According to reports, recently bank shareholders overwhelmingly approved the acquisition of Louisiana bank, Britton & Koontz (B&K). Sometime in November 2013 B&K made the announcement that Home Bancorp would acquire them for a little over $34 million.
Following this approval by shareholders, now the only pending matter is regulatory approval. Once regulators approve the merger and acquisition, the transaction will be complete.
The Chief Financial Officer of the holding company, Home Bancorp indicated that as soon as they get regulatory approval, signage and other services will be changed to be in line with Home Bancorp requirements, and materials. The conversion may take months, but is expected to be complete sometime in March 2014. With the acquisition and merger of B&K, the hope is that the pooled resources of the holding company and B&K will provide better service to its customers and community.
Louisiana residents may be aware that Home Bankcorp is the holding company for the Home Bank of Lafayette, and it has nearly 23 locations in Louisiana. B&K has a few locations in Louisiana, but this acquisition will likely be Home Bancorp’s very first expansion out of the state of Louisiana.
As with any merger and acquisition, loss of existing positions and jobs may occur. Although the holding company did not specifically comment on the nature of B&K employee jobs losses, they indicated that the employees are aware of what is going on, and how it may impact them.
Generally, mergers and acquisitions help companies expand and grow. Negotiations between companies may take months, and they require close examination of offers on the table. In addition to such negotiations, the parties likely have to ensure that the appropriate paperwork is being completed for regulatory approval. Every facet of the deal must be considered to ensure the right decision is being made. Thus, it may be important to enlist the legal knowledge of a firm familiar business law to help ease the process.
Source: Natchez, “Bank merger passed: B&K shareholders approve acquisition,” Rob Guajardo, Jan. 11, 2014