Sometimes people don’t realize that banks have other responsibilities beyond securing an account holder’s money and providing loans when needed. While these are admirable day-to-day operations for the average bank, banks are also a business that need to make money. They have profit structures, expenses and try to draw new business just as much as any other industry. Two Louisiana banks have merged to become the 3rd largest bank in Louisiana.
Under the terms of the merger agreement, shareholders of the acquired bank will receive approximately 9.2839 shares of Home Bancorp common stock for each share of St. Martin common stock. In addition, pursuant to the terms of the merger agreement, immediately prior to the closing of the merger, St. Martin paid a special cash distribution of $94 per share to shareholders. These merger agreements are very specific and often these terms are negotiated heavily before an agreeable contract that suits both companies is met. Two former directors of the acquiesced bank will now serve on the board of the larger entity.
With the combination of the two organizations, the now one bank on a consolidated basis, has approximately $2.2 billion in assets, $1.7 billion in loans and $1.8 billion in deposits. The combined bank will conduct business as one organization as per contract schedule for by March of this coming year. This makes it the third largest bank in Louisiana. Between the two companies, there is a vast amount of wealth, experienced employees and management and a positive outlook for the future of the bank.
Those that hold accounts at both locations can now look to the one bank as their primary bank. For those that were members at the acquiesced bank, they may want to check in on the larger entities policies pursuant to the contract and the merger. The same could be said for members of the other bank, as policies could be adopted or rejected from either bank prior to the merger. This is big news for two smaller banks that have now merged as one.
Source: theadvertiser.com, “Home Bancorp completes merger with St. Martin Bancshares,” Dec 7, 2017