SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities Exchange
Act of 1934 (Amendment No. __)
Filed by the Registrant |X|
Filed by the Party other than the Registrant |_|
Check the appropriate box:
|X| Preliminary Proxy Statement |_| Confidential, for Use of the
|_| Definitive Proxy Statement Commission Only (as permitted
|_| Definitive Additional Materials by Rule 14a-6(e)(2))
|_| Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12
ISB FINANCIAL CORPORATION
- --------------------------------------------------------------------------------
(Name of Registrant as Specified in its Charter)
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
|X| No fee required.
|_| Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
1. Title of each class of securities to which transaction applies:
--------------------------------------------------------------
2. Aggregate number of securities to which transaction applies:
--------------------------------------------------------------
3. Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11 (set forth the
amount on which the filing fee is calculated and state how it
was determined):
--------------------------------------------------------------
4. Proposed maximum aggregate value of transaction:
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5. Total fee paid:
--------------------------------------------------------------
|_| Fee paid previously with preliminary materials:
|_| Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee
was paid previously. Identify the previous filing by registration
statement number, or the Form or Schedule and the date of its filing.
1. Amount previously paid:
_____________________________________________
2. Form, Schedule or Registration Statement No.:
_____________________________________________
3. Filing Party:
_____________________________________________
4. Date Filed:
_____________________________________________
<PAGE>
[ISB FINANCIAL CORPORATION LETTERHEAD]
April 5, 2000
Dear Stockholder:
You are cordially invited to attend the Annual Meeting of Stockholders
of ISB Financial Corporation. The Annual Meeting will be held at the main office
of IBERIABANK located at 1101 East Admiral Doyle Drive, New Iberia, Louisiana,
on Friday, May 5, 2000 at 3:00 p.m., Central Time.
The matters to be considered by stockholders at the Annual Meeting are
described in the accompanying materials. Also enclosed is an Annual Report to
Stockholders for the 1999 fiscal year. Directors and officers of the Company as
well as representatives of the Company's independent auditors will be present to
respond to any questions the stockholders may have.
It is very important that you be represented at the Annual Meeting
regardless of the number of shares you own or whether you are able to attend the
Annual Meeting in person. We urge you to mark, sign, and date your proxy card
today and return it in the envelope provided, even if you plan to attend the
Annual Meeting. This will not prevent you from voting in person, but will ensure
that your vote is counted if you are unable to attend.
Your continued support of, and interest in, ISB Financial Corporation
are sincerely appreciated.
Sincerely,
/s/ Daryl G. Byrd
Daryl G. Byrd
PRESIDENT
<PAGE>
ISB FINANCIAL CORPORATION
1101 EAST ADMIRAL DOYLE DRIVE
NEW IBERIA, LOUISIANA 70560
(318) 365-2361
------------
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD ON MAY 5, 2000
------------
NOTICE IS HEREBY GIVEN that the Annual Meeting of Stockholders (the "Annual
Meeting") of ISB Financial Corporation (the "Company") will be held at the main
office of IBERIABANK located at 1101 East Admiral Doyle Drive, New Iberia,
Louisiana, on Friday, May 5, 2000 at 3:00 p.m., Central Time, for the following
purposes, all of which are more completely set forth in the accompanying Proxy
Statement:
(1) To elect three directors for a three-year term expiring in 2003, and
until their successors are elected and qualified;
(2) To ratify the appointment by the Board of Directors of Castaing,
Hussey, Lolan & Dauterive, L.L.P. as the Company's independent auditors for the
fiscal year ending December 31, 2000;
(3) To consider and approve an amendment to the Articles of Incorporation
of the Company changing its name to "IBERIABANK Corporation;" and
(4) To transact such other business as may properly come before the meeting
or any adjournment thereof.
The Board of Directors has fixed March 9, 2000 as the voting record date
for the determination of stockholders entitled to notice of and to vote at the
Annual Meeting and at any adjournment thereof. Only those stockholders of record
as of the close of business on that date will be entitled to vote at the Annual
Meeting or at any such adjournment.
BY ORDER OF THE BOARD OF DIRECTORS
/s/ Emile J. Plaisance, Jr.
Emile J. Plaisance, Jr.
CHAIRMAN OF THE BOARD
New Iberia, Louisiana
April 5, 2000
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YOU ARE CORDIALLY INVITED TO ATTEND THE ANNUAL MEETING. IT IS IMPORTANT THAT
YOUR SHARES BE REPRESENTED REGARDLESS OF THE NUMBER YOU OWN. EVEN IF YOU PLAN TO
BE PRESENT, YOU ARE URGED TO COMPLETE, SIGN, DATE AND RETURN THE ENCLOSED PROXY
PROMPTLY IN THE ENVELOPE PROVIDED. IF YOU ATTEND THE MEETING, YOU MAY VOTE
EITHER IN PERSON OR BY PROXY. ANY PROXY GIVEN MAY BE REVOKED BY YOU IN WRITING
OR IN PERS ON AT ANY TIME PRIOR TO THE EXERCISE THEREOF.
- --------------------------------------------------------------------------------
<PAGE>
ISB FINANCIAL CORPORATION
---------
PROXY STATEMENT
---------
ANNUAL MEETING OF STOCKHOLDERS
MAY 5, 2000
This Proxy Statement is furnished to holders of common stock, $1.00 par
value per share ("Common Stock"), of ISB Financial Corporation (the "Company"),
the parent holding company of IBERIABANK (the "Bank"). Proxies are being
solicited on behalf of the Board of Directors of the Company to be used at the
Annual Meeting of Stockholders (the "Annual Meeting") to be held at the main
office of the Bank located at 1101 East Admiral Doyle Drive, New Iberia,
Louisiana, on Friday, May 5, 2000 at 3:00 p.m., Central Time, and at any
adjournment thereof for the purposes set forth in the Notice of Annual Meeting
of Stockholders. This Proxy Statement is first being mailed to stockholders on
or about April 5, 2000.
The proxy solicited hereby, if properly signed and returned to the Company
and not revoked prior to its use, will be voted in accordance with the
instructions contained therein. IF NO CONTRARY INSTRUCTIONS ARE GIVEN, EACH
PROXY RECEIVED WILL BE VOTED FOR THE NOMINEES FOR DIRECTOR DESCRIBED HEREIN, FOR
RATIFICATION OF THE APPOINTMENT OF CASTAING, HUSSEY, LOLAN & DAUTERIVE, L.L.P.
FOR FISCAL 2000, AND FOR APPROVAL OF THE AMENDMENT TO THE ARTICLES OF
INCORPORATION TO CHANGE THE COMPANY'S NAME TO "IBERIABANK CORPORATION." The
proxy solicited hereby also confers authority upon the Board of Directors, as
proxy, to exercise discretionary authority and vote in accordance with their
best judgment with respect to, among other things, matters which they do not
know, a reasonable time prior to the distribution of this Proxy Statement, are
to be presented at the Annual Meeting. Any stockholder giving a proxy has the
power to revoke it at any time before it is exercised by (i) filing with the
Secretary of the Company written notice thereof (through Donald P. Lee,
Secretary, ISB Financial Corporation); (ii) submitting a duly-executed proxy
bearing a later date; or (iii) appearing at the Annual Meeting and giving the
Secretary notice of his or her intention to vote in person. Proxies solicited
hereby may be exercised only at the Annual Meeting and any adjournment thereof
and will not be used for any other meeting.
Except for procedural matters incident to the conduct of the Annual
Meeting, the Company does not know of any other matters that are to come before
the Annual Meeting.
