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):

October 25, 2012

United Community Banks, Inc.

(Exact name of registrant as specified in its charter)

Georgia	No. 001-35095	No. 58-180-7304
(State or other jurisdiction of	(Commission File Number)	(IRS Employer
incorporation)		Identification No.)

125 Highway 515 East

Blairsville, Georgia  30512

(Address of principal executive offices)

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 Operations and Financial Condition.

On October 25, 2012, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the quarter ended September 30, 2012 (the “News Release”).  The News Release, including financial schedules, is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.  In connection with issuing the News Release, on October 25, 2012 at 11:00 a.m. EDT, 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 September 30, 2012 Investor Presentation (the “Investor Presentation”), which will be posted to the Registrant’s website at www.ucbi.com.  The Investor Presentation is attached as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference. The presentation of the Registrant’s financial results includes 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 core earnings measures because it believes they are useful for evaluating the Registrant’s operations and performance over periods of time, and uses 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.  Core earnings measures exclude credit related costs such as the provision for loan losses, certain expenses and charges related to the Registrant’s 2011 asset disposition plans in the first quarter of 2011 and foreclosed property expense, securities gains and losses, income taxes and other items of a non-recurring nature.  Core earnings measures 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. Core earnings measures should be viewed in addition to, and not as an alternative to or substitute for, the Registrant’s performance measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Item 9.01	Financial Statements and Exhibits.
(d)	Exhibits
Exhibit No.	Description
99.1	Press Release, dated October 25, 2012
99.2	Investor Presentation, Third Quarter 2012

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.

	UNITED COMMUNITY BANKS, INC.
	By:	/s/ Rex S. Schuette
		Rex S. Schuette
		Executive Vice President and Chief Financial Officer
Date:  October 25, 2012

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

EARNINGS OF $10.6 MILLION FOR THIRD QUARTER 2012

● Net income of $10.6 million, or 13 cents per share

● Loans up $18.6 million from second quarter, and $28 million from a year ago

● Core transaction deposits up $72 million in third quarter, or 9 percent annualized

● Nonperforming assets decline $3.8 million, or 3 percent, from second quarter

● Capital position sound

BLAIRSVILLE, GA – October 25, 2012 – United Community Banks, Inc. (NASDAQ: UCBI) today reported net income of $10.6 million, or 13 cents per share, for the third quarter of 2012; and net income of $28.6 million, or 34 cents per share, year-to-date.  The results for the third quarter and first nine months of 2012 reflect modest loan growth, strong core transaction deposit growth, increases in fee revenue and lower operating expenses compared with the same periods a year ago.

“United Community Banks is capitalizing on business opportunities, strengthening its financial foundation and building long-term value for customers, employees and shareholders,” said Jimmy Tallent, president and chief executive officer.  “Our third quarter was successful by nearly every measure, and represents the fifth profitable quarter since our 2011 capital transaction and problem asset disposition plan execution.”

1

Tallent continued, “We achieved both positive linked-quarter and year-over-year loan growth.  Our credit measures continue their positive trend, with nonperforming assets down $3.8 million, or 3 percent, from the second quarter.  At the same time we reduced expenses and improved operating efficiency.  We expect profitability to continue from improved efficiency and further expense reductions, as well as revenue enhancements from prudent growth of our business mix of loans and deposits.  We are gaining momentum and achieving success.”

Tallent said, “Continued expansion of quality loan and deposit relationships remains a top priority.  Total loans were $4.138 billion at quarter-end, up $18.6 million from the second quarter and up $28 million from a year earlier, reflecting the first annual loan growth in over four years.  We are strategically growing the portfolio by focusing on full-service relationships with small-to-medium-sized businesses.  During the third quarter we added $218 million in new loan commitments, of which $137 million were funded by quarter-end.  We also grew core transaction deposits by $72 million, contributing to an especially strong $236 million total in the first nine months.  Annualized, the linked-quarter growth rate is 9 percent and year-to-date is 11 percent.”

The third quarter provision for loan losses was $15.5 million, down from $36 million a year ago and $18 million in the second quarter.  The third quarter 2011 provision for loan losses included $25 million specifically related to United’s largest lending relationship.  Third quarter net charge-offs were $20.6 million, compared to $18.9 million in the second quarter of 2012 and $17.5 million in the third quarter of 2011.  Tallent added, “Net charge-offs of $20.6 million this quarter included losses from the sale of $13 million in performing classified loans that had $3.6 million in specific reserves at the end of the second quarter.  The losses on the sold loans account for most of the difference between our provision for loan losses and charge-offs this quarter.”

“Overall credit trends continued to improve this quarter with the exception of a slight increase in net charge-offs,” Tallent said.   “Most notably our performing classified loans, which are defined as accruing substandard for regulatory purposes, decreased $41.1 million in the third quarter, or 13 percent, to $282.5 million at quarter-end.  Nonperforming assets were $142 million in the third quarter, down $3.8 million from the second quarter. Nonperforming asset levels are impacted positively or negatively by the inflow of new nonperforming loans and our ability to liquidate foreclosed properties.  In the third quarter, the inflow of new nonperforming loans was $30.5 million compared with $29.4 million in the second quarter and $103 million a year ago.  Also, loans past due 30 to 89 days increased slightly from .65 percent of outstanding loans in the second quarter to .68 percent in the third quarter.”

2

Taxable equivalent net interest revenue totaled $57.4 million, up $535,000 from the second quarter of 2012 but down $1.91 million from the third quarter of 2011.  “The decrease from last year primarily reflects lower yields on both our investment securities and loan portfolios,” stated Tallent.  “Our investment securities interest decline was due to reinvestment at record low rates, combined with $179 million in lower average balances for the quarter.  We continue to look for reinvestment opportunities with a focus on floating-rate securities to alleviate market and duration risk.  Floating-rate securities now account for 39 percent of the total investment securities portfolio.  The lower yield on our loan portfolio reflects ongoing pricing pressure on new and reviewed loans.”

Taxable equivalent net interest margin of 3.60 percent was up 17 basis points from last quarter and 5 basis points from a year ago.  The increase in the third quarter was primarily due to our second quarter balance sheet restructuring and the resulting smaller balance sheet.

Fee revenue was $13.8 million for the third quarter, compared to $12.9 million for the second quarter and $11.5 million a year ago.  The increase from prior quarters was primarily due to the higher level of mortgage loans closed and related mortgage fees.  Mortgage refinancing activity continued to accelerate through the third quarter as mortgage rates fell to record low levels.  Closed mortgage loans totaled $108 million in the third quarter of 2012 compared with $79.8 million in the second quarter and $57.4 million in the third quarter of 2011.  Service charges and fees on deposit accounts were also up from a year ago due to new fees on low balance deposit accounts that became effective in the first quarter of 2012, more than offsetting lower overdraft fees.

3

Other fee revenue of $2.56 million was up $930,000 from the second quarter of 2012 and $579,000 from the third quarter of 2011, primarily related to fees on our new customer derivatives product and non-core items.  In the third quarter of 2012, United earned $278,000 in net fees on customer derivative transactions through its recently initiated back-to-back swap program on fixed rate commercial loans.  The non-core other fee revenue items in the third quarter included $608,000 in hedge ineffectiveness gains, compared with $180,000 in hedge ineffectiveness losses in the second quarter of 2012 and $575,000 in hedge ineffectiveness gains in the third quarter of 2011.  Another non-core item relates to net gains or losses on United’s deferred compensation plan assets.  In the third quarter of 2012, United had $153,000 in gains on deferred compensation plan assets compared with $386,000 in losses a year ago and $8,000 in losses in the second quarter of 2012.  Gains and losses on deferred compensation plan assets included in fee revenue are directly offset by losses or gains on United’s deferred compensation plan liabilities that increase or decrease salaries and employee benefit costs each quarter.

Operating expenses, excluding foreclosed property costs, were $41.1 million for the third quarter of 2012 compared to $42.5 million for the second quarter and $43.7 million a year ago.  Reduced staff levels and related costs were the primary drivers of the decrease from both periods, with 22 fewer staff positions compared to the second quarter and 170 fewer from a year ago.  Most other expense categories were down as well, reflecting efforts to improve operating efficiency.

Foreclosed property costs for the third quarter of 2012 were $3.7 million, compared to $1.9 million in the second quarter and $2.8 million a year ago.  Third quarter 2012 costs included $962,000 for maintenance and $2.7 million in net losses and write-downs.  For the second quarter, foreclosed property costs included $1.1 million in maintenance and $739,000 in net losses and write-downs.  Third quarter 2011 costs included $1.8 million in maintenance and $968,000 in net losses and write-downs.  The rise this quarter in net losses and write-downs was due primarily to re-appraisals of properties held for sale.

As of September 30, 2012, capital ratios were as follows: Tier 1 Risk-Based of 14.3 percent; Tier 1 Leverage of 9.8 percent; and Total Risk-Based of 15.8 percent.  The Tier 1 Common Risk-Based ratio was 8.8 percent and the tangible equity-to-assets ratio was 8.7 percent.

4

“We have made significant progress on all fronts to position us as the customer service leader in financial services,” Tallent said.  “This progress includes successfully recapitalizing the company, aggressively addressing our credit challenges, and rebalancing our loan portfolio for a more favorable risk profile going forward.  We have also made significant progress in building on our already strong deposit base and improving operating efficiency.”

Tallent noted the recent addition of Lynn Harton, who brings to United 29 years of executive banking experience, as chief operating officer.  “Lynn has earned a high level of respect in our industry and we are delighted to have him on board,” Tallent said.  “We also strengthened our board of directors earlier this year with the addition of two experienced business, risk management and capital markets professionals.  With this added depth and expertise, coupled with our exceptional bankers and their documented outstanding level of customer service, we are well positioned with the right people, strategies, products, and business model to be the financial services leader in our markets.”

Conference Call

United will hold a conference call today, Thursday, October 25, 2012, at 11 a.m. ET to discuss the contents of this news release and to share business highlights for the quarter.  To access the call, dial (877) 380-5665 and use the conference number 36390832.  The conference call also will be webcast and can be accessed by selecting ‘Calendar of Events’ within the Investor Relations section of United’s website at www.ucbi.com.

