United Community Banks (UCB) 8-K Results of Operations and Financial Condition

Exhibit 99.1

For Immediate Release

For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2265
Rex_Schuette@ucbi.com

UNITED COMMUNITY BANKS, INC. REPORTS
12% GAIN IN DILUTED OPERATING EARNINGS PER SHARE
FOR FOURTH QUARTER 2005

HIGHLIGHTS:

• Record Fourth Quarter Earnings
     Diluted Operating Earnings Per Share of $.38 — Up 12%
     Net Operating Income of $15.2 Million — Up 18%
     Return on Tangible Equity of 18.20%

• Strong Loan Demand, Rise in Net Interest Margin and Fee Revenue Drove Performance

BLAIRSVILLE, GA, January 24, 2006 — United Community Banks, Inc. (Nasdaq: UCBI), Georgia’s third largest bank holding company, today announced record financial results for the fourth quarter of 2005. Compared with the fourth quarter of 2004, the company achieved a 20% increase in total revenue, an 18% rise in net operating income and a 12% gain in diluted operating earnings per share.

For the fourth quarter of 2005, net operating income rose to $15.2 million compared with $12.9 million a year earlier. Diluted operating earnings per share increased to $.38 from $.34 a year ago. Total revenue, on a taxable equivalent basis, was $64.8 million compared with $54.1 million for the fourth quarter of 2004. Return on tangible equity was 18.20% and return on assets was 1.05%, compared with 19.96% and 1.07%, respectively, a year ago.

“Loan and deposit growth was strong across all markets,” said Jimmy Tallent, President and Chief Executive Officer of United Community Banks. “Total assets at year-end were $5.9 billion, a 15% increase from a year ago. Loans increased $144 million during the fourth quarter, or 14% on an annualized basis, and helped drive the increase in net interest revenue. Our net interest margin rose to 4.20%, up 15 basis points from a year ago and up three basis points from last quarter, as increasing short-term interest rates continued to positively affect our slightly asset-sensitive balance sheet. Fee revenue, excluding securities losses taken in the fourth quarter of 2005, was up 12%, reflecting increases in nearly every category.”

For the year, net operating income totaled $56.7 million, a 20% increase compared with $47.2 million for 2004. Diluted operating earnings per share of $1.43 increased 13% from $1.27 last year. Total revenue, on a taxable equivalent basis, was $245.4 million, up 25% from $196.5 million a year ago. Return on tangible equity was 18.99% and return on assets was 1.04%, compared with 19.74% and 1.07% a year ago, respectively. “Once again we met our performance goals of double-digit earnings per share growth and a return on tangible equity above 18% for the year,” Tallent said. “This year was exceptional. We took an opportunity to leverage our strong earnings performance by making strategic investments in the future growth of our company through a significant de novo expansion. We grew deposits faster than loans while expanding our margin. We raised additional capital through a very successful equity offering during the fourth quarter. And most importantly, this was all done while continuing to meet our primary financial goals,” added Tallent.

Net operating income excludes merger-related charges. In the fourth quarter of 2004, pre-tax merger charges of $406,000 were incurred related to the acquisitions of Eagle National Bank and Liberty National Bank. Including these merger-related charges, reported net income for the fourth quarter of 2004 was $12.6 million, diluted earnings per share was $.33 and return on equity was 14.15%. For the full year 2004, pre-tax merger-related charges were $870,000, which also included $464,000 related to the second quarter acquisition of 1^st Community Bank. For the year, reported net income was $46.6 million, diluted earnings per share was $1.25, and return on equity was 14.39%.

During the fourth quarter, United Community Banks completed the sale of 1,552,500 shares of common stock in a secondary offering that raised $40.5 million of capital. “This is a significant milestone and our first public equity offering,” stated Tallent. “We’re very pleased with the investor community’s positive response. This additional capital will allow us to continue to pursue and execute our successful balanced growth strategy.”

