Lafayette-based Home Bancorp Inc. will acquire Metairie-based Louisiana Bancorp in a cash deal valued at $74.5 million.
Louisiana Bancorp is the holding company for Bank of New Orleans, which has four branches in the Greater New Orleans area. As of March 31, Louisiana Bancorp had assets of $331 million, $275 million in loans and $201 million in deposits.
Home Bancorp is the holding company for Home Bank N.A.
The combined company will have assets of about $1.5 billion, $1.2 billion in loans and $1.2 billion in deposits.
The acquisition expands Home’s footprint in the New Orleans area, doubling the deposits for that market and lifting Home’s market share from the No. 16 to No. 12.
“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 Home President and Chief Executive Officer John W. Bordelon.
Louisiana Bancorp President and CEO Lawrence J. LeBon III said the merger will help improve customers’ experience and provide a great return for investors.
The deal, already approved by both companies’ boards, was announced after the markets closed Thursday. It is expected to be completed in the fourth quarter.
Under the agreement, Home Bancorp will pay $24.25 for each share of Louisiana Bancorp. Louisiana Bancorp’s stock closed down a penny Thursday at $22.44. Home Bancorp’s stock closed down 11 cents at $22.83.
In previous acquisitions, Home Bancorp in 2010 picked up the assets and deposits of failed Covington-based Statewide Bank. Statewide had seven locations in the St. Tammany Parish area. In 2011, Home acquired GSI Financial Corp. GSI, which operated Guaranty Savings Bank, had five New Orleans branches and a mortgage loan production office.
Those deals were followed in 2013 with Home Bancorp’s first venture outside Louisiana, with the purchase of Natchez, Mississippi-based Britton & Koontz Capital Corp., the holding company for Britton & Koontz Bank. It had three branches in Natchez, two in Vicksburg, Mississippi, three in Baton Rouge and a loan production office in Central.