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): April 22, 2010

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 April 22, 2010, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the quarter ended March 31, 2010 (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 April 22, 2010 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 March 31, 2010 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 they are 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 refer to them in discussions about the Registrant’s operations and performance. Operating performance measures for 2009 exclude the effects of $25 million and $70 million, non-cash goodwill impairment charges in the third and first quarters, respectively, (bringing the total goodwill impairment charge for the year 2009 to $95 million), $2.9 million in non-recurring severance charges related to a reduction in workforce recorded in the first quarter and an $11.4 million gain in the second quarter from the acquisition of Southern Community Bank that resulted from a bargain purchase. These items have been excluded from operating performance measures because management believes that the two expense items and the bargain purchase gain 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 April 22, 2010

99.2  Investor Presentation, First Quarter 2010

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.

April 22, 2010	/s/ Rex S. Schuette Rex S. Schuette
	Executive Vice President and
	Chief Financial Officer

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 FIRST QUARTER 2010

• Non-performing assets of $417 million at quarter-end, but $317 million after transaction with private equity firm in April

• Provision for loan losses of $75 million, charge-offs of $56.7 million

• Allowance-to-loans ratio of 3.48 percent, up from 3.02 percent in previous quarter

• Margin improves to 3.49 percent, up 41 basis points from one year ago

• Sold consulting services business

• Capital ratios remain strong

BLAIRSVILLE, GA –April 22, 2010 – United Community Banks, Inc. (NASDAQ: UCBI) today reported a net operating loss from continuing operations of $34.5 million, or 39 cents per diluted share, for the first quarter of 2010.

“The first quarter was difficult in terms of credit, as we had anticipated,” stated Jimmy Tallent, president and chief executive officer. “We were not able to dispose of foreclosed properties at the same pace as in previous quarters, in large part due to the harshest winter weather our markets have seen in many years. However, our sale of $100 million in illiquid non-performing assets by the end of April will prove to be beneficial. The sale, which includes approximately $72 million of non-performing loans and $28 million of foreclosed properties, shows our determination to find innovative ways to move through this credit cycle and into recovery more quickly.”

- 1 -

Total loans were $5.0 billion at quarter-end, down $159 million from the end of the fourth quarter and $641 million from a year earlier. As of March 31, 2010, residential construction loans were $960 million, or 19 percent of total loans, down $90 million for the quarter and down $470 million from a year ago. New lending during the quarter of $57 million, primarily commercial loans in metropolitan Atlanta, offset some of this decline. Annualized loan growth of 4 percent is consistent with that of 2009.

Taxable equivalent net interest revenue of $61.3 million for the first quarter reflected an increase of $3.9 million compared to the first quarter of 2009. The taxable equivalent net interest margin was 3.49 percent, up 41 basis points from a year ago and up 9 basis points from the fourth quarter of 2009. “Our ongoing strategies of building margin while maintaining liquidity are continuing to be effective,” Tallent said.

“We had our fifth consecutive quarter of core transaction deposit growth, with an increase of $53 million from the prior quarter or 9 percent on an annualized basis,” Tallent continued. “We believe much of this growth is related to disruption in the banking industry, and the favorable perception of United as a strong bank with strong service. We are emphasizing these positive attributes in our marketing programs.”

The first quarter 2010 provision for loan losses decreased to $75 million from $90 million in the fourth quarter of 2009. Net charge-offs also decreased, to $56.7 million, compared to $84.6 million in the fourth quarter. Non-performing assets increased to $417 million at quarter-end from $385 million at year-end. The ratio of non-performing assets to total assets at the end of the first quarter of 2010 and fourth quarter of 2009 was 5.32 percent and 4.81 percent, respectively. Including the planned sale of $100 million of non-performing assets, the pro forma quarter-end ratio of non-performing assets to total assets is 4.05 percent.

- 2 -

“The sale of these non-performing assets, which we announced on April 1, is a very unique and positive transaction for United and its shareholders,” stated Tallent. “It eliminates $100 million of our more illiquid non-performing assets while avoiding any additional charge-offs and credit costs associated with them. This is particularly attractive due to the lack of investor interest we have seen in larger tracts of land outside of our metro Atlanta markets. The transaction reduces non-performing assets by about 25 percent while attaining their highest current economic value and preserving our capital position. This transaction will help us move through the credit cycle and into recovery sooner.”

Operating fee revenue, all periods presented, excludes consulting services revenue because United’s consulting services subsidiary, Brintech, was sold on March 31. “Brintech has been part of United Community Banks for 10 years,” Tallent said. “At this time our focus is best placed on returning the company to profitability through our core businesses. Consulting requires scale to grow, and we found an acquirer that is a good fit and allows most of Brintech’s employees to continue in their roles.”

The results of United’s operations for all periods presented in the attached schedules have been restated to show earnings from continuing operations, which excludes Brintech’s fee revenue and operating expenses. Also, the net income or loss from the discontinued operations is reported as a separate line in the income statement.

Operating fee revenue for United was $11.7 million for the first quarter of 2010, compared to $11.8 million a year ago. Service charges and fees of $7.4 million were up $413,000, due primarily to new accounts and more ATM and debit card transactions. Mortgage loan fees were down $1.2 million, to $1.5 million, due to lower refinancing activity. Other fee revenue increased $1.0 million to $2.1 million, due primarily to the ineffectiveness of cash flow hedges on a certain portion of the company’s prime-based loans that resulted in an acceleration of $520,000 of deferred gains and higher earnings of $320,000 on bank-owned life insurance assets.

- 3 -

Due to higher foreclosed property costs, operating expenses increased by $3.0 million, from $51.8 million in the first quarter of 2009 to $54.8 million in the first quarter of 2010. Operating expenses for the first quarter of 2009, as noted in the financial highlights, exclude a $70 million non-cash goodwill impairment charge and $2.9 million in severance costs. Foreclosed property costs for the first quarter of 2010 were $10.8 million as compared to $4.3 million in the first quarter of 2009 and $14.4 million in the fourth quarter of 2009. Foreclosed property costs in the first quarter included $2.7 million for maintenance, property taxes and other related costs. In addition, write-downs relating to the sale of properties totaled $3.5 million and write-downs to help expedite future sales of other foreclosed properties totaled $4.6 million. Salary and benefit costs totaled $24.4 million, a decrease of $3.0 million from last year due primarily to the 10 percent reduction in workforce implemented at the end of the first quarter of 2009.

