IBERIABANK Corporation Announces Acquisition of Cameron Bancshares, Inc.
LAFAYETTE, La., March 11, 2011 /PRNewswire/ —IBERIABANK Corporation (Nasdaq: IBKC) (“IBERIABANK”), holding company of the 123-year-old IBERIABANK (http://www.iberiabank.com) and Cameron Bancshares, Inc. (“Cameron”), the holding company of Lake Charles, Louisiana-based Cameron State Bank (http://www.csbbanking.com) announced today the signing of a definitive agreement for IBERIABANK to acquire Cameron in a stock-for-stock exchange. The transaction has been approved by the Board of Directors of each company and is expected to close in the second quarter of 2011. Completion of the transaction is subject to customary closing conditions, including the receipt of required regulatory approvals and the approval of Cameron’s shareholders.
Roy M. Raftery, Jr., President and Chief Executive Officer of Cameron, will be named Chairman of the Lake Charles region for IBERIABANK after the acquisition is consummated.
“We are excited to join forces with Cameron State Bank, the bank of choice in the Lake Charles region,” said Daryl G. Byrd, President and Chief Executive Officer of IBERIABANK. He continued, “Cameron has an enviable distribution network of 22 offices and 48 ATMs, a very successful operating strategy, as well as outstanding clients and associates. This combination provides interesting growth opportunities for the shareholders of both companies.”
Byrd continued: “We commend Roy Raftery and his team for building a tremendous franchise, with solid asset quality, capital strength, and exceptional earnings. We believe this acquisition assists us in filling-out our Louisiana franchise. We are very proud of our Louisiana roots and are soon to become the oldest and largest Louisiana-based bank.”
“Cameron State Bank started in 1966 in Cameron, Louisiana and has grown to become the most convenient and customer-focused bank throughout the Lake Charles area,” said Raftery. “Our clients will have the added convenience of having access to 72 banking offices and 102 ATMs in Louisiana, and diversified banking, mortgage, title insurance, trust, and wealth management operations across a 12-state footprint. Our history of strength, growth, and profitability are a terrific fit with IBERIABANK and we expect a very smooth transition. The client-focus of our respective companies is very compelling.”
Under the terms of the agreement, shareholders of Cameron will receive 3.464 shares of IBERIABANK common stock per share of Cameron common stock, subject to certain adjustments. The stock issuance is valued at approximately $133 million in the aggregate, based on 688,404 shares of Cameron common stock outstanding. Cameron had no holding company debt outstanding at year-end 2010.
IBERIABANK expects the transaction to be accretive to earnings per share approximately 3% to 5%, assuming synergies are fully phased in and excluding estimated one-time and merger-related costs of approximately $11 million on a pre-tax basis. Estimated synergies include annual expense savings of approximately $6 million, pre-tax, to be fully achieved by the second half of 2012. IBERIABANK estimates approximately $46 million in goodwill will be created with this acquisition. The estimated internal rate of return for the transaction is above 20%, well exceeding IBERIABANK’s cost of capital.
Additional Information
Cameron was advised by the investment banking firm Sheshunoff & Co. Investment Banking and the law firm of Gordon Arata McCollam Duplantis & Eagan, LLC. IBERIABANK was advised by the law firm of Jones, Walker, Waechter, Poitevent, Carrere & Denegre, L.L.P.
About Cameron Bancshares, Inc.
Cameron is a bank holding company with 22 bank branch offices in the Lake Charles area, which includes Calcasieu, Cameron, and Allen parishes in Louisiana. As of December 31, 2010, Cameron had:
• Total Assets $706 Million
• Total Investment Securities $230 Million
• Total Loans $408 Million
• Total Deposits $575 Million
• Shareholders’ Equity $77 Million
• Tangible Common Equity Ratio 10.96%
• Nonperforming Assets $9.5 Million (1.34% of Total Assets)
• Noninterest Bearing Deposits $166 Million (29% of Total Deposits)
Cameron had no brokered deposits or stock options outstanding, and 212 full-time equivalent employees at year-end 2010. For the year ended December 31, 2010, Cameron reported net income of $9.3 million, or a 1.29% return on average assets (“ROA”), with a $2.4 million loan loss provision. For the fourth quarter 2010, Cameron earned $2.6 million, or a 1.46% ROA, with a $0.8 million loan loss provision. In the fourth quarter of 2010, Cameron had a 4.37% net interest margin with a 0.77% cost of funds.
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