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Iberia Bank announces plan to merge with Tennessee bank in a "merger of equals"
Posted on 11/4/19 at 9:04 am
Posted on 11/4/19 at 9:04 am
quote:LINK
Lafayette-based Iberia Bank will merge with First Horizon, a bank of similar size headquartered in Memphis, Tennessee in a deal worth $3.9 billion.
The all stock deal is expected to close in second quarter 2020.
The combined bank will have $55 billion in loans, $57 billion in deposits, $75 billion in assets and a market cap of $9 billion.
First Horizon will own 56% of the new combined bank and Iberia Bank will own 44% of the company with headquarters in Memphis and a regional banking center in New Orleans.
ETA: I'm pretty sure Iberia Bank is the largest bank in Louisiana which is headquartered in Louisiana.
This post was edited on 11/4/19 at 9:07 am
6
Posted on 11/4/19 at 9:11 am to LSURussian
Huge loss for Louisiana however they want to spin this. Another publicly traded company is out of Louisiana.
Posted on 11/4/19 at 9:14 am to MrLSU
quote:Who is "they" and how are they spinning it?
however they want to spin this.
Posted on 11/4/19 at 9:22 am to LSURussian
Not surprised that Iberia would be acquired. Am very surprised that they sold out for essentially no premium on the stock price. I own some Iberia stock, and this is a head scratcher. I don't understand why this transaction is in the interest of Iberia's shareholders.
Posted on 11/4/19 at 9:46 am to LSURussian
If First Horizon owns the majority, then leadership will anchor in Memphis.
Posted on 11/4/19 at 10:05 am to lynxcat
The first thing to remember is that when they call it a "merger of equals," it really isn't. My guess is that there won't be much left in Louisiana. A big chunk of Iberia's operations were outside Louisiana anyway. Louisiana will be a minor, low growth market for the new bank.
Posted on 11/4/19 at 10:13 am to SloaneRanger
quote:I don’t own stock in it but I agree with you. If I were a shareholder I’d vote against it.
I don't understand why this transaction is in the interest of Iberia's shareholders.
Posted on 11/4/19 at 10:30 am to LSURussian
quote:
I don’t own stock in it but I agree with you. If I were a shareholder I’d vote against it.
What's the premium on the current share price?
Posted on 11/4/19 at 10:39 am to SloaneRanger
quote:
Not surprised that Iberia would be acquired. Am very surprised that they sold out for essentially no premium on the stock price. I own some Iberia stock, and this is a head scratcher. I don't understand why this transaction is in the interest of Iberia's shareholders.
This. They would have made perfect sense for a much larger national / global bank who was looking to enter some markets and buy additional share in others, something like Wells Fargo, US Bank, PNC, etc.
It's not "equals" but First Horizon isn't THAT much bigger than they are, relatively speaking.
I don't see where this is good for stockholders or for customers. Now for the leadership, it's great because just about all of them will get good jobs in the new bank. If it was a merger that went a lot higher, there wouldn't be the need for as many of them to stay on.
Posted on 11/4/19 at 10:43 am to lynxcat
quote:
What's the premium on the current share price?
First Horizon opened this morning at 16.50, and Iberia Bank shareholders are getting 4.5 shares for every Iberia Bank Share. So that's 74.25.
Iberia Bank opened this morning at 75.49...
The press release says
quote:
In addition, Iberia Bank shareholders will get a 43% increase in stock dividends after the transaction closes.
Posted on 11/4/19 at 10:47 am to LSUFanHouston
Why you baws upset. First horizon is paying a bigger dividend.
Posted on 11/4/19 at 10:50 am to yatesdog38
Also there are quite a few more regulations and capital requirements once you cross the 50 billion threshold. First horizon and Iberia were a match made in heaven. They gave each other access to markets that neihlther had much of a presence in. This is a dog eat dog world.
Posted on 11/4/19 at 10:51 am to LSURussian
who should I bank with now? Chase offering $300 if you open an account and set up direct deposit, plus I wont have to worry about them moving out of state lol
Posted on 11/4/19 at 10:52 am to yatesdog38
quote:
Why you baws upset. First horizon is paying a bigger dividend.
Meh, the higher dividend isn't much. It wasn't so long ago that Iberia was trading in the $80s. They are a well run bank with a very attractive, high growth footprint. They should have commanded a significant premium.
Posted on 11/4/19 at 10:53 am to LSUFanHouston
quote:
Now for the leadership, it's great because just about all of them will get good jobs in the new bank. If it was a merger that went a lot higher, there wouldn't be the need for as many of them to stay on.
I just heard that a lot of Iberia's top execs are not being retained in this merger. A couple of names I was really surprised to hear that they were told they would probably not make it past the 3rd quarter of 2020.
Posted on 11/4/19 at 11:02 am to yatesdog38
quote:How many shares of IBKC do you own?
Why you baws upset. First horizon is paying a bigger dividend.
Posted on 11/4/19 at 11:02 am to SloaneRanger
Iberia has lost some large teams in multiple markets over the last year or so. A lot of the organic growth they had over the last 5 years went away with those teams. Also, energy lending had been their biggest area of growth in 2018, but not many banks are in the energy lending business right now, so I wouldn’t have expected to see significant growth over the next year.
Posted on 11/4/19 at 11:04 am to MrLSU
quote:
I just heard that a lot of Iberia's top execs are not being retained in this merger. A couple of names I was really surprised to hear that they were told they would probably not make it past the 3rd quarter of 2020.
Interesting. I read Iberia was getting just under half the board spots and was getting the exec chairman position, not to mention a bunch of the other top spots.
quote:
Jordan will remain CEO, while Daryl Byrd, Iberiabank’s CEO, will become executive chairman. William Losch III will remain chief financial officer, and Anthoy Restel, Iberiabank’s CFO, will become the the company’s chief operating officer.
David Popwell, Susan Springfield and Tammy LoCascio will continue to serve as First Horizon executives. Iberiabank’s Michael Brown, Rerry Akins and Beth Ardoin will join the combined company.
quote:
The 17-member board will include nine directors from First Horizon and eight from Iberiabank.
Posted on 11/4/19 at 11:23 am to Hermit Crab
This is a power play by the university of Memphis. They are trying to strong-arm their way into the SEC via banking. Down with regions and Birmingham
Posted on 11/4/19 at 5:54 pm to Carson123987
quote:
who should I bank with now? Chase offering $300 if you open an account and set up direct deposit, plus I wont have to worry about them moving out of state lol
What are your banking needs? If it’s just a checking account it doesn’t really matter. I like really local banks where I have a personal relationship because I need commercial loans. Red Rive Bank has exceeded expectations.
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