ex99-2.htm

EX-99.2 3 ex99-2.htm EXHIBIT 99.2 ex99-2.htm

Exhibit 99.2

United Community Banks, Inc.

Investor Presentation

Fourth Quarter 2011

Jimmy C. Tallent Rex S. Schuette David P. Shearrow

President & CEO EVP & CFO EVP & CRO rex_schuette@ucbi.com (706) 781-2266

Cautionary Statement 2

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.

Non-GAAP Measures 3

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 net interest margin, core net interest revenue, 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, net interest revenue, 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.

Highlights Fourth Quarter 4

Net Income of $9.9 Million, or 12 Cents per Share

Second quarterly profit in 2011

Loan Growth Flat

First time since March 2008

Strong Core Deposit Growth

Nonperforming Assets Decline to $160 Million, or 2.3% of Assets

LOAN PORTFOLIO & CREDIT 5 QUALITY

Loan Portfolio (total $4.11 billion) 6

Geographic Diversity

$.45B $ in millions Residential Construction $1.14B .11B

11%

Residential Installment Mortgage 3% 28%

$2.41B Commercial 58%

Commercial Loans (total $2.41 billion) 7

$.16B

Geographic Diversity Comm

Const $ in millions 7% $.43B

C & I 18% $1.11B

Owner Occupied 46% $.71B

Income Producing 29%

Avg Loan Size (,000)

$700 $600

610

$500 $400 449

420

$300 $200 $100

Owner Income C & I Comm Occupied Producing Constr

Commercial Real Estate (by loan type) 8

(in millions)

December 31, 2011 Portfolio Characteristics

Owner Income

Loan Type Occupied Producing Total Percent

Office Buildings $ 285 $ 211 $ 496 27 % 61% owner-occupied Retail 120 145 265 15 Small Warehouses/Storage 115 78 193 11 Multi-Residential Properties 60 84 144 8Small business, doctors, Churches 139 - 139 8dentists, attorneys, CPAs Hotels/Motels - 92 92 5 Convenience Stores 63 22 85 5 Franchise / Restaurants 37 34 71 4$12 million project limit Farmland 63 - 63 3 Manufacturing Facility 51 10 61 3 Golf Course/Recreation 60 - 60 3Average Loan Size Auto Dealership/Service 44 8 52 3 Leasehold Property 17 7 24 1-$468 Composite CRE Daycare Facility 16 10 26 1 Carwash 19 1 20 1-$420 Owner Occupied Other Small Business 10 8 18 1 Funeral Home 12 1 13 1-$610 Income Producing Total$ 1,111 $ 711 $ 1,822

Commercial Construction (by loan type) 9

(in millions)

December 31, 2011 Loan Type Amount Percent

Land Develop - Vacant (Improved) $ 65 39 % Portfolio Characteristics Raw Land - Vacant (Unimproved) 5735 Commercial Land Development 2515Average loan size: $449k Golf Course/Country Club 64 Office Buildings 32 Churches 32 Warehouse 21 Miscellaneous Construction 32 Total Commercial Construction$ 164 100 %

Residential Mortgage (total $1.14 billion) 10

Geographic Diversity $.30B

Home Equity $ in millions 26%

Avg loan size: $44k

$.84B

Mortgage Avg loan 74% size: $72k

Origination Characteristics No broker loans Policy Max LTV: 80-85% 53.8% of HE Primary Lien

Residential Construction (total $.45 billion) 11

Geographic Diversity a L d n

$ in millions

Developing

o C s n r u t t i c n o

Average Loan Size

Spec $223k Develop $619k Sold $132k Raw Land $150k Lot $88k

Residential Construction – Total Company 12

4Q11 vs. (in millions) 4Q11 3Q11

2Q11 1Q11 4Q10 4Q10

Land Loans

Developing Land

$ 88 $ 97

$ 105 $ 116

$ 174 $ (86)

Raw Land 61 60

62 69

99 (38) Lot Loans 207

216 218 228 275 (68)

Total 356 373 385

413 548 (192)

Construction Loans

Spec 59 64 74

88 97 (38)

Sold 33 37 43 49

50 (17)

Total 92 101 117

137 147 (55)

Total Res Construction$ 448$ 474$ 502

$ 550$ 695$ (247)

By Region

Atlanta $ 86 $ 92 $ 97

$ 110 $ 133 $ (47)

Gainesville MSA 20 25 25 26 36

(16)

North Georgia 214 229 249 266 339

(125)

North Carolina 91 92 95 106 140 (49)

Coastal Georgia 24 24 24 27 30 (6)

Tennessee 13 12 12 15 17 (4)

Total Res Construction $ 448 $ 474

$ 502 $ 550 $ 695 $ (247)

New Loans Funded – Category and Market 13

(in millions)

2011 2011 CATEGORY 4Q YTD MARKET 4Q YTD

Commercial RE: Atlanta $ 56.1 $ 138.4 Owner Occupied $ 54.1 $ 146.8 N. Georgia 30.0 113.3 Income Producing 24.1 66.1Coastal Georgia 35.6 73.0 Total Commercial RE 78.2 212.9North Carolina 7.2 25.2 Commercial C & I 41.4 79.6Tennessee 12.7 25.0 Commercial Constr. 2.1 6.7Gainesville 5.7 17.4 Residential 19.2 60.8 Total Markets$ 147.3$ 392.3 Residential Constr. 5.5 28.5 Consumer .9 3.8 Total Categories$ 147.3$ 392.3

New Loan Commitments – Category and Market 14

(in millions)

2011 2011 CATEGORY 4Q YTD MARKET 4Q YTD

Commercial RE: Atlanta $ 69.3 $ 206.5 Owner Occupied $ 56.7 $ 152.1 N. Georgia 40.0 155.2 Income Producing 25.4 72.7Coastal Georgia 38.1 81.3 Total Commercial RE 82.1 224.8North Carolina 10.1 38.8 Commercial C & I 52.6 130.6Tennessee 17.3 36.7 Commercial Constr. 5.2 20.4Gainesville 7.2 23.7 Residential 23.4 74.1 Total Markets$ 182.0$ 542.2 Residential Constr. 17.2 87.1 Consumer 1.5 5.2 Total Categories$ 182.0$ 542.2

