8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 24, 2009

United Community Banks, Inc.
(Exact name of registrant as specified in its charter)

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

63 Highway 515, P.O. Box 398 Blairsville, Georgia	30512
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (706) 781-2265

Not applicable

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

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

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

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

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

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02	Results of Operation and Financial Condition
	On July 24, 2009, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the quarter ended June 30, 2009 (the “News Release”). The News Release, including financial schedules, is attached as Exhibit 99.1 to this report. In connection with issuing the News Release, on July 24, 2009 at 11:00 a.m. EST, the Registrant intends to hold a conference call/webcast to discuss the News Release. In addition to the News Release, during the conference call the Registrant intends to discuss certain financial information contained in the Second Quarter 2009 Investor Presentation (the “Investor Presentation”) which will be posted to the Registrant’s website. The Investor Presentation is attached as Exhibit 99.2 to this report. The presentation of the Registrant’s financial results included operating performance measures and core earnings measures, which are measures of performance determined by methods other than in accordance with generally accepted accounting principles, or GAAP. Management included non-GAAP operating performance and core earnings measures because it believes it is useful for evaluating the Registrant’s operations and performance over periods of time, and uses operating performance and core earnings measures in managing and evaluating the Registrant’s business and intends to use it in discussions about the Registrant’s operations and performance. Operating performance measures for the second quarter of 2009 exclude the effects of a $11.4 million non-recurring gain from the acquisition of Southern Community Bank that resulted from a bargain purchase. Operating performance measures for the first six months of 2009 also exclude the effects of a $70 million non-cash goodwill impairment charge and $2.9 million in non-recurring severance charges related to a reduction in workforce because management feels that the two expense items are non-recurring in nature and do not reflect overall trends in the Registrant’s earnings. Additionally, core earnings measures exclude credit related costs such as the provision for loan losses and foreclosed property expense, securities gains and losses, income taxes and other items of a non-recurring nature. Core earnings are useful in evaluating the underlying earnings performance trends of the Registrant. Management believes these non-GAAP performance measures may provide users of the Registrant’s financial information with a meaningful measure for assessing the Registrant’s financial results and comparing those financial results to prior periods. Operating performance and core earnings measures should be viewed in addition to, and not as an alternative or substitute for, the Registrant’s performance measures determined in accordance with GAAP, and is not necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Item 9.01	Financial Statements and Exhibits
	(a) Financial statements: None (b) Pro forma financial information: None (c) Exhibits:
	99.1 Press Release, dated July 24, 2009       99.2 Investor Presentation, Second Quarter 2009

SIGNATURES

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

	/s/ Rex S. Schuette
July 24, 2009	Rex S. Schuette Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release, dated July 24, 2009
99.2	Investor Presentation, Second Quarter 2009

EX-99.1

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.

14

EX-99.2

Exhibit 99.2

Investor Presentation Second Quarter 2009 David P. Shearrow Executive Vice President & CRO Rex S. Schuette Executive Vice President & CFO rex_schuette@ucbi.com (706) 781-2266 Jimmy C. Tallent President & CEO United Community Banks, Inc.

This presentation contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of factors that may cause such forward-looking statements to differ materially from actual results, please refer to United Community Banks, Inc. Annual Report filed on Form 10-K with the Securities and Exchange Commission. This presentation also contains non-GAAP financial measures, as defined by the Federal Securities Laws. For a presentation of the most directly comparable financial measures calculated and presented in accordance with GAAP and a reconciliation of the differences between those measures and the non-GAAP financial measures, please refer to "Selected Financial Data" in the United Community Banks, Inc. Annual Report filed on Form 10-K with the Securities Exchange Commission, which may be found on the company's Web site, www.ucbi.com. Cautionary statement 2

United at a glance Assets $8.4 Billion Deposits $6.8 Billion Banks 27 Offices 110 3

