Filed by IBERIABANK Corporation Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: American Horizons Bancorp, Inc.
Commission File No: 000-25756
IBERIABANK Corporation
Acquisition of
American Horizons Bancorp, Inc.
September 29, 2004
Forward Looking Statements
Safe Harbor and 425 Language
Statements contained in this presentation which are not historical facts and which pertain to future operating results of IBERIABANK Corporation and its subsidiaries constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve significant risks and uncertainties. Actual results may differ materially from the results discussed in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in the Company’s periodic filings with the SEC.
In connection with the proposed merger, IBERIABANK Corporation will file a Registration Statement on Form S-4 that will contain a proxy statement/prospectus. INVESTORS AND SECURITY HOLDERS ARE URGED TO CAREFULLY READ THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION WHEN IT BECOMES AVAILABLE, BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders may obtain a free copy of the proxy statement/prospectus (when it is available) and other documents containing information about IBERIABANK Corporation and American Horizons, without charge, at the SEC’s web site at HTTP://www.sec.gov. Copies of the proxy statement/prospectus and the SEC filings that will be incorporated by reference in the proxy statement/prospectus may also be obtained for free by directing a request to: Investor Relations-12th Floor, IBERIABANK Corporation, 200 West Congress Street, Lafayette, LA, 70501, Phone: (337) 521-4788, Fax: (337) 521-4546.
This communication is not an offer to purchase shares of American Horizons common stock, nor is it an offer to sell shares of IBERIABANK Corporation common stock which may be issued in any proposed merger with American Horizons. Any issuance of IBERIABANK Corporation common stock in any proposed merger with American Horizons would have to be registered under the Securities Act of 1933, as amended, and such IBERIABANK Corporation common stock would be offered only by means of a prospectus complying with the Act.
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Presentation Outline
Northeast Louisiana Market
American Horizons Background
Merger Proposal
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Northeast Louisiana Market
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Current IBKC Markets
BOSSIER
CADDO
ACADIA
LAFAYETTE
ST MARTIN
VERMILION
IBERIA
#1 Market Share (20%)
ALEXANDRIA
MANDEVILLE
HOUMA
LINCOLN
OUACHITA
#5 Market Share (9%)
EAST BATON ROUGE
#12 Market Share (1%)
ORLEANS
JEFFERSON
#8 Market Share (2%)
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Northeast LA Market
North Louisiana
Monroe (Population 146,000)
Chase Mortgage, CenturyTel, State Farm, Government
State Farm Exiting Monroe
Impact Probably In 2005-06; Working On Replacement
American Horizons/IBKC Have Almost No Exposure
Shreveport (Population 392,000)
GM Plant, Barksdale AFB, Gaming Establishments, Hospitals – Generally Speaking, Economy Is Well
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Northeast LA Market
Market Share – Monroe MSA
Rank Holding Company Name Headquartered #Offices 2003 Deposits Market Share 2002 Deposits Market Share 2002-03 Growth Ownership Type Inst Type