About United Community Banks, Inc.

Headquartered in Blairsville, United Community Banks, Inc. is the third-largest bank holding company in Georgia. United has assets of $6.7 billion and operates 27 community banks with 104 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina and east Tennessee.  United specializes in providing personalized community banking services to individuals and small to mid-size businesses and also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United’s common stock is listed on the Nasdaq Global Select Market under the symbol UCBI.  Additional information may be found at United’s website at www.ucbi.com.

5

Safe Harbor

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

# # #

6

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Selected Financial Information

																Third
	2012									2011						Quarter			For the Nine						YTD
(in thousands, except per share	Third			Second			First			Fourth			Third			2012-2011			Months Ended						2012-2011
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			Change			2012			2011			Change
INCOME SUMMARY
Interest revenue	$	65,978		$	66,780		$	70,221		$	71,905		$	74,543					$	202,979		$	227,439
Interest expense		8,607			9,944			11,357			12,855			15,262						29,908			52,820
Net interest revenue		57,371			56,836			58,864			59,050			59,281			(3	)%		173,071			174,619			(1	)%
Provision for loan losses		15,500			18,000			15,000			14,000			36,000						48,500			237,000
Fee revenue		13,764			12,867			15,379			12,667			11,498			20			42,010			37,241			13
Total revenue		55,635			51,703			59,243			57,717			34,779						166,581			(25,140	)
Operating expenses		44,783			44,310			46,955			51,080			46,520			(4	)		136,048			210,519			(35	)
Income (loss) before income taxes		10,852			7,393			12,288			6,637			(11,741	)					30,533			(235,659	)
Income tax expense (benefit)		284			894			760			(3,264	)		(402	)					1,938			988
Net income (loss)		10,568			6,499			11,528			9,901			(11,339	)					28,595			(236,647	)
Preferred dividends and discount accretion		3,041			3,032			3,030			3,025			3,019						9,103			8,813
Net income (loss) available to common shareholders	$	7,527		$	3,467		$	8,498		$	6,876		$	(14,358	)				$	19,492		$	(245,460	)
PERFORMANCE MEASURES
Per common share:
Diluted income (loss)	$	.13		$	.06		$	.15		$	.12		$	(.25	)				$	.34		$	(7.23	)
Book value		6.75			6.61			6.68			6.62			6.77			-			6.75			6.77			-
Tangible book value (2)		6.64			6.48			6.54			6.47			6.61			-			6.64			6.61			-
Key performance ratios:
Return on equity (1)(3)		7.43	%		3.51	%		8.78	%		7.40	%		(15.06	)%					6.57	%		(151.32	)%
Return on assets (3)		.63			.37			.66			.56			(.64	)					.53			(4.37	)
Net interest margin (3)		3.60			3.43			3.53			3.51			3.55						3.52			3.42
Efficiency ratio		62.95			63.84			63.31			71.23			65.73						63.36			99.39
Equity to assets		8.75			8.33			8.19			8.28			8.55						8.42			7.58
Tangible equity to assets (2)		8.66			8.24			8.08			8.16			8.42						8.32			7.47
Tangible common equity to assets (2)		5.73			5.45			5.33			5.38			5.65						5.50			3.23
Tangible common equity to risk-weighted assets (2)		8.44			8.37			8.21			8.25			8.52						8.44			8.52
ASSET QUALITY *
Non-performing loans	$	115,001		$	115,340		$	129,704		$	127,479		$	144,484					$	115,001		$	144,484
Foreclosed properties		26,958			30,421			31,887			32,859			44,263						26,958			44,263
Total non-performing assets (NPAs)		141,959			145,761			161,591			160,338			188,747						141,959			188,747
Allowance for loan losses		107,642			112,705			113,601			114,468			146,092						107,642			146,092
Net charge-offs		20,563			18,896			15,867			45,624			17,546						55,326			265,603
Allowance for loan losses to loans		2.60	%		2.74	%		2.75	%		2.79	%		3.55	%					2.60	%		3.55	%
Net charge-offs to average loans (3)		1.99			1.85			1.55			4.39			1.68						1.80			8.28
NPAs to loans and foreclosed properties		3.41			3.51			3.88			3.87			4.54						3.41			4.54
NPAs to total assets		2.12			2.16			2.25			2.30			2.74						2.12			2.74
AVERAGE BALANCES ($ in millions)
Loans	$	4,147		$	4,156		$	4,168		$	4,175		$	4,194			(1	)	$	4,157		$	4,352			(4	)
Investment securities		1,971			2,145			2,153			2,141			2,150			(8	)		2,089			1,952			7
Earning assets		6,346			6,665			6,700			6,688			6,630			(4	)		6,569			6,817			(4	)
Total assets		6,648			6,993			7,045			7,019			7,000			(5	)		6,894			7,246			(5	)
Deposits		5,789			5,853			6,028			6,115			6,061			(4	)		5,890			6,329			(7	)
Shareholders’ equity		582			583			577			581			598			(3	)		580			549			6
Common shares - basic (thousands)		57,880			57,840			57,764			57,646			57,599						57,826			33,973
Common shares - diluted (thousands)		57,880			57,840			57,764			57,646			57,599						57,826			33,973
AT PERIOD END ($ in millions)
Loans *	$	4,138		$	4,119		$	4,128		$	4,110		$	4,110			1		$	4,138		$	4,110			1
Investment securities		2,025			1,984			2,202			2,120			2,123			(5	)		2,025			2,123			(5	)
Total assets		6,699			6,737			7,174			6,983			6,894			(3	)		6,699			6,894			(3	)
Deposits		5,823			5,822			6,001			6,098			6,005			(3	)		5,823			6,005			(3	)
Shareholders’ equity		585			576			580			575			583			-			585			583			-
Common shares outstanding (thousands)		57,710			57,641			57,603			57,561			57,510						57,710			57,510

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

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

UNITED COMMUNITY BANKS, INC.

Non-GAAP Performance Measures Reconciliation

Selected Financial Information

	2012									2011						For the Nine Months Ended
(in thousands, except per share	Third			Second			First			Fourth			Third
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			2012			2011
Interest revenue reconciliation
Interest revenue - taxable equivalent	$	65,978		$	66,780		$	70,221		$	71,905		$	74,543		$	202,979		$	227,439
Taxable equivalent adjustment		(419	)		(444	)		(446	)		(423	)		(420	)		(1,309	)		(1,284	)
Interest revenue (GAAP)	$	65,559		$	66,336		$	69,775		$	71,482		$	74,123		$	201,670		$	226,155
Net interest revenue reconciliation
Net interest revenue - taxable equivalent	$	57,371		$	56,836		$	58,864		$	59,050		$	59,281		$	173,071		$	174,619
Taxable equivalent adjustment		(419	)		(444	)		(446	)		(423	)		(420	)		(1,309	)		(1,284	)
Net interest revenue (GAAP)	$	56,952		$	56,392		$	58,418		$	58,627		$	58,861		$	171,762		$	173,335
Total revenue reconciliation
Total operating revenue	$	55,635		$	51,703		$	59,243		$	57,717		$	34,779		$	166,581		$	(25,140	)
Taxable equivalent adjustment		(419	)		(444	)		(446	)		(423	)		(420	)		(1,309	)		(1,284	)
Total revenue (GAAP)	$	55,216		$	51,259		$	58,797		$	57,294		$	34,359		$	165,272		$	(26,424	)
Income (loss) before taxes reconciliation
Income (loss) before taxes	$	10,852		$	7,393		$	12,288		$	6,637		$	(11,741	)	$	30,533		$	(235,659	)
Taxable equivalent adjustment		(419	)		(444	)		(446	)		(423	)		(420	)		(1,309	)		(1,284	)
Income (loss) before taxes (GAAP)	$	10,433		$	6,949		$	11,842		$	6,214		$	(12,161	)	$	29,224		$	(236,943	)
Income tax (benefit) expense reconciliation
Income tax (benefit) expense	$	284		$	894		$	760		$	(3,264	)	$	(402	)	$	1,938		$	988
Taxable equivalent adjustment		(419	)		(444	)		(446	)		(423	)		(420	)		(1,309	)		(1,284	)
Income tax (benefit) expense (GAAP)	$	(135	)	$	450		$	314		$	(3,687	)	$	(822	)	$	629		$	(296	)
Book value per common share reconciliation
Tangible book value per common share	$	6.64		$	6.48		$	6.54		$	6.47		$	6.61		$	6.64		$	6.61
Effect of goodwill and other intangibles		.11			.13			.14			.15			.16			.11			.16
Book value per common share (GAAP)	$	6.75		$	6.61		$	6.68		$	6.62		$	6.77		$	6.75		$	6.77
Average equity to assets reconciliation
Tangible common equity to assets		5.73	%		5.45	%		5.33	%		5.38	%		5.65	%		5.50	%		3.23	%
Effect of preferred equity		2.93			2.79			2.75			2.78			2.77			2.82			4.24
Tangible equity to assets		8.66			8.24			8.08			8.16			8.42			8.32			7.47
Effect of goodwill and other intangibles		.09			.09			.11			.12			.13			.10			.11
Equity to assets (GAAP)		8.75	%		8.33	%		8.19	%		8.28	%		8.55	%		8.42	%		7.58	%
Tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets		8.44	%		8.37	%		8.21	%		8.25	%		8.52	%		8.44	%		8.52	%
Effect of other comprehensive income		.36			.28			.10			(.03	)		(.29	)		.36			(.29	)
Effect of trust preferred		1.17			1.19			1.15			1.18			1.19			1.17			1.19
Effect of preferred equity		4.29			4.35			4.23			4.29			4.33			4.29			4.33
Tier I capital ratio (Regulatory)		14.26	%		14.19	%		13.69	%		13.69	%		13.75	%		14.26	%		13.75	%

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Period-End (1)

