Home Federal Bancorp to acquire Louisiana rival Northwest Bancshares
Louisiana-based Home Federal Bancorp, the holding company of Home Federal Bank, has signed an agreement to acquire Northwest Bancshares, the holding company of the First National Bank of Benton (First National) in an all-cash deal worth around $10.1 million.
Currently, First National Bank of Benton operates out of one banking location in Benton, Louisiana.
Northwest Bancshares held total consolidated assets of $81.7 million, $52.1 million in total loans, $65 million in total deposits and $14.2 million in shareholders’ equity, as of 31 August 2022.
On the other hand, Home Federal Bank has nine banking offices and a home office in northwest Louisiana.
Following the completion of the transaction, First National Bank of Benton will be merged with and into Home Federal Bank.
The transaction is expected to be completed in the first quarter of 2023, subject to customary closing conditions, including regulatory approvals and Northwest Bancshares’ shareholder approval.
James R. Barlow — Home Federal Bancorp Chairman, President, and CEO said: “First National provides a natural expansion of our franchise within our home market. First National has developed an exceptional customer base in its market area.
“We are excited to expand to the Benton community and increase our market share in Bossier Parish. We are confident that the products and services we offer will allow us to deepen those valued relationships.”
Under the terms of the agreement, shareholders of Northwest Bancshares will be given their pro rata portion of aggregate merger consideration equal to $4.25 million.
In addition, they will receive the sum of 8% of total assets of Northwest Bancshares as of the month-end immediately prior to the closing of the merger.
The merger is expected to enable Home Federal Bank to hold a strong capital position with leverage and total risk-based capital ratios of approximately 8.2% and 14.2%, respectively.
Raymond James & Associates served as financial advisor to Home Federal Bancorp in the transaction, while Silver, Freedman, Taff & Tiernan LLP was as its legal advisor.
John A. Batson — Northwest Bancshares President and CEO said: “Home Federal Bank has an extremely impressive platform which will allow our customers to enjoy expanded products, services and locations without compromising the high level of customer service they have come to expect.
“Our customers and employees are of the upmost importance to us, and we believe merging with Home Federal will provide an excellent opportunity for both.”