Georgia-based United Community Banks has agreed to acquire South Carolina-based HCSB Financial and its subsidiary Horry County State Bank in an all-stock deal worth about $66m.
Horry County State Bank comprises eight branches in the Myrtle Beach-Conway-North Myrtle Beach MSA. The bank managed $376m in assets and $215m in loans as at 31 December 2016.
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Under the arrangement, Horry County State Bank will merge into United’s banking subsidiary United Community Bank, and operate under the United brand.
As part of the deal, United will recover HCSB’s deferred tax assets and associated tax benefits worth about $11m.
The deal has already secured the nod from the board of directors of both companies. It is slated to be completed in the third quarter of 2017, subject to shareholder and regulatory approvals.
United chairman and CEO Jimmy Tallent said: “This transaction fits squarely in our two-step coastal South Carolina growth strategy executed in 2016.
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By GlobalData“First we placed a team of experienced, in-market lenders in Charleston. Then we acquired Tidelands Bank with a presence in the Charleston area, Hilton Head and Myrtle Beach. Acquiring Horry County State Bank enhances our presence in the Myrtle Beach community and creates value for shareholders and customers of both organisations.”