Credit Core earnings improvement FDIC acquisition Challenging environment 4

North Georgia 36% Loan portfolio (total - $5.5 billion as of June 30, 2009) Atlanta MSA 29% North Carolina 14% Coastal Georgia 8% Gainesville MSA 8% Tennessee 5% Geographic Diversity Loan Composition 5

Residential mortgage (total $1.5 billion) Mortgage Home Equity East 74 26 North Georgia 39% North Carolina 26% Atlanta MSA 15% Coastal Georgia 8% Gainesville MSA 6% Tennessee 6% Geographic Diversity Loan Composition 6

Commercial Construction Owner-Occupied Income Producing C & I East 15 40 29 16 Commercial loans (total $2.6 billion) North Georgia 30% North Carolina 9% Atlanta MSA 37% Coastal Georgia 10% Gainesville MSA 9% Tennessee 5% Geographic Diversity Loan Composition 7

Commercial construction (by loan type) (in millions) June 30, 2009 % of Loan Type Amount Total Raw Land - Vacant (Unimproved) $ 167 44 Land Development - Vacant (Improved) 132 35 Office Buildings 32 8 Retail Buildings 21 6 Churches 6 2 Miscellaneous 20 5 Total Commercial Construction $ 379 8

Commercial real estate (by loan type) (in millions) June 30, 2009 % of Loan Type Amount Total Office Buildings $ 405 23 Small Businesses 399 22 Single-Unit Retail/Strip Centers 234 13 Small Warehouses/Storage 166 9 Hotels/Motels 119 7 Churches 115 6 Franchise / Restaurants 84 5 Multi-Residential Properties 79 4 Convenience Stores 69 4 Farmland 53 3 Multi-Unit Retail 41 2 Miscellaneous 33 2 Total Commercial Real Estate 1,797 9

Residential construction (total $1.3 billion) North Georgia 42% North Carolina 12% Atlanta MSA 32% Coastal Georgia 6% Gainesville MSA 5% Tennessee 3% Construction Loans Land Loans East 0.28 0.72 Geographic Diversity Loan Composition 10

Atlanta MSA (residential construction) (in millions) Variance 2Q 09 4Q 08 2Q 08 4Q 08 2Q 08 Land Loans Developing Land $ 124 $ 167 $ 232 $ (43 ) $ (108 ) Raw Land 63 56 50 7 13 Lot Loans 81 86 117 (5 ) (36 ) Total 268 309 399 (41 ) (131 ) Construction Loans Spec 127 189 271 (62 ) (144 ) Sold 29 40 58 (11 ) (29 ) Total 156 229 329 (73 ) (173 ) Total Res Construction $ 424 $ 538 $ 728 $ (114 ) $ (304 ) 11

Credit quality (in millions) 2Q 09 1Q 09 4Q 08 3Q 08 2Q 08 Net Charge-offs $ 58.3 $ 43.3 $ 74.0 $ 55.7 $ 14.3 as % of Average Loans 4.18 % 3.09 % 5.09 % 3.77 % .97 % Allowance for LL $ 146.0 $ 144.0 $ 122.3 $ 111.3 $ 91.0 as % of Total Loans 2.64 % 2.56 % 2.14 % 1.91 % 1.53 % as % of NPLs 51 %* 56 %* 64 %* 80 %* 74 % Past Due Loans (30 - 90 Days) 1.61 % 1.67 % 2.33 % 1.39 % 1.10 % Non-Performing Loans $ 287.8 $ 259.2 $ 190.7 $ 139.3 $ 123.8 OREO 104.8 75.4 59.8 38.4 28.4 Total NPAs $ 392.6 $ 334.6 $ 250.5 $ 177.7 $ 152.2 as % of Total Assets 4.67 % 4.11 % 2.94 % 2.20 % 1.84 % as % of Loans & OREO 6.99 % 5.86 % 4.35 % 3.03 % 2.55 % *Excluding loans with no allocated reserve, the coverage ratio was 82% at 2Q09; 117% at 1Q 09; 125% at 4Q 08; and 93% at 3Q 08. 12

