IBERIABANK Corporation Reports Fourth Quarter Results
PR Newswire
LAFAYETTE, La.

LAFAYETTE, La., Jan. 28, 2015 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 127-year-old IBERIABANK (www.iberiabank.com), reported operating results for the fourth quarter ended December 31, 2014.  For the quarter, the Company reported income available to common shareholders of $35.9 million, or $1.07 per fully diluted earnings per share ("EPS").  In the fourth quarter of 2014, the Company incurred non-operating income net of costs equal to $2.8 million on a pre-tax basis, or $0.02 per share on an after-tax basis.   Excluding non-operating items, EPS in the fourth quarter of 2014 was $1.05 per share on a non-GAAP operating basis (refer to press release supplemental table.)  

Daryl G. Byrd, President and Chief Executive Officer, commented, "We are pleased with the financial progress we achieved in the fourth quarter and full year of 2014.  For the fourth quarter of 2014, we experienced 21% annualized growth in quarter-end legacy loans combined with a net interest margin increase of four basis points, both of which were above our expectations.  In fact, our legacy loan growth in the fourth quarter of 2014 was the second strongest in our Company's history. In addition, our asset quality measures improved, and we beat our tangible operating efficiency target for the quarter.  For the full year 2014, we expanded our average assets by $1.6 billion, or 13%, experienced a 13 basis point improvement in net interest margin, enhanced our asset quality and operating efficiency, and increased operating EPS by 20%.  We anticipate continued franchise improvement in 2015 as well.  Based on the assumptions in our current forecasts, our recent quarterly results, and projected economic conditions, we expect our operating EPS for the full year of 2015 will be in the range of $4.45 to $4.50 per share, or a 19% to 21% increase compared to our 2014 operating EPS. The estimated impact of the forward interest rate curve accounts for approximately 22 cents of the increase in EPS during the year."

Byrd continued, "Our efforts to expand our client base in a balanced manner and diversify our geographic mix showed great promise as well in the fourth quarter and full year of 2014.  Since year-end 2013, our commercial loans grew 14%, consumer loans increased 25%, and mortgage loans climbed 84%.  Of the 21 geographic commercial banking markets we serve, we experienced year-end loan growth in 18 markets and deposit growth in 17 markets, so our growth has been broad-based.  During 2014, we entered the Dallas market and greatly expanded our presence in the Acadiana region in Louisiana.  We also announced agreements to join forces with exceptional partners based in Tampa, Orlando, and Atlanta."

Highlights for the fourth quarter of 2014 and December 31, 2014:

  • During the fourth quarter of 2014, the Company announced the signing of definitive agreements to acquire by merger Florida Bank Group, Inc. ("Florida Bank Group") based in Tampa, Florida, Old Florida Bancshares, Inc. ("Old Florida") based in Orlando, Florida, and Georgia Commerce Bancshares, Inc. ("Georgia Commerce") based in Atlanta, Georgia.  At December 31, 2014, the three pending acquisitions had total assets of $3.0 billion, gross loans of $2.1 billion, and total deposits of $2.5 billion.  The Company anticipates closing the transactions in the first and second quarters of 2015, subject to customary closing conditions, including the receipt of regulatory and shareholder approvals.
  • The Company's tangible operating efficiency ratio was 65.9% in the fourth quarter of 2014, up slightly compared to the third quarter of 2014 and better than management's forecast.
  • On a linked quarter basis, operating non-interest income increased $0.2 million, or less than 1%, in the fourth quarter of 2014. Mortgage income decreased $0.6 million, or 4%, capital markets income decreased $1.0 million, or 36%, and credit card income increased $0.8 million, or 30%, on a linked quarter basis. 
  • Total loan growth was $360 million, or 3%, 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 $489 million, or 5%, between quarter-ends (21% annualized rate). The loan growth was spread between small business (12%), consumer (22%), and commercial (66%).
  • Total deposits increased $143 million, or 1%, between quarter-ends.  Core deposits, which excludes time deposits, increased $131 million, or 1% (5% annualized rate).  Non-interest-bearing deposits increased $38 million, or 1%, between quarter-ends (5% on an annualized basis).
  • The Company's legacy asset quality remained strong in the fourth quarter of 2014.  At December 31, 2014, and excluding Acquired Assets, nonperforming assets ("NPAs") equated to 0.41% of total assets, loans past due 30 days or more equated to 0.68% of total loans, and classified assets equated to 0.43% of total assets.  At year-end 2014, only a single energy-related loan, totaling approximately $30,000, was past due more than 30 days, and the Company experienced no energy-related charge-offs in 2014.
  • Net charge-offs totaled $1.8 million in the fourth quarter of 2014, or an annualized 0.06% of average loans.  Over the past 12 quarters, net charge-offs averaged 0.05% of average loans.  The Company recorded a $6.5 million loan loss provision in the fourth quarter of 2014, compared to $5.7 million in the third quarter of 2014.  
  • The net interest margin increased four basis points on a linked quarter basis to 3.53%, which was above the previously disclosed guidance range of 3.45%, to 3.50% for the fourth quarter of 2014.

During the Company's year-end financial statement close process, certain accounting entries recorded in the second and third quarters of 2014 related to the Company's mortgage banking operation were determined to be incorrect.  The errors reduced the mortgage income line in the income statement by $4.4 million in the second quarter of 2014 and increased mortgage income by $1.5 million in the third quarter of 2014. The Company implemented changes to internal processes to reduce the likelihood of similar errors occurring in future periods.  The financial information throughout this press release has been adjusted to reflect the correction of those entries.  These adjustments had no impact on the financial results in the fourth quarter of 2014 or the full year 2014.

 

Table A - Summary Financial Results

 

 

For the Quarter Ended:

Linked Quarter

Selected Financial Data

12/31/2013

9/30/2014

12/31/2014

% Change

Net Income ($ in thousands)

$ 25,604

$ 30,892

$ 35,936

16%

           

Per Share Data:

         

Fully Diluted Earnings

$ 0.86

$ 0.92

$ 1.07

16%

Operating Earnings (Non-GAAP)

0.87

1.04

1.05

1%

Pre-provision Operating Earnings (Non-GAAP)

0.97

1.15

1.17

2%

Tangible Book Value

37.17

37.83

39.11

3%

           
 

As of and for the Quarter Ended:

Linked Quarter

       

Basis Point

Key Ratios

12/31/2013

9/30/2014

12/31/2014

Change

           

Return on Average Assets

0.77%

0.79%

0.91%

12

bps

Return on Average Common Equity

6.62%

6.78%

7.78%

100

bps

Return on Average Tangible Common Equity (Non-GAAP)

9.43%

10.10%

11.46%

136

bps

Net Interest Margin (TE) (1)

3.52%

3.49%

3.53%

4

bps

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

69.9%

65.7%

65.9%

15

bps

Tangible Common Equity Ratio (Non-GAAP)

8.55%

8.45%

8.60%

15

bps

Tier 1 Leverage Ratio

9.70%

9.21%

9.36%

15

bps

Tier 1 Common Ratio (Non-GAAP)

10.55%

10.32%

10.32%

(0)

bps

Total Risk Based Capital Ratio

12.82%

12.40%

12.30%

(10)

bps

Net Charge-Offs to Average Loans (2)

0.07%

0.09%

0.06%

(3)

bps

Non-performing Assets to Total Assets (2)

0.61%

0.46%

0.41%

(5)

bps

           
 

For the Quarter Ended:

   
 

GAAP

 

Non-GAAP

   

Adjusted Selected Key Ratios

12/31/2014

Adjustments(3)

12/31/2014

   
           

Return on Average Assets

0.91%

(0.02%)

0.89%

   

Return on Average Common Equity

7.78%

(0.20%)

7.58%

   

Return on Average Tangible Common Equity (Non-GAAP)

11.46%

(0.29%)

11.17%

   

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

67.5%

(1.6%)

65.9%

   
           

(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 $154 million, or 1%, as average loans increased $262 million, or 2%, average indemnification asset ("IA") declined $26 million, or 23%, average investment securities increased $97 million, or 5%, and other earning assets decreased $178 million, or 24%. Also on a linked quarter basis, the average earning asset yield increased five basis points, and the cost of interest-bearing liabilities increased two basis points.  As a result, the net interest spread increased three basis points, and the net interest margin increased four basis points.  Tax-equivalent net interest income increased $3 million, or 2%, as average earning assets and the net interest margin increased on a linked quarter basis.

Table B - Quarterly Average Yields/Cost (1)

 

 

For Quarter Ended:

Linked Quarter

       

Basis Point

 

12/31/2013

9/30/2014

12/31/2014

Change

Investment Securities

2.21%

2.20%

2.24%

4

bps

Covered Loans, net of loss share receivable

3.43%

3.07%

3.57%

50

bps

Legacy Loans, net

4.09%

3.97%

3.94%

(3)

bps

Non-Covered Acquired Loans, net

8.71%

6.63%

6.94%

31

bps

Loans & Loss Share Receivable

4.33%

4.31%

4.32%

1

bps

Mortgage Loans Held For Sale

4.06%

3.90%

3.95%

5

bps

Other Earning Assets

0.94%

0.60%

0.80%

20

bps

  Total Earning Assets

3.87%

3.83%

3.88%

5

bps

           

Interest-bearing Deposits

0.39%

0.39%

0.41%

2

bps

Short-Term Borrowings

0.15%

0.17%

0.19%

2

bps

Long-Term Borrowings

3.37%

2.75%

2.73%

(2)

bps

  Total Interest-bearing Liabilities

0.47%

0.46%

0.48%

2

bps

Net Interest Spread

3.40%

3.38%

3.41%

3

bps

Net Interest Margin

3.52%

3.49%

3.53%

4

bps

           

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

   
           

During the fourth quarter, the legacy loan yield declined three basis points, while the non-covered acquired loan yield increased 31 basis points and the net covered loan yield (net of IA amortization) increased 50 basis points.  The average covered loan volume declined $96 million, or 17%, average non-covered acquired loans declined $62 million, or 4%, and average legacy loans increased $420 million, or 5%.  As a result of changes in volumes and yields, the associated net covered income declined slightly on a linked quarter basis.  Changes in volumes and yields were influenced by the transfer from covered to non-covered acquired categories of loans associated with the former CapitalSouth loan portfolio as non-single family residential FDIC loss share coverage expired.

