United Community Banks to Acquire Peach State Bancshares in Merger with August 2026 Legal Close

Merger Timeline and Key Milestone Dates

United Community Banks disclosed that the legal closing of its acquisition of Peach State Bancshares is scheduled for August 3, 2026. Following the legal close, a conversion period has been scheduled for February 12 through February 16, 2027, during which systems and operations will be integrated. The disclosure notes that these dates remain subject to regulatory approval, indicating that final timing may be subject to completion of customary closing conditions and regulatory clearances. This extended timeline between legal close and conversion represents a staged integration approach, allowing time for preparation and staff training between the closing of the transaction and the operational merger of systems and processes.

The announcement emphasizes that United Community is committed to maintaining clear communication with both employees and customers throughout the transition period. During the week of August 3, employees will receive additional information regarding role assignments, team structure, and managerial changes. For customers, United Community plans to establish a dedicated landing page on August 3 featuring frequently asked questions, company overviews, and a welcome message, with updates to be provided regularly. Customer welcome letters will be mailed to all Peach State customers within 30 days of legal close, ensuring that the customer base receives timely communication about the transition.

Benefits Coverage Continuity and Extended Enrollment Period

United Community disclosed that all current Peach State benefit plans will remain effective through August 31, 2026, with United Community benefit coverage beginning September 1, 2026. This arrangement ensures that Peach State employees will experience no lapse or gap in health insurance coverage during the transition. The disclosure explains that this extension was designed to provide employees with adequate time and resources to make informed benefits decisions while maintaining uninterrupted coverage. Educational webinars covering available benefits, key plan differences, and transition questions will be offered to Peach State employees in mid-August, prior to enrollment beginning for United Community plans.

Regarding deductibles and out-of-pocket maximums, United Community and Peach State HR teams are collaborating with the current medical provider to transfer any deductible amounts already paid in 2026. The disclosure states that United will honor amounts employees have already paid in 2026, pending verification of the data transfer. Employees will receive notification once this information has been verified and made available for transfer. This approach demonstrates an effort to maintain equity for employees during the benefits transition without requiring them to restart deductible accumulation cycles.

Flexible Spending Account Management During Integration

The disclosure addresses the treatment of Flexible Spending Accounts, indicating that Peach State's FSA plan will remain active through December 31, allowing participants to continue using existing FSA funds for eligible expenses through the end of the year. Employees not currently enrolled in the Peach State FSA plan or who have not reached their annual contribution limit can enroll in United Community's FSA plan during the new hire enrollment period, with additional details to be provided during the enrollment process. This arrangement allows for continuity of FSA benefits without forcing immediate transitions that could disrupt employees' flexible spending arrangements.

United and Peach State HR teams are working together to determine the optimal approach for managing FSA accounts for the remainder of 2026. The disclosure indicates that once a solution has been identified, employees will be notified of the specific arrangements. This collaborative approach suggests that the companies are working to resolve the technical and administrative complexities associated with merging separate FSA plans, which may involve coordination with FSA third-party administrators and compliance with Internal Revenue Service regulations.

Payroll System Transition to ADP Workforce Now

United Community disclosed that Peach State employees will transition to United's ADP Workforce Now payroll and human resources information system at legal close on August 3, 2026. Beginning the week of July 28, Peach State employees will see the ADP icon appear on their computers and will begin receiving training materials regarding United's timekeeping system. On July 28 and July 29, employees will receive step-by-step instructions via email to complete a one-time registration and onboarding for their ADP accounts. United Community representatives will be on-site at the Braselton office on July 28 and at the Gainesville office on July 29 to assist employees with the ADP registration process.

The disclosure explains that upon payroll conversion on August 3, 2026, Peach State employees will begin using United's ADP Workforce Now system to record time and attendance. Peach State employees will also be converted to United's time off policies and will begin submitting time off requests through the ADP system. This transition represents a fundamental change in how employees manage their work hours and time-off requests, necessitating comprehensive training and support to ensure a smooth operational transition. The provision of on-site assistance at multiple office locations indicates an effort to minimize disruption and address technical issues during the initial registration period.

Retirement Plan Merger and 401(k) Transition Details

United Community disclosed that the Peach State Bank 401(k) Plan will be merged into the United Community Banks, Inc. 401(k) Plan following legal close, with the exact timeline to be communicated once verified by T. Rowe Price and GBA. The disclosure states that Peach State employees will be eligible to start contributing to United's 401(k) Plan on their first United payroll. Later in July, employees will be able to access their T. Rowe Price account to make contribution elections. If employees do not make any election or decline contributions, they will be auto-enrolled within thirty to forty-five days at a five percent contribution rate.