Net charge-offs by category (in thousands) 2Q 09 1Q 09 to Avg to Avg NCOs Loans NCOs Loans CATEGORY Commercial (sec. by RE) $ 5,986 1.34 % $ 826 .20 % Commercial Construction 756 .81 54 .05 Commercial & Industrial 3,107 3.20 873 .89 Total Commercial 9,849 1.56 1,753 .28 Residential Construction 44,240 13.04 37,762 10.52 Residential Mortgage 3,526 .96 2,984 .80 Consumer / Installment 697 1.82 782 1.99 Total Net Charge-offs $ 58,312 4.18 $ 43,281 3.09 13

Net charge-offs by market (in thousands) 2Q 09 1Q 09 to Avg to Avg NCOs Loans NCOs Loans MARKETS Atlanta MSA $ 37,472 8.87 % $ 26,228 6.16 % Gainesville MSA 4,125 4.36 1,105 1.18 North Georgia 12,571 2.52 8,208 1.64 Western North Carolina 1,016 .51 3,669 1.83 Coastal Georgia 969 .85 3,229 2.84 East Tennessee 2,159 3.20 842 1.28 Total Net Charge-offs $ 58,312 4.18 $ 43,281 3.09 14

NPAs by category (in thousands) 2Q 09 1Q 09 Total Total NPLs OREO NPAs NPLs OREO NPAs CATEGORY Commercial (Sec. by RE) $ 37,755 $ 5,395 $ 43,150 $ 18,188 $ 3,811 $ 21,999 Commercial Construction 15,717 5,847 21,564 6,449 2,948 9,397 Commercial & Industrial 11,378 -- 11,378 12,066 -- 12,066 Total Commercial 64,850 11,242 76,092 36,703 6,759 43,462 Residential Construction 176,400 81,647 258,047 187,656 58,327 245,983 Residential Mortgage 44,256 11,865 56,121 33,148 10,297 43,445 Consumer / Installment 2,342 -- 2,342 1,648 -- 1,648 Total NPAs $ 287,848 $ 104,754 $ 392,602 $ 259,155 $ 75,383 $ 334,538 15

NPAs by market (in thousands) 2Q 09 1Q 09 Total Total NPLs OREO NPAs NPLs OREO NPAs MARKETS Atlanta MSA $ 148,155 $ 50,450 $ 198,605 $ 131,020 $ 48,574 $ 179,594 Gainesville MSA 9,745 3,511 13,256 17,448 694 18,142 North Georgia 72,174 37,454 109,628 66,875 20,811 87,686 Western North Carolina 21,814 7,245 29,059 21,240 3,067 24,307 Coastal Georgia 30,311 3,904 34,215 15,699 1,286 16,985 East Tennessee 5,649 2,190 7,839 6,873 951 7,824 Total NPAs $ 287,848 $ 104,754 $ 392,602 $ 259,155 $ 75,383 $ 334,538 16

Core earnings summary - second quarter 2009 (in millions) Variance 2Q 09 1Q 09 4Q 08 2Q 08 1Q09 4Q 08 Net Interest Revenue $ 60.9 $ 57.4 $ 51.9 $ 61.8 $ 3.5 $ 9.0 Fee Revenue* 13.7 12.6 12.6 14.7 1.1 1.1 Gross Revenue 74.6 70.0 64.5 76.5 4.6 10.1 Operating Expense** 47.8 48.3 47.2 46.9 (.5 ) (.6) Core Earnings (Pre-Tax/Credit) $ 26.8 $ 21.7 $ 17.3 $ 29.6 $ 5.1 $ 9.5 Net Interest Margin 3.28 % 3.08 % 2.70 % 3.32 % .20 % .58 % *Excludes BOLI expense recovery, special FDIC assessment, and foreclosed property costs **Excludes FHLB prepayment charge and securities (losses) gains, net 17

