Entegra Financial Corp., based in Franklin, North Carolina, has acquired Chattahoochee National Bank of Georgia, a banking institution founded in Gainesville in 2008.
The announcement of the acquisition came in a press release confirming the "signing of a definitive agreement pursuant to which Entegra will purchase Chattahoochee for $14.75 per share or 1.4 times March 31, 2017 book value through a combination of cash and stock valued at approximately $34.9 million."
In addition to its one branch in Gainesville, Chattahoochee also operates a loan production office in Duluth. The deal will add approximately $197 million in assets, $155 million in loans and $166 million in deposits to Entegra Bank, according to press information.
“We are excited to partner with Chattahoochee as we continue to expand our existing footprint in northern Georgia. Chattahoochee has a proven track record of strong loan and deposit growth that will complement our strategy of building long-term franchise value by diversifying into high growth markets. With an unemployment rate of 3.8%, Gainesville is among the 50 fastest growing metro areas in the U.S. and home to more than 300 manufacturing and processing companies. Chattahoochee is one of the premier commercial banks in Gainesville and brings Entegra a talented team of six lenders with deep commercial experience," said Roger Plemens, President and Chief Executive Officer of Entegra.
Jody Lail, President and Chief Executive Officer of Chattahoochee also commented on the agreement.
“We are excited to partner with Entegra in continuing to grow our commercial banking presence in our northeast Georgia market. Entegra provides additional capital strength to allow our commercial banking team to greatly expand lending and cash management services to both our existing customer base and our rapidly expanding business community. We are also pleased that Entegra will bring additional services for our consumer customers, including residential mortgage and investments.”
The transaction is expected to close in the fourth quarter of 2017 and has been unanimously approved by the Board of Directors of both companies. The arrangement is subject to customary closing conditions, including regulatory approvals and approval by the shareholders of Chattahoochee.
