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

LAFAYETTE, La., April 22, 2015 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 128-year-old IBERIABANK (www.iberiabank.com), reported operating results for the first quarter ended March 31, 2015.  For the quarter, the Company reported income available to common shareholders of $25.1 million, or $0.75 fully diluted earnings per share ("EPS").  In the first quarter of 2015, the Company incurred non-operating expenses net of non-operating revenue equal to $10.0 million on a pre-tax basis, or $0.20 per share on an after-tax basis.   Excluding non-operating items, EPS in the first quarter of 2015 was $0.95 per share on a non-GAAP operating basis (refer to press release supplemental table.)  

The Company completed the acquisition of Florida Bank Group, Inc. ("Florida Bank Group") on February 28, 2015, and Old Florida Bancshares, Inc. ("Old Florida") on March 31, 2015. 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 Company incurred approximately $9.3 million in pre-tax acquisition and conversion-related costs during the first quarter of 2015.

Florida Bank Group was headquartered in Tampa, Florida, and added 12 bank offices in the Tampa Bay area, Jacksonville, and Tallahassee.  The acquisition added $305 million in loans (after preliminary discounts) and $392 million in deposits.  The conversions of branch and operating systems of Florida Bank Group were successfully completed on March 14-15, 2015.  

Old Florida was headquartered in Orlando, Florida, and added 14 bank offices in Orlando and surrounding areas.  The acquisition added $1.1 billion in loans (after preliminary discounts) and $1.4 billion in deposits.  The conversions of branch and operating systems are anticipated to be completed in the second quarter of 2015.

The Company signed a definitive agreement to acquire by merger Georgia Commerce Bancshares, Inc. ("Georgia Commerce") based in Atlanta, Georgia.  The pending acquisition received regulatory approval, the registration statement was declared effective by the Securities and Exchange Commission, and the special meeting of Georgia Commerce shareholders is scheduled for May 21, 2015.  At December 31, 2014, Georgia Commerce had total assets of $1.0 billion, gross loans of $746 million, total deposits of $858 million, and nine bank offices.  The Company anticipates closing the transaction on May 31, 2015, subject to the approval of Georgia Commerce shareholders.

Daryl G. Byrd, President and Chief Executive Officer, commented, "We welcome the shareholders of Florida Bank Group and Old Florida to our Company.  The branch and operating conversions of Florida Bank Group were successfully completed in 13 days after closing and Old Florida's conversions are expected to be completed within 46 days of closing.  Pending approval of their shareholders, the Georgia Commerce merger is scheduled to be completed in 39 days with conversions to be completed by the end of the second quarter, or within 26 days of closing.  We are very excited about the growth prospects, synergies, diversifications, and 35 banks offices that these three mergers bring to our clients and Company."

Byrd continued, "We had a solid first quarter with a one-basis point increase in the margin on a linked quarter basis, 7% annualized legacy loan growth and 11% annualized legacy deposit growth (with particular strength in non-interest bearing and money market deposits), and the results were within a penny of our budgeted and forecasted operating EPS results for the first quarter. A few 'timing-related' items masked the true strength of the quarter's operating results, including enhancing the reserves for energy credits and related markets to buffer against potential loses given current industry conditions, some non-recurring benefit expenses, and FDIC recovery expenses – all of which we consider to be operating in nature.  We feel very good about the second quarter, with seasonal influences abating, synergies from Florida Bank, and strength of the mortgage business.  Based on current market interest rate expectations and assumptions, we remain comfortable with the previously provided guidance range for operating EPS for the full year of 2015 in the range of $4.45 to $4.50 per share, equal to a 19% to 21% increase compared to 2014 operating results."

Highlights for the first quarter of 2015 and March 31, 2015:

 

  • The net interest margin increased one basis point on a linked quarter basis to 3.54%, which was slightly above management's expectations.
  • Energy-related loans declined $61 million, or 7%, between December 31, 2014 and March 31, 2015, due to loan pay-downs and pay-offs.  Energy-related loans declined from 7.7% of total loans at year-end 2014 to 6.4% at March 31, 2015. The Company expects energy-related loans to be less than 6.0% of total loans upon completion of the Georgia Commerce acquisition. During the first quarter of 2015, the Company accrued $1.3 million in provisions for loan loss and unfunded commitments associated with the Company's energy portfolio and market exposure. At March 31, 2015, the Company had accrued $9.8 million in aggregate reserves for energy-related loans and unfunded commitments.  The Company continues to forecast little or no losses on the exploration and production or midstream energy loans outstanding (69% of energy loans outstanding at March 31, 2015.)
  • Total loan growth was $1.4 billion, or 13%, between December 31, 2014 and March 31, 2015. Despite a $61 million decline in energy-related loans and $30 million decline in indirect automobile loans between quarter-ends, legacy loan growth, which excludes all assets covered under FDIC loss share agreements and other non-covered acquired assets (collectively, "Acquired Assets"), increased $181 million, or 2% (7% annualized rate). The legacy loan growth was spread between commercial (38%), small business (22%), consumer (25%), and mortgage (14%).
  • Total deposits increased $2.1 billion, or 17%, between quarter-ends, and increased $351 million, or 3%, excluding acquisitions (11% annualized rate).  Legacy non-interest-bearing and money market deposits increased by 27% and 14%, respectively, on an annualized growth rate basis.
  • Operating results were impacted by seasonal influences and one month's results from Florida Bank (prior to the achievement of anticipated synergistic benefits).  On a linked quarter basis, operating revenues increased $2.9 million, while operating expenses increased $6.8 million.  Operating revenues included seasonal declines in service charges on deposit accounts (down $0.9 million), title income (down $0.9 million), and credit card income (down $0.8 million).  In addition, seasonally fewer business days negatively impacted net interest income by $2.2 million.  On an operating basis, the Company incurred $1.5 million in FDIC recovery expenses that will be reversed primarily over the next two years and $0.6 million in non-recurring benefit costs.