On a period-end basis, the IA declined $25 million, or 26%, from $95 million at September 30, 2014, to $70 million at December 31, 2014.  The portion of the IA collectible from the FDIC decreased $9 million, or 30%. The portion of the IA collectible from other real estate owned ("OREO") and customers declined $16 million, or 25%.

Aggregate non-interest income was stable on a linked quarter basis.  Excluding non-operating items, operating non-interest income increased $0.2 million, or less than 1%.  The primary changes in operating non-interest income on a linked quarter basis were:

  • Increased credit card fee income of $0.8 million, or 30%; and
  • Increased corporate-owned life insurance income of $1.0 million (most of which was offset by an increase in benefit expense included in non-interest expense); partially offset by
  • Decreased capital markets revenue of $1.0 million, or 36%; and
  • Decreased mortgage income of $0.6 million, or 4%.

Mortgage income was negatively impacted by $0.6 million lower market value adjustments (a negative $1.1 million adjustment in the fourth quarter of 2014 compared to a $0.5 million negative adjustment in the third quarter of 2014.)  The Company experienced unseasonably strong production and sales volumes, as well as favorable pricing dynamics in the fourth quarter of 2014. Mortgage commission and production incentives expense (which is included in non-interest expense) increased $0.1 million, or 3%, on a linked quarter basis.

In the fourth quarter of 2014, the Company originated $459 million in residential mortgage loans, up $3 million, or 1%, on a linked quarter basis.  Client loan refinancing opportunities accounted for approximately 36% of mortgage loan applications in the fourth quarter of 2014, compared to 25% in the third quarter of 2014.  The Company sold $464 million in mortgage loans during the fourth quarter of 2014, down $24 million, or 5%, on a linked quarter basis.  The mortgage origination locked pipeline and loans held for sale decreased $33 million, or 19% between September 30, 2014, and December 31, 2014.  At January 23, 2015, the locked pipeline was $200 million, up $63 million, or 46%, compared to December 31, 2014.  The mortgage loan origination business primarily focuses on retail mortgage loans originated by the Company.

Assets under management at IBERIA Wealth Advisors ("IWA") were $1.4 billion at December 31, 2014, up 11% compared to September 30, 2014.  Revenues for IWA increased 8% on a linked quarter basis, and were up 13% compared to the fourth quarter of 2013.  IBERIA Financial Services revenues decreased 13% on a linked quarter basis, and were up 2% compared to the fourth quarter of 2013.  The rapid decline in energy prices in the latter half of the fourth quarter of 2014 caused a significant reduction in capital markets activities at IBERIA Capital Partners ("ICP"), partially offset by improved trading and research income.  As a result, ICP experienced a $1.0 million, or 36%, decline in revenues on a linked quarter basis.

Non-interest expense decreased $1.0 million, or 1%, on a linked quarter basis, while operating expense increased $2.2 million, or 2%.  Operating expense changes included the following on a linked-quarter basis:

  • Increased equity compensation expense of $1.2 million due to share price increase;
  • Increased corporate-owned life insurance expense of $0.7 million;
  • Increased marketing and business development expense of $0.5 million; and
  • Increased legal and professional services expense of $0.6 million; partially offset by
  • Decreased provision for unfunded commitments of $1.1 million;
  • Decreased other credit/loan related expenses of $1.0 million; and
  • Decreased payroll tax expense of $0.5 million.

Through the fourth quarter of 2014, the Company essentially completed its 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.

During the fourth quarter of 2014, the Company realized $2.9 million in tax benefits primarily a result of amending previously filed tax returns for federal and state tax credits not previously claimed.  Absent this benefit, the Company's effective tax rate was 28.1% in the fourth quarter of 2014, a slight increase compared to the third quarter of 2014.  The Company considered the tax benefit to be of a non-operating nature.

Loans

Total loans increased $360 million, or 3%, between September 30, 2014, and December 31, 2014.  The loan portfolio covered under FDIC loss share protection at December 31, 2014, decreased $80 million, or 15%, compared to September 30, 2014.  Excluding covered and Acquired Assets, total loans increased $489 million, or 5% (21% annualized rate), during the fourth quarter. Legacy commercial loans increased $381 million, or 6% (which included $56 million in business banking loan growth, up 7%, or 28% annualized rate), legacy consumer loans increased $77 million, or 4%, and legacy mortgage loans increased $31 million, or 6%, during the quarter.  Period-end legacy loan growth during the fourth quarter of 2014 was strongest in the Houston, New Orleans, Birmingham, Lafayette, and Dallas markets.  Funded loan origination and renewal mix in the fourth quarter of 2014 was 36% fixed rate and 64% floating rate, and total loans outstanding (excluding nonaccruals) were 48% fixed and 52% floating.  Loans and commitments originated and/or renewed during the fourth quarter of 2014 totaled $1.2 billion (up 1% on a linked quarter basis).

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

 

 

Period-End Balances ($ Millions)

       
       

% Change (1)

 

Mix

 

12/31/13

9/30/14

12/31/14

 

Year/Year 

Qtr/Qtr

Annualized

 

9/30/14

12/31/14

                     

Commercial

$  6,041

$  6,622

$  7,002

 

16%

6%

23%

 

60%

61%

Consumer

1,833

2,061

2,139

 

17%

4%

15%

 

19%

19%

Mortgage

414

497

528

 

27%

6%

25%

 

4%

4%

Legacy Loans

$  8,288

$  9,180

$  9,669

 

17%

5%

21%

 

83%

84%

Acquired Loans

484

1,377

1,328

 

174%

-4%

-14%

 

12%

12%

Covered Loans

720

524

444

 

-38%

-15%

-61%

 

5%

4%

Total Loans

$  9,492

$11,081

$11,441

 

21%

3%

13%

 

100%

100%

                     
   

(1)

Year over Year growth includes the impact of acquisitions.

 

 

Energy-related loans outstanding totaled $881 million at December 31, 2014, up $41 million, or 5%, compared to September 30, 2014, and equated to approximately 7.7% of total loans. The Company expects energy-related loans to be less than 6.5% of total loans outstanding upon completion of the previously mentioned pending acquisitions.  Exploration and production accounted for 52% of energy loans outstanding and 56% of energy commitments at year-end 2014.  Midstream companies accounted for 17% of energy loans and commitments, and service company loans accounted for 31% of energy loans and 27% of energy commitments.  Additional information regarding the Company's energy loan and commitment exposure is provided in the supplemental investor presentation.

In January 2015, the Company announced it will exit the indirect automobile lending business, a service the Company has successfully provided to select automobile dealers in the Company's footprint for 20 years.  The Company concluded compliance risk associated with the indirect automobile lending business in general had become unbalanced relative to potential returns generated by the business on a risk-adjusted basis.  At December 31, 2014, the Company's indirect automobile lending business had approximately $397 million in loans outstanding (3.5% of total loans outstanding) with 12 full-time equivalent employees.  Based on current amortization rates and expected maturities, the vast majority of loan relationships will be exited within four years.

Deposits

Total deposits increased $143 million, or 1%, from September 30, 2014 to December 31, 2014.  Non-interest-bearing deposits increased $38 million, or 1%, and equated to 26% of total deposits at December 31, 2014.  NOW accounts increased $268 million, or 12%, while money market and savings account volume decreased $176 million, or 4%, between September 30, 2014 and December 31, 2014.  Time deposits increased $12 million, or 1% between quarter-ends.  Period-end deposit growth during the fourth quarter of 2014 was strongest in the Lafayette, Northwest Arkansas, Huntsville, Dallas, and Naples markets.

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

 

 

Period-End Balances ($ Millions)

       
       

% Change (1)

 

Mix

 

12/31/13

9/30/14

12/31/14

 

Year/Year

Qtr/Qtr

Annualized

 

9/30/14

12/31/14

                     

Non-interest

$  2,576

$  3,157

$  3,195

 

24%

1%

5%

 

25%

26%

NOW Accounts

2,283

2,195

2,463

 

8%

12%

49%

 

18%

19%

Savings/MMkt

4,167

4,922

4,746

 

14%

-4%

-14%

 

40%

38%

Time Deposits

1,711

2,104

2,116

 

24%

1%

2%

 

17%

17%

Total Deposits

$10,737

$12,378

$12,521

 

17%

1%

5%

 

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 $171 million, or 6%, and interest-bearing deposits increased $120 million, or 1%.  The rate on average interest-bearing deposits in the fourth quarter of 2014 was 0.41%, an increase of two basis points on a linked quarter basis. 

Other Assets And Funding

Excess liquidity averaged $354 million in the fourth quarter of 2014, down $136 million, or 28%, on a linked quarter basis.  The investment portfolio increased $93 million, or 4%, to $2.3 billion on average in the fourth quarter of 2014.  On a period-end basis, the investment portfolio equated to $2.3 billion, or 14% of total assets at December 31, 2014, unchanged compared to September 30, 2014.  The investment portfolio had an effective duration of 2.9 years at December 31, 2014, compared to 3.2 years at September 30, 2014.  The investment portfolio had a $13.3 million unrealized gain at December 31, 2014.  The average yield on investment securities increased four basis points on a linked quarter basis to 2.24% in the fourth quarter of 2014.  The Company holds in its investment portfolio primarily government agency securities.  Municipal securities comprised only 7% of total investments at December 31, 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 decreased $206 million, or 22%, and the cost of short-term debt increased two basis points.  Average long-term debt increased $36 million, or 10%, and the cost of debt decreased two basis points to 2.73%.  The cost of average interest-bearing liabilities was 0.48% in the fourth quarter of 2014, an increase of two 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 no longer provide FDIC loss share coverage beginning January 1, 2015;
  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 September 30, 2014 and December 31, 2014, legacy NPAs decreased $5 million, or 7%, due in part to $1 million in former bank branches and related land that were sold out of OREO during the fourth quarter of 2014.  At December 31, 2014, those bank-related properties in OREO totaled $12 million, or 20% of total legacy NPAs.  Legacy NPAs equated to 0.41% of total assets at December 31, 2014, and 0.33% of total assets excluding bank-related properties.

