United in Ga. to buy Progress Financial in Ala.

United Community Banks in Blairsville, Ga., has agreed to buy Progress Financial in Huntsville, Ala. 

The $24.4 billion-asset United said in a press release Wednesday that it will pay $271.5 million in stock for the $1.9 billion-asset Progress. The deal, which is expected to close in the fourth quarter, priced Progress at 165% of its tangible book value.

Progress has 14 branches, $1.3 billion of loans and $1.7 billion of deposits. The company also offers wealth management and private banking through Progress Financial Services, where it has $1.2 billion of assets under management. 

"Progress bankers and their customers will benefit from the expanded products and resources that we are able to bring to the table,” Lynn Harton, United’s chairman and CEO, said in the release.

"Our M&A focus has continued to be on high-growth markets in the Southeast with attractive demographics and strong in-migration,” Harton added. “Progress’ footprint will complement our existing markets and be accretive to our franchise value.” 

United said the deal should be 2% accretive to its 2023 earnings per share, excluding merger-related costs. The company expects to incur $25.4 million of merger-related expenses.

United plans to cut a quarter of Progress' annual noninterest expenses, or roughly $13.5 million.

Piper Sandler and Nelson Mullins Riley & Scarborough advised United. Stephens and Maynard Cooper Gale advised Progress.