	2012						2011				Linked Quarter Change			Year over Year Change
	Third		Second		First		Fourth		Third
(in millions)	Quarter		Quarter		Quarter		Quarter		Quarter
LOANS BY CATEGORY
Commercial (sec.by RE)	$	1,819	$	1,837	$	1,843	$	1,822	$	1,771	$	(18	)	$	48
Commercial & industrial		460		450		440		428		429		10			31
Commercial construction		161		169		167		164		169		(8	)		(8	)
Total commercial		2,440		2,456		2,450		2,414		2,369		(16	)		71
Residential mortgage		1,174		1,128		1,131		1,135		1,150		46			24
Residential construction		389		409		436		448		474		(20	)		(85	)
Consumer installment		135		126		111		113		117		9			18
Total loans	$	4,138	$	4,119	$	4,128	$	4,110	$	4,110		19			28
LOANS BY MARKET
North Georgia	$	1,383	$	1,387	$	1,408	$	1,426	$	1,478		(4	)		(95	)
Atlanta MSA		1,257		1,252		1,239		1,220		1,192		5			65
North Carolina		579		576		588		597		607		3			(28	)
Coastal Georgia		380		369		366		346		316		11			64
Gainesville MSA		256		259		262		265		272		(3	)		(16	)
East Tennessee		283		276		265		256		245		7			38
Total loans	$	4,138	$	4,119	$	4,128	$	4,110	$	4,110		19			28
RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development	$	71	$	78	$	86	$	88	$	97		(7	)		(26	)
Land loans		41		45		57		61		60		(4	)		(19	)
Lot loans		196		203		204		207		216		(7	)		(20	)
Total		308		326		347		356		373		(18	)		(65	)
House loans
Spec		44		49		57		59		64		(5	)		(20	)
Sold		37		34		32		33		37		3			-
Total		81		83		89		92		101		(2	)		(20	)
Total residential construction	$	389	$	409	$	436	$	448	$	474		(20	)		(85	)
RESIDENTIAL CONSTRUCTION - ATLANTA MSA
Dirt loans
Acquisition & development	$	14	$	14	$	17	$	17	$	19		-			(5	)
Land loans		9		9		13		14		15		-			(6	)
Lot loans		18		22		22		22		22		(4	)		(4	)
Total		41		45		52		53		56		(4	)		(15	)
House loans
Spec		19		24		27		27		28		(5	)		(9	)
Sold		8		7		7		6		8		1			-
Total		27		31		34		33		36		(4	)		(9	)
Total residential construction	$	68	$	76	$	86	$	86	$	92		(8	)		(24	)

(1) Excludes total loans of $37.0 million, $41.5 million, $47.2 million, $54.5 million and $57.8 million as of September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, that are covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality (1)

	Third Quarter 2012									Second Quarter 2012									First Quarter 2012
	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)	$	25,896		$	8,767		$	34,663		$	19,115		$	10,586		$	29,701		$	26,081		$	10,808		$	36,889
Commercial & industrial		32,678			-			32,678			34,982			-			34,982			36,314			-			36,314
Commercial construction		18,590			3,121			21,711			18,175			2,732			20,907			23,319			3,266			26,585
Total commercial		77,164			11,888			89,052			72,272			13,318			85,590			85,714			14,074			99,788
Residential mortgage		13,996			6,031			20,027			16,631			5,591			22,222			18,741			5,882			24,623
Residential construction		22,935			9,039			31,974			25,530			11,512			37,042			24,341			11,931			36,272
Consumer installment		906			-			906			907			-			907			908			-			908
Total NPAs	$	115,001		$	26,958		$	141,959		$	115,340		$	30,421		$	145,761		$	129,704		$	31,887		$	161,591
Balance as a % of Unpaid Principal		68.8	%		36.4	%		58.8	%		68.8	%		39.3	%		59.4	%		70.6	%		36.1	%		59.4	%
NPAs BY MARKET
North Georgia	$	72,211		$	14,582		$	86,793		$	77,332		$	13,546		$	90,878		$	81,117		$	14,559		$	95,676
Atlanta MSA		21,349			5,926			27,275			17,593			8,651			26,244			22,321			7,647			29,968
North Carolina		9,622			2,771			12,393			10,657			3,287			13,944			15,765			4,650			20,415
Coastal Georgia		6,822			864			7,686			5,822			785			6,607			5,622			1,268			6,890
Gainesville MSA		840			1,328			2,168			991			2,998			3,989			2,210			3,387			5,597
East Tennessee		4,157			1,487			5,644			2,945			1,154			4,099			2,669			376			3,045
Total NPAs	$	115,001		$	26,958		$	141,959		$	115,340		$	30,421		$	145,761		$	129,704		$	31,887		$	161,591
NPA ACTIVITY
Beginning Balance	$	115,340		$	30,421		$	145,761		$	129,704		$	31,887		$	161,591		$	127,479		$	32,859		$	160,338
Loans placed on non-accrual		30,535			-			30,535			29,364			-			29,364			32,437			-			32,437
Payments received		(3,646	)		-			(3,646	)		(15,027	)		-			(15,027	)		(5,945	)		-			(5,945	)
Loan charge-offs		(19,227	)		-			(19,227	)		(19,382	)		-			(19,382	)		(14,733	)		-			(14,733	)
Foreclosures		(8,001	)		8,001			-			(9,319	)		9,319			-			(9,534	)		9,534			-
Capitalized costs		-			102			102			-			415			415			-			329			329
Note / property sales		-			(8,822	)		(8,822	)		-			(10,461	)		(10,461	)		-			(8,631	)		(8,631	)
Write downs		-			(2,394	)		(2,394	)		-			(1,008	)		(1,008	)		-			(2,111	)		(2,111	)
Net gains (losses) on sales		-			(350	)		(350	)		-			269			269			-			(93	)		(93	)
Ending Balance	$	115,001		$	26,958		$	141,959		$	115,340		$	30,421		$	145,761		$	129,704		$	31,887		$	161,591
	Third Quarter 2012						Second Quarter 2012						First Quarter 2012
				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)	$	8,174			1.79	%	$	4,349			.95	%	$	3,697			.81	%
Commercial & industrial		(259	)		(.23	)		775			.70			669			.62
Commercial construction		3,190			7.74			88			.21			334			.81
Total commercial		11,105			1.81			5,212			.86			4,700			.78
Residential mortgage		3,527			1.23			3,862			1.38			5,375			1.91
Residential construction		5,676			5.69			9,563			9.14			5,314			4.84
Consumer installment		255			.78			259			.88			478			1.72
Total	$	20,563			1.99		$	18,896			1.85		$	15,867			1.55
NET CHARGE-OFFS BY MARKET
North Georgia	$	6,451			1.84	%	$	12,474			3.58	%	$	9,022			2.56	%
Atlanta MSA		9,344			3.02			2,307			.75			2,729			.89
North Carolina		1,674			1.15			3,634			2.52			1,679			1.14
Coastal Georgia		2,486			2.67			211			.23			1,329			1.53
Gainesville MSA		294			.45			(187	)		(.29	)		883			1.35
East Tennessee		314			.45			457			.68			225			.34
Total	$	20,563			1.99		$	18,896			1.85		$	15,867			1.55

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

(2) Annualized.

UNITED COMMUNITY BANKS, INC.

Consolidated Statement of Operations (Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands, except per share data)	2012			2011			2012			2011
Interest revenue:
Loans, including fees	$	53,868		$	59,294		$	163,805		$	181,359
Investment securities, including tax exempt of $225, $244, $737 and $754		10,706			14,568			34,772			42,964
Federal funds sold, reverse repurchase agreements, commercial paper and deposits in banks		985			261			3,093			1,832
Total interest revenue		65,559			74,123			201,670			226,155
Interest expense:
Deposits:
NOW		447			831			1,587			3,191
Money market		599			1,129			1,901			4,656
Savings		37			52			112			193
Time		4,612			9,086			15,844			31,813
Total deposit interest expense		5,695			11,098			19,444			39,853
Federal funds purchased, repurchase agreements and other short-term borrowings		514			1,081			2,463			3,197
Federal Home Loan Bank advances		26			441			882			1,601
Long-term debt		2,372			2,642			7,119			8,169
Total interest expense		8,607			15,262			29,908			52,820
Net interest revenue		56,952			58,861			171,762			173,335
Provision for loan losses		15,500			36,000			48,500			237,000
Net interest revenue after provision for loan losses		41,452			22,861			123,262			(63,665	)
Fee revenue:
Service charges and fees		7,696			7,534			23,295			21,862
Mortgage loan and other related fees		2,800			1,148			7,221			3,594
Brokerage fees		709			836			2,331			2,204
Securities gains, net		-			-			7,047			838
Loss from prepayment of debt		-			-			(6,681	)		(791	)
Other		2,559			1,980			8,797			9,534
Total fee revenue		13,764			11,498			42,010			37,241
Total revenue		55,216			34,359			165,272			(26,424	)
Operating expenses:
Salaries and employee benefits		22,918			25,262			72,440			76,622
Communications and equipment		3,254			3,284			9,620			10,006
Occupancy		3,539			3,794			10,849			11,673
Advertising and public relations		934			1,052			2,868			3,347
Postage, printing and supplies		954			1,036			2,849			3,239
Professional fees		2,180			2,051			6,107			7,731
Foreclosed property		3,706			2,813			9,382			69,603
FDIC assessments and other regulatory charges		2,537			2,603			7,592			11,660
Amortization of intangibles		728			748			2,190			2,270
Other		4,033			3,877			12,151			14,368
Total operating expenses		44,783			46,520			136,048			210,519
Net income (loss) before income taxes		10,433			(12,161	)		29,224			(236,943	)
Income tax (benefit) expense		(135	)		(822	)		629			(296	)
Net income (loss)		10,568			(11,339	)		28,595			(236,647	)
Preferred stock dividends and discount accretion		3,041			3,019			9,103			8,813
Net income (loss) available to common shareholders	$	7,527		$	(14,358	)	$	19,492		$	(245,460	)
Earnings (loss) per common share - Basic	$	.13		$	(.25	)	$	.34		$	(7.23	)
Earnings (loss) per common share - Diluted		.13			(.25	)		.34			(7.23	)
Weighted average common shares outstanding - Basic		57,880			57,599			57,826			33,973
Weighted average common shares outstanding - Diluted		57,880			57,599			57,826			33,973

UNITED COMMUNITY BANKS, INC.