 

Table A - Summary Financial Results

   
 

For the Quarter Ended:

Linked Quarter

Selected Financial Data

3/31/2014

12/31/2014

3/31/2015

% Change

Net Income ($ in thousands)

$   22,336

$   35,936

$    25,126

-30%

           

Per Share Data:

         

Fully Diluted Earnings 

$       0.75

$       1.07

$        0.75

-31%

Operating Earnings (Non-GAAP)

0.73

1.05

0.95

-10%

Pre-provision Operating Earnings  (Non-GAAP)

0.78

1.17

1.05

-11%

Tangible Book Value 

37.56

39.08

39.26

0%

           
 

As of and for the Quarter Ended:

Linked Quarter

       

Basis Point

Key Ratios 

3/31/2014

12/31/2014

3/31/2015

Change

           

Return on Average Assets

0.68%

0.91%

0.64%

(27)

bps

Return on Average Common Equity

5.82%

7.79%

5.40%

(239)

bps

Return on Average Tangible Common Equity (Non-GAAP)

8.35%

11.46%

7.93%

(353)

bps

Net Interest Margin (TE) (1)

3.54%

3.53%

3.54%

1

bps

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

73.5%

65.9%

68.5%

268

bps

Tangible Common Equity Ratio (Non-GAAP)

8.60%

8.59%

8.62%

3

bps

Tier 1 Leverage Ratio (4)

9.61%

9.36%

9.04%

(32)

bps

Common Equity Tier 1 (CET1) Ratio (4)

   

9.79%

   

Total Risk Based Capital Ratio (4)

12.68%

12.30%

11.62%

(68)

bps

Net Charge-Offs to Average Loans (2)

0.05%

0.06%

0.06%

0

bps

Non-performing Assets to Total Assets (2)

0.49%

0.41%

0.55%

14

bps

           
 

For the Quarter Ended:

   
 

GAAP

 

Non-GAAP

   

Adjusted Selected Key Ratios

3/31/2015

Adjustments(3)

3/31/2015

   
           

Return on Average Assets

0.64%

0.17%

0.81%

   

Return on Average Common Equity

5.40%

1.41%

6.81%

   

Return on Average Tangible Common Equity (Non-GAAP)

7.93%

2.00%

9.93%

   

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

74.2%

(5.7%)

68.5%

   
           

(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 9, net of tax    where applicable, without adjustment to any balance sheet accounts.

 

(4)March 31, 2015 Captial Ratios reflect the implementation of  Basel III capital requirements, excluding the impact of the Old Florida Bancshares, Inc. acquisition. Prior periods have not been restated to reflect BASEL III implementation.

 
   

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 $312 million, or 2%, as average loans increased $280 million, or 2%, average indemnification assets ("IA") declined $20 million, or 23%, average investment securities increased $73 million, or 3%, and other earning assets decreased $21 million, or 4%. Also on a linked quarter basis, the average earning asset yield increased two basis points, the cost of interest-bearing deposits decreased one basis point, and the cost of interest-bearing liabilities increased one basis point.  As a result, the net interest spread remained stable, and the net interest margin increased one basis point.  Tax-equivalent net interest income increased $1 million, or 1%, 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

 

3/31/2014

12/31/2014

3/31/2015

Change

Investment Securities

2.23%

2.24%

2.22%

(2)

bps

Covered Loans, net of loss share receivable

3.18%

3.57%

3.82%

25

bps

Legacy Loans, net

4.06%

3.94%

3.90%

(4)

bps

Non-Covered Acquired Loans, net

8.23%

6.94%

6.91%

(3)

bps

Loans & Loss Share Receivable

4.27%

4.32%

4.33%

1

bps

Mortgage Loans Held For Sale

3.69%

3.95%

4.55%

60

bps

Other Earning Assets

1.27%

0.80%

0.81%

1

bps

  Total Earning Assets

3.87%

3.88%

3.90%

2

bps

           

Interest-bearing Deposits

0.36%

0.41%

0.40%

(1)

bps

Short-Term Borrowings

0.17%

0.19%

0.19%

(0)

bps

Long-Term Borrowings

3.42%

2.73%

2.91%

18

bps

  Total Interest-bearing Liabilities

0.44%

0.48%

0.49%

1

bps

Net Interest Spread

3.43%

3.41%

3.41%

0

bps

Net Interest Margin

3.54%

3.53%

3.54%

1

bps

           

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

     
           

During the first quarter, the legacy loan yield declined four basis points, while the non-covered acquired loan yield decreased three basis points, and the net covered loan yield (net of IA amortization) increased 25 basis points.  The average covered loan volume declined $203 million, or 44%, average non-covered acquired loans increased $188 million, or 14%, and average legacy loans increased $295 million, or 3%.  As a result of changes in volumes and yields, the associated net covered income declined $2 million 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 FDIC-related loan portfolios in which non-single family residential FDIC loss share coverage expired.

In the first quarter of 2015, non-interest income on both an aggregate basis and operating basis each increased $1.8 million, or 4%, compared to the fourth quarter of 2014.  The primary changes in operating non-interest income on a linked quarter basis were:

  • Increased mortgage income of $4.4 million, or 32%; partially offset by
  • Decreased title insurance income of $0.9 million, or 16%;
  • Decreased service charge income on deposit accounts of $0.9 million, or 9%; and
  • Decreased credit card fee income of $0.8 million, or 24%.

Mortgage non-interest income increased $4.4 million on a linked quarter basis due to increased origination volume of $36 million and growth in the mortgage origination locked pipeline of $211 million.  The Company experienced unseasonably strong production and sales volumes, with less favorable pricing dynamics in the first quarter of 2015. Mortgage commission and production incentives expense (which is included in non-interest expense) increased less than $0.1 million, or 1%, on a linked quarter basis.

In the first quarter of 2015, the Company originated $495 million in residential mortgage loans, up $36 million, or 8%, on a linked quarter basis.  Client loan refinancing opportunities accounted for approximately 24% of mortgage loan applications in the first quarter of 2015, down compared to 36% in the fourth quarter of 2014.  The Company sold $442 million in mortgage loans during the first quarter of 2015, down $22 million, or 5%, on a linked quarter basis.  The mortgage origination locked pipeline and loans held for sale doubled between December 31, 2014, and March 31, 2015, to $278 million at quarter-end.  At April 17, 2015, the locked pipeline was $317 million, up $25 million, or 9%, compared to March 31, 2015.  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 March 31, 2015, up 6% compared to December 31, 2014.  Revenues for IWA increased 5% on a linked quarter basis, and were up 16% compared to the first quarter of 2014.  IBERIA Financial Services revenues increased 4% on a linked quarter basis, and were down 2% compared to the first quarter of 2014.  The rapid decline in energy prices since November 2014 resulted in a general softness in activities at IBERIA Capital Partners ("ICP") since that time.  ICP experienced a 6% increase in revenues on a linked quarter basis. Through the first 22 days of April 2015, ICP's total revenues were 82% of the unit's total revenues in the first quarter of 2015.  

