Entegra Financial in Franklin, N.C., has agreed to buy Chattahoochee Bank of Georgia in Gainesville.

The $1.4 billion-asset Entegra said in a press release Tuesday that it will pay $34.9 million in cash and stock for the $197 million-asset Chattahoochee. The deal, which is expected to close in the fourth quarter, prices Chattahoochee at 140% of its tangible book value.

Chattahoochee has a branch in Gainesville and a loan production office in Duluth, Ga. It has $155 million in loans and $166 million in deposits.

“We are excited to partner with Chattahoochee as we continue to expand our existing footprint in northern Georgia,” Roger Plemens, Entegra’s president and CEO, said in the release. “Chattahoochee has a proven track record of strong loan and deposit growth that will complement our strategy of … diversifying into high-growth markets.”

Entegra said it expects the deal to be more than 15% accretive to its 2018 earnings, excluding merger-related expenses. It should take 4.5 years to earn back any dilution to Entegra’s tangible book value.

Entegra was advised by Sandler O’Neill and Brooks, Pierce, McLendon, Humphrey & Leonard. Chattahoochee was advised by Banks Street Partners and Nelson Mullins Riley & Scarborough.

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