Home Bancorp in Lafayette, La., has agreed to buy St. Martin Bancshares in St. Martinville, La.
The $1.6 billion-asset Home said in a press release late Wednesday that it will exchange its stock for shares in the $597 million-asset St. Martin. In addition, St. Martin will pay its shareholders a special distribution of $94 a share before the deal closes.
The stock and cash distribution have a combined value of $96.1 million. The deal is expected to close by the first quarter.
St. Martin has 12 branches, $456 million in loans and $509 million in deposits.
The merger is “a significant momentum builder for our shareholders,” John Bordelon, Home’s president and CEO, said in the release, adding that he expects more than 20% accretion to his company’s earnings per share.
BSP Securities and Silver, Freedman, Taff & Tiernan advised Home. Raymond James and Fenimore, Kay, Harrison & Ford advised St. Martin.
