SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 10, 2011
IBERIABANK CORPORATION
(Exact name of Registrant as Specified in Charter)
Louisiana | 0-25756 | 72-1280718 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
200 West Congress Street, Lafayette, Louisiana 70501
(Address of Principal Executive Offices)
(337) 521-4003
Registrants telephone number, including area code
NOT APPLICABLE
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
x | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 1.01 | Entry into a Material Definitive Agreement |
On March 11, 2011, IBERIABANK Corporation (IBKC) and Cameron Bancshares, Inc. (CMBC) announced that CMBC would merge with and into IBKC pursuant to an Agreement and Plan of Merger (the Merger Agreement) dated as of March 10, 2011. The transaction, which was approved by the boards of directors of both companies, is subject to normal regulatory approvals and the approval of CMBCs shareholders.
Pursuant to the Merger Agreement, CMBC will be acquired by IBKC and each issued and outstanding share of CMBC common stock will be converted into 3.464 shares of IBKC common stock, subject to possible subsequent adjustment for the market value of IBKC common stock.
The Merger Agreement and related press release are filed as Exhibits 2.1 and 99.1, respectively, to this Report and are incorporated herein by reference.
Item 7.01 | Regulation FD Disclosure |
Presentation by IBKC management regarding proposed acquisition of CMBC. Exhibit 99.2 to this Report is incorporated herein by reference.
Item 9.01 | Financial Statements and Exhibits |
Exhibit 2.1 - |
Agreement and Plan of Merger, dated as of March 10, 2011, between IBKC and CMBC. | |
Exhibit 99.1 - |
Press Release dated March 11, 2011, announcing Merger Agreement with CMBC. | |
Exhibit 99.2 - |
Presentation Outline dated March 11, 2011. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
IBERIABANK CORPORATION | ||||||
DATE: March 11, 2011 | By: | /s/ Daryl G. Byrd | ||||
Daryl G. Byrd | ||||||
President and Chief Executive Officer |
EXHIBIT INDEX
Exhibit Number |
||
2.1 | Agreement and Plan of Merger, dated as of March 10, 2011 between IBKC and CMBC. | |
99.1 | Press Release dated March 11, 2011, announcing Merger Agreement with CMBC. | |
99.2 | Presentation Outline dated March 11, 2011. |
Exhibit 2.1
AGREEMENT AND PLAN OF MERGER
This Agreement and Plan of Merger (Agreement) is dated as of March 10, 2011, between Cameron Bancshares, Inc. (CMBC), a bank holding company with principal offices in Lake Charles, Louisiana, and IBERIABANK Corporation (IBKC), a bank holding company with principal offices in Lafayette, Louisiana.
RECITALS
1. The Board of Directors of each party hereto believes that the transactions described in this Agreement are in the best interests of such party and its shareholders.
2. By virtue of the reorganization that is effectuated by this Agreement, CMBC will be merged with and into IBKC, and except as provided in this Agreement, the then outstanding shares of CMBC Common Stock will be converted into shares of IBKC Common Stock.
3. The Merger is subject to prior CMBC shareholder and regulatory approvals and the prior satisfaction of certain other conditions set forth in this Agreement.
4. The parties hereto intend that the reorganization contemplated by this Agreement qualify for federal income tax purposes as a tax-free reorganization under the Internal Revenue Code of 1986, as amended.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and of the mutual warranties, representations, covenants and agreements set forth herein, and for other good and valuable consideration the receipt and sufficiency of which are acknowledged, the parties to this Agreement agree as follows:
SECTION I.
DEFINITIONS
Except as may otherwise be provided in this Agreement, the capitalized terms set forth below shall have the following respective meanings, in their singular or plural forms as applicable:
1.1 Acquisition Proposal shall mean any tender offer or exchange offer or any proposal for a merger, acquisition of all of the capital stock or assets of, share exchange, or other business combination involving the acquisition of CMBC or any of its Subsidiaries or the acquisition of a substantial equity interest in, or a substantial portion of the assets of, CMBC or any of its Subsidiaries, or any public announcement of a proposal, plan or intention to do any of the foregoing or any agreement to engage in any of the foregoing, other than the transactions contemplated under this Agreement.
1.2 Agreement this Agreement and Plan of Merger, including any amendment hereto.
1.3 LBCL the Louisiana Business Corporation Law.
1.4 BHC Act the federal Bank Holding Company Act of 1956.
1.5 Business Day Monday through Friday of each week, except a legal holiday recognized as such by the U.S. Government or any day on which banking institutions in the state of Louisiana is authorized or obligated to close.
1.6 Certificates the certificates representing shares of CMBC Common Stock on or prior to the Effective Date.
1.7 Closing the closing of the transactions contemplated hereunder as described in Section 3.1 of this Agreement.
1.8 CMBC Cameron Bancshares, Inc., a Louisiana corporation.
1.9 CMBC Common Stock the common stock, par value $5.00 per share, of CMBC.
1.10 Code the Internal Revenue Code of 1986, as amended.
1.11 CSB Cameron State Bank, a Louisiana banking corporation and a wholly owned subsidiary of CMBC.
1.12 Effective Date the date and time at which the Merger becomes effective, as described in Section 3.2 of this Agreement.
1.13 ERISA the Employee Retirement Income Security Act of 1974, as amended.
1.14 Exchange Agent IBKCs stock transfer agent or such other third party experienced in the stock transfer business reasonably acceptable to CMBC which shall act as the exchange agent pursuant to Section 2.2(f) hereof.
1.15 Exchange Ratio means shares of IBKC common stock, as may adjusted in accordance with Section 2.2(a) of this Agreement.
1.16 Federal Reserve the Board of Governors of the Federal Reserve System.
1.17 Financial Statements (i) the unaudited consolidated balance sheets (including related notes and schedules, if any) of a Warrantor as of September 30, 2010 and the audited consolidated balance sheets (including related notes and schedules, if any) of CMBC as of December 31, 2009 and of IBKC as of December 31, 2010, and (ii) the related consolidated statements of income (or statements of income and comprehensive income), changes in shareholders equity, and cash flows (including related notes and schedules, if any) for the respective periods then ended.
1.18 GAAP generally accepted accounting principles in the United States of America.
1.19 IBERIABANK IBERIABANK, a Louisiana banking corporation and a wholly owned subsidiary of IBKC.
1.20 IBKC IBERIABANK Corporation, a Louisiana corporation.
1.21 IBKC Common Stock the common stock, par value $1.00 per share, of IBKC.
1.22 Market Value the average of the daily weighted average trading prices of the IBKC Common Stock on the NASDAQ Global Select Market (as calculated by Bloomberg Screen AQR) on each of the fifteen (15) trading days ending one (1) Business Day prior to the Effective Date.
1.23 Material Adverse Effect with respect to a Warrantor, means any change, effect, event, occurrence or state of facts that (a) is materially adverse to the business, financial condition or results of operations of such Warrantor and its Subsidiaries taken as a whole, or (b) materially and adversely affects the ability of the Warrantor to perform its obligations hereunder or materially and adversely affects the timely consummation of the transactions contemplated hereby; provided, however, that Material Adverse Effect shall not be deemed to include the impact of (i) any change in the value of the securities portfolio or loan portfolio of the Warrantor, whether held
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as available for sale or held to maturity; (ii) any change, effect, event or occurrence relating to the announcement or performance of this Agreement and the transactions contemplated hereby, including the expenses incurred by the Warrantor in consummating the transactions contemplated by this Agreement; (iii) with respect to CMBC and its Subsidiaries, any change, effect, event or occurrence resulting from any action or omission taken with the prior consent of IBKC; (iv) any change in banking, or other laws, rules or regulations of general applicability or interpretations thereof by courts or governmental authorities; (v) any change in GAAP or regulatory accounting requirements applicable to banks or their holding companies generally; and (vi) any change in political conditions or in general economic or market conditions affecting banks or their holding companies generally except to the extent that such changes in general economic or market conditions have a materially disproportionate adverse effect on the Warrantor; or (vii) the payment of any amounts due to, or the provision of any other benefits to, any directors, officers or employees of CMBC and its Subsidiaries pursuant to employment agreements, plans and other arrangements described in this Agreement.
1.24 Merger the merger of CMBC with and into IBKC.
1.25 Merger Agreement the Merger Agreement, substantially in the form attached hereto as Exhibit I, providing for the Merger.
1.26 Merger Consideration the aggregate of the IBKC Common Stock plus that amount of cash paid in lieu of issuing any fractional share of IBKC Common Stock which would otherwise be distributable to a CMBC shareholder as determined under Section 2.2 hereof.
1.27 NASDAQ Close the close of trading on the NASDAQ Global Select Market pursuant to applicable NASDAQ Stock Market rules.
1.28 1933 Act the Securities Act of 1933, as amended.
1.29 1934 Act the Securities Exchange Act of 1934, as amended.
1.30 Person any individual, bank, corporation, partnership, association, joint stock company, business trust, limited liability company or unincorporated association.
1.31 Proxy Statement the proxy or information statement to be used by CMBC in connection with the Shareholders Meeting to consider and vote upon the transactions contemplated by this Agreement, together with any and all amendments or supplements thereto.
1.32 Registration Statement the Registration Statement on Form S-4 (or other appropriate form) and all amendments and supplements thereto filed with the SEC by IBKC under the 1933 Act in connection with the transactions contemplated by this Agreement.
1.33 Regulatory Authorities collectively, any federal or state banking, insurance, securities or other governmental or regulatory authority whose approval is necessary to consummate the transactions contemplated by this Agreement.
1.34 SEC the United States Securities and Exchange Commission.
1.35 SEC Documents all reports, proxy statements, registration statements and other documents filed by any Warrantor pursuant to the Securities Laws.
1.36 Securities Laws the 1933 Act, the 1934 Act, the Investment Company Act of 1940, the Investment Advisors Act of 1940, the Trust Indenture Act of 1939, and the rules and regulations of the SEC under each of such acts.
1.37 Shareholders Meeting the meeting of the shareholders of CMBC to be held pursuant to Section 7.1(b) of this Agreement, including any adjournments thereof.
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1.38 Subsidiaries all those corporations, banks, savings banks, associations and other entities of which the Person in question owns or controls 100% or more of the outstanding equity securities either directly or through an unbroken chain of entities as to each of which 100% or more of the outstanding equity securities is owned directly or indirectly by such Person; provided, however, there shall not be included any such entity acquired in good faith through foreclosure, or any such entity to the extent that the equity securities of such entity are owned or controlled in a bona fide fiduciary capacity, through a small business investment corporation or otherwise as an investment by an entity that invests in unaffiliated companies in the ordinary course of business.
1.39 Warrantor IBKC or CMBC, as the case may be.
1.40 Warrantor Benefit Plans the benefit plans of IBKC or CMBC, as defined in Section 5.11(a) of this Agreement and as the context shall require, which shall depend on whether the Warrantor is IBKC or CMBC.
1.41 Warrantor Common Stock the IBKC Common Stock or the CMBC Common Stock, as the context shall require, which shall depend on whether the Warrantor is IBKC or CMBC.
1.42 Warrantor Companies collectively, CMBC and all CMBC Subsidiaries or, collectively, IBKC and all IBKC Subsidiaries, as the context shall require.
1.43 Warrantor Financial Statements the Financial Statements of Warrantor.
1.44 Warrantors knowledge the actual knowledge of the executive management of such Warrantor after due inquiry.
1.45 Warrantor Real Property the real property owned by IBKC, and the real property owned by CMBC a list of which is set forth on Schedule 1.45 attached hereto, and used in the conduct of its ordinary course of business as a financial institution.
1.46 Warrantor Subsidiaries the Subsidiaries of CMBC or IBKC, as the context shall require, which shall include the Subsidiaries described in Section 1.38 of this Agreement and any corporation, bank, savings bank, association or other entity that becomes or is acquired as a Subsidiary of a Warrantor in the future.
Other terms are defined as set forth below.
SECTION II.
CERTAIN TRANSACTIONS AND TERMS OF MERGER
2.1 Merger. Subject to the terms and conditions of this Agreement, at the Effective Date, CMBC will be merged with and into IBKC in accordance with the Merger Agreement, this Agreement, and the LBCL.
2.2 Conversion of CMBC Common Stock.
(a) Except for shares of CMBC Common Stock as to which dissenters rights have been perfected and not withdrawn or otherwise forfeited (Dissenters Shares) under the LBCL, and as otherwise provided herein, at the Effective Date each outstanding share of CMBC Common Stock will be converted into the Merger Consideration pursuant to the Exchange Ratio set forth below:
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(i) | 3.464 shares of IBKC Common Stock (to the nearest thousandth of a share) to be exchanged for each share of CMBC Common Stock and cash (without interest) payable with respect to any fractional share of IBKC Common Stock (as determined below); or |
(ii) | if the Market Value is greater than $61.81 per share, the adjusted Exchange Ratio shall equal the quotient (to the nearest thousandth of a share) obtained by dividing $214.11 by the Market Value; or |
(iii) | if the Market Value is less than $50.57 per share, the adjusted Exchange Ratio shall equal the quotient (to the nearest thousandth of a share) obtained by dividing $175.17 by the Market Value; plus |
(iv) | in lieu of issuing any fractional share of IBKC Common Stock which would otherwise be distributable to a CMBC shareholder as determined following application of Section 2.2(a)(i), (a)(ii) or (a)(iii) above, each holder of CMBC Common Stock who would otherwise be entitled thereto, after aggregating into whole shares all fractional shares of IBKC Common Stock to which such holder is entitled by virtue of the Merger, upon surrender of the certificate(s) which represented CMBC Common Stock, will receive, without interest, cash equal to such fractional share multiplied by the Market Value. |
(b) Shares of CMBC Common Stock that are held by CMBC and any CMBC Subsidiary (other than shares held in a fiduciary capacity) shall not be considered to be outstanding and shall be cancelled (and not converted) by virtue of the Merger at the Effective Date and without any further action by any party.
(c) If, before the Effective Date, IBKC should split, reclassify, recapitalize or combine the IBKC Common Stock, or pay a stock dividend in IBKC Common Stock, or otherwise change the IBKC Common Stock into any other securities, or make any other dividend or distribution in respect of the IBKC Common Stock (other than normal cash dividends consistent with past practices as the same may be adjusted from time to time in accordance with or not in violation of this Agreement), and the record date therefore is prior to the Effective Date, then the Exchange Ratios will be appropriately and proportionately adjusted to reflect such split, reclassification, recapitalization, combination, stock dividend or other distribution or change.
