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 Cameron's shareholders.

Roy Raftery, junior president and CEO of Cameron, will be named as chairman of the Lake Charles region for Iberiabank after the acquisition is consummated.

Under the terms of the agreement, shareholders of Cameron will receive 3.46 shares of Iberia Bank common stock per share of Cameron common stock, subject to certain adjustments. The stock issuance is valued at approximately $133m 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 3percent to 5percent, assuming synergies are fully phased in and excluding estimated one-time and merger-related costs of approximately $11m on a pre-tax basis.

Estimated synergies include annual expense savings of approximately $6m, pre-tax, to be fully achieved by the second half of 2012. Iberia bank estimates approximately $46m in goodwill will be created with this acquisition. The estimated internal rate of return for the transaction is above 20percent, well exceeding Iberiabank’s cost of capital.

Daryl Byrd, president and CEO of Iberiabank, said: “We are excited to join forces with Cameron State Bank, the bank of choice in the Lake Charles region. 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.

“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.”

Mr Raftery said: “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. 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 Iberia Bank and we expect a very smooth transition. The client-focus of our respective companies is very compelling.”

Will the acquisition benefit the firms?

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