At December 31, 2005, total loans were $4.4 billion, up $663 million, or 18%, from a year ago. All of the loan growth for 2005 was organic, which included growth from a significant de novo expansion in Hall County, Georgia. “Loan demand continues to be strong across all markets, leading to excellent growth opportunities,” Tallent said. “Organic growth, with an uncompromising focus on sound credit quality, is at the core of our balanced growth strategy and is further supported by our focused geographic expansion. We find the right people and build around them, usually adding two to four de novo offices a year.” Tallent continued, “Earlier this year, we entered Gainesville by partnering with three local and highly respected banking executives to form United Community Bank — Hall County. Since opening for business in May, this team has added more than $245 million in loans and $130 million in deposits. We now have 78 staff and four banking offices, including the main office located in downtown Gainesville, and plan to open the fifth banking office by early 2006.”

“In the fourth quarter, we also opened a de novo banking office in Trion located in Chatooga County which complements our Summerville Bank. This followed the third quarter’s expansion of our Fairburn Bank where we opened de novo banking offices in Tyrone and Newnan Lakes located on the southside of metro Atlanta in Fayette and Coweta counties. It is a testimony to the success and strength of our existing franchise that we were able to absorb such a significant de novo undertaking and still deliver on our primary financial goals of consistent, sustainable double-digit growth in earnings per share,” Tallent stated.

“The fourth quarter was outstanding for deposit growth. We added $281 million of deposits, nearly doubling the level needed to fund our strong loan growth of $144 million,” Tallent said. “Our relentless focus on the highest level of customer service has generated customer satisfaction scores that continue to exceed 90%, well above the comparable industry average of

75%. This is invaluable in building deposits through customer referrals while also maintaining and growing long-term relationships with existing customers.”

For the fourth quarter, taxable equivalent net interest revenue of $56.9 million was $11.6 million higher, or 26%, than the fourth quarter of 2004. Acquisitions completed in late 2004 added approximately $1.8 million to net interest revenue leaving the core growth rate at 22%. Taxable equivalent net interest margin for the fourth quarter was 4.20% as compared with 4.05% a year ago and 4.17% for the third quarter of 2005. “Our balance sheet remains asset sensitive, which allowed us to benefit modestly from the rise in interest rates that produced a slight margin expansion throughout 2005,” Tallent said.

The fourth quarter provision for loan losses was $3.5 million, up $1.5 million from a year earlier and up $100,000 from the third quarter of 2005. Annualized net charge-offs to average loans were 16 basis points for the fourth quarter, compared with 13 basis points for the third quarter of 2005 and 13 basis points for the fourth quarter of 2004. At year-end, non-performing assets totaled $13.0 million compared with $13.6 million at the end of the third quarter of 2005 and $8.7 million a year ago. Non-performing assets as a percentage of total assets were 22 basis points at year-end, compared with 24 basis points at September 30, 2005 and 17 basis points at December 31, 2004. “During the fourth quarter, we resolved several non-performing assets, which slightly increased net charge-offs while lowering non-performing assets,” Tallent said. “Asset quality continues to compare favorably with peer banks and remains well within our tolerance levels. Strong credit quality, rooted with our guiding principle of securing loans with hard assets, is essential to our balanced growth strategy and overall success.”

Fee revenue of $11.4 million reflected an increase of $616,000, or 6%, from $10.8 million for the fourth quarter of 2004. “Excluding securities losses in the fourth quarter of 2005, core fee revenue growth from a year ago was $1.3 million, or 12%, with steady growth achieved in nearly every category,” Tallent stated. “Service charges and fees on deposit accounts increased $970,000 to $6.6 million, primarily due to growth in transactions and new accounts resulting from core deposit program and the cross-selling of other products and services. Brokerage fees increased 85% to $789,000 due to strong market activity. Consulting fees of $1.7 million were

down slightly, due to the timing of work completed last year for the documentation and testing of internal controls in our risk management practice,” Tallent added.

