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

EARNINGS OF $11.5 MILLION FOR FIRST QUARTER 2012

● Net income of $11.5 million, or 15 cents per share

● Pre-tax, pre-credit earnings, excluding one-time items, highest since fourth quarter 2009

● Loan growth continues, up $18 million from fourth quarter, or 2 percent annualized

● Core transaction deposits up $151 million from fourth quarter, or 21 percent annualized

● Capital ratios strengthen

BLAIRSVILLE, GA – April 26, 2012 – United Community Banks, Inc. (NASDAQ: UCBI) today reported net income of $11.5 million, or 15 cents per share, for the first quarter of 2012.  The positive results reflect strong core transaction deposit growth, modest loan growth, a fee revenue increase and lower operating expenses compared with the fourth quarter of 2011.

“Momentum continues to build in restoring and improving our financial performance,” said Jimmy Tallent, president and chief executive officer.  “With credit problems now at a manageable level, we have increased our focus on improving core pre-tax, pre-credit earnings through revenue growth and higher efficiency.  The results are encouraging: Core pre-tax, pre-credit earnings, excluding one-time items, were at their highest level since the fourth quarter of 2009.”

Total loans were $4.13 billion at quarter-end, up $18 million from the fourth quarter and down $66 million from a year earlier.  “In the fourth quarter we reversed the trend of declining loan balances, and in the first quarter we achieved modest loan growth,” stated Tallent.  “We are prudently growing our portfolio by focusing on full-service relationships with small-to-medium sized businesses.  During the first quarter we added $169 million in new loan commitments of which $131 million were funded by quarter-end.  The majority were commercial loans.”

The first quarter provision for loan losses was $15 million, down from $190 million a year ago and up slightly from $14 million in the fourth quarter of 2011.  The first quarter 2011 provision was elevated due to execution of United’s problem asset disposition plan following the successful raising of $380 million in capital.

First quarter net charge-offs were $15.9 million, compared to $232 million in the first quarter of 2011 and $45.6 million in the fourth quarter. A bulk loan sale, part of the problem asset disposition plan, elevated net charge-offs in the 2011 first quarter. Fourth quarter 2011 net charge-offs included $25 million related to United’s largest loan relationship.

Nonperforming assets of $161.6 million reflected a $1.3 million increase from the fourth quarter of 2011, and a $23.4 million increase from the first quarter of 2011.  Said Tallent, “Nonperforming asset levels are impacted significantly by the inflow of new nonperforming loans and our ability to liquidate foreclosed properties.  While the inflow of new nonperforming loans fell from $46 million in the fourth quarter to $32 million in the first quarter, nonperforming assets did not decline due to slow foreclosed property sales, which is typical in the winter months.  We expect our overall credit trends to improve during 2012, although not necessarily on a straight line.”

Taxable equivalent net interest revenue of $58.9 million reflected a slight decline from the fourth quarter of 2011, and an increase of $2.5 million from the first quarter of 2011 due to the $2 million reversal of accrued interest last year on performing loans included in the bulk loan sale.  The net interest margin was 3.53 percent for the first quarter of 2012, up 23 basis points from a year ago and two basis points from the fourth quarter of 2011.

“Growing quality loan and deposit relationships is a key focus in 2012,” Tallent commented.  “The weak economy has created a highly competitive environment for good, quality loans; yet, our momentum continues to build as the seasoned relationship managers we have added in key markets attract new business.  Our success attracting core transaction deposits also has continued, with balances increasing $151 million during the first quarter.  That is 21 percent growth on an annualized basis.”

Fee revenue was $15.4 million in the first quarter of 2012, compared to $12.7 million in the fourth quarter and $11.8 million a year ago.  Service charges and fees were $7.8 million, up $535,000 from the fourth quarter and $1.1 million from a year ago.  The increase in service charges and fees from both periods reflects new charges on deposit accounts that became effective in the first quarter of 2012, and higher debit card revenue.  Combined, these revenue increases more than offset lower overdraft fees.

