on the Nasdaq Global Select
Market under the symbol UCBI.  Additional information may be found at
United's website at www.ucbi.com.  
Safe Harbor 
This news release contains forward-looking statements, as defined by
federal securities laws, including statements about United's
financial outlook and business environment.  These statements are
based on current expectations and are provided to assist in the
understanding of future financial performance. Such performance
involves risks and uncertainties that may cause actual results to
differ materially from those expressed or implied in any such
statements.  For a discussion of some of the risks and other factors
that may cause such forward-looking statements to differ materially
from actual results, please refer to United's filings with the
Securities and Exchange Commission including its 2011 Annual Report
on Form 10-K under the sections entitled "Forward-Looking Statements"
and "Risk Factors." Forward-looking statements speak only as of the
date they are made, and we undertake no obligation to update or
revise forward-looking statements. 


 
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Selected Financial Information                                              
                                                                            
                           --------------------------------------  -------- 
                                                                            
                                            2012                     2011   
                           --------------------------------------  -------- 
(in thousands, except per                                                   
 share data; taxable data; Fourth     Third    Second     First    Fourth  
 taxable equivalent)       Quarter   Quarter   Quarter   Quarter   Quarter 
                           --------  --------  --------  --------  -------- 
INCOME SUMMARY                                                              
Interest revenue           $ 64,450  $ 65,978  $ 66,780  $ 70,221  $ 71,905 
Interest expense              8,422     8,607     9,944    11,357    12,855 
                           --------  --------  --------  --------  -------- 
  Net interest revenue       56,028    57,371    56,836    58,864    59,050 
Provision for loan losses    14,000    15,500    18,000    15,000    14,000 
Fee revenue                  14,761    13,764    12,867    15,379    12,667 
                           --------  --------  --------  --------  -------- 
  Total revenue              56,789    55,635    51,703    59,243    57,717 
Operating expenses           46,726    44,783    44,310    46,955    51,080 
                           --------  --------  --------  --------  -------- 
  Income (loss) before                                                      
   income taxes              10,063    10,852     7,393    12,288     6,637 
Income tax expense                                                          
 (benefit)                      802       284       894       760    (3,264)
                           --------  --------  --------  --------  -------- 
  Net income (loss)           9,261    10,568     6,499    11,528     9,901 
Preferred dividends and                                                     
 discount accretion           3,045     3,041     3,032     3,030     3,025 
                           --------  --------  --------  --------  -------- 
Net income (loss)                                                           
 available to common                                                        
 shareholders              $  6,216  $  7,527  $  3,467  $  8,498  $  6,876 
                           ========  ========  ========  ========  ======== 
                                                                            
PERFORMANCE MEASURES                                                        
  Per common share:                                                         
    Diluted income (loss)  $    .11  $    .13  $    .06  $    .15  $    .12 
    Book value                 6.74      6.75      6.61      6.68      6.62 
    Tangible book value                                                     
     (2)                       6.64      6.64      6.48      6.54      6.47 
                                                                            
  Key performance ratios:                                                   
    Return on equity                                                        
     (1)(3)                    6.03%     7.43%     3.51%     8.78%     7.40%
    Return on assets (3)        .54       .63       .37       .66       .56 
    Net interest margin                                                     
     (3)                       3.44      3.60      3.43      3.53      3.51 
    Efficiency ratio          66.04     62.95     63.84     63.31     71.23 
    Equity to assets           8.63      8.75      8.33      8.19      8.28 
    Tangible equity to                                                      
     assets (2)                8.55      8.66      8.24      8.08      8.16 
    Tangible common equity                                                  
     to assets (2)             5.6
7      5.73      5.45      5.33      5.38 
    Tangible common equity                                                  
     to risk- weighted                                                      
     assets (2)                8.33      8.44      8.37      8.21      8.25 
                                                                            
ASSET QUALITY *                                                             
  Non-performing loans     $109,894  $115,001  $115,340  $129,704  $127,479 
  Foreclosed properties      18,264    26,958    30,421    31,887    32,859 
                           --------  --------  --------  --------  -------- 
    Total non-performing                                                    
     assets (NPAs)          128,158   141,959   145,761   161,591   160,338 
  Allowance for loan                                                        
   losses                   107,137   107,642   112,705   113,601   114,468 
  Net charge-offs            14,505    20,563    18,896    15,867    45,624 
  Allowance for loan                                                        
   losses to loans             2.57%     2.60%     2.74%     2.75%     2.79%
  Net charge-offs to                                                        
   average loans (3)           1.39      1.99      1.85      1.55      4.39 
  NPAs to loans and                                                         
   foreclosed properties       3.06      3.41      3.51      3.88      3.87 
  NPAs to total assets         1.88      2.12      2.16      2.25      2.30 
                                                                            
AVERAGE BALANCES($ in                                                       
 millions)                                                                  
  Loans                    $  4,191  $  4,147  $  4,156  $  4,168  $  4,175 
  Investment securities       2,088     1,971     2,145     2,153     2,141 
  Earning assets              6,482     6,346     6,665     6,700     6,688 
  Total assets                6,778     6,648     6,993     7,045     7,019 
  Deposits                    5,873     5,789     5,853     6,028     6,115 
  Shareholders' equity          585       582       583       577       581 
  Common shares - basic                                                     
   (thousands)               57,971    57,880    57,840    57,764    57,646 
  Common shares - diluted                                                   
   (thousands)               57,971    57,880    57,840    57,764    57,646 
                                                                            
AT PERIOD END($ in                                                          
 millions)                                                                  
  Loans *                  $  4,175  $  4,138  $  4,119  $  4,128  $  4,110 
  Investment securities       2,079     2,025     1,984     2,202     2,120 
  Total assets                6,802     6,699     6,737     7,174     6,983 
  Deposits                    5,952     5,823     5,822     6,001     6,098 
  Shareholders' equity          585       585       576       580       575 
  Common shares                                                             
   outstanding (thousands)   57,741    57,710    57,641    57,603    57,561 
                                                                            
(1) Net loss available to common shareholders, which is net of preferred    
 stock dividends, divided by average realized common equity, which excludes 
 accumulated other comprehensive income (loss). (2) Excludes effect of      
 acquisition related intangibles and associated amortization. (3)           
 Annualized.                                                                
                                                                            
* Excludes loans and foreclosed properties covered by loss sharing          
 agreements with the FDIC.                                                  
                                                                            
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Selected Financial Information                                              
                                                                            
                  -------------------------------------------------------- 
                                      Fourth                              
(in thousands,      2012      2011    Quarter    For the Twelve       YTD  
 except per share --------  --------   2012-     Months Ended        2012- 
 data; taxable     Fourth    Fourth     2011   ------------------     2011
 equivalent)       Quarter   Quarter   Change    2012      2011      Change 
                  --------  --------  -------  --------  ---------  -------  
INCOME SUMMARY                                                              
Interest revenue  $ 64,450  $ 71,905           $267,429  $ 299,344          
Interest expense     8,422    12,855             38,330     65,675          
                  --------  --------           --------  ---------          
    Net interest                                                            
     revenue        56,028    59,050      (5)%  229,099    233,669      (2)%
Provision for                                                               
 loan losses        14,000    14,000             62,500    251,000          
Fee revenue         14,761    12,667       17    56,771     49,908       14 
                  --------  --------           --------  ---------          
    Total revenue   56,789    57,717            223,370     32,577          
Operating                                                                   
 expenses           46,726    51,080       (9)  182,774    261,599      (30)
                  --------  --------           --------  ---------          
    Income (loss)                                                           
     before                                                                 
     income taxes   10,063     6,637       52    40,596   (229,022)         
Income tax                                                                  
 expense                                                                    
 (benefit)             802    (3,264)             2,740     (2,276)         
                  --------  --------           --------  ---------          
    Net income                                                              
     (loss)          9,261     9,901       (6)   37,856   (226,746)         
Preferred                                                                   
 dividends and                  
                                            
 discount                                                                   
 accretion           3,045     3,025             12,148     11,838          
                  --------  --------           --------  ---------          
Net income (loss)                                                           
 available to                                                               
 common                                                                     
 shareholders     $  6,216  $  6,876      (10) $ 25,708  $(238,584)         
                  ========  ========           ========  =========          
                                                                            
PERFORMANCE                                                                 
 MEASURES                                                                   
  Per common                                                                
   share:                                                                   
    Diluted                                                                 
     income                                                                 
     (loss)       $    .11  $    .12       (8) $    .44  $   (5.97)         
    Book value        6.74      6.62        2      6.74       6.62        2 
    Tangible book                                                           
     value (2)        6.64      6.47        3      6.64       6.47        3 
                                                                            
  Key performance                                                           
   ratios:                                                                  
    Return on                                                               
     equity                                                                 
     (1)(3)           6.03%     7.40%              6.43%    (93.57)%        
    Return on                                                               
     assets (3)        .54       .56                .55      (3.15)         
    Net interest                                                            
     margin (3)       3.44      3.51               3.50       3.44          
    Efficiency                                                              
     ratio           66.04     71.23              64.02      92.27          
    Equity to                                                               
     assets           8.63      8.28               8.47       7.75          
    Tangible                                                                
     equity to                                                              
     assets (2)       8.55      8.16               8.38       7.62          
    Tangible                                                                
     common                                                                 
     equity to                                                
              
     assets (2)       5.67      5.38               5.54       3.74          
    Tangible                                                                
     common                                                                 
     equity to                                                              
     risk-                                                                  
     weighted                                                               
     assets (2)       8.33      8.25               8.33       8.25          
                                                                            
