Banking & Finance

Savannah Business Journal Staff Report

February 6, 2019 - United Community Banks, Inc. and First Madison Bank & Trust recently 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.

“We are very pleased to partner with such a high-quality community bank in a strong and complementary market,” said Lynn Harton, Chief Executive Officer of United. “We have wanted to expand into the Athens market for some time and have long admired Jay Staines, Chief Executive Officer of First Madison, 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’s Chief Executive Officer, 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. Our region is fortunate to have a stable economic base supported by The University of Georgia and numerous successful industrial companies. We are confident that, under the United banner, we will be able to take advantage of increasing business opportunities and achieve our performance goals.”

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.