Non-interest expense increased $14.0 million, or 12%, on a linked quarter basis, while operating expense increased $6.8 million, or 6%.  Operating expense changes included the following on a linked-quarter basis:

  • Increased Florida Bank Group operating expenses of $0.7 million for the month of March 2015;
  • Increased payroll tax expense (excluding Florida Bank Group) of $2.1 million;
  • Increased occupancy and equipment expense of $1.4 million;
  • Increased provision for unfunded commitments of $1.3 million;
  • Increased marketing and business development expenses of $0.7 million; and
  • Increased benefit expense of $0.9 million; partially offset by
  • Decreased professional services expenses of $0.9 million; and
  • Decreased net OREO costs of $0.7 million.

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 compared to 30.6% in the first quarter of 2015.  No additional tax benefits of this nature were realized during the first quarter of 2015.  The Company considered the tax benefit to be of a non-operating nature.

Loans

Total loans increased $1.4 billion, or 13%, between December 31, 2014, and March 31, 2015.  The Company acquired $305 million in loans in the Florida Bank Group acquisition and $1.1 billion in the Old Florida acquisition.  The loan portfolio covered under FDIC loss share protection at March 31, 2015, decreased $193 million, or 43%, compared to December 31, 2014.  Excluding covered and Acquired Assets, total loans increased $181 million, or 2% (7% annualized rate), during the first quarter. Legacy commercial loans increased $109 million, or 2% (which included $39 million in business banking loan growth, up 5%, or 18% annualized rate), legacy consumer loans increased $46 million, or 2%, and legacy mortgage loans increased $26 million, or 5%, during the quarter.  Period-end legacy loan growth during the first quarter of 2015 was strongest in the Dallas, Birmingham, Tampa Bay, Southeast Florida, and Baton Rouge markets.  Funded loan origination and renewal mix in the first quarter of 2015 was 35% fixed rate and 65% floating rate, and total loans outstanding (excluding nonaccruals) were 49% fixed and 51% floating.  Loans and commitments originated and/or renewed during the first quarter of 2015 totaled $1.0 billion (down 29% on a linked quarter basis).

 

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

 
 

Period-End Balances ($ Millions)

       
     

3/31/15

 

% Change 

 

Mix

 

3/31/14

12/31/14

Excluding
Acquired (3)

Acquired

Total

 

Year/Year (1)

Qtr/Qtr (2)

Annualized

 

12/31/14

3/31/15

                         

Commercial

$    6,142

$      7,002

$       7,111

$           -

$      7,111

 

16%

2%

6%

 

61%

55%

Consumer

1,883

2,139

2,185

-

2,185

 

16%

2%

9%

 

19%

17%

Mortgage

429

528

554

-

554

 

29%

5%

20%

 

4%

4%

Legacy Loans

$     8,453

$     9,669

$       9,850

$           -

$     9,850

 

17%

2%

7%

 

84%

76%

Acquired Loans

524

1,328

1,405

1,367

2,772

 

429%

6%

23%

 

12%

22%

Covered Loans

664

444

251

-

251

 

-62%

-43%

-174%

 

4%

2%

Total Loans

$    9,641

$    11,441

$    11,506

$    1,367

$   12,873

 

34%

1%

2%

 

100%

100%

                         
             

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

           

(2) Quarter over quarter growth excludes the impact of current period acquisitions.

           

(3) Excludes loans acquired during the current period.

           

Energy-related loans outstanding totaled $819 million at March 31, 2015, down $61 million, or 7%, compared to December 31, 2014, and equated to approximately 6.4% of total loans.  Loans to exploration and production companies accounted for 52% of energy loans outstanding and 54% of energy commitments at March 31, 2015.  Midstream companies accounted for 17% of energy loans and commitments, and service company loans accounted for 31% of energy loans and 29% 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 was exiting 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 March 31, 2015, the Company's indirect automobile lending business had approximately $367 million in loans outstanding, down $30 million, or 8%, compared to December 31, 2014 (2.9% of total loans outstanding compared to 3.5% at year-end 2014).

Deposits

Total deposits increased $2.1 billion, or 17%, from December 31, 2014 to March 31, 2015.  The Company acquired $392 million in deposits in the Florida Bank Group merger and $1.4 billion in the Old Florida merger.   Excluding the acquisitions, total deposits increased $351 million, or 3% (an 11% annualized growth rate), since year-end 2014. 

The two acquired companies had $457 million in aggregate non-interest-bearing deposits, or 25% of their aggregate total deposits.  Legacy non-interest-bearing deposits increased $212 million, or 7% (27% annualized basis), and equated to 26% of total deposits at March 31, 2015.  Legacy NOW accounts decreased $35 million, or 1%, while money market and savings account volume increased $162 million, or 3% (14% annualized basis), between December 31, 2014 and March 31, 2015.  Time deposits increased $13 million, or 1%, between quarter-ends.  Period-end deposit growth during the first quarter of 2015 was strongest in the Naples, Little Rock, Birmingham, Dallas, and Lake Charles markets.

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

 
 

Period-End Balances ($ Millions)

       
     

3/31/15

 

% Change 

 

Mix

 

3/31/14

12/31/14

Excluding
Acquired (3)

Acquired

Total

 

Year/Year(1)

Qtr/Qtr (2)

Annualized

 

12/31/14

3/31/15

                         

Non-interest

$     2,729

$       3,195

$      3,407

$      457

$    3,864

 

2%

7%

27%

 

26%

26%

NOW Accounts

2,194

2,463

2,428

302

2,730

 

24%

-1%

-6%

 

19%

19%

Savings/MMkt

4,347

4,746

4,908

888

5,796

 

33%

3%

14%

 

38%

40%

Time Deposits

1,629

2,116

2,129

149

2,278

 

40%

1%

2%

 

17%

15%

Total Deposits

$   10,899

$     12,521

$    12,872

$    1,796

$   14,668

 

35%

3%

11%

 

100%

100%

                         
             

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

           

(2) Quarter over quarter growth excludes the impact of current period acquisitions.

           

(3) Excludes deposits acquired during the current period.

           

On an average balance and linked quarter basis, non-interest-bearing deposits increased $80 million, or 2%, and interest-bearing deposits increased $152 million, or 2%.  The rate on average interest-bearing deposits in the first quarter of 2015 was 0.40%, a decrease of one basis point on a linked quarter basis.

