##### Table of Contents



U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10  QSB

(Mark One)

× Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2003

Transition report under Section 13 or 15(d) of the Exchange Act

For the transition period from  to

Commission file number 333-

UNITED COMMUNITY BANKSHARES OF FLORIDA, INC.

(Exact Name of Small Business Issuer as Specified in Its Charter)


|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Florida                                                        |  | 04-3691059                          
|                                                               |  |                                     
|(State or Other Jurisdiction
of Incorporation or Organization) |  | (I.R.S. Employer
(Identification No.

|                                                                                               
|-----------------------------------------------------------------------------------------------
|1411 Edgewater Drive, Suite 200
Orlando, Florida 32804
(Address of Principal Executive Offices)
|                                                                                               
|(407) 447-0386
(Issuers Telephone Number, Including Area Code)                                
|                                                                                               
|(Former Name, Former Address and Former Fiscal Year, if Changed, Since Last Report)            

Check whether the issuer: (1) filed all reports required to be filed by
Section 12,13 or 15(d)
Of the Exchange Act during the past 12 months (or for such shorter period that
the registrant was
Required to file such reports), and (2) has been subject to such filing
requirements for the past 90
Days:

YES × NO

State the number of shares outstanding of each of the issuers classes of common equity, as
Of the latest practicable date;

|                                       |  |                             
|-------------------------------------- |  | ----------------------------
|Common Stock, par value $.01 per share |  | 3,256,888 Shares            
|                                       |  |                             
|(class)                                |  | Outstanding at June 30, 2003





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TABLE OF CONTENTS



|                                 |                                                                                               |                                                                      |  |  |  |  |  | 
|-------------------------------- | --------------------------------------------------------------------------------------------- | -------------------------------------------------------------------- |  |  |  |  |  | 
|PART 1. Financial Information   
|                                 | Item 1. Financial Statements                                                                 
|                                 |                                                                                               | Condensed Consolidated Balance Sheets                               
|                                 |                                                                                               | Condensed Consolidated Statements of Operations                     
|                                 |                                                                                               | Condensed Consolidated Statements of Changes in Shareholders Equity
|                                 |                                                                                               | Condensed Consolidated Statements of Cash Flows                     
|                                 |                                                                                               | Notes to Condensed Consolidated Financial Statements (unaudited)    
|                                 | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|                                 | Item 3. Controls and Procedures                                                              
|PART II. OTHER INFORMATION      
|                                 | Item 6. Exhibits and Reports on Form 8-K                                                     
|SIGNATURES                      
|EXHIBIT INDEX                   
|Section 302 Certification of CEO
|Section 302 Certification of CFO
|Section 906 Certification of CEO
|Section 906 Certification of CFO



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##### Table of Contents



UNITED COMMUNITY BANKSHARES OF FLORIDA, INC.

INDEX

|                                                                                              |  |  |      |                                                                                                                          |  |      |     | 
|--------------------------------------------------------------------------------------------- |  |  | ---- | ------------------------------------------------------------------------------------------------------------------------ |  | ---- | --- | 
|                                                                                              |  |  |      |                                                                                                                          |  | Page
|                                                                                              |  |  |      |                                                                                                                          |  |     
|PART I. FINANCIAL INFORMATION                                                                 |  |  |      |                                                                                                                         
|Item 1. Financial Statements                                                                  |  |  |      |                                                                                                                         
|                                                                                              |  |  |      | Condensed Consolidated Balance Sheets 
At June 30, 2003 and at December 31, 2002 (unaudited)                            |  |      | 2   | 
|                                                                                              |  |  |      | Condensed Consolidated Statements of Operations 
Six Months and three months ended June 30, 2003 and 2002 (unaudited)   |  |      | 3   | 
|                                                                                              |  |  |      | Condensed Consolidated Statements of Changes in Shareholders Equity
Six Months Ended June 30, 2003 and 2002 (unaudited) |  |      | 4   | 
|                                                                                              |  |  |      | Condensed Consolidated Statements of Cash Flows -
Six Months Ended June 30, 2003 and 2002 (unaudited)                    |  |      | 5   | 
|                                                                                              |  |  |      | Notes to condensed Consolidated Financial Statements (unaudited)                                                         |  |      | 6-8 | 
|Item 2. Managements Discussion and Analysis of Financial Condition And Results of Operations |  |  | 8-11 |                                                                                                                         
|Item 3. Controls and Procedures                                                               |  |  | 12   |                                                                                                                         
|PART II. OTHER INFORMATION                                                                    |  |  |      |                                                                                                                         
|Item 6. Exhibits and Reports on Form 8-K                                                      |  |  | 13   |                                                                                                                         
|SIGNATURES                                                                                    |  |  | 14   |                                                                                                                         

1



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##### Table of Contents






PART 1. Financial Information




Item 1. Financial Statements




UNITED COMMUNITY BANKSHARES OF
FLORIDA, INC.

Condensed Consolidated Balance Sheets
($ in thousands, except share amounts)
(Unaudited)

