United Community Banks (UCB) 8-K United Community Banks, Inc. Reports Net Operating Loss for Second Quarter 2009

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 SECOND QUARTER 2009

• Provision for loan losses of $60 million exceeded charge-offs by $1.7 million

• Allowance-to-loans ratio of 2.64 percent, up from 2.56 percent last quarter

• Further margin improvement of 20 basis points this quarter to 3.28 percent

• Acquisition of Southern Community Bank added $230 million of covered assets and $200 million of customer deposits with a gain on acquisition of $11.4 million

• Capital levels remain strong

BLAIRSVILLE, GA — July 24, 2009 — United Community Banks, Inc. (NASDAQ: UCBI) today reported a net operating loss of $23.1 million, or 53 cents per diluted share, for the second quarter of 2009. The net operating loss reflects elevated credit costs, including $60 million provision for loan losses. Net operating loss does not reflect an acquisition gain of $11.4 million related to the purchase of Southern Community Bank from the FDIC, which is considered a non-recurring item and excluded from operating earnings. Including this non-recurring gain the net loss for the quarter was $16.0 million, or 38 cents per diluted share.

United’s net operating loss for the first six months of 2009 was $55.0 million, or $1.24 per diluted share. The net operating loss for the first six months does not reflect a $70 million non-cash charge for impairment of goodwill and $2.9 million in severance costs relating to a reduction in work force that were incurred during the first quarter and the $11.4 million gain on acquisition in the second quarter, all of which are considered non-recurring items and are therefore excluded from operating earnings. Including these non-recurring items the net loss for the first six months was of 2009 $119.8 million, or $2.57 per diluted share.

“We continued 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 building core earnings through stronger customer relationships and core deposits.”

“As part of that strategy, we acquired Southern Community Bank in an FDIC assisted transaction which will allow us to deepen our market share in the south side of metro Atlanta,” added Tallent. “Southern Community Bank brings $208 million in customer deposits, along with 60 experienced employees in five offices. The acquisition of Southern Community Bank and its locations provided a good fit into the existing United market. Four of the new offices fill a gap in the south side of the Atlanta market. The other office will be closed and then we will merge one of our existing offices into their superior location in the same market. Further, through our discounted bid and the loss share agreement, we have substantially eliminated all credit related exposure associated with the transaction. So, we have classified Southern’s loans, foreclosed properties and FDIC receivable into one category and line on the balance sheet — ‘covered assets.’ These covered assets are excluded from all credit quality disclosures and ratios. In addition, the transaction provided United with capital through the after-tax gain of $7.1 million.”

Total loans were $5.5 billion at quarter-end, down $120 million from last quarter and $420 million from a year ago, reflecting the company’s continued efforts to reduce exposure to the residential construction market. At June 30, 2009, residential construction loans were $1.3 billion, or 24 percent of total loans, a decrease of $430 million from a year ago and $115 million from the first quarter of 2009.

Taxable equivalent net interest revenue of $60.9 million reflected an increase of $3.5 million from last quarter and a decrease of $871 thousand from a year ago. The taxable equivalent net interest margin was 3.28 percent compared with 3.08 percent for the first quarter of 2009 and 3.32 percent for the second quarter of 2008.

2

“The improvement in our net interest margin this quarter reflects a continuation of the program we began in the latter part of 2008 to improve loan and deposit pricing,” stated Tallent. “We maintained our loan pricing and credit spreads, decreased deposit interest rates and, with sustained liquidity, we were able to let higher-cost time deposits and brokered deposits run off. We will continue to actively pursue these strategies to improve our margin in 2009, while balancing liquidity needs with our goal of maximizing pre-tax, pre-provision core earnings.”

“Excluding public funds and the acquisition, core deposits increased $129 million this quarter, or 12 percent on an annualized basis, reflective of the United Express program for customer referrals and cross selling,” stated Tallent. “We added 13,884 new services this quarter and opened 6,575 net new deposit accounts year-to-date.”

The second quarter provision for loan losses was $60 million, compared with $65 million for the first quarter of 2009. Net charge-offs for the second quarter were $58.3 million compared with $43.3 million for the first quarter of 2009. At quarter-end, non-performing assets totaled $392.6 million compared with $334.5 million at March 31, 2009. The ratio of non-performing assets to total assets at the end of the second and first quarters was 4.67 percent and 4.11 percent, respectively. The allowance for loan losses to total loans was 2.64 percent and 2.56 percent, respectively.

“Credit quality continues to be a primary area of focus for us, particularly within the Atlanta residential construction portfolio,” Tallent said. “While we have seen some problem credits in other loan categories and markets, our principal challenge remains in the residential construction portfolio. We have seen a rise in all categories of non-performing assets, but the inflow is still driven by the continued weakness in the housing and construction markets. We will continue to aggressively work through our problem credits and pursue the best economic outcome for our company in each instance.”

