SEC Filing | United Community Banks, Inc.

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t66493_8k.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

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

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):

October 23, 2009

United Community Banks, Inc.

(Exact name of registrant as specified in its charter)

Georgia	No. 0-21656	No. 58-180-7304
(State or other jurisdiction of	(Commission File Number)	(IRS Employer
incorporation)		Identification No.)

63 Highway 515, P.O. Box 398

Blairsville, Georgia 30512

(Address of principal executive offices)

Registrant's telephone number, including area code:

(706) 781-2265

Not applicable

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

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

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

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

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

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

Item 2.02	Results of Operation and Financial Condition

	On October 23, 2009, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the quarter ended September 30, 2009 (the “News Release”). The News Release, including financial schedules, is attached as Exhibit 99.1 to this report. In connection with issuing the News Release, on October 23, 2009 at 11:00 a.m. EST, the Registrant intends to hold a conference call/webcast to discuss the News Release. In addition to the News Release, during the conference call the Registrant intends to discuss certain financial information contained in the Third Quarter 2009 Investor Presentation (the “Investor Presentation”) which will be posted to the Registrant’s website. The Investor Presentation is attached as Exhibit 99.2 to this report. The presentation of the Registrant’s financial results included operating performance measures and core earnings measures, which are measures of performance determined by methods other than in accordance with generally accepted accounting principles, or GAAP. Management included non-GAAP operating performance and core earnings measures because it believes it is useful for evaluating the Registrant’s operations and performance over periods of time, and uses operating performance and core earnings measures in managing and evaluating the Registrant’s business and intends to use it in discussions about the Registrant’s operations and performance. Operating performance measures for the third quarter of 2009 exclude the effects of a $25 million non-recurring, non-cash goodwill impairment charge. Operating performance measures for the first nine months of 2009 also exclude the effects of a $70 million non-cash goodwill impairment charge in the first quarter (bringing the total goodwill impairment charge for the nine months to $95 million), $2.9 million in non-recurring severance charges related to a reduction in workforce recorded in the first quarter and an $11.4 million gain in the second quarter from the acquisition of Southern Community Bank that resulted from a bargain purchase. These items have been excluded from operating performance measures because management feels that the two expense items and the bargain purchase gain are non-recurring in nature and do not reflect overall trends in the Registrant’s earnings. Additionally, core earnings measures exclude credit related costs such as the provision for loan losses and foreclosed property expense, securities gains and losses, income taxes and other items of a non-recurring nature. Core earnings are useful in evaluating the underlying earnings performance trends of the Registrant. Management believes these non-GAAP performance measures may provide users of the Registrant’s financial information with a meaningful measure for assessing the Registrant’s financial results and comparing those financial results to prior periods. Operating performance and core earnings measures should be viewed in addition to, and not as an alternative or substitute for, the Registrant’s performance measures determined in accordance with GAAP, and is not necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Item 9.01

Financial Statements and Exhibits

(a)

Financial statements: None

(b)

Pro forma financial information: None

(c)

Exhibits:

99.1

Press Release, dated October 23, 2009

99.2

Investor Presentation, Third Quarter 2009

SIGNATURES

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

	/s/ Rex S. Schuette
	Rex S. Schuette
	Executive Vice President and
October 23, 2009	Chief Financial Officer

ex99-1.htm

EXHIBIT 99.1

For Immediate Release

For more information:

Rex S. Schuette

Chief Financial Officer

(706) 781-2266

Rex_Schuette@ucbi.com

UNITED COMMUNITY BANKS, INC. REPORTS

NET OPERATING LOSS FOR THIRD QUARTER 2009

●

Capital significantly strengthened by $222.5 million public common offering

●

Provision for loan losses of $95.0 million exceeded charge-offs by $4.5 million

●

Allowance-to-loans ratio of 2.80 percent, up from 2.64 percent last quarter

●

Margin improvement of 11 basis points this quarter to 3.39 percent, up 69 basis points year-to-date

●

Non-cash goodwill impairment charge of $25.0 million, or $.50 per diluted share

BLAIRSVILLE, GA – October 23, 2009 – United Community Banks, Inc. (NASDAQ: UCBI) today reported a net operating loss of $43.7 million, or 93 cents per diluted share, for the third quarter of 2009. These results reflect elevated credit costs, including a $95 million provision for loan losses. Net operating loss does not include a $25 million non-cash charge for impairment of goodwill. Including this non-recurring charge, the net loss for the quarter was $68.7 million, or $1.43 per diluted share.

Net operating loss for the nine months ended September 30, 2009 was $98.8 million, or $2.17 per diluted share, and did not reflect $95 million of non-cash charges for goodwill impairment in the first and third quarters. Also not included were $2.9 million in severance costs in the first quarter and the $11.4 million gain on the Southern Community Bank acquisition in the second quarter, all of which are considered non-recurring items and therefore excluded from operating earnings. Including these non-recurring items, the net loss for the first nine months of 2009 was $188.5 million, or $4.01 per diluted share.

“We continue our strategy of aggressively disposing of problem credits,” stated Jimmy Tallent, president and chief executive officer. “At the same time, we are sharply focused on offensive strategies to drive shareholder value long-term by increasing core earnings through margin expansion, expense reductions and core deposit growth. This has been accomplished each quarter throughout 2009.”

Total loans were $5.4 billion at quarter-end, down $150 million from the second quarter and $467 million from the third quarter of 2008, reflecting continued reductions in exposure to the residential construction market and the overall weak business environment. As of September 30, 2009, residential construction loans were $1.2 billion, or 22 percent of total loans, a decrease of $411 million from a year ago and $130 million from the second quarter of 2009. “Partially offsetting the decline in total loans was our growth in Atlanta,” stated Tallent. “I am very pleased with our progress in restructuring the Atlanta region, where we have closed $180 million in small business and commercial loans in the first nine months of 2009.”

Taxable equivalent net interest revenue of $63.0 million reflected an increase of $2.1 million from last quarter, $4.2 million from a year ago, and an increase of $11.1 million from the fourth quarter of 2008. The taxable equivalent net interest margin was 3.39 percent compared with 3.28 percent for the second quarter of 2009, 3.17 percent for the third quarter of 2008, and 2.70 percent for the fourth quarter of 2008.

“The 11 basis point improvement in our net interest margin this quarter reflects our ongoing efforts to improve loan and deposit pricing,” stated Tallent. “We continued to maintain our loan pricing strategy with higher credit spreads while lowering pricing on new and renewed time deposits. During the third quarter, over $400 million of time deposits matured that were part of a 15-month special program completed in the second quarter of 2008. We retained about half of these deposits with a rate reduction of over 225 basis points. We will continue to actively pursue lowering deposit rates to improve our margin while balancing liquidity needs with our goal of maximizing earnings.”

“Excluding public funds and the deposits obtained through the acquisition, core transaction deposits increased $71 million this quarter and have grown $200 million year-to-date, or 13 percent on an annualized basis,” Tallent said. “This growth reflects the success of our United Express program for customer referrals and cross-selling. Year-to-date we opened 9,776 net new deposit accounts. During the third quarter alone, we have added 17, 785 new services.”

The third quarter provision for loan losses was $95.0 million compared with $60.0 million for the second quarter of 2009. Net charge-offs for the third quarter were $90.5 million compared with $58.3 million for the second quarter of 2009. At quarter-end, non-performing assets totaled $415.0 million compared with $392.6 million at June 30, 2009. The ratio of non-performing assets to total assets at the end of the third and second quarters was 4.91 percent and 4.63 percent, respectively. The allowance for loan losses to total loans was 2.80 percent and 2.64 percent, respectively.

“Credit quality continues to be our primary area of focus, particularly in the residential construction portfolio,” Tallent said. “While we have seen a rise in all categories of non-performing assets, the inflow is still driven by continued weakness in the housing and construction markets. The good news is that the residential construction problem credits in the Atlanta region are starting to decline on a linked-quarter basis. We have seen some negative migration in the commercial real estate categories, but the amounts are still within reasonable levels in light of current economic conditions. Though we could see more negative migration in commercial loans, we are cautiously optimistic because the portfolio is diversified, cash flow sources are varied, and a large percentage of the loans are owner-occupied.”

Operating fee revenue of $15.7 million reflected a $2.6 million increase from last quarter and a year ago. Operating fee revenue excludes the $11.4 million gain on the Southern Community Bank acquisition recorded last quarter. Consulting fees of $2.3 million were up $555,000 from last year due to an increase in demand for assistance with regulatory compliance matters. Mortgage loan fees of $1.8 million were up $422,000 from a year ago due to a high level of refinancing activity. Net securities gains of $1.1 million were up $1.0 million compared to the third quarter of 2008.

Operating expenses for the third quarter of 2009 were $53.6 million, a decrease of $3.4 million from last year. The decrease was primarily due to lower foreclosed property costs of $2.2 million and lower salary and benefit costs of $2.7 million. The decrease in salary and benefit costs were primarily due to the reduction in work force of 174 staff year-to-date and lower bonus incentives, which were offset partially by the 54 staff added last quarter through the acquisition. Additionally, several expense categories benefited this quarter from cost reductions including communications, advertising and printing costs. Partially offsetting the benefit of these lower costs were the rate increase for FDIC insurance premiums of $1.3 million and higher professional and legal fees related to the credit cycle.