Operating expenses of $40.5 million increased $6.8 million, or 20%, from the fourth quarter of 2004. Approximately $4.0 million of this increase related to operating expenses of two banks acquired in the fourth quarter of 2004 and de novo expansion in 2005. Salaries and employee benefit costs of $25.6 million increased $4.0 million, or 19%, from the fourth quarter of 2004 with $2.8 million resulting from acquisitions and de novo expansion. The balance was due to an increase in staff to support business growth and related hiring costs and higher commissions related to the increase in brokerage revenue. Communications and equipment expenses increased $683,000 to $3.6 million due to the acquisitions last year and further investments in technology equipment to support business growth. Advertising and marketing expense rose $463,000 to $2.0 million reflecting the cost of successful initiatives to raise core deposits and continued efforts to generate brand awareness in new markets. Occupancy expense increased $342,000 to $2.7 million reflecting the increase in cost to operate additional banking offices added through acquisitions and de novo expansion. Postage, printing and supplies expense increased $328,000 to $1.4 million reflecting the higher cost of office supplies and courier costs resulting from the growing franchise. The increase in other operating expense was due to acquisitions, losses incurred in the disposal of other real estate and business growth. “Our operating efficiency ratio of 58.80% for the quarter is within our long-term efficiency goal of 58% to 60%, reflecting the success of our recent expansion efforts and the continued strength of our existing franchise,” Tallent said.

On January 19, 2006, the Board of Directors declared a regular first-quarter 2006 cash dividend of $.08 per common share payable April 3, 2006, to shareholders of record as the close of business on March 15, 2006. “This represents an annual cash dividend of $.32 per share and an increase of $.04 per share, or 14%, over the dividends paid for 2005,” Tallent said. “This increase reflects our continued strong performance and commitment to deliver value to our shareholders.”

“Our outlook for 2006 is for operating earnings per share growth within our long-term goal of 12% to 15%, but at the lower end of the range due to the expected dilution related to the equity offering completed during the fourth quarter,” Tallent said. “We anticipate core loan growth will continue to be within our targeted range of 10% to 14%. Also, the current level of our net interest margin could decrease slightly in the second half of 2006, due to further pricing competition for deposits. Our outlook assumes a stable economic environment and continued strong credit quality.”

“We are committed to excellent customer service, superior operating performance and solid credit quality as we continue our efforts to build shareholder value through our balanced growth strategy of strong internal growth, complemented by selective de novo and merger expansion,” Tallent added.

Conference Call
United Community Banks will hold a conference call on Tuesday, January 24, 2006, at 11 a.m. ET to discuss the contents of this news release, as well as business highlights for the quarter and the financial outlook for 2006. The telephone number for the conference call is (866) 383-7998 and the pass code is “UCBI.” The conference call will also be available by web cast within the Investor Relations section of the company’s web site.

About United Community Banks, Inc.
Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. As of December 31, 2005, United Community Banks had assets of $5.9 billion and operated 24 community banks with 90 banking offices located throughout north Georgia, metro Atlanta, 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 National Market under the symbol UCBI. Additional information may be found at the company’s web site,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 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 4 of United Community Banks, Inc. annual report filed on Form 10-K with the Securities and Exchange Commission.

(Tables Follow)

UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Three and Twelve Months Ended December 31, 2005