3

Operating fee revenue of $13.1 million was up $204 thousand from last quarter and down $2.1 million from a year ago, excluding the $11.4 million gain from the acquisition of Southern Community Bank. Service charges and fees on deposit accounts of $7.6 million reflected a $400 thousand decrease from a year ago due to lower activity and fewer transaction charges. Consulting fees were down $507 thousand from last year due to weakness in the market. However, consulting fees increased $724 thousand from the first quarter, reflecting a shift back to non-United projects. Mortgage loan fees of $2.8 million were up $623 thousand from a year ago due to a high level of refinancing activity.

Operating expenses for the second quarter of 2009 were $55.3 million reflecting a $5.6 million increase from last year. The increase was primarily due to higher foreclosed property costs of $2.9 million and an increase in FDIC insurance premiums of $5.5 million, including a $3.7 million special assessment. Salaries and employee benefit costs of $28.1 million decreased $695 thousand from a year ago. The decrease from last year and linked quarter was primarily due to the reduction in work force, down 165 staff year-to-date and offset partially by higher mortgage commissions and incentive program costs and the 60 staff added by the acquisition. Other expenses of $1.2 million decreased $2.2 million from last year due to the $2.0 million expense recovery related to the decision to reverse the surrender of bank owned life insurance policies in the second quarter.

The effective tax rate for the second quarter of 2009 was 47.5 percent, compared to 35.5 percent for the second quarter of 2008. The tax rate was higher this quarter reflective of a $2.9 million tax adjustment recorded in the second quarter due to reversing the surrender of bank owned life insurance policies. The projected effective tax rate for the balance of 2009 is 38 percent.

At June 30, 2009, the company’s regulatory capital ratios were as follows: Tier I Risk-Based Capital of 10.6 percent; Leverage of 7.8 percent; and, Total Risk-Based of 13.3 percent. Also, the average tangible equity to assets ratio was 8.0 percent, the average tangible common equity to assets ratio was 5.8 percent and the tangible common equity to risk weighted assets was 7.5 percent.

4

“Today, based on our stress models of the loan portfolio and ranges of losses through 2010, we believe our capital position is sound,” stated Tallent. “Assuming we incur these losses, our models still indicate all regulatory capital ratios will remain above well capitalized levels. But if the credit cycle lengthens, if the economy worsens beyond what our models have assumed, or if there would be compelling reasons to offensively add additional capital, we clearly will do what is best for the long-term success of the company. Our absolute goal is financial soundness balanced with creating and retaining shareholder value.”

Conference Call

United Community Banks will hold a conference call today, Friday, July 24, 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 (866) 431-5320 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 Second 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 110 banking offices located throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina and east Tennessee. The company specializes in providing personalized community banking services to individuals and small to mid-size businesses. United Community Banks also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United Community Banks common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at the company’s web site at www.ucbi.com.

5

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.