The effective tax rate for the first quarter of 2010 was 40 percent, compared to 45 percent in the fourth quarter of 2009 and 14 percent in the first quarter of 2009. The fourth quarter 2009 tax benefit included the favorable settlement of a several-year state tax audit dispute for which the company was fully reserved due to the uncertainty of the tax position. The first quarter 2009 effective rate was lower due to the goodwill impairment charge which was not a taxable event and therefore did not result in the recognition of a tax benefit. The effective tax rate for 2010 is expected to be 40 percent, slightly higher than the effective tax rate for the full year 2009.

As of March 31, 2010, United Community Banks’ regulatory capital ratios were as follows: Tier I Risk-Based Capital of 11.7 percent; Leverage of 8.1 percent; and Total Risk-Based Capital of 14.4 percent. The quarterly average Tangible Equity-to-Assets Ratio was 9.4 percent and the Tangible Common Equity-to-Assets Ratio was 7.1 percent.

“The quarter was eventful and productive, and one that I would like to think sets the tone for the balance of 2010,” concluded Tallent. “Moving $100 million of non-performing assets out of the bank doesn’t put all of our challenges behind us, but it is a significant milestone and a giant leap in the right direction. We have said for some time now that we would not rest until United returns to its accustomed profitability. That commitment continues and, while we aren’t there yet, we have made significant progress.”

- 4 -

Conference Call
United Community Banks will hold a conference call today, Thursday, April 22, 2010, 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 password ‘67352551.’ 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.

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 $7.8 billion and operates 27 community banks with 107 banking offices 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.

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.

# # #

- 5 -

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information

																First
	2010			2009												Quarter
(in thousands, except per share	First			Fourth			Third			Second			First			2010-2009
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			Change
INCOME SUMMARY
Interest revenue	$	89,849		$	97,481		$	101,181		$	102,737		$	103,562
Interest expense		28,570			33,552			38,177			41,855			46,150
Net interest revenue		61,279			63,929			63,004			60,882			57,412			7	%
Provision for loan losses		75,000			90,000			95,000			60,000			65,000
Operating fee revenue (1)		11,666			14,447			13,389			11,305			11,823			(1	)
Total operating revenue (1)		(2,055	)		(11,624	)		(18,607	)		12,187			4,235			(149	)
Operating expenses (2)		54,820			60,126			51,426			53,710			51,788			6
Operating loss from continuing operations before taxes		(56,875	)		(71,750	)		(70,033	)		(41,523	)		(47,553	)		(20	)
Operating income tax benefit		(22,417	)		(31,687	)		(26,252	)		(18,394	)		(15,421	)
Net operating loss from continuing operations (1)(2)		(34,458	)		(40,063	)		(43,781	)		(23,129	)		(32,132	)		(7	)
Gain from acquisition, net of tax expense		—			—			—			7,062			—
Noncash goodwill impairment charges		—			—			(25,000	)		—			(70,000	)
Severance costs, net of tax benefit		—			—			—			—			(1,797	)
(Loss) income from discontinued operations		(101	)		228			63			66			156
Gain from sale of subsidiary, net of income taxes and selling costs		1,266			—			—			—			—
Net loss		(33,293	)		(39,835	)		(68,718	)		(16,001	)		(103,773	)		68
Preferred dividends and discount accretion		2,572			2,567			2,562			2,559			2,554
Net loss available to common shareholders	$	(35,865	)	$	(42,402	)	$	(71,280	)	$	(18,560	)	$	(106,327	)
PERFORMANCE MEASURES
Per common share:
Diluted operating loss from continuing operations (1)(2)	$	(.39	)	$	(.45	)	$	(.93	)	$	(.53	)	$	(.72	)		46
Diluted loss from continuing operations		(.39	)		(.45	)		(1.43	)		(.38	)		(2.20	)		82
Diluted loss		(.38	)		(.45	)		(1.43	)		(.38	)		(2.20	)		83
Stock dividends declared (6)		—			—		1 for 130			1 for 130			1 for 130
Book value		7.95			8.36			8.85			13.87			14.70			(46	)
Tangible book value (4)		5.62			6.02			6.50			8.85			9.65			(42	)
Key performance ratios:
Return on equity (3)(5)		(20.10	)%		(22.08	)%		(45.52	)%		(11.42	)%		(58.28	)%
Return on assets (5)		(1.70	)		(1.91	)		(3.32	)		(.78	)		(5.03	)
Net interest margin (5)		3.49			3.40			3.39			3.28			3.08
Operating efficiency ratio from continuing operations (1)(2)		75.22			78.74			68.35			73.68			75.13
Equity to assets		11.90			11.94			10.27			10.71			11.56
Tangible equity to assets (4)		9.39			9.53			7.55			7.96			8.24
Tangible common equity to assets (4)		7.13			7.37			5.36			5.77			6.09
Tangible common equity to risk-weighted assets (4)		10.03			10.39			10.67			7.49			8.03
ASSET QUALITY *
Non-performing loans	$	280,802		$	264,092		$	304,381		$	287,848		$	259,155
Foreclosed properties		136,275			120,770			110,610			104,754			75,383
Total non-performing assets (NPAs)		417,077			384,862			414,991			392,602			334,538
Allowance for loan losses		173,934			155,602			150,187			145,678			143,990
Net charge-offs		56,668			84,585			90,491			58,312			43,281
Allowance for loan losses to loans		3.48	%		3.02	%		2.80	%		2.64	%		2.56	%
Net charge-offs to average loans (5)		4.51			6.37			6.57			4.18			3.09
NPAs to loans and foreclosed properties		8.13			7.30			7.58			6.99			5.86
NPAs to total assets		5.32			4.81			4.91			4.63			4.09
AVERAGE BALANCES
Loans	$	5,172,847		$	5,357,150		$	5,565,498		$	5,597,259		$	5,675,054			(9	)
Investment securities		1,517,696			1,528,805			1,615,499			1,771,482			1,712,654			(11	)
Earning assets		7,084,891			7,486,790			7,400,539			7,442,178			7,530,230			(6	)
Total assets		7,946,303			8,286,544			8,208,199			8,212,140			8,372,281			(5	)
Deposits		6,570,016			6,835,052			6,689,948			6,544,537			6,780,531			(3	)
Shareholders’ equity		945,426			989,279			843,130			879,210			967,505			(2	)
Common shares — basic		94,390			94,219			49,771			48,794			48,324
Common shares — diluted		94,390			94,219			49,771			48,794			48,324
AT PERIOD END
Loans *	$	4,992,045		$	5,151,476		$	5,362,689		$	5,513,087		$	5,632,705			(11	)
Investment securities		1,526,589			1,530,047			1,532,514			1,816,787			1,719,033			(11	)
Total assets		7,837,018			7,999,914			8,443,617			8,477,355			8,171,663			(4	)
Deposits		6,487,588			6,627,834			6,821,306			6,848,760			6,616,488			(2	)
Shareholders’ equity		925,895			962,321			1,006,638			855,272			888,853			4
Common shares outstanding		94,176			94,046			93,901			48,933			48,487

(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 and revenue generated by discontinued operations in all periods presented.
(2)	Excludes the goodwill impairment charges of $25 million and $70 million in the third and first quarters of 2009, respectively, severance costs of $2.9 million, net of income tax benefit of $1.1 million in the first quarter of 2009 and expenses relating to discontinued operations for all periods presented.
(3)	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).
(4)	Excludes effect of acquisition related intangibles and associated amortization.
(5)	Annualized.
(6)	Number of new shares issued for shares currently held.
*	Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.

