##### Table of Contents



U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10  QSB

|                                                               |  |                                                                                  
|-------------------------------------------------------------- |  | ---------------------------------------------------------------------------------
|(Mark One)                                                     | 
|                                                               |  |                                                                                  
|[X]                                                            |  | Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934
|                                                               |  |                                                                                  
|For the quarterly period ended September 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 [X]  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 September 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 Shareholders Equity
|                                      |                                                                                                          | Condensed Consolidated Statements of Cash Flows                    
|                                      |                                                                                                          | Notes to Condensed Consolidated Financial Statements               
|                                      | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations, Continued
|                                      | Item 3. Controls and Procedures                                                                         
|PART II. OTHER INFORMATION           
|                                      | Item 6. Exhibits and Reports on Form 8-K                                                                
|SIGNATURES                           
|EXHIBIT INDEX                        
|Ex-31.1 Section 302 CEO Certification
|Ex-31.2 Section 302 CFO Certification
|Ex-32.1 Section 906 CEO Certification
|Ex-32.2 Section 906 CFO Certification



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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 September 30, 2003 and at December 31, 2002 (unaudited)                             |                                                                                       |    | 2    |     
|           | Condensed Consolidated Statements of Operations -
Nine Months and three months ended September 30, 2003 and 2002 (unaudited)   |                                                                                       |    | 3    |     
|           | Condensed Consolidated Statements of Changes in Shareholders Equity
Nine Months Ended September 30, 2003 and 2002 (unaudited) |                                                                                       |    | 4    |     
|           | Condensed Consolidated Statements of Cash Flows -
Nine Months Ended September 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 |    |      | 9-12 | 
|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)

|                                                                             |                                                                                                                                                 |                                            |                            |         |           |        |              |        |         |        | 
|---------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | -------------------------- | ------- | --------- | ------ | ------------ | ------ | ------- | ------ | 
|                                                                             |                                                                                                                                                 |                                            |                            |         | September |        | December 31,
|                                                                             |                                                                                                                                                 |                                            |                            |         | 2003      |        | 2002        
|                                                                             |                                                                                                                                                 |                                            |                            |         |           |        |             
|Assets                                                                       |                                                                                                                                                 |                                            |                            |         |           |        |              |       
|Cash and due from banks                                                      |                                                                                                                                                 | $                                          | 15,100                     |         |           | $      | 4,441        |       
|Interest-bearing demand deposits with banks                                  |                                                                                                                                                 |                                            | 14,657                     |         |           |        | 5,092        |       
|Federal funds sold                                                           |                                                                                                                                                 |                                            | 29,376                     |         |           |        | 15,033       |       
|                                                                             |                                                                                                                                                 |                                            |                            |         |           |        |              |       
|                                                                             | Total cash and cash equivalents                                                                                                                 |                                            |                            | 59,133  |           |        |              | 24,566 |        
|Securities available for sale                                                |                                                                                                                                                 |                                            | 62,017                     |         |           |        | 29,302       |       
|Loans, net of allowance for loan losses of $2,171 in 2003 and
$1,014 in 2002 |                                                                                                                                                 |                                            | 183,407                    |         |           |        | 80,162       |       
|Premises and equipment, net                                                  |                                                                                                                                                 |                                            | 5,470                      |         |           |        | 3,916        |       
|Federal Home Loan Bank stock, at cost                                        |                                                                                                                                                 |                                            | 106                        |         |           |        | 0            |       
|Accrued interest receivable                                                  |                                                                                                                                                 |                                            | 979                        |         |           |        | 381          |       
|Deferred tax asset                                                           |                                                                                                                                                 |                                            | 994                        |         |           |        | 226          |       
|Other Assets                                                                 |                                                                                                                                                 |                                            | 1,620                      |         |           |        | 93           |       
|                                                                             |                                                                                                                                                 |                                            |                            |         |           |        |              |       
|                                                                             |                                                                                                                                                 | Total Assets                               |                            | $       | 313,726   |        |              | $      | 138,646 |       
|                                                                             |                                                                                                                                                 |                                            |                            |         |           |        |              |       
|Liabilities and Shareholders Equity                                         |                                                                                                                                                 |                                            |                            |         |           |        |              |       
|Liabilities:                                                                 |                                                                                                                                                 |                                            |                            |         |           |        |              |       
|                                                                             | Non-interest bearing demand deposits                                                                                                            |                                            | $                          | 34,506  |           |        | $            | 16,130 |        
|                                                                             | Savings and NOW deposits                                                                                                                        |                                            |                            | 27,599  |           |        |              | 6,238  |        
|                                                                             | Money-market deposits                                                                                                                           |                                            |                            | 97,425  |           |        |              | 45,860 |        
|                                                                             | Time deposits                                                                                                                                   |                                            |                            | 120,179 |           |        |              | 49,886 |        
|                                                                             |                                                                                                                                                 |                                            |                            |         |           |        |              |       
|                                                                             |                                                                                                                                                 | Total Deposits                             |                            |         | 279,709   |        |              |        | 118,114 |       
|                                                                             |                                                                                                                                                 |                                            |                            |         |           |        |             |       
|Other liabilities                                                            |                                                                                                                                                 |                                            | 816                        |         |           |        | 270          |       
|Other Borrowings                                                             |                                                                                                                                                 |                                            | 1,920                      |         |           |        | 794          |       
|                                                                             |                                                                                                                                                 |                                            |                            |         |           |        |              |       
|                                                                             |                                                                                                                                                 | Total Liabilities                          |                            |         | 282,445   |        |              |        | 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                                                                                                                             |                                            |                            | (306    | )         |        |              | (919   | )      
|                                                                             | Accumulated other comprehensive income (loss)                                                                                                   |                                            |                            | (416    | )         |        |              | 387    |        
|                                                                             |                                                                                                                                                 |                                            |                            |         |           |        |              |       
|                                                                             |                                                                                                                                                 |                                            | Total Shareholders equity |         |           | 31,281 |              |        |         | 19,468 | 
|                                                                             |                                                                                                                                                 |                                            |                            |         |           |        |              |       
|                                                                             |                                                                                                                                                 | Total liabilities and Shareholders equity |                            | $       | 313,726   |        |              | $      | 138,646 |       
|                                                                             |                                                                                                                                                 |                                            |                            |         |           |        |              |       