VOTING
Only stockholders of record at the close of business on March 9, 2000 (the
"Voting Record Date") will be entitled to vote at the Annual Meeting. On the
Voting Record Date, there were 6,558,737 shares of Common Stock issued and
outstanding and the Company had no other class of equity securities outstanding.
Each share of Common Stock is entitled to one vote at the Annual Meeting on all
matters properly presented at the Meeting. Directors are elected by a plurality
of the votes cast with a quorum present. The affirmative vote of a majority of
the total votes present in person and by proxy is required to ratify the
appointment of the independent auditors. The affirmative vote of a majority of
the shares entitled to vote generally in an election of directors is required to
approve the proposal to change the Company's corporate title. Proxies marked as
abstentions and shares held in street name which have been designated by brokers
on proxies as not voted will not be counted as votes cast. Such proxies will be
counted for purposes of determining a quorum at the Annual Meeting.
<PAGE>
INFORMATION WITH RESPECT TO NOMINEES FOR DIRECTOR,
DIRECTORS WHOSE TERMS ARE CONTINUING
AND NOT CONTINUING, AND EXECUTIVE OFFICERS
ELECTION OF DIRECTORS
The Articles of Incorporation of the Company provide that the Board of
Directors shall be divided into three classes as nearly equal in number as the
then total number of directors constituting the Board of Directors permits. The
directors shall be elected by the stockholders of the Company for staggered
terms, or until their successors are elected and qualified.
At the Annual Meeting, stockholders of the Company will be asked to elect
one class of directors, consisting of three directors, for a three-year term
expiring in 2003, and until their successors are elected and qualified. The
Board of Directors has nominated Cecil C. Broussard, Ernest P. Breaux, Jr. and
Richard F. Hebert, each of whom is currently a director of the Company and the
Bank. Ray Himel and Emile J. Plaisance, Jr., whose terms will expire at the
Annual Meeting, will retire upon the election of their successors. To equalize
the classes, Mr. Hebert, whose current term as a director will expire in 2001,
has agreed to stand for election at the Annual Meeting.
No nominee for director is related to any other director or executive
officer of the Company by blood, marriage or adoption.
Unless otherwise directed, each proxy executed and returned by a
stockholder will be voted for the election of the nominees for director listed
below. If any person named as a nominee should be unable or unwilling to stand
for election at the time of the Annual Meeting, the proxies will nominate and
vote for any replacement nominee or nominees recommended by the Board of
Directors. At this time, the Board of Directors knows of no reason why any of
the nominees listed below may not be able to serve as a director if elected.
The following tables present information concerning the nominees for
director of the Company, including tenure as a director.
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION DURING DIRECTOR PRESENT TERM
NAME AGE(1) THE PAST FIVE YEARS SINCE(2) TO EXPIRE
---- ------ ---------------------- -------- --------------
NOMINEES FOR TERMS TO EXPIRE IN 2003
<S> <C> <C> <C> <C>
Cecil C. Broussard 68 Retired automobile dealer and 1967 2000
real estate broker specializing
in commercial properties.
Ernest P. Breaux, Jr. 55 President and Chief Executive 1999 2000
Officer of Ernest P. Breaux
Electrical, Inc., an electrical
engineering firm
Richard F. Hebert 41 President and Owner of Hebert's 1999 2001
Home & Garden Showplace,
Inc., a retail home and garden
store
</TABLE>
THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE FOR ELECTION OF THE NOMINEES FOR
DIRECTOR.
2
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION DURING DIRECTOR PRESENT TERM
NAME AGE(1) THE PAST FIVE YEARS (2) SINCE(2) TO EXPIRE
---- ------ ----------------------------------- -------- ------------------
DIRECTORS CONTINUING IN OFFICE
<S> <C> <C> <C> <C>
Elaine D. Abell 57 Attorney in private practice in Lafayette, 1993 2001
Louisiana.
William H. Fenstermaker 51 President and Chief Executive Officer of 1990 2001
C.H. Fenstermaker and Associates, Inc.,
Lafayette, Louisiana, which provides oil and
gas surveying, mapping, municipal engineering,
environmental consulting and computer
information system services.
Larrey G. Mouton 58 Chief Executive Officer of the Company; 1985 2001
President of the Company and President and
Chief Executive Officer of the Bank until
July 1999; Chairman of the Board of the
Bank since July 1999.
Harry V. Barton, Jr. 45 Certified public accountant in private 1993 2002
practice in Lafayette, Louisiana.
E. Stewart Shea, III 48 Vice President of Bayou Management 1990 2002
Services, New Iberia, Louisiana, a
provider of contractor services to the oil
field industry; President of Bayou Pipe
Coating Company and Vice President of
Bayou Coating, LLC, affiliates of Bayou
Management Services.
Daryl G. Byrd 45 President and Chief Executive Officer 1999 2002
of Bank One New Orleans Region
(1998-1999); Executive Vice President
of First Commerce Corporation in charge
of commercial bank and mortgage banking
groups (1992-1998); President and Chief
Executive Officer of Rapides Bank and
Trust Company (1990-1992).
DIRECTORS NOT CONTINUING IN OFFICE
Ray Himel 72 Owner of Himel Motor Supply Corp., a 1963 2000
chain of auto supply stores located
throughout southern Louisiana; Himel
Marine, a marine dealership located in
New Iberia and Lafayette, Louisiana; and
several Ace Hardware stores located
throughout southern Louisiana.
Emile J. Plaisance, Jr. 72 Retired since August 1992; previously 1981 2000
President of the Bank.
</TABLE>
- ----------------------
(1) As of the Voting Record Date.
(2) Includes service as a director of the Bank.
3
<PAGE>
STOCKHOLDER NOMINATIONS
Article 6, Section F ("Article 6.F.") of the Company's Articles of
Incorporation governs nominations of candidates for election as director of any
annual meeting of stockholders and provides that such nominations, other than
those made by the Board, may be made by any stockholder entitled to vote at such
annual meeting provided such nomination is made in accordance with the
procedures set forth in Article 6.F., which is summarized below.
Nominations, other than those made by or at the direction of the Board of
Directors, shall be made pursuant to timely notice in writing to the Secretary
of the Company. To be timely, a stockholder's notice shall be delivered to, or
mailed and received at, the principal executive offices of the Company not later
than 60 days prior to the anniversary date of the immediately preceding annual
meeting of stockholders of the Company. Such stockholder's notice shall set
forth (a) as to each person whom the stockholder proposes to nominate for
election or re-election as a director and as to the stockholder giving the
notice (i) the name, age, business address and residence address of such person,
(ii) the principal occupation or employment of such person, (iii) the class and
number of shares of Company stock which are Beneficially Owned (as defined in
Article 9.A.(e) of the Articles of Incorporation) by such person on the date of
such stockholder notice, and (iv) any other information relating to such person
that is required to be disclosed in solicitations of proxies with respect to
nominees for election as directors, pursuant to Regulation 14A under the
Securities Exchange Act of 1934, as amended (the "1934 Act"), including, but not
limited to, information required to be disclosed by Items 4, 5, 6 and 7 of
Schedule 14A; and (b) as to the stockholder giving the notice (i) the name and
address, as they appear on the Company's books, of such stockholder and any
other stockholders known by such stockholder to be supporting such nominees and
(ii) the class and number of shares of Company stock which are Beneficially
Owned by such stockholder on the date of such stockholder notice and, to the
extent known, by any other stockholders known by such stockholder to be
supporting such nominees on the date of such stockholder notice. At the request
of the Board of Directors, any person nominated by, or at the direction of, the
Board for election as a director at an annual meeting shall furnish to the
Secretary of the Company that information required to be set forth in a
stockholder's notice of nomination which pertains to the nominee.
