Entegra Bank, the wholly-owned subsidiary of Entegra Financial Corp., 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.