# # #

6

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information

																Second
	2009						2008									Quarter			For the Six						YTD
(in thousands, except per share	Second			First			Fourth			Third			Second			2009-2008			Months Ended						2009-2008
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			Change			2009			2008			Change
INCOME SUMMARY
Interest revenue	$	102,737		$	103,562		$	108,434		$	112,510		$	116,984					$	206,299		$	246,025
Interest expense		41,855			46,150			56,561			53,719			55,231						88,005			117,985
Net interest revenue		60,882			57,412			51,873			58,791			61,753			(1)	%		118,294			128,040			(8)	%
Provision for loan losses		60,000			65,000			85,000			76,000			15,500						125,000			23,000
Operating fee revenue(1)		13,050			12,846			10,718			13,121			15,105			(14	)		25,896			29,302			(12	)
Total operating revenue		13,932			5,258			(22,409	)		(4,088	)		61,358		NM				19,190			134,342		NM
Operating expenses(2)		55,348			52,569			52,439			56,970			49,761			11			107,917			97,290			11
Operating (loss) income before taxes		(41,416	)		(47,311	)		(74,848	)		(61,058	)		11,597		NM				(88,727	)		37,052		NM
Income tax (benefit) expense		(18,353	)		(15,335	)		(28,101	)		(21,184	)		4,504						(33,688	)		13,881
Net operating (loss) income(1)(2)		(23,063	)		(31,976	)		(46,747	)		(39,874	)		7,093		NM				(55,039	)		23,171		NM
Gain from acquisition, net of tax benefit		7,062			—			—			—			—						7,062			—
Noncash goodwill impairment charge		—			(70,000	)		—			—			—						(70,000	)		—
Severance costs, net of tax benefit		—			(1,797	)		—			—			—						(1,797	)		—
Net (loss) income		(16,001	)		(103,773	)		(46,747	)		(39,874	)		7,093		NM				(119,774	)		23,171		NM
Preferred dividends and discount accretion		2,559			2,554			712			4			4						5,113			8
Net (loss) income available to common shareholders	$	(18,560	)	$	(106,327	)	$	(47,459	)	$	(39,878	)	$	7,089		NM			$	(124,887	)	$	23,163		NM
PERFORMANCE MEASURES
Per common share:
Diluted operating (loss) earnings (1)(2)	$	(.53	)	$	(.71	)	$	(.99	)	$	(.84	)	$	.15		NM			$	(1.24	)	$	.49		NM
Diluted (loss) earnings		(.38	)		(2.20	)		(.99	)		(.84	)		.15		NM				(2.57	)		.49		NM
Cash dividends declared		—			—			—			—			.09						—			.18
Stock dividends declared(6)	1 for 130			1 for 130			1 for 130			1 for 130				—					2 for 130				—
Book value		13.87			14.70			16.95			17.12			17.75			(22	)		13.87			17.75			(22	)
Tangible book value (4)		8.85			9.65			10.39			10.48			11.03			(20	)		8.85			11.03			(20	)
Key performance ratios:
Return on equity(3)(5)		(11.42)	%		(58.28)	%		(23.83)	%		(19.07)	%		3.41	%					(36.20)	%		5.61	%
Return on assets(5)		(.79	)		(5.06	)		(2.20	)		(1.95	)		.34						(2.93	)		.56
Net interest margin(5)		3.28			3.08			2.70			3.17			3.32						3.18			3.43
Operating efficiency ratio(1)(2)(4)		74.15			75.15			81.34			79.35			65.05						74.63			61.97
Equity to assets		10.76			11.64			10.08			10.28			10.33						11.20			10.31
Tangible equity to assets (4)		8.00			8.30			6.59			6.65			6.77						8.15			6.75
Tangible common equity to assets (4)		5.81			6.13			6.23			6.65			6.77						5.97			6.75
Tangible common equity to risk-weighted assets(4)		7.48			8.03			8.34			8.26			8.51						7.48			8.51
ASSET QUALITY *
Non-performing loans (NPLs)	$	287,848		$	259,155		$	190,723		$	139,266		$	123,786					$	287,848		$	123,786
Foreclosed properties		104,754			75,383			59,768			38,438			28,378						104,754			28,378
Total non-performing assets (NPAs)		392,602			334,538			250,491			177,704			152,164						392,602			152,164
Allowance for loan losses		145,678			143,990			122,271			111,299			91,035						145,678			91,035
Net charge-offs		58,312			43,281			74,028			55,736			14,313						101,593			21,388
Allowance for loan losses to loans		2.64	%		2.56	%		2.14	%		1.91	%		1.53	%					2.64	%		1.53	%
Net charge-offs to average loans(5)		4.18			3.09			5.09			3.77			.97						3.64			.72
NPAs to loans and foreclosed properties		6.99			5.86			4.35			3.03			2.55						6.99			2.55
NPAs to total assets		4.67			4.11			2.94			2.20			1.84						4.67			1.84
AVERAGE BALANCES
Loans	$	5,597,259		$	5,675,054		$	5,784,139		$	5,889,168		$	5,933,143			(6	)	$	5,635,942		$	5,945,720			(5	)
Investment securities		1,771,482			1,712,654			1,508,808			1,454,740			1,507,240			18			1,742,231			1,496,377			16
Earning assets		7,442,178			7,530,230			7,662,536			7,384,287			7,478,018			—			7,485,961			7,484,749			—
Total assets		8,168,147			8,312,648			8,449,097			8,146,880			8,295,748			(2	)		8,239,997			8,300,686			(1	)
Deposits		6,544,537			6,780,531			6,982,229			6,597,339			6,461,361			1			6,661,881			6,256,217			6
Shareholders’ equity		879,210			967,505			851,956			837,487			856,727			3			923,114			856,193			8
Common shares — basic		48,794			48,324			47,844			47,417			47,158						48,560			47,105
Common shares — diluted		48,794			48,324			47,844			47,417			47,249						48,560			47,260
AT PERIOD END
Loans	$	5,513,087		$	5,632,705		$	5,704,861		$	5,829,937		$	5,933,141			(7	)	$	5,513,087		$	5,933,141			(7	)
Investment securities		1,816,787			1,719,033			1,617,187			1,400,827			1,430,588			27			1,816,787			1,430,588			27
Total assets		8,403,046			8,140,909			8,520,765			8,072,543			8,264,051			2			8,403,046			8,264,051			2
Deposits		6,848,760			6,616,488			7,003,624			6,689,335			6,696,456			2			6,848,760			6,696,456			2
Shareholders’ equity		855,272			888,853			989,382			816,880			837,890			2			855,272			837,890			2
Common shares outstanding		48,933			48,487			48,009			47,596			47,096						48,933			47,096