Loans past due 30 days or more (including non-accruing loans) increased $15 million, or 29%, and represented 0.68% of total loans at December 31, 2014, compared to 0.55% at September 30, 2014.  The increase in past due loans was primarily associated with three specific loan relationships that were past due less than 60 days at year-end 2014.  The two largest of these three loans were past due as a result of their maturities and were renewed subsequent to year-end.  The third largest of these loans was brought current subsequent to year-end.  None of the three loan relationships was impacted by the decline in energy commodity prices.

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)

 

12/31/2013

9/30/2014

12/31/2014

 

Year/Year

Qtr/Qtr

                   

Non-performing Assets

 

$   73,034

$   61,542

$   56,967

 

-22%

 

-7%

 

Note: NPAs excluding Former Bank Properties

 

63,828

48,808

45,411

 

-29%

 

-7%

 
                   

Past Due Loans

 

66,153

50,505

65,291

 

-1%

 

29%

 

Classified Assets

 

82,199

67,462

59,663

 

-27%

 

-12%

 
                   

Non-performing Assets/Assets

 

0.61%

0.46%

0.41%

 

(20)

 bps 

(5)

 bps 

NPAs/(Loans + OREO)

 

0.88%

0.67%

0.59%

 

(29)

 bps 

(8)

 bps 

Classified Assets/Total Assets

 

0.69%

0.50%

0.43%

 

(26)

 bps 

(7)

 bps 

(Past Dues & Non-accruals)/Loans

 

0.80%

0.55%

0.68%

 

(12)

 bps 

13

 bps 

                   

Provision For Loan Losses

 

$    4,621

$    4,022

$    4,021

 

-13%

 

0%

 

Net Charge-Offs/(Recoveries)

 

1,366

2,131

1,538

 

13%

 

-28%

 

Provision Less Net Charge-Offs

 

$    3,255

$    1,891

$    2,483

 

-24%

 

31%

 
                   

Net Charge-Offs/Average Loans

 

0.07%

0.09%

0.06%

 

(1)

 bps 

(3)

 bps 

Allowance For Loan Losses/Loans

 

0.81%

0.79%

0.79%

 

(2)

 bps 

(0)

 bps 

Allowance for Credit Losses to Total Loans

 

0.95%

0.92%

0.91%

 

(4)

 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 January 1, 2015)

Non SFR (Losing Loss Share Coverage within 12 months) 

SFR (Losing Loss Share Coverage 10 years from Acquisition)

SOP Assets (2)

Non-SOP Assets(2)

     ($ thousands)

             

Loans, net

$                174,711

$                  22,485

$                247,348

$           422,607

$           905,179

$         1,772,330

Other Real Estate Owned

9,596

3,639

10,461

9,007

-

32,703

Allowance for Loan Losses

(29,771)

(1,710)

(13,283)

(8,830)

(363)

(53,957)

             

Non-accrual loans

$                  36,755

$                   2,939

$                  46,137

$             47,019

$              1,866

$            134,716

Foreclosed assets

825

-

-

44

-

869

Other real estate owned

8,771

3,639

10,462

8,963

-

31,835

Accruing Loans More Than 90 Days Past Due 

-

-

368

-

586

954

Non-performing Assets

46,351

6,578

56,967

56,026

2,452

168,374

             

Total Past Due Loans

$                  40,629

$                   2,966

$                  48,793

$             58,319

$              6,537

$            157,244

             

Non-performing Assets to Total Loans and OREO

25.15%

25.18%

22.10%

12.98%

0.27%

9.33%

Past Due and Non-accrual Loans to Loans

23.25%

13.19%

19.73%

13.80%

0.72%

8.87%

             

Provision For Loan Losses

$                      974

$                      450

$                      182

$                (286)

$              1,154

$               2,474

Net Charge-Offs/(Recoveries)

11

-

-

(11)

217

217

Provision Less Net Charge-Offs

$                      963

$                      450

$                      182

$                (275)

$                 937

$                2,257

             

Net Charge-Offs to Average Loans

0.08%

0.00%

0.00%

-0.03%

0.29%

0.05%

Allowance for Loan Losses to Loans

17.04%

7.61%

5.37%

2.09%

0.04%

3.04%

Allowance for Credit Losses to Total Loans

17.04%

7.61%

5.37%

2.09%

0.04%

3.04%

             

Indemnification asset collectible from the FDIC and OREO 

$                          -

$                        -

$                  11,007

$                     -

$                        -

$              11,007

   

(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 December 31, 2014, Teche loans of $33.9 million and $565.5 million are included in SOP and Non-SOP assets, respectively. First Private loans of $264.2 million have been included as Non-SOP loans at December 31, 2014.  

Capital Position

The Company maintains favorable capital strength.  At December 31, 2014, the Company reported a tangible common equity ratio of 8.60%, up 15 basis points compared to September 30, 2014.  At December 31, 2014, the Company's preliminary Tier 1 leverage ratio was 9.36%, up 15 basis points compared to September 30, 2014. The Company's preliminary total risk-based capital ratio at December 31, 2014, was 12.30%, down 10 basis points compared to September 30, 2014. 

Commencing in the first quarter of 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.  At year-end 2014, the Company experienced 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 resulted 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, 54, and 12 basis points, respectively, beginning in 2015.

At December 31, 2014, book value per share was $55.39, up $1.07 per share, or 2%, compared to September 30, 2014. Tangible book value per share was $39.11, up $1.28 per share, or 3%, compared to September 30, 2014.  Based on the closing stock price of the Company's common stock of $55.36 per share on January 28, 2015, this price equated to 1.00 times December 31, 2014 book value and 1.42 times December 31, 2014 tangible book value per share.

On December 15, 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 2.46%.

IBERIABANK Corporation

The Company is a financial holding company with 280 combined offices, including 188 bank branch offices and three loan production offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, and Florida, 23 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 57 locations in 10 states.  The Company has eight locations with representatives of IBERIA Wealth Advisors in five 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 $1.9 billion, based on the NASDAQ Global Select Market closing stock price on January 28, 2015.

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

  • Bank of America Merrill Lynch
  • FIG Partners, LLC
  • Hovde Group, 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, January 29, 2015, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 3712071.  A replay of the call will be available until midnight Central Time on February 6, 2015 by dialing 1-877-344-7529. The confirmation code for the replay is 10058635.  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 operating EPS guidance for full year 2015 was based on the following significant assumptions:

  • Recent forward interest rate curve projections;
  • Completion of the currently pending acquisitions in the first half of 2015;
  • 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;
  • Mortgage, title insurance, and capital markets 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 mergers, the expected returns and other benefits of the proposed mergers to shareholders, expected improvement in operating efficiency resulting from the proposed mergers with Georgia Commerce Bancshares, Inc., Old Florida Bancshares, Inc. and Florida Bank Group, Inc., estimated expense reductions resulting from the transactions 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 mergers on the Company'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 mergers will close when expected, the expected returns and other benefits of the proposed mergers to shareholders will be achieved, the expected operating efficiencies will result, estimated expense reductions resulting from the transactions will occur as and when expected, the impact on tangible book value will be recovered or as expected or that the effect on the Company'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 transactions may not be timely completed, if at all; that prior to completion of the merger transactions 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 transactions; 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 the Company'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 September 30, 2014, and other documents subsequently filed by the Company with the SEC.  Consequently, no forward-looking statement can be guaranteed. Neither the Company, Georgia Commerce Bancshares, Inc., Old Florida Bancshares, Inc., nor Florida Bank Group, Inc. 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, the Company, Georgia Commerce Bancshares, Inc., Old Florida Bancshares, Inc. and Florida Bank Group, Inc. 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 transactions involving the Company, Georgia Commerce Bancshares, Inc. and Old Florida Bancshares, Inc. 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 with Georgia Commerce Bancshares, Inc., the Company will file with the SEC a registration statement on Form S-4 that will include a proxy statement/prospectus for the shareholders of Georgia Commerce Bancshares, Inc. The Company has filed a registration statement on Form S-4 that includes a proxy statement/prospectus for the shareholders of Old Florida Bancshares, Inc.  The Company also plans to file other documents with the SEC regarding the pending merger transactions with Georgia Commerce Bancshares, Inc., Florida Bank Group, Inc. and Old Florida Bancshares, Inc.  Georgia Commerce Bancshares, Inc. will mail the final proxy statement/prospectus to its shareholders. Old Florida Bancshares, Inc. has mailed its final proxy statement/prospectus to its shareholders.  BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS ARE URGED TO READ THE RELEVANT 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 TRANSACTIONS. The proxy statement/prospectuses, as well as other filings containing information about the Company, Georgia Commerce Bancshares, Inc., Old Florida Bancshares, Inc. and Florida Bank Group, Inc., will be available without charge, at the SEC's Internet site (http://www.sec.gov). Copies of the proxy statement/prospectuses and the filings with the SEC that will be incorporated by reference in the proxy statement/prospectuses can also be obtained, when available, without charge, from  the Company's website (http://www.iberiabank.com), under the heading "Investor Information." 

The Company, Georgia Commerce Bancshares, Inc. and Old Florida Bancshares, Inc., 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 Georgia Commerce Bancshares, Inc. and Old Florida Bancshares, Inc. in respect of the proposed merger transactions. Information regarding the directors and executive officers of the Company is set forth in the definitive proxy statement for the Company'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 Georgia Commerce Bancshares, Inc. who may be deemed participants in the solicitation of the shareholders of Georgia Commerce Bancshares, Inc. in connection with the proposed transaction will be included in the proxy statement/prospectus for the Georgia Commerce Bancshares, Inc. special meeting of shareholders, which will be filed by the Company with the SEC. Information regarding the directors and executive officers of Old Florida Bancshares, Inc. who may be deemed to be participants in the solicitation of shareholders of Old Florida Bancshares, Inc. in connection with the proposed transaction is included in the proxy statement/prospectus for the Old Florida Bancshares, Inc. special meeting of shareholders, which was filed with the SEC.  Additional information regarding the interests of such participants will be included in the proxy statement/prospectuses and other relevant documents regarding the proposed merger transactions filed with the SEC when they become available.

