Iberia deal closes

FORT MYERS — In one of the richest bank deals since the beginning of the financial crisis, IberiaBank of Louisiana completed its purchase of Fort Myers-based Florida Gulf Bank, the banks announced.

The stock transaction totaled $37 million based on the closing share price of IberiaBank of $46.82 on July 31. In addition, Florida Gulf redeemed $4.1 million worth of preferred stock immediately prior to the closing of the deal.

The transaction reflects the growing realization among many community bankers that increased government regulations will make it difficult for smaller banks to grow and prosper. (Read a recent interview with Florida Gulf Bank President and CEO William Valenti here.)

As of June 30, Florida Gulf Bank had $357 million in assets and IberiaBank had $12.1 billion. In a presentation shortly after the announcement of the deal in the spring, IberiaBank executives told investors IberiaBank could achieve $3 million in cost savings at Florida Gulf Bank.

Valenti will remain as IberiaBank's market president for Lee County.