United Community Banks in Greenville, S.C., agreed to buy Peach State Bancshares in Gainesville, Ga.
The $28.2 billion-asset United said in a press release that it will pay $100.8 million in cash and stock for the $788 million-asset Peach State. The deal, which is expected to close in the third quarter, priced Peach State at 194% of its tangible book value.
Peach State has $498 million in loans and $713 million in deposits.
“United’s culture and Peach State’s culture fit seamlessly together, where we share a deep commitment to service and a strong presence in the communities we serve,” Lynn Harton, United’s chairman and CEO, said in the release. “Because we already operate in the Gainesville area, this partnership creates a unique opportunity to learn from one another, combine local knowledge, and deepen our impact.”
The deal should be 3% accretive to United’s 2027 earnings per share.
United plans to cut 40% of Peach State’s annual noninterest expenses. It expects to incur $11.2 million in merger-related expenses.
Hovde Group and Wachtell, Lipton, Rosen & Katz advised United. Piper Sandler and Alston & Bird advised Peach State.