IBERIABANK Corporation Reports Continued Improvement in Operating Results
PR Newswire
LAFAYETTE, La.

LAFAYETTE, La., Oct. 22, 2014 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 127-year-old IBERIABANK (www.iberiabank.com), reported operating results for the third quarter ended September 30, 2014.  For the quarter, the Company reported income available to common shareholders of $29.7 million, or $0.89 per fully diluted earnings per share.  In the third quarter of 2014, the Company incurred non-operating income and costs equal to $5.8 million on a pre-tax basis, or $0.11 per share on an after-tax basis.  Excluding non-operating items, EPS in the third quarter of 2014 was $1.00 per share on a non-GAAP operating basis, compared to $0.96 per share in the second quarter of 2014 (refer to press release supplemental table.)  

The Company completed the acquisitions 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.  The conversions of branch and operating systems for Teche were successfully completed over the weekend of June 28-29, 2014, and for First Private over the weekend of September 6-7, 2014. The Company incurred approximately $3.0 million in pre-tax conversion-related and severance costs during the third quarter of 2014.

Daryl G. Byrd, President and Chief Executive Officer, commented, "We are proud of the healthy improvement in our operating performance in the third quarter.  We experienced strong annualized organic loan and deposit growth equal to 16% and 13%, respectively.  Our operating leverage continued to improve as tax-equivalent operating revenues climbed $9 million, or 6%, while operating expenses increased $3 million, or 3%. Based on the assumptions in our current forecasts and our third quarter results, we expect our operating EPS for the full-year 2014 will be on the upper-end of our previously provided EPS guidance range of $3.65 to $3.70 per share.  We remain focused on enhancing long-term shareholder value through improved operating leverage and profitability and we are progressing well on our strategic financial targets."

Byrd continued, "We are also particularly pleased with our continuous focus on franchise development.  Our team has demonstrated an ability to expand our client base through various credit and interest rate cycles over the last 15 years and we have done so in an extraordinarily high-quality manner.  Our growth has been achieved through both organic and acquisition means.  We are delighted to find strategic partners who share our vision of exceptional client service, franchise strength, and opportunity."

Highlights for the third quarter of 2014 and September 30, 2014:

  • On October 3, 2014, the Company announced the signing of a definitive agreement to acquire by merger Florida Bank Group, Inc. ("Florida Bank Group") based in Tampa, Florida.  At September 30, 2014, Florida Bank Group had total assets of $518 million, gross loans of $324 million, and total deposits of $393 million.  The Company anticipates closing the transaction in the first quarter of 2015, subject to customary closing conditions, including the receipt of regulatory approvals and the approval of Florida Bank Group's shareholders.
  • The Company's tangible operating efficiency ratio improved from 68.3% in the second quarter of 2014 to 66.4% in the third quarter of 2014.  Based on current estimates, the Company forecasts a tangible efficiency ratio of approximately 67% in the fourth quarter of 2014.
  • On a linked quarter basis, operating non-interest income decreased $2.9 million, or 6%, in the third quarter of 2014. Mortgage income decreased $5.1 million, or 29%, title revenue increased $0.3 million, or 6%, service charge income increased $2.0 million, or 24%, and capital markets income decreased $0.3 million, or 9%, on a linked quarter basis. 
  • Total loan growth was $181 million, or 2%, between quarter-ends, while legacy loan growth, which excludes all assets covered under FDIC loss share agreements and other non-covered acquired assets (collectively, "Acquired Assets"), increased $348 million, or 4%, between quarter-ends (16% annualized rate). The loan growth was well balanced between small business (25%), consumer (33%), and commercial (42%).
  • Total deposits increased $397 million, or 3%, between quarter-ends.  Core deposits, which excludes time deposits, increased $307 million, or 3% (12% annualized rate).  Non-interest-bearing deposits increased $110 million, or 4%, between quarter-ends (14% on an annualized basis).
  • The Company's legacy asset quality remained strong in the third quarter of 2014.  At September 30, 2014, and excluding Acquired Assets, nonperforming assets ("NPAs") equated to 0.46% of total assets, loans past due 30 days or more equated to 0.55% of total loans, and classified assets equated to 0.50% of total assets.
  • Net charge-offs totaled $2.2 million in the third quarter of 2014, or an annualized 0.08% of average loans.  Over the past 11 quarters, net charge-offs averaged 0.05% of average loans.  The Company recorded a $5.7 million loan loss provision, compared to $4.7 million in the second quarter of 2014.  
  • The net interest margin decreased one basis point on a linked quarter basis to 3.47%, which was within the previously disclosed guidance range of 3.45% to 3.50%. The Company's growth in excess liquidity during the third quarter accounted for a one basis point decline in the net interest margin on a linked quarter basis. Based on interest rate risk modeling and other factors, management stated its expectation of the net interest margin in the fourth quarter of 2014 to be in the range of 3.40% to 3.45%.

Table A - Summary Financial Results

 
 

For the Quarter Ended:

 

Linked Quarter

Selected Financial Data

9/30/2013

6/30/2014

9/30/2014

% Change

Net Income ($ in thousands)

$               23,192

$               18,548

$               29,744

60%

           

Per Share Data:

         

Fully Diluted Earnings 

$                    0.78

$                    0.60

$                    0.89

48%

Operating Earnings (Non-GAAP)

0.83

0.96

1.00

4%

Pre-provision Operating Earnings  (Non-GAAP)

0.89

1.06

1.11

5%

Tangible Book Value 

37.00

37.41

37.91

1%

           
 

As of and for the Quarter Ended:

 

Linked Quarter

       

Basis Point

Key Ratios 

9/30/2013

6/30/2014

9/30/2014

Change

           

Return on Average Assets

0.71%

0.53%

0.76%

23

bps

Return on Average Common Equity

6.08%

4.56%

6.52%

196

bps

Return on Average Tangible Common Equity (Non-GAAP)

8.74%

6.62%

9.68%

306

bps

Net Interest Margin (TE) (1)

3.37%

3.48%

3.47%

(1)

bps

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

73.0%

68.3%

66.4%

(183)

bps

Tangible Common Equity Ratio (Non-GAAP)

8.64%

8.46%

8.47%

1

bps

Tier 1 Leverage Ratio

9.65%

10.03%

9.22%

(81)

bps

Tier 1 Common Ratio (Non-GAAP)

10.95%

10.33%

10.34%

1

bps

Total Risk Based Capital Ratio

13.28%

12.43%

12.42%

(1)

bps

Net Charge-Offs to Average Loans (2)

0.02%

0.04%

0.09%

5

bps

Non-performing Assets to Total Assets (2)

0.66%

0.53%

0.46%

(7)

bps

           
 

For the Quarter Ended:

     
 

GAAP

 

Non-GAAP

   

Adjusted Selected Key Ratios

9/30/2014

Adjustments(3)

9/30/2014

   
           

Return on Average Assets

0.76%

0.10%

0.86%

   

Return on Average Common Equity

6.52%

0.83%

7.35%

   

Return on Average Tangible Common Equity (Non-GAAP)

9.68%

1.19%

10.87%

   

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

70.9%

(4.4%)

66.4%

   
           

(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 $1.3 billion, or 10%, as average loans increased $1.0 billion, or 10%, average indemnification asset ("IA") declined $20 million, or 15%, average investment securities increased $28 million, or 1%, and other earning assets increased $259 million, or 84%. Also on a linked quarter basis, the average earning asset yield increased one basis point, and the cost of interest-bearing liabilities increased three basis points.  As a result, the net interest spread decreased two basis points, and the net interest margin decreased one basis point.  Tax-equivalent net interest income increased $12 million, or 11%, as average earning assets increased significantly while the net interest margin declined slightly.

Table B - Quarterly Average Yields/Cost (1)

 
 

For Quarter Ended:

Linked Quarter

       

Basis Point

 

9/30/2013

6/30/2014

9/30/2014

Change

Investment Securities

1.98%

2.24%

2.20%

(4)

bps

Covered Loans, net of loss share receivable

2.88%

3.16%

3.07%

(9)

bps

Non-covered Loans

4.39%

4.30%

4.37%

7

bps

Loans & Loss Share Receivable

4.21%

4.22%

4.29%

7

bps

Mortgage Loans Held For Sale

4.32%

4.21%

3.84%

(37)

bps

Other Earning Assets

0.89%

0.82%

0.60%

(22)

bps

  Total Earning Assets

3.74%

3.80%

3.81%

1

bps

           

Interest-bearing Deposits

0.40%

0.35%

0.40%

5

bps

Short-Term Borrowings

0.14%

0.16%

0.17%

1

bps

Long-Term Borrowings

3.37%

3.34%

2.75%

(59)

bps

  Total Interest-bearing Liabilities

0.49%

0.43%

0.46%

3

bps

Net Interest Spread

3.25%

3.38%

3.36%

(2)

bps

Net Interest Margin

3.37%

3.48%

3.47%

(1)

bps

           

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

     
           

During the third quarter, the non-covered loan yield increased seven basis points, while the net covered loan yield (net of IA amortization) decreased nine basis points.  The average covered loan volume declined $66 million, or 11%.  As a result of the reduction in yield and volume, the associated net covered income declined $0.8 million on a linked quarter basis, which was slightly better than management's expectations. 

For the fourth quarter of 2014, the Company projects the prospective yield on the covered loan portfolio net of the IA amortization to approximate 3.68%, compared to 3.07% in the third quarter.  The average balance of the net covered loan portfolio is projected to decline approximately $62 million, based on current cash flow assumptions and estimates.  Net income on the covered loan portfolio is projected to increase approximately $0.2 million between the third and fourth quarters of 2014. In the third quarter of 2014, the net covered income equated to less than 4% of total net income, compared to 11% in the full year of 2013.

