IBERIABANK Corporation Reports Significant Progress In Operating Leverage
PR Newswire
LAFAYETTE, La.

LAFAYETTE, La., July 23, 2014 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 127-year-old IBERIABANK (www.iberiabank.com), reported operating results for the second quarter ended June 30, 2014.  For the quarter, the Company reported income available to common shareholders of $18.5 million, or $0.60 per fully diluted earnings per share.  In the second quarter of 2014, the Company incurred non-operating costs equal to $17.1 million on a pre-tax basis, or $0.36 per share on an after-tax basis.   Excluding non-operating items, EPS in the second quarter of 2014 was $0.96 per share on a non-GAAP operating basis, compared to $0.73 per share in the first quarter of 2014 (refer to press release supplemental table.)  

The Company completed the acquisition of Teche Holding Company ("Teche") on May 31, 2014, and First Private Holdings, Inc. ("First Private") on June 30, 2014. Financial statements reflect the impact of the acquisitions beginning on their respective acquisition dates and are subject to future refinements to purchase accounting adjustments. 

Teche was headquartered in New Iberia, Louisiana, and net added 11 bank offices in Baton Rouge and the Acadiana region in Louisiana.  The acquisition added $700 million in loans (after preliminary discounts) and $646 million in deposits.  The conversions of branch and operating systems have been successfully completed.

First Private was headquartered in Dallas, Texas, and added two bank offices in the Dallas market.  The acquisition added $299 million in loans (after preliminary discounts) and $312 million in deposits.  The conversions of branch and operating systems are anticipated to be completed in the third quarter of 2014. The Company expects approximately $4 million in conversion-related costs will be incurred during the third quarter of 2014.

Daryl G. Byrd, President and Chief Executive Officer, commented, "We welcome our new clients from Teche and First Private, and we anticipate achieving cost savings in excess of our initial projections.  We recently recruited a commercial team leader in the Dallas market to enhance our growth prospects in that market. The conversion and integration of First Private remain on track."

Byrd continued, "Our operating performance improved considerably during the second quarter. Our fee businesses experienced significant rebounds in seasonal activity, and our organic loan growth during the quarter and commercial loan pipeline remain very strong. The financial benefits of our expense savings initiatives became more evident in the second quarter as our operating leverage improved considerably. Based on our current forecasts, we project our full year operating EPS to be in the range of $3.65 to $3.70 per share, or a 16% to 18% improvement for the full year of 2014 compared to last year.  Overall, we are very pleased with our progress to date in improving the financial performance of our Company, though we remain focused on achieving further improvements."

Highlights for the Second Quarter of 2014 and June 30, 2014:

  • Total tax-equivalent operating revenues increased $17.8 million, or 13%, on a linked quarter basis, while operating expenses increased $4.6 million, or 4%, resulting in improved operating leverage.  The Company's tangible operating efficiency ratio improved from 73.6% in the first quarter of 2014 to 68.3% in the second quarter of 2014.  Based on current estimates, the Company forecasts a tangible efficiency ratio of approximately 67% for the remainder of 2014.
  • Seasonal influences favorably influenced operating non-interest income in the second quarter of 2014. Mortgage income increased $7.8 million, or 77%, title revenue increased $1.1 million, or 26%, service charge income increased $1.2 million, or 17%, and capital markets income improved $1.3 million, or 79%, on a linked quarter basis. 
  • Total loan growth (including acquired loans) was $1.3 billion, or 13%, between quarter-ends, while loan growth excluding all assets covered under FDIC loss share agreements and other non-covered acquired assets (collectively, "Acquired Assets") increased $382 million, or 4%, between quarter-ends (18% annualized rate).
  • Total deposits (including acquired deposits) increased $1.1 billion, or 10%, between quarter-ends, and excluding all acquisitions increased $156 million, or 1% (6% annualized basis).  Non-interest-bearing deposits excluding acquired deposits increased $77 million, or 3%, between quarter-ends (11% on an annualized basis).
  • The Company's legacy asset quality remained strong in the second quarter of 2014. At June 30, 2014, and excluding Acquired Assets, nonperforming assets ("NPAs"), equated to 0.53% of total assets, loans past due 30 days or more equated to 0.55% of total loans, and classified assets equated to 0.52% of total assets.
  • Net charge-offs totaled $857,000 in the second quarter of 2014, or an annualized 0.03% of average loans, and excluding Acquired Assets, net charge-offs totaled $759,000, or an annualized 0.04% of average loans.  Over the past 10 quarters, net charge-offs averaged 0.05% of average loans.  The Company recorded a $4.7 million loan loss provision, compared to $2.1 million in the first quarter of 2014.
  • The net interest margin decreased six basis points on a linked quarter basis to 3.48%, which was within the previously disclosed guidance range of 3.45% to 3.50%. Based on interest rate risk modeling and other factors, management reiterated its expectation of the net interest margin in 2014 to remain in the range of 3.45% to 3.50%.

 

Table A - Summary Financial Results

           
 

For the Quarter Ended:

Linked Quarter

Selected Financial Data

6/30/2013

3/31/2014

6/30/2014

% Change

Net Income ($ in thousands)

$   15,590

$              22,395

$     18,548

-17%

           

Per Share Data:

         

Fully Diluted Earnings 

$       0.53

$                  0.75

$         0.60

-20%

Operating Earnings (Non-GAAP)

0.69

0.73

0.96

32%

Pre-provision Operating Earnings  (Non-GAAP)

0.73

0.78

1.06

37%

Tangible Book Value 

36.30

37.59

37.41

0%

           
 

As of and for the Quarter Ended:

Linked Quarter

       

Basis Point

Key Ratios 

6/30/2013

3/31/2014

6/30/2014

Change

           

Return on Average Assets

0.49%

0.68%

0.53%

(15)

bps

Return on Average Common Equity

4.09%

5.83%

4.56%

(126)

bps

Return on Average Tangible Common Equity (Non-GAAP)

5.96%

8.36%

6.62%

(174)

bps

Net Interest Margin (TE) (1)

3.39%

3.54%

3.48%

(6)

bps

Tangible Operating Efficiency Ratio  (TE) (Non-GAAP)  (1) 

76.8%

73.6%

68.3%

(532)

bps

Tangible Common Equity Ratio (Non-GAAP)

8.69%

8.61%

8.46%

(15)

bps

Tier 1 Leverage Ratio

9.59%

9.61%

10.03%

42

bps

Tier 1 Common Ratio (Non-GAAP)

11.08%

10.44%

10.33%

(11)

bps

Total Risk Based Capital Ratio

13.46%

12.69%

12.43%

(26)

bps

Net Charge-Offs to Average Loans (2)

0.06%

0.05%

0.04%

(1)

bps

Non-performing Assets to Total Assets (2)

0.69%

0.49%

0.53%

4

bps

           
 

For the Quarter Ended:

   
 

GAAP

 

Non-GAAP

   

Adjusted Selected Key Ratios

6/30/2014

Adjustments(3)

6/30/2014

   
           

Return on Average Assets

0.53%

0.32%

0.85%

   

Return on Average Common Equity

4.56%

2.75%

7.31%

   

Return on Average Tangible Common Equity (Non-GAAP)

6.62%

3.82%

10.44%

   

Tangible Efficiency Ratio (TE)(1)(Non-GAAP)

79.0%

(10.7%)

68.3%

   
           

(1)Fully taxable equivalent basis.

(2)Excluding FDIC Covered Assets and Acquired Assets.

(3)Adjusted results exclude the income statement impact of the non-operating items included in Table 11, net of tax where applicable, without adjustment to any balance sheet accounts.

   

Refer to press release supplemental table for a reconciliation of GAAP and non-GAAP measures.

 

 

Operating Results

On a linked quarter basis, average earning assets increased $605 million, or 5%, as average loans increased $452 million, or 5%, average indemnification asset ("IA") declined $23 million, or 15%, average investment securities decreased $4 million, or less than 1%, and other earning assets increased $136 million, or 79%. Also on a linked quarter basis, the average earning asset yield decreased seven basis points, and the cost of interest-bearing liabilities decreased one basis point.  As a result, the net interest spread decreased five basis points, and the net interest margin decreased six basis points.  Tax-equivalent net interest income increased $4.5 million, or 4%, as average earning assets increased while the net interest margin declined.

Table B - Quarterly Average Yields/Cost (1)

           
 

For Quarter Ended:

Linked Quarter

       

Basis Point

 

6/30/2013

3/31/2014

6/30/2014

Change

Investment Securities

1.92%

2.22%

2.24%

2

bps

Covered Loans, net of loss share receivable

3.98%

3.18%

3.16%

(2)

bps

Non-covered Loans

4.40%

4.38%

4.30%

(8)

bps

Loans & Loss Share Receivable

4.35%

4.27%

4.22%

(5)

bps

Mortgage Loans Held For Sale

3.17%

3.69%

4.21%

52

bps

Other Earning Assets

0.87%

1.27%

0.82%

(45)

bps

  Total Earning Assets

3.80%

3.87%

3.80%

(7)

bps

           

Interest-bearing Deposits

0.42%

0.36%

0.35%

(1)

bps

Short-Term Borrowings

0.16%

0.17%

0.16%

(1)

bps

Long-Term Borrowings

3.39%

3.42%

3.34%

(8)

bps

  Total Interest-bearing Liabilities

0.51%

0.44%

0.43%

(1)

bps

Net Interest Spread

3.29%

3.43%

3.38%

(5)

bps

Net Interest Margin

3.39%

3.54%

3.48%

(6)

bps

           

(1) Earning asset yields are shown on a fully taxable-equivalent basis.

   
           

 

The non-covered loan yield decreased eight basis points, while the net covered loan yield (net of IA amortization) decreased two basis points.  The average covered loan volume declined $90 million, or 11%.  As a result of the reduction in yield and volume, the associated net covered income declined $0.7 million on a linked quarter basis, which was slightly better than management's expectations. 

For the third quarter of 2014, the Company projects the prospective yield on the covered loan portfolio net of the IA amortization to approximate 2.85%, compared to 3.16% in the second quarter.  The average balance of the net covered loan portfolio is projected to decline approximately $76 million, based on current cash flow assumptions and estimates.  Net income on the covered loan portfolio is projected to decline approximately $1.2 million between the second and third quarters of 2014.  The Company projects the net covered income to equate to less than 6% of total net interest income in 2014, compared to 11% in 2013.

On a period-end basis, the IA declined $21 million, or 15%, from $141 million at March 31, 2014, to $121 million at June 30, 2014.  The portion of the IA collectible from the FDIC decreased $18 million, or 44%, while the collectible portion from other real estate owned ("OREO") and customers declined $3 million, or 3%.

