The HomeTrust Banking Partnership announced today that Industrial Federal Savings Bank of Lexington, NC will join the Partnership. Industrial Federal will be the sixth mutual bank to come together in this partnership; other banks include Shelby Savings Bank, Tryon Federal Bank, Home Savings Bank of Eden, Rutherford County Bank, and HomeTrust Bank of Asheville. Regulatory approval is expected by the end of the year and the Partnership is expected to be completed by January 31, 2010.
The HomeTrust Banking Partnership is a unique strategic alternative for mutual savings banks, where each partner maintains their identity while benefiting from the combined strength of all the partners. Industrial Federal Savings Bank’s name, all its employees, directors, and officers will remain unchanged. President and CEO Sid Biesecker and Director Craig Koontz will also serve on the HomeTrust banking Partnership Board of Directors.
“We are honored to have Industrial Federal join our partnership,” said Ed Broadwell, Chairman and CEO of HomeTrust Bank. “By combining our financial strengths, long term stability, and focus on personal, friendly customer service, we will continue to support full service hometown banking for generations to come.”
Dana Stonestreet, President and COO of HomeTrust Bank noted, “The strong capital of Industrial Federal will increase the HomeTrust Partnership’s core capital ratio from a strong 10% of assets to an even stronger nearly 12% of assets. With over $180 million of capital, HomeTrust will have over 200% of the core capital that regulators require to be well capitalized, which further strengthens our ability to serve the financial needs of our customers and communities.”
Stonestreet continued, “During these economically challenging times, all of our hometown partnership banks are seeing significant increases in new customers and new deposits. We believe it’s because customers are placing more value on long term relationships and caring customer service, provided by our financially strong hometown banks.”
Earlier this year, HomeTrust Bank announced they would NOT apply for the government’s TARP bailout funds. The combined Partnership’s strong capital position does not include TARP funds and represents more capital than any other bank in North Carolina between $1.0 and $2.0 billion in assets (excluding any TARP funds other banks may have received.)
By joining the HomeTrust Banking Partnership, Industrial Federal will be able to offer customers many new products and services such as online banking and bill pay, a full line of banking services for businesses, investment and retirement planning services, advanced technology, and an infrastructure that enhances their financial capabilities. In addition, Davidson County will continue to benefit from continued financial support.
Stonestreet explained that the HomeTrust Banking Partnership is all about each partners’ ability to better respond to all of the changes in financial services while better preserving the hometown values and culture we never want to change.
“With today’s constantly changing technology and regulatory environment, our partnership with HomeTrust will increase our strength and preserve the benefits of hometown banking. Through this partnership we will be better able to compete with the big banks and become the full service hometown bank of choice for Davidson County,” said Industrial Federal Savings Bank President and CEO Sid Biesecker. “All of the banks of the HomeTrust Banking Partnership share our hometown values and culture, so it’s a great fit.”
