IBERIABANK Corporation Reports Revenue and Earnings Improvement
PRNewswire-FirstCall
LAFAYETTE, La.

IBERIABANK Corporation , the holding company of the 115-year-old IBERIABANK (http://www.iberiabank.com/ ), announced record-operating earnings for the quarter ended June 30, 2002. For the quarter ended June 30, 2002, the Company earned $4.6 million, a 29% increase over the same period in 2001. On a per share basis, the Company earned $0.75 per diluted share, up 29% from the same period in 2001. The Company's results of $0.75 per diluted share exceeded average analyst expectations of $0.73 per share. For ten consecutive quarters, the Company achieved record operating results that met or exceeded average analyst estimates. On a year to date basis, the Company earned $9.0 million or $1.47 per diluted share, up 28% over the same six-month period in 2001.

Daryl G. Byrd, President and CEO of IBERIABANK Corporation, remarked, "We experienced an outstanding quarter in many ways. Revenue and margin expansion, combined with a 27% reduction in non-performing assets and continued expense discipline resulted in exceptional earnings growth for our Company. I believe that our continuous improvement is the result of teamwork, our commitment to taking care of clients' needs, and our focus on providing value to our shareholders."

Total assets at June 30, 2002 were $1.44 billion, up 1% versus December 31, 2001. Compared to year-end 2001, non-mortgage loans increased $28 million, or 4%. Total deposits declined $43 million, or 3.5%, over this same period. Reductions in higher cost Certificates of Deposit and seasonal declines in transaction deposit balances were the primary reasons for the lower deposit balances. In addition, the Company completed the sale of the Morgan City, Louisiana branch office on June 21, 2002. The sale included approximately $5.4 million in loans and $12.1 million in deposits. The Company recorded a gain of $382,000 associated with the sale of this branch office.

As a result of favorable deposit repricing and mix changes, the Company's net interest margin continued to improve. For the second quarter of 2002 the Company reported a tax-equivalent net interest margin of 4.58%, up 48 basis points from 4.10% in the same quarter last year, and up 17 basis points compared to 4.41% reported for the first quarter of 2002. Total tax- equivalent revenues, excluding the gain on the sale of the Morgan City branch office, increased more than 15% in the second quarter of 2002 compared to the same quarter last year and up 8% compared to the first quarter of 2002. Total noninterest expense grew 5% versus the same quarter last year, and up 8% versus the first quarter of 2002. The tangible efficiency ratio is a measure of a bank's operating efficiency. The Company's tangible efficiency ratio improved from 55.4% in the first quarter of 2002 to 54.6% in the current quarter.

During the second quarter of 2002, the Company significantly reduced its level of excess liquidity due to three factors. First, the Company invested a portion of excess funds into mortgage-related investment securities with relatively short durations. Second, loans expanded $38 million during the quarter. Finally, total deposits declined $57 million during the quarter, due to the branch office sale, a reduction in high cost Certificates of Deposits, and a seasonal decline in transaction deposit balances. The Company's $324 million investment portfolio remains very short, with an effective maturity of approximately two years.

As previously disclosed, the Company resolved one of its larger non- performing assets during the second quarter. A substantial reserve was created in prior periods to cover potential losses associated with this Oilfield Service company credit. The credit was subsequently charged off during the second quarter of 2002 and the prior reserve was sufficient to address this charge-off.

The Company's provision for loan losses was $1.8 million in the second quarter of 2002, approximately twice the level experienced in the same quarter last year and nearly $600,000 more than the first quarter of 2002. The ratio of annualized net charge-offs to average loans was 0.64% during the second quarter of 2002, however, excluding the previously mentioned Oilfield Service credit charge-off, the annualized ratio was 0.34% of average loans. This ratio compares to 0.42% during the same quarter of last year and 0.37% in the first quarter of 2002. The allowance for loan losses was 1.21% at June 30, 2002, compared to 1.23% at March 31, 2002. The Company has historically used a very conservative definition of non-performing assets compared to peer institutions. The Company defines non-performing assets as non-accruing loans, accruing loans more than 90 days past due, foreclosed assets, and Other Real Estate Owned. Non-performing assets amounted to $8.6 million, or 0.60% of total assets, compared to 0.81% of total assets as of March 31, 2002 and 0.91% at year-end 2001. Non-performing assets declined by $4.4 million, or nearly 34%, since year-end 2001. Reserve coverage of non-performing loans nearly doubled, from 175% at March 31, 2002 to 328% at June 30, 2002.

