Lee Buchanan
editor@thefranklinpress.com
The Entegra Bank branch on Hyatt Road in Franklin will become a Select Bank as a result of Entegra’s acquisition by First Citizens.
First-Citizens Bank & Trust Company, Entegra Bank and Select Bank & Trust Company said Monday that Select Bank has entered into an agreement to buy three Entegra Bank branches in Western North Carolina.
These branches are being divested as required under agreements with the U.S. Department of Justice, Antitrust Division, and the Federal Reserve in connection with Entegra Bank’s proposed merger into First Citizens Bank.
Select Bank, headquartered in Dunn, has agreed to buy Entegra Bank’s Holly Springs branch on Hyatt Road in Franklin, along with locations in Highlands and Sylva.
Select Bank was founded in 2000 and offers retail, small business and commercial banking products and services at 18 locations in North Carolina, South Carolina and Virginia.
“Select Bank shares the same values and philosophies of our two companies. We believe Select Bank will be a great fit for these customers and communities,” said Roger Plemens, president and chief executive officer of Entegra Bank.
As part of the agreement, Select Bank will assume approximately $180 million in deposits and will purchase approximately $110 million in loans.
“Today’s agreement with Select Bank represents a step forward in the merger with Entegra,” said Frank Holding, chairman and chief executive officer of First Citizens Bank.
“We’re excited about extending our presence to these Western North Carolina communities and look forward to welcoming our new customers and employees to our bank in the days ahead,” said William L. Hedgepeth II, president and chief executive officer of Select Bank.
Entegra shareholders approved the $220 million merger with First Citizens on Aug. 1.
Entegra Bank, headquartered in Franklin, currently operates 18 branches in Western North Carolina, Upstate South Carolina and North Georgia.
On Dec. 2, 2019, First Citizens, First Citizens Bank, Entegra and Entegra Bank entered into a letter of agreement with the Department of Justice to agree to sell the three Western North Carolina branches as part of the two companies’ proposed merger.
Completion of the proposed acquisition remains subject to the satisfaction or waiver of other closing conditions, and is expected to occur on or about Dec. 31, 2019.
In a statement, Entegra said its customers should bank as they normally do at their existing branches.
Once the merger of First Citizens Bank and Entegra Bank takes place, Entegra Bank branch offices will initially operate as Entegra Bank, a division of First Citizens Bank. Customer accounts at 15 Entegra Bank branch locations will be converted to First Citizens Bank’s systems and operations later in 2020.
Also, on the date of merger, First Citizens Bank will temporarily acquire the three divested branches in the merger with Entegra Bank, but the accounts ultimately will not be converted to First Citizens Bank’s systems. Select Bank will acquire and convert customer accounts at the three divested Entegra Bank locations.
Earlier in December, the proposed merger received the required regulatory approvals from the board of governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the Office of the North Carolina Commissioner of Banks. No further regulatory approvals are required to complete the merger, according to Entegra.