ASSET QUALITY *                                                             
  Non-performing                                                            
   loans          $109,894  $127,479           $109,894  $ 127,479          
  Foreclosed                                                                
   properties       18,264    32,859             18,264     32,859          
                  --------  --------           --------  ---------          
    Total non-                                                              
     performing                                                             
     assets                                                                 
     (NPAs)        128,158   160,338            128,158    160,338          
  Allowance for                                                             
   loan losses     107,137   114,468            107,137    114,468          
  Net charge-offs   14,505    45,624             69,831    311,227          
  Allowance for                                                             
   loan losses to                                                           
   loans              2.57%     2.79%              2.57%      2.79%         
  Net charge-offs                                                           
   to average                                                               
   loans (3)          1.39      4.39               1.69       7.33          
  NPAs to loans                                                             
   and foreclosed                                                           
   properties         3.06      3.87               3.06       3.87          
  NPAs to total                                                             
   assets             1.88      2.30               1.88       2.30          
                                                                            
AVERAGE BALANCES                                                            
 ($ in millions)                                                            
  Loans           $  4,191  $  4,175        -  $  4,166  $   4,307       (3)
  Investment                                                                
   securities        2,088     2,141       (2)    2,089      1,999        5 
  Earning assets     6,482     6,688       (3)    6,547      6,785       (4)
  Total assets       6,778     7,019       (3)    6,865      7,189       (5)
  Deposits           5,873     6,115       (4)    5,885      6,275       (6)
  Shareholders'                                                             
   equity              585       581        1       582        557        4 
  Common shares -                                                           
   basic                                                                    
   (thousands)      57,971    57,646             57,857     39,943          
  Common shares -                                                           
   diluted                                                                  
   (thousands)      57,971    57,646             57,857     39,943          
                                                                            
AT PERIOD END ($                                                            
 in millions)                                                               
  Loans *         $  4,175  $  4,110        2  $  4,175  $   4,110        2 
  Investment                                                                
   securities        2,079     2,120       (2)    2,079      2,120       (2)
  Total assets       6,802     6,983       (3)    6,802      6,983       (3)
  Deposits           5,952     6,098       (2)    5,952      6,098       (2)
  Shareholders'                                                             
   equity              585       575        2       585        575        2 
  Common shares                                                             
   outstanding                                                              
   (thousands)      57,741    57,561             57,741     57,561          
                                                                            
(1) Net loss available to common shareholders, which is net of preferred    
 stock dividends, divided by average realized common equity, which excludes 
 accumulated other comprehensive income (loss). (2) Excludes effect of      
 acquisition related intangibles and associated amortization. (3)           
 Annualized.                                                                
                                                                            
* Excludes loans and foreclosed properties covered by loss sharing          
 agreements with the FDIC.                                                  
                                                                            
                                                                            

 
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Selected Financial Information                                              
For the Years Ended December 31,                                            
                                
                                            
--------------------------------------------------------------------------- 
(in thousands, except                                                       
 per share data;                                                            
 taxable equivalent)     2012       2011       2010       2009       2008   
                      ---------  ---------  ---------  ---------  --------- 
INCOME SUMMARY                                                              
Net interest revenue  $ 229,099  $ 233,669  $ 243,052  $ 245,227  $ 238,704 
Operating provision                                                         
 for loan losses (1)     62,500    251,000    234,750    310,000    184,000 
Operating fee revenue                                                       
 (2)                     56,771     49,908     48,548     50,964     46,081 
                      ---------  ---------  ---------  ---------  --------- 
    Total operating                                                         
     revenue (1)(2)     223,370     32,577     56,850    (13,809)   100,785 
Operating expenses                                                          
 (3)                    182,774    261,599    242,952    217,050    200,335 
Loss on sale of                                                             
 nonperforming assets         -          -     45,349          -          - 
                      ---------  ---------  ---------  ---------  --------- 
    Operating income                                                        
     (loss) from                                                            
     continuing                                                             
     operations                                                             
     before taxes        40,596   (229,022)  (231,451)  (230,859)   (99,550)
Operating income                                                            
 taxes                    2,740     (2,276)    73,218    (91,754)   (35,651)
                      ---------  ---------  ---------  ---------  --------- 
    Net operating                                                           
     income (loss)                                                          
     from continuing                                                        
     operations          37,856   (226,746)  (304,669)  (139,105)   (63,899)
Gain from                                                                   
 acquisition, net of                                                        
 tax                          -          -          -      7,062          - 
Noncash goodwill                                                            
 impairment charges           -          -   (210,590)   (95,000)         - 
Severance cost, net                                                         
 of tax benefit               -          -          -     (1,797)         - 
Fraud loss provision                                                        
 and subsequent                                                             
 recovery, net of tax                                                       
 benefit                      -          -     11,750          -          - 
Net income (loss)                                                           
 from discontinued                                                          
 operations                   -          -       (101)       513        449 
Gain from sale of                                                           
 subsidiary, net of                                                         
 income taxes and                                                           
 selling costs                -          -      1,266          -          - 
                      ---------  ---------  ---------  ---------  --------- 
    Net income (loss)    37,856   (226,746)  (502,344)  (228,327)   (63,450)
Preferred dividends                                                         
 and discount                                                               
 accretion               12,148     11,838     10,316     10,242        724 
                      ---------  ---------  ---------  ---------  --------- 
    Net income (loss)                                                       
     available to                                                           
     common                                                                 
     shareholders     $  25,708  $(238,584) $(512,660) $(238,569) $ (64,174)
                      =========  =========  =========  =========  ========= 
                                                                            
PERFORMANCE MEASURES                                                        
  Per common share:                                                         
    Diluted operating                                                       
     earnings (loss)                                                        
     from continuing                                                        
     operations                                                             
     (1)(2)(3)        $     .44  $   (5.97) $  (16.64) $  (12.37) $   (6.82)
    Diluted earnings                                                        
     (loss) from                                                            
     continuing                                                             
     operations             .44      (5.97)    (27.15)    (19.80)     (6.82)
    Diluted earnings                                                        
     (loss)                 .44      (5.97)    (27.09)    (19.76)     (6.77)
    Cash dividends                                                          
     declared                                                               
     (rounded)                -          -          -          -        .87 
    Stock dividends                                        3 for      2 for 
     declared (6)             -          -          -        130        130 
    Book value             6.74       6.62      15.40      41.78      84.75 
    Tangible book                                                           
     value (5)             6.64       6.47      14.80      30.09      51.93 
                                                                            
  Key performance                                                           
   ratios:                                                                  
    Return on equity                                                        
     (4)                   6.43    (93.57)%   (85.08)%   (34.40)%    (7.82)%
    Return on assets        .55      (3.15)     (6.61)     (2.76)      (.76)
    Net interest                                                            
     margin                3.50       3.44       3.56       3.29       3.18 
    Operating                                                               
     efficiency ratio                                                       
     from continuing                                                        
     operations                                                             
     (2)(3)               64.02      92.27      98.98      73.97      70.00 
    Equity to assets       8.47       7.75      10.77      11.12      10.22 
    Tangible equity                                                         
     to assets (5)         8.38       7.62       8.88       8.33       6.67 
    Tangible common                                                         
     equity to assets                                                       
     (5)                   5.54       3.74       6.52       6.15       6.57 
    Tangible common                                                         
     equity to risk-                                                        
     weighted assets                                                        
     (5)                   8.33   
    8.25       5.64      10.39       8.34 
                                                                            
ASSET QUALITY *                                                             
  Non-performing                                                            
   loans              $ 109,894  $ 127,479  $ 179,094  $ 264,092  $ 190,723 
  Foreclosed                                                                
   properties            18,264     32,859    142,208    120,770     59,768 
                      ---------  ---------  ---------  ---------  --------- 
    Total non-                                                              
     performing                                                             
     assets (NPAs)      128,158    160,338    321,302    384,862    250,491 
  Allowance for loan                                                        
   losses               107,137    114,468    174,695    155,602    122,271 
  Operating net                                                             
   charge-offs (1)       69,831    311,227    215,657    276,669    151,152 
  Allowance for loan                                                        
   losses to loans         2.57%      2.79%      3.79%      3.02%      2.14%
  Operating net                                                             
   charge-offs to                                                           
   average loans (1)       1.69       7.33       4.42       5.03       2.57 
  NPAs to loans and                                                         
   foreclosed                                                               
   properties              3.06       3.87       6.77       7.30       4.35 
  NPAs to total                                                             
   assets                  1.88       2.30       4.42       4.81       2.92 
                                                                            
AVERAGE BALANCES ($                                   
                      
 in millions)                                                               
  Loans               $   4,166  $   4,307  $   4,961  $   5,548  $   5,891 
  Investment                                                                
   securities             2,089      1,999      1,453      1,656      1,489 
  Earning assets          6,547      6,785      6,822      7,465      7,504 
  Total assets            6,865      7,189      7,605      8,269      8,319 
  Deposits                5,885      6,275      6,373      6,713      6,524 
  Shareholders'                                                             
   equity                   582        557        819        920        850 
  Common shares -                                                           
   Basic (thousands)     57,857     39,943     18,925     12,075      9,474 
  Common shares -                                                           
   Diluted                                                                  
   (thousands)           57,857     39,943     18,925     12,075      9,474 
                                                                            