Consolidated Balance Sheet

	September 30,			December 31,			September 30,
(in thousands, except share and per share data)	2012			2011			2011
	(unaudited)			(audited)			(unaudited)
ASSETS
Cash and due from banks	$	57,270		$	53,807		$	57,780
Interest-bearing deposits in banks		119,355			139,609			241,440
Federal funds sold, reverse repurchase agreements, commercial paper and short-term investments		45,000			185,000			-
Cash and cash equivalents		221,625			378,416			299,220
Securities available for sale		1,761,994			1,790,047			1,769,083
Securities held to maturity (fair value $281,336, $343,531 and $369,020)		262,648			330,203			353,739
Mortgage loans held for sale		30,571			23,881			22,050
Loans, net of unearned income		4,137,845			4,109,614			4,109,875
Less allowance for loan losses		107,642			114,468			146,092
Loans, net		4,030,203			3,995,146			3,963,783
Assets covered by loss sharing agreements with the FDIC		53,070			78,145			83,623
Premises and equipment, net		170,532			175,088			176,839
Bank owned life insurance		81,574			80,599			80,452
Accrued interest receivable		19,133			20,693			19,744
Goodwill and other intangible assets		6,237			8,428			9,175
Foreclosed property		26,958			32,859			44,263
Other assets		34,690			69,915			72,302
Total assets	$	6,699,235		$	6,983,420		$	6,894,273
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand	$	1,210,703		$	992,109		$	966,452
NOW		1,184,341			1,509,896			1,299,512
Money market		1,126,312			1,038,778			1,030,370
Savings		222,431			199,007			200,231
Time:
Less than $100,000		1,123,672			1,332,394			1,393,559
Greater than $100,000		731,766			847,152			905,183
Brokered		223,474			178,647			209,998
Total deposits		5,822,699			6,097,983			6,005,305
Federal funds purchased, repurchase agreements, and other short-term borrowings		53,243			102,577			102,883
Federal Home Loan Bank advances		50,125			40,625			40,625
Long-term debt		120,285			120,225			120,206
Unsettled securities purchases		24,319			10,325			10,585
Accrued expenses and other liabilities		43,309			36,199			31,302
Total liabilities		6,113,980			6,407,934			6,310,906
Shareholders’ equity:
Preferred stock, $1 par value; 10,000,000 shares authorized;
Series A; $10 stated value; 21,700 shares issued and outstanding		217			217			217
Series B; $1,000 stated value; 180,000 shares issued and outstanding		178,183			177,092			176,739
Series D; $1,000 stated value; 16,613 shares issued and outstanding		16,613			16,613			16,613
Common stock, $1 par value; 100,000,000 shares authorized;
42,393,319, 41,647,100 and 41,595,692 shares issued and outstanding		42,393			41,647			41,596
Common stock, non-voting, $1 par value; 30,000,000 shares authorized;
15,316,794, 15,914,209 and 15,914,209 shares issued and outstanding		15,317			15,914			15,914
Common stock issuable; 129,270, 93,681 and 88,501 shares		3,247			3,233			3,590
Capital surplus		1,056,998			1,054,940			1,053,565
Accumulated deficit		(711,369	)		(730,861	)		(737,736	)
Accumulated other comprehensive (loss) income		(16,344	)		(3,309	)		12,869
Total shareholders’ equity		585,255			575,486			583,367
Total liabilities and shareholders’ equity	$	6,699,235		$	6,983,420		$	6,894,273

UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended September 30,

	2012								2011
	Average					Avg.			Average					Avg.
(dollars in thousands, taxable equivalent)	Balance			Interest		Rate			Balance			Interest		Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2)	$	4,147,220		$	53,963		5.18	%	$	4,193,951		$	59,394		5.62	%
Taxable securities (3)		1,947,780			10,481		2.15			2,125,154			14,324		2.70
Tax-exempt securities (1)(3)		22,895			368		6.43			24,675			399		6.47
Federal funds sold and other interest-earning assets		227,950			1,166		2.05			286,194			426		.60
Total interest-earning assets		6,345,845			65,978		4.14			6,629,974			74,543		4.47
Non-interest-earning assets:
Allowance for loan losses		(112,034	)							(128,654	)
Cash and due from banks		51,705								53,500
Premises and equipment		171,608								177,798
Other assets (3)		190,439								267,349
Total assets	$	6,647,563							$	6,999,967
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,176,087			447		.15		$	1,258,929			831		.26
Money market		1,157,655			599		.21			1,024,559			1,129		.44
Savings		221,186			37		.07			199,793			52		.10
Time less than $100,000		1,144,103			2,260		.79			1,448,024			4,539		1.24
Time greater than $100,000		750,828			1,876		.99			940,864			3,456		1.46
Brokered time deposits		176,114			476		1.08			260,423			1,091		1.66
Total interest-bearing deposits		4,625,973			5,695		.49			5,132,592			11,098		.86
Federal funds purchased and other borrowings		55,994			514		3.65			103,850			1,081		4.13
Federal Home Loan Bank advances		44,473			26		.23			40,625			441		4.31
Long-term debt		120,276			2,372		7.85			138,457			2,642		7.57
Total borrowed funds		220,743			2,912		5.25			282,932			4,164		5.84
Total interest-bearing liabilities		4,846,716			8,607		.71			5,415,524			15,262		1.12
Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,163,471								928,788
Other liabilities		55,607								57,427
Total liabilities		6,065,794								6,401,739
Shareholders’ equity		581,769								598,228
Total liabilities and shareholders’ equity	$	6,647,563							$	6,999,967
Net interest revenue				$	57,371							$	59,281
Net interest-rate spread							3.43	%							3.35	%
Net interest margin (4)							3.60	%							3.55	%

(1)	Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2)	Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
(3)	Securities available for sale are shown at amortized cost. Pretax unrealized gains of $22.9 million in 2012 and $37.9 million in 2011 are included in other assets for purposes of this presentation.
(4)	Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Nine Months Ended September 30,

	2012								2011
	Average					Avg.			Average					Avg.
(dollars in thousands, taxable equivalent)	Balance			Interest		Rate			Balance			Interest		Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2)	$	4,157,057		$	164,101		5.27	%	$	4,351,524		$	181,422		5.57	%
Taxable securities (3)		2,065,112			34,035		2.20			1,926,365			42,210		2.92
Tax-exempt securities (1)(3)		24,187			1,207		6.65			25,178			1,234		6.53
Federal funds sold and other interest-earning assets		322,998			3,636		1.50			514,392			2,573		.67
Total interest-earning assets		6,569,354			202,979		4.13			6,817,459			227,439		4.46
Non-interest-earning assets:
Allowance for loan losses		(115,252	)							(145,689	)
Cash and due from banks		52,755								102,251
Premises and equipment		173,410								178,694
Other assets (3)		214,068								293,386
Total assets	$	6,894,335							$	7,246,101
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,304,159			1,587		.16		$	1,313,752			3,191		.32
Money market		1,120,091			1,901		.23			977,863			4,656		.64
Savings		214,280			112		.07			194,433			193		.13
Time less than $100,000		1,199,563			7,806		.87			1,509,753			14,980		1.33
Time greater than $100,000		783,370			6,354		1.08			973,335			11,480		1.58
Brokered time deposits		162,682			1,684		1.38			475,687			5,353		1.50
Total interest-bearing deposits		4,784,145			19,444		.54			5,444,823			39,853		.98
Federal funds purchased and other borrowings		85,022			2,463		3.87			102,711			3,197		4.16
Federal Home Loan Bank advances		153,539			882		.77			49,442			1,601		4.33
Long-term debt		120,256			7,119		7.91			146,221			8,169		7.47
Total borrowed funds		358,817			10,464		3.90			298,374			12,967		5.81
Total interest-bearing liabilities		5,142,962			29,908		.78			5,743,197			52,820		1.23
Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,105,607								884,417
Other liabilities		65,390								69,131
Total liabilities		6,313,959								6,696,745
Shareholders’ equity		580,376								549,356
Total liabilities and shareholders’ equity	$	6,894,335							$	7,246,101
Net interest revenue				$	173,071							$	174,619
Net interest-rate spread							3.35	%							3.23	%
Net interest margin (4)							3.52	%							3.42	%

(1)	Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2)	Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
(3)	Securities available for sale are shown at amortized cost. Pretax unrealized gains of $24.1 million in 2012 and $32.4 million in 2011 are included in other assets for purposes of this presentation.
(4)	Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

EX-99.2

Exhibit 99.2

Jimmy C. Tallent  President & CEO H. Lynn Harton Chief Operating Officer Rex S. Schuette EVP & CFO   rex_schuette@ucbi.com (706) 781-2266  David P. Shearrow EVP & Chief Risk Officer

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

3 Non-GAAP Measures This presentation also contains 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 income (loss) and net operating earnings (loss) 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 income (loss), diluted earnings (loss) 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 for 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 to this presentation.

4 United at a Glance Founded in 1950 Third-largest bank holding company in Georgia Headquartered in Blairsville, Georgia with 104 locations throughout north Georgia, metro Atlanta, coastal Georgia, western North Carolina and east Tennessee 1,592 employees 27 Banks and 104 Offices  Deposit Market Share(1) Key Statistics as of 9/30/12 Market Banks Offices Deposit Share Rank (billions) North Georgia 11 22 32% 1 Total assets $6.70 Atlanta MSA 10 38 4 7 Total deposits $5.82 Gainesville MSA 1 5 12 5 Loans $4.14 Coastal Georgia 2 8 4 8 Western North Carolina 1 20 12 3 East Tennessee 2 11 2 9 ¹ FDIC deposit market share and rank as of 6/12 for markets where United takes deposits. Source: SNL and FDIC.