|                                                                             |                                                                                                                                                 |                                            |                            |         |          |        |              |        |         |        | 
|---------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | -------------------------- | ------- | -------- | ------ | ------------ | ------ | ------- | ------ | 
|                                                                             |                                                                                                                                                 |                                            |                            |         | June 30, |        | December 31,
|                                                                             |                                                                                                                                                 |                                            |                            |         |          |        |             
|                                                                             |                                                                                                                                                 |                                            |                            |         | 2003     |        | 2002        
|                                                                             |                                                                                                                                                 |                                            |                            |         |          |        |             
|Assets                                                                       |                                                                                                                                                 |                                            |                            |         |          |        |              |       
|Cash and due from banks                                                      |                                                                                                                                                 | $                                          | 13,080                     |         |          | $      | 4,441        |       
|Interest-bearing demand deposits with banks                                  |                                                                                                                                                 |                                            | 20,613                     |         |          |        | 5,092        |       
|Federal funds sold                                                           |                                                                                                                                                 |                                            | 30,417                     |         |          |        | 15,033       |       
|                                                                             |                                                                                                                                                 |                                            |                            |         |          |        |              |       
|                                                                             | Total cash and cash equivalents                                                                                                                 |                                            |                            | 64,110  |          |        |              | 24,566 |        
|Securities available for sale                                                |                                                                                                                                                 |                                            | 67,711                     |         |          |        | 29,302       |       
|Loans, net of allowance for loan losses of $2,065 in 2003 and
$1,014 in 2002 |                                                                                                                                                 |                                            | 168,885                    |         |          |        | 80,162       |       
|Premises and equipment, net                                                  |                                                                                                                                                 |                                            | 5,547                      |         |          |        | 3,916        |       
|Federal Home Loan Bank stock, at cost                                        |                                                                                                                                                 |                                            | 106                        |         |          |        | 0            |       
|Accrued interest receivable                                                  |                                                                                                                                                 |                                            | 999                        |         |          |        | 381          |       
|Deferred tax asset                                                           |                                                                                                                                                 |                                            | 427                        |         |          |        | 226          |       
|Other Assets                                                                 |                                                                                                                                                 |                                            | 1,587                      |         |          |        | 93           |       
|                                                                             |                                                                                                                                                 |                                            |                            |         |          |        |              |       
|                                                                             |                                                                                                                                                 | Total Assets                               |                            | $       | 309,372  |        |              | $      | 138,646 |       
|                                                                             |                                                                                                                                                 |                                            |                            |         |          |        |              |       
|Liabilities and Shareholders Equity                                         |                                                                                                                                                 |                                            |                            |         |          |        |              |       
|Liabilities:                                                                 |                                                                                                                                                 |                                            |                            |         |          |        |              |       
|                                                                             | Non-interest bearing demand deposits                                                                                                            |                                            | $                          | 38,113  |          |        | $            | 16,130 |        
|                                                                             | Savings and NOW deposits                                                                                                                        |                                            |                            | 19,421  |          |        |              | 6,238  |        
|                                                                             | Money-market deposits                                                                                                                           |                                            |                            | 99,999  |          |        |              | 45,860 |        
|                                                                             | Time deposits                                                                                                                                   |                                            |                            | 117,464 |          |        |              | 49,886 |        
|                                                                             |                                                                                                                                                 |                                            |                            |         |          |        |              |       
|                                                                             |                                                                                                                                                 | Total Deposits                             |                            |         | 274,997  |        |              |        | 118,114 |       
|Other liabilities                                                            |                                                                                                                                                 |                                            | 820                        |         |          |        | 270          |       
|Other Borrowings                                                             |                                                                                                                                                 |                                            | 1,868                      |         |          |        | 794          |       
|                                                                             |                                                                                                                                                 |                                            |                            |         |          |        |              |       
|                                                                             |                                                                                                                                                 | Total Liabilities                          |                            |         | 277,685  |        |              |        | 119,178 |       
|                                                                             |                                                                                                                                                 |                                            |                            |         |          |        |              |       
|Shareholders Equity:                                                        |                                                                                                                                                 |                                            |                            |         |          |        |              |       
|                                                                             | Preferred stock                                                                                                                                 |                                            |                            |        |          |        |              |       |        
|                                                                             | Common stock, $.01 par value; 20 million shares authorized;
3,256,888 and 2 million shares issued and outstanding
at 2003 and 2002 respectively |                                            |                            | 33      |          |        |              | 20     |        
|                                                                             | Additional paid in capital                                                                                                                      |                                            |                            | 31,970  |          |        |              | 19,980 |        
|                                                                             | Accumulated deficit                                                                                                                             |                                            |                            | (564    | )        |        |              | (919   | )      
|                                                                             | Accumulated other comprehensive income                                                                                                          |                                            |                            | 248     |          |        |              | 387    |        
|                                                                             |                                                                                                                                                 |                                            |                            |         |          |        |              |       
|                                                                             |                                                                                                                                                 |                                            | Total Shareholders equity |         |          | 31,687 |              |        |         | 19,468 | 
|                                                                             |                                                                                                                                                 |                                            |                            |         |          |        |              |       
|                                                                             |                                                                                                                                                 | Total liabilities and Shareholders equity |                            | $       | 309,372  |        |              | $      | 138,646 |       
|                                                                             |                                                                                                                                                 |                                            |                            |         |          |        |              |       

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UNITED COMMUNITY BANKSHARES OF
FLORIDA, INC.

Condensed Consolidated Statements of Operations
($ in thousands, except share amounts)
(Unaudited)

|                                 |                                               |                                                     |      |                  |       |             |       |       |       |      |      |       |       |   |       |     |       |  
|-------------------------------- | --------------------------------------------- | --------------------------------------------------- | ---- | ---------------- | ----- | ----------- | ----- | ----- | ----- | ---- | ---- | ----- | ----- | - | ----- | --- | ----- | -
|                                 |                                               |                                                     |      | Six Months Ended |       | 2nd Quarter
|                                 |                                               |                                                     |      | June 30,         |       | June 30,   
|                                 |                                               |                                                     |      |                  |       |            
|                                 |                                               |                                                     |      | 2003             |       | 2002        |       | 2003  |       | 2002
|                                 |                                               |                                                     |      |                  |       |             |       |       |       |     
|Interest income:                 |                                               |                                                     |      |                  |       |             |       |       |       |      |      |       |       |   |       |    
|                                 | Loans                                         |                                                     | $    | 5,472            |       |             | $     | 1,724 |       |      | $    | 2,877 |       |   | $     | 947 |      
|                                 | Securities                                    |                                                     |      | 664              |       |             |       | 625   |       |      |      | 308   |       |   |       | 327 |      
|                                 | Other interest-earning assets                 |                                                     |      | 342              |       |             |       | 165   |       |      |      | 191   |       |   |       | 103 |      
|                                 |                                               |                                                     |      |                  |       |             |       |       |       |      |      |       |       |   |       |    
|                                 |                                               | Total interest income                               |      |                  | 6,478 |             |       |       | 2,514 |      |      |       | 3,376 |   |       |     | 1,377 |  
|                                 |                                               |                                                     |      |                  |       |             |       |       |       |      |      |       |       |   |       |    
|Interest expense:                |                                               |                                                     |      |                  |       |             |       |       |       |      |      |       |       |   |       |    
|                                 | Deposits                                      |                                                     |      | 2,837            |       |             |       | 971   |       |      |      | 1,497 |       |   |       | 565 |      
|                                 | Other borrowings                              |                                                     |      | 3                |       |             |       | 9     |       |      |      | 2     |       |   |       | 5   |      
|                                 |                                               |                                                     |      |                  |       |             |       |       |       |      |      |       |       |   |       |    
|                                 |                                               | Total interest expense                              |      |                  | 2,840 |             |       |       | 980   |      |      |       | 1,499 |   |       |     | 570   |  
|                                 |                                               |                                                     |      |                  |       |             |       |       |       |      |      |       |       |   |       |    
|                                 |                                               | Net interest income                                 |      |                  | 3,638 |             |       |       | 1,534 |      |      |       | 1,877 |   |       |     | 807   |  
|Provision for loan losses        |                                               |                                                     | 222  |                  |       |             | 263   |       |       |      | 102  |       |       |   | 143   |    
|                                 |                                               |                                                     |      |                  |       |             |       |       |       |      |      |       |       |   |       |    
|                                 |                                               | Net interest income after provision for loan losses |      |                  | 3,416 |             |       |       | 1,271 |      |      |       | 1,775 |   |       |     | 664   |  
|                                 |                                               |                                                     |      |                  |       |             |       |       |       |      |      |       |       |   |       |    
|Noninterest income:              |                                               |                                                     |      |                  |       |             |       |       |       |      |      |       |       |   |       |    
|                                 | Service charges and fees                      |                                                     |      | 249              |       |             |       | 100   |       |      |      | 132   |       |   |       | 59  |      
|                                 | Gain on sale of Other Real Estate             |                                                     |      | 28               |       |             |       |      |       |      |      | 3     |       |   |       |    |      
|                                 | Gain on sale of securities available for sale |                                                     |      | 5                |       |             |       |      |       |      |      |      |       |   |       |    |      
|                                 |                                               |                                                     |      |                  |       |             |       |       |       |      |      |       |       |   |       |    
|                                 |                                               | Total noninterest income                            |      |                  | 282   |             |       |       | 100   |      |      |       | 135   |   |       |     | 59    |  
|                                 |                                               |                                                     |      |                  |       |             |       |       |       |      |      |       |       |   |       |    
|Noninterest expense:             |                                               |                                                     |      |                  |       |             |       |       |       |      |      |       |       |   |       |    
|                                 | Salaries and employee benefits                |                                                     |      | 1,459            |       |             |       | 847   |       |      |      | 738   |       |   |       | 423 |      
|                                 | Occupancy expense                             |                                                     |      | 325              |       |             |       | 179   |       |      |      | 170   |       |   |       | 88  |      
|                                 | Other                                         |                                                     |      | 1,314            |       |             |       | 506   |       |      |      | 613   |       |   |       | 261 |      
|                                 |                                               |                                                     |      |                  |       |             |       |       |       |      |      |       |       |   |       |    
|                                 |                                               | Total noninterest expense                           |      |                  | 3,098 |             |       |       | 1,532 |      |      |       | 1,521 |   |       |     | 772   |  
|                                 |                                               |                                                     |      |                  |       |             |       |       |       |      |      |       |       |   |       |    
|                                 |                                               | Income (Loss) before income tax benefit             |      |                  | 600   |             |       |       | (161  | )    |      |       | 389   |   |       |     | (49   | )
|Income tax (benefit)             |                                               |                                                     | 245  |                  |       |             | (56   | )     |       |      | 152  |       |       |   | (15   | )  
|                                 |                                               |                                                     |      |                  |       |             |       |       |       |      |      |       |       |   |       |    
|                                 |                                               | Net income (loss)                                   |      | $                | 355   |             |       | $     | (105  | )    |      | $     | 237   |   |       | $   | (34   | )
|                                 |                                               |                                                     |      |                  |       |             |       |       |       |      |      |       |       |   |       |    
|Basic earnings per share         |                                               | $                                                   | 0.12 |                  |       | $           | (0.05 | )     |       | $    | 0.08 |       |       | $ | (0.01 | )  
|                                 |                                               |                                                     |      |                  |       |             |       |       |       |      |      |       |       |   |       |    
|Fully diluted earnings per share |                                               | $                                                   | 0.11 |                  |       | $           | (0.05 | )     |       | $    | 0.07 |       |       | $ | (0.01 | )  
|                                 |                                               |                                                     |      |                  |       |             |       |       |       |      |      |       |       |   |       |    