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

	2010			2009
(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	$	89,849		$	97,481		$	101,181		$	102,737		$	103,562
Taxable equivalent adjustment		(493	)		(601	)		(580	)		(463	)		(488	)
Interest revenue (GAAP)	$	89,356		$	96,880		$	100,601		$	102,274		$	103,074
Net interest revenue reconciliation
Net interest revenue — taxable equivalent	$	61,279		$	63,929		$	63,004		$	60,882		$	57,412
Taxable equivalent adjustment		(493	)		(601	)		(580	)		(463	)		(488	)
Net interest revenue (GAAP)	$	60,786		$	63,328		$	62,424		$	60,419		$	56,924
Fee revenue reconciliation
Operating fee revenue	$	11,666		$	14,447		$	13,389		$	11,305		$	11,823
Gain from acquisition		—			—			—			11,390			—
Fee revenue (GAAP)	$	11,666		$	14,447		$	13,389		$	22,695		$	11,823
Total revenue reconciliation
Total operating revenue	$	(2,055	)	$	(11,624	)	$	(18,607	)	$	12,187		$	4,235
Taxable equivalent adjustment		(493	)		(601	)		(580	)		(463	)		(488	)
Gain from acquisition		—			—			—			11,390			—
Total revenue (GAAP)	$	(2,548	)	$	(12,225	)	$	(19,187	)	$	23,114		$	3,747
Expense reconciliation
Operating expense	$	54,820		$	60,126		$	51,426		$	53,710		$	51,788
Noncash goodwill impairment charge		—			—			25,000			—			70,000
Severance costs		—			—			—			—			2,898
Operating expense (GAAP)	$	54,820		$	60,126		$	76,426		$	53,710		$	124,686
Loss from continuing operations before taxes reconciliation
Operating loss from continuing operations before taxes	$	(56,875	)	$	(71,750	)	$	(70,033	)	$	(41,523	)	$	(47,553	)
Taxable equivalent adjustment		(493	)		(601	)		(580	)		(463	)		(488	)
Gain from acquisition		—			—			—			11,390			—
Noncash goodwill impairment charge		—			—			(25,000	)		—			(70,000	)
Severance costs		—			—			—			—			(2,898	)
Loss from continuing operations before taxes (GAAP)	$	(57,368	)	$	(72,351	)	$	(95,613	)	$	(30,596	)	$	(120,939	)
Income tax benefit reconciliation
Operating income tax benefit	$	(22,417	)	$	(31,687	)	$	(26,252	)	$	(18,394	)	$	(15,421	)
Taxable equivalent adjustment		(493	)		(601	)		(580	)		(463	)		(488	)
Gain from acquisition, tax expense		—			—			—			4,328			—
Severance costs, tax benefit		—			—			—			—			(1,101	)
Income tax benefit (GAAP)	$	(22,910	)	$	(32,288	)	$	(26,832	)	$	(14,529	)	$	(17,010	)
Diluted loss from continuing operations per common share reconciliation
Diluted operating loss from continuing operations per common share	$	(.39	)	$	(.45	)	$	(.93	)	$	(.53	)	$	(.72	)
Gain from acquisition		—			—			—			.15			—
Noncash goodwill impairment charge		—			—			(.50	)		—			(1.45	)
Severance costs		—			—			—			—			(.03	)
Diluted loss from continuing operations per common share (GAAP)	$	(.39	)	$	(.45	)	$	(1.43	)	$	(.38	)	$	(2.20	)
Book value per common share reconciliation
Tangible book value per common share	$	5.62		$	6.02		$	6.50		$	8.85		$	9.65
Effect of goodwill and other intangibles		2.33			2.34			2.35			5.02			5.05
Book value per common share (GAAP)	$	7.95		$	8.36		$	8.85		$	13.87		$	14.70
Efficiency ratio from continuing operations reconciliation
Operating efficiency ratio from continuing operations		75.22	%		78.74	%		68.35	%		73.68	%		75.13	%
Gain from acquisition		—			—			—			(9.96	)		—
Noncash goodwill impairment charge		—			—			33.22			—			101.55
Severance costs		—			—			—			—			4.20
Efficiency ratio from continuing operations (GAAP)		75.22	%		78.74	%		101.57	%		63.72	%		180.88	%
Average equity to assets reconciliation
Tangible common equity to assets		7.13	%		7.37	%		5.36	%		5.77	%		6.09	%
Effect of preferred equity		2.26			2.16			2.19			2.19			2.15
Tangible equity to assets		9.39			9.53			7.55			7.96			8.24
Effect of goodwill and other intangibles		2.51			2.41			2.72			2.75			3.32
Equity to assets (GAAP)		11.90	%		11.94	%		10.27	%		10.71	%		11.56	%
Actual tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets		10.03	%		10.39	%		10.67	%		7.49	%		8.03	%
Effect of other comprehensive income		(.85	)		(.87	)		(.90	)		(.72	)		(1.00	)
Effect of deferred tax limitation		(1.75	)		(1.27	)		(.58	)		(.22	)		—
Effect of trust preferred		1.00			.97			.92			.90			.89
Effect of preferred equity		3.29			3.19			3.04			2.99			2.96
Tier I capital ratio (Regulatory)		11.72	%		12.41	%		13.15	%		10.44	%		10.88	%