(d) No later than the Effective Date, IBKC shall deposit, or shall cause to be deposited, with the Exchange Agent for the benefit of the holders of CMBC Common Stock, for exchange in accordance with this Section 2.2, certificates and cash (in immediately available funds) representing the Merger Consideration to be paid. After the Effective Date, each holder of CMBC Common Stock (other than Dissenters Shares), upon surrender of such holders Certificates in accordance herewith, will be entitled promptly to receive the Merger Consideration into which such holders shares have been converted. Until then, each Certificate for CMBC Common Stock will represent the Merger Consideration into which the shares of CMBC Common Stock represented thereby were converted, except that IBKC may refuse to pay any dividend or other distribution payable to the holder of any unsurrendered Certificate for CMBC Common Stock (without any interest thereon) until surrender, following which such dividend or other distribution will be promptly paid, or if such dividend or distribution has reverted in full ownership to IBKC under its Articles of Incorporation. Whether or not a Certificate for CMBC Common Stock is surrendered, after the Effective Date it will not represent any interest in any Person other than IBKC.
(e) Prior to the Effective Date, IBKC or the Exchange Agent shall mail to each holder of record of a Certificate or Certificates a form of letter of transmittal (which shall specify that delivery shall be effected, and risk of loss and title to the Certificates shall pass, only upon delivery of the Certificates, or affidavits of loss in lieu thereof in form and substance reasonably satisfactory to the Exchange Agent, to the Exchange Agent) and instructions for use in effecting the surrender of the Certificates in exchange for the Merger Consideration into which the shares of CMBC Common Stock represented by such Certificate or Certificates shall have been converted pursuant to this Section 2.2. Upon proper surrender of a Certificate for exchange and cancellation to the Exchange Agent, together with a properly completed letter of transmittal, duly executed, the holder of such Certificate shall be entitled to receive promptly in exchange therefore (i) a certificate representing that number of shares of IBKC Common Stock to which such former holder of CMBC Common Stock shall have become entitled pursuant to this
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Agreement and (ii) a check representing that amount of cash to which such former holder of CMBC Common Stock shall have become entitled pursuant to this Agreement.
(f) In the event any Certificate shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the person claiming such Certificate to be lost, stolen or destroyed and the posting by such person of a bond in such amount as IBKC may reasonably direct as indemnity against any claim that may be made against it with respect to such Certificate, the Exchange Agent will issue in exchange for such lost, stolen or destroyed Certificate the Merger Consideration deliverable in respect thereof. CMBC may, after prior notice to IBKC, issue replacement Certificates for any lost, stolen or destroyed Certificates prior to the Effective Date upon receipt of affidavits of loss and/or other documents reasonably satisfactory to CMBC, without, if appropriate, the posting of a bond and subject to Section 6.1(c).
(g) If the Person surrendering a Certificate and signing the accompanying letter of transmittal is not the record holder thereof, then it shall be a condition of the payment of the Merger Consideration that: (i) such Certificate is properly endorsed to such Person or is accompanied by appropriate stock powers, in either case signed exactly as the name of the record holder appears on such Certificate, and is otherwise in proper form for transfer, or is accompanied by appropriate evidence of the authority of the Person surrendering such Certificate and signing the letter of transmittal to do so on behalf of the record holder; and (ii) the person requesting such exchange shall pay to the Exchange Agent in advance any transfer or other similar taxes required by reason of the payment to a Person other than the registered holder of the Certificate surrendered, or required for any other reason, or shall establish to the satisfaction of the Exchange Agent that such tax has been paid or is not payable.
(h) If necessary, IBKC shall prepare and file with the SEC, promptly after the Effective Date, a registration statement on Form S-8 (or other appropriate form) registering a number of shares of IBKC Common Stock necessary to exchange shares of CMBC Common Stock held in the Plan (as defined below) into shares of IBKC Common Stock.
2.3 Employee Agreements.
(a) Schedule 2.3(a) sets forth a list of all of the CMBC employment agreements (collectively, the Employment Agreements) between CMBC (or its applicable Subsidiary), and their respective employees, and the estimated amounts to be paid by CMBC (or its applicable Subsidiary) to the employees as set forth on Schedule 2.3(a) assuming such Employment Agreements are terminated at or immediately prior to the Effective Date. Upon the request of IBKC, which request shall be provided no less than twenty (20) days prior to the Effective Date, CMBC (or its applicable Subsidiary) shall use its best efforts to terminate the Employment Agreements listed in Schedule 2.3(a) that are designated in writing by IBKC, provided that the Employment and Change of Control Agreement identified as Item Number 1 on Schedule 2.3(a) (the Employment COC Agreement) will not be designated by IBKC as an agreement to be terminated. At or prior to the Effective Date, upon such termination, CMBC shall pay to the employees listed on Schedule 2.3(a) whose Employment Agreements are terminated the amounts, without material deviation, as set forth on Schedule 2.3(a) against delivery by each listed employee of an instrument in writing signed by the employee acknowledging (i) receipt of said payment as full payment for all amounts due and payable to such employee thereunder and (ii) the termination of said Employment Agreement, effective immediately upon the execution and delivery of said acknowledgment. If, notwithstanding its best efforts, CMBC is unable to terminate one or more Employment Agreements listed in Schedule 2.3(a) and specified by IBKC, IBKC will assume such Employment Agreement(s) and comply with the terms thereof. At or prior to the Effective Date, CMBC (or its applicable Subsidiary) shall use its reasonable efforts to amend the Employment COC Agreement, effective as of the Effective Date, to provide that any payment due to the employee thereunder as a result of termination of her employment within twelve (12) months after the Effective Date will be conditioned on her not resigning or being terminated for Cause (as defined in such agreement) prior to the earlier of (i) substantial completion of conversion of CMBC systems to IBKC systems or (ii) six (6) months from the Effective Date. If, notwithstanding its reasonable efforts, CMBC is unable to terminate the Employment COC Agreement, IBKC will assume such Employment COC Agreement and comply with the terms thereof.
(b) Schedule 2.3(b) sets forth a list of all of the Change of Control Agreements other than the Employment COC Agreement (collectively, the COC Agreements) which CMBC has or expects to enter into between CMBC (or its applicable Subsidiary) and their respective employees and the estimated amounts to be paid
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by CMBC (or its applicable Subsidiary), upon termination of such COC Agreements at or immediately prior to the Effective Date, to the employees as set forth on Schedule 2.3(b) pursuant to said COC Agreements. At or prior to the Effective Date, CMBC (or its applicable Subsidiary) shall use its best efforts to terminate the COC Agreements listed in Schedule 2.3(b), and, upon such termination, pay to the employees listed on Schedule 2.3(b) the amounts, without material deviation, as set forth on Schedule 2.3(b) against delivery by each listed employee of an instrument in writing signed by the employee acknowledging (i) receipt of said payment as full payment for all amounts due and payable to such employee thereunder and (ii) the termination of said COC Agreement, effective immediately upon the execution and delivery of said acknowledgment. If, notwithstanding its best efforts, CMBC is unable to terminate one or more COC Agreements listed in Schedule 2.3(b), IBKC will assume such COC Agreement(s) and comply with the terms thereof.
(c) Schedule 2.3(c) sets forth a list of all of the Supplemental Executive Retirement Agreements (collectively, the SERP Agreements) which CMBC has or expects to enter into between CMBC (or its applicable Subsidiary) and their respective employees and the estimated net present value of the fully vested benefits as of the Effective Date, assuming the following: (i) full vesting of all participants; (ii) a lump sum payment as of March 1, 2011 equal to the present value of all benefits accrued as of such date; and (iii) a present value calculation based on the ten (10)-year U.S. Government bond rate as established in the Wall Street Journal on the last day of the month prior to the month for which the present value calculation is performed. At or prior to the Effective Date CMBC or its applicable Subsidiary shall amend each of the SERP Agreements effective as the Effective Date as follows: (I) to freeze each of the SERP Agreements (other than the SERP Agreement identified as Item Number 8 on Schedule 2.3(c)(SERP Agreement No. 8), which, by its terms, does not provide for any further increase in benefits), effective at or prior to the Effective Date (so that the benefits provided for thereunder will no longer increase over time); (II) to delete any SERP Agreement provisions requiring mutual consent to amend the SERP Agreement (including but not limited to the first sentence of Section XIII.B. of SERP Agreement No. 8), and replace such provisions with a provision substantially similar to Section 8.1 of the SERP Agreement identified as Item No. 1 on Schedule 2.3(c)(SERP Agreement No. 1); (III) to provide that, upon termination of the SERP Agreement on or after the ninth (9th) anniversary of the Effective Date (or, if earlier, the date on which all of the benefits under SERP Agreement No. 1 have been paid to the executive thereunder or his beneficiaries), the benefits under such SERP Agreement shall be paid to the participant or beneficiary no less than 12 months, and no more than 24 months, after termination of the SERP Agreement (i.e. in accordance with Section 409A); and (IV) to provide for a method of determining the lump sum benefit noted in Section 2.3(c)(III) above that is substantially similar to the method of determining the lump sum payment under the SERP Agreement in the event of death of the participant. IBKC will assume the SERP Agreements as of the Effective Date, at which time IBKC shall have discretion to terminate the SERP Agreements in accordance with their terms and Section 409A of the Code and the regulations thereunder (Section 409A); provided that no SERP Agreement will be terminated if the payment to be made upon the termination would trigger an excess parachute payment under Section 280G of the Code that would not be triggered in the case of payment under the current terms of the SERP Agreement and provided further that no SERP Agreement will be terminated before the ninth (9th) anniversary of the Effective Date or the date on which all of the SERP Agreement benefits owed to the executive under SERP Agreement No. 1 or his beneficiaries have been paid, whichever is earlier. In the event of termination of the SERP Agreements, IBKC shall pay the benefits due under the SERP Agreements in accordance with Treasury Regulation Section 1.409A-3(j)(4).
(d) Schedule 2.3(d) sets forth a list of any Deferred Compensation Agreements (other than the SERP Agreements) (collectively, the Deferred Comp Agreements) which CMBC has or expects to enter into between CMBC (or its applicable Subsidiary) and their respective employees and the estimated amounts to be paid by CMBC or its applicable Subsidiary, upon termination of such Deferred Comp Agreements (other than the Severance Plan effective June 20, 2007, as amended (the Severance Plan)) at or immediately prior to the Effective Date to the employees as set forth on Schedule 2.3(d) pursuant to said Deferred Comp Agreements. At or prior to the Effective Date, CMBC or its applicable Subsidiary shall use its best efforts to terminate the Deferred Comp Agreements (other than the Severance Plan), and, upon such termination, to pay to the employees listed on Schedule 2.3(d) the amounts, without material deviation, as set forth on Schedule 2.3(d) against delivery by each listed employee of an instrument in writing signed by the employee acknowledging (i) receipt of said payment as full payment for all amounts due and payable to such employee thereunder and (ii) the termination of said Deferred Comp Agreement, effective immediately upon the execution and delivery of said acknowledgment. If, notwithstanding its best efforts, CMBC is unable to terminate one or more Deferred Comp Agreements listed in Schedule 2.3(d) (other than the Severance Plan), IBKC will assume such Deferred Comp Agreement(s) and comply with the terms thereof. With
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respect to the Severance Plan, IBKC will assume such plan and either comply with the terms thereof or terminate the Severance Plan and provide to the employees covered thereunder coverage under a plan of IBKC that provides an equivalent or greater benefit.
(e) Schedule 2.3(e) sets forth a list of all of the Retention Agreements which CMBC has or expects to enter into between CMBC (or its applicable Subsidiary) and their respective employees.
(f) Any action (including but not limited to any payment) under this Section 2.3 shall be subject to compliance with Section 409A of the Code and the regulations thereunder (Section 409A), provided that the timing of any payment under this Section 2.3 may be delayed only if such delay is necessary to comply with Section 409A. With respect to any action required under this Section 2.3 to be taken or any payment to be made by CMBC, in the event that compliance with Section 409A requires that the action be taken or the payment be made after the Effective Date, IBKC will assume the obligation to take such action or make such payment, and will make such payment at the earliest possible date that is in compliance with Section 409A.
SECTION III.
CLOSING AND EFFECTIVE DATE
3.1 Time and Place of Closing.
(a) The Closing will take place on a mutually agreed upon Business Day as soon as is reasonably practical subsequent to the last to occur of: (i) the date of receipt of all required Regulatory Authories approvals of the Merger and the expiration of all required waiting periods, and (ii) the date on which the shareholders of CMBC approve this Agreement and the Merger at the Shareholders Meeting to be held pursuant to Section 7.1(b) of this Agreement; provided, however, that the Closing shall be held not later than thirty (30) days from the date on which the last such condition to Closing is satisfied and may be held on the last Business Day of the month in which such condition is satisfied; or may be held on such other date as the parties hereto may mutually agree. If all conditions in Section VIII hereof are satisfied, or waived by the party entitled to grant such waiver, at the Closing (i) the parties shall each provide to the other such proof of satisfaction of the conditions in Section VIII as the party whose obligations are conditioned upon such satisfaction may reasonably request, (ii) the certificates, letters and opinions required by Section VIII shall be delivered, (iii) the directors and appropriate officers of the parties shall authorize, execute, deliver and acknowledge the articles and certificate of merger, and (iv) the parties shall take such further action, including (without limitation) filing the Merger Agreement and any other necessary filings with the Secretary of State of Louisiana to consummate the transactions contemplated by this Agreement.
(b) If on any date established for the Closing all conditions in Section VIII hereof have not been satisfied or waived by each Warrantor entitled to grant such waiver, then either Warrantor, on one or more occasions, may declare a delay of the Closing of such duration, not exceeding ten (10) days, as the declaring Warrantor shall select, but no such delay shall extend beyond the last date set forth in Section 9.1(c) without the written consent of the non-declaring party, whose consent may be withheld for any or no reason, and no such delay shall interfere with the right of either Warrantor to declare a termination pursuant to Section IX. The place of Closing shall be at the office of IBKC set forth in Section 10.7.
3.2 Effective Date. Subject to the satisfaction or waiver of the conditions set forth in Article VIII, the Merger shall become effective upon the approval of the Merger by the Board of Governors of the Federal Reserve System and necessary filings with the Louisiana Secretary of State in accordance with the LBCL or such later date and time as may be set forth in such filings (the time the Merger becomes effective being referred to as the Effective Date.).
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SECTION IV.
MANAGEMENT AND RELATED MATTERS FOLLOWING MERGER
4.1 Board of Directors and Officers of IBKC. At the Effective Date, the board of directors and officers of IBKC shall consist of those persons serving as directors and officers of IBKC immediately prior to the Effective Date.
4.2 Board of Directors and Officers of CMBC Subsidiaries. At the Effective Date, the directors and officers of the CMBC Subsidiaries shall consist of those persons serving as directors and officers of IBKC prior to the Effective Date.
4.3 Employees and Benefits.
(a) The employees of CMBC and its Subsidiaries who remain employed after the Effective Date (Continuing Employees) shall be given credit under each employee benefit plan, policy, program and arrangement maintained by IBERIABANK after the Closing for their service with CMBC or its Subsidiary (or with any predecessor for whom CMBC or its Subsidiary gave them credit) prior to the Closing for all purposes, including severance, vacation and sick leave, eligibility to participate, vesting, satisfying any waiting periods, evidence of insurability requirements in accordance with IBKCs plan, seniority, or the application of any pre-existing condition limitations, other than benefit accrual under a defined benefit plan (as defined in Section 3(35) of ERISA); provided, however, that accrued vacation taken subsequent to the Effective Date may be subject to such limitations as IBKC or IBERIABANK may reasonably require and that apply generally to all employees of IBKC and IBERIABANK.