Other Assets And Funding

On a linked quarter basis, excess liquidity averaged $320 million in the first quarter of 2015, down $33 million, or 9%, and increased to $696 million at March 31, 2015.  Also on a linked quarter basis, the investment portfolio increased $73 million, or 3%, to $2.3 billion on average in the first quarter of 2015.  On a period-end basis, the investment portfolio equated to $2.5 billion, or 14% of total assets at March 31, 2015, unchanged compared to December 31, 2014.  The investment portfolio had an effective duration of 2.7 years at March 31, 2015, compared to 2.9 years at December 31, 2014.  The investment portfolio had a $28.8 million unrealized gain at March 31, 2015.  The average yield on investment securities decreased two basis points on a linked quarter basis to 2.22% in the first quarter of 2015.  The Company holds in its investment portfolio primarily government agency securities.  Municipal securities comprised only 6.5% of total investments at March 31, 2015.  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 $34 million, or 5%, and the cost of short-term debt remained stable at 0.19%.  Average long-term debt increased $28 million, or 7%, and the cost of debt increased 18 basis points to 2.91%.  The cost of average interest-bearing liabilities was 0.49% in the first quarter of 2015, an increase of one basis point 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 April 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 December 31, 2014 and March 31, 2015, legacy NPAs increased $25 million, or 44%, due primarily to two legacy non-energy-related relationships totaling $24 million that moved to non-accrual status. The Company believes these loan relationships are well secured and sufficiently reserved to address credit concerns. The increase in NPAs also included a $2 million increase in former bank branches and related land.  At March 31, 2015, those bank-related properties in OREO totaled $14 million, or 17% of total legacy NPAs. At March 31, 2015, legacy NPAs equated to 0.55% of total assets, and 0.46% of total assets excluding bank-related properties.

Legacy loans past due 30 days or more (excluding non-accruing loans) decreased $12 million, or 41%, and represented 0.18% of total loans at March 31, 2015, compared to 0.31% at December 31, 2014. 

 

Table E – Legacy Asset Quality Summary

 

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

 
   

For Quarter Ended:

 

% or Basis Point Change

     ($ thousands)

 

3/31/2014

12/31/2014

3/31/2015

 

Year/Year

Qtr/Qtr

                   

Non-performing Assets

 

$           59,456

$           56,967

$           81,957

 

38%

 

44%

 

Note: NPAs excluding Former Bank Properties

 

50,453

45,411

68,353

 

35%

 

51%

 
                   

Past Due Loans (excluding non-accrual loans)

 

11,453

30,321

17,845

 

56%

 

-41%

 

Classified Assets

 

64,476

78,890

91,248

 

42%

 

16%

 
                   

Non-performing Assets/Assets

 

0.49%

0.41%

0.55%

 

6

 bps 

14

 bps 

NPAs/(Loans + OREO)

 

0.70%

0.59%

0.83%

 

13

 bps 

24

 bps 

Classified Assets/Total Assets

 

0.53%

0.57%

0.61%

 

8

 bps 

4

 bps 

Past Due Loans/Loans

 

0.14%

0.31%

0.18%

 

4

 bps 

(13)

 bps 

                   

Provision For Loan Losses

 

$            1,995

$            4,998

$            4,176

 

109%

 

-16%

 

Net Charge-Offs/(Recoveries)

 

1,014

1,538

1,578

 

56%

 

3%

 

Provision Less Net Charge-Offs

 

$               981

$            3,460

$            2,598

 

165%

 

-25%

 
                   

Net Charge-Offs/Average Loans

 

0.05%

0.06%

0.06%

 

1

 bps 

0

 bps 

Allowance For Loan Losses/Loans

 

0.81%

0.79%

0.80%

 

(1)

 bps 

1

 bps 

Allowance for Credit Losses to Total Loans

 

0.94%

0.91%

0.93%

 

(1)

 bps 

2

 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 within 12 months) 

SFR (Losing Loss Share Coverage 10 years from Acquisition)

SOP Assets (2) 

Non-SOP Assets(2) (3)

     ($ thousands)

           

Loans, net

$                  16,647

$                234,473

$                586,926

$             2,185,999

$             3,024,045

Other Real Estate Owned

3,639

7,736

20,165

-

31,540

Allowance for Loan Losses

(1,492)

(12,638)

(35,047)

(363)

(49,540)

           

Non-accrual loans

$                        17

$                  46,657

$                  77,512

$                  11,121

$                135,307

Foreclosed assets

-

-

622

1

623

Other real estate owned

3,639

7,736

15,027

4,515

30,917

Accruing Loans More Than 90 Days Past Due 

-

-

273

5,130

5,403

Non-performing Assets

3,656

54,393

93,434

20,766

172,250

           

Total Past Due Loans

$                        17

$                  49,922

$                  83,142

$                  22,858

$                155,939

           

Non-performing Assets to Total Loans and OREO

18.02%

22.46%

15.51%

0.20%

5.58%

Past Due and Non-accrual Loans to Loans

0.10%

21.29%

14.17%

0.20%

5.16%

           

Provision For Loan Losses

$                        -

$                      150

$                      811

$                      207

$                   1,169

Net Charge-Offs/(Recoveries)

-

(20)

85

92

157

Provision Less Net Charge-Offs

$                        -

$                      170

$                      726

$                      116

$                   1,012

           

Net Charge-Offs to Average Loans

0.00%

-0.03%

0.06%

0.02%

0.04%

Allowance for Loan Losses to Loans

8.96%

5.39%

5.97%

0.02%

1.64%

Allowance for Credit Losses to Total Loans

8.96%

5.39%

5.97%

0.02%

1.64%

           

Indemnification asset collectible from the FDIC and OREO 

$                        -

$                   8,832

$                        -

$                                  -

$                   8,832

 

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

(2) The classification of assets acquired from Florida Bank Group and Old Florida as SOP or Non-SOP assets is preliminary and subject to change. At March 31, 2015, Florida Bank Group loans of $11.3 million and $291.6 million are included in SOP and Non-SOP assets, respectively. Old Florida loans of $1.1 billion have been included as Non-SOP loans at March 31, 2015.

(3) Loan balance includes discounts of $75 million.

 

Capital Position

The Company maintains favorable capital strength.  At March 31, 2015, the Company reported a tangible common equity ratio of 8.62%, up three basis points compared to December 31, 2014.  At March 31, 2015, the Company's preliminary Tier 1 leverage ratio was 9.04%, down 32 basis points compared to December 31, 2014. The Company's preliminary total risk-based capital ratio at March 31, 2015, was 11.62%, down 68 basis points compared to December 31, 2014. 

