United Community Banks buying two N.C. banks

BLAIRSVILLE – Blairsville-based United Community Banks, Inc. (NASDAQ: UCBI) Tuesday announced an agreement to purchase two branches from First Charter Corporation (NASDAQ: FCTR) in Sylva and Bryson City, North Carolina.

“Since we are in these markets, we have the advantage of knowing the banking environment. In Sylva, we are adding a key location near the downtown area. Also, the employees at these banking offices have established relationships with their customers, which will ensure a seamless transition and a positive experience for our new customers,” commented Greg Hining, President of United Community Bank–North Carolina. “We know that retaining the existing staff and welcoming them into our United Community Bank family is key to our success,” he said.

"We are continually evaluating the performance of our different lines of business, looking for ways that we can increase our productivity and profitability." said Bob James, President and CEO of First Charter Corporation. "After much discussion, we decided that it would be in the best interest of our customers and teammates in Sylva and Bryson City to find a partner that was committed to building upon our strong track record of exceptional service in these markets. We’re pleased that United Community Bank understands the value of our Sylva and Bryson City teams and that they intend to keep the teams in place to benefit our customers and the community.”

The terms of the agreement call for United Community Banks to acquire the loans and fixed assets, as well as to assume the deposits of each location. As of March 31, 2006, total loans were $9 million and deposits were $37 million. The transaction is expected to close late in the third quarter of this year, subject to regulatory approvals.

United Community Banks currently has 18 banking offices in 12 western North Carolina counties and in north Georgia, coastal Georgia, eastern Tennessee, and metro Atlanta. Several of its north Georgia offices are in Gainesville and Hall County.

“We are very pleased to have this opportunity to expand within these excellent North Carolina markets,” said Jimmy Tallent, President and Chief Executive Officer of United Community Banks, Inc. “We look forward to the First Charter employees joining us and providing our new customers with the high level of customer service and warm, friendly banking environment for which we are known.”