Iberiabank Corp. in Lafayette, La., announced Monday that it would buy the $76 million-asset Alliance Bank of Baton Rouge for $17 million in stock.
The deal, expected to close in the first quarter, would expand the $2.1 billion-asset Iberiabank, the third-largest banking company based in Louisiana, into the Baton Rouge market, which it has been looking to enter for some time. Alliance, with one branch, was founded in 1999 and now has a 1% market share there.
The agreement calls for Iberiabank to exchange 0.3 share of its stock for each Alliance share. The price would be equal to 1.6 times Alliance's book value and 33.3 times its earnings for the last four quarters.
Iberiabank, with roughly 40 branches in Louisiana, said that it expects to take a one-time charge of $600,000 related to the acquisition, but that this charge would be offset by projected cost savings and revenue improvement.
