United Community Banks has agreed to acquire North Carolina-based Four Oaks Fincorp and its subsidiary Four Oaks Bank & Trust Company in a stock-cash deal worth around $124m.
Four Oaks Bank has 14 banking offices, which includes loan production offices in Raleigh and Apex. The bank reported $737m in assets at the end of March 2017.
The deal includes the subsequent merger of Four Oaks Bank into United banking subsidiary. Four Oaks Bank will operate under the United Community Bank brand following the merger.
United expects the deal to be less than 1% dilutive to its tangible book value per share and 2% accretive to its diluted earnings per share for 2018.
The deal already received the go-ahead from the companies’ board of directors and is expected to be wrapped up in the fourth quarter of 2017, subject to shareholder and regulatory approvals.
United chairman and CEO Jimmy Tallent said: “Four Oaks provides a strong customer base and an excellent springboard for additional growth in metropolitan Raleigh. It will also greatly assist us in attracting strong, in-market bankers to grow in this new market area for United.”