Aggregate non-interest income increased $12.3 million, or 34%, on a linked quarter basis.  Excluding non-operating items, operating non-interest income increased $14.1 million, or 42%.  The primary changes in operating non-interest income on a linked quarter basis were:

  • Increased mortgage income of $7.8 million, or 77%;
  • Increased service charge income of $1.2 million, or 17%;
  • Increased title revenue of $1.1 million, or 26%;
  • Increased ATM/debit card fee income of $0.5 million, or 19%; and
  • Increased capital markets revenue of $1.3 million

The $7.8 million increase in mortgage income was the result of higher production and sales volumes, and improved margins. The improvement in mortgage income was partially offset by a $1.3 million increase in mortgage commission and production incentives expense (included in non-interest expense).

In the second quarter of 2014, the Company originated $436 million in residential mortgage loans, up $123 million, or 39%, on a linked quarter basis.  Client loan refinancing opportunities accounted for approximately 13% of mortgage loan applications in the second quarter of 2014, compared to 16% in the first quarter of 2014, and approximately 15% between June 30, 2014, and July 21, 2014.  The Company sold $395 million in mortgage loans during the second quarter of 2014, up $84 million, or 27%, on a linked quarter basis.  The gain on sale of mortgage loans increased $6.0 million on a linked quarter basis, while the market value adjustment on loans held in the pipeline and warehouse increased $1.7 million on a linked quarter basis during the second quarter of 2014.  The mortgage origination locked pipeline increased 14% during the second quarter of 2014, from $157 million at March 31, 2014, to $179 million at June 30, 2014.  At July 21, 2014, the locked pipeline was $184 million, or a 3% increase compared to June 30, 2014.  The mortgage business primarily focuses on retail mortgage loans originated by the Company.

Service charge income increased $1.2 million, or 17%, on a linked quarter basis.  This revenue increase was significantly influenced by the Teche acquisition, more calendar days, and seasonality differences between the quarters.

Assets under management at IBERIA Wealth Advisors ("IWA") were $1.2 billion at June 30, 2014, up 4% compared to March 31, 2014.  Revenues for IWA increased 7% on a linked quarter basis, and were up 9% compared to the second quarter of 2013.  IBERIA Financial Services revenues increased 5% on a linked quarter basis, and up 9% compared to the second quarter of 2013.  IBERIA Capital Partners experienced a $1.3 million, or 79%, improvement in revenues on a linked quarter basis, due to higher investment banking and institutional brokerage activity. 

On a linked quarter basis, the Company experienced an increased level of interest rate derivative activity executed on behalf of clients, resulting in a modest increase in customer derivative commission income in the second quarter of 2014.

Non-interest expense increased $19.9 million, or 19%, on a linked quarter basis, while operating expense increased $4.6 million, or 4%.  Operating expense changes included the following on a linked-quarter basis:

  • Increased mortgage commissions of $1.3 million, or 57%;
  • Increased operating expenses of $1.4 million associated with the cost of Teche's operations for one month in the second quarter; and
  • Increased operating expenses of $1.9 million in all other expenses, or 2%.

Through the second quarter of 2014, the Company achieved approximately 65% of the targeted run-rate expense savings of $10.7 million. The Company continues to review its operating metrics for future opportunities to improve revenues and reduce expenses, and remains comfortable with the targeted run-rate savings during 2014.

Loans

Total loans increased $1.3 billion, or 13%, between March 31, 2014 and June 30, 2014.  The loan portfolio associated with FDIC-assisted acquisitions at June 30, 2014, decreased $79 million, or 12%, compared to March 31, 2014.  Excluding Covered and Acquired Assets, total loans increased $382 million, or 4% (18% annualized rate), during the second quarter. Legacy commercial loans increased $246 million, or 4% (which included $51 million in business banking loan growth, up 8%, or 30% annualized rate), legacy consumer loans increased $105 million, or 6%, and legacy mortgage loans increased $31 million, or 7%, during the quarter.  Loan origination and renewal growth during the second quarter of 2014 were strongest in the Houston, New Orleans, Birmingham, and Baton Rouge markets. Funded loan origination and renewal mix in the second quarter of 2014 was 44% fixed rate and 56% floating rate, and total loans outstanding (excluding nonaccruals) were 51% fixed and 49% floating.  Loans and commitments originated and/or renewed during the second quarter of 2014 totaled $1.0 billion (up 21% on a linked quarter basis).  Energy-related loans outstanding totaled $819 million at June 30, 2014, down $36 million, or 4%, compared to March 31, 2014, and equated to approximately 8% of total loans. The Company had no student loans outstanding at June 30, 2014.

 

Table C - Period-End Loans ($ in Millions)

                         
                         
 

Period-End Balances ($ Millions)

       
                         
     

6/30/14

 

% Change (Excluding Acquired) (1)

 

Mix

 

6/30/13

3/31/14

Excluding Acquired (1)

Acquired (1)

Total

 

Year/Year

Qtr/Qtr

Annualized

 

3/31/14

6/30/14

                         

Commercial

$  5,388

$  6,142

$                        6,387

$           -

$  6,387

 

19%

4%

16%

 

64%

59%

Consumer

1,711

1,883

1,988

-

1,988

 

16%

6%

22%

 

20%

18%

Mortgage

326

429

460

-

460

 

41%

7%

29%

 

4%

4%

Legacy Loans

$  7,425

$  8,453

$                        8,835

$           -

$  8,835

 

19%

5%

18%

 

88%

81%

Acquired Loans

560

524

495

984

1,478

 

-12%

-6%

-22%

 

5%

14%

Covered Loans

918

664

585

-

585

 

-36%

-12%

-47%

 

7%

5%

Total Loans

$  8,903

$  9,641

$                        9,915

$         984

$10,899

 

11%

3%

11%

 

100%

100%

                         

(1)Represents loans acquired during the period

 

Deposits

Total deposits increased $1.1 billion, or 10%, from March 31, 2014 to June 30, 2014.  Excluding acquired deposits, total deposits increased $156 million, or 1%. Non-interest-bearing deposits increased $318 million, or 12% ($77 million, or 3%, excluding acquired deposits), and equated to 25% of total deposits at June 30, 2014.  NOW accounts increased $40 million, or 2%, while money market and savings account volume increased $338 million, or 8%, between March 31, 2014 and June 30, 2014.  Time deposits increased $386 million, or 24% between quarter-ends.  Excluding acquisitions, period-end deposit growth during the second quarter of 2014 was strongest in the Little Rock, Lafayette, New Orleans, and Montgomery markets.

Table D - Period-End Deposits ($ in Millions)

 
                         
 

Period-End Balances ($ Millions)

       
                         
     

6/30/14

 

% Change (Excluding Acquired) (1)

 

Mix

 

6/30/13

3/31/14

Excluding Acquired (1)

Acquired(1)

Total

 

Year/Year

Qtr/Qtr

Annualized

 

3/31/14

6/30/14

                         

Non-interest

$  2,055

$  2,729

$                        2,806

$         241

$  3,047

 

37%

3%

11%

 

25%

25%

NOW Accounts

2,485

2,194

2,132

102

2,234

 

-14%

-3%

-11%

 

20%

19%

Savings/MMkt

4,134

4,347

4,324

361

4,685

 

5%

-1%

-2%

 

40%

39%

Time Deposits

1,968

1,629

1,793

222

2,015

 

-9%

10%

40%

 

15%

17%

Total Deposits

$10,642

$10,899

$                      11,055

$         926

$11,981

 

4%

1%

6%

 

100%

100%

                         

(1)Represents deposits acquired during the period

 

On an average balance and linked quarter basis, non-interest-bearing deposits increased $125 million, or 5%, and interest-bearing deposits increased $130 million, or 2%.  The rate on average interest-bearing deposits in the second quarter of 2014 was 0.35%, a decrease of one basis point on a linked quarter basis. 

Other Assets And Funding

Excess liquidity averaged $238 million in the second quarter of 2014, up $123 million, or 107%, on a linked quarter basis.  The investment portfolio increased $5 million, or less than 1%, to $2.1 billion on average in the second quarter of 2014.  On a period-end basis, the investment portfolio equated to $2.1 billion, or 14% of total assets at June 30, 2014, down slightly compared to 15% at March 31, 2014.  The investment portfolio had an effective duration of 3.5 years at June 30, 2014, a slight decrease compared to March 31, 2014.  The investment portfolio improved from a $10 million unrealized loss at March 31, 2014, to an $8 million unrealized gain at June 30, 2014.  The average yield on investment securities increased two basis points on a linked quarter basis to 2.24% in the second quarter of 2014.  The Company holds in its investment portfolio primarily government agency securities.  Municipal securities comprised only 9% of total investments at June 30, 2014.  The Company holds for investment no sovereign debt, corporate debt or equity securities, trust preferred securities, or derivative exposure to foreign counterparties.

On a linked quarter basis, average short-term debt increased $323 million, or 55%, and the cost of short-term debt decreased one basis point.  Average long-term debt increased $24 million, or 9%, and the cost of debt decreased eight basis points to 3.34%. The cost of average interest-bearing liabilities was 0.43% in the second quarter of 2014, a decrease of one basis point on a linked quarter basis.

Asset Quality

To provide additional consistency and transparency for financial reporting of Acquired Assets, the Company divides Acquired Assets into five distinct categories:

  1. Legacy assets that were originated and not acquired;
  2. Acquired Assets that are scheduled to lose FDIC loss share coverage over the next 12 months;
  3. Acquired Assets that will continue to be covered under FDIC loss share coverage beyond the next 12 months;
  4. Acquired Assets not covered under FDIC loss share agreements using SOP accounting treatment (in accordance with ASC Topic 310-30); and
  5. Acquired Assets not covered under FDIC loss share agreements not using SOP accounting treatment.

 

Between March 31, 2014 and June 30, 2014, legacy NPAs increased $10 million, or 16%, due to $10 million in bank-owned properties that transferred to OREO.  At June 30, 2014, bank-owned properties in OREO totaled $19 million, or 27% of total NPAs. Legacy NPAs equated to 0.53% of total assets at June 30, 2014, and 0.39% of total assets excluding bank-owned properties. Loans past due 30 days or more (including non-accruing loans) increased $4 million, or 8%, and represented 0.55% of total loans at June 30, 2014, compared to 0.53% at March 31, 2014.

