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IBERIABANK, Gibraltar Private Bank mulled deal as early as 2014

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IBERIABANK, Gibraltar Private Bank mulled deal as early as 2014

The deal between IBERIABANK Corp. and Coral Gables, Fla.-based Gibraltar Private Bank & Trust Co. was signed in October, but the parties explored a deal as early as 2014.

Sandler O'Neill & Partners LP, on behalf of Gibraltar, on May 9, 2014, entered into a confidentiality and nondisclosure agreement with IBERIABANK regarding a potential combination with Gibraltar. IBERIABANK decided not to proceed with full due diligence at that time, citing strategic priorities and other considerations. Gibraltar, however, kept in touch with the Lafayette, La.-based company.

Three years later, on June 26, the Office of the Comptroller of the Currency terminated its consent order with Gibraltar. Gibraltar and IBERIABANK then engaged in further discussions regarding a potential business combination.

On Aug. 17, IBERIABANK proposed to acquire Gibraltar for an equity value ranging from $230 million to $250 million. This consideration is to be paid in the form of IBERIABANK common stock and with a fixed exchange ratio, except to the extent that IBERIABANK's common stock price deviates by 15% or more from the agreed-upon value, in which case the exchange ratio would fluctuate and the value to Gibraltar's stockholders would become fixed.

The deal process, including the conduct of due diligence, continued. The parties on Oct. 19 signed the merger agreement, which includes a $9.2 million termination fee payable to IBERIABANK.