UPDATED: IberiaBank Buys Pulaski Bank in $130 Million Deal

by Lance Turner  on Wednesday, Aug. 9, 2006 8:21 am  

Jim East, left, chairman of Pulaski Investment Corp., talks to Robert Head, CEO of IberiaBank in Arkansas.

IberiaBank Corp. of Lafayette, La., which two weeks ago purchased Pocahontas Bancorp of Jonesboro, said Wednesday that it is buying Pulaski Investment Corp., the holding company for Pulaski Bank and Trust of Little Rock in a deal worth $130 million.

The deal is expected to be close before the end of the year and is subject to regulatory and Pulaski shareholder approvals - a given since the James C. East family that announced the deal owns 92 percent of Pulaski stock. (See related story.)

IberiaBank said the branches will continue to operate under the Pulaski Bank & Trust, Pulaski Mortgage Co. and Lenders Title Co. names. The company's boards of directors will form Iberiabank's advisory board for central Arkansas.

Shares of IberiaBank (Nasdaq: %%IBKC%%) were trading at $58.52 on Wednesday after closing at $58.60 on Tuesday.

Another Deal

"We are thrilled to be announcing another exciting partnership in Arkansas," Daryl G. Byrd, IberiaBank's president and CEO, said in a news release. "Pulaski is an impressive organization operating in dynamic and rapidly growing markets. This is a tremendous opportunity to solidify our presence in Arkansas, particularly in the central and northwest regions of the state. We look forward to having Jim East join our corporate board of directors at the completion of this transaction and are excited about the leadership his management team can provide in Arkansas and their regional and national businesses."

Under terms of the deal, Pulaski shareholders will receive cash equal to $26.6464 for each outstanding share of Pulaski common stock. Pulaski shareholders will also receive 0.2274 share of IberiaBank common stock and IberiaBank common stock equal to $13.323 for each outstanding share of Pulaski common stock.

The price is a 3.2 times Pulaski Investment's book value.

Pulaski Bank

Pulaski has 2.4 million shares outstanding and no stock options outstanding. The $130 million deal value is based on the closing price of IberiaBank's common stock on Tuesday of $58.60 per share.

Founded in 1956, Pulaski Bank has 11 bank offices in the Little Rock area, and will have two open in the Memphis area by late September. It also has two bank loan production offices, 22 mortgage production offices and 20 title insurance company offices. As of June 30, Pulaski had total assets of $493 million, loans of $378 million and deposits of $393 million.

IberiaBank, with $3 billion in assets, is in acquisition mode at the same time that smaller publicly traded companies like Pocahontas Bancorp are struggling with the expense of federal accounting requirements.

IberiaBank is the second-largest bank holding company in Louisiana. Established in 1887, IberiaBank operates 48 offices in Louisiana.

Total assets as of March 31 were $2.9 billion compared with $2.7 billion in the same period in 2005. Its net income also rose from $7.9 million for the period that ended March 31, 2005, to $8.9 million in the same period in 2006.

More on IberiaBank

• Click here for more on what the East family gets out of the deal and how the deal came about.

• Click here for Arkansas Business' cover story this week on IberiaBank's Pocahontas bank purchase.

• Click here for more from Jeff Hankins on Pulaski Bank's sweet deal.

• Click here for IberiaBank's news release.



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