1 JPMorgan Chase (Bank One) New York, NY 13 $481,789 22.7% $489,837 25.0% -1.6% Stock Bank
2 Regions Financial Corporation Birmingham, AL 4 203,658 9.6% 189,926 9.7% 7.2% Stock Bank
3 Hibernia Corporation New Orleans, LA 4 202,325 9.5% 205,359 10.5% -1.5% Stock Bank
4 Progressive Bancorp Monroe, LA 6 161,129 7.6% 120,131 6.1% 34.1% Private Bank
5 IBERIABANK Corporation Lafayette, LA 8 159,418 7.5% 143,319 7.3% 11.2% Stock Bank
6 American Horizons Bancorp, Inc. Monroe, LA 5 141,211 6.7% 98,852 5.0% 42.9% Private Bank
7 Ouachita Bancshares Corp. (OIB) Monroe, LA 5 132,418 6.2% 118,788 6.1% 11.5% Private Bank
8 AmSouth Bancorporation Birmingham, AL 5 106,502 5.0% 100,039 5.1% 6.5% Stock Bank
9 BancorpSouth, Inc. Tupelo, MS 4 91,709 4.3% 93,513 4.8% -1.9% Stock Bank
10 BSJ Bancshares (Cross Keys Bank) St. Joseph, LA 3 75,093 3.5% 72,952 3.7% 2.9% Private Bank
11 CTB Financial Corp (Community Trust) Ruston, LA 4 60,593 2.9% 48,976 2.5% 23.7% Private Bank
12 Ouachita Valley Federal Credit Union West Monroe, LA 1 58,076 2.7% 52,661 2.7% 10.3% Private Credit Union
13 Homeland Federal Savings Bank Columbia, LA 1 55,946 2.6% 53,412 2.7% 4.7% Private Thrift
14 Caldwell Holding Company Columbia, LA 1 55,312 2.6% 53,445 2.7% 3.5% Private Bank
15 Forest Kraft Federal Credit Union West Monroe, LA 1 45,005 2.1% 41,886 2.1% 7.4% Private Credit Union
16 Monroe Telco Federal Credit Union Monroe, LA 1 29,697 1.4% 27,690 1.4% 7.2% Private Credit Union
17 Citizens Progressive Bank Columbia, LA 2 25,025 1.2% 23,145 1.2% 8.1% Private Bank
18 Richland State Bancorp, Inc. Rayville, LA 1 12,493 0.6% 5,111 0.3% 144.4% Private Bank
19 Federal Employees Credit Union Monroe, LA 1 9,417 0.4% 8,541 0.4% 10.3% Private Credit Union
20 District 05 Dotd Federal Credit Union Monroe, LA 1 6,882 0.3% 5,704 0.3% 20.7% Private Credit Union
21 West Monroe City Employees Fed CU West Monroe, LA 1 3,366 0.2% 3,307 0.2% 1.8% Private Credit Union
22 Louisiana Machinery Employees Fed CU Monroe, LA 1 3,333 0.2% 2,341 0.1% 42.4% Private Credit Union
23 Monroe Credit Union Monroe, LA 1 3,200 0.2% 3,165 0.2% 1.1% Private Credit Union
24 Citizens National Bancshares of Bossier Bossier City, LA 1 939 0.0% 104 0.0% 802.9% Private Bank
Total Monroe MSA Market 75 $2,124,536 100.0% $1,962,204 100.0%
2 Pro Forma Combined IBKC/American Horizons 13/7 300,629 14.2% 242,171 12.3% 24.1% Stock Bank
Source: FDIC Data at June 30, 2003 for Monroe MSA including credit unions
Move To Number 2 Position In Monroe MSA
Probably The Best Distribution System In The Area
Combined Basis—13 Offices In MSA And 18 In Northeast Louisiana
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Northeast LA Market
Market Opportunities
Louisiana Market (MSA Definition) Deposits ($ billion) IBKC Mkt. Share (%) # Large Banks** % Large Bank Deposits**
Baton Rouge $7.9 bill 0.9% 7 88.4%
Shreveport-Bossier 3.9 0.0% 5 81.3
New Orleans 18.3 1.4% 7 73.6
Houma-Thibodaux 2.3 - 5 71.5
St. Tammany 2.2 - 7 68.3
Alexandria 1.4 - 4 64.5
Monroe 1.8 14.8%* 5 61.0
Lake Charles 1.8 - 3 60.7
Lafayette 4.6 15.0% 5 30.7
* IBKC figures for Monroe include American Horizons Bank.
** “Large banks” are defined as FDIC-insured banks with headquarters outside of Louisiana and/or deposits in excess of $5 billion. Source: Deposits on June 30, 2003, adjusted for announced acquisitions; FDIC.