 

Table 1 - IBERIABANK CORPORATION

 

FINANCIAL HIGHLIGHTS

                       
                       
     

 For The Quarter Ended 

 

 For The Quarter Ended 

     

 December 31, 

 

 September 30, 

     

2014

 

2013

 

% Change

 

2014

 

% Change

                       

Income Data (in thousands):

                   
 

Net Interest Income

 

$       124,680

 

$         103,438

 

21%

 

$         121,751

 

2%

 

Net Interest Income  (TE)   (1)

 

126,735

 

105,709

 

20%

 

123,885

 

2%

 

Net Income 

 

35,936

 

25,604

 

40%

 

30,892

 

16%

 

Earnings Available to Common Shareholders- Basic

 

35,936

 

25,604

 

40%

 

30,892

 

16%

 

Earnings Available to Common Shareholders- Diluted

 

35,406

 

25,148

 

41%

 

30,427

 

16%

                       

Per Share Data:

                   
 

Earnings Available to Common Shareholders - Basic

 

$              1.08

 

$                0.86

 

25%

 

$             0.93

 

16%

 

Earnings Available to Common Shareholders - Diluted

 

1.07

 

0.86

 

25%

 

0.92

 

16%

 

Operating Earnings (Non-GAAP) 

 

1.05

 

0.87

 

21%

 

1.04

 

1%

 

Book Value 

 

55.39

 

51.40

 

8%

 

54.32

 

2%

 

Tangible Book Value (2)

 

39.11

 

37.17

 

5%

 

37.83

 

3%

 

Cash Dividends

 

0.34

 

0.34

 

-

 

0.34

 

-

 

Closing Stock Price

 

64.85

 

62.85

 

3%

 

62.51

 

4%

                       

Key Ratios: (3)

                   
 

Operating Ratios:

                 
 

Return on Average Assets

 

0.91%

 

0.77%

     

0.79%

   
 

Return on Average Common Equity

 

7.78%

 

6.62%

     

6.78%

   
 

Return on Average Tangible Common Equity (2)

 

11.46%

 

9.43%

     

10.10%

   
 

Net Interest Margin  (TE)  (1)

 

3.53%

 

3.52%

     

3.49%

   
 

Efficiency Ratio

 

69.5%

 

72.2%

     

71.3%

   
 

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

 

65.9%

 

69.9%

     

65.7%

   
 

Full-time Equivalent Employees

 

2,757

 

2,576

     

2,703

   
                       
 

Capital Ratios:

                 
 

Tangible Common Equity Ratio (Non-GAAP)

 

8.60%

 

8.55%

     

8.45%

   
 

Tangible Common Equity to Risk-Weighted Assets

 

10.38%

 

10.39%

     

10.32%

   
 

Tier 1 Leverage Ratio

 

9.36%

 

9.70%

     

9.21%

   
 

Tier 1 Capital Ratio

 

11.18%

 

11.57%

     

11.21%

   
 

Total Risk Based Capital Ratio

 

12.30%

 

12.82%

     

12.40%

   
 

Common Stock Dividend Payout Ratio

 

31.7%

 

39.6%

     

36.8%

   
                       
 

Asset Quality Ratios:

                 
 

Excluding FDIC Covered Assets and Acquired Assets

                 
 

Non-performing Assets to Total Assets (4)

 

0.41%

 

0.61%

     

0.46%

   
 

Allowance for Loan Losses to Loans

 

0.79%

 

0.81%

     

0.79%

   
 

Net Charge-offs to Average Loans 

 

0.06%

 

0.07%

     

0.09%

   
 

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

 

0.59%

 

0.88%

     

0.67%

   
                       
     

 For The Quarter Ended 

 

 For The Quarter Ended 

     

 December 31, 

 

 September 30, 

 

 June 30, 

 

 March 31, 

     

2014

 

2014

 

2014

 

2014

 

2014

Balance Sheet Summary (in thousands):

 

End of Period

 

Average

 

Average

 

Average

 

Average

 

Excess Liquidity (5)

 

$       296,101

 

$         353,716

 

$           489,221

 

$      237,712

 

$   114,621

 

Total Investment Securities

 

2,275,813

 

2,261,569

 

2,168,345

 

2,120,988

 

2,116,166

 

Loans, Net of Unearned Income

 

11,441,044

 

11,271,752

 

11,009,833

 

9,998,533

 

9,551,351

 

Loans, Net of Unearned Income, 

                   
 

   Excluding Covered Assets and Acquired Assets

 

9,668,714

 

9,438,869

 

9,019,127

 

8,643,859

 

8,324,676

 

Total Assets

 

15,758,605

 

15,615,024

 

15,476,910

 

14,041,848

 

13,362,918

 

Total Deposits

 

12,520,525

 

12,514,479

 

12,222,997

 

11,071,698

 

10,816,122

 

Total Shareholders' Equity

 

1,852,849

 

1,831,933

 

1,806,813

 

1,632,330

 

1,557,006

   

(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)

December 31,

 

September 30,

 
 

2014

 

2013

 

% Change

 

2014

 

% Change

 

ASSETS

                   

Cash and Due From Banks

$          251,994

 

$            238,672

 

5.6%

 

$            257,147

 

(2.0%)

 

Interest-bearing Deposits in Banks

296,101

 

152,724

 

93.9%

 

410,860

 

(27.9%)

 

   Total Cash and Equivalents

548,095

 

391,396

 

40.0%

 

668,007

 

(18.0%)

 

Investment Securities Available for Sale

2,158,853

 

1,936,797

 

11.5%

 

2,103,828

 

2.6%

 

Investment Securities Held to Maturity

116,960

 

154,109

 

(24.1%)

 

120,520

 

(3.0%)

 

   Total Investment Securities

2,275,813

 

2,090,906

 

8.8%

 

2,224,348

 

2.3%

 

Mortgage Loans Held for Sale

140,072

 

128,442

 

9.1%

 

148,530

 

(5.7%)

 

Loans, Net of Unearned Income

11,441,044

 

9,492,019

 

20.5%

 

11,080,887

 

3.3%

 

Allowance for Loan Losses

(130,131)

 

(143,074)

 

(9.0%)

 

(134,540)

 

(3.3%)

 

   Loans, Net

11,310,913

 

9,348,945

 

21.0%

 

10,946,347

 

3.3%

 

Loss Share Receivable

69,627

 

162,312

 

(57.1%)

 

94,712

 

(26.5%)

 

Premises and Equipment

307,159

 

287,510

 

6.8%

 

307,868

 

(0.2%)

 

Goodwill and Other Intangibles

548,131

 

425,442

 

28.8%

 

553,669

 

(1.0%)

 

Other Assets

558,795

 

530,597

 

5.3%

 

571,670

 

(2.3%)

 

   Total Assets

$     15,758,605

 

$      13,365,550

 

17.9%

 

$      15,515,151

 

1.6%

 
                     

LIABILITIES AND SHAREHOLDERS' EQUITY

                   

Noninterest-bearing Deposits

$       3,195,430

 

$         2,575,939

 

24.0%

 

$         3,157,453

 

1.2%

 

NOW Accounts

2,462,841

 

2,283,490

 

7.9%

 

2,194,803

 

12.2%

 

Savings and Money Market Accounts

4,746,017

 

4,166,979

 

13.9%

 

4,921,510

 

(3.6%)

 

Certificates of Deposit

2,116,237

 

1,710,592

 

23.7%

 

2,103,925

 

0.6%

 

   Total Deposits

12,520,525

 

10,737,000

 

16.6%

 

12,377,691

 

1.2%

 

Short-term Borrowings

603,000

 

375,000

 

60.8%

 

553,000

 

9.0%

 

Securities Sold Under Agreements to Repurchase

242,742

 

305,344

 

(20.5%)

 

259,783

 

(6.6%)

 

Trust Preferred Securities

111,862

 

111,862

 

-

 

111,862

 

-

 

Other Long-term Debt

291,392

 

168,837

 

72.6%

 

243,707

 

19.6%

 

Other Liabilities

136,235

 

136,528

 

(0.2%)

 

152,733

 

(10.8%)

 

   Total Liabilities

13,905,756

 

11,834,571

 

17.5%

 

13,698,776

 

1.5%

 

Total Shareholders' Equity

1,852,849

 

1,530,979

 

21.0%

 

1,816,375

 

2.0%

 

   Total Liabilities and Shareholders' Equity

$     15,758,605

 

$      13,365,550

 

17.9%

 

$      15,515,151

 

1.6%

 
                     
                     

BALANCE SHEET (Average)

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 
 

2014

 

2014

 

2014

 

2014

 

2013

 

ASSETS

                   

Cash and Due From Banks

$          239,377

 

$            229,556

 

$            237,631

 

$            234,924

 

$            225,527

 

Interest-bearing Deposits in Banks

353,716

 

489,221

 

237,712

 

114,621

 

204,970

 

Investment Securities

2,261,569

 

2,168,345

 

2,120,988

 

2,116,166

 

2,131,804

 

Mortgage Loans Held for Sale

121,438

 

163,510

 

140,096

 

96,019

 

112,499

 

Loans, Net of Unearned Income

11,271,752

 

11,009,833

 

9,998,533

 

9,551,351

 

9,172,490

 

Allowance for Loan Losses

(134,177)

 

(133,443)

 

(132,049)

 

(139,726)

 

(148,030)

 

Loss Share Receivable

85,733

 

111,383

 

131,375

 

154,634

 

188,932

 

Other Assets

1,415,616

 

1,438,505

 

1,307,562

 

1,234,930

 

1,226,979

 

   Total Assets

$     15,615,024

 

$      15,476,910

 

$      14,041,848

 

$      13,362,918

 

$      13,115,171

 
                     

LIABILITIES AND SHAREHOLDERS' EQUITY

                   

Non-interest-bearing Deposits

$       3,228,773

 

$         3,057,513

 

$         2,748,468

 

$         2,623,075

 

$         2,572,599

 

NOW Accounts

2,271,836

 

2,228,378

 

2,229,264

 

2,230,745

 

2,145,036

 

Savings and Money Market Accounts

4,908,247

 

4,877,051

 

4,372,855

 

