Lafayette-based IberiaBank Corp.’s acquisition of Teche Holding Co. in New Iberia was approved Thursday by Teche shareholders in a special meeting.
Under a Jan 12 merger agreement, Teche shareholders will receive 1.162 shares of common stock of IberiaBank Corp. for each share of Teche common stock. Teche shareholders would receive about $161 million worth of IberiaBank stock, based on IberiaBank’s closing price Jan. 10, the last trading day before the deal was announced. Teche is the holding company for Teche Federal Bank, which operates 20 offices in St. Mary, Iberia, Lafayette, St. Martin, Terrebonne, Lafourche, St. Landry and East Baton Rouge parishes.
IberiaBank officials have said they expect the merger to close during the second quarter.
Teche shareholders also approved on Thursday a nonbinding proposal for the compensation that Teche executives may be paid in connection with the merger.
Under the proposal, Chairman, President and Chief Executive Officer Patrick O. Little would receive close to $2.5 million. The total includes $435,000 from IberiaBank for agreeing not to work for a direct rival.
Teche Senior Executive Officer and Secretary W. Ross Little Jr. would receive about $1.3 million, including $228,000 from IberiaBank for agreeing not to work for a rival firm.
Senior Vice President, Treasurer and Chief Financial Office J.L. Chauvin, who will continue working for IberiaBank after the merger, would receive close to $1.8 million.
IberiaBank Corp. plans to lay off 97 workers at Teche Federal Bank’s nearby corporate headquarters in New Iberia, with more cuts expected later from overlapping branch locations.
Eight of Teche’s 20 branches lie within a mile of an existing IberiaBank branch, according to an investor presentation filed with the U.S. Securities and Exchange Commission.
The overlap affects all four of Teche’s branches in Lafayette, all three in New Iberia and one of three in Baton Rouge.
At the time the merger was announced, IberiaBank officials said the deal would generate pretax savings of $19 million a year, with $11.4 million of that from reductions in employee compensation and benefits.