The Board of Directors or a designated committee thereof may reject any
nomination by a stockholder not made in accordance with the requirements of
Article 6.F. Notwithstanding the foregoing procedures, if neither the Board of
Directors nor such committee makes a determination as to the validity of any
nominations by a stockholder, the presiding officer of the annual meeting shall
determine and declare at the annual meeting whether the nomination was made in
accordance with the terms of Article 6.F.
COMMITTEES AND MEETINGS OF THE BOARD; DIRECTOR NOMINATIONS
The Board of Directors of the Company has established an Audit Committee
and a Compensation Committee. The Board of Directors of the Company meets on a
monthly basis and may have additional special meetings. Nominations for
directors of the Company are made by the full Board of Directors. During the
fiscal year ended December 31, 1999, the Board of Directors met 11 times. No
director attended fewer than 75% of the total number of Board meetings or
committee meetings on which he served that were held during this period.
AUDIT COMMITTEE. The Audit Committee consists of Messrs. Barton, Jr.
(Chairman), Shea and Himel. The Audit Committee supervises the Company's
Internal Auditor and is responsible for reviewing the performance, and
overseeing the engagement, of the Company's independent certified public
accountants. The Audit Committee met nine times during fiscal 1999. No member of
the Audit Committee is a current or former employee of the Company or any of its
subsidiaries.
COMPENSATION COMMITTEE. The Compensation Committee consists of Messrs.
Broussard (Chairman), Fenstermaker and Shea. The Compensation Committee reviews
the compensation of the Company's executive officers. The Compensation Committee
met nine times during fiscal 1999. The report of the Compensation Committee with
respect to compensation for the Chief Executive Officer and all other executive
officers for the fiscal year ended December 31, 1999 is set forth below.
In addition to the committees described above, the Bank has established
committees which include members of the Board and senior management and which
meet as required. These committees include, among others, an Audit Committee,
Budget and Planning Committee, Executive Committee, Compensation Committee,
Investment Committee, Commercial Loan Committee and Loan Committee.
4
<PAGE>
EXECUTIVE OFFICERS WHO ARE NOT DIRECTORS
Set forth below is information with respect to the principal occupations
for the executive officers of the Company and the Bank who do not serve as
directors.
BARRY MULROY, age 54, is Executive Vice President and Chief Administrative
Officer of the Bank. Prior to joining the Bank in November 1999, Mr. Mulroy
served as Human Resources Consultant of Bank One Louisiana from 1998 to October
1999. From 1993 to 1998, Mr. Mulroy served as Human Resources Director,
Executive Vice President of First Commerce. From 1988 to 1993, Mr. Mulroy served
as Marketing Director, Senior Vice President of First Commerce Corporation. From
1987 to 1988, Mr. Mulroy served as Retail and Administration Groups Manager,
Executive Vice President of First National Bank of Lafayette. From 1985 to 1987,
Mr. Mulroy served as Loan Operations Manager, Senior Vice President of First
National Bank of Lafayette. From 1967 to 1985, Mr. Mulroy served as Manager in
Sales and Administration of First Tennessee National Corporation
JOHN R. DAVIS, age 39, is Executive Vice President - Chief Strategic
Planning Officer of the Company. Prior to joining the Bank in December 1999, Mr.
Davis served as Corporate Senior Vice President of Crestar Financial Corporation
of Virginia from 1997 to June 1999. From 1993 to 1997, Mr. Davis served as
Senior Vice President of First Commerce Corporation. From 1983 to 1993, Mr.
Davis served as Senior Vice President of BB&T (North Carolina). Mr. Davis is
also a Chartered Financial Analyst.
PATRICK TRAHAN, age 39, is Executive Vice President, Lafayette Market
President and Retail Segment Leader of the Bank. Prior to joining the Bank in
August 1999, Mr. Trahan served as President and Chief Executive Officer of
Rapides Bank & Trust Company from 1990 to 1998. From 1985 to 1990, Mr. Trahan
served as Executive Vice President of First National Bank of Lafayette. From
1982 to 1985, Mr. Trahan served as Bank Officer and Commercial Lender of
American Bank of Lafayette.
MICHAEL BROWN, age 36, is Executive Vice President, New Orleans Market
President and Chief Credit Officer of the Bank. Mr. Brown also serves as
Commercial Segment Leader. Prior to joining the Bank in December 1999, Mr. Brown
served in several senior roles with Bank One Louisiana, including Chief Credit
Officer from 1998 to 1999. From 1996 to 1998, Mr. Brown served as Senior Vice
President, Manager of Credit and Client Services of First Commerce Corporation.
From 1987 to 1996, Mr. Brown served as Vice President of Wachovia Bank. Mr.
Brown is also a Chartered Financial Analyst.
GEORGE J. BECKER, age 58, is Executive Vice President and Monroe Market
President of the Bank. Prior to joining the Bank in December 1999, Mr. Becker
served as Project Manager and MIS Reporter of Bank One from 1997 to 1999. From
1991 to 1997, Mr. Becker served as Senior Vice President of First Commerce
Corporation, headquartered in New Orleans, Louisiana. From 1989 to 1991, Mr.
Becker served as Executive Vice President of Rapides Bank and Trust Company.
From 1983 to 1989, Mr. Becker served as Executive Vice President and Chief
Financial Officer of First National Bank of Lafayette. From 1973 to 1983, Mr.
Becker served as Vice President and Controller of First National Bank of
Commerce/First Commerce Corporation. From 1970 to 1973, Mr. Becker served as
Manager, Budget Department and Contract Esimator of Litton Industries. From 1965
to 1969, Mr. Becker served as Financial Manager of The Boeing Company, New
Orleans, Louisiana.
DONALD P. LEE, age 40, is Executive Vice President-In-House Counsel and
Secretary of the Company. Prior to joining the Bank in 1998, Mr. Lee served as
Executive Vice President and In-House Counsel at Royal Card Bank from 1996 to
1997. From 1994 to 1996, Mr. Lee served as Vice President and In-House Counsel
at Bank of Lafayette. From 1993 to 1994, Mr. Lee served as a trial consultant
for Litigation Dynamics, Inc.
JAMES R. MCLEMORE, age 40, is Senior Vice President and Chief Financial
Officer of the Company. Prior to joining the Bank in 1998, Mr. McLemore served
as Staff Accountant with the Securities and Exchange Commission ("SEC") from
1997 to 1998 and as Vice President and Treasurer of Bank Corporation of Georgia
from 1990 to 1997. Mr. McLemore is also a Chartered Financial Analyst and a
Certified Public Accountant.
JANEL F. TATE, age 45, is Senior Vice President - Mortgage Lending Manager
of the Bank. Ms. Tate has been with the Bank since 1984 and prior to the
appointment to her current position in September 1997, Ms. Tate served as Senior
Vice President - Compliance Manager from 1966 to 1997 and as Vice President -
Mortgage Executive prior thereto.
5
<PAGE>
COMPLIANCE WITH SECTION 16(A) OF THE 1934 ACT
Section 16(a) of the 1934 Act, requires the officers and directors, and
persons who own more than 10% of the Company's Common Stock to file reports of
ownership and changes in ownership with the SEC and the National Association of
Securities Dealers, Inc. Officers, directors and greater than 10% stockholders
are required by regulation to furnish the Company with copies of all Section
16(a) forms they file.