4,296,360

 

4,329,985

 

Certificates of Deposit

2,105,623

 

2,060,055

 

1,721,111

 

1,665,943

 

1,787,643

 

   Total Deposits

12,514,479

 

12,222,997

 

11,071,698

 

10,816,122

 

10,835,263

 

Short-term Borrowings

449,190

 

627,192

 

632,778

 

285,383

 

49,946

 

Securities Sold Under Agreements to Repurchase

264,194

 

292,677

 

274,681

 

299,106

 

285,745

 

Trust Preferred Securities

111,862

 

111,862

 

111,862

 

111,862

 

111,862

 

Long-term Debt

283,548

 

247,108

 

192,845

 

168,367

 

169,063

 

Other Liabilities

159,818

 

168,262

 

125,654

 

125,072

 

128,249

 

   Total Liabilities

13,783,091

 

13,670,098

 

12,409,518

 

11,805,912

 

11,580,128

 

Total Shareholders' Equity

1,831,933

 

1,806,813

 

1,632,330

 

1,557,006

 

1,535,043

 

   Total Liabilities and Shareholders' Equity

$     15,615,024

 

$      15,476,910

 

$      14,041,848

 

$      13,362,918

 

$      13,115,171

 

 

Table 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

                   
 

For The Three Months Ended

INCOME STATEMENT

December 31,

 

September 30,

 

2014

 

2013

 

% Change

 

2014

 

% Change

                   

Interest Income

$     137,276

 

$     114,092

 

20.3%

 

$      133,793

 

2.6%

Interest Expense

12,596

 

10,654

 

18.2%

 

12,042

 

4.6%

   Net Interest Income

124,680

 

103,438

 

20.5%

 

121,751

 

2.4%

Provision for Loan Losses

6,495

 

4,700

 

38.2%

 

5,714

 

13.7%

   Net Interest Income After Provision for Loan Losses

118,185

 

98,738

 

19.7%

 

116,037

 

1.9%

Service Charges

10,153

 

7,455

 

36.2%

 

10,205

 

(0.5%)

ATM / Debit Card Fee Income

3,331

 

2,493

 

33.6%

 

3,287

 

1.3%

BOLI Proceeds and Cash Surrender Value Income

1,050

 

900

 

16.7%

 

1,047

 

0.4%

Mortgage Income

13,646

 

12,356

 

10.4%

 

14,263

 

(4.3%)

Gain (Loss) on Sale of Investments, Net

164

 

19

 

778.3%

 

582

 

(71.9%)

Title Revenue

5,486

 

4,327

 

26.8%

 

5,577

 

(1.6%)

Broker Commissions

3,960

 

4,986

 

(20.6%)

 

5,297

 

(25.2%)

Other Non-interest Income

9,282

 

6,179

 

50.2%

 

6,854

 

35.4%

   Total Non-interest Income

47,072

 

38,715

 

21.6%

 

47,112

 

(0.1%)

Salaries and Employee Benefits

65,445

 

59,403

 

10.2%

 

64,934

 

0.8%

Occupancy and Equipment

14,594

 

13,986

 

4.3%

 

14,883

 

(1.9%)

Amortization of Acquisition Intangibles

1,618

 

1,177

 

37.5%

 

1,623

 

(0.3%)

Other Non-interest Expense

37,725

 

28,108

 

34.2%

 

38,920

 

(3.1%)

   Total Non-interest Expense

119,382

 

102,674

 

16.3%

 

120,360

 

(0.8%)

   Income Before Income Taxes

45,875

 

34,779

 

31.9%

 

42,789

 

7.2%

Income Tax Expense 

9,939

 

9,175

 

8.3%

 

11,897

 

(16.5%)

   Net Income 

$        35,936

 

$       25,604

 

40.4%

 

$         30,892

 

16.3%

   Preferred Stock Dividends

-

 

-

 

-

 

-

 

-

   Earnings Available to Common Shareholders - Basic

35,936

 

25,604

 

40.4%

 

30,892

 

16.3%

   Earnings Allocated to Unvested Restricted Stock

(530)

 

(456)

 

16.3%

 

(465)

 

13.9%

   Earnings Available to Common Shareholders - Diluted 

$        35,406

 

$       25,148

 

40.8%

 

$         30,427

 

16.4%

Earnings Per Share, Diluted

$            1.07

 

$            0.86

 

24.9%

 

$             0.92

 

16.3%

Impact of Non-Operating Items (Non-GAAP)

$           (0.02)

 

$            0.01

 

(533.0%)

 

$             0.12

 

(120.8%)

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

$            1.05

 

$            0.87

 

21.0%

 

$             1.04

 

0.9%

                   

NUMBER OF SHARES OUTSTANDING

                 

Basic Shares - All Classes  (Average)

33,332,691

 

29,673,358

 

12.3%

 

33,309,881

 

0.1%

Diluted Shares - Common Shareholders (Average)

32,947,152

 

29,236,174

 

12.7%

 

32,926,969

 

0.1%

Book Value Shares  (Period End)  (1)

33,453,404

 

29,786,544

 

12.3%

 

33,440,859

 

0.0%

                   
 

2014

 

2013

INCOME STATEMENT

Fourth

 

Third

 

Second

 

First

 

Fourth

 

Quarter

 

Quarter 

 

Quarter

 

Quarter

 

Quarter

                   

Interest Income

$     137,276

 

$     133,793

 

$      119,514

 

$      114,232

 

$      114,092

Interest Expense

12,596

 

12,042

 

10,241

 

9,824

 

10,654

   Net Interest Income

124,680

 

121,751

 

109,273

 

104,408

 

103,438

 Provision for Loan Losses

6,495

 

5,714

 

4,748

 

2,103

 

4,700

   Net Interest Income After Provision for Loan Losses

118,185

 

116,037

 

104,525

 

102,305

 

98,738

Total Non-interest Income

47,072

 

47,112

 

43,761

 

35,681

 

38,715

Total Non-interest Expense

119,382

 

120,360

 

127,309

 

107,428

 

102,674

   Income Before Income Taxes

45,876

 

42,789

 

20,977

 

30,558

 

34,779

Income Tax Expense 

9,939

 

11,897

 

4,749

 

8,163

 

9,175

   Net Income

$        35,936

 

$       30,892

 

$        16,227

 

$         22,395

 

$         25,604

   Preferred Stock Dividends

-

 

-

 

-

 

-

 

-

   Earnings Available to Common Shareholders - Basic

35,936

 

30,892

 

16,227

 

22,395

 

25,604

   Earnings Allocated to Unvested Restricted Stock

(530)

 

(465)

 

(258)

 

(405)

 

(456)

   Earnings Available to Common Shareholders - Diluted

$        35,406

 

$       30,427

 

$        15,969

 

$         21,990

 

$         25,148

                   

Earnings Per Share, Basic

$            1.08

 

$            0.93

 

$            0.53

 

$             0.75

 

$             0.86

                   

Earnings Per Share, Diluted 

$            1.07

 

$            0.92

 

$            0.53

 

$             0.75

 

$             0.86

                   

Book Value Per Common Share

$          55.39

 

$         54.32

 

$          53.79

 

$           52.04

 

$           51.40

Tangible Book Value Per Common Share

$          39.11

 

$         37.83

 

$          37.30

 

$           37.59

 

$           37.17

                   

Return on Average Assets

0.91%

 

0.79%

 

0.46%

 

0.68%

 

0.77%

Return on Average Common Equity

7.78%

 

6.78%

 

3.99%

 

5.83%

 

6.62%

Return on Average Tangible Common Equity

11.46%

 

10.10%

 

5.88%

 

8.36%

 

9.43%

   

(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 Year Ended

INCOME STATEMENT

December 31,

 

2014

 

2013

 

% Change

           

Interest Income

$     504,815

 

$     437,197

 

15.5%

Interest Expense

44,704

 

46,953

 

(4.8%)

   Net Interest Income

460,111

 

390,244

 

17.9%

Provision for Loan Losses

19,060

 

5,145

 

N/M

   Net Interest Income After Provision for Loan Losses

441,051

 

385,099

 

14.5%

Service Charges

35,573

 

28,871

 

23.2%

ATM / Debit Card Fee Income

12,023

 

9,510

 

26.4%

BOLI Proceeds and Cash Surrender Value Income

5,473

 

3,647

 

50.1%

Mortgage Income

51,797

 

64,197

 

(19.3%)

Gain on Sale of Investments, net

773

 

2,334

 

(66.9%)

Title Revenue

20,492

 

20,526

 

(0.2%)

Broker Commissions

18,783

 

16,333

 

15.0%

Other Non-interest Income

28,714

 

23,540

 

22.0%

   Total Non-interest Income

173,628

 

168,958

 

2.8%

Salaries and Employee Benefits

259,086

 

244,981

 

5.8%

Occupancy and Equipment

59,571

 

58,037

 

2.6%

Amortization of Acquisition Intangibles

5,807

 

4,720

 

23.0%

Other Non-interest Expense

150,015

 

165,347

 

(9.3%)

   Total Non-interest Expense

474,479

 

473,085

 

0.3%

   Income Before Income Taxes

140,200

 

80,972

 

73.1%

Income Tax Expense 

34,750

 

15,869

 

(119.0%)

   Net Income

$     105,450

 

$       65,103

 

62.0%

   Preferred Stock Dividends

-

 

-

 

-

   Earnings Available to Common Shareholders - Basic

$     105,450

 

$       65,103

 

62.0%

   Earnings Allocated to Unvested Restricted Stock

(1,685)

 

(1,209)

 

39.4%

   Earnings Available to Common Shareholders - Diluted

103,765

 

63,894

 

62.4%

Earnings Per Share, diluted

$            3.30

 

$            2.20

 

50.2%

 

Table 5 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

                     

LOANS

 

December 31,

 

September 30,

   

2014

 

2013

 

% Change

 

2014

 

% Change

Residential Mortgage Loans

 

$     1,080,297

 

$        586,532

 

84.2%

 

$     1,062,779

 

1.6%

Commercial Loans:

                   

   Real Estate

 

4,405,133

 

3,867,305

 

13.9%

 

4,281,704

 

2.9%

   Business

 