(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 charge of $70 million 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 covered loans and covered NPAs

7

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

																				��
	2009						2008									For the Six
(in thousands, except per share	Second			First			Fourth			Third			Second			Months Ended
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			2009			2008
Interest revenue reconciliation
Interest revenue — taxable equivalent	$	102,737		$	103,562		$	108,434		$	112,510		$	116,984		$	206,299		$	246,025
Taxable equivalent adjustment		(463	)		(488	)		(553	)		(571	)		(606	)		(951	)		(1,137	)
Interest revenue (GAAP)	$	102,274		$	103,074		$	107,881		$	111,939		$	116,378		$	205,348		$	244,888
Net interest revenue reconciliation
Net interest revenue — taxable equivalent	$	60,882		$	57,412		$	51,873		$	58,791		$	61,753		$	118,294		$	128,040
Taxable equivalent adjustment		(463	)		(488	)		(553	)		(571	)		(606	)		(951	)		(1,137	)
Net interest revenue (GAAP)	$	60,419		$	56,924		$	51,320		$	58,220		$	61,147		$	117,343		$	126,903
Fee revenue reconciliation
Operating fee revenue	$	13,050		$	12,846		$	10,718		$	13,121		$	15,105		$	25,896		$	29,302
Gain from acquisition		11,390			—			—			—			—			11,390			—
Fee revenue (GAAP)	$	24,440		$	12,846		$	10,718		$	13,121		$	15,105		$	37,286		$	29,302
Total revenue reconciliation
Total operating revenue	$	13,932		$	5,258		$	(22,409	)	$	(4,088	)	$	61,358		$	19,190		$	134,342
Taxable equivalent adjustment		(463	)		(488	)		(553	)		(571	)		(606	)		(951	)		(1,137	)
Gain from acquisition		11,390			—			—			—			—			11,390			—
Total revenue (GAAP)	$	24,859		$	4,770		$	(22,962	)	$	(4,659	)	$	60,752		$	29,629		$	133,205
Expense reconciliation
Operating expense	$	55,348		$	52,569		$	52,439		$	56,970		$	49,761		$	107,917		$	97,290
Noncash goodwill impairment charge		—			70,000			—			—			—			70,000			—
Severance costs		—			2,898			—			—			—			2,898			—
Operating expense (GAAP)	$	55,348		$	125,467		$	52,439		$	56,970		$	49,761		$	180,815		$	97,290
(Loss) income before taxes reconciliation
Operating (loss) income before taxes	$	(41,416	)	$	(47,311	)	$	(74,848	)	$	(61,058	)	$	11,597		$	(88,727	)	$	37,052
Taxable equivalent adjustment		(463	)		(488	)		(553	)		(571	)		(606	)		(951	)		(1,137	)
Gain from acquisition		11,390			—			—			—			—			11,390			—
Noncash goodwill impairment charge		—			(70,000	)		—			—			—			(70,000	)		—
Severance costs		—			(2,898	)		—			—			—			(2,898	)		—
(Loss) income before taxes (GAAP)	$	(30,489	)	$	(120,697	)	$	(75,401	)	$	(61,629	)	$	10,991		$	(151,186	)	$	35,915
Income tax (benefit) expense reconciliation
Operating income tax (benefit) expense	$	(18,353	)	$	(15,335	)	$	(28,101	)	$	(21,184	)	$	4,504		$	(33,688	)	$	13,881
Taxable equivalent adjustment		(463	)		(488	)		(553	)		(571	)		(606	)		(951	)		(1,137	)
Gain from acquisition, tax expense		4,328			—			—			—			—			4,328			—
Severance costs, tax benefit		—			(1,101	)		—			—			—			(1,101	)		—
Income tax (benefit) expense (GAAP)	$	(14,488	)	$	(16,924	)	$	(28,654	)	$	(21,755	)	$	3,898		$	(31,412	)	$	12,744
(Loss) earnings per common share reconciliation
Operating (loss) earnings per common share	$	(0.53	)	$	(0.71	)	$	(0.99	)	$	(0.84	)	$	0.15		$	(1.24	)	$	0.49
Gain from acquisition		0.15			—			—			—			—			0.15			—
Noncash goodwill impairment charge		—			(1.45	)		—			—			—			(1.44	)		—
Severance costs		—			(0.04	)		—			—			—			(0.04	)		—
(Loss) earnings per common share (GAAP)	$	(0.38	)	$	(2.20	)	$	(0.99	)	$	(0.84	)	$	0.15		$	(2.57	)	$	0.49
Book value reconciliation
Tangible book value	$	8.85		$	9.65		$	10.39		$	10.48		$	11.03		$	8.85		$	11.03
Effect of goodwill and other intangibles		5.02			5.05			6.56			6.64			6.72			5.02			6.72
Book value (GAAP)	$	13.87		$	14.70		$	16.95		$	17.12		$	17.75		$	13.87		$	17.75
Efficiency ratio reconciliation
Operating efficiency ratio		74.15	%		75.15	%		81.34	%		79.35	%		65.05	%		74.63	%		61.97	%
Gain from acquisition		(9.82	)		—			—			—			—			(9.12	)		—
Noncash goodwill impairment charge		—			100.06			—			—			—			48.41			—
Severance costs		—			4.14			—			—			—			2.00			—
Efficiency ratio (GAAP)		64.33	%		179.35	%		81.34	%		79.35	%		65.05	%		115.92	%		61.97	%
Average equity to assets reconciliation
Tangible common equity to assets		5.81	%		6.13	%		6.23	%		6.65	%		6.77	%		5.97	%		6.75	%
Effect of preferred equity		2.19			2.17			.36			—			—			2.18			—
Tangible equity to assets		8.00			8.30			6.59			6.65			6.77			8.15			6.75
Effect of goodwill and other intangibles		2.76			3.34			3.49			3.63			3.56			3.05			3.56
Equity to assets (GAAP)		10.76	%		11.64	%		10.08	%		10.28	%		10.33	%		11.20	%		10.31	%
Actual tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets		7.48	%		8.03	%		8.34	%		8.26	%		8.51	%		7.48	%		8.51	%
Effect of other comprehensive income		(.72	)		(1.00	)		(.91	)		(.28	)		(.01	)		(.72	)		(.01	)
Effect of trust preferred		.89			.89			.88			.68			.67			.89			.67
Effect of preferred equity		3.00			2.96			2.90			—			—			3.00			—
Tier I capital ratio (Regulatory)		10.65	%		10.88	%		11.21	%		8.66	%		9.17	%		10.65	%		9.17	%

