Home Bancorp acquires local St. Martin Bank

Home Bancorp Inc., the holding company of the 109-year-old Home Bank, and St. Martin Bancshares Inc., the holding company of the 83-year-old St. Martin Bank & Trust Co., jointly announced last week the signing of a definitive agreement under which Home Bancorp will acquire St. Martin Bancshares (SMB).
Under the terms of the agreement, SMB will be merged with and into Home Bancorp and St. Martin Bank will be merged with and into Home Bank. Upon consummation of the merger, shareholders of SMB will receive 9.2839 shares of Home Bancorp common stock for each share of SMB common stock.
In addition, immediately prior to the closing of the merger, SMB will pay a special cash distribution of $94 per share to its shareholders. Based on the 10 day average closing price of Home Bancorp’s common stock through Aug. 22, ($39.15 per share), the stock consideration plus the special distribution has a combined value of $457.47 per share to holders of SMB common stock, or $96.1 million in the aggregate.
St. Martin Bancshares operates 12 branch locations in Acadia, Jefferson Davis, Lafayette and St. Martin parishes. As of June 30, SMB had assets of $597.3 million, $455.5 million in loans and $508.7 million in deposits.
The combined company will have assets of approximately $2.2 billion, $1.7 billion in loans and $1.8 billion in deposits.
“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,” said John W. Bordelon, president and CEO of Home Bancorp.”
“We have long admired the way Home Bank treats its customers and employees and serves our Acadiana community,” said Paul A. Durand, president of SMB. “St. Martin Bank has achieved great success over the years because its employees share Home’s commitment to serving our friends and neighbors. Our board felt this move was in the best interests of our stockholders, our employees and our customers.”
“Our board believes that this transaction represents an attractive return for our shareholders, providing immediate liquidity in the form of the $94 per share pre-closing cash distribution, as well as the opportunity for future growth through an ownership interest in the combined company,” said Guy M. Labbé, CEO of SMB.
Durand will remain active in the combined company on a part-time basis, serving customers in an executive business development role. In addition, two members of SMB’s current board of directors – not yet identified – will join the boards of Home Bancorp and Home Bank.
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 2017 or first quarter of 2018, subject to customary closing conditions, including regulatory approvals and shareholder approvals of both companies.
Following the merger, Home Bank’s capital position is expected to remain strong with leverage and total risk-based capital ratios of approximately 9.1 percent and 12.3 percent, respectively. No additional capital will be needed by Home Bancorp to complete the transaction.
Home Bancorp became the holding company for Home Bank in October 2008. Home Bank was originally organized in 1908 and is headquartered in Lafayette. It currently conducts business from 28 full-service banking locations in the Lafayette, Baton Rouge, New Orleans and Northshore (of Lake Pontchartrain) regions of South Louisiana and the Natchez and Vicksburg regions of Mississippi.
St. Martin Bancshares was organized in November 1984. Later that year, it became a one-bank holding company when it acquired all of the issued and outstanding shares of St. Martin Bank & Trust Co., a state chartered bank established in 1933 and headquartered in St. Martinville.