Commencing in the first quarter of 2015, the Company experienced 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, the expiration of certain FDIC loss share coverage, and full implementation of risk-weighting according to BASEL III capital requirements reduced the Company's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk based capital ratio by approximately 38, 96, and 60 basis points, respectively, at March 31, 2015.

At March 31, 2015, book value per share was $56.77, up $1.40 per share, or 3%, compared to December 31, 2014. Tangible book value per share was $39.26, up $0.18 per share, or less than 1%, compared to December 31, 2014.  Based on the closing stock price of the Company's common stock of $63.83 per share on April 22, 2015, this price equated to 1.12 times March 31, 2015 book value and 1.63 times March 31, 2015 tangible book value per share.

On March 25, 2015, 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 2.13%.

IBERIABANK Corporation

The Company is a financial holding company with 314 combined offices, including 216 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 63 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 $2.4 billion, based on the NASDAQ Global Select Market closing stock price on April 22, 2015.

The following 11 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.
  • 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, April 23, 2015, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 3576101.  A replay of the call will be available until midnight Central Time on April 30, 2015 by dialing 1-877-344-7529. The confirmation code for the replay is 10062708.  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 acquisition 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 merger with Georgia Commerce Bancshares, Inc., 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 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 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 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 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 the Company's Form 10-K for the fiscal year ended December 31, 2014, and other documents subsequently filed by the Company with the SEC.  Consequently, no forward-looking statement can be guaranteed. Neither the Company nor Georgia Commerce Bancshares, Inc. undertakes any obligation to update or revise any forward-looking statement, 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 and Georgia Commerce Bancshares, 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 transaction involving the Company and Georgia Commerce 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 filed with the SEC a registration statement on Form S-4 that includes a proxy statement/prospectus for the shareholders of Georgia Commerce Bancshares, Inc. The Company also plans to file other documents with the SEC regarding the pending merger transaction with Georgia Commerce Bancshares, Inc.  Georgia Commerce Bancshares, Inc. will mail the 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 TRANSACTION. The proxy statement/prospectus, as well as other filings containing information about the Company and Georgia Commerce Bancshares, Inc., is 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/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 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. in respect of the proposed merger transaction. Information regarding the directors and executive officers of the Company is set forth in the definitive proxy statement for the Company's 2015 annual meeting of shareholders, as filed with the SEC on April 9, 2015, 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 to be participants in the solicitation of shareholders of Georgia Commerce Bancshares, Inc. in connection with the proposed transaction is included in the proxy statement/prospectus for the Georgia Commerce Bancshares, Inc. special meeting of shareholders, which will be filed 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(1)

 

FINANCIAL HIGHLIGHTS

                       
                       
     

 For The Quarter Ended 

 

 For The Quarter Ended 

     

 March 31, 

 

 December 31, 

     

2015

 

2014

 

% Change

 

2014

 

% Change

                       

Income Data (in thousands):

                   
 

Net Interest Income

 

$                 125,804

 

$                104,408

 

20%

 

$                      124,680

 

1%

 

Net Interest Income  (TE)   (2)

 

127,844

 

106,637

 

20%

 

126,735

 

1%

 

Net Income 

 

25,126

 

22,336

 

12%

 

35,936

 

(30%)

 

Earnings Available to Common Shareholders- Basic

 

25,126

 

22,336

 

12%

 

35,936

 

(30%)

 

Earnings Available to Common Shareholders- Diluted

 

24,782

 

21,931

 

13%

 

35,406

 

(30%)

                       

Per Share Data:

                   
 

Earnings Available to Common Shareholders - Basic

 

$                        0.75

 

$                       0.75

 

0%

 

$                             1.08

 

(31%)

 

Earnings Available to Common Shareholders - Diluted

 

0.75

 

0.75

 

0%

 

1.07

 

(31%)

 

Operating Earnings (Non-GAAP) 

 

0.95

 

0.73

 

30%

 

1.05

 

(10%)

 

Book Value 

 

56.77

 

52.01

 

9%

 

55.37

 

3%

 

Tangible Book Value (3)

 

39.26

 

37.56

 

5%

 

39.08

 

0%

 

Cash Dividends

 

0.34

 

0.34

 

-

 

0.34

 

-

 

Closing Stock Price

 

63.03

 

70.15

 

(10%)

 

64.85

 

(3%)

                       

Key Ratios: (4)

                   
 

Operating Ratios:

                 
 

Return on Average Assets

 

0.64%

 

0.68%

     

0.91%

   
 

Return on Average Common Equity

 

5.40%

 

5.82%

     

7.79%

   
 

Return on Average Tangible Common Equity (3)

 

7.93%

 

8.35%

     

11.46%

   
 

Net Interest Margin  (TE)  (2)

 

3.54%

 

3.54%

     

3.53%

   
 

Efficiency Ratio

 

76.2%

 

76.5%

     

69.4%

   
 

Tangible Operating Efficiency Ratio  (TE) (Non-GAAP)  (2) (3)

 

68.5%

 

73.5%

     

65.7%

   
 

Full-time Equivalent Employees

 

2,883

 

2,576

     

2,757

   
                       
 

Capital Ratios:

                 
 

Tangible Common Equity Ratio (Non-GAAP)

 

8.62%

 

8.60%

     

8.59%

   
 

Tangible Common Equity to Risk-Weighted Assets

 

9.92%

 

10.38%

     

10.37%

   
 

Tier 1 Leverage Ratio(6)

 

9.04%

 

9.61%

     

9.36%

   
 

Tier 1 Capital Ratio (6)

 

10.19%

 

11.44%

     

11.18%

   
 

Total Risk Based Capital Ratio (6)

 

11.62%

 

12.68%

     

12.30%

   
 

Common Stock Dividend Payout Ratio

 

51.7%

 

45.7%

     

31.7%

   
 

Classified Assets to Tier 1 Capital

 

19.0%

 

27.7%

     

18.6%

   
                       
 

Asset Quality Ratios:

                 
 

Excluding FDIC Covered Assets and Acquired Assets

                 
 

Non-performing Assets to Total Assets (5)

 

0.55%

 

0.49%

     

0.41%

   
 

Allowance for Loan Losses to Loans

 

0.80%

 

0.81%

     

0.79%

   
 

Net Charge-offs to Average Loans 

 

0.06%

 

0.05%

     

0.06%

   
 

Non-performing Assets to Total Loans and OREO (5)

 

0.83%

 

0.70%

     

0.59%

   
                       
     

 For The Quarter Ended 

 

 For The Quarter Ended 

     

