United Community Banks, Inc. and First Madison Bank & Trust announce merger agreement
February 5, 2019
United Community Banks, Inc. and First Madison Bank & Trust announced a definitive agreement for United to acquire First Madison in an all-cash transaction. The transaction has been unanimously approved by the Board of Directors of each company and is expected to close in the second quarter of 2019.
First Madison operates four banking offices, all of which are located in the Athens-Clarke County, Georgia MSA. The merger 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.
Under the merger agreement, First Madison shareholders will receive aggregate merger consideration consisting of $52 million in cash. 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.
First Madison will merge into United Community Bank and operate under its brand. At December 31, 2018, First Madison had $258 million in assets, $202 million in loans, and $213 million in deposits, of which nearly two-thirds are non-CD core deposits.
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.
Nelson Mullins Riley & Scarborough LLP served as United’s legal advisor. Olsen Palmer LLC served as First Madison’s financial advisor, and Bryan Cave Leighton Paisner LLP served as its legal advisor.
About United Community Banks, Inc.
United Community Banks, Inc. (NASDAQ: UCBI) is a bank holding company headquartered in Blairsville, Georgia, with executive offices in Greenville, South Carolina. The company’s banking subsidiary, United Community Bank, is one of the southeast region’s largest full-service banks with $12.5 billion in assets [as of December 31, 2018], and 149 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in personalized community banking services for individuals, small businesses and corporations. Services include a full range of consumer and commercial banking products, including mortgage, advisory, and treasury management. Respected national research firms consistently recognize United Community Bank for outstanding customer service. For the last five years, J.D. Power has ranked United Community Bank first in customer satisfaction in the Southeast. In 2019, for the sixth consecutive year, Forbes magazine included United on its list of the 100 Best Banks in America. Additional information about the company and the bank can be found at www.ucbi.com.
About First Madison Bank & Trust
First Madison is a Georgia state-chartered bank headquartered in Athens, Georgia, with four banking offices, one each in Athens and Oconee County/Watkinsville and two in Madison County. At December 31, 2018, First Madison had $258 million in assets, $202 million in loans, and $213 million in deposits. Additional information about First Madison can be found at www.firstmadisonbank.com.