Source: FDIC Data; IBKC Analysis
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Northeast LA Market
Monroe Area Locations
IBERIABANK
American Horizons
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American Horizons Background
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Company Background
Board Of Directors & Management
Director Origin City Occupation
1. L. Michael Ashbrook Horizons Monroe Attorney/Nursing Homes/Real Estate/Banking
2. W. Elton Kennedy American Mer Rouge AH Chairman; Farm and Land Management/Investments/Banking
3. Randy L. Ewing American Quitman Ewing Timber; Former President of La. Senate; Candidate for Governor
4. Tex R. Kilpatrick Horizons Monroe Kilpatrick Funeral Homes/Central American Life Insurance/Real Estate
5. Don M. McGehee American Ruston CPA
6. Joe E. Mitcham, Jr. American Ruston Mitcham Orchards—Peach Farm
7. Danny R. Graham Horizons Ruston Lincoln Builders—Industrial/Commercial Construction
8. Dr. Virgil Orr American Ruston Retired Dean of Academic Affairs La. Tech; Retired State Representative
9. Michael F. Zambie, MD Horizons Monroe MD—The Allergy and Asthma Clinic of Monroe
10. W. Bruce Hanks Horizons Monroe Athletic Director for ULM; Former Executive Officer With CenturyTel
11. Dan B. Taylor Horizons Monroe Real Estate Investments
12. J. Scott Cummings Horizons Monroe Scott Companies—Construction/Agriculture/Forestry/Equipment Sales
13. William D. “Billy” Haddad Horizons Monroe Haddad’s, Inc.—Men’s Clothing Store
14. John M. Adams Horizons West Monroe Entergy—Customer Service Manager for North Louisiana
Total Directors
William E. Pratt American Bastrop Bank CEO
Van E. Pardue Horizons Monroe Bank President
Roger Smith American Monroe EVP and CFO
Total Management
Total Insiders
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Company Background
History
Holding Company Is American Horizons Bancorp, Inc. And Single Subsidiary Is American Horizons Bank
Merger of Equals Between American Bank (Ruston) and Horizons Bank (Monroe) In 2002
8 Offices— Monroe (3) and West Monroe (2) in Ouachita Parish, Ruston(1) in Lincoln Parish, And Bastrop(2) in Morehouse Parish
115 FTEs – Branches Operate 7AM To 7PM
$6MM Trust Preferred At 3-Month LIBOR + 315
Benefit From Rising Interest Rates (RSA/RSL = 1.41x)
Management And Board Control About 52% Of Stock
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Company Background
Financials – Balance Sheet
American Horizons Bancorp, Inc.
(Dollars in Thousands) Periods Ending
3/31/03 6/30/03 9/30/03 12/31/03 3/31/04 6/30/04
ASSETS
Cash & Bal Due $7,832 $8,048 $8,198 $9,824 $6,514 8,715
Fed Funds Sold & Repos 3,086 2,491 1,500 8,904 20,005 22,230
Total Securities 15,143 13,823 11,825 12,738 14,085 12,204
Total Loans & Leases 197,274 208,305 218,225 211,401 213,256 210,078
Total Reserves (1,828) (2,030) (2,047) (2,071) (2,057) (2,061)
Net Loans & Leases 195,446 206,275 216,178 209,330 211,199 208,017
Premises & Fixed Assets 7,801 8,610 9,168 9,035 8,970 7,997
OREO - - - - - 101
Goodwill & Other Intangibles 1,280 1,280 1,280 1,280 1,280 1,280
Other Assets 5,330 6,112 4,817 4,324 4,584 4,600
Total Assets $235,918 $246,639 $252,966 $255,435 $266,637 $265,336
LIABILITIES
Deposits $195,325 $194,885 $195,586 $196,144 $197,282 195,259
Total Other Borrowings 13,274 23,107 29,789 31,416 41,002 40,584
Other Liabilities 2,405 3,215 1,396 1,201 7,126 7,472
Total Liabilities 211,004 221,207 226,771 228,761 245,410 243,315
Trust Preferred & Minority Int 6,000 6,000 6,000 6,000 - -
EQUITY
Common Stock & Surplus 19,387 19,387 19,591 19,591 19,591 19,591
Retained Earnings (515) 69 589 1,130 1,634 2,641
Other Comprehensive Income 119 53 92 30 79 (134)
Other Capital Items (77) (77) (77) (77) (77) (77)
Total Equity Capital 18,914 19,432 20,195 20,674 21,227 22,021
Total Liabilities & Equity $235,918 $246,639 $252,966 $255,435 $266,637 $265,336
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Company Background
Financials – Income Statement
American Horizons Bancorp, Inc.
