Mergers & Acquisitions

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Deal Overview

Buyer:
HomeTrust Bancshares, Inc.
Actual Acquirer:
HomeTrust Bank
Target:
Jefferson Bancshares, Inc.
Deal Type:
Bank & Thrift Company
Agreement Date:
1/22/2014
Announcement Date:
1/23/2014
Announced Deal Value ($ M):
51.16
Status:
Completed
Completion Date:
5/31/2014
Announced Deal Value Per Share ($ )
8.00

Consideration Breakout
Cash ($M) 25.5
Common Stock ($M) 25.7
Common Stock Issued 1,679,257

Deal Pricing Ratios

Announcement Completion
Price / Book (%) 98.5 97.3
Price / Tangible Book (%) 100.4 99.0
Price / Earnings (x) 26.7 25.9
Price / Deposits (%) 13.18 13.37
Price / Assets (%) 10.28 10.13
Tangible Book Premium/ Deposits (%) (0.42) (0.66)
Deal Terms
Description of Consideration

HomeTrust Bancshares Inc. paid $4.00 in cash and exchanged 0.2661 shares of its common stock for each of the outstanding share of Jefferson Bancshares Inc. HomeTrust Bancshares Inc. also assumed $10.31 million of trust preferred securities along with interest on them. HomeTrust Bancshares Inc. will enter Hamblen County, Tenn., with four branches to be ranked first with a 23.38% share of $870.59 million in total market deposits, will enter Knox County, Tenn., with two branches to be ranked No. 22 with a 0.34% share of $9.57 billion in total market deposits, will enter Sullivan County, Tenn., with two branches to be ranked eighth with a 2.28% share of $1.90 billion in total market deposits, and will enter Washington County, Tenn., with four branches to be ranked fifth with a 6.32% share of $1.93 billion in total market deposits.

Accounting Method Acquisition
In-State Transaction? No
Merger of Equals? No
Geographic Expansion? Market Expansion
Goodwill Generated ($ 000) 7,949
Estimated Cost Savings (%) 18.00
Estimated Cost Savings ($ 000) 2,789
Est. Restructuring Charges ($ 000) 3,567
Maximum Termination Fee ($ 000) 1,950
Minimum Termination Fee ($ 000) 0
Exchange Ratio (Common For Common) 0.266100
Exchange Ratio (Common For Preferred) NA
Exchange Ratio (Preferred For Common) NA
Exchange Ratio (Preferred For Preferred) NA
Lockup Agreement No
Strike Price ($ ) NA
% of Shares Outstanding NA
Shares Under Option NA
Core Deposit Intangibles ($ 000) 3,530
Deal Advisers
Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer Yes Sandler O'Neill & Partners LP
Seller Yes Keefe Bruyette & Woods Inc.
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Silver Freedman Taff & Tiernan
Seller Yes Kilpatrick Townsend & Stockton