Bank Battle Ends: New Bank Wins Court Case Against Competitor

A recent court decision lifted a legal hurdle for a newly formed bank that had bought a small Louisiana lender. The judge ruled against the larger bank’s attempt to stop its former executives from hiring staff from the competitor. The ruling gives the new bank a temporary boost as it builds its team and raises capital. The case began when Daryl Byrd, who once grew a small bank into a multi‑state lender, formed an acquisition company with former top managers. They bought the Morgan City bank and Trust and quickly hired many ex‑employees from the larger bank, First Horizon. First Horizon sued, claiming one of the new bank’s executives, Karl Hoefer, had signed a contract that barred him from recruiting its workers. The lawsuit also alleged that the new bank’s holding company, DMMS, had a scheme to lure First Horizon staff with higher pay and bonuses. Judge Brian Jackson of the Middle District of Louisiana reviewed the documents. He found no clear clause preventing Hoefer from recruiting former First Horizon employees. “The grant notices do not require Hoefer to stay away from hiring those workers, ” the judge wrote. Because of that, he denied First Horizon’s request for an injunction.The new bank’s leaders celebrated the decision. Byrd said the ruling shows they are building a strong banking network legally, with special relationships among staff and customers. First Horizon chose not to comment. The lawsuit also claims the new bank’s executives conspired to persuade First Horizon employees to leave, offering them attractive compensation. Judge Jackson said First Horizon failed to prove it could stop these actions, so the court did not grant an injunction. The acquisition was completed quickly. The Morgan City bank had about $480 million in assets and 10 branches before the deal. After closing, its new leadership raised more than $225 million from over 500 investors. Byrd plans to grow the bank to over $1 billion in assets by year’s end, targeting small and mid‑size businesses across the Gulf South. The bank is also expanding its physical presence. A new branch will open in Uptown New Orleans next year, and offices are planned in Atlanta, Miami, Lafayette, Baton Rouge, and Birmingham. The court’s decision signals that the new bank’s rapid growth strategy is being supported by regulators and the legal system.