HomeTrust bets $448 Million on Virginia expansion.
The Asheville, N.C., bank plans to acquire Blue Ridge Bankshares in an all-stock deal that would create a more than $7 billion regional lender with over 60 locations across the Southeast.
HomeTrust Bancshares has agreed to acquire Virginia-based Blue Ridge Bankshares for about $448.1 million, a deal that would push the Asheville, N.C., company deeper into Virginia and create a regional commercial bank with more than $7 billion in assets.
The all-stock transaction would combine HomeTrust Bank’s existing footprint across North Carolina, South Carolina, East Tennessee, Southwest Virginia and Georgia with Blue Ridge’s presence in Virginia. The combined company is expected to have more than 60 locations, according to the companies.
For HomeTrust, the deal represents another step in its effort to build scale as a regional commercial bank. HomeTrust had $4.4 billion in assets as of June 30, while Blue Ridge brings what HomeTrust described as a strong deposit franchise, a growing commercial loan portfolio and established local relationships.
“We are thrilled about the proposed combination with Blue Ridge and welcoming their team and customers to HomeTrust,” C. Hunter Westbrook, HomeTrust’s president and chief executive, said.
The transaction values Blue Ridge shares at about $4.28 each, based on HomeTrust’s five-day volume-weighted average stock price of $49.82 on Aug. 14. Blue Ridge shareholders would receive 0.086 shares of HomeTrust common stock for each Blue Ridge share.
HomeTrust shareholders would own about 65% of the combined company after the transaction, with Blue Ridge shareholders holding the remaining 35%. Two Blue Ridge directors are expected to join HomeTrust’s board.
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The deal comes as Blue Ridge seeks to move beyond what its interim chief executive, Harry Golliday, described as legacy challenges.
“Blue Ridge has successfully completed a clean-up of legacy challenges and repositioned itself for profitability and growth,” Golliday said. He pointed to HomeTrust’s own transformation from a legacy thrift into a commercial bank as a model for Blue Ridge’s next phase.
The companies expect the transaction to close early in the first quarter of 2027, assuming regulatory and shareholder approvals and other closing conditions are met.
Financially, HomeTrust expects the combination to add about 30% to earnings per share once anticipated cost savings are fully achieved beginning in 2028. The bank estimates the deal will initially dilute tangible book value per share by about 8.3%, with that dilution earned back over roughly 3.25 years.
HomeTrust, based in Asheville, has more than 30 locations and $4.4 billion in assets. The bank has been expanding its commercial banking business as it seeks to build a larger regional franchise.
The Blue Ridge transaction would make the combined institution one of only three major-exchange-traded banks in the region with between $5 billion and $10 billion in assets, according to HomeTrust.
Blue Ridge, based in Virginia, provides retail and commercial banking, mortgage lending, investment and wealth management services, and personal and corporate trust services. Its sale to HomeTrust will be subject to review by regulators as well as votes by shareholders of both companies.
The boards of both companies unanimously approved the agreement.
For HomeTrust, the appeal is not simply size. Westbrook said Blue Ridge’s deposits and commercial lending business complement HomeTrust’s existing operations and would help create a larger regional banking franchise.
“This represents a compelling opportunity to further expand our presence in the attractive Virginia market and accelerate our growth strategy,” he said.
The transaction also illustrates the continuing importance of geographic expansion for regional banks looking to build scale without becoming national institutions.
HomeTrust’s existing operations already stretch across five states, and the Blue Ridge deal would give it a stronger position in Virginia while adding customers, deposits and commercial lending relationships.
The deal is not yet complete. Regulatory approvals and shareholder votes remain, leaving the companies with several months of work before the proposed combination can become reality.
“This represents a compelling opportunity to further expand our presence in the attractive Virginia market and accelerate our growth strategy.”
– C. Hunter Westbrook
President & CEO
HomeTrust Bancshares
Ken McCarthy is manager of marketing communications at Tyfone, where he monitors the credit union industry and contributes to conversations shaping its future. He previously covered credit unions and community banking for American Banker and S&P Global Market Intelligence. He holds a journalism degree from Point Park University and has more than 15 years of experience covering financial services. He is also the author of three literary fiction novels.
