Reliant Bancorp (RBNC) - Get Reliant Bancorp Inc Report rose Thursday after the commercial bank agreed to be acquired by United Community Banks (UCBI) - Get United Community Banks, Inc. Report in an all-stock deal valued at about $517 million.
Shares of the Brentwood, Tenn., company were up 4.8% to $28.95. They have risen 56.3% year to date.
Blairsville, Ga.-based United Community was down 2.6% to $29.92.
The acquisition is expected to be completed in the first quarter of 2022.
Under the terms of the agreement, Reliant shareholders will receive 0.9842 a share of United common stock for each share of Reliant common stock outstanding.
The deal is valued at about $517 million, or $30.58 a share of Reliant common stock, based on United’s closing stock price of $31.07 on Tuesday.
Reliant has a 25-branch network in Tennessee, located primarily in the Nashville area.
As of March 31, Reliant reported total assets of $3.1 billion, total loans of $2.4 billion, and total deposits of $2.6 billion.
Both banks plan to release second quarter earnings results after the market close on July 20.
Both companies said they expect to report results above the consensus estimates with United expecting earnings to be in the range of 77 cents to 80 cents a share, and Reliant to range from 76 cents to 79 cents a share.
United expects to report a $13 million to $14 million negative loan loss provision and Reliant’s earnings release includes no provision in the quarter.
The deal is expected to be accretive to United’s earnings, excluding transaction costs, by about 15 cents a share, 6.1%, in 2022 and 22 cents a share, 8.5%, in 2023.
"We have had a strong interest in strengthening our Tennessee franchise for several years and are excited to enter the state’s best market with Newsweek’s 2021 'Best Small Bank in Tennessee,'" Lynn Harton, United's chairman and CEO, said in a statement.