The announcement indicates that United Community's employer match contribution policy is dollar-for-dollar up to five percent, which employees should consider when making contribution elections. To help employees understand the plan's features, investment options, and enrollment process, T. Rowe Price will host educational webinars on August 5 at 10:00 a.m. and August 11 at 2:00 p.m., with calendar invitations and meeting details to be distributed. The disclosure confirms that employees' accrued balances and years of service will be honored in the merged plan, ensuring that retirement savings are not lost during the transition.

Time Off and Paid Time Off Policies During Merger

United Community disclosed that Peach State employees' accrued paid time off will be transferred following legal close. The company's policy is to add the Peach State PTO balance to United Community's sick time balance at the time of legal close. Any PTO that is approved and scheduled following legal close will need to be re-entered into United's HRIS and payroll system, ADP Workforce Now. Additionally, grandfathered sick time balances from Peach State Bank will be paid out based on the value of accrued hours as of 2022, with employees receiving a prorated amount of their vacation time balance at legal close.

The announcement indicates that if legal close takes place in August 2026, employees will receive a corresponding prorated amount of vacation time based on the timing of the closing within that month. This approach to time-off policy conversion demonstrates an effort to ensure that employees do not lose accrued benefits while transitioning to United Community's policies and systems. The requirement to re-enter scheduled time-off requests into the ADP system reflects the technical necessity of migrating time-off data between different human resources platforms, which may require manual intervention for scheduled absences.

Life Insurance, Disability Coverage, and Wellness Program Participation

United Community disclosed that Peach State employees will transition to United's life and disability policies at legal close. The announcement encourages employees to review the company's Benefits at a Glance document or contact the HR team at [email protected] for additional questions regarding life and disability coverage prior to the special enrollment period. Peach State employees will be allowed to participate in United Community's Wellness Program and will be grandfathered into United's medical premium discount incentive for all of 2027. The established premium discount incentive for 2027 is twenty dollars per pay period, providing financial recognition for employees' participation in wellness activities.

The grandfathering provision for the medical premium discount indicates that employees who may not have participated in United Community's wellness program previously will receive the established incentive rate in 2027, rather than being subject to alternative rates that might apply to new enrollees. This approach reduces potential disparities in incentive levels between legacy Peach State employees and United Community employees. Members from United Community's Human Resources team will visit Peach State offices prior to legal close to host benefit education sessions, providing employees with opportunities to ask questions about coverage options and understand the differences between Peach State and United Community plans.

Employee Tenure Recognition and Years of Service Protections

United Community disclosed that the company will honor Peach State employees' years of service at Peach State Bank, ensuring that tenure accumulated prior to the merger will be recognized in United Community's systems and policies. This protection of service credit is significant for employees whose tenure affects benefits calculations, vesting schedules, or other employment-related determinations. The announcement indicates that United Community is committed to treating the combined workforce equitably by recognizing the prior service history of acquired employees, rather than treating the merger as a break in service continuity.

The recognition of prior tenure demonstrates a human resources approach focused on employee retention and morale during the integration process. By protecting service credits and tenure recognition, United Community signals to Peach State employees that their historical contributions to Peach State will be valued in the combined organization. This policy may reduce employee concerns about losing seniority or having benefits calculations reset to zero upon the completion of the merger.

Special Enrollment Provisions and Verification Process

United Community disclosed that Peach State employees will complete a special enrollment period in July to have their benefits elections verified and active prior to legal close. The announcement states that United Community's Human Resources team will visit Peach State offices prior to legal close to host benefit education sessions, supporting this verification and enrollment process. This approach allows employees to make informed decisions about their benefits before the transition occurs, reducing confusion during the conversion period and ensuring that benefits elections are in place when United Community coverage begins on September 1.

The disclosure indicates that the special enrollment process serves both to capture employee elections for United Community plans and to verify that information is accurate and ready for system implementation. By conducting this verification prior to legal close, United Community reduces the likelihood of administrative errors or missing information that could delay benefit implementation. The timing of these educational sessions and enrollment activities is coordinated to occur in mid-August 2026, providing employees with adequate notice and time to review their options before making benefit selections.

Communication Resources and Ongoing Employee Support

United Community disclosed that employees with questions during the transition should contact the HR Business Partner, Christy Foster, or the general HR inquiry email address at [email protected]. An FAQ document has been attached to the announcement and is available to employees as a reference resource to address common questions throughout the transition process. The disclosure emphasizes that United Community is committed to providing information, guidance, and personalized support to employees throughout the transition and beyond, acknowledging that these adjustments can create questions and concerns among the workforce.

The availability of multiple communication channels and support resources demonstrates an effort to ensure that employees have ready access to assistance during the integration period. The FAQ document serves as a self-service resource that can address routine questions without requiring direct contact with HR staff, while the designated HR contacts provide pathways for employees with more complex or personalized questions. The statement that United Community is "committed to keeping you informed and supported" suggests an ongoing communication strategy beyond the initial merger announcement, with regular updates expected as the integration progresses.