8

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End

											Linked			Year over
	2009				2008						Quarter			Year
	Second		First		Fourth		Third		Second		Change(2)			Change
(in millions)	Quarter(1)		Quarter		Quarter		Quarter		Quarter		Actual			Actual
LOANS BY CATEGORY
Commercial (sec. by RE)	$	1,797	$	1,779	$	1,627	$	1,604	$	1,584		4	%		13	%
Commercial construction		379		377		500		509		522		2			(27	)
Commercial & industrial		399		387		410		425		417		12			(4	)
Total commercial		2,575		2,543		2,537		2,538		2,523		5			2
Residential construction		1,315		1,430		1,479		1,596		1,745		(32	)		(25	)
Residential mortgage		1,470		1,504		1,526		1,528		1,494		(9	)		(2	)
Consumer / installment		153		156		163		168		171		(8	)		(11	)
Total loans	$	5,513	$	5,633	$	5,705	$	5,830	$	5,933		(9	)		(7	)
LOANS BY MARKET
Atlanta MSA	$	1,605	$	1,660	$	1,706	$	1,800	$	1,934		(13)	%		(17)	%
Gainesville MSA		413		422		420		426		422		(9	)		(2	)
North Georgia		1,978		2,014		2,040		2,066		2,065		(7	)		(4	)
Western North Carolina		794		808		810		815		819		(7	)		(3	)
Coastal Georgia		455		460		464		458		436		(4	)		4
East Tennessee		268		269		265		265		257		(1	)		4
Total loans	$	5,513	$	5,633	$	5,705	$	5,830	$	5,933		(9	)		(7	)
RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development	$	413	$	445	$	484	$	516	$	569		(29)	%		(27)	%
Land loans		159		155		153		142		139		10			14
Lot loans		369		390		358		385		401		(22	)		(8	)
Total		941		990		995		1,043		1,109		(20	)		(15	)
House loans
Spec		268		317		347		393		450		(62)	%		(40)	%
Sold		106		123		137		160		186		(55	)		(43	)
Total		374		440		484		553		636		(60	)		(41	)
Total residential construction	$	1,315	$	1,430	$	1,479	$	1,596	$	1,745		(32	)		(25	)
RESIDENTIAL CONSTRUCTION — ATLANTA MSA
Dirt loans
Acquisition & development	$	124	$	148	$	167	$	185	$	232		(65)	%		(47)	%
Land loans		63		52		56		47		50		85			26
Lot loans		81		98		86		103		117		(69	)		(31	)
Total		268		298		309		335		399		(40	)		(33	)
House loans
Spec		127		164		189		227		271		(90)	%		(53)	%
Sold		29		33		40		49		58		(48	)		(50	)
Total		156		197		229		276		329		(83	)		(53	)
Total residential construction	$	424	$	495	$	538	$	611	$	728		(57	)		(42	)