The effective tax rate for the third quarter of 2009 was 28 percent, compared to 35 percent for the third quarter of 2008. The lower effective tax rate in the third quarter of 2009 was due to the goodwill impairment charge for which no tax benefit is recognized. Excluding the goodwill impairment charge, the effective tax rate for the third quarter of 2009 was 38 percent. The projected effective tax rate for the balance of 2009 is 38 percent.

At September 30, 2009, the company’s regulatory capital ratios were as follows: Tier I Risk-Based Capital of 12.7 percent; Leverage of 9.5 percent; and Total Risk-Based of 15.3 percent. Also, the quarter-end tangible equity-to-assets ratio was 9.6 percent, the tangible common equity-to-assets ratio was 7.4 percent and the tangible common equity to risk weighted assets was 10.3 percent. The third quarter capital ratios reflect the successful common stock offering that closed on September 30, 2009. United issued 44,505,000 shares of common stock at a price of $5.00 per share and the net proceeds increased capital by $210.9 million.

“The additional capital significantly strengthens our balance sheet, allowing us to continue to aggressively deal with problem credits,” stated Tallent. “Even more important, it positions us to take advantage of once-in-a-lifetime opportunities to grow our business through organic growth, FDIC assisted transactions and customer dislocation within our markets. All of our strategies support our goal of building long-term shareholder value. While there is a lot of work yet to be done, we have the strongest sense of urgency to return United to the higher levels of profitability that it has achieved for decades.”

Conference Call

United Community Banks will hold a conference call today, Friday, October 23, 2009, 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 (888) 211-7262 and use the password ‘UCBI.’ The conference call also will be webcast and can be accessed by selecting ‘Calendar of Events’ within the Investor Relations section of the company's website at www.ucbi.com. The Investor Presentation for Third Quarter 2009 can be accessed on the website by selecting ‘Presentations’ within the Investor Relations section.

About United Community Banks, Inc.

Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. United Community Banks has assets of $8.4 billion and operates 27 community banks with 109 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina and east Tennessee. The company specializes in providing personalized community banking services to individuals and small to mid-size businesses. United Community Banks also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United Community Banks common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at the company’s web site at www.ucbi.com.

Safe Harbor

This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of some factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled “Forward-Looking Statements” on page 3 of United Community Banks, Inc.’s annual report filed on Form 10-K with the Securities and Exchange Commission.

# # #

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information

											Third
	2009						2008				Quarter		For the Nine				YTD
(in thousands, except per share	Third		Second		First		Fourth		Third		2009-2008		Months Ended				2009-2008
data; taxable equivalent)	Quarter		Quarter		Quarter		Quarter		Quarter		Change		2009		2008		Change
INCOME SUMMARY
Interest revenue	$ 101,181		$ 102,737		$ 103,562		$ 108,434		$ 112,510				$ 307,480		$ 358,535
Interest expense	38,177		41,855		46,150		56,561		53,719				126,182		171,704
Net interest revenue	63,004		60,882		57,412		51,873		58,791		7	%	181,298		186,831		(3)	%
Provision for loan losses	95,000		60,000		65,000		85,000		76,000				220,000		99,000
Operating fee revenue (1)	15,671		13,050		12,846		10,718		13,121		19		41,567		42,423		(2)
Total revenue	(16,325)		13,932		5,258		(22,409)		(4,088)		299		2,865		130,254		(98)
Operating expenses (2)	53,606		55,348		52,569		52,439		56,970		(6)		161,523		154,260		5
Operating loss before taxes	(69,931)		(41,416)		(47,311)		(74,848)		(61,058)		15		(158,658)		(24,006)		561
Income tax benefit	(26,213)		(18,353)		(15,335)		(28,101)		(21,184)				(59,901)		(7,303)
Net operating loss (1)(2)	(43,718)		(23,063)		(31,976)		(46,747)		(39,874)		10		(98,757)		(16,703)		491
Gain from acquisitions, net of tax expense	-		7,062		-		-		-				7,062		-
Noncash goodwill impairment charge	(25,000)		-		(70,000)		-		-				(95,000)		-
Severance costs, net of tax benefit	-		-		(1,797)		-		-				(1,797)		-
Net loss	(68,718)		(16,001)		(103,773)		(46,747)		(39,874)		72		(188,492)		(16,703)		1,028
Preferred dividends and discount accretion	2,562		2,559		2,554		712		4				7,675		12
Net loss available
to common shareholders	$ (71,280)		$ (18,560)		$ (106,327)		$ (47,459)		$ (39,878)				$ (196,167)		$ (16,715)

PERFORMANCE MEASURES
Per common share:
Diluted operating loss (1)(2)	$ (.93)		$ (.53)		$ (.71)		$ (.99)		$ (.84)		11		$ (2.17)		$ (.35)		520
Diluted loss	(1.43)		(.38)		(2.20)		(.99)		(.84)		70		(4.01)		(.35)		1,046
Cash dividends declared	-		-		-		-		-				-		.18
Stock dividends declared (6)	1 for 130		1 for 130		1 for 130		1 for 130		1 for 130				3 for 130		1 for 130
Book value	8.85		13.87		14.70		16.95		17.12		(48)		8.85		17.12		(48)
Tangible book value (4)	6.50		8.85		9.65		10.39		10.48		(38)		6.50		10.48		(38)

Key performance ratios:
Return on equity (3)(5)	(45.52)	%	(11.42)	%	(58.28)	%	(23.83)	%	(19.07)	%			(39.11)	%	(2.69)	%
Return on assets (5)	(3.32)		(.78)		(5.03)		(2.19)		(1.94)				(3.05)		(.27)
Net interest margin (5)	3.39		3.28		3.08		2.70		3.17				3.25		3.35
Operating efficiency ratio (1)(2)(4)	69.15		74.15		75.15		81.34		79.35				72.72		67.43
Equity to assets	10.27		10.71		11.56		10.04		10.26				10.84		10.29
Tangible equity to assets (4)	7.55		7.96		8.24		6.56		6.64				7.92		6.71
Tangible common equity to assets (4)	5.36		5.77		6.09		6.21		6.64				5.74		6.70
Tangible common equity to
risk-weighted assets (4)	10.33		7.49		8.03		8.34		8.26				10.33		8.26

ASSET QUALITY *
Non-performing loans (NPLs)	$ 304,381		$ 287,848		$ 259,155		$ 190,723		$ 139,266				$ 304,381		$ 139,266
Foreclosed properties	110,610		104,754		75,383		59,768		38,438				110,610		38,438
Total non-performing assets (NPAs)	414,991		392,602		334,538		250,491		177,704				414,991		177,704
Allowance for loan losses	150,187		145,678		143,990		122,271		111,299				150,187		111,299
Net charge-offs	90,491		58,312		43,281		74,028		55,736				192,084		77,124
Allowance for loan losses to loans	2.80	%	2.64	%	2.56	%	2.14	%	1.91	%			2.80	%	1.91	%
Net charge-offs to average loans (5)	6.57		4.18		3.09		5.09		3.77				4.60		1.74
NPAs to loans and foreclosed properties	7.58		6.99		5.86		4.35		3.03				7.58		3.03
NPAs to total assets	4.91		4.63		4.09		2.92		2.19				4.91		2.19

AVERAGE BALANCES
Loans	$5,565,498		$5,597,259		$5,675,054		$5,784,139		$5,889,168		(5)		$ 5,612,202		$ 5,926,731		(5)
Investment securities	1,615,499		1,771,482		1,712,654		1,508,808		1,454,740		11		1,699,522		1,482,397		15
Earning assets	7,400,539		7,442,178		7,530,230		7,662,536		7,384,287		-		7,457,173		7,451,017		-
Total assets	8,208,199		8,212,140		8,372,281		8,487,017		8,164,694		1		8,263,605		8,262,853		-
Deposits	6,689,948		6,544,537		6,780,531		6,982,229		6,597,339		1		6,671,340		6,370,753		5
Shareholders’ equity	843,130		879,210		967,505		851,956		837,487		1		896,159		849,912		5
Common shares - basic	49,771		48,794		48,324		47,844		47,417				48,968		47,210
Common shares - diluted	49,771		48,794		48,324		47,844		47,417				48,968		47,210

AT PERIOD END
Loans	$5,362,689		$5,513,087		$5,632,705		$5,704,861		$5,829,937		(8)		$ 5,362,689		$ 5,829,937		(8)
Investment securities	1,532,514		1,816,787		1,719,033		1,617,187		1,400,827		9		1,532,514		1,400,827		9
Total assets	8,443,617		8,477,355		8,171,663		8,591,933		8,113,961		4		8,443,617		8,113,961		4
Deposits	6,821,306		6,848,760		6,616,488		7,003,624		6,689,335		2		6,821,306		6,689,335		2
Shareholders’ equity	1,006,638		855,272		888,853		989,382		816,880		23		1,006,638		816,880		23
Common shares outstanding	93,901		48,933		48,487		48,009		47,596				93,901		47,596

(1)	Excludes the gain from acquisition of $11.4 million, net of income tax expense of $4.3 million in the second quarter of 2009.
(2)	Excludes the non-recurring goodwill impairment charges of $25 million and $70 million in the third and first quarters of 2009, respectively, and severance costs of $2.9 million, net of income tax benefit of $1.1 million in the first quarter of 2009.
(3)	Net income available to common shareholders, which excludes preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss).
(4)	Excludes effect of acquisition related intangibles and associated amortization.
(5)	Annualized.
(6)	Number of new shares issued for shares currently held.

NM - Not meaningful.