AT YEAR END ($ in                                                           
 millions)                                                                  
  Loans *             $   4,175  $   4,110  $   4,604  $   5,151  $   5,705 
  Investment                                                                
   securities             2,079      2,120      1,490      1,530      1,617 
  Total assets            6,802      6,983      7,276      8,000      8,592 
  Deposits                5,952      6,098      6,469      6,628      7,004 
  Shareholders'                                                             
   equity                   585        575        469        962        989 
  Common shares                                                             
   outstanding                                                              
   (thousands)           57,741     57,561     18,937     18,809      9,602 
                                                                            
(1) Excludes the subsequent recovery of $11.8 million in previously         
 recognized fraud related loan losses in 2010. (2) Excludes the gain from   
 acquisition of $11.4 million, net of income tax expense of $4.3 million in 
 2009. (3) Excludes goodwill impairment charges of $211 million and $95     
 million in 2010 and 2009, respectively, and severance costs of $2.9        
 million, net of income tax benefit of $1.1 million in 2009. (4) Net income 
 (loss) available to common shareholders, which is net of preferred stock   
 dividends, divided by average realized common equity, which excludes       
 accumulated other comprehensive income (loss). (5) Excludes effect of      
 acquisition related intangibles and associated amortization. (6) Number of 
 new shares issued for shares currently held.                               
                                                                            
* Excludes loans and foreclosed properties covered by loss sharing          
 agreements with the FDIC.                                                  
                                                                            
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Non-GAAP Performance Measures Reconciliation                                
Selected Financial Information                                              
                                                                            
                                ------------------------------------------- 
                                                                            
                                               2012                   2011  
                                ----------------------------------  ------- 
(in thousands, except per share  Fourth   Third    Second   First    Fourth 
 data; taxable equivalent)      Quarter  Quarter  Quarter  Quarter  Quarter 
                                -------  -------  -------  -------  ------- 
                                                                            
Interest revenue reconciliation                                             
Interest revenue - taxable                                                  
 equivalent                     $64,450  $65,978  $66,780  $70,221  $71,905 
Taxable equivalent adjustment      (381)    (419)    (444)    (446)    (423)
                                -------  -------  -------  -------  ------- 
  Interest revenue (GAAP)       $64,069  $65,559  $66,336  $69,775  $71,482 
                                =======  =======  =======  =======  ======= 
                                                                            
Net interest revenue                                                        
 reconciliation                                                             
Net interest revenue - taxable                                              
 equivalent                     $56,028  $57,371  $56,836  $58,864  $59,050 
Taxable equivalent adjustment      (381)    (419)    (444)    (446)    (423)
                                -------  -------  -------  -------  ------- 
  Net interest revenue (GAAP)   $55,647  $56,952  $56,392  $58,418  $58,627 
                                =======  =======  =======  =======  ======= 
                                                                            
Provision for loan losses                                                   
 reconciliation                                                             
Operating provision for loan                                                
 losses                         $14,
000  $15,500  $18,000  $15,000  $14,000 
Partial recovery of special                                                 
 fraud-related loan loss              -        -        -        -        - 
                                -------  -------  -------  -------  ------- 
  Provision for loan losses                                                 
   (GAAP)                       $14,000  $15,500  $18,000  $15,000  $14,000 
                                =======  =======  =======  =======  ======= 
                                                                            
Fee revenue reconciliation                                                  
Operating fee revenue           $14,761  $13,764  $12,867  $15,379  $12,667 
Gain from acquisition                 -        -        -        -        - 
                                -------  -------  -------  -------  ------- 
  Fee revenue (GAAP)            $14,761  $13,764  $12,867  $15,379  $12,667 
                                =======  =======  =======  =======  ======= 
                                                                            
Total revenue reconciliation                                                
Total operating revenue         $56,789  $55,635  $51,703  $59,243  $57,717 
Taxable equivalent adjustment      (381)    (419)    (444)    (446)    (423)
Gain from acquisition                 -        -        -        -        - 
Partial recovery of special                                                 
 fraud-related loan loss              -        -        -        -        - 
                                -------  -------  -------  -------  ------- 
  Total revenue (GAAP)          $56,408  $55,216  $51,259  $58,797  $57,294 
                                =======  =======  =======  =======  ======= 
                                                                            
Expense reconciliation                                                      
Operating expense               $46,726  $44,783  $44,310  $46,955  $51,080 
Noncash goodwill impairment                                                 
 charge                               -        -        -        -        - 
Severance costs                       -        -        -        -        - 
                                -------  -------  -------  -------  ------- 
  Operating expense (GAAP)      $46,726  $44,783  $44,310  $46,955  $51,080 
                                =======  =======  =======  =======  ======= 
                                                                            
Income (loss) before taxes                                                  
 reconciliation                                                             
Income (loss) before taxes      $10,063  $10,852  $ 7,393  $12,288  $ 6,637 
Taxable equivalent adjustment      (381)    (419)    (444)    (446)    (423)
Gain from acquisition                 -        -        -        -        - 
Noncash goodwill impairment                                                 
 charge                               -        -        -        -        - 
Severance costs                       -        -        -        -        - 
Partial recovery of special                                                 
 fraud-related loan loss              -        -        -        -        - 
                                -------  -------  -------  -------  ------- 
  Income (loss) before taxes                                                
   (GAAP)                       $ 9,682  $10,433  $ 6,949  $11,842  $ 6,214 
                                =======  =======  =======  =======  ======= 
                                                                            
Income tax (benefit) expense                                                
 reconciliation                                                             
Income tax (benefit) expense    $   802  $   284  $   894  $   760  $(3,264)
Taxable equivalent adjustment      (381)    (419)    (444)    (446)    (423)
Gain from acquisition, tax                                                  
 expense                              -        -        -        -        - 
Severance costs, tax benefit          -        -        -        -        - 
                                -------  -------  -------  -------  ------- 
  Income tax (benefit) expense                                              
   (GAAP)                       $   421  $  (135) $   450  $   314  $(3,687)
                                =======  =======  =======  =======  ======= 
                                                                            
Diluted earnings (loss) from                                                
 continuing operations per                                                  
 common share reconciliation                                                
Diluted operating earnings                                                  
 (loss) from continuing                                                     
 operations per common share    $   .11  $   .13  $   .06  $   .15  $   .12 
Gain from acquisition                 -        -        -        -        - 
Noncash goodwill impairment                                                 
 charge                               -        -        -        -        - 
Severance costs                       -        -        -        -        - 
Partial recovery of special                                                 
 fraud-related loan loss              -        -        -        -        - 
                                -------  -------  -------  -------  ------- 
  Diluted earnings (loss) from                                              
   continuing operations per                                                
   common share (GAAP)          $   .11  $   .13  $   .06  $   .15  $   .12 
                                =======  =======  =======  =======  ======= 
                                                                            
Book value per common share                                                 
 reconciliation                                                             
Tangible book value per common                                              
 share                          $  6.64  $  6.64  $  6.48  $  6.54  $  6.47 
Effect of goodwill and other                                                
 intangibles                        .10      .11      .13      .14      .15 
                                -------  -------  -------  -------  ------- 
  Book value per common share                                               
   (GAAP)                       $  6.74  $  6.75  $  6.61  $  6.68  $  6.62 
                                =======  =======  =======  =======  ======= 
                                                                            
Efficiency ratio from                                                       
 continuing operations                                                      
 reconciliation                                                             
Operating efficiency ratio from                                             
 continuing operations            66.04%   62.95%   63.84%   63.31%   71.23%
Gain from acquisition                 -        -        -        -        - 
Noncash goodwill impairment                                                 
 charge                               -        -        -        -        - 
Severance costs                       -        -        -        -        - 
                                -------  -------  -------  -------  ------- 
  Efficiency ratio from                                                     
   continuing operations (GAAP)   66.04%   62.95%   63.84%   63.31%   71.23%
                                =======  =======  =======  =======  ======= 
                                                                            
Average equity to assets                                                    
 reconciliation                       
                                      
Tangible common equity to                                                   
 assets                            5.67%    5.73%    5.45%    5.33%    5.38%
Effect of preferred equity         2.88     2.93     2.79     2.75     2.78 
                                -------  -------  -------  -------  ------- 
  Tangible equity to assets        8.55     8.66     8.24     8.08     8.16 
Effect of goodwill and other                                                
 intangibles                        .08      .09      .09      .11      .12 
                                -------  -------  -------  -------  ------- 
  Equity to assets (GAAP)          8.63%    8.75%    8.33%    8.19%    8.28%
                                =======  =======  =======  =======  ======= 
                                                                            
Tangible common equity to risk-                                             
 weighted assets reconciliation                                             
Tangible common equity to risk-                                             
 weighted assets                   8.33%    8.44%    8.37%    8.21%    8.25%
Effect of other comprehensive                                               
 income                             .51      .36      .28      .10     (.03)
Effect of deferred tax                                                      
 limitation                           -        -        -        -        - 
Effect of trust preferred          1.15     1.17     1.19     1.15     1.18 
Effect of preferred equity         4.24     4.29     4.35     4.23     4.29 
                                -------  -------  -------  -------  ------- 
  Tier I capital ratio                                                      
   (Regulatory)                   14.23%   14.26%   14.19%   13.69%   13.69%
                                =======  =======  =======  =======  ======= 
                                                          
                  
Net charge-offs reconciliation                                              
Operating net charge-offs       $14,505  $20,563  $18,896  $15,867  $45,624 
Subsequent partial recovery of                                              
 fraud-related charge-off             -        -        -        -        - 
                                -------  -------  -------  -------  ------- 
  Net charge-offs (GAAP)        $14,505  $20,563  $18,896  $15,867  $45,624 
                                =======  =======  =======  =======  ======= 
                                                                            
