The expanded First Horizon post-merger is expected to be among the largest financial services companies headquartered in southern US
First Horizon National has agreed to merge with rival US-based bank holding company Iberiabank in an all-stock deal to create an enlarged regional financial services company with $75bn in assets.
Based in Tennessee, First Horizon National offers financial services via First Horizon Bank, First Horizon Advisors, and FHN Financial businesses. The bank holding company operates nearly 270 bank locations in the Southeast US and 29 FHN Financial offices spread across the country.
Iberiabank, which is based in Louisiana, has locations across 12 US states where it provides commercial, private banking, consumer, small business, wealth and trust management, and others.
First Horizon name to be retained post-merger
Following the merger, the combined holding company and bank will operate under the First Horizon name and will be based in Memphis, Tennessee. The resulting company’s regional banking headquarters will be at New Orleans, Louisiana.
The expanded bank holding company is expected to be among the largest financial services companies headquartered in the southern part of the US and one of the top 25 banks in the entire country on the basis of deposits.
After completion of the merger, First Horizon will have $57bn in deposits and $55bn in loans.
First Horizon chairman and CEO Bryan Jordan said: “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.”
As per the merger terms, Iberiabank’s shareholders will exchange each of their shares with 4.584 shares of First Horizon. Post-merger, First Horizon’s shareholders will hold 56% ownership in the combined bank holding company, while Iberiabank’s shareholders will hold the remaining stake of 44%.
Iberiabank president and CEO Daryl Byrd said: “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.
“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.”
The merger is subject to customary regulatory approvals and approval from shareholders of both the companies. Additionally, it will be subject to satisfaction of other customary closing conditions after which it is expected to close in the second quarter of 2020.