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

	2010		2009								Linked			Year over
	First		Fourth		Third		Second		First		Quarter			Year
(in millions)	Quarter(1)		Quarter(1)		Quarter(1)		Quarter(1)		Quarter		Change			Change
LOANS BY CATEGORY
Commercial (sec. by RE)	$	1,765	$	1,779	$	1,787	$	1,797	$	1,779	$	(14	)	$	(14	)
Commercial construction		357		363		380		379		377		(6	)		(20	)
Commercial & industrial		381		390		403		399		387		(9	)		(6	)
Total commercial		2,503		2,532		2,570		2,575		2,543		(29	)		(40	)
Residential construction		960		1,050		1,185		1,315		1,430		(90	)		(470	)
Residential mortgage		1,390		1,427		1,461		1,470		1,504		(37	)		(114	)
Consumer / installment		139		142		147		153		156		(3	)		(17	)
Total loans	$	4,992	$	5,151	$	5,363	$	5,513	$	5,633		(159	)		(641	)
LOANS BY MARKET
Atlanta MSA	$	1,404	$	1,435	$	1,526	$	1,605	$	1,660		(31	)		(256	)
Gainesville MSA		372		390		402		413		422		(18	)		(50	)
North Georgia		1,814		1,884		1,942		1,978		2,014		(70	)		(200	)
Western North Carolina		756		772		786		794		808		(16	)		(52	)
Coastal Georgia		388		405		440		455		460		(17	)		(72	)
East Tennessee		258		265		267		268		269		(7	)		(11	)
Total loans	$	4,992	$	5,151	$	5,363	$	5,513	$	5,633		(159	)		(641	)
RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development	$	290	$	332	$	380	$	413	$	445		(42	)		(155	)
Land loans		124		127		159		159		155		(3	)		(31	)
Lot loans		321		336		336		369		390		(15	)		(69	)
Total		735		795		875		941		990		(60	)		(255	)
House loans
Spec		153		178		218		268		317		(25	)		(164	)
Sold		72		77		92		106		123		(5	)		(51	)
Total		225		255		310		374		440		(30	)		(215	)
Total residential construction	$	960	$	1,050	$	1,185	$	1,315	$	1,430		(90	)		(470	)
RESIDENTIAL CONSTRUCTION — ATLANTA MSA
Dirt loans
Acquisition & development	$	66	$	76	$	100	$	124	$	148		(10	)		(82	)
Land loans		43		43		61		63		52		—			(9	)
Lot loans		47		52		54		81		98		(5	)		(51	)
Total		156		171		215		268		298		(15	)		(142	)
House loans
Spec		58		68		91		127		164		(10	)		(106	)
Sold		14		16		22		29		33		(2	)		(19	)
Total		72		84		113		156		197		(12	)		(125	)
Total residential construction	$	228	$	255	$	328	$	424	$	495		(27	)		(267	)

(1) Excludes total loans of $79.5 million, $85.1 million, $104.0 million and $109.9 million as of March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009, 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 2010									Fourth Quarter 2009									Third Quarter 2009
	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)	$	45,918		$	21,597		$	67,515		$	37,040		$	15,842		$	52,882		$	38,379		$	12,566		$	50,945
Commercial construction		23,556			14,285			37,841			19,976			9,761			29,737			38,505			5,543			44,048
Commercial & industrial		3,610			—			3,610			3,946			—			3,946			3,794			—			3,794
Total commercial		73,084			35,882			108,966			60,962			25,603			86,565			80,678			18,109			98,787
Residential construction		147,326			74,220			221,546			142,332			76,519			218,851			171,027			79,045			250,072
Residential mortgage		57,920			26,173			84,093			58,767			18,648			77,415			50,626			13,456			64,082
Consumer / installment		2,472			—			2,472			2,031			—			2,031			2,050			—			2,050
Total NPAs	$	280,802		$	136,275		$	417,077		$	264,092		$	120,770		$	384,862		$	304,381		$	110,610		$	414,991
NPAs BY MARKET
Atlanta MSA	$	81,914		$	36,951		$	118,865		$	106,536		$	41,125		$	147,661		$	120,599		$	54,670		$	175,269
Gainesville MSA		17,058			3,192			20,250			5,074			2,614			7,688			12,916			8,429			21,345
North Georgia		109,280			63,128			172,408			87,598			53,072			140,670			96,373			36,718			133,091
Western North Carolina		31,353			8,588			39,941			29,610			5,096			34,706			25,775			5,918			31,693
Coastal Georgia		33,438			21,871			55,309			26,871			17,150			44,021			38,414			3,045			41,459
East Tennessee		7,759			2,545			10,304			8,403			1,713			10,116			10,304			1,830			12,134
Total NPAs	$	280,802		$	136,275		$	417,077		$	264,092		$	120,770		$	384,862		$	304,381		$	110,610		$	414,991
NPA ACTIVITY
Beginning Balance	$	264,092		$	120,770		$	384,862		$	304,381		$	110,610		$	414,991		$	287,848		$	104,754		$	392,602
Loans placed on non-accrual		139,030			—			139,030			174,898			—			174,898			190,164			—			190,164
Payments received		(5,733	)		—			(5,733	)		(26,935	)		—			(26,935	)		(16,597	)		—			(16,597	)
Loan charge-offs		(58,897	)		—			(58,897	)		(88,427	)		—			(88,427	)		(92,359	)		—			(92,359	)
Foreclosures		(49,233	)		49,233			—			(79,983	)		79,983			—			(56,624	)		56,624			—
Capitalized costs		—			320			320			—			981			981			—			579			579
Note / property sales		(8,457	)		(25,951	)		(34,408	)		(19,842	)		(61,228	)		(81,070	)		(8,051	)		(47,240	)		(55,291	)
Write downs		—			(4,579	)		(4,579	)		—			(2,209	)		(2,209	)		—			(1,906	)		(1,906	)
Net gains (losses) on sales		—			(3,518	)		(3,518	)		—			(7,367	)		(7,367	)		—			(2,201	)		(2,201	)
Ending Balance	$	280,802		$	136,275		$	417,077		$	264,092		$	120,770		$	384,862		$	304,381		$	110,610		$	414,991

	First Quarter 2010					Fourth Quarter 2009					Third Quarter 2009
			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)	$	1,964		.45	%	$	3,896		.86	%	$	10,568		2.33	%
Commercial construction		2,206		2.48			4,717		5.03			4,369		4.55
Commercial & industrial		4,110		4.31			153		.15			1,792		1.76
Total commercial		8,280		1.33			8,766		1.36			16,729		2.57
Residential construction		43,100		17.32			67,393		23.87			67,520		21.31
Residential mortgage		4,551		1.31			7,026		1.93			5,051		1.36
Consumer / installment		737		2.12			1,400		3.83			1,191		3.13
Total	$	56,668		4.51		$	84,585		6.37		$	90,491		6.57
NET CHARGE-OFFS BY MARKET
Atlanta MSA	$	15,545		4.32	%	$	43,595		12.07	%	$	50,129		12.61	%
Gainesville MSA		1,675		1.92			2,273		2.49			1,473		1.60
North Georgia		29,747		6.51			18,057		3.57			24,017		4.74
Western North Carolina		3,695		1.96			10,091		5.11			3,949		1.98
Coastal Georgia		5,649		5.74			8,109		7.72			10,051		8.78
East Tennessee		357		.55			2,460		3.67			872		1.30
Total	$	56,668		4.51		$	84,585		6.37		$	90,491		6.57