Net charge-offs to average                                                  
 loans reconciliation                                                       
Operating net charge-offs to                                                
 average loans                     1.39%    1.99%    1.85%    1.55%    4.39%
Subsequent partial recovery of                                              
 fraud-related charge-off             -        -        -        -        - 
                                -------  -------  -------  -------  ------- 
  Net charge-offs to average                                                
   loans (GAAP)                    1.39%    1.99%    1.85%    1.55%    4.39%
                                =======  =======  =======  =======  ======= 
                                                                            
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Non-GAAP Performance Measures Reconciliation                                
Selected Financial Information                                              
                                                                            
                      ----------------------------------------------------- 
(in thousands, except                     For the Twelve                    
 per share                                 Months Ended                     
 data; taxable        ----------------------------------------------------- 
 equivalent)             2012       2011       2010       2009       2008   
                      ---------  ---------  ---------  ---------  ---------   
                                                                            
Interest revenue                                                            
 reconciliation                                                             
Interest revenue -                                                          
 taxable equivalent   $ 267,429  $ 299,344  $ 343,123  $ 404,961  $ 466,969 
Taxable equivalent                                                          
 adjustment              (1,690)    (1,707)    (2,001)    (2,132)    (2,261)
                      ---------  ---------  ---------  ---------  --------- 
  Interest revenue                                                          
   (GAAP)             $ 265,739  $ 297,637  $ 341,122  $ 402,829  $ 464,708 
                      =========  =========  =========  =========  ========= 
                                                                            
Net interest revenue                                                        
 reconciliation                                                             
Net interest revenue                                                        
 - taxable equivalent $ 229,099  $ 233,669  $ 243,052  $ 245,227  $ 238,704 
Taxable equivalent                                                          
 adjustment              (1,690)    (1,707)    (2,001)    (2,132)    (2,261)
                      ---------  ---------  ---------  ---------  --------- 
  Net interest                                                              
   revenue (GAAP)     $ 227,409  $ 231,962  $ 241,051  $ 243,095  $ 236,443 
                      =========  =========  =========  =========  ========= 
                                                                            
Provision for loan                                                          
 losses                                                                     
 reconciliation                                                             
Operating provision                                                         
 for loan losses      $  62,500  $ 251,000  $ 234,750  $ 310,000  $ 184,000 
Partial recovery of                                                         
 special fraud-                                                             
 related loan loss            -          -    (11,750)         -          - 
                      ---------  ---------  ---------  ---------  --------- 
  Provision for loan                                                        
   losses (GAAP)      $  62,500  $ 251,000  $ 223,000  $ 310,000  $ 184,000 
                      =========  =========  =========  =========  ========= 
                                                                            
Fee revenue                                                                 
 reconciliation                                                             
Operating fee revenue $  56,771  $  49,908  $  48,548  $  50,964  $  46,081 
Gain from acquisition         -          -          -     11,390          - 
                      ---------  ---------  ---------  ---------  --------- 
  Fee revenue (GAAP)  $  56,771  $  49,908  $  48,548  $  62,354  $  46,081 
                      =========  =========  =========  =========  ========= 
                                                                            
Total revenue                                                               
 reconciliation                                                             
Total operating                       
                                      
 revenue              $ 223,370  $  32,577  $  56,850  $ (13,809) $ 100,785 
Taxable equivalent                                                          
 adjustment              (1,690)    (1,707)    (2,001)    (2,132)    (2,261)
Gain from acquisition         -          -          -     11,390          - 
Partial recovery of                                                         
 special fraud-                                                             
 related loan loss            -          -     11,750          -          - 
                      ---------  ---------  ---------  ---------  --------- 
  Total revenue                                                             
   (GAAP)             $ 221,680  $  30,870  $  66,599  $  (4,551) $  98,524 
                      =========  =========  =========  =========  ========= 
                                                                            
Expense                                                                     
 reconciliation                                                             
Operating expense     $ 182,774  $ 261,599  $ 288,301  $ 217,050  $ 200,335 
Noncash goodwill                                                            
 impairment charge            -          -    210,590     95,000          - 
Severance costs               -          -          -      2,898          - 
                      ---------  ---------  ---------  ---------  --------- 
  Operating expense                                                         
   (GAAP)             $ 182,774  $ 261,599  $ 498,891  $ 314,948  $ 200,335 
                      =========  =========  =========  =========  ========= 
                                                                            
Income (loss) before                                                        
 taxes reconciliation                                                       
Income (loss) before                                      
                  
 taxes                $  40,596  $(229,022) $(231,451) $(230,859) $ (99,550)
Taxable equivalent                                                          
 adjustment              (1,690)    (1,707)    (2,001)    (2,132)    (2,261)
Gain from acquisition         -          -          -     11,390          - 
Noncash goodwill                                                            
 impairment charge            -          -   (210,590)   (95,000)         - 
Severance costs               -          -          -     (2,898)         - 
Partial recovery of                                                         
 special fraud-                                                             
 related loan loss            -          -     11,750          -          - 
                      ---------  ---------  ---------  ---------  --------- 
  Income (loss)                                                             
   before taxes                                                             
   (GAAP)             $  38,906  $(230,729) $(432,292) $(319,499) $(101,811)
                      =========  =========  =========  =========  ========= 
                                                                            
Income tax (benefit)                                                        
 expense                                                                    
 reconciliation                                                             
Income tax (benefit)                                                        
 expense              $   2,740  $  (2,276) $  73,218  $ (91,754) $ (35,651)
Taxable equivalent                                                          
 adjustment              (1,690)    (1,707)    (2,001)    (2,132)    (2,261)
Gain from                                                                   
 acquisition, tax                                                           
 expense                      -          -          -      4,328          - 
Severance costs, tax                                                        
 benefit                      -          -          -     (1,101)         - 
                      ---------  ---------  ---------  ---------  --------- 
  Income tax                                                                
   (benefit) expense                                                        
   (GAAP)             $   1,050  $  (3,983) $  71,217  $ (90,659) $ (37,912)
                      =========  =========  =========  =========  ========= 
                                                                            
Diluted earnings                                                            
 (loss) from                                                                
 continuing                                                                 
 operations per                                                             
 common share                                                               
 reconciliation                                                             
Diluted operating                                                           
 earnings (loss) from                                                       
 continuing                                                                 
 operations per                                                             
 common share         $     .44  $   (5.97) $  (16.64) $  (12.37) $   (6.82)
Gain from acquisition         -          -          -        .58          - 
Noncash goodwill                                                            
 impairment charge            -          -     (11.13)     (7.86)         - 
Severance costs               -          -          -       (.15)         - 
Partial recovery of                                                         
 special fraud-                                                             
 related loan loss            -          -        .62          -          - 
                      ---------  ---------  ---------  ---------  --------- 
  Diluted earnings                                                          
   (loss) from                                                              
   continuing                                                               
   operations per                                                           
   common share                                                             
   (GAAP)             $     .44  $   (5.97) $  (27.15) $  (19.80) $   (6.82)
                      =========  =========  =========  =========  ========= 
                                                                            
Book value per common                                                       
 share reconciliation                                                       
Tangible book value                                                         
 per common share     $    6.64  $    6.47  $   14.80  $   30.09  $   51.93 
Effect of goodwill                                                          
 and other                                                                  
 intangibles                .10        .15        .60      11.69      32.82 
                      ---------  ---------  ---------  ---------  --------- 
  Book value per                                                            
   common share                                                             
   (GAAP)             $    6.74  $    6.62  $   15.40  $   41.78  $   84.75 
                      =========  =========  =========  =========  ========= 
                                                                            
Efficiency ratio from                                                       
 continuing                                                                 
 operations                                                                 
 reconciliation                                                             
Operating efficiency                    
                                    
 ratio from                                                                 
 continuing                                                                 
 operations               64.02%     92.27%     98.98%     73.97%     70.00%
Gain from acquisition         -          -          -      (2.77)         - 
Noncash goodwill                                                            
 impairment charge            -          -      72.29      31.17          - 
Severance costs               -          -          -        .95          - 
                      ---------  ---------  ---------  ---------  --------- 
  Efficiency ratio                                                          
   from continuing                                                          
   operations (GAAP)      64.02%     92.27%    171.27%    103.32%     70.00%
                      =========  =========  =========  =========  ========= 
                                                                            
Average equity to                                                           
 assets                                                                     
 reconciliation                                                             
Tangible common                                                             
 equity to assets          5.54%      3.74%      6.52%      6.15%      6.57%
Effect of preferred                                                         
 equity                    2.84       3.88       2.36       2.18        .10 
                      ---------  ---------  ---------  ---------  --------- 
  Tangible equity to                                                        
   assets                  8.38       7.62       8.88       8.33       6.67 
Effect of goodwill                                                          
 and other                                                                  
 intangibles                .09        .13       1.89       2.79       3.55 
                      ---------  ---------  ---------  ---------  --------- 
  Equity to assets                                                          
   (GAAP)                  8.47%      7.75%     10.77%     11.12%     10.22%
                      =========  =========  =========  =========  ========= 
                                                                            
