New partner joins HomeTrust Banking Partnership

Published 1:26 am Friday, November 13, 2009

The HomeTrust Banking Partnership announced 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.

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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 Banks 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 Partnerships core capital ratio from a strong 10 percent of assets to an even stronger nearly 12 percent of assets. With over $180 million of capital, HomeTrust will have over 200 percent 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 its 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 governments TARP bailout funds. The combined Partnerships 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 todays 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 its a great fit.

About HomeTrust Bank

HomeTrust Bank is an FDIC-insured, mutually owned bank with an 83-year history of serving families and businesses in Western North Carolina. HomeTrust Bank ( ) along with Tryon Federal Bank, Shelby Savings Bank, Home Savings Bank and Rutherford County Bank, comprise the HomeTrust Banking Partnership. HomeTrust Banking Partnership has assets of over $1.4 billion and is the largest mutual bank headquartered in North Carolina and the 2nd largest in the Southeast.

With the addition of Industrial Federal Savings Bank, the HomeTrust Banking Partnership will have 19 offices: Industrial Federal Savings Bank in Davidson County (3); HomeTrust Bank in Haywood County (2), Buncombe County (5), and Henderson County (1), Home Savings Bank in Rockingham County (3), Shelby Savings Bank in Cleveland County (2), Tryon Federal Bank in Polk County (2), and Rutherford County Bank (1). The Partnerships combined assets will exceed $1.6 billion, making it the 13th largest bank headquartered in North Carolina.