(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 Income (Unaudited)

	Three Months Ended
	March 31,
(in thousands, except per share data)	2010			2009
Interest revenue:
Loans, including fees	$	72,215		$	81,880
Investment securities, including tax exempt of $311 and $319		16,203			20,752
Federal funds sold, commercial paper and deposits in banks		938			442
Total interest revenue		89,356			103,074
Interest expense:
Deposits:
NOW		1,854			3,337
Money market		1,757			2,237
Savings		84			127
Time		20,198			36,053
Total deposit interest expense		23,893			41,754
Federal funds purchased, repurchase agreements and other short-term borrowings		1,038			553
Federal Home Loan Bank advances		977			1,074
Long-term debt		2,662			2,769
Total interest expense		28,570			46,150
Net interest revenue		60,786			56,924
Provision for loan losses		75,000			65,000
Net interest revenue after provision for loan losses		(14,214	)		(8,076	)
Fee revenue:
Service charges and fees		7,447			7,034
Mortgage loan and other related fees		1,479			2,651
Brokerage fees		567			689
Securities gains, net		61			303
Other		2,112			1,146
Total fee revenue		11,666			11,823
Total revenue		(2,548	)		3,747
Operating expenses:
Salaries and employee benefits		24,360			27,313
Communications and equipment		3,273			3,646
Occupancy		3,814			3,769
Advertising and public relations		1,043			1,044
Postage, printing and supplies		1,225			1,175
Professional fees		1,943			3,281
Foreclosed preoperty		10,813			4,319
FDIC assessments and other regulatory charges		3,626			2,682
Amortization of intangibles		802			739
Other		3,921			3,820
Goodwill impairment		—			70,000
Severance costs		—			2,898
Total operating expenses		54,820			124,686
Loss from continuing operations before income taxes		(57,368	)		(120,939	)
Income tax benefit		(22,910	)		(17,010	)
Net loss from continuing operations		(34,458	)		(103,929	)
(Loss) income from discontinued operations, net of income taxes		(101	)		156
Gain from sale of subsidiary, net of income taxes and selling costs		1,266			—
Net loss		(33,293	)		(103,773	)
Preferred stock dividends and discount accretion		2,572			2,554
Net loss available to common shareholders	$	(35,865	)	$	(106,327	)
Loss from continuing operations per common share — Basic / Diluted	$	(.39	)	$	(2.20	)
Loss per common share — Basic / Diluted		(.38	)		(2.20	)
Weighted average common shares outstanding — Basic / Diluted		94,390			48,324

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

	Revised for Discontinued Operations
(in thousands, except per share data)	1Q10			4Q09			3Q09			2Q09			1Q09
Interest revenue:
Loans, including fees	$	72,215		$	78,064		$	80,874		$	81,691		$	81,880
Investment securities, including tax exempt		16,203			17,313			18,820			20,485			20,752
Federal funds sold, commercial paper and deposits in banks		938			1,503			907			98			442
Total interest revenue		89,356			96,880			100,601			102,274			103,074
Interest expense:
Deposits:
NOW		1,854			2,315			2,528			2,843			3,337
Money market		1,757			2,328			2,711			2,269			2,237
Savings		84			105			130			121			127
Time		20,198			24,026			28,183			32,064			36,053
Total deposit interest expense		23,893			28,774			33,552			37,297			41,754
Federal funds purchased, repurchase agreements and other short-term borrowings		1,038			1,081			613			595			553
Federal Home Loan Bank advances		977			1,045			1,300			1,203			1,074
Long-term debt		2,662			2,652			2,712			2,760			2,769
Total interest expense		28,570			33,552			38,177			41,855			46,150
Net interest revenue		60,786			63,328			62,424			60,419			56,924
Provision for loan losses		75,000			90,000			95,000			60,000			65,000
Net interest revenue after provision for loan losses		(14,214	)		(26,672	)		(32,576	)		419			(8,076	)
Fee revenue:
Service charges and fees		7,447			8,257			8,138			7,557			7,034
Mortgage loan and other related fees		1,479			1,651			1,832			2,825			2,651
Brokerage fees		567			443			456			497			689
Securities gains (losses), net		61			2,015			1,149			(711	)		303
Gain from acquisition		—			—			—			11,390			—
Other		2,112			2,081			1,814			1,137			1,146
Total fee revenue		11,666			14,447			13,389			22,695			11,823
Total revenue		(2,548	)		(12,225	)		(19,187	)		23,114			3,747
Operating expenses:
Salaries and employee benefits		24,360			24,061			23,889			26,305			27,313
Communications and equipment		3,273			3,819			3,640			3,571			3,646
Occupancy		3,814			4,003			4,063			3,818			3,769
Advertising and public relations		1,043			958			823			1,125			1,044
Postage, printing and supplies		1,225			1,307			1,270			1,288			1,175
Professional fees		1,943			2,646			2,358			3,195			3,281
Foreclosed preoperty		10,813			14,391			7,918			5,737			4,319
FDIC assessments and other regulatory charges		3,626			3,711			2,801			6,810			2,682
Amortization of intangibles		802			813			813			739			739
Other		3,921			4,417			3,851			1,122			3,820
Goodwill impairment		—			—			25,000			—			70,000
Severance costs		—			—			—			—			2,898
Total operating expenses		54,820			60,126			76,426			53,710			124,686
Loss from continuing operations before income taxes		(57,368	)		(72,351	)		(95,613	)		(30,596	)		(120,939	)
Income tax benefit		(22,910	)		(32,288	)		(26,832	)		(14,529	)		(17,010	)
Net loss from continuing operations		(34,458	)		(40,063	)		(68,781	)		(16,067	)		(103,929	)
(Loss) income from discontinued operations, net of income taxes		(101	)		228			63			66			156
Gain from sale of subsidiary, net of income taxes and selling costs		1,266			—			—			—			—
Net loss		(33,293	)		(39,835	)		(68,718	)		(16,001	)		(103,773	)
Preferred stock dividends and discount accretion		2,572			2,567			2,562			2,559			2,554
Net loss available to common shareholders	$	(35,865	)	$	(42,402	)	$	(71,280	)	$	(18,560	)	$	(106,327	)
Loss from continuing operations per common share — Basic / Diluted	$	(.39	)	$	(.45	)	$	(1.43	)	$	(.38	)	$	(2.20	)
Loss per common share — Basic / Diluted		(.38	)		(.45	)		(1.43	)		(.38	)		(2.20	)
Weighted average common shares outstanding — Basic / Diluted		94,390			94,219			49,771			48,794			48,324