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UNITED COMMUNITY BANKSHARES OF FLORIDA, INC.
Condensed Consolidated Statements of Operations
($ in thousands, except share amounts)
(Unaudited)

|                                 |                                               |                                                     |      |                   |       |               |       |       |       |      |      |       |       |   |     |       |       | 
|-------------------------------- | --------------------------------------------- | --------------------------------------------------- | ---- | ----------------- | ----- | ------------- | ----- | ----- | ----- | ---- | ---- | ----- | ----- | - | --- | ----- | ----- | 
|                                 |                                               |                                                     |      | Nine Months Ended |       | 3rd Quarter  
|                                 |                                               |                                                     |      | September 30,     |       | September 30,
|                                 |                                               |                                                     |      |                   |       |              
|                                 |                                               |                                                     |      | 2003              |       | 2002          |       | 2003  |       | 2002
|                                 |                                               |                                                     |      |                   |       |               |       |       |       |     
|Interest income:                 |                                               |                                                     |      |                   |       |               |       |       |       |      |      |       |       |   |     |      
|                                 | Loans                                         |                                                     | $    | 8,452             |       |               | $     | 2,876 |       |      | $    | 2,980 |       |   | $   | 1,152 |      
|                                 | Securities                                    |                                                     |      | 951               |       |               |       | 980   |       |      |      | 287   |       |   |     | 355   |      
|                                 | Other interest-earning assets                 |                                                     |      | 457               |       |               |       | 230   |       |      |      | 115   |       |   |     | 65    |      
|                                 |                                               |                                                     |      |                   |       |               |       |       |       |      |      |       |       |   |     |       |      
|                                 |                                               | Total interest income                               |      |                   | 9,860 |               |       |       | 4,086 |      |      |       | 3,382 |   |     |       | 1,572 | 
|                                 |                                               |                                                     |      |                   |       |               |       |       |       |      |      |       |       |   |     |       |      
|Interest expense:                |                                               |                                                     |      |                   |       |               |       |       |       |      |      |       |       |   |     |      
|                                 | Deposits                                      |                                                     |      | 4,245             |       |               |       | 1,618 |       |      |      | 1,408 |       |   |     | 647   |      
|                                 | Other borrowings                              |                                                     |      | 5                 |       |               |       | 13    |       |      |      | 2     |       |   |     | 4     |      
|                                 |                                               |                                                     |      |                   |       |               |       |       |       |      |      |       |       |   |     |       |      
|                                 |                                               | Total interest expense                              |      |                   | 4,250 |               |       |       | 1,631 |      |      |       | 1,410 |   |     |       | 651   | 
|                                 |                                               |                                                     |      |                   |       |               |       |       |       |      |      |       |       |   |     |       |      
|                                 |                                               | Net interest income                                 |      |                   | 5,610 |               |       |       | 2,455 |      |      |       | 1,972 |   |     |       | 921   | 
|Provision for loan losses        |                                               |                                                     | 412  |                   |       |               | 412   |       |       |      | 190  |       |       |   | 149 |      
|                                 |                                               |                                                     |      |                   |       |               |       |       |       |      |      |       |       |   |     |       |      
|                                 |                                               | Net interest income after provision for loan losses |      |                   | 5,198 |               |       |       | 2,043 |      |      |       | 1,782 |   |     |       | 772   | 
|                                 |                                               |                                                     |      |                   |       |               |       |       |       |      |      |       |       |   |     |       |      
|Noninterest income:              |                                               |                                                     |      |                   |       |               |       |       |       |      |      |       |       |   |     |      
|                                 | Service charges and fees                      |                                                     |      | 377               |       |               |       | 163   |       |      |      | 128   |       |   |     | 63    |      
|                                 | Gain on sale of Other Real Estate             |                                                     |      | 28                |       |               |       |      |       |      |      |      |       |   |     |      |      
|                                 | Gain on sale of securities available for sale |                                                     |      | 5                 |       |               |       | 33    |       |      |      |      |       |   |     | 33    |      
|                                 |                                               |                                                     |      |                   |       |               |       |       |       |      |      |       |       |   |     |       |      
|                                 |                                               | Total noninterest income                            |      |                   | 410   |               |       |       | 196   |      |      |       | 128   |   |     |       | 96    | 
|                                 |                                               |                                                     |      |                   |       |               |       |       |       |      |      |       |       |   |     |       |      
|Noninterest expense:             |                                               |                                                     |      |                   |       |               |       |       |       |      |      |       |       |   |     |      
|                                 | Salaries and employee benefits                |                                                     |      | 2,211             |       |               |       | 1,309 |       |      |      | 752   |       |   |     | 462   |      
|                                 | Occupancy expense                             |                                                     |      | 504               |       |               |       | 395   |       |      |      | 179   |       |   |     | 216   |      
|                                 | Other                                         |                                                     |      | 1,899             |       |               |       | 677   |       |      |      | 585   |       |   |     | 171   |      
|                                 |                                               |                                                     |      |                   |       |               |       |       |       |      |      |       |       |   |     |       |      
|                                 |                                               | Total noninterest expense                           |      |                   | 4,614 |               |       |       | 2,381 |      |      |       | 1,516 |   |     |       | 849   | 
|                                 |                                               |                                                     |      |                   |       |               |       |       |       |      |      |       |       |   |     |       |      
|                                 |                                               | Income (Loss) before income taxes                   |      |                   | 994   |               |       |       | (142  | )    |      |       | 394   |   |     |       | 19    | 
|Income tax (benefit)             |                                               |                                                     | 381  |                   |       |               | (41   | )     |       |      | 136  |       |       |   | 15  |      
|                                 |                                               |                                                     |      |                   |       |               |       |       |       |      |      |       |       |   |     |       |      
|                                 |                                               | Net income (loss)                                   |      | $                 | 613   |               |       | $     | (101  | )    |      | $     | 258   |   |     | $     | 4     | 
|                                 |                                               |                                                     |      |                   |       |               |       |       |       |      |      |       |       |   |     |       |      
|Basic earnings per share         |                                               | $                                                   | 0.20 |                   |       | $             | (0.04 | )     |       | $    | 0.08 |       |       | $ |    |      
|                                 |                                               |                                                     |      |                   |       |               |       |       |       |      |      |       |       |   |     |       |      
|Fully diluted earnings per share |                                               | $                                                   | 0.19 |                   |       | $             | (0.06 | )     |       | $    | 0.08 |       |       | $ |    |      
|                                 |                                               |                                                     |      |                   |       |               |       |       |       |      |      |       |       |   |     |       |      