On a period-end basis, the IA declined $26 million, or 21%, from $121 million at June 30, 2014, to $95 million at September 30, 2014.  During the third quarter of 2014, the Company included an impairment charge on its IA of $4.8 million, which is included in non-operating expenses in Table 11. The impairment charge was a result of a change in the timing of covered OREO sales that were deferred to early 2015.  The portion of the IA collectible from the FDIC increased $6 million, or 27%.  Approximately $5 million of the $6 million increase in FDIC-related IA is considered temporary and will likely reverse in the fourth quarter of 2014 due to the anticipated collection of certificate proceeds.  The portion of the IA collectible from other real estate owned ("OREO") and customers declined $32 million, or 32%.

Aggregate non-interest income decreased $2.3 million, or 5%, on a linked quarter basis.  Excluding non-operating items, operating non-interest income decreased $2.9 million, or 6%.  The primary changes in operating non-interest income on a linked quarter basis were:

  • Decreased mortgage income of $5.1 million, or 29%;
  • Decreased fees on client derivative income of $0.6 million, or 60%; and
  • Decreased capital markets revenue of $0.3 million, or 9%; partially offset by
  • Increased service charge income of $2.0 million, or 24%;
  • Increased ATM/debit card fee income of $0.4 million, or 12%; and
  • Increased title revenue of $0.3 million, or 6%.

The $5.1 million decrease in mortgage income was primarily the result of $7 million lower market value adjustments (a negative $4.5 million adjustment in the third quarter of 2014 compared to a $2.5 million positive adjustment in the second quarter of 2014.)  The Company experienced higher production and sales volumes, and favorable pricing dynamics.  Mortgage commission and production incentives expense (which is included in non-interest expense) increased $0.4 million, or 12%, on a linked quarter basis.

In the third quarter of 2014, the Company originated $456 million in residential mortgage loans, up $20 million, or 5%, on a linked quarter basis.  Client loan refinancing opportunities accounted for approximately 25% of mortgage loan applications in the third quarter of 2014, compared to 13% in the second quarter of 2014.  The Company sold $488 million in mortgage loans during the third quarter of 2014, up $93 million, or 24%, on a linked quarter basis.  The mortgage origination locked pipeline and loans held for sale decreased $40 million, or 11% between June 30, 2014, and September 30, 2014.  At October 10, 2014, the locked pipeline was $194 million, up $15 million, or 8% compared to September 30, 2014.  The mortgage loan origination business primarily focuses on retail mortgage loans originated by the Company.

Service charge income increased $2.0 million, or 24%, on a linked quarter basis.  This revenue increase was significantly influenced by the Teche and First Private acquisitions and seasonality differences between the quarters.

Assets under management at IBERIA Wealth Advisors ("IWA") were $1.2 billion at September 30, 2014. Due to seasonal influences and other factors, revenues for IWA decreased 4% on a linked quarter basis, and were down 3% compared to the third quarter of 2013.  IBERIA Financial Services revenues increased 4% on a linked quarter basis, and were up 12% compared to the third quarter of 2013.  IBERIA Capital Partners experienced a $0.3 million, or 9% decline in revenues on a linked quarter basis, due to lower investment banking income as a result of negative market conditions, partially offset by improved trading and research income.

Non-interest expense decreased $7.3 million, or 6%, on a linked quarter basis, while operating expense increased $3.4 million, or 3%.  The third quarter of 2014 included the operating expenses of Teche and First Private for a full three-month period, whereas the second quarter of 2014 included only one month of Teche's operating expenses.  The differential in operating expenses due to the timing of the consummation of the acquisitions was approximately $1.7 million.  Operating expense changes included the following on a linked-quarter basis:

  • Increased provision for unfunded commitments (included in credit/loan related expense) of $1.1 million;
  • Increased hospitalization expense of $1.0 million, or 26%;
  • Increased occupancy and equipment expense of $0.7 million, or 5%; and
  • Increased mortgage commissions of $0.4 million, or 12%; partially offset by
  • Decreased other salary and benefit expenses of $1.0 million, or 2%.

Through the third quarter of 2014, the Company achieved approximately 85% 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 $181 million, or 2%, between June 30, 2014, and September 30, 2014.  The loan portfolio covered under FDIC loss share protection at September 30, 2014, decreased $61 million, or 10%, compared to June 30, 2014.  Excluding covered and Acquired Assets, total loans increased $348 million, or 4% (16% annualized rate), during the third quarter. Legacy commercial loans increased $234 million, or 4% (which included $87 million in business banking loan growth, up 12%, or 48% annualized rate), legacy consumer loans increased $74 million, or 4%, and legacy mortgage loans increased $39 million, or 9%, during the quarter.  Loan origination and renewal growth during the third quarter of 2014 were strongest in the Houston, Acadiana, New Orleans, Dallas, and Naples markets.  Funded loan origination and renewal mix in the third quarter of 2014 was 44% fixed rate and 56% floating rate, and total loans outstanding (excluding nonaccruals) were 49% fixed and 51% floating.  Loans and commitments originated and/or renewed during the third quarter of 2014 totaled $1.2 billion (up 26% on a linked quarter basis).  Energy-related loans outstanding totaled $840 million at September 30, 2014, up $21 million, or 3%, compared to June 30, 2014, and equated to approximately 8% of total loans. The Company had no student loans outstanding at September 30, 2014.

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

 
 

Period-End Balances ($ Millions)

       
         

% Change (1)

 

Mix

 

9/30/13

6/30/14

9/30/14

 

Year/Year 

Qtr/Qtr

Annualized

 

6/30/14

9/30/14

                     

Commercial

$         5,541

$         6,387

$         6,622

 

20%

4%

15%

 

59%

60%

Consumer

1,789

1,987

2,061

 

15%

4%

15%

 

18%

19%

Mortgage

390

458

497

 

27%

9%

34%

 

4%

4%

Legacy Loans

$         7,720

$         8,832

$         9,180

 

19%

4%

16%

 

81%

83%

Acquired Loans

516

1,481

1,375

 

166%

-7%

-29%

 

14%

12%

Covered Loans

807

585

524

 

-35%

-10%

-42%

 

5%

5%

Total Loans

$         9,043

$       10,899

$       11,079

 

23%

2%

7%

 

100%

100%

                     

Deposits

Total deposits increased $397 million, or 3%, from June 30, 2014 to September 30, 2014.  Non-interest-bearing deposits increased $110 million, or 4%, and equated to 26% of total deposits at September 30, 2014.  NOW accounts decreased $39 million, or 2%, while money market and savings account volume increased $237 million, or 5%, between June 30, 2014 and September 30, 2014.  Time deposits increased $89 million, or 4% between quarter-ends.  Period-end deposit growth during the third quarter of 2014 was strongest in the Houston, New Orleans, Little Rock, Dallas, and Birmingham markets.

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

 
 

Period-End Balances ($ Millions)

       
         

% Change (1)

 

Mix

 

9/30/13

6/30/14

9/30/14

 

Year/Year

Qtr/Qtr

Annualized

 

6/30/14

9/30/14

                     

Non-interest

$         2,529

$         3,047

$         3,157

 

25%

4%

14%

 

25%

25%

NOW Accounts

2,137

2,234

2,195

 

3%

-2%

-7%

 

19%

18%

Savings/MMkt

4,421

4,685

4,922

 

11%

5%

20%

 

39%

40%

Time Deposits

1,864

2,015

2,104

 

13%

4%

18%

 

17%

17%

Total Deposits

$       10,951

$       11,981

$       12,378

 

13%

3%

13%

 

100%

100%

                     

(1) Year over Year growth includes the impact of acquisitions. 

 

On an average balance and linked quarter basis, non-interest-bearing deposits increased $309 million, or 11%, and interest-bearing deposits increased $842 million, or 10%.  The rate on average interest-bearing deposits in the third quarter of 2014 was 0.40%, an increase of five basis points on a linked quarter basis. 

Other Assets And Funding

Excess liquidity averaged $489 million in the third quarter of 2014, up $252 million, or 106%, on a linked quarter basis.  The investment portfolio increased $47 million, or 2%, to $2.2 billion on average in the third quarter of 2014.  On a period-end basis, the investment portfolio equated to $2.2 billion, or 14% of total assets at September 30, 2014, unchanged compared to June 30, 2014.  The investment portfolio had an effective duration of 3.2 years at September 30, 2014, a slight decrease compared to June 30, 2014.  The investment portfolio had a $0.6 million unrealized gain at September 30, 2014.  The average yield on investment securities decreased four basis points on a linked quarter basis to 2.20% in the third quarter of 2014.  The Company holds in its investment portfolio primarily government agency securities.  Municipal securities comprised only 7% of total investments at September 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 $12 million, or 1%, and the cost of short-term debt increased one basis point.  Average long-term debt increased $54 million, or 18%, and the cost of debt decreased 59 basis points to 2.75%.  The cost of average interest-bearing liabilities was 0.46% in the third quarter of 2014, an increase of three basis points on a linked quarter basis.