Tangible common                                                             
 equity to risk-                                                            
 weighted assets                                                            
 reconciliation                                                             
Tangible common                                                             
 equity to risk-                                                            
 weighted assets           8.33%      8.25%      5.64%     10.39%      8.34%
Effect of other                                                             
 comprehensive income       .51       (.03)      (.42)      (.87)      (.91)
Effect of deferred                                                          
 tax limitation               -          -          -      (1.27)         - 
Effect of trust                                                             
 preferred                 1.15       1.18       1.06        .97        .88 
Effect of preferred                                                         
 equity                    4.24       4.29       3.53       3.19       2.90 
                      ---------  ---------  ---------  ---------  --------- 
  Tier I capital                                                            
   ratio (Regulatory)     14.23%     13.69%      9.81%     12.41%     11.21%
                      =========  =========  =========  =========  ========= 
                                                                            
Net charge-offs                                                             
 reconciliation                                                             
Operating net charge-                                                       
 offs                 $  69,831  $ 311,227  $ 215,657  $ 276,669  $ 151,152 
Subsequent partial                                                          
 recovery of fraud-                                                         
 related charge-off           -          -    (11,750)         -          - 
                      ---------  ---------  ---------  ---------  --------- 
  Net charge-offs                                                           
   (GAAP)             $  69,831  $ 311,227  $ 203,907  $ 276,669  $ 151,152 
                      =========  =========  =========  =========  ========= 
                                                                            
Net charge-offs to                                                          
 average loans                                                              
 reconciliation                                                             
Operating net charge-                                                       
 offs to average                                                            
 loans                     1.69%      7.33%      4.42%      5.03%      2.57%
Subsequent partial                                                          
 recovery of fraud-                                                         
 related charge-off           -          -       (.25)         -          - 
                      ---------  ---------  ---------  ---------  --------- 
  Net charge-offs to                                                        
   average loans                                                            
   (GAAP)                  1.69%      7.33%      4.17%      5.03%      2.57%
                      =========  =========  =========  =========  ========= 
                                                                            
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Loan Portfolio Composition at                                               
 Period-End (1)                                                             
                                                                            
                                     ---------------------------------------
                                                                            
                                                   2012                2011 
                                     ------------------------------- -------
                                      Fourth  Third   Second  First   Fourth
(in millions)                        Quarter Quarter Quarter Quarter Quarter
                                     ------- ------- ------- ------- -------
LOANS BY CATEGORY                                                           
Owner occupied commercial RE         $ 1,131 $ 1,126 $ 1,140 $ 1,137 $ 1,112
Income producing commercial RE           682     693     697     706     710
Commercial & industrial                  458     460     450     440     428
Commercial construction                  155     161     169     167     164
                                     ------- ------- ------- ------- -------
  Total commercial                     2,426   2,440   2,456   2,450   2,414
Residential mortgage                     829     833     834     836     835
Home equity lines of credit              385     341     294     295     300
Residential construction                 382     389     409     436     448
Consumer installment                     153     135     126     111     113
                                     -----
-- ------- ------- ------- -------
  Total loans                        $ 4,175 $ 4,138 $ 4,119 $ 4,128 $ 4,110
                                     ======= ======= ======= ======= =======
                                                                            
LOANS BY MARKET                                                             
North Georgia                        $ 1,364 $ 1,383 $ 1,387 $ 1,408 $ 1,426
Atlanta MSA                            1,288   1,257   1,252   1,239   1,220
North Carolina                           579     579     576     588     597
Coastal Georgia                          400     380     369     366     346
Gainesville MSA                          261     256     259     262     265
East Tennessee                           283     283     276     265     256
                                     ------- ------- ------- ------- -------
  Total loans                        $ 4,175 $ 4,138 $ 4,119 $ 4,128 $ 4,110
                                     ======= ======= ======= ======= =======
                                                                            
RESIDENTIAL CONSTRUCTION                                                    
Dirt loans                                                                  
  Acquisition & development          $    62 $    71 $    78 $    86 $    88
  Land loans                              46      41      45      57      61
  Lot loans                              193     196     203     204     207
                                     ------- ------- ------- ------- -------
    Total                                301     308     326     347     356
                                     ------- ------- ------- ------- -------
                                                                            
House loans                                                                 
  Spec                                    41      44      49      57      59
  Sold                                    40      37      34      32      33
                                     ------- ------- ------- ------- -------
    Total                                 81      81      83      89      92
                                     ------- ------- ------- ------- -------
Total residential construction       $   382 $   389 $   409 $   436 $   448
                                     ======= ======= ======= ======= =======
                                                                            
(1) Excludes total loans of $33.4 million, $37.0 million, $41.5 million,    
 $47.2 million and $54.5 million as of December 31, 2012, September 30,     
 2012, June 30, 2012, March 31, 2012 and December 31, 2011, respectively,   
 that are covered by the loss-sharing agreement with the FDIC, related to   
 the acquisition of Southern Community Bank.                                
                                                                            
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Loan Portfolio Composition at Period-End (1)                                
                                                                              
                                                                           
                                 ------------------------------------------    
                                       2012        2011         
                                 --------------- -------  Linked  Year over 
                                  Fourth  Third   Fourth  Quarter   Year    
(in millions)                    Quarter Quarter Quarter  Change    Change  
                                 ------- ------- ------- --------  --------  
LOANS BY CATEGORY                                                           
Owner occupied commercial RE     $ 1,131 $ 1,126 $ 1,112 $      5  $     19 
Income producing commercial RE       682     693     710      (11)      (28)
Commercial & industrial              458     460     428       (2)       30 
Commercial construction              155     161     164       (6)       (9)
                                 ------- ------- -------                    
  Total commercial                 2,426   2,440   2,414      (14)       12 
Residential mortgage                 829     833     835       (4)       (6)
Home equity lines of credit          385     341     300       44        85 
Residential construction             382     389     448       (7)      (66)
Consumer installment                 153     135     113       18        40 
                                 ------- ------- -------                    
  Total loans                    $ 4,175 $ 4,138 $ 4,110       37        65 
                                 ======= ======= =======                    
                                                                            
LOANS BY MARKET                                                             
North Georgia                    $ 1,364 $ 1,383 $ 1,426      (19)      (62)
Atlanta MSA                        1,288   1,257   1,220       31        68 
North Carolina                       579     579     597        -       (18)
Coastal Georgia                      400     380     346       20        54 
Gainesville MSA                      261     256     265        5        (4)
East Tennessee                       283     283     256        -        27 
                                 ------- ------- -------                    
  Total loans                    $ 4,175 $ 4,138 $ 4,110       37        65 
                                 ======= ======= =======                    
                                                                            
RESIDENTIAL CONSTRUCTION                                                    
Dirt loans                                                                  
  Acquisition & development      $    62 $    71 $    88       (9)      (26)
  Land loans                          46      41      61        5       (15)
  Lot loans                          193     196     207       (3)      (14)
                                 ------- ------- -------                    
    Total                            301     308     356       (7)      (55)
                                 ------- ------- -------                    
                                                                            
House loans                                                                 
  Spec                                41      44      59       (3)      (18)
  Sold                                40      37      33        3         7 
                                 ------- ------- -------                    
    Total                             81      81      92        -       (11)
                                 ------- ------- -------                    
Total residential construction   $   382 $   389 $   448       (7)      (66)
                                 ======= ======= =======                    
                                                                            
(1) Excludes total loans of $33.4 million, $37.0 million, $41.5 million,    
 $47.2 million and $54.5 million as of December 31, 2012, September 30,     
 2012, June 30, 2012, March 31, 2012 and December 31, 2011, respectively,   
 that are covered by the loss-sharing agreement with the FDIC, related to   
 the acquisition of Southern Community Bank.                                
                                                                            
                                                                            
                                                                            
                                                   
                         
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Loan Portfolio Composition at Year-End (1)                                  
                                                                            
                                --------------------------------------------
                                                                            
(in millions)                     2012     2011     2010     2009     2008  
                                -------- -------- -------- -------- --------
LOANS BY CATEGORY                                                           
Owner occupied commercial RE    $  1,131 $  1,112 $    980 $    963 $    955
Income producing commercial RE       682      710      781      816      672
Commercial & industrial              458      428      441      390      410
Commercial construction              155      164      297      363      500
                                -------- -------- -------- -------- --------
    Total commercial               2,426    2,414    2,499    2,532    2,537
Residential mortgage                 829      835      944    1,052    1,142
Home equity lines of credit          385      300      335      375      384
Residential construction             382      448      695    1,050    1,479
Consumer / installment               153      113      131      142      163
                                -------- -------- -------- -------- --------
    Total loans                 $  4,175 $  4,110 $  4,604 $  5,151 $  5,705
                                ======== ======== ======== ======== ========
                                                                            
                                                                            
LOANS BY MARKET                                                             
North Georgia                   $  1,364 $  1,426 $  1,689 $  1,884 $  
2,040
Atlanta MSA                        1,288    1,220    1,310    1,435    1,706
North Carolina                       579      597      702      772      810
Coastal Georgia                      400      346      335      405      464
Gainesville MSA                      261      265      312      390      420
East Tennessee                       283      256      256      265      265
                                -------- -------- -------- -------- --------
  Total loans                   $  4,175 $  4,110 $  4,604 $  5,151 $  5,705
                                ======== ======== ======== ======== ========
                                                                            
(1) Excludes total loans of $33.4 million, $54.5 million, $68.2 million and 
 $85.1 million as of December 31, 2012, 2011, 2010 and 2009, respectively,  
 that are covered by the loss-sharing agreement with the FDIC, related to   
 the acquisition of Southern Community Bank.                                
                                                                            
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                 
                                       
Credit Quality(1)                                                           
                                                                            