Credit Quality 15

(in millions)4Q11 3Q11 2Q11 1Q11 4Q10 Operating Net Charge-offs(1) $ 20.6 $ 17.5 $ 16.5 $ 231.6 $ 47.7a

% of Average Loans(1) 1.99 % 1.68 % 1.58 % 20.71 % 4.03 %

Allowance for Loan Losses $ 114.5 $ 146.1 $ 127.6 $ 133.1 $ 174.7

as % of Total Loans 2.79 % 3.55 % 3.07 % 3.17 % 3.79 % as % of NPLs 90 101 180 159 98

Past Due Loans (30 89 Days) .75 % .70 % .65 % 1.26 % 1.26 %

Non-Performing Loans $ 127.5 $ 144.5 $ 71.0 $ 83.7 $ 179.1 OREO 32.8 44.2 47.6 54.4 142.2 Total NPAs $ 160.3 $ 188.7 $ 118.6 $ 138.1 $ 321.3

Accruing TDRs $ 105.8 $ 69.8 $ 41.5 $ 44.4 $ 100.7

As % of Original Principal Balance

Non-Performing Loans 71.3 % 77.8 % 64.5 % 57.3 % 67.2 % OREO 35.9 33.4 32.6 30.3 64.4

Total NPAs as % of Total Assets 2.30 2.74 1.66 1.79 4.42 as % of Loans & OREO 3.87 4.54 2.82 3.25 6.77

(1) Excludes $25 million of charge-offs for largest loan relationship in 4Q11 and $11.75 million partial recovery of 2007 fraud loss in 4Q10.

NPL Inflow Trends 16

Quarterly NPL Inflows Since 2009 ($mm)

$193.3 76.4% $200.0 $174.8 $177.7 $174.9 Decline $155.0 from Peak $139.0 $150.0$119.8 $103.4 $100.0$81.0

$54.7 $45.7 $50.0 $35.9

$0.0

Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11

Resi Construction Com. Construction Resi. Mortgage Com. RE Commercial Consumer

Total NPLs ($mm)

Net Charge‐offs by Loan Category 17

(in thousands)

4Q11(1) % of Average Loans (Annualized)

% of Avg

Total Loans 3Q11 2Q11(2) 1Q11 (2)

Commercial (Sec. by RE):

Owner Occupied $ 3,019 1.16 % .34 % .89 % .89 % Income Producing 1,042 .57 .71 1.54 .33 Total Comm (Sec. by RE) 4,061 .90 .50 1.16 .65 Commercial Construction 455 1.08 3.54 4.31 1.77 Commercial & Industrial 1,894 1.75 .39 .59 .46 Total Commercial 6,410 1.06 .71 1.33 .73

Residential Construction 7,900 6.77 5.19 7.19 6.72 Residential Mortgage 5,887 2.04 2.09 1.97 1.59 Consumer/ Installment 427 1.47 2.75 2.07 1.19 Total Net Charge-offs $ 20,624 1.99 1.68 2.27 1.84

(1) Excludes charge-offs for largest loan relationship of Commerical Construction $2,863; Commercial & Industrial $17,046; CRE Income Producing $901; and, Residential Construction $4,190 (2) Calculated excluding losses related to asset disposition plans.

plans.

Net Charge‐offs by Market 18

(in thousands)

4Q11(1) % of Average Loans (Annualized)

% of Avg

Total Loans 3Q11 2Q11(2) 1Q11(2)

Atlanta MSA $ 4,195 1.37 % .94 % 1.66 % 1.04 % Gainesville MSA 2,572 3.84 2.64 3.73 1.32 North Georgia 9,970 2.70 2.16 2.71 2.06 Western North Carolina 3,180 2.10 2.31 2.67 3.98 Coastal Georgia 335 .41 .88 1.52 0.42 East Tennessee 372 .59 .78 .76 1.00

Total $ 20,624 1.99 1.68 2.27 1.84

NPAs by Loan Category and Market 19

(in thousands)

4Q11 4Q11

NPLs OREO Total NPAs NPLs

OREO Total NPAs

LOAN CATEGORY MARKETS

Commercial (sec. by RE):

Atlanta MSA $ 14,480 $ 6,169 $ 20,649

Owner Occupied

$ 15,490 $ 6,931 $ 22,189

Gainesville MSA 2,069 3,760 5,829

Income Producing 11,832 2,814 14,621

North Georgia 88,600 15,136 103,736

Commercial Construction 16,655 3,336 19,991

Western N. Carolina 15,100 5,365 20,465

Commercial & Industrial 34,613 - 34,613

Coastal Georgia 5,248 1,620 6,868

Total Commercial 78,590 13,081 91,414

East Tennessee 1,982 809 2,791

Total $ 127,479 $ 32,859 $ 160,338

Residential Construction 25,523 12,851 38,374

Residential

Mortgage

22,358 6,927 29,285

Consumer/ Installment 1,008 - 1,008

Total $ 127,479 $ 32,859 $ 160,081

Financial Review 20

Core Earnings Summary 21

(In Thousands) Variance - Incr / (Decr) 4Q11 3Q11 4Q10

Net Interest Revenue $ 59,050 $ (231) $ (1,082)

Fee Revenue 11,442 133 294

Gross Revenue 70,492 (98) (788)

Operating Expense (Excl OREO) 43,843 (250) (261)

Pre-Tax, Pre-Credit (Core) $ 26,649 $ 152 $ (527)

