LAFAYETTE, La., May 18, 2018 /PRNewswire/ -- IBERIABANK
Corporation (NASDAQ: IBKC) ("IBKC"), holding company of the
131-year-old IBERIABANK (www.iberiabank.com), today announced plans
to close or consolidate 22 branch locations during the second and
third quarters of 2018.
The branch closures are part of a long-term strategy to enhance
the value of the franchise and improve operating efficiency,
particularly given increased adoption of IBKC's digital banking
channels. The 22 branches to be closed or consolidated into
existing locations are incremental to branch consolidations already
planned in relation to the acquisition of Gibraltar Private Bank
and Trust. Since the end of 2014, the Company has opened or
acquired 81 branches and closed or consolidated 53 branch
locations, excluding those disclosed today. Following these
actions, the Company will operate in 296 locations across the
Southeast region.
Daryl G. Byrd, President and
Chief Executive Officer, commented, "These closures are intended to
optimize our branch and ATM network as part of on-going efforts to
improve the efficiency of our franchise. As our clients
increasingly use and become more reliant on our digital channels,
we continuously review our distribution channels to ensure we are
operating efficiently." Byrd continued, "We are committed to
providing extraordinary service to our clients and communities, and
investing in banking solutions that meet their evolving
preferences."
The closures are anticipated to be completed by the end of the
third quarter of 2018 and provide an improvement to annual run-rate
operating expense by over $8 million
on a pre-tax basis once sold or closed. The Company expects
to realize an incremental $2 million
reduction in non-interest expense in the fourth quarter of 2018.
Total expenses associated with the branch closures are anticipated
to be approximately $12 million in
non-core charges, of which $7 million
is expected to be recognized in the second quarter and $5 million in the third quarter of 2018.
The total cost of the branch consolidations is expected to be
earned back through non-interest expense reductions within a
two-year period.
IBERIABANK Corporation
IBERIABANK Corporation is a regional financial holding company
with offices in Louisiana,
Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, New
York, North Carolina, and
South Carolina, offering
commercial, private banking, consumer, small business, wealth and
trust management, retail brokerage, mortgage, and title insurance
services.
The Company's common stock trades on the NASDAQ Global Select
Market under the symbol "IBKC". The Company's Series B Preferred
Stock and Series C Preferred Stock also trade on the NASDAQ Global
Select Market under the symbols "IBKCP" and "IBKCO",
respectively. The Company's common stock market
capitalization was approximately $4.5
billion, based on the NASDAQ Global Select Market closing
stock price on May 17, 2018.
The following 10 investment firms currently provide equity
research coverage on the Company:
- Bank of America Merrill Lynch
- FIG Partners, LLC
- Hovde Group, LLC
- Jefferies & Co., Inc.
- Keefe, Bruyette & Woods, Inc.
- Piper Jaffray & Co.
- Raymond James & Associates,
Inc.
- Sandler O'Neill + Partners, L.P.
- Stephens, Inc.
- SunTrust Robinson-Humphrey
Caution About Forward-Looking Statements
This press release contains "forward-looking statements," which
may include forecasts of our financial results and condition,
expectations for our operations and businesses, and our assumptions
for those forecasts and expectations. Do not place undue reliance
on forward-looking statements. Due to various factors, actual
results may differ materially from our forward-looking statements.
Factors that could cause our actual results to differ materially
from our forward-looking statements are described under
"Management's Discussion and Analysis of Financial Condition and
Results of Operations," "Risk Factors" and "Regulation and
Supervision" in the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 2017,
and in other documents subsequently filed by the Company with the
Securities and Exchange Commission, available at the SEC's website,
http://www.sec.gov, and the Company's website,
http://www.iberiabank.com. To the extent that statements in this
press release relate to future plans, objectives, financial results
or performance by the Company, these statements are deemed to be
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements are
generally identified by use of words such as "may," "believe,"
"expect," "anticipate," "intend," "will," "should," "plan,"
"estimate," "predict," "continue" and "potential" or the negative
of these terms or other comparable terminology.
Forward-looking statements represent management's beliefs, based
upon information available at the time the statements are made,
with regard to the matters addressed; they are not guarantees of
future performance. Forward-looking statements are subject to
numerous assumptions, risks and uncertainties that change over time
and could cause actual results or financial condition to differ
materially from those expressed in or implied by such statements.
All information is as of the date of this press release. Except to
the extent required by applicable law or regulation, the Company
undertakes no obligation to revise or update publicly any
forward-looking statement for any reason.
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SOURCE IBERIABANK Corporation