by Tyler Hale
First Horizon National Corporation and IBERIABANK Corporation are combining in a transaction that is expected to create one of the largest financial services institutions in the southern United States.
The two companies announced today (Nov. 4) that they have entered into an agreement to combine in an “all-stock merger of equals.” By merging, the new combined corporation is projected to have $75 billion in assets, $57 billion in deposits and $55 billion loans.
The combined company will operate under the First Horizon name and include a new executive leadership team and board consisting of members from both First Horizon and IBERIABANK. The board of directors will have nine First Horizon directors and eight IBERIABANK directors. The executive leadership will also be divided between the two companies: IBERIABANK’s president and CEO Daryl G. Byrd will assume the role of executive chairman of the board of directors, and D. Bryan Jordan, of First Horizon, will serve as CEO.
First Horizon executives:
- William C. Losch, III, Chief Financial Officer
- David Popwell, President, Specialty Banking
- Susan Springfield, Chief Credit Officer
- Tammy LoCascio, Chief Human Resources Officer
- Anthony Restel, Chief Operating Officer
- Michael Brown, President, Regional Banking
- Terry Akins, Chief Risk Officer
- Beth Ardoin, Chief Communications Officer
The new combined company will be headquartered in Memphis. (the current headquarters city of First Horizon). However, the company is also expected to locate its regional banking headquarters in New Orleans where IBERIABANK is headquartered.
Merging the two banks, according to a company release, is designed to deliver $170 million in pre-tax cost savings for the companies by reducing overhead redundancies, operation and computer services. The merger is also expected to create a 51 percent efficiency ratio and a 1.4 percent return on average assets.
“Our merger of equals with IBERIABANK is an exciting milestone and the logical next step in the continued successful transformation of our company. 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 growth-oriented 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,” First Horizon chairman and CEO Bryan Jordan said in a statement.
First Horizon shareholders are set to own 56 percent of the new company while IBERIABANK shareholders own 44 percent. The IBERIABANK shareholders will receive 4.584 shares of First Horizon for every IBERIABANK share they own, and IBERIABANK shareholders will receive a 43 percent increase in their dividend after the transaction is closed.
Currently, the merger is expected to close in the second quarter of 2020, pending regulatory approvals.