3,408,949

 

2,996,113

 

13.8%

 

3,225,691

 

5.7%

      Total Commercial Loans

 

7,814,082

 

6,863,418

 

13.9%

 

7,507,395

 

4.1%

Consumer Loans:

                   

   Indirect Automobile

 

397,158

 

375,236

 

5.8%

 

394,691

 

0.6%

   Home Equity

 

1,601,105

 

1,291,792

 

23.9%

 

1,567,415

 

2.1%

   Automobile

 

149,901

 

92,784

 

61.6%

 

140,287

 

6.9%

   Credit Card Loans

 

73,393

 

64,321

 

14.1%

 

69,352

 

5.8%

   Other 

 

325,108

 

217,936

 

49.2%

 

338,969

 

(4.1%)

      Total Consumer Loans

 

2,546,665

 

2,042,069

 

24.7%

 

2,510,713

 

1.4%

      Total Loans 

 

11,441,044

 

9,492,019

 

20.5%

 

11,080,887

 

3.3%

Allowance for Loan Losses

 

(130,131)

 

(143,074)

     

(134,540)

   

   Loans, Net

 

$   11,310,913

 

$     9,348,945

     

$   10,946,347

   
                     

Reserve for Unfunded Commitments 

 

(11,801)

 

(11,147)

 

5.9%

 

(12,099)

 

(2.5%)

Allowance for Credit Losses

 

(141,932)

 

(154,221)

 

(8.0%)

 

(146,639)

 

(3.2%)

                     

ASSET QUALITY DATA (1)

 

December 31,

 

September 30,

   

2014

 

2013

 

% Change

 

2014

 

% Change

Non-accrual Loans

 

$        169,686

 

$        270,428

 

(37.3%)

 

$        195,680

 

(13.3%)

Foreclosed Assets

 

905

 

1,421

 

(36.3%)

 

1,035

 

(12.5%)

Other Real Estate Owned

 

53,042

 

97,752

 

(45.7%)

 

62,351

 

(14.9%)

Accruing Loans More Than 90 Days Past Due 

 

1,708

 

2,194

 

(22.2%)

 

190

 

N/M

Total Non-performing Assets

 

$        225,341

 

$        371,795

 

(39.4%)

 

$        259,256

 

(13.1%)

                     

Loans 30-89 Days Past Due

 

$          51,141

 

$           40,918

 

25.0%

 

$          23,784

 

115.0%

                     

Non-performing Assets to Total Assets 

 

1.43%

 

2.78%

 

(48.6%)

 

1.67%

 

(14.3%)

Non-performing Assets to Total Loans and OREO 

 

1.96%

 

3.88%

 

(49.4%)

 

2.32%

 

(15.7%)

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

 

75.9%

 

52.5%

 

44.7%

 

68.8%

 

10.4%

Allowance for Loan Losses to Non-performing Assets

 

57.7%

 

38.5%

 

50.1%

 

51.9%

 

11.2%

Allowance for Loan Losses to Total Loans

 

1.14%

 

1.51%

 

(24.5%)

 

1.21%

 

(6.3%)

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

 

82.8%

 

56.6%

 

46.4%

 

74.9%

 

10.6%

Allowance for Credit Losses to Non-performing Assets 

 

63.0%

 

41.5%

 

51.8%

 

56.6%

 

11.4%

Allowance for Credit Losses to Total Loans 

 

1.24%

 

1.62%

 

(23.6%)

 

1.32%

 

(6.3%)

                     

Year to Date Charge-offs 

 

$          11,983

 

$           10,845

 

10.5%

 

$             8,571

 

N/M

Year to Date Recoveries

 

(6,396)

 

(6,887)

 

(7.1%)

 

(4,739)

 

N/M

Year to Date Net Charge-offs

 

$             5,587

 

$             3,958

 

41.1%

 

$             3,832

 

N/M

Quarter to Date Net Charge-offs

 

$             1,755

 

$             1,373

 

27.8%

 

$             2,207

 

(20.5%)

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

0.06%

 

0.06%

 

3.9%

 

0.08%

 

(22.4%)

Year to Date Net Charge-offs to Average Loans

 

0.05%

 

0.04%

 

19.5%

 

0.05%

 

1.9%

   

(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)

December 31,

 

September 30,

   

2014

 

2013

 

% Change

 

2014

 

% Change

Residential Mortgage Loans

 

$      527,694

 

$        414,372

 

27.3%

 

$        497,075

 

6.2%

Commercial Loans:

                   

   Real Estate

 

3,718,058

 

3,134,904

 

18.6%

 

3,527,612

 

5.4%

   Business

 

3,284,140

 

2,906,051

 

13.0%

 

3,093,873

 

6.1%

      Total Commercial Loans

 

7,002,198

 

6,040,955

 

15.9%

 

6,621,485

 

5.7%

Consumer Loans:

                   

   Indirect Automobile

 

396,766

 

373,383

 

6.3%

 

394,078

 

0.7%

   Home Equity

 

1,290,976

 

1,101,227

 

17.2%

 

1,229,998

 

5.0%

   Automobile

 

134,014

 

92,171

 

45.4%

 

123,446

 

8.6%

   Credit Card Loans

 

72,745

 

63,642

 

14.3%

 

68,731

 

5.8%

   Other 

 

244,321

 

202,571

 

20.6%

 

245,129

 

(0.3%)

      Total Consumer Loans

 

2,138,822

 

1,832,994

 

16.7%

 

2,061,382

 

3.8%

      Total Loans 

 

9,668,714

 

8,288,321

 

16.7%

 

9,179,942

 

5.3%

Allowance for Loan Losses

 

(76,174)

 

(67,343)

     

(72,537)

   

   Loans, Net

 

$   9,592,540

 

$     8,220,978

     

$     9,107,405

   
                     

Reserve for Unfunded Commitments

 

(11,801)

 

(11,147)

 

5.9%

 

(12,099)

 

(2.5%)

Allowance for Credit Losses

 

(87,975)

 

(78,490)

 

12.1%

 

(84,636)

 

3.9%

                     

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

 

December 31,

 

September 30,

   

2014

 

2013

 

% Change

 

2014

 

% Change

Non-accrual Loans

 

$         34,970

 

$           43,687

 

(20.0%)

 

$          38,060

 

(8.1%)

Foreclosed Assets

 

36

 

48

 

(25.1%)

 

19

 

89.6%

Other Real Estate Owned

 

21,207

 

28,224

 

(24.9%)

 

23,459

 

(9.6%)

Accruing Loans More Than 90 Days Past Due 

 

754

 

1,075

 

(29.9%)

 

4

 

N/M

Total Non-performing Assets

 

$         56,967

 

$           73,034

 

(22.0%)

 

$          61,542

 

(7.4%)

                     

Loans 30-89 Days Past Due

 

$         29,567

 

$           21,391

 

38.2%

 

$          12,441

 

137.7%

                     

Troubled Debt Restructurings (2)

 

3,639

 

19,877

 

(81.7%)

 

3,421

 

6.3%

Current Troubled Debt Restructurings (3)

 

1,430

 

1,376

 

3.9%

 

1,093

 

30.8%

                     

Non-performing Assets to Total Assets 

 

0.41%

 

0.61%

 

(32.9%)

 

0.46%

 

(10.1%)

Non-performing Assets to Total Loans and OREO 

 

0.59%

 

0.88%

 

(33.1%)

 

0.67%

 

(12.1%)

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

 

213.2%

 

150.4%

 

41.7%

 

190.6%

 

11.9%

Allowance for Loan Losses to Non-performing Assets

 

133.7%

 

92.2%

 

45.0%

 

117.9%

 

13.4%

Allowance for Loan Losses to Total Loans

 

0.79%

 

0.81%

 

(3.0%)

 

0.79%

 

(0.3%)

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

 

246.3%

 

175.3%

 

40.4%

 

222.3%

 

10.8%

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

 

154.4%

 

107.5%

 

43.7%

 

137.5%

 

12.3%

Allowance for Credit Losses to Total Loans (1)

 

0.91%

 

0.95%

 

(3.9%)

 

0.92%

 

(1.3%)

                     

Year to Date Charge-offs 

 

$         11,312

 

$           10,687

 

5.8%

 

$             8,242

 

N/M

Year to Date Recoveries

 

(5,870)

 

(6,819)

 

(13.9%)

 

(4,338)

 

N/M

Year to Date Net Charge-offs (Recoveries)

 

$           5,442

 

$             3,868

 

40.7%

 

$             3,904

 

N/M

Quarter to Date Net Charge-offs (Recoveries)

 

$           1,538

 

$             1,366

 

12.6%

 

$             2,131

 

(27.9%)

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

0.06%

 

0.07%

 

(6.7%)

 

0.09%

 

(31.1%)

Year to Date Net Charge-offs to Average Loans

 

0.06%

 

0.05%

 

19.2%

 

0.06%

 

(2.0%)

   

(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)

 

December 31,

 

September 30,

   

2014

 

2013

 

% Change

 

2014

 

% Change

Residential Mortgage Loans

 

$        552,603

 

$        172,160

 

221.0%

 

$        565,704

 

(2.3%)

Commercial Loans:

                   

   Real Estate

 

687,075

 

732,401

 

(6.2%)

 

754,092

 

(8.9%)

   Business

 

124,809

 

90,062

 

38.6%

 

131,818

 

(5.3%)

      Total Commercial Loans

 

811,884

 

822,463

 

(1.3%)

 

885,910

 

(8.4%)

Consumer Loans:

                   

   Indirect Automobile

 

392

 

1,853

 

(78.8%)

 

613

 

(36.0%)

   Home Equity

 

310,129

 

190,565

 

62.7%

 

337,417

 

(8.1%)

   Automobile

 

15,887

 

613

 

2491.5%

 

16,841

 

(5.7%)

   Credit Card Loans

 

648

 

679

 

(4.5%)

 

621

 

4.4%

   Other 

 

80,787

 

15,365

 

425.8%

 

93,840

 

(13.9%)

      Total Consumer Loans

 

407,843

 

209,075

 

95.1%

 

449,331

 

(9.2%)

      Total Loans Receivable

 

1,772,330

 

1,203,698

 

47.2%

 