5 Highlights Third Quarter Improving Quarterly Results Net Income of $10.6 million, or 13 cents per share Fifth quarterly profit in past six quarters Core earnings (pre-tax, pre-credit) of $29.9 million Modest Loan Growth, Both Linked Quarter and Year Ago Increased lending opportunities Strong Core Transaction Deposit Growth Year-to-date up 11% annualized Building customer deposit base Represents 56% of total customer deposits compared to 34% at the end of 2008 Non Performing and Classified Assets Declining

6 FINANCIAL REVIEW

7 Core Earnings Summary (in thousands)  Variance - Increase / (Decrease)  3Q12 2Q12 4Q11 3Q11 Net Interest Revenue $ 57,371 $ 535 $ (1,679) $ (1,910) Fee Revenue 13,003 239 1,561 1,694 Gross Revenue 70,374 774 (118) (216) Operating Expense (Excl OREO) 40,523 (789) (3,320) (3,570) Pre-Tax, Pre-Credit (Core) $ 29,851 $ 1,563 $ 3,202 $ 3,354 Net Interest Margin 3.60 % .17 % .09 % .05 %

8 Fee Revenue - Core (in thousands)  Variance - Increase / (Decrease)  3Q12 2Q12 4Q11 3Q11 Overdraft Fees $ 3,362 $ 130 $ (175) $ (179) Debit Card Fees 3,063 (179) 94 (239) Other Service Charges 1,271 (71) 529 580 Total Service Charges and Fees 7,696 (120) 448 162 Mortgage Loan & Related Fees 2,800 478 975 1,652 Brokerage Fees 709 (100) (73) (127) Other 1,798 (19) 211 7 Total Fee Revenue - Core 13,003 239 1,561 1,694 Non-Core(1) 761 658 (464) 572 Reported - GAAP $ 13,764 $ 897 $ 1,097 $ 2,266 (1) Includes net securities gains and charges on prepayment of FHLB advances, hedge ineffectiveness gains, gains from the sale of low income housing tax credits, interest on Federal income tax refund and mark to market adjustments on United’s deferred compensation plan assets.

9 Operating Expenses - Core (in thousands)  Variance - Increase / (Decrease)  3Q12 2Q12 4Q11 3Q11 Salaries & Employee Benefits $ 22,364 $ (786) $ (3,174) $ (3,284) Communications & Equipment 3,254 43 125 (30) Occupancy 3,539 - (433) (255) FDIC Assessment 2,537 (8) (62) (66) Advertising & Public Relations 934 (154) (10) (118) Postage, Printing & Supplies 954 38 (63) (82) Professional Fees 2,180 228 184 129 Other Expense 4,761 (150) 113 136 Core Operating Expenses 40,523 (789) (3,320) (3,570) Non-Core(1) 4,260 1,262 (2,977) 1,833 Reported GAAP $ 44,783 $ 473 $ (6,297) $ (1,737) (1) Includes foreclosed property costs, adjustment to reclassify pension plan actuarial gains and losses and unamortized prior service costs to other comprehensive income, severance costs and mark to market adjustments on United’s deferred compensation plan liability.

10 Net Operating Income (in thousands)  Variance - Increase / (Decrease)  3Q12(1) 2Q12 4Q11 3Q11 Core Earnings (Pre-Tax, Pre-Credit) $ 29,851 $ 1,563 $ 3,202 $ 3,354 Provision for Loan Loss 15,500 (2,500) 1,500 (20,500) NON-CORE FEE REVENUE: Hedge Ineffectiveness Gaines (Losses) 608 788 295 33 Securites Gains (Losses) - (6,490) (4) - Charges from Prepayment of Borrowings - 6,199 - - Gains from Sale of Low Income Housing Tax Credits - - (728) - Gains (Losses) on Deferred Compensation Plan Assets 153 161 (27) 539 Total Non-Core Fee Revenue 761 658 (464) 572 NON-CORE OPERATING EXPENSES: Foreclosed Property Write Downs 2,394 1,386 (1,498) 622 Foreclosed Property (Gains) Losses on Sales 350 619 (2,691) 1,154 Forclosed Property Maintenance Expenses 962 (150) (1,407) (883) Severance Costs 401 (754) 401 401 Reclassification of Pension Actuarial Gains to AOCI - - 2,245 - Gains (Losses) on Deferred Comp Plan Liability 153 161 (27) 539 Total Non-Core Operating Expenses 4,260 1,262 (2,977) 1,833 Income Tax (Expense) Benefit (284) 610 (3,548) (686) Net Income $ 10,568 $ 4,069 $ 667 $ 21,907

11 Net Income (in thousands)  Variance - Increase / (Decrease)  3Q12 2Q12 4Q11 3Q11 Net Income $ 10,568 $ 4,069 $ 667 $ 21,907 Preferred Stock Dividends (3,041) 9 16 22 Net Income Avail to Common Shareholders $ 7,527 $ 4,060 $ 651 $ 21,885 Net Income Per Share $ .13 $ .07 $ .01 $ .38 Tangible Book Value $ 6.64 $ .16 $ .17 $ .03 (DTA Allowance $272 Million - $4.70 / Share) Shares Outstanding (millions) 57.9 .1 .3 .3

12 Net Interest Margin NIM Characteristics Margin – Linked Quarter +17 bps vs. 2Q12 Smaller balance sheet Higher securities yields, offset by loan pricing compression Lowered core and CD deposit pricing Outlook for Continued Loan and Securities Pricing Pressure (1) Excluding impact of nonaccrual loans, OREO and interest reversals

13 Key Drivers of Net Interest Revenue / Margin Offsetting Impacts on Margin Loan and securities pricing under pressure Deposit rates continue to decline

14 Deposit Pricing, Excluding Brokered Deposits Note – CD pricing reflects the quarter-ending new and renewed yield. MMDA / NOW pricing reflects the deposit yield for each quarter

15 Customer Deposit Mix Improving (in millions)  3Q12 2Q12 3Q11 4Q08 Demand / NOW $ 1,796 $ 1,735 $ 1,686 $ 1,457 MMDA / Savings 1,342 1,330 1,220 630 Core Transaction 3,138 3,065 2,906 2,087  8% Growth - $232 Million  50% Growth Time < $100,000 1,118 1,159 1,387 1,945 Public Deposits 612 623 597 755 Total Core 4,868 4,847 4,890 4,787 Time >$100,000 699 728 867 1,336 Public Deposits 32 36 38 87 Total Customer 5,599 5,611 5,795 6,210 Brokered Deposits 224 211 210 793 Total Deposits $ 5,823 $ 5,822 $ 6,005 $ 7,003 3Q12 56% $5.6B Public Funds 12% Demand & Time NOW >$100k 32% 12% Time <$100k MMDA & 20% Sav. 24% Customer 4Q08 $6.2B Public Funds Demand & 14% 34% NOW 23% Time >$100k 22% MMDA & Sav. 10% Time <$100k 31%

16 Core Deposit Growth – Category and Market (in millions, excluding public)  Growth  YTD Last 12 CATEGORY 3Q12 3Q12 Months Demand $ 54.2 $ 197.9 $ 206.7 MM Accounts 8.4 90.3 99.0 Savings 3.3 24.0 22.7 NOW 6.1 (76.7) (96.8) Total Categories $ 72.0 $ 235.5 $ 231.6 Percent Growth (Annualized) 9 % 11 % 8 % MARKET Atlanta $ 50.6 $ 115.7 $ 125.9 North Carolina 1.3 44.6 41.0 Coastal Georgia (6.0) 19.5 13.6 N. Georgia 19.3 37.1 24.3 Tennessee 5.0 12.5 14.2 Gainesville 1.8 6.1 12.6 Total Markets $ 72.0 $ 235.5 $ 231.6

17 Capital Ratios Well-Capitalized SEP ‘12 JUN ‘12 MAR ‘12 Bank Tier 1 RBC 6 % 14.5 % 14.4 % 13.7 % Total RBC 10 15.7 15.7 15.0 Leverage 5 9.9 9.2 9.0 Holding Company Tier 1 RBC 6 14.3 14.3 13.7 Total RBC 10 15.8 16.0 15.4 Leverage 5 9.8 9.2 8.9 Tier I Common RBC 8.8 8.8 8.3 Tangible Equity to Assets 8.7 8.2 8.1 Tangible Common to Assets 5.7 * 5.5 5.3 *DTA Allowance of $272 million; when reversed adds 3.7%

18 LOAN PORTFOLIO & CREDIT QUALITY

19 Loan Portfolio (total $4.14 billion) Geographic Diversity $ In millions By Loan Type $1.17B Residential Mortgage 28% $.39B Residential Construction 10% $.14B Installment 3% $2.44B Commercial 59%  3Q12 2Q12 1Q12 4Q11 3Q11 Total Loans $4.14 $4.12 $4.13 $4.11 $4.11

20 New Loans Funded* – Category and Market (in millions) CATEGORY 3Q12 2Q12 MARKET 3Q12 2Q12 Commercial RE: Atlanta $ 43.3 $ 35.5 Owner Occupied $ 21.6 $ 25.5 Coastal Georgia 21.4 9.8 Income Producing 21.7 7.1 N. Georgia 36.2 21.9 Total Commercial RE 43.3 32.6 Tennessee 17.5 9.9 Commercial C & I 20.7 15.3 North Carolina 13.9 5.7 Commercial Constr. 3.0 4.6 Gainesville 5.2 3.7 Residential 62.4 25.1 Total Markets $ 137.5 $ 86.5 Residential Constr. 6.5 7.9 Consumer 1.6 1.0 Total Categories $ 137.5 $ 86.5 *Loans greater than $100 thousand

21 New Loan Commitments* – Category and Market (in millions) CATEGORY 3Q12 2Q12 Commercial RE: Owner Occupied $ 23.0 $ 28.0 Income Producing 22.7 7.7 Total Commercial RE 45.7 35.7 Commercial C & I 42.9 23.7 Commercial Constr. 8.7 7.5 Residential 90.0 32.1 Residential Constr. 28.5 32.2 Consumer 1.8 1.2 Total Categories $ 217.6 $ 132.4 MARKET 3Q12 2Q12 Atlanta $ 71.6 $ 54.7 N. Georgia 57.4 35.0 Coastal Georgia 31.7 11.4 Tennessee 24.8 14.8 North Carolina 25.1 12.5 Gainesville 7.0 4.0 Total Markets $ 217.6 $ 132.4 *Loans greater than $100 thousand

