First Horizon National Corp. and IberiaBank Corporation recently announced reaching a definitive agreement under which the companies will combine in an all-stock merger of equals.
Under the terms of the agreement, which was unanimously approved by the Boards of Directors of both companies, the combined holding company and bank will operate under the First Horizon name and will be headquartered in Memphis, Tenn.
“Our merger of equals with IberiaBank is an exciting milestone and the logical next step in the continued successful transformation of our company,” Bryan Jordan, Chairman and CEO of First Horizon, said. “Separately, we are both formidable organizations with strong track records, great businesses and talented bankers. Together, First Horizon and IberiaBank will create a powerful new company driven by our shared commitment to our customers, communities, shareholders and the employees we serve.
“We are pleased to have a partner with a complementary people-focused culture, shared values and a growthoriented business model. Our combined new scale, deep experience in financial services and diverse business mix in the South uniquely position us to accelerate our growth and create lasting shareholder value.”
Once the transaction is completed, the combined company will be one of the largest financial services companies headquartered in the South and one of the top 25 banks in the U.S. in deposits. The combined organization will have $75 billion in assets, $57 billion in deposits and $55 billion in loans.
The merger combines two complementary franchises that are uniquely positioned to capitalize on market opportunities and increase their client base through greater scale, strategic investments in advanced technologies and expanded product offerings.
Under the terms of the merger agreement, IberiaBank shareholders will receive 4.584 shares of First Horizon for each IberiaBank share they own. First Horizon shareholders will own 56 percent and IberiaBank shareholders will own 44 percent of the combined company. Additionally, IberiaBank shareholders will receive a 43 percent increase in their dividend after consummation of the transaction, based upon each company’s current dividend per share.