IBERIABANK Corp. To Buy Teche Holding

(RTTNews) - IBERIABAN Corp. (IBKC), the holding company of IBERIABANK, said Monday that it has agreed to buy Teche Holding Co. (TSH), the holding company of New Iberia, Louisiana-based Teche Federal Bank, through merger.

The deal, which has been approved by the Board of Directors of each company, is expected to close in the second quarter of 2014.

Under the terms of the deal, Teche shareholders will receive 1.162 shares of IBKC common stock for each share of Teche common stock outstanding, subject to certain market price adjustments provided for in the merger agreement. All unexercised Teche stock options, whether or not vested, will be cashed out and shares of restricted stock will become fully vested in connection with the transaction.

If the deal closes at June 30, 2014,Teche would have an aggregate of about 2,234,000 shares, assuming the full exercise of then vested options and full issuance of the restricted shares.

Based on IBKC's closing stock price on January 10 of $62.10, the deal would have an aggregate estimated pro forma value of $161 million, or $72.16 per Teche share, equal to a 32% increase over the closing price for Teche common stock of $54.50 per share on January 10.

IBKC currently estimates annual pre-tax expense reductions associated with deal will be in excess of 50% of Teche's annual expenses in fiscal 2013.  Assuming the deal is completed in the second quarter of 2014, the expense savings are estimated to be fully achieved by the first quarter of 2015.

The deal is expected to be accretive to IBKC's fully diluted earnings per share by about 6%, assuming synergies are fully phased in and excluding estimated acquisition and conversion related costs of abouut $22 million on a pre-tax basis.