Table E – Legacy Asset Quality Summary

 

Excludes the impact of all Acquired Assets (FDIC-assisted acquisitions and other acquisitions, impaired and not impaired)

                   
   

For Quarter Ended:

 

% or Basis Point Change

     ($ thousands)

 

6/30/2013

3/31/2014

6/30/2014

 

Year/Year

Qtr/Qtr

                   

Non-performing Assets

 

$ 76,033

$ 59,456

$  69,001

 

-9%

 

16%

 

Note: NPAs excluding Former Bank Properties

 

67,599

50,453

50,415

 

-25%

 

0%

 
                   

Past Due Loans

 

65,316

44,436

48,189

 

-26%

 

8%

 

Classified Assets

 

97,818

59,017

67,796

 

-31%

 

15%

 
                   

Non-performing Assets/Assets

 

0.69%

0.49%

0.53%

 

(16)

 bps 

4

 bps 

NPAs/(Loans + OREO)

 

1.02%

0.70%

0.78%

 

(24)

 bps 

8

 bps 

Classified Assets/Total Assets

 

0.85%

0.49%

0.52%

 

(33)

 bps 

3

 bps 

(Past Dues & Non-accruals)/Loans

 

0.88%

0.53%

0.55%

 

(33)

 bps 

2

 bps 

                   

(Reversal of) Provision For Loan Losses

 

$   3,416

$   1,995

$  3,004

 

-12%

 

51%

 

Net Charge-Offs/(Recoveries)

 

1,028

1,014

759

 

-26%

 

-25%

 

Provision Less Net Charge-Offs

 

$   2,388

$     981

$  2,245

 

-6%

 

129%

 
                   

Net Charge-Offs/Average Loans

 

0.06%

0.05%

0.04%

 

(2)

 bps 

(1)

 bps 

Allowance For Loan Losses/Loans

 

0.83%

0.81%

0.80%

 

(3)

 bps 

(1)

 bps 

Allowance for Credit Losses to Total Loans

 

0.97%

0.94%

0.93%

 

(4)

 bps 

(1)

 bps 

                   

 

Table F provides a breakdown of Acquired Assets under the other four categories pertaining to Acquired Assets and the asset quality performance measures associated with Acquired Assets in each category. 

Table F – Acquired Assets By Portfolio Type (1)

 

All FDIC-assisted acquisitions and other acquired loans (impaired and not impaired)

           
 

Acquired FDIC Covered Assets

Acquired Non-Covered Assets

Total Acquired Assets

 
 

Non SFR (Losing Loss Share Coverage within next 12 months) (2)

SFR (Losing Loss Share Coverage 10 years from Acquisition)

SOP Assets (3)

Non-SOP Assets(3)

     ($ thousands)

           

Loans, net

$                      315,075

$                                   270,364

$     455,915

$           1,022,441

$                2,063,795

Other Real Estate Owned

33,362

7,180

9,143

-

49,685

Allowance for Loan Losses

(42,582)

(17,413)

(2,422)

(454)

(62,871)

           

Non-accrual loans

$                        70,668

$                                     58,753

$       44,237

$                    828

$                   174,486

Foreclosed assets

971

-

102

-

1,073

Other real estate owned

28,762

10,809

9,041

-

48,612

Accruing Loans More Than 90 Days Past Due 

183

892

-

-

1,075

Non-performing Assets

100,584

70,454

53,380

828

225,246

           

Total Past Due Loans

$                        73,994

$                                     62,344

$       50,565

$                 6,551

$                   193,454

           

Non-performing Assets to Total Loans and OREO

28.87%

25.38%

11.48%

0.08%

10.66%

Past Due and Non-accrual Loans to Loans

23.48%

23.06%

11.09%

0.64%

9.37%

           

Provision For Loan Losses

$                                 -

$                                       1,516

$            (12)

$                    240

$                      1,744

Net Charge-Offs/(Recoveries)

113

0

52

(67)

98

Provision Less Net Charge-Offs

$                           (113)

$                                       1,516

$            (64)

$                    307

$                      1,646

           

Net Charge-Offs to Average Loans

0.15%

0.00%

0.05%

-0.03%

0.03%

Allowance for Loan Losses to Loans

13.51%

6.44%

0.53%

0.04%

3.05%

Allowance for Credit Losses to Total Loans

13.51%

6.44%

0.53%

0.04%

3.05%

           

Indemnification asset collectible from the FDIC and OREO 

$                         9,744

$                                     15,495

$              -

$                         -

$                     25,240

           

(1)Amounts in this table are presented gross of discounts unless otherwise noted. 

(2)$34.2 million of loans are maintaining loss share coverage beyond the next 12 months. $3.1 million of indemnification asset is collectible from the FDIC and OREO transactions beyond the next twelve months.

(3)The classification of assets acquired from Teche and First Private as SOP or Non-SOP assets is preliminary and subject to change. At June, 30, 2014, Teche loans of $57.9 million and $631.4 million are included in SOP and Non-SOP assets, respectively. First Private loans of $294.4 million have been included as Non-SOP loans at June 30, 2014.

 

Capital Position

The Company maintains favorable capital strength.  At June 30, 2014, the Company reported a tangible common equity ratio of 8.46%, down 15 basis points compared to March 31, 2014.  At June 30, 2014, the Company's preliminary Tier 1 leverage ratio was 10.03%, up 42 basis points compared to March 31, 2014.  At June 30, 2014, pro forma Tier 1 leverage capital as a percentage of total assets adjusted for leverage capital purposes on a period-end basis would have equated to 9.16%.  The Company's preliminary total risk-based capital ratio at June 30, 2014 was 12.43%, down 26 basis points compared to March 31, 2014.  The decline in the risk-based capital ratio was due in part to the recently completed acquisitions and FDIC-loan pay downs that carried a 20% risk weighting, into non-covered loans that carried a higher risk weighting.

On October 26, 2011, the Company announced a share repurchase program totaling 900,000 shares of common stock. No shares were repurchased under this program during the second quarter of 2014.  A total of 46,692 shares remain under the currently authorized share repurchase program.

At June 30, 2014, book value per share was $53.86, up $1.82 per share compared to March 31, 2014. Tangible book value per share was $37.41, down $0.18 per share compared to March 31, 2014.  Based on the closing stock price of the Company's common stock of $65.78 per share on July 23, 2014, this price equated to 1.22 times June 30, 2014 book value and 1.76 times June 30, 2014 tangible book value per share.

On June 19, 2014, the Company declared a quarterly cash dividend of $0.34 per share. This dividend level equated to an annualized dividend rate of $1.36 per share and an indicated dividend yield of 2.07%.

IBERIABANK Corporation

The Company is a financial holding company with 278 combined offices, including 186 bank branch offices and three loan production offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, and Florida, 22 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 58 locations in 10 states.  The Company has eight locations with representatives of IBERIA Wealth Advisors in four states, and one IBERIA Capital Partners, L.L.C. office in New Orleans.

The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC."  The Company's market capitalization was approximately $2.2 billion, based on the NASDAQ Global Select Market closing stock price on July 23, 2014.

The following 12 investment firms currently provide equity research coverage on the Company:

  • Bank of America Merrill Lynch
  • FIG Partners, LLC
  • Jefferies & Co., Inc.
  • Keefe, Bruyette & Woods, Inc.
  • Merion Capital Group
  • Raymond James & Associates, Inc.
  • Robert W. Baird & Company
  • Sandler O'Neill + Partners, L.P.
  • Stephens, Inc.
  • Sterne, Agee & Leach
  • SunTrust Robinson-Humphrey
  • Wunderlich Securities

Conference Call

In association with this earnings release, the Company will host a live conference call to discuss the financial results for the quarter just completed. The telephone conference call will be held on Thursday, July 24, 2014, beginning at 8:30 a.m. Central Time by dialing 1-800-230-1074. The confirmation code for the call is 329854.  A replay of the call will be available until midnight Central Time on July 31, 2014 by dialing 1-800-475-6701. The confirmation code for the replay is 329854.  The Company has prepared a PowerPoint presentation that supplements information contained in this press release.  The PowerPoint presentation may be accessed on the Company's web site, www.iberiabank.com, under "Investor Relations" and then "Presentations."

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with GAAP. The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that in management's opinion can distort period-to-period comparisons of the Company's performance. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.  Reconciliations of GAAP to non-GAAP disclosures are included as tables at the end of this release.  Refer to press release supplemental table for this reconciliation.

 

Assumptions Regarding Projected Earnings in Future Periods

The Company's net interest margin and operating EPS guidance for full year 2014 were based on the following significant assumptions:

  • Recent forward interest rate curve projections;
  • No significant change in credit quality;
  • No significant changes to the preliminary purchase accounting marks assumed on the Company's most recently completed acquisitions;
  • No significant cash flow or credit quality changes on Acquired Assets;
  • Achieving the $10.7 million in recently disclosed earnings enhancement initiatives; and
  • Mortgage and title insurance projections continue to reflect the current environment and expectations.

 

 

Caution About Forward-Looking Statements

To the extent that statements in this press release and the accompanying PowerPoint presentation relate to future plans, objectives, financial results or 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, which are based on management's current information, estimates and assumptions and the current economic environment, are generally identified by the use of the words "plan", "believe", "expect", "intend", "anticipate", "estimate", "project" or similar expressions. The Company's actual strategies, results and financial condition in future periods may differ materially from those currently expected due to various risks and uncertainties. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements.  Consequently, no forward-looking statement can be guaranteed.

Actual results or financial condition could differ materially because of factors such as the level of market volatility, our ability to execute our growth strategy, including the availability of future  bank acquisition opportunities, unanticipated losses related to the integration of, and refinements to purchase accounting adjustments for, acquired businesses and assets and assumed liabilities in these transactions, adjustments of fair values of acquired assets and assumed liabilities and of deferred taxes in acquisitions, actual results deviating from the Company's current estimates and assumptions of timing and amounts of cash flows, credit risk of our customers, effects of the on-going correction in residential real estate prices and reduced levels of home sales, our ability to satisfy new capital and liquidity standards such as those imposed by the Dodd-Frank Act and those adopted by the Basel Committee and federal banking regulators,  sufficiency of our allowance for loan losses, changes in interest rates, access to funding sources, reliance on the services of executive management, competition for loans, deposits and investment dollars, reputational risk and social factors, changes in government regulations and legislation, increases in FDIC insurance assessments, geographic concentration of our markets and economic conditions in these markets, rapid changes in the financial services industry, dependence on our operational, technological, and organizational systems or infrastructure and those of third-party providers of those services, hurricanes and other adverse weather events, the modest trading volume of our common stock, and valuation of intangible assets. These and other factors that may cause actual results or financial condition to differ materially from these forward-looking statements are discussed in the Company's Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, and other filings with the Securities and Exchange Commission (the "SEC"), available at the SEC's website, http://www.sec.gov, and at the Company's website, http://www.iberiabank.com, under the heading "Investor Information." All information in this release and the accompanying PowerPoint presentation is as of the date of this release. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or financial condition or to changes in the Company's expectations. Certain tabular presentations may not reconcile because of rounding.