Asset Quality

Legacy assets consist of assets originated by the company and not acquired. To provide additional consistency and transparency for financial reporting of Acquired Assets, the Company divides Acquired Assets into these distinct categories:

  1. Acquired Assets that are scheduled to lose FDIC loss share coverage on October 1, 2014;
  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 June 30, 2014 and September 30, 2014, legacy NPAs decreased $7 million, or 11%, due to $6 million in former bank branches and related land that were sold out of OREO during the third quarter of 2014.  At September 30, 2014, those bank-related properties in OREO totaled $13 million, or 21% of total NPAs.  Legacy NPAs equated to 0.46% of total assets at September 30, 2014, and 0.37% of total assets excluding bank-related properties.  Loans past due 30 days or more (including non-accruing loans) increased $2 million, or 5%, and represented 0.55% of total loans at September 30, 2014, unchanged compared to June 30, 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)

 

9/30/2013

6/30/2014

9/30/2014

 

Year/Year

Qtr/Qtr

                   

Non-performing Assets

 

$   75,863

$   69,001

$   61,542

 

-19%

 

-11%

 

Note: NPAs excluding Former Bank Properties

 

65,345

50,415

48,808

 

-25%

 

-3%

 
                   

Past Due Loans

 

57,662

48,189

50,505

 

-12%

 

5%

 

Classified Assets

 

78,059

67,796

67,462

 

-14%

 

0%

 
                   

Non-performing Assets/Assets

 

0.66%

0.53%

0.46%

 

(20)

 bps 

(7)

 bps 

NPAs/(Loans + OREO)

 

0.98%

0.78%

0.67%

 

(31)

 bps 

(11)

 bps 

Classified Assets/Total Assets

 

0.66%

0.52%

0.50%

 

(16)

 bps 

(2)

 bps 

(Past Dues & Non-accruals)/Loans

 

0.75%

0.55%

0.55%

 

(20)

 bps 

0

 bps 

                   

Provision For Loan Losses

 

$    2,868

$    3,004

$    4,022

 

40%

 

34%

 

Net Charge-Offs/(Recoveries)

 

303

759

2,131

 

604%

 

181%

 

Provision Less Net Charge-Offs

 

$    2,565

$    2,245

$    1,891

 

-26%

 

-16%

 
                   

Net Charge-Offs/Average Loans

 

0.02%

0.04%

0.09%

 

7

 bps 

5

 bps 

Allowance For Loan Losses/Loans

 

0.83%

0.80%

0.79%

 

(4)

 bps 

(1)

 bps 

Allowance for Credit Losses to Total Loans

 

0.99%

0.93%

0.92%

 

(7)

 bps 

(1)

 bps 

                   

Table F provides a breakdown of Acquired Assets under the other five 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 as of October 1, 2014)

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

SFR (Losing Loss Share Coverage 10 years from Acquisition)

SOP Assets (2) 

Non-SOP Assets(2)

     ($ thousands)

             

Loans, net

$                  44,880

$                219,930

$                259,379

$                431,244

$                943,824

$             1,899,257

Other Real Estate Owned

2,688

17,947

11,327

7,946

-

39,908

Allowance for Loan Losses

(8,661)

(34,581)

(15,855)

(2,327)

(579)

(62,003)

             

Non-accrual loans

$                  15,291

$                  46,554

$                  51,937

$                  43,389

$                      449

$                157,620

Foreclosed assets

-

972

-

44

-

1,016

Other real estate owned

2,688

16,975

11,327

7,902

-

38,892

Accruing Loans More Than 90 Days Past Due 

-

-

186

-

-

186

Non-performing Assets

17,979

64,501

63,450

51,335

449

197,714

             

Total Past Due Loans

$                  15,334

$                  48,647

$               54,484

$                  46,228

$                   4,455

$                169,148

             

Non-performing Assets to Total Loans and OREO

37.80%

27.12%

23.44%

11.69%

0.05%

10.20%

Past Due and Non-accrual Loans to Loans

34.17%

22.12%

21.01%

10.72%

0.47%

8.91%

             

Provision For Loan Losses

$                        71

$                   1,093

$                      703

$                     (436)

$                      261

$                   1,692

Net Charge-Offs/(Recoveries)

-

(75)

(0)

15

135

76

Provision Less Net Charge-Offs

$                        71

$                   1,168

$                      703

$                     (451)

$                      125

$                   1,616

             

Net Charge-Offs to Average Loans

0.00%

-0.14%

0.00%

0.01%

0.12%

0.02%

Allowance for Loan Losses to Loans

19.30%

15.72%

6.11%

0.54%

0.06%

3.26%

Allowance for Credit Losses to Total Loans

19.30%

15.72%

6.11%

0.54%

0.06%

3.26%

             

Indemnification asset collectible from the FDIC and OREO 

$                        -

$                   2,936

$                  13,803

$                        -

$                                  -

$                        16,739

             

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

(2) The classification of assets acquired from Teche and First Private as SOP or Non-SOP assets is preliminary and subject to change. At September, 30, 2014, Teche loans of $57.9 million and $588.4 million are included in SOP and Non-SOP assets, respectively. First Private loans of $279.8 million have been included as Non-SOP loans at September 30, 2014. 

Capital Position

The Company maintains favorable capital strength.  At September 30, 2014, the Company reported a tangible common equity ratio of 8.47%, up one basis point compared to June 30, 2014.  At September 30, 2014, the Company's preliminary Tier 1 leverage ratio was 9.22%, down 81 basis points compared to June 30, 2014 (the decline in the Tier 1 leverage capital ratio was due to the manner in which the leverage ratio is calculated using capital in the numerator at period-end and average total assets in the denominator.) The Company's preliminary total risk-based capital ratio at September 30, 2014, was 12.42%, down one basis point compared to June 30, 2014. 

Commencing in 2015, the Company will experience a 50% phase-out of Tier 1 capital treatment for its trust preferred securities with no commensurate change in total regulatory capital.  In addition, by year-end 2014, the Company will experience the expiration of FDIC loss share protection on non-single family loans associated with three FDIC-assisted transactions.  The expiration of FDIC loss share coverage on those assets will result in increased risk weighting associated with those assets. The influence of the phase-out of Tier 1 treatment on trust preferred securities and the scheduled expiration of certain FDIC loss share coverage is estimated to reduce the Company's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk based capital ratio by approximately 36, 59, and 17 basis points, respectively, beginning in 2015.

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 third quarter of 2014.  A total of 46,692 shares remain under the currently authorized share repurchase program.

At September 30, 2014, book value per share was $54.35, up $0.49 per share compared to June 30, 2014. Tangible book value per share was $37.91, up $0.50 per share compared to June 30, 2014.  Based on the closing stock price of the Company's common stock of $63.59 per share on October 22, 2014, this price equated to 1.17 times September 30, 2014 book value and 1.68 times September 30, 2014 tangible book value per share.

On September 16, 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 2.14%.

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 $2.1 billion, based on the NASDAQ Global Select Market closing stock price on October 22, 2014.

The following 11 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.
  • 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, October 23, 2014, beginning at 8:30 a.m. Central Time by dialing 1-800-230-1096. The confirmation code for the call is 338575.  A replay of the call will be available until midnight Central Time on October 30, 2014 by dialing 1-800-475-6701. The confirmation code for the replay is 338575.  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

This release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995.  In general, forward-looking statements usually use words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology, including statements related to the expected timing of the closing of the proposed merger, the expected returns and other benefits of the proposed merger to shareholders, expected improvement in operating efficiency resulting from the proposed merger, estimated expense reductions resulting from the transaction and the timing of achievement of such reductions, the impact on and timing of the recovery of the impact on tangible book value, and the effect of the merger on IBKC's capital ratios.  Forward-looking statements represent management's beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance.  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, and there can be no assurances that: the proposed merger will close when expected, the expected returns and other benefits of the proposed merger to shareholders will be achieved, the expected operating efficiencies will result, estimated expense reductions resulting from the transaction will occur as and when expected, the impact on tangible book value will be recovered or as expected or that the effect on IBKC's capital ratios will be as expected.  Factors that could cause or contribute to such differences include, but are not limited to, the possibility that expected benefits may not materialize in the time frames expected or at all, or may be more costly to achieve; that the merger transaction may not be timely completed, if at all; that prior to completion of the merger transaction or thereafter, the parties' respective businesses may not perform as expected due to transaction-related uncertainties or other factors; that the parties are unable to implement successful integration strategies; that the required regulatory, shareholder, or other closing conditions are not satisfied in a timely manner, or at all; reputational risks and the reaction of the parties' customers to the merger transaction; diversion of management time to merger-related issues; and other factors and risk influences contained in the cautionary language included under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in IBKC's Form 10-K for the fiscal year ended December 31, 2013, and Form 10-Qs for the quarters ended March 31, 2014, June 30, 2014, and other documents subsequently filed by IBKC with the SEC.  Consequently, no forward-looking statement can be guaranteed. Neither IBKC nor Florida Bank Group undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For any forward-looking statements made in this press release or any related documents, IBKC and Florida Bank Group claim protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

This communication is being made in respect of the proposed merger transaction involving IBKC and Florida Bank Group. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed merger, IBKC will file with the SEC a registration statement on Form S-4 that will include a proxy statement/prospectus for the shareholders of Florida Bank Group. IBKC also plans to file other documents with the SEC regarding the proposed merger transaction with Florida Bank Group.  Florida Bank Group will mail the final proxy statement/prospectus to its shareholders. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION AND ANY OTHER RELEVANT DOCUMENTS CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. The proxy statement/prospectus, as well as other filings containing information about IBKC and Florida Bank Group, will be available without charge, at the SEC's Internet site (http://www.sec.gov). Copies of the proxy statement/prospectus and the filings with the SEC that will be incorporated by reference in the proxy statement/prospectus can also be obtained, when available, without charge, from  IBKC's website (http://www.iberiabank.com), under the heading "Investor Information" and on Florida Bank Group's website, at (www.flbank.com).