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

9

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

	Second Quarter 2009						First Quarter 2009						Fourth Quarter 2008
	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)	$	37,755	$	5,395	$	43,150	$	18,188	$	3,811	$	21,999	$	15,188	$	2,427	$	17,615
Commercial construction		15,717		5,847		21,564		6,449		2,948		9,397		1,513		2,333		3,846
Commercial & industrial		11,378		—		11,378		12,066		—		12,066		1,920		—		1,920
Total commercial		64,850		11,242		76,092		36,703		6,759		43,462		18,621		4,760		23,381
Residential construction		176,400		81,648		258,048		187,656		58,327		245,983		144,836		48,572		193,408
Residential mortgage		44,256		11,864		56,120		33,148		10,297		43,445		25,574		6,436		32,010
Consumer / installment		2,342		—		2,342		1,648		—		1,648		1,692		—		1,692
Total NPAs	$	287,848	$	104,754	$	392,602	$	259,155	$	75,383	$	334,538	$	190,723	$	59,768	$	250,491
NPAs BY MARKET
Atlanta MSA	$	148,155	$	50,450	$	198,605	$	131,020	$	48,574	$	179,594	$	105,476	$	42,336	$	147,812
Gainesville MSA		9,745		3,511		13,256		17,448		694		18,142		16,208		1,110		17,318
North Georgia		72,174		37,454		109,628		66,875		20,811		87,686		31,631		12,785		44,416
Western North Carolina		21,814		7,245		29,059		21,240		3,067		24,307		18,509		2,986		21,495
Coastal Georgia		30,311		3,904		34,215		15,699		1,286		16,985		11,863		138		12,001
East Tennessee		5,649		2,190		7,839		6,873		951		7,824		7,036		413		7,449
Total NPAs	$	287,848	$	104,754	$	392,602	$	259,155	$	75,383	$	334,538	$	190,723	$	59,768	$	250,491

	Second Quarter 2009					First Quarter 2009					Fourth Quarter 2008
			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)	$	5,986		1.34	%	$	826		.20	%	$	4,460		1.10	%
Commercial construction		756		.80			54		.05			1,442		1.14
Commercial & industrial		3,107		3.16			873		.89			3,416		3.24
Total commercial		9,849		1.54			1,753		.28			9,318		1.46
Residential construction		44,240		12.90			37,762		10.52			57,882		14.93
Residential mortgage		3,526		.95			2,984		.80			5,852		1.52
Consumer / installment		697		1.80			782		1.99			976		2.34
Total	$	58,312		4.18		$	43,281		3.09		$	74,028		5.09
NET CHARGE-OFFS BY MARKET
Atlanta MSA	$	37,473		8.89	%	$	26,228		6.16	%	$	49,309		10.80	%
Gainesville MSA		4,125		4.38			1,105		1.18			7,994		8.60
North Georgia		12,571		2.52			8,208		1.64			9,872		1.91
Western North Carolina		1,015		.51			3,669		1.83			2,371		1.16
Coastal Georgia		969		.85			3,229		2.84			3,150		2.70
East Tennessee		2,159		3.21			842		1.28			1,332		2.02
Total	$	58,312		4.18		$	43,281		3.09		$	74,028		5.09

	Second			First			Fourth
(in thousands)	Quarter 2009			Quarter 2009			Quarter 2008
FORECLOSED PROPERTIES
Beginning balance	$	75,383		$	59,768		$	38,438
Foreclosures transferred in		64,417			38,742			50,678
Capital costs added		1,324			1,452			1,059
Write downs		(2,738	)		(2,151	)		(2,714	)
Proceeds from sales		(33,632	)		(22,428	)		(27,693	)
Total	$	104,754		$	75,383		$	59,768

(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.

