Home Bancorp Expanding To New Markets

(RTTNews) - Home Bancorp (HBCP: News ), the holding company for Home Bank , a Federally chartered savings bank headquartered in Lafayette, Louisiana, is all set to expand its operations with the FDIC-assisted acquisition of certain deposits of Statewide Bank, a full service community bank headquartered in Covington, Louisiana.

In addition to its existing presence in Lafayette and Baton Rouge, Home Bancorp will now expand its company into the Northshore market, following the acquisition.

Shares of Home Bancorp set a new intraday high of $14.49 today (Monday), an increase of 15% from Friday's closing price, before retracing to the current trading price of $14.05.

According to the company's announcement about the acquisition made on March 12, Home Bank will expand its market area through Statewide Bank's six banking offices which are located in Covington, Madisonville, Mandeville, Abita Springs, Slidell and Folsom, Louisiana.

Under the terms of the agreement with the FDIC, Home Bank will acquire approximately $225 million of assets, including about $150 million of loans (before loan discounts). Home Bank will assume about $225 million in deposits and certain other liabilities. The loss sharing agreement between the FDIC and Home Bank covers substantially all acquired loans and foreclosed real estate.  

With the completion of this transaction, Home Bank now has 18 full-service banking offices in the south Louisiana market areas of Lafayette, Baton Rouge and the Northshore.

The transaction is expected to be accretive to Home Bancorp's net income, diluted earnings per share, book value per share and tangible book value per share.

In the fourth-quarter ended December 31, 2009, whose results were released in January , net income was $22,000, an increase of $821,000, or 103%, compared to the fourth quarter of 2008. The company's book value per share as of the most recent quarter is $16.52.

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by RTT Staff Writer

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