The remaining two largest commercial credits included in the non- performing classification represented approximately 53% of total non- performing assets. Both of these loans were moved into OREO during the fourth quarter of 2001 as the Company continued to make progress with respect to their collection. Both of these properties are carried at values below recent appraisals.

Return on average assets was 1.29% for the second quarter of 2002, an improvement of six basis points from 1.23% in the first quarter of 2002. Return on average equity for the second quarter of 2002 was 13.21% or an improvement of nearly 22 basis points from 12.99% for the first quarter of 2002 and 10.76% in the same quarter one year ago.

Book value, or shareholders' equity, per share at June 30, 2002, was $24.38 and tangible book value per share was $18.35. These figures were up 10% and 14%, respectively, from one-year prior. The Company's Tier 1 Leverage Ratio continued to climb from 7.22% at March 31, 2002 to 7.59% at June 30, 2002. On December 18, 2001, the Company announced a share repurchase program authorizing the purchase of up to 300,000 shares of IBERIABANK Corporation common stock over a one-year period. To date, the Company has not purchased any shares under this latest program. The Company has traditionally completed its share repurchase programs during the announced time periods. The Company's closing stock price on July 12, 2002 was $40.70, up 47% versus year-end 2001.

The Company reaffirms previously stated guidance for anticipated annual earnings for the year of 2002. The Company remains comfortable with earnings in the range of $2.93 to $2.98 per fully diluted share for the full year 2002, including the favorable adjustments to earnings as a result of the adoption of FAS 142 beginning January 1, 2002. Based on this range, the Company expects EPS growth of 24% to 26% for the full year 2002 compared to reported full year 2001 results of $2.36 fully diluted EPS. Based on a closing stock price on July 12, 2002 of $40.70 per share, the Company's common stock traded at a price-to-earnings ratio of 13.7 times current average analyst estimates of $2.97 per fully diluted EPS for 2002. In addition, the Company's stock traded at 1.67 times June 30, 2002 book value per share of $24.38.

IBERIABANK operates 22 offices located in south central Louisiana, 10 offices located in north Louisiana, and 8 offices located in the greater New Orleans area.

To the extent that statements in this report relate to the plans, objectives, or future performance of IBERIABANK Corporation, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and the current economic environment. IBERIABANK Corporation's actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties. A discussion of factors affecting IBERIABANK Corporation's business and prospects is contained in the Company's periodic filings with the Securities and Exchange Commission.

 

Financial Tables Attached
Financial Tables Attached

FINANCIAL HIGHLIGHTS
(Dollars in thousands except per share data)
For the Three Months
Ended June 30
For the Three Months
Ended March 31
2002 2001 % Chnage 2002
Income Data
Net Income
$4,641 $3,587 29% $4,387
Net Interest Income $14,938 $13,510 11% $14,451
Per Share Data
Net Income - Basic
$0.81 $0.61 33% $0.77
Net Income - Diluted $0.75 $0.58 29% $0.72
Cash Earnings - Diluted $0.76 $0.68 12% $0.74