Net operating loss - second quarter 2009 (in millions) Variance 2Q 09 1Q 09 4Q 08 2Q 08 1Q 09 4Q 08 Core Earnings $ 26.8 $ 21.7 $ 17.3 $ 29.6 $ 5.1 $ 9.5 Provision for Loan Loss (60.0 ) (65.0 ) (85.0 ) (15.5 ) 5.0 25.0 Foreclosed Property Expense (5.7 ) (4.3 ) (5.2 ) (2.9 ) (1.4 ) (.5 ) FDIC Special Assessment (3.8 ) - - - (3.8 ) (3.8 ) BOLI Expense Recovery 2.0 - - - 2.0 2.0 FHLB Prepayment Charge and Secur (Losses) Gains, net (.7 ) .3 (1.9 ) .4 (1.0 ) 1.2 Income Tax Benefit (Exp) 18.3 15.3 28.1 (4.5 ) 3.0 (9.8 ) Net Oper (Loss) Income $ (23.1 ) $ (32.0 ) $ (46.7 ) $ 7.1 $ 8.9 $ 23.6 Net Operating EPS $ (.53 ) ($ .71 ) $ (.99) $ .15 $ .18 $ .46 18

Net loss - second quarter 2009 (in millions) 2Q 09 1Q 09 4Q 08 2Q 08 Net Operating (Loss) Income $ (23.1 ) $ (32.0 ) $ (46.7 ) $ 7.1 Gain on Acquisition ($11.4, pre-tax) 7.1 - - - Goodwill Impairment Charge - (70.0 ) - - Severance Costs ($2.9, pre-tax) - (1.8 ) - - Net (Loss) Income $ (16.0 ) $ (103.8 ) $ (46.7 ) $ 7.1 Earnings (Loss) Per Share $ (.38 ) $ (2.20 ) $ (.99) $ .15 19

Net interest margin 2q08 3q08 4q08 1q09 2q09 Net Interest Margin 0.0332 0.0317 0.027 0.0308 0.0328 Second quarter Margin Improvement 20 Basis Points Improved Loan & Deposit Pricing Replaced Higher Priced CDs and Broker Deposits Net Interest Margin 20

Capital ratios (as percentages) Well- Capitalized 2Q 09 4Q 08 2Q 08 Regulatory Capital Tier 1 Risk-Based 6 % 10.6% 11.2% 9.2% Total Risk-Based 10 13.3 13.9 11.4 Leverage 5 7.8 8.3 7.0 Tangible Equity to Risk-Weighted Assets 10.5 11.2 8.5 Tangible Common Equity to Risk-Weighted Assets 7.5 8.3 8.5 Tangible Equity to Assets 8.0 6.6 6.8 Tangible Common Equity to Assets 5.8 6.2 6.8 21

Closing comments 22 Southern Community Bank Credit Core earnings Capital

APPENDIX 23

Joined UCBI Years in Banking Jimmy Tallent President and CEO 1984 36 Guy Freeman Chief Operating Officer 1994 49 Rex Schuette Chief Financial Officer 2001 32 David Shearrow Chief Risk Officer 2007 28 Glenn White President, Atlanta Region 2007 35 Craig Metz Marketing 2002 17 Bill Gilbert Retail Banking 2000 33 Experienced proven leadership 24

Footprint contains stable and growing markets Business model thrives on relationship-driven customer service backed by "big bank" resources Core franchise supports customer retention and strong presence in our markets Compelling stock price Reasons to invest in United 25

Provides superior service and operating autonomy Community bank service, large bank resources Strategic footprint with substantial opportunities Contains many of the fastest growing markets in the U.S. Conservative growth strategy Mostly organic supported by de novos and selective acquisitions Business model 26

Twenty-seven community banks Local CEOs with deep roots in their communities Resources of $8.4 billion bank Service is point of differentiation Golden rule of banking "The Bank That SERVICE Built" Ongoing customer surveys +90% satisfaction rate Operating model (competitive difference) 27