(b) Any employee of CMBC or its Subsidiaries who does not remain employed by IBKC or its Subsidiaries after the Effective Date and who does not receive a severance payment in connection with the Merger shall receive a severance payment from IBKC as if he or she were an employee of IBKC for the entire time he or she were an employee of CMBC. No former employee of CMBC shall receive a change of control or severance payment from IBKC if he or she received a change of control payment from CMBC, unless provided otherwise pursuant to an agreement entered into between IBKC and such employee, and CMBC shall, prior to the Effective Date, use best efforts to take all steps, and obtain such consents, as may be necessary to effectuate this Section 4.3(b).
(c) In the event of any termination of any CMBC or CMBC Subsidiary health plan (a CMBC health plan), IBKC and IBERIABANK shall make available to Continuing Employees and their dependents, employer-provided health care coverage under health plans provided by IBKC and IBERIABANK. Unless a Continuing Employee affirmatively terminates coverage under a CMBC health plan prior to the time that such Continuing Employee becomes eligible to participate in the IBKC health plan, no coverage of any of the Continuing Employees or their dependents shall terminate under any of the CMBC health plans prior to the time such Continuing Employees and their dependents become eligible to participate in the health plans, programs and benefits common to all employees and their dependents of IBKC and IBERIABANK. In the event IBKC terminates any CMBC health plan or consolidates any CMBC health plan with any IBKC health plan, individuals covered by the CMBC health plan shall be entitled to immediate coverage under the IBKC health plan in accordance with the Health Insurance Portability and Accountability Act of 1996, as amended, and the regulations issued thereunder, including limitations on pre-existing condition exclusions, nondiscrimination and special enrollment rights.
4.4 Indemnification and Insurance.
(a) IBKC agrees that all rights to indemnification and all limitations of liability existing in favor of any director or officer of CMBC or any CMBC Subsidiary (the Indemnified Parties) as provided in CMBCs or the CMBC Subsidiarys articles of incorporation or bylaws (including without limitation the right to the advancement of expenses) with respect to matters occurring on or prior to the Effective Date shall survive the Merger and shall continue in full force and effect, without any amendment thereto, for a period of six (6) years from the Effective Date; provided, however, that all rights to indemnification in respect of any claim, suit, proceeding, investigation, or other action (Claim) asserted or made within such period shall continue until the final disposition of such Claim; provided further, however, that nothing contained in this Section 4.4(a) shall be deemed to preclude
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the liquidation, consolidation or merger of CMBC or any CMBC Subsidiary, in which case all of such rights to indemnification and limitations on liability shall be deemed to so survive and continue notwithstanding any such liquidation, consolidation or merger and shall constitute rights which may be asserted against IBKC. Nothing contained in this Section 4.4(a) shall be deemed to preclude any rights to indemnification or limitations on liability provided in CMBCs or any CMBC Subsidiarys articles of incorporation with respect to matters occurring subsequent to the Effective Date.
(b) Any Indemnified Party wishing to claim indemnification under Section 4.4, upon learning of any claim, shall notify IBKC thereof in writing as promptly as is practicable; provided, however, that failure to so notify IBKC shall not relieve IBKC from any liability that would otherwise arise under this Section 4.4 except to the extent such failure prejudices IBKC. IBKC shall have the right to assume the defense thereof and shall not be liable for any expenses subsequently incurred by such Indemnified Party in connection with the defense thereof, except that if IBKC does not assume or continue to pursue such defense, or counsel for the Indemnified Party advises in writing that issues raise conflicts of interest between IBKC and the Indemnified Party, then the Indemnified Party may retain counsel satisfactory to such Indemnified Party (and reasonably satisfactory to IBKC) at IBKCs expense; provided, however, that (i) IBKC shall not be obligated to pay for more than one counsel for all Indemnified Parties in any jurisdiction except as may be required due to conflicts of interest; (ii) the Indemnified Parties will cooperate (to the extent reasonably appropriate under the circumstances) in the defense of any such claim; and (iii) IBKC shall not be liable for any settlement effected without the prior written consent of IBKC, which consent may be withheld unless such settlement is reasonable in light of such claims, actions, suits, proceedings or investigations against, and defenses available to, such Indemnified Party.
(c) CMBC will, for total premiums not to exceed $85,000 (the Maximum Amount), purchase a continuation of their current directors and officers liability insurance for a coverage period of three (3) years after the Merger, provided that if the amount of the annual premiums necessary to maintain or procure such insurance coverage exceeds the Maximum Amount, IBKC shall maintain the most advantageous policies of directors and officers insurance obtainable for an aggregate annual premium not to exceed the Maximum Amount.
(d) If IBKC or any of its successors or assigns (i) reorganizes or consolidates with or merges into or enters into another business combination transaction with any other Person or entity and is not the resulting, continuing or surviving corporation or entity of such reorganization, consolidation, merger or transaction or (ii) liquidates, dissolves or transfers all or substantially all of its properties and assets to any Person or entity, then, and in each such case, proper provisions will be made so that such surviving corporation or transferee and its successors and assigns assume the obligations of IBKC set forth in this Agreement. The obligations of IBKC under this Section 4.4 are intended to be for the benefit of, and enforceable against IBKC directly by, the Indemnified Parties and their heirs and representatives and shall be binding on all respective successors and permitted assigns of IBKC. IBKC shall pay all reasonable costs, including attorneys fees, that may be incurred by any Indemnified Party in successfully enforcing the indemnity and other obligations provided for in this Section 4.4 to the fullest extent permitted under applicable law. The rights of each Indemnified Party hereunder shall be in addition to any other rights such Indemnified Party may have under applicable law. The provisions of this Section 4.4 shall survive the Effective Date.
SECTION V.
REPRESENTATIONS AND WARRANTIES OF IBKC AND CMBC
IBKC and CMBC hereby represent and warrant to the other Warrantor, subject to the standard set forth in Section 5.21 hereof, that:
5.1 Organization, Standing, and Authority. Warrantor is a corporation duly organized, validly existing, and in good standing under the laws of the state of Louisiana, and is duly qualified to do business and in good standing in the states of the United States and foreign jurisdictions where its ownership or leasing of property or the conduct of its business requires it to be so qualified, except where the failure to be so qualified or in good standing would not have a Material Adverse Effect. Warrantor has corporate power and authority to carry on its business as now conducted in all material respects, to own, lease and operate its assets, properties and business, and to execute and deliver, and to perform its obligations under, this Agreement. Warrantor is duly registered with the Federal
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Reserve as a bank holding company under the BHC Act. Warrantor has in effect all federal, state, local and foreign governmental authorizations necessary for it to own or lease its properties and assets and to carry on its business as it is now conducted in all material respects. Each of IBERIABANK and CSB is an insured depository institution as defined in the Federal Deposit Insurance Act and applicable regulations thereunder.
5.2 Capital Stock.
(a) The authorized, issued and outstanding capital stock of Warrantor as of the date of this Agreement, the number of shares of Warrantor Common Stock reserved for issuance under the Warrantor Benefit Plans as of such date and the number of shares of Warrantor Common Stock that are subject to outstanding stock options under such Warrantor Benefit Plans as of such date, are set forth in Schedule 5.2(a) that pertains to Warrantor. All of the issued and outstanding shares of capital stock of Warrantor are duly and validly authorized and issued and are fully paid and non-assessable. None of the outstanding shares of the capital stock of Warrantor has been issued in violation of any preemptive rights of the current or past shareholders of Warrantor. All of the IBKC Common Stock to be issued in exchange for CMBC Common Stock upon consummation of the Merger, when issued in accordance with the terms of this Agreement, will be duly and validly authorized and fully paid and non-assessable.
(b) Except as set forth in Section 5.2(a), Section 6.1(e) or Schedule 5.2(a), there are, as of the date of this Agreement and will be, at the Effective Date, no shares of capital stock or other equity securities of CMBC outstanding and no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into or exchangeable for, shares of the capital stock of CMBC or contracts, commitments, understandings or arrangements by which CMBC is or may be bound to issue additional shares of its capital stock or options, warrants or rights to purchase or acquire any additional shares of its capital stock.
5.3 Subsidiaries. Schedule 5.3 lists all of the Subsidiaries of Warrantor as of the date of this Agreement. Except as provided in Louisiana Revised Statutes 6:262, all of the shares of capital stock of IBERIABANK held by IBKC are fully paid and non-assessable and are owned by IBKC free and clear of any claim, lien or encumbrance. Each Subsidiary of Warrantor is a corporation duly organized, validly existing and in good standing under the laws of the state of its incorporation, and is duly qualified to do business and in good standing in the jurisdictions where its ownership or leasing of property or the conduct of its business requires it to be so qualified, except where the failure to be so qualified or in good standing would not have a Material Adverse Effect. Each of CSB and IBERIABANK has the corporate power and authority necessary for it to own or lease its properties and assets and to carry on its business as it is now being conducted, and has all federal, state, local and foreign governmental authorizations necessary for it to own or lease its properties and assets and to carry on its business as it is now being conducted in all material respects.
5.4 Authority.
(a) The execution and delivery of this Agreement and the consummation of the transactions contemplated herein, including the Merger, have been duly and validly authorized by all necessary corporate action on the part of Warrantor, subject, with respect to this Agreement, to the approval of the shareholders of CMBC. This Agreement, subject to any requisite approval by CMBCs shareholders (and assuming in each case the due authorization, execution and delivery by the other Warrantor), represents the valid and legally binding obligation of Warrantor, enforceable against Warrantor, in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting the enforcement of creditors rights generally and except that the availability of the equitable remedy of specific performance or injunctive relief is subject to the discretion of the court before which any proceeding may be brought.
(b) Neither the execution and delivery of this Agreement by Warrantor, nor the consummation by Warrantor of the transactions contemplated herein, nor compliance by Warrantor with any of the provisions hereof, will (i) conflict with or result in a breach of any provision of the articles of incorporation or by-laws of IBKC or CMBC, or (ii) except as set forth on Schedule 5.4(b), constitute or result in the breach of any term, condition or
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provision of, or constitute a default under, or give rise to any right of termination, cancellation or acceleration with respect to, or result in the creation of any lien, charge or encumbrance upon any property or assets of Warrantor, pursuant to, any note, bond, mortgage, indenture, license, agreement, lease or other instrument or obligation to which any of them is a party or by which any of them or any of their properties or assets may be subject, except such as individually or in the aggregate will not have a Material Adverse Effect, or (iii) subject to receipt of the requisite approvals, authorizations, filings, registrations and notifications referred to in Section 8.5 of this Agreement, violate any order, writ, injunction, decree, statute, rule or regulation applicable to Warrantor, or any of its properties or assets.
(c) Other than in connection or compliance with the provisions of applicable state corporate and securities laws, the Securities Laws and the rules and regulations thereunder, and other than consents, authorizations, approvals or exemptions required from Regulatory Authorities, no notice to, filing with, authorization of, exemption by or consent or approval of any public body or authority is necessary for the consummation by Warrantor of the Merger and the other transactions contemplated by this Agreement.
(d) The Board of Directors of each of the parties hereto (at a meeting duly called and held prior to the execution of this Agreement) has by requisite vote (i) determined that the Merger is in the best interests of such party and its shareholders, (ii) authorized and approved this Agreement and the transactions contemplated hereby, including the Merger, and (iii) in the case of CMBCs Board of Directors only, has directed that the Merger be submitted for consideration to CMBCs shareholders at the Shareholders Meeting.
5.5 Financial Statements; Accounting. Prior to the execution of this Agreement, each Warrantor has delivered to the other Warrantor its Warrantor Financial Statements through the period ended September 30, 2010, and each Warrantor will promptly deliver when available copies of such Warrantor Financial Statements in respect of periods ending after September 30, 2010. Each of the Warrantor Financial Statements (as of the dates thereof and for the periods covered thereby): (i) is (and, in the case of Warrantor Financial Statements in respect of periods ending after September 30, 2010, will be) in accordance with the books and records of the Warrantor, and have been and will continue to be maintained in accordance with GAAP (except as permitted by Regulation S-X of the SEC), in all material respects, and (ii) except as permitted by Regulation S-X of the SEC, presents (and, in the case of Warrantor Financial Statements in respect of periods ending after September 30, 2010, will present) fairly in all material respects the consolidated financial position and the consolidated results of operations, changes in Shareholders equity and cash flows of the Warrantor as of the dates and for the periods indicated, in all material respects in accordance with GAAP applicable to financial institution holding companies applied on a basis consistent with prior periods, except as otherwise described (subject in the case of interim financial statements to normal year-end adjustments and the absence of footnotes).
5.6 Absence of Undisclosed Liabilities. Except as set forth in Schedule 5.6, neither Warrantor has any obligation or liability (contingent or otherwise) that is material, either individually or in the aggregate, to the financial condition, results of operations or, to the Warrantors knowledge, business prospects of the Warrantor on a consolidated basis, or that when combined with all similar obligations or liabilities would, either individually or in the aggregate, be material to the financial condition, results of operations or, to the Warrantors knowledge, business prospects of the Warrantor on a consolidated basis, except (i) as reflected in the Warrantor Financial Statements delivered prior to the date of this Agreement, (ii) as reflected by this Agreement, or (iii) for commitments and obligations made, or liabilities incurred, since September 30, 2010, with respect to CMBC, and December 31, 2010, with respect to IBKC, in the ordinary course of its business consistent with past practices.
5.7 Tax Matters.
(a) All material federal, state, local and foreign tax returns required to be filed by or on behalf of Warrantor have been timely filed or requests for extensions have been timely filed, granted and have not expired. All taxes shown on filed returns have been paid, except for taxes which are being contested in good faith or have not yet been fully determined. There is no audit examination, deficiency, refund litigation or matter in controversy with respect to any taxes, except as reserved against in the Warrantor Financial Statements or as set forth on Schedule 5.7(a). All taxes, interest, additions and penalties which are material in amount and which are due with respect to completed and settled examinations or concluded litigation have been paid or adequately reserved for.
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(b) Except as set forth on Schedule 5.7(b), Warrantor has not executed an extension or waiver of any statute of limitations on the assessment or collection of any tax due that is currently in effect.
(c) Adequate provision for any federal, state, local or foreign taxes due or to become due for Warrantor for any period or periods through and including December 31, 2010 has been made and is reflected in the Warrantor Financial Statements, and will be made through and including the Closing.
(d) Deferred taxes of the Warrantor Companies have been provided for in accordance with GAAP.
5.8 Loans, Reserves, and Investments.
(a) All loans (including discounts) and financing leases in which Warrantor is lessor (collectively, Credits) reflected in the Warrantor Financial Statements were (i) made for adequate consideration in the ordinary course of business, (ii) evidenced by instruments that were true and genuine, and (iii) if secured, secured by valid perfected security interests. An accurate trial balance of all such Credits of CMBC and of the investment portfolio as of January 31, 2011 has been previously delivered to IBKC.
