Huntsville-based Progress Financial Corp., parent of Progress Bank & Trust, is being acquired by United Community Banks Inc., of Greenville, South Carolina, in an all-stock transaction with a value of approximately $271.5 million, or $23.52 per share of Progress common stock, based on United’s closing stock price of $30.55 as of May 3.
Progress operates 14 offices, including in Huntsville, Birmingham, Daphne and Tuscaloosa in Alabama and others in the Florida Panhandle.
“I would like to thank the dedicated employees of Progress that have elevated our franchise over the past several years to one of the best performing banks in our region. I am proud of the company we have built together and believe that a partnership with United represents an excellent opportunity for us to continue to serve our customers at the highest level,” said David Nast, president and CEO of Progress.
As of March 31, Progress had total assets of $1.9 billion, total loans of $1.3 billion, and total deposits of $1.7 billion. In addition, Progress offers wealth management and private banking through Progress Financial Services, with approximately $1.2 billion in assets under management.
“Progress bankers and their customers will benefit from the expanded products and resources that we are able to bring to the table,” said Lynn Harton, chairman and CEO of United. “Our M&A focus has continued to be on high-growth markets in the Southeast with attractive demographics and strong in-migration. Progress’ footprint will complement our existing markets and be accretive to our franchise value. We have been investing in Birmingham over the past several years and have SBA and senior care teams already in place. I spent several years as a banker in these markets and know well the potential they represent.”
Under the terms of the agreement, Progress shareholders will receive 0.77 shares of United common stock for each share of Progress common stock outstanding. The merger is expected to accretive to United’s earnings per share, excluding transaction costs, by approximately $0.07 per share, or 2.0%, in 2023. The merger, pending regulatory approval, is expected to be complete in the fourth quarter of 2022.
Piper Sandler & Co. acted as financial advisors to United and Nelson Mullins Riley & Scarborough LLP served as United’s legal advisor. Stephens Inc. served as financial advisor to Progress and Maynard Cooper & Gale served as Progress’ legal advisor.