10

UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income(Unaudited)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(in thousands, except per share data)	2009			2008		2009			2008
Interest revenue:
Loans, including fees	$	81,691		$	97,051	$	163,571		$	206,317
Investment securities, including tax exempt of $309, $398, $628 and $792		20,485			19,277		41,237			38,299
Federal funds sold, commercial paper and deposits in banks		98			50		540			272
Total interest revenue		102,274			116,378		205,348			244,888
Interest expense:
Deposits:
NOW		2,843			7,216		6,180			15,803
Money market		2,269			2,310		4,506			5,223
Savings		121			180		248			407
Time		32,064			38,828		68,117			77,712
Total deposit interest expense		37,297			48,534		79,051			99,145
Federal funds purchased, repurchase agreements and other short-term borrowings		595			1,820		1,148			6,138
Federal Home Loan Bank advances		1,203			2,818		2,277			8,563
Long-term debt		2,760			2,059		5,529			4,139
Total interest expense		41,855			55,231		88,005			117,985
Net interest revenue		60,419			61,147		117,343			126,903
Provision for loan losses		60,000			15,500		125,000			23,000
Net interest revenue after provision for loan losses		419			45,647		(7,657	)		103,903
Fee revenue:
Service charges and fees		7,557			7,957		14,591			15,770
Mortgage loan and other related fees		2,825			2,202		5,476			4,165
Consulting fees		1,745			2,252		2,766			4,059
Brokerage fees		497			814		1,186			1,907
Securities (losses) gains, net		(711	)		357		(408	)		357
Gain from acquisition		11,390			—		11,390			—
Other		1,137			1,523		2,285			3,044
Total fee revenue		24,440			15,105		37,286			29,302
Total revenue		24,859			60,752		29,629			133,205
Operating expenses:
Salaries and employee benefits		28,058			28,753		56,897			57,507
Communications and equipment		3,645			3,852		7,374			7,684
Occupancy		3,853			3,704		7,660			7,420
Advertising and public relations		1,191			2,009		2,300			3,360
Postage, printing and supplies		1,294			1,448		2,476			3,040
Professional fees		2,806			1,679		5,099			3,600
Foreclosed property		5,737			2,852		10,056			3,763
FDIC assessments and other regulatory charges		6,810			1,265		9,492			2,531
Amortization of intangibles		739			745		1,478			1,512
Other		1,215			3,454		5,085			6,873
Goodwill impairment		—			—		70,000			—
Severance costs		—			—		2,898			—
Total operating expenses		55,348			49,761		180,815			97,290
(Loss) income before income taxes		(30,489	)		10,991		(151,186	)		35,915
Income tax (benefit) expense		(14,488	)		3,898		(31,412	)		12,744
Net (loss) income		(16,001	)		7,093		(119,774	)		23,171
Preferred stock dividends and discount accretion		2,559			4		5,113			8
Net (loss) income available to common shareholders	$	(18,560	)	$	7,089	$	(124,887	)	$	23,163
(Loss) earnings per common share:
Basic	$	(.38	)	$	.15	$	(2.57	)	$	.49
Diluted		(.38	)		.15		(2.57	)		.49
Weighted average common shares outstanding:
Basic		48,794			47,158		48,560			47,105
Diluted		48,794			47,249		48,560			47,260

11

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet

	June 30,		December 31,			June 30,
(in thousands, except share and per share data)	2009		2008			2008
	(unaudited)		(audited)			(unaudited)
ASSETS
Cash and due from banks	$	110,943	$	116,395		$	176,240
Interest-bearing deposits in banks		70,474		8,417			12,455
Federal funds sold, commercial paper and short-term investments		—		368,609			—
Cash and cash equivalents		181,417		493,421			188,695
Securities available for sale		1,816,787		1,617,187			1,430,588
Mortgage loans held for sale		42,185		20,334			27,094
Loans, net of unearned income		5,513,087		5,704,861			5,933,141
Less allowance for loan losses		145,678		122,271			91,035
Loans, net		5,367,409		5,582,590			5,842,106
Covered assets		230,125		—			—
Premises and equipment, net		178,983		179,160			181,395
Accrued interest receivable		41,405		46,088			50,399
Goodwill and other intangible assets		251,821		321,798			323,296
Other assets		292,914		260,187			220,478
Total assets	$	8,403,046	$	8,520,765		$	8,264,051
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand	$	714,630	$	654,036		$	696,575
NOW		1,273,368		1,543,385			1,541,609
Money market		573,463		466,750			418,935
Savings		180,368		170,275			187,088
Time:
Less than $100,000		1,992,056		1,953,235			1,747,763
Greater than $100,000		1,351,527		1,422,974			1,573,078
Brokered		763,348		792,969			531,408
Total deposits		6,848,760		7,003,624			6,696,456
Federal funds purchased, repurchase agreements, and other short-term borrowings		252,493		108,411			288,650
Federal Home Loan Bank advances		283,292		235,321			285,807
Long-term debt		150,026		150,986			107,996
Accrued expenses and other liabilities		13,203		33,041			47,252
Total liabilities		7,547,774		7,531,383			7,426,161
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		173,785		173,180			—
Common stock, $1 par value; 100,000,000 shares authorized;
48,933,383, 48,809,301 and 48,809,301 shares issued		48,933		48,809			48,809
Common stock issuable; 182,041, 129,304 and 105,579 shares		3,383		2,908			2,696
Capital surplus		450,514		460,708			462,939
Retained earnings		136,624		265,405			362,089
Treasury stock; 799,892 and 1,713,310 shares, at cost		—		(16,465	)		(39,222	)
Accumulated other comprehensive income		41,816		54,579			321
Total shareholders’ equity		855,272		989,382			837,890
Total liabilities and shareholders’ equity	$	8,403,046	$	8,520,765		$	8,264,051

