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First Horizon, IBERIABANK To Combine In An All-stock Merger Of Equals

First Horizon National Corp. (FHN) and IBERIABANK Corp. (IBKC) announced Monday that they have agreed to combine the companies in an all-stock merger of equals to create a leading regional financial services company with significant scale.

The combined organization will have $75 billion in assets, $57 billion in deposits and $55 billion in loans, with an expansive eleven-state reach in high-growth, attractive markets across the combined footprint.

The merger is expected to close in the second quarter of 2020, subject to satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval by the shareholders of each company.

Under the terms of the agreement, which was unanimously approved by the Boards of Directors of both companies, the combined holding company and bank will operate under the First Horizon name and will be headquartered in Memphis, Tennessee. The combined company's regional banking headquarters will be located in New Orleans, Louisiana.

The deal will see IBERIABANK shareholders receiving 4.584 shares of First Horizon for each IBERIABANK share they own. First Horizon shareholders will own 56 percent and IBERIABANK shareholders will own 44 percent of the combined company.

Additionally, IBERIABANK shareholders will receive a 43 percent increase in their dividend after consummation of the transaction, based upon each company's current dividend per share.

The transaction is projected to deliver about 16 percent EPS accretion to First Horizon and about 22 percent EPS accretion to IBERIABANK by year-end 2021. The transaction is also expected to deliver approximately $170 million in pre-tax cost synergies.

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