Net Interest Margin 3.51 % (.04) % (.07) %

Net Interest Margin 22

NIM Characteristics

4.50% 4.48% • Margin changes

4.05%

3.87% 3.84% 3.81%

3.71% -4 bps vs. 3Q11 -7 bps vs. 4Q10

• Lowered Core and CD Deposit Pricing

• Loan Pricing at risk

• 4Q Excess liquidity –lowered Margin by 67 bps NIM and 66 bps in Q3

NIM – Core Credit(1)(2)

(1) Excludes impact of reversal of interest on performing loans classified as held for sale – Q1 2011 (2) Excluding impact of nonaccrual loans, OREO and interest reversals

Margin – Credit Costs 23

Credit Costs Impacting Margin

.50%

.47% .46%*

.45%

.11% .11% Historically 8 to 12 bps

.40%

.35%

.30% .30% Significant improvement with

.29%

.30% de-risking balance sheet first

.19% .16% .05% .05%

.25% .07% quarter .07% .20% .07% .13%

.15% Cost 4Q11 vs. Historical – 18 .10% .19% bps (annual earnings impact

.17% .18%

.15%

.05% .12% of $12.1 million)

.00%

4Q10 1Q11 2Q11 3Q11 4Q11 1 bps = $670 thousand in NIR

Interest Reversals

Carry Cost of NPAs *Excludes bulk loan sale impact of 10

Lost Interest on C/Os bps

Key Drivers of Net Interest Revenue / Margin 24

Positive Impact on Margin

 Holding loan pricing flat

 Actively lowering deposit pricing

4.35 4.31 4.74 4.76 4.79 Loan Pricing Spreads

Deposit Pricing, Excluding Brokered Deposits 25

1.25 1.16

1.12

1.00 .93

.89

.75 .62 .61

.46 .50 .46 .44 .39

.32 .36 .26 .30

.25 .22

.00

CDs MMDA NOW

Note – CD pricing reflects the quarter-ending new and renewed yield. MMDA / NOW pricing reflects the deposit yield for each quarter

Deposit Mix (total $6.1 billion) 26

4Q11

Brokered

($ in millions) $6.1B 3%

Public Funds

14% Demand & 48% NOW

4Q11 3Q11 4Q10 4Q08 28%

Demand / NOW $ 1,674 $ 1,686

$ 1,573 $ 1,457 Time >$100k

13%

MMDA / Savings 1,228 1,220

1,063 630

Core Transaction 2,902 2,906

2,636 2,087

-4 +266 Time <$100k MMDA & Sav.

22% 20%

10% Growth

+815

39% Growth

4Q08

Time < $100,000 1,326 1,387

1,491 1,945 $7.0B

Demand & 30%

Public Deposits 844 597

663 755 Brokered

11% NOW

Total Core 5,072 4,890

4,790 4,787 21%

Public Funds

Time >$100,000 807 867

940 1,336 12%

Public Deposits 40 38

62 87 MMDA & Sav.

Total Customer 5,919 5,795

5,792 6,210 9%

Time >$100k

Brokered

Deposits 179 210

677 793 19%

Total Deposits $ 6,098 $ 6,005

$ 6,469 $ 7,003 Time <$100k

28%

Core Deposit Growth – Category and Market 27

(in millions, excluding public)

2011 2011

CATEGORY 4Q YTD MARKET 4Q YTD

Demand $ 8.8 $ 185.7 Atlanta $ 10.2 $ 102.4

MM Accounts 8.7 149.8 N. Georgia (12.8) 80.8

Savings (1.3) 14.9 North Carolina (3.6) 27.4

NOW (20.1) (84.1) Tennessee 1.6 20.7

Total Categories $ (3.9) $ 266.3 Coastal Georgia (5.9) 19.6

Gainesville 6.6 15.4

Total Markets $ (3.9) $ 266.3

Fee Revenue - Core 28

(In Thousands)

Variance - Incr / (Decr) 4Q11 3Q11 4Q10

NSF & Overdraft Fees $ 3,537 $ (4) $ (295) ATM Fees 2,969 (333)

434 Other Service Charges 742 51 70 Total Service Charges and Fees 7,248 (286) 209 M

ortgage Loan & Related Fees 1,825 677

(43) Brokerage Fees 782 (54) 4 Other 1,587 (204) 124 Total$ 11,442$ 133$ 294

Excludes net securities gains and charges on prepayment of FHLB advances, hedge ineffectiveness gains, gains from the sale of low income housing tax credits and mark to market adjustments on United's deferred compensation plan assets.

Operating Expenses - Core 29

(In Thousands)

Variance - Incr / (Decr) 4Q11 3Q11 4Q10

Salaries & Employee Benefits $ 25,538 $ (110) 1,973 Communications & Equipment 3,129 (155) (248) Occupancy 3,972 178 (52) FDIC Assessment 2,599 (4) (700) Advertising & Public Relations 944 (108) (158) Postage, Printing & Supplies 1,017 (19) (46) Professional Fees 1,996 (55) (1,020) Other Expense 4,648 23 (10)

$ 43,843 $ (250) $ (261)

Excludes foreclosed property costs, adjustment to reclassify pension plan actuarial gains and losses and unamortized prior service costs to other comprehensive income, and mark to market adjustments on United's deferred compensation plan liability.

Net Operating Loss 30

(In Thousands)

4Q11 3Q11 4Q10 Pre-Tax, Pre-Credit (Core) $ 26,649

$ 26,497 $ 27,176

Provision for Loan Loss (14,000)

(36,000) (47,750)

Foreclosed Property Costs:

Write-downs (3,892)

(1,772) (8,031) Gains (Losses)

on Sales (3,041)

804 (7,818) Maintenance, Taxes, Etc.

