Entregra Financial in Franklin, N.C., has filed to sell nearly $50 million in common stock as part of it planned conversion to a stock company.
The $785 million-asset company said in its regulatory filing that it will sell nearly 5 million shares of stock, at $10 each, as part of the planned conversion of Macon Bancorp. Shares will be listed under the stock symbol ENFC.
The company said it plans to contribute up to 85% of its net proceeds to Macon Bank to strengthen the unit's capital position. The company would need approval from the Federal Reserve Board, due to a written agreement, to use net proceeds to repurchase stock or pay dividends on its common stock or trust preferred securities.
Entegra also has a consent order from the Federal Deposit Insurance Corp. and the state banking regulator in North Carolina. With that in mind, the company said it could use net proceeds to fund new loans, open or buy branches, buy investment securities or reduce a portion of its borrowings, among other things.
The company lost $415,000 last year after earning $933,000 a year earlier. The difference was higher noninterest expenses and a sharp decline in securities gains last year.
