HomeTrust Announces the Sale of Knoxville Branches to Apex Bank
Rhea-AI Summary
HomeTrust Bancshares (NASDAQ: HTBI) has announced a definitive agreement to sell its two Knoxville, Tennessee branches to Apex Bank. The transaction includes the physical locations, fixed assets, and approximately $42 million in customer deposit accounts, while HomeTrust will retain the associated loan accounts.
The strategic move aims to tighten HomeTrust's geographic footprint, enhance branch efficiencies, and reallocate capital to support long-term growth in other core markets. For Apex Bank, this acquisition represents an expansion of their local presence in Knoxville.
The transaction is expected to close in the second quarter of 2025, subject to regulatory approvals and customary closing conditions. Piper Sandler & Co. served as HomeTrust's financial advisor, with Silver, Freedman Taff & Tiernan LLP providing legal counsel, while Baker Donelson represented Apex.
Positive
- Strategic divestment to improve operational efficiency
- Retention of loan accounts while transferring $42M in deposit liabilities
- Capital reallocation opportunity for core market growth
Negative
- Reduction in deposit base by approximately $42 million
- Loss of physical presence in Knoxville market
Insights
The announced branch sale by HomeTrust Bancshares represents a calculated strategic move in the evolving regional banking landscape. The
Several key strategic implications emerge from this transaction:
- By retaining the loan portfolio while divesting the physical locations and deposits, HomeTrust maintains its earning assets while reducing operational overhead and deposit servicing costs
- The geographic consolidation aligns with the industry-wide trend of regional banks optimizing their footprint to enhance operational efficiency and capital allocation
- The transaction structure suggests minimal earnings dilution, as the retained loan portfolio continues to generate interest income while reducing fixed costs associated with branch operations
The regulatory approval process appears straightforward given the transaction's modest size and straightforward nature. The choice of Apex Bank as the acquirer, with its local market presence and community banking focus, should facilitate a smooth transition for customers and increase the likelihood of regulatory approval.
For HomeTrust, this strategic realignment positions the bank to strengthen its presence in core markets while potentially improving its efficiency ratio and return on equity metrics. The retention of loans while transferring deposits also suggests confidence in the credit quality of the Knoxville portfolio and the ability to fund these assets through other sources.
ASHEVILLE, N.C. and CAMDEN, Tenn., Jan. 28, 2025 (GLOBE NEWSWIRE) -- HomeTrust Bancshares, Inc. (NASDAQ: HTBI) (“Company”), the holding company of HomeTrust Bank (“HomeTrust”), and Apex Bank (“Apex”) today announced that HomeTrust and Apex have entered into a definitive purchase and assumption agreement (the “agreement”) under which Apex will acquire HomeTrust’s two branches in Knoxville, Tennessee. Under the terms of the agreement, Apex will acquire the physical locations, related fixed assets, and substantially all the customer deposit accounts which are currently estimated at
“This transaction aligns with our strategic plan to tighten our geographic footprint, improve our branch efficiencies, and allocate our capital to support our long-term growth in other core markets,” said Hunter Westbrook, HomeTrust’s President and Chief Executive Officer.
Matt Daniels, President and CEO of Apex Bank said, “Being locally owned and operated, we are excited to expand our footprint in Knoxville. This investment will allow us to better serve customers and support the community. We will continue to look for opportunities to expand our presence in the area and remain committed to providing personalized financial solutions that help individuals and businesses thrive.”
The proposed transaction, which is subject to customary closing conditions, including approval by applicable regulatory authorities, is currently anticipated to close in the second quarter of 2025.
Piper Sandler & Co. served as HomeTrust’s financial advisor for the transaction, while Silver, Freedman Taff & Tiernan LLP provided legal counsel. Baker Donelson provided legal counsel for Apex.
About HomeTrust Bancshares, Inc.
HomeTrust Bancshares, Inc. is the holding company for HomeTrust Bank. As of December 31, 2024, the Company had assets of
About Apex Bank
Apex Bank was founded in 1931 and is headquartered in Knoxville, Tennessee. Apex Bank has experienced tremendous growth since 2008, increasing total assets from
Forward-Looking Statements
This press release may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but instead are based on certain assumptions including statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, assumptions and statements about future economic performance and projections of financial items. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated or implied by forward-looking statements. The factors that could result in material differentiation include, but are not limited to, the impact of bank failures or adverse developments involving other banks and related negative press about the banking industry in general on investor and depositor sentiment; the remaining effects of the COVID-19 pandemic on general economic and financial market conditions and on public health, both nationally and in the Company’s market areas; natural disasters, including the effects of Hurricane Helene; expected revenues, cost savings, synergies and other benefits from merger and acquisition activities might not be realized to the extent anticipated, within the anticipated time frames, or at all, costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected, and goodwill impairment charges might be incurred; increased competitive pressures among financial services companies; changes in the interest rate environment; changes in general economic conditions, both nationally and in our market areas; legislative and regulatory changes; and the effects of inflation, a potential recession, and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents filed with or furnished to the Securities and Exchange Commission – which are available on the Company’s website at www.htb.com and on the SEC’s website at www.sec.gov. Any of the forward-looking statements that the Company makes in this press release or in the documents the Company files with or furnishes to the SEC are based upon management’s beliefs and assumptions at the time they are made and may turn out to be wrong because of inaccurate assumptions, the factors described above or other factors that management cannot foresee. The Company does not undertake, and specifically disclaims any obligation, to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
FAQ
How many branches is HomeTrust Bancshares (HTBI) selling to Apex Bank?
What is the deposit value of the HTBI branches being sold to Apex Bank?
When is the HomeTrust-Apex branch sale expected to close?
Will HomeTrust retain the loans from the Knoxville branches being sold?
What is the strategic rationale for HTBI's sale of Knoxville branches?
