United Community Banks To Acquire MoneyTree - Quick Facts

(RTTNews) - United Community Banks Inc. (UCBI) and MoneyTree Corp. announced a definitive agreement for United to acquire MoneyTree and its wholly-owned bank subsidiary, First National Bank or "FNB".

The transaction has been unanimously approved by the Board of Directors of each company and is expected to close in the second quarter of 2015.

As per the terms of the merger agreement, MoneyTree shareholders will receive merger consideration consisting of 80 percent stock and 20 percent cash in aggregate, with a fixed exchange ratio that is valued at approximately $52 million based on United's closing price of $17.65 per share.

The transaction is expected to be slightly accretive to United's fully diluted earnings per share in 2015, and 3 percent accretive in 2016 and 2017.

The transaction is expected to be less than 1 percent dilutive to United's tangible book value per share with an earn-back period of less than three years, including one-time transaction costs.

Under the transaction, FNB will merge into United's bank subsidiary United Community Bank and operate under its brand. FNB currently operates 10 branches in East Tennessee, and at December 31, 2014, had $425 million in assets, $354 million in deposits and $253 million in loans. Upon completion of the transaction, United will have $8 billion in total assets.

Completion of the transaction is subject to customary closing conditions, including the receipt of required regulatory approvals and the approval of MoneyTree's shareholders.

Separately, United Community Banks announced that Rob Edwards has joined the company as executive vice president and chief credit officer for United Community Banks, Inc. and its banking subsidiary, United Community Bank. Edwards' entire professional career has been in the banking industry with more than 25 years in credit management.

Edwards is replacing David Shearrow as chief credit officer due to Shearrow's previously announced retirement effective January 31, 2015. Edwards most recently served as senior vice president, executive credit officer at TD Bank where he had been responsible for Commercial Credit Approval for a large portion of the bank's footprint.