Population Growth (%) Population Growth (%) Markets1 Population (in thousands) Actual 2000 - 2008 Projected 2008 - 2013 North Georgia 424 27 14 Atlanta MSA 3,603 42 22 Gainesville MSA 182 31 16 Coastal Georgia 365 8 4 Western North Carolina 424 10 5 East Tennessee 594 11 7 Total Markets Georgia 9,863 20 12 North Carolina 9,231 15 9 Tennessee 6,244 9 6 United States 309,299 10 6 1 Population data is for 2008 and includes those markets where United takes deposits. Source: SNL Robust demographics (fast growing markets) 28

1 FDIC deposit market share and rank as of 6/08 for markets where United takes deposits. Source: SNL and FDIC Markets1 Market Deposits (in billions) United Deposits (in billions) Banks Offices Deposit Share1 (%) Rank1 North Georgia $ 9.1 $ 2.6 11 24 29 1 Atlanta MSA 59.8 2.1 10 40 3 8 Gainesville MSA 2.6 .3 1 7 12 4 Coastal Georgia 7.0 .4 2 9 6 6 Western North Carolina 7.1 1.0 1 20 14 3 East Tennessee 13.1 .4 2 10 3 7 Total Markets $98.7 $ 6.8 27 110 Market share opportunities (excellent growth prospects) 29

Best demographics in the nation Population data as of June 30, 2008 Population data as of June 30, 2008 1Q09 Assets 2008-2013 Rank Company (in billions) Ticker State % Population Growth 1 Western Alliance Bancorporation $ 5.3 WAL NV 16.84 2 United Community Banks, Inc. 8.1 UCBI GA 13.59 3 Cullen/Frost Bankers, Inc. 15.3 CFR TX 11.88 4 International Bancshares Corporation 12.1 IBOC TX 11.22 5 Prosperity Bancshares, Inc. 8.8 PRSP TX 10.61 6 Colonial BancGroup, Inc. 26.4 CNB AL 10.30 7 South Financial Group, Inc. 13.3 TSFG SC 9.53 8 First Citizens BancShares, Inc. 17.2 FCNCA NC 9.29 9 CVB Financial Corp. 6.4 CVBF CA 9.04 10 Glacier Bancorp, Inc. 5.6 GBCI MT 8.73 11 Capitol Bancorp Ltd. 5.8 CBC MI 8.45 12 Synovus Financial Corp. 34.5 SNV GA 8.15 13 Umpqua Holdings Corporation 8.8 UMPQ OR 8.14 14 First Midwest Bancorp, Inc. 8.3 FMBI IL 7.84 15 Hancock Holding Company 7.1 HBHC MS 7.06 Source: SNL - Includes publicly traded companies with assets between $5 - 50 billion as of 9/30/08. Population growth weighted by county as of 6/30/08. 30

Small business market growth 2000 2006 Small Business Growth Population Growth 2000-2008 North Georgia 6,453 7,693 19% 27% Atlanta MSA 70,893 126,200 78% 42% Gainesville MSA 3,158 3,824 21% 31% Coastal Georgia 9,441 10,210 8% 8% Western North Carolina 10,274 11,544 12% 10% East Tennessee 16,273 17,839 10% 11% 1 Population data is for 2008, SNL; Business demographics, U.S. Census Statistics of U.S. Businesses, 2000 & 2006; County Business Patterns 2000-2006 The Atlanta MSA is seeing small business growth at nearly double its already significantly increasing population growth. Markets1 (# of business with 1 - 49 employees) 31

(in millions) 2Q 09 1Q 09 4Q 08 3Q 08 2Q 08 Year over Year Change LOANS BY CATEGORY % Commercial (sec. by RE) $1,797 $1,779 $1,627 $1,604 $1,584 13 Commercial construction 379 377 500 509 522 (27) Commercial & Industrial 399 387 410 425 417 (4) Total commercial 2,575 2,543 2,537 2,538 2,523 2 Residential construction 1,315 1,430 1,479 1,596 1,745 (25) Residential mortgage 1,470 1,504 1,526 1,528 1,494 (2) Consumer/installment 153 156 163 168 171 (11) TOTAL LOANS $5,513 $5,633 $5,705 $5,830 $5,933 (7) Business mix - loans (at quarter-end) 32