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

UNITED COMMUNITY BANKS, INC.
Operating Earnings to GAAP Earnings Reconciliation
Selected Financial Information


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

Interest revenue reconciliation
Interest revenue - taxable equivalent	$ 101,181		$ 102,737		$ 103,562		$ 108,434		$ 112,510		$ 307,480		$ 358,535
Taxable equivalent adjustment	(580)		(463)		(488)		(553)		(571)		(1,531)		(1,708)
Interest revenue (GAAP)	$ 100,601		$ 102,274		$ 103,074		$ 107,881		$ 111,939		$ 305,949		$ 356,827

Net interest revenue reconciliation
Net interest revenue - taxable equivalent	$ 63,004		$ 60,882		$ 57,412		$ 51,873		$ 58,791		$ 181,298		$ 186,831
Taxable equivalent adjustment	(580)		(463)		(488)		(553)		(571)		(1,531)		(1,708)
Net interest revenue (GAAP)	$ 62,424		$ 60,419		$ 56,924		$ 51,320		$ 58,220		$ 179,767		$ 185,123

Fee revenue reconciliation
Operating fee revenue	$ 15,671		$ 13,050		$ 12,846		$ 10,718		$ 13,121		$ 41,567		$ 42,423
Gain from acquisition	-		11,390		-		-		-		11,390		-
Fee revenue (GAAP)	$ 15,671		$ 24,440		$ 12,846		$ 10,718		$ 13,121		$ 52,957		$ 42,423

Total revenue reconciliation
Total operating revenue	$ (16,325)		$ 13,932		$ 5,258		$ (22,409)		$ (4,088)		$ 2,865		$ 130,254
Taxable equivalent adjustment	(580)		(463)		(488)		(553)		(571)		(1,531)		(1,708)
Gain from acquisition	-		11,390		-		-		-		11,390		-
Total revenue (GAAP)	$ (16,905)		$ 24,859		$ 4,770		$ (22,962)		$ (4,659)		$ 12,724		$ 128,546

Expense reconciliation
Operating expense	$ 53,606		$ 55,348		$ 52,569		$ 52,439		$ 56,970		$ 161,523		$ 154,260
Noncash goodwill impairment charge	25,000		-		70,000		-		-		95,000		-
Severance costs	-		-		2,898		-		-		2,898		-
Operating expense (GAAP)	$ 78,606		$ 55,348		$ 125,467		$ 52,439		$ 56,970		$ 259,421		$ 154,260

(Loss) income before taxes reconciliation
Operating (loss) income before taxes	$ (69,931)		$ (41,416)		$ (47,311)		$ (74,848)		$ (61,058)		$ (158,658)		$ (24,006)
Taxable equivalent adjustment	(580)		(463)		(488)		(553)		(571)		(1,531)		(1,708)
Gain from acquisition	-		11,390		-		-		-		11,390		-
Noncash goodwill impairment charge	(25,000)		-		(70,000)		-		-		(95,000)		-
Severance costs	-		-		(2,898)		-		-		(2,898)		-
(Loss) income before taxes (GAAP)	$ (95,511)		$ (30,489)		$ (120,697)		$ (75,401)		$ (61,629)		$ (246,697)		$ (25,714)

Income tax (benefit) expense reconciliation
Operating income tax (benefit) expense	$ (26,213)		$ (18,353)		$ (15,335)		$ (28,101)		$ (21,184)		$ (59,901)		$ (7,303)
Taxable equivalent adjustment	(580)		(463)		(488)		(553)		(571)		(1,531)		(1,708)
Gain from acquisition, tax expense	-		4,328		-		-		-		4,328		-
Severance costs, tax benefit	-		-		(1,101)		-		-		(1,101)		-
Income tax (benefit) expense (GAAP)	$ (26,793)		$ (14,488)		$ (16,924)		$ (28,654)		$ (21,755)		$ (58,205)		$ (9,011)

(Loss) earnings per common share reconciliation
Operating (loss) earnings per common share	$ (0.93)		$ (0.53)		$ (0.71)		$ (0.99)		$ (0.84)		$ (2.17)		$ (0.35)
Gain from acquisition	-		0.15		-		-		-		0.15		-
Noncash goodwill impairment charge	(0.50)		-		(1.45)		-		-		(1.95)		-
Severance costs	-		-		(0.04)		-		-		(0.04)		-
(Loss) earnings per common share (GAAP)	$ (1.43)		$ (0.38)		$ (2.20)		$ (0.99)		$ (0.84)		$ (4.01)		$ (0.35)

Book value reconciliation
Tangible book value	$ 6.50		$ 8.85		$ 9.65		$ 10.39		$ 10.48		$ 6.50		$ 10.48
Effect of goodwill and other intangibles	2.35		5.02		5.05		6.56		6.64		2.35		6.64
Book value (GAAP)	$ 8.85		$ 13.87		$ 14.70		$ 16.95		$ 17.12		$ 8.85		$ 17.12

Efficiency ratio reconciliation
Operating efficiency ratio	69.15	%	74.15	%	75.15	%	81.34	%	79.35	%	72.72	%	67.43	%
Gain from acquisition	-		(9.82)		-		-		-		(3.55)		-
Noncash goodwill impairment charge	32.24		-		100.06		-		-		40.68		-
Severance costs	-		-		4.14		-		-		1.24		-
Efficiency ratio (GAAP)	101.39	%	64.33	%	179.35	%	81.34	%	79.35	%	111.09	%	67.43	%

Average equity to assets reconciliation
Tangible common equity to assets	5.36	%	5.77	%	6.09	%	6.21	%	6.64	%	5.74	%	6.70	%
Effect of preferred equity	2.19		2.19		2.15		.35		-		2.18		.01
Tangible equity to assets	7.55		7.96		8.24		6.56		6.64		7.92		6.71
Effect of goodwill and other intangibles	2.72		2.75		3.32		3.48		3.62		2.92		3.58
Equity to assets (GAAP)	10.27	%	10.71	%	11.56	%	10.04	%	10.26	%	10.84	%	10.29	%

Actual tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets	10.33	%	7.49	%	8.03	%	8.34	%	8.26	%	10.33	%	8.26	%
Effect of other comprehensive income	(.87)		(.72)		(1.00)		(.91)		(.28)		(.87)		(.28)
Effect of deferred tax limitation	(.56)		(.22)		-		-		-		(.56)		-
Effect of trust preferred	.89		.90		.89		.88		.68		.89		.68
Effect of preferred equity	2.94		2.99		2.96		2.90		-		2.94		-
Tier I capital ratio (Regulatory)	12.73	%	10.44	%	10.88	%	11.21	%	8.66	%	12.73	%	8.66	%

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
	2009			2008		Linked Quarter Change(2)		Year over Year Change
	Third	Second	First	Fourth	Third
(in millions)	Quarter (1)	Quarter (1)	Quarter	Quarter	Quarter	Actual		Actual
LOANS BY CATEGORY
Commercial (sec. by RE)	$ 1,787	$ 1,797	$ 1,779	$ 1,627	$ 1,604	(2)	%	11	%
Commercial construction	380	379	377	500	509	1		(25)
Commercial & industrial	403	399	387	410	425	4		(5)
Total commercial	2,570	2,575	2,543	2,537	2,538	(1)		1
Residential construction	1,185	1,315	1,430	1,479	1,596	(40)		(26)
Residential mortgage	1,461	1,470	1,504	1,526	1,528	(2)		(4)
Consumer / installment	147	153	156	163	168	(16)		(13)
Total loans	$ 5,363	$ 5,513	$ 5,633	$ 5,705	$ 5,830	(11)		(8)


LOANS BY MARKET
Atlanta MSA	$ 1,526	$ 1,605	$ 1,660	$ 1,706	$ 1,800	(20)	%	(15)	%
Gainesville MSA	402	413	422	420	426	(11)		(6)
North Georgia	1,942	1,978	2,014	2,040	2,066	(7)		(6)
Western North Carolina	786	794	808	810	815	(4)		(4)
Coastal Georgia	440	455	460	464	458	(13)		(4)
East Tennessee	267	268	269	265	265	(1)		1
Total loans	$ 5,363	$ 5,513	$ 5,633	$ 5,705	$ 5,830	(11)		(8)


RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development	$ 380	$ 413	$ 445	$ 484	$ 516	(32)	%	(26)	%
Land loans	159	159	155	153	142	-		12
Lot loans	336	369	390	358	385	(36)		(13)
Total	875	941	990	995	1,043	(28)		(16)

House loans
Spec	218	268	317	347	393	(75)	%	(45)	%
Sold	92	106	123	137	160	(53)		(43)
Total	310	374	440	484	553	(68)		(44)
Total residential construction	$ 1,185	$ 1,315	$ 1,430	$ 1,479	$ 1,596	(40)		(26)


RESIDENTIAL CONSTRUCTION - ATLANTA MSA
Dirt loans
Acquisition & development	$ 100	$ 124	$ 148	$ 167	$ 185	(77)	%	(46)	%
Land loans	61	63	52	56	47	(13)		30
Lot loans	54	81	98	86	103	(133)		(48)
Total	215	268	298	309	335	(79)		(36)

House loans
Spec	91	127	164	189	227	(113)	%	(60)	%
Sold	22	29	33	40	49	(97)		(55)
Total	113	156	197	229	276	(110)		(59)
Total residential construction	$ 328	$ 424	$ 495	$ 538	$ 611	(91)		(46)

(1) Excludes total loans of $104.0 million and $109.9 million as of September 30, 2009 and June 30, 2009, respectively, that are covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank. (2) Annualized.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)