Mortgage fee revenue increased $274,000 from the fourth quarter, and $605,000 from a year ago, to $2.1 million.   The comparisons to prior periods are influenced significantly by the interest rate environment and refinancing activities.  Mortgage loans closed totaled $81.7 million in the first quarter of 2012 compared with $78.8 million and $74.5 million, respectively, in the fourth and first quarters of 2011.  Other fee revenue of $4.6 million reflected a $1.8 million increase from the fourth quarter, and a $1.7 million increase from the first quarter of 2011.  The increase from both prior periods was primarily due to the recognition of $1.1 million in interest received for 2008’s federal tax refund.

Excluding foreclosed property costs, first quarter 2012 operating expenses were $43.1 million compared to $41.8 million for the fourth quarter of 2011.  Operating expenses increased $1.3 million on a linked-quarter basis due to a reclassification of expenses reflected in the fourth quarter of 2011 that transferred $2.2 million of salary and employee benefit costs to other comprehensive income for unamortized prior service costs and actuarial losses related to United’s modified retirement plan.  Excluding this one-time adjustment, the first quarter’s total operating expenses were down $900,000 from the fourth quarter, primarily due to lower staff costs.  First quarter operating expenses decreased by $7.2 million in the first quarter compared to the same period a year ago, primarily due to $2.9 million in higher FDIC premium assessments in the first quarter of 2011, and costs incurred during that period related to the problem asset disposition plan: $1.0 million in professional fees and $2.6 million in property taxes paid on assets sold.

Foreclosed property costs for the first quarter of 2012 were $3.8 million, compared to $9.3 million in the fourth quarter of 2011 and $64.9 million in the first quarter a year ago.  First quarter 2012 costs included $1.6 million for maintenance and $2.2 million in net losses and write-downs.  For the fourth quarter of 2011, foreclosed property costs included $2.4 million in maintenance and $6.9 million in net losses and write-downs.  First quarter 2011 costs included $4.3 million in maintenance and $60.6 million in net write-downs and losses, mostly related to the problem asset disposition plan.

As of March 31, 2012, capital ratios were as follows: Tier 1 Risk-Based of 13.7 percent; Tier 1 Leverage of 8.9 percent; and Total Risk-Based of 15.4 percent.  The Tier 1 Common Risk-Based ratio was 8.3 and the Tangible Equity-to-Assets ratio was 8.1 percent.

“We are on the path to recovery as indicated by three profitable quarters out of the past four,” stated Tallent. “The economy is still weak and work remains to resolve credit problems, though we believe far more of that work is behind us.  Looking forward, we expect continued profitability and improved financial performance from revenue enhancements and expense reductions.”

Conference Call

United will hold a conference call today, Thursday, April 26, 2012, at 11 a.m. ET to discuss the contents of this news release and to share business highlights for the quarter.  To access the call, dial (877) 380-5665 and use the conference number 69716155.  The conference call also will be webcast and can be accessed by selecting ‘Calendar of Events’ within the Investor Relations section of the United’s website at www.ucbi.com.

About United Community Banks, Inc.

Headquartered in Blairsville, United Community Banks, Inc. is the third-largest bank holding company in Georgia. United has assets of $7.2 billion and operates 27 community banks with 106 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina and east Tennessee.  United specializes in providing personalized community banking services to individuals and small to mid-size businesses and also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United’s common stock is listed on the Nasdaq Global Select Market under the symbol UCBI.  Additional information may be found at United’s web site at www.ucbi.com.

Safe Harbor

This news release contains forward-looking statements, as defined by federal securities laws, including statements about United’s financial outlook and business environment.  These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements.  For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United’s filings with the Securities and Exchange Commission including its 2011 Annual Report on Form 10-K under the section entitled “Forward-Looking Statements” and “Risk Factors.” Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.

