Iberiabank Corp. (IBKC) in Lafayette, La., has agreed to buy First Private Holdings in Dallas.
Iberiabank will pay $64 million in stock, or $17.18 a share, for the $357 million-asset First Private. The $13.4 billion-asset Iberiabank said the transaction value equates to 1.64 times First Private's tangible book value at Dec. 31. The deal is expected to close in the second quarter.
First Private has "done a marvelous job successfully navigating the bank through a very challenging economic period," Daryl Byrd, Iberiabank president and chief executive, said in a press release Tuesday. "The breadth and depth of their banking experience and skill is evident in the feat of First Private reporting no loans past due 90 days or more, net chargeoffs, or nonperforming loans since the bank's inception in 2007."
The acquisition will likely dilute Iberiabank's fully diluted earnings per share by 1% in 2015 before becoming accretive by 2% a year later. Iberiabank said it expects to cut costs equal to 7% of First Private's annual expenses by the first quarter of 2015. The company also said it will incur about $5 million in pretax merger-related expenses tied to the deal.
Last month, Iberiabank agreed to buy Teche Holding (TSH) in New Iberia, La., for $161 million.
First Private was advised by Macquarie Capital Haynie Rake Repass & Lowry. Iberiabank received legal advice from Jones Walker.