UNITED COMMUNITY BANKS, INC.
SUPPLEMENT
dated April 1, 1997
to
PROSPECTUS
dated March 7, 1997
_______________________
300,000 Shares of Common Stock
$1 par value per Share
$22 per Share
_______________________
This Supplement has been prepared solely for use in
conjunction with the Prospectus dated March 7, 1997 (the
"Prospectus") pursuant to which an aggregate of 250,000 shares of
Common Stock (the "Shares") were offered by United Community
Banks, Inc. ("United") at $22.00 per share. United has increased
the number of shares offered by United by 50,000 shares from
250,000 to 300,000 shares at the same offering price of $22.00
per share. This Supplement highlights certain sections of the
March 7, 1997 Prospectus which are affected by the increase in
the number of shares being sold. The price per share and all
other aspects of the Offering including the use of proceeds
remain the same. The sale of an additional 50,000 shares will
increase the proceeds to United by $1,100,000. After the
Offering, 6,937,248 shares will be deemed outstanding (including
shares underlying the prime plus 1/4% Convertible Subordinated
Payable-in-Kind Debentures due December 31, 2006 and presently
exercisable options to acquire 58,400 shares). The net proceeds
from the sale of the shares of Common Stock will be $6,400,000,
after the deduction of estimated offering expenses payable by
United. Set forth below is a table containing revised summary
consolidated financial information and a revised capitalization
table:
1<PAGE>
United Community Banks, Inc.
Summary Consolidated Financial Information
(Dollars in thousands, except per share amounts)
<TABLE>
<CAPTION>
Pro Forma
Consolidated
As Adjusted<F3>
-------------------
December 31, Sept. 30, Sept. 30,
----------------------------------------------------------- -------------------
1991 1992 1993 1994 1995 1996 1996
---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Balance Sheet Data
Total assets . . . . . . . . . . . . . $269,684 $332,013 $393,632 $456,936 659,669 779,565 789,965
Loans, gross . . . . . . . . . . . . . 180,254 224,057 283,611 341,621 456,140 564,685 564,685
Deposits . . . . . . . . . . . . . . . 242,957 300,020 349,765 393,270 590,656 680,337 680,337
Long term debt . . . . . . . . . . . . 5,277 7,800 7,400 9,400 11,309 10,736 10,736
Stockholders' equity . . . . . . . . . 17,968 20,942 25,449 30,217 44,027 48,766 56,266
</TABLE>
<TABLE>
<CAPTION>
Pro Forma Consolidated
As Adjusted<F3>
------------------------------
As of December 31, Sept. 30, Sept. 30, Dec. 31,
------------------------------------------------- ------------------------------
1991 1992 1993 1994 1995 1996 1996 1995
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Statement of Earnings Data
Net interest income . . . . . . . . . $9,322 $11,131 $14,516 $18,217 22,919 22,632 22,802 23,147
Provision for loan losses . . . . . . 834 472 842 935 1,040 915 915 1,040
Noninterest income . . . . . . . . . . 1,551 2,157 3,700 3,762 4,264 3,740 3,740 4,264
Noninterest expense . . . . . . . . . 7,377 8,635 11,705 13,902 17,854 16,803 16,803 17,854
Net earnings . . . . . . . . . . . . . 2,082 3,126 4,202 5,200 6,051 5,724 5,836 6,201
Per Share Data
Book value (period end)<F1> . . . . . . 3.29 3.81 4.55 5.41 7.03 7.79 8.35 7.65
Net earnings . . . . . . . . . . . . . 0.38 0.57 0.76 0.93 1.04 0.91 0.87 0.99
Weighted average outstanding shares . 5,454,040 5,492.435 5,545,110 5,589,365 5,813,615 6,260,280 6,738,848 6,292,183
Dividends . . . . . . . . . . . . . . 0.03 0.05 0.04 0.04 0.07 0.04 0.04 0.04
Ratios Return on average assets . . . . 0.82% 1.04% 1.16% 1.22% 1.08% 1.05% 1.07% 1.08%
Return on average stockholders' equity 12.23% 16.07% 18.12% 18.68% 16.30% 16.49% 15.56% 15.17%
Net interest margin<F2> . . . . . . . . 4.27% 4.27% 4.57% 4.88% 4.60% 4.64% 4.60% 4.56%
Average stockholders' equity to average assets 6.73% 6.47% 6.41% 6.51% 6.60% 6.45% 6.86% 7.13%
______________
<FN>
<F1> Represents stockholders' equity divided by the number of outstanding
shares at period end.
<F2> Represents net interest income as a percentage of average interest-earning
assets.
<F3> Gives effect to the application of the net proceeds of the Offering,
issuance of the 2006 Debentures and conversion of the 2000 Debentures
as of December 31, 1996. See Management's Discussion and Analysis of
Financial Condition and Results of Operations - Financial Information
for the Nine Months Ended September 30, 1996 - Developments Since
September 30, 1996.
</FN>
</TABLE>
2<PAGE>
CAPITALIZATION
The following table sets forth the consolidated capitalization of
United at September 30, 1996, and as adjusted at that date to give effect
to the sale by United of the 2006 Debentures, conversion of the 2000
Debentures and the sale of 300,000 shares of Common Stock and the
application of the estimated net proceeds therefrom as described in "USE
OF PROCEEDS" and as further adjusted to give effect to the application of
the net proceeds of the Offering. This table should be reviewed in
conjunction with the United's Consolidated Financial Statements and the
related notes thereto appearing elsewhere in this Prospectus.
<TABLE>
<CAPTION>
September 30, 1996
------------------
Actual As Adjusted <F1>
------ ----------------
<S> <C> <C>
($ in thousands)
Long-Term Debt . . . . . . . . . . . . . . . . . . . . $10,736 $10,736
Convertible Subordinated Debentures . . . . . . . . . . 1,000 3,500
Stockholders' Equity:
Preferred Stock, $1.00 par value; 10,000,000 shares
authorized, no shares issued and outstanding
Common Stock, $1.00 par value; 10,000,000 shares
authorized, 6,260,280 shares issued and
outstanding, 6,738,848 shares issued and
outstanding, as adjusted 6,260 6,739
Capital surplus . . . . . . . . . . . . . . . . . . . . 14,520 21,541
Retained earnings . . . . . . . . . . . . . . . . . . . 28,471 28,471
Unrealized losses on securities available for sale . . (485) (485)
Total stockholders' equity . . . . . . . . . . . . . . 48,766 56,266
Total capitalization 60,502 70,502
__________________
<FN>
<F1> Gives effect to the application of the net proceeds of the Offering,
proceeds from issuance of 2006 Debentures and conversion of the 2000
Debentures as of December 31, 1996. See Management's Discussion and
Analysis of Financial Condition and Results of Operations - Financial
Information for the Nine Months Ended September 30, 1996 - Developments
Since September 30, 1996.
</FN>
</TABLE>