# # #

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Selected Financial Information

																First
	2012			2011												Quarter
(in thousands, except per share	First			Fourth			Third			Second			First			2012-2011
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			Change
INCOME SUMMARY
Interest revenue	$	70,221		$	71,905		$	74,543		$	76,931		$	75,965
Interest expense		11,357			12,855			15,262			17,985			19,573
Net interest revenue		58,864			59,050			59,281			58,946			56,392			4	%
Provision for loan losses		15,000			14,000			36,000			11,000			190,000
Fee revenue		15,379			12,667			11,498			13,905			11,838			30
Total revenue		59,243			57,717			34,779			61,851			(121,770	)
Operating expenses		46,955			51,080			46,520			48,728			115,271			(59	)
Income (loss) before income taxes		12,288			6,637			(11,741	)		13,123			(237,041	)
Income tax expense (benefit)		760			(3,264	)		(402	)		1,095			295
Net income (loss)		11,528			9,901			(11,339	)		12,028			(237,336	)
Preferred dividends and discount accretion		3,030			3,025			3,019			3,016			2,778
Net income (loss) available to common shareholders	$	8,498		$	6,876		$	(14,358	)	$	9,012		$	(240,114	)
PERFORMANCE MEASURES
Per common share:
Diluted income (loss)	$	.15		$	.12		$	(.25	)	$	.16		$	(13.00	)
Book value		6.68			6.62			6.77			7.11			2.20			204
Tangible book value (2)		6.54			6.47			6.61			6.94			1.69			287
Key performance ratios:
Return on equity (1)(3)		8.78	%		7.40	%		(15.06	) %		42.60	%		(526.54	) %
Return on assets (3)		.66			.56			(.64	)		.66			(13.04	)
Net interest margin (3)		3.53			3.51			3.55			3.41			3.30
Efficiency ratio		63.31			71.23			65.73			66.88			169.08
Equity to assets		8.19			8.28			8.55			8.06			6.15
Tangible equity to assets (2)		8.08			8.16			8.42			7.93			6.01
Tangible common equity to assets (2)		5.33			5.38			5.65			1.37			2.70
Tangible common equity to risk-weighted assets (2)		8.21			8.25			8.52			8.69			.75
ASSET QUALITY *
Non-performing loans	$	129,704		$	127,479		$	144,484		$	71,065		$	83,769
Foreclosed properties		31,887			32,859			44,263			47,584			54,378
Total non-performing assets (NPAs)		161,591			160,338			188,747			118,649			138,147
Allowance for loan losses		113,601			114,468			146,092			127,638			133,121
Net charge-offs		15,867			45,624			17,546			16,483			231,574
Allowance for loan losses to loans		2.75	%		2.79	%		3.55	%		3.07	%		3.17	%
Net charge-offs to average loans (3)		1.55			4.39			1.68			1.58			20.71
NPAs to loans and foreclosed properties		3.88			3.87			4.54			2.82			3.25
NPAs to total assets		2.25			2.30			2.74			1.66			1.79
AVERAGE BALANCES ($ in millions)
Loans	$	4,168		$	4,175		$	4,194		$	4,266		$	4,599			(9	)
Investment securities		2,153			2,141			2,150			2,074			1,625			32
Earning assets		6,700			6,688			6,630			6,924			6,902			(3	)
Total assets		7,045			7,019			7,000			7,363			7,379			(5	)
Deposits		6,028			6,115			6,061			6,372			6,560			(8	)
Shareholders’ equity		577			581			598			594			454			27
Common shares - basic (thousands)		57,764			57,646			57,599			25,427			18,466
Common shares - diluted (thousands)		57,764			57,646			57,599			57,543			18,466
AT PERIOD END ($ in millions)
Loans *	$	4,128		$	4,110		$	4,110		$	4,163		$	4,194			(2	)
Investment securities		2,202			2,120			2,123			2,188			1,884			17
Total assets		7,174			6,983			6,894			7,152			7,709			(7	)
Deposits		6,001			6,098			6,005			6,183			6,598			(9	)
Shareholders’ equity		580			575			583			603			586			(1	)
Common shares outstanding (thousands)		57,603			57,561			57,510			57,469			20,903

(1)  Net loss available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss).  (2)  Excludes effect of acquisition related intangibles and associated amortization.  (3)  Annualized.

