Lee Buchanan
editor@thefranklinpress.com
State anti-trust officials have approved the acquisition of Entegra Bank by First Citizens but will require the sale of three current Entegra branches, including one in Franklin, to a separate bank.
The letter of agreement (LOA) with the N.C. Department of Justice anti-trust division calls for the divestiture of the Entegra branch in the Holly Springs Shopping Center at 30 Hyatt Road in Franklin.
Two other banks in the region will also be sold as part of the agreement: the Highlands branch at 473 Carolina Way and the Sylva branch at 498 East Main Street.
“The department of justice’s anti-trust division looks at market share,” said Entegra CEO Roger Plemens. “We have the majority of market share in Macon County now. When you add First Citizens to the mix, we have by far the largest market share. That’s why we had to divest these branches.”
State regulators, Plemens said, “want to make sure there is a competitive environment in the market.”
“The branches will be sold to a single acquiring bank,” he said. “They will remain open and keep the same employees.”
The LOA prohibits the parties from transferring employees such as branch managers, assistant branch managers or loan officers away from the divestiture branches, according to an Entegra news release.
First Citizens is currently in negotiations with a potential buyer, Plemens said.
“Hopefully we will have announcement before year-end,” he said.
Plemens said he hopes the acquisition will close in “the next week or two.”
After the merger closes, the branches must be divested within 180 days.
“We’re still a few months away from a customer noticing anything different,” Plemens said.
Entegra shareholders approved the $220 million merger with First Citizens on Aug. 1.
As of June 30, Entegra owns 49 percent of the market share in Macon County in terms of deposits, followed by Wells Fargo at 12.4 percent, First Citizens at 11.3 percent, United Community Bank at 10.7 percent, Nantahala Bank & Trust with 9.9 percent and PNC Bank with an estimated 6.7 percent, according to Entegra.