United Community entering Georgia market with First Madison deal

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United Community Banks in Blairsville, Ga., has agreed to buy First Madison Bank & Trust in Athens, Ga.

The $12.5 billion-asset United said in a press release Tuesday that it will pay $52 million in cash for the $258 million-asset First Madison. The deal is expected to close in the second quarter.

First Madison has four branches, $202 million in loans and $213 million in deposits.

United said it expects the transaction to be about 2% dilutive to its tangible book value, including one-time costs. It should be slightly accretive to United’s earnings per share this year, excluding merger-related costs, and add 5 cents in 2020.

“We are very pleased to partner with such a high-quality community bank in a strong and complementary market,” Lynn Harton, United’s CEO, said in the release. “We have wanted to expand into the Athens market for some time.”

Nelson Mullins Riley & Scarborough advised United. Olsen Palmer and Bryan Cave Leighton Paisner advised First Madison.

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