Based solely on review of the copies of such forms furnished to the
Company, or written representations from its officers and directors, the Company
believes that during, and with respect to, 1999, the Company's officers and
directors complied in all respects with the reporting requirements promulgated
under Section 16(a) of the 1934 Act.
BENEFICIAL OWNERSHIP OF COMMON STOCK
BY CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table includes, as of the Voting Record Date, certain
information as to the Common Stock beneficially owned by (i) the only persons or
entities, including any "group" as that term is used in Section 13(d)(3) of the
1934 Act, who or which was known to the Company to be the beneficial owner of
more than 5% of the issued and outstanding Common Stock, (ii) the directors of
the Company, (iii) certain executive officers of the Company, and (iv) all
directors and executive officers of the Company as a group.
6
<PAGE>
COMMON STOCK
BENEFICIALLY OWNED AS OF
VOTING RECORD DATE(1)(2)(3)(4)
------------------------------
NAME OF BENEFICIAL OWNER AMOUNT PERCENTAGE
------------------------ ------ ----------
ISB Financial Corporation 567,335(5) 8.7%
Employee Stock Ownership Plan Trust
1101 E. Admiral Doyle Drive
New Iberia, Louisiana 70560
John Hancock Mutual Life 448,000(6) 6.8
Insurance Company
John Hancock Place
P. O. Box 111
Boston, Massachusetts 02199
DePrince, Race & Zollo, Inc 651,000(7) 9.9
201 S. Orange Ave., Suite 850
Orlando, Florida 32801
Dimensional Fund Advisors, Inc. 415,600(8) 6.3
1299 Ocean Avenue
11th Floor
Santa Monica, California 90401
Directors:
Elaine D. Abell 23,352 *
Harry V. Barton, Jr. 27,620 *
Ernest P. Breaux, Jr. 2,000 *
Cecil C. Broussard 41,221 *
Daryl G. Byrd 28,000 *
William H. Fenstermaker 18,499 *
Richard F. Hebert 5,283 *
Ray Himel 24,671 *
Larrey G. Mouton 156,616 2.4
Emile J. Plaisance, Jr. 31,506 *
E. Stewart Shea, III 44,552 *
Executive Officers who are not Directors:
Barry Mulroy 10,000 *
John R. Davis 11,500 *
Patrick Trahan 12,500 *
Michael Brown 10,000 *
George J. Becker 10,000 *
Donald P. Lee 22,093 *
James R. McLemore 12,222 *
Janel Tate 19,821 *
All Directors and Executive Officers of the 511,456 7.6%
Company and the Bank as a group (19 persons)
(Footnotes on following pages)
7
<PAGE>
- ------------------
* Represents less than 1% of the outstanding Common Stock.
(1) For purposes of this table, pursuant to rules under the 1934 Act, an
individual is considered to "beneficially own" shares of Common Stock if he or
she, directly or indirectly, has or shares (1) voting power, which includes the
power to vote or to direct the voting of the shares; or (2) investment power,
which includes the power to dispose or direct the disposition of the shares.
Unless otherwise indicated, an individual has sole voting power and sole
investment power with respect to the indicated shares. In addition, an
individual is deemed to be the beneficial owner of any share of Common Stock of
which he or she has the right to acquire voting power within 60 days of the
Voting Record Date.
(2) Includes shares of Common Stock owned directly by directors and executive
officers as well as shares held by their spouses, children and trusts of which
certain directors are trustees. Also includes shares allocated to the accounts
of participants in the ISB Financial Corporation Employee Stock Ownership Plan
("ESOP") and executive officers' accounts in the Bank's 401(k) retirement plan.
(3) Includes beneficial ownership of the following numbers of shares that may be
acquired within 60 days of the Voting Record Date upon the exercise of stock
options: 8,628 shares by each of Ms. Abell and Messrs. Barton, Broussard,
Fenstermaker, Himel, Plaisance and Shea; 79,077 shares by Mr. Mouton; 2,286
shares by Mr. Lee; 429 shares by Mr. McLemore; 1,008 shares by Ms. Tate; and
143,196 shares by all directors and executive officers as a group.
(4) Includes beneficial ownership of the following number of shares held in the
Recognition and Retention Plan of Iberia Savings ("RRP") Trust ("RRP Trust")
that may be voted by the following persons: 4,601 shares by each of Ms. Abell
and Messrs. Barton, Broussard, Fenstermaker, Himel, Plaisance and Shea; 16,869
shares by Mr. Mouton; 28,000 shares by Mr. Byrd; 10,000 shares by each of
Messrs. Mulroy, Davis, Brown and Becker; 12,500 shares by Mr. Trahan; 8,714
shares by Mr. Lee; 5,571 shares by Mr. McLemore; 2,571 shares by Ms. Tate; and
146,432 shares by all directors and executive officers as a group. (5) The ISB
Financial Corporation Employee Stock Ownership Plan Trust was established
pursuant to the ESOP. Messrs. Broussard, Fenstermaker and Shea act as trustees
of the ESOP ("Trustees"). As of the Voting Record Date, 302,495 shares held in
the ESOP Trust had been allocated to the accounts of participating employees.
Under the terms of the ESOP, the Trustees must vote all allocated shares held in
the ESOP in accordance with the instructions of the participating employees, and
allocated shares for which employees do not give instructions, and unallocated
shares, will be voted in the same ratio on any matter as to those shares for
which instructions are given. The amount of Common Stock beneficially owned by
each individual trustee or all directors and executive officers as a group does
not include the unallocated shares held by the ESOP Trust. (6) Pursuant to a
Schedule 13G, filed on January 15, 1999, John Hancock Advisers, Inc., a
registered investment adviser and indirect, wholly-owned subsidiary of John
Hancock Mutual Life Insurance Company, has sole voting and dispositive power
pursuant to advisory agreements with the following: the John Hancock Bank and
Thrift Opportunity Fund, which holds 106,000 shares of Common Stock, the John
Hancock Bank Regional Fund, which holds 320,000 shares of Common Stock, and the
Southeastern Thrift and Bank Fund, Inc., which holds 22,000 shares of Common
Stock.
(7) As reported in a Schedule 13G filed by DePrince, Race & Zollo, Inc. on
February 14, 2000.
(8) Pursuant to a Schedule 13G, filed on February 3, 2000, Dimensional Fund
Advisors Inc. ("Dimensional"), a registered investment adviser, furnishes
investment advice to four investment companies registered under the Investment
Company Act of 1940 and serves as investment manager to certain other commingled
group trusts and separate accounts (collectively, the "Funds"). In its role as
investment adviser or manager, Dimensional possesses voting and/or investment
power over the securities of the Company that are owned by the Funds. All
securities reported by Dimensional are owned by the Funds. Dimensional disclaims
beneficial ownership of such securities.
8
<PAGE>
EXECUTIVE COMPENSATION
SUMMARY COMPENSATION TABLE
Directors and officers do not receive separate compensation directly from
the Company. All compensation is paid by the Bank. The following table sets
forth a summary of certain information concerning the compensation paid for
services rendered in all capacities during the years ended December 31, 1999,
1998 and 1997 to the Chief Executive Officer and the other executive officers of
the Company and its subsidiaries whose total compensation during the fiscal year
exceeded $100,000.