(b) The aggregate allowances for losses on Credits and other real estate and foreclosed assets owned reflected on the latest Warrantor Financial Statement delivered on or prior to the date of this Agreement were, as of the date of such Financial Statements and will be, at the Closing, adequate, as of the respective dates of the Financial Statements, in accordance with regulatory guidelines and GAAP in all material respects.
5.9 Properties and Insurance. Except as set forth on Schedule 5.9 or as reserved against in the Warrantor Financial Statements, Warrantor, has good and, as to real property, marketable title, free and clear of all material liens, encumbrances, charges or defaults of any character, to all of the material properties and assets, tangible or intangible, reflected in the Warrantor Financial Statements as being owned by the Warrantor as of the dates thereof. For purposes of the Warrantors representations and warranties contained in this Section 5.9, any reference to real property shall only relate to the Warrantor Real Property. To Warrantors knowledge, (i) all buildings and all fixtures, equipment and other property and assets which are material to its business on a consolidated basis and are held under leases or subleases by the Warrantor are held under valid leases or subleases enforceable in accordance with their respective terms (except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting the enforcement of creditors rights generally and except that the availability of the equitable remedy of specific performance or injunctive relief is subject to the discretion of the court before which any proceedings may be brought); and (ii) the policies of fire, theft, liability, fidelity and other insurance maintained with respect to the assets or businesses of the Warrantor provide adequate coverage against loss.
5.10 Compliance with Laws. Except as set forth in Schedule 5.10, each Warrantor and the Warrantor Subsidiaries:
(a) Is, to Warrantors knowledge, in compliance in all material respects with all laws, regulations, reporting and licensing requirements and orders necessary for it to own or lease its properties and assets and to carry on its business as it is now conducted in all material respects;
(b) Has received no notification or communication from any Regulatory Authority (i) threatening to revoke any license, franchise, permit or governmental authorization which is material, either individually or in the aggregate, to the financial condition, results of operations or, to the Warrantors knowledge, business prospects of the Warrantor on a consolidated basis or the ability of the Warrantor to consummate the transactions contemplated under this Agreement, under the terms hereof, or (ii) requiring Warrantor (or any of its officers, directors or controlling Persons) to enter into a cease and desist order, agreement or memorandum of understanding (or requiring the board of directors thereof to adopt any resolution or policy); and
(c) Has complied in all material respects with the Community Reinvestment Act (CRA) and the rules and regulations thereunder, and has a CRA rating of not less than satisfactory.
5.11 Employee Benefit Plans.
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(a) (i) Warrantor has delivered or made available to the other Warrantor, prior to the execution of this Agreement, copies of each pension, retirement, profit sharing, supplemental or excess retirement, stock option, stock purchase, savings, employee stock ownership, restricted stock, phantom stock, stock ownership, life insurance, disability, vacation pay, severance pay (including, without limitation change of control or golden parachute arrangements), incentive, deferred compensation, bonus or benefit arrangement, health or hospitalization program, fringe benefit or perquisite arrangement or other similar plan as in effect on the date of this Agreement, including, without limitation, any employee benefit plan, as that term is defined in Section 3(3) of ERISA, in respect of any of the present or former directors, officers, other employees or independent contractors of, or dependents, spouses or other beneficiaries of any of such directors, officers, other employees or independent contractors of, any of the Warrantor Companies (collectively, the Warrantor Benefit Plans), and (ii) CMBC and the CMBC Subsidiaries have delivered or made available to IBKC, prior to the execution of this Agreement, copies of each employment or consulting agreement as in effect on the date of this Agreement which provides any benefit or perquisites to or in respect of any of the present or former directors or officers of, or dependents, spouses or other beneficiaries of any of such directors or officers of, CMBC and the CMBC Subsidiaries, which employment and consulting agreements are, with respect to CMBC and the CMBC Subsidiaries, included in the term Warrantor Benefit Plans as defined above. Any of the Warrantor Benefit Plans which is an employee pension benefit plan, as that term is defined in Section 3(2) of ERISA, is referred to herein as a Warrantor ERISA Plan. No Warrantor has participated in or been a member of, and no Warrantor Benefit Plan is or has been, a multi-employer plan within the meaning of Section 3(37) of ERISA. Except as set forth on Schedule 5.11(a), the Warrantor Benefit Plans of CMBC and the CMBC Subsidiaries are terminable on their terms without penalty or payment except for accrued and vested benefits thereunder.
(b) All Warrantor Benefit Plans comply in all material respects with the applicable provisions of ERISA and the Code, and any other applicable laws, rules and regulations the breach or violation of which could result in a liability, either individually or in the aggregate, material to the financial condition, results of operations or prospects of the Warrantor on a consolidated basis. With respect to the Warrantor Benefit Plans, no event has occurred and, to Warrantors knowledge, there exists no condition or set of circumstances, in connection with which the Warrantor could be subject to any liability (except liability for severance payments, benefit claims, Pension Benefit Guaranty Corporation premiums, and funding obligations payable in the ordinary course). No notice of a reportable event, as that term is defined in Section 4043 of ERISA, for which the 30-day reporting requirement has not been waived has been required to be filed for any Warrantor ERISA Plan which is subject to Title IV of ERISA within the 12-month period ending on the date of this Agreement. No Warrantor has provided, or is required to provide, security to any Warrantor ERISA Plan which is subject to Title IV of ERISA pursuant to Section 401(a)(20) of the Code.
(c) Except as set forth on Schedule 5.11(c), no Warrantor ERISA Plan which is subject to Title IV of ERISA has any unfunded current liability, as that term is defined in Section 302(d)(8)(A) of ERISA, and the present fair market value of the assets of each such plan exceeds the plans benefit liabilities, as that term is defined in Section 4001(a)(16) of ERISA, when determined under actuarial factors that would apply if the plan terminated as of the date of this Agreement in accordance with all applicable legal requirements.
5.12 Material Contracts. Except, with respect to CMBC, as set forth on Schedule 5.12, and except, with respect to IBKC, as filed as an exhibit to its most recent Form 10-K, none of the Warrantor Companies, nor any of their respective assets, businesses or operations, as of the date of this Agreement, is a party to, or is bound or affected by, or receives benefits under, any contract or agreement or amendment thereto that in each case would be required to be filed as an exhibit to a Form 10-K filed by Warrantor as of the date of this Agreement (each such contract, agreement or amendment, a Warrantor Material Contract). No Warrantor Company is in default in any material respect under any Warrantor Material Contract, and there has not occurred any event that, with the lapse of time or the giving of notice or both, would constitute such a default.
5.13 Legal Proceedings. Except as set forth on Schedule 5.13, there are no actions, suits or proceedings instituted or pending or, to Warrantors knowledge, threatened against a Warrantor Company, or affecting any property, asset, interest or right of any of them.
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5.14 Absence of Certain Changes or Events. Since December 31, 2009, the Warrantor Companies, taken as a whole on a consolidated basis, have not suffered any change in any respect that has had or, to Warrantors knowledge, is reasonably likely to have a Material Adverse Effect.
5.15 Reports. Since December 31, 2007, each of the Warrantor Companies has filed all reports and statements, together with any amendments required to be made with respect thereto, that it was required to file with (i) the SEC, including, but not limited to, Forms 10-K, Forms 10-Q, Forms 8-K and proxy statements, (ii) the Federal Reserve, (iii) the Federal Deposit Insurance Corporation, and (iv) any applicable state banking, insurance, securities or other regulatory authorities. As of their respective dates (and without giving effect to any amendments or modifications filed after the date of this Agreement with respect to reports and documents filed before the date of this Agreement), each of such reports and documents, including the financial statements, exhibits and schedules thereto, complied in all material respects with all of the statutes, rules and regulations enforced or promulgated by the authority with which they were filed and did not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein in light of the circumstances under which they were made not misleading.
5.16 Statements True and Correct. None of the information supplied or to be supplied by Warrantor for inclusion in (i) the Registration Statement, (ii) the Proxy Statement, and (iii) any other documents to be filed with the SEC or any other Regulatory Authority in connection with the transactions contemplated hereby, will, at the respective times such documents are filed, and, in the case of the Registration Statement, when it becomes effective and, with respect to the Proxy Statement, when first mailed to the shareholders of CMBC be false or misleading with respect to any material fact, or omit to state any material fact necessary in order to make the statements therein not misleading, or, in the case of the Proxy Statement or any amendment thereof or supplement thereto, at the time of the Shareholders Meeting, be false or misleading with respect to any material fact, or omit to state any material fact necessary to make the statements therein in light of the circumstances under which they were made not misleading. All documents that Warrantor is responsible for filing with the SEC or any other Regulatory Authority in connection with the transactions contemplated hereby will comply in all material respects with the provisions of applicable law including applicable provisions of the Securities Laws.
5.17 Environmental Matters.
(a) To Warrantors knowledge, Warrantor and each Warrantor Subsidiary (for purposes of this Section 5.17, the term Warrantor Subsidiary shall include small business investment corporations and entities that invest in unaffiliated companies in the ordinary course of business in which Warrantor owns or controls 5% or more of the outstanding equity securities either directly or through an unbroken chain of entities as to each of which 5% or more of the outstanding equity securities is owned directly or indirectly by Warrantor), except as set forth in Schedule 5.17(a), the Warrantor Real Property and the Participation Facilities (as defined below) are, and have been, in compliance in all material respects with all applicable laws, rules, regulations and standards, and all requirements of the United States Environmental Protection Agency (EPA) and of state and local agencies with jurisdiction over pollution or protection of health or the environment.
(b) To Warrantors knowledge, except as set forth in Schedule 5.17(b), there is no suit, claim, action or proceeding, pending or threatened, before any court, governmental agency, board or other forum pursuant to which Warrantor or any of the Warrantor Subsidiaries or any Warrantor Real Property or Participation Facility (or in respect of such Warrantor Real Property or Participation Facility) has been or, with respect to threatened proceedings may be, named as a defendant (i) for alleged noncompliance (including by any predecessor) with any environmental law, rule or regulation or (ii) relating to the release into the environment of any Hazardous Material (as defined below) or oil, whether or not occurring at or on any site owned (including as trustee), leased or operated by it or any of its subsidiaries or any Warrantor Real Property or Participation Facility.
(c) To Warrantors knowledge, except as set forth in Schedule 5.17(c), there is no reasonable basis for any suit, claim, action or proceeding of a type described in Section 5.17(b).
(d) During the period of (i) Warrantors or any of the Warrantor Subsidiaries ownership (including as trustee) or operation of any of their respective current properties, which, with respect to each Warrantor, shall be limited to the Warrantor Real Property, and (ii) Warrantors or any of the Warrantor Subsidiaries participation in
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the management of any Participation Facility, to Warrantors knowledge, there has been no release of Hazardous Material or oil in, on, under or affecting such property or Participation Facility.
(e) For purposes of this Section 5.17: (i) Participation Facility means any property in which Warrantor (or a Warrantor Subsidiary) participates in the management of such property; and (ii) Hazardous Material means any pollutant, contaminant or hazardous substance within the meaning of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. Section 9601 et seq., or any similar federal, state or local law.
5.18 Knowledge as to Conditions. On the date of this Agreement, Warrantor knows of no reason why the regulatory approvals, authorizations, filings, registrations and notices contemplated by Section 8.5 should not be obtained without the imposition of any material and adverse condition or restriction.
5.19 Labor Matters. Except as set forth on Schedule 5.19, neither Warrantor is a party to, or is bound by, any collective bargaining agreement, contract or other agreement or understanding with a labor union or labor organization, nor is Warrantor the subject of any proceeding asserting that Warrantor has committed an unfair labor practice or seeking to compel Warrantor to bargain with any labor union or labor organization as to wages and conditions of employment; nor is there any strike or other labor dispute involving Warrantor pending or threatened.
5.20 Fairness Opinion. CMBC shall have received an opinion from Sheshunoff & Co., CMBCs financial advisor, dated as of or within two (2) Business Days prior to the date of this Agreement, to the effect that, as of such date, the Merger Consideration to be received by the holders of CMBC Common Stock is fair to CMBCs shareholders from a financial point of view.
5.21 Materiality. No representation or warranty by a Warrantor contained in this Section V shall be deemed untrue or incorrect, and no party hereto shall be deemed to have breached a representation or warranty, on account of the existence of any fact, circumstance or event unless, as a direct or indirect consequence of such fact, circumstance or event, individually or taken together with all other facts, circumstances or events inconsistent with any paragraph of Section V, as applicable, there is or is reasonably likely to be a Material Adverse Effect, except that the representations and warranties in Sections 5.1, 5.2, 5.3 and 5.4 shall be true and correct in all respects. CMBCs representations, warranties and covenants contained in this Agreement shall not be deemed to be untrue or breached as a result of effects arising solely from actions taken in compliance with this Agreement or a written request of IBKC.
5.22 CMBC Affiliates. Except as set forth on Schedule 5.22, there is no person other than CMBCs executive officers, directors and Subsidiaries whom CMBC reasonably believes is an affiliate (as defined in Rule 405 under the 1933 Act) of CMBC.
SECTION VI.
COVENANTS AND AGREEMENTS
Each of the parties to this Agreement hereby covenants and agrees with the other parties as follows:
6.1 Conduct of BusinessNegative Covenants. From the date of this Agreement until the earlier of the Effective Date or the termination of this Agreement, except as otherwise permitted by this Agreement or as set forth on Schedule 6.1, CMBC will not do, and will not agree or commit to do, and CMBC will cause each of its Subsidiaries not to do and not to agree to commit to do, any of the following without the prior written consent of a duly authorized officer of IBKC:
(a) Amend its articles of incorporation, by-laws, or other governing instruments, or
(b) Impose, or suffer the imposition, on any share of capital stock held by it or by one of its Subsidiaries, of any material lien, charge or encumbrance, or permit any such lien, charge or encumbrance to exist, or
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(c) Repurchase, redeem, or otherwise acquire or exchange, directly or indirectly, any shares of its capital stock or any securities convertible into any shares of its capital stock, or issue Certificates representing more than ten percent (10%) of the outstanding shares of CMBC Common Stock to replace lost, stolen or destroyed Certificates in accordance with Section 2.2(f), or
(d) Except as expressly contemplated by this Agreement, acquire direct or indirect control over any corporation, association, firm or organization, other than in connection with (i) internal reorganizations or consolidations involving existing Subsidiaries, (ii) good faith foreclosures in the ordinary course of business, (iii) acquisitions of control by a banking Subsidiary in a bona fide fiduciary capacity, (iv) investments made by small business investment corporations or by Subsidiaries that invest in unaffiliated companies in the ordinary course of business, or (v) the creation of new Subsidiaries organized to conduct or continue activities otherwise permitted by this Agreement, or
(e) Except as set forth on Schedule 6.1(e), issue, sell, pledge, encumber, authorize the issuance of, or otherwise dispose of: (i) any shares of its capital stock, including any agreement to issue, sell, pledge, encumber, or authorize the issuance of its capital stock; (ii) any substantial part of its assets or earning power; or (iii) any asset other than in the ordinary course of business for reasonable and adequate consideration, or
(f) Adjust, split, combine, or reclassify any capital stock of CMBC or issue or authorize the issuance of any other securities in respect of or in substitution for CMBC Common Stock, or
(g) Except as set forth on Schedule 6.1(g), incur any additional material debt obligation or other material obligation for borrowed money, except in the ordinary course of its business consistent with past practices (and such ordinary course of business shall include, but shall not be limited to, the creation of deposit liabilities, purchases of federal funds, sales of certificates of deposit and entry into repurchase agreements), or
(h) Grant any increase in compensation or benefits to its officers or other employees; pay any bonus, enter into any severance agreements with any of its directors or officers; grant any increase in fees or other increases in compensation or other benefits to any of its present or former directors; or effect any change in retirement benefits for any class of its employees or officers (unless such change is required by applicable law or, in the opinion of counsel, is necessary or advisable to maintain the tax qualification of any plan under which the retirement benefits are provided) that would increase the retirement benefit liabilities of CMBC and its Subsidiaries.
