IberiaBank Corp. is acquiring Teche Holding Co., according to a press release issued Monday morning.
The merger is expected to receive final approval in the second quarter of 2014.
“Teche and IberiaBank share a common heritage,” says IberiaBank President and CEO Daryl Byrd in a prepared statement. “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 we also separated by less than two weeks. ... Our companies not only survived many interest rate upheavals and banking panics, but prospered throughout those cycles.”
|IberiaBank's Daryl Byrd|
Byrd continues, “This combination is consistent with our stated efforts to improve our operating efficiency, appropriately deploy our capital, and enhance shareholder returns.”
According to the press release, shareholders of Teche, which is the holding company for Teche Federal Bank, will receive 1.162 shares of IberiaBank’s common stock for each share of outstanding Teche common stock. Based on IberiaBank’s Jan. 10 closing stock price of $62.10, the merger has an estimated value of $161 million, the release notes, which translates into a 32 percent increase over Teche’s Jan. 10 closing stock price of $54.40.
Commenting on the deal, Teche Chairman, President and CEO Patrick Little, in a prepared statement, says:
"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.
"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."
|Teche Federal's Patrick Little|
Based on data from June 30, the combined company will top the Lafayette MSA — which includes Lafayette and St. Martin parishes — holding 27.3 percent of the area’s deposit market share.
For the fiscal year ending Sept. 30, Teche had 256 full-time employees, 20 commercial bank branches operating in South Louisiana and a net income of $8.7 million.
Check back with ABiz later today for more on this story.