                                         ---------------------------------- 
                                                                            
                                                 Fourth Quarter 2012        
                                         ---------------------------------- 
                                            Non-                            
                                         performing  Foreclosed     Total   
(in thousands)                              Loans    Properties     NPAs    
                                         ----------  ----------  ---------- 
NPAs BY CATEGORY                                                            
Owner occupied CRE                       $   12,599  $    4,989  $   17,588 
Income producing CRE                          9,549         490      10,039 
Commercial & industrial                      31,817           -      31,817 
Commercial construction                      23,843       2,204      26,047 
                                         ----------  ----------  ---------- 
  Total commercial                           77,808       7,683      85,491 
Residential mortgage                         11,151       4,753      15,904 
Home equity lines of credit                   1,438           -       1,438 
Residential construction                     18,702       5,828      24,530 
Consumer installment                            795           -         795 
                                         ----------  ----------  ---------- 
  Total NPAs                             $  109,894  $   18,264  $  128,158 
                                         ==========  ==========  ========== 
  Balance as a % of Unpaid Principal           69.5%       39.7%       62.8%
                                                                            
NPAs BY MARKET                                                              
North Georgia                            $   69,950  $    8,219  $   78,169 
Atlanta MSA                                  18,556       3,442      21,998 
North Carolina                               11,014       2,579      13,593 
Coastal Georgia                               3,810       1,609       5,419 
Gainesville MSA                                 903         556       1,459 
East Tennessee                                5,661       1,859       7,520 
                                         ----------  ----------  ---------- 
  Total NPAs                             $  109,894  $   18,264  $  128,158 
                                         ==========  ==========  ========== 
                                                                            
                                                                            
NPA ACTIVITY                                                                
Beginning Balance                        $  115,001  $   26,958  $  141,959 
Loans placed on non-accrual                  20,211           -      20,211 
Payments received                            (6,458)          -      (6,458)
Loan charge-offs                            (11,722)          -     (11,722)
Foreclosures                                 (7,138)      7,138           - 
Capitalized costs                                 -         201         201 
Note / property sales                             -     (12,845)    (12,845)
Write downs                                
       -      (1,438)     (1,438)
Net gains (losses) on sales                       -      (1,750)     (1,750)
                                         ----------  ----------  ---------- 
  Ending Balance                         $  109,894  $   18,264  $  128,158 
                                         ==========  ==========  ========== 
                                                                            
(1) Excludes non-performing loans and foreclosed properties covered by the  
 loss-sharing agreement with the FDIC, related to the acquisition of        
 Southern Community Bank.                                                   
                                                                            
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Credit Quality(1)                                                           
                                                                            
                                         ---------------------------------- 
                                                                            
                                                 Third Quarter 2012         
                                         ---------------------------------- 
                                            Non-                            
                                         performing  Foreclosed     Total   
(in thousands)                              Loans    Properties     NPAs    
                                         ----------  ----------  ---------- 
NPAs BY CATEGORY                                                            
Owner occupied CRE                       $   14,140  $    7,170  $   21,310 
Income producing CRE                         11,756       1,597      13,353 
Commercial & industrial                      32,678           -      32,678 
Commercial construction                      18,590       3,121      21,711 
                                         ----------  ----------  ---------- 
  Total commercial                           77,164      11,888      89,052 
Residential mortgage                         12,629       6,031      18,660 
Home equity lines of credit                   1,367           -       1,367 
Residential construction                     22,935       9,039      31,974 
Consumer installment                            906           -         906 
                                         ----------  ----------  ---------- 
  Total NPAs                             $  115,001  $   26,958  $  141,959 
                                         ==========  ==========  ========== 
  Balance as a % of Unpaid Principal           68.8%       36.4%       58.8%
                                                                            
NPAs BY MARKET                                                              
North Georgia                            $   72,211  $   14,582  $   86,793 
Atlanta MSA                                  21,349       5,926      27,275 
North Carolina                                9,622       2,771      12,393 
Coastal Georgia                               6,822         864       7,686 
Gainesville MSA                                 840       1,328       2,168 
East Tennessee                                4,157       1,487       5,644 
                                         ----------  ----------  ---------- 
  Total NPAs                             $  115,001  $   26,958  $  141,959 
                                         ==========  ==========  ========== 
                                                                            
                                                                            
NPA ACTIVITY                                                                
Beginning Balance                        $  115,340  $   30,421  $  145,761 
Loans placed on non-accrual                  30,535           -      30,535 
Payments received                            (3,646)          -      (3,646)
Loan charge-offs                            (19,227)          -     (19,227)
Foreclosures                                 (8,001)      8,001           - 
Capitalized costs                                 -         102         102 
Note / property sales                             -      (8,822)     (8,822)
Write downs                                       -      (2,394)     (2,394)
Net gains (losses) on sales                       -        (350)       (350)
                                         ----------  ----------  ---------- 
  Ending Balance                         $  115,001  $   26,958  $  141,959 
                                         ==========  ==========  ========== 
                                                                            
(1) Excludes non-performing loans and foreclosed properties covered by the  
 loss-sharing agreement with the FDIC, related to the acquisition of        
 Southern Community Bank.                                                   
                                                                            
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Credit Quality(1)                                                           
                                                                            
                                         ---------------------------------- 
                                                                            
                                                 Second Quarter 2012        
                                         ---------------------------------- 
                                            Non-                            
                                         performing  Foreclosed     Total   
(in thousands)                              Loans    Properties     NPAs    
                                         ----------  ----------  ---------- 
NPAs BY CATEGORY                                                            
Owner occupied CRE                       $    9,399  $    7,914  $   17,313 
Income producing CRE                          9,716       2,672      12,388 
Commercial & industrial                      34,982           -      34,982 
Commercial construction                      18,175       2,732      20,907 
                                         ----------  ----------  ---------- 
  Total commercial                           72,272      13,318      85,590 
Residential mortgage                         15,272       5,591      20,863 
Home equity lines of credit                   1,359           -       1,359 
Residential construction                     25,530      11,512      37,042 
Consumer installment                            907           -         907 
                                         ----------  ----------  ---------- 
  Total NPAs                             $  115,340  $   30,421  $  145,761 
                                         ==========  ==========  ========== 
  Balance as a % of Unpaid Principal           68.8%       39.3%       59.4%
                                                                            
NPAs BY MARKET                                                              
North Georgia                            $   77,332  $   13,546  $   90,878 
Atlanta MSA                                  17,593       8,651      26,244 
North Carolina                               10,657       3,287      13,944 
Coastal Georgia                               5,822         785       6,607 
Gainesville MSA                                 991       2,998       3,989 
East Tennessee                                2,945       1,154       4,099 
                                         ----------  ----------  ---------- 
  Total NPAs                             $  115,340  $   30,421  $  145,761 
                                         ==========  ==========  ========== 
                                                                            
                                                                            
NPA ACTIVITY                                                                
Beginning Balance                        $  129,704  $   31,887  $  161,591 
Loans placed on non-accrual                  29,364           -      29,364 
Payments received                           (15,027)          -     (15,027)
Loan charge-offs                            (19,382)   
       -     (19,382)
Foreclosures                                 (9,319)      9,319           - 
Capitalized costs                                 -         415         415 
Note / property sales                             -     (10,461)    (10,461)
Write downs                                       -      (1,008)     (1,008)
Net gains (losses) on sales                       -         269         269 
                                         ----------  ----------  ---------- 
  Ending Balance                         $  115,340  $   30,421  $  145,761 
                                         ==========  ==========  ========== 
                                                                            
(1) Excludes non-performing loans and foreclosed properties covered by the  
 loss-sharing agreement with the FDIC, related to the acquisition of        
 Southern Community Bank.                                                   
                                                                            
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Credit Quality(1)                                                           
                                                                            
                     ------------------------------------------------------ 
                      Fourth Quarter     Third Quarter      Second Quarter  
                           2012               2012               2012       
                     ----------------  -----------------  ----------------- 
                                Net                Net                Net   
                              Charge-            Charge-            Charge- 
                              Offs to            Offs to            Offs to 
                        Net   Average     Net    Average     Net    Average 
(in thousands)        Charge-  Loans    Charge-   Loans    Charge-   Loans  
                       Offs     (2)      Offs      (2)      Offs      (2)   
                     -------- -------  --------  -------  --------  ------- 
NET CHARGE-OFFS BY                                                          
 CATEGORY                                                                   
Owner occupied CRE   $  4,997    1.76% $  6,192     3.56% $  1,305      .46%
Income producing CRE    1,153     .67     1,982      .70     3,044     1.75 
Commercial &                                                                
 industrial               135     .12      (259)    (.23)      775      .70 
Commercial                                                                  
 construction           1,688    4.25     3,190     7.74        88      .21 
                     --------          --------           --------          
  Total commercial      7,973    1.30    11,105     1.81     5,212      .86 
Residential mortgage    3,254    1.55     2,846     1.40     1,971      .70 
Home equity lines of                                                        
 credit                   445     .49       681      .80     1,891     2.60 
Residential                                                                 
 construction           2,435    2.52     5,676     5.69     9,563     9.14 
Consumer installment      398    1.10       255      .78       259      .88 
                     --------          --------           --------          
  Total              $ 14,505    1.39  $ 20,563     1.99  $ 18,896     1.85 
                     ========          ========           ========          
                                                                            
