UNITED COMMUNITY BANKS, INC. SUPPLEMENT dated April 1, 1997 to PROSPECTUS dated March 7, 1997 _______________________ 300,000 Shares of Common Stock $1 par value per Share $22 per Share _______________________ This Supplement has been prepared solely for use in conjunction with the Prospectus dated March 7, 1997 (the "Prospectus") pursuant to which an aggregate of 250,000 shares of Common Stock (the "Shares") were offered by United Community Banks, Inc. ("United") at $22.00 per share. United has increased the number of shares offered by United by 50,000 shares from 250,000 to 300,000 shares at the same offering price of $22.00 per share. This Supplement highlights certain sections of the March 7, 1997 Prospectus which are affected by the increase in the number of shares being sold. The price per share and all other aspects of the Offering including the use of proceeds remain the same. The sale of an additional 50,000 shares will increase the proceeds to United by $1,100,000. After the Offering, 6,937,248 shares will be deemed outstanding (including shares underlying the prime plus 1/4% Convertible Subordinated Payable-in-Kind Debentures due December 31, 2006 and presently exercisable options to acquire 58,400 shares). The net proceeds from the sale of the shares of Common Stock will be $6,400,000, after the deduction of estimated offering expenses payable by United. Set forth below is a table containing revised summary consolidated financial information and a revised capitalization table: 1 United Community Banks, Inc. Summary Consolidated Financial Information (Dollars in thousands, except per share amounts) Pro Forma Consolidated As Adjusted<F3> ------------------- December 31, Sept. 30, Sept. 30, ----------------------------------------------------------- ------------------- 1991 1992 1993 1994 1995 1996 1996 ---- ---- ---- ---- ---- ---- ---- Balance Sheet Data Total assets . . . . . . . . . . . . . $269,684 $332,013 $393,632 $456,936 659,669 779,565 789,965 Loans, gross . . . . . . . . . . . . . 180,254 224,057 283,611 341,621 456,140 564,685 564,685 Deposits . . . . . . . . . . . . . . . 242,957 300,020 349,765 393,270 590,656 680,337 680,337 Long term debt . . . . . . . . . . . . 5,277 7,800 7,400 9,400 11,309 10,736 10,736 Stockholders' equity . . . . . . . . . 17,968 20,942 25,449 30,217 44,027 48,766 56,266 Pro Forma Consolidated As Adjusted<F3> ------------------------------ As of December 31, Sept. 30, Sept. 30, Dec. 31, ------------------------------------------------- ------------------------------ 1991 1992 1993 1994 1995 1996 1996 1995 ---- ---- ---- ---- ---- ---- ---- ---- Statement of Earnings Data Net interest income . . . . . . . . . $9,322 $11,131 $14,516 $18,217 22,919 22,632 22,802 23,147 Provision for loan losses . . . . . . 834 472 842 935 1,040 915 915 1,040 Noninterest income . . . . . . . . . . 1,551 2,157 3,700 3,762 4,264 3,740 3,740 4,264 Noninterest expense . . . . . . . . . 7,377 8,635 11,705 13,902 17,854 16,803 16,803 17,854 Net earnings . . . . . . . . . . . . . 2,082 3,126 4,202 5,200 6,051 5,724 5,836 6,201 Per Share Data Book value (period end)<F1> . . . . . . 3.29 3.81 4.55 5.41 7.03 7.79 8.35 7.65 Net earnings . . . . . . . . . . . . . 0.38 0.57 0.76 0.93 1.04 0.91 0.87 0.99 Weighted average outstanding shares . 5,454,040 5,492.435 5,545,110 5,589,365 5,813,615 6,260,280 6,738,848 6,292,183 Dividends . . . . . . . . . . . . . . 0.03 0.05 0.04 0.04 0.07 0.04 0.04 0.04 Ratios Return on average assets . . . . 0.82% 1.04% 1.16% 1.22% 1.08% 1.05% 1.07% 1.08% Return on average stockholders' equity 12.23% 16.07% 18.12% 18.68% 16.30% 16.49% 15.56% 15.17% Net interest margin<F2> . . . . . . . . 4.27% 4.27% 4.57% 4.88% 4.60% 4.64% 4.60% 4.56% Average stockholders' equity to average assets 6.73% 6.47% 6.41% 6.51% 6.60% 6.45% 6.86% 7.13% ______________ <FN> <F1> Represents stockholders' equity divided by the number of outstanding shares at period end. <F2> Represents net interest income as a percentage of average interest-earning assets. <F3> Gives effect to the application of the net proceeds of the Offering, issuance of the 2006 Debentures and conversion of the 2000 Debentures as of December 31, 1996. See Management's Discussion and Analysis of Financial Condition and Results of Operations - Financial Information for the Nine Months Ended September 30, 1996 - Developments Since September 30, 1996. </FN> 2 CAPITALIZATION The following table sets forth the consolidated capitalization of United at September 30, 1996, and as adjusted at that date to give effect to the sale by United of the 2006 Debentures, conversion of the 2000 Debentures and the sale of 300,000 shares of Common Stock and the application of the estimated net proceeds therefrom as described in "USE OF PROCEEDS" and as further adjusted to give effect to the application of the net proceeds of the Offering. This table should be reviewed in conjunction with the United's Consolidated Financial Statements and the related notes thereto appearing elsewhere in this Prospectus. September 30, 1996 ------------------ Actual As Adjusted <F1> ------ ---------------- ($ in thousands) Long-Term Debt . . . . . . . . . . . . . . . . . . . . $10,736 $10,736 Convertible Subordinated Debentures . . . . . . . . . . 1,000 3,500 Stockholders' Equity: Preferred Stock, $1.00 par value; 10,000,000 shares authorized, no shares issued and outstanding Common Stock, $1.00 par value; 10,000,000 shares authorized, 6,260,280 shares issued and outstanding, 6,738,848 shares issued and outstanding, as adjusted 6,260 6,739 Capital surplus . . . . . . . . . . . . . . . . . . . . 14,520 21,541 Retained earnings . . . . . . . . . . . . . . . . . . . 28,471 28,471 Unrealized losses on securities available for sale . . (485) (485) Total stockholders' equity . . . . . . . . . . . . . . 48,766 56,266 Total capitalization 60,502 70,502 __________________ <FN> <F1> Gives effect to the application of the net proceeds of the Offering, proceeds from issuance of 2006 Debentures and conversion of the 2000 Debentures as of December 31, 1996. See Management's Discussion and Analysis of Financial Condition and Results of Operations - Financial Information for the Nine Months Ended September 30, 1996 - Developments Since September 30, 1996. </FN>