 

 

Table 1 - IBERIABANK CORPORATION

 

FINANCIAL HIGHLIGHTS

                       
                       
     

 For The Quarter Ended 

 

 For The Quarter Ended 

     

 June 30, 

 

 March 31, 

     

2014

 

2013

 

% Change

 

2014

 

% Change

                       

Income Data (in thousands):

                   
 

Net Interest Income

 

$              108,979

 

$                  96,482

 

13%

 

$                 104,408

 

4%

 

Net Interest Income  (TE)   (1)

 

111,170

 

98,878

 

12%

 

106,637

 

4%

 

Net Income 

 

18,548

 

15,590

 

19%

 

22,395

 

(17%)

 

Earnings Available to Common Shareholders- Basic

 

18,548

 

15,590

 

19%

 

22,395

 

(17%)

 

Earnings Available to Common Shareholders- Diluted

 

18,250

 

15,297

 

19%

 

21,990

 

(17%)

                       

Per Share Data:

                   
 

Earnings Available to Common Shareholders - Basic

 

$                     0.60

 

$                       0.53

 

14%

 

$                        0.75

 

(20%)

 

Earnings Available to Common Shareholders - Diluted

 

0.60

 

0.53

 

14%

 

0.75

 

(20%)

 

Operating Earnings (Non-GAAP) 

 

0.96

 

0.69

 

40%

 

0.73

 

32%

 

Book Value 

 

53.86

 

50.65

 

6%

 

52.04

 

3%

 

Tangible Book Value (2)

 

37.41

 

36.30

 

3%

 

37.59

 

(0%)

 

Cash Dividends

 

0.34

 

0.34

 

-

 

0.34

 

-

 

Closing Stock Price

 

69.19

 

53.61

 

29%

 

70.15

 

(1%)

                       

Key Ratios: (3)

                   
 

Operating Ratios:

                 
 

Return on Average Assets

 

0.53%

 

0.49%

     

0.68%

   
 

Return on Average Common Equity

 

4.56%

 

4.09%

     

5.83%

   
 

Return on Average Tangible Common Equity (2)

 

6.62%

 

5.96%

     

8.36%

   
 

Net Interest Margin  (TE)  (1)

 

3.48%

 

3.39%

     

3.54%

   
 

Efficiency Ratio

 

81.2%

 

84.4%

     

76.7%

   
 

Tangible Operating Efficiency Ratio  (TE) (Non-GAAP)  (1) (2)

 

68.3%

 

76.8%

     

73.6%

   
 

Full-time Equivalent Employees

 

2,760

 

2,611

     

2,576

   
                       
 

Capital Ratios:

                 
 

Tangible Common Equity Ratio (Non-GAAP)

 

8.46%

 

8.69%

     

8.61%

   
 

Tangible Common Equity to Risk-Weighted Assets

 

10.37%

 

11.04%

     

10.38%

   
 

Tier 1 Leverage Ratio

 

10.03%

 

9.59%

     

9.61%

   
 

Tier 1 Capital Ratio

 

11.23%

 

12.20%

     

11.44%

   
 

Total Risk Based Capital Ratio

 

12.43%

 

13.46%

     

12.69%

   
 

Common Stock Dividend Payout Ratio

 

61.2%

 

64.8%

     

45.6%

   
                       
 

Asset Quality Ratios:

                 
 

Excluding FDIC Covered Assets and Acquired Assets

                 
 

Non-performing Assets to Total Assets (4)

 

0.53%

 

0.69%

     

0.49%

   
 

Allowance for Loan Losses to Loans

 

0.80%

 

0.83%

     

0.81%

   
 

Net Charge-offs to Average Loans 

 

0.04%

 

0.06%

     

0.05%

   
 

Non-performing Assets to Total Loans and OREO (4)

 

0.78%

 

1.02%

     

0.70%

   
                       
     

 For The Quarter Ended 

 

 For The Quarter Ended 

     

 June 30, 

 

 March 31, 

 

 December 31, 

 

 September 30, 

     

2014

 

2014

 

2014

 

2013

 

2013

Balance Sheet Summary (in thousands):

 

End of Period

 

Average

 

Average

 

Average

 

Average

 

Excess Liquidity (5)

 

$              381,955

 

$                237,712

 

$                    114,621

 

$                 204,970

 

$                   213,092

 

Total Investment Securities

 

2,141,198

 

2,120,778

 

2,116,166

 

2,131,804

 

2,096,974

 

Loans, Net of Unearned Income

 

10,898,527

 

10,003,767

 

9,551,351

 

9,172,490

 

8,975,347

 

Loans, Net of Unearned Income, 

                   
 

   Excluding Covered Assets and Acquired Assets

 

8,834,732

 

8,645,109

 

8,324,676

 

7,936,271

 

7,616,272

 

Total Assets

 

15,325,042

 

14,041,562

 

13,362,918

 

13,115,171

 

12,944,435

 

Total Deposits

 

11,981,183

 

11,071,698

 

10,816,122

 

10,835,263

 

10,728,256

 

Total Shareholders' Equity

 

1,799,306

 

1,632,049

 

1,557,006

 

1,535,043

 

1,514,155

                       

(1)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%.

(2)

Tangible calculations eliminate the effect of goodwill and acquisition related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable.

(3)

All ratios are calculated on an annualized basis for the period indicated.

(4)

Nonperforming assets consist of nonaccruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets.

(5)

Excess Liquidity includes interest-bearing deposits in banks and fed funds sold, but excludes liquidity sources and uses from off-balance sheet arrangements.

N/M - Comparison of the information presented is not meaningful given the periods presented.

 

 

Table 2 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

                 

BALANCE SHEET (End of Period)

June 30,

 

March 31,

 
 

2014

 

2013

 

% Change

 

2014

 

% Change

 

ASSETS

                   

Cash and Due From Banks

$         286,615

 

$            227,114

 

26.2%

 

$            285,271

 

0.5%

 

Interest-bearing Deposits in Banks

381,955

 

120,451

 

217.1%

 

145,037

 

163.4%

 

   Total Cash and Equivalents

668,570

 

347,565

 

92.4%

 

430,308

 

55.4%

 

Investment Securities Available for Sale

2,008,953

 

1,912,058

 

5.1%

 

1,933,314

 

3.9%

 

Investment Securities Held to Maturity

132,245

 

163,240

 

(19.0%)

 

150,660

 

(12.2%)

 

   Total Investment Securities

2,141,198

 

2,075,298

 

3.2%

 

2,083,974

 

2.7%

 

Mortgage Loans Held for Sale

178,380

 

162,031

 

10.1%

 

131,478

 

35.7%

 

Loans, Net of Unearned Income

10,898,527

 

8,903,037

 

22.4%

 

9,641,294

 

13.0%

 

Allowance for Loan Losses

(133,519)

 

(162,903)

 

(18.0%)

 

(134,602)

 

(0.8%)

 

   Loans, Net

10,765,008

 

8,740,134

 

23.2%

 

9,506,692

 

13.2%

 

Loss Share Receivable

120,532

 

241,040

 

(50.0%)

 

141,185

 

(14.6%)

 

Premises and Equipment

307,090

 

296,988

 

3.4%

 

287,387

 

6.9%

 

Goodwill and Other Intangibles

550,874

 

427,581

 

28.8%

 

435,636

 

26.5%

 

Other Assets

593,390

 

532,866

 

11.4%

 

534,264

 

11.1%

 

   Total Assets

$   15,325,042

 

$       12,823,503

 

19.5%

 

$      13,550,924

 

13.1%

 
                     

LIABILITIES AND SHAREHOLDERS' EQUITY

                   

Noninterest-bearing Deposits

$     3,047,385

 

$         2,055,333

 

48.3%

 

$         2,728,736

 

11.7%

 

NOW Accounts

2,233,993

 

2,484,824

 

(10.1%)

 

2,194,361

 

1.8%

 

Savings and Money Market Accounts

4,685,367

 

4,133,770

 

13.3%

 

4,346,662

 

7.8%

 

Certificates of Deposit

2,014,438

 

1,967,791

 

2.4%

 

1,629,104

 

23.7%

 

   Total Deposits

11,981,183

 

10,641,718

 

12.6%

 

10,898,863

 

9.9%

 

Short-term Borrowings

738,000

 

-

 

100.0%

 

400,000

 

84.5%

 

Securities Sold Under Agreements to Repurchase

296,741

 

289,377

 

2.5%

 

283,086

 

4.8%

 

Trust Preferred Securities

111,862

 

111,862

 

-

 

111,862

 

-

 

Other Long-term Debt

253,885

 

171,623

 

47.9%

 

168,002

 

51.1%

 

Other Liabilities

144,065

 

104,162

 

38.3%

 

125,922

 

14.4%

 

   Total Liabilities

13,525,736

 

11,318,742

 

19.5%

 

11,987,735

 

12.8%

 

Total Shareholders' Equity

1,799,306

 

1,504,761

 

19.6%

 

1,563,189

 

15.1%

 

   Total Liabilities and Shareholders' Equity

$   15,325,042

 

$       12,823,503

 

19.5%

 

$      13,550,924

 

13.1%

 
                     
                     

BALANCE SHEET (Average)

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 
 

2014

 

2014

 

2013

 

2013

 

2013

 

ASSETS

                   

Cash and Due From Banks

$         237,631

 

$            234,924

 

$             225,527

 

$            219,113

 

$                   219,344

 

Interest-bearing Deposits in Banks

237,712

 

114,621

 

204,970

 

213,092

 

294,544

 

Investment Securities

2,120,778

 

2,116,166

 

2,131,804

 

2,096,974

 

2,096,166

 

Mortgage Loans Held for Sale

140,122

 

96,019

 

112,499

 

119,343

 

170,620

 

Loans, Net of Unearned Income

10,003,767

 

9,551,351

 

9,172,490

 

8,975,347

 

8,748,476

 

Allowance for Loan Losses

(132,049)

 

(139,726)

 

(148,030)

 

(160,994)

 

(183,783)

 

Loss Share Receivable

131,375

 

154,634

 

188,932

 

228,047

 

268,700

 

Other Assets

1,302,226

 

1,234,930

 

1,226,979

 

1,253,513

 

1,267,484

 

   Total Assets

$   14,041,562

 

$       13,362,918

 

$        13,115,171

 

$      12,944,435

 

$              12,881,551

 
                     

LIABILITIES AND SHAREHOLDERS' EQUITY

                   

Non-interest-bearing Deposits

$     2,748,468

 

$         2,623,075

 

$          2,572,599

 

$         2,338,772

 

$               2,010,263

 

NOW Accounts

2,229,264

 

2,230,745

 

2,145,036

 

2,257,050

 

2,488,721

 

Savings and Money Market Accounts

4,372,855

 

4,296,360

 

4,329,985

 

4,213,765

 

4,113,671

 

Certificates of Deposit

1,721,111

 

1,665,943

 

1,787,643

 

1,918,669

 