	Third Quarter 2009				Second Quarter 2009					First Quarter 2009
	Non-performing	Foreclosed		Total	Non-performing		Foreclosed	Total		Non-performing	Foreclosed	Total
(in thousands)	Loans	Properties		NPAs	Loans		Properties	NPAs		Loans	Properties	NPAs
NPAs BY CATEGORY
Commercial (sec. by RE)	$ 38,379	$ 12,566		$ 50,945	$ 37,755		$ 5,395	$ 43,150		$ 18,188	$ 3,811	$ 21,999
Commercial construction	38,505	5,543		44,048	15,717		5,847	21,564		6,449	2,948	9,397
Commercial & industrial	3,794	-		3,794	11,378		-	11,378		12,066	-	12,066
Total commercial	80,678	18,109		98,787	64,850		11,242	76,092		36,703	6,759	43,462
Residential construction	171,027	79,045		250,072	176,400		81,648	258,048		187,656	58,327	245,983
Residential mortgage	50,626	13,456		64,082	44,256		11,864	56,120		33,148	10,297	43,445
Consumer / installment	2,050	-		2,050	2,342		-	2,342		1,648	-	1,648
Total NPAs	$ 304,381	$ 110,610		$ 414,991	$ 287,848		$ 104,754	$ 392,602		$ 259,155	$ 75,383	$ 334,538


NPAs BY MARKET
Atlanta MSA	$ 120,599	$ 54,670		$ 175,269	$ 148,155		$ 50,450	$ 198,605		$ 131,020	$ 48,574	$ 179,594
Gainesville MSA	12,916	8,429		21,345	9,745		3,511	13,256		17,448	694	18,142
North Georgia	96,373	36,718		133,091	72,174		37,454	109,628		66,875	20,811	87,686
Western North Carolina	25,775	5,918		31,693	21,814		7,245	29,059		21,240	3,067	24,307
Coastal Georgia	38,414	3,045		41,459	30,311		3,904	34,215		15,699	1,286	16,985
East Tennessee	10,304	1,830		12,134	5,649		2,190	7,839		6,873	951	7,824
Total NPAs	$ 304,381	$ 110,610		$ 414,991	$ 287,848		$ 104,754	$ 392,602		$ 259,155	$ 75,383	$ 334,538


	Third Quarter 2009			Second Quarter 2009			First Quarter 2009
		Net Charge-			Net Charge-			Net Charge-
		Offs to			Offs to			Offs to
	Net	Average		Net	Average		Net	Average
(in thousands)	Charge-Offs	Loans (2)		Charge-Offs	Loans (2)		Charge-Offs	Loans (2)
NET CHARGE-OFFS BY CATEGORY
Commercial (sec. by RE)	$ 10,568	2.33	%	$ 5,986	1.34	%	$ 826	.20	%
Commercial construction	4,369	4.55		756	.80		54	.05
Commercial & industrial	1,792	1.76		3,107	3.16		873	.89
Total commercial	16,729	2.57		9,849	1.54		1,753	.28
Residential construction	67,520	21.31		44,240	12.90		37,762	10.52
Residential mortgage	5,051	1.36		3,526	.95		2,984	.80
Consumer / installment	1,191	3.13		697	1.80		782	1.99
Total	$ 90,491	6.57		$ 58,312	4.18		$ 43,281	3.09


NET CHARGE-OFFS BY MARKET
Atlanta MSA	$ 50,129	12.61	%	$ 37,473	8.89	%	$ 26,228	6.16	%
Gainesville MSA	1,473	1.60		4,125	4.38		1,105	1.18
North Georgia	24,017	4.74		12,571	2.52		8,208	1.64
Western North Carolina	3,949	1.98		1,015	.51		3,669	1.83
Coastal Georgia	10,051	8.78		969	.85		3,229	2.84
East Tennessee	872	1.30		2,159	3.21		842	1.28
Total	$ 90,491	6.57		$ 58,312	4.18		$ 43,281	3.09


	Third			Second			First
(in thousands)	Quarter 2009			Quarter 2009			Quarter 2009
FORECLOSED PROPERTIES
Beginning balance	$ 104,754			$ 75,383			$ 59,768

Foreclosures transferred in	56,624			64,417			38,742
Capital costs added	579			1,324			1,452
Write downs	(1,906)			(2,738)			(2,151)
Proceeds from sales	(49,441)			(33,632)			(22,428)

Total	$ 110,610			$ 104,754			$ 75,383

(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 Income (Unaudited)
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands, except per share data)	2009			2008			2009			2008

Interest revenue:
Loans, including fees	$	80,874		$	93,233		$	244,445		$	299,550
Investment securities, including tax exempt of $328, $348, $956 and $1,140		18,820			18,606			60,057			56,905
Federal funds sold, commercial paper, deposits in banks and other		907			100			1,447			372
Total interest revenue		100,601			111,939			305,949			356,827

Interest expense:
Deposits:
NOW		2,528			6,778			8,708			22,581
Money market		2,711			2,296			7,217			7,519
Savings		130			153			378			560
Time		28,183			39,044			96,300			116,756
Total deposit interest expense		33,552			48,271			112,603			147,416
Federal funds purchased, repurchase agreements
and other short-term borrowings		613			1,116			1,761			7,254
Federal Home Loan Bank advances		1,300			2,105			3,577			10,668
Long-term debt		2,712			2,227			8,241			6,366
Total interest expense		38,177			53,719			126,182			171,704
Net interest revenue		62,424			58,220			179,767			185,123
Provision for loan losses		95,000			76,000			220,000			99,000
Net interest revenue after provision for loan losses		(32,576	)		(17,780	)		(40,233	)		86,123

Fee revenue:
Service charges and fees		8,138			8,171			22,729			23,941
Mortgage loan and other related fees		1,832			1,410			7,308			5,575
Consulting fees		2,282			1,727			5,048			5,786
Brokerage fees		456			905			1,642			2,812
Securities gains, net		1,149			120			741			477
Gain from acquisition		-			-			11,390			-
Other		1,814			788			4,099			3,832
Total fee revenue		15,671			13,121			52,957			42,423
Total revenue		(16,905	)		(4,659	)		12,724			128,546

Operating expenses:
Salaries and employee benefits		25,881			28,626			82,778			86,133
Communications and equipment		3,732			3,909			11,106			11,593
Occupancy		4,098			3,905			11,758			11,325
Advertising and public relations		887			1,399			3,187			4,759
Postage, printing and supplies		1,277			1,493			3,753			4,533
Professional fees		2,255			1,596			7,354			5,196
Foreclosed property		7,918			10,109			17,974			13,872
FDIC assessments and other regulatory charges		2,801			1,509			12,293			4,040
Amortization of intangibles		813			752			2,291			2,264
Other		3,944			3,672			9,029			10,545
Goodwill impairment		25,000			-			95,000			-
Severance costs		-			-			2,898			-
Total operating expenses		78,606			56,970			259,421			154,260
Loss before income taxes		(95,511	)		(61,629	)		(246,697	)		(25,714	)
Income tax benefit		(26,793	)		(21,755	)		(58,205	)		(9,011	)
Net loss		(68,718	)		(39,874	)		(188,492	)		(16,703	)

Preferred stock dividends, including discount accretion		2,562			4			7,675			12
Net loss available to common shareholders	$	(71,280	)	$	(39,878	)	$	(196,167	)	$	(16,715	)

Basic loss per common share	$	(1.43	)	$	(.84	)	$	(4.01	)	$	(.35	)
Diluted loss per common share		(1.43	)		(.84	)		(4.01	)		(.35	)
Weighted average common shares outstanding - Basic		49,771			47,417			48,968			47,210
Weighted average common shares outstanding - Diluted		49,771			47,417			48,968			47,210

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
	September 30,		December 31,			September 30,
(in thousands, except share and per share data)	2009		2008			2008
	(unaudited)		(audited)			(unaudited)
ASSETS

Cash and due from banks	$	195,559	$	116,395		$	126,033
Interest-bearing deposits in banks		78,589		8,417			40,707
Federal funds sold, commercial paper and short-term investments		397,361		368,609			-
Cash and cash equivalents		671,509		493,421			166,740

Securities available for sale		1,532,514		1,617,187			1,400,827
Mortgage loans held for sale		20,460		20,334			17,763
Loans, net of unearned income		5,362,689		5,704,861			5,829,937
Less allowance for loan losses		150,187		122,271			111,299
Loans, net		5,212,502		5,582,590			5,718,638

Covered assets		197,914		-			-
Premises and equipment, net		179,467		179,160			179,727
Accrued interest receivable		35,679		46,088			47,920
Goodwill and other intangible assets		226,008		321,798			322,544
Other assets		367,564		331,355			259,802
Total assets	$	8,443,617	$	8,591,933		$	8,113,961

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand	$	703,054	$	654,036		$	680,196
NOW		1,318,264		1,543,385			1,393,928
Money market		687,780		466,750			394,358
Savings		180,738		170,275			179,274
Time:
Less than $100,000		1,854,726		1,953,235			1,814,926
Greater than $100,000		1,237,172		1,422,974			1,481,512
Brokered		839,572		792,969			745,141
Total deposits		6,821,306		7,003,624			6,689,335

Federal funds purchased, repurchase agreements, and other short-term borrowings		101,951		108,411			119,699
Federal Home Loan Bank advances		314,704		235,321			285,362
Long-term debt		150,046		150,986			137,996
Accrued expenses and other liabilities		48,972		104,209			64,689
Total liabilities		7,436,979		7,602,551			7,297,081