1,900,945

 

(6.8%)

Allowance for Loan Losses

 

(53,957)

 

(75,731)

     

(62,003)

   

   Loans, Net

 

$     1,718,373

 

$     1,127,967

     

$     1,838,941

   
                     
                     

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

 

December 31,

 

September 30,

   

2014

 

2013

 

% Change

 

2014

 

% Change

Non-accrual Loans

 

$        134,716

 

$        226,741

 

(40.6%)

 

$        157,620

 

(14.5%)

Foreclosed Assets

 

869

 

1,372

 

(36.7%)

 

1,016

 

(14.5%)

Other Real Estate Owned

 

31,835

 

69,528

 

(54.2%)

 

38,892

 

(18.1%)

Accruing Loans More Than 90 Days Past Due 

 

954

 

1,119

 

(14.8%)

 

186

 

413.1%

Total Non-performing Assets

 

$        168,374

 

$        298,760

 

(43.6%)

 

$        197,714

 

(14.8%)

                     

Loans 30-89 Days Past Due

 

$          21,574

 

$           19,527

 

10.5%

 

$          11,343

 

90.2%

                     

Non-performing Assets to Total Assets 

 

9.11%

 

21.27%

 

(57.2%)

 

9.84%

 

(7.4%)

Non-performing Assets to Total Loans and OREO 

 

9.33%

 

23.44%

 

(60.2%)

 

10.19%

 

(8.4%)

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

 

39.8%

 

33.2%

 

19.7%

 

39.3%

 

1.2%

Allowance for Loan Losses to Non-performing Assets

 

32.0%

 

25.3%

 

26.4%

 

31.4%

 

2.2%

Allowance for Loan Losses to Total Loans

 

3.04%

 

6.29%

 

(51.6%)

 

3.26%

 

(6.7%)

                     

Year to Date Charge-offs 

 

$                671

 

$               158

 

 N/M 

 

$                329

 

 N/M 

Year to Date Recoveries

 

(526)

 

(68)

 

 N/M 

 

(401)

 

 N/M 

Year to Date Net Charge-offs (Recoveries)

 

145

 

90

 

60.6%

 

(72)

 

 N/M 

Quarter to Date Net Charge-offs (Recoveries)

 

217

 

7

 

 N/M 

 

76

 

 N/M 

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

0.05%

 

0.00%

 

 N/M 

 

0.02%

 

 N/M 

Year to Date Net Charge-offs to Average Loans

 

0.01%

 

0.01%

 

(39.4%)

 

-0.01%

 

 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)

 

 

           
                               

As Reported (US GAAP)

                             
   

4Q 2013

   

1Q 2014

   

2Q 2014

   

3Q 2014

   

4Q 2014

 
 

 Income 

Average Balance

Yield

 Income 

Average Balance

Yield

 Income 

Average Balance

Yield

 Income 

Average Balance

Yield

 Income 

Average Balance

Yield

                               

Legacy Loans, net

$      82.3

$    7,923

4.09%

$      84.2

$    8,325

4.06%

$    87.9

$    8,644

4.04%

$    91.1

$    9,019

3.97%

$    94.5

$      9,439

3.94%

Acquired Loans, net

11.1

498

8.71%

11.0

535

8.23%

12.6

730

6.86%

24.1

1,432

6.63%

24.1

1,370

6.94%

                               

Covered Loans, net

37.2

751

19.46%

25.9

691

15.00%

23.0

625

14.70%

30.2

559

21.64%

18.1

463

15.29%

FDIC Indemnification Asset

(29.1)

189

-60.36%

(19.3)

155

-49.83%

(17.0)

131

-51.22%

(25.1)

111

-88.25%

(13.2)

86

-60.36%

Covered Loans, net of Indemnification Asset Amortization

$        8.0

$       940

3.43%

$        6.7

$       846

3.18%

$        6.0

$       756

3.16%

$        5.1

$       670

3.07%

$        4.9

$         549

3.57%

                               

Adjustments

                             
   

 4Q 2013 

   

 1Q 2014 

   

 2Q 2014 

   

 3Q 2014 

   

 4Q 2014 

 
 

 Income 

 Average Balance 

Yield

 Income 

 Average Balance 

Yield

 Income 

 Average Balance 

Yield

 Income 

 Average Balance 

Yield

 Income 

 Average Balance 

Yield

                               

Legacy Loans, net

$          -

$          -

0.00%

$          -

$          -

0.00%

$          -

$          -

0.00%

$          -

$          -

0.00%

$          -

$           -

0.00%

Acquired Loans, net

(3.7)

70

-3.59%

(4.2)

65

-3.79%

(2.9)

67

-2.03%

(6.4)

72

-1.97%

(6.5)

67

-2.06%

                               

Covered Loans, net

(27.5)

123

-15.20%

(17.5)

106

-10.82%

(13.7)

95

-9.58%

(22.8)

84

-17.07%

(12.8)

74

-10.72%

FDIC Indemnification Asset

29.1

(189)

60.36%

19.3

(155)

49.83%

17.0

(131)

51.22%

25.1

(111)

88.25%

13.2

(86)

60.36%

Covered Loans, net of Indemnification Asset Amortization

$        1.6

$        (66)

0.83%

$        1.7

$        (48)

1.01%

$        3.3

$        (37)

1.96%

$        2.3

$        (27)

1.50%

$        0.4

$         (12)

1.00%

                               

As Adjusted (Cash Yield, Non-GAAP)

                             
   

 4Q 2013 

   

 1Q 2014 

   

 2Q 2014 

   

 3Q 2014 

   

 4Q 2014 

 
 

 Income 

 Average Balance 

Yield

 Income 

 Average Balance 

Yield

 Income 

 Average Balance 

Yield

 Income 

 Average Balance 

Yield

 Income 

 Average Balance 

Yield

                               

Legacy Loans, net

$      82.3

$    7,923

4.09%

$      84.2

$    8,325

4.06%

$    87.9

$    8,644

4.04%

$    91.1

$    9,019

3.97%

$    94.5

$      9,439

3.94%

Acquired Loans, net

7.4

568

5.12%

6.7

600

4.45%

9.7

797

4.83%

17.6

1,504

4.66%

17.6

1,436

4.88%

                               

Covered Loans, net

9.7

874

4.26%

8.4

798

4.18%

9.3

719

5.13%

7.4

642

4.57%

5.3

537

4.57%

FDIC Indemnification Asset

-

-

0.00%

0.0

-

0.00%

0.0

-

0.00%

-

(0)

0.00%

-

-

0.00%

Covered Loans, net of Indemnification Asset Amortization

$        9.7

$       874

4.26%

$        8.4

$       798

4.18%

$        9.3

$       719

5.13%

$        7.4

$       642

4.57%

$        5.3

$         537

4.57%

 

                           
 

Table 8 - IBERIABANK CORPORATION

 

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

 

Taxable Equivalent Basis

 

(dollars in thousands)

                           
                           
     

For The Quarter Ended

 

December 31, 2014

 

September 30, 2014

 

December 31, 2013

     

Average 

 

Average 

 

Average 

 

Average 

 

Average 

 

Average 

 

Interest 

 

Balance

 

Yield/Rate (%)

 

Balance 

 

Yield/Rate (%)

 

Balance

 

Yield/Rate (%)

ASSETS

                         

Earning  Assets:

                         

Loans Receivable: 

                         

Mortgage Loans

$        13,094

 

$       1,069,555

 

4.90%

 

$       1,104,692

 

4.82%

 

$          570,480

 

6.12%

Commercial Loans (TE) (1)

89,574

 

7,656,992

 

4.65%

 

7,467,598

 

5.24%

 

6,570,033

 

5.57%

Consumer and Other Loans

33,994

 

2,545,205

 

5.30%

 

2,437,544

 

5.47%

 

2,031,977

 

5.82%

Total Loans 

136,662

 

11,271,752

 

4.82%

 

11,009,834

 

5.25%

 

9,172,490

 

5.66%

Loss Share Receivable

(13,224)

 

85,733

 

-60.36%

 

111,383

 

-88.25%

 

188,932

 

-60.36%

       Total Loans and Loss Share Receivable

123,438

 

11,357,485

 

4.32%

 

11,121,217

 

4.31%

 

9,361,422

 

4.33%

Mortgage Loans Held for Sale

1,200

 

121,438

 

3.95%

 

163,510

 

3.90%

 

112,499

 

4.06%

Investment  Securities (TE) (1)(2)

11,766

 

2,234,236

 

2.24%

 

2,137,736

 

2.20%

 

2,129,679

 

2.21%

Other  Earning Assets

872

 

431,603

 

0.80%

 

567,895

 

0.60%

 

250,295

 

0.94%

Total  Earning Assets

137,276

 

14,144,762

 

3.88%

 

13,990,358

 

3.83%

 

11,853,895

 

3.87%

 Allowance for Loan Losses 

   

(134,177)

     

(133,443)

     

(148,030)

   

Non-earning Assets

   

1,604,439

     

1,619,995

     

1,409,306

   

Total Assets

   

$     15,615,024

     

$     15,476,910

     

$     13,115,171

   
                           

LIABILITIES AND SHAREHOLDERS' EQUITY

                         

Interest-bearing liabilities

                         

   Deposits:

                         

      NOW Accounts

$          1,526

 

$       2,271,836

 

0.27%

 

$       2,228,378

 

0.28%

 

$       2,145,036

 

0.32%

      Savings and Money Market Accounts

3,695

 

4,908,247

 

0.30%

 

4,877,051

 

0.29%

 

4,329,985

 

0.26%

      Certificates of Deposit

4,272

 

2,105,623

 

0.80%

 

2,060,055

 

0.77%

 

1,787,643

 

0.79%

         Total Interest-bearing Deposits

9,493

 

9,285,706

 

0.41%

 

9,165,484

 

0.39%

 

8,262,664

 

0.39%

   Short-term Borrowings

342

 

713,384

 

0.19%

 

919,869

 

0.17%

 

335,691

 

0.15%

   Long-term Debt

2,761

 

395,410

 

2.73%

 

358,970

 

2.75%

 

280,925

 

3.37%

         Total Interest-bearing Liabilities

12,596

 