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet

	March 31,			December 31,		March 31,
(in thousands, except share and per share data)	2010			2009		2009
	(unaudited)			(audited)		(unaudited)
ASSETS
Cash and due from banks	$	105,613		$	126,265	$	103,707
Interest-bearing deposits in banks		99,893			120,382		5,792
Federal funds sold, commercial paper and short-term investments		183,049			129,720		24,983
Cash and cash equivalents		388,555			376,367		134,482
Securities available for sale		1,526,589			1,530,047		1,719,033
Mortgage loans held for sale		21,998			30,226		43,161
Loans, net of unearned income (including $72,889 held for sale at March 31, 2010)		4,992,045			5,151,476		5,632,705
Less allowance for loan losses		173,934			155,602		143,990
Loans, net		4,818,111			4,995,874		5,488,715
Assets covered by loss sharing agreements with the FDIC		169,287			185,938		—
Premises and equipment, net		181,217			182,038		178,980
Accrued interest receivable		30,492			33,867		45,514
Goodwill and other intangible assets		224,394			225,196		251,060
Foreclosed property		136,275			120,770		75,383
Other assets		340,100			319,591		235,335
Total assets	$	7,837,018		$	7,999,914	$	8,171,663
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand	$	740,727		$	707,826	$	665,447
NOW		1,344,973			1,335,790		1,284,791
Money market		729,283			713,901		500,261
Savings		186,699			177,427		177,001
Time:
Less than $100,000		1,643,059			1,746,511		1,911,627
Greater than $100,000		1,132,034			1,187,499		1,350,190
Brokered		710,813			758,880		727,171
Total deposits		6,487,588			6,627,834		6,616,488
Federal funds purchased, repurchase agreements, and other short-term borrowings		102,480			101,389		158,690
Federal Home Loan Bank advances		114,303			114,501		260,125
Long-term debt		150,086			150,066		151,006
Accrued expenses and other liabilities		56,666			43,803		96,501
Total liabilities		6,911,123			7,037,593		7,282,810
Shareholders’ equity:
Preferred stock, $1 par value; 10,000,000 shares authorized;
Series A; $10 stated value; 21,700, 21,700 and 25,800 shares issued and outstanding		217			217		258
Series B; $1,000 stated value; 180,000 shares issued and outstanding		174,727			174,408		173,480
Common stock, $1 par value; 100,000,000 shares authorized; 94,175,857, 94,045,603 and 48,809,301 shares issued		94,176			94,046		48,809
Common stock issuable; 262,002, 221,906 and 161,807 shares		4,127			3,597		3,270
Capital surplus		622,803			622,034		452,277
Retained earnings (accumulated deficit)		(15,481	)		20,384		158,201
Treasury stock; 322,603 shares, at cost		—			—		(5,992	)
Accumulated other comprehensive income		45,326			47,635		58,550
Total shareholders’ equity		925,895			962,321		888,853
Total liabilities and shareholders’ equity	$	7,837,018		$	7,999,914	$	8,171,663

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,

	2010								2009
	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)	$	5,172,847		$	72,219		5.66	%	$	5,675,054		$	81,749		5.84	%
Taxable securities (3)		1,487,646			15,892		4.27			1,682,603			20,433		4.86
Tax-exempt securities (1)(3)		30,050			509		6.78			30,051			522		6.95
Federal funds sold and other interest-earning assets		394,348			1,229		1.25			142,522			858		2.41
Total interest-earning assets		7,084,891			89,849		5.13			7,530,230			103,562		5.56
Non-interest-earning assets:
Allowance for loan losses		(187,288	)							(128,798	)
Cash and due from banks		104,545								104,411
Premises and equipment		181,927								179,495
Other assets (3)		762,228								686,943
Total assets	$	7,946,303							$	8,372,281
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,361,696		$	1,854		.55		$	1,358,149		$	3,337		1.00
Money market		723,470			1,757		.98			477,325			2,237		1.90
Savings		180,448			84		.19			172,708			127		.30
Time less than $100,000		1,692,652			8,891		2.13			1,942,897			17,217		3.59
Time greater than $100,000		1,155,776			6,770		2.38			1,393,188			12,825		3.73
Brokered		736,999			4,537		2.50			786,171			6,011		3.10
Total interest-bearing deposits		5,851,041			23,893		1.66			6,130,438			41,754		2.76
Federal funds purchased and other borrowings		102,058			1,038		4.12			150,517			553		1.49
Federal Home Loan Bank advances		114,388			977		3.46			204,941			1,074		2.13
Long-term debt		150,078			2,662		7.19			150,997			2,769		7.44
Total borrowed funds		366,524			4,677		5.18			506,455			4,396		3.52
Total interest-bearing liabilities		6,217,565			28,570		1.86			6,636,893			46,150		2.82
Non-interest-bearing liabilities:
Non-interest-bearing deposits		718,975								650,093
Other liabilities		64,337								117,790
Total liabilities		7,000,877								7,404,776
Shareholders’ equity		945,426								967,505
Total liabilities and shareholders’ equity	$	7,946,303							$	8,372,281
Net interest revenue				$	61,279							$	57,412
Net interest-rate spread							3.27	%							2.74	%
Net interest margin (4)							3.49	%							3.08	%

(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 $43.2 million and $10.6 million in 2010 and 2009, respectively, 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.

EX-99.2

Exhibit 99.2

United Community Banks, Inc. Investor Presentation First Quarter 2010 Strong Bank. Strong Service. Strong Future. Jimmy C. Tallent President & CEO Rex S. Schuette EVP & CFO rex_schuette@ucbi.com (706) 781-2266 David P. Shearrow EVP & CRO

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.'s Annual Report filed on Form 10-K with the Securities and Exchange Commission. Cautionary Statement 2