2,025,823

 

   Total Deposits

11,071,698

 

10,816,122

 

10,835,263

 

10,728,256

 

10,638,478

 

Short-term Borrowings

632,778

 

285,383

 

49,946

 

1,630

 

77

 

Securities Sold Under Agreements to Repurchase

274,681

 

299,106

 

285,745

 

288,029

 

294,712

 

Trust Preferred Securities

111,862

 

111,862

 

111,862

 

111,862

 

111,862

 

Long-term Debt

192,845

 

168,367

 

169,063

 

170,452

 

181,884

 

Other Liabilities

125,649

 

125,072

 

128,249

 

130,052

 

125,932

 

   Total Liabilities

12,409,513

 

11,805,912

 

11,580,128

 

11,430,280

 

11,352,945

 

Total Shareholders' Equity

1,632,049

 

1,557,006

 

1,535,043

 

1,514,155

 

1,528,606

 

   Total Liabilities and Shareholders' Equity

$   14,041,562

 

$       13,362,918

 

$        13,115,171

 

$      12,944,435

 

$             12,881,551

 

 

Table 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

                   
 

For The Three Months Ended

INCOME STATEMENT

June 30,

 

March 31,

 

2014

 

2013

 

% Change

 

2014

 

% Change

                   

Interest Income

$     119,220

 

$       108,177

 

10.2%

 

$     114,232

 

4.4%

Interest Expense

10,241

 

11,695

 

(12.4%)

 

9,824

 

4.2%

   Net Interest Income

108,979

 

96,482

 

13.0%

 

104,408

 

4.4%

Provision for Loan Losses

4,748

 

1,807

 

162.7%

 

2,103

 

125.8%

   Net Interest Income After Provision for Loan Losses

104,231

 

94,675

 

10.1%

 

102,305

 

1.9%

Service Charges

8,203

 

7,106

 

15.4%

 

7,012

 

17.0%

ATM / Debit Card Fee Income

2,937

 

2,357

 

24.6%

 

2,467

 

19.1%

BOLI Proceeds and Cash Surrender Value Income

935

 

901

 

3.8%

 

2,441

 

(61.7%)

Mortgage Income

17,957

 

17,708

 

1.4%

 

10,133

 

77.2%

Gain (Loss) on Sale of Investments, Net

8

 

(57)

 

114.7%

 

19

 

(55.6%)

Title Revenue

5,262

 

5,696

 

(7.6%)

 

4,167

 

26.3%

Broker Commissions

5,479

 

3,863

 

41.8%

 

4,048

 

35.4%

Other Non-interest Income

7,182

 

4,915

 

46.1%

 

5,394

 

33.1%

   Total Non-interest Income

47,963

 

42,489

 

12.9%

 

35,681

 

34.4%

Salaries and Employee Benefits

68,846

 

63,815

 

7.9%

 

59,861

 

15.0%

Occupancy and Equipment

16,104

 

14,283

 

12.7%

 

13,991

 

15.1%

Amortization of Acquisition Intangibles

1,244

 

1,181

 

5.3%

 

1,218

 

2.1%

Other Non-interest Expense

41,181

 

38,082

 

8.1%

 

32,358

 

27.3%

   Total Non-interest Expense

127,375

 

117,361

 

8.5%

 

107,428

 

18.6%

   Income Before Income Taxes

24,819

 

19,803

 

25.3%

 

30,558

 

(18.8%)

Income Tax Expense 

6,271

 

4,213

 

48.8%

 

8,163

 

(23.2%)

   Net Income 

$        18,548

 

$         15,590

 

19.0%

 

$        22,395

 

(17.2%)

   Preferred Stock Dividends

-

 

-

 

-

 

-

 

-

   Earnings Available to Common Shareholders - Basic

18,548

 

15,590

 

19.0%

 

22,395

 

(17.2%)

   Earnings Allocated to Unvested Restricted Stock

(298)

 

(293)

 

1.9%

 

(405)

 

(26.3%)

   Earnings Available to Common Shareholders - Diluted 

$        18,250

 

$          15,297

 

19.3%

 

$        21,990

 

(17.0%)

Earnings Per Share, Diluted

$            0.60

 

$              0.53

 

13.9%

 

$            0.75

 

(19.8%)

Impact of Non-Operating Items (Non-GAAP)

$            0.36

 

$              0.16

 

122.3%

 

$          (0.02)

 

(2251.3%)

Earnings Per Share, Diluted, Excluding Non-operating Items (Non-GAAP)

$            0.96

 

$              0.69

 

39.6%

 

$            0.73

 

31.6%

                   

NUMBER OF SHARES OUTSTANDING

                 

Basic Shares - All Classes  (Average)

30,787,520

 

29,610,315

 

4.0%

 

29,813,609

 

3.3%

Diluted Shares - Common Shareholders (Average)

30,386,105

 

29,066,906

 

4.5%

 

29,417,290

 

3.3%

Book Value Shares  (Period End)  (1)

33,410,082

 

29,710,058

 

12.5%

 

30,040,025

 

11.2%

                   
 

2014

 

2013

INCOME STATEMENT

Second

 

First

 

Fourth

 

Third

 

Second

 

Quarter

 

Quarter 

 

Quarter

 

Quarter

 

Quarter

                   

Interest Income

$     119,220

 

$       114,232

 

$           114,092

 

$     108,512

 

$     108,177

Interest Expense

10,241

 

9,824

 

10,654

 

11,060

 

11,695

   Net Interest Income

108,979

 

104,408

 

103,438

 

97,452

 

96,482

 Provision for Loan Losses

4,748

 

2,103

 

4,700

 

2,014

 

1,807

   Net Interest Income After Provision for Loan Losses

104,231

 

102,305

 

98,738

 

95,438

 

94,675

Total Non-interest Income

47,963

 

35,681

 

38,715

 

43,263

 

42,489

Total Non-interest Expense

127,375

 

107,428

 

102,674

 

108,152

 

117,361

   Income Before Income Taxes

24,819

 

30,558

 

34,779

 

30,549

 

19,803

Income Tax Expense 

6,271

 

8,163

 

9,175

 

7,357

 

4,213

   Net Income

$        18,548

 

$         22,395

 

$            25,604

 

$        23,192

 

$        15,590

   Preferred Stock Dividends

-

 

-

 

-

 

-

 

-

   Earnings Available to Common Shareholders - Basic

18,548

 

22,395

 

25,604

 

23,192

 

15,590

   Earnings Allocated to Unvested Restricted Stock

(298)

 

(405)

 

(456)

 

(425)

 

(293)

   Earnings Available to Common Shareholders - Diluted

$        18,250

 

$         21,990

 

$            25,148

 

$        22,767

 

$        15,297

                   

Earnings Per Share, Basic

$            0.60

 

$              0.75

 

$                0.86

 

$            0.78

 

$            0.53

                   

Earnings Per Share, Diluted 

$            0.60

 

$              0.75

 

$                0.86

 

$            0.78

 

$            0.53

                   

Book Value Per Common Share

$          53.86

 

$           52.04

 

$              51.40

 

$          51.30

 

$          50.65

Tangible Book Value Per Common Share

$          37.41

 

$           37.59

 

$              37.17

 

$          37.00

 

$          36.30

                   

Return on Average Assets

0.53%

 

0.68%

 

0.77%

 

0.71%

 

0.49%

Return on Average Common Equity

4.56%

 

5.83%

 

6.62%

 

6.08%

 

4.09%

Return on Average Tangible Common Equity

6.62%

 

8.36%

 

9.43%

 

8.74%

 

5.96%

                   
                   

(1) Shares used for book value purposes exclude shares held in treasury at the end of the period.  

 

Table 4 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

           
 

For The Six Months Ended

INCOME STATEMENT

June 30,

 

2014

 

2013

 

% Change

           

Interest Income

$     233,451

 

$       214,593

 

8.8%

Interest Expense

20,065

 

25,239

 

(20.5%)

   Net Interest Income

213,386

 

189,354

 

12.7%

(Reversal of) Provision for Loan Losses

6,851

 

(1,569)

 

536.7%

   Net Interest Income After (Reversal of) Provision for Loan Losses

206,535

 

190,923

 

8.2%

Service Charges

15,216

 

13,903

 

9.4%

ATM / Debit Card Fee Income

5,404

 

4,541

 

19.0%

BOLI Proceeds and Cash Surrender Value Income

3,376

 

1,840

 

83.5%

Mortgage Income

28,089

 

36,639

 

(23.3%)

Gain on Sale of Investments, net

27

 

2,302

 

(98.8%)

Title Revenue

9,429

 

10,717

 

(12.0%)

Broker Commissions

9,526

 

7,397

 

28.8%

Other Non-interest Income

12,577

 

9,641

 

30.4%

   Total Non-interest Income

83,644

 

86,980

 

(3.8%)

Salaries and Employee Benefits

128,707

 

126,344

 

1.9%

Occupancy and Equipment

30,094

 

29,478

 

2.1%

Amortization of Acquisition Intangibles

2,461

 

2,364

 

4.1%

Other Non-interest Expense

73,540

 

104,073

 

(29.3%)

   Total Non-interest Expense

234,802

 

262,259

 

(10.5%)

   Income Before Income Taxes

55,377

 

15,644

 

254.0%

Income Tax Expense (Benefit)

14,434

 

(663)

 

2277.0%

   Net Income

$        40,943

 

$         16,307

 

151.1%

   Preferred Stock Dividends

-

 

-

 

-

   Earnings Available to Common Shareholders - Basic

$        40,943

 

$         16,307

 

151.1%

   Earnings Allocated to Unvested Restricted Stock

(699)

 

(313)

 

123.5%

   Earnings Available to Common Shareholders - Diluted

40,244

 

15,994

 

151.6%

Earnings Per Share, diluted

$            1.35

 

$              0.55

 

145.6%

 

Table 5 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

                     

LOANS

 

June 30,

 

March 31,

   

2014

 

2013

 

% Change

 

2014

 

% Change

Residential Mortgage Loans

 

$   1,124,624

 

$            518,496

 

116.9%

 

$            600,083

 

87.4%

Commercial Loans:

                   

   Real Estate

 

4,243,559

 

3,744,238

 

13.3%

 

3,952,733

 

7.4%

   Business

 

3,130,989

 

2,687,920

 

16.5%

 

2,989,783

 

4.7%

      Total Commercial Loans

 

7,374,548

 

6,432,158

 

14.7%

 

6,942,516

 

6.2%

Consumer Loans:

                   

   Indirect Automobile

 

392,355

 

351,631

 

11.6%

 

379,545

 

3.4%

   Home Equity

 

1,467,141

 

1,278,823

 

14.7%

 

1,319,264

 

11.2%

   Automobile

 

125,047

 

76,427

 

