United Community Banks Inc. and Reliant Bancorp Inc. today announced the execution of a definitive merger agreement for United to acquire Reliant and its subsidiary, Reliant Bank, in an all-stock transaction worth $517 million, according to a news release.
That comes to $30.58 per share of Reliant common stock based on United’s closing price July 13.
Reliant is headquartered in Brentwood, Tenn., a suburb of Nashville. Its management team is led by Chairman and CEO DeVan Ard Jr., who founded Reliant Bank in 2006. The company has a 25-branch network in Tennessee, located primarily in the Nashville area, with four branches in Clarksville, one in Chattanooga, and a manufactured housing finance group based in Knoxville, the news release said.
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. Following the closing of the merger, the company expects United will be ranked 10th in Tennessee for deposit market share.
“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” Lynn Harton, chairman and CEO of United, said in the release. “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.” Reliant is a highly regarded, high-performing bank. This merger positions us well for future growth in the state.”
Ard will be United’s Tennessee state president.
“Our mission has been to build a business model that is shaped by the delivery of outstanding customer experiences and supported by a diverse and experienced team who are positioned in some of the most attractive and fastest-growing markets in the Southeast — specifically Nashville and other key markets in Tennessee,” Ard said in the release. “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. Becoming part of United’s team-oriented, high-performance culture presents a unique opportunity for Reliant, and we consider it a privilege.”
Reliant shareholders will receive 0.9842 shares of United common stock for each share of Reliant common stock outstanding, the release said.
The Merger is expected to be completed in the first quarter of 2022 and is subject to customary conditions, including regulatory approval as well as the approval of Reliant’s shareholders, the release said.
D.A. Davidson & Co., Morgan Stanley & Co. LLC and Piper Sandler & Co. acted as financial advisors to United, and Nelson Mullins Riley & Scarborough LLP served as United’s legal advisor. Raymond James & Associates Inc. and Credit Suisse Securities (USA) LLC served as financial advisors to Reliant, and K&L Gates LLP served as Reliant’s legal advisor.