                                                                            
NET CHARGE-OFFS BY                                                          
 MARKET                                                                     
North Georgia        $  4,474    1.26% $  6,451     1.84% $ 12,474     3.58%
Atlanta MSA             3,977    1.27     9,344     3.02     2,307      .75 
North Carolina          2,032    1.39     1,674     1.15     3,634     2.52 
Coastal Georgia           574     .60     2,486     2.67       211      .23 
Gainesville MSA         1,331    2.04       294      .45      (187)    (.29)
East Tennessee          2,117    2.98       314      .45       457      .68 
                     --------          --------           --------          
  Total              $ 14,505    1.39  $ 20,563     1.99  $ 18,896     1.85 
                     ========          ========           ========          
                                                                            
(1) Excludes non-performing loans and foreclosed properties covered by the  
 loss-sharing agreement with the FDIC, related to the acquisition of        
 Southern Community Bank.                                                   
(2) Annualized.                                                             
                                                                            
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Consolidated Statement of                                                   
 Operations(Unaudited)                                                      
                                                                            
                                  ----------------------------------------- 
                                   Three Months Ended   Twelve Months Ended 
                                      December 31,         December 31,     
                                  -------------------  -------------------- 
(in thousands, except per share                                             
 data)                               2012      2011       2012       2011   
                                  --------- ---------  ---------  --------- 
                                                                            
Interest revenue:                                                           
  Loans, including fees           $  53,335 $  57,697  $ 217,140  $ 239,056 
  Investment securities,                                                    
   including tax exempt of $219,                                            
   $255, $956 and $1,009              9,841    13,296     44,613     56,260 
  Federal funds sold, reverse                                               
   repurchase agreements,                                                   
   commercial paper and deposits                                            
   in banks                             893       489      3,986      2,321 
                                  --------- ---------  ---------  --------- 
    Total interest revenue           64,069    71,482    265,739    297,637 
                                  --------- ---------  ---------  --------- 
                                                                            
Interest expense:                                                           
  Deposits:                                                                 
    NOW                                 462       807      2,049      3,998 
    Money market                        617       800      2,518      5,456 
    Savings                              38        41        150        234 
    Time                              3,674     7,338     19,518     39,151 
                                  --------- ---------  ---------  --------- 
      Total deposit interest                             
                   
       expense                        4,791     8,986     24,235     48,839 
Federal funds purchased,                                                    
 repurchase agreements and other                                            
 short-term borrowings                  524     1,053      2,987      4,250 
Federal Home Loan Bank advances          25       441        907      2,042 
Long-term debt                        3,082     2,375     10,201     10,544 
                                  --------- ---------  ---------  --------- 
    Total interest expense            8,422    12,855     38,330     65,675 
                                  --------- ---------  ---------  --------- 
    Net interest revenue             55,647    58,627    227,409    231,962 
Provision for loan losses            14,000    14,000     62,500    251,000 
                                  --------- ---------  ---------  --------- 
    Net interest revenue after                                              
     provision for loan losses       41,647    44,627    164,909    (19,038)
                                  --------- ---------  ---------  --------- 
                                                                            
Fee revenue:                                                                
  Service charges and fees            8,375     7,248     31,670     29,110 
  Mortgage loan and other related                                           
   fees                               3,262     1,825     10,483      5,419 
  Brokerage fees                        751       782      3,082      2,986 
  Securities gains, net                  31         4      7,078        842 
  Loss from prepayment of debt            -         -     (6,681)      (791)
  Other                               2,342     2,808     11,139     12,342 
                                  --------- ---------  ---------  --------- 
    Total fee revenue                14,761    12,667     56,771     49,908 
                                  --------- ---------  ---------  --------- 
    Total revenue                    56,408    57,294    221,680     30,870 
                                  --------- ---------  ---------  --------- 
                                                                            
Operating expenses:                                                         
  Salaries and employee benefits     23,586    23,473     96,026    100,095 
  Communications and equipment        3,320     3,129     12,940     13,135 
  Occupancy                           3,455     3,972     14,304     15,645 
  Advertising and public                                                    
   relations                            987       944      3,855      4,291 
  Postage, printing and supplies      1,050     1,017      3,899      4,256 
  Professional fees                   2,685     1,996      8,792      9,727 
  Foreclosed property                 4,611     9,302     13,993     78,905 
  FDIC as
sessments and other                                                
   regulatory charges                 2,505     2,599     10,097     14,259 
  Amortization of intangibles           727       746      2,917      3,016 
  Other                               3,800     3,902     15,951     18,270 
                                  --------- ---------  ---------  --------- 
    Total operating expenses         46,726    51,080    182,774    261,599 
                                  --------- ---------  ---------  --------- 
    Net income (loss) before                                                
     income taxes                     9,682     6,214     38,906   (230,729)
Income tax (benefit) expense            421    (3,687)     1,050     (3,983)
                                  --------- ---------  ---------  --------- 
    Net income (loss)                 9,261     9,901     37,856   (226,746)
Preferred stock dividends and                                               
 discount accretion                   3,045     3,025     12,148     11,838 
                                  --------- ---------  ---------  --------- 
    Net income (loss) available                                             
     to common shareholders       $   6,216 $   6,876  $  25,708  $(238,584)
                                  ========= =========  =========  ========= 
                                                                            
Earnings (loss) per common share                                            
 - Basic                          $     .11 $     .12  $     .44  $   (5.97)
Earnings (loss) per common share                                            
 - Diluted                              .11       .12        .44      (5.97)
Weighted average common shares                                              
 outstanding - Basic                 57,971    57,646     57,857     39,943 
Weighted average common shares                                              
 outstanding - Diluted               57,971    57,646     57,857     39,943 
                                                                            
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Consolidated Balance Sheet                                                  
                                                                            
                                               -------------  -------------  
(in thousands, except share and per share       December 31,   December 31, 
 data)                                              2012           2011     
                                               -------------  ------------- 
                                                (unaudited)     (audited)   
ASSETS                                                                      
  Cash and due from banks                      $      66,536  $      53,807 
  Interest-bearing deposits in banks                 124,613        139,609 
  Federal funds sold, reverse repurchase                                    
   agreements, securities lending, commercial                               
   paper and short-term investments                   60,000        185,000 
                                               -------------  ------------- 
    Cash and cash equivalents                        251,149        378,416 
  Securities available for sale                    1,834,593      1,790,047 
  Securities held to maturity (fair value                                   
   $261,131 and $343,531)                            244,184        330,203 
  Mortgage loans held for sale                        28,821         23,881 
  Loans, net of unearned income                    4,175,008      4,109,614 
    Less allowance for loan losses                  (107,137)      (114,468)
                                               -------------  ------------- 
      Loans, net                                   4,067,871      3,995,146 
  Assets covered by loss sharing agreements                                 
   with the FDIC                                      47,467         78,145 
  Premises and equipment, net                        168,920        175,088 
  Bank owned life insurance                           81,867         80,599 
  Accrued interest receivable                         18,659         20,693 
  Goodwill and other intangible assets                 5,510          8,428 
  Foreclosed property                                 18,264         32,859 
  Other assets                                        34,954         69,915 
                                               -------------  ------------- 
    Total assets                               $   6,802,259  $   6,983,420 
                                               ===========
==  ============= 
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Liabilities:                                                                
  Deposits:                                                                 
    Demand                                     $   1,252,605  $     992,109 
    NOW                                            1,316,453      1,509,896 
    Money market                                   1,149,912      1,038,778 
    Savings                                          227,308        199,007 
    Time:                                                                   
      Less than $100,000                           1,055,271      1,332,394 
      Greater than $100,000                          705,558        847,152 
    Brokered                                         245,033        178,647 
                                               -------------  ------------- 
      Total deposits                               5,952,140      6,097,983 
  Federal funds purchased, repurchase                                       
   agreements, and other short-term borrowings        52,574        102,577 
  Federal Home Loan Bank advances                     40,125         40,625 
  Long-term debt                                     124,805        120,225 
  Unsettled securities purchases                           -         10,325 
  Accrued expenses and other liabilities              47,210         36,199 
                                               -------------  ------------- 
    Total liabilities                              6,216,854      6,407,934 
                                               -------------  ------------- 
Shareholders' equity:                                                       
  Preferred stock, $1 par value; 10,000,000                                 
   shares authorized;                                                       
    Series A; $10 stated value; 21,700 shares                               
     issued and outstanding                              217            217 
    Series B; $1,000 stated value; 180,000                                  
     shares issued and outstanding                   178,557        177,092 
    Series D; $1,000 stated value; 16,613                                   
     shares issued and outstanding                    16,613         16,613 
  Common stock, $1 par value; 100,000,000                                   
   shares authorized; 42,423,870 and                                        
   41,647,100 shares issued and outstanding           42,424         41,647 
  Common stock, non-voting, $1 par value;                                   
   30,000,000 shares authorized; 15,316,794                                 
   and 15,914,209 shares issued and                                         
   outstanding                                        15,317         15,914 
  Common stock issuable; 133,238 and 93,681                                 
   shares                                              3,119          3,233 
  Capital surplus                                  1,057,951      1,054,940 
  Accumulated deficit                               (705,153)      (730,861)
  Accumulated other comprehensive loss               (23,640)        (3,309)
                                               -------------  ------------- 
    Total shareholders' equity                       585,405        575,486 
                                               -------------  ------------- 
    Total liabilities and shareholders' equity $   6,802,259  $   6,983,420 
                                               =============  ============= 
                                                                            
                                                                            

 
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Average Consolidated Balance Sheets and Net Interest Analysis               
For the Three Months Ended December 31,                                     
                                                                            
