HomeTrust Bancshares in Asheville, N.C., will enter Atlanta with an agreement to buy Quantum Capital in Suwanee, Ga.
The $3.5 billion-asset HomeTrust said in a press release Monday that it will pay $67.6 million in cash and stock for the parent of the $660 million-asset Quantum National Bank. The deal, which is expected to close in the first quarter, priced Quantum at 153% of its tangible book value.
Quantum has three branches and focuses on small business lending.
“We are excited to be partnering with one of the highest-performing banks in Georgia and throughout the Southeast,” C. Hunter Westbrook, HomeTrust’s president and chief operating officer, said in the release.
“Quantum’s strong team of experienced business bankers specializing in the origination of SBA loans aligns perfectly with our strategic initiatives to expand our fee-based businesses and grow our commercial deposit base,” Westbrook added. “Atlanta is one of the most dynamic markets in the country, which is perfectly suited for our branch-lite expansion strategy.”
Narasimhulu Neelagaru, Quantum’s chairman, will join HomeTrust’s board. Bryan Cohen, CEO of Quantum National Bank, will serve as HomeTrust’s Georgia market president.
HomeTrust said it expects the merger to be more than 20% accretive to earnings per share once cost savings are fully achieved in early 2024. It should take a little more than two years for HomeTrust to earn back as estimated 7.5% dilution to its tangible book value.
HomeTrust plans to cut 24% of Quantum’s annual noninterest expenses. The company expects to incur $6.1 million of merger-related expenses.
Raymond James and Silver Freedman, Taff & Tiernan advised HomeTrust. Piper Sandler and Hunton Andrews Kurth advised Quantum.