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

UNITED COMMUNITY BANKS, INC.

Non-GAAP Performance Measures Reconciliation

Selected Financial Information

	2012			2011
(in thousands, except per share	First			Fourth			Third			Second			First
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter
Interest revenue reconciliation
Interest revenue - taxable equivalent	$	70,221		$	71,905		$	74,543		$	76,931		$	75,965
Taxable equivalent adjustment		(446	)		(423	)		(420	)		(429	)		(435	)
Interest revenue (GAAP)	$	69,775		$	71,482		$	74,123		$	76,502		$	75,530
Net interest revenue reconciliation
Net interest revenue - taxable equivalent	$	58,864		$	59,050		$	59,281		$	58,946		$	56,392
Taxable equivalent adjustment		(446	)		(423	)		(420	)		(429	)		(435	)
Net interest revenue (GAAP)	$	58,418		$	58,627		$	58,861		$	58,517		$	55,957
Total revenue reconciliation
Total operating revenue	$	59,243		$	57,717		$	34,779		$	61,851		$	(121,770	)
Taxable equivalent adjustment		(446	)		(423	)		(420	)		(429	)		(435	)
Total revenue (GAAP)	$	58,797		$	57,294		$	34,359		$	61,422		$	(122,205	)
Income (loss) before taxes reconciliation
Income (loss) before taxes	$	12,288		$	6,637		$	(11,741	)	$	13,123		$	(237,041	)
Taxable equivalent adjustment		(446	)		(423	)		(420	)		(429	)		(435	)
Income (loss) before taxes (GAAP)	$	11,842		$	6,214		$	(12,161	)	$	12,694		$	(237,476	)
Income tax (benefit) expense reconciliation
Income tax (benefit) expense	$	760		$	(3,264	)	$	(402	)	$	1,095		$	295
Taxable equivalent adjustment		(446	)		(423	)		(420	)		(429	)		(435	)
Income tax (benefit) expense (GAAP)	$	314		$	(3,687	)	$	(822	)	$	666		$	(140	)
Book value per common share reconciliation
Tangible book value per common share	$	6.54		$	6.47		$	6.61		$	6.94		$	1.69
Effect of goodwill and other intangibles		.14			.15			.16			.17			.51
Book value per common share (GAAP)	$	6.68		$	6.62		$	6.77		$	7.11		$	2.20
Average equity to assets reconciliation
Tangible common equity to assets		5.33	%		5.38	%		5.65	%		1.37	%		2.70	%
Effect of preferred equity		2.75			2.78			2.77			6.56			3.31
Tangible equity to assets		8.08			8.16			8.42			7.93			6.01
Effect of goodwill and other intangibles		.11			.12			.13			.13			.14
Equity to assets (GAAP)		8.19	%		8.28	%		8.55	%		8.06	%		6.15	%
Tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets		8.21	%		8.25	%		8.52	%		8.69	%		.75	%
Effect of other comprehensive income		.10			(.03	)		(.29	)		(.42	)		(.32	)
Effect of trust preferred		1.15			1.18			1.19			1.15			1.13
Effect of preferred equity		4.23			4.29			4.33			4.20			5.87
Tier I capital ratio (Regulatory)		13.69	%		13.69	%		13.75	%		13.62	%		7.43	%

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Period-End (1)