 March 31, 

 

 December 31, 

 

 September 30, 

 

 June 30, 

     

2015

 

2015

 

2014

 

2014

 

2014

Balance Sheet Summary (in thousands):

 

End of Period

 

Average

 

Average

 

Average

 

Average

 

Excess Liquidity (7)

 

$                 696,000

 

$                320,357

 

$                    353,716

 

$                      489,221

 

$       237,712

 

Total Investment Securities

 

2,456,055

 

2,337,785

 

2,261,569

 

2,168,345

 

2,120,988

 

Loans, Net of Unearned Income

 

12,873,461

 

11,552,018

 

11,271,752

 

11,009,833

 

9,998,533

 

Loans, Net of Unearned Income, 

                   
 

   Excluding Covered Assets and Acquired Assets

 

9,849,416

 

9,734,053

 

9,438,869

 

9,019,127

 

8,643,859

 

Total Assets

 

18,054,671

 

15,939,485

 

15,614,323

 

15,476,208

 

14,041,182

 

Total Deposits

 

14,668,073

 

12,746,402

 

12,514,479

 

12,222,997

 

11,071,698

 

Total Shareholders' Equity

 

2,167,330

 

1,887,086

 

1,831,232

 

1,806,110

 

1,631,664

                       

(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 in the current period.

(2)

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%.

(3)

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

(4)

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

(5)

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

(6)

March 31, 2015 Captial Ratios reflect the implementation of  Basel III capital requirements, excluding the impact of the Old Florida Bancshares, Inc. acquisition. 

 

Prior periods have not been restated to reflect BASEL III implementation. 

(7)

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(1)

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

                 

BALANCE SHEET (End of Period)

March 31,

 

December 31,

 
 

2015

 

2014

 

% Change

 

2014

 

% Change

 

ASSETS

                   

Cash and Due From Banks

$             271,290

 

$                  285,271

 

(4.9%)

 

$      251,994

 

7.7%

 

Interest-bearing Deposits in Banks

696,000

 

145,037

 

379.9%

 

296,101

 

135.1%

 

   Total Cash and Equivalents

967,290

 

430,308

 

124.8%

 

548,095

 

76.5%

 

Investment Securities Available for Sale

2,342,613

 

1,933,314

 

21.2%

 

2,158,853

 

8.5%

 

Investment Securities Held to Maturity

113,442

 

150,660

 

(24.7%)

 

116,960

 

(3.0%)

 

   Total Investment Securities

2,456,055

 

2,083,974

 

17.9%

 

2,275,813

 

7.9%

 

Mortgage Loans Held for Sale

215,043

 

131,478

 

63.6%

 

140,072

 

53.5%

 

Loans, Net of Unearned Income

12,873,461

 

9,641,294

 

33.5%

 

11,441,044

 

12.5%

 

Allowance for Loan Losses

(128,313)

 

(134,602)

 

(4.7%)

 

(130,131)

 

(1.4%)

 

   Loans, Net

12,745,148

 

9,506,692

 

34.1%

 

11,310,913

 

12.7%

 

Loss Share Receivable

60,972

 

141,185

 

(56.8%)

 

69,627

 

(12.4%)

 

Premises and Equipment

337,201

 

287,387

 

17.3%

 

307,159

 

9.8%

 

Goodwill and Other Intangibles

672,120

 

435,636

 

54.3%

 

548,131

 

22.6%

 

Other Assets

600,842

 

533,572

 

12.6%

 

558,094

 

7.7%

 

   Total Assets

$       18,054,671

 

$            13,550,232

 

33.2%

 

$ 15,757,904

 

14.6%

 
                     

LIABILITIES AND SHAREHOLDERS' EQUITY

                   

Noninterest-bearing Deposits

$          3,863,869

 

$              2,728,736

 

41.6%

 

$   3,195,430

 

20.9%

 

NOW Accounts

2,729,791

 

2,194,361

 

24.4%

 

2,462,841

 

10.8%

 

Savings and Money Market Accounts

5,796,443

 

4,346,662

 

33.4%

 

4,746,017

 

22.1%

 

Certificates of Deposit

2,277,970

 

1,629,104

 

39.8%

 

2,116,237

 

7.6%

 

   Total Deposits

14,668,073

 

10,898,863

 

34.6%

 

12,520,525

 

17.2%

 

Short-term Borrowings

352,300

 

400,000

 

(11.9%)

 

603,000

 

(41.6%)

 

Securities Sold Under Agreements to Repurchase

252,602

 

283,086

 

(10.8%)

 

242,742

 

4.1%

 

Trust Preferred Securities

111,862

 

111,862

 

-

 

111,862

 

-

 

Other Long-term Debt

349,027

 

168,002

 

107.8%

 

291,392

 

19.8%

 

Other Liabilities

153,477

 

125,922

 

21.9%

 

136,235

 

12.7%

 

   Total Liabilities

15,887,341

 

11,987,735

 

32.5%

 

13,905,756

 

14.3%

 

Total Shareholders' Equity

2,167,330

 

1,562,497

 

38.7%

 

1,852,148

 

17.0%

 

   Total Liabilities and Shareholders' Equity

$       18,054,671

 

$            13,550,232

 

33.2%

 

$ 15,757,904

 

14.6%

 
                     
                     

BALANCE SHEET (Average)

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 
 

2015

 

2014

 

2014

 

2014

 

2014

 

ASSETS

                   

Cash and Due From Banks

$             243,508

 

$                  239,377

 

$                    229,556

 

$      237,631

 

$         234,924

 

Interest-bearing Deposits in Banks

320,357

 

353,716

 

489,221

 

237,712

 

114,621

 

Investment Securities

2,337,785

 

2,261,569

 

2,168,345

 

2,120,988

 

2,116,166

 

Mortgage Loans Held for Sale

133,238

 

121,438

 

163,510

 

140,096

 

96,019

 

Loans, Net of Unearned Income

11,552,018

 

11,271,752

 

11,009,833

 

9,998,533

 

9,551,363

 

Allowance for Loan Losses

(128,519)

 

(134,177)

 

(133,443)

 

(132,049)

 

(139,726)

 

Loss Share Receivable

66,165

 

85,733

 

111,383

 

131,375

 

154,634

 

Other Assets

1,414,933

 

1,414,915

 

1,437,803

 

1,306,896

 

1,234,236

 

   Total Assets

$       15,939,485

 

$            15,614,323

 

$              15,476,208

 

$ 14,041,182

 

$   13,362,237

 
                     

