First Horizon National (NYSE:FHN), the holding company for First Horizon Bank, got approval from the Federal Reserve Board to acquire IberiaBank (NASDAQ:IBKC).

That was the final regulatory hurdle. When the deal officially closes on July 1, the combined bank will have about $75 billion in assets – including $43 billion from First Horizon Bank and $32 billion from IberiaBank. It will be a top 25 bank with $58 billion in deposits.

It will also become one of the largest banks in the South. Memphis-based First Horizon has roughly 270 branches in Tennessee, Florida, Texas, South Carolina, and North Carolina, while IberiaBank, based in Lafayette, Louisiana, has 190 branches in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, South Carolina, North Carolina, Mississippi, Missouri, and New York. 

A chess board with the white and brown kings standing on top of blocks that says M&A.

Image source: Getty Images.

"We are pleased to receive regulatory approval to merge our two companies," said First Horizon Chairman and CEO Bryan Jordan. "First Horizon and IberiaBank together will be well positioned to navigate a changing financial services landscape, deliver superior client solutions, strengthen the communities we serve and create strong returns for our shareholders."

For now, IberiaBank will keep its branding, but over time, the branches and operations will be integrated into First Horizon under the buyer's name. The integration is expected to be completed in 2021.

"By aligning our relationship-oriented cultures, we will continue to transform the way we do business to meet clients' needs in this dynamic environment and provide a great place to work for our associates," IberiaBank President and CEO Daryl Byrd said.

First Horizon shareholders will own about 56% of the company while IberiaBank shareholders will own 44%.

First Horizon stock was up about 2% Tuesday and is trading at about $10 per share.