HomeTrust Bancshares in Asheville, N.C., has agreed to buy Blue Ridge Bankshares in Charlottesville, Va.
The $4.4 billion-asset HomeTrust said in a press release that it will pay $448.1 million in stock for the $2.3 billion-asset Blue Ridge. The deal, which is expected to close in the first quarter, priced Blue Ridge at 140% of its tangible value.
“This represents a compelling opportunity to further expand our presence in the attractive Virginia market and accelerate our growth strategy,” C. Hunter Westbrook, HomeTrust’s president and CEO, said in the release. “Blue Ridge brings a strong deposit franchise, a growing commercial loan portfolio, and deep local relationships that complement our existing footprint and capabilities.”
Two Blue Ridge directors will join HomeTrust’s board.
The transaction is expected to be 30% accretive to HomeTrust’s 2028 earnings per share. It should take more than three years for HomeTrust to earn back 8.3% dilution to its tangible book value.
HomeTrust plans to cut 45% of Blue Ridge’s annual operating expenses. It expects to incur $32.8 million of pretax merger-related expenses.