63.6%

 

96,599

 

29.4%

   Credit Card Loans

 

65,892

 

53,026

 

24.3%

 

63,988

 

3.0%

   Other 

 

348,920

 

192,476

 

81.3%

 

239,299

 

45.8%

      Total Consumer Loans

 

2,399,355

 

1,952,383

 

22.9%

 

2,098,695

 

14.3%

      Total Loans 

 

10,898,527

 

8,903,037

 

22.4%

 

9,641,294

 

13.0%

Allowance for Loan Losses

 

(133,519)

 

(162,903)

     

(134,602)

   

   Loans, Net

 

$ 10,765,008

 

$         8,740,134

     

$         9,506,692

   
                     

Reserve for Unfunded Commitments (1)

 

(11,260)

 

(10,342)

 

8.9%

 

(11,519)

 

(2.2%)

Allowance for Credit Losses

 

(144,778)

 

(173,246)

 

(16.4%)

 

(146,121)

 

(0.9%)

                     

ASSET QUALITY DATA (2)

 

June 30,

 

March 31,

   

2014

 

2013

 

% Change

 

2014

 

% Change

Non-accrual Loans

 

$      208,673

 

$            409,775

 

(49.1%)

 

$            229,962

 

(9.3%)

Foreclosed Assets

 

1,186

 

1,647

 

(28.0%)

 

1,301

 

(8.8%)

Other Real Estate Owned

 

83,293

 

127,960

 

(34.9%)

 

91,864

 

(9.3%)

Accruing Loans More Than 90 Days Past Due 

 

1,095

 

4,126

 

(73.4%)

 

981

 

11.7%

Total Non-performing Assets

 

$      294,247

 

$            543,508

 

(45.9%)

 

$            324,108

 

(9.2%)

                     

Loans 30-89 Days Past Due

 

$         31,875

 

$              35,204

 

(9.5%)

 

$              43,905

 

(27.4%)

                     

Non-performing Assets to Total Assets 

 

1.92%

 

4.24%

 

(54.7%)

 

2.39%

 

(19.7%)

Non-performing Assets to Total Loans and OREO 

 

2.68%

 

6.02%

 

(55.5%)

 

3.33%

 

(19.5%)

Allowance for Loan Losses to Non-performing Loans (3)

 

63.7%

 

39.4%

 

61.7%

 

58.3%

 

9.2%

Allowance for Loan Losses to Non-performing Assets

 

45.4%

 

30.0%

 

51.4%

 

41.5%

 

9.3%

Allowance for Loan Losses to Total Loans

 

1.23%

 

1.83%

 

(33.0%)

 

1.40%

 

(12.2%)

Allowance for Credit Losses to Non-performing Loans (1) (3)

 

69.0%

 

41.9%

 

64.9%

 

63.3%

 

9.1%

Allowance for Credit Losses to Non-performing Assets (1)

 

49.2%

 

31.9%

 

54.4%

 

45.1%

 

9.1%

Allowance for Credit Losses to Total Loans (1)

 

1.33%

 

1.95%

 

(31.7%)

 

1.52%

 

(12.3%)

                     

Year to Date Charge-offs 

 

$           5,311

 

$                 4,375

 

21.4%

 

$                 2,578

 

N/M

Year to Date Recoveries

 

(3,686)

 

(2,029)

 

81.7%

 

(1,810)

 

N/M

Year to Date Net Charge-offs (Recoveries)

 

$           1,625

 

$                 2,346

 

(30.7%)

 

$                    768

 

N/M

Quarter to Date Net Charge-offs (Recoveries)

 

$              857

 

$                 1,136

 

(24.6%)

 

$                    768

 

11.6%

Quarter to Date Net Charge-offs to Average Loans (Annualized)

0.03%

 

0.05%

 

(34.0%)

 

0.03%

 

5.4%

Year to Date Net Charge-offs to Average Loans

 

0.03%

 

0.05%

 

(38.8%)

 

0.03%

 

N/M

                     

(1)During the second quarter of 2013, the Company segregated its allowance for credit losses into an allowance for loan losses and a reserve for unfunded commitments, which is included in other liabilities on its balance sheet.

(2)For purposes of this table, non-performing assets include all loans meeting non-performing asset criteria, including assets acquired in FDIC-assisted transactions.

(3)Non-performing loans consist of non-accruing loans and accruing loans 90 days or more past due.  presented.

N/M - Comparison of the information presented is not meaningful given the periods

 

Table 6 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

                     

LOANS (Excluding Covered Assets and Acquired Assets)(1)

June 30,

 

March 31,

   

2014

 

2013

 

% Change

 

2014

 

% Change

Residential Mortgage Loans

 

$      459,652

 

$            325,847

 

41.1%

 

$            428,576

 

7.3%

Commercial Loans:

                   

   Real Estate

 

3,425,986

 

2,829,321

 

21.1%

 

3,250,971

 

5.4%

   Business

 

2,961,460

 

2,558,866

 

15.7%

 

2,890,804

 

2.4%

      Total Commercial Loans

 

6,387,446

 

5,388,187

 

18.5%

 

6,141,775

 

4.0%

Consumer Loans:

                   

   Indirect Automobile

 

391,481

 

348,479

 

12.3%

 

378,260

 

3.5%

   Home Equity

 

1,173,386

 

1,059,375

 

10.8%

 

1,122,306

 

4.6%

   Automobile

 

106,891

 

75,576

 

41.4%

 

95,901

 

11.5%

   Credit Card Loans

 

65,260

 

52,243

 

24.9%

 

63,373

 

3.0%

   Other 

 

250,616

 

174,826

 

43.4%

 

222,731

 

12.5%

      Total Consumer Loans

 

1,987,634

 

1,710,499

 

16.2%

 

1,882,571

 

5.6%

      Total Loans 

 

8,834,732

 

7,424,533

 

19.0%

 

8,452,922

 

4.5%

Allowance for Loan Losses

 

(70,647)

 

(61,599)

     

(68,324)

   

   Loans, Net

 

$   8,764,085

 

$         7,362,934

     

$         8,384,598

   
                     

Reserve for Unfunded Commitments (2)

 

(11,260)

 

(10,342)

 

8.9%

 

(11,519)

 

(2.2%)

Allowance for Credit Losses

 

(81,907)

 

(71,942)

 

13.9%

 

(79,843)

 

2.6%

                     

ASSET QUALITY DATA (Excluding Covered Assets and Acquired Assets)(1)

 

June 30,

 

March 31,

   

2014

 

2013

 

% Change

 

2014

 

% Change

Non-accrual Loans

 

$         34,187

 

$              49,069

 

(30.3%)

 

$              32,983

 

3.6%

Foreclosed Assets

 

113

 

32

 

249.3%

 

57

 

97.7%

Other Real Estate Owned

 

34,681

 

25,860

 

34.1%

 

26,147

 

32.6%

Accruing Loans More Than 90 Days Past Due 

 

20

 

1,071

 

(98.1%)

 

269

 

(92.5%)

Total Non-performing Assets

 

$         69,001

 

$              76,033

 

(9.2%)

 

$              59,456

 

16.1%

                     

Loans 30-89 Days Past Due

 

$         13,982

 

$              15,175

 

(7.9%)

 

$              11,183

 

25.0%

                     

Troubled Debt Restructurings (3)

 

5,413

 

10,425

 

(48.1%)

 

8,806

 

(38.5%)

Current Troubled Debt Restructurings (4)

 

1,189

 

1,813

 

(34.4%)

 

1,283

 

(7.3%)

                     

Non-performing Assets to Total Assets 

 

0.53%

 

0.69%

 

(23.4%)

 

0.49%

 

7.7%

Non-performing Assets to Total Loans and OREO 

 

0.78%

 

1.02%

 

(23.8%)

 

0.70%

 

10.9%

Allowance for Loan Losses to Non-performing Loans (5)

 

206.5%

 

122.9%

 

68.1%

 

205.5%

 

0.5%

Allowance for Loan Losses to Non-performing Assets

 

102.4%

 

81.0%

 

26.4%

 

114.9%

 

(10.9%)

Allowance for Loan Losses to Total Loans

 

0.80%

 

0.83%

 

(3.6%)

 

0.81%

 

(1.1%)

Allowance for Credit Losses to Non-performing Loans (1) (5)

 

239.4%

 

143.5%

 

66.9%

 

240.1%

 

(0.3%)

Allowance for Credit Losses to Non-performing Assets (1)

 

118.7%

 

94.6%

 

25.5%

 

134.3%

 

(11.6%)

Allowance for Credit Losses to Total Loans (1)

 

0.93%

 

0.97%

 

(4.3%)

 

0.94%

 

(1.8%)

                     

Year to Date Charge-offs 

 

$           5,198

 

$                 4,227

 

23.0%

 

$                 2,544

 

N/M

Year to Date Recoveries

 

(3,425)

 

(2,028)

 

68.8%

 

(1,530)

 

N/M

Year to Date Net Charge-offs (Recoveries)

 

$           1,773

 

$                 2,199

 

(19.4%)

 

$                 1,014

 

N/M

Quarter to Date Net Charge-offs (Recoveries)

 

$              759

 

$                 1,028

 

(26.2%)

 

$                 1,014

 

(25.2%)

Quarter to Date Net Charge-offs to Average Loans (Annualized)

0.04%

 

0.06%

 

(40.9%)

 

0.05%

 

(32.1%)

Year to Date Net Charge-offs to Average Loans

 

0.04%

 

0.06%

 

(27.7%)

 

0.05%

 

N/M

                     

(1)For purposes of this table, loans and non-performing assets exclude all assets acquired. 

(2)During the second quarter of 2013, the Company segregated its allowance for credit losses into an allowance for loan losses and a reserve for unfunded commitments, which is included in other liabilities on its balance sheet.

(3)Troubled debt restructurings meeting past due and non-accruing criteria are included in loans past due and non-accrual loans above.

(4)Current troubled debt restructurings are defined as troubled debt restructurings not past due or on non-accrual status for the respective periods.

(5)Non-performing loans consist of nonaccruing loans and accruing loans 90 days or more past due.  

N/M - Comparison of the information presented is not meaningful given the periods presented.