<TABLE>
<CAPTION>
LONG-TERM COMPENSATION
----------------------------------------
ANNUAL COMPENSATION AWARDS PAYOUTS
--------------------------------------- -------------------------------- --------
RESTRICTED SECURITIES
NAME AND OTHER ANNUAL STOCK UNDERLYING LTIP ALL OTHER
PRINCIPAL POSITION YEAR SALARY BONUS COMPENSATION(1) AWARD(S)(2) OPTIONS/SARS(#)(2) PAYOUTS COMPENSATION
- ------------------ ---- ------ ----- --------------- ----------- ------------------ ------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Larrey G. Mouton 1999 $228,800 $60,001 $-- $-- -- $-- $17,871(3)
Chief Executive 1998 200,003 525 -- -- -- $-- $38,159(3)
Officer 1997 200,003 500 -- -- -- $-- $55,804(3)
Daryl G. Byrd 1999 $110,769(4) $ -- $-- $616,000(5) 84,000 $-- $ --
President
Donald P. Lee 1999 $109,917 $13,469 $-- $ 64,125(7) 11,000 $-- $ 7,091(8)
Executive Vice 1998 89,792 1,300 -- $207,000(7) 8,000 -- 13,398(8)
President and 1997 22,500(6) 50 -- -- -- -- --
Secretary
James R. McLemore, Jr. 1999 $104,018 $ 5,520 $-- $129,000(10) 3,000 $-- $ 4,743(11)
Senior Vice President 1998 36,800(9) $ -- $-- -- 3,000 -- --
and Chief Financial
Officer
John J. Ballatin 1999 $137,616(12) $24,722 $-- $ 64,125(13) -- $-- $ --
Executive Vice 1998 103,000 2,608 -- --- 5,000 -- 16,693(14)
President 1997 63,350(12) 14,050 -- 247,500(13) 10,000 -- --
Ronald Howton 1999 $ 99,402 $15,341 $-- $-- -- $-- $ 6,900(16)
Senior Vice 1998 85,225 3,680 -- -- -- -- 12,992(16)
President 1997 63,502 2,850 -- 76,500(15) 2,650 -- 12,513(16)
</TABLE>
- ----------------
(1) Does not include amounts attributable to miscellaneous benefits received by
the named executive officer. In the opinion of management of the Bank, the costs
to the Bank of providing such benefits to the named executive officer during the
individual periods did not exceed the lesser of $50,000 or 10% of the total of
annual salary and bonus reported for the individual.
(2) Reflects the value of shares of restricted stock granted pursuant to the
RRP. Such restricted stock vests over seven years from the date of grant. Cash
dividends declared in respect of restricted stock held by the RRP Trust is paid
by the RRP Trust, as soon as practicable after the RRP Trust's receipt thereof,
to the recipient on whose behalf such restricted stock is then held by the RRP
Trust. Any stock dividends declared in respect of restricted stock held by the
RRP Trust are held by the RRP Trust until the subject restricted stock is
distributed to the recipient thereof.
(3) Represents the fair market value of the shares of Common Stock allocated to
Mr. Mouton's account in 1999, 1998 and 1997 pursuant to the ESOP.
(4) Mr. Byrd was hired as the Company's President in July 1999.
(5) Represents 28,000 shares of restricted Common Stock granted in 1999 pursuant
to the RRP, which had the indicated value on the date of grant and a fair market
value of $385,000 on December 31, 1999.
(6) Mr. Lee was hired as the Company's Executive Vice President-In-House Counsel
in August 1997.
(7) Represents 11,000 and 8,000 shares of restricted Common Stock granted in
1999 and 1998, respectively, pursuant to the RRP, which had the indicated values
on the dates of grant. Mr. Lee had aggregate restricted stock holdings of 19,000
shares with a fair market value of $261,250 at December 31, 1999.
(Footnotes continued on following page)
9
<PAGE>
(8) Represents the fair market value of the shares of Common Stock allocated to
Mr. Lee's account in 1999 and 1998 pursuant to the ESOP.
(9) Mr. McLemore was hired as the Company's Chief Financial Officer in August
1998.
(10) Represents 6,000 shares of restricted Common Stock granted in 1999 pursuant
to the RRP, which had the indicated value on the date of grant and a fair market
value of $82,500 on December 31, 1999.
(11) Represents the fair market value of the shares of Common Stock allocated to
Mr. McLemore's account in 1999 pursuant to the ESOP.
(12) Mr. Ballatin was hired as the Company's Executive Vice President in 1997
and left the Company in 1999.
(13) Represents 3,000 and 10,000 shares of restricted Common Stock granted in
1999 and 1997, respectively, pursuant to the RRP, which had the indicated values
on the dates of grant. Mr. Ballatin had no restricted stock holdings at December
31, 1999.
(14) Represents the fair market value of the shares of Common Stock allocated to
Mr. Ballatin's account in 1999 and 1998 pursuant to the ESOP.
(15) Represents 3,000 shares of restricted Common Stock granted in 1997 pursuant
to the RRP, which had the indicated value on the date of grant. Mr. Howton had
aggregate restricted stock holdings of 2,142 shares with a fair market value of
$29,452 at December 31, 1999.
(16) Represents the fair market value of the shares of Common Stock allocated to
Mr. Howton's account in 1999, 1998 and 1997 pursuant to the ESOP.
STOCK OPTIONS
The following table sets forth certain information concerning the grant of
stock options to Daryl G. Byrd, the only named executive officer granted options
during fiscal 1999.
<TABLE>
<CAPTION>
INDIVIDUAL GRANTS
-----------------------------------------------------------------------------
POTENTIAL REALIZABLE
PERCENT OF VALUE AT ASSUMED
NUMBER OF SECURITIES TOTAL OPTIONS ANNUAL RATES OF STOCK
UNDERLYING GRANTED TO EXERCISE OR PRICE APPRECIATION
OPTIONS GRANTED EMPLOYEES IN BASE PRICE EXPIRATION FOR OPTION TERM(2)
-------------------
(NUMBER OF SHARES) FISCAL YEAR ($ PER SHARE)(1) DATE 5%($) 10%($)
------------------ ----------- ---------------- ---- ----- ------
<S> <C> <C> <C> <C> <C> <C>
Daryl G. Byrd 84,000 29.8% $22.00 07/07/09 $33,600 $1,147,440
</TABLE>
- -------------------
(1) In each case the exercise price was based on the fair market value of the
Common Stock on the date of grant. (2) Amounts represent hypothetical gains that
could be achieved for the options if exercised at the end of the option term.
These gains are based on assumed rates of stock price appreciation of 5% and 10%
compounded annually from the date the options were granted to their expiration
date. The gains shown are net of the option exercise price, but do not include
deductions for taxes or other expenses associated with the exercise of the
option or the sale of the underlying shares. The actual gains, if any, on the
exercise of stock options will depend, in part, on the future performance of the
Common Stock, the option holder's continued employment throughout the option
period, and the date on which the options are exercised.
In 1999, executive officers of the Company (7 persons) were granted options
to purchase a total of 269,000 shares of Common Stock at a weighted average
exercise price of $17.41 per share. In each case the exercise price was based on
the fair market value of the Common Stock on the date of grant. Stock options to
purchase a total of 91,416 shares of Common Stock held by former officers and
other employees of the Company were cancelled in 1999.
10
<PAGE>
The following table sets forth information concerning the value of stock
options held at December 31, 1999 by the named executive officers. Such officers
did not exercise any options during 1999.
