Stock Watch
Iberiabank Corp.: Turnaround on the Bayou
New management is making a successful go of cost cutting and streamlining at this little bank.
March 17, 2003
When Iberiabank Corp.'s (IBKC) current managers arrived in 1999, profitability at the 39-branch Louisiana company left much to be desired.
But by closing branches, cutting jobs and streamlining the bank's loan process, the new team has made progress. Expenses now consume 55% of revenues, down from 64% in 1999, and are more in line with the industry norm. Chief executive Daryl Byrd aims to pull that figure below 50% by 2004. "Our turnaround is a never-ending process, not a one-time event," says Byrd.
Another step in the right direction: Nonperforming assets accounted for 0.42% of total assets at the end of 2002, down by nearly half in a year.
The bank earned $3.02 per share in 2002, up 28% from 2001. It expects to earn between $3.27 and $3.33 per share this year, making its price-earnings ratio 12. The price-to-book ratio is a low 1.5. Iberiabank is buying back shares and recently increased its quarterly dividend 11%.
-- Courtney McGrath