	2012		2011								Linked			Year over
	First		Fourth		Third		Second		First		Quarter			Year
(in millions)	Quarter		Quarter		Quarter		Quarter		Quarter		Change			Change
LOANS BY CATEGORY
Commercial (sec.by RE)	$	1,843	$	1,822	$	1,771	$	1,742	$	1,692	$	21		$	151
Commercial & industrial		440		428		429		428		431		12			9
Commercial construction		167		164		169		195		213		3			(46	)
Total commercial		2,450		2,414		2,369		2,365		2,336		36			114
Residential mortgage		1,131		1,135		1,150		1,177		1,187		(4	)		(56	)
Residential construction		436		448		474		502		550		(12	)		(114	)
Consumer installment		111		113		117		119		121		(2	)		(10	)
Total loans	$	4,128	$	4,110	$	4,110	$	4,163	$	4,194		18			(66	)
LOANS BY MARKET
North Georgia	$	1,408	$	1,426	$	1,478	$	1,500	$	1,531		(18	)		(123	)
Atlanta MSA		1,239		1,220		1,192		1,188		1,179		19			60
North Carolina		588		597		607		626		640		(9	)		(52	)
Coastal Georgia		366		346		316		325		312		20			54
Gainesville MSA		262		265		272		275		282		(3	)		(20	)
East Tennessee		265		256		245		249		250		9			15
Total loans	$	4,128	$	4,110	$	4,110	$	4,163	$	4,194		18			(66	)
RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development	$	86	$	88	$	97	$	105	$	116		(2	)		(30	)
Land loans		57		61		60		62		69		(4	)		(12	)
Lot loans		203		207		216		218		228		(4	)		(25	)
Total		346		356		373		385		413		(10	)		(67	)
House loans
Spec		57		59		64		74		88		(2	)		(31	)
Sold		32		33		37		43		49		(1	)		(17	)
Total		89		92		101		117		137		(3	)		(48	)
Total residential construction	$	435	$	448	$	474	$	502	$	550		(13	)		(115	)
RESIDENTIAL CONSTRUCTION - ATLANTA MSA
Dirt loans
Acquisition & development	$	17	$	17	$	19	$	20	$	22		-			(5	)
Land loans		13		14		15		16		19		(1	)		(6	)
Lot loans		22		22		22		22		24		-			(2	)
Total		52		53		56		58		65		(1	)		(13	)
House loans
Spec		27		27		28		30		34		-			(7	)
Sold		7		6		8		9		11		1			(4	)
Total		34		33		36		39		45		1			(11	)
Total residential construction	$	86	$	86	$	92	$	97	$	110		-			(24	)

(1)  Excludes total loans of $47.2 million, $54.5 million, $57.8 million, $70.8 million and $63.3 million as of March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively, that are covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality (1)