NUMBER OF VALUE OF UNEXERCISED
UNEXERCISED IN-THE-MONEY
OPTIONS AT YEAR END OPTIONS AT YEAR END (1)
--------------------------- --------------------------
NAME EXERCISABLE UNEXERCISABLE EXERCISABLE UNEXERCISABLE
---- ----------- ------------- ----------- -------------
Larrey G. Mouton 79,077 105,439 -- --
Daryl G. Byrd -- 84,000 -- --
Donald P. Lee 2,286 5,714 -- --
James R. McLemore, Jr. 429 2,571 -- --
John J. Ballatin 3,572 -- -- --
Ronald Howton 1,766 3,234 -- --
- ----------------
(1) Calculated by determining the difference between the fair market value of
the Common Stock underlying the options at December 31, 1999 ($13.75 per share)
and the exercise price of the options. An option is in-the-money if the fair
market value of the underlying security exceeds the exercise price of the
option.
DIRECTORS' COMPENSATION
During 1999, members of the Board of Directors of the Bank received fees of
$2,000 per month for their services as directors of the Bank, except for the
Chairman, who received fees of $2,300 per month, and Mr. Mouton, who was not
compensated for such service. Members of the Board of Directors receive no
additional compensation for their participation in any of the Committees or for
services as directors of the Company.
AGREEMENTS WITH MANAGEMENT
In July 1999, the Company and the Bank (collectively, the "Employers")
entered into a two-year employment agreement with Mr. Mouton which superseded
his 1995 employment agreement with the Company and the Bank. Until July 1, 2000,
the Employers will employ Mr. Mouton as Chief Executive Officer of the Company;
thereafter Mr. Mouton will serve in such capacities as may be mutually agreed
upon by him and the Company. On an annual basis, the term of employment is
automatically extended for an additional one-year period beyond the then
effective expiration date unless written notice from the Employers is received
at least 90 days prior to an anniversary date advising Mr. Mouton that the
agreement shall not be further extended. The agreement is terminable with or
without cause by the Employers. Mr. Mouton shall have no right to compensation
or other benefits pursuant to the employment agreement for any period after
voluntary termination. In the event that Mr. Mouton is terminated by the
Employers for cause, disability or retirement, he shall have no right to
compensation or other benefits, except that in the event of termination based on
disability, the Employers shall provide continued medical insurance for the
benefit of Mr. Mouton and his wife until he attains the age of 65. In the event
of Mr. Mouton's death, his estate shall be paid his then annual compensation for
a period of 12 months. In the event that Mr. Mouton's employment is terminated
by the Employers for other than cause, disability, retirement or Mr. Mouton's
death or that Mr. Mouton terminates his employment because of failure of the
Employers to comply with any material provision of the employment agreement
(e.g., a reduction in his base salary), he shall be entitled to severance
payments equal to the greater of the amount of his base salary (initially,
$228,000 per year) for the remaining term of the agreement or his base salary
multiplied by 1.0. In the event that the employment agreement is terminated by
the Employers other than for cause, disability, retirement or death or by Mr.
Mouton as a result of certain adverse actions which are taken with respect to
the officer's employment following a Change in Control of the Company, as
defined, Mr. Mouton will be entitled to cash severance payments equal to the
greater of the amount of his base salary for the remaining term of the agreement
or his base salary at the date of termination multiplied by 2.0. The aggregate
payments to Mr. Mouton assuming termination of employment following a Change in
Control at December 31, 1999, and without regard to other severance payments,
would have been approximately $456,000. In addition, Mr. Mouton will be entitled
to a continuation of benefits similar to those he is receiving at the time of
such termination for the period otherwise remaining under the term of the
agreement or until he obtains full-time employment with another employer,
whichever occurs first. A "Change in Control" is generally defined in the
employment agreement to include any change in control required to be reported
under the federal securities laws, as well as the acquisition by any person of
25% or more of the Company's outstanding voting securities. Mr. Mouton's
employment agreement provides that in the event
11
<PAGE>
that any payments to be paid thereunder are deemed to constitute "excess
parachute payments" and, therefore, subject to an excise tax under Section 4999
of the Internal Revenue Code of 1986, the Employers may (i) contest the
liability and exhaust all administrative and judicial appeals to that end,
and/or (ii) pay Mr. Mouton an amount equal to the excise tax for which he is
liable plus an amount equal to any additional federal, state, or local taxes
that may result because of such additional payment.
In July 1999, the Employers entered into a three-year employment agreement
with Mr. Byrd. Until July 1, 2000, the Employers will employ Mr. Byrd as
President of the Company and President and Chief Executive Officer of the Bank;
thereafter, Mr. Byrd will also serve as Chief Executive Officer of the Company.
Mr. Byrd's initial base salary under the employment agreement is $240,000 per
year. In addition, the agreement provided that, as of the date thereof, Mr. Byrd
be granted stock options to acquire 84,000 shares of Common Stock as well as
awards under the RRP of 28,000 restricted shares of Common Stock. In most other
respects, the terms and conditions of the employment agreement with Mr. Byrd are
comparable to those in the employment agreement with Mr. Mouton. The aggregate
payments to Mr. Byrd assuming termination of employment following a Change in
Control at December 31, 1999, and without regard to other severance payments
would have been approximately $600,000.
The Employers have also entered into severance agreements with Donald P.
Lee and James R. McLemore, Jr. Under the terms of such severance agreements, the
Employers have agreed that in the event that such officer's employment is
terminated as a result of certain adverse actions which are taken with respect
to the officer's employment following a Change in Control of the Company, as
defined, such officer will be entitled to a cash severance amount equal to his
base salary multiplied by 2.0.
Although the above-described employment and severance agreements could
increase the cost of any acquisition of control of the Company, management of
the Company does not believe that the terms thereof would have a significant
anti-takeover effect.
The Company has entered into indemnification agreements with Daryl G. Byrd
and Michael Brown. The indemnification agreements provide for retroactive as
well as prospective indemnification to the fullest extent permitted by law
against any and all expenses (including reasonable attorneys' fees), judgments,
fines, excise taxes and amounts paid in settlement of a proceeding. The
agreements provide for the advancement of expenses upon the indemnitee's
undertaking to repay such payment if the indemnitee shall be adjudicated to be
not entitled to indemnification under Louisiana law. Following a Change in
Control, as defined in the agreements, all determinations regarding a right to
indemnity and advancement of expenses shall be made by an independent legal
counsel. A "Change in Control" is generally defined in the indemnification
agreements to include the acquisition by any person of 25% or more of the
Company's outstanding voting securities, a change in a majority of the Board of
Directors without Board approval, or a merger in which the Company's voting
securities do not continue to represent at least 80% of the total voting
securities. In the event of a potential Change in Control, the Company shall
create a trust for the benefit of the indemnitees which upon a Change in Control
shall not be revoked or the principal thereof invaded without the indemnitee's
written consent. While not requiring the maintenance of directors' and officers'
liability insurance, the indemnification agreements require that the indemnitees
be provided with maximum coverage if there is such a policy.
TRANSACTIONS WITH CERTAIN RELATED PERSONS
Directors and executive officers of the Company were customers of the Bank
in the ordinary course of business during 1999. These individuals also conducted
other business with the Bank during the year. In addition, members of families
of directors and executive officers, as well as companies with which they or
their families are associated, were customers of the Bank and conducted other
business with the Bank in the ordinary course of business during 1999. All loans
and commitments included in those transactions were made on substantially the
same terms, including interest rates and collateral, as those prevailing at the
time for comparable transactions with other persons and did not involve more
than normal risk of collectibility or present other unfavorable features.