(i) Except as contemplated by this Agreement, or any of the agreements, documents or instruments contemplated hereby, or as set forth on Schedule 6.1(i), amend any existing employment, severance or similar contract or other arrangement between it or any of its Subsidiaries (unless such amendment is required by law), or enter into any new such contract or other employment arrangement with, any person, or
(j) Except as contemplated by this Agreement or any of the agreements, documents or instruments contemplated hereby, or set forth in Schedule 6.1(j), adopt any new employee benefit plan or make any material change in or to any existing employee benefit plan, other than any such change that is required by law or that, in the opinion of counsel, is necessary or advisable to maintain the tax qualified status of any such plan, or
(k) Place or suffer to exist on any of it assets or properties any mortgage, pledge, lien, charge or other encumbrance, other than in the ordinary course of business consistent with past practices, or as disclosed in Schedule 6.1(k), cancel any material indebtedness to it or any material claims which it may have had, or waive any right of substantial value or discharge or satisfy any material noncurrent liability, or
(l) Charge off (except as may otherwise be required by law or by Regulatory Authorities or by GAAP consistently applied) any material Credit, or make or enter into any commitments to make any Credit which varies materially from its written credit policies, copies of which have been made available to IBKC, or
(m) Reduce its reserve for loan losses below $5.39 million (excluding overdrafts), except as may be required by law, Regulatory Authorities or GAAP, or
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(n) Other than in the normal course of providing credit to customers as part of its banking business, accepting deposits and making investments, enter into any contract or series of related contracts involving a payment of more than $50,000.
(o) Commit to do any of the foregoing.
6.2 Conduct of BusinessAffirmative Covenants. Unless the prior written consent of the other Warrantor shall have been obtained, except as otherwise contemplated or permitted hereby or as set forth on Schedule 6.2, each Warrantor shall operate its business only in the ordinary course of business of such Warrantor consistent with past practices, shall preserve intact its business organizations and assets and maintain its rights and franchises, and shall voluntarily take no action which would (i) adversely affect the ability of any of them to obtain any necessary approvals of Regulatory Authorities required for the transactions contemplated hereby without imposition of a condition or restriction of the type referred to in the second sentence of Section 8.5 of this Agreement, (ii) adversely affect the ability of such Warrantor to perform its obligations under this Agreement, or (iii) cause or permit a breach of any of its covenants or cause or permit any representation or warranty of it to become untrue in any material respect, as if each such representation and warranty were continuously made from the date hereof.
6.3 Adverse Changes in Condition. Each Warrantor shall give written notice promptly to the other Warrantor concerning (i) any event which has had, or is reasonably likely to have, a Material Adverse Effect on such Warrantor, or (ii) the occurrence or impending occurrence of any event or circumstance known to such Warrantor which would have needed to be reported in a disclosure schedule hereunder if it had occurred or been pending on or prior to the date of this Agreement, or which would cause or constitute a material breach of any of the representations, warranties or covenants of such Warrantor contained herein or that would reasonably be expected to materially and adversely affect the timely consummation of the transactions contemplated hereby. Each Warrantor shall use its reasonable efforts to prevent or to promptly remedy the same.
6.4 Investigation and Confidentiality. Prior to the Effective Date, each Warrantor will keep the other Warrantor promptly advised of all material developments relevant to its business and to the consummation of the Merger and may make or cause to be made such investigation, if any, of the business, properties, operations and financial and legal condition of the other Warrantor and its Subsidiaries as such Warrantor reasonably deems necessary or advisable to familiarize itself and its advisors with such business, properties, operations and condition; provided, however, that such investigation shall be reasonably related to the transactions contemplated hereby and shall not interfere unnecessarily with normal operations. Each Warrantor agrees to furnish the other Warrantor and the other Warrantors respective advisors with such financial and operating data and other information with respect to its business, properties and employees as the other Warrantor shall from time to time reasonably request. No investigation by one Warrantor shall affect the representations and warranties of the other Warrantor and, subject to Section 9.3 of this Agreement, each such representation and warranty shall survive any such investigation. Each Warrantor agrees to furnish the other Warrantor with all information necessary to expedite pre-conversion planning and implementation, including, but not limited to, all things necessary, proper or advisable under applicable laws and regulations to plan, make effective and consummate systems and branch conversions. Notwithstanding the foregoing, neither party hereto shall be required to provide access to or to disclose information where such access or disclosure would violate its attorney-client privilege or violate or prejudice the rights of any customer or contravene any law, rule, regulation, order or judgment, nor to disclose board minutes of any confidential discussion of this Agreement and the transactions contemplated hereby. Each Warrantor shall maintain the confidentiality of all confidential information furnished to it by the other Warrantor in accordance with the terms of the confidentiality agreement dated January 17, 2011 between the Warrantors (the Confidentiality Agreement).
6.5 Reports. From the date of this Agreement to the earlier of the Effective Date or the termination of this Agreement, each Warrantor shall, IBKC shall cause IBERIABANK to, and CMBC shall cause CSB to, file all reports required to be filed by such Warrantor, CSB and IBERIABANK with any Regulatory Authority, and shall deliver to the other Warrantor copies of all such reports promptly after the same are filed.
6.6 Dividends. From the date of this Agreement to the earlier of the Effective Date or the termination of this Agreement, CMBC shall not declare or pay any dividend or other distribution to its shareholders; provided, however, if the Effective Date is after the NASDAQ Close on June 30, 2011, CMBC may pay an aggregate cash
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dividend to its shareholders of up to $811,000. If the Effective Date is prior to the NASDAQ Close on June 30, 2011, the former shareholders of CMBC who receive IBKC Common Stock in the Merger shall receive any dividend declared and paid by IBKC in respect of the second quarter of 2011.
6.7 Capital Stock. Except as otherwise contemplated by this Agreement (including Section 6.1(e) hereof), or as set forth on Schedule 6.7, without the prior written consent of IBKC, from the date of this Agreement to the earlier of the Effective Date or the termination of this Agreement, CMBC shall not, and shall not enter into any agreement to, issue, sell, or otherwise permit to become outstanding any additional shares of CMBC Common Stock or any other capital stock of CMBC and any Subsidiary of CMBC, or any stock appreciation rights, or any option, warrant, conversion or other right to acquire any such stock, or any security convertible into any such stock.
6.8 Certain Actions.
(a) Subject to Section 6.8(d) of this Agreement, CMBC agrees that, from the date of this Agreement until the earlier of the Effective Date or the termination of this Agreement, neither it nor any of its Subsidiaries, nor any of the officers and directors of it or its Subsidiaries shall, and that it shall cause its and its Subsidiaries employees, agents and representatives (including any investment banker, attorney or accountant retained by it or any of its Subsidiaries) not to, directly or indirectly, (i) initiate, solicit, encourage or knowingly facilitate any inquiries or the making of any Acquisition Proposal, (ii) have any discussion with or provide any confidential information or data to any Person relating to an Acquisition Proposal, or engage in any negotiations concerning an Acquisition Proposal, or knowingly facilitate any effort or attempt to make or implement an Acquisition Proposal, (iii) approve or recommend, or propose publicly to approve or recommend, any Acquisition Proposal or (iv) approve or recommend, or propose to approve or recommend, or execute or enter into any letter of intent, agreement in principle, merger agreement, acquisition agreement, option agreement or other similar agreement or propose publicly or agree to do any of the foregoing related to any Acquisition Proposal.
(b) CMBC agrees that it will, and will cause its officers, directors and representatives to, immediately cease and cause to be terminated any activities, discussions or negotiations existing as of the date of this Agreement with any parties conducted heretofore (other than IBKC) with respect to any Acquisition Proposal informing them that the Board of Directors no longer seeks the making of any Acquisition Proposals.
(c) CMBC agrees that it will use reasonable efforts to promptly inform its directors, officers, key employees, agents and representatives of the obligations undertaken in this Section 6.8.
(d) Notwithstanding the provisions of Section 6.8(a) of this Agreement, if any Person after the date of this Agreement submits to CMBCs board of directors an unsolicited, bona fide, written Acquisition Proposal, and CMBCs board of directors reasonably determines in good faith, after receipt of advice from outside legal counsel, that the failure to engage in discussions with such Person concerning such Acquisition Proposal may cause CMBCs board of directors to breach its fiduciary duties to CMBC and its shareholders, and after consultation with its financial advisor, then, in such case, (i) CMBC may (A) furnish information about its business to such Person under protection of an appropriate confidentiality agreement containing customary limitations on the use and disclosure of all non-public written or oral information furnished to such Person, provided that CMBC must contemporaneously furnish to IBKC all such non-public information furnished to such Person, and (B) negotiate and participate in discussions and negotiations with such Person; and (ii) if CMBCs board of directors determines that such an Acquisition Proposal is a Superior Proposal (defined below), CMBCs board of directors may (subject to the provisions of this Section 6.8) (A) withdraw or adversely modify its approval or recommendation of the Merger and recommend such Superior Proposal or (B) terminate this Agreement, in each case, (i) at any time after five (5) Business Days following IBKCs receipt of written notice (a Notice of Superior Proposal) advising IBKC that CMBCs board of directors has received a Superior Proposal and enclosing a copy of the Acquisition Proposal, identifying the Person submitting the Superior Proposal, specifying the material terms and conditions of such Superior Proposal, and (ii) subject to IBKCs Right of First Refusal (defined below). In the event IBKC elects not to exercise the Right of First Refusal, CMBC shall provide IBKC with a final written notice of acceptance before or simultaneous with accepting any Superior Proposal. For purposes of this Agreement, Superior Proposal means any unsolicited, bona fide, written Acquisition Proposal for consideration consisting of cash and/or securities, and otherwise on terms which CMBCs board of directors determines, after consultation with its financial advisor, are more favorable to CMBCs shareholders (in their capacities as shareholders) from a financial point of view than the
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Merger after giving effect to the provisions of Section 9.2 (or other revised proposal submitted by IBKC). For the purposes of this Section 6.8(d), an Acquisition Proposal shall be bona fide if the board of directors of CMBC reasonably determines that the Person submitting such Acquisition Proposal is capable, from a financial, regulatory and other appropriate perspectives, of consummating such Acquisition Proposal on the terms proposed.
(e) IBKC shall have the right (Right of First Refusal) for five (5) Business Days after receipt of Notice of Superior Proposal to make such adjustments in the terms and conditions of this Agreement as would enable CMBC to proceed with the Merger on the basis of such adjusted terms. If IBKC fails to exercise such Right of First Refusal within the time herein specified, CMBC shall be at liberty to accept the Superior Proposal, subject to the obligations of CMBC pursuant to Section 9.2 hereof.
6.9 Agreement as to Efforts to Consummate. Subject to the terms and conditions of this Agreement and its fiduciary duties under applicable law, each Warrantor agrees to use, and to cause its Subsidiaries to use, its reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things, necessary, proper or advisable under applicable laws and regulations to consummate and make effective, as soon as practicable after the date of this Agreement, the transactions contemplated by this Agreement, including, without limitation, using its reasonable efforts to lift or rescind any injunction or restraining order or other order adversely affecting the ability of any party hereto to consummate the transactions contemplated hereby. Each Warrantor shall use, and shall cause each of its Subsidiaries to use, its reasonable efforts to obtain consents of all third parties and governmental bodies necessary or desirable for the consummation of the transactions contemplated by this Agreement. This Section 6.9 shall not require either Warrantor to waive any condition to such Warrantors obligation to consummate the Merger.
6.10 Operating Functions. CMBC and CSB shall cooperate with IBKC and IBERIABANK in connection with planning for the efficient and orderly combination of the parties and the operation of CSB after the Merger, and in preparing for the consolidation of appropriate operating functions to be effective on the Effective Date.
6.11 Preservation of Business. CMBC shall use its reasonable efforts to preserve the possession and control of all of CMBCs and CSBs assets (other than those consumed or disposed of for value in the ordinary course), and the goodwill of customers and others having business relations with them, and will do nothing knowingly to impair their ability keep and preserve their businesses as they exist on the date hereof. From the date hereof until the Effective Date, CSB (i) shall notify IBERIABANK prior to establishing the rates to be paid by CSB on its deposit accounts if such rate change is not in the ordinary course of business and consistent with CMBCs past practices as disclosed on Schedule 6.12 hereof, (ii) shall confer with IBERIABANK not less than once every two weeks to review the conduct of CMBCs loan approval process, and (iii) shall notify IBERIABANK promptly of any change that may reasonably be expected to result in a Material Adverse Effect on the Credits identified in Section 5.8(a) of which it becomes aware.
6.12 Issuance of IBKC Common Stock. IBKC shall, prior to the Closing, take such action as is required to authorize and reserve for issuance the IBKC Common Stock to the shareholders of CMBC pursuant to the Merger, and to permit such IBKC Common Stock to be approved for listing and quotation on the NASDAQ Global Select Market.
6.13 Support Agreements. CMBC shall use its reasonable efforts to deliver to IBKC within five (5) days of the date hereof a Support Agreement executed by each CMBC director substantially in the form of Exhibit II.
6.14 Agreement Regarding Certain Credits. Except in the case of fraud, no deterioration or adverse change to any nonaccrual or substandard Credit that was reviewed by IBKC or IBERIABANK during their due diligence examination of CMBC prior to the date of this Agreement will result in any breach of a representation, warranty, covenant or agreement hereunder or will constitute a basis for the termination of this Agreement or a change to any of the terms and conditions of this Agreement.
6.15 Bank Merger. CMBC will, and will cause CSB to, take such action as IBKC shall reasonably deem necessary or advisable so that, on or as soon as practicable after the Effective Date as determined by IBKC, CSB will merge into IBERIABANK (the Bank Merger).
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SECTION VII.
