Entegra Financial in Franklin, N.C., has agreed to buy two South Carolina branches from Arthur State Bank in Union, S.C.
The $919 million-asset Entegra will acquire branches in Anderson and Chesnee, S.C. The branches have a combined $42 million in deposits and $9 million in loans. Entegra will pay a 2.87% deposit premium.
The deal will give Entegra its first branches in South Carolina; Entegra will also open a branch later this year in Greenville, S.C.
Entegra converted from a mutual to a stock-owned bank in September. It was formerly named Macon Bank but decided to rename itself this year; it plans to rebrand all its branches to Entegra Bank by the end of next month
The deal in South Carolina would allow the $530 million-asset Arthur to return to a "well-capitalized" status without diluting shareholders, Carlisle Oxner, chief executive, said in a news release. Arthur would operate 18 branches after the sale.
Sandler O'Neill was financial adviser to Entegra, and Brooks, Pierce, McLendon, Humphrey & Leonard was legal counsel. FinPro Capital Advisors gave advice to Arthur, and Adams & Reese was legal counsel.