North Georgia's biggest bank will expand into the Raleigh, N.C., market through a $124 million stock and cash purchase of Four Oaks Bank, a century-old institution with 14 branches in and around Raleigh.
United Community Bank, the Blairsville, Ga.-based banking firm with $10.7 billion in assets and 134 branches in Georgia, the Carolinas and Tennessee, announced today it expects to gain shareholder and regulatory approval for the Four Oaks Bank purchase to close the deal in the fourth quarter.
The transaction is expected to boost earnings for United Community Banks Inc., by 2 percent, or 4 cents per share, in 2018, excluding one-time transaction costs. Shares of United Community Banks rose by 31 cents per share, or nearly 1.2 percent, before closing Tuesday at $27.01 per share.
"This transaction is yet another example of our growth strategy into new, fast-growing markets," said Jimmy Tallent, chairman and chief executive officer of United Community Banks. "Four Oaks provides a strong customer base and an excellent springboard for additional growth in metropolitan Raleigh. It will also greatly assist us in attracting strong, in-market bankers to grow in this new market area for United."
United Community Bank acquired First National Bank in Cleveland, Tenn., two years ago - one of nearly two dozen bank purchases by United through its history.
Four Oaks Bank had $737 million in assets, including $513 million in loans, and $560 million in deposits, of which nearly two-thirds are considered core deposits, as of March 31.