(2,369) (1,845) (4,753)

Total Foreclosed Property Costs (9,302)

(2,813) (20,602) Hedge Ineffectiveness

Gains 313 575 400

Securities Gains, Net 4 -

-Gains from Sale of Low Income Housing Tax Credits

728 - 682 Reclassification of

Acturial Gains and Losses and Prior Service Cost to OCI

2,245 - -Income Tax (Expense)

Benefit 3,264 402 (144,760)

Net Operating Income (Loss)

$ 9,901

$ (11,339) $ (184,854)

Partial Recovery of 2007 Fraud Loss - - 11,750

Net Income (Loss) $ 9,901

$ (11,339) $ (173,104)

Net Operating Income (Loss) Per Share $

.12 $ (.25) $ (9.87)

Net Income (Loss) 31

(In Thousands)

4Q11 3Q11 4Q10 Net Income (Loss)

$ 9,901

$ (11,339) $ (173,104)

Preferred Stock Dividends

(3,025) (3,019)

(2,586)

Net Income (Loss) Avail to Common Shareholders

$ 6,876 $ (14,358)

$ (175,690) Net Income (Loss) Per Share$ .12$

(.25)$ (9.25) Tangible Book Value

$ 6.47$ 6.61$ 14.80

Shares Outstanding (millions)

57.6 57.5 18.9

Capital Ratios

Well- Minimum

Capitalized Guideline DEC '11

SEP '11 JUN '11 Bank Tier 1 RBC

6 % 10 %

13.6 % 13.5 % 13.3 % Total RBC

10 11 14.8 14.8

15.1 Leverage 5

8 8.8 8.7 8.4

Holding Company

Tier 1

RBC 6

10 13.6

13.8 13.6 Total RBC

11 15.4 15.6 16.2

Leverage 5 8 8.8

8.8 8.5 Tier I Common RBC 4.5 7 8.2 8.2

8.3

Tangible Equity to Assets 8.2

8.4 7.9 Tangible

Common to Assets

5.4 5.7 5.6 (1)

(1) As of quarter-end (capital raise conversion)

United at a Glance 34

Assets $7.0 Billion Banks 27 Deposits $6.1 Billion Offices 106

Experienced Proven Leadership 35

Joined Years in UCBI Banking

Jimmy Tallent President & CEO 1984 37 Rex Schuette Chief Financial Officer 2001 34 David ShearrowChief Risk Officer200730 Craig MetzMarketing & Retail Banking200219

Regional Presidents:

Bill Gilbert North & Coastal Georgia 2000 35 Tim Schools North Carolina & Tennessee 201112 Glenn WhiteAtlanta200737

Business and Operating Model 36

“Community bank service, large bank resources”

Twenty-seven “community banks”

 Local CEOs with deep roots in their communities

 Resources of $7.0 billion bank

Service is point of differentiation

 #1 in Customer Satisfaction according to Customer Service Profiles

 J.D. Power Customer Service Champion

 Recognized 40 companies in the U.S.

 Only bank to be recognized

 Golden rule of banking

 “The Bank That SERVICE Built”

 Ongoing customer surveys

 95% satisfaction rate in 2011

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

Robust Demographics (fast growing markets) 37

Population Growth (%) Population Actual Projected Markets1 (in thousands) 2000 - 20102010 - 2015

North Georgia 394 23 % 7 % Atlanta MSA 5,611 32 10 Gainesville MSA 1913713 Coastal Georgia 373115 Western North Carolina 429124 East Tennessee 860146

Total Markets

Georgia 10,014 22 7 North Carolina 9,552 19 8 Tennessee 6,366125 United States 311,213114

¹ Population data is for 2010 and includes those markets where United takes deposits. Source: SNL

Market Share Opportunities 38

(excellent growth prospects)

Market

Deposits United Deposit

Markets (in billions) (1) Deposits (2) Banks Offices Share(1) Rank(1)

North Georgia $ 6.8 $ 2.0 11 23 33 % 1 Atlanta MSA 48.2 2.1103847 Gainesville MSA 2.5 .315143 Coastal Georgia 7.0 .42867 Western North Carolina 7.3 1.0 121133 East Tennessee 15.9 .3 211210

Total Markets $ 87.7 $ 6.1 27 106

¹ FDIC deposit market share and rank as of 6/11 for markets where United takes deposits. Source: SNL and FDIC.

2 Based on current quarter.

Leading Demographics 39

Total Assets 2010 - 2015 Population Rank Ticker Company(1) State ($ B) Growth (2)

1 CFR Cullen/Frost Bankers, Inc. TX $19.5 9.07%

2 WAL Western Alliance Bancorporation AZ 6.5 7.60

3 FCNCA First Citizens Bancshares, Inc. NC 21.0 7.41

4 GBCI Glacier Bancorp, Inc. MT 7.0 7.19

5 PRSP Prosperity Bancshares, Inc. TX 9.6 7.18

6 IBOC International Bancshares Corporation TX 11.6 7.06

7 UCBI United Community Banks, Inc. GA 7.0 7.06

8 TCBI Texas Capital Bancshares, Inc. TX 7.7 6.37

9 HBHC Hancock Holding Company MS 19.4 6.29

10 FCBN First Citizens Bancorporation, Inc. SC 8.3 6.05

11 FIBK First Interstate BancSystem, Inc. MT 7.3 5.93

12 BOKF BOK Financial Corporation OK 25.1 5.91

13 SNV Synovus Financial Corp. GA 28.3 4.84

14 STSA Sterling Financial Corporation WA 9.2 4.51

15 FHN First Horizon National Corporation TN 25.6 4.43

Note: Financial information as of September 30, 2011

(1) Includes publicly traded companies with assets between $5.0 – 50.0 billion as of September 30, 2011 (2) Population growth weighted by county (cumulative) Data Source: SNL Financial

Proactively Addressing Credit Environment 40

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: o Weekly past due meetings o Weekly NPA/ORE meetings o Quarterly criticized watch loan review meetings o Quarterly pass commercial and CRE portfolio review meetings

 Internal loan review of new credit relationships

Policy

 Ongoing enhancements to credit policy

 Periodic updates to portfolio limits

Performing Classified Loans 41

(in millions) 4Q11 3Q11 2Q11 1Q11

4Q10 LOANS BY CATEGORY

Commercial (Sec. by RE):