IBKC and Florida Bank Group, and certain of their respective directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of Florida Bank Group in respect of the proposed merger transaction. Information regarding the directors and executive officers of IBKC is set forth in the definitive proxy statement for IBKC's 2014 annual meeting of shareholders, as filed with the SEC on April 7, 2014, and in Forms 3, 4 and 5 filed with the SEC by its officers and directors.  Information regarding the directors and executive officers of Florida Bank Group who may be deemed participants in the solicitation of the shareholders of Florida Bank Group in connection with the proposed transaction will be included in the proxy statement/prospectus for Florida Bank Group's special meeting of shareholders, which will be filed by IBKC with the SEC.  Additional information regarding the interests of such participants will be included in the proxy statement/prospectus and other relevant documents regarding the proposed merger transaction filed with the SEC when they become available.

 

Table 1 - IBERIABANK CORPORATION

 

FINANCIAL HIGHLIGHTS

                       
                       
     

 For The Quarter Ended 

 

 For The Quarter Ended 

     

 September 30, 

 

 June 30, 

     

2014

 

2013

 

% Change

 

2014

 

% Change

                       

Income Data (in thousands):

                   
 

Net Interest Income

 

$              121,041

 

$                  97,452

 

24%

 

$             108,979

 

11%

 

Net Interest Income  (TE)   (1)

 

123,175

 

99,773

 

23%

 

111,170

 

11%

 

Net Income 

 

29,744

 

23,192

 

28%

 

18,548

 

60%

 

Earnings Available to Common Shareholders- Basic

 

29,744

 

23,192

 

28%

 

18,548

 

60%

 

Earnings Available to Common Shareholders- Diluted

 

29,296

 

22,767

 

29%

 

18,250

 

61%

                       

Per Share Data:

                   
 

Earnings Available to Common Shareholders - Basic

 

$                     0.89

 

$                       0.78

 

14%

 

$                    0.60

 

48%

 

Earnings Available to Common Shareholders - Diluted

 

0.89

 

0.78

 

14%

 

0.60

 

48%

 

Operating Earnings (Non-GAAP) 

 

1.00

 

0.83

 

21%

 

0.96

 

4%

 

Book Value 

 

54.35

 

51.30

 

6%

 

53.86

 

1%

 

Tangible Book Value (2)

 

37.91

 

37.00

 

2%

 

37.41

 

1%

 

Cash Dividends

 

0.34

 

0.34

 

-

 

0.34

 

-

 

Closing Stock Price

 

62.51

 

53.61

 

17%

 

69.19

 

(10%)

                       

Key Ratios: (3)

                   
 

Operating Ratios:

                 
 

Return on Average Assets

 

0.76%

 

0.71%

     

0.53%

   
 

Return on Average Common Equity

 

6.52%

 

6.08%

     

4.56%

   
 

Return on Average Tangible Common Equity (2)

 

9.68%

 

8.74%

     

6.62%

   
 

Net Interest Margin  (TE)  (1)

 

3.47%

 

3.37%

     

3.48%

   
 

Efficiency Ratio

 

72.0%

 

76.9%

     

81.2%

   
 

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

 

66.4%

 

73.0%

     

68.3%

   
 

Full-time Equivalent Employees

 

2,703

 

2,559

     

2,760

   
                       
 

Capital Ratios:

                 
 

Tangible Common Equity Ratio (Non-GAAP)

 

8.47%

 

8.64%

     

8.46%

   
 

Tangible Common Equity to Risk-Weighted Assets

 

10.34%

 

10.93%

     

10.33%

   
 

Tier 1 Leverage Ratio

 

9.22%

 

9.65%

     

10.03%

   
 

Tier 1 Capital Ratio

 

11.23%

 

12.02%

     

11.23%

   
 

Total Risk Based Capital Ratio

 

12.42%

 

13.28%

     

12.43%

   
 

Common Stock Dividend Payout Ratio

 

38.2%

 

43.6%

     

61.2%

   
                       
 

Asset Quality Ratios:

                 
 

Excluding FDIC Covered Assets and Acquired Assets

                 
 

Non-performing Assets to Total Assets (4)

 

0.46%

 

0.66%

     

0.53%

   
 

Allowance for Loan Losses to Loans

 

0.79%

 

0.83%

     

0.80%

   
 

Net Charge-offs to Average Loans 

 

0.09%

 

0.02%

     

0.04%

   
 

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

 

0.67%

 

0.98%

     

0.78%

   
                       
     

 For The Quarter Ended 

 

 For The Quarter Ended 

     

 September 30, 

 

 June 30, 

 

 March 31, 

 

 December 31, 

     

2014

 

2014

 

2014

 

2014

 

2013

Balance Sheet Summary (in thousands):

 

End of Period

 

Average

 

Average

 

Average

 

Average

 

Excess Liquidity (5)

 

$              410,860

 

$                489,221

 

$                    237,712

 

$             114,621

 

$                 204,970

 

Total Investment Securities

 

2,224,348

 

2,168,345

 

2,120,988

 

2,116,166

 

2,131,804

 

Loans, Net of Unearned Income

 

11,079,199

 

11,008,163

 

10,003,753

 

9,551,351

 

9,172,490

 

Loans, Net of Unearned Income, 

                   
 

   Excluding Covered Assets and Acquired Assets

 

9,179,942

 

9,019,127

 

8,645,109

 

8,324,676

 

7,936,271

 

Total Assets

 

15,516,609

 

15,478,406

 

14,041,868

 

13,362,918

 

13,115,171

 

Total Deposits

 

12,377,775

 

12,223,027

 

11,071,698

 

10,816,122

 

10,835,263

 

Total Shareholders' Equity

 

1,817,548

 

1,808,719

 

1,632,355

 

1,557,006

 

1,535,043

                       

(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)

September 30,

 

June 30,

 
 

2014

 

2013

 

% Change

 

2014

 

% Change

 

ASSETS

                   

Cash and Due From Banks

$            257,147

 

$            260,742

 

(1.4%)

 

$          286,615

 

(10.3%)

 

Interest-bearing Deposits in Banks

410,860

 

292,706

 

40.4%

 

381,955

 

7.6%

 

   Total Cash and Equivalents

668,007

 

553,448

 

20.7%

 

668,570

 

(0.1%)

 

Investment Securities Available for Sale

2,103,828

 

1,964,389

 

7.1%

 

2,008,953

 

4.7%

 

Investment Securities Held to Maturity

120,520

 

155,678

 

(22.6%)

 

132,245

 

(8.9%)

 

   Total Investment Securities

2,224,348

 

2,120,067

 

4.9%

 

2,141,198

 

3.9%

 

Mortgage Loans Held for Sale

148,530

 

108,285

 

37.2%

 

178,380

 

(16.7%)

 

Loans, Net of Unearned Income

11,079,199

 

9,043,037

 

22.5%

 

10,898,420

 

1.7%

 

Allowance for Loan Losses

(134,540)

 

(148,545)

 

(9.4%)

 

(133,519)

 

0.8%

 

   Loans, Net

10,944,659

 

8,894,492

 

23.0%

 

10,764,901

 

1.7%

 

Loss Share Receivable

94,712

 

204,885

 

(53.8%)

 

120,532

 

(21.4%)

 

Premises and Equipment

307,868

 

289,157

 

6.5%

 

307,090

 

0.3%

 

Goodwill and Other Intangibles

551,611

 

426,384

 

29.4%

 

550,874

 

0.1%

 

Other Assets

576,874

 

548,359

 

5.2%

 

593,496

 

(2.8%)

 

   Total Assets

$      15,516,609

 

$       13,145,077

 

18.0%

 

$     15,325,041

 

1.3%

 
                     

LIABILITIES AND SHAREHOLDERS' EQUITY

                   

Noninterest-bearing Deposits

$         3,157,453

 

$         2,529,296

 

24.8%

 

$       3,047,349

 

3.6%

 

NOW Accounts

2,194,803

 

2,136,624

 

2.7%

 

2,233,993

 

(1.8%)

 

Savings and Money Market Accounts

4,921,510

 

4,420,776

 

11.3%

 

4,685,367

 

5.0%

 

Certificates of Deposit

2,104,009

 

1,864,068

 

12.9%

 

2,014,438

 

4.4%

 

   Total Deposits

12,377,775

 

10,950,764

 

13.0%

 

11,981,147

 

3.3%

 

Short-term Borrowings

553,000

 

-

 

100.0%

 

738,000

 

(25.1%)

 

Securities Sold Under Agreements to Repurchase

259,783

 

258,850

 

0.4%

 

296,741

 

(12.5%)

 

Trust Preferred Securities

111,862

 

111,862

 

-

 

111,862

 

-

 

Other Long-term Debt

243,707

 

169,239

 

44.0%

 

253,885

 

(4.0%)

 

Other Liabilities

152,934

 

129,094

 

18.5%

 

144,100

 

6.1%

 

   Total Liabilities

13,699,061

 

11,619,809

 

17.9%

 

13,525,735

 

1.3%

 

Total Shareholders' Equity

1,817,548

 

1,525,268

 

19.2%

 

1,799,306

 

1.0%

 

   Total Liabilities and Shareholders' Equity

$      15,516,609

 

$       13,145,077

 

18.0%

 

$     15,325,041

 

1.3%

 
                     
                     

BALANCE SHEET (Average)

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 
 

2014

 

2014

 

2014

 

2013

 

2013

 

ASSETS

                   

Cash and Due From Banks

$            229,556

 

$            237,631

 

$                 234,924

 

$          225,527

 

$              219,113

 

Interest-bearing Deposits in Banks

489,221

 

237,712

 

114,621

 

204,970

 

213,092

 

Investment Securities

2,168,345

 

2,120,988

 

2,116,166

 

2,131,804

 

2,096,974

 

Mortgage Loans Held for Sale

165,791

 

140,122

 

