Another community bank takeover

Chalk up another deal in the "trade of a decade" after last week's agreement for HomeTrust Bancshares (HTBI) to buy Jefferson Bancshares (JFBI) for $4 per share in cash plus $4 of HomeTrust common stock.

The current regulatory and economic climate makes it about impossible for these smaller operations to grow earnings fast enough - activist investors have noticed and can be found all over the sector.

Jefferson is a typical specimen, with 10 branches, two limited service locations and just over $500M in assets. Hurt by the financial crisis, the nonperforming asset ratio climbed to nearly 5% in 2012, a number management had recently whittled down to 3.81%. Enter long-time bank activist investor Joseph Stillwell with more than 6% of the stock and threatening a board fight if a sale didn't happen soon.

Related ETF: QABA

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Comments (1)
  • rpassen
    , contributor
    Comments (2) | Send Message
    Anyone know the price to book ratio paid in the HTBI / JFBI deal?
    29 Jan 2014, 04:23 PM Reply Like
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