 

Table 6A - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

                     

LOANS (Covered Assets and Acquired Assets Only)(1)

 

June 30,

 

March 31,

   

2014

 

2013

 

% Change

 

2014

 

% Change

Residential Mortgage Loans

 

$         664,972

 

$            192,649

 

N/M

 

$            171,507

 

N/M

Commercial Loans:

                   

   Real Estate

 

817,573

 

914,916

 

(10.6%)

 

701,762

 

16.5%

   Business

 

169,529

 

129,054

 

31.4%

 

98,979

 

71.3%

      Total Commercial Loans

 

987,102

 

1,043,970

 

(5.4%)

 

800,741

 

23.3%

Consumer Loans:

                   

   Indirect Automobile

 

874

 

3,152

 

(72.3%)

 

1,285

 

(32.0%)

   Home Equity

 

293,755

 

219,448

 

33.9%

 

196,958

 

49.1%

   Automobile

 

18,156

 

852

 

N/M

 

698

 

N/M

   Credit Card Loans

 

632

 

783

 

(19.2%)

 

615

 

2.8%

   Other 

 

98,304

 

17,650

 

N/M

 

16,568

 

N/M

      Total Consumer Loans

 

411,721

 

241,885

 

70.2%

 

216,124

 

90.5%

      Total Loans Receivable

 

2,063,795

 

1,478,504

 

39.6%

 

1,188,372

 

73.7%

Allowance for Loan Losses

 

(62,872)

 

(101,304)

     

(66,278)

   

   Loans, Net

 

$     2,000,923

 

$         1,377,200

     

$         1,122,094

   
                     
                     

ASSET QUALITY DATA (Covered Assets and Acquired Assets Only) (1)

 

June 30,

 

March 31,

   

2014

 

2013

 

% Change

 

2014

 

% Change

Non-accrual Loans

 

$         174,486

 

$            360,707

 

(51.6%)

 

$            196,979

 

(11.4%)

Foreclosed Assets

 

1,073

 

1,615

 

(33.6%)

 

1,244

 

(13.7%)

Other Real Estate Owned

 

48,612

 

102,099

 

(52.4%)

 

65,717

 

(26.0%)

Accruing Loans More Than 90 Days Past Due 

 

1,075

 

3,055

 

(64.8%)

 

712

 

51.1%

Total Non-performing Assets

 

$         225,246

 

$            467,476

 

(51.8%)

 

$            264,652

 

(14.9%)

                     

Loans 30-89 Days Past Due

 

$           17,893

 

$              20,029

 

(10.7%)

 

$              32,722

 

(45.3%)

                     

Non-performing Assets to Total Assets 

 

10.23%

 

26.85%

 

(61.9%)

 

19.21%

 

(46.7%)

Non-performing Assets to Total Loans and OREO 

 

10.66%

 

29.55%

 

(63.9%)

 

21.08%

 

(49.4%)

Allowance for Loan Losses to Non-performing Loans (2)

 

35.8%

 

27.8%

 

28.6%

 

33.5%

 

6.8%

Allowance for Loan Losses to Non-performing Assets

 

27.9%

 

21.7%

 

28.8%

 

25.0%

 

11.5%

Allowance for Loan Losses to Total Loans

 

3.05%

 

6.85%

 

(55.5%)

 

5.58%

 

(45.4%)

                     

Year to Date Charge-offs 

 

$                113

 

$                    148

 

(23.5%)

 

$                      34

 

 N/M

Year to Date Recoveries

 

(261)

 

(0)

 

 N/M 

 

(280)

 

 N/M

Year to Date Net Charge-offs (Recoveries)

 

(148)

 

148

 

(199.9%)

 

(246)

 

 N/M

Quarter to Date Net Charge-offs (Recoveries)

 

98

 

108

 

-9.1%

 

(246)

 

N/M

Quarter to Date Net Charge-offs to Average Loans (Annualized)

0.03%

 

0.03%

 

(0.6%)

 

-0.08%

 

N/M

Year to Date Net Charge-offs to Average Loans

 

-0.02%

 

0.01%

 

(265.1%)

 

-0.08%

 

N/M

                     

(1)For purposes of this table, acquired loans and non-performing assets are presented only. Non-performing assets include all loans meeting nonperforming asset criteria.

(2)Non-performing loans consist of non-accruing loans and accruing loans 90 days or more past due.  

N/M - Comparison of the information presented is not meaningful given the periods presented 

 

Table 7 - Non-Covered and Net Covered Loan Portfolio Volumes And Yields ($ in Millions)

                     
                     
 

2Q 2013

3Q 2013

4Q 2013

1Q 2014

2Q 2014

 

Average Balance

Yield

Average Balance

Yield

Average Balance

Yield

Average Balance

Yield

Average Balance

Yield

                     

Non Covered Loans, net

$   7,794

4.40%

$   8,104

4.39%

$   8,421

4.43%

$   8,860

4.38%

$   9,379

4.30%

                     

Covered Loans, net

$      955

12.62%

$      872

13.90%

$      751

19.46%

$      691

15.00%

$      625

14.70%

FDIC Indemnification Asset

268

-26.69%

228

-39.25%

189

-60.36%

155

-49.83%

131

-51.22%

Covered Loans, net of Indemnification Asset Amortization

$   1,223

3.98%

$   1,100

2.88%

$      940

3.43%

$      846

3.18%

$      756

3.16%

 

Table 8 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

Taxable Equivalent Basis

(dollars in thousands)

                             
                             
       

For The Quarter Ended

   

June 30, 2014

 

March 31, 2014

 

June 30, 2013

       

Average 

 

Average 

 

Average 

 

Average 

 

Average 

 

Average 

   

Interest 

 

Balance

 

Yield/Rate (%)

 

Balance 

 

Yield/Rate (%)

 

Balance

 

Yield/Rate (%)

ASSETS

                           

Earning  Assets:

                           

Loans Receivable: 

                           

Mortgage Loans

 

$            9,299

 

$          703,120

 

5.29%

 

$          595,275

 

5.89%

 

$          494,531

 

6.09%

Commercial Loans (TE) (1)

 

85,614

 

7,113,400

 

4.84%

 

6,890,635

 

5.07%

 

6,321,599

 

5.16%

Consumer and Other Loans

 

28,211

 

2,187,247

 

5.17%

 

2,065,441

 

5.20%

 

1,932,346

 

5.54%

Total Loans 

 

123,124

 

10,003,767

 

4.94%

 

9,551,351

 

5.15%

 

8,748,476

 

5.30%

Loss Share Receivable

 

(17,009)

 

131,375

 

-51.22%

 

154,634

 

-49.83%

 

268,700

 

-26.69%

       Total Loans and Loss Share Receivable

 

106,115

 

10,135,142

 

4.22%

 

9,705,985

 

4.27%

 

9,017,176

 

4.35%

Mortgage Loans Held for Sale

 

1,474

 

140,122

 

4.21%

 

96,019

 

3.69%

 

170,620

 

3.17%

Investment  Securities (TE) (1)(2)

 

11,000

 

2,109,253

 

2.24%

 

2,113,424

 

2.22%

 

2,059,502

 

1.92%

Other  Earning Assets

 

631

 

308,712

 

0.82%

 

172,742

 

1.27%

 

338,668

 

0.87%

Total  Earning Assets

 

119,220

 

12,693,229

 

3.80%

 

12,088,170

 

3.87%

 

11,585,966

 

3.80%

 Allowance for Loan Losses 

     

(132,049)

     

(139,726)

     

(183,783)

   

Non-earning Assets

     

1,480,382

     

1,414,492

     

1,479,368

   

Total Assets

     

$    14,041,562

     

$    13,362,918

     

$    12,881,551

   
                             

LIABILITIES AND SHAREHOLDERS' EQUITY

                           

Interest-bearing liabilities

                           

   Deposits:

                           

      NOW Accounts

 

$            1,394

 

$       2,229,264

 

0.25%

 

$       2,230,744

 

0.28%

 

$       2,488,721

 

0.32%

      Savings and Money Market Accounts

 

2,812

 

4,372,855

 

0.26%

 

4,296,360

 

0.26%

 

4,113,671

 

0.26%

      Certificates of Deposit

 

3,089

 

1,721,111

 

0.72%

 

1,665,943

 

0.71%

 

2,025,823

 

0.87%

         Total Interest-bearing Deposits

 

7,295

 

8,323,230

 

0.35%

 

8,193,047

 

0.36%

 

8,628,215

 

0.42%

   Short-term Borrowings

 

373

 

907,459

 

0.16%

 

584,489

 

0.17%

 

294,789

 

0.16%

   Long-term Debt

 

2,573

 

304,707

 

3.34%

 

280,229

 

3.42%

 

293,746

 

3.39%

         Total Interest-bearing Liabilities

 

10,241

 

9,535,396

 

0.43%

 

9,057,765

 

0.44%

 

9,216,750

 

0.51%

Non-interest-bearing Demand Deposits

     

2,748,468

     

2,623,075

     

2,010,263

   

Non-interest-bearing Liabilities

     

125,649

     

125,072

     

125,932

   

         Total Liabilities

     

12,409,513

     

11,805,912

     

11,352,945

   

Shareholders' Equity

     

1,632,049

     

1,557,006

     

1,528,606

   

         Total Liabilities and Shareholders' Equity

     

$    14,041,562

     

$    13,362,918

     

$    12,881,551

   
                             
                             

Net Interest Spread

     

$          108,979

 

3.38%

 

$          104,408

 

3.43%

 

$            96,482

 

3.29%

Tax-equivalent Benefit

     

2,191

 

0.07%

 

2,229

 

0.07%

 

2,396

 

0.08%

Net Interest Income (TE) / Net Interest Margin (TE) (1)

     

$          111,170

 

3.48%

 

$          106,637

 

3.54%

 

$            98,878

 

3.39%

                             
                             

(1)  Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%.

(2)  Balances exclude unrealized gain or loss on securities available for sale and impact of trade date accounting.

