Entegra Bank, the wholly-owned subsidiary of Entegra Financial Corp. (NASDAQ:ENFC), today announced that it has entered into an agreement with Stearns Bank, N.A., the wholly-owned subsidiary of Stearns Financial Services, Inc., to acquire its 2 banking branches in Jasper, Georgia. Entegra will assume approximately $150 million in deposits with the option to purchase up to $5 million in loans, and pay a deposit premium of 3.65%.
“We are thrilled to announce this branch acquisition as we continue to expand our franchise into northern Georgia,” said Roger D. Plemens, President and Chief Executive Officer of Entegra. “Stearns Bank has done a great job of turning around and growing these Jasper branches and preserving a vital, time-honored community institution. The acquisition will provide us with the liquidity to continue our growth, as well as a presence in the attractive Pickens County, Georgia market, which serves as a bedroom community for the northern Atlanta metropolitan area. We continue to execute upon our strategic priorities of seeking accretive acquisition opportunities, diversifying into higher growth contiguous markets, leveraging our capital, and positioning Entegra for long-term independence.”
Entegra Bank intends to hire all current employees at both branch locations and is dedicated to providing a smooth transition and high level of service to its new customers.
Excluding estimated transaction expenses, the transaction is expected to accrete $0.24 to earnings per share during the first year, an increase of approximately 20%. The 4.2% tangible book value dilution will result in an earn-back period of approximately 3 years. Upon completion of the transaction, Entegra is expected to have approximately $1.35 billion in assets and nearly $1.0 billion in deposits.
The purchase, which is subject to customary closing conditions, including regulatory approvals, is expected to be completed in the first quarter of 2017.
Entegra Financial Corp. and Entegra Bank were advised in the transaction by Sandler O’Neill + Partners, L.P. as financial advisor and Brooks, Pierce, McLendon, Humphrey & Leonard, LLP as legal counsel. Stearns Financial Services, Inc. and Stearns Bank, N.A. were advised in this transaction by Hovde Group, LLC as financial advisor and Lindquist & Vennum LLP as legal counsel.
About Entegra Financial Corp.
Entegra Financial Corp., with total assets of $1.2 billion at June 30, 2016, is headquartered in Franklin, NC and is the bank holding company for Entegra Bank. Entegra’s shares trade on the NASDAQ Global Market under the symbol “ENFC”.
Entegra Bank operates a total of 15 branches located throughout the Western North Carolina counties of Cherokee, Haywood, Henderson, Jackson, Macon, Polk and Transylvania and Upstate South Carolina counties of Anderson, Greenville, and Spartanburg. The Bank also operates loan production offices in Asheville, NC and Clemson, SC. For further information, visit the Bank’s website www.entegrabank.com.
About Stearns Financial Services, Inc.
Stearns Financial Services Inc. (SFSI) is a $1.9 billion well-capitalized, independent financial holding company based in the Midwest. Founded in 1912, CEO Norm Skalicky has led SFSI since 1964. Stearns Bank continues to extend the foundation of excellence with bank locations in Minnesota, Arizona, Florida, and Georgia. Stearns specializes in nationwide small business lending and equipment financing with a history delivering outstanding customer service and the ability to deliver fast decisions with customized finance solutions. Our slogan says it all: We get the job done!
