trending Market Intelligence /marketintelligence/en/news-insights/trending/5rSmscwWgyzxE2OyTb_P8g2 content esgSubNav
In This List

New Orleans' Union Savings, Hibernia to merge

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


New Orleans' Union Savings, Hibernia to merge

New Orleans-based Union Savings and Loan Association and Hibernia Bancorp Inc. have agreed to a deal under which Union will buy Hibernia for $32.00 per share in cash, or an aggregate $28.2 million.

As of Sept. 30, Union had $82.7 million in assets; Hibernia's subsidiary, Hibernia Bank, had $136.5 million. Hibernia Bancorp is listed on the OTC Pink. The combined company will operate under the Hibernia brand.

On a per-share basis, SNL calculates that the deal value is 130.5% of book and tangible book. It is also 20.87% of assets, 26.14% of deposits and the tangible book premium-to-core deposits ratio is 12.41%. The deal has a one-day premium of 60.40%, based on Hibernia's Dec. 8 closing price of $19.95, and a one-month premium of 66.23%, based on Hibernia's Nov. 13 closing price of $19.25.

For comparison, SNL valuations for bank and thrift targets in the Southwest region between Dec. 11, 2016, and Dec. 11, 2017, averaged 200.02% of book, 211.96% of tangible book and had a median of 36.17x last-12-months earnings, on a per-share basis.

Union will expand in Jefferson Parish, La., by one branch to be ranked No. 15 with a 0.59% share of approximately $11.02 billion in total market deposits. It will also expand in Orleans Parish, La., by two branches to be ranked No. 11 with a 0.52% share of approximately $16.70 billion in total market deposits.

The deal, pending regulatory and Hibernia shareholder approvals, is expected to close in the second quarter of 2018. In addition to the combination of existing branch networks, Union plans to open a branch in Harahan, La.

In the transaction, FIG Partners LLC and Luse Gorman PC served as Union's financial adviser and legal counsel, respectively. For Hibernia, it was Banks Street Partners LLC and Silver Freedman Taff & Tiernan LLP.

To use S&P Global Market Intelligence's branch analytics tools to compare market overlap, clickhere. To create custom maps, click here.

SNL Image