This presentation also contains non-GAAP financial measures determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). Such non-GAAP financial measures include the following: net interest margin - pre credit, core fee revenue, core operating expense, core earnings, net operating (loss) income and net operating (loss) earnings per share, tangible common equity to tangible assets, tangible equity to tangible assets and tangible common equity to risk-weighted assets. The most comparable GAAP measures to these measures are: net interest margin, fee revenue, operating expense, net (loss) income, diluted (loss) earnings per share and equity to assets. Management uses these non-GAAP financial measures because we believe it is useful for evaluating our operations and performance over periods of time, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes these non-GAAP financial measures provide users of our financial information with a meaningful measure for assessing our financial results and credit trends, as well as comparison to financial results for prior periods. These non-GAAP financial measures should not be considered as a substitute for financial measures determined in accordance with GAAP and may not be comparable to other similarly titled financial measures used by other companies. For a reconciliation of the differences between our non-GAAP financial measures and the most comparable GAAP measures, please refer to the 'Non-GAAP Reconcilement Tables' at the end of the Appendix of this presentation. We have not reconciled tangible common equity to tangible assets and core earnings to the extent such numbers are presented on a forward-looking basis based on management's internal stress test or SCAP methodology. Estimates that would be required for such reconciliations cannot reliably be produced without unreasonable effort. 3 Non-GAAP Measures

Highlights First Quarter Credit Sale of $100 Million NPAs Sale of Consulting Services Business Core Earnings Capital 4

5 LOAN PORTFOLIO & CREDIT QUALITY

Structure Centralized underwriting and approval process Segregated work-out teams Highly skilled ORE disposition group Seasoned regional credit professionals Process Continuous external loan review Intensive executive management involvement: Weekly past due meetings Weekly NPA/ORE meetings Quarterly criticized watch loan review meetings Quarterly pass commercial and CRE portfolio review meetings Internal loan review of new credit relationships Ongoing stress testing... commenced in 2007 Policy Ongoing enhancements to credit policy Periodic updates to portfolio limits 6 Proactively Addressing Credit Environment

North Georgia Atlanta MSA Western North Carolina Coastal Georgia Gainesville MSA Eastern Tennessee East 0.36 0.28 0.15 0.08 0.07 0.05 Geographic Diversity 7 Loan Portfolio (total $5.0 billion)

Atlanta MSA North Georgia Western North Carolina Coastal Georgia Gainesville MSA Eastern Tennessee East 0.37 0.3 0.09 0.09 0.09 0.06 Commercial Construction Owner-Occupied Income Producing C & I East 15 38 32 15 Geographic Diversity Average Loan Size CRE: $444k C&I: $71k Comm. Constr. $684k 8 Commercial Loans (total $2.5 billion)

54% owner-occupied Typical owner-occupied: small business, doctors, dentists, attorneys, CPAs $12 million project limit 60% LTV (1) $444k average loan size Portfolio Characteristics (1) Loan balance as of Mar 31, 2010 / most recent appraisal (in millions) Mar 31, 2010 % of Loan Type Amount Total Office Buildings $ 399 22 % Small Businesses 388 22 Single-Unit Retail/Strip Centers 221 12 Small Warehouses/Storage 173 10 Churches 122 7 Hotels/Motels 118 7 Convenience Stores 83 5 Franchise / Restaurants 77 4 Multi-Residential Properties 65 4 Farmland 46 3 Multi-Unit Retail 40 2 Miscellaneous 33 2 Total Commercial Real Estate $ 1,765 9 Commercial Real Estate (by loan type)

$684k Average loan size Average LTVs (1) Land Dev-Improved: 45% Raw Land-Unimpr: 47% Comm Land Dev: 59% Total: 53% Portfolio Characteristics (1) Loan balance as of Mar 31, 2010 / most recent appraisal (in millions) Mar 31, 2010 % of Loan Type Amount Total Land Development - Vacant (Improved) $ 114 32 % Raw Land - Vacant (Unimproved) 99 28 Commercial Land Development 50 14 Office Buildings 31 9 Retail Buildings 13 3 Churches 3 1 Miscellaneous 47 13 Total Commercial Construction $ 357 10 Commercial Construction (by loan type)

North Georgia Western North Carolina Atlanta MSA Coastal Georgia Gainesville MSA Eastern Tennessee East 0.39 0.26 0.14 0.08 0.07 0.06 Mortgage Home Equity East 73 27 Geographic Diversity Avg loan size: $47k Avg loan size: $77k Origination Characteristics No broker loans No sub-prime / Alt-A 85% of HE > 680 FICO Policy Max LTV: 80-85% 11 Residential Mortgage (total $1.4 billion)

North Georgia Atlanta MSA Western North Carolina Coastal Georgia Gainesville MSA Eastern Tennessee East 0.48 0.24 0.16 0.06 0.04 0.02 Geographic Diversity Developing Spec: $243k Sold: $159k Develop.: $773k Raw: $316k Lot: $134k Average Loan Size Lot Spec Sold Developing Raw East 0.34 0.16 0.08 0.3 0.12 Construction Land 12 Residential Construction (total $960 million) $ in millions

13 Atlanta MSA (residential construction)

14 North Georgia MSA (residential construction)

(in millions) 1Q10 4Q 09 3Q 09 2Q 09 1Q 09 Net Charge-offs $ 56.7 $ 84.6 $ 90.5 $ 58.3 $ 43.3 as % of Average Loans 4.51 % 6.37 % 6.57 % 4.18 % 3.09 % Allowance for LL $ 173.9 $ 155.6 $ 150.2 $ 145.7 $ 144.0 as % of Total Loans 3.48 % 3.02 % 2.80 % 2.64 % 2.56 % as % of NPLs 62 59 49 51 56 as % of NPLs - Adjusted (1) 142 190 149 82 117 as % of NPLs - Adjusted Proforma(2) 233 Past Due Loans (30 - 89 Days) 2.17 % 1.44 % 2.02 % 1.61 % 1.67 % Non-Performing Loans $ 280.8 $ 264.1 $ 304.4 $ 287.8 $ 259.1 OREO 136.3 120.8 110.6 104.8 75.4 Total NPAs $ 417.1 $ 384.9 $ 415.0 $ 392.6 $ 334.5 as % of Total Assets 5.32 % 4.81 % 4.91 % 4.63 % 4.09 % as % of Loans & OREO 8.13 7.30 7.58 6.99 5.86 Excluding loans with no allocated reserve Excluding loans with no allocated reserve and loans sold to Fletcher 15 Credit Quality

(1) Based on simple average of the four quarters 16 Net Charge-offs by Loan Category

Note: Dollars in thousands (1) Based on simple average of the four quarters 17 Net Charge-offs by Market

18 NPAs by Loan Category and Market

Imputed Stress Test - Estimated Credit Losses Through December 2010 (1) Represents the SCAP - Selected Banks Scenario modified to reflect the characteristics of United Community Banks existing loan portfolio. (2) Based on average projected losses per loan category (More Adverse Scenario) for BB&T Corporation, Fifth Third Bancorp, Regions Financial Corporation and SunTrust Banks, Inc. as per the Board of Governors of the Federal Reserve System (2009) "The Supervisory Capital Assessment Program: Overview of Results" (3) Represents the mid-point of the indicative loss rates by loan category as per the Board of Governors of the Federal Reserve System (2009) "The Supervisory Capital Assessment Program: Overview of Results" 19 Credit Quality - SCAP Analysis