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UNITED COMMUNITY BANKSHARES OF FLORIDA, INC.
Condensed Consolidated Statements of Changes in Shareholders 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)                                              |    |        |  |         |        |             |  |               |      |               | (101 | )     |      |             |     |   |        |      | (101 | )
|                                                              |                            | Net change in unrealized
loss on securities available
for sale |    |        |  |         |        |             |  |               |      |               |     |       |      |             | 408  |   |        |      | 408  |  
|                                                              |                            |                                                                |    |        |   |         |        |             |   |               |      |               |      |       |      |             |      |   |        |     
|                                                              | Total Comprehensive Income |                                                                |    |       |   |         |        |            |   |               |      |              |      |       |      |            |      |   |        | 307  |     
|                                                              |                            |                                                                |    |        |   |         |        |             |   |               |      |               |      |       |      |             |      |   |        |     
|Balance at September 30, 2002                                 |                            | $                                                              | 20 |        |   | $       | 19,980 |             |   | $             | (887 | )             |      | $     | 286  |             |      | $ | 19,399 |     
|                                                              |                            |                                                                |    |        |   |         |        |             |   |               |      |               |      |       |      |             |      |   |        |     
|Balance December 31, 2002                                     |                            | $                                                              | 20 |        |   | $       | 19,980 |             |   | $             | (919 | )             |      | $     | 387  |             |      | $ | 19,468 |     
|                                                              |                            |                                                                |    |        |   |         |        |             |   |               |      |               |      |       |      |             |      |   |        |     
|Comprehensive Income:                                         |                            |                                                                |    |        |   |         |        |             |   |               |      |               |      |       |      |             |      |   |        |     
|                                                              |                            | Net income                                                     |    |        |  |         |        |             |  |               |      |               | 613  |       |      |             |     |   |        |      | 613  |  
|                                                              |                            | Net change in unrealized
gain on securities available
for sale |    |        |  |         |        |             |  |               |      |               |     |       |      |             | (803 | ) |        |      | (803 | )
|                                                              |                            |                                                                |    |        |   |         |        |             |   |               |      |               |      |       |      |             |      |   |        |     
|                                                              | Total Comprehensive Income |                                                                |    |       |   |         |        |            |   |               |      |              |      |       |      |            |      |   |        | (190 | )   
|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 September 30, 2003                                 |                            | $                                                              | 33 |        |   | $       | 31,970 |             |   | $             | (306 | )             |      | $     | (416 | )           |      | $ | 31,281 |     
|                                                              |                            |                                                                |    |        |   |         |        |             |   |               |      |               |      |       |      |             |      |   |        |     