Shareholders' equity:
Preferred stock, $1 par value; 10,000,000 shares authorized;
Series A; $10 stated value; 21,700, 25,800 and 25,800 shares
issued and outstanding		217		258			258
Series B; $1,000 stated value; 180,000 shares issued and outstanding		174,095		173,180			-
Common stock, $1 par value; 100,000,000 shares authorized;
93,901,492, 48,809,301 and 48,809,301 shares issued		93,901		48,809			48,809
Common stock issuable; 196,818, 129,304 and 116,567 shares		3,471		2,908			2,762
Capital surplus		620,494		460,708			457,779
Retained earnings		62,786		265,405			317,544
Treasury stock; 799,892 and 1,213,182 shares, at cost		-		(16,465	)		(27,024	)
Accumulated other comprehensive income		51,674		54,579			16,752
Total shareholders' equity		1,006,638		989,382			816,880

Total liabilities and shareholders' equity	$	8,443,617	$	8,591,933		$	8,113,961

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended September 30,
		2009				2008
	Average		Avg.		Average		Avg.
(dollars in thousands, taxable equivalent)	Balance	Interest	Rate		Balance	Interest	Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2)	$ 5,565,498	$ 80,880	5.77	%	$ 5,889,168	$ 93,270	6.30	%
Taxable securities (3)	1,585,154	18,492	4.67		1,422,321	18,258	5.13
Tax-exempt securities (1)(3)	30,345	537	7.08		32,419	573	7.07
Federal funds sold and other interest-earning assets	219,542	1,272	2.32		40,379	409	4.05

Total interest-earning assets	7,400,539	101,181	5.43		7,384,287	112,510	6.07
Non-interest-earning assets:
Allowance for loan losses	(147,074)				(93,687)
Cash and due from banks	107,062				111,741
Premises and equipment	179,764				180,825
Other assets (3)	667,908				581,528
Total assets	$ 8,208,199				$ 8,164,694

Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$ 1,238,596	$ 2,528	.81		$ 1,463,744	$ 6,778	1.84
Money market	628,392	2,711	1.71		421,626	2,296	2.17
Savings	180,216	130	.29		182,525	153	.33
Time less than $100,000	1,918,439	13,300	2.75		1,779,550	17,812	3.98
Time greater than $100,000	1,292,786	10,106	3.10		1,530,719	15,825	4.11
Brokered	707,678	4,777	2.68		530,705	5,407	4.05
Total interest-bearing deposits	5,966,107	33,552	2.23		5,908,869	48,271	3.25

Federal funds purchased and other borrowings	234,211	613	1.04		256,742	1,116	1.73
Federal Home Loan Bank advances	210,625	1,300	2.45		286,540	2,105	2.92
Long-term debt	150,353	2,712	7.16		118,756	2,227	7.46
Total borrowed funds	595,189	4,625	3.08		662,038	5,448	3.27

Total interest-bearing liabilities	6,561,296	38,177	2.31		6,570,907	53,719	3.25
Non-interest-bearing liabilities:
Non-interest-bearing deposits	723,841				688,470
Other liabilities	79,932				67,830
Total liabilities	7,365,069				7,327,207
Shareholders' equity	843,130				837,487
Total liabilities and shareholders' equity	$ 8,208,199				$ 8,164,694

Net interest revenue		$ 63,004				$ 58,791
Net interest-rate spread			3.12	%			2.82	%

Net interest margin (4)			3.39	%			3.17	%

(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.
(3) Securities available for sale are shown at amortized cost. Pretax unrealized gains of $13.8 million in 2009 and pretax unrealized losses of
$11.7 million in 2008 are included in other assets for purposes of this presentation.
(4) Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Nine Months Ended September 30,
		2009				2008
	Average		Avg.		Average		Avg.
(dollars in thousands, taxable equivalent)	Balance	Interest	Rate		Balance	Interest	Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2)	$ 5,612,202	$ 244,196	5.82	%	$ 5,926,731	$ 299,601	6.75	%
Taxable securities (3)	1,669,768	59,101	4.72		1,447,409	55,765	5.14
Tax-exempt securities (1)(3)	29,754	1,565	7.01		34,988	1,876	7.15
Federal funds sold and other interest-earning assets	145,449	2,618	2.40		41,889	1,292	4.11

Total interest-earning assets	7,457,173	307,480	5.51		7,451,017	358,534	6.43
Non-interest-earning assets:
Allowance for loan losses	(141,255)				(93,165)
Cash and due from banks	104,444				136,920
Premises and equipment	179,569				181,210
Other assets (3)	663,674				586,871
Total assets	$ 8,263,605				$ 8,262,853

Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$ 1,284,522	$ 8,708	.91		$ 1,476,998	$ 22,581	2.04
Money market	543,122	7,217	1.78		427,676	7,519	2.35
Savings	177,147	378	.29		184,713	560	.40
Time less than $100,000	1,918,379	45,859	3.20		1,659,308	53,320	4.29
Time greater than $100,000	1,336,876	34,444	3.44		1,460,277	48,330	4.42
Brokered	726,352	15,997	2.94		480,166	15,106	4.20
Total interest-bearing deposits	5,986,398	112,603	2.51		5,689,138	147,416	3.46

Federal funds purchased and other borrowings	202,008	1,761	1.17		396,798	7,254	2.44
Federal Home Loan Bank advances	241,863	3,577	1.98		452,826	10,668	3.15
Long-term debt	150,788	8,241	7.31		111,607	6,366	7.62
Total borrowed funds	594,659	13,579	3.05		961,231	24,288	3.38

Total interest-bearing liabilities	6,581,057	126,182	2.56		6,650,369	171,704	3.45
Non-interest-bearing liabilities:
Non-interest-bearing deposits	684,942				681,615
Other liabilities	101,447				80,957
Total liabilities	7,367,446				7,412,941
Shareholders' equity	896,159				849,912
Total liabilities and shareholders' equity	$ 8,263,605				$ 8,262,853

Net interest revenue		$ 181,298				$ 186,830
Net interest-rate spread			2.95	%			2.98	%

Net interest margin (4)			3.25	%			3.35	%

(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.

(3) Securities available for sale are shown at amortized cost. Pretax unrealized gains of $13.0 million in 2009 and $5.7 million in 2008 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.

ex99-2.htm

Exhibit 99.2

Investor Presentation Third Quarter 2009 United Community Banks, Inc.Jimmy C. TallentPresident & CEO Rex S. Schuette David P. Shearrow Executive Vice President & CFO Executive Vice President & CRO rex_schuette@ucbi.com (706) 781-2266 The Bank That SERVICE Built.SM United Community Banks, Inc. | Third Quarter 2009

Cautionary statement This presentation contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of factors that may cause such forward-looking statements to differ materially from actual results, please refer to United Community Banks, Inc. Annual Report filed on Form 10-K with the Securities and Exchange Commission. This presentation also contains non-GAAP financial measures, as defined by the Federal Securities Laws. For a presentation of the most directly comparable financial measures calculated and presented in accordance with GAAP and a reconciliation of the differences between those measures and the non-GAAP financial measures, please refer to “Selected Financial Data” in the United Community Banks, Inc. Annual Report filed on Form 10-K and Quarterly Reports filed on Form 10Q with the Securities Exchange Commission, which may be found on the company’s Web site, www.ucbi.com. The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter20092

Non-GAAP measures This presentation also contains non-GAAP financial measures determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). Such non-GAAP financial measures include the following: net interest margin – pre credit, core fee revenue, core operating expense, core earnings, net operating (loss) income and net operating (loss) earnings per share, tangible common equity to tangible assets, tangible equity to tangible assets and tangible common equity to risk-weighted assets. The most comparable GAAP measures to these measures are: net interest margin, fee revenue, operating expense, net (loss) income, diluted (loss) earnings per share and equity to assets. Management uses these non-GAAP financial measures because we believe it is useful for evaluating our operations and performance over periods of time, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes these non-GAAP financial measures provide users of our financial information with a meaningful measure for assessing our financial results and credit trends, as well as comparison to financial results for prior periods. These non-GAAP financial measures should not be considered as a substitute for financial measures determined in accordance with GAAP and may not be comparable to other similarly titled financial measures used by other companies. For a reconciliation of the differences between our non-GAAP financial measures and the most comparable GAAP measures, please refer to the ‘Non-GAAP Reconcilement Tables’ at the end of the Appendix of this presentation. We have not reconciled tangible common equity to tangible assets and core earnings to the extent such numbers are presented on a forward-looking basis based on management’s internal stress test or SCAP methodology. Estimates that would be required for such reconciliations cannot reliably be produced without unreasonable effort. The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter20093

United at a glance Assets $8.4 Billion Banks 27 Deposits $6.8 Billion Offices 109 The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter20094

Current environment Working through credit challenges Strengthened capital Core earnings improvement The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter20095

Strengthened capital position Tangible Common Equity to Assets 7.44 %(3) 5.72 % Tangible Equity to Assets 9.56 (3) 7.48 Tier 1 Leverage 5.00 % 9.49 8.82 Tier 1 Risk Based Capital 6.00 12.73 12.13 Total Risk Based Capital 10.00 15.29 13.86 As of September 30, 2009 Well-Capitalized Reported(1) Peers(2) (1) Completed Common Stock Offering September 30, 2009 - Gross proceeds of $222.5 million (net proceeds $210.9 million) (2) UCBI peer group includes BOH, WTFC, FMER, UMBF, TRMK, UMPQ, MBFI, ONB, UBSI, FMBI, PCBC, BPFH as of June 30, 2009 (3) Ratio as of quarter-end Data Source: SNL Financial The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter20096