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UNITED COMMUNITY BANKSHARES OF
FLORIDA, INC.

Condensed Consolidated Statements of Changes in Shareholders Equity
(Unaudited)
(In thousands)

|                                                              |                            |                                                                |    |        |   |         |        |             |   |               |      |               |      |       |      |             |      |   |        |     |      |  
|------------------------------------------------------------- | -------------------------- | -------------------------------------------------------------- | -- | ------ | - | ------- | ------ | ----------- | - | ------------- | ---- | ------------- | ---- | ----- | ---- | ----------- | ---- | - | ------ | --- | ---- | -
|                                                              |                            |                                                                |    |        |   |         |        |             |   |               |      |               |      |       |      | Accumulated |      |   |        |    
|                                                              |                            |                                                                |    |        |   |         |        | Additional  |   |               |      |               |      | Other |      | Total      
|                                                              |                            |                                                                |    | Common |   | Paid-in |        | Accumulated |   | Comprehensive |      | Shareholders'
|                                                              |                            |                                                                |    | Stock  |   | Capital |        | Deficit     |   | Income (Loss) |      | Equity       
|                                                              |                            |                                                                |    |        |   |         |        |             |   |               |      |              
|Balance December 31, 2001                                     |                            | $                                                              | 20 |        |   | $       | 19,980 |             |   | $             | (786 | )             |      | $     | (122 | )           |      | $ | 19,092 |    
|                                                              |                            |                                                                |    |        |   |         |        |             |   |               |      |               |      |       |      |             |      |   |        |    
|Comprehensive Income (Loss):                                  |                            |                                                                |    |        |   |         |        |             |   |               |      |               |      |       |      |             |      |   |        |    
|                                                              |                            | Net income (loss)                                              |    |        |  |         |        |             |  |               |      |               | (105 | )     |      |             |     |   |        |     | (105 | )
|                                                              |                            | Net change in unrealized
loss on securities available
for sale |    |        |  |         |        |             |  |               |      |               |     |       |      |             | 259  |   |        |     | 259  |  
|                                                              |                            |                                                                |    |        |   |         |        |             |   |               |      |               |      |       |      |             |      |   |        |    
|                                                              | Total Comprehensive Income |                                                                |    |       |   |         |        |            |   |               |      |              |      |       |      |            |      |   |        | 154 |     
|                                                              |                            |                                                                |    |        |   |         |        |             |   |               |      |               |      |       |      |             |      |   |        |    
|Balance at June 30, 2002                                      |                            | $                                                              | 20 |        |   | $       | 19,980 |             |   | $             | (891 | )             |      | $     | 137  |             |      | $ | 19,246 |    
|                                                              |                            |                                                                |    |        |   |         |        |             |   |               |      |               |      |       |      |             |      |   |        |    
|Balance December 31, 2002                                     |                            | $                                                              | 20 |        |   | $       | 19,980 |             |   | $             | (919 | )             |      | $     | 387  |             |      | $ | 19,468 |    
|                                                              |                            |                                                                |    |        |   |         |        |             |   |               |      |               |      |       |      |             |      |   |        |    
|Comprehensive Income:                                         |                            |                                                                |    |        |   |         |        |             |   |               |      |               |      |       |      |             |      |   |        |    
|                                                              |                            | Net income                                                     |    |        |  |         |        |             |  |               |      |               | 355  |       |      |             |     |   |        |     | 355  |  
|                                                              |                            | Net change in unrealized
gain on securities available
for sale |    |        |  |         |        |             |  |               |      |               |     |       |      |             | (139 | ) |        |     | (139 | )
|                                                              |                            |                                                                |    |        |   |         |        |             |   |               |      |               |      |       |      |             |      |   |        |    
|                                                              | Total Comprehensive Income |                                                                |    |       |   |         |        |            |   |               |      |              |      |       |      |            |      |   |        | 216 |     
|Issuance of Common Shares
in acquisition                      |                            |                                                                | 11 |        |   |         | 9,742  |             |   |               |     |               |      |       |     |             |      |   | 9,753  |    
|Issuance of Common Shares
in Employee/Director Stock
Offering |                            |                                                                | 2  |        |   |         | 2,248  |             |   |               |     |               |      |       |     |             |      |   | 2,250  |    
|                                                              |                            |                                                                |    |        |   |         |        |             |   |               |      |               |      |       |      |             |      |   |        |    
|Balance at June 30, 2003                                      |                            | $                                                              | 33 |        |   | $       | 31,970 |             |   | $             | (564 | )             |      | $     | 248  |             |      | $ | 31,687 |    
|                                                              |                            |                                                                |    |        |   |         |        |             |   |               |      |               |      |       |      |             |      |   |        |    

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UNITED COMMUNITY BANKSHARES OF
FLORIDA, INC.

