United Community Banks Inc. announced Tuesday it will acquire Peach State Bancshares Inc., the parent company of Peach State Bank & Trust, in a stock and cash transaction valued at approximately $100.4 million.

Photo By Avery Bryson.

Photo By Avery Bryson.

The deal, announced April 21, would expand United Community's footprint in the Gainesville market.

Under the terms of the agreement, Peach State shareholders may elect to receive either $31.75 per share in cash or .8978 shares of United Community common stock for each share of Peach State common stock they hold. The agreement calls for 50 percent of shares to be exchanged for stock and 50 percent for cash, with the total transaction value calculated on United Community's closing stock price of $34.15 on April 17.

Lynn Harton, Chairman and Chief Executive officer of United Community Banks (NYSE: UCB), called Gainesville "an outstanding area" and stated "United's culture and Peach State's culture fit seamlessly together, where we share deep commitment to service and a strong presence in the communities we serve."

Ron Quinn, president and CEO of Peach State Bank, said Community emerged as a clear choice among potential partners. "Their focus on the needs of the customer, combined with their larger balance sheet and expanded product and service offerings, will ensure that our customers continue to receive best-in-class service," Quinn said.

Peach State Bank, founded in 2005, reported total assets of $788 million, total loans of $498 million and total deposits of $713 million as of March 31. The company has served the Hall County community for over 20 years and was one of only three banks in Georgia to receive the highest 5-Star ranking based on financial strength, customer satisfaction, and community banking performance.

The combined entity would hold an estimated $1.6 billion in deposits across six branches in the Gainesville metropolitan statistical area, making United Community the leading deposit share holder in the market. The merger agreement was unanimously approved by the boards of directors of United and Peach State.

During a press conference Tuesday, Harton and Quinn addressed the community's primary concerns ahead of the merger.

Harton explained that while there is no official timeline for when changes to personnel or branches may occur, United Community anticipates to preserve more roles than would typically be seen for an acquisition of this size.

"Whether it's technology or finance or some of the areas that we typically then have overlap, and those jobs would would typically go, we have the ability, to the extent that we have open positions in those roles today to fill those here," Harton said.

Harton said there would be minimal changes for customers.

"From a client facing perspective, and the people that support those client facing people, there's no plans for any changes at all," he said. "The only thing you get when you merge with or acquire a bank is the customers, and the customers are tied to the employees. So if you don't keep those employees, you really have messed up."

Harton also highlighted that overtime, customers will gain more lending capacity as well as trust and investment options. He also said clients will eventually transition to using United Community's online banking platform.

Hovde Group LLC served as financial advisor to United Community, with Wachtell, Lipton, Rosen & Katz acting as legal counsel. Piper Sandler & Co. advised Peach State, and Alston & Bird LLP provided legal representation to the seller.

United Community Banks, headquartered in Greenville, S.C., operates 200 offices across Alabama, Florida, Georgia, North Carolina, South Carolina and Tennessee, with $28.2 billion in total assets as of March 31.

The deal is expected to close in the third quarter of 2026, pending regulatory approval and a vote by Peach State shareholders.

"I believe that the combination of our teams will result in tremendous success for both parties and our customers," Ron Quinn said.