																Fourth
	2005												2004			Quarter			For the Twelve						YTD
(in thousands, except per share	Fourth			Third			Second			First			Fourth			2005-2004			Months Ended						2005-2004
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			Change			2005			2004			Change
INCOME SUMMARY
Interest revenue	$	95,465		$	89,003		$	80,701		$	73,649		$	66,761					$	338,818		$	239,386
Interest expense		38,576			34,033			29,450			25,367			21,448						127,426			74,794
Net interest revenue		56,889			54,970			51,251			48,282			45,313			26	%		211,392			164,592			28	%
Provision for loan losses		3,500			3,400			2,800			2,400			2,000						12,100			7,600
Fee revenue		11,373			12,396			12,179			10,200			10,757			6			46,148			39,539			17
Total revenue		64,762			63,966			60,630			56,082			54,070			20			245,440			196,531			25
Operating expenses(1)		40,520			41,294			38,808			34,779			33,733			20			155,401			122,568			27
Income before taxes		24,242			22,672			21,822			21,303			20,337			19			90,039			73,963			22
Income taxes		9,012			8,374			8,049			7,862			7,427						33,297			26,807
Net operating income		15,230			14,298			13,773			13,441			12,910			18			56,742			47,156			20
Merger-related charges, net of tax		—			—			—			—			261						—			565
Net income	$	15,230		$	14,298		$	13,773		$	13,441		$	12,649			20		$	56,742		$	46,591			22
OPERATING PERFORMANCE(1)
Earnings per common share:
Basic	$	.39		$	.37		$	.36		$	.35		$	.35			11		$	1.47		$	1.31			12
Diluted		.38			.36			.35			.34			.34			12			1.43			1.27			13
Return on tangible equity(2)(3)(4)		18.20	%		18.90	%		19.21	%		19.86	%		19.96	%					18.99	%		19.74	%
Return on assets(4)		1.05			1.01			1.03			1.06			1.07						1.04			1.07
Efficiency ratio		58.80			61.16			61.18			59.47			60.20						60.15			60.05
Dividend payout ratio		17.95			18.92			19.44			20.00			17.14						19.05			18.32
GAAP PERFORMANCE
Per common share:
Basic earnings	$	.39		$	.37		$	.36		$	.35		$	.34			15		$	1.47		$	1.29			14
Diluted earnings		.38			.36			.35			.34			.33			15			1.43			1.25			14
Cash dividends declared		.07			.07			.07			.07			.06			17			.28			.24			17
Book value		11.80			11.04			10.86			10.42			10.39			14			11.80			10.39			14
Tangible book value(3)		8.94			8.05			7.85			7.40			7.34			22			8.94			7.34			22
Key performance ratios:
Return on equity(2)(4)		13.30	%		13.42	%		13.46	%		13.68	%		14.15	%					13.46	%		14.39	%
Return on assets(4)		1.05			1.01			1.03			1.06			1.05						1.04			1.05
Net interest margin(4)		4.20			4.17			4.12			4.05			4.05						4.14			4.00
Dividend payout ratio		17.95			18.92			19.44			20.00			17.65						19.05			18.60
Equity to assets		7.69			7.46			7.65			7.71			7.54						7.63			7.45
Tangible equity to assets(3)		5.82			5.53			5.62			5.58			5.75						5.64			5.78
ASSET QUALITY
Allowance for loan losses	$	53,595		$	51,888		$	49,873		$	48,453		$	47,196					$	53,595		$	47,196
Non-performing assets		12,995			13,565			13,495			13,676			8,725						12,995			8,725
Net charge-offs		1,793			1,385			1,380			1,143			1,183						5,701			3,617
Allowance for loan losses to loans		1.22	%		1.22	%		1.22	%		1.25	%		1.26	%					1.22	%		1.26	%
Non-performing assets to total assets		.22			.24			.24			.26			.17						.22			.17
Net charge-offs to average loans(4)		.16			.13			.14			.12			.13						.14			.11
AVERAGE BALANCES
Loans	$	4,328,613		$	4,169,170		$	3,942,077		$	3,797,479		$	3,572,824			21		$	4,061,091		$	3,322,916			22
Investment securities		1,004,966			1,008,687			996,096			946,194			805,766			25			989,201			734,577			35
Earning assets		5,383,096			5,239,195			4,986,339			4,819,961			4,456,403			21			5,109,053			4,119,327			24
Total assets		5,769,632			5,608,158			5,338,398			5,164,464			4,781,018			21			5,472,200			4,416,835			24
Deposits		4,354,275			4,078,437			3,853,884			3,717,916			3,500,842			24			4,003,083			3,247,612			23
Stockholders’ equity		443,746			418,459			408,352			398,164			360,668			23			417,309			329,225			27
Common shares outstanding:
Basic		39,084			38,345			38,270			38,198			37,056						38,477			36,071
Diluted		40,379			39,670			39,436			39,388			38,329						39,721			37,273
AT PERIOD END
Loans	$	4,398,286		$	4,254,051		$	4,072,811		$	3,877,575		$	3,734,905			18		$	4,398,286		$	3,734,905			18
Investment securities		990,687			945,922			990,500			928,328			879,978			13			990,687			879,978			13
Earning assets		5,470,718			5,302,532			5,161,067			4,907,743			4,738,389			15			5,470,718			4,738,389			15
Total assets		5,865,756			5,709,666			5,540,242			5,265,771			5,087,702			15			5,865,756			5,087,702			15
Deposits		4,477,600			4,196,369			3,959,226			3,780,521			3,680,516			22			4,477,600			3,680,516			22
Stockholders’ equity		472,686			424,000			415,994			398,886			397,088			19			472,686			397,088			19
Common shares outstanding		40,020			38,383			38,283			38,249			38,168						40,020			38,168

