Tennessee's biggest bank completed its merger with the largest bank in Louisiana Thursday to create a combined bank with over $79 billion in assets and operations in 11 states.
The Memphis-based First Horizon National Corp., is combining with IberiaBank, which is headquartered in Baton Rouge, Louisiana. The all-stock merger will give shareholders of First Horizon 56% of the stock in the combined company, which will be known as First Horizon and be headquartered in Memphis.
IberiaBank branches will be rebranded as First Horizon in 2021 after the two banks' back office operating systems have been combined.
The merger creates the 42nd biggest in the United States, according to Federal Reserve data. The combined company will have $59.3 billion in deposits across its multi-state operations.
"The combined company's enhanced scale, diversified business model and expertise in financial services uniquely position us to better serve our clients and communities, accelerate our growth and create long-term shareholder value," said Bryan Jordan, chairman and CEO of First Horizon.
Daryl G. Byrd, president and CEO of IberiaBank who will serve as executive chairman of the combined company, said the merger will build on the long histories of both banks "as we work to build a premier southern-based bank.
"With the incredible legacies of both organizations as our foundation, we plan to combine the best of both companies to position us for success in this rapidly evolving world," he said.
Iberia was founded in 1887 in the rice and sugarcane country west of New Orleans. First Horizon, known as First Tennessee Bank for decades and before that First National, was formed in 1864 and prospered as Memphis grew into a cotton market hub for the Mississippi Delta.
The former First Tennessee Bank entered the Chattanooga market in 1976 when First Tennessee acquired the failed Hamilton National Bank in Chattanooga. With more than $2.3 billion in deposits in the Chattanooga market, First Horizon is the biggest of the 28 commercial banks operating in Chattanooga.
Jordan said First Horizon and Iberiabank customers will continue to be served through their respective websites, mobile apps, branches and advisors as operating systems are combined
"Clients can count on us to keep them informed and prepared," Jordan said. "Ensuring that the transition and conversion are as seamless as possible is a top priority."
The leadership of the combined bank will include executives and directors from both IberiaBank and First Horizon.
Under the terms of the merger agreement, Iberiabank shareholders received 4.584 shares of First Horizon for each Iberiabankshare they own. Approximately 56% of the combined company is held by legacy First Horizon shareholders with approximately 44% held by legacy Iberiabank shareholders.