96,019

 

112,499

 

119,343

 

Loans, Net of Unearned Income

11,008,163

 

10,003,753

 

9,551,351

 

9,172,490

 

8,975,347

 

Allowance for Loan Losses

(133,443)

 

(132,049)

 

(139,726)

 

(148,030)

 

(160,994)

 

Loss Share Receivable

111,383

 

131,375

 

154,634

 

188,932

 

228,047

 

Other Assets

1,439,390

 

1,302,336

 

1,234,930

 

1,226,979

 

1,253,513

 

   Total Assets

$      15,478,406

 

$       14,041,868

 

$            13,362,918

 

$     13,115,171

 

$        12,944,435

 
                     

LIABILITIES AND SHAREHOLDERS' EQUITY

                   

Non-interest-bearing Deposits

$         3,057,513

 

$         2,748,468

 

$              2,623,075

 

$       2,572,599

 

$           2,338,772

 

NOW Accounts

2,228,378

 

2,229,264

 

2,230,745

 

2,145,036

 

2,257,050

 

Savings and Money Market Accounts

4,877,051

 

4,372,855

 

4,296,360

 

4,329,985

 

4,213,765

 

Certificates of Deposit

2,060,085

 

1,721,111

 

1,665,943

 

1,787,643

 

1,918,669

 

   Total Deposits

12,223,027

 

11,071,698

 

10,816,122

 

10,835,263

 

10,728,256

 

Short-term Borrowings

627,192

 

632,778

 

285,383

 

49,946

 

1,630

 

Securities Sold Under Agreements to Repurchase

292,677

 

274,681

 

299,106

 

285,745

 

288,029

 

Trust Preferred Securities

111,862

 

111,862

 

111,862

 

111,862

 

111,862

 

Long-term Debt

247,108

 

192,845

 

168,367

 

169,063

 

170,452

 

Other Liabilities

167,821

 

125,649

 

125,072

 

128,249

 

130,052

 

   Total Liabilities

13,669,687

 

12,409,513

 

11,805,912

 

11,580,128

 

11,430,280

 

Total Shareholders' Equity

1,808,719

 

1,632,355

 

1,557,006

 

1,535,043

 

1,514,155

 

   Total Liabilities and Shareholders' Equity

$      15,478,406

 

$       14,041,868

 

$            13,362,918

 

$     13,115,171

 

$        12,944,435

 

 

Table 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

                   
 

For The Three Months Ended

INCOME STATEMENT

September 30,

 

June 30,

 

2014

 

2013

 

% Change

 

2014

 

% Change

                   

Interest Income

$     133,167

 

$     108,512

 

22.7%

 

$      119,220

 

11.7%

Interest Expense

12,126

 

11,060

 

9.6%

 

10,241

 

18.4%

   Net Interest Income

121,041

 

97,452

 

24.2%

 

108,979

 

11.1%

Provision for Loan Losses

5,714

 

2,014

 

183.7%

 

4,748

 

20.3%

   Net Interest Income After Provision for Loan Losses

115,327

 

95,438

 

20.8%

 

104,231

 

10.6%

Service Charges

10,205

 

7,512

 

35.8%

 

8,203

 

24.4%

ATM / Debit Card Fee Income

3,287

 

2,476

 

32.8%

 

2,937

 

11.9%

BOLI Proceeds and Cash Surrender Value Income

1,047

 

908

 

15.3%

 

935

 

11.9%

Mortgage Income

12,814

 

15,202

 

(15.7%)

 

17,957

 

(28.6%)

Gain (Loss) on Sale of Investments, Net

582

 

13

 

4343.2%

 

8

 

6797.3%

Title Revenue

5,577

 

5,482

 

1.7%

 

5,262

 

6.0%

Broker Commissions

5,297

 

3,950

 

34.1%

 

5,479

 

(3.3%)

Other Non-interest Income

6,854

 

7,720

 

(11.2%)

 

7,182

 

(4.6%)

   Total Non-interest Income

45,663

 

43,263

 

5.5%

 

47,963

 

(4.8%)

Salaries and Employee Benefits

64,934

 

59,234

 

9.6%

 

68,846

 

(5.7%)

Occupancy and Equipment

14,883

 

14,572

 

2.1%

 

16,104

 

(7.6%)

Amortization of Acquisition Intangibles

1,493

 

1,179

 

26.6%

 

1,244

 

20.1%

Other Non-interest Expense

38,750

 

33,166

 

16.8%

 

41,181

 

(5.9%)

   Total Non-interest Expense

120,060

 

108,152

 

11.0%

 

127,375

 

(5.7%)

   Income Before Income Taxes

40,930

 

30,549

 

34.0%

 

24,819

 

64.9%

Income Tax Expense 

11,186

 

7,357

 

52.0%

 

6,271

 

78.4%

   Net Income 

$        29,744

 

$       23,192

 

28.3%

 

$         18,548

 

60.4%

   Preferred Stock Dividends

-

 

-

 

-

 

-

 

-

   Earnings Available to Common Shareholders - Basic

29,744

 

23,192

 

28.3%

 

18,548

 

60.4%

   Earnings Allocated to Unvested Restricted Stock

(448)

 

(425)

 

5.6%

 

(298)

 

50.3%

   Earnings Available to Common Shareholders - Diluted 

$        29,296

 

$       22,767

 

28.7%

 

$         18,250

 

60.5%

Earnings Per Share, Diluted

$            0.89

 

$            0.78

 

13.8%

 

$             0.60

 

48.0%

Impact of Non-Operating Items (Non-GAAP)

$            0.11

 

$            0.05

 

131.3%

 

$             0.36

 

(68.4%)

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

$            1.00

 

$            0.83

 

20.8%

 

$             0.96

 

4.2%

                   

NUMBER OF SHARES OUTSTANDING

                 

Basic Shares - All Classes  (Average)

33,309,881

 

29,631,799

 

12.4%

 

30,787,520

 

8.2%

Diluted Shares - Common Shareholders (Average)

32,926,969

 

29,147,232

 

13.0%

 

30,386,105

 

8.4%

Book Value Shares  (Period End)  (1)

33,440,859

 

29,734,459

 

12.5%

 

33,410,082

 

0.1%

                   
 

2014

 

2013

INCOME STATEMENT

Third

 

Second

 

First

 

Fourth

 

Third

 

Quarter

 

Quarter 

 

Quarter

 

Quarter

 

Quarter

                   

Interest Income

$     133,167

 

$     119,220

 

$      114,232

 

$      114,092

 

$      108,512

Interest Expense

12,126

 

10,241

 

9,824

 

10,654

 

11,060

   Net Interest Income

121,041

 

108,979

 

104,408

 

103,438

 

97,452

 Provision for Loan Losses

5,714

 

4,748

 

2,103

 

4,700

 

2,014

   Net Interest Income After Provision for Loan Losses

115,327

 

104,231

 

102,305

 

98,738

 

95,438

Total Non-interest Income

45,663

 

47,963

 

35,681

 

38,715

 

43,263

Total Non-interest Expense

120,060

 

127,375

 

107,428

 

102,674

 

108,152

   Income Before Income Taxes

40,930

 

24,819

 

30,558

 

34,779

 

30,549

Income Tax Expense 

11,186

 

6,271

 

8,163

 

9,175

 

7,357

   Net Income

$        29,744

 

$       18,548

 

$        22,395

 

$         25,604

 

$         23,192

   Preferred Stock Dividends

-

 

-

 

-

 

-

 

-

   Earnings Available to Common Shareholders - Basic

29,744

 

18,548

 

22,395

 

25,604

 

23,192

   Earnings Allocated to Unvested Restricted Stock

(448)

 

(298)

 

(405)

 

(456)

 

(425)

   Earnings Available to Common Shareholders - Diluted

$        29,296

 

$       18,250

 

$        21,990

 

$         25,148

 

$         22,767

                   

Earnings Per Share, Basic

$            0.89

 

$            0.60

 

$            0.75

 

$             0.86

 

$             0.78

                   

Earnings Per Share, Diluted 

$            0.89

 

$            0.60

 

$            0.75

 

$             0.86

 

$             0.78

                   

Book Value Per Common Share

$          54.35

 

$         53.86

 

$          52.04

 

$           51.40

 

$           51.30

Tangible Book Value Per Common Share

$          37.91

 

$         37.41

 

$          37.59

 

$           37.17

 

$           37.00

                   

Return on Average Assets

0.76%

 

0.53%

 

0.68%

 

0.77%

 

0.71%

Return on Average Common Equity

6.52%

 

4.56%

 

5.83%

 

6.62%

 

6.08%

Return on Average Tangible Common Equity

9.68%

 

6.62%

 

8.36%

 

9.43%

 

8.74%

                   
                   

(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 Nine Months Ended

INCOME STATEMENT

September 30,

 

2014

 

2013

 

% Change

           

Interest Income

$     366,619

 

$     323,105

 

13.5%

Interest Expense

32,192

 

36,299

 

(11.3%)

   Net Interest Income

334,427

 

286,806

 

16.6%

Provision for Loan Losses

12,565

 

445

 

N/M

   Net Interest Income After Provision for Loan Losses

321,862

 

286,361

 

12.4%

Service Charges

25,421

 

21,415

 

18.7%

ATM / Debit Card Fee Income

8,691

 

7,017

 

23.9%

BOLI Proceeds and Cash Surrender Value Income

4,423

 

2,747

 

61.0%

Mortgage Income

40,903

 

51,841

 

(21.1%)

Gain on Sale of Investments, net

609

 

2,315

 

(73.7%)

Title Revenue

15,007

 

16,199

 

(7.4%)

Broker Commissions

14,823

 