Owner Occupied $ 79 $ 69

$ 72 $ 75 $ 86 Income

Producing 64 65 46 45 71

Total Comm (Sec. by RE) 143 134 118 120

157 Commercial Construction 18 26 31 35

90 Commercial & Industrial 16 25 17 16 17

TOTAL COMMERCIAL 177

185 166 171 264

Consumer / Installment 3 3

3 2 3

Residential Construction 72 76 74 81 159 Residential Mortgage 76 77 70 69

86 LOANS$ 328$ 341$ 313$ 323$ 512

Business Mix Loans (at quarter-end) 42

4Q11 vs. (in millions) 4Q11 3Q11 2Q11

1Q11 4Q10 4Q10 LOANS BY CATEGORY

Commercial (Sec. by RE):

Owner Occupied $ 1,111 $ 1,037 $ 1,014

$ 994 $ 980 $ 131 Income Producing

711 734 728 698 781 (70) Total Comm (Sec. by

RE) 1,822 1,771 1,742 1,692 1,761 61 Commercial

Construction 164 169 195 213 297 (133) Commercial & Industrial

428 429 428 431 441 (13)

Total Commercial 2,414 2,369 2,365

2,336 2,499 (85)

Residential Construction 448 474 502

550 695 (247)

Residential Mortgage 1,135 1,150 1,177 1,187 1,279 (144) Consumer / Installment 113 117 119 121 131

(18) TOTAL LOANS$ 4,110$ 4,110$ 4,163$ 4,194$ 4,604$ (494)

Loans – Markets Served (at quarter-end) 43

4Q11 vs. (in millions) 4Q11 3Q11 2Q11

1Q11 4Q10 4Q10 LOANS BY MARKET

Atlanta MSA $ 1,220 $ 1,192 $ 1,188

$ 1,179 $ 1,310 $ (90) Gainesville MSA 265 272 275 282 312

(47) North Georgia 1,426 1,478 1,500 1,531 1,689

(263) Western North Carolina 597 607 626 640 702

(105) Coastal Georgia 346 316 325 312 335 11

East Tennessee

256 245 249 250 256 -

Total $ 4,110 $ 4,110 $ 4,163

$ 4,194 $ 4,604 $ (494)

Residential Construction – North Georgia 44

4Q11 vs. (in millions) 4Q11 3Q11 2Q11 1Q11

4Q10 4Q10

Land Loans

Developing Land $ 44 $ 51 $ 58

$ 62

$ 88 $ (44) Raw Land 26 25 25 27

40 (14) Lot Loans 118 124 129 131 159 (41)

Total 188 200 212 220

287 (99)

Construction Loans

Spec 12 15 18 25

31 (19) Sold 14 14 19 21

21 (7)

Total 26 29 37 46

52 (26) Total Res Construction $ 214$ 229$ 249$ 266$ 339$ (125)

Residential Construction – Atlanta MSA 45

4Q11 vs. (in millions) 4Q11 3Q11 2Q11 1Q11

4Q10 4Q10

Land Loans

Developing Land $ 17 $ 19 $ 20

$ 22 $ 30 $ (13) Raw Land 14 15 16 19 23 (9) Lot Loans 22 22 22 24 32 (10)

Total 53 56 58 65

85 (32)

Construction Loans

Spec 27 28 30 34

38 (11) Sold 6 8

9 11 10 (4)

Total 33 36 39 45

48 (15) Total Res Construction $ 86$ 92$ 97$ 110$ 133$ (47)

Business Mix Loans (at year-end) 46

(in millions) 2011 2010 2009 2008 2007

LOANS BY CATEGORY

Commercial (Sec. by RE) $ 1,822 $ 1,761

$ 1,779

$ 1,627 $ 1,476 Commercial Construction 164

297 363 500 527 Commercial & Industrial 428

441 390 410 418

Total Commercial 2,414 2,499 2,532

2,537 2,421

Residential Construction 448 695 1,050

1,479 1,829 Residential Mortgage 1,135 1,279 1,427 1,526 1,502

Consumer / Installment 113 131 142 163 177

TOTAL LOANS$ 4,110$ 4,604$ 5,151$ 5,705$ 5,929

Loans – Markets Served (at year-end) 47

(in millions) 2011 2010 2009 2008 2007 LOANS BY MARKET

Atlanta MSA $ 1,220 $ 1,310 $ 1,435 $ 1,706 $ 2,002 Gainesville MSA 265 312 390 420 399 North Georgia 1,426 1,689 1,884 2,040 2,060 Western North Carolina 597 702 772 810 806 Coastal Georgia 346 335 405 464 416 East Tennessee 256 256 265 265 246

Total $ 4,110 $ 4,604 $ 5,151 $ 5,705 $ 5,929

Lending – Credit Summary 48

(in millions)

Legal lending limit $156

House lending limit 20

Project lending limit 12 Top 25 relationships 414

Regional credit review – Standard underwriting

NPAs by Loan Category, Market, and Activity 49

Credit Quality (1)

Fourth Quarter 2011 Third Quarter 2011

Second Quarter 2011

Non-performing Foreclosed Total Non-performing

Foreclosed Total Non-performing

ForeclosedTotal (in thousands) Loans Properties NPAs Loans Properties NPAs

Loans Properties NPAs NPAs BY CATEGORY

Commercial (sec.by RE) $ 27,322 $ 9,745 $

37,067 $ 21,998 $ 8,880 $ 30,878 $ 17,764 $ 6,796 $

24,560 Commercial construction 16,655 3,336 19,991

11,370 5,862

17,232 2,782 6,764 9,546 Commercial & industrial

34,613 - 34,613 53,009 - 53,009

1,998 - 1,998 Total commercial 78,590 13,081

91,671 86,377 14,742

101,119 22,544 13,560 36,104 Residential construction 25,523 12,851 38,374 34,472 21,561

56,033 22,643 24,968 47,611 Residential mortgage 22,358 6,927 29,285 22,671 7,960

