IBERIABANK Corporation Announces Branch Closures And Consolidations

BERIABANK 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