North Carolina-based Entegra Financial Corp. and Tennessee-based SmartFinancial Inc. signed a definitive merger agreement that will create an approximate $4 billion-asset bank holding company with 47 branches across the Southeast United States.

Knoxville-based SmartFinancial has approximately $2.3 billion in total assets, partly because it acquired Foothills Bancorp Inc. on Nov. 1. Franklin, North Carolina-based Entegra had approximately $1.7 billion in total assets as of Sept. 30.

“This is a historic milestone for both companies, one which we believe lays the foundation for the Southeast’s next great community banking franchise,” said SmartFinancial President and CEO Billy Carroll.

The combined company’s headquarters will be in Knoxville, but a significant portion of operations will be based in Franklin. Bank branches are located in Tennessee, North Carolina, Alabama, Georgia, South Carolina and Florida.

Entegra President and CEO Roger D. Plemens will likely join the combined bank as president of the Carolinas. Entegra CFO David Bright and COO Ryan Scaggs are expected to assume the same roles with the combined bank.

“We are thrilled to be joining forces with the SmartBank team and to combine these two strong, growing institutions,” said Plemens in a statement. “We believe this is going to be an outstanding combination for our shareholders, customers and employees and the communities we serve.”

The transaction is expected to close mid-year 2019, subject to customary closing conditions, including the approval of both companies’ shareholders and the receipt of all regulatory approvals.

Under the terms of the merger agreement, each share of Entegra common stock will be converted to the right to 1.215 shares of SmartFinancial common stock. The transaction is valued at approximately $22.36 per share of Entegra common stock.

On Tuesday, Entegra stock closed at $23.22 and SmartFinancial stock closed at $18.40.

The filing can be found here