The resulting bank, Home Federal Savings and Loan Association, will change its name to ‘First Louisiana Bank’ in connection with the merger, and its newly formed holding company. Both banks will continue to operate independently until the close of the transaction, which is expected to occur late in the second quarter of 2008.
In connection with the mergers, each share of First Louisiana Bancshares will be converted into the right to receive either $28 in cash or a number of shares of Home Federal Bancorp common stock based on the initial public offering (IPO) price of Home Federal Bancorp’s common stock, at the election of the shareholder, subject to an overall requirement that 60% of the total outstanding First Louisiana common stock be exchanged for stock. Assuming an IPO price of $10 per share, each share of First Louisiana being exchanged will receive 2.8 shares of the new holding company. The aggregate merger consideration is estimated to amount to $23.7 million.
Daniel Herndon, chairman of the board and president of Home Federal Savings and Loan and Home Federal Bancorp, said: Combining our two community institutions works on many levels because our franchises and philosophies complement each other so well. Furthermore, we are also very pleased to have Ron Boudreaux, currently President and CEO of First Louisiana, joining us as the President and CEO of the combined banks as well as president and COO of the combined holding companies.