LIABILITIES AND SHAREHOLDERS' EQUITY

                   

Non-interest-bearing Deposits

$          3,308,604

 

$              3,228,773

 

$                3,057,513

 

$   2,748,468

 

$     2,623,075

 

NOW Accounts

2,462,232

 

2,271,836

 

2,228,378

 

2,229,264

 

2,230,745

 

Savings and Money Market Accounts

4,825,917

 

4,908,247

 

4,877,051

 

4,372,855

 

4,296,360

 

Certificates of Deposit

2,149,649

 

2,105,623

 

2,060,055

 

1,721,111

 

1,665,943

 

   Total Deposits

12,746,402

 

12,514,479

 

12,222,997

 

11,071,698

 

10,816,122

 

Short-term Borrowings

483,413

 

449,190

 

627,192

 

632,778

 

285,383

 

Securities Sold Under Agreements to Repurchase

263,628

 

264,194

 

292,677

 

274,681

 

299,106

 

Trust Preferred Securities

111,862

 

111,862

 

111,862

 

111,862

 

111,862

 

Long-term Debt

311,633

 

283,548

 

247,108

 

192,845

 

168,367

 

Other Liabilities

135,461

 

159,818

 

168,262

 

125,654

 

125,072

 

   Total Liabilities

14,052,399

 

13,783,091

 

13,670,098

 

12,409,518

 

11,805,912

 

Total Shareholders' Equity

1,887,086

 

1,831,232

 

1,806,110

 

1,631,664

 

1,556,325

 

   Total Liabilities and Shareholders' Equity

$       15,939,485

 

$            15,614,323

 

$              15,476,208

 

$ 14,041,182

 

$   13,362,237

 
     

(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 in the current period.

 

 

Table 3 - IBERIABANK CORPORATION(1)

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

                   
 

For The Three Months Ended

INCOME STATEMENT

March 31,

 

December 31,

 

2015

 

2014

 

% Change

 

2014

 

% Change

                   

Interest Income

$     138,585

 

$       114,232

 

21.3%

 

$     137,276

 

1.0%

Interest Expense

12,781

 

9,824

 

30.1%

 

12,596

 

1.5%

   Net Interest Income

125,804

 

104,408

 

20.5%

 

124,680

 

0.9%

Provision for Loan Losses

5,345

 

2,103

 

154.2%

 

6,495

 

(17.7%)

   Net Interest Income After Provision for Loan Losses

120,459

 

102,305

 

17.7%

 

118,185

 

1.9%

Service Charges

9,262

 

7,012

 

32.1%

 

10,153

 

(8.8%)

ATM / Debit Card Fee Income

3,275

 

2,467

 

32.8%

 

3,331

 

(1.7%)

BOLI Proceeds and Cash Surrender Value Income

1,092

 

2,441

 

(55.3%)

 

1,050

 

4.0%

Mortgage Income

18,023

 

10,133

 

77.9%

 

13,646

 

32.1%

Gain (Loss) on Sale of Investments, Net

389

 

19

 

1945.6%

 

164

 

137.5%

Title Revenue

4,629

 

4,167

 

11.1%

 

5,486

 

(15.6%)

Broker Commissions

4,162

 

4,048

 

2.8%

 

3,960

 

5.1%

Other Non-interest Income

8,067

 

5,394

 

49.5%

 

9,282

 

(13.1%)

   Total Non-interest Income

48,899

 

35,681

 

37.0%

 

47,072

 

3.9%

Salaries and Employee Benefits

72,696

 

59,861

 

21.4%

 

65,445

 

11.1%

Occupancy and Equipment

16,260

 

13,991

 

16.2%

 

14,594

 

11.4%

Amortization of Acquisition Intangibles

1,525

 

1,218

 

25.2%

 

1,618

 

(5.8%)

Other Non-interest Expense

42,672

 

32,164

 

32.7%

 

37,478

 

13.9%

   Total Non-interest Expense

133,153

 

107,234

 

24.2%

 

119,135

 

11.8%

   Income Before Income Taxes

36,205

 

30,752

 

17.7%

 

46,122

 

(21.5%)

Income Tax Expense 

11,079

 

8,416

 

31.6%

 

10,186

 

8.8%

   Net Income 

$        25,126

 

$         22,336

 

12.5%

 

$        35,936

 

(30.1%)

   Preferred Stock Dividends

-

 

-

 

-

 

-

 

-

   Earnings Available to Common Shareholders - Basic

25,126

 

22,336

 

12.5%

 

35,936

 

(30.1%)

   Earnings Allocated to Unvested Restricted Stock

(344)

 

(405)

 

(14.9%)

 

(530)

 

(35.0%)

   Earnings Available to Common Shareholders - Diluted 

$        24,782

 

$         21,931

 

13.0%

 

$        35,406

 

(30.0%)

Earnings Per Share, Diluted

$            0.75

 

$              0.75

 

0.0%

 

$            1.07

 

(30.6%)

Impact of Non-Operating Items (Non-GAAP)

$            0.20

 

$            (0.02)

 

(1309.6%)

 

$           (0.02)

 

(929.5%)

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

$            0.95

 

$              0.73

 

29.7%

 

$            1.05

 

(9.5%)

                   

NUMBER OF SHARES OUTSTANDING

                 

Basic Shares - All Classes  (Average)

33,659,016

 

29,813,609

 

12.9%

 

33,332,691

 

1.0%

Diluted Shares - Common Shareholders (Average)

33,235,069

 

29,417,290

 

13.0%

 

32,947,152

 

0.9%

Book Value Shares  (Period End)  (2)

38,178,420

 

30,040,025

 

27.1%

 

33,453,404

 

14.1%

                   
 

2015

 

2014

INCOME STATEMENT

First

 

Fourth

 

Third

 

Second

 

First

 

Quarter

 

Quarter 

 

Quarter

 

Quarter

 

Quarter

                   

Interest Income

$     138,585

 

$       137,276

 

$          133,793

 

$     119,514

 

$     114,232

Interest Expense

12,781

 

12,596

 

12,042

 

10,241

 

9,824

   Net Interest Income

125,804

 

124,680

 

121,751

 

109,273

 

104,408

 Provision for Loan Losses

5,345

 

6,495

 

5,714

 

4,748

 

2,103

   Net Interest Income After Provision for Loan Losses

120,459

 

118,185

 

116,037

 

104,525

 

102,305

Total Non-interest Income

48,899

 

47,072

 

47,112

 

43,761

 

35,681

Total Non-interest Expense

133,153

 

