IBERIABANK, Teche merger announced
IBERIABANK announced it plans to acquire Teche Holding Company through a merger after signing an agreement to Teche.
The proposed merger of Teche Holding Company, which is the holding company for New Iberia-based Teche Federal Bank, into IBERIABANK has been approved by each company’s board of directors and is expected to close in the second quarter of 2014, a news release stated.
The transaction’s completion is subject to customary closing conditions, including the receipt of required regulatory approvals and the approval of Teche’s shareholders, the news release stated.
Teche Federal Bank has locations in Morgan City and Bayou Vista.
Teche Holding Company President and CEO Patrick Little said in the announcement, “Over the last 80 years, our financial institution successfully navigated many challenges and opportunities. We are very proud of our Acadiana heritage and the successful financial performance we have delivered for shareholders since we went public nearly 19 years ago. We believe this combination with (IBERIABANK) provides tremendous value to our shareholders in both the near-term and long-term.”
IBERIABANK CEO and President Daryl G. Byrd said, “Teche and IBERIABANK share a common heritage. Our organizations were started only 30 miles apart as mutual thrift institutions. Each of us converted to stock form and subsequently to commercial bank charters, and we both grew to become leading financial institutions in the Acadiana region of Louisiana. Our respective holding companies were formed less than two weeks apart and our initial public offerings were also separated by less than two weeks. As the financial services industry changed, our respective companies evolved to become commercial banks, while maintaining a focus on high-quality lending, capital strength, and excellent client service. Our companies not only survived many interest rate upheavals and banking panics, but prospered throughout those cycles.”
Little said, “We are pleased to team up with such a high-quality banking partner. Our clients will benefit from an expanded array of products and services, along with the added convenience of nearly 200 bank locations in six states.”
Byrd said, “This combination is consistent with our stated efforts to improve our operating efficiency, appropriately deploy our capital, and enhance shareholder returns. We believe this transaction is a ‘win-win’ scenario for our respective shareholders and the communities we serve.”
Under the terms of the merger agreement, Teche Holding Company will receive 1.162 shares of IBERIABANK common stock for each share of Teche Holding Company common stock outstanding, subject to certain market price adjustments provided for in the merger agreement, the release stated.
All unexercised Teche Holding Company stock options will be cashed out and shares of restricted stock will become fully vested in connection with the transaction.
If the transaction closes on June 30, Teche Holding Company would have an aggregate of about 2.234 million shares, assuming the full exercise of then vested options and full issuance of the restricted shares, the release stated.