GRAND RAPIDS, Mich. - Old Kent Financial Corp. announced Friday that it plans to buy Home Bancorp in Fort Wayne, Ind., in a stock deal valued at $39 million.
Old Kent of Grand Rapids is paying only a slight premium to expand its reach into the northeast Indiana market through the deal.
Home Bancorp will receive about 1.3 million shares of Old Kent stock, using an exchange ratio of 0.6614 for each share of Home Bancorp. That amounts to $19.95 per share, based on Old Kent's closing price on Thursday.
Old Kent was trading late Monday afternoon at $29.375. Home Bancorp was trading at $18.375, down 50 cents from its Thursday close on the Nasdaq market.
"We're very pleased by this natural extension of our franchise into those attractive Indiana markets," Old Kent president and chief executive officer David J. Wagner said.
Home Bancorp, the holding company for Home Loan Bank, has $403 million of assets and 10 branches.
Old Kent, which has $21 billion, operates nearly 300 branches in Michigan, Illinois, and Indiana. The company also has a national mortgage operation.