BLAIRSVILLE — United Community Banks has reached an agreement with MoneyTree Corp. to buy Lenoir City, Tenn.-based MoneyTree and its subsidiary, First National Bank, in a deal valued at about $52 million.
MoneyTree shareholders will receive 80 percent stock and 20 percent cash based on United’s closing price Tuesday of $17.65 per share.
The announcement of the deal late Tuesday indicated it has been unanimously approved by the board of directors of each company and is expected to close in the second quarter of 2015.
“This transaction enhances our presence in the communities we serve and creates value for the shareholders and customers of both our organizations,” said Jimmy Tallent, president and chief executive officer of United. “We are excited to have the opportunity to expand our footprint in east Tennessee by joining forces with a strong, well-established community bank.”
He said United entered the east Tennessee market 12 years ago and is strongly committed to the region.
“This merger will allow us to expand into key markets in east Tennessee, including Cleveland, Lenoir City and Knoxville,” Tallent said.
First National will merge into United’s bank subsidiary United Community Bank and operate under its brand. First National currently operates 10 branches in east Tennessee, and as of Dec. 31 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.
First National President and CEO David Allen said his bank has been serving customers in east Tennessee for 107 years.
“This partnership further assures us of having the ability to be a leader in meeting the financial services needs of our customers and to meaningfully contribute to our local communities. That is what community banking is all about,” Allen said.
First National’s board chairman, Ted L. Wampler, Sr., said the board is confident the merger is consistent with the bank’s tradition.