Condensed Consolidated Statements of Cash Flows
($ in thousands)
(Unaudited)

|                                                  |                                                                                                     |                         |                                                  |                                                     |   |                  |         |      |   |         |         |  
|------------------------------------------------- | --------------------------------------------------------------------------------------------------- | ----------------------- | ------------------------------------------------ | --------------------------------------------------- | - | ---------------- | ------- | ---- | - | ------- | ------- | -
|                                                  |                                                                                                     |                         |                                                  |                                                     |   | Six Months Ended
|                                                  |                                                                                                     |                         |                                                  |                                                     |   | June 30,        
|                                                  |                                                                                                     |                         |                                                  |                                                     |   |                 
|                                                  |                                                                                                     |                         |                                                  |                                                     |   | 2003             |         | 2002
|                                                  |                                                                                                     |                         |                                                  |                                                     |   |                  |         |     
|Cash flows from operating activities:             |                                                                                                     |                         |                                                  |                                                     |   |                  |         |     
|                                                  | Net Income (loss)                                                                                   |                         | $                                                | 355                                                 |   |                  | $       | (105 | )
|                                                  | Adjustments to reconcile net income or loss to net cash provided by
(used in) operating activities: |                         |                                                  |                                                     |   |                  |         |      |  
|                                                  |                                                                                                     |                         |                                                  | Depreciation                                        |   |                  | 246     |      |   |         | 79      |  
|                                                  |                                                                                                     |                         |                                                  | Provision for loan loss                             |   |                  | 222     |      |   |         | 263     |  
|                                                  |                                                                                                     |                         |                                                  | Net amortization of securities available for sale   |   |                  | 481     |      |   |         | 62      |  
|                                                  |                                                                                                     |                         |                                                  | Deferred income taxes                               |   |                  | 167     |      |   |         | (56     | )
|                                                  |                                                                                                     |                         |                                                  | Gain on sale of securities available for sale       |   |                  | (5      | )    |   |         |        |  
|                                                  |                                                                                                     | Changes in balances of: |                                                  |                                                     |   |                  |         |      |   |        
|                                                  |                                                                                                     |                         |                                                  | Interest Receivable                                 |   |                  | (87     | )    |   |         | (102    | )
|                                                  |                                                                                                     |                         |                                                  | Interest Payable                                    |   |                  | (203    | )    |   |         | 37      |  
|                                                  |                                                                                                     |                         |                                                  | Other accounts  net                                |   |                  | (143    | )    |   |         | (3      | )
|                                                  |                                                                                                     |                         |                                                  |                                                     |   |                  |         |     
|                                                  |                                                                                                     |                         |                                                  | Net cash provided by (used in) operating activities |   |                  | 1,033   |      |   |         | 175     |  
|                                                  |                                                                                                     |                         |                                                  |                                                     |   |                  |         |     
|Cash flows from investing activities:             |                                                                                                     |                         |                                                  |                                                     |   |                  |         |     
|                                                  |                                                                                                     |                         | Purchase of securities available for sale        |                                                     |   | (48,748          | )       |      |   | (9,948  | )      
|                                                  |                                                                                                     |                         | Sales and calls of securities available for sale |                                                     |   | 7,717            |         |      |   | 1,000   |        
|                                                  |                                                                                                     |                         | Repayment of securities available for sale       |                                                     |   | 13,517           |         |      |   | 2,045   |        
|                                                  |                                                                                                     |                         | Net increase in loans                            |                                                     |   | (11,578          | )       |      |   | (19,287 | )      
|                                                  |                                                                                                     |                         | Purchase of premises and equipment               |                                                     |   | (50              | )       |      |   | (1,485  | )      
|                                                  |                                                                                                     |                         |                                                  |                                                     |   |                  |         |     
|                                                  |                                                                                                     |                         |                                                  | Net cash used in investing activities               |   |                  | (39,142 | )    |   |         | (27,675 | )
|                                                  |                                                                                                     |                         |                                                  |                                                     |   |                  |         |     
|Cash flows from financing activities:             |                                                                                                     |                         |                                                  |                                                     |   |                  |         |     
|                                                  |                                                                                                     |                         | Net increase in deposits                         |                                                     |   | 48,736           |         |      |   | 36,539  |        
|                                                  |                                                                                                     |                         | Net increase in other borrowings                 |                                                     |   | 1,074            |         |      |   | (469    | )      
|                                                  |                                                                                                     |                         | Proceeds from issuance of stock                  |                                                     |   | 2,250            |         |      |   |        |        
|                                                  |                                                                                                     |                         |                                                  |                                                     |   |                  |         |     
|                                                  |                                                                                                     |                         |                                                  | Net cash provided by financing activities           |   |                  | 52,060  |      |   |         | 36,070  |  
|                                                  |                                                                                                     |                         |                                                  |                                                     |   |                  |         |     
|Net increase in cash and cash equivalents         |                                                                                                     |                         | 13,951                                           |                                                     |   |                  | 8,570   |     
|Cash and cash equivalents at beginning of period  |                                                                                                     |                         | 24,566                                           |                                                     |   |                  | 14,388  |     
|Cash and cash equivalents acquired in acquisition |                                                                                                     |                         | 25,593                                           |                                                     |   |                  |        |     
|                                                  |                                                                                                     |                         |                                                  |                                                     |   |                  |         |     
|Cash and cash equivalents at end of period        |                                                                                                     | $                       | 64,110                                           |                                                     |   | $                | 22,958  |     
|                                                  |                                                                                                     |                         |                                                  |                                                     |   |                  |         |     
|Supplemental disclosure of cash flow information: |                                                                                                     |                         |                                                  |                                                     |   |                  |         |     
|                                                  |                                                                                                     |                         | Cash paid during the period for interest         |                                                     | $ | 3,043            |         |      | $ | 944     |        
|                                                  |                                                                                                     |                         |                                                  |                                                     |   |                  |         |     
|                                                  |                                                                                                     |                         | Cash paid during the period for income taxes     |                                                     | $ | 317,000          |         |      | $ |        |        
|                                                  |                                                                                                     |                         |                                                  |                                                     |   |                  |         |     

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UNITED COMMUNITY BANKSHARES OF FLORIDA, INC.