Book Value
$24.38 $22.22 10% $23.55
Tangible Book Value $18.35 $16.11 14% $17.48
Cash Dividends $0.18 $0.17 6% $0.18
Average Balance Sheet Data
Loans
$951,821 $944,487 1% $945,341
Securities $338,978 $276,565 23% $314,865
Earning Assets $1,327,818 $1,318,054 1% $1,338,471
Total Assets $1,439,173 $1,406,805 2% $1,450,175
Noninterest Bearing Deposits $145,585 $139,838 4% $147,435
Interest Bearing Deposits $1,073,764 $1,069,844 0% $1,093,809
Borrowings $50,681 $48,007 6% $41,679
Interest Bearing Liabilities $1,136,182 $1,122,643 1% $1,147,024
Shareholders' Equity 140,949 133,677 5% 136,922
Shares Outstanding
Basic
$5,727,497 $5,900,691 % $5,688,884
Diluted $6,202,216 6,197,371 % $6,075,969
Book Value (End of Period) $5,888,493 $6,087,493 % 5,856,905
Key Ratios
Return on Average Assets
1.29% 1.02% % 1.23%
Return on Average Equity 13.21% 10.76% % 12.99%
Net Interest Margin (TE) 4.58% 4.10% % 4.41%
Net Charge-Offs to Average Loans 0.64% 0.42% % 0.37%
Tangible Efficiency Ratio (TE) 54.6% 56.9% % 55.4%
Average Loans to Average Deposits 78.1% 78.1% % 76.2%
Nonperforming Assets to Total Assets 0.60% 0.59% % 0.81%
Allowance For Loan Losses to Loans 1.21% 1.05% % 1.23%
Tier 1 Leverage Ratio 7.59% 7.15% % 7.22%

IBERIABANK CORPORATION

LOANS RECEIVABLE

(Dollars in thousands)

 

June 30, 2002 % of Total December 31, 2001 % of Total % change
Residential Mortgage Loans:
Residential 1-4 family
$180,670 18.6% $198,403 20.8% (8.9)%
Construction $11,798 1.2% $5,915 0.6% 99.5%
Total Residential Mortgage Loans $192,468 19.8% $204,318 21.4% (5.8)%
Commercial Loans:
Real Estate
$244,116 25.1% $228,284 23.9% 6.9%
Buiness $133,512 13.7% $117,530 12.3% 13.6%
Commercial Leases $2,197 0.2% $--- ---% ---%
Total Commercial Loans and Leases $379,825 39.1% $345,814 36.2% 9.8%
Consumer Loans:
Indirect Automobile
$215,022 22.1% $220,698 23.1% (2.6)%
Home Equity $119,308 12.3% $114,056 11.9% 4.6%
Automobile $26,956 2.8% $28,793 3.0% (6.4)%
Credit Card Loans $9,548 1.0% $10,403 1.1% (8.2)%
Other $29,501 3.0% $31,933 3.3% (7.6)%
Total Consumer Loans $400,335 41.2% $405,883 42.4% (1.4)%
Total Loans Receivable $972,628 100.0% $956,015 100.0% 1.7%
Allowance for Loan Losses $(11,770) % $(11,117) % %
Loans Receivable, Net $960,858 % $944,898 % %

ASSET QUALITY DATA

(Dollars in thousands)

 

June 30, 2002 December 31, 2001
Nonaccrual Loans $2,558 $5,263
Foreclosed Assets $150 $192
Other Real Estate Owned $4,869 $5,817
Accruing Loans More Than 90 Days Past Due $1,029 $1,691
Total Nonperforming Assets 1 $8,607 $12,963
Nonperforming Assets to Total Assets 0.60% 0.91%
Allowance For Loan Losses to Nonperforming Loans 1 328.0% 159.9%
Year to Date Charge-offs $2,619 $4,674
Year to Date Recoveries $273 $505
  1. Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due. Nonperforming assets consist of nonperforming loans and repossessed assets. Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due. Nonperforming assets consist of nonperforming loans and repossessed assets.

DEPOSITS

(Dollars in thousands)

 

June 30, 2002 % of Total December 31, 2001 % of Total % of Change
Noninterest Bearing DDA $144,341 12.1% $154,580 12.5% (6.6)%
NOW Accounts $253,938 21.3% $243,685 19.7% 4.2%
Money Market Deposits $86,104 7.2% $80,188 6.5% 7.4%
Savings Deposits $226,128 18.9% $224,871 18.1% 0.6%
Certificates of Deposit $484,107 40.5% $534,070 43.2% (9.4)%
Total Deposits $1,194,618 100.0% $1,237,394 100.0% (3.5)%