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UNITED COMMUNITY BANKSHARES OF FLORIDA, INC.
Condensed Consolidated Statements of Cash Flows
($ in thousands)
(Unaudited)

|                                                  |  |                                              |                                                                                                     |                                                     |       |                   |         |      |       |         |         |  
|------------------------------------------------- |  | -------------------------------------------- | --------------------------------------------------------------------------------------------------- | --------------------------------------------------- | ----- | ----------------- | ------- | ---- | ----- | ------- | ------- | -
|                                                  |  |                                              |                                                                                                     |                                                     |       | Nine Months Ended
|                                                  |  |                                              |                                                                                                     |                                                     |       | September 30,    
|                                                  |  |                                              |                                                                                                     |                                                     |       |                  
|                                                  |  |                                              |                                                                                                     |                                                     |       | 2003              |         | 2002
|                                                  |  |                                              |                                                                                                     |                                                     |       |                   |         |     
|Cash flows from operating activities:             |  |                                              |                                                                                                     |                                                     |       |                   |         |     
|                                                  |  |                                              | Net Income (loss)                                                                                   |                                                     | $     | 613               |         |      | $     | (101    | )      
|                                                  |  |                                              | Adjustments to reconcile net income or loss to net cash provided by
(used in) operating activities: |                                                     |       |                   |         |      |       |         |        
|                                                  |  |                                              |                                                                                                     | Depreciation                                        |       |                   | 368     |      |       |         | 123     |  
|                                                  |  |                                              |                                                                                                     | Provision for loan loss                             |       |                   | 412     |      |       |         | 412     |  
|                                                  |  |                                              |                                                                                                     | Net amortization of securities available for sale   |       |                   | 912     |      |       |         | 143     |  
|                                                  |  |                                              |                                                                                                     | Deferred income taxes                               |       |                   |        |      |       |         | (42     | )
|                                                  |  |                                              |                                                                                                     | Gain on sale of securities available for sale       |       |                   | (5      | )    |       |         | (33     | )
|                                                  |  |                                              | Changes in balances of:                                                                             |                                                     |       |                   |         |      |       |         |        
|                                                  |  |                                              |                                                                                                     | Interest Receivable                                 |       |                   | (67     | )    |       |         | (148    | )
|                                                  |  |                                              |                                                                                                     | Interest Payable                                    |       |                   | (316    | )    |       |         | 42      |  
|                                                  |  |                                              |                                                                                                     | Other accounts - net                                |       |                   | (172    | )    |       |         | 50      |  
|                                                  |  |                                              |                                                                                                     |                                                     |       |                   |         |      |      
|                                                  |  |                                              |                                                                                                     | Net cash provided by (used in) operating activities |       |                   | 1,745   |      |       |         | 446     |  
|                                                  |  |                                              |                                                                                                     |                                                     |       |                   |         |      |      
|Cash flows from investing activities:             |  |                                              |                                                                                                     |                                                     |       |                   |         |     
|                                                  |  |                                              | Purchase of securities available for sale                                                           |                                                     |       | (55,698           | )       |      |       | (14,068 | )      
|                                                  |  |                                              | Sales and calls of securities available for sale                                                    |                                                     |       | 4,243             |         |      |       | 2,706   |        
|                                                  |  |                                              | Repayment of securities available for sale                                                          |                                                     |       | 28,018            |         |      |       | 4,150   |        
|                                                  |  |                                              | Net increase in loans                                                                               |                                                     |       | (26,080           | )       |      |       | (31,483 | )      
|                                                  |  |                                              | Purchase of premises and equipment                                                                  |                                                     |       | (78               | )       |      |       | (2,575  | )      
|                                                  |  |                                              |                                                                                                     |                                                     |       |                   |         |      |      
|                                                  |  |                                              |                                                                                                     | Net cash used in investing activities               |       |                   | (49,595 | )    |       |         | (41,270 | )
|                                                  |  |                                              |                                                                                                     |                                                     |       |                   |         |      |      
|Cash flows from financing activities:             |  |                                              |                                                                                                     |                                                     |       |                   |         |     
|                                                  |  |                                              | Net increase in deposits                                                                            |                                                     |       | 53,448            |         |      |       | 42,672  |        
|                                                  |  |                                              | Net increase in other borrowings                                                                    |                                                     |       | 1,126             |         |      |       | (978    | )      
|                                                  |  |                                              | Proceeds from issuance of stock                                                                     |                                                     |       | 2,250             |         |      |       |        |        
|                                                  |  |                                              |                                                                                                     |                                                     |       |                   |         |      |      
|                                                  |  |                                              |                                                                                                     | Net cash provided by financing activities           |       |                   | 56,824  |      |       |         | 41,694  |  
|                                                  |  |                                              |                                                                                                     |                                                     |       |                   |         |      |      
|Net increase in cash and cash equivalents         |  |                                              | 8,974                                                                                               |                                                     |       |                   | 870     |     
|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        |  | $                                            | 59,133                                                                                              |                                                     |       | $                 | 15,258  |     
|                                                  |  |                                              |                                                                                                     |                                                     |       |                   |         |      |      
|Supplemental disclosure of cash flow information: |  |                                              |                                                                                                     |                                                     |       |                   |         |     
|                                                  |  | Cash paid during the period for interest     |                                                                                                     | $                                                   | 4,566 |                   |         | $    | 1,589 |        
|                                                  |  |                                              |                                                                                                     |                                                     |       |                   |         |      |      
|                                                  |  | Cash paid during the period for income taxes |                                                                                                     | $                                                   | 536   |                   |         | $    |      |        
|                                                  |  |                                              |                                                                                                     |                                                     |       |                   |         |      |      