Notes to Condensed Consolidated Financial Statements (unaudited)



|(1) |  | Description of Business and Basis of Presentation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    |  | United Community Bankshares of Florida, Inc. (the Holding Company) was
incorporated as a
Florida corporation on April 15, 2002. On January 13, 2003, the Holding
Company acquired
100% of the outstanding shares of United Heritage Bank and Community
United Bank of Florida (the Banks) (collectively, the Company) through an
exchange of Holding Company common shares for the outstanding shares in
the Banks. This transaction has been accounted for as a combination of
interests under common control as it relates to the acquisition of United
Heritage Bank, and as a purchase transaction as it relates to Community
United Bank.              
|   
|    |  | The Holding Companys only business is the ownership and operation of the
Banks. The Banks
are incorporated under the laws of the State of Florida and are Florida
banking corporations. The
Banks provide a variety of community banking services to businesses and
individuals through
their seven banking offices throughout Central Florida. The Banks
deposits are insured by the
FDIC to the extent provided by law.                                                                                                                                                                                                                                 
|   
|    |  | The accompanying consolidated financial statements for the six months
ending June 30, 2003 include the consolidated accounts of the Holding
Company and the Banks. The accompanying financial statements for the six
months ending June 30, 2002 include only one bank (United Heritage Bank).
The January 13, 2003 acquisition of Community United Bank is the major
contributor to the large increases in elements of operations when
comparing the six months periods ending June 30, 2003 to June 30, 2002.
The following table illustrates the components of this acquisition, with
the remaining growth attributable to the normal course of business:

|                          |                                         |   |                  |     |      |   |        |      |             |   |       |     |  |   |           |     | 
|------------------------- | --------------------------------------- | - | ---------------- | --- | ---- | - | ------ | ---- | ----------- | - | ----- | --- |  | - | --------- | --- | 
|                          |                                         |   |                  |     |      |   |        |      |             |   |       |     |  |   | Community
|                          |                                         |   | June             |     | June |   | Change |      | United Bank
|                          |                                         |   |                  |     |      |   |        |      |            
|                          |                                         |   | 2003             |     | 2002 |   |        |      |             |   | 2002 
|                          |                                         |   |                  |     |      |   |        |      |             |   |      
|                          |                                         |   | ($ in thousands)
|Net interest income       |                                         | $ | 3,638            |     |      | $ | 1,534  |      |             | $ | 2,104 |     |  | $ | 1,451     |    
|Provision for loan losses |                                         |   | 222              |     |      |   | 263    |      |             |   | (41   | )   |  |   | 191       |    
|Total noninterest income  |                                         |   | 282              |     |      |   | 100    |      |             |   | 182   |     |  |   | 61        |    
|Total noninterest expense |                                         |   | 3,098            |     |      |   | 1,532  |      |             |   | 1,566 |     |  |   | 900       |    
|                          |                                         |   |                  |     |      |   |        |      |             |   |       |     |  |   |           |    
|                          | Income (loss) before
income tax benefit |   |                  | 600 |      |   |        | (161 | )           |   |       | 761 |  |   |           | 421 | 
|Income tax (benefit)      |                                         |   | 245              |     |      |   | (56    | )    |             |   | 301   |     |  |   | 158       |    
|                          |                                         |   |                  |     |      |   |        |      |             |   |       |     |  |   |           |    
|                          | Net income (loss)                       |   | $                | 355 |      |   | $      | (105 | )           |   | $     | 460 |  |   | $         | 263 | 
|                          |                                         |   |                  |     |      |   |        |      |             |   |       |     |  |   |           |    

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##### Table of Contents



UNITED COMMUNITY BANKSHARES OF FLORIDA, INC.

Notes to Condensed Consolidated Financial Statements (unaudited), Continued



|(2) |  | Earnings per Share                                                                                                                                                                                                                                                                                                                                                                                      
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    |  | Basic earnings per share have been computed on the basis of the weighted
average
number of shares of common stock outstanding during the periods ending
June 30, 2003 and June 30, 2002. Additional shares issuable under the
Employee/Director Stock option plans increase the weighted average shares
for fully diluted per share purposes for the six months ended June of
2003 and 2002, as follows:

|                                                        |  |                   |           |           |  |  |           | 
|------------------------------------------------------- |  | ----------------- | --------- | --------- |  |  | --------- | 
|                                                        |  | Six months ending
|                                                        |  | June 2003         |           | June 2002
|                                                        |  |                   |           |          
|Weighted average shares outstanding                     |  |                   | 3,071,310 |           |  |  | 2,000,000 | 
|Additional shares issuable under the stock option plans |  |                   | 32,347    |           |  |  | 12,773    | 
|                                                        |  |                   |           |           |  |  |           | 
|Weighted average shares for fully diluted purposes      |  |                   | 3,103,657 |           |  |  | 2,012,773 | 
|                                                        |  |                   |           |           |  |  |           | 



|(3) |  | Pro forma effect of Stock Options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    |  | As permitted by applicable accounting principles, management has elected
to disclose rather
than to record the compensatory effect of stock options granted to
employees and directors. The pro forma effect has been determined by use
of the Black  Scholes option pricing model, assuming minimal volatility,
no dividends and average lives and exercise probability by option class.
At June 30, 2003 employees held options for 194,080 shares of common
stock, compared to 140,500 options at June 30, 2002. No options were
granted during the second quarter of 2003, nor were any options exercised
or forfeited during that period.
|   
|    |  | Had the compensatory effect of outstanding options been recorded,
compensation and income for the six months ending June 30, would have
been as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

|                                             |                                            |   |                 |       |      |   |      |      |  
|-------------------------------------------- | ------------------------------------------ | - | --------------- | ----- | ---- | - | ---- | ---- | -
|                                             |                                            |   | 2003            |       | 2002
|                                             |                                            |   |                 |       |     
|                                             |                                            |   | ($in thousands)
|Compensation as recorded                     |                                            | $ | 1,459           |       |      | $ | 847  |     
|Pro forma effect of options                  |                                            |   | 28              |       |      |   | 24   |     
|                                             |                                            |   |                 |       |      |   |      |     
|                                             | Pro forma compensation                     |   | $               | 1,487 |      |   | $    | 871  |  
|                                             |                                            |   |                 |       |      |   |      |     
|Net Income (loss) as reported                |                                            | $ | 355             |       |      | $ | (105 | )   
|Pro forma effect of options                  |                                            |   | (28             | )     |      |   | (24  | )   
|                                             |                                            |   |                 |       |      |   |      |     
|                                             | Pro forma net income (loss)                |   | $               | 327   |      |   | $    | (129 | )
|                                             |                                            |   |                 |       |      |   |      |     
|Basic earnings per share as reported         |                                            | $ | .12             |       |      | $ | (.05 | )   
|Pro forma effect of options                  |                                            |   | (.01            | )     |      |   | (.01 | )   
|                                             |                                            |   |                 |       |      |   |      |     
|                                             | Pro forma basic earnings per share         |   | $               | .11   |      |   | $    | (.06 | )
|                                             |                                            |   |                 |       |      |   |      |     
|Fully diluted earnings per share as reported |                                            | $ | .11             |       |      | $ | (.05 | )   
|Pro forma effect of options                  |                                            |   |                |       |      |   | (.01 | )   
|                                             |                                            |   |                 |       |      |   |      |     
|                                             | Pro forma fully diluted earnings per share |   | $               | .11   |      |   | $    | (.06 | )
|                                             |                                            |   |                 |       |      |   |      |     

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UNITED COMMUNITY BANKSHARES OF FLORIDA, INC.

