The Coral Gables, Florida-based private bank is moving under new ownership.

The parent company of IberiaBank is buying Florida-based Gibraltar Private Bank & Trust Co.

The transaction, which directors have approved, is expected to close in the first three months of 2018, IBKC, as the holding company is known, said in a statement last week. The transaction is subject to usual regulatory conditions and shareholder approvals.

Gibraltar shareholders will receive IBKC shares valued at about $158.29 per Gibraltar common share. The terms value the transaction at $223 million for the equity, or 1.56 times tangible book value when measured at the level on June 30 this year, IBKC said.

Under the deal, each share of Gibraltar common stock, including restricted stock awards (whether vested or not vested) will be exchanged for 1.9749 shares of IBKC common stock, subject to certain adjustments.  Options to acquire Gibraltar common stock, whether or not vested, will be cashed out when the merger is achieved.

Cost savings from the deal will be “fully achieved” on a run-rate basis within six months of the transaction’s closing.  Acquisition and conversion related costs (including lease termination costs) are estimated to be around $34.2 million on a pre-tax basis.  

IBKC’s fully-diluted earnings per share will be accreted by 2 to 3 per cent per share in 2019 and 2020. IBKC said it did not expect the deal to affect its capital ratios, and they will remain “well in excess” of regulatory levels.