(Dollars in Thousands) Quarters Ending
3/31/03 6/30/03 9/30/03 12/31/03 3/31/04 6/30/04
Total Interest Income 3,611 3,915 3,903 3,878 3,781 3,848
Total Interest Expense 1,107 1,067 1,042 997 967 1,139
Net Int Income before Provision 2,504 2,848 2,861 2,881 2,814 2,709
Total Provisions for Loss 185 285 275 245 262 367
Net Int Income after Provision 2,319 2,563 2,586 2,636 2,552 2,342
Service Charges on Dep Accts 590 626 666 689 669 726
Income on Fiduciary Activities - - - - - -
Other Noninterest Income 100 84 104 105 80 735
Total Noninterest Income 690 710 770 794 749 1,461
-
Salaries & Benefits 1,197 1,239 1,254 1,651 1,233 1,198
Office Occupancy & Equipment 417 407 410 385 386 400
Amortization of Intangibles - - - - - -
Other Noninterest Expense 737 718 772 744 861 630
Total Noninterest Expense 2,351 2,364 2,436 2,780 2,480 2,228
Net Income Before Gain/Loss 658 909 920 650 821 1,575
Gain/Loss on Securities - 88 (86) 2 - -
Net Income Before Taxes 658 997 834 652 821 1,575
Income Taxes 311 412 314 111 317 570
Net Income $347 $585 $520 $541 $504 $1,005
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Company Background
Financials—Ratios
American Horizons Bancorp, Inc.
(Dollars in Thousands) Quarters Ending
3/31/03 6/30/03 9/30/03 12/31/03 3/31/04 6/30/04
Balance Sheet Highlights
Total Assets 235,918 246,639 252,966 255,435 266,637 265,336
Total Loans 197,274 208,305 218,225 211,401 213,256 210,078
Total Deposits 195,325 194,885 195,586 196,144 197,282 195,859
Total Equity 18,914 19,432 20,195 20,674 21,227 22,021
Employees (FTE Basis) 111 124 112 115 111 115
Loans/Deposits (%) 101.0 106.9 111.6 107.8 108.1 107.3
Performance Measures
Net Income $347 $585 $520 $541 $504 $1,006
ROA (%) 0.61 0.96 0.83 0.86 0.80 1.53
ROE (%) 7.39 12.14 10.39 10.53 9.69 18.60
Net Interest Margin (%) 4.74 5.07 5.00 5.00 4.86 4.46
Capitalization
Total Equity/Total Assets (%) 8.02 7.88 7.98 8.09 7.96 8.30
Leverage Ratio (%) 10.33 9.97 9.98 10.17 10.34 10.29
Tier 1 Risk Based Ratio (%) 11.86 11.77 11.84 12.20 12.23 12.97
Risk Based Capital Ratio (%) 12.78 12.76 12.81 13.19 13.20 13.97
Dividend Payout Ratio (%) - - - - - -
Deposit Composition (% Deps)
Noninterest Bearing Deposits (%) 15.7 15.8 17.4 18.8 18.1 19.2
Asset Quality
NPAs*/Assets (%) 0.42 0.48 0.92 0.99 0.50 0.66
Reserves/Loans (%) 0.93 0.97 0.94 0.98 0.96 0.98
Net Charge-Offs/Avg Loans (%) 0.09 0.16 0.48 0.41 0.52 0.69
* NPAs include 90 Days Past Due
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Merger Proposal
American Horizons
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Merger Proposal
Deal Overview
0.3771 Shares Of IBKC Stock For Each AH Share
Equates To $21.49 Stock Value Per AH Share ($57.00 IBKC Price)
Plus Up To $1.6 Million Cash Potential ($0.73 Per AH Share)
Customary Walk-Away Provisions (6-Month, Mutual, MAC, etc.)