IBERIABANK CORPORATION CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(Dollars in thousands)

 

INCOME STATEMENT For The Three Months Ended June 30, For The Six Months Ended June 30,
2002 2001 % Change 2002 2001 % Change
Interest Income $22,016 $25,824 (14.7)% $44,190 $51,586 (14.3)%
Interest Expense $7,078 $12,314 (42.5)% $14,801 $25,344 (41.6)%
Net Interest Income $14,938 $13,510 10.6% $29,389 $26,242 12.0%
Provision For Loan Losses $1,798 $896 100.7% $2,998 $1,610 86.2%
Net Interest Income After Provision For Loan Losses $13,140 $12,614 4.2% $26,391 $24,632 7.1%
Service Charges $2,629 $2,055 27.9% $4,588 $4,024 14.0%
ATM Fees $419 $373 12.3% $787 $723 8.9%
Gain on Sale of Loans $431 $623 (30.8)% $796 $890 (10.6)%
Other Noninterest Income $1.463 $693 111.1% $2,358 $1,355 74.0%
Total Noninterest Income $4,942 $3,744 32.0% $8,529 $6,992 22.0%
Salaries and Employee Benefits $5,986 $5,426 10.3% $11,654 $10,256 13.6%
Occupancy and Equipment $1,361 $1,401 (2.9)% $2,724 $2,777 (1.9)%
Goodwill and Acquisition Intangible Amortization $75 $792 (90.5)% $157 $1.590 (90.1)%
Other Noninterest Expense $3,773 $3,036 24.3% $6,981 5,751 21.4%
Total Noninterest Expense $11,195 $10,655 5.1% $21,516 $20,374 5.6%
Income Before Income Taxes $6,887 $5,703 20.8% $13,404 $11,250 19.1%
Income Taxes $2,246 $2,116 6.1% $4.376 $4,172 4.9%
Net Income $4,641 $3,587 29.4% $9,028 $7,078 27.6%
EPS, diluted $0.75 $0.58 29.3% $1.47 $1.15 28.0%
BALANCE SHEET June 30, 2002 December 31, 2001 % Change
Assets
Cash and Due From Banks
$34,077 $35,945 (5.2)%
Interest-Bearing Deposits in Banks $18,622 $15,736 18.3%
Investment Securities Available for Sale $233,862 $219,825 6.4%
Investment Securities Held to Maturity $90,023 $102,082 (11.8)%
Federal Home Loan Bank Stock $5,684 $5,600 1.5%
Mortgage Loans Held For Sale $2,419 $15,867 (84.8)%
Loans, Net of Unearned Income $972,628 $956,015 (1.7)%
Allowance for Loan Losses $(11,770) $(11,117) 5.9%
Accrued Interest Receivable $7,628 $7,729 (1.3)%
Premises and Equipment $18,978 $19,455 (2.5)%
Goodwill and Acquisition Intangibles $35,487 $35,644 (0.4)%
Mortgage Servicing Rights $136 $150 (9.3)%
Other Assets $28,985 $23,894 21.3%
Total Assets $1,436,759 $1,426,825 0.7%
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-Bearing Deposits $144,341 $154,580 (6.6)%
Interest-Bearing Deposits $1,050,277 $1,082,814 (3.0)%
Short-Term Borrowings $35,000 $4,250 723.5%
Securities Sold Under Agreements to Repurchase $10,442 $8,089 0.0%
Accrued Interest Payable $3,745 $4,129 (9.3)%
Long-Term Debt $42,615 $31,437 35.6%
Other Liabilities $10,537 $11,238 (6.2)%
Total Liabilities $1,293,212 $1,292,408 0.1%
Total Shareholders' Equity $147,547 $134,417 6.8%
Total Liabilities and Shareholders' Equity $1,436,759 $1,426,825 0.7%

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SOURCE: IBERIABANK Corporation

CONTACT: Daryl G. Byrd, President and CEO, +1-337-267-4458, ext. 4708,
or John R. Davis, Senior Executive Vice President, +1-919-676-7641, both of
IBERIABANK Corporation