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NC-based First-Citizens Bank to expand into Tampa, Orlando with HomeBancorp deal

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NC-based First-Citizens Bank to expand into Tampa, Orlando with HomeBancorp deal

Raleigh, N.C.-based First-Citizens Bank & Trust Co. has agreed to buy Tampa, Fla.-based HomeBancorp Inc. for $15.03 per share in cash.

According to its most recent consolidated income statement HomeBancorp had 5,783,972 common shares outstanding.

An aggregate deal value was not listed in a press release announcing the deal. SNL valuations for bank and thrift targets in the Southeast between Dec. 18, 2016, and Dec. 18, 2017, however, averaged 158.42% of book, 168.59% of tangible book and had a median of 23.79x last-12-months earnings, on an aggregate basis.

The transaction is expected to close in the second quarter of 2018, subject to approval by regulators and HomeBancorp shareholders.

The deal would expand First-Citizens' presence into the Florida markets of Tampa and Orlando. HomeBancorp unit HomeBanc has 13 branches in the state, and First-Citizens will rank No. 45, with a 0.23% share of approximately $563.99 billion in total market deposits.

First-Citizens spokesperson Terry Haggerty declined to comment on any future M&A plans in the state. "We're a bank that's looking to grow, and we understand that mergers and acquisitions are an effective way to do that," Haggerty said. "We've been doing this for a number of years now, so we're just always looking at opportunities to grow."

HomeBancorp had $954.9 million in assets as of Sept. 30, as well as $637.5 million in total loans and leases and $699.4 million in deposits, according to SNL data. The First Citizens BancShares Inc. unit had $34.41 billion in assets as of that same date.

Keefe Bruyette & Woods Inc. was financial adviser and rendered a fairness opinion to the board of HomeBancorp. KBW's Patrick Long was lead adviser. Ward and Smith PA was legal counsel to First-Citizens, while Covington & Burling LLP represented HomeBancorp.

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