Credit Quality 22 (in millions) Net Charge-offs(1) as % of Average Loans(1) 3Q12 20.6 $ 1.99 % $ 2Q12 18.9 1.85 % $ 1Q12 15.9 1.55 % $ 4Q11 20.6 1.99 % $ 3Q11 17.5 1.68 % Allowance for Loan Losses as % of Total Loans as % of NPLs 107.6 $ 2.60 % 94 $ 112.7 2.74 % 98 $ 113.6 2.75 % 88 $ 114.5 2.79 % 90 $ 146.1 3.55 % 101 Past Due Loans (30 89 Days) .68 % .65 % .86 % .75 % .70 % Non-Performing Loans OREO Total NPAs 115.0 $ 27.0 142.0 $ 115.4 30.4 145.8 $ 129.7 31.9 161.6 $ 127.5 32.8 160.3 $ 144.5 44.2 188.7 Performing Classified Loans Total Classified Assets 284.0 426.0 $ $ 324.0 469.8 $ 317.0 478.6 $ 328.0 488.3 $ 341.0 529.7 Accruing TDRs (see page 48) 138.3 $ $ 141.6 $ 125.8 $ 105.8 $ 69.8 As % of Original Principal Balance Non-Performing Loans OREO 68.8 36.4 % 68.8 39.3 % 70.6 36.1 % 71.3 35.9 % 77.8 33.4 % Total NPAs as % of Total Assets as % of Loans & OREO 2.12 3.41 2.16 3.51 2.25 3.88 2.30 3.87 2.74 4.54 (1) Excludes $25 million of charge-offs for largest loan relationship in 4Q11.

23 NPL Inflow Trends Quarterly NPL Inflows Since 2009 ($mm) Total NPLs ($mm)

24 Net Charge-offs by Loan Category (in thousands)  3Q12 % of Average Loans (Annualized)  % of Avg  Total Loans 2Q12 1Q12 4Q11(1) 3Q11 Commercial (Sec. by RE): Owner Occupied $ 6,192 3.56 % .46 % .87 % 1.16 % .35 % Income Producing 1,982 .70 1.75 .70 .57 .72 Total Comm (Sec. by RE) 8,174 1.79 .95 .81 .90 .50 Commercial & Industrial (259) (.23) .70 .62 1.08 .39 Commercial Construction 3,190 7.74 .21 .81 1.75 3.54 Total Commercial 11,105 1.81 .86 .78 1.06 .71 Residential Mortgage 3,527 1.23 1.38 1.91 2.04 2.09 Residential Construction 5,676 5.69 9.14 4.84 6.77 5.19 Consumer/ Installment 255 .78 .88 1.72 1.47 2.75 Total Net Charge-offs $ 20,563 1.99 1.85 1.55 1.99 1.68 (1) Excludes charge-offs for largest loan relationship of Commerical Construction $2,863; Commercial & Industrial $17,046; CRE Income Producing $901; and, Residential Construction

25 Net Charge-offs by Market (in millions) 3Q12 % of Average Loans (Annualized) % of Avg Total Loans 2Q12 1Q12 4Q11(1) 3Q11 North Georgia $ 6,451 1.84 % 3.58 % 2.56 % 2.70 % 2.16 % Atlanta MSA 9,344 3.02 .75 .89 1.37 .94 North Carolina 1,674 1.15 2.52 1.14 2.10 2.31 Coastal Georgia 2,486 2.67 .23 1.53 .41 .88 Gainesville MSA 294 .45 (.29) 1.35 3.84 2.64 East Tennessee 314 .45 .68 .34 .59 .78 Total $ 20,563 1.99 1.85 1.55 1.99 1.68 (1) Excludes charge-offs for largest loan relationship of in North Georgia of $25,000

26 NPAs by Loan Category and Market (in thousands)  3Q12 3Q12  NPLs OREO Total NPAs NPLs OREO Total NPAs LOAN CATEGORY MARKETS Commercial (sec. by RE): North Georgia $ 72,211 $ 14,582 $ 86,793 Owner Occupied $ 14,140 $ 7,170 $ 21,310 Atlanta MSA 21,349 5,926 27,275 Income Producing 11,756 1,597 13,353 North Carolina 9,622 2,771 12,393 Commercial & Industrial 32,678 - 32,678 Coastal Georgia 6,822 864 7,686 Commercial Construction 18,590 3,121 21,711 Gainesville MSA 840 1,328 2,168 Total Commercial 77,164 11,888 89,052 East Tennessee 4,157 1,487 5,644  Total $ 115,001 $ 26,958 $ 141,959 Residential Mortgage 13,996 6,031 20,027 Residential Construction 22,935 9,039 31,974 Consumer/ Installment 906 - 906 Total $ 115,001 $ 26,958 $ 141,959

27 Commercial Loans (total $2.44 billion) Geographic Diversity $ In millions By Loan Type 46% Owner Occupied $1.12B 28% Income Producing $.69B 19% C & I $.46B 7% Comm Const $.16B Avg Lone Size (.000)

28 Commercial Real Estate (by loan type) September 30, 2012 Owner Income (in millions) Occupied Producing Total Percent Office Buildings $ 300 $ 202 $ 502 28 % Retail 113 149 262 14 Small Warehouses/Storage 114 70 184 10 Multi-Residential/Other Properties 70 88 158 8 Churches 135 - 135 7 Convenience Stores 73 19 92 5 Hotels/Motels - 86 86 5 Franchise / Restaurants 37 34 71 4 Farmland 60 - 60 4 Manufacturing Facility 48 8 56 3 Auto Dealership/Service 46 9 55 3 Golf Course/Recreation 39 - 39 2 Daycare Facility 16 10 26 2 Leasehold Property 16 9 25 1 Carwash 18 - 18 1 Movie TheaterBowling/Recreation 16 - 16 1 Funeral Home 14 1 15 1 Marina 10 - 10 1 Mobile Home Parks - 8 8 - Total $ 1,125 $ 693 $ 1,818 Portfolio Characteristics  61.9% owner-occupied  Small business, doctors, dentists, attorneys, CPAs  $12 million project limit  Average Loan Size o $465 Composite CRE o $421 Owner Occupied o $602 Income Producing

29 Commercial Construction (by loan type)  September 30, 2012 (in millions) Amount Percent Land Develop - Vacant (Improved) $ 64 40 % Raw Land - Vacant (Unimproved) 48 30 Commercial Land Development 23 14 Office Buildings 5 3 Churches 5 3 Warehouse 2 1 Restaurants/Fast Food/Other Franchise 2 1 Retail Building 1 1 Hotels/Motels 1 1 Convenience Stores 1 1 Miscellaneous Construction 9 5 Total Commercial Construction $ 161 100 % Portfolio Characteristics  Average loan size: $438k

30 Residential Mortgage (total $1.17 billion) Geographic Diversity $ In millions By Loan Type Home Equity 29% $.34B Avg loan size $45k Home Equity 29% $.34B Avg loan size $45k Origination Characteristics No broker loans Policy Max LTV: 80-85% 59% of HE Primary Lien

31 Residential Construction (total $389 million) Geographic Diversity $ In millions By Loan Type Land 50% Lot $196 10% Spec $44 11% Sold $37 18% Developing $71 11% Raw $41 Average Loan Size (in thousands) Spec $ 226 Sold 120 Develop 596 Raw Land105

32 Residential Construction – Total Company  3Q12 vs. (in millions) 3Q12 2Q12 1Q12 4Q11 3Q11 3Q11 Land Loans Developing Land $ 71 $ 78 $ 86 $ 88 $ 97 $ (26) Raw Land 41 45 57 61 60 (19) Lot Loans 196 203 204 207 216 (20) Total 308 326 347 356 373 (65) Construction Loans Spec 44 49 57 59 64 (20) Sold 37 34 32 33 37 - Total 81 83 89 92 101 (20) Total Res Construction $ 389 $ 409 $ 436 $ 448 $ 474 $ (85) By Region Atlanta $ 68 $ 76 $ 86 $ 86 $ 92 $ (24) Gainesville MSA 17 19 20 20 25 (8) North Georgia 184 193 206 214 229 (45) North Carolina 85 87 88 91 92 (7) Coastal Georgia 23 22 23 24 24 (1) Tennessee 12 12 13 13 12 - Total Res Construction $ 389 $ 409 $ 436 $ 448 $ 474 $ (85)

33 APPENDIX

34 Experienced Proven Leadership Joined Years in UCBI Banking Jimmy Tallent President & CEO 1984 38 Lynn Harton Chief Operating Officer 2012 29 Rex Schuette Chief Financial Officer 2001 35 David Shearrow Chief Risk Officer 2007 31 Craig Metz Marketing 2002 20 Ray Skinner Retail Banking 2012 22 Regional Presidents: Bill Gilbert North & Coastal Georgia 2000 36 Tim Schools North Carolina & Tennessee 2011 12 Glenn White Atlanta 2007 38

35 Business and Operating Model Twenty-seven “community banks” Local CEOs with deep roots in their communities Resources of $6.7 billion bank Service is point of differentiation #1 in Customer Satisfaction according to Customer Service Profiles J.D. Power Customer Service Champion for 2011 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 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 “Community bank service, large bank resources”

36 Robust Demographics (fast growing markets)  Population Growth (%)  Population Actual Projected Markets1 (in thousands) 2000 - 2011 2011 - 2016 North Georgia 386 21 % 4 % Atlanta MSA 5,321 25 5 Gainesville MSA 181 30 4 Coastal Georgia 385 15 5 Western North Carolina 441 15 5 East Tennessee 862 14 5 Total Markets Georgia 9,775 19 5 North Carolina 9,659 20 7 Tennessee 6,402 13 4 United States 310,704 10 3 ¹ Population data is for 2011 and includes those markets where United takes deposits. Source: SNL

37 Market Share Opportunities Excellent growth prospects  Market  Deposits United Deposit Markets (in billions) (1) Deposits (2) Banks Offices Share(1) Rank(1) North Georgia $ 6.4 $ 2.0 11 22 32 % 1 Atlanta MSA 50.2 2.0 10 38 4 7 Gainesville MSA 2.6 .3 1 5 12 5 Coastal Georgia 7.3 .3 2 8 4 8 Western North Carolina 6.4 .9 1 20 12 3 East Tennessee 16.0 .3 2 11 2 9 Total Markets $ 88.9 $ 5.8 27 104 ¹ FDIC deposit market share and rank as of 6/12 for markets where United takes deposits. Source: SNL and FDIC. 2 Based on current quarter.