Imputed Stress Test - Projected Capital Ratios 20 Credit Quality - SCAP Analysis

21 FINANCIAL RESULTS

22 Core Earnings Summary - First Quarter 2010

4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 Net Interest Margin 0.027 0.0308 0.0328 0.0339 0.034 0.0349 0.0043 0.0045 0.0052 0.0058 0.0064 0.0066 Net Interest Margin Margin improvement 9 bps vs. 4Q09 41 bps vs. 1Q09 Improved CD pricing Maintained loan pricing 1Q Excess liquidity - lowered Margin by 18 bps NIM Characteristics 3.53% 3.80% 3.97% 4.04% NIM NIM - Pre Credit (1) (1) Excluding impact of nonaccrual loans, OREO and interest reversals 3.13% 4.15% 23 Net Interest Margin

4Q08 1Q 09 2Q 09 3Q09 4Q09 1Q10 Lost Interest on C/Os 0.0007 0.0007 0.001 0.0015 0.0017 0.002 Nonaccrual/OREO 0.0016 0.0022 0.0023 0.0027 0.0027 0.0026 Interest Reversals 0.002 0.0016 0.0019 0.0016 0.002 0.002 Historically 8 to 12 bps Credit cycle - significant drag on margin and earnings Lost interest (avg. yield) on loans charged off - Replace with new loans after credit cycle Carry costs high with level of NPAs Cost 1Q10 vs. Historical - 54 bps (potential annual earnings impact of $38 million by lowering to historical levels) Credit Costs Impacting Margin ..58% ..64% ..66% ..52% Lost Interest on C/Os Interest Reversals Carry Cost of NPAs ..45% 24 ..43% Margin - Credit Costs

As of March 31, 2010 Demand & NOW MMDA & Sav. Time <$100k Time >$100k Public Funds Brokered East 1490 907 1636 1059 684 711 25 Deposit Mix (total $6.5 billion)

$ in millions 1Q 09 1Q 10 Geographic Diversity Atlanta MSA North Georgia Western North Carolina Gainesville MSA Coastal Georgia Eastern Tennessee 1Q10 892 650 445 150 140 120 1Q09 767 606 410 126 131 110 Atlanta MSA North Georgia Western North Carolina Gainesville MSA Coastal Georgia Eastern Tennessee 26 Core Transaction Deposits

27 Net Operating Loss - First Quarter 2010

28 Net Loss - First Quarter 2010

29 Capital Ratios (as percentages)

30 APPENDIX

Assets $7.8 Billion Deposits $6.5 Billion Banks 27 Offices 107 31 United at a Glance

32 Experienced Proven Leadership Joined Years in UCBI Banking Jimmy Tallent President & CEO 1984 37 Guy Freeman Chief Operating Officer 1994 50 Rex Schuette Chief Financial Officer 2001 33 David Shearrow Chief Risk Officer 2007 29 Glenn White President, Atlanta Region 2007 36 Craig Metz Marketing 2002 18 Bill Gilbert Retail Banking 2000 34

Business and operating model Twenty-seven "community banks" Local CEOs with deep roots in their communities Resources of $7.8 billion bank Service is point of differentiation Golden rule of banking "The Bank That SERVICE Built" Ongoing customer surveys 90+% satisfaction rate (Record 95% in March 2010) Strategic footprint with substantial banking opportunities Operates in a number of the more demographically attractive markets in the U.S. Disciplined growth strategy Organic supported by de novos and selective acquisitions 33 "Community bank service, large bank resources"

34 Robust Demographics (fast growing markets)

1 FDIC deposit market share and rank as of 6/09 for markets where United takes deposits. Source: SNL and FDIC 35 Market Share Opportunities (excellent growth prospects)

36 Leading Demographics

37 Small Business Market Growth Number of Businesses with 1 - 49 Employees

38 Business Mix Loans (at quarter-end)

39 Business Mix Loans (at year-end)

40 Residential Construction - Total Company

41 Residential Construction - Atlanta MSA

42 Residential Construction - North Georgia

43 Loans - Markets Served (at quarter-end)

44 Loans - Markets Served (at year-end)

Legal lending limit $199 House lending limit 20 Top 25 relationships 7.8% of total loans 387 Regional credit review Standard Underwriting (in millions) 45 Lending - Credit Summary (as of March 31, 2010)

46 NPAs by Loan Category, Market, and Activity

47 Net Charge-offs by Category and Market

48 Liquidity - Loans / Deposits

49 Liquidity - Wholesale Borrowings

50 Business Mix - Deposits (at quarter-end)

FBR Capital (Market Perform - Nov 19, 2009) Sandler O'Neill & Partners (Hold - Apr 5, 2010) FIG Partners (Market Perform - Jan 29, 2010) Soleil (Tenner Investment Research) (Hold - Apr 13, 2010) Keefe, Bruyette & Woods (Market Perform - Apr 5, 2010) Stephens, Inc. (Equal Weight - Feb 2, 2010) Macquarie Capital (USA) (Neutral - Jan 29, 2010) Sterne Agee & Leach, Inc. (Neutral - Apr 15, 2010) Raymond James & Associates (Outperform 2 - Apr 5, 2010) SunTrust Robinson Humphrey (Buy - Apr 5, 2010) 51 Analyst Coverage

Southern Community Bank ($ in millions) Purchased - June 19, 2009 Nine years old - Enhances presence in southside metro Atlanta markets Four banking offices in southside metro Atlanta MSA - Fayetteville, Coweta and Henry counties 54 employees (Reduced by 17 after conversion in September 2009) $208 in customer deposits, including $53 core deposits FDIC assisted transaction: 80% guarantee on $109 loss threshold, 95% above Fully discounted bid with no credit exposure Accounted for credit related items (at FMV) as "covered assets" on balance sheet 1Q10 4Q09 2Q09 Loans $ 79 $ 85 $ 110 OREO 32 34 25 FDIC receivable 58 67 95 Total Covered Assets $ 169 $ 186 $ 230 Pre-tax gain on acquisition of $11.4 Accretive to earnings per share in 2009 52

Discontinued Operations - Restated Income Statement 53 Page 1 of 2

54 Page 2 of 2 Discontinued Operations - Restated Income Statement

55 Non-GAAP Reconciliation Tables

56 Non-GAAP Reconciliation Tables

United Community Banks, Inc. Investor Presentation First Quarter 2010 Copyright 2010 United Community Banks, Inc. All rights reserved.