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Louisiana Bancorp will receive $24.25 per share
Home Bancorp, Inc. (Nasdaq:HBCP), the holding company of the 106-year-old Home Bank, N.A., and Louisiana Bancorp, Inc. (Nasdaq:LABC), the holding company of the 105-year-old Bank of New Orleans, jointly announced today the signing of a definitive agreement under which Home Bancorp will acquire Louisiana Bancorp for an aggregate deal value of $74.5 million.
Under the terms of the agreement, shareholders of Louisiana Bancorp will receive $24.25 per share in cash upon completion of the merger.
BNO currently operates four branches in the Greater New Orleans area. As of March 31, 2015, Louisiana Bancorp had assets of $331 million, $275 million in loans and $201 million in deposits. The combined company will have assets of approximately $1.5 billion, $1.2 billion in loans and $1.2 billion in deposits. Under the terms of the agreement, BNO will be merged with and into Home Bank promptly following the completion of the holding company merger.
“As a native of New Orleans, it gives me great pleasure to further Home Bank’s investment in and commitment to my hometown through the merger of these two 100-year-old institutions,” said John W. Bordelon, President and Chief Executive Officer of Home Bancorp. “Bank of New Orleans has an exceptional customer base. We are confident the enhanced products and services we offer will allow us to deepen those valued relationships.”
“I’ve admired the way Home Bank does business for many years,” said Lawrence J. LeBon, III, President and Chief Executive Officer of Louisiana Bancorp. “They treat their customers and employees the way we always have – like family. This merger will help us improve the customer experience, and it provides a great return for our investors.”
The merger agreement was unanimously approved by the boards of directors of both companies. The transaction is expected to close in the fourth quarter of 2015, subject to customary closing conditions, including regulatory approvals and Louisiana Bancorp shareholder approval.
Home Bancorp anticipates this transaction will be accretive to earnings per share in the first full year of combined operations and accretive to tangible book value per share within approximately 3.5 years of closing. Following the merger, Home Bank’s capital position is expected to remain strong with leverage and total risk-based capital ratios above 8.6% and 12.7%, respectively. Home Bancorp does not anticipate a need for additional capital to complete the transaction.
Raymond James & Associates, Inc. acted as financial advisor to Home Bancorp and Silver, Freedman, Taff & Tiernan LLP acted as its legal advisor in the transaction. Sandler O’Neill & Partners L.P. acted as financial advisor to Louisiana Bancorp and Phelps Dunbar, LLP acted as its legal advisor in the transaction.