The Bank That SERVICE Built.SM United Community Banks, Inc. | Third Quarter 2009 Deposit mix (total $6.8 billion) As of September 30, 2009 MMDA & Sav. Time >$100k 13% 17% Time <$100k 27% Public Funds 9% Brokered 12% Demand & NOW 22% 7 ($ in millions) 3Q09 4Q08 Demand NOW $ 1 ,481 $ 1,457 MMDA & Savings 858 630 Core Transaction Deposits 2,339 2,087 13% Annualized Growth excl SCB acquisition Time < $100,000 1,848 1,945 Public Deposits 557 756 Total Core Deposits 4,744 4,788 Time >$100,000 1,187 1,336 Public Deposits 50 87 Total Customer Deposits 5,981 6,211 Brokered Deposits 840 793 Total Deposits $ 6 ,821 $ 7,004

Core transaction deposits Geographic Diversity4Q 08 3Q 09 Core Transactions / Total Deposits (%) 3Q09 4Q08 40.2 % 34.6 % 24.7 22.4 42.0 38.5 43.3 39.0 38.1 28.6 33.5 24.634.3 % 29.8 % Atlanta MSA$863 $638 $444 $142 $136 $117 $747 $599 $395 $126 $120 $99 Atlanta MSA North Georgia Western North Carolina Gainesville MSA Coastal Georgia Eastern Tennessee North Georgia Western NC Gainesville MSA Coastal GA Eastern TN Total $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $ in millions The Bank That SERVICE Built.SM 8 UnitedCommunityBanks,Inc.|ThirdQuarter2009

Net interest margin Net Interest Margin 5.0%4.0% 3.0% 2.0% 1.0% .0% 3.39% 3.28% 3.08% 2.70% 3.17% 3.80% 3.53% 3.13% 3.53% 3.97% 3Q08 4Q 08 1Q 09 2Q 09 3Q 09NIM NIM -Pre Credit (1) Margin improvement 11 bps QTD 69 bps YTD Improved loan and deposit pricing Replaced higher priced CDs and broker deposits NIM Characteristics (1) Excluding impact of interest reversals, lost interest and carry costs of nonaccrual loans / OREO The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter20099

WHITES

LOAN PORTFOLIO AND CREDIT QUALITY The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200910

Proactively addressing credit environment Structure . Centralized underwriting and approval process. Segregated work-out teams. Highly skilled ORE disposition group. Seasoned regional credit professionalsProcess . Continuous external loan review . Intensive executive management involvement:~ Weekly past due meetings~ Weekly NPA/ORE meetings~ Quarterly criticized watch loan review meetings~ Quarterly pass commercial and CRE portfolio review meetings. Internal loan review of new credit relationships. Ongoing stress testing… commenced in 2007Policy . Ongoing enhancements to credit policy . Periodic updates to portfolio limitsThe Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200911

The Bank That SERVICE Built.SM United Community Banks, Inc. | Third Quarter 2009 Atlanta MSA 28% Western North Carolina 15% Coastal Georgia 8% Gainesville MSA 8% Eastern Tennessee 5% North Georgia 36% 0% 5% 10% 15% 20% 25% 30% 35% 40% Loan portfolio (total $5.4 billion) Geographic Diversity .1B Installment 3% $1.2B Residential Construction 22% $2.6B Commercial 48% $1.5B Residential Mortgage 27%12

The Bank That SERVICE Built.SM United Community Banks, Inc. | Third Quarter 2009 North Georgia 30 Western North Carolina 9% Coastal Georgia 9% Gainesville MSA 9% Eastern Tennessee 6% Atlanta MSA 37% 0% 7% 15% 22% 29% 37% 44% $.4B Comm Const 15% $1.0B Owner Occupied 38% $.4B C & I 16% $.8B Income Producing 31% Commercial loans (total $2.6 billion) Geographic Diversity Average Loan Size CRE: $443k C&I: $73k Comm. Constr. $660k 13

Commercial real estate (by loan type) (in millions) Loan Type Office Buildings Small Businesses Single-Unit Retail/Strip Centers Small Warehouses/Storage Churches Hotels/Motels Convenience Stores Franchise / Restaurants Multi-Residential Properties Farmland Multi-Unit Retail Miscellaneous Total Commercial Real Estate Sept 30, 2009Amount $ 410 388 231 167 117 115 85 81 71 48 41 33 % ofTotal23% 21 13 9 7 6 5 5 4 3 2 2 55% owner-occupied 45% income producing(1) Typical owner-occupied: small business, doctors, dentists, attorneys, CPAs $12 million project limit 48% LTV (1) $443k average loan size Portfolio Characteristics (1) Loan balance as of Sept. 30, 2009 / most recent appraisal $ 1,787The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200914

Commercial construction (by loan type) (in millions) Loan Type Sept 30, 2009 % of Amount Total Raw Land – Vacant (Unimproved) $ 154 40% Land Development – Vacant (Improved) 145 38Office Buildings 32 9 Retail Buildings 18 5 Churches 5 1 Miscellaneous 25 7 Total Commercial Construction $ 379 Note: Dollars in millions $660k Average loan size Average LTVs (1) ..Raw Land: 50% ..Land Dev.: 48% ..Total: 51% Portfolio Characteristics (1) Loan balance as of Sept. 30, 2009 / most recent appraisal The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200915

The Bank That SERVICE Built.SM United Community Banks, Inc. | Third Quarter 2009 Western North Carolina 25.5% Atlanta MSA 15.5% Coastal Georgia 8% Gainesville MSA 7% Eastern Tennessee 6% North Georgia 39% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% $.4 B Home Equity 26% $1.1B Mortgage 74% Residential mortgage (total $1.5 billion) Geographic Diversity Avg loan size: $47kAvg loan size: $100k 16Origination Characteristics No broker loans No sub-prime / Alt-A 78% of HE > 680 FICO Policy Max LTV: 80-85%

The Bank That SERVICE Built.SM United Community Banks, Inc. | Third Quarter 2009 Atlanta MSA 27% Western North Carolina 14% Coastal Georgia 7% Gainesville MSA 5% Eastern Tennessee 2% North Georgia 45% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Residential construction (total $1.2 billion) Geographic Diversity Developing Spec: $237k Sold: $154k Develop.: $919k Raw: $418k Lot: $146k Average Loan Size 17 $.1B Sold 8% $.2B Spec 18% $.3B Lot 28% $.2B Raw $.4B 14% Developing 32% Construction Land

Credit quality The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200919

Net charge-offs by loan category (in thousands) 3Q09 % of Average Loans % of Avg NCOs Loans 2Q09 1Q09 4Q08 LTM(1) Commercial (sec. by RE) $ 10,568 2.33 % 1.34 % .20 % 1.10 % 1.24 % Commercial Construction 4,369 4.55 .80 .05 1.14 1.64 Commercial & Industrial 1,792 1.76 3.16 .89 3.24 2.26 Total Commercial $ 16,729 2.57 1.54 .28 1.46 1.46 Residential Construction 67,520 21.31 12.90 10.52 14.93 14.92 Residential Mortgage 5,051 1.36 .95 .80 1.52 1.16 Consumer/ Installment 1,191 3.13 1.80 1.99 2.34 2.32 Total Net Charge-offs $ 90,491 6.57 4.18 3.09 5.09 4.73 (1) Based on simple average of the four quarters The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200920

Net charge-offs by market (in thousands) NCOs 3Q 09 % of Avg Loans 2Q09 1Q09 4Q08 % of Average Loans MARKETS Atlanta MSA $ 50,129 12.61 % 8.89 % 6.16 % 10.80 % Gainesville MSA 1,473 1.60 4.38 1.18 8.60 North Georgia 24,017 4.74 2.52 1.64 1.91 Western North Carolina 3,949 1.98 0.51 1.83 1.16 Coastal Georgia 10,051 8.78 0.85 2.84 2.70 East Tennessee 872 1.30 3.21 1.28 2.02 Total $ 90,491 6.57 4.18 3.09 5.09 LTM(1) 9.62 % 3.94 2.70 1.37 3.79 1.95 4.73 Note: Dollars in thousands (1) Based on simple average of the four quarters The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200921

NPAs by loan category and market (in thousands) 3Q 09 3Q 09NPLs OREO Total NPAs LOAN CATEGORY Commercial (sec. by RE) $ 38,379 $ 12,566 $ 50,945 Commercial Construction 38,505 5,543 44,048 Commercial & Industrial 3,794 -3,794 Total Commercial 80,678 18,109 98,787 Residential Construction 171,027 79,045 250,072 Residential Mortgage 50,626 13,456 64,082 Consumer/ Installment 2,050 -2,050 Total $ 304,381 $ 110,610 $ 414,991 NPLs OREO MARKETS Atlanta MSA $ 120,599 $ 54,670 Gainesville MSA 12,916 8,429 North Georgia 96,373 36,718 Western N. Carolina 25,775 5,918 Coastal Georgia 38,414 3,045 East Tennessee 10,304 1,830 Total $ 304,381 $ 110,610 Total NPAs $ 175,269 21,345 133,091 31,693 41,459 12,134 $ 414,991The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200922

