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Teche Holding Company shareholders will approve or deny the company’s merge with IberiaBank Corporation at a shareholders meeting on May 28 in New Iberia.
The merger, which was announced in January, would give Teche shareholders access to $161 million worth of IberiaBank stock.
Calculated from IberiaBank’s closing price on Jan. 10, Teche shareholders are eligible for 1.162 shares of IberiaBank for each share of Teche stock.
IberiaBank officials expect the deal to finalize during the second quarter.
Patrick Little, chairman, president and chief executive officer of Teche, said the fusion with IberiaBank adds value for the smaller company’s shareholders.
“We are pleased to team up with such a high-quality banking partner,” Little said in a press release. “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.”
Little said Teche has experienced many challenges and opportunities throughout the past 80 years, and the company’s decision to go public 19 years ago produced successful financial performance for the institution.
Daryl Byrd, president and chief executive officer of IberiaBank Corporation, said the merger reflects the resilience put forth by each company during “interest rate upheavals and banking panics.”
Each organization started less than 30 miles apart as mutual thrift institutions and later transitioned to stocks and commercial bank charters.
“Our respective holding companies were formed less than two weeks apart and our initial public offerings were also separated by less than two weeks,” Byrd said in a release. “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 customer service.”
At the meeting on May 28, shareholders will also vote on a nonbinding proposal to approve the compensation of Teche executives to coincide with the merger.
The proposal estimates for Little to receive almost $2.5 million, which includes $435,000 from IberiaBank for agreeing not to work for a competitor.
Ross Little, senior executive officer and secretary for Teche, would be compensated $1.3 million, which includes $228,000 from IberiaBank for also agreeing not to work for a competitor.
J.L. Chauvin, senior vice president, treasurer and chief financial officer for IberiaBank, would continue to serve in his capacities and receive almost $1.8 million.
Teche’s total consolidated assets are worth $857 million with 20 commercial bank offices in south Louisiana, and three offices in the Houma-Thibodaux area.
IberiaBank Corporation has a market capitalization of approximately $1.8 billion with 168 bank branch offices in Louisiana, Arkansas, Alabama, Texas and Florida.
“This combination is consistent with our stated efforts to improve our operating efficiency, appropriately deploy our capital and enhance shareholder returns,” Byrd said. “We believe this transaction is a ‘win-win’ scenario for our respective shareholders and the communities we serve.”
The IberiaBank location on St. Charles Street in Houma closed on August 23, 2013 after the bank decided to focus its efforts where there were more existing locations. IberiaBank officials stated in a previous article that the Acadiana bank will return to the Houma market at one of the acquired Teche Bank locations.
