United Community Banks in Blairsville, Ga., has agreed to buy MoneyTree Corp. in Lenoir City, Tenn.
The $7.6 billion-asset United will pay $52 million in cash and stock for MoneyTree, the holding company for the $425 million-asset First National Bank. The transaction is expected to close in the second quarter.
United said in a press release Tuesday that it expects the transaction to be slightly accretive to its fully diluted earnings per share this year, and 3% accretive in 2016 and 2017. The purchase is expected to be less than 1% dilutive to United's tangible book value per share with an earn-back period of less than three years, including one-time transaction costs.
""We are excited to have the opportunity to expand our footprint in East Tennessee by joining forces with a strong, well-established community bank," Jimmy Tallent,
Sterne, Agee & Leach and Baker, Donelson, Bearman, Caldwell & Berkowitz advised MoneyTree. Morgan Stanley and Troutman Sanders advised United.