HomeTrust Bancshares, Inc. the holding company of HomeTrust Bank, announces the signing of a definitive merger agreement (“Agreement”) whereby Quantum Capital Corp. (“Quantum”) will merge with HomeTrust in a stock and cash transaction valued at approximately $67.6 million (the “Transaction”).
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Quantum is the holding company of Quantum National Bank (“Bank”), a high-performing $660 million asset bank with three locations in the Atlanta metro area. Quantum currently operates as an S-Corporation and was founded in 1995 by current Chairman Dr. Narasimhulu Neelagaru (“Dr. Neel”), a retired cardiologist and internist. The Bank is focused on small business lending and is consistently ranked as one of Georgia’s most profitable banks. The Bank is a Small Business Administration (“SBA”) Preferred Lender, generating the third highest volume of SBA 7a loans in Georgia during 2021.
“We are excited to be partnering with one of the highest performing banks in Georgia and throughout the Southeast,” said C. Hunter Westbrook, President and Chief Operating Officer of HomeTrust. “Quantum’s strong team of experienced business bankers specializing in the origination of SBA loans aligns perfectly with our strategic initiatives to expand our fee-based businesses and grow our commercial deposit base. The addition of Quantum will catapult our financial performance and accelerate our goal of becoming a top performing bank. Further, Atlanta is one of the most dynamic markets in the country, which is perfectly suited for our branch-lite expansion strategy. Simply said, this transaction presents a unique opportunity for HomeTrust to expand our franchise and meaningfully enhance our profitability.”
Dr. Neel said, “We are excited to engage in this strategic combination with HomeTrust, a bank that shares our core values and culture. This merger will create meaningful opportunities for our employees to continue driving our exceptional financial performance while preserving our high-touch approach to serving our customers.”
Upon closing of the transaction, Dr. Neel will join the board of directors of HomeTrust and HomeTrust Bank. Bryan Cohen, the President of Quantum and Chief Executive Officer of Quantum National Bank, will serve as the Georgia Market President of HomeTrust Bank.
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Under the terms of the Agreement, HomeTrust will pay approximately $33.0 million of cash and issue 1,374,646 shares of HomeTrust common stock to the shareholders of Quantum. HomeTrust will file within forty-five (45) business days following completion of the Transaction a registration statement covering the resale of all common shares issued in the Transaction, subject to any limitations under Rule 144. Upon consummation of the Transaction, Quantum will be merged with and into HomeTrust and Quantum National Bank will be merged with and into HomeTrust Bank. Quantum National Bank’s branch offices will become branch offices of HomeTrust Bank.
HomeTrust expects the merger to be accretive to earnings per share by more than 20% once cost savings are fully achieved beginning in fiscal year 2024. HomeTrust estimates dilution to tangible book value per share of approximately 7.5% at closing of the transaction with an earn-back period of less than 2.5 years. The boards of directors of HomeTrust and Quantum have approved the proposed transaction, which is expected to occur in the first calendar quarter of 2023, subject to approval by bank regulatory authorities.
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