ADDITIONAL AGREEMENTS
7.1 Registration Statement; Shareholder Approval.
(a) The Warrantors shall cooperate in the preparation of the Registration Statement. IBKC shall, as soon as practicable, file the Registration Statement with the SEC, and the Warrantors shall use their best efforts to cause the Registration Statement to become effective under the 1933 Act as promptly as practicable after filing. IBKC shall provide CMBC and its counsel with a reasonable opportunity to review and comment on the Registration Statement, and shall incorporate all appropriate comments thereto, prior to the time it is initially filed with the SEC or any amendments are filed with the SEC. IBKC shall take, and CMBC shall cooperate with IBKC in connection with, any action required to be taken under the applicable state Blue Sky or securities laws in connection with the issuance of shares of IBKC Common Stock upon consummation of the Merger. Each Warrantor shall furnish all information concerning it and the holders of its capital stock as the other Warrantor may reasonably request in connection with such action. CMBC and IBKC shall promptly notify the other party if at any time it becomes aware that the Registration Statement contains any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading. In such event, CMBC shall cooperate with IBKC in the preparation of a supplement or amendment to such Registration Statement that corrects such misstatement or omission, and IBKC shall file an amended Registration Statement with the SEC, and each of CMBC and IBKC shall mail an amended Proxy Statement to CMBCs shareholders.
(b) CMBC shall call a Shareholders Meeting for the purpose of considering and voting upon the Merger. In connection with the Shareholders Meeting, (i) CMBC shall mail the Proxy Statement to its shareholders, (ii) each Warrantor shall furnish to the other Warrantor all information concerning it and its Subsidiaries that the other Warrantor may reasonably request in connection with the Proxy Statement, and (iii) the Board of Directors of CMBC, subject to its fiduciary duties under applicable law, recommend to its shareholders the approval of this Agreement and cause CMBC to use its reasonable efforts to obtain such shareholder approval.
7.2 Tax Opinion. IBKC agrees to use its reasonable efforts to obtain a written opinion of Jones, Walker, Waechter, Poitevent, Carrère & Denègre, LLP, addressed to the Warrantors and reasonably satisfactory to CMBCs counsel, dated the date of the Closing, subject to customary representations and assumptions, and substantially to the effect that:
(i) the Merger will be treated for Federal income tax purposes as a reorganization within the meaning of Section 368(a)(1)(A) of the Code, and IBKC and CMBC will each be a party to the reorganization within the meaning of Section 368(b) of the Code;
(ii) no gain or loss will be recognized by IBKC or CMBC as a result of the Merger;
(iii) a shareholder of CMBC who receives IBKC Common Stock and cash in exchange for such shareholders shares of CMBC Common Stock generally will recognize gain, but not loss, to the extent of the lesser of: (1) the excess, if any, of (a) the sum of the aggregate fair market value of the IBKC Common Stock received (including any fractional share of IBKC Common Stock deemed to be received and exchanged for cash) and the amount of cash received (including any cash received in lieu of a fractional share of IBKC Common Stock) over (b) the shareholders aggregate tax basis in the shares of CMBC Common Stock exchanged in the Merger; and (2) the amount of cash received;
(iv) the aggregate tax basis of the IBKC Common Stock received by a shareholder of CMBC who exchanges such shareholders CMBC Common Stock in the Merger will equal such shareholders aggregate tax basis in the shares of CMBC Common Stock being exchanged, reduced by any amount allocable to a fractioned
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share interest of IBKC Common Stock for which cash is received and by the amount of any cash consideration received, and increased by the amount of taxable gain, if any recognized by such shareholder in the Merger; and
(v) the holding period of the shares of IBKC Common Stock received in the Merger will include the period during which the shares of CMBC Common Stock surrendered in exchange therefore were held, provided such shares of CMBC Common Stock were held as capital assets at the Effective Date.
7.3 Press Releases. IBKC and CMBC shall cooperate with each other in the development and distribution of all news releases and other public disclosures with respect to this Agreement or any of the transactions contemplated hereby, and except as may be otherwise required by law, neither IBKC nor CMBC shall issue any news release, or other public announcement or communication with respect to this Agreement without first consulting with the other party and using its reasonable efforts to provide the other party with the proposed news release, public announcement or communication prior to its distribution. It is understood that IBKC shall assume primary responsibility for the preparation of joint press releases relating to this Agreement.
7.4 Applications. The Warrantors shall, and shall cause their Subsidiaries to, as soon as practicable, prepare and file applications with the appropriate Regulatory Authorities seeking the approvals necessary to consummate the transactions contemplated by this Agreement. Each Warrantor shall have the right to review and approve in advance all characterizations of the information relating to that party and any of its Subsidiaries that appear in any filing made in connection with the transactions contemplated by this Agreement with any Regulatory Authority. In addition, each Warrantor shall furnish to the other party for review a copy of each such filing made in connection with the transactions contemplated by this Agreement with any Regulatory Authority prior to its filing. The Warrantors shall provide copies of all such filings to each other within two (2) business days after such filings are made and shall promptly inform each other of all substantive regulatory contacts concerning the transactions contemplated by this Agreement.
7.5 Medical Claims. In the event that IBKC determines that at or subsequent to Closing, it will terminate or consolidate any CMBC or CMBC Subsidiary health plans, upon the request of IBKC, CMBC and its Subsidiaries will, prior to the Effective Date, encourage their employees to submit promptly all bills and receipts representing claims for reimbursement of medical expenses incurred prior to the effective date of such termination or consolidation.
7.6 CSB Profit Sharing and 401(k) Plan. Prior to the Effective Date, the CMBC Board of Directors shall adopt a resolution providing that the CSB Profit Sharing and 401(k) Plan (the Plan) shall terminate as of the Effective Date. All outstanding Plan indebtedness shall be repaid as soon as practicable following the Effective Date, and the balance of the shares and any other assets remaining in any loan suspense account shall be allocated and distributed to Plan participants (subject to the receipt of a favorable determination letter from the Internal Revenue Service), as provided for in the Plan and unless otherwise required by applicable law. Prior to the Effective Date, CSB, and following the Effective Date, IBERIABANK, shall use their respective best efforts in good faith to obtain such favorable determination letter (including, but not limited to, making such changes to the Plan and the proposed allocations as may be requested by the Internal Revenue Service as a condition to its issuance of a favorable determination letter). Prior to the Effective Date, CSB, and following the Effective Date, IBERIABANK, will adopt such amendments to the Plan as may be reasonably required by the Internal Revenue Service as a condition to granting such favorable determination letter on termination. Following the effective date of the Plans termination, neither CSB, prior to the Effective Date, nor IBERIABANK, following the Effective Date, shall make any distribution from the Plan except as may be required by applicable law until receipt of such favorable determination letter. Any distributions may, at the recipients option, be rolled into a defined contribution plan of IBERIABANK (or IBKC, as the case may be), subject to IBKCs discretion: (i) to reject any such rollover if it may reasonably jeopardize the qualified status of such IBERIABANK or IBKC plan; and (ii) to reject non-cash rollovers or rollovers of plan loans. In the case of a conflict between the terms of this Section 7.6 and the terms of the Plan, the terms of the Plan shall control; provided, however, in the event of any such conflict, CSB, before the Effective Date, and IBERIABANK, after the Effective Date, shall use their best efforts to cause the Plan to be amended to conform to the requirements of this Section 7.6. Additionally, the Plan trustees shall resign and IBKC shall appoint new trustees of the Plan as of the Effective Date.
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7.7 Employment Agreements. As of the Effective Date, IBKC agrees that Roy M. Raftery, Jr. (the Employee) will enter into an Employment Agreement with IBKC substantially in the form of Exhibit III (the Post-Merger Employment Agreement). The Post-Merger Employment Agreement will provide upon termination thereof substantially the same medical benefit coverage as the Employees current Change of Control Agreement provides. The existing employment agreement, if any, of the Employee with CMBC and the CSB Subsidiaries listed on Schedule 7.7 (the Pre-Merger Employment Agreement) shall be terminated as of the Effective Date and superseded by the Post-Merger Employment Agreement. The Employee shall receive any payments that he is entitled to receive under his existing Pre-Employment Agreement on the Effective Date (and, as applicable, Schedules 2.3(a), 2.3(b), 2.3(c) and/or 2.3(d)); provided, however, that no such payments or benefits in connection with the Merger shall constitute an excess parachute payment under Section 280G of the Code.
SECTION VIII.
CONDITIONS PRECEDENT TO OBLIGATIONS TO CONSUMMATE
The obligation of each Warrantor to consummate the Merger is subject to the satisfaction of each of the following conditions, unless waived by such party pursuant to Section 10.5 of this Agreement:
8.1 Representations and Warranties. The representations and warranties of the other Warrantor set forth or referred to in this Agreement shall be true and correct as of the date of this Agreement and as of the time of the Closing with the same effect as though all such representations and warranties had been made on and as of the time of the Closing, except (i) for any such representations and warranties made as of a specified date, which shall be true and correct as of such date or (ii) as expressly contemplated or permitted by this Agreement, in each case subject to the standard set forth in Section 5.21 hereof.
8.2 Performance of Agreements and Covenants. Each and all of the agreements and covenants of the other Warrantor to be performed and complied with pursuant to this Agreement and the other agreements contemplated hereby prior to the time of the Closing shall have been duly performed and complied with by it in all material respects.
8.3 Certificates. Each Warrantor shall have delivered to the other Warrantor a certificate, dated as of the time of the Closing and signed on its behalf by its chief executive officer and its chief financial officer, to the effect that the conditions of its obligations set forth in Section 8.1 and Section 8.2 of this Agreement with respect to it have been satisfied, all in such reasonable detail as the other Warrantor shall reasonably request.
8.4 Shareholder Approval. The shareholders of CMBC shall have approved this Agreement, the Merger and the consummation of the transactions contemplated hereby, as and to the extent required by law and by the provisions of the governing instruments of CMBC, and CMBC shall have furnished to IBKC certified copies of resolutions duly adopted by its shareholders evidencing the same. Holders of not more than 15% of the CMBC Common Stock shall have exercised statutory rights of dissent and appraisal pursuant to the LBCL.
8.5 Consents and Approvals. All material approvals and authorizations of, filings and registrations with, and notifications to, all Regulatory Authorities required for consummation of the Merger and the Bank Merger shall have been obtained or made and shall be in full force and effect and all waiting periods required by law shall have expired. Any approval obtained from any Regulatory Authority which is necessary to consummate the transactions contemplated hereby shall not contain any material adverse non-standard term or condition which in the reasonable judgment of the Board of Directors of IBKC so materially and adversely affects the economic or business assumptions of the transactions contemplated by this Agreement so as to render inadvisable the consummation of the Merger and the Bank Merger. To the extent that any lease, license, loan or financing agreement or other contract or agreement to which Warrantor is a party requires the consent of or waiver from the other party thereto as a result of the transactions contemplated by this Agreement, such consent or waiver shall have been obtained, unless the failure to obtain such consent or waiver would not, following the Merger, have a Material Adverse Effect on such Warrantor.
8.6 Termination of Employment and COC Agreements. The COC Agreement with CMBCs Chief Executive Officer shall have been terminated. In addition, no more than two (2) of the other Employment and COC
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Agreements listed in Schedule 2.3(a) and Schedule 2.3(b), respectively, that IBKC has designated in writing at least twenty (20) days prior to the Effective Date to be terminated in accordance with this Agreement, shall not have been terminated prior to the Effective Date.
8.7 Legal Proceedings. No Warrantor shall be subject to any order, decree or injunction of a court or agency of competent jurisdiction which enjoins or prohibits consummation of any of the transactions contemplated by this Agreement.
8.8 Tax Matters. Each Warrantor shall have received the tax opinion addressed to it referred to in Section 7.2 of this Agreement. No payments or benefits to officers of CMBC or its Subsidiaries in connection with the Merger shall constitute an excess parachute payment under Section 280G of the Code (or, if so, CMBC may satisfy this condition by reducing the Merger Consideration by an amount equal to the additional income tax incurred by CMBC and its Subsidiaries as a result of the disallowance of the deduction applicable thereto).
8.9 Registration Statement. The Registration Statement shall be effective under the 1933 Act, no stop order suspending the effectiveness of the Registration Statement shall be in effect, and no proceeding for such purpose shall be pending before or threatened by the SEC.
8.10 Simultaneous Transactions. The Warrantors shall have executed all documents and taken all such other action as are necessary to effectuate the Merger other than any post-Merger filings necessary to report and complete the Merger, and the Warrantors shall have irrevocably authorized their agents to make any such post-Merger filings in its behalf.
8.11 Legal Opinions. Each Warrantor shall have received an opinion from counsel for the other Warrantor, dated as of the Effective Date, with respect to such matters and in such form as shall be agreed upon between counsel for each Warrantor.
8.12 NASDAQ Listing. The shares of IBKC common stock to be issued in the Merger shall have been authorized for listing on the NASDAQ Global Select Market.
8.13 Payment of Merger Consideration. As a condition to CMBCs obligation to consummate the Merger, IBKC shall have delivered the Merger Consideration to the Exchange Agent on or before the Closing Date and the Exchange Agent shall provide CMBC with a certificate evidencing such delivery.
8.14 No Material Adverse Effect. Since December 31, 2010, no event has occurred or circumstance arisen that, individually or in the aggregate, has had a Material Adverse Effect on the other Warrantor.
SECTION IX.
TERMINATION
9.1 Termination. Notwithstanding any other provision of this Agreement and notwithstanding the approval of this Agreement by the shareholders of CMBC, this Agreement may be terminated and the Merger abandoned at any time prior to the Closing:
(a) By mutual consent of the Boards of Directors of the Warrantors; or
(b) By the Board of Directors of either Warrantor (provided that the terminating party is not then in material breach of any representation, warranty, covenant or other agreement contained in this Agreement) in the event of a material breach by the other Warrantor of any representation, warranty, covenant or agreement of such other Warrantor contained herein which would result in the failure to satisfy the closing condition set forth in Section 8.1 or 8.2 of this Agreement, which breach cannot be or has not been cured within thirty (30) days after the giving of a written notice to the breaching Warrantor of such material breach; or
(c) By the Board of Directors of either Warrantor in the event that the Merger shall not have been consummated within twelve (12) months after the date of this Agreement (unless the failure of the Closing to occur
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by such date shall be due to the failure of the party seeking to terminate this Agreement to perform or observe the covenants and agreements of such party set forth herein), and no consent to extend the date of the Closing beyond such twelve (12) month period has been granted; or
(d) By the Board of Directors of either Warrantor in the event any approval of any Regulatory Authority required for consummation of the Merger and the other transactions contemplated hereby shall have been denied by final non-appealable action of such Regulatory Authority or if any such action taken by such Regulatory Authority is not appealed within the time limit for appeal; or
(e) By the Board of Directors of IBKC, in the event any such approval of any Regulatory Authority required for consummation of the Merger and the other transactions contemplated hereby is conditioned upon the satisfaction of any material adverse condition or requirement that, in the reasonable opinion of IBKC, would so materially adversely affect its business or the economic benefits of the Merger as to render consummation of the Merger inadvisable or unduly burdensome, and the time period for appeals and request for reconsideration has run; or
(f) By the Board of Directors of either Warrantor, if the shareholders of CMBC fail to approve this Agreement and the consummation of the transactions contemplated hereby at the Shareholders Meeting; or
(g) By the Board of Directors of either Warrantor (provided that the terminating party is not then in material breach of any representation, warranty, covenant or other agreement contained in this Agreement) in the event that any of the conditions precedent to the obligations of such Warrantor to consummate the Merger cannot be satisfied or fulfilled within twelve (12) months after the date of this Agreement; or
(h) By the Board of Directors of IBKC if the Board of Directors of CMBC shall, or shall have resolved to, withdraw, modify or change its recommendation to CMBCs shareholders of this Agreement or the Merger, or recommend any Acquisition Proposal other than the Merger; or
(i) By the Board of Directors of either Warrantor if the other Warrantor has experienced a Material Adverse Effect, which is not remedied or cured within thirty (30) days after notice of intention to terminate is given by the Warrantor invoking this Section 9.1(i), which notice shall specify the nature of the matter or matters constituting such Material Adverse Effect and which are the basis of such intention; provided, however, that the right to terminate that is specified in such notice of intention shall itself terminate unless notice of termination is given by such Warrantor within fifteen (15) days following the end of such remedial or curative period; or
(j) By the Board of Directors of CMBC, pursuant to Section 6.8(d).