30,631 24,809 9,056 33,865 Consumer / installment

1,008 - 1,008 964 - 964 1,069

- 1,069 Total NPAs$ 127,479 $ 32,859 $ 160,338 $

144,484 $ 44,263 $ 188,747 $ 71,065 $ 47,584 $ 118,649

Balance as a % of

Unpaid Principal 71.3% 35.9% 59.3% 77.8%

33.4% 59.3% 64.5% 32.6% 46.3%

NPAs BY MARKET

Atlanta MSA $ 14,480 $ 6,169 $ 20,649 $ 13,350 $

12,971 $ 26,321 $ 14,700 $ 11,239 $ 25,939 Gainesville MSA 2,069 3,760 5,829 5,311 2,495

7,806 4,505 3,174 7,679 North Georgia 88,600

15,136 103,736 105,078 17,467

122,545 28,117 21,278 49,395 Western North Carolina 15,100 5,365 20,465 13,243 7,941

21,184 15,153 8,953 24,106 Coastal Georgia 5,248

1,620 6,868 5,600 2,354

7,954 5,357 2,564 7,921 East Tennessee 1,982 809 2,791 1,902 1,035

2,937 3,233 376 3,609 Total NPAs$ 127,479 $ 32,859 $ 160,338 $ 144,484 $ 44,263 $ 188,747 $ 71,065 $ 47,584 $ 118,649

NPA ACTIVITY

Beginning Balance $ 144,484 $ 44,263 $ 188,747 $ 71,065 $ 47,584 $ 118,649 $ 83,769 $ 54,378 $ 138,147 Loans placed on non-accrual 45,675 - 45,675 103,365 - 103,365 35,911 - 35,911 Payments received (1,884) - (1,884) (3,995) - (3,995) (7,702) - (7,702) Loan charge-offs (44,757) - (44,757) (15,335) - (15,335) (18,888) - (18,888) Foreclosures (16,039) 16,039 - (10,616) 10,616 - (22,025) 22,025 -Capitalized costs - 141 141 - 818 818 - 20 20 Note / property sales - (20,651) (20,651) - (13,787) (13,787) - (28,939) (28,939) Write downs - (3,893) (3,893) - (1,772) (1,772) - (3,118) (3,118) Net gains (losses) on sales - (3,040) (3,040) - 804 804 - 3,218 3,218 Ending Balance$ 127,479 $ 32,859 $ 160,338 $ 144,484 $ 44,263 $ 188,747 $ 71,065 $ 47,584 $ 118,649

(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.

Net Charge-offs by Category and Market 50

Credit Quality (1)

Fourth Quarter 2011 Third Quarter 2011

Second Quarter 2011 (2) Net Charge-

Net Charge- Net Charge-Offs toOffs toOffs to NetAverageNetAverageNetAverage (in thousands)

Charge-Offs Loans (3) Charge-Offs Loans (3) Charge-Offs Loans (3)

NET CHARGE-OFFS BY CATEGORY

Commercial (sec.by RE) $ 4,962 1.09 % $ 2,192 .50 % $ 3,259 .76 % Commercial

construction 3,318 7.88 1,625 3.54

869 1.70 Commercial & industrial 18,940 17.47

420 .39

523 .49 Total commercial 27,220 4.51 4,237

.71 4,651 .79 Residential construction 12,090 10.36 6,381 5.19

6,629 5.04 Residential mortgage 5,887 2.04

6,110 2.09 4,589 1.55 Consumer / installment 427 1.47 818 2.75

614 2.04 Total$ 45,624 4.39$ 17,546 1.68$

16,483 1.58

NET CHARGE-OFFS BY MARKET

Atlanta MSA $ 4,195 1.37 %

$ 2,813 .94 %

$ 2,920 .99 % Gainesville MSA 2,572

3.84 1,804 2.64

2,318 3.36 North Georgia 34,970 9.46

8,124 2.16 6,575 1.72 Western North Carolina 3,180 2.10 3,608 2.31

3,522 2.21 Coastal Georgia 335 .41

709 .88 815 1.02 East Tennessee 372 .59 488 .78

333 .54 Total$ 45,624 4.39$ 17,546 1.68$ 16,483 1.58

(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) Includes charge-offs on loans related to United's previously announced asset disposition plan. Such charge-offs severely distorted charge off rates for the first and second quarters of 2011. A separate schedule has been included in this earnings release presenting the components of net charge-offs by loan category and geographic market for the first and second quarters of 2011.

(3) Annualized.

Net Charge-offs by Category and Market 51

Asset Disposition Plan as of March 31, 2011

Credit Quality - Net Charge-Offs First Quarter 2011 (1)

Asset Disposition Plan

Bulk Loan Sale (2) First Quarter Performing

Nonperforming Other Bulk Loan Foreclosure

Other Net2011 Net Charge-(in thousands) Loans Loans Sales (3)

Charge-Offs (4) Charge-Offs Offs NET CHARGE-OFFS BY CATEGORY

Commercial (sec. by RE) $ 29,451 $ 11,091

$ 3,318 $ 1,905 $ 2,842 $ 48,607 Commercial

construction 32,530 15,328 292 419

1,146 49,715 Commercial & industrial 365

2,303 859 - 513 4,040

Total commercial 62,346 28,722 4,469

2,324 4,501 102,362 Residential construction 43,018

23,459 3,325 11,693

10,643 92,138 Residential mortgage 13,917

14,263 1,676 1,538

4,989 36,383 Consumer / installment 86

168 30 24

383 691 Total$ 119,367 $ 66,612 $

9,500 $ 15,579 $ 20,516 $ 231,574

NET CHARGE-OFFS BY MARKET

Atlanta MSA $ 37,186 $ 8,545 $ 1,428 $

6,034 $ 3,296 $ 56,489 Gainesville MSA 3,563 2,442 957 700

954 8,616 North Georgia 57,969 47,699

2,508 6,585

8,544 123,305 Western North Carolina 11,138

4,743 2,415 1,402

6,749 26,447 Coastal Georgia 6,835 2,180

2,013 634

341 12,003 East Tennessee 2,676 1,003 179 224

632 4,714 Total$ 119,367 $ 66,612 $ 9,500 $ 15,579 $ 20,516 $ 231,574

(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) Charge-offs totaling $186 million were recognized on the bulk loan sale in the first quarter of 2011. The loans were transferred to the loans held for sale category in anticipation of the second quarter bulk loan sale that was completed on April 18, 2011.

