United Community Banks and Progress Financial Corp. to merge.

United Community Banks Inc. and Progress Financial Corp. today announced plans for UCB to purchase Progress, which is headquartered in Huntsville, Ala.

The two banks announced the execution of a definitive merger agreement in which United will acquire Progress, and its wholly owned subsidiary, Progress Bank & Trust, in an all-stock transaction with an aggregate value of approximately $271.5 million, or $23.52 per share of Progress common stock, based on United's closing stock price of $30.55 on May 3, according to a news release.

Progress operates 14 offices in Southeastern markets, including Huntsville, Birmingham, Daphne and Tuscaloosa in Alabama and the Florida Panhandle, the release said.

As of March 31, Progress had total assets of $1.9 billion, total loans of $1.3 billion, and total deposits of $1.7 billion, the release said. In addition to traditional banking products, Progress offers wealth management and private banking through Progress Financial Services, a division of Progress Bank, with approximately $1.2 billion in assets under management.

Led by President and CEO David Nast, Progress has focused on organic growth by hiring and developing skilled commercial and mortgage banking teams in its markets, according to the release, which said the company, during its expansion across Alabama and Florida, has emphasized a strong credit culture.

"We believe Progress and United to be a great cultural fit and are excited to join forces in Alabama and the Florida panhandle," Lynn Harton, chairman and CEO of United, said in the release. "Progress bankers and their customers will benefit from the expanded products and resources that we are able to bring to the table. Our M&A focus has continued to be on high-growth markets in the Southeast with attractive demographics and strong in-migration. Progress' footprint will complement our existing markets and be accretive to our franchise value. We have been investing in Birmingham over the past several years and have SBA and Ssenior care teams already in place. I spent several years as a banker in these markets and know well the potential they represent. I am looking forward to bringing Progress into the United team."

The merger agreement was approved unanimously by the boards of directors of Progress and United...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT