Home Bancorp (HBCP) in Lafayette, La., has agreed to pay $34.5 million in cash for Britton & Koontz Capital (BKBK) in Natchez, Miss.

The $962 million-asset Home will pay $16.14 per share for Britton & Koontz, an 11% premium to its Monday closing share price of $14.50. Home will not need to raise capital to complete the deal, it said.

The deal would give Home its first Mississippi branches; it currently has 23 locations, all in Louisiana, according to the Federal Deposit Insurance Corp. The $313 million-asset Britton & Koontz has three branches in Baton Rouge, La., and five branches in Mississippi.

"We are incredibly excited to expand into two culturally rich and historic Mississippi markets," Home Chief Executive John Bordelon said in a news release. "The transaction also doubles our Baton Rouge loan and deposit base."

Raymond James advised Home, and Chaffe & Associates advised Britton & Koontz. The companies expect the deal to close in the first quarter, pending regulatory approval.

In May the Office of the Comptroller of the Currency terminated a regulatory order with Britton & Koontz that had required the bank to improve its loan quality. It held Tier 1 capital of 13.5% and had a total risk based capital ratio of 21.71% as of Sep. 30, according to the FDIC. The combined company will have a leverage ratio above 11% and a risk-based capital ratio above 17%, Home said.

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