(1)	Excludes pre-tax merger-related charges totaling $406,000 or $.01 per diluted common share and $870,000 or $.02 per diluted common share in the fourth quarter and full year of 2004, respectively.
(2)	Net income available to common stockholders, which excludes preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income.
(3)	Excludes effect of acquisition related intangibles and associated amortization.
(4)	Annualized.

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

(in thousands, except per share data;																			5 Year
taxable equivalent)	2005			2004			2003			2002			2001			2000			CAGR(4)
INCOME SUMMARY
Interest revenue	$	338,818		$	239,386		$	209,338		$	195,932		$	210,036		$	213,115
Interest expense		127,426			74,794			70,600			76,357			100,874			116,591
Net interest revenue		211,392			164,592			138,738			119,575			109,162			96,524			17	%
Provision for loan losses		12,100			7,600			6,300			6,900			6,000			7,264
Fee revenue		46,148			39,539			38,184			30,734			25,267			18,867			20
Total revenue		245,440			196,531			170,622			143,409			128,429			108,127			18
Operating expenses(1)		155,401			122,568			107,900			91,124			83,906			74,043			16
Income before taxes		90,039			73,963			62,722			52,285			44,523			34,084			21
Income taxes		33,297			26,807			23,247			19,505			16,208			12,337
Net operating income		56,742			47,156			39,475			32,780			28,315			21,747			21
Merger-related charges, net of tax		—			565			1,357			—			1,084			7,230
Net income	$	56,742		$	46,591		$	38,118		$	32,780		$	27,231		$	14,517			31
OPERATING PERFORMANCE(1)
Earnings per common share:
Basic	$	1.47		$	1.31		$	1.15		$	1.02		$	.89		$	.70			16
Diluted		1.43			1.27			1.12			.99			.87			.69			16
Return on tangible equity(2)(3)		18.99	%		19.74	%		19.24	%		17.88	%		18.19	%		16.74	%
Return on assets		1.04			1.07			1.06			1.11			1.10			.89
Efficiency ratio		60.15			60.05			60.89			60.66			62.52			64.15
Dividend payout ratio		19.05			18.32			17.39			16.34			14.98			14.29
GAAP PERFORMANCE
Per common share:
Basic earnings	$	1.47		$	1.29		$	1.11		$	1.02		$	.86		$	.47			26
Diluted earnings		1.43			1.25			1.08			.99			.84			.46			25
Cash dividends declared (rounded)		.28			.24			.20			.17			.13			.10			23
Book value		11.80			10.39			8.47			6.89			5.98			4.93			19
Tangible book value (3)		8.94			7.34			6.52			6.49			5.40			4.49			15
Key performance ratios:
Return on equity(2)		13.46	%		14.39	%		14.79	%		16.54	%		16.08	%		10.04	%
Return on assets		1.04			1.05			1.02			1.11			1.05			.59
Net interest margin		4.14			4.00			3.99			4.33			4.51			4.16
Dividend payout ratio		19.05			18.60			18.02			16.34			15.50			21.28
Equity to assets		7.63			7.45			7.21			7.01			6.81			5.58
Tangible equity to assets(3)		5.64			5.78			6.02			6.60			6.18			5.49
ASSET QUALITY
Allowance for loan losses	$	53,595		$	47,196		$	38,655		$	30,914		$	27,124		$	24,698
Non-performing assets		12,995			8,725			7,589			8,019			9,670			6,716
Net charge-offs		5,701			3,617			4,097			3,111			4,578			2,976
Allowance for loan losses to loans		1.22	%		1.26	%		1.28	%		1.30	%		1.35	%		1.38	%
Non-performing assets to total assets		.22			.17			.19			.25			.35			.27
Net charge-offs to average loans		.14			.11			.15			.14			.25			.18
AVERAGE BALANCES
Loans	$	4,061,091		$	3,322,916		$	2,753,451		$	2,239,875		$	1,854,968		$	1,683,403			19
Investment securities		989,201			734,577			667,211			464,468			489,332			586,222			11
Earning assets		5,109,053			4,119,327			3,476,030			2,761,265			2,419,080			2,319,389			17
Total assets		5,472,200			4,416,835			3,721,284			2,959,295			2,585,290			2,453,250			17
Deposits		4,003,084			3,247,612			2,743,087			2,311,717			2,010,105			1,941,496			16
Stockholders’ equity		417,309			329,225			268,446			207,312			176,144			136,810			25
Common shares outstanding:
Basic		38,477			36,071			34,132			32,062			31,691			30,900
Diluted		39,721			37,273			35,252			33,241			32,624			31,791
AT PERIOD END
Loans	$	4,398,286		$	3,734,905		$	3,015,997		$	2,381,798		$	2,007,990		$	1,792,055			20
Investment securities		990,687			879,978			659,891			559,390			470,176			508,266			14
Earning assets		5,470,718			4,738,389			3,796,332			3,029,409			2,554,530			2,352,475			18
Total assets		5,865,756			5,087,702			4,068,834			3,211,344			2,749,257			2,528,879			18
Deposits		4,477,600			3,680,516			2,857,449			2,385,239			2,116,499			1,995,865			18
Stockholders’ equity		472,686			397,088			299,373			221,579			194,665			158,388			24
Common shares outstanding		40,020			38,168			35,289			31,895			32,266			31,542