(in millions) 2008 2007 2006 2005 2004 LOANS BY CATEGORY Commercial (sec. by RE) $1,627 $1,476 $1,230 $1,055 $ 961 Commercial construction 500 527 470 359 250 Commercial & Industrial 410 418 296 237 212 Total commercial 2,537 2,421 1,996 1,651 1,428 Residential construction 1,479 1,829 1,864 1,380 1,055 Residential mortgage 1,526 1,502 1,338 1,206 1,102 Consumer/installment 163 177 179 161 150 TOTAL LOANS $5,705 $5,929 $5,377 $4,398 $3,735 Business mix - loans (at year-end) 33

(in millions) 2Q 09 1Q 09 4Q 08 3Q 08 2Q 08 Land Loans Developing Land 412 $ 445 $ 484 $ 516 $ 566 Raw Land 159 155 153 142 138 Lot Loans 371 390 358 385 405 Total 942 990 995 1,043 1,109 Construction Loans Spec 267 317 347 393 447 Sold 106 123 137 160 189 Total 373 440 484 553 636 Total Res Construction 1,315 $1,430 $1,479 $1,596 $1,745 Residential construction - total company 34

(in millions) 2Q 09 1Q 09 4Q 08 3Q 08 2Q 08 Land Loans Developing Land 124 $ 148 $ 167 $ 185 $ 232 Raw Land 63 52 56 47 50 Lot Loans 81 98 86 103 117 Total 268 298 309 335 399 Construction Loans Spec 127 164 189 227 271 Sold 29 33 40 49 58 Total 156 197 229 276 329 Total Res Construction 424 $ 495 $ 538 $ 611 $ 728 Residential construction - Atlanta MSA 35

(in millions) 2Q 09 1Q 09 4Q 08 3Q 08 2Q 08 LOANS BY MARKET Atlanta MSA $1,605 $1,660 $1,706 $1,800 $1,934 Gainesville MSA 413 422 420 426 422 North Georgia 1,978 2,014 2,040 2,066 2,065 Western North Carolina 794 808 810 815 819 Coastal Georgia 455 460 464 458 436 East Tennessee 268 269 265 265 257 Total loans $5,513 $5,633 $5,705 $5,830 $5,933 Loans - markets served (at quarter-end) 36

(in millions) 2008 2007 2006 2005 2004 LOANS BY MARKET Atlanta MSA $ 1,706 $ 2,002 $ 1,654 $ 1,207 $ 1,061 Gainesville MSA 420 400 354 249 -- North Georgia 2,040 2,060 2,033 1,790 1,627 Western North Carolina 810 806 773 668 633 Coastal Georgia 464 415 358 306 274 East Tennessee 265 246 205 178 140 Total loans $ 5,705 $ 5,929 $ 5,377 $ 4,398 $ 3,735 Loans - markets served (at year-end) 37

Legal lending limit $182 House lending limit 20 Top 25 relationships 7.8% of total loans 430 Regional credit review Standard underwriting Lending - credit summary (as of December 31, 2008, in millions) 38

Liquidity - loans / deposits (in millions) Variance 2Q 09 4Q 08 2Q 08 vs 4Q 08 vs 2Q 08 Loans $ 5,513 $ 5,705 $ 5,933 $ (192 ) $ (420 ) Core (DDA, MMDA, Savings) $ 2,269 $ 2,088 $ 2,278 $ 181 $ (9) Public Funds 539 842 678 (303 ) (139) CD's 3,277 3,281 3,209 (4 ) 68 Total Deposits (excl Brokered) 6,085 6,211 6,165 (126 ) (80 ) Loan to Deposit Ratio 91 % 92 % 96% Investment Securities $ 1,817 $ 1,617 $ 1,431 $ 200 $ 386 Percent of Assets 22 % 19 % 17 % Commercial Paper Sold $ - $ 369 $ - $ (369 ) $ - 39

