First Horizon’s planned merger with IBERIABANK has received full regulatory approval from the Federal Reserve Board, the two companies announced last week.
The deal will see IBERIABANK branches rebranded as First Horizon as of next year, according to the announcements, after the two banks’ back office operating systems have been combined.
The transaction will create a $80.3 billion banking giant, the 42nd biggest in the US, according to Federal Reserve data. The combined company will have $59.3 billion in deposits across its multi-state operations.
The acquisition will also boost First Horizon’s presence in several states, the most significant of which were analyzed by the Federal Reserve Board in order to ensure compliance with local and national competition laws.
In Tennessee, where First Horizon is the largest depository institution, it will add IBERIABANK’s $338.9 million. Its $25 billion of deposits in the state accounts for 15.6% of the market, according to the Federal Reserve.
In contrast, in Florida, First Horizon currently has $2 billion of deposits, ranking 34th in the state. IBERIABANK ranks 17th with $9.5 billion.
Following the merger, the combined bank will be the 14th biggest in Florida, with a 1.9% market share of deposits.
It will remain the eighth largest in North Carolina, where it will control 1.8% of the depository market – equivalent to approximately $6.6 billion.
First Horizon will also add significant deposit totals in Texas ($1.8 billion) and Georgia ($1.2 billion). In Georgia it will break into the top 20 depository organizations in the state with a combined $1.3 billion – the vast majority of which comes from IBERIABANK’s existing business.
Bryan Jordan, chairman and CEO of First Horizon, said: “First Horizon and IBERIABANK together will be well positioned to navigate a changing financial services landscape, deliver superior client solutions, strengthen the communities we serve and create strong returns for our shareholders.
“I am tremendously proud of how focused our teams have remained throughout the unforeseen disruption of a global pandemic. Our colleagues have demonstrated an unwavering dedication to our clients and communities while setting the stage for a highly successful integration.”
Daryl Bird, president and CEO of IBERIABANK, added: “Today’s approval represents an important milestone as we join forces to create a leading regional financial services company dedicated to enriching the lives of our clients, associates and communities.
“By aligning our relationship-oriented cultures, we will continue to transform the way we do business to meet clients’ needs in this dynamic environment and provide a great place to work for our associates.”
The deal is expected to complete on July 1, 2020.