First Horizon National’s pending merger with Iberiabank could serve as a blueprint for other large mergers of similar-size banks.
The companies agreed to combine Monday in a deal valued at about $3.9 billion. The merger — the second-biggest bank deal announced this year — will create a $75 billion-asset regional that executives said should have the necessary scale to build a digital platform to compete against deep-pocketed megabanks.
“We as an industry are going through a great deal of transformation,” Bryan Jordan, chairman, president and CEO of the $43.7 billion-asset First Horizon in Memphis, Tenn., said in an interview. “Together, our two banks will be in an even stronger position to make the investments in technology and services to address the future of banking.”
The pitch sounds very familiar to the one offered by BB&T and SunTrust when they announced their megamerger in February. Executives at those companies have repeatedly stated that their deal will allow them to beef up their tech offerings to vie with competitors such as JPMorgan Chase and Bank of America.