Exhibit 99
ISB FINANCIAL CORPORATION'S SUBSIDIARY,
IBERIABANK,
TO ACQUIRE 17 BRANCH OFFICES
FOR IMMEDIATE RELEASE Contact: Larrey G. Mouton
JUNE 5, 1998 President and Chief Executive Officer
(318) 365-2361
New Iberia, Louisiana -- IBERIABANK, the wholly owned commercial bank
subsidiary of ISB Financial Corporation (the "Company") (NASDAQ/NMS:ISBF),
today announced that it has entered into a definitive agreement to acquire
seventeen full-service branch offices with aggregate deposits of
approximately $478 million as of December 31, 1997 from two subsidiary
banks of First Commerce Corporation ("First Commerce"). The sale of the
branch offices is being undertaken by First Commerce to facilitate its
acquisition by BancOne Corporation, Columbus, Ohio. Seven of the offices
with aggregate deposits of approximately $207 million are in the Lafayette
market area and are currently operated as offices of The First National
Bank of Lafayette ("First National"), and ten of the offices with aggregate
deposits of approximately $271 million are in the Monroe market area and
are currently operating as offices of Central Bank, Monroe, Louisiana. A
list of the branch offices is provided below.
Central Bank First National Bank of Lafayette
- ------------------------------------------- --------------------------------------------------
Branch Office Address Branch Office Address
- -------------- ------------------------- ------------- -----------------------------------
Northeast 3500 DeSiard Street, Monroe Oil Center 463 Heymann Blvd., Lafayette
Claiborne 5329 Cypress St., West Monroe Northgate 1820 Moss St., Lafayette
South Central 1900 Jackson St., Monroe Congress 4010 W. Congress St., Lafayette
Lakeshore 8019 DeSiard St., Monroe Caffery 3710 Ambassador Caffery
Parkway, Lafayette
Central Center One Stella Mill St., West Monroe Scott 200 Westgate Road, Scott
Super 1-Monroe 2810 Louisville Ave, Monroe Kaliste Saloom 420 Kaliste Saloom, Lafayette
Super 1-West 2907 Cypress St., West Monroe Carencro 805 Bernard Road, Carencro
Monroe
Brookshire's 2348 Sterlington Road, Monroe
Ruston Main
Office 305 S. Vienna, Ruston
North Trenton 1327 N. Trenton, Ruston
ISB Financial Corporation's
Subsidiary, IBERIABANK, To
Acquire 17 Branch Offices
June 5, 1998
Page 2 of 3
The 17 branch offices include approximately 48,000 customers or
deposit accounts (including approximately $66 million in demand deposit
accounts). IBERIABANK will pay a weighted average deposit premium of
approximately 6.45% based upon deposits assumed at the closing date. In
addition to the branch offices and deposits, IBERIABANK will acquire
approximately 7,800 loans with an aggregate balance of $129 million for a
purchase price equal to the adjusted book value of such loans. As of
December 31, 1997, the weighted average cost of the to be acquired deposits
was 3.62% and the weighted average yield on the to be acquired loans was
8.74%.
The transaction is expected to be completed in September 1998 upon
receipt of regulatory approval. The business day following completion, the
branch offices will open for business fully converted to IBERIABANK offices
and the former First National and Central Bank employees will continue to
staff the offices as IBERIABANK employees. Larrey G. Mouton, President and
Chief Executive Officer of IBERIABANK, said "We are very excited at the
opportunity to expand our customer base and we look forward to welcoming
these new customers and employees to IBERIABANK in September." Mr. Mouton
also stated, "This branch office acquisition will significantly advance our
strategy to expand our presence in Louisiana."
Upon consummation of the transaction, IBERIABANK's branch office
network will increase to 44 offices in 10 parishes in Louisiana. Based on
deposits, it is expected that IBERIABANK will rank second in market share
in both the Lafayette and Monroe market areas after closing of the
transaction. Upon consummation of the acquisition of the branch offices,
the Company anticipates that it will have approximately $1.4 billion in
assets, $1.2 billion in deposits and $805 million in total loans. The
Company expects the transaction to be accretive to income within the first
year. Certain condensed pro forma information is provided below.
