ASHEVILLE – HomeTrust Bancshares has agreed to acquire Blue Ridge Bankshares in an all-stock transaction valued at approximately $448.1 million, a proposed combination that would expand the Asheville-based bank company in Virginia.

The companies signed the definitive merger agreement Aug. 16 and announced it Aug. 17. Blue Ridge shareholders would receive 0.086 of a HomeTrust common share for each Blue Ridge share, plus cash instead of fractional shares.

Using HomeTrust’s five-day volume-weighted average price of about $49.82 on Aug. 14, the companies valued the consideration at $4.28 per Blue Ridge share. The value can change with HomeTrust’s stock price before closing.

The combined commercial bank would have more than $7 billion in assets and more than 60 locations across the Southeast, according to the companies. HomeTrust reported $4.4 billion in assets as of June 30 and operates more than 30 locations in North Carolina, South Carolina, eastern Tennessee, southwestern Virginia and Georgia.

C. Hunter Westbrook, HomeTrust’s president and CEO, said the proposed deal would add Blue Ridge’s deposit base, commercial loan portfolio and Virginia relationships to HomeTrust’s regional expansion strategy. Harry Golliday, Blue Ridge’s interim president and CEO, said HomeTrust would bring greater scale and resources to Blue Ridge customers and employees.

HomeTrust shareholders are expected to own about 65% of the combined company after closing, while Blue Ridge shareholders would own about 35%. Two mutually agreed Blue Ridge directors would join the boards of HomeTrust and HomeTrust Bank; the companies have not named them.

Both boards unanimously approved the transaction. It remains subject to approval by Blue Ridge shareholders, approval of the HomeTrust share issuance by HomeTrust stockholders, regulatory approvals and other customary closing conditions. The companies expect to close early in the first quarter of 2027.

The agreement includes an $18 million termination fee that could be payable by either company in specified circumstances. The companies did not announce job additions, reductions or a branch-integration schedule.

Sources

HomeTrust Bank: HomeTrust and Blue Ridge announce definitive merger agreement

U.S. Securities and Exchange Commission: HomeTrust Bancshares Form 8-K

U.S. Securities and Exchange Commission: Blue Ridge Bankshares Form 8-K

Blue Ridge Bank: customer announcement about the proposed merger

Image credit: Official company logos: HomeTrust Bank and Blue Ridge Bank.