Key trends -loan portfolio and credit quality Majority of credit challenges in 2009 centered in residential construction, primarily in Atlanta; this portfolio continues to decline rapidly which should lead to a reduction in credit losses going forward While some deterioration has occurred, the commercial portfolio continues to perform much better than residential construction; the commercial portfolio is highly diversified with low average balances and large percentage of owner-occupied Residential mortgage and HELOCs continue to perform well The pace of ORE sales continues to accelerate and demand has improvedIncrease in 3Q charge-offs was primarily tied to the 1Q and 2Q rise in NPAs, a more aggressive disposition strategy, and charging off specific reserves for impaired loans that were previously set aside The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200923

• Tenant move-outs

Credit quality – SCAP analysis Imputed Stress Test – Estimated Credit Losses Through December 2010(1) Represents the SCAP – Selected Banks Scenario modified to reflect the characteristics of United Community Banks, Inc. existing loan portfolio. (2) Based on average projected losses per loan category (More Adverse Scenario) for BB&T Corporation, Fifth Third Bancorp, Regions Financial Corporation and SunTrust Banks, Inc. as per the Board of Governors of the Federal Reserve System (2009) “The Supervisory Capital Assessment Program: Overview of Results”(3) Represents the mid-point of the indicative loss rates by loan category as per the Board of Governors of the Federal Reserve System (2009) “The SupervisoryCapital Assessment Program: Overview of Results”The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200924

Credit quality – SCAP analysis Imputed Stress Test – Projected Capital RatiosAssumptions: Targeted LLR / Loans (12/31/10) (1) 2.00% Core Earnings (2) $132,857 Effective Tax Rate 35% Aggregate TARP Preferred Dividend (3) $12,867 Stress Test Analysis: Projected as of December 31, 2010 (4) Management Management SCAP SCAP Base More Adverse Selected Banks More Adverse Estimated Credit Losses $ 218,266 $ 327,399 $ 405,058 $ 442,837 Consolidated Tangible Equity / Tangible Assets 9.4 % 8.5 % 7.9 % 7.6 % Tangible Common Equity / Tangible Assets 7.1 6.3 5.7 5.4 Tangible Common Equity / Risk-Weighted Assets 9.7 8.5 7.7 7.2 Well- Capitalized Tier 1 Leverage Ratio 5.0 % 8.9 7.7 7.2 6.7 Tier 1 Risk-Based Capital Ratio 6.0 12.6 10.8 7.4 8.7 Total Risk-Based Capital Ratio (5) 10.0 14.9 13.1 11.6 10.9 Note: Dollars in thousands (1) Targeted LLR / Loans as of December 31, 2010 based on gross loans (HFI) as of September 30, 2009 reduced by the estimated credit losses under the SCAP Analysis (2) Assumes quarterly projections for Q4'09 - Q4'10 (3) Q4'09 - Q4'10 (4) Analysis includes an estimated $75.0 million in balance sheet reduction (Q4'09) as a result of certain balance sheet strategies including selected loan sales, decreasing exposure to certain loan categories and decreasing wholesale borrowings (5) Includes estimated phase-out of subordinated debt for regulatory capital (Tier 2) purposes The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200925

FINANCIAL RESULTS The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200926

Core earnings summary – Third Quarter 2009 (in millions) Variance 3Q09 63.0 $ 14.5 77.5 45.7 3.39% 4.02% 2Q 09 1Q 09 4Q 08 3Q 08 3Q08 Net Interest Revenue $ 60.9 $ 57.4 $ 51.9 $ 58.8 $ 4.2 Fee Revenue(1) 13.7 12.6 12.6 13.0 1.5 Gross Revenue 74.6 70.0 64.5 71.8 5.7 Operating Expense(2) 47.8 48.3 47.2 46.9 (1.2) 4Q 08 11.1 $ 1.9 13.0 (1.5) 14.5 $ 0.69% 0.88% Core Earnings (Pre Tax, Pre-Credit) 31.8 $ 26.8 $ 21.7 $ 17.3 $ 24.9 $ 6.9 $ Net Interest Margin 3.28% 3.08% 2.70% 3.17% 0.22% Net Interest Margin - Pre Credit (3) 3.84% 3.56% 3.14% 3.53% 0.49% (1) Excludes FHLB prepayment charge, securities (losses) / gains, and gain on SCB acquisition (2) Excludes BOLI expense recovery, special FDIC assessment, foreclosed property costs, severance costs and goodwill impairment charge (3) Excluding impact of interest reversals, lost interest and carry costs of nonaccrual loans, OREO and interest reversals The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200927

Net operating loss – Third Quarter 2009 (in millions) Variance 2Q09 1Q 09 4Q 08 3Q08 3Q08 4Q 08 Core Earnings $ 26.8 $ 21.7 $ 17.3 $ 24.9 $ 6.9 $ 14.5 Provision for Loan Loss (60.0) (65.0) (85.0) (76.0) (19.0) (10.0) Foreclosed Property Costs: Write-downs (2.6) (1.8) (2.0) (8.3) 4.2 (2.1) Other (3.1) (2.5) (3.2) (1.8) (2.0) (.6) FDIC Special Assessment (3.8) ----BOLI Expense Recovery 2.0 ----Securities Gains (Losses) & FHLB Prepmt Char 3Q 09 31.8 $ (95.0) (4.1) (3.8) --1.2 26.2 (43.7) $ (.93) (.7) .3 (1.9) .1 1.1 3.1 Income Tax Benefit (Expense) 18.3 15.3 28.1 21.2 5.0 (1.9) Net Operating Loss $ (23.1) $ (32.0) $ (46.7) $ (39.9) (3.8) $ 3.0 Operating Loss Per Share (.53) (.71) (.99) (.84) (.09) .06 The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200928

Net loss – Third Quarter 2009 (in millions) Net Operating Loss Gain on Acquisition ($11.4 pre-tax) Goodw ill Impairment Charge Severance Costs ($2.9 pre-tax) 3Q09 $ (43.7) -(25.0) 2Q09 $ (23.1) 7.1 -1Q09 $ (32.0) -(70.0) (1.8) 4Q08 $ (46.7) -3Q08 $ (39.9) -Variance 3Q 08 4Q 08 $ (3.8) $ 3.0 --(25.0) (25.0) -------- Net Loss $ (68.7) $ (16.0) $ (103.8) $ (46.7) $ (39.9) $ (28.8) $ (22.0) Preferred Stock Dividend (TARP) $ (2.6) $ (2.6) $ (2.5) $ (.7) $ $ (2.6) $ (1.9) Net Loss Avail to Common Shareholders $ (71.3) $ (18.6) $ (106.3) $ (47.4) $ (39.9) $ (31.4) $ (23.9) Net Loss Per Share $ (1.43) $ (.38) $ (2.20) $ (.99) $ (.84) $ (.59) $ (.44) The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200929

Capital ratios (as percentages) Well-Capitalized Regulatory Capital Tier 1 Risk-Based 6%Total Risk-Based 10Leverage 5Tangible Equity to Risk-Weighted Assets Tangible Common Equity to Risk-Weighted Assets Tangible Equity to Assets Tangible Common Equity to Assets *Ratio as of quarter-end The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200930 3Q 09 12.7% 15.3 9.5 13.3 10.39.6*7.4*4Q 08 11.2% 13.9 8.3 11.2 8.3 6.6 6.2 3Q 08 8.7 % 11.4 6.7 8.3 8.3 6.6 6.6

REASONS TO INVEST IN UNITED The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200931

Closing Comments Capital strength Core earnings Business model – franchise Significant strategic opportunities The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200932

APPENDIX The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200933

Experienced proven leadership Jimmy Tallent President and CEO Guy Freeman Chief Operating Officer Rex Schuette Chief Financial Officer David Shearrow Chief Risk Officer Glenn White President, Atlanta Region Craig Metz Marketing Bill Gilbert Retail Banking Joined UCBI 1984 1994 2001 2007 2007 2002 2000 Years in Banking36493228351733The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200934

Business and operating model Community bank service, large bank resources Twenty-seven “community banks” . Local CEOs with deep roots in their communities . Resources of $8.4 billion bank Service is point of differentiation . Golden rule of banking ~ “The Bank That SERVICE Built” . Ongoing customer surveys ~ +90% satisfaction rate Strategic footprint with substantial banking opportunities . Operates in a number of the more demographically attractive markets in the U.S. Disciplined growth strategy . Organic supported by de novos and selective acquisitions The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200935

Robust demographics (fast growing markets) Population Growth (%) Population Actual Projected Markets1 (in thousands) 2000 – 2009 2009 – 2014 North Georgia 396Atlanta MSA 5,544Gainesville MSA 187Coastal Georgia 370Western North Carolina 425East Tennessee 850 Total Markets Georgia 9,933 North Carolina 9,370 Tennessee 6,297 United States 309,732 24 10 31 13 34 15 10 5 11 5 13 6 21 9 16 8 11 5 10 5 ¹ Population data is for 2009 and includes those markets where United takes deposits. Source: SNL The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200936

Market share opportunities (excellent growth prospects) Market Deposits United Deposit Markets (in billions) (1) Deposits Banks Offices Share(1) Rank(1) North Georgia $ 8.5 $ 2.6 Atlanta MSA 55.2 2.1 Gainesville MSA 2.6 .3 Coastal Georgia 7.5 .4 Western North Carolina 7.3 1.0 East Tennessee 14.4 .4 Total Markets $ 95.5 $ 6.8 11 23 31% 1 10 39 4 7 1 713 4 2958 121 14 3 210 3 7 27 109 ¹ FDIC deposit market share and rank as of 6/09 for markets where United takes deposits. Source: SNL and FDIC The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200937