Notes to Condensed Consolidated Financial Statements (unaudited), Continued



|(4) |  | Management Opinion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    |  | In the opinion of management, the accompanying condensed consolidated
financial statements contain all adjustments (consisting of normal
recurring accruals) necessary to present fairly the financial position at
June 30, 2003 and the results of operations and cash flows for the three
and six month periods ended June 30, 2003 and 2002. The results of
operations for the six months ended June 30, 2003 are not necessarily
indicative of the results to be expected for the year ending December 31,
2003.




Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations

Liquidity

The Companys primary sources of cash during the six months ended June 30, 2003
was
from net deposit inflows of $48 million and proceeds from repayments of
securities available for sale as well as maturities and calls of securities
totaling $21 million. Cash was primarily used to originate loans, net of
principal repayments, totaling $12 million. At June 30, 2003, the Company had
unfunded loan commitments totaling $51 million. At June 30, 2003, the Banks
liquidity exceeded the minimum regulatory liquidity requirements.

Capital Resources

The Banks are required to maintain certain regulatory capital requirements.
The following is a summary at June 30, 2003 and 2002 of the regulatory capital
requirements for the entities to remain well capitalized and the Banks actual
capital of each entity on a percentage basis:

|                                                |  |      |       |      |  |                    |       |   |  |                 |       |  
|----------------------------------------------- |  | ---- | ----- | ---- |  | ------------------ | ----- | - |  | --------------- | ----- | -
|                                                |  |      |       |      |  |                    |       |   |  | Regulatory     
|                                                |  |      |       |      |  |                    |       |   |  | Requirement for
|                                                |  | June |       | June |  | Well - capitalized
|                                                |  | 2003 |       | 2002 |  | Entities          
|                                                |  |      |       |      |  |                   
|Consolidated                                    |  |      |       |      |  |                    |       |   |  |                 |       |  
|Total capital to risk-weighted assets           |  |      | 15.59 | %    |  |                    | 25.56 | % |  |                 | 10.00 | %
|Tier I capital to risk-weighted assets          |  |      | 14.58 | %    |  |                    | 24.59 | % |  |                 | 6.00  | %
|Tier I capital to total assets  leverage ratio |  |      | 10.08 | %    |  |                    | 17.21 | % |  |                 | 5.00  | %
|United Heritage Bank                            |  |      |       |      |  |                    |       |   |  |                 |       |  
|Total capital to risk-weighted assets           |  |      | 18.28 | %    |  |                    | 25.56 | % |  |                 | 10.00 | %
|Tier I capital to risk-weighted assets          |  |      | 17.30 | %    |  |                    | 24.59 | % |  |                 | 6.00  | %
|Tier I capital to total assets  leverage ratio |  |      | 11.41 | %    |  |                    | 17.21 | % |  |                 | 5.00  | %
|Community United Bank                           |  |      |       |      |  |                    |       |   |  |                 |       |  
|Total capital to risk-weighted assets           |  |      | 11.79 | %    |  |                    | 11.20 | % |  |                 | 10.00 | %
|Tier I capital to risk-weighted assets          |  |      | 10.74 | %    |  |                    | 10.18 | % |  |                 | 6.00  | %
|Tier I capital to total assets  leverage ratio |  |      | 7.90  | %    |  |                    | 8.13  | % |  |                 | 5.00  | %

8



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##### Table of Contents



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations, Continued

UNITED COMMUNITY BANKSHARES OF FLORIDA, INC.

Selected Ratios

The following rates on a consolidated basis are present for the dates and
periods indicated:

|                                                                                                |  |                  |       |                  |  |  |       |   
|----------------------------------------------------------------------------------------------- |  | ---------------- | ----- | ---------------- |  |  | ----- | --
|                                                                                                |  | Six Months Ended |       | Six Months ended
|                                                                                                |  | June 30,2003     |       | June 30, 2002   
|                                                                                                |  |                  |       |                 
|Average equity as a percentage of average assets                                                |  |                  | 10.69 | %                |  |  | 17.65 | % 
|Equity to total assets at end of period                                                         |  |                  | 10.24 | %                |  |  | 16.68 | % 
|Return on average assets (1)                                                                    |  |                  | .25   | %                |  |  | (0.10 | )%
|Return on average equity (1)                                                                    |  |                  | 2 .36 | %                |  |  | (0.59 | )%
|Nonperforming loans and foreclosed real estate as
a percentage of total assets at end of period |  |                  | 0.16  | %                |  |  |      |   



---

|(1) |  | Annualized for the six months ended June 30.
|--- |  | --------------------------------------------

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UNITED COMMUNITY BANKSHARES OF FLORIDA, INC.

Results of Operations

General.Net earnings for the six months ended June 30, 2003
reflect the consolidated results of operations of the Holding company and
the Banks. The net earnings for the six months ended June 30, 2002
reflect only the financial data for United Heritage Bank. Net earnings
for the six months ended June 30, 2003 was $355,000 or $.12 basic
earnings per share compared to a net loss of $105,000 or ($.05) loss per
share for the six months ended June 30, 2002. The increase in the
Companys earnings, excluding the acquisition of January 13, 2003, was
primarily due to an increase in net interest income and noninterest
income, partially offset by an increase in noninterest expenses.

The results of operations for the second quarter of 2003 may be more
reflective of normalized quarterly results since the first quarter
results were impacted by the acquisition costs of acquiring Community
United Bank on January 13, 2003 and excluded Community United Banks
earnings in 2003 before the acquisition.

Interest Income and Expense.Interest income increased by
$3,964,000, from $2,514,000 for the six months ended June 30, 2002 to
$6,478,000 for the six months ended June 30, 2003. Interest income on
loans increased $3,748,000 primarily due to an increase in the average
loan portfolio balance from $53 million for the six months ended June 30,
2002 to $160 million for the comparable period in 2003 and a slight
increase in the weighted-average yield from 6.57% in 2002 to 6.88% in
2003. Interest on securities increased $39,000 primarily due to an
increase in the average securities portfolio balance from $26 million in
2002 to $48 million in 2003 partially offset by a decrease in the weighted
average yield from 4.80 % in 2002 to 2.77% in 2003.

Interest expense on interest-bearing deposits increased to $2,837,000 for
the six months ended June 30, 2003 from $971,000 for the six months ended
June 30, 2002. Interest expense on interest-bearing liabilities
increased due to an increase in average balances from $75 million in 2002
to $223 million in 2003, partially offset by a decrease in the weighted
rate paid from 2.62% in 2002 to 2.57% in 2003.