	First Quarter 2012									Fourth Quarter 2011									Third Quarter 2011
(in thousands)	Non-performing Loans			Foreclosed Properties			Total NPAs			Non-performing Loans			Foreclosed Properties			Total NPAs			Non-performing Loans			Foreclosed Properties			Total NPAs
NPAs BY CATEGORY
Commercial (sec.by RE)	$	26,081		$	10,808		$	36,889		$	27,322		$	9,745		$	37,067		$	21,998		$	8,880		$	30,878
Commercial & industrial		36,314			-			36,314			34,613			-			34,613			53,009			-			53,009
Commercial construction		23,319			3,266			26,585			16,655			3,336			19,991			11,370			5,862			17,232
Total commercial		85,714			14,074			99,788			78,590			13,081			91,671			86,377			14,742			101,119
Residential mortgage		18,741			5,882			24,623			22,358			6,927			29,285			22,671			7,960			30,631
Residential construction		24,341			11,931			36,272			25,523			12,851			38,374			34,472			21,561			56,033
Consumer installment		908			-			908			1,008			-			1,008			964			-			964
Total NPAs	$	129,704		$	31,887		$	161,591		$	127,479		$	32,859		$	160,338		$	144,484		$	44,263		$	188,747
Balance as a % of
Unpaid Principal		70.6	%		36.1	%		59.4	%		71.3	%		35.9	%		59.3	%		77.8	%		33.4	%		59.3	%
NPAs BY MARKET
North Georgia	$	81,117		$	14,559		$	95,676		$	88,600		$	15,136		$	103,736		$	105,078		$	17,467		$	122,545
Atlanta MSA		22,321			7,647			29,968			14,480			6,169			20,649			13,350			12,971			26,321
North Carolina		15,765			4,650			20,415			15,100			5,365			20,465			13,243			7,941			21,184
Coastal Georgia		5,622			1,268			6,890			5,248			1,620			6,868			5,600			2,354			7,954
Gainesville MSA		2,210			3,387			5,597			2,069			3,760			5,829			5,311			2,495			7,806
East Tennessee		2,669			376			3,045			1,982			809			2,791			1,902			1,035			2,937
Total NPAs	$	129,704		$	31,887		$	161,591		$	127,479		$	32,859		$	160,338		$	144,484		$	44,263		$	188,747
NPA ACTIVITY
Beginning Balance	$	127,479		$	32,859		$	160,338		$	144,484		$	44,263		$	188,747		$	71,065		$	47,584		$	118,649
Loans placed on non-accrual		32,437			-			32,437			45,675			-			45,675			103,365			-			103,365
Payments received		(5,945	)		-			(5,945	)		(1,884	)		-			(1,884	)		(3,995	)		-			(3,995	)
Loan charge-offs		(14,733	)		-			(14,733	)		(44,757	)		-			(44,757	)		(15,335	)		-			(15,335	)
Foreclosures		(9,534	)		9,534			-			(16,039	)		16,039			-			(10,616	)		10,616			-
Capitalized costs		-			329			329			-			141			141			-			818			818
Note / property sales		-			(8,631	)		(8,631	)		-			(20,651	)		(20,651	)		-			(13,787	)		(13,787	)
Write downs		-			(2,111	)		(2,111	)		-			(3,893	)		(3,893	)		-			(1,772	)		(1,772	)
Net gains (losses) on sales		-			(93	)		(93	)		-			(3,040	)		(3,040	)		-			804			804
Ending Balance	$	129,704		$	31,887		$	161,591		$	127,479		$	32,859		$	160,338		$	144,484		$	44,263		$	188,747

	First Quarter 2012					Fourth Quarter 2011					Third Quarter 2011
			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)	$	3,697		.81	%	$	4,962		1.09	%	$	2,192		.50	%
Commercial & industrial		669		.62			18,940		17.47			420		.39
Commercial construction		334		.81			3,318		7.88			1,625		3.54
Total commercial		4,700		.78			27,220		4.51			4,237		.71
Residential mortgage		5,375		1.91			5,887		2.04			6,110		2.09
Residential construction		5,314		4.84			12,090		10.36			6,381		5.19
Consumer installment		478		1.72			427		1.47			818		2.75
Total	$	15,867		1.55		$	45,624		4.39		$	17,546		1.68
NET CHARGE-OFFS BY MARKET
North Georgia	$	9,022		2.56	%	$	34,970		9.46	%	$	8,124		2.16	%
Atlanta MSA		2,729		.89			4,195		1.37			2,813		.94
North Carolina		1,679		1.14			3,180		2.10			3,608		2.31
Coastal Georgia		1,329		1.53			335		.41			709		.88
Gainesville MSA		883		1.35			2,572		3.84			1,804		2.64
East Tennessee		225		.34			372		.59			488		.78
Total	$	15,867		1.55		$	45,624		4.39		$	17,546		1.68

(1)	Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2)	Annualized.

UNITED COMMUNITY BANKS, INC.