Leading demographics Rank Ticker Company(1) State Total Assets ($ B) 2009 - 2014 Population Growth 1 WAL Western Alliance Bancorporation NV 5.7 $ 2.25 % 2 UCBI United Community Banks, Inc. GA 8.4 1.93 3 CFR Cullen/Frost Bankers, Inc. TX 15.7 1.84 4 PNFP Pinnacle Financial Partners, Inc. TN 5.0 1.76 5 IBOC International Bancshares Corporation TX 11.5 1.61 6 FCNCA First Citizens BancShares, Inc. NC 17.3 1.55 7 PRSP Prosperity Bancshares, Inc. TX 8.8 1.48 8 TSFG South Financial Group, Inc. SC 12.6 1.42 9 GBCI Glacier Bancorp, Inc. MT 5.6 1.32 10 CVBF CVB Financial Corp. CA 6.4 1.30 11 TCBI Texas Capital Bancshares, Inc. TX 5.3 1.27 12 CBC Capitol Bancorp Ltd. MI 5.7 1.20 13 SNV Synovus Financial Corp. GA 34.3 1.17 14 BOKF BOK Financial Corporation OK 22.8 1.16 15 UMPQ Umpqua Holdings Corporation OR 8.7 1.08 Note: Financial information as of June 30, 2009 (1) Includes publicly traded companies w ith assets betw een $5.0 – 50.0 billion as of June 30, 2009 (2) Population grow th w eighted by county as of June 30, 2009 Data Source: SNL FinancialThe Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200938

Small business market growth (# of business with 1 – 49 employees) Markets1 North Georgia 2000 6,453 2006 7,693 Small Business Growth 19% Population Growth 2000-2009 24% 70,893 31% 78% 126,200Atlanta MSA Gainesville MSA 3,158 3,824 21% 34% Coastal Georgia 9,441 10,210 8% 10% Western North Carolina 10,274 11,544 12% 11% East Tennessee 16,273 17,839 10% 13% The Atlanta MSA is seeing small business growth at nearly double its already significantly increasing population growth. ¹ Population data is for 2009, SNL;Business demographics, U.S. Census Statistics of U.S. Businesses, 2000 & 2006; County Business Patterns 2000-2006The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200939

Business mix -loans (at quarter-end) Year over Year % (in millions) 3Q 09 2Q 09 1Q 09 4Q 08 3Q 08 Change LOANS BY CATEGORY Commercial (sec. by RE) $1,787 $1,797 $1,779 $1,627 $1,604 11 Commercial construction 380 379 377 500 509 (25) Commercial & Industrial 403 399 387 410 425 (5) Total commercial 2,570 2,575 2,543 2,537 2,538 1 Residential construction 1,185 1,315 1,430 1,479 1,596 (26) Residential mortgage 1,461 1,470 1,504 1,526 1,528 (4) Consumer/installment 147 153 156 163 168 (13) TOTAL LOANS $5,363 $5,513 $5,633 $5,705 $5,830 (8) The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200940

Business mix -loans (at year-end) (in millions) 2008 2007 2006 2005 2004 LOANS BY CATEGORY Commercial (sec. by RE) $1,627 $1,476 $1,230 $1,055 $ 966 Commercial construction 500 527 470 359 250 Commercial & Industrial 410 418 296 237 212 Total commercial 2,537 2,421 1,996 1,651 1,428 Residential construction 1,479 1,829 1,864 1,380 1,055 Residential mortgage 1,526 1,502 1,338 1,206 1,102 Consumer/installment 163 177 179 161 150 TOTAL LOANS $5,705 $5,929 $5,377 $4,398 $3,735 The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200941

Residential construction – total company (in millions) 3Q 09 2Q 09 1Q 09 4Q 08 3Q 08 Land Loans Developing Land $ 380 $ 413 $ 445 $ 484 $ 516 Raw Land 159 159 155 153 142 Lot Loans 336 369 390 358 385 Total 875 941 990 995 1,043 Construction Loans Spec 218 268 317 347 393 Sold 92 106 123 137 160 Total 310 374 440 484 553 Total Res Construction $1,185 $1,315 $1,430 $1,479 $1,596 The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200942

Liabilities

• Total liabilities increase by $4.3 million

Residential construction – Atlanta MSA (in millions) 3Q 09 2Q 09 1Q 09 4Q 08 3Q 08 Land Loans Developing Land $ 100 $ 124 $ 148 $ 167 $ 185 Raw Land 61 63 52 56 47 Lot Loans 54 81 98 86 103 Total 215 268 298 309 335 Construction Loans Spec 91 127 164 189 227 Sold 22 29 33 40 49 Total 113 156 197 229 276 Total Res Construction $ 328 $ 424 $ 495 $ 538 $ 611 The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200943

Loans – markets served (at quarter-end) (in millions) 3Q 09 2Q 09 1Q 09 4Q 08 3Q 08 LOANS BY MARKET Atlanta MSA $1,526 $1,605 $1,660 $1,706 $1,800 Gainesville MSA 402 413 422 420 426 North Georgia 1,942 1,978 2,014 2,040 2,066 Western North Carolina 786 794 808 810 815 Coastal Georgia 440 455 460 464 458 East Tennessee 267 268 269 265 265 Total loans $5,363 $5,513 $5,633 $5,705 $5,830 The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200944

Loans – markets served (at year-end) (in millions) 2008 2007 2006 2005 2004 LOANS BY MARKET Atlanta MSA $ 1,706 $ 2,002 $ 1,654 $ 1,207 $ 1,061 Gainesville MSA 420 400 354 249 -North Georgia 2,040 2,060 2,034 1,790 1,627 Western North Carolina 810 806 773 668 633 Coastal Georgia 464 415 358 306 274 East Tennessee 265 246 207 178 140 Total loans $ 5,705 $ 5,929 $ 5,380 $ 4,398 $ 3,735 The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200945

Lending – credit summary (as of September 30, 2009) (in millions) Legal lending limit $219House lending limit 20Top 25 relationships 4237.9% of total loans Regional credit review Standard underwriting The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200946

NPAs by loan category and market (in thousands) Loan Category Commercial (sec. by RE) Commercial Construction Commercial & Industrial Total Commercial Residential Construction Residential Mortgage Consumer / Installment Total NPLs $ 37,755 15,717 11,378 64,850 176,400 44,256 2,342 $ 287,8482Q 092Q 09Total Markets OREO NPAs $ 5,395 43,150 $ Atlanta MSA 5,847 21,564 Gainesville MSA -11,378 North Georgia 11,242 76,092 Western North Carolina 81,648 258,048 Coastal Georgia 11,864 56,120 Eastern Tennessee -2,342$ 104,754 $ 392,602 Total NPLs $ 148,155 9,745 72,174 21,814 30,311 5,649 $ 287,848OREO$ 50,450 3,511 37,454 7,245 3,904 2,190 $ 104,754TotalNPAs$ 198,605 13,256 109,62829,059 34,215 7,839 $ 392,602The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200947

Liquidity – loans / deposits (in millions) Variance 3Q 09 4Q 08 3Q 08 vs 4Q 08 vs 3Q 08 Loans $ 5,363 $ 5,705 $ 5,830 $ (342) $ (467) Core (DDA, MMDA, Savings) $ 2,340 $ 2,087 $ 2,156 $ 253 $ 184 Public Funds 607 843 602 (236) 5 CD’s 3,035 3,281 3,186 (246) (151) Total Deposits (excl Brokered) $ 5,982 $ 6,211 $ 5,944 $ (229) $ 38 Loan to Deposit Ratio 90% 92% 98% Investment Securities $ 1,533 $ 1,617 $ 1,401 $ (84) $ 132 Percent of Assets 18% 19% 17% The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter2009Commercial Paper $ 397 $ 369 $ -$ 28 $ 397 48

Liquidity – wholesale borrowings (in millions) Unused Variance Capacity 3Q 09 4Q 08 3Q 08 vs 4Q 08 vs 3Q 08 Brokered Deposits $1,256 $ 839 $ 793 $ 745 $ 46 $ 94 FHLB 812 315 235 285 80 30 Fed Funds 150 -8 16 (8) (16) Other Wholesale 490 102 100 104 2 (2) Total Wholesale $2,708 $ 1,256 $ 1,136 $ 1,150 $ 120 $ 106 Sub-Debt $ 96 $ 97 $ 97 $ (1) $ (1) Trust Preferred Securities 54 54 41 -13 Total Long-Term Debt $ 150 $ 151 $ 138 $ (1) $ 12 The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200949

Business mix – deposits (at quarter-end) The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter2009Total Deposits 6,821 6,849 6,616 7,004 6,689 50

Analyst coverage FIG Partners (Market Perform – Sept 29, 2009) Fox-Pitt Kelton Cochran (In Line – Sept 25, 2009) Keefe, Bruyette & Woods (Market Perform – Jul 27, 2009) Raymond James & Associates (Outperform – Sept 28, 2009) Sandler O’Neill & Partners (Hold – Sept 28, 2009) Soleil (Tenner Investment Research) (Hold – Jul 8, 2009) Stephens, Inc. (Equal-Weight – Sept 25, 2009) Sterne Agee & Leach, Inc. (Neutral – Sept 29, 2009) SunTrust Robinson Humphrey (Buy – Sept 28, 2009) The Bank That SERVICE Built.SM UnitedCommunityBanks,Inc.|ThirdQuarter200951