ISB Financial Corporation is the holding company for IBERIABANK.
IBERIABANK currently operates 19 full service offices located in south
central Louisiana and eight full service offices located in the Greater New
Orleans area. The deposits of IBERIABANK are insured by the Federal
Deposit Insurance Corporation to the full extent provided for by law and
regulation.
ISB Financial Corporation's Subsidiary,
IBERIABANK, To Acquire 17 Branch Offices
June 5, 1998
Page 3 of 3
PRO FORMA CONDENSED, UNAUDITED BALANCE SHEET INFORMATION OF ISB
FINANCIAL CORPORATION REFLECTING PROPOSED ACQUISITION OF 17 BRANCH
OFFICES IN LAFAYETTE AND MONROE, LOUISIANA(1)
ISB Financial Lafayette/Monroe Pro Forma
Corporation Branch Offices Combined
----------- -------------- --------
Balance % Balance % Balance %
------- --- ------- --- ------- ---
(Dollars in Thousands)
Cash and Securities $210,046 22.6% $305,005 63.8% $515,051 36.6%
Loans 676,074 72.9 128,974 27.0 805,048 57.3
Premises and Equipment 19,380 2.1 5,761 1.2 25,141 1.8
Goodwill and acquisition
intangibles 15,867 1.7 30,839 6.5 46,706 3.3
Other Assets 6,028 0.7 7,539 1.6 13,567 0.9
-------- ------ -------- ------ ---------- ------
Total Assets $927,395 100.0% $478,118 100.0% $1,405,513 100.0%
-------- ------ -------- ------ ---------- ------
-------- ------ -------- ------ ---------- ------
Deposits $754,185 81.3% $478,118 100.0% $1,232,303 87.7%
Borrowings 46,373 5.0 --- --- 46,373 3.3
Other Liabilities 8,543 0.9 --- --- 8,543 0.6
Stockholders' equity 118,294 12.8 --- --- 118,294 8.4
-------- ------ -------- ------ ---------- ------
Liabilities and $927,395 100.0% $478,118 100.0% $1,405,513 100.0%
-------- ------ -------- ------ ---------- ------
-------- ------ -------- ------ ---------- ------
Stockholders' equity
(1) The Pro Forma Information is based upon historical balance sheet
information of ISB Financial Corporation as of April 30, 1998 and
historical information for the seventeen branch offices as of December 31,
1997. The actual amount of deposits assumed and assets acquired will be
determined as of the closing date and may differ significantly from those
set forth above.
CERTAIN INFORMATION IN THIS PRESS RELEASE MAY CONSTITUTE
FORWARD-LOOKING INFORMATION THAT INVOLVES RISKS AND UNCERTAINTIES THAT
COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE ESTIMATED.
PERSONS ARE CAUTIONED THAT SUCH FORWARD-LOOKING STATEMENTS ARE NOT
GUARANTEES OF FUTURE PERFORMANCE AND ARE SUBJECT TO VARIOUS FACTORS WHICH
COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE ESTIMATED.
THESE FACTORS INCLUDE THAT THE ACTUAL AMOUNT OF ASSETS TO BE ACQUIRED AND
LIABILITIES TO BE ASSUMED BY IBERIABANK WILL BE DETERMINED AS OF THE
CLOSING DATE AND MAY DIFFER SIGNIFICANTLY FROM THE INFORMATION PRESENTED
HEREIN AND CHANGES IN GENERAL ECONOMIC AND MARKET CONDITIONS AND THE
DEVELOPMENT OF AN INTEREST RATE ENVIRONMENT THAT MAY ADVERSELY AFFECT THE
FINANCIAL CONDITION AND RESULTS OF OPERATIONS OF THE COMPANY.