11,347

 

30.6%

Other Non-interest Income

19,430

 

17,361

 

11.9%

   Total Non-interest Income

129,307

 

130,242

 

(0.7%)

Salaries and Employee Benefits

193,641

 

185,578

 

4.3%

Occupancy and Equipment

44,977

 

44,050

 

2.1%

Amortization of Acquisition Intangibles

3,955

 

3,543

 

11.6%

Other Non-interest Expense

112,290

 

137,239

 

(18.2%)

   Total Non-interest Expense

354,863

 

370,410

 

(4.2%)

   Income Before Income Taxes

96,306

 

46,193

 

108.5%

Income Tax Expense 

25,619

 

6,694

 

(282.7%)

   Net Income

$        70,687

 

$       39,499

 

79.0%

   Preferred Stock Dividends

-

 

-

 

-

   Earnings Available to Common Shareholders - Basic

$        70,687

 

$       39,499

 

79.0%

   Earnings Allocated to Unvested Restricted Stock

(1,159)

 

(744)

 

55.7%

   Earnings Available to Common Shareholders - Diluted

69,528

 

38,755

 

79.4%

Earnings Per Share, diluted

$            2.25

 

$            1.33

 

68.6%

 

Table 5 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

                     

LOANS

 

September 30,

 

June 30,

   

2014

 

2013

 

% Change

 

2014

 

% Change

Residential Mortgage Loans

 

$     1,069,963

 

$        563,455

 

89.9%

 

$     1,065,873

 

0.4%

Commercial Loans:

                   

   Real Estate

 

4,279,575

 

3,779,839

 

13.2%

 

4,271,669

 

0.2%

   Business

 

3,227,332

 

2,684,244

 

20.2%

 

3,108,649

 

3.8%

      Total Commercial Loans

 

7,506,907

 

6,464,083

 

16.1%

 

7,380,318

 

1.7%

Consumer Loans:

                   

   Indirect Automobile

 

394,691

 

369,755

 

6.7%

 

392,355

 

0.6%

   Home Equity

 

1,565,878

 

1,281,014

 

22.2%

 

1,525,758

 

2.6%

   Automobile

 

140,287

 

87,342

 

60.6%

 

125,202

 

12.0%

   Credit Card Loans

 

69,352

 

60,637

 

14.4%

 

65,892

 

5.3%

   Other 

 

332,121

 

216,751

 

53.2%

 

343,023

 

(3.2%)

      Total Consumer Loans

 

2,502,329

 

2,015,499

 

24.2%

 

2,452,230

 

2.0%

      Total Loans 

 

11,079,199

 

9,043,037

 

22.5%

 

10,898,421

 

1.7%

Allowance for Loan Losses

 

(134,540)

 

(148,545)

     

(133,519)

   

   Loans, Net

 

$   10,944,659

 

$     8,894,492

     

$   10,764,902

   
                     

Reserve for Unfunded Commitments 

 

(12,099)

 

(11,959)

 

1.2%

 

(11,260)

 

7.4%

Allowance for Credit Losses

 

(146,639)

 

(160,503)

 

(8.6%)

 

(144,778)

 

1.3%

                     

ASSET QUALITY DATA (1)

 

September 30,

 

June 30,

   

2014

 

2013

 

% Change

 

2014

 

% Change

Non-accrual Loans

 

$        195,680

 

$        341,691

 

(42.7%)

 

$        208,673

 

(6.2%)

Foreclosed Assets

 

1,035

 

1,592

 

(35.0%)

 

1,186

 

(12.8%)

Other Real Estate Owned

 

62,351

 

127,395

 

(51.1%)

 

83,293

 

(25.1%)

Accruing Loans More Than 90 Days Past Due 

 

190

 

10,844

 

(98.2%)

 

1,095

 

(82.6%)

Total Non-performing Assets

 

$        259,256

 

$        481,522

 

(46.2%)

 

$        294,247

 

(11.9%)

                     

Loans 30-89 Days Past Due

 

$          23,784

 

$           26,445

 

(10.1%)

 

$          31,875

 

(25.4%)

                     

Non-performing Assets to Total Assets 

 

1.67%

 

3.66%

 

(54.4%)

 

1.92%

 

(13.1%)

Non-performing Assets to Total Loans and OREO 

 

2.32%

 

5.25%

 

(55.7%)

 

2.68%

 

(13.2%)

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

 

68.8%

 

42.1%

 

63.2%

 

63.7%

 

8.0%

Allowance for Loan Losses to Non-performing Assets

 

51.9%

 

30.8%

 

68.4%

 

45.4%

 

14.5%

Allowance for Loan Losses to Total Loans

 

1.21%

 

1.64%

 

(26.1%)

 

1.23%

 

(0.9%)

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

 

74.9%

 

45.5%

 

64.4%

 

69.0%

 

8.5%

Allowance for Credit Losses to Non-performing Assets 

 

56.6%

 

33.3%

 

69.7%

 

49.2%

 

15.0%

Allowance for Credit Losses to Total Loans 

 

1.32%

 

1.77%

 

(25.4%)

 

1.33%

 

(0.4%)

                     

Year to Date Charge-offs 

 

$             8,571

 

$             6,938

 

23.5%

 

$             5,311

 

N/M

Year to Date Recoveries

 

(4,739)

 

(4,353)

 

8.9%

 

(3,686)

 

N/M

Year to Date Net Charge-offs

 

$             3,832

 

$             2,585

 

48.3%

 

$             1,625

 

N/M

Quarter to Date Net Charge-offs

 

$             2,207

 

$                239

 

825.0%

 

$                857

 

157.6%

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

0.08%

 

0.01%

 

654.1%

 

0.03%

 

131.5%

Year to Date Net Charge-offs to Average Loans

 

0.05%

 

0.04%

 

27.4%

 

0.03%

 

50.0%

                     

(1)For purposes of this table, non-performing assets include all loans meeting non-performing asset criteria, 

     including assets acquired in FDIC-assisted transactions.

(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 6 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

                     

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

September 30,

 

June 30,

   

2014

 

2013

 

% Change

 

2014

 

% Change

Residential Mortgage Loans

 

$        497,075

 

$        389,912

 

27.5%

 

$        457,991

 

8.5%

Commercial Loans:

                   

   Real Estate

 

3,527,612

 

2,951,465

 

19.5%

 

3,427,165

 

2.9%

   Business

 

3,093,873

 

2,589,405

 

19.5%

 

2,960,146

 

4.5%

      Total Commercial Loans

 

6,621,485

 

5,540,870

 

19.5%

 

6,387,311

 

3.7%

Consumer Loans:

                   

   Indirect Automobile

 

394,078

 

367,308

 

7.3%

 

391,481

 

0.7%

   Home Equity

 

1,229,998

 

1,072,671

 

14.7%

 

1,172,748

 

4.9%

   Automobile

 

123,446

 

86,680

 

42.4%

 

106,875

 

15.5%

   Credit Card Loans

 

68,731

 

59,936

 

14.7%

 

65,260

 

5.3%

   Other 

 

245,129

 

202,196

 

21.2%

 

250,281

 

(2.1%)

      Total Consumer Loans

 

2,061,382

 

1,788,791

 

15.2%

 

1,986,645

 

3.8%

      Total Loans 

 

9,179,942

 

7,719,573

 

18.9%

 

8,831,947

 

3.9%

Allowance for Loan Losses

 

(72,537)

 

(64,165)

     

(70,647)

   

   Loans, Net

 

$     9,107,405

 

$     7,655,408

     

$     8,761,298

   
                     

Reserve for Unfunded Commitments

 

(12,099)

 

(11,959)

 

1.2%

 

(11,260)

 

7.4%

Allowance for Credit Losses

 

(84,636)

 

(76,124)

 

11.2%

 

(81,907)

 

3.3%

                     

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

 

September 30,

 

June 30,

   

2014

 

2013

 

% Change

 

2014

 

% Change

Non-accrual Loans

 

$          38,060

 

$           43,838

 

(13.2%)

 

$          34,187

 

11.3%

Foreclosed Assets

 

19

 

42

 

(55.3%)

 

113

 

(83.6%)

Other Real Estate Owned

 

23,459

 

30,565

 

(23.2%)

 

34,681

 

(32.4%)

Accruing Loans More Than 90 Days Past Due 

 

4

 

1,418

 

(99.7%)

 

20

 

(77.8%)

Total Non-performing Assets

 

$          61,542

 

$           75,863

 

(18.9%)

 

$          69,001

 

(10.8%)

                     

Loans 30-89 Days Past Due

 

$          12,441

 

$           12,406

 

0.3%

 

$          13,982

 

(11.0%)

                     

Troubled Debt Restructurings (2)

 

3,421

 

19,941

 

(82.8%)

 

5,413

 

(36.8%)

Current Troubled Debt Restructurings (3)

 

1,093

 

1,468

 

(25.5%)

 

1,189

 

(8.0%)

                     

Non-performing Assets to Total Assets 

 

0.46%

 

0.66%

 

(30.7%)

 

0.53%

 

(13.3%)

Non-performing Assets to Total Loans and OREO 

 

0.67%

 

0.98%

 

(31.7%)

 

0.78%

 

(14.1%)

Allowance for Loan Losses to Non-performing Loans (4)

 

190.6%

 

141.8%

 

34.4%

 

206.5%

 

(7.7%)

Allowance for Loan Losses to Non-performing Assets

 

117.9%

 

84.6%

 

39.4%

 

102.4%

 

15.1%

Allowance for Loan Losses to Total Loans

 

0.79%

 

0.83%

 

(4.9%)

 

0.80%

 

(1.2%)

Allowance for Credit Losses to Non-performing Loans (1) (4)

