IberiaBank, First Horizon Holders Approve Merger of Equals

Shareholders of both IberiaBank Corp. (IBKC) and First Horizon National Corp. (FHN) on Friday approved the all-stock merger of equals between the two banks.

Under the terms of the merger agreement, holders of IberiaBank common stock will receive 4.584 shares of First Horizon common stock for each share of IberiaBank common stock they own at the closing.

“We are pleased to have received overwhelming shareholder support for the pending merger with First Horizon. The combination of these two regional banking companies will provide a superior platform to better serve our stakeholders and communities,” Daryl G. Byrd, President and Chief Executive Officer. “The resulting organization will deliver highly diversified businesses, produce complimentary revenue streams, expand the product capabilities of both companies, and strengthen our position in high growth, attractive markets.”

Once the transaction is complete, the combined bank will be one of the largest financial services companies headquartered in the Southeast of the U.S. and one of the top 25 banks in the U.S. in terms of deposits. The banks expect the merger to be completed in the second quarter of 2020, subject to regulatory approvals and other customary closing conditions.

“As a combined company, we will have an expansive 11-state reach in high-growth, attractive markets across our combined footprint,” said Bryan Jordan, Chairman and CEO of First Horizon. “When we complete the integration of our company in 2021, we will be better positioned to deliver the innovative products and technology our customers have come to expect from us.”

Following the closure of the merger, the combined bank will operate under the First Horizon name and will be headquartered in Memphis. The headquarters of the combined regional banking business will be located in New Orleans.

Tyler Stafford, an analyst Stephens at the end of last month raised First Horizon to Buy from Hold with a $13 price target, saying the company “is clearly not trading on fundamentals” adding that when fundamentals matter again it is well positioned to outperform.

Overall Wall Street analysts have a Strong Buy rating on First Horizon’s stock based on 8 Buys and 1 Hold. The $11.69 average price target implies 46% upside potential in the shares over the coming year. (See First Horizon stock analysis on TipRanks).

Related News:
Boeing Backs Out of $4.2 Billion Embraer Joint Venture Deal
Facebook Launches New Free Video Call Feature; Zoom Shares Dip 6%
Valero Maintains 7.5% Dividend Yield, Assuaging Investor Concerns


Stay Ahead of Everyone Else

Get The Latest Stock News Alerts