First Horizon expands into North Carolina, Louisiana

Sandra ClarkOur Town Leaders

First Horizon National Corporation is expanding in the South.

The financial services corporation has agreed to combine with Iberiabank of Lafayette, Louisiana, in an all-stock merger of equals, subject to approval by stockholders and federal regulators.

The combined holding company and bank will operate under the First Horizon name and be based in Memphis. It will have $75 billion in assets, $57 billion in deposits and $55 billion in loans. Under the terms of the merger agreement, Iberiabank shareholders will receive 4.584 shares of First Horizon for each Iberian share they own. First Horizon shareholders will own 56 percent and Iberiabank shareholders will own 44 percent of the combined company.

First Horizon also announced it will acquire 30 SunTrust branches in North Carolina, Virginia and Georgia. The branches are being divested to satisfy regulatory requirements in connection with the previously announced merger of equals between SunTrust and BB&T. The divestiture is expected to close in early 2020, subject to regulatory approval and other customary closing conditions. As part of the agreement, First Horizon will assume approximately $2.4 billion in deposits for a deposit premium of 3.40 percent, and will purchase approximately $410 million in loans.

Once the Iberian 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, according to a press release.

Company executives said longstanding commitments to serve their respective communities will remain central to the combined organization’s future. Collectively, First Horizon and Iberiabank have committed $10 billion to community-benefit plans to increase access to financial resources and support for low- and moderate-income communities in the South. The combined bank will continue its investments in these and other important initiatives in the communities in which it operates.

The merger is expected to close in the second quarter of 2020, subject to satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval by the shareholders of each company.

Information taken from press releases from First Horizon.

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