 

222.3%

 

168.2%

 

32.2%

 

239.4%

 

(7.1%)

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

 

137.5%

 

100.3%

 

37.1%

 

118.7%

 

15.9%

Allowance for Credit Losses to Total Loans (1)

 

0.92%

 

0.99%

 

(6.5%)

 

0.93%

 

(0.6%)

                     

Year to Date Charge-offs 

 

$             8,242

 

$             6,785

 

21.5%

 

$             5,198

 

N/M

Year to Date Recoveries

 

(4,338)

 

(4,283)

 

1.3%

 

(3,425)

 

N/M

Year to Date Net Charge-offs (Recoveries)

 

$             3,904

 

$             2,502

 

56.0%

 

$             1,773

 

N/M

Quarter to Date Net Charge-offs (Recoveries)

 

$             2,131

 

$                303

 

N/M

 

$                759

 

180.8%

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

0.09%

 

0.02%

 

N/M

 

0.04%

 

144.4%

Year to Date Net Charge-offs to Average Loans

 

0.06%

 

0.05%

 

30.9%

 

0.04%

 

40.3%

                     

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

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

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

(4)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)

 

September 30,

 

June 30,

   

2014

 

2013

 

% Change

 

2014

 

% Change

Residential Mortgage Loans

 

$        572,888

 

$        173,543

 

230.1%

 

$        607,882

 

(5.8%)

Commercial Loans:

                   

   Real Estate

 

751,963

 

828,374

 

(9.2%)

 

844,504

 

(11.0%)

   Business

 

133,459

 

94,839

 

40.7%

 

148,503

 

(10.1%)

      Total Commercial Loans

 

885,422

 

923,213

 

(4.1%)

 

993,007

 

(10.8%)

Consumer Loans:

                   

   Indirect Automobile

 

613

 

2,447

 

(74.9%)

 

874

 

(29.9%)

   Home Equity

 

335,880

 

208,343

 

61.2%

 

353,010

 

(4.9%)

   Automobile

 

16,841

 

662

 

2443.5%

 

18,327

 

(8.1%)

   Credit Card Loans

 

621

 

701

 

(11.5%)

 

632

 

(1.8%)

   Other 

 

86,992

 

14,555

 

497.7%

 

92,742

 

(6.2%)

      Total Consumer Loans

 

440,947

 

226,708

 

94.5%

 

465,585

 

(5.3%)

      Total Loans Receivable

 

1,899,257

 

1,323,464

 

43.5%

 

2,066,474

 

(8.1%)

Allowance for Loan Losses

 

(62,003)

 

(84,380)

     

(62,872)

   

   Loans, Net

 

$     1,837,254

 

$     1,239,084

     

$     2,003,602

   
                     
                     

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

 

September 30,

 

June 30,

   

2014

 

2013

 

% Change

 

2014

 

% Change

Non-accrual Loans

 

$        157,620

 

$        297,853

 

(47.1%)

 

$        174,486

 

(9.7%)

Foreclosed Assets

 

1,016

 

1,550

 

(34.4%)

 

1,073

 

(5.3%)

Other Real Estate Owned

 

38,892

 

96,830

 

(59.8%)

 

48,612

 

(20.0%)

Accruing Loans More Than 90 Days Past Due 

 

186

 

9,426

 

(98.0%)

 

1,075

 

(82.7%)

Total Non-performing Assets

 

$        197,714

 

$        405,659

 

(51.3%)

 

$        225,246

 

(12.2%)

                     

Loans 30-89 Days Past Due

 

$          11,343

 

$           14,039

 

(19.2%)

 

$          17,893

 

(36.6%)

                     

Non-performing Assets to Total Assets 

 

9.84%

 

25.19%

 

(60.9%)

 

10.23%

 

(3.8%)

Non-performing Assets to Total Loans and OREO 

 

10.20%

 

28.53%

 

(64.3%)

 

10.64%

 

(4.2%)

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

 

39.3%

 

27.5%

 

43.1%

 

35.8%

 

9.7%

Allowance for Loan Losses to Non-performing Assets

 

31.4%

 

20.8%

 

50.8%

 

27.9%

 

12.4%

Allowance for Loan Losses to Total Loans

 

3.26%

 

6.38%

 

(48.8%)

 

3.04%

 

7.3%

                     

Year to Date Charge-offs 

 

$                329

 

$                153

 

114.9%

 

$                113

 

 N/M 

Year to Date Recoveries

 

(401)

 

(70)

 

474.6%

 

(261)

 

 N/M 

Year to Date Net Charge-offs (Recoveries)

 

(72)

 

83

 

(187.2%)

 

(148)

 

 N/M 

Quarter to Date Net Charge-offs (Recoveries)

 

76

 

(64)

 

218.6%

 

98

 

(22.8%)

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

0.02%

 

-0.02%

 

188.6%

 

0.03%

 

(47.9%)

Year to Date Net Charge-offs to Average Loans

 

-0.01%

 

0.01%

 

(184.9%)

 

-0.02%

 

(72.6%)

                     

(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)

   
                     
                     
 

3Q 2013

4Q 2013

1Q 2014

2Q 2014

3Q 2014

 

Average Balance

Yield

Average Balance

Yield

Average Balance

Yield

Average Balance

Yield

Average Balance

Yield

                     

Non Covered Loans, net

$     8,104

4.39%

$  8,421

4.43%

$  8,860

4.38%

$  9,379

4.30%

$10,450

4.37%

                     

Covered Loans, net

$         872

13.90%

$      751

19.46%

$      691

15.00%

$      625

14.70%

$      559

21.64%

FDIC Indemnification Asset

228

-39.25%

189

-60.36%

155

-49.83%

131

-51.22%

111

-88.25%

Covered Loans, net of Indemnification Asset Amortization

$     1,100

2.88%

$      940

3.43%

$      846

3.18%

$      756

3.16%

$      670

3.07%

 

Table 8 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

Taxable Equivalent Basis

(dollars in thousands)

                             
                             
       

For The Quarter Ended

   

September 30, 2014

 

June 30, 2014

 

September 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

 

$              14,375

 

$       1,110,718

 

5.18%

 

$          702,475

 

5.29%

 

$          545,017

 

5.05%

Commercial Loans (TE) (1)

 

97,321

 

7,468,004

 

5.17%

 

7,113,450

 

4.84%

 

6,443,410

 

5.49%

Consumer and Other Loans

 

33,150

 

2,429,441

 

5.41%

 

2,187,828

 

5.17%

 

1,986,920

 

4.84%

Total Loans 

 

144,846

 

11,008,163

 

5.22%

 

10,003,753

 

4.94%

 

8,975,347

 

5.32%

Loss Share Receivable

 

(25,120)

 

111,383

 

-88.25%

 

131,375

 

-51.22%

 

228,047

 

-39.25%

       Total Loans and Loss Share Receivable

 

119,726

 

11,119,546

 

4.29%

 

10,135,128

 

4.22%

 

9,203,394

 

4.21%

Mortgage Loans Held for Sale

 

1,594

 

165,791

 

3.84%

 

140,122

 

4.21%

 

119,343

 

4.32%

Investment  Securities (TE) (1)(2)

 

10,994

 

2,137,736

 

2.20%

 

2,109,255

 

2.24%

 

2,093,549

 

1.98%

Other  Earning Assets

 

853

 

567,895

 

0.60%

 

308,712

 

0.82%

 

258,362

 

0.89%

Total  Earning Assets

 

133,167

 

13,990,968

 

3.81%

 

12,693,217

 

3.80%

 

11,674,648

 

3.74%

 Allowance for Loan Losses 

     

(133,443)

     

(132,049)

     

(160,994)

   

Non-earning Assets

     

1,620,881

     

1,480,700

     

1,430,781

   

Total Assets

     

$     15,478,406

     

$     14,041,868

     

$     12,944,435

   
                             

LIABILITIES AND SHAREHOLDERS' EQUITY

                           

Interest-bearing liabilities

                           

   Deposits:

                           

      NOW Accounts

 

$                 1,546

 

$       2,228,378

 

0.28%

 

$       2,229,264

 

0.25%

 

$       2,257,050

 

0.34%

      Savings and Money Market Accounts

 

3,588

 

4,877,051

 

0.29%

 

4,372,855

 

0.26%

 

4,213,764

 

0.25%

      Certificates of Deposit

 

4,067

 

2,060,085

 

0.78%

 

1,721,111

 

0.72%

 

1,918,669

 

0.83%

         Total Interest-bearing Deposits

 

9,201

 

9,165,514

 

0.40%

 

8,323,230

 

0.35%

 

8,389,483

 

0.40%

   Short-term Borrowings

 

406

 

919,869

 

0.17%

 

907,459

 

0.16%

 

289,659

 

0.14%

   Long-term Debt

 

2,519

 

358,970

 

2.75%

 

304,707

 

3.34%

 

282,314

 

3.37%

         Total Interest-bearing Liabilities

 

12,126

 

10,444,353

 

0.46%

 

9,535,396

 

0.43%

 

8,961,456

 

0.49%

Non-interest-bearing Demand Deposits

     

3,057,513

     

2,748,468

     

2,338,772

   

Non-interest-bearing Liabilities

     

167,821

     

125,649

     

130,052

   

         Total Liabilities

     

13,669,687

     

12,409,513

     

11,430,280

   

Shareholders' Equity

     

1,808,719

     

1,632,355

     

1,514,155

   

         Total Liabilities and Shareholders' Equity

     

$     15,478,406

     

$     14,041,868

     

$     12,944,435

   
                             
                             

Net Interest Spread

     

$          121,041

 

3.36%

 