(3) Losses on smaller bulk sale transactions completed during the first quarter of 2011.

(4) Loan charge-offs recognized in the first quarter of 2011 related to loans transferred to foreclosed properties. Such charge-offs were elevated in the first quarter as a result of the asset disposition plan, which called for aggressive write downs to expedite sales in the second and third quarters of 2011.

Credit Quality – Bulk Loan Sale Summary 52

as of March 31, 2011

Credit Quality - Bulk Loan Sale Summary (1)

Performing Loans Nonperforming Loans

Total Loans

Carrying Charge- Loans Held Carrying

Charge- Loans Held Carrying Charge-

Loans Held (in thousands) Amount (2) Offs (3) for Sale (4) Amount (2) Offs (3)

for Sale (4) Amount (2) Offs (3) for Sale (4) BY CATEGORY

Commercial (sec. by RE) $ 40,902 $ 29,451 $ 11,451 $ 17,202 $ 11,090 $

6,112 $ 58,104 $ 40,541 $ 17,563 Commercial construction 45,490 32,530 12,960 22,440 15,328 7,112 67,930

47,858 20,072 Commercial & industrial 504 365 139

3,397 2,302 1,095 3,901

2,667 1,234 Total commercial 86,896 62,346 24,550 43,039

28,720 14,319 129,935

91,066 38,869 Residential construction 59,747 43,018 16,729 35,508

23,459 12,049 95,255

66,477 28,778 Residential mortgage 19,342 13,917 5,425 21,716

14,262 7,454 41,058

28,179 12,879 Consumer / installment 120 86 34 238

169 69 358

255 103 Total$ 166,105 $ 119,367 $ 46,738 $ 100,501 $ 66,610 $

33,891 $ 266,606 $ 185,977 $ 80,629

BY MARKET

Atlanta MSA $ 51,647 $ 37,186 $ 14,461 $ 13,755 $ 8,545 $

5,210 $ 65,402 $ 45,731 $ 19,671 Gainesville MSA 4,949 3,563 1,386 3,695 2,442 1,253 8,644

6,005 2,639 North Georgia 80,831 57,969 22,862 70,900

47,698 23,202 151,731

105,667 46,064 Western North Carolina 15,468 11,138

4,330 7,228 4,743 2,485

22,696 15,881 6,815 Coastal Georgia 9,493 6,835

2,658 3,527 2,179 1,348

13,020 9,014 4,006 East Tennessee 3,717 2,676 1,041 1,396 1,003

393 5,113 3,679 1,434 Total$ 166,105

$ 119,367 $ 46,738 $ 100,501 $ 66,610 $ 33,891 $ 266,606

$ 185,977 $ 80,629

(1) This schedule presents a summary of classified loans included in the bulk loan sale transaction that closed on April 18, 2011.

(2) This column represents the book value, or carrying amount, of the loans prior to charge offs to mark loans to expected proceeds from sale.

(3) This column represents the charge-offs required to adjust the loan balances to the expected proceeds from the sale based on indicative bids received from prospective buyers, including principal payments received or committed advances made after the cutoff date through March 31, 2011 that are part of the settlement.

(4) This column represents the expected proceeds from the bulk sale based on indicative bids received from prospective buyers and equals the balance shown on the consolidated balance sheet as loans held for sale.

Loans / Deposits – Liquidity 53

(in millions) Variance 4Q11 3Q11 4Q10

vs 3Q11 vs 4Q10

Loans $ 4,110 $ 4,110 $ 4,604

$ - $ (494)

Core (DDA, MMDA, Savings) $ 2,902

$ 2,906

$ 2,636 $ (4) $ 266 Public Funds 884 635 725 249 159 CD's 2,133 2,254 2,431 (121) (298) Total Deposits

(excl Brokered)$ 5,919$ 5,795$ 5,792$ 124$ 127

Loan to Deposit Ratio 69% 71% 79%

Investment Securities:

Available for Sale $ 1,227 $ 1,173 $ 1,120

$ 54 $ 107 Held to Maturity 330 354 266

(24) 64 Total Investment Securities 1,557 1,527 1,386 30 171 Floating Rate CMD, Bonds 563 596 104 (33) 459

Total Securities Portfolio 2,120 2,123 1,490 (3) 630

Percent of Assets (Excludes Floaters) 22% 22% 19%

Commercial & Short-Term Paper $ 185 $ - $ 442 $ 185

$ (257) Floating Rate Securities 563 596 104 (33)

459 Excess Fed and Other Cash 140 230 112 (90)

28 Total Excess Liquidity$ 888$ 826$ 658$

62$ 230

Wholesale Borrowings - Liquidity 54

(in millions)

Unused Variance Capacity 4Q11 3Q11

4Q10 vs 3Q11 vs 4Q10

Wholesale Borrowings

Brokered Deposits $ 1,567 $ 179

$ 210

$ 677 $ (31) $ (498) FHLB

1,058 41 41 55 - (14) Fed Funds

50 - - - - -Other Wholesale

453 103 103 101 - 2

Total $ 3,128 $ 323 $ 354

$ 833 $ (31) $ (510)

Long-Term Debt

Sub-Debt $ 65 $ 65

$ 95 $ - $ (30) Trust Preferred Securities 55 55 55 -

Total Long-Term Debt $ 120 $ 120

$ 150 $ - $ (30)

Business Mix – Deposits (at quarter-end) 55

(in millions)

