Merger Agreement with First Guaranty Bank Would Give Hibernia Leading Share in Tangipahoa Parish.NEW ORLEANS--(BUSINESS WIRE)--July 30, 1998--Hibernia Corporation (NYSE NYSE See: New York Stock Exchange :HIB Hib abbr. Haemophilus influenzae type b ) today announced it has signed a definitive agreement to merge with $244-million-asset First Guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. Bank, a transaction that would make Hibernia Hibernia: see Ireland. the deposit market share leader in Tangipahoa For the village in Louisiana, see . The Tangipahoa were a Native American tribe that lived in Louisiana, just north of Lake Ponchartrain. It is from them that the modern town of Tangipahoa, Louisiana gets its name. The Tangipahoa were closely related to the Acolapissa. Parish, which links the Baton Rouge Baton Rouge (băt`ən r  zh) [Fr.,=red stick], city (1990 pop. 219,531), state capital and seat of East Baton Rouge parish, SE La. and New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded areas and is one of the
fastest-growing parishes in Louisiana <onlyinclude>The U.S. state of Louisiana is divided into 64 parishes in the same way that 48 of the other states of the United States are divided into counties (Alaska is divided into boroughs and census areas). .Headquartered in Hammond Hammond. 1 City (1990 pop. 84,236), Lake co., extreme NW Ind., bounded by Lake Michigan, the Ill. state line, and the Little Calumet River, and traversed by the Grand Calumet River; settled 1851, inc. 1884. , First Guaranty has six locations in Tangipahoa Parish: two in Hammond and one each in Amite, Independence, Kentwood Kentwood is the name of 2 places in the United States:
The merger would give Hibernia the leading share and its first full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. banking presence in Tangipahoa Parish. Hibernia has operated a mortgage banking and brokerage office in Hammond since July July: see month. 1997. "First Guaranty has the leading share in the second-largest parish where we currently don't have a banking office," said Stephen A. Hansel han·sel n. & v. Variant of handsel. , Hibernia president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "The bank's strength is rooted in its commitment to service and sales excellence, qualities we look for in a merger partner." Hammond is home to Southeastern Louisiana University Southeastern Louisiana University is a state-funded public university that is located in the city of Hammond, Louisiana. It was originally founded in 1925 by Linus A. Sims, the principal of Hammond High School, as Hammond Junior College, located in a wing of the high school and its 15,000 students and faculty. The Tangipahoa Parish economy is diverse, with a strong agricultural, distribution and retail base. The parish also is the site of a growing medical community, anchored by North Oaks Health System, which has more than 1,900 employees and more than 100 medical staff. "With this merger, Hibernia would have a presence all along the growing Interstate in·ter·state adj. Involving, existing between, or connecting two or more states. n. One of a system of highways extending between the major cities of the 48 contiguous United States. Noun 1. 12 and Interstate 55 corridors in Louisiana Louisiana (ləwē'zēăn`ə, l ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. ,"
said J. Herbert Boydstun, Hibernia's Southwest Region chairman.
"Tangipahoa Parish is adjacent to St. Tammany, Washington and
Livingston parishes, where Hibernia has full-service locations and the
leading market shares.""Hibernia has earned a solid reputation for preserving the hometown-banking atmosphere that its merger partners worked so hard to create," said Marshall Reynolds, chairman of First Guaranty. "Our customers will benefit from Hibernia's wide range of products and services delivered by the same local bankers who have served them well for many years." In addition to financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. innovations and personal service, Hansel pointed to Hibernia's support for communities where customers and employees live and work. "Hibernia is an excellent corporate citizen. This year, we'll give almost $3.4 million to organizations that improve the quality of life for us all." Don Ayres, currently president and CEO of First Guaranty, will be leaving to work in another capacity for Reynolds' other banking interests. "I've enjoyed being a part of the growth at First Guaranty and I am pleased it has chosen to partner with Hibernia," Ayres said. Longtime long·time adj. Having existed or persisted for a long time: a longtime friend; a longtime resident of Detroit. longtime Adjective Hammond banker Stanley Stanley, town (1991 pop. 1,557), capital of the Falkland Islands, S Atlantic Ocean, on East Falkland island. It is the main port and trading center of the islands. The name is sometimes written as Port Stanley. M. Dameron will serve as Hibernia's Tangipahoa Parish president following completion of the merger. He is currently a senior vice president and the senior loan officer for First Guaranty. "Hibernia is committed to the economic growthy growthy said of an animal that is large for its age and appears to have potential for further rapid growth. of the markets it serves and is a good corporate citizen," said Dameron. "I look forward to leading the effort to bring a broader range of products and services to our market and to ensure a smooth transition as First Guaranty becomes part of Hibernia." First Guaranty shareholders would receive 1.33 shares of Hibernia common stock for each share of First Guaranty outstanding on the merger date. In addition, preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. of First Guaranty would be redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. for cash. The tax-free pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. is valued at approximately $50 million. The merger, which is subject to approvals by regulators and by shareholders of First Guaranty, should be completed near the end of the year. The name of the bank will be changed to Hibernia in the spring of 1999 when its computer system is converted to Hibernia's. Customers of First Guaranty Bank should continue using their checks, making loan payments and conducting other transactions as usual. Following completion of this merger and another with MarTex Bancshares Inc. in northeast Texas Northeast Texas is a region in the northeast corner of the U.S. state of Texas. It is geographically centered around two metropolitan areas strung along Interstate 20: Tyler in the west and Longview/Marshall to the east. , Hibernia would be a $13.4-billion-asset organization with 251 banking locations in 34 Louisiana parishes and 12 Texas counties. It would be either first, second or third in deposit market share in 32 Louisiana parishes and five Texas counties. Hibernia's Louisiana markets represent 82% of the state's population and 86% of its deposits. Its statewide Louisiana deposit and loan market shares would be 22% and 24%, respectively. The company's common stock (HIB) is listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . Hibernia news releases, product-and-service information and other useful data can be accessed through the company's internet site at http://www.hiberniabank.com. Requests for information about Hibernia products and services can be e-mailed to mailus@hiberniabank.com. For more information by fax, call 800/207-9063. -0-
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HIBERNIA'S MERGER ACTIVITY
----------------------------------------------------------------------
25 announced or completed transactions
Pending: 2
---------------------------- ---------------------- -----------------
NAME (expected completion
date) LOCATION ASSETS(b) OFFICES
---------------------------- ---------------------- --------- -------
---------------------------- ---------------------- --------- -------
First Guaranty Bank
(Year-End 1998) Southeast Louisiana $244 6
---------------------------- ---------------------- --------- --------
MarTex Bancshares, Inc.
