Entegra Financial Corp., the parent holding company of Entegra Bank, and Oldtown Bank have a definitive agreement where Entegra will purchase Oldtown in an all cash transaction valued at about $13.5 million.
Oldtown currently operates one branch in Waynesville and will add about $113 million in assets, $65 million in loans, and $92 million in deposits to Entegra Bank.
Upon completion of this transaction and the closing of the pending purchase of two branches in Anderson and Chesnee, South Carolina, Entegra will have about $1.1 billion in assets, $675 million in loans, and $817 million in deposits.
Entegra Bank is the former Macon Bank, headquartered in Franklin, which began serving Western North Carolina in 1922, making it one of the oldest community banks in the region.
To accommodate its growth into additional markets, including the Upstate of South Carolina, and to better communicate its values, Macon Bank changed its name to Entegra Bank effective Oct. 1, 2015.
Roger Plemens, president and chief executive officer of Entegra, said the combination of Entegra and Oldtown will allow for selective expansion into contiguous markets.
The company will be seek acquisition opportunities with reasonable earn back periods that are accretive to earnings and return on equity, he said.
“We see Oldtown as a natural complement to our existing footprint in Western North Carolina and Upstate South Carolina and look forward to welcoming our new customers, employees, and community friends. Oldtown customers can expect to continue to be served by the same friendly, knowledgeable banking professionals they have come to rely on over the years,” he said.
Charles Umberger, president and chief executive officer of Oldtown, said the bank is delighted to have found a strategic partner that shares a similar culture and community approach to banking.
“Macon Bank has served Western North Carolina well for 93 years, and we are excited to be joining forces with Entegra as we grow together to serve even more communities throughout our region and the Upstate,” Umberger said. “This combination will provide our customers with an enhanced set of products and much expanded branch network while still receiving a high standard of customer service.”
The transaction, which is expected to close in the first quarter of 2016, has been unanimously approved by the board of directors of both companies and is subject to customary closing conditions, including regulatory approvals, and approval from the shareholders of Oldtown.
Entegra expects the transaction to be significantly accretive to earnings per share and return on equity with an estimated earn back period for book value dilution of approximately 2.5 years.