United Community Banks and Reliant Bancorp are merging in an estimated $517 million all-stock transaction, according to a Thursday (July 15) press release. The deal is valued at $517 million, or $30.58 per share of Reliant common stock, based on United’s closing stock price of $31.07 on Tuesday (July 13).
Based in Brentwood, Tennessee, Reliant has 25 branches in Tennessee, mostly in Nashville. The company posted $3.1 billion in assets with $2.4 billion in loans and $2.6 billion in deposits.
“Partnering with Reliant is consistent with our strategy to expand into high-growth southeastern markets with companies that share our focus on employee experience, customer service, and community engagement,” said Lynn Harton, United chairman and CEO.
“We have had a strong interest in strengthening our Tennessee franchise for several years … this merger positions us well for future growth in the state,” Harton added.
Reliant Chairman and CEO DeVan Ard Jr., who founded Reliant Bank in 2006, said the company continues to be focused on offering top customer service in the “fastest-growing markets in the Southeast — specifically Nashville” as well as making inroads into other Tennessee markets.
“By joining forces with United, we recognize an opportunity to align ourselves with a partner that shares our passion for providing high-quality customer service, and to leverage their larger balance sheet and a broader set of products and services for our customers,” he added.
The merger agreement extends Reliant shareholders 0.9842 shares of United common stock for each share of Reliant common stock outstanding, according to the release. The merger is anticipated for completion in the first quarter of next year.
Second-quarter earnings are expected to be released for both companies following the market close on July 20.
Mergers and acquisitions for U.S. banks had 19 deals in April, the most since the COVID-19 pandemic took hold in the U.S. in March 2020. Acquisition deals hit 53 as of May 2021 whereas there were 43 tie-ups during the same period in 2020.