HomeTrust Bancshares in Asheville, N.C., is beefing up in Tennessee with a deal to acquire TriSummit Bancorp in Kingsport.

The $2.7 billion-asset HomeTrust Bancshares said in a press release Wednesday that it would pay $31.8 million for the $354 million-asset TriSummit, which has five branches in Tennessee and one in Virginia. The acquisition would be HomeTrust's second in Tennessee since 2014, when it bought Jefferson Federal Bank in Morristown.

The deal values the nine-year-old TriSummit at $8.80 per share, or 121% of its tangible book value. Its shareholders would receive half of that amount in cash and the other half in HomeTrust stock. Excluding one-time merger charges, the transaction is expected to be accretive to HomeTrust's earnings per share by about 8% next year and 30% in 2018.

The deal is expected to close in early 2017.

Keefe, Bruyette & Woods served as financial adviser to HomeTrust and Silver, Freedman, Taff, & Tiernan LLP was its legal counsel. Banks Street Partners LLC and Butler Snow LLP advised TriSummit.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.