Louisiana-based Home Bancorp, the parent of Home Bank, has agreed to acquire local lender St. Martin Bancshares, the parent of St. Martin Bank & Trust Company, in a deal worth $96.1m.
St. Martin Bancshares’ shareholders will be entitled to receive 9.2839 shares of Home Bancorp common stock for each share held.
St. Martin Bancshares president Paul Durand will take up an executive business development role in the merged entity, which will have around $2.2bn in assets, $1.7bn in loans and $1.8bn in deposits.
Moreover, two members of St. Martin Bancshares’ board of directors will join Home Bancorp and Home Bank board as part of the deal.
The deal has already received the go-ahead from both companies’ boards of directors and is expected to be completed in the fourth quarter of 2017 or first quarter of 2018, subject to shareholders and regulatory approvals.
Home Bancorp president and CEO John Bordelon said: “This Merger is a win-win for both St. Martin Bank and Home Bank customers, as each will enjoy more locations and enhanced products to serve them.
“Our partnership with St. Martin Bancshares is also a significant momentum builder for our shareholders, as we expect greater than 20% EPS accretion as a result of combining our companies after expected efficiencies are realized.”