ASHEVILLE, N.C., Jan. 03, 2017 (GLOBE NEWSWIRE) -- HomeTrust Bancshares, Inc. (NASDAQ:HTBI), the holding company for HomeTrust Bank, announced today the completion of its acquisition of TriSummit Bancorp, Inc. of Kingsport, Tennessee effective January 1, 2017. In connection with the acquisition, TriSummit Bank, the bank subsidiary of TriSummit, was merged into HomeTrust Bank. This in-market merger increases HomeTrust's total assets to approximately $3.1 billion. HomeTrust will continue to operate TriSummit's offices under the TriSummit Bank name until a system conversion is completed in March 2017.
"We are pleased to expand our existing presence in the Tri-Cities Tennessee market," said Dana Stonestreet, Chairman, President, and CEO of HomeTrust. “This highly accretive acquisition remains consistent with our long-term business strategy to grow both organically and through in-market acquisitions. With this transaction, we can leverage our existing infrastructure while reducing TriSummit’s current expenses to achieve an anticipated 8% and 30% accretion in earnings per share in fiscal 2017 and 2018, respectively.”
HomeTrust will issue an aggregate of approximately 767,000 shares of common stock and pay approximately $16.1 million in cash in the transaction. Under the terms of the merger agreement, each TriSummit shareholder will receive merger consideration consisting of $4.40 in cash plus .2099 shares of HomeTrust common stock for each share of TriSummit common or Series A preferred stock owned as of the effective date. This represents approximately $35.9 million of aggregate transaction consideration. In addition, TriSummit’s $7.1 million TARP preferred stock (all held by private shareholders) was redeemed in connection with the closing of the merger. TriSummit had consolidated assets of $350.9 million, deposits of $284.9 million, and shareholders' equity of $34.0 million at September 30, 2016.
R. Lynn Shipley Jr., former President and Chief Executive Officer of TriSummit and now President of HomeTrust Bank Tennessee, stated, “We are very excited to become part of HomeTrust Bank and look forward to providing the new and existing customers of TriSummit Bank with expanded products including additional treasury management services and enhanced residential mortgage lending.”
HomeTrust was advised in the transaction by Keefe, Bruyette and Woods as financial advisor and Silver, Freedman, Taff & Tiernan LLP as legal counsel. TriSummit was advised by Banks Street Partners, LLC as financial advisor and Butler Snow LLP as legal counsel.
About HomeTrust Bancshares, Inc.
HomeTrust Bancshares, Inc. is the holding company for HomeTrust Bank (the “Bank”). As of September 30, 2016, HomeTrust had assets of $2.8 billion. The Bank, founded in 1926, is a North Carolina state chartered, community-focused financial institution committed to providing value added relationship banking through 39 locations as well as online/mobile channels. Locations include: North Carolina (including the Asheville metropolitan area, the "Piedmont" region, Charlotte, and a loan production office in Raleigh), Upstate South Carolina (Greenville), East Tennessee (including Kingsport/Johnson City, Knoxville, and Morristown) and Southwest Virginia (including the Roanoke Valley). In 2016, the Bank celebrated its 90th Anniversary and nine decades of commitment to its customers, employees and surrounding communities. The Bank is the 6th largest community bank headquartered in North Carolina.