REPORT OF THE COMPENSATION COMMITTEE
The goals of the Compensation Committee are to assist the Company and the
Bank in attracting and retaining qualified management, to motivate executives to
achieve performance goals, to reward management for outstanding performance and
to ensure that the financial interests of management and stockholders are
satisfied.
12
<PAGE>
Overview. Under the compensation policies of the Company and the Bank,
which are endorsed by the Committee, compensation is paid based both on the
executive officer's performance and the performance of the entire Company. In
assessing performance for purposes of compensation decisions, the Committee
considers financial and non-financial accomplishments, including but not limited
to, net income of the Bank, profitability ratios, reports of regulatory
examinations, overall growth of the Bank and market value of the Common Stock.
The Committee reviews and considers the SNL Executive Compensation Review and
the Watson Company Salary Survey for Executive Officers for a comparison of
compensation paid by the Bank's peer group. In assessing performance, the
Committee does not make use of a mechanical weighting formula or use specific
targets, but instead weighs the described factors as they deem appropriate in
the total circumstances.
Base Salary. In 1999 salary levels of senior officers (including the named
executive officers) were established in 1998 consistent with this compensation
policy. During 1999, Mr. Mouton's base salary was $228,000. In determining Mr.
Mouton's base salary, the Compensation Committee considered the above-referenced
factors, including the compensation analyses prepared by the referenced third
parties. In July 1999, the Company and the Bank entered into a new employment
agreement with Mr. Mouton which provided that his base salary will continue to
be $228,000 per year, which may be increased, but not decreased, by the Board of
Directors, and that Mr. Mouton may continue to receive discretionary bonuses.
Under the agreement, Mr. Mouton has agreed to serve as Chief Executive Officer
of the Company until July 1, 2000 and thereafter to serve in such capacities as
he and the Company may mutually agree to.
Also in July 1999, the Company and the Bank entered into an employment
agreement with Daryl G. Byrd to serve as President of the Company and President
and Chief Executive Officer of the Bank. Under the employment agreement, Mr.
Byrd will become Chief Executive Officer of the Company on July 1, 2000. In
determining Mr. Byrd's base salary of $240,000, the Committee recognized Mr.
Byrd's reputation in the Louisiana banking industry and his record of prior
achievements at other financial institutions which the Committee and the Board
of Directors believe will expedite the Bank's growth as a commercial bank. Under
the terms of his employment agreement, Mr. Byrd's salary may be increased, but
not decreased, by the Board of Directors, and Mr. Byrd may receive bonuses,
when, as, and if determined by the Board of Directors.
Subsequent to Mr. Byrd's employment, the Company and the Bank retained a
number of senior officers with substantial commercial bank experiences. The
Committee also considered their records of achievement in establishing their
compensation levels.
In determining awards granted to executive officers under the Company's
stock option plans and RRP, other than Mr. Mouton who did not receive any such
awards in 1999, the Committee considered the contributions made by such officers
to the Company and the Bank and such officers' responsibilities. The awards
granted under the stock option plans and RRP were also designed to provide an
incentive to executive officers to contribute to the Company's continued success
as a commercial bank holding company in the future. The Executive Bonus Plan,
which was adopted in 1998, provides for bonuses to be paid to executive officers
based upon certain performance criteria, which consists primarily of meeting net
income targets. Bonuses payable thereunder for 1998 were paid in 1999 and
aggregated $129,852, including a bonus of $60,001 to Mr. Mouton.
Following review and approval by the Committee, all issues pertaining to
executive compensation are submitted to the full Board of Directors for their
approval.
Respectfully submitted,
Cecil C. Broussard
William H. Fenstermaker
E. Stewart Shea, III
13
<PAGE>
ADDITIONAL INFORMATION WITH RESPECT TO COMPENSATION COMMITTEE INTERLOCKS AND
INSIDER PARTICIPATION IN COMPENSATION DECISIONS
None of the members of the Compensation Committee was an officer or
employee of the Company or any of its subsidiaries during 1999. None of these
individuals is a former officer of the Company or any of its subsidiaries.
PERFORMANCE GRAPH
The following graph, which was prepared by SNL Securities LC,
Charlottesville, Virginia, compares the cumulative total return on the Common
Stock over a measurement period since the Company's initial issuance of Common
Stock in April 1995 with (i) the cumulative total return on the stocks included
in the National Association of Securities Dealers, Inc. Automated Quotation
("NASDAQ") Total Return Index (for United States companies) and (ii) the
cumulative total return on the stocks included in the SNL Peer Group Index. All
of these cumulative returns are computed assuming the reinvestment of dividends
which were paid during the applicable time period.
[TOTAL RETURN PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
PERIOD ENDING
------------------------------------------------------------------------
INDEX 04/07/95 12/31/95 12/31/96 12/31/97 12/31/98 12/31/99
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ISB Financial Corporation 100.00 117.64 144.13 243.28 184.37 118.80
NASDAQ - Total US 100.00 130.26 160.26 196.37 276.66 502.90
SNL $1B-$5B Bank Index 100.00 127.87 165.77 276.45 275.81 253.48
</TABLE>
14
<PAGE>
RATIFICATION OF APPOINTMENT OF AUDITORS
The Board of Directors of the Company has appointed Castaing, Hussey, Lolan
& Dauterive, L.L.P., independent certified public accountants, to perform the
audit of the Company's financial statements for the fiscal year ending December
31, 2000, and further directed that the selection of auditors be submitted for
ratification by the stockholders at the Annual Meeting.
The Company has been advised by Castaing, Hussey, Lolan & Dauterive, L.L.P.
that neither that firm nor any of its associates has any relationship with the
Company or its subsidiaries other than the usual relationship that exists
between independent certified public accountants and clients. Castaing, Hussey,
Lolan & Dauterive, L.L.P. will have one or more representatives at the Annual
Meeting who will have an opportunity to make a statement, if they so desire, and
will be available to respond to appropriate questions.
THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE FOR THE RATIFICATION OF THE
APPOINTMENT OF CASTAING, HUSSEY, LOLAN & DAUTERIVE, L.L.P. AS
INDEPENDENTAUDITORS FOR THE FISCAL YEAR ENDING DECEMBER 31, 2000.
PROPOSED AMENDMENT OF THE ARTICLES OF INCORPORATION
TO CHANGE THE COMPANY'S NAME
The Board of Directors of the Company has unanimously approved the proposed
amendment of Article 1 of the Articles of Incorporation and recommended that it
be submitted to the Company's stockholders for approval.
The proposed amendment would, if approved, change the corporate title of
the Company from "ISB Financial Corporation" to "IBERIABANK Corporation" by
amending Article 1 of the Articles of Incorporation to read as follows:
ARTICLE 1. NAME. The name of the corporation is IBERIABANK Corporation
(hereinafter referred to as the "Corporation").
The Board of Directors believes that there are two significant benefits to
the proposed title change. First, the Board believes that this name change will
both increase public awareness of the holding company relationship between the
Company and the Bank and eliminate any confusion as to this relationship.
Second, because the Bank operates under a commercial bank charter, elimination
of the ISB reference will confirm that the Bank is being repositioned as a
commercial bank rather than as a thrift institution.
If the proposed amendment is approved the Common Stock symbol on the Nasdaq
Stock Market will be changed from "ISBF" to "IBKC."
