North Carolina’s HomeTrust has agreed to buy Virginia-based Blue Ridge Bankshares in an all-share deal worth about $448.1m.
The transaction would extend HomeTrust’s presence into Virginia.
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The merger would form a commercial bank with more than $7bn in assets and over 60 branches and offices across the Southeast.
Under the agreed terms, Blue Ridge investors will receive 0.086 HomeTrust common shares for each share held.
After the transaction is completed, existing HomeTrust investors are expected to hold about 65% of the combined group, while Blue Ridge investors are set to own roughly 35%.
HomeTrust CEO and president C. Hunter Westbrook said: “We are thrilled about the proposed combination with Blue Ridge and welcoming their team and customers to HomeTrust. This represents a compelling opportunity to further expand our presence in the attractive Virginia market and accelerate our growth strategy.
“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 are due to join the boards of HomeTrust and HomeTrust Bank.
The companies expect the deal to complete in the early part of the first quarter of 2027.
HomeTrust said the acquisition is projected to add about 30% to earnings per share, assuming planned cost reductions are fully in place from 2028.
It also estimates tangible book value per share to be diluted by about 8.3% when the deal closes, with an earn-back period of around 3.25 years.
Both boards have approved the transaction unanimously.
The deal still requires regulatory clearance, approval from shareholders of both companies, and satisfaction of other standard closing conditions.
Blue Ridge interim president and CEO Harry Golliday said: “Blue Ridge has successfully completed a clean-up of legacy challenges and repositioned itself for profitability and growth. HomeTrust’s own transformation from a legacy thrift into a high-performing commercial bank provides a proven roadmap, product suite and talent base to accelerate Blue Ridge’s next chapter of success.
“I am excited for our customers to become part of the HomeTrust organization, which is dedicated to being a great regional community bank, and for our associates to belong to the strategy of being a ‘best place to work.'”