9.2 Effect of Termination.
(a) In the event of the termination and abandonment of this Agreement pursuant to Section 9.1 of this Agreement, this Agreement shall become void and have no effect and the parties hereto (and the Subsidiaries of the parties and the officers and directors of the parties and their Subsidiaries) will be relieved of all obligations and liabilities under this Agreement, except that: (i) the provisions of Sections IX and X hereof shall survive any such termination and abandonment; (ii) a termination pursuant to Section 9.1(b) of this Agreement shall not relieve a breaching Warrantor from liability for any breach giving rise to such termination and the provisions of Section 9.2(c) or (d), as applicable; (iii) each Warrantor shall remain obligated under, and liable for any breach of, any of the provisions of this Agreement that survive its termination.
(b) In the event this Agreement is terminated by IBKC (i) pursuant to Section 9.1(b) hereof because of a willful breach of a representation, warranty, covenant or other agreement by CMBC, or (ii) pursuant to Section 9.1(h) hereof because the Board of Directors of CMBC shall have withdrawn, modified or changed its recommendation to CMBCs shareholders other than in the exercise of the CMBC Boards fiduciary obligations after delivery to IBKC of a notice of intention to terminate pursuant to Section 9.1(i) which is not remedied or cured by IBKC prior to the withdrawal, modification or change, or by CMBC pursuant to Section 9.1(k) hereof, and within twelve (12) months after the date of any such termination CMBC, without IBKCs prior written consent, accepts in a written agreement an Acquisition Proposal, then CMBC shall pay IBKC $6,000,000 (the Termination Fee), which
- 25 -
shall be paid as follows: (a) $3,000,000 shall be paid not later than the fifth Business Day following the date CMBC accepts such Acquisition Proposal, and (b) $3,000,000 shall be paid on the earlier of the date of consummation of such Acquisition Proposal or six (6) months from the date of acceptance of the Acquisition Proposal. Upon payment of the Termination Fee pursuant to this Section 9.2(b), IBKC will not have any other rights or claims against CMBC or its Subsidiaries, or their respective officers and directors, under this Agreement.
(c) In the event this Agreement is terminated by CMBC (i) pursuant to Section 9.1(b) hereof because of a willful breach of a representation, warranty, covenant or other agreement by IBKC, or (ii) pursuant to Section 9.1(e) hereof, then IBKC shall pay CMBC $4,000,000 (the Termination Fee) not later than the fifth Business Day following the date CMBC provides notice to IBKC of its termination and the reasons for such termination. Upon payment of the Termination Fee pursuant to this Section 9.2(c), CMBC will not have any other rights or claims against IBKC or its Subsidiaries, or their respective officers and directors, under this Agreement.
(d) In the event this Agreement is terminated as a result of IBKCs failure to satisfy any of its representations, warranties or covenants set forth herein, IBKC shall reimburse CMBC for its reasonable out-of-pocket expenses relating to the Merger in an amount not to exceed $500,000; provided however, that this provision shall not apply in circumstances in which IBKC is entitled to a Termination Fee. The expense reimbursement provided for in this Section 9.2(d) shall be IBKCs sole and exclusive remedy and shall be deemed to be liquidated damages.
(e) In the event this Agreement is terminated as a result of CMBCs failure to satisfy any of its representations, warranties or covenants set forth herein, CMBC shall reimburse IBKC for its reasonable out-of-pocket expenses relating to the Merger in an amount not to exceed $500,000; provided, however, that this provision shall not apply in circumstances in which CMBC is entitled to a Termination Fee. The expense reimbursement provided for in this Section 9.2(e) shall be CMBCs sole and exclusive remedy and shall be deemed to be liquidated damages.
9.3 Survival of Representations, Warranties and Covenants. The respective representations, warranties, obligations, covenants and agreements of the Warrantors shall not survive the Effective Date, except for those covenants and agreements contained in this Agreement which by their terms apply in whole or in part after the Effective Date; provided, however, that no such representations, warranties or covenants shall be deemed to be terminated or extinguished so as to deprive any Warrantor (or any director, officer or controlling Person thereof) of any defense in law or equity which otherwise would be available against the claims of any Person, the aforesaid representations, warranties and covenants being material inducements to consummation by the Warrantors of the transactions contemplated hereby.
SECTION X.
MISCELLANEOUS
10.1 Expenses.
(a) Except as otherwise provided in this Agreement, each of the parties hereto shall bear and pay all costs and expenses, incurred by it or on its behalf in connection with the transactions contemplated hereunder, including fees and expenses of its own financial or other consultants, investment bankers, accountants and counsel.
(b) Final settlement with respect to payment of fees and expenses by one party to the other hereunder shall be made within thirty (30) days of the termination of this Agreement (except to the extent provided otherwise in Section 9.2(b)).
10.2 Brokers and Finders. Except as set forth on Schedule 10.2, CMBC represents and warrants that neither it nor any of its officers, directors, employees, affiliates or Subsidiaries has employed any broker or finder or incurred any liability for any financial advisory fees, investment bankers fees, brokerage fees, commissions or finders fees in connection with this Agreement or the transactions contemplated hereby.
- 26 -
10.3 Entire Agreement. Except as otherwise expressly provided herein, this Agreement, including the exhibits and schedules hereto, and the Confidentiality Agreement contain the entire agreement among the parties hereto with respect to the transactions contemplated hereunder and thereunder, and such agreements supersede all prior arrangements or understanding with respect thereto, written or oral. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors. Nothing in this Agreement, expressed or implied, is intended to confer upon any party, other than the parties hereto or their respective successors, any rights, remedies, obligations or liabilities under or by reason of this Agreement except for (i) the rights of shareholders of CMBC to receive the Merger Consideration following the Effective Date and (ii) the provisions of Section 4.4, which shall inure to the benefit of and be enforceable by the Persons referenced therein.
10.4 Amendments. To the extent permitted by law, this Agreement may be amended by a subsequent writing signed by each of the parties hereto upon the approval of the boards of directors of such parties; provided, however, that the provisions of this Agreement relating to the manner or basis in which shares of CMBC Common Stock will be exchanged for the Merger Consideration shall not be amended after the CMBC Shareholders Meeting without the requisite approval of the holders of the issued and outstanding shares of CMBC Common Stock entitled to vote thereon. The parties hereto may, without approval of their respective boards of directors, make such technical changes to this Agreement, not inconsistent with the purposes hereof, as may be required to effect or facilitate any governmental approval or acceptance of the Merger or of this Agreement or to effect or facilitate any filing or recording required for the consummation of any of the transactions contemplated hereby or thereby. CMBC agrees to take such reasonable actions requested by IBKC as may be reasonably necessary to modify the structure of, or to substitute parties to (so long as such substitute is a Subsidiary of IBKC) the transactions contemplated hereby; provided, however, that such modification shall not change the amount, kind, manner or basis in which shares of CMBC Common Stock will be exchanged for IBKC Common Stock or abrogate the covenants and other agreements contained in this Agreement, result in adverse tax consequences to the shareholders of CMBC, materially delay consummation of the Merger or jeopardize the timely receipt of Regulatory Approvals.
10.5 Waivers. Prior to the Effective Date, each party hereto, acting through its Board of Directors or chief executive officer or other authorized officer, shall, as to such partys rights hereunder, have the right (i) to waive any default in the performance of any term of this Agreement by any other party, (ii) to waive or extend the time for the compliance or fulfillment by any other party of any and all of the obligations under this Agreement, and (iii) to waive any or all of the conditions precedent to the obligations of such party under this Agreement. No waiver or modification of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith. No evidence of any waiver or modification shall be offered or received in evidence at any proceeding, arbitration, or litigation between the parties hereto arising out of or affecting this Agreement, or the rights or obligations of the parties hereunder, unless such waiver or modification is in writing, duly executed as aforesaid.
10.6 No Assignment. No party hereto may assign any of its rights or obligations under this Agreement to any other Persons, without the express written consent of the other parties and any such purported assignment without such requisite consent shall be null and void.
10.7 Notices. All notices or other communications which are required or permitted hereunder shall be in writing and sufficient if delivered by hand, by facsimile transmission, by registered or certified mail, postage pre-paid, or by overnight courier, to the Persons at the addresses set forth below (or at such other address as may be provided hereunder), and shall be deemed to have been delivered as of the date so delivered:
If to IBKC and/or IBERIABANK:
IBERIABANK Corporation
200 West Congress Street
Lafayette, Louisiana 70501
Attention: Daryl G. Byrd
President and Chief Executive Officer
With a copy to:
- 27 -
Jones, Walker, Waechter, Poitevent, Carrère & Denègre, L.L.P.
499 South Capitol Street, SW, Suite 600
Washington, D.C. 20003
Attention: Edward B. Crosland, Jr., Esq.
If to CMBC and/or CSB:
Cameron Bancshares, Inc.
2901 Ryan Street
Lake Charles, Louisiana 70601
Attention: Roy M. Raftery, Jr.
President and Chief Executive Officer
With a copy to:
Gordon Arata McCollam Duplantis & Eagan LLC
1980 Post Oak Boulevard, Suite 1800
Houston, Texas 77056
Attention: Cathy E. Chessin, Esq.
10.8 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Louisiana without regard to the conflict of laws principles thereof.
10.9 Counterparts; Facsimile. This Agreement may be executed in one or more counterparts, each of which shall constitute one and the same instrument. This Agreement may be executed and delivered by facsimile signature.
10.10 Captions. The captions contained in this Agreement are for reference purposes only and are not part of this Agreement.
- 28 -
IN WITNESS WHEREOF, each of the parties to this Agreement has caused this Agreement to be executed on its behalf and attested by officers thereunto duly authorized all as of the day and year first above written.
IBERIABANK CORPORATION | CAMERON BANCSHARES, INC. | |||||||
By: | /s/ Daryl G. Byrd |
By: | /s/ Roy M. Raftery, Jr. | |||||
Daryl G. Byrd | Roy M. Raftery, Jr. | |||||||
President and Chief Executive Officer | President and Chief Executive Officer |
Exhibit 99.1
FOR IMMEDIATE RELEASE
March 11, 2011
IBERIABANK Corporation contacts:
Beth A. Ardoin, Director of Communications (337) 521-4701 bardoin@iberiabank.com
John R. Davis, Senior Executive Vice President (337) 521-4005 jdavis@iberiabank.com |
Cameron Bancshares, Inc. contact:
Roy M. Raftery, Jr., President and CEO (337) 312-7050 rraftery@csbbanking.net |
IBERIABANK Corporation Announces Acquisition of Cameron Bancshares, Inc.
| Combination of two high-quality and well capitalized institutions |
| Contiguous markets with no branch overlap, but significant synergies |
| Accretive to EPS and slightly dilutive to tangible book value per share |
| Strong cultural and business fit dramatically reduces risk |
| No projected impact on IBERIABANK Corporations capital ratios |
LAFAYETTE, LOUISIANA IBERIABANK Corporation (NASDAQ: IBKC) (IBERIABANK), holding company of the 123-year-old IBERIABANK (www.iberiabank.com) and Cameron Bancshares, Inc. (Cameron), the holding company of Lake Charles, Louisiana-based Cameron State Bank (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 Camerons 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.
1
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 IBERIABANKs 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, Carrère & Denègre, 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
2
provision. In the fourth quarter of 2010, Cameron had a 4.37% net interest margin with a 0.77% cost of funds.
Pending Acquisition of OMNI BANCSHARES, Inc.
On February 22, 2011, IBERIABANK announced the signing of a definitive agreement to acquire OMNI BANCSHARES, Inc. (OMNI), the holding company of Metairie, Louisiana-based OMNI BANK. OMNI has 13 bank branch offices in the greater New Orleans area and one office in Baton Rouge. At December 31, 2010, OMNI had $735 million in assets, $646 million in deposits, and $31 million in equity. The OMNI transaction is expected to close in the second quarter of 2011, pending receipt of required regulatory approvals and the approval of OMNI shareholders.
IBERIABANK Corporation
IBERIABANK is a multi-bank financial holding company with 226 combined offices, including 145 bank branch offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, and Florida, 27 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 54 locations in 12 states.
IBERIABANKs common stock trades on the NASDAQ Global Select Market under the symbol IBKC. IBERIABANKs market capitalization was approximately $1.5 billion, based on the NASDAQ closing stock price on March 10, 2011.
The following 12 investment firms currently provide equity research coverage on IBERIABANK:
| B. Riley & Company |
| FIG Partners, LLC |
| Howe Barnes Hoefer & Arnett, Inc. |
| Keefe, Bruyette & Woods |
| Morgan Keegan & Company, Inc. |
| Raymond James & Associates, Inc. |
| Robert W. Baird & Company |
| Stephens, Inc. |
| Sterne, Agee & Leach |
| Stifel Nicolaus & Company |
| SunTrust Robinson-Humphrey |
| Wunderlich Securities |
Conference Call
The Company will host a live conference call on Friday, March 11, 2011, beginning at 10:00 a.m. Central Time. Interested parties may access the conference call by dialing 1-800-230-1093. The confirmation code for the call is 195664. A replay of the call will be available beginning at 1:00 p.m. Central Time on March 11, 2011 until midnight Central Time on March 18, 2011 by dialing 1-800-475-6701. The confirmation code for the replay is 195664. The Company has prepared a PowerPoint presentation that supplements information contained in this press release. The PowerPoint presentation may be accessed on IBERIABANKs web site, www.iberiabank.com, under Investor Relations and then Presentations.