Insiders Sign Support And Affiliate Agreements
No Corporate Board Seats
AH Board Members Form Northeast Louisiana Advisory Board
Will Pratt Named Vice Chairman of Northeast Louisiana Advisory Board; Van Pardue Named Northeast Louisiana Market President
Lock-Up Fee Of $1 Million
Pricing Collars When IBKC Price Hits $59.02 And $56.00
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Merger Proposal
Impact Of Pricing Collars
Exchange Ratio Stock Price Value Per AH Share Exchange Ratio IBKC Shares Issued Stock ($ Millions) Cash ($ Millions) Total ($ Millions)
Floating $60.00 $22.26 0.3709 803,863 $48.2 $1.6 $49.8
Floating 59.75 22.26 0.3725 807,226 $48.2 $1.6 $49.8
Floating 59.50 22.26 0.3741 810,618 $48.2 $1.6 $49.8
Floating 59.25 22.26 0.3756 814,038 $48.2 $1.6 $49.8
Fixed Exchange 59.02 22.26 0.3771 817,211 $48.2 $1.6 $49.8
Fixed Exchange 59.00 22.25 0.3771 817,211 $48.2 $1.6 $49.8
Fixed Exchange 58.75 22.15 0.3771 817,211 $48.0 $1.6 $49.6
Fixed Exchange 58.50 22.06 0.3771 817,211 $47.8 $1.6 $49.4
Fixed Exchange 58.25 21.97 0.3771 817,211 $47.6 $1.6 $49.2
Fixed Exchange 58.00 21.87 0.3771 817,211 $47.4 $1.6 $49.0
Fixed Exchange 57.75 21.78 0.3771 817,211 $47.2 $1.6 $48.8
Fixed Exchange 57.50 21.68 0.3771 817,211 $47.0 $1.6 $48.6
Fixed Exchange $57.00 $21.49 0.3771 817,211 $46.6 $1.6 $48.2
Fixed Exchange 57.25 21.59 0.3771 817,211 $46.8 $1.6 $48.4
Fixed Exchange 57.00 21.49 0.3771 817,211 $46.6 $1.6 $48.2
Fixed Exchange 56.75 21.40 0.3771 817,211 $46.4 $1.6 $48.0
Fixed Exchange 56.50 21.31 0.3771 817,211 $46.2 $1.6 $47.8
Fixed Exchange 56.25 21.21 0.3771 817,211 $46.0 $1.6 $47.6
Fixed Exchange 56.00 21.12 0.3771 817,211 $45.8 $1.6 $47.4
Floating 55.75 21.12 0.3788 820,875 $45.8 $1.6 $47.4
Floating 55.50 21.12 0.3805 824,573 $45.8 $1.6 $47.4
Floating 55.25 21.12 0.3822 828,304 $45.8 $1.6 $47.4
Floating 55.00 21.12 0.3840 832,069 $45.8 $1.6 $47.4
Fixed Exchange Ratio Within Collars (Fixed # of Shares)
Floating Exchange (Fixed Price) At $59.02 And $56.00
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Merger Proposal
Significant Assumptions
We Estimate AH Will Earn Base Net Income Of Approximately $2.2MM In 2004 And $2.4MM In 2005
Anticipate Some Marginal Loan And Deposit Run-Off To Occur Within The First Year
35% Cost Savings in 2005 (Phased In) And 42% Cost Savings In 2006
One-Time Costs Of $900k (On The Books Of IBKC During 1Q 2005)
CDI Assumed To Be 5%; 7 Years, SYD Basis
All Stock Options Are Fully Exercised
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Merger Proposal
Financial Implications
Drivers Of Financial Results:
Manage Credit Risk
Achieve Consolidation Savings
Manage Run-Off And Expand Relationships
Breakeven Impact On EPS In 2005
9% Accretive to BVS; 4% Dilutive To Tangible BVS
Approximately $30 MM Goodwill Created
Tier 1 Leverage Ratio Declines 26 Bps (Offset By TRP)
Internal Rate Of Return In “Mid-20% Range”
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Merger Proposal
Strategic Implications
Good Stable Market – Enhances Diversification
Exceptional Distribution System Combination
Strong Retail And Business Banking Presence
Creates A Full Service Franchise
American Horizons Provides Market Leadership
Formation of Northeast Louisiana Advisory Board
Retail Shareholder Base In Northeast Louisiana
Excellent Merger Timing
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Merger Proposal
Market Multiples
Reported Fully Converted
Market-To-Book Ratio 2.06 2.08
Market-To-Tang. Book 2.19 2.21
P/E - Trailing 12 Mos. 17.6 18.5
Deposit Premium 12.0% 12.8%
Core Deposit Premium 16.3% 17.4%
Pricing Multiples Assume Full Cash Payment
“Fully Converted” Figures Assume All Outstanding Stock Options Are Exercised
Current Proposal Is In Line With Current Market Multiples
Price to LTM EPS
30x 20x 10x 0x
20.9x 18.0x 18.2x 19.0x 21.3x 23.1x
1999 2000 2001 2002 2003 YTD
Price to Book Value
300% 250% 200% 150% 100% 50% 0%
218% 192% 173% 169% 206% 239%
1999 2000 2001 2002 2003 YTD
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Merger Proposal
Summary Of Merger
Compelling Synergies
Solid #2 Market Share (Behind Bank One) With Excellent Distribution System
Excellent Returns For Shareholders Of Both Companies
Provides Diversity-Retail Shareholders
Creates Northeast Louisiana Advisory Board
We Can Manage Interest Rate And Credit Risk
Our View: Moderate Risk And Return Deal
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