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##### Table of Contents



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 nine months
ending September 30, 2003 include the consolidated accounts of the
Holding Company and the Banks. The accompanying financial statements for
the nine months ending September 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 nine month periods ending September 30,
2003 to September 30, 2002. It should also be noted that United Heritage
Bank prior to the acquisition was still in the de novo classification for
banks. The following table illustrates the components of this
acquisition, with the remaining growth attributable to the normal course
of business:

|                          |                                         |   |           |     |           |   |                  |      |             |   |       |       |  |   |           |     | 
|------------------------- | --------------------------------------- | - | --------- | --- | --------- | - | ---------------- | ---- | ----------- | - | ----- | ----- |  | - | --------- | --- | 
|                          |                                         |   |           |     |           |   |                  |      |             |   |       |       |  |   | Community
|                          |                                         |   | September |     | September |   | Change           |      | United Bank
|                          |                                         |   |           |     |           |   |                  |      |            
|                          |                                         |   | 2003      |     | 2002      |   |                  |      |             |   | 2002 
|                          |                                         |   |           |     |           |   |                  |      |             |   |      
|                          |                                         |   |           |     |           |   | ($ in thousands) |      |             |   |      
|Net interest income       |                                         | $ | 5,610     |     |           | $ | 2,455            |      |             | $ | 3,155 |       |  | $ | 2,334     |    
|Provision for loan losses |                                         |   | 412       |     |           |   | 412              |      |             |   |      |       |  |   | 259       |    
|Total noninterest income  |                                         |   | 410       |     |           |   | 196              |      |             |   | 214   |       |  |   | 94        |    
|Total noninterest expense |                                         |   | 4,614     |     |           |   | 2,381            |      |             |   | 2,233 |       |  |   | 1,394     |    
|                          |                                         |   |           |     |           |   |                  |      |             |   |       |       |  |   |           |    
|                          | Income (loss) before
income tax benefit |   |           | 994 |           |   |                  | (142 | )           |   |       | 1,136 |  |   |           | 775 | 
|Income tax (benefit)      |                                         |   | 381       |     |           |   | (41              | )    |             |   | 422   |       |  |   | 292       |    
|                          |                                         |   |           |     |           |   |                  |      |             |   |       |       |  |   |           |    
|                          | Net income (loss)                       |   | $         | 613 |           |   | $                | (101 | )           |   | $     | 714   |  |   | $         | 483 | 
|                          |                                         |   |           |     |           |   |                  |      |             |   |       |       |  |   |           |    

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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
September 30, 2003 and September 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 nine months
ended September of 2003 and 2002, as follows:

|                                        |  |                            |           |                |  |         |           |         |  |  |           |  |  |  |           | 
|--------------------------------------- |  | -------------------------- | --------- | -------------- |  | ------- | --------- | ------- |  |  | --------- |  |  |  | --------- | 
|                                        |  | Period ending September 30
|                                        |  |                           
|                                        |  | Nine months ending         |           | Quarter ending
|                                        |  |                            |           |               
|                                        |  | 9/30/03                    |           | 9/30/02        |  | 9/30/03 |           | 9/30/02
|                                        |  |                            |           |                |  |         |           |        
|Weighted average shares outstanding     |  |                            | 3,133,849 |                |  |         | 2,000,000 |         |  |  | 3,256,888 |  |  |  | 2,000,000 | 
|Shares issuable under stock option plan |  |                            | 32,347    |                |  |         | 12,773    |         |  |  | 32,347    |  |  |  | 12,773    | 
|                                        |  |                            |           |                |  |         |           |         |  |  |           |  |  |  |           | 
|Weighted average shares fully diluted   |  |                            | 3,166,196 |                |  |         | 2,012,773 |         |  |  | 3,289,235 |  |  |  | 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 September 30, 2003 employees held options for 194,080 shares of common
stock, compared to 140,500 options at September 30, 2002. No options
were granted during the third 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 nine months ending September 30, would
have been as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

