Home Bancorp in Lafayette, La., has agreed to buy Friendswood Capital in Houston.
The $2.7 billion-asset Home said in a press release Wednesday that it will pay $67 million in cash for the parent of $445 million-asset Texan Bank. The deal is expected to close in the first quarter.
The move makes Home’s first entry into Texas.
“This merger provides Home Bancorp the opportunity to expand our geographic footprint into Texas,” John Bordelon, the company’s chairman, president and CEO, said in the release.
“Texan Bank and Home Bank share the same values of serving the community and providing excellent customer service to their clients,” Bordelon added. “We look forward to further developing the Houston region together and building strong relationships with consumers and businesses.”
Friendswood has five branches, $343 million of loans and $376 million of deposits.
Kenny Koncaba, Friendswood’s CEO, will become Home’s Houston market president.
Home said it expects the deal to be over 20% accretive to earnings per share. It should take less than four years for the company to earn back its tangible book value.
Raymond James and Silver, Freedman, Taff & Tiernan advised Home. Performance Trust Capital Partners and Bracewell advised Friendswood.