The following table sets forth, for the periods indicated, information
regarding (I) the total dollar amount of interest and dividend income for
the Company from interest-earning assets and the resultant average
yields; (II) the total dollar amount of interest expense on
interest-bearing liabilities and the resultant average cost; (III) net
interest income; (IV) net interest spread; and (V) net interest margin.

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##### Table of Contents



UNITED COMMUNITY BANKSHARES OF
FLORIDA, INC.

Results of Operations
(Continued)

Comparison of the Six-Month
Periods ended June 30, 2003 and 2002

|                                                                                 |                                             |                                            |         |                           |         |           |       |          |       |         |      |                  |      |        |        |          |        |         |       |     |       |  |      |      |      |  
|-------------------------------------------------------------------------------- | ------------------------------------------- | ------------------------------------------ | ------- | ------------------------- | ------- | --------- | ----- | -------- | ----- | ------- | ---- | ---------------- | ---- | ------ | ------ | -------- | ------ | ------- | ----- | --- | ----- |  | ---- | ---- | ---- | -
|                                                                                 |                                             |                                            |         | Six Months Ended June 30,
|                                                                                 |                                             |                                            |         |                          
|                                                                                 |                                             |                                            |         | 2003                      |         | 2002     
|                                                                                 |                                             |                                            |         |                           |         |          
|                                                                                 |                                             |                                            |         |                           |         |           |       |          |       |         |      | ($ in thousands) |      |        |        |          |        |         |       |    
|                                                                                 |                                             |                                            |         |                           |         |           |       | Interest |       | Average |      |                  |      |        |        | Interest |        | Average
|                                                                                 |                                             |                                            |         | Average                   |         | and       |       | Yield/   |       | Average |      | and              |      | Yield/
|                                                                                 |                                             |                                            |         | Balance                   |         | Dividends |       | Rate     |       | Balance |      | Dividends        |      | Rate  
|                                                                                 |                                             |                                            |         |                           |         |           |       |          |       |         |      |                  |      |       
|Interest-earning
assets;
Loans                                                   |                                             | $                                          | 160,479 |                           |         | $         | 5,472 |          |       |         | 6.88 | %                |      | $      | 48,165 |          |        | $       | 1,724 |     |       |  | 7.22 | %   
|                                                                                 | Securities                                  |                                            |         | 48,426                    |         |           |       | 664      |       |         |      | 2.77             | %    |        |        | 24,837   |        |         |       | 625 |       |  |      | 5.07 | %   
|                                                                                 | Other interest-earning assets (1)           |                                            |         | 57,074                    |         |           |       | 342      |       |         |      | 1.21             | %    |        |        | 18,960   |        |         |       | 165 |       |  |      | 1.75 | %   
|                                                                                 |                                             |                                            |         |                           |         |           |       |          |       |         |      |                  |      |        |        |          |        |         |       |     |       |  |      |     
|                                                                                 |                                             | Total interest-earning assets              |         |                           | 265,979 |           |       |          | 6,478 |         |      |                  | 4.91 | %      |        |          | 91,962 |         |       |     | 2,514 |  |      |      | 5.51 | %
|                                                                                 |                                             |                                            |         |                           |         |           |       |          |       |         |      |                  |      |        |        |          |        |         |       |     |       |  |      |     
|Noninterest-earning assets                                                       |                                             |                                            | 18,289  |                           |         |           |       |          |       |         |      |                  |      |        | 5,686  |          |        |         |       |     |       |  |      |     
|                                                                                 |                                             |                                            |         |                           |         |           |       |          |       |         |      |                  |      |        |        |          |        |         |       |     |       |  |      |     
|                                                                                 |                                             | Total Assets                               |         | $                         | 284,268 |           |       |          |       |         |      |                  |      |        |        |          | 97,648 |         |       |     |       |  |      |      |      |  
|                                                                                 |                                             |                                            |         |                           |         |           |       |          |       |         |      |                  |      |        |        |          |        |         |       |     |       |  |      |     
|Interest-bearing liabilities:                                                    |                                             |                                            |         |                           |         |           |       |          |       |         |      |                  |      |        |        |          |        |         |       |     |       |  |      |     
|                                                                                 | Savings, NOW, money market
deposit accounts |                                            | $       | 111,463                   |         |           | $     | 934      |       |         |      | 1.69             | %    |        | $      | 37,710   |        |         | $     | 465 |       |  |      | 2.49 | %   
|                                                                                 | Time deposits                               |                                            |         | 110,130                   |         |           |       | 1,903    |       |         |      | 3.48             | %    |        |        | 26,881   |        |         |       | 506 |       |  |      | 3.80 | %   
|                                                                                 | Other interest-bearing liabilities (2)      |                                            |         | 1,209                     |         |           |       | 3        |       |         |      | 0.50             | %    |        |        | 1,671    |        |         |       | 9   |       |  |      | 1.09 | %   
|                                                                                 |                                             |                                            |         |                           |         |           |       |          |       |         |      |                  |      |        |        |          |        |         |       |     |       |  |      |     
|                                                                                 |                                             | Total interest-bearing liabilities         |         |                           | 222,802 |           |       |          | 2,840 |         |      |                  | 2.57 | %      |        |          | 66,262 |         |       |     | 980   |  |      |      | 2.98 | %
|                                                                                 |                                             |                                            |         |                           |         |           |       |          |       |         |      |                  |      |        |        |          |        |         |       |     |       |  |      |     
|Noninterest-bearing deposits                                                     |                                             |                                            | 30,045  |                           |         |           |       |          |       |         |      |                  |      |        | 11,956 |          |        |         |       |     |       |  |      |     
|Noninterest-bearing liabilities                                                  |                                             |                                            | 1,027   |                           |         |           |       |          |       |         |      |                  |      |        | 264    |          |        |         |       |     |       |  |      |     
|Stockholders equity                                                             |                                             |                                            | 30,394  |                           |         |           |       |          |       |         |      |                  |      |        | 19,166 |          |        |         |       |     |       |  |      |     
|                                                                                 |                                             |                                            |         |                           |         |           |       |          |       |         |      |                  |      |        |        |          |        |         |       |     |       |  |      |     
|                                                                                 |                                             | Total liabilities and
stockholders equity |         | $                         | 284,268 |           |       |          |       |         |      |                  |      |        |        | $        | 97,648 |         |       |     |       |  |      |      |      |  
|                                                                                 |                                             |                                            |         |                           |         |           |       |          |       |         |      |                  |      |        |        |          |        |         |       |     |       |  |      |     
|Net interest income                                                              |                                             |                                            |         |                           |         | $         | 3,638 |          |       |         |      |                  |      |        |        |          |        | $       | 1,534 |     |       |  |      |     
|                                                                                 |                                             |                                            |         |                           |         |           |       |          |       |         |      |                  |      |        |        |          |        |         |       |     |       |  |      |     
|Interest-rate spread (3)                                                         |                                             |                                            |         |                           |         |           |       |          |       |         | 2.34 | %                |      |        |        |          |        |         |       |     |       |  | 2.53 | %   
|                                                                                 |                                             |                                            |         |                           |         |           |       |          |       |         |      |                  |      |        |        |          |        |         |       |     |       |  |      |     
|Net interest margin (4)                                                          |                                             |                                            |         |                           |         |           |       |          |       |         | 2.76 | %                |      |        |        |          |        |         |       |     |       |  | 3.36 | %   
|                                                                                 |                                             |                                            |         |                           |         |           |       |          |       |         |      |                  |      |        |        |          |        |         |       |     |       |  |      |     
|Ratio of average interest-earning assets to
average interest-bearing liabilities |                                             |                                            | 1.19    |                           |         |           |       |          |       |         |      |                  |      |        | 1.39   |          |        |         |       |     |       |  |      |     
|                                                                                 |                                             |                                            |         |                           |         |           |       |          |       |         |      |                  |      |        |        |          |        |         |       |     |       |  |      |     



