Home Bancorp, the holding company of the 109-year-old Home Bank, and St. Martin Bancshares, the holding company of St. Martin Bank & Trust Company, signed a definitive agreement under which Home Bancorp will acquire St. Martin Bancshares.

Under the terms of the agreement, St. Martin Bancshares will be merged with and into Home Bancorp.

As of June 30, 2017, St. Martin Bancshares had assets of $597.3 million, $455.5 million in loans and $508.7 million in deposits. The combined company will have assets of approximately $2.2 billion, $1.7 billion in loans and $1.8 billion in deposits.

“This merger is a win-win for both St. Martin Bank and Home Bank customers, as each will enjoy more locations and enhanced products to serve them,” said John W. Bordelon, president and CEO of Home Bancorp. “Our partnership with St. Martin Bancshares is also a significant momentum builder for our shareholders, as we expect greater than 20% EPS accretion as a result of combining our companies after expected efficiencies are realized.”

“We have long admired the way Home Bank treats its customers and employees and serves our Acadiana community,” said Paul A. Durand, president of St. Martin Bancshares. “St. Martin Bank has achieved great success over the years because its employees share Home’s commitment to serving our friends and neighbors. Given our shared values, we’re going to be very effective building our company and community together.”

Durand will remain active in the combined company serving customers in an executive business development role. In addition, two members of St. Martin Bancshares’ current board of directors will join the boards of Home Bancorp and Home Bank.

The merger agreement was unanimously approved by the boards of directors of both companies. No additional capital will be needed by Home Bancorp to complete the transaction.

BSP Securities acted as financial advisor to Home Bancorp and Silver, Freedman, Taff & Tiernan acted as its legal advisor in the transaction. Raymond James acted as financial advisor to St. Martin Bancshares and Fenimore, Kay, Harrison & Ford acted as its legal advisor.