38 Leading Demographics 2011 - 2016 Total Assets Population Rank Ticker Company(1) State ($B) Growth(2) 1 CFR Cullen/Frost Bankers, Inc. TX 20.8 8.38 2 IBOC International Bancshares Corporation TX 11.6 6.99 3 HBHC Hancock Holding Company MS 18.9 6.38 4 PB Prosperity Bancshares, Inc. TX 10.7 6.23 5 FCNCA First Citizens BancShares, Inc. NC 21.2 6.10 6 GBCI Glacier Bancorp, Inc. MT 7.4 5.63 7 FIBK First Interstate BancSystem, Inc. MT 7.3 5.43 8 TCBI Texas Capital Bancshares, Inc. TX 9.1 5.37 9 CBF Capital Bank Financial Corporation FL 6.3 4.96 10 FCBN First Citizens Bancorporation, Inc. SC 8.2 4.87 11 UCBI United Community Banks, Inc. GA 6.7 4.85 12 BOKF BOK Financial Corporation OK 25.6 4.77 13 WAL Western Alliance Bancorporation AZ 7.2 4.59 14 IBKC IBERIABANK Corporation LA 12.1 4.42 15 NBHC National Bank Holdings Corporation CO 5.8 4.25 NOTE: Financial information as of June 30, 2012 (1) Includes publicly traded companies with assets between $5.0 - $50.0 billion as of June 30, 2012 (2) Population growth weighted by county (cumulative) Data Source: SNL Financial

39 Proactively Addressing Credit Environment 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

40 Lending – Credit Summary (in millions) Legal lending limit $162 House lending limit 20 Project lending limit 12 Top 25 relationships 370 Regional credit review – Standard underwriting

41 Performing Classified Loans (in millions) LOANS BY CATEGORY 3Q12 2Q12 1Q12 4Q11 3Q11 Commercial (Sec. by RE): Owner Occupied $ 77 $ 54 $ 78 $ 79 $ 69 Income Producing 49 94 56 64 65 Total Comm (Sec. by RE) 126 148 134 143 134 Commercial & Industrial 19 16 17 16 25 Commercial Construction 27 38 23 18 26 Total Commercial 172 202 174 177 185 Residential Mortgage 73 73 76 76 77 Residential Construction 35 46 64 72 76 Consumer / Installment 3 3 3 3 3 Total Classified Loans $ 283 $ 324 $ 317 $ 328 $ 341

42 Business Mix Loans (at quarter-end) (in millions)  3Q12 vs. LOANS BY CATEGORY 3Q12 2Q12 1Q12 4Q11 3Q11 3Q11 Commercial (Sec. by RE): Owner Occupied $ 1,126 $ 1,140 $ 1,137 $ 1,111 $ 1,037 $ 89 Income Producing 693 697 706 711 734 (41) Total Comm (Sec. by RE) 1,819 1,837 1,843 1,822 1,771 48 Commercial & Industrial 460 450 440 428 429 31 Commercial Construction 161 169 167 164 169 (8) Total Commercial 2,440 2,456 2,450 2,414 2,369 71 Residential Mortgage 1,174 1,128 1,131 1,135 1,150 24 Residential Construction 389 409 436 448 474 (85) Consumer / Installment 135 126 111 113 117 18 Total Loans $ 4,138 $ 4,119 $ 4,128 $ 4,110 $ 4,110 $ 28

43 Markets Served Loans – (at quarter-end) (in millions) 3Q12 vs. LOANS BY MARKET 3Q12 2Q12 1Q12 4Q11 3Q11 3Q11 North Georgia $ 1,383 $ 1,387 $ 1,408 $ 1,426 $ 1,478 $ (95) Atlanta MSA 1,257 1,252 1,239 1,220 1,192 65 North Carolina 579 576 588 597 607 (28) Coastal Georgia 380 369 366 346 316 64 Gainesville MSA 256 259 262 265 272 (16) East Tennessee 283 276 265 256 245 38 Total Loans $ 4,138 $ 4,119 $ 4,128 $ 4,110 $ 4,110 $ 28

44 Residential Construction – North Georgia (in millions) 3Q12 vs. 3Q12 2Q12 1Q12 4Q11 3Q11 3Q11 Land Loans Developing Land $ 33 $ 39 $ 44 $ 44 $ 51 $ (18) Raw Land 17 18 26 26 25 (8) Lot Loans 111 113 113 118 124 (13) Total 161 170 183 188 200 (39) Construction Loans Spec 8 9 12 12 15 (7) Sold 15 14 11 14 14 1 Total 23 23 23 26 29 (6) Total Res Construction $ 184 $ 193 $ 206 $ 214 $ 229 $ (45)

45 Residential Construction – Atlanta MSA (in millions)  3Q12 vs.  3Q12 2Q12 1Q12 4Q11 3Q11 3Q11 Land Loans Developing Land $ 14 $ 14 $ 17 $ 17 $ 19 $ (5) Raw Land 9 9 13 14 15 (6) Lot Loans 18 22 22 22 22 (4) Total 41 45 52 53 56 (15) Construction Loans Spec 19 24 27 27 28 (9) Sold 8 7 7 6 8 - Total 27 31 34 33 36 (9) Total Res Construction $ 68 $ 76 $ 86 $ 86 $ 92 $ (24)

46 Business Mix Loans (at year-end) (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 & Industrial 428 441 390 410 418 Commercial Construction 164 297 363 500 527 Total Commercial 2,414 2,499 2,532 2,537 2,421 Residential Mortgage 1,135 1,279 1,427 1,526 1,502 Residential Construction 448 695 1,050 1,479 1,829 Consumer / Installment 113 131 142 163 177 Total Loans $ 4,110 $ 4,604 $ 5,151 $ 5,705 $ 5,929

47 Markets Served Loans – (at year-end) (in millions) LOANS BY MARKET 2011 2010 2009 2008 2007 North Georgia $ 1,426 $ 1,689 $ 1,884 $ 2,040 $ 2,060 Atlanta MSA 1,220 1,310 1,435 1,706 2,002 North Carolina 597 702 772 810 806 Coastal Georgia 346 335 405 464 416 Gainesville MSA 265 312 390 420 399 East Tennessee 256 256 265 265 246 Total Loans $ 4,110 $ 4,604 $ 5,151 $ 5,705 $ 5,929

TDRs by Loan Type 48 (in thousands)
LOAN TYPE Accruing(1) Non-Accruing Total TDRs
As of September 30, 2012 Commercial (Sec by RE) Commercial & Industrial Commercial Construction Total Commercial Residential Mortgage Residential Construction Consumer Installment 72,042 $ 8,530 $ 6,960 239 24,016 11,850 103,018 20,619 16,041 1,446 18,922 5,850 337 99 $ 80,572 7,199 35,866 123,637 17,487 24,772 436 Total 138,318 $ 28,014 $ (1) 75 percent of accruing TDR loans have an interest rate of 4 percent of greater. $ 166,332
As of June 30, 2012 Commercial (Sec by RE) Commercial & Industrial Commercial Construction Total Commercial Residential Mortgage Residential Construction Consumer Installment 75,901 $ 6,424 $ 3,713 259 30,727 10,950 110,341 17,633 14,485 2,465 16,450 5,728 366 145 $ 82,325 3,972 41,677 127,974 16,950 22,178 511 Total 141,642 $ 25,971 $ $ 167,613 (1) 67 percent of accruing TDR loans have an interest rate of 4 percent of greater.

49 NPAs by Loan Category, Market, and Activity Credit Quality (1)  Third Quarter 2012 Second Quarter 2012 First Quarter 2012  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) $ 25,896 $ 8,767 $ 34,663 $ 19,115 $ 10,586 $ 29,701 $ 26,081 $ 10,808 $ 36,889 Commercial & industrial 32,678 - 32,678 34,982 - 34,982 36,314 - 36,314 Commercial construction 18,590 3,121 21,711 18,175 2,732 20,907 23,319 3,266 26,585 Total commercial 77,164 11,888 89,052 72,272 13,318 85,590 85,714 14,074 99,788 Residential mortgage 13,996 6,031 20,027 16,631 5,591 22,222 18,741 5,882 24,623 Residential construction 22,935 9,039 31,974 25,530 11,512 37,042 24,341 11,931 36,272 Consumer installment 906 - 906 907 - 907 908 - 908 Total NPAs $ 115,001 $ 26,958 $ 141,959 $ 115,340 $ 30,421 $ 145,761 $ 129,704 $ 31,887 $ 161,591 Balance as a % of Unpaid Principal 68.8% 36.4% 58.8% 68.8% 39.3% 59.4% 70.6% 36.1% 59.4% NPAs BY MARKET North Georgia $ 72,211 $ 14,582 $ 86,793 $ 77,332 $ 13,546 $ 90,878 $ 81,117 $ 14,559 $ 95,676 Atlanta MSA 21,349 5,926 27,275 17,593 8,651 26,244 22,321 7,647 29,968 North Carolina 9,622 2,771 12,393 10,657 3,287 13,944 15,765 4,650 20,415 Coastal Georgia 6,822 864 7,686 5,822 785 6,607 5,622 1,268 6,890 Gainesville MSA 840 1,328 2,168 991 2,998 3,989 2,210 3,387 5,597 East Tennessee 4,157 1,487 5,644 2,945 1,154 4,099 2,669 376 3,045 Total NPAs $ 115,001 $ 26,958 $ 141,959 $ 115,340 $ 30,421 $ 145,761 $ 129,704 $ 31,887 $ 161,591 NPA ACTIVITY Beginning Balance $ 115,340 $ 30,421 $ 145,761 $ 129,704 $ 31,887 $ 161,591 $ 127,479 $ 32,859 $ 160,338 Loans placed on non-accrual 30,535 - 30,535 29,364 - 29,364 32,437 - 32,437 Payments received (3,646) - (3,646) (15,027) - (15,027) (5,945) - (5,945) Loan charge-offs (19,227) - (19,227) (19,382) - (19,382) (14,733) - (14,733) Foreclosures (8,001) 8,001 - (9,319) 9,319 - (9,534) 9,534 - Capitalized costs - 102 102 - 415 415 - 329 329 Note / property sales - (8,822) (8,822) - (10,461) (10,461) - (8,631) (8,631) Write downs - (2,394) (2,394) - (1,008) (1,008) - (2,111) (2,111) Net gains (losses) on sales - (350) (350) - 269 269 - (93) (93) Ending Balance $ 115,001 $ 26,958 $ 141,959 $ 115,340 $ 30,421 $ 145,761 $ 129,704 $ 31,887 $ 161,591 (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.