THE PROPOSED AMENDMENT OF ARTICLE 1 OF THE ARTICLES OF INCORPORATION TO BE
EFFECTIVE MUST BE APPROVED BY A MAJORITY OF THE SHARES ENTITLED TO VOTE
GENERALLY IN AN ELECTION OF DIRECTORS. THE BOARD OF DIRECTORS BELIEVES THAT THE
PROPOSED NAME CHANGE IS IN THE BEST INTERESTS OF THE COMPANY AND ITS
STOCKHOLDERS AND RECOMMENDS THAT STOCKHOLDERS VOTE FOR THE PROPOSED AMENDMENT OF
ARTICLE 1 OF THE ARTICLES OF INCORPORATION.
STOCKHOLDER PROPOSALS
Any proposal which a stockholder wishes to have included in the proxy
materials of the Company relating to the next annual meeting of stockholders of
the Company, which is scheduled to be held in April 2001, must be received at
the principal executive offices of the Company, 1101 E. Admiral Doyle Drive, New
Iberia, Louisiana, Attention: Donald P. Lee, Secretary, no later than December
6, 2000. If such proposal is in compliance with all of the requirements of Rule
14a-8 under the 1934 Act, it will be included in the proxy statement and set
forth on the form of proxy issued for such annual meeting of stockholders. It is
urged that any such proposals be sent certified mail, return receipt requested.
Stockholder proposals which are not submitted for inclusion in the
Company's proxy materials pursuant to Rule 14a-8 under the 1934 Act may be
brought before an annual meeting pursuant to Article 9.D. of the Company's
15
<PAGE>
Articles, which provide that the stockholder must give timely notice thereof in
writing to the Secretary of the Company. A stockholder's notice to the Secretary
shall set forth as to each matter the stockholder proposes to bring before the
annual meeting (a) a brief description of the proposal desired to be brought
before the annual meeting and the reasons for conducting such business at the
annual meeting, (b) the name and address, as they appear on the Company's books,
of the stockholder proposing such business and, to the extent known, any other
stockholders known by such stockholder to be supporting such proposal, (c) the
class and number of shares of the Company's capital stock which are beneficially
owned by the stockholder on the date of such stockholder notice and, to the
extent known, by any other stockholders known by such stockholder to be
supporting such proposal on the date of such stockholder notice, and (d) any
financial interest of the stockholder in such proposal (other than interests
which all stockholders would have). To be timely with respect to the annual
meeting of stockholders scheduled to be held in April 2001, a stockholder's
notice must be delivered to, or mailed and received at, the principal executive
offices of the Company no later than March 6, 2001.
ANNUAL REPORTS
A copy of the Company's Annual Report to Stockholders for the year ended
December 31, 1999 accompanies this Proxy Statement. Such Annual Report is not
part of the proxy solicitation materials.
Upon receipt of a written request, the Company will furnish to any
stockholder without charge a copy of the Company's Annual Report on Form 10-K
for fiscal 1999 required to be filed with the SEC under the Exchange Act. Such
written requests should be directed to James R. McLemore, Jr., Senior Vice
President and Chief Financial Officer, ISB Financial Corporation, 1101 East
Admiral Doyle Drive, New Iberia, Louisiana 70560.
OTHER MATTERS
Management is not aware of any business to come before the Annual Meeting
other than the matters described above in this Proxy Statement. However, if any
other matters should properly come before the Annual Meeting as to which proxies
in the accompanying form confer discretionary authority, the Board of Directors
will vote such proxies in accordance with their judgment. Under SEC rules, if a
stockholder notifies the Company after February 21, 2000 of such stockholder's
intent to present a proposal at the Annual Meeting, the persons named in the
accompanying proxy may exercise such discretionary voting authority if the
proposal is raised at the Annual Meeting, without any discussion of the matter
in this Proxy Statement.
The cost of the solicitation of proxies will be borne by the Company. The
Company will reimburse brokerage firms and other custodians, nominees and
fiduciaries for reasonable expenses incurred by them in sending the proxy
materials to the beneficial owner of the Company's Common Stock. In addition to
solicitations by mail, directors, officers and employees of the Company may
solicit proxies personally or by telephone without additional compensation.
By Order of the Board of Directors
/s/ Emile J. Plaisance, Jr.
Emile J. Plaisance, Jr.
CHAIRMAN OF THE BOARD
New Iberia, Louisiana
April 5, 2000
16
<PAGE>
FORM OF
REVOCABLE PROXY
ISB FINANCIAL CORPORATION
ANNUAL MEETING OF STOCKHOLDERS
MAY 5, 2000
The undersigned, being a stockholder of ISB Financial Corporation
("Company") as of March 9, 2000, hereby authorizes the Board of Directors of the
Company or any successors thereto as proxies with full powers of substitution,
to represent the undersigned at the Annual Meeting of Stockholders of the
Company to be held at the main office of IBERIABANK, located at 1101 East
Admiral Doyle Drive, New Iberia, Louisiana, on Friday, May 5, 2000 at 3:00 p.m.,
Central Time, and at any adjournment of said Meeting, and thereat to act with
respect to all votes that the undersigned would be entitled to cast, if then
personally present, as follows:
1. Election of Directors for three-year term
|_| FOR |_| WITHHOLD |_| FOR ALL EXCEPT
Nominees for three-year term expiring in 2003: Cecil C. Broussard, Ernest, P.
Breaux, Jr. and Richard F. Hebert.
(Instruction: To withhold authority to vote for any individual nominee, mark
"For All Except" and write that nominee's name in the space provided below.)
THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE "FOR" ALL OF THE NOMINEES LISTED
ABOVE.
2. Ratification of the appointment by the Board of Directors of Castaing,
Hussey, Lolan & Dauterive, L.L.P. as the Company's independent auditors for the
fiscal year ending December 31, 2000.
|_| FOR |_| AGAINST |_| ABSTAIN
THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE "FOR" THE RATIFICATION OF
CASTAING, HUSSEY, LOLAN & DAUTERIVE, L.L.P.
3. Proposal to amend Article 1 of the Articles of Incorporation to change the
Company's name to "IBERIABANK Corporation".
|_| FOR |_| AGAINST |_| ABSTAIN
THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE "FOR" THE PROPOSAL TO AMEND THE
COMPANY'S ARTICLES OF INCORPORATION TO CHANGE THE COMPANY'S NAME.
4. This transaction of such other business as may properly come before the
Annual Meeting or any adjournments thereof.
<PAGE>
SHARES OF THE COMPANY'S COMMON STOCK WILL BE VOTED AS SPECIFIED. IF
RETURNED BUT NOT OTHERWISE SPECIFIED, THIS PROXY WILL BE VOTED FOR THE ELECTION
OF THE BOARD OF DIRECTORS' NOMINEES TO THE BOARD OF DIRECTORS, FOR RATIFICATION
OF THE COMPANY'S INDEPENDENT AUDITORS, FOR THE PROPOSED AMENDMENT TO THE
ARTICLES OF INCORPORATION TO CHANGE THE COMPANY'S NAME TO "IBERIABANK
CORPORATION," AND OTHERWISE AT THE DISCRETION OF THE PROXIES. YOU MAY REVOKE
THIS PROXY AT ANY TIME PRIOR TO THE TIME IT IS VOTED AT THE ANNUAL MEETING.
Dated: ______________ , 2000
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Signatures
PLEASE SIGN THIS PROXY EXACTLY AS YOUR NAMES(S) APPEAR(S) ON THIS PROXY. WHEN
SIGNING IN A REPRESENTATIVE CAPACITY, PLEASE GIVE TITLE. WHEN SHARES ARE HELD
JOINTLY, ONLY ONE HOLDER NEED SIGN.
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PLEASE MARK, SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY USING THE ENCLOSED
ENVELOPE.
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