(1)	Excludes pre-tax merger-related and restructuring charges totaling $.9 million, or $.02 per diluted common share, recorded in 2004; $2.1 million, or $.04 per diluted common share, recorded in 2003; $1.6 million, or $.03 per diluted common share, recorded in 2001; and $10.6 million, or $.23 per diluted common share, recorded in 2000.
(2)	Net income available to common stockholders, which excludes preferred stock dividends, divided by average realized common equity which excludes accumulated other comprehensive income.
(3)	Excludes effect of acquisition related intangibles and associated amortization.
(4)	Compound annual growth rate.

UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income
For the Three and Twelve Months Ended December 31,

	Three Months Ended					Twelve Months Ended
	December 31,					December 31,
(in thousands, except per share data)	2005			2004		2005			2004
Interest revenue:
Loans, including fees	$	83,607		$	57,800	$	293,990		$	207,571
Investment securities:
Taxable		10,651			7,769		40,195			27,431
Tax exempt		513			536		2,086			2,161
Federal funds sold and deposits in banks		249			260		911			618
Total interest revenue		95,020			66,365		337,182			237,781
Interest expense:
Deposits:
Demand		6,101			2,689		19,194			8,554
Savings		226			129		791			403
Time		21,288			11,524		66,968			41,202
Total deposit interest expense		27,615			14,342		86,953			50,159
Federal funds purchased, repurchase agreements, & other short-term borrowings		1,516			727		5,101			2,119
Federal Home Loan Bank advances		7,230			4,264		26,633			14,237
Long-term Debt		2,215			2,115		8,739			8,279
Total interest expense		38,576			21,448		127,426			74,794
Net interest revenue		56,444			44,917		209,756			162,987
Provision for loan losses		3,500			2,000		12,100			7,600
Net interest revenue after provision for loan losses		52,944			42,917		197,656			155,387
Fee revenue:
Service charges and fees		6,616			5,646		25,137			21,540
Mortgage loan and other related fees		1,738			1,712		7,330			6,324
Consulting fees		1,665			1,794		6,609			5,749
Brokerage fees		789			427		2,570			2,027
Securities (losses) gains, net		(654	)		34		(809	)		428
Loss on prepayments of borrowings		—			—		—			(391	)
Other		1,219			1,144		5,311			3,862
Total fee revenue		11,373			10,757		46,148			39,539
Total revenue		64,317			53,674		243,804			194,926
Operating expenses:
Salaries and employee benefits		25,604			21,571		99,447			77,995
Communications and equipment		3,576			2,893		13,157			10,945
Occupancy		2,706			2,364		10,835			9,271
Advertising and public relations		1,988			1,525		6,733			4,403
Postage, printing and supplies		1,355			1,027		5,501			4,451
Professional fees		1,023			1,057		4,306			3,724
Amortization of intangibles		503			466		2,012			1,674
Merger-related charges		—			406		—			870
Other		3,765			2,830		13,410			10,105
Total operating expenses		40,520			34,139		155,401			123,438
Income before income taxes		23,797			19,535		88,403			71,488
Income taxes		8,567			6,886		31,661			24,897
Net income	$	15,230		$	12,649	$	56,742		$	46,591
Net income available to common stockholders	$	15,225		$	12,649	$	56,719		$	46,582
Earnings per common share:
Basic	$	.39		$	.34	$	1.47		$	1.29
Diluted	$	.38			.33	$	1.43			1.25
Weighted average common shares outstanding (in thousands):
Basic		39,084			37,056		38,477			36,071
Diluted		40,379			38,329		39,721			37,273

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
For the period ended

	December 31,			December 31,
(in thousands, except per share data)	2005			2004
ASSETS
Cash and due from banks	$	121,963		$	99,742
Interest-bearing deposits in banks		20,607			35,098
Cash and cash equivalents		142,570			134,840
Securities available for sale		990,687			879,978
Mortgage loans held for sale		22,335			37,094
Loans, net of unearned income		4,398,286			3,734,905
Less — allowance for loan losses		53,595			47,196
Loans, net		4,344,691			3,687,709
Premises and equipment, net		112,887			103,679
Accrued interest receivable		37,197			27,923
Intangible assets		118,651			121,207
Other assets		96,738			95,272
Total assets	$	5,865,756		$	5,087,702
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand	$	602,525		$	532,879
Interest-bearing demand		1,264,947			1,055,192
Savings		175,453			171,898
Time		2,434,675			1,920,547
Total deposits		4,477,600			3,680,516
Federal funds purchased, repurchase agreements, & other short-term borrowings		122,881			132,931
Federal Home Loan Bank advances		635,616			737,947
Long-term debt		111,869			111,869
Accrued expenses and other liabilities		45,104			27,351
Total liabilities		5,393,070			4,690,614
Stockholders’ equity:
Preferred stock, $1 par value; $10 stated value; 10,000,000 shares authorized; 32,200 and 44,800 shares issued and outstanding in 2005 and 2004, respectively		322			448
Common stock, $1 par value; 100,000,000 shares authorized; 40,019,853 and 38,407,874 shares issued in 2005 and 2004, respectively		40,020			38,408
Common stock issuable; 9,948 shares in 2005		271			—
Capital surplus		193,355			155,076
Retained earnings		250,563			204,709
Treasury stock; 240,346 shares in 2004, at cost		—			(4,413	)
Accumulated other comprehensive (loss) income		(11,845	)		2,860
Total stockholders’ equity		472,686			397,088
Total liabilities and stockholders’ equity	$	5,865,756		$	5,087,702