The Board of Directors of IBERIABANK Corporation
Daryl G. Byrd, President and Chief Executive Officer of IBERIABANK Corporation commented, "We recently celebrated the 120th anniversary of continuous operations of IBERIABANK. We have grown and prospered through a conservative approach to business, opportunistic expansion, balanced growth, and capital strength. This quarterly cash dividend reflects the benefits of these positive attributes."
First Quarter - 2007 Results
The Company also announced it would release first quarter results after the close of business on Wednesday, April 25, 2007, followed by a live conference call, beginning at 8:00 a.m. Central Time on Thursday, April 26, 2007.
The first quarter release of earnings will be distributed through PR Newswire after the close of business on Wednesday, April 25, 2007 followed by a live conference call, beginning at 8:00 a.m. Central Time on Thursday, April 26, 2007. Interested persons may access the conference call by dialing 1-888-428-4480. The confirmation code for the call is 868072. A replay of the call will be available until midnight Central Time on May 3, 2007 by dialing 1-800-475-6701. The access code for the replay is 868072.
Annual Meeting of Shareholders
The Company is pleased to announce that the Annual Meeting of Shareholders of IBERIABANK Corporation will be held in the Cabildo Room at the Hotel Inter- Continental, 444 St. Charles Avenue, New Orleans, Louisiana, on Wednesday, May 2, 2007 at 4:00 p.m., Central Time.
Pulaski Conversion Complete
On January 31, 2007, the Company completed the acquisition of Pulaski Investment Corporation. The Company announced the successful completion of branch and operating system conversions associated with Pulaski Bank and Trust Company, the bank subsidiary of Pulaski Investment Corporation. The conversions to the IBERIABANK Corporation platform was completed over the weekend of March 17-18, 2007, after many months of integrated planning and testing.
Limited Exposure To Sub-prime Mortgage Market
The Company has received periodic inquiries related to the exposure of the Company and its subsidiaries (IBERIABANK, Pulaski Mortgage Company and First Community Bank) to the sub-prime lending market. Management believes the Company's exposure to segments in the sub-prime sector recently highlighted in the media, remains extremely low.
Management believes three primary areas of risk have been focal points of media attention. The first area of risk is the forced buyback for loans after early payment default. An early payment default generally involves a loan 30 or more days delinquent in the first three-to-six payments. The second risk is failure to underwrite in accordance with investor guidelines. The third risk is data integrity or fraud in the origination either by the lender or the borrower.
In 2006, IBERIABANK originated mortgage loans totaling approximately $9.1 million (3.5% of total production) that were brokered to sub-prime lenders. IBERIABANK did not underwrite or fund the sub-prime product. IBERIABANK does not have risk for early payment default or failure to underwrite in accordance with investor guidelines. Therefore, any risk exposure is limited to data integrity or fraud in the origination. IBERIABANK has not been notified of any instances of fraud or data integrity concerns.
In 2006, Pulaski Mortgage Company originated approximately $26.5 million of mortgage loans (4.5% of total production) that were sold or brokered to sub-prime lenders. Mortgage loans sold to sub-prime lenders could be within the industry definitions of either "Alt-A" or sub-prime segments. Alt-A product has alternative documentation, but is originated to prime borrowers. Pulaski Mortgage Company did not enter into lender agreements with sub-prime lenders that required repurchase of a loan for an early payment default. Pulaski Mortgage Company did not underwrite sub-prime loans. Underwriting approval was granted either by the investor or from the investor's automated underwriting system. Therefore, any risk exposure for Pulaski Mortgage Company to the sub-prime sector is limited to data integrity or fraud. Pulaski Mortgage Company was notified of a single occurrence of potential borrower fraud during 2006, but was not asked to repurchase the loan. The company has not been notified of any other instances of borrower fraud for sub-prime lending for at least the past two years.
First Community Bank has had very limited activity with sub-prime borrowers, and in those limited situations, the bank acted only as a broker. First Community Bank does not have risk for early payment default or failure to underwrite in accordance with investor guidelines.
Additional media concerns have been raised recently regarding the potential credit risk exposure banks may possess by retaining certain types of "exotic" adjustable rate mortgages on their balance sheets. In particular, these exotic ARMs are classified as "option ARMs," "2/28 ARMs," "negative amortization ARMs," and "interest only ARMs." The Company does not originate and portfolio retail mortgage loans that are included in these categories.
Resale Registration Statement on Form S-3 Declared Effective
The Company announced that the Securities and Exchange Commission has declared effective its registration statement on Form S-3 relating to the resale by the holders of an aggregate 576,923 shares of common stock of the Company.
The selling security holders may use the prospectus relating to the registration statement from time to time to resell the securities covered by the registration statement. The Company will not receive any of the proceeds from the resale of the securities.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful.
At December 31, 2006, IBERIABANK Corporation had total assets of $3.2 billion, shareholders' equity of $319.6 million and a Tier 1 Leverage capital ratio of 9.01%. The Company's common stock trades on the NASDAQ Stock Market under the symbol "IBKC". The Company's market capitalization is approximately $727 million.
To the extent that statements in this press release relate to future plans, objectives, financial results or performance of IBERIABANK Corporation, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which are based on management's current information, estimates and assumptions and the current economic environment, are generally identified by the use of the words "plan", "believe", "expect", "intend", "anticipate", "estimate", "project" or similar expressions. IBERIABANK Corporation's actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties. Factors affecting IBERIABANK Corporation are discussed in the Company's periodic and other filings with the Securities and Exchange Commission, available at the SEC's website, www.sec.gov , and the Company's website, www.iberiabank.com .
First Call Analyst:
SOURCE: IBERIABANK Corporation
CONTACT: Daryl G. Byrd, President and CEO, +1-337-521-4003, or John R.
Davis, Senior Executive Vice President, +1-337-521-4005, both of IBERIABANK
Web site: http://www.iberiabank.com/