10,394,500

 

0.48%

 

10,444,323

 

0.46%

 

8,879,280

 

0.47%

Non-interest-bearing Demand Deposits

   

3,228,773

     

3,057,513

     

2,572,599

   

Non-interest-bearing Liabilities

   

159,818

     

168,261

     

128,249

   

         Total Liabilities

   

13,783,091

     

13,670,097

     

11,580,128

   

Shareholders' Equity

   

1,831,933

     

1,806,813

     

1,535,043

   

         Total Liabilities and Shareholders' Equity

   

$     15,615,024

     

$     15,476,910

     

$     13,115,171

   
                           
                           

Net Interest Spread

   

$          124,680

 

3.41%

 

$          121,751

 

3.38%

 

$          103,438

 

3.40%

Tax-equivalent Benefit

   

2,055

 

0.06%

 

2,134

 

0.06%

 

2,271

 

0.08%

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

   

$          126,735

 

3.53%

 

$          123,885

 

3.49%

 

$          105,709

 

3.52%

   

(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 Year Ended

 

December 31, 2014

 

December 31, 2013

     

Average 

 

Average 

     

Average 

 

Average 

 

Interest 

 

Balance

 

Yield/Rate (%)

 

Interest 

 

Balance

 

Yield/Rate (%)

ASSETS

                     

Earning  Assets:

                     

Loans Receivable: 

                     

Mortgage Loans

$        44,563

 

$            869,510

 

5.13%

 

$           30,598

 

$          520,872

 

5.87%

Commercial Loans (TE) (1)

359,801

 

7,284,247

 

4.95%

 

350,451

 

6,386,364

 

5.50%

Consumer and Other Loans

122,342

 

2,310,339

 

5.30%

 

107,887

 

1,954,766

 

5.52%

Total Loans 

526,706

 

10,464,096

 

5.04%

 

488,936

 

8,862,002

 

5.53%

Loss Share Receivable

(74,617)

 

120,567

 

-61.04%

 

(97,849)

 

266,856

 

-36.16%

       Total Loans and Loss Share Receivable

452,089

 

10,584,663

 

4.29%

 

391,087

 

9,128,858

 

4.31%

Mortgage Loans Held for Sale

5,153

 

130,425

 

3.95%

 

5,108

 

144,961

 

3.52%

Investment  Securities (TE) (1)(2)

44,677

 

2,148,963

 

2.23%

 

38,230

 

2,081,523

 

2.01%

Other  Earning Assets

2,896

 

371,490

 

0.78%

 

2,772

 

380,050

 

0.73%

Total  Earning Assets

504,815

 

13,235,541

 

3.85%

 

437,197

 

11,735,392

 

3.78%

 Allowance for Loan Losses 

   

(134,830)

         

(184,217)

   

Non-earning Assets

   

1,531,974

         

1,452,813

   

Total Assets

   

$       14,632,685

         

$     13,003,988

   
                       

LIABILITIES AND SHAREHOLDERS' EQUITY

                     

Interest-bearing liabilities

                     

   Deposits:

                     

      NOW Accounts

$           6,006

 

$         2,240,137

 

0.27%

 

$             7,557

 

$       2,337,831

 

0.32%

      Savings and Money Market Accounts

12,803

 

4,616,026

 

0.28%

 

11,685

 

4,207,343

 

0.28%

      Certificates of Deposit

14,281

 

1,889,858

 

0.76%

 

16,604

 

1,964,702

 

0.85%

         Total Interest-bearing Deposits

33,090

 

8,746,021

 

0.38%

 

35,846

 

8,509,876

 

0.42%

   Short-term Borrowings

1,364

 

782,033

 

0.17%

 

490

 

303,352

 

0.16%

   Long-term Debt

10,250

 

335,211

 

3.02%

 

10,617

 

316,775

 

3.31%

         Total Interest-bearing Liabilities

44,704

 

9,863,265

 

0.45%

 

46,953

 

9,130,003

 

0.51%

Non-interest-bearing Demand Deposits

   

2,916,509

         

2,216,959

   

Non-interest-bearing Liabilities

   

144,861

         

129,833

   

         Total Liabilities

   

12,924,635

         

11,476,795

   

Shareholders' Equity

   

1,708,050

         

1,527,193

   

         Total Liabilities and Shareholders' Equity

   

$       14,632,685

         

$     13,003,988

   
                       
                       

Net Interest Spread

   

$            460,111

 

3.40%

     

$          390,244

 

3.26%

Tax-equivalent Benefit

   

8,609

 

0.06%

     

9,452

 

0.08%

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

   

$            468,720

 

3.51%

     

$          399,696

 

3.38%

   

(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

 

December 31, 2014

 

September 30, 2014

 

December 31, 2013

           

Net Interest Income (GAAP)

$                      124,680

 

$                        121,751

 

$                      103,438

Effect of Tax Benefit on Interest Income

2,055

 

2,134

 

2,271

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

126,735

 

123,885

 

105,709

Non-interest Income (GAAP)

47,072

 

47,112

 

38,715

Effect of Tax Benefit on Non-interest Income

566

 

564

 

485

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

47,638

 

47,676

 

39,200

Taxable Equivalent Revenues (Non-GAAP) (1)

174,373

 

171,561

 

144,909

   Securities Gains and other non-interest income

(374)

 

(582)

 

(19)

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

$                      173,999

 

$                        170,979

 

$                      144,890

           

Total Non-interest Expense (GAAP)

$                      119,382

 

$                        120,360

 

$                      102,674

Less Intangible Amortization Expense

(1,618)

 

(1,623)

 

(1,177)

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

117,764

 

118,737

 

101,497

Merger-related expenses

1,955

 

1,752

 

566

Severance expenses

139

 

1,226

 

216

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

1,078

 

4,213

 

(225)

(Reversal of) Provision for FDIC clawback liability

-

 

(797)

 

-

Other non-operating non-interest expense

2

 

1

 

(311)

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

$                      114,590

 

$                        112,342

 

$                      101,251

           

Return on Average Common Equity (GAAP)

7.78%

 

6.78%

 

6.62%

Effect of Intangibles (2)

3.68%

 

3.32%

 

2.81%

Effect of Non Operating Revenues and Expenses

(0.29%)

 

1.19%

 

0.05%

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

11.17%

 

11.29%

 

9.47%

           

Efficiency Ratio (GAAP)

69.5%

 

71.3%

 

72.2%

    Effect of Tax Benefit Related to Tax-exempt Income

(1.0%)

 

(1.1%)

 

(1.3%)

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

68.5%

 

70.2%

 

70.9%

    Effect of Amortization of Intangibles

(0.9%)

 

(0.9%)

 

(0.8%)

    Effect of Non-operating Items

(1.7%)

 

(3.6%)

 

(0.2%)

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

65.9%

 

65.7%

 

69.9%

   

(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

 

December 31, 2014

 

September 30, 2014

 

December 31, 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)

$      45,875

$        35,936

$          1.07

 

$            42,789

$         30,892

$         0.92

 

$           34,779

$              25,604

$          0.86

                       

Non-interest income adjustments

                     

Gain on sale of investments and other non-interest income

(374)

(243)

(0.01)

 

(582)

(378)

(0.01)

 

(19)

(12)

(0.00)

                       

Non-interest expense adjustments

                     

Merger-related expenses

1,955

1,496

0.04

 

1,752

1,139

0.04

 

566

368

0.01

Severance expenses

139

91

0.00

 

1,226

797

0.02

 

216

141

0.00

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

1,078

701

0.02

 

4,213

2,738

0.08

 

(225)

(146)

(0.00)

(Reversal of) Provision for FDIC clawback liability

-

-

-

 

(797)

(518)

(0.02)

 

-

-

-

Other non-operating non-interest expense

2

1

(0.00)

 

1

1

(0.00)

 

(311)

(202)

(0.01)

    Total non-interest expense adjustments

3,174

2,289

0.07

 

6,394

4,156

0.12

 

246

161

0.01

                       

Income tax benefits

-

(2,959)

(0.09)

 

-

-

-

 

-

-

-

Operating earnings (Non-GAAP)

48,675

35,023

1.05

 

48,602

34,671

1.04

 

35,006

25,753

0.87

Covered and acquired (reversal of) provision for loan losses

2,474

1,608

0.05

 

1,692

1,100

0.03

 

79

51

0.00

Other provision for loan losses

4,021

2,614

0.08

 

4,022

2,614

0.08

 

4,621

3,004

0.10

Pre-provision operating earnings (Non-GAAP)

$      55,170

$       39,245

$          1.17

 

$           54,316

$           38,385

$         1.15

 

$             39,706

$               28,808

$          0.97

   

(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 Year Ended

 

December 31, 2014

 

December 31, 2013

 

Dollar Amount

   

Dollar Amount

 
 

Pre-tax 

After-tax (2)

 Per share 

 

Pre-tax 

After-tax (2)

 Per share 

Net Income (Loss) (GAAP)

$        140,200

$        105,450

$            3.30

 

$            80,972

$          65,103

$          2.20

               

Non-interest income adjustments

             

Gain on sale of investments and other non-interest income

(2,757)

(2,319)

(0.07)

 

(2,334)

(1,517)

(0.05)

               

Non-interest expense adjustments

             

Merger-related expenses

15,093

10,104

0.32

 

783

509

0.02

Severance expenses

6,951

4,518

0.14

 

2,538

1,649

0.05

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

7,073

4,597

0.14

 

37,183

24,169

0.81

(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

200

130

0.01

 

934

608

0.03

Total non-interest expense adjustments

28,520

18,831

0.59

 

44,542

28,952

0.97

               

Income tax benefits

-

(2,959)

(0.09)

 

-

-

-

Operating earnings (Non-GAAP)

165,963

119,004

3.73

 

123,180

92,538

3.12

Covered and acquired (reversal of) provision for loan losses

6,018

3,912

0.12

 

(786)

(511)

(0.02)

Other (reversal of) provision for loan losses

13,042

8,477

0.27

 

5,932

3,856

0.13

Pre-provision operating earnings (Non-GAAP)

$        185,023

$         131,392

$            4.12

 

$         128,326

$          95,883

$        3.23

   

(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