Home Federal Bancorp, Inc. of Louisiana Announces Agreement

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SHREVEPORT, La., Oct. 04, 2022 (GLOBE NEWSWIRE) — Home Federal Bancorp, Inc. of Louisiana (the “Company” or “Home Federal Bancorp”) (Nasdaq: HFBL), the holding firm of Home Federal Bank, and Northwest Bancshares Corporation (“Northwest Bancshares”), the holding firm of the First National Bank of Benton (“First National”), introduced at this time the signing of a definitive Agreement and Plan of Merger (“Merger Agreement”) pursuant to which the Company will purchase Northwest Bancshares in an all money acquisition. Under the phrases of the Merger Agreement, shareholders of Northwest Bancshares will obtain their professional rata portion of combination merger consideration equal to $4.25 million, plus the sum of 8.0% of whole property of Northwest Bancshares as of the month-end instantly previous to the closing of the merger after giving impact to a particular distribution (the “Special Distribution”) to be paid, much less the quantity, if any, that Northwest Bancshares’ whole unaccrued and unpaid transaction bills exceed $125,000. Based on monetary information as of August 31, 2022, the events at the moment estimate that the combination merger consideration might be roughly $10.1 million. In addition to the merger consideration, the Merger Agreement offers that, previous to consummation of the merger, Northwest Bancshares can pay the Special Distribution in money to its shareholders in an combination quantity which is able to cut back the ratio of Northwest Bancshares’ whole shareholders’ fairness to whole consolidated property to eight.0%. Based on monetary information at August 31, 2022, the events at the moment estimate that the quantity of Special Distribution might be roughly $8.4 million.

First National at the moment operates out of one banking location in Benton, Louisiana. As of August 31, 2022, Northwest Bancshares had whole consolidated property of $81.7 million, $52.1 million in whole loans, $65.0 million in whole deposits and $14.2 million in shareholders’ fairness. Under the phrases of the Merger Agreement, First National might be merged with and into Home Federal Bank promptly following completion of the holding firm merger.

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“First National provides a natural expansion of our franchise within our home market,” stated James R. Barlow, Chairman, President, and Chief Executive Officer of Home Federal Bancorp. “First National has developed an exceptional customer base in its market area. We are excited to expand to the Benton community and increase our market share in Bossier Parish. “We are confident that the products and services we offer will allow us to deepen those valued relationships,” stated Barlow.

“Home Federal Bank has an extremely impressive platform which will allow our customers to enjoy expanded products, services and locations without compromising the high level of customer service they have come to expect,” stated John A. Batson, President, and Chief Executive Officer of Northwest Bancshares. He continued, “Our customers and employees are of the upmost importance to us, and we believe merging with Home Federal will provide an excellent opportunity for both.” Justin Whittington, Chairman of the Board of Northwest Bancshares commented, “This merger will benefit our customers, our community and our shareholders.”

The Merger Agreement was unanimously accredited by the boards of administrators of each firms. The transaction is predicted to shut within the first quarter of 2023, topic to customary closing circumstances, together with regulatory approvals and Northwest Bancshares’ shareholder approval.

Home Federal Bancorp anticipates the transaction might be over 20% accretive to earnings per share after value financial savings are totally realized, and accretive to tangible e book worth per share in roughly three years of closing. Following the merger, Home Federal Bank’s capital place is predicted to stay robust with leverage and whole risk-based capital ratios of roughly 8.2% and 14.2%, respectively. 

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Raymond James & Associates, Inc. acted as monetary advisor to Home Federal Bancorp and Silver, Freedman, Taff & Tiernan LLP acted as its authorized advisor within the transaction. Hillworth Bank Partners rendered a equity opinion to Home Federal Bancorp. SEACAP Financial, LLC, acted as monetary advisor to Northwest Bancshares and Butler Snow LLP acted as its authorized advisor within the transaction.

Home Federal Bancorp, Inc. of Louisiana is the holding firm for Home Federal Bank which conducts business from its 9 full-service banking workplaces and residential workplace in northwest Louisiana.

Statements contained on this information launch which aren’t historic details could also be forward-looking statements as that time period is outlined within the Private Securities Litigation Reform Act of 1995. Forward-looking statements will be recognized by the truth that they don’t relate strictly to historic or present details. They usually embody phrases like “believe”, “expect”, “anticipate”, “estimate”, and “intend”, or future or conditional verbs corresponding to “will”, “would”, “should”, “could”, or “may”. We undertake no obligation to replace any forward-looking statements.

Actual outcomes may differ materially from these indicated in forward-looking statements. Among different components, precise outcomes could differ from these described in forward-looking statements on account of: the chance that the proposed transaction doesn’t shut when anticipated or in any respect as a result of required regulatory, shareholder or different approvals and different circumstances to closing are usually not obtained or happy on a well timed foundation or in any respect; the phrases of the proposed transaction could must be modified to acquire such approvals or fulfill such circumstances; the anticipated advantages from the proposed transaction are usually not realized in the timeframe anticipated or in any respect in consequence of modifications typically financial and market circumstances, rates of interest, legal guidelines and rules and their enforcement, and the diploma of competitors within the markets served by the businesses; the power to promptly and successfully combine the companies of the businesses; the response of the businesses’ prospects to the transaction; diversion of administration time on merger-related points; modifications in asset high quality and credit score threat; the lack to maintain income and earnings; and aggressive circumstances.

Home Federal Bancorp’s Annual Reports on Form 10-Ok and different stories filed with the SEC describe some extra components which may trigger precise circumstances, occasions or outcomes to vary considerably from these described in forward-looking statements.

Forward-looking statements converse solely as of the date they’re made. Home Federal Bancorp doesn’t undertake to replace forward-looking statements to replicate circumstances or occasions that happen after the date the forward-looking statements are made or to replicate the prevalence of unanticipated occasions.

Annualized, professional forma, projected and estimated numbers introduced herein are introduced for illustrative function solely, are usually not forecasts and should not replicate precise outcomes.

CONTACTS: James R. Barlow John A. Batson
  Home Federal Bancorp, Inc. of Louisiana Northwest Bancshares Corporation
  Chairman of the Board, President and Chief Executive Officer President and Chief Executive Officer
  (318) 222-1145 (318) 965-9691
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