Is My Money Safe?

Our economy continues to struggle following an unprecedented global recession. It is understandable that depositors are concerned about the health of their financial institution and the safety of their deposits. Below are some questions that may assist during this time of uncertainty.

How is United Bank performing in the current economy?

The Bank continues to perform very well in what everyone agrees is one of the most difficult banking environments experienced in decades. Through April 2009, United Bank earned $4.63 million resulting in a return on assets of 1.78% and return on equity of 19.5%. United Bank’s capital account has grown to a record $73.4 million.

Why is capital important to a bank?

A strong capital position is the foundation and the strength of a bank. United Bank is well capitalized by all regulatory standards. With our strong 2008 results, United Bank continues to be one of the best performing banks in the country. As of December, United bank was the 3rd most profitable bank in Georgia, regardless of size.

Is United Bank still actively making loans?

Yes, our loan portfolio has continued to grow through this economic instability. As of the end of the first quarter loans increased 12% over the last year. This gain was partially due to the purchase of loans formerly held by First Georgia Community Bank in Jackson, GA which United Bank assumed in December 2008. We are very interested in providing new loans to businesses and consumers, and our lenders work aggressively to the meet the borrowing needs of the communities we serve.

As a Freddie Mac mortgage seller, United Bank is actively participating in the President’s financial stability programs. Under the federal Making Home Affordable program, our lenders provide simplified refinance requirements for many mortgages.

Why are bank earnings important?

Banks must raise capital to support deposit and loan growth, and capital can be created by selling stock or by generating earnings. Other than new stock issued to the Employee Stock Ownership Plan, we choose to grow our capital through earnings. Year-to-date 2009 earnings are once again strong. United Bank has never had an unprofitable year and the prospects for the remainder of the year are good.

Will United Bank be a participant in the U.S. Treasury’s Capital Purchase Program (CPP)?

Yes, after evaluating United Bank’s strong earnings position and solid balance sheet the U.S. Treasury approved United Bank for a $14.4 million loan under the Capital Purchase Program. The loan will be structured similarly to loans held with other government agencies that we use to fund the Bank. Since United Bank operates as a Subchapter S Corporation our participation does not require any equity ownership by the government.

Who regulates United Bank?

Unlike the Wall Street Investment Banks that have been in the news so much recently, United Bank is a commercial bank and is closely regulated and examined. Our bank was chartered in the state of Georgia in 1905 and was the 172nd bank in the nation to receive FDIC insurance in the early 1930’s. The Georgia Department of Banking and Finance and the FDIC examine United Bank on a regular schedule.

Who owns United Bank?

United Bank is essentially an employee owned company – 87.4% of United Bank’s stock is owned by its employees, directors and their families. One fifth of the company is owned by our Employee Stock Ownership Plan. The remaining shareholders have been investors of United Bank for decades.

What are bank ratings?

Bank regulator ratings are required to be held confidential. All banks are required to submit detailed financial information to federal regulators quarterly, and this information is in the public domain. Bank ratings are also offered by many private entities, based on the public information posted by regulators. United Bank continues to enjoy very good ratings.

How much deposit coverage do I have now under the FDIC?

The FDIC continues to enhance deposit coverage for accounts held in insured financial institutions. Below is a summary of current coverage amounts:

• The FDIC currently provides coverage for deposits up to $250,000 per depositor, per institution. This coverage limit was recently extended to be effective through December 31, 2013.

• United Bank participates in the Temporary Liquidity Guarantee Program (TLGP) which provides full FDIC coverage for all funds in non-interest bearing transaction deposit accounts. This coverage provision is currently scheduled to expire 12/31/09.

• The TLGP also provides FDIC coverage for interest checking accounts with interest rates no higher than .50 percent. This coverage provision is currently scheduled to expire 12/31/09.

The FDIC provides a website to help depositors answer coverage questions: http://myfdicinsurance.gov/. There are ways to increase your level of coverage at any given bank and our employees welcome the opportunity to work with you to find ways to maximize your FDIC coverage.

How does the TLGP guarantee on non-interest-bearing transaction deposit accounts affect a customer’s insurance coverage for other types of accounts?

The insurance coverage on non-interest bearing accounts is over and above the $250,000 in coverage provided to a customer under the normal coverage program. For example, if a customer has $500,000 in a non-interest bearing transaction account and $250,000 in a certificate of deposit, the FDIC would fully insure the entire $750,000.

Our bankers stand ready to help you determine your coverage specifics and assist you with any additional questions concerning the safety of your deposits.

What best describes United Bank’s banking style?

United Bank is a true community bank; we seek deposits from our local communities and make loans to customers who have local ties to our markets. Our strength is based on the citizens of our communities, not speculators from out of town. While United Bank does make loans to meet local housing needs, our portfolio is as diverse as our communities. The Bank’s exposure to residential acquisition and development lending is well below the state average. We have very limited brokered deposits, depending primarily on relationships with community customers to fund our loans.

Does United Bank have a connection with other financial institutions with “United” in their names?

No. As banks have consolidated over the years the name ‘United’ has become common across the United States. We chose it as our name when we merged several bank charters together for operational efficiency in the early 1980s. United Bank currently has 18 banking offices in Upson, Pike, Lamar, Spalding, Morgan, Newton, Butts and Henry Counties, and we have no affiliation with other ‘United’ banks across the United States.

Who can answer my other questions?

In these uncertain times when the unimaginable is becoming routine, we share your concerns. We welcome your further questions about loans, deposits, investments or anything on your mind. Together we will get through these tough times. Many of your questions can be answered by any of our bankers, but feel free to visit with any of our senior bank executives in their offices or by phone.