|                                             |                                            |   |                  |       |      |   |       |       |  
|-------------------------------------------- | ------------------------------------------ | - | ---------------- | ----- | ---- | - | ----- | ----- | -
|                                             |                                            |   | 2003             |       | 2002
|                                             |                                            |   |                  |       |     
|                                             |                                            |   | ($ in thousands)
|Compensation as recorded                     |                                            | $ | 2,211            |       |      | $ | 1,309 |      
|Pro forma effect of options                  |                                            |   | 43               |       |      |   | 36    |      
|                                             |                                            |   |                  |       |      |   |       |      
|                                             | Pro forma compensation                     |   | $                | 2,254 |      |   | $     | 1,345 |  
|                                             |                                            |   |                  |       |      |   |       |      
|Net Income (loss) as reported                |                                            | $ | 613              |       |      | $ | (101  | )    
|Pro forma effect of options                  |                                            |   | (43              | )     |      |   | (36   | )    
|                                             |                                            |   |                  |       |      |   |       |      
|                                             | Pro forma net income (loss)                |   | $                | 570   |      |   | $     | (137  | )
|                                             |                                            |   |                  |       |      |   |       |      
|Basic earnings per share as reported         |                                            | $ | .20              |       |      | $ | (.05  | )    
|Pro forma effect of options                  |                                            |   | (.02             | )     |      |   | (.02  | )    
|                                             |                                            |   |                  |       |      |   |       |      
|                                             | Pro forma basic earnings per share         |   | $                | .18   |      |   | $     | (.07  | )
|                                             |                                            |   |                  |       |      |   |       |      
|Fully diluted earnings per share as reported |                                            | $ | .18              |       |      | $ | (.07  | )    
|Pro forma effect of options                  |                                            |   |                 |       |      |   |      |      
|                                             |                                            |   |                  |       |      |   |       |      
|                                             | Pro forma fully diluted earnings per share |   | $                | .18   |      |   | $     | (.07  | )
|                                             |                                            |   |                  |       |      |   |       |      

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##### Table of Contents



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
September 30, 2003 and the results of operations and cash flows for the
three and nine month periods ended September 30, 2003 and 2002. The
results of operations for the nine months ended September 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 nine months ended September
30, 2003 was
from net deposit inflows of $53 million and proceeds from repayments of
securities available for sale as well as maturities and calls of securities
totaling $32 million. Cash was primarily used to originate loans, net of
principal repayments, totaling $26 million. At September 30, 2003, the Company
had unfunded loan commitments totaling $58 million. At September 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 September 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
|                                                |  | September |       | September |  | well - capitalized
|                                                |  | 2003      |       | 2002      |  | Entities          
|                                                |  |           |       |           |  |                   
|Consolidated                                    |  |           |       |           |  |                    |       |   |  |                 |       |  
|Total capital to risk-weighted assets           |  |           | 14.64 | %         |  |                    | 22.62 | % |  |                 | 10.00 | %
|Tier I capital to risk-weighted assets          |  |           | 13.63 | %         |  |                    | 21.60 | % |  |                 | 6.00  | %
|Tier I capital to total assets  leverage ratio |  |           | 9.54  | %         |  |                    | 15.91 | % |  |                 | 5.00  | %
|United Heritage Bank                            |  |           |       |           |  |                    |       |   |  |                 |       |  
|Total capital to risk-weighted assets           |  |           | 16.83 | %         |  |                    | 22.62 | % |  |                 | 10.00 | %
|Tier I capital to risk-weighted assets          |  |           | 15.81 | %         |  |                    | 21.60 | % |  |                 | 6.00  | %
|Tier I capital to total assets  leverage ratio |  |           | 10.63 | %         |  |                    | 15.91 | % |  |                 | 5.00  | %
|Community United Bank                           |  |           |       |           |  |                    |       |   |  |                 |       |  
|Total capital to risk-weighted assets           |  |           | 11.95 | %         |  |                    | 11.24 | % |  |                 | 10.00 | %
|Tier I capital to risk-weighted assets          |  |           | 10.97 | %         |  |                    | 10.18 | % |  |                 | 6.00  | %
|Tier I capital to total assets  leverage ratio |  |           | 8.20  | %         |  |                    | 7.56  | % |  |                 | 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:

|                                                                                                |  |  |                    |   |                    |  |       |    | 
|----------------------------------------------------------------------------------------------- |  |  | ------------------ | - | ------------------ |  | ----- | -- | 
|                                                                                                |  |  | Nine Months Ended  |   | Nine Months ended 
|                                                                                                |  |  | September 30, 2003 |   | September 30, 2002
|                                                                                                |  |  |                    |   |                   
|Average equity as a percentage of average assets                                                |  |  | 10.35              | % |                    |  | 18.37 | % 
|Equity to total assets at end of period                                                         |  |  | 9.97               | % |                    |  | 16.00 | % 
|Return on average assets (1)                                                                    |  |  | .28                | % |                    |  | (0.13 | )%
|Return on average equity (1)                                                                    |  |  | 2 .71              | % |                    |  | (0.70 | )%
|Nonperforming loans and foreclosed real estate as a percentage of total assets at end of period |  |  | 0.23               | % |                    |  |      |   

(1) Annualized for the nine months ended September 30.