Consolidated Statement of Operations (Unaudited)

	Three Months Ended
	March 31,
(in thousands, except per share data)	2012			2011
Interest revenue:
Loans, including fees	$	55,759		$	61,107
Investment securities, including tax exempt of $250 and $259		13,004			13,604
Federal funds sold, reverse repurchase agreements, commercial paper and deposits in banks		1,012			819
Total interest revenue		69,775			75,530
Interest expense:
Deposits:
NOW		637			1,324
Money market		641			2,028
Savings		37			77
Time		6,159			11,732
Total deposit interest expense		7,474			15,161
Federal funds purchased, repurchase agreements and other short-term borrowings		1,045			1,042
Federal Home Loan Bank advances		466			590
Long-term debt		2,372			2,780
Total interest expense		11,357			19,573
Net interest revenue		58,418			55,957
Provision for loan losses		15,000			190,000
Net interest revenue after provision for loan losses		43,418			(134,043	)
Fee revenue:
Service charges and fees		7,783			6,720
Mortgage loan and other related fees		2,099			1,494
Brokerage fees		813			677
Securities gains, net		557			55
Loss from prepayment of debt		(482	)		-
Other		4,609			2,892
Total fee revenue		15,379			11,838
Total revenue		58,797			(122,205	)
Operating expenses:
Salaries and employee benefits		25,225			24,924
Communications and equipment		3,155			3,344
Occupancy		3,771			4,074
Advertising and public relations		846			978
Postage, printing and supplies		979			1,118
Professional fees		1,975			3,330
Foreclosed property		3,825			64,899
FDIC assessments and other regulatory charges		2,510			5,413
Amortization of intangibles		732			762
Other		3,937			6,429
Total operating expenses		46,955			115,271
Net income (loss) before income taxes		11,842			(237,476	)
Income tax expense (benefit)		314			(140	)
Net income (loss)		11,528			(237,336	)
Preferred stock dividends and discount accretion		3,030			2,778
Net income (loss) available to common shareholders	$	8,498		$	(240,114	)
Earnings (loss) per common share - Basic / Diluted	$	.15		$	(13.00	)
Weighted average common shares outstanding - Basic / Diluted		57,764			18,466

UNITED COMMUNITY BANKS, INC.

Consolidated Balance Sheet

	March 31,			December 31,			March 31,
(in thousands, except share and per share data)	2012			2011			2011
	(unaudited)			(unaudited)			(unaudited)
ASSETS
Cash and due from banks	$	53,147		$	53,807		$	153,891
Interest-bearing deposits in banks		139,439			139,609			465,656
Federal funds sold, reverse repurchase agreements, commercial paper and short-term investments		235,000			185,000			470,087
Cash and cash equivalents		427,586			378,416			1,089,634
Securities available for sale		1,898,815			1,790,047			1,638,494
Securities held to maturity (fair value $318,490, $343,531 and $248,361)		303,636			330,203			245,430
Loans held for sale		-			-			80,629
Mortgage loans held for sale		24,809			23,881			25,364
Loans, net of unearned income		4,127,566			4,109,614			4,194,372
Less allowance for loan losses		113,601			114,468			133,121
Loans, net		4,013,965			3,995,146			4,061,251
Assets covered by loss sharing agreements with the FDIC		72,854			78,145			125,789
Premises and equipment, net		174,419			175,088			179,143
Bank owned life insurance		80,956			80,599			79,777
Accrued interest receivable		20,292			20,693			21,687
Goodwill and other intangible assets		7,695			8,428			10,684
Foreclosed property		31,887			32,859			54,378
Unsettled securities sales		43,527			-			-
Other assets		73,252			69,915			97,228
Total assets	$	7,173,693		$	6,983,420		$	7,709,488
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand	$	1,101,757		$	992,109		$	864,708
NOW		1,389,016			1,509,896			1,320,136
Money market		1,123,734			1,038,778			967,938
Savings		214,150			199,007			193,591
Time:
Less than $100,000		1,207,479			1,332,394			1,576,505
Greater than $100,000		796,882			847,152			990,289
Brokered		167,521			178,647			684,581
Total deposits		6,000,539			6,097,983			6,597,748
Federal funds purchased, repurchase agreements, and other short-term borrowings		101,925			102,577			102,107
Federal Home Loan Bank advances		215,125			40,625			55,125
Long-term debt		120,245			120,225			150,166
Unsettled securities purchases		119,565			10,325			177,532
Accrued expenses and other liabilities		36,755			36,199			40,766
Total liabilities		6,594,154			6,407,934			7,123,444
Shareholders’ equity:
Preferred stock, $1 par value; 10,000,000 shares authorized;
Series A; $10 stated value; 21,700 shares issued and outstanding		217			217			217
Series B; $1,000 stated value; 180,000 shares issued and outstanding		177,451			177,092			176,049
Series D; $1,000 stated value; 16,613 shares issued and outstanding		16,613			16,613			16,613
Series F; $1,000 stated value; 195,872 shares issued and outstanding		-			-			195,872
Series G; $1,000 stated value; 151,185 shares issued and outstanding		-			-			151,185
Common stock, $1 par value; 100,000,000 shares authorized;
41,688,647, 41,647,100 and 20,903,111 shares issued and outstanding		41,689			41,647			20,903
Common stock, non-voting, $1 par value; 30,000,000 shares authorized;
15,914,209 shares issued and outstanding		15,914			15,914			-
Common stock issuable; 90,126, 93,681 and 79,428 shares		2,948			3,233			3,681
Capital surplus		1,056,135			1,054,940			738,963
Accumulated deficit		(722,363	)		(730,861	)		(732,390	)
Accumulated other comprehensive (loss) income		(9,065	)		(3,309	)		14,951
Total shareholders’ equity		579,539			575,486			586,044
Total liabilities and shareholders’ equity	$	7,173,693		$	6,983,420		$	7,709,488

UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended March 31,

	2012								2011
	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)	$	4,168,440		$	55,842		5.39	%	$	4,598,860		$	61,070		5.39	%
Taxable securities (3)		2,127,794			12,754		2.40			1,599,481			13,345		3.34
Tax-exempt securities (1)(3)		25,438			410		6.45			25,827			424		6.57
Federal funds sold and other interest-earning assets		377,988			1,215		1.29			677,453			1,126		.66
Total interest-earning assets		6,699,660			70,221		4.21			6,901,621			75,965		4.45
Non-interest-earning assets:
Allowance for loan losses		(117,803	)							(169,113	)
Cash and due from banks		54,664								134,341
Premises and equipment		174,849								179,353
Other assets (3)		233,676								332,827
Total assets	$	7,045,046							$	7,379,029
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,458,112			637		.18		$	1,373,142			1,324		.39
Money market		1,069,658			641		.24			928,542			2,028		.89
Savings		205,402			37		.07			187,423			77		.17
Time less than $100,000		1,271,351			3,026		.96			1,540,342			5,451		1.44
Time greater than $100,000		821,164			2,415		1.18			990,881			4,151		1.70
Brokered		161,335			718		1.79			698,288			2,130		1.24
Total interest-bearing deposits		4,987,022			7,474		.60			5,718,618			15,161		1.08
Federal funds purchased and other borrowings		102,258			1,045		4.11			101,097			1,042		4.18
Federal Home Loan Bank advances		138,372			466		1.35			55,125			590		4.34
Long-term debt		120,237			2,372		7.93			150,157			2,780		7.51
Total borrowed funds		360,867			3,883		4.33			306,379			4,412		5.84
Total interest-bearing liabilities		5,347,889			11,357		.85			6,024,997			19,573		1.32
Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,040,587								841,351
Other liabilities		79,612								58,634
Total liabilities		6,468,088								6,924,982
Shareholders’ equity		576,958								454,047
Total liabilities and shareholders’ equity	$	7,045,046							$	7,379,029
Net interest revenue				$	58,864							$	56,392
Net interest-rate spread							3.36	%							3.13	%
Net interest margin (4)							3.53	%							3.30	%

(1)	Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2)	Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
(3)	Securities available for sale are shown at amortized cost. Pretax unrealized gains of $23.6 million in 2012 and $27.2 million in 2011 are included in other assets for purposes of this presentation.
(4)	Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.