50 Net Charge-offs by Category and Market Credit Quality (1)  Third Quarter 2012 Second Quarter 2012 First Quarter 2012  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) $ 8,174 1.79 % $ 4,349 .95 % $ 3,697 .81 % Commercial & industrial (259) (.23) 775 .70 669 .62 Commercial construction 3,190 7.74 88 .21 334 .81 Total commercial 11,105 1.81 5,212 .86 4,700 .78 Residential mortgage 3,527 1.23 3,862 1.38 5,375 1.91 Residential construction 5,676 5.69 9,563 9.14 5,314 4.84 Consumer installment 255 .78 259 .88 478 1.72 Total $ 20,563 1.99 $ 18,896 1.85 $ 15,867 1.55 NET CHARGE-OFFS BY MARKET North Georgia $ 6,451 1.84 % $ 12,474 3.58 % $ 9,022 2.56 % Atlanta MSA 9,344 3.02 2,307 .75 2,729 .89 North Carolina 1,674 1.15 3,634 2.52 1,679 1.14 Coastal Georgia 2,486 2.67 211 .23 1,329 1.53 Gainesville MSA 294 .45 (187) (.29) 883 1.35 East Tennessee 314 .45 457 .68 225 .34 Total $ 20,563 1.99 $ 18,896 1.85 $ 15,867 1.55 (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.

51 Net Charge-offs by Category and Market  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 Net 2011 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.

52 Credit Quality – Bulk Loan Sale Summary 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.

53 Margin – Credit Costs Credit Costs Impacting Margin Historically 8 to 12 bps Cost 3Q12 vs. Historical –7 bps (annual earnings impact of $4.4 million) 1 bps = $635 thousand in NIR

Loans / Deposits -Liquidity 54 (in millions) 3Q12 2Q12 3Q11 vs 3Q11 vs 2Q12 Variance Loans $ 4,138 $ 4,119 $ 4,110 19 $ 28 $ Core (DDA, MMDA, Savings) Public Funds CD's Total Deposits (excl Brokered) $ $ 3,138 644 1,817 5,599 $ $ 3,065 659 1,887 5,611 $ $ 2,906 635 2,254 5,795 73 $ 232 $ (15) 9 (70) (437) (12) $ (196) $ Loan to Deposit Ratio 74% 73% 71%
Investment Securities: Available for Sale -Fixed -Floating Held to Maturity -Fixed -Floating Total Investment Securities $ 1,002 760 239 24 2,025 $ 1,027 674 265 18 1,984 $ 1,003 766 329 25 2,123 $ (25) 86 (26) 6 41 $ (1) (6) (90) (1) (98) Percent of Assets (Excludes Floating) 39% 35% 37%

55 Wholesale Borrowings - Liquidity (in millions)  Unused Variance  Capacity 3Q12 2Q12 3Q11 vs 2Q12 vs 3Q11 Wholesale Borrowings (1) Brokered Deposits $ 1,436 $ 233 $ 211 $ 210 $ 22 $ 23 FHLB 1,054 50 125 41 (75) 9 Fed Funds 125 - - - - - Other Wholesale - 53 54 103 (1) (50) Total $ 2,615 $ 336 $ 390 $ 354 $ (54) $ (18) Long-Term Debt Sub-Debt $ 65 $ 65 $ 65 $ - $ - Trust Preferred Securities 55 55 55 - - Total Long-Term Debt $ 120 $ 120 $ 120 $ - $ - (1) Estimated Brokered Deposit Total Capacity at 25% of Assets

56 Business Mix – Deposits at quarter-end (in millions)  3Q12 vs. DEPOSITS BY CATEGORY 3Q12 2Q12 1Q12 4Q11 3Q11 3Q11 Demand & Now $ 1,796 $ 1,735 $ 1,722 $ 1,674 $ 1,686 $ 110 MMDA & Savings 1,342 1,330 1,331 1,228 1,220 122 Core Transaction Deposits 3,138 3,065 3,053 2,902 2,906 232 Time < $100,000 1,118 1,159 1,201 1,326 1,387 (269) Time $100,000 < $250,000 598 625 654 694 744 (146) Public Deposits 612 623 782 844 597 15 Total Core Deposits 5,466 5,472 5,690 5,766 5,634 (168) Time $250,000 101 103 105 113 123 (22) Public Deposits 32 36 38 40 38 (6) Total Customer Deposits 5,599 5,611 5,833 5,919 5,795 (196) Brokered Deposits 224 211 168 179 210 14 Total Deposits $ 5,823 $ 5,822 $ 6,001 $ 6,098 $ 6,005 $ (182)

57 Core Transaction Deposits Geographic Diversity Core Transactions / Total Deposits (%) 3Q12 3Q11 Coastal GA 62.8 % 46.3 % Gainesville MSA 61.0 54.3 North Carolina 58.8 52.8 Atlanta MSA 58.5 53.0 East TN 58.6 53.4 North Georgia 53.7 51.1 Total 55.7 % 50.1 %

58 Non GAAP Reconciliation Tables (in thousands except EPS)  Operating Earnings to GAAP Earnings Reconciliation  3Q12 2Q12 1Q12 4Q11 3Q11 Core net interest revenue reconciliation Core net interest revenue $ 57,371 $ 56,836 $ 58,864 $ 59,050 $ 59,281 Taxable equivalent adjustment (419) (444) (446) (423) (420) Net interest revenue (GAAP) $ 56,952 $ 56,392 $ 58,418 $ 58,627 $ 58,861 Core fee revenue reconciliation Core fee revenue $ 13,003 $ 12,764 $ 13,091 $ 11,442 $ 11,309 Securities gains, net - 6,490 557 4 - Loss on prepayment of borrowings - (6,199) (482) - - Gains from sales of low income housing tax credits - - 728 728 - Hedge ineffectiveness (losses) gains 608 (180) 115 313 575 Interest on Federal tax refund - - 1,100 - - Mark to market on deferred compensation plan assets 153 (8) 270 180 (386) Fee revenue (GAAP) $ 13,764 $ 12,867 $ 15,379 $ 12,667 $ 11,498 Core operating expense reconciliation Core operating expense $ 40,523 $ 41,312 $ 42,670 $ 43,843 $ 44,093 Foreclosed property expense 3,706 1,851 3,825 9,302 2,813 Severance 401 1,155 190 - - Reclassification of pension actuarial gains and losses and prior service costs to OCI - - - (2,245) - Mark to market on deferred compensation plan liability 153 (8) 270 180 (386) Operating expense (GAAP) $ 44,783 $ 44,310 $ 46,955 $ 51,080 $ 46,520

59 Non GAAP Reconciliation Tables  Operating Earnings to GAAP Earnings Reconciliation  3Q12 2Q12 1Q12 4Q11 3Q11 Net interest margin - pre credit reconciliation Net interest margin - pre credit 3.79 % 3.62 % 3.76 % 3.77 % 3.79 % Effect of interest reversals, lost interest, and carry costs of NPAs (.19) (.19) (.23) (.26) (.24) Net interest margin 3.60 % 3.43 % 3.53 % 3.51 % 3.55 % Tangible common equity and tangible equity to tangible assets reconciliation Tangible common equity to tangible assets 5.73 % 5.45 % 5.33 % 5.38 % 5.65 % Effect of preferred equity 2.93 2.79 2.75 2.78 2.77 Tangible equity to tangible assets 8.66 8.24 8.08 8.16 8.42 Effect of goodwill and other intangibles .09 .09 .11 .12 .13 Equity to assets (GAAP) 8.75 % 8.33 % 8.19 % 8.28 % 8.55 % Tangible common equity to risk-weighted assets reconciliation Tangible common equity to risk-weighted assets 8.59 % 8.37 % 8.21 % 8.25 % 8.52 % Effect of preferred equity 4.36 4.35 4.23 4.29 4.33 Tangible equity to risk weighted assets 12.95 12.72 12.44 12.54 12.85 Effect of other comprehensive income .36 .28 .10 (.03) (.29) Effect of trust preferred 1.19 1.19 1.15 1.18 1.19 Tier I capital ratio (Regulatory) 14.50 % 14.19 % 13.69 % 13.69 % 13.75 %

60 Analyst Coverage FIG Partners Sandler O’Neill & Partners (Market Perform - Aug 14, 2012) (Hold, Oct 3, 2012) Keefe, Bruyette & Woods Stephens, Inc. (Market Perform - Oct 8, 2012) (Equal Weight - Aug 2, 2012) Raymond James & Assoc. SunTrust Robinson Humphrey (Market Perform - Sep 26, 2012) (Neutral - Sep 19, 2012)

61 United Community Banks, Inc. Investor Presentation Third Quarter 2012 Copyright 2012 United Community Banks, Inc. All rights reserved.