Liquidity - wholesale borrowings (in millions) Unused Variance Capacity 2Q 09 4Q 08 2Q 08 vs 4Q 08 vs 2Q 08 Brokered Deposits $ 1,337 $ 763 $ 793 $ 432 $ (30 ) $ 331 FHLB 1,101 283 235 615 48 (332 ) Fed Funds 150 - 8 230 (8 ) (230 ) Other Wholesale 377 252 100 303 152 (51 ) Total Wholesale $ 2,965 $ 1,298 $ 1,136 $ 1,580 $ 162 $ (282 ) Sub-Debt $ 96 $ 97 $ 67 $ (1 ) $ 29 Trust Preferred Securities 54 54 41 - 13 Total Long-Term Debt $ 150 $ 151 $ 108 $ (1 ) $ 42 40

Business mix - deposits (at quarter-end) (in millions) DEPOSITS BY CATEGORY 2Q 09 1Q 09 4Q 08 3Q 08 2Q 08 Demand & NOW $ 1,525 $ 1,485 $ 1,457 $ 1,591 $ 1,681 MMDA & Savings 744 665 630 565 598 Core Transaction Deposits 2,269 2,150 2,087 2,156 2,279 Time < $100,000 1,985 1,904 1,945 1,807 1,736 Public Deposits 480 485 755 499 573 Total Core Deposits 4,734 4,539 4,787 4,462 4,588 Time > $100,000 1,293 1,275 1,336 1,379 1,468 Public Deposits 59 75 87 103 105 Total Customer Deposits 6,086 5,889 6,210 6,035 6,161 Brokered Deposits ___763 727 793 745 535 Total Deposits 6,849 6,616 7,003 6,689 6,696 41

FIG Partners (Market Perform - Apr 24, 2009) Soleil (Tenner Investment Research) (Hold - Jul 8, 2009) Fox-Pitt Kelton Cochran (In Line - Jun 22, 2009) Stephens, Inc. (Equal-Weight - Apr 24, 2009) Keefe, Bruyette & Woods (Market Perform - Jun 22, 2009) Sterne Agee & Leach, Inc. (Sell - Apr 23, 2009) Raymond James & Associates (Market Perform 3 - Jun 22, 2009) SunTrust Robinson Humphrey (Neutral - Jun 22, 2009) Sandler O'Neill & Partners (Hold - Jun 22, 2009) Analyst coverage 42

(in millions) Acquisition Date Asset Size at Acquisition Asset Size 2Q 09 North Carolina Mar-90 $55 $1,307 Blue Ridge Feb-92 52 467 Towns Oct-92 20 227 White Aug-95 71 256 Habersham Sep-96 33 244 Rabun Sep-97 72 110 Gilmer Jan-98 23 215 Balanced growth strategy (early partnerships) 43

(in millions) Acquisition Date Asset Size at Acquisition Asset Size 2Q 09 Adairsville Aug-99 $41 $84 Rome Aug-99 108 305 Dawson Jul-00 119 217 Metro Jul-00 153 484 West GA Nov-01 85 135 East TN Mar-03 195 407 Coastal GA May-03 300 587 Fairburn Jun-04 104 237 Henry Nov-04 80 93 Rockdale/Newton Dec-04 200 225 Balanced growth strategy (recent partnerships) 44

Southern Community Bank Purchased - June 19, 2008 ($ in millions) Nine years old - Enhances presence in southside metro Atlanta markets Five banking offices in southside metro Atlanta MSA - Fayetteville, Coweta and Henry counties 60 employees $208 in customer deposits, including $50 core deposits FDIC assisted transaction - 80% guarantee on $109 loss threshold and 95% guarantee above Fully discounted bid with no credit exposure Accounted for credit related items (at FMV) as covered assets on balance sheet Loans $110 OREO $25 FDIC receivable $95 Total Covered Assets $230 Gain on acquisition of $11.4 Slightly accretive to earnings per share in 2009 45