First-Citizens Bank & Trust Company (First Citizens Bank),
Entegra Bank and Select Bank & Trust Company (Select Bank)
announced today that Select Bank has entered into an agreement to
buy three Entegra Bank branches in Western North Carolina.
These branches are being divested as required under agreements
with the U.S. Department of Justice, Antitrust Division, and the
Federal Reserve in connection with Entegra Bank’s proposed merger
into First Citizens Bank.
Select Bank, headquartered in Dunn, N.C., has agreed to buy
Entegra Bank’s Highlands (473 Carolina Way, Highlands, N.C.), Sylva
(498 East Main, Sylva, N.C.) and Holly Springs (30 Hyatt Road,
Franklin, N.C.) branches. Select Bank was founded in 2000 and
offers a broad range of retail, small business and commercial
banking products and services at 18 locations in North Carolina,
South Carolina and Virginia.
As part of the agreement, Select Bank will assume approximately
$180 million in deposits and will purchase approximately $110
million in loans.
“Today’s agreement with Select Bank represents a step forward in
the merger with Entegra. Select Bank is known for its longstanding
commitment to customer service. We’ll work together to ensure a
smooth transition,” said Frank Holding, chairman and chief
executive officer of First Citizens Bank.
“We’re excited about extending our presence to these Western
North Carolina communities and look forward to welcoming our new
customers and employees to our bank in the days ahead,” said
William L. “Bill” Hedgepeth II, president and chief executive
officer of Select Bank.
“Select Bank shares the same values and philosophies of our two
companies. We believe Select Bank will be a great fit for these
customers and communities,” said Roger Plemens, president and chief
executive officer of Entegra Bank.
In August 2019, Entegra Financial Corp. (Entegra) shareholders
approved the previously announced proposal by First Citizens
BancShares, Inc. (First Citizens) and its wholly-owned subsidiary,
First Citizens Bank, to acquire (by merger) Entegra and its
wholly-owned subsidiary, Entegra Bank. Entegra Bank currently
operates 18 branches in Western North Carolina, Upstate South
Carolina and North Georgia.
On Dec. 2, 2019, First Citizens, First Citizens Bank, Entegra
and Entegra Bank entered into a letter of agreement with the
Department of Justice to agree to sell the three Western North
Carolina branches as part of the two companies’ proposed
merger.
Completion of the proposed acquisition remains subject to the
satisfaction or waiver of other closing conditions, and is expected
to occur on or about Dec. 31, 2019.
Customers of Entegra Bank should bank as they normally do at
their existing branches.
Once the merger of First Citizens Bank and Entegra Bank takes
place, Entegra Bank branch offices will initially operate as
Entegra Bank, a division of First Citizens Bank. Customer accounts
at 15 Entegra Bank branch locations will be converted to First
Citizens Bank’s systems and operations later in 2020.
Also, on the date of merger, First Citizens Bank will
temporarily acquire the three divested branches in the merger with
Entegra Bank, but the accounts ultimately will not be converted to
First Citizens Bank’s systems. Select Bank will acquire and
convert customer accounts at the three divested Entegra Bank
locations.
About First Citizens Bank
Founded in 1898 and headquartered in Raleigh, N.C., First
Citizens Bank serves customers at more than 550 branches in 19
states. First Citizens Bank is a wholly owned subsidiary of First
Citizens BancShares, Inc. (Nasdaq: FCNCA), which has more than $37
billion in assets. For more information, call toll free 1.888.FC
DIRECT (1.888.323.4732) or visit www.firstcitizens.com. First
Citizens Bank. Forever First®.
About Entegra Bank
Entegra Financial Corp. is the holding company of Entegra Bank.
Entegra's common stock trades on the Nasdaq Global Market under the
ticker symbol “ENFC.” Entegra Bank operates a total of 18 branches
located throughout the Western North Carolina counties of Cherokee,
Haywood, Henderson, Jackson, Macon, Polk and Transylvania; the
Upstate South Carolina counties of Anderson, Greenville and
Spartanburg; and the North Georgia counties of Pickens and Hall.
The bank also operates loan production offices in Asheville, N.C.
and Clemson, S.C. For further information, visit the bank's
website: www.entegrabank.com.
About Select Bank & Trust
Select Bank has 18 branch offices located in Burlington,
Charlotte, Clinton, Dunn, Elizabeth City, Fayetteville, Goldsboro,
Greenville, Holly Springs, Leland, Lillington, Lumberton, Morehead
City, Raleigh, and Wilmington, North Carolina as well as Blacksburg
and Rock Hill, South Carolina, and Virginia Beach, Virginia. Select
Bank is a wholly-owned subsidiary of Select Bancorp, Inc. (Select)
(NASDAQ: SLCT), a North Carolina corporation and a bank holding
company registered with the Board of Governors of the Federal
Reserve System. For more information, visit
www.SelectBank.com.
Cautionary Notes Regarding Forward-Looking
Statements
Certain of the statements made in this Press Release may
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The words “expect,”
“anticipate,” “intend,” “plan,” “believe,” “seek” and “estimate,”
and similar expressions, are intended to identify such
forward-looking statements, but other statements not based on
historical information may also be considered forward-looking.
Forward-looking statements include statements about the benefits to
Entegra or First Citizens and their bank subsidiaries of the
proposed merger (the Merger), Entegra’s and First Citizens’ future
financial and operating results, their respective plans, objectives
and intentions, and when the Merger will be completed.
Forward-looking statements also include statements about the
benefits to Select Bank of the acquisition of three Entegra Bank
branches (the Branch Acquisition) and when the Branch Acquisition
will be completed. All forward-looking statements are subject to
known and unknown risks, uncertainties, and other factors that may
cause the actual results, performance or achievements to differ
materially from any results, performance or achievements expressed
or implied by such forward-looking statements, including, among
others, (1) disruption from the Merger, or recently completed
mergers, and the Branch Acquisition with customer, supplier or
employee relationships, (2) uncertainties as to the timing of the
Merger and Branch Acquisition, (3) the risk that the proposed
transactions may not be completed in a timely manner or at all, (4)
the occurrence of any event, change or other circumstances that
could give rise to the termination of the merger agreement related
to the Merger, including under circumstances that would require a
party to pay a termination fee, (5) the failure to obtain or delays
in the receipt of necessary regulatory approvals that must be
received before the Merger may be completed, (6) the
possibility that the amount of the costs, fees, expenses and
charges related to the Merger or the Branch Acquisition may be
greater than anticipated, including as a result of unexpected or
unknown factors, events or liabilities, (7) the failure or
delay of the other conditions to the consummation of the Merger to
be satisfied or waived, (8) reputational risk and the reaction of
the parties’ customers to the Merger and the Branch Acquisition,
(9) the risk of potential litigation or regulatory action related
to the Merger, (10) the risk that the cost savings and any revenue
synergies from the Merger may not be realized or take longer than
anticipated to be realized, (11) general competitive,
economic, political and market conditions, and (12) difficulties
experienced in the integration of the businesses. Additional
factors which could affect the forward-looking statements can be
found in reports filed with the Securities and Exchange Commission
(SEC) by First Citizens, Entegra and Select and available on the
SEC’s website at http://www.sec.gov. Except as may be required by
applicable law, none of First Citizens, Entegra or Select undertake
any obligation to update or revise any forward-looking statements
contained in this communication, which speak only as of the date
hereof, whether as a result of new information, future events or
otherwise.
Contacts: |
Mark Jeffries910.892.7080Select Bank & Trust |
Barbara Thompson919.716.2716First Citizens Bank |
Roger Plemens828.524.7000Entegra Financial Corp. |
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