A merger between Macon County-based Entegra Bank and First-Citizens Bank is moving forward, but under the condition that Entegra will sell off three of its branches in Western North Carolina.

After announcing in January that Franklin-based Entegra Bank would be bought out by SmartFinancial Inc. out of Knoxville, the deal is being called off and Entegra now has plans to merge with Raleigh-based First Citizens Bank instead. 

Entegra Bank, which has locations throughout Western North Carolina, will soon merge with SmartFinancial, Inc., the parent company of SmartBank based in Knoxville, Tennessee. 

Old Town Bank shareholders overwhelmingly approved the sale of the start-up bank headquartered in Waynesville last week, ending its nine-year run as a small independent local bank in light of the changing landscape facing financial institutions in the post-recession world.