4Q11 vs. DEPOSITS BY CATEGORY 4Q11 3Q11

2Q11 1Q11 4Q10 4Q10

Demand & Now $ 1,674 $ 1,686 $ 1,620

$ 1,576

$ 1,573 $ 101 MMDA & Savings 1,228 1,220 1,174

1,149 1,063 165

Core Transaction Deposits 2,902 2,906

2,794

2,725 2,636 266

Time < $100,000 1,326 1,387 1,503

1,570 1,491 (165) Public Deposits 844

597 605 628 663 181

Total Core Deposits 5,072 4,890 4,902

4,923 4,790 282

Time > $100,000 807 867 936

946 940 (133) Public Deposits 40

38 44 44 62 (22)

Total Customer Deposits 5,919 5,795

5,882

5,913 5,792 127

Brokered Deposits 179 210 301

685 677 (498)

Total Deposits $ 6,098 $ 6,005 $ 6,183

$ 6,598 $ 6,469 $ (371)

Core Transaction Deposits 56

Geographic Diversity

4Q 10 4Q 11 Core Transactions / Total Deposits (%)

$ in millions 4Q11 4Q10

Eastern Tennessee

Atlanta MSA 51.0 % 50.3 % North Georgia 44.0 39.5

Coastal Georgia

Western NC 52.9 48.2 Gainesville MSA 56.8 51.2

Gainesville MSA

Coastal GA 43.2 39.5

Western North Carolina East TN 53.2 44.1

Total 49.0 % 45.5 %

North Georgia

Atlanta MSA

NPA Sale in 2Q10 57

Sold $103 Million NPA’s – With a $65 Million Capital Option and Warrant

 Completed sale on April 30, 2010

 Accelerates disposition of the more illiquid assets

CATEGORY (in millions) MARKETS (in millions)

Commercial $ 29.4 Atlanta $ 10.7 Commercial Construction 11.3 Gainesville 13.5 Residential Construction 62.4N. Georgia 50.0 Total$ 103.1Coastal Georgia 7.6 North Carolina 21.3

$ 103.1

NPA Sale – Fair Value Accounting 2Q10 58

Fair Value Accounting – Warrant / Option to Purchase Equity

 Increase to Capital Surplus - $39.8 million

 Pre-tax expense charge - $45.3 million; after-tax cost - $30.0 million

 GAAP Capital +$9.8million – Slight Negative to “Regulatory Capital” (DTA)

(in millions)

Income Capital Statement Surplus

Fair Value of Warrants / Option $ (39.8) $ 39.8 Loan Discount (3.5% to 5.8%) (4.5) Closing Costs (1.0) Total Charge to Expense (45.3) Tax Benefit 15.3 Impact on Net Loss$ (30.0)$ 39.8

Impact on GAAP Equity $ +9.8

Non-GAAP Reconciliation Tables 59

(in thousands except EPS)

Operating Earnings to GAAP Earnings Reconciliation

4Q11 3Q11 4Q10

Core net interest revenue reconciliation

Core net interest revenue $ 59,050 $ 59,281 $ 60,132 Taxable equivalent adjustment (423) (420) (497) Net interest revenue (GAAP)$ 58,627$ 58,861$ 59,635

Core fee revenue reconciliation

Core fee revenue $ 11,442 $ 11,309 $ 11,148 Securities gains, net 4 - -Gains from sales of low income housing tax credits 728 - 682 Hedge ineffectiveness gains 313 575 400 Mark to market on deferred compensation plan assets 180 (386) 212 Fee revenue (GAAP)$ 12,667$ 11,498$ 12,442

Core operating expense reconciliation

Core operating expense $ 43,843 $ 44,093 $ 44,104 Foreclosed property expense 9,302 2,813 20,602 Mark to market on deferred compensation plan liability 180 (386) 212 Reclassification of pension plan acturial gains and losses and unamortized prior service costs to other comprehensive income (2,245) - - Operating expense (GAAP)$ 51,080$ 46,520$ 64,918

Non-GAAP Reconciliation Tables 60

Operating Earnings to GAAP Earnings Reconciliation

4Q11 3Q11 4Q10

Net interest margin - pre credit reconciliation

Net interest margin - pre credit

3.81 % 3.84 % 4.05 % Effect of interest

reversals, lost interest, and carry costs of NPAs (.30)

(.29) (.47)

Net interest margin 3.51

3.55 3.58

Tangible common equity and tangible equity to tangible assets

reconciliation

Tangible common equity to tangible assets

5.38 % 5.65 % 5.22 %

Effect of preferred equity 2.78 2.77 2.42

Tangible equity to tangible assets 8.16

8.42 7.64

Effect of goodwill and other intangibles .12

.13 .16

Equity to assets (GAAP) 8.28 %

8.55 % 7.80 %

Tangible common equity to risk-weighted assets reconciliation

Tangible common equity to risk-weighted assets

8.22 % 8.52 % 5.64 %

Effect of preferred equity

4.27 4.33 3.53

Tangible equity to risk weighted assets

12.49

12.85 9.17

Effect of other comprehensive income (.03)

(.29) (.42)

Effect of trust preferred 1.18 1.19

1.06

Tier I capital ratio (Regulatory)

13.64 % 13.75 % 9.81 %

Analyst Coverage 61

FBR Capital Raymond James & Assoc.

(Market Perform - Jul 28, 2011) (Market Perform - Oct 31, 2011)

FIG Partners Sandler O'Neill & Partners

(Market Perform - Jan 6, 2012) (Hold, Jan 6, 2012)

Guggenheim Securities, LLC Stephens, Inc.

(Neutral - Jan 6, 2012) (Equal Weight - Jan 23, 2012)

Keefe, Bruyette & Woods SunTrust Robinson Humphrey

(Market Perform - Jan 6, 2012) (Neutral - Jan 6, 2012)

Macquarie Capital (USA)

(Neutral - Jan 6, 2012)

United Community Banks, Inc.

Investor Presentation

Fourth Quarter 2011