Tennessee

SmartFinancial lined up a compelling merger with Entegra. Then a bigger bank offered more money and a higher premium.

Entegra Financial, which had a deal to be sold to SmartFinancial, has instead agreed to be sold to First Citizens, which offered more money and will pay a breakup fee for the initial deal.

The Decatur, Tenn.-based institution earned just $60,000 last year as its net worth ratio declined.

The Tennessee company has set up a $3.5 million reserve associated with the unnamed borrower.

The company plans to sell its third-party origination channel to Renasant. It has also lined up a deal to sell its correspondent channel.

A growing number of financial institutions are piloting initiatives sharing space with coffee shops and other retailers in an effort to boost foot traffic.

Trying to keep pace with big banks that digitize as many processes as possible will undercut community banks’ strengths, according to speakers at this year’s ICBA convention.

More than 20 banks have been sold to credit unions. A prominent banking lawyer made the case at this year's ICBA convention that banks can become more aggressive acquirers.

Congress granted banks significant reg relief last year, but incoming ICBA Chairman Preston Kennedy says a lighter touch is needed with Bank Secrecy Act rules, loan-loss modeling and call reports.

Joseph Nowland will take over at the Jacksonville, Fla.-based institution after Gerri Sexsion retires later this month.