 

Table 9 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

Taxable Equivalent Basis

(dollars in thousands)

                         
                         
   

For The Six Months Ended

   

June 30, 2014

 

June 30, 2013

       

Average 

 

Average 

     

Average 

 

Average 

   

Interest 

 

Balance

 

Yield/Rate (%)

 

Interest 

 

Balance

 

Yield/Rate (%)

ASSETS

                       

Earning  Assets:

                       

Loans Receivable: 

                       

Mortgage Loans

 

$          18,062

 

$           649,495

 

5.56%

 

$          14,984

 

$           483,383

 

6.20%

Commercial Loans (TE) (1)

 

171,546

 

7,002,639

 

4.95%

 

169,485

 

6,264,012

 

5.48%

Consumer and Other Loans

 

54,670

 

2,126,681

 

5.18%

 

53,839

 

1,899,178

 

5.72%

Total Loans 

 

244,278

 

9,778,815

 

5.04%

 

238,308

 

8,646,573

 

5.57%

Loss Share Receivable

 

(36,273)

 

142,940

 

-50.47%

 

(45,831)

 

326,190

 

-27.95%

       Total Loans and Loss Share Receivable

 

208,005

 

9,921,755

 

4.24%

 

192,477

 

8,972,763

 

4.35%

Mortgage Loans Held for Sale

 

2,359

 

118,192

 

3.99%

 

2,676

 

174,482

 

3.07%

Investment  Securities (TE) (1)(2)

 

21,917

 

2,111,326

 

2.23%

 

17,838

 

2,050,935

 

1.92%

Other  Earning Assets

 

1,171

 

241,104

 

0.98%

 

1,602

 

507,853

 

0.64%

Total  Earning Assets

 

233,452

 

12,392,377

 

3.83%

 

214,593

 

11,706,033

 

3.75%

 Allowance for Loan Losses 

     

(135,866)

         

(214,414)

   

Non-earning Assets

     

1,447,610

         

1,486,126

   

Total Assets

     

$      13,704,121

         

$      12,977,745

   
                         

LIABILITIES AND SHAREHOLDERS' EQUITY

                       

Interest-bearing liabilities

                       

   Deposits:

                       

      NOW Accounts

 

$            2,934

 

$        2,230,001

 

0.27%

 

$            3,927

 

$        2,476,888

 

0.32%

      Savings and Money Market Accounts

 

5,520

 

4,334,819

 

0.26%

 

6,261

 

4,141,741

 

0.30%

      Certificates of Deposit

 

6,026

 

1,693,679

 

0.72%

 

9,026

 

2,078,095

 

0.88%

         Total Interest-bearing Deposits

 

14,480

 

8,258,499

 

0.35%

 

19,214

 

8,696,724

 

0.45%

   Short-term Borrowings

 

615

 

746,867

 

0.16%

 

262

 

293,874

 

0.18%

   Long-term Debt

 

4,970

 

292,535

 

3.38%

 

5,763

 

352,513

 

3.25%

         Total Interest-bearing Liabilities

 

20,065

 

9,297,901

 

0.43%

 

25,239

 

9,343,111

 

0.54%

Non-interest-bearing Demand Deposits

     

2,686,118

         

1,974,276

   

Non-interest-bearing Liabilities

     

125,361

         

130,528

   

         Total Liabilities

     

12,109,380

         

11,447,915

   

Shareholders' Equity

     

1,594,741

         

1,529,830

   

         Total Liabilities and Shareholders' Equity

     

$      13,704,121

         

$      12,977,745

   
                         
                         

Net Interest Spread

     

$           213,386

 

3.40%

     

$           189,354

 

3.20%

Tax-equivalent Benefit

     

4,420

 

0.07%

     

4,860

 

0.08%

Net Interest Income (TE) / Net Interest Margin (TE) (1)

     

$           217,806

 

3.51%

     

$           194,214

 

3.31%

                         
                         

(1)  Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%.

(2)  Balances exclude unrealized gain or loss on securities available for sale and impact of trade date accounting.

 

Table 10 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(dollars in thousands)

             
   

For The Quarter Ended

   

June 30, 2014

 

March 31, 2014

 

June 30, 2013

             

Net Interest Income (GAAP)

 

$                    108,979

 

$           104,408

 

$                96,482

Effect of Tax Benefit on Interest Income

 

2,191

 

2,229

 

2,396

Net Interest Income (TE) (Non-GAAP) (1)

 

111,170

 

106,637

 

98,878

Non-interest Income (GAAP)

 

47,963

 

35,681

 

42,489

Effect of Tax Benefit on Non-interest Income

 

503

 

1,315

 

485

Non-interest Income (TE) (Non-GAAP) (1)

 

48,466

 

36,996

 

42,974

Taxable Equivalent Revenues (Non-GAAP) (1)

159,636

 

143,633

 

141,852

   Securities Losses (Gains)

(8)

 

(19)

 

57

   Other non-interest income

(1)

 

(1,772)

 

-

Taxable Equivalent Operating Revenues (Non-GAAP) (1)

$                   159,627

 

$           141,842

 

$             141,909

             

Total Non-interest Expense (GAAP)

 

$                   127,375

 

$           107,428

 

$             117,361

Less Intangible Amortization Expense

 

(1,244)

 

(1,218)

 

(1,181)

Tangible Non-interest Expense (Non-GAAP) (2)

 

126,131

 

106,210

 

116,180

Merger-related expenses

 

10,419

 

967

 

-

Severance expenses

 

5,466

 

119

 

1,670

Storm-related expenses

 

4

 

184

 

-

Occupancy expenses and branch closure expenses

 

14

 

17

 

306

(Gain) Loss on sale of long-lived assets, net of impairment

 

1,241

 

541

 

4,618

Provision for FDIC clawback liability

 

-

 

-

 

130

Debt prepayment

 

-

 

-

 

-

Termination of debit card rewards program

 

-

 

(22)

 

450

Professional expenses and litigation settlements

 

-

 

-

 

150

Tangible Operating Non-interest Expense (Non-GAAP) (2)

 

$                   108,987

 

$           104,404

 

$             108,856

             

Return on Average Common Equity (GAAP)

 

4.56%

 

5.83%

 

4.09%

Effect of Intangibles (2)

 

2.06%

 

2.53%

 

1.87%

Effect of Non Operating Revenues and Expenses

 

3.82%

 

-0.19%

 

1.74%

Operating Return on Average Tangible Common Equity (Non-GAAP) (2)

 

10.44%

 

8.17%

 

7.70%

             

Efficiency Ratio (GAAP)

 

81.2%

 

76.7%

 

84.5%

    Effect of Tax Benefit Related to Tax-exempt Income

 

(1.4%)

 

(1.9%)

 

(1.8%)

   Efficiency Ratio (TE) (Non-GAAP)  (1)  

 

79.8%

 

74.8%

 

82.7%

    Effect of Amortization of Intangibles

 

(0.8%)

 

(0.9%)

 

(0.8%)

    Effect of Non-operating Items 

 

(10.7%)

 

(0.3%)

 

(5.1%)

Tangible Operating Efficiency Ratio (TE)(Non-GAAP) (1) (2)

 

68.3%

 

73.6%

 

76.8%

             
             

(1)Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%.

(2)Tangible calculations eliminate the effect of goodwill and acquisition related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable.

             

 

Table 11 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES(1) 

(dollars in thousands)

                         
   

For The Quarter Ended

   

June 30, 2014

 

March 31, 2014

 

June 30, 2013

   

Dollar Amount

   

Dollar Amount

   

Dollar Amount

 
   

Pre-tax 

After-tax (2)

 Per share 

 

Pre-tax 

After-tax (2)

 Per share 

 

Pre-tax 

After-tax (2)

 Per share 

Net Income (Loss) (GAAP)

 

$                24,819

$                        18,548

$              0.60

 

$ 30,558

$         22,395

$           0.75

 

$ 19,803

$       15,590

$           0.53

                         

Non-interest income adjustments

                       

Loss (Gain) on sale of investments

 

(8)

(5)

(0.00)

 

(19)

(12)

(0.00)

 

57

37

0.00

Other non-interest income

 

(1)

(1)

(0.00)

 

(1,772)

(1,680)

(0.06)

 

-

-

-

                         

Non-interest expense adjustments

                       

Merger-related expenses

 

10,419

6,840

0.22

 

967

629

0.02

 

-

-

-

Severance expenses

 

5,466

3,553

0.11

 

119

78

0.00

 

1,670

1,086

0.04

Storm-related expenses

 

4

3

0.00

 

184

120

0.00

 

-

-

-

(Gain) Loss on sale of long-lived assets, net of impairment

 

1,241

807

0.03

 

541

352

0.01

 

4,618

3,002

0.10

Provision for FDIC clawback liability

 

-

-

-

 

-

-

-

 

130

84

0.00

Occupancy expenses and branch closure expenses

 

14

9

0.00

 

17

11

0.00

 

306

199

0.01

Termination of debit card rewards program

 

-

-

(0.00)

 

(22)

(15)

(0.00)

 

450

293

0.01

Professional expenses and litigation settlements

 

-

-

-

 

-

-

-

 

150

97

0.00

Operating earnings (Non-GAAP)

 

41,954

29,754

0.96

 

30,573

21,878

0.73

 

27,185

20,388

0.69

Covered and acquired (reversal of) provision for loan losses

 

1,744

1,134

0.04

 

108

70

0.00

 

(1,609)

(1,046)

(0.03)

Other (reversal of) provision for loan losses

 

3,004

1,953

0.06

 

1,995

1,297

0.04

 

3,416

2,221

0.07

Pre-provision operating earnings (Non-GAAP)

 

$                46,702

$                        32,841

$              1.06

 

$ 32,676

$         23,245

$           0.78

 

$ 28,992

$       21,563

$           0.73

                         
                         

 

(1) Per share amounts may not appear to foot due to rounding.

 

(2) After-tax amounts estimated based on a 35% marginal tax rate.

 

Table 12 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES(1) 

(dollars in thousands)

                 
   

For The Six Months Ended

   

June 30, 2014

 

June 30, 2013

   

Dollar Amount

   

Dollar Amount

 
   

Pre-tax 

After-tax (2)

 Per share 

 

Pre-tax 

After-tax (2)

 Per share 

Net Income (Loss) (GAAP)

 

$                55,377

$                        40,943

$              1.35

 

$ 15,644

$       16,307

$           0.55

                 

Non-interest income adjustments

               

Loss (Gain) on sale of investments

 

(27)

(18)

(0.00)

 

(2,302)

(1,496)

(0.05)

Other non-interest income

 

(1,773)

(1,680)

(0.05)

 

-

-

-

                 

Non-interest expense adjustments

               

Merger-related expenses

 

11,386

7,469

0.25

 

157

102

0.00

Severance expenses

 

5,586

3,631

0.12

 

1,767

1,149

0.04

Storm-related expenses

 

188

122

0.00

       

(Gain) Loss on sale of long-lived assets, net of impairment

 

1,782

1,158

0.04

 

31,813

20,678

0.70

Provision for FDIC clawback liability

 

-

-

-

 

130

84

0.00

Debt prepayment

 

-

-

-

 

2,307

1,500

0.05

Occupancy expenses and branch closure expenses

 

31

20

0.00

 

5,299

3,445

0.12

Termination of debit card rewards program

 

(22)

(15)

0.00

 

450

293

0.01

Professional expenses and litigation settlements

 

-

-

-

 

150

97

0.00

Operating earnings (Non-GAAP)

 

72,528

51,630

1.70

 

55,415

42,159

1.42

Covered and acquired (reversal of) provision for loan losses

 

1,852

1,204

0.04

 

(984)

(640)

(0.02)

Other (reversal of) provision for loan losses

 

4,999

3,249

0.11

 

(585)

(380)

(0.01)

Pre-provision operating earnings (Non-GAAP)

 

$                79,379

$                        56,083

$              1.85

 

$ 53,846

$       41,139

$           1.39

                 
                 

 

(1) Per share amounts may not appear to foot due to rounding.

 

(2) After-tax amounts estimated based on a 35% marginal tax rate.

 

SOURCE IBERIABANK Corporation