3
This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. In general, forward-looking statements usually use words such as may, believe, expect, anticipate, intend, will, should, plan, estimate, predict, continue and potential or the negative of these terms or other comparable terminology. Forward-looking statements represent managements beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. All forward-looking statements are subject to risks and uncertainties that could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. Factors of particular importance include, but are not limited to: (1) changes in general, national or regional economic conditions; (2) unprecedented volatility in the global economy; (3) risk that the future business operations of IBERIABANK Corporation will not be successful; (4) risk that we will not realize all of the anticipated benefits from our acquisitions of Cameron Bancshares, Inc. and OMNI BANCSHARES, Inc.; (5) risk that the businesses of IBERIABANK Corporation, Cameron Bancshares, Inc. and OMNI BANCSHARES, Inc. may not be combined successfully, or such combination may take longer, be more difficult, time-consuming or costly to accomplish than expected; (6) failure of the parties to satisfy the closing conditions in the merger agreement in a timely manner; (7) failure of the stockholders of Cameron Bancshares, Inc. or OMNI BANCSHARES, Inc. to approve the mergers; (8) changes in interest rates or credit availability; (9) credit risk of our customers; (10) effects of the on-going correction in residential real estate prices and reduced levels of home sales; (11) changes in accounting and government regulations and legislation; (12) sufficiency of our allowance for loan losses; (13) geographic concentration of our markets and economic conditions in these markets; (14) risk that other governmental and regulatory approvals required for the merger may not be obtained; and (15) other factors that are set forth in the Risk Factors section, the Legal Proceedings section, the Managements Discussion and Analysis of Financial Condition and Results of Operations section and other sections of our 2010 Annual Report on Form 10-K filed with the Securities and Exchange Commission, and Cameron Bancshares, Inc. and OMNI BANCSHARES, Inc. 2009 Annual Reports. All forward-looking statements can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Consequently, no forward-looking statement can be guaranteed. Neither IBERIABANK Corporation, Cameron Bancshares, Inc. nor OMNI BANCSHARES, Inc. undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
This communication is being made in respect of the proposed merger transaction involving IBERIABANK Corporation and Cameron Bancshares, Inc. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed merger, IBERIABANK Corporation will file with the SEC a registration statement on Form S-4 that will include a proxy statement/prospectus for the stockholders of Cameron Bancshares, Inc. IBERIABANK Corporation also plans to file other documents with the SEC regarding the proposed merger transaction and the pending acquisition of OMNI BANCSHARES, Inc. Cameron Bancshares, Inc. will mail the final proxy statement/prospectus to its stockholders. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION AND ANY OTHER RELEVANT DOCUMENTS CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. The proxy statement/prospectus, as well as other filings containing information about IBERIABANK Corporation, Cameron Bancshares, Inc., and OMNI BANCSHARES, Inc. will be available without charge, at the SECs Internet site (http://www.sec.gov). Copies of the proxy statement/prospectus and the filings with the SEC that will be incorporated by reference in the proxy statement/prospectus can also be obtained, when available, without charge, from the IBERIABANK Corporation website, www.iberiabank.com, under the heading Investor Information.
Cameron Bancshares, Inc., and its respective directors, executive officers and certain other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of Cameron Bancshares, Inc. in respect of the proposed transaction. Information regarding the persons who may be deemed participants in the solicitation of the shareholders of Cameron
4
Bancshares, Inc. in connection with the proposed transaction will be set forth in the proxy statement/prospectus and other relevant documents when they are filed with the SEC.
5
![]() Acquisition of Cameron Bancshares, Inc.
March 11, 2011
Exhibit 99.2 |
![]() Safe Harbor And 425 Language
2
Statements contained in this presentation which are not historical facts and
which pertain to future operating
results
of
IBERIABANK
Corporation
and
its
subsidiaries
constitute
forward-looking
statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve
significant
risks
and
uncertainties.
Actual
results
may
differ
materially
from
the
results
discussed
in
these forward-looking statements. Factors that might cause such a
difference include, but are not limited to, those discussed in the
Companys periodic filings with the SEC. In connection with the
proposed merger, IBERIABANK Corporation will file a Registration Statement
on
Form
S-4
that
will
contain
a
proxy
statement/prospectus.
INVESTORS
AND
SECURITY
HOLDERS
ARE
URGED
TO CAREFULLY READ THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED
TRANSACTION WHEN IT BECOMES AVAILABLE, BECAUSE IT WILL CONTAIN IMPORTANT
INFORMATION. Investors and security holders may
obtain
a
free
copy
of
the
proxy
statement/prospectus
(when
it
is
available)
and
other
documents
containing information about IBERIABANK Corporation, Cameron Bancshares, Inc.
and OMNI BANCSHARES Inc., without charge, at the SEC's
web site at http://www.sec.gov. Copies of the proxy statement/prospectus
and the SEC filings that will be incorporated by reference in the proxy
statement/prospectus may also be obtained
for
free
from
the
IBERIABANK
Corporation
website,
www.iberiabank.com,
under
the
heading
Investor
Information.
This
communication
is
not
an
offer
to
purchase
shares
of
Cameron
Bancshares,
Inc.
common
stock
or OMNI BANCSHARES, Inc. common stock, nor is it an offer to sell shares of
IBERIABANK Corporation common stock which may be issued in either
proposed merger. Any issuance of IBERIABANK Corporation common stock
in either proposed merger would have to be registered under the Securities Act
of 1933, as amended, and such IBERIABANK Corporation common stock would
be offered only by means of a prospectus complying with the Act.
|
![]() Enter
Lake
Charles
market
through
acquisition
of
a
well
regarded
and
highly
performing
Lake Charles-based community bank
Attractive, established client base; complements our client base
Adds 22 branches and approximately $575 million of deposits
Favorable small business and retail client mix
Highly profitable institution with significant market share
Opportunity to expand middle-market and private banking markets
Combination benefits including identified cost savings and opportunity to
utilize our product set
Expected to be 3% to 5% accretive to EPS, excluding one-time merger
costs, assuming synergies fully phased-in
Maintain strong pro forma capital ratios
Internal rate of return estimated to be above 20%
Companies know one another well
Significant experience in the Lake Charles market
Comprehensive due diligence including detailed credit analysis
Similar low risk cultures and strong business fit
Proven track record of well-priced, well-integrated
transactions Successfully completed two simultaneous acquisitions
(Pulaski/ Pocahontas and Orion/Century)
Transaction Rationale
3
Compelling
Strategic
Rationale
Financially
Attractive
Low Risk |
![]() 2010 Net Income: $9.3 million
Total Loans: $408 million
Total Assets: $706 million
Total Deposits: $575 million
Total Equity: $77 million
NPAs/Total Assets: 1.34% (5-
year average of 0.43%)
Overview
Cameron Bancshares, Inc.
Markets
4
Headquartered in Lake Charles,
Louisiana (Calcasieu Parish)
Bank founded in 1966
Extremely profitable
Average ROA and
ROE of 1.45% and 14.59% over the past
5 years, respectively.
Core funded with cost of funds of 0.83%
(5-year average of 1.26%)
Focus on retail and small business
Sizeable auto lending business (6% of
loans)
Excellent marketing programs
Named Best Bank
in The Times of
Southwest Louisiana 12 straight years
and Best Bank
in Lagniappes Best of
Lake Charles readers poll 10 straight
years.
CEO Roy M. Raftery, Jr. is 68 years old
22 branches and 48 ATMs in
greater Lake Charles market area
Key MSAs: Lake Charles
Concentrated distribution system
(convenience strategy)
Financial Highlights
At December 31, 2010 |
![]() Distribution System
IBERIABANK/Cameron Markets
5 |
![]() Strengthens Our Louisiana Franchise
Lake Charles MSA
Rank
Company
Branches
Deposits
Mkt.
Share
1
Capital One
15
$ 834 27%
2
JPMorgan
12
597
19
3
IBERIABANK/
Cameron
19
538
17
4
First Federal
7
349
11
5
Hancock/
Whitney
5
250
8
6
Jeff Davis
8
234
7
7
Business First
1
105
3
8
Louisiana
Community
4
55
2
9
Midsouth
3
55
2
10
Financial Corp.
2
43
1
6
Source: SNL Financial Deposit Data as of June 2010
Cameron Branches |
![]() Greater Lake Charles Area
7
Population: 195,000
2010-2015E Population Growth: 0%
Median Household Income: $40,000
2000-2010 HH Income Growth: 14%
2010-2015E HH Income Growth: 9%
Low Unemployment Rate: 7%
Fifth Largest City in Louisiana
Major Center Of Petrochemical
Refining, Education, Tourism And
Gaming
Lake Charles MSA Parishes:
Calcasieu
Cameron
Corporate Headquarters or Significant
Operations: PPG Industries,
ConocoPhillips, Citgo Petroleum
Corporation, Trunkline LNG, Chennault
International Airport, Northrop Grumman
LAuberge du Lac Casino: 26 story hotel
with nearly 1,000 guest rooms located in
Lake Charles
tallest building between
Houston, TX and Baton Rouge, LA.
In February 2011, the Lake Charles-based
Mojito Pointe project was awarded the
last casino license in Louisiana
Home to McNeese State University and
Sowela Technical Community College |
![]() Greater Lake Charles Distribution
8
Main Office
Lake Charles
Deposits: $163 million
Ryan St. Office
Deposits: $37 million
Westlake Office
Deposits: $25 million
Maplewood Office
Deposits: $39 million
Oak Park Office
Deposits: $25 million
De Quincy Office
Deposits: $23 million
Source: Company reports at December 31, 2010 |
![]() Diligence Scope
Credit Summary
9
Total 50 people over 3 weeks; credit
team was 12 people over 1 week
Reviewed $279 million or over 70% of
the loan portfolios outstanding balances
All loans are in-market loans
Primarily small business, retail and
consumer focus
No industry concentrations
Very granular loan portfolio
Credit mark: approximately $25 million
(6% of loans).
Loan Portfolio Comments
Loan Portfolio Composition
Source: Company reports at December 31, 2010
excludes overdraft loans and loans in process
Loans
$ mm
%Total
#Notes
Avg. Size
($000)
Commercial RE
$212
53%
465
$455
RE Other
$41
10%
270
$152
Motor Vehicle
$26
6%
2,272
$11
Res 1st Mtg Family
$36
9%
484
$74
Other RE
$28
7%
331
$85
Rec, Notes, Life Ins.,
Bonds, CDs, Svgs
$24
6%
579
$41
Unsecured
$11
3%
1,379
$8
Inventory
$7
2%
22
$327
Mobile Home
$2
0%
72
$22
Boat/Airplane/Travel/
RV/Motor Cycle
$4
1%
300
$13
2nd Mtg. Family
Home
$3
1%
43
$77
Other
$10
2%
602
$16
Total Loans
$403
6,819
$59
(Include unfunded commitments) |
![]() Merger -Related Costs
Costs And Synergies
Merger Considerations
10
Approximately $11.2 million in costs:
Pay all outstanding Change in Control
agreements totaling $3.1 million
$1.8 million in contract terminations
$1.3 million in severance/retention
$1.0 million in property costs
$4.0 million other merger-related costs
Costs incurred primarily between
merger announcement and conversion
Annual Synergies
Approximately $5.5 million annually:
$3.2 million in compensation/benefits
$1.3 million IT, equipment, outside
services
$1.0 million in other cost savings
No corporate or bank board seats
One employment agreement
No stock options or warrants
No branch divestitures anticipated
Consolidate 2 offices |
![]() Transaction Overview
Consideration:
Tax-free, stock-for-stock exchange
Fixed exchange ratio of 3.464 shares of IBKC common stock
for each Cameron share
(1)
Deal Value:
$133 million
(2)
Valuation Multiples:
Price / Tangible Book: 1.7x
Core Deposit Premium: 13.4%
Adjusted Core Deposit Premium
(3)
: 12.3%
Due Diligence:
Completed comprehensive due diligence
Detailed loan and securities analysis
Cleanest credit portfolio reviewed to date
Required Approvals:
Cameron shareholder approval
Customary regulatory approvals
Timing:
Expected closing in second quarter of 2011
11
(1) Price collars up 10% (IBKC price greater than $61.81) and down 10% (IBKC price
less than $50.57), at which points the stock consideration to Cameron
shareholders becomes fixed (2) Based on IBKCs closing price of $55.64
per share as of March 10, 2011 (3)
Adjusted
core
deposit
premium
calculation
based
on
adjusted
tangible
book
value
which
is
equal
to
stated
tangible
book
value
less
the after-tax credit mark on loans at close net of allowances
|
![]() Financial Assumptions & Impact
12
Credit Mark:
$25 million, pre-tax; 6% of total Cameron loans
Including prior NCOs, represents cumulative loss of 7% of
Camerons legacy portfolio
Other Marks:
Estimates include approximately $31 million in mark to
market adjustments
Cost Savings:
Cost savings of approximately $5.5 million, pre-tax annually
Represents approximately 23% of Camerons
operating non-interest expenses
Fully achieved by the second half of 2012
Revenue synergies identified, but not included in estimates
Merger Related Costs:
Approximately $11 million, pre-tax
Conservative
Financial
Assumptions
Attractive
Financial
Impact
Accretive to EPS, excluding impact of merger-related costs, assuming
synergies fully phased-in
1% accretive to book value per share. 1% dilutive to tangible book
value per share Strong pro forma capital ratios: 11% Tangible Common
Equity/ TA and 18% Tier 1 RBC IRR estimated to be above 20%, well in
excess of our cost of capital |
![]() Pro Forma
IBKC
OMNI
Cameron
As of
Stand Alone
Stand Alone
Stand Alone
12/31/10
Cash & Equivalents
338
55
25
353
Securities
2,089
91
230
2,411
Gross Loans
6,119
525
408
7,009
Reserves
(136)
(8)
(5)
(136)
Net Loans
5,983
517
403
6,873
Goodwill
234
-
-
323
Identifiable Intangibles
30
-
-
36
Other Asset
1,352
71
47
1,486
Total Assets
10,027
735
706
11,481
Deposits
7,915
645
575
9,135
Borrowings
653
57
48
710
Other Liabilities
156
2
6
163
Total Liabilities
8,723
704
628
10,007
Non-Controlling Interests
-
-
-
-
Preferred Equity
-
-
-
-
Common Equity
1,303
31
77
1,474
Total Liabilities & Equity
10,027
735
706
11,481
Tangible Common Equity
1,040
31
77
1,115
Tangible Assets
9,763
735
706
11,122
TCE/TA
10.65%
4.23%
10.96%
10.03%
Tangible Book Value per Share
$38.68
$14.72
$112.34
$37.15
Tier 1 Leverage
11.24%
5.72%
10.96%
10.66%
Tier 1 RBC
18.48%
7.75%
16.35%
17.05%
Total Risk Based
19.74%
9.86%
17.53%
18.36%
At December 31, 2010
Pro Forma Balance Sheet And Capital Ratios
13 |
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