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##### Table of Contents



UNITED COMMUNITY BANKSHARES OF FLORIDA, INC.

Results of Operations

General.Net earnings for the nine months ended September 30, 2003
reflect the consolidated results of operations of the Holding company and
the Banks. The net earnings for the nine months ended September 30, 2002
reflect only the financial data for United Heritage Bank. Net earnings for
the nine months ended September 30, 2003 were $613,000 or $.19 basic
earnings per share compared to a net loss of $101,000 or ($.05) loss per
share for the nine months ended September 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 and third quarters 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 $5,774,000,
from $4,086,000 for the nine months ended September 30, 2002 to $9,860,000
for the nine months ended September 30, 2003. Interest income on loans
increased $5,576,000 primarily due to an increase in the average loan
portfolio balance from $80 million at year end December 31, 2002 to $183
million for the nine months ending September 30, 2003. However there was a
slight decrease in the weighted-average yield from 7.18% in 2002 to 6.82%
in 2003. Interest on securities decreased $29,000 primarily due to a
significant decrease in the average weighted yield from 4.88% in 2002 to
2.33% in 2003 even with the securities portfolio average balances
increasing from $26 million in 2002 to $54 million in 2003.

Interest expense on interest-bearing liabilities increased to $4,250,000
for the nine months ended September 30, 2003 from $1,631,000 for the nine
months ended September 30, 2002. Interest expense on interest-bearing
liabilities increased due to an increase in average balances from $72
million in 2002 to $230 million in 2003, partially offset by a decrease in
the weighted rate paid from 3.02% in 2002 to 2.47% 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 Nine-Month Periods ended September 30, 2003 and 2002

