A North Carolina bank with a local presence will be acquired later this year if the transaction meets with regulatory approval
 
Aquesta Financial Holdings Inc., parent of Aquesta Bank, has entered into a definitive agreement to be purchased by United Community Banks Inc., United officials announced last week.
 
Aquesta, based in Cornelius, a fast-growing Charlotte suburb on Lake Norman, has reported total assets of $752 million, with total loans of $576 million. It maintains one branch in Wilmington and ranks 15th in the local market, ranked by local deposits.
 
Greenville, South Carolina-based United Community Banks has $18.6 billion in assets and 161 offices in Florida, Georgia, North Carolina, South Carolina and Tennessee, along with a national SBA lending franchise and a national equipment lending subsidiary.

The transaction value is estimated at approximately $131 million, including approximately $12 million in value for outstanding options and warrants to acquire Aquesta common stock, according to the release, which stated, “The transaction structure includes an election for Aquesta stockholders to receive their consideration in cash, subject to a limitation that no more than 30% of the total consideration paid by United will be in cash. The stock portion of the merger consideration is based upon 0.6386 shares of United common stock being issued in exchange for each share of Aquesta common stock.”

Because the process is in its very early stages, Aquesta President and CEO Jim Engel said he did not have many details to share at present.
 
“I can say that we are excited about the opportunity to partner with a larger community bank. The Wilmington area is new to UCBI and they are excited to help us grow in the market,” Engel wrote in an email Tuesday, adding that as far as Aquesta’s customers are concerned, “Probably the biggest change will be that UCBI brings greater resources in terms of lending capacity; i.e.; their legal lending limit is much higher than Aquesta’s.  
 
“This should allow us to continue to serve our fast-growth Wilmington clients that at times have outgrown our lending capacity,” Engel continued. “It will also allow us to finance larger single project opportunities. UCBI plans to keep all branches open so our customers will continue to work with our same teammates although there likely will be additional personnel as we continue to expand.” 
 
The acquisition of Aquesta is consistent with United’s desire to “expand into attractive and fast-growing markets that we know well,” Lynn Harton, United’s chairman and CEO, said in the release.  

“We have been investing in Charlotte over the past several years and have commercial banking and mortgage teams already in place. Aquesta is an exciting opportunity for us to increase our presence and accelerate our growth with a high-quality company that shares our values of customer service, employee engagement and community development.”

Officials expect the transaction to be completed in the fourth quarter of 2021, subject to customary conditions, including regulatory approval as well as the approval of Aquesta’s stockholders, the release stated.