---

|(1) |  | Includes Federal Home Loan Bank stock, Federal Funds sold and interest-bearing deposits.                                                                 
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|(2) |  | Includes securities sold under agreements to repurchase and notes payable.                                                                               
|   
|(3) |  | Interest-rate spread represents
the difference between the average yield on interest-earning assets and the average rate of interest-bearing liabilities.
|   
|(4) |  | Net interest margin is net interest income divided by average interest-earning assets.                                                                   

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UNITED COMMUNITY BANKSHARES OF FLORIDA, INC.

Results of Operations (Continued)

Provision for Loan Losses.The provision for loan losses is charged
to operations to bring the total allowance to a level deemed appropriate
by management and is based upon historical experience, the volume and
type of lending conducted by the Company, industry standards, the amount
of nonperforming loans, general economic conditions, particularly as they
relate to the Companys market areas, and the other factors related to
the collectibility of the Companys loan portfolio. The provision was
$222,000 for the six months ended June 30, 2003 and $263,000 for the
comparable period in 2002. Management believes the approximate $2
million balance in the allowance for loan losses at June 30, 2003 is
adequate.

Noninterest Income.Noninterest income increased $181,000 during
the six month period ended June, 2003 compared to the same period in 2002
primarily due to increased service charge fees and residential mortgage
broker fees.

Noninterest Expenses.Noninterest expenses increased $1,566,000
during the six-month
period ended June 30, 2003 compared to the same period in 2002.
Noninterest expenses increased primarily the cost associated with the
opening of new banking locations. This includes salaries, occupancy
expense and operational expenses.

Provision for Income Taxes.Income tax expense for the six months
ended June 30, 2003 was $245,000 compared to a $56,000 tax benefit for
the comparable 2002 period. The consolidated net operating loss
carryover of $147,000 at December 31, 2002 was utilized during the first
and second quarter of 2003. The company expects a blended rate for
current and deferred federal and state income tax of approximately 40% of
pre-tax earnings for the balance of the year.




Item 3. Controls and Procedures

Controls and Procedures

United Community Banksharess President and Chief Executive Officer and
Treasurer have evaluated United Community Bankshares disclosure controls
and procedures as of a date within 90 days prior to the date of this
filing, and they conclude that these controls and procedures are
effective. There have been no significant changes in internal controls
or in other factors that could significantly affect these controls
subsequent to the date of this evaluation.

Disclosure controls and procedures are United Community Bankshares
controls and other procedures that are designed to ensure that
information it is required to disclose in the reports it files under the
Exchange Act is recorded, processed, summarized and reported, within the
time periods specified in the Securities and Exchange Commissions rules
and forms. Disclosure controls and procedures include, without
limitation controls and procedures designed to ensure that information
United Community Bankshares is required to disclose in the reports that
it files under the Exchange Act is accumulated and communicated to
management, including the principal executive and financial officers, as
appropriate, to allow timely decisions regarding required disclosure.

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UNITED COMMUNITY BANKSHARES OF FLORIDA, INC.




PART II. OTHER INFORMATION




Item 6. Exhibits and Reports on Form 8-K



|(a) |  | Exhibits
|--- |  | --------

|            |  |                                                                                                         
|----------- |  | --------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description of Exhibit                                                                                  
|            |  |                                                                                                         
|31.1        |  | Certification of President & Chief Executive Officer
Pursuant to Section 302 of the Sarbanes  Oxley Act
|            |  |                                                                                                         
|31.2        |  | Certification of Treasurer
Pursuant to Section 302 of the Sarbanes  Oxley Act                          
|            |  |                                                                                                         
|32.1        |  | Certification of President & Chief Executive Officer
Pursuant to Section 906 of the Sarbanes  Oxley Act
|            |  |                                                                                                         
|32.2        |  | Certification of Treasurer
Pursuant to Section 906 of the Sarbanes  Oxley Act                          



|(b) |  | Reports on Form 8-K.There were no reports on Form 8-K filed
during the three months ended June 30, 2003.
|--- |  | --------------------------------------------------------------------------------------------------------

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UNITED COMMUNITY BANKSHARES OF FLORIDA, INC.




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 duly authorized.

|      |  |                 |  |                                              |  |                                                       
|----- |  | --------------- |  | -------------------------------------------- |  | ------------------------------------------------------
|      |  |                 |  | UNITED COMMUNITY BANKSHARES OF
FLORIDA, INC.
|      |  |                 |  |                                              |  | (Registrant)                                          
|      |  |                 |  |                                              |  |                                                       
|Date: |  | August 12, 2003 |  | By:                                          |  | /s/ David G. Powers                                   
|      |  |                 |  |                                              |  |                                                       
|      |  |                 |  |                                              |  | David G. Powers, President and Chief
Executive Officer
|      |  |                 |  |                                              |  |                                                       
|Date: |  | August 12, 2003 |  | By:                                          |  | /s/ Shirley L. Tyler                                  
|      |  |                 |  |                                              |  |                                                       
|      |  |                 |  |                                              |  | Shirley L. Tyler, Treasurer                           

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United Community Bankshares of Florida, Inc.
Form 10-QSB
For Six Months Ending June 30, 2003




EXHIBIT INDEX

|        |  |                                                                                                       
|------- |  | ------------------------------------------------------------------------------------------------------
|Exhibit |  |                                                                                                       
|No.     |  | Exhibit                                                                                               
|        |  |                                                                                                       
|31.1    |  | Certification of President & Chief Executive Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act
|        |  |                                                                                                       
|31.2    |  | Certification of Treasurer
Pursuant to Section 302 of the Sarbanes-Oxley Act                          
|        |  |                                                                                                       
|32.1    |  | Certification of President & Chief Executive Officer
Pursuant to Section 906 of the Sarbanes-Oxley Act
|        |  |                                                                                                       
|32.2    |  | Certification of Treasurer
Pursuant to Section 906 of the Sarbanes-Oxley Act                          

15