                       ---------------------------------------------------- 
                                  2012                       2011           
                       -------------------------  ------------------------- 
(dollars in thousands,   Average            Avg.    Average            Avg. 
 taxable equivalent)     Balance   Interest Rate    Balance   Interest Rate 
                       ----------  -------- ----  ----------  -------- ---- 
Assets:                                                                     
Interest-earning                                                            
 assets:                                                                    
  Loans, net of                                                             
   unearned income                                                          
   (1)(2)              $4,190,725  $ 53,366 5.07% $4,175,320  $ 57,773 5.49%
  Taxable securities                                                        
   (3)                  2,065,311     9,622 1.86   2,114,069    13,041 2.47 
  Tax-exempt                                                                
   securities (1)(3)       22,483       358 6.37      27,224       417 6.13 
  Federal funds sold                                                        
   and other interest-                                                      
   earning assets         203,090     1,104 2.17     371,606       674  .73 
                       ----------  --------       ----------  --------      
                                                                            
      Total interest-                                                       
       earning assets   6,481,609    64,450 3.96   6,688,219    71,905 4.27 
                       ----------  --------       ----------  --------      
Non-interest-earning                                                        
 assets:                                                                    
  Allowance for loan                                                        
   losses                (112,846)                  (145,559)               
  Cash and due from                                                         
   banks                   54,714                     54,485                
  Premises and                                                              
   equipment              169,967                    176,182                
  Other assets (3)        184,398                    245,664                
                       ----------                 ----------                
      Total assets     $6,777,842                 $7,018,991                
                       ==========                 ==========                
                                                                            
Liabilities and                                                             
 Shareholders' Equity:                                                      
Interest-bearing                                                            
 liabilities:                                                               
  Interest-bearing                                                          
   deposits:                                                                
    NOW                $1,261,796       462  .15  $1,451,581       807  .22 
    Money market        1,200,701       617  .20   1,041,375       800  .30 
    Savings               224,624        38  .07     198,541        41  .08 
    Time less than                                                          
     $100,000           1,082,761     1,982  .73   1,358,367     3,668 1.07 
    Time greater than                           
                            
     $100,000             715,902     1,673  .93     875,434     2,867 1.30 
    Brokered time                                                           
     deposits             135,708        19  .06     180,933       803 1.76 
                       ----------  --------       ----------  --------      
      Total interest-                                                       
       bearing                                                              
       deposits         4,621,492     4,791  .41   5,106,231     8,986  .70 
                       ----------  --------       ----------  --------      
                                                                            
    Federal funds                                                           
     purchased and                                                          
     other borrowings      67,403       524 3.09     102,776     1,053 4.06 
    Federal Home Loan                                                       
     Bank advances         39,092        25  .25      40,625       441 4.31 
    Long-term debt        149,564     3,082 8.20     120,217     2,375 7.84 
                       ----------  --------       ----------  --------      
      Total borrowed                                                        
       funds              256,059     3,631 5.64     263,618     3,869 5.82 
                       ----------  --------       ----------  --------      
                                                                            
      Total interest-                                                       
       bearing                                                              
       liabilities      4,877,551     8,422  .69   5,369,849    12,855  .95 
                                   --------                   --------      
Non-interest-bearing                                                        
 liabilities:                                                               
  Non-interest-bearing                                                      
   deposits             1,251,327                  1,008,327                
  Other liabilities        63,785                     59,908                
                       ----------                 ----------                
      Total                                                                 
       liabilities      6,192,663                  6,438,084                
Shareholders' equity      585,179                    580,907                
                       ----------                 ----------                
      Total                                                                 
       liabilities and                                                      
       shareholders'                                                        
       equity          $6,777,842                 $7,018,991                
                       ==========                 ==========                
                                                                            
Net interest revenue               $ 56,028                   $ 59,050      
                                   ========                   ========      
Net interest-rate                                                           
 spread                                     3.27%                      3.32%
                                            ====                       ==== 
                                                                            
Net interest margin                                                         
 (4)                                        3.44%                      3.51%
                                            ====                       ==== 
                                                                            
(1) Interest revenue on tax-exempt securities and loans has been increased  
 to reflect comparable interest on taxable securities and loans. The rate   
 used was 39%, reflecting the statutory federal income tax rate and the     
 federal tax adjusted state income tax rate.                                
                                                                            
(2) Included in the average balance of loans outstanding are loans where    
 the accrual of interest has been discontinued and loans that are held for  
 sale.                                                                      
(3) Securities available for sale are shown at amortized cost. Pretax       
 unrealized gains of $22.2 million in 2012 and $31.3 million in 2011 are    
 included in other assets for purposes of this presentation.                
                                                                            
(4) Net interest margin is taxable equivalent net-interest revenue divided  
 by average interest-earning assets.                                        
                                                                            
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Average Consolidated Balance Sheets and Net Interest Analysis               
For the Twelve Months Ended December 31,                                    
                                                                            
                       -------------------------  ------------------------- 
                                  2012                       2011           
                       -------------------------  ------------------------- 
(dollars in thousands,   Average            Avg.    Average            Avg. 
 taxable equivalent)     Balance   Interest Rate    Balance   Interest Rate 
                       ----------  -------- ----  ----------  -------- ---- 
Assets:                                                                     
Interest-earning                                                            
 assets:                                                                    
  Loans, net of                                                             
   unearned income                                                          
   (1)(2)              $4,165,520  $217,467 5.22% $4,307,111  $239,195 5.55%
  Taxable securities                                                        
   (3)                  2,065,162    43,657 2.11   1,973,678    55,251 2.80 
  Tax-exempt                                                                
   securities (1)(3)       23,759     1,565 6.59      25,693     1,651 6.43 
  Federal funds sold                                                        
   and other interest-                                                      
   earning assets         292,857     4,740 1.62     478,403     3,247  .68 
                       ----------  --------       ----------  --------      
                                                                            
      Total interest-                                                       
       earning assets   6,547,298   267,429 4.08   6,784,885   299,344 4.41 
                       ----------  --------       ----------  --------      
Non-interest-earning                                                        
 assets:                                                                    
  Allowance for loan                                                        
   losses                (114,647)                  (145,656)               
  Cash and due from                                                         
   banks                   53,247                     90,212                
  Premises and                                                              
   equipment              172,544                    178,061                
  Other assets (3)        206,609                 
   281,233                
                       ----------                 ----------                
      Total assets     $6,865,051                 $7,188,735                
                       ==========                 ==========                
                                                                            
Liabilities and                                                             
 Shareholders' Equity:                                                      
Interest-bearing                                                            
 liabilities:                                                               
  Interest-bearing                                                          
   deposits:                                                                
    NOW                $1,293,510     2,049  .16  $1,348,493     3,998  .30 
    Money market        1,140,354     2,518  .22     993,871     5,456  .55 
    Savings               216,880       150  .07     195,468
       234  .12 
    Time less than                                                          
     $100,000           1,170,202     9,788  .84   1,471,596    18,648 1.27 
    Time greater than                                                       
     $100,000             766,411     8,027 1.05     948,659    14,347 1.51 
    Brokered time                                                           
     deposits             155,902     1,703 1.09     401,393     6,156 1.53 
                       ----------  --------       ----------  --------      
      Total interest-                                                       
       bearing                                                              
       deposits         4,743,259    24,235  .51   5,359,480    48,839  .91 
                       ----------  --------       ----------  --------      
                                                                            
    Federal funds                                                           
     purchased and                                                          
     other borrowings      80,593     2,987 3.71     102,727     4,250 4.14 
    Federal Home Loan                                                       
     Bank advances        124,771       907  .73      47,220     2,042 4.32 
    Long-term debt        127,623    10,201 7.99     139,666    10,544 7.55 
                       ----------  --------       ----------  --------      
      Total borrowed                                                        
       funds              332,987    14,095 4.23     289,613    16,836 5.81 
                       ----------  --------       ----------  --------      
                                                                            
      Total interest-                                                       
       bearing                                                              
       liabilities      5,076,246    38,330  .76   5,649,093    65,675 1.16 
                                   --------                   --------      
Non-interest-bearing                                                        
 liabilities:                                                               
  Non-interest-bearing                                                      
   deposits             1,142,236                    915,649                
  Other liabilities        64,986                     66,809                
                       ----------                 ----------                
      Total                                                                 
       liabilities      6,283,468                  6,631,551                
Shareholders' equity      581,583                    557,184                
                       ----------                 ----------                
      Total                                                                 
       liabilities and                                                      
       shareholders'                                                        
       equity          $6,865,051                 $7,188,735                
                       ==========                 ==========                
                                                                            
Net interest revenue               $229,099                   $233,669      
                                   ========                   ========      
Net interest-rate                                                           
 spread                                     3.32%                      3.25%
                                            ====                       ==== 
                                                                            
Net interest margin                                                         
 (4)                                        3.50%                      3.44%
                                            ====                       ==== 
                                                                            
(1) Interest revenue on tax-exempt securities and loans has been increased  
 to reflect comparable interest on taxable securities and loans. The rate   
 used was 39%, reflecting the statutory federal income tax rate and the     
 federal tax adjusted state income tax rate.                                
(2) Included in the average balance of loans outstanding are loans where    
 the accrual of interest has been discontinued and loans that are held for  
 sale.                                                                      
(3) Securities available for sale are shown at amortized cost. Pretax       
 unrealized gains of $23.6 million in 2012 and $32.2 million in 2011 are    
 included in other assets for purposes of this presentation.                
(4) Net interest margin is taxable equivalent net-interest revenue divided  
 by average interest-earning assets.                                        

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