United Community Banks agreed to acquire First Madison Bank & Trust in a $52 million all-cash transaction. First Madison will subsequently merge with and into United.
The transaction is expected to be approximately 2% dilutive to United’s tangible book value per share, including one-time transaction costs. Additionally, it is expected to be slightly accretive to United’s fully diluted earnings per share for its partial year contribution in 2019, excluding one-time transaction costs, and $.05 per share accretive in 2020.
The addition of First Madison’s four banking offices in Athens-Clarke County, GA will expand United’s presence into one of Georgia’s fastest-growing market areas and is a natural geographic extension of its existing footprint. Additionally, the merger will offer added convenience for customers of both banks and allow United to offer its expanded product line to First Madison’s customers.
“We are very pleased to partner with such a high-quality community bank in a strong and complementary market,” said Lynn Harton, United CEO. “We have wanted to expand into the Athens market for some time and have long admired Jay and his management team. We are thrilled to welcome them to United.”
“We are very excited to join the United Community Bank family,” said First Madison CEO Jay Staines. “First Madison’s customers will find that United shares our focus on providing high-quality, personalized customer service. Together, we can leverage United’s broader suite of products and services to expand relationships and continue to grow in the Athens market. We are confident that, under the United banner, we will be able to take advantage of increasing business opportunities and achieve our performance goals.”
Completion of the transaction is subject to customary closing conditions, including the receipt of required regulatory approvals and the approval of First Madison’s shareholders.
Both board of directors unanimously approved the merger. Closing is expected for the second quarter of 2019.
Nelson Mullins Riley & Scarborough served as United’s legal advisor. Olsen Palmer served as First Madison’s financial advisor, while Bryan Cave Leighton Paisner served as its legal advisor.
Headquartered in Blairsville, GA, United Community Bank is one of the southeast region’s largest full-service banks with $12.5 billion in assets and 149 offices in Georgia, North Carolina, South Carolina and Tennessee.