(1Q 1999) Northeast Texas $320 9
---------------------------- ---------------------- --------- -------
---------------------------- ---------------------- --------- -------
Completed: 23
---------------------------- ---------------------- --------- --------
NAME (date merger was ASSETS OFFICES
completed) LOCATION (a)(b) (a)
---------------------------- ---------------------- --------- --------
Peoples Holding Corp.
(7/1/98) Northwest Louisiana $228 9
---------------------------- ---------------------- --------- -------
Firstshares of Texas, Inc.
(3/15/98) Northeast Texas $284 5
---------------------------- ---------------------- --------- --------
ArgentBank (2/1/98) Southcentral Louisiana $805 18
---------------------------- ---------------------- --------- --------
First National Bank in
Mansfield (1/1/98) Northwest Louisiana $101 5
---------------------------- ---------------------- --------- --------
OrangeBank (11/7/97) Southeast Texas $118 3
---------------------------- ---------------------- --------- --------
First National Bank of Paris
(8/31/97) Northeast Texas $136 4
Collin County National Bank
(8/31/97)
---------------------------- ---------------------- --------- --------
Texarkana National Bank
(12/31/96) Northeast Texas $430 10
---------------------------- ---------------------- --------- --------
---------------------------- ---------------------- --------- --------
St. Bernard Bank and Trust
(10/1/96) Suburban New Orleans $244 11
---------------------------- ---------------------- --------- --------
---------------------------- ---------------------- --------- --------
Calcasieu Marine National
Bank (8/26/96) Southwest Louisiana $759 21
---------------------------- ---------------------- --------- --------
---------------------------- ---------------------- --------- --------
Bunkie Bank & Trust Company
(1/15/96) Central Louisiana $106 5
---------------------------- ---------------------- --------- --------
---------------------------- ---------------------- --------- --------
First National Bank of Lake
Providence (1/1/96) Northeast Louisiana $55 2
---------------------------- ---------------------- --------- --------
---------------------------- ---------------------- --------- --------
Bank of St. John (7/1/95) Southeast Louisiana $116 4
---------------------------- ---------------------- --------- --------
---------------------------- ---------------------- --------- --------
Progressive Bank and Trust
(7/1/95) Southcentral Louisiana $151 6
---------------------------- ---------------------- --------- --------
---------------------------- ---------------------- --------- --------
State Bank and Trust Company
(5/1/95) Southeast Louisiana $96 4
---------------------------- ---------------------- --------- --------
---------------------------- ---------------------- --------- --------
American Bank (3/1/95) Southeast Louisiana $89 5
---------------------------- ---------------------- --------- --------
---------------------------- ---------------------- --------- --------
First State Bank and Trust
Company (12/31/94) Northshore New Orleans $150 9
---------------------------- ---------------------- --------- --------
---------------------------- ---------------------- --------- --------
Pioneer Bank and Trust Co.
(12/31/94) Northwest Louisiana $357 9
---------------------------- ---------------------- --------- --------
---------------------------- ---------------------- --------- --------
First National Bank of
Jefferson Parish (8/1/94) Suburban New Orleans $373 9
---------------------------- ---------------------- --------- --------
---------------------------- ---------------------- --------- --------
Southern National Bank at
Tallulah (8/1/94) Northeast Louisiana $59 1
---------------------------- ---------------------- --------- --------
---------------------------- ---------------------- --------- --------
First National Bank of West
Monroe (8/1/94) Northeast Louisiana $157 6
---------------------------- ---------------------- --------- --------
---------------------------- ---------------------- --------- --------
Bastrop National Bank
(7/1/94) Northeast Louisiana $117 4
---------------------------- ---------------------- --------- --------
---------------------------- ---------------------- --------- --------
First Commercial Bank
(7/1/94) Southcentral Louisiana $166 8
---------------------------- ---------------------- --------- --------
--------------------------------------------------- --------- --------
TOTAL ADDED SINCE MID-1994 $5,661 173
--------------------------------------------------- --------- --------
LOUISIANA:
added through mergers
Assets: $4.4 billion
Offices: 142
Parishes: 22
TEXAS:
added through mergers
Assets: $1.3 billion
Offices: 31
Counties: 12
(a) At merger. (b) Dollars in millions
CONTACT: Hibernia Corporation, New Orleans
Jim Lestelle, Office: 504/533-5482; Home: 504/488-8826;
Email: jlestelle@hiberniabank.com
or
Trisha Voltz, Office: 504/533-2180; Home: 504/837-8287;
Email: tvoltz@hiberniabank.com
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