Blairsville-based United Community Banks Inc., which earlier this year acquired a Tennessee bank, announced Wednesday that it has a $240.5 million merger deal with Palmetto Bancshares Inc. in South Carolina.
In a release, United, which is the parent of United Community Bank, said its merger with the parent of The Palmetto Bank is part of its strategy to grow operations in the Southeast.
Also on Wednesday, United said its first-quarter earnings rose 15 percent, compared with a year ago, to $17.7 million. The bank said strong growth in loans and fee revenues helped boost its bottom line.
Palmetto Bank, which will become United Community Bank after the deal is completed, is a 108-year-old institution with $1.2 billion in assets. The upstate S.C. bank has 25 branches.
“Joining forces with Palmetto will greatly enhance our presence in these markets, creating value for shareholders and customers of both organizations,” said United Chairman and Chief Executive Officer Jimmy Tallent.
In Nasdaq trading early Wednesday, shares of United (ticker UCBI) traded slightly higher than its Tuesday close, at around $18.41. As part of the deal, Palmetto shareholders can receive $19.25 in cash or 0.97 shares of United common stock, or any combination thereof, for each share of Palmetto common stock.
In January, United announced it was acquiring the Tennessee bank holding company MoneyTree and its First National Bank subsidiary in a stock and cash deal valued at $52 million.
United has assets of $7.7 billion. The deal with Palmetto is expected to close in the fourth quarter.
Staff writer Russell Grantham contributed to this report.
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