|                                                                                 |                                             |                                            |        |                                 |         |           |       |          |       |         |      |           |      |        |        |          |         |         |       |       |       |  |      |      |      |  
|-------------------------------------------------------------------------------- | ------------------------------------------- | ------------------------------------------ | ------ | ------------------------------- | ------- | --------- | ----- | -------- | ----- | ------- | ---- | --------- | ---- | ------ | ------ | -------- | ------- | ------- | ----- | ----- | ----- |  | ---- | ---- | ---- | -
|                                                                                 |                                             |                                            |        | Nine Months Ended September 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                                       |                                            | $      | 165,795                         |         |           | $     | 8,452    |       |         |      | 6.82      | %    |        | $      | 53,585   |         |         | $     | 2,876 |       |  |      | 7.18 | %   
|                                                                                 | Securities                                  |                                            |        | 54,484                          |         |           |       | 951      |       |         |      | 2.33      | %    |        |        | 26,857   |         |         |       | 980   |       |  |      | 4.88 | %   
|                                                                                 | Other interest-earning assets (1)           |                                            |        | 53,310                          |         |           |       | 457      |       |         |      | 1.15      | %    |        |        | 17,425   |         |         |       | 230   |       |  |      | 1.76 | %   
|                                                                                 |                                             |                                            |        |                                 |         |           |       |          |       |         |      |           |      |        |        |          |         |         |       |       |       |  |      |     
|                                                                                 |                                             | Total interest-earning assets              |        |                                 | 273,589 |           |       |          | 9,860 |         |      |           | 4.82 | %      |        |          | 97,867  |         |       |       | 4,086 |  |      |      | 5.58 | %
|                                                                                 |                                             |                                            |        |                                 |         |           |       |          |       |         |      |           |      |        |        |          |         |         |       |       |       |  |      |     
|Noninterest-earning assets                                                       |                                             |                                            | 18,605 |                                 |         |           |       |          |       |         |      |           |      |        | 6,483  |          |         |         |       |       |       |  |      |     
|                                                                                 |                                             |                                            |        |                                 |         |           |       |          |       |         |      |           |      |        |        |          |         |         |       |       |       |  |      |     
|                                                                                 |                                             | Total Assets                               |        | $                               | 292,194 |           |       |          |       |         |      |           |      |        |        |          | 104,350 |         |       |       |       |  |      |      |      |  
|                                                                                 |                                             |                                            |        |                                 |         |           |       |          |       |         |      |           |      |        |        |          |         |         |       |       |       |  |      |     
|Interest-bearing liabilities:                                                    |                                             |                                            |        |                                 |         |           |       |          |       |         |      |           |      |        |        |          |         |         |       |       |       |  |      |     
|                                                                                 | Savings, NOW, money market
deposit accounts |                                            | $      | 116,145                         |         |           | $     | 1,444    |       |         |      | 1.66      | %    |        | $      | 39,751   |         |         | $     | 746   |       |  |      | 2.51 | %   
|                                                                                 | Time deposits                               |                                            |        | 112,037                         |         |           |       | 2,801    |       |         |      | 3.34      | %    |        |        | 30,906   |         |         |       | 872   |       |  |      | 3.77 | %   
|                                                                                 | Other interest-bearing liabilities (2)      |                                            |        | 1,438                           |         |           |       | 5        |       |         |      | 0.46      | %    |        |        | 1,582    |         |         |       | 13    |       |  |      | 1.10 | %   
|                                                                                 |                                             |                                            |        |                                 |         |           |       |          |       |         |      |           |      |        |        |          |         |         |       |       |       |  |      |     
|                                                                                 |                                             | Total interest-bearing liabilities         |        |                                 | 229,620 |           |       |          | 4,250 |         |      |           | 2.47 | %      |        |          | 72,239  |         |       |       | 1,631 |  |      |      | 3.02 | %
|                                                                                 |                                             |                                            |        |                                 |         |           |       |          |       |         |      |           |      |        |        |          |         |         |       |       |       |  |      |     
|Noninterest-bearing deposits                                                     |                                             |                                            | 31,396 |                                 |         |           |       |          |       |         |      |           |      |        | 12,751 |          |         |         |       |       |       |  |      |     
|Noninterest-bearing liabilities                                                  |                                             |                                            | 948    |                                 |         |           |       |          |       |         |      |           |      |        | 189    |          |         |         |       |       |       |  |      |     
|Stockholders equity                                                             |                                             |                                            | 30,230 |                                 |         |           |       |          |       |         |      |           |      |        | 19,171 |          |         |         |       |       |       |  |      |     
|                                                                                 |                                             |                                            |        |                                 |         |           |       |          |       |         |      |           |      |        |        |          |         |         |       |       |       |  |      |     
|                                                                                 |                                             | Total liabilities and
stockholders equity |        | $                               | 292,194 |           |       |          |       |         |      |           |      |        |        | $        | 104,350 |         |       |       |       |  |      |      |      |  
|                                                                                 |                                             |                                            |        |                                 |         |           |       |          |       |         |      |           |      |        |        |          |         |         |       |       |       |  |      |     
|Net interest income                                                              |                                             |                                            |        |                                 |         | $         | 5,610 |          |       |         |      |           |      |        |        |          |         | $       | 2,455 |       |       |  |      |     
|                                                                                 |                                             |                                            |        |                                 |         |           |       |          |       |         |      |           |      |        |        |          |         |         |       |       |       |  |      |     
|Interest-rate spread (3)                                                         |                                             |                                            |        |                                 |         |           |       |          |       |         | 2.35 | %         |      |        |        |          |         |         |       |       |       |  | 2.56 | %   
|                                                                                 |                                             |                                            |        |                                 |         |           |       |          |       |         |      |           |      |        |        |          |         |         |       |       |       |  |      |     
|Net interest margin (4)                                                          |                                             |                                            |        |                                 |         |           |       |          |       |         | 2.74 | %         |      |        |        |          |         |         |       |       |       |  | 3.35 | %   
|                                                                                 |                                             |                                            |        |                                 |         |           |       |          |       |         |      |           |      |        |        |          |         |         |       |       |       |  |      |     
|Ratio of average interest-earning assets to
average interest-bearing liabilities |                                             |                                            | 1.19   |                                 |         |           |       |          |       |         |      |           |      |        | 1.35   |          |         |         |       |       |       |  |      |     
|                                                                                 |                                             |                                            |        |                                 |         |           |       |          |       |         |      |           |      |        |        |          |         |         |       |       |       |  |      |     



|(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 $412,000
for the nine months ended September 30, 2003 and it was also $412,000 for
the comparable period in 2002. Management believes the approximate $2
million balance in the allowance for loan losses at September 30, 2003 is
adequate.

Noninterest Income.Noninterest income increased $214,000 during the
nine month period ended September, 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 $2,233,000
during the nine-month period ended September 30, 2003 compared to the same
period in 2002. Noninterest expenses increased primarily due to 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 nine months
ended September 30, 2003 was $381,000 compared to a $41,000 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 September 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: November 6, 2003 |  | By:                                          |  | /s/ David G. Powers                                   
|                       |  |                                              |  |                                                       
|                       |  |                                              |  | David G. Powers, President and Chief
Executive Officer
|                       |  |                                              |  |                                                       
|Date: November 6, 2003 |  | By:                                          |  | /s/ Shirley L. Tyler                                  
|                       |  |                                              |  |                                                       
|                       |  |                                              |  | Shirley L. Tyler, Treasurer                           

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United Community Bankshares of Florida Inc.
Form 10-QSB
For Nine Months Ending September 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