12

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended June 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)	$	5,597,259		$	81,567		5.85	%	$	5,933,143		$	97,080		6.58	%
Taxable securities(3)		1,742,620			20,176		4.63			1,471,958			18,879		5.13
Tax-exempt securities(1)(3)		28,862			506		7.01			35,282			655		7.43
Federal funds sold and other interest-earning assets		73,437			488		2.66			37,635			370		3.93
Total interest-earning assets		7,442,178			102,737		5.53			7,478,018			116,984		6.29
Non-interest-earning assets:
Allowance for loan losses		(147,691	)							(93,776	)
Cash and due from banks		101,830								144,589
Premises and equipment		179,446								181,454
Other assets(3)		592,384								585,463
Total assets	$	8,168,147							$	8,295,748
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,258,134		$	2,843		.91		$	1,505,280		$	7,216		1.93
Money market		521,989			2,269		1.74			422,419			2,310		2.20
Savings		178,435			121		.27			186,826			180		.39
Time less than $100,000		1,894,071			15,342		3.25			1,643,740			17,285		4.23
Time greater than $100,000		1,325,757			11,513		3.48			1,484,032			16,135		4.37
Brokered		686,070			5,209		3.05			534,835			5,408		4.06
Total interest-bearing deposits		5,864,456			37,297		2.55			5,777,132			48,534		3.38
Federal funds purchased and other borrowings		220,376			595		1.08			383,378			1,820		1.91
Federal Home Loan Bank advances		309,962			1,203		1.56			412,268			2,818		2.75
Long-term debt		151,019			2,760		7.33			107,996			2,059		7.67
Total borrowed funds		681,357			4,558		2.68			903,642			6,697		2.98
Total interest-bearing liabilities		6,545,813			41,855		2.56			6,680,774			55,231		3.33
Non-interest-bearing liabilities:
Non-interest-bearing deposits		680,081								684,229
Other liabilities		63,043								74,018
Total liabilities		7,288,937								7,439,021
Shareholders’ equity		879,210								856,727
Total liabilities and shareholders’ equity	$	8,168,147							$	8,295,748
Net interest revenue				$	60,882							$	61,753
Net interest-rate spread							2.97	%							2.96	%
Net interest margin(4)							3.28	%							3.32	%

(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 $14.7 million in 2009 and $13.0 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.

13

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Six Months Ended June 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)	$	5,635,942		$	163,316		5.84	%	$	5,945,720		$	206,332		6.98	%
Taxable securities(3)		1,712,778			40,609		4.74			1,460,090			37,507		5.14
Tax-exempt securities(1)(3)		29,453			1,028		6.98			36,287			1,303		7.18
Federal funds sold and other interest-earning assets		107,788			1,346		2.50			42,652			883		4.14
Total interest-earning assets		7,485,961			206,299		5.55			7,484,749			246,025		6.60
Non-interest-earning assets:
Allowance for loan losses		(138,297	)							(92,901	)
Cash and due from banks		103,113								149,648
Premises and equipment		179,470								181,405
Other assets(3)		609,750								577,785
Total assets	$	8,239,997							$	8,300,686
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,307,865		$	6,180		.95		$	1,483,699		$	15,803		2.14
Money market		499,780			4,506		1.82			430,734			5,223		2.44
Savings		175,587			248		.28			185,819			407		.44
Time less than $100,000		1,918,349			32,559		3.42			1,598,526			35,508		4.47
Time greater than $100,000		1,359,286			24,338		3.61			1,424,670			32,505		4.59
Brokered		735,844			11,220		3.07			454,619			9,699		4.29
Total interest-bearing deposits		5,996,711			79,051		2.66			5,578,067			99,145		3.57
Federal funds purchased and other borrowings		185,639			1,148		1.25			467,596			6,138		2.64
Federal Home Loan Bank advances		257,742			2,277		1.78			536,883			8,563		3.21
Long-term debt		151,009			5,529		7.38			107,995			4,139		7.71
Total borrowed funds		594,390			8,954		3.04			1,112,474			18,840		3.41
Total interest-bearing liabilities		6,591,101			88,005		2.69			6,690,541			117,985		3.55
Non-interest-bearing liabilities:
Non-interest-bearing deposits		665,170								678,150
Other liabilities		60,612								75,802
Total liabilities		7,316,883								7,444,493
Shareholders’ equity		923,114								856,193
Total liabilities and shareholders’ equity	$	8,239,997							$	8,300,686
Net interest revenue				$	118,294							$	128,040
Net interest-rate spread							2.86	%							3.05	%
Net interest margin(4)							3.18	%							3.43	%

(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 $12.7 million in 2009 and $14.5 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.

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