IBERIABANK to merge with Tennessee based bank in $3.9 billion deal.
IBERIABANK and First Horizon National Corporation announced Monday that the two companies will merge to become a leading regional financial services company.
The merger of equals was approved by the boards of directors for both companies.
The combined holding company and bank will operate under the First Horizon name and will be headquartered in Memphis, Tennessee.
Upon the completed transaction, the companies say they will become one of the largest financial services companies headquartered in the South and one of the top 25 banks in the U.S. in deposits.
According to a release, the combined organization will have $75 billion in assets, $57 billion in deposits and $55 billion in loans.
Under the terms of the merger agreement, First Horizon shareholders will own 56% and IBERIABANK shareholders will own 44% of the combined company.
A new Board of Directors will consist of nine First Horizon directors and eight IBERIABANK directors.
The company's regional banking headquarters will be located in New Orleans.
Locally, all the branches will remain open and those that work at one will keep their jobs.
IBERIABANK CEO Daryl Bard says "we have very little overlap so we both told our people this morning tha tif you are a teller or if you are in one of our branches you have a job."
And local branches could even see an increase in business as they will now be able to offer mor eloans to customers.
First Horizon CEO says "our ability to lend more to individuals borrowers or groups borrowers will be greater with a bigger balance sheet."
The merger is expected to close in the second quarter of 2020.
"This merger of equals represents an exciting next chapter for both companies. By joining forces with First Horizon, we will create an organization that has the resources to invest in advanced technologies and expand lending capacity and product offerings for our combined clients,"
IBERIABANK President and CEO Daryl Byrd said in a press release. "We chose a partner who values deep relationships and is culturally aligned with our core mission, which is to create a great place to work for employees, deliver extraordinary, value-based client service, meet the expectations of our shareholders and invest in the communities we serve. Our partnership will leverage our best-in-class workforce and build on and complement the well-established strong foundations of both organizations. We look forward to bringing our companies together to better serve our clients and communities."