$          108,979

 

3.38%

 

$            97,452

 

3.25%

Tax-equivalent Benefit

     

2,134

 

0.06%

 

2,191

 

0.07%

 

2,321

 

0.08%

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

     

$          123,175

 

3.47%

 

$          111,170

 

3.48%

 

$            99,773

 

3.37%

                             
                             

(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 Nine Months Ended

       

September 30, 2014

     

September 30, 2013

       

Average 

 

Average 

     

Average 

 

Average 

   

Interest 

 

Balance

 

Yield/Rate (%)

 

Interest 

 

Balance

 

Yield/Rate (%)

ASSETS

                       

Earning  Assets:

                       

Loans Receivable: 

                       

Mortgage Loans

 

$              32,438

 

$            804,710

 

5.37%

 

$              21,868

 

$            504,154

 

5.78%

Commercial Loans (TE) (1)

 

268,866

 

7,159,481

 

5.03%

 

258,420

 

6,324,468

 

5.48%

Consumer and Other Loans

 

87,820

 

2,228,904

 

5.27%

 

78,056

 

1,928,747

 

5.41%

Total Loans 

 

389,124

 

10,193,095

 

5.11%

 

358,344

 

8,757,369

 

5.48%

Loss Share Receivable

 

(61,393)

 

132,306

 

-61.19%

 

(68,707)

 

293,116

 

-30.91%

       Total Loans and Loss Share Receivable

 

327,731

 

10,325,401

 

4.26%

 

289,637

 

9,050,485

 

4.30%

Mortgage Loans Held for Sale

 

3,953

 

134,232

 

3.93%

 

3,965

 

155,900

 

3.39%

Investment  Securities (TE) (1)(2)

 

32,911

 

2,120,226

 

2.22%

 

27,323

 

2,065,295

 

1.94%

Other  Earning Assets

 

2,024

 

351,232

 

0.77%

 

2,180

 

423,775

 

0.69%

Total  Earning Assets

 

366,619

 

12,931,091

 

3.83%

 

323,105

 

11,695,456

 

3.74%

 Allowance for Loan Losses 

     

(135,050)

         

(196,412)

   

Non-earning Assets

     

1,506,110

         

1,467,475

   

Total Assets

     

$       14,302,151

         

$       12,966,519

   
                         

LIABILITIES AND SHAREHOLDERS' EQUITY

                       

Interest-bearing liabilities

                       

   Deposits:

                       

      NOW Accounts

 

$                 4,480

 

$         2,229,454

 

0.27%

 

$                5,836

 

$         2,402,803

 

0.32%

      Savings and Money Market Accounts

 

9,108

 

4,517,549

 

0.27%

 

8,864

 

4,166,013

 

0.28%

      Certificates of Deposit

 

10,093

 

1,817,156

 

0.74%

 

13,038

 

2,024,369

 

0.86%

         Total Interest-bearing Deposits

 

23,681

 

8,564,159

 

0.37%

 

27,738

 

8,593,185

 

0.43%

   Short-term Borrowings

 

1,022

 

805,167

 

0.17%

 

365

 

292,453

 

0.16%

   Long-term Debt

 

7,489

 

314,924

 

3.14%

 

8,196

 

328,856

 

3.29%

         Total Interest-bearing Liabilities

 

32,192

 

9,684,250

 

0.44%

 

36,299

 

9,214,494

 

0.52%

Non-interest-bearing Demand Deposits

     

2,811,276

         

2,097,110

   

Non-interest-bearing Liabilities

     

139,669

         

130,368

   

         Total Liabilities

     

12,635,195

         

11,441,972

   

Shareholders' Equity

     

1,666,956

         

1,524,547

   

         Total Liabilities and Shareholders' Equity

     

$       14,302,151

         

$       12,966,519

   
                         
                         

Net Interest Spread

     

$            334,427

 

3.38%

     

$            286,806

 

3.22%

Tax-equivalent Benefit

     

6,554

 

0.07%

     

7,182

 

0.08%

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

     

$            340,981

 

3.49%

     

$            293,988

 

3.33%

                         
                         

(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

   

September 30, 2014

 

June 30, 2014

 

September 30, 2013

             

Net Interest Income (GAAP)

$                      121,041

 

$                        108,979

 

$                        97,452

Effect of Tax Benefit on Interest Income

2,134

 

2,191

 

2,321

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

123,175

 

111,170

 

99,773

Non-interest Income (GAAP)

45,663

 

47,963

 

43,263

Effect of Tax Benefit on Non-interest Income

564

 

503

 

489

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

46,227

 

48,466

 

43,752

Taxable Equivalent Revenues (Non-GAAP) (1)

169,402

 

159,636

 

143,525

   Securities Gains and other non-interest income

(582)

 

(9)

 

(13)

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

$                      168,820

 

$                        159,626

 

$                      143,512

           

Total Non-interest Expense (GAAP)

$                      120,060

 

$                        127,375

 

$                      108,152

Less Intangible Amortization Expense

(1,493)

 

(1,244)

 

(1,179)

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

118,567

 

126,131

 

106,973

Merger-related expenses

1,752

 

10,419

 

85

Severance expenses

1,226

 

5,466

 

554

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

4,213

 

1,241

 

977

(Reversal of) Provision for FDIC clawback liability

(797)

 

-

 

667

Other non-operating non-interest expense

1

 

18

 

(36)

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

$                      112,172

 

$                        108,987

 

$                      104,725

           

Return on Average Common Equity (GAAP)

6.52%

 

4.56%

 

6.08%

Effect of Intangibles (2)

3.16%

 

2.06%

 

2.66%

Effect of Non Operating Revenues and Expenses

1.19%

 

3.82%

 

0.52%

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

10.87%

 

10.44%

 

9.26%

             

Efficiency Ratio (GAAP)

72.0%

 

81.2%

 

76.9%

    Effect of Tax Benefit Related to Tax-exempt Income

(1.1%)

 

(1.4%)

 

(1.5%)

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

70.9%

 

79.8%

 

75.4%

    Effect of Amortization of Intangibles

(0.9%)

 

(0.8%)

 

(0.9%)

    Effect of Non-operating Items 

(3.5%)

 

(10.7%)

 

(1.5%)

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

66.4%

 

68.3%

 

73.0%

           
           

(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

   

September 30, 2014

 

June 30, 2014

 

September 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)

$                     40,930

$                      29,744

$                0.89

 

$                     24,819

$                     18,548

$            0.60

 

$                     30,549

$                     23,192

$            0.78

                       

Non-interest income adjustments

                     

Gain on sale of investments and other non-interest income

(582)

(378)

(0.01)

 

(9)

(6)

(0.00)

 

(13)

(8)

(0.00)

                         

Non-interest expense adjustments

                     

Merger-related expenses

1,752

1,139

0.04

 

10,419

6,840

0.22

 

85

55

0.00

Severance expenses

1,226

797

0.02

 

5,466

3,553

0.11

 

554

360

0.01

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

4,213

2,738

0.08

 

1,241

807

0.03

 

977

635

0.02

(Reversal of) Provision for FDIC clawback liability

 

(797)

(518)

(0.02)

 

-

-

-

 

667

434

0.01

Other non-operating non-interest expense

1

1

(0.00)

 

18

12

0.00

 

(36)

(23)

(0.00)

Operating earnings (Non-GAAP)

46,743

33,523

1.00

 

41,954

29,754

0.96

 

32,783

24,644

0.83

Covered and acquired (reversal of) provision for loan losses

1,692

1,100

0.03

 

1,744

1,134

0.04

 

(854)

(555)

(0.02)

Other provision for loan losses

4,022

2,614

0.08

 

3,004

1,953

0.06

 

2,868

1,864

0.07

Pre-provision operating earnings (Non-GAAP)

$                     52,457

$                      37,237

$                1.11

 

$                     46,702

$                     32,841

$            1.06

 

$                     34,797

$                     25,954

$            0.89

                       
                       

     (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 Nine Months Ended

   

September 30, 2014

 

September 30, 2013

   

Dollar Amount

   

Dollar Amount

 
   

Pre-tax 

After-tax (2)

 Per share 

 

Pre-tax 

After-tax (2)

 Per share 

Net Income (Loss) (GAAP)

$                     96,306

$                      70,687

$                2.25

 

$                     46,193

$                     39,499

$            1.33

               

Non-interest income adjustments

             

Gain on sale of investments and other non-interest income

(2,382)

(2,076)

(0.06)

 

(2,315)

(1,505)

(0.05)

               

Non-interest expense adjustments

             

Merger-related expenses

13,138

8,608

0.27

 

217

141

0.00

Severance expenses

6,812

4,427

0.14

 

2,321

1,509

0.05

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

5,994

3,896

0.12

 

37,408

24,315

0.82

(Reversal of) Provision for FDIC clawback liability

(797)

(518)

(0.02)

 

797

518

0.02

Debt prepayment

-

-

-

 

2,307

1,500

0.05

Other non-operating non-interest expense

198

129

0.01

 

1,246

810

0.04

Operating earnings (Non-GAAP)

119,269

85,153

2.71

 

88,174

66,787

2.27

Covered and acquired (reversal of) provision for loan losses

3,544

2,304

0.07

 

(2,439)

(1,585)

(0.05)

Other (reversal of) provision for loan losses

9,021

5,863

0.19

 

2,884

1,874

0.06

Pre-provision operating earnings (Non-GAAP)

$                  131,834

$                      93,320

$                2.97

 

$                     88,619

$                     67,076

$            2.28

               
               

 

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

 

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

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/iberiabank-corporation-reports-continued-improvement-in-operating-results-493550586.html

SOURCE IBERIABANK Corporation