119,135

 

120,112

 

127,132

 

107,234

   Income Before Income Taxes

36,205

 

46,122

 

43,037

 

21,154

 

30,752

Income Tax Expense 

11,079

 

10,186

 

12,144

 

4,937

 

8,416

   Net Income

$        25,126

 

$         35,936

 

$            30,893

 

$        16,217

 

$        22,336

   Preferred Stock Dividends

-

 

-

 

-

 

-

 

-

   Earnings Available to Common Shareholders - Basic

25,126

 

35,936

 

30,893

 

16,217

 

22,336

   Earnings Allocated to Unvested Restricted Stock

(344)

 

(530)

 

(465)

 

(258)

 

(405)

   Earnings Available to Common Shareholders - Diluted

$        24,782

 

$         35,406

 

$            30,428

 

$        15,959

 

$        21,931

                   

Earnings Per Share, Basic

$            0.75

 

$              1.08

 

$                 0.93

 

$            0.53

 

$            0.75

                   

Earnings Per Share, Diluted 

$            0.75

 

$              1.07

 

$                 0.92

 

$            0.53

 

$            0.75

                   

Book Value Per Common Share

$          56.77

 

$           55.37

 

$               54.30

 

$          53.76

 

$          52.01

Tangible Book Value Per Common Share

$          39.26

 

$           39.08

 

$               37.81

 

$          37.28

 

$          37.56

                   

Return on Average Assets

0.64%

 

0.91%

 

0.79%

 

0.46%

 

0.68%

Return on Average Common Equity

5.40%

 

7.79%

 

6.79%

 

3.99%

 

5.82%

Return on Average Tangible Common Equity

7.93%

 

11.46%

 

10.10%

 

5.88%

 

8.35%

                   
                   
         

(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 in the current period.

(2)

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)

                     

LOANS

 

March 31,

 

December 31,

   

2015

 

2014

 

% Change

 

2014

 

% Change

Residential Mortgage Loans

 

$     1,164,286

 

$        600,083

 

94.0%

 

$         1,080,297

 

7.8%

Commercial Loans:

                   

   Real Estate

 

5,157,670

 

3,952,733

 

30.5%

 

4,405,133

 

17.1%

   Business

 

3,751,993

 

2,989,783

 

25.5%

 

3,408,949

 

10.1%

      Total Commercial Loans

 

8,909,663

 

6,942,516

 

28.3%

 

7,814,082

 

14.0%

Consumer Loans:

                   

   Indirect Automobile

 

367,349

 

379,545

 

(3.2%)

 

397,158

 

(7.5%)

   Home Equity

 

1,858,088

 

1,319,264

 

40.8%

 

1,601,105

 

16.1%

   Automobile

 

160,518

 

96,599

 

66.2%

 

149,901

 

7.1%

   Credit Card Loans

 

72,711

 

63,988

 

13.6%

 

73,393

 

(0.9%)

   Other 

 

340,846

 

239,299

 

42.4%

 

325,108

 

4.8%

      Total Consumer Loans

 

2,799,512

 

2,098,695

 

33.4%

 

2,546,665

 

9.9%

      Total Loans 

 

12,873,461

 

9,641,294

 

33.5%

 

11,441,044

 

12.5%

Allowance for Loan Losses

 

(128,313)

 

(134,602)

     

(130,131)

   

   Loans, Net

 

$   12,745,148

 

$     9,506,692

     

$       11,310,913

   
                     

Reserve for Unfunded Commitments 

 

(12,849)

 

(11,519)

 

11.5%

 

(11,801)

 

8.9%

Allowance for Credit Losses

 

(141,161)

 

(146,121)

 

(3.4%)

 

(141,932)

 

(0.5%)

                     

ASSET QUALITY DATA (1)

 

March 31,

 

December 31,

   

2015

 

2014

 

% Change

 

2014

 

% Change

Non-accrual Loans

 

$        195,371

 

$        229,962

 

(15.0%)

 

$            169,686

 

15.1%

Foreclosed Assets

 

675

 

1,301

 

(48.2%)

 

905

 

(25.5%)

Other Real Estate Owned

 

52,519

 

91,864

 

(42.8%)

 

53,042

 

(1.0%)

Accruing Loans More Than 90 Days Past Due 

 

5,642

 

981

 

475.2%

 

1,708

 

230.3%

Total Non-performing Assets

 

$        254,207

 

$        324,108

 

(21.6%)

 

$            225,341

 

12.8%

                     

Loans 30-89 Days Past Due

 

$          32,835

 

$           43,905

 

(25.2%)

 

$              51,141

 

(35.8%)

                     

Non-performing Assets to Total Assets 

 

1.41%

 

2.39%

 

(41.2%)

 

1.43%

 

(1.6%)

Non-performing Assets to Total Loans and OREO 

 

1.97%

 

3.33%

 

(40.9%)

 

1.96%

 

0.3%

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

 

63.8%

 

58.3%

 

9.5%

 

75.9%

 

(15.9%)

Allowance for Loan Losses to Non-performing Assets

 

50.5%

 

41.5%

 

21.5%

 

57.7%

 

(12.6%)

Allowance for Loan Losses to Total Loans

 

1.00%

 

1.40%

 

(28.6%)

 

1.14%

 

(12.4%)

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

 

70.2%

 

63.3%

 

11.0%

 

82.8%

 

(15.2%)

Allowance for Credit Losses to Non-performing Assets 

 

55.5%

 

45.1%

 

23.2%

 

63.0%

 

(11.8%)

Allowance for Credit Losses to Total Loans 

 

1.10%

 

1.52%

 

(27.6%)

 

1.24%

 

(11.6%)

                     

Year to Date Charge-offs 

 

$             2,972

 

$             2,578

 

15.3%

 

$              11,983

 

N/M

Year to Date Recoveries

 

(1,237)

 

(1,810)

 

(31.6%)

 

(6,396)

 

N/M

Year to Date Net Charge-offs

 

$             1,735

 

$                768

 

125.9%

 

$                 5,587

 

N/M

Quarter to Date Net Charge-offs

 

$             1,735

 

$                768

 

125.9%

 

$                 1,755

 

(1.1%)

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

0.06%

 

0.03%

 

86.7%

 

0.06%

 

(1.4%)

Year to Date Net Charge-offs to Average Loans

 

0.06%

 

0.03%

 

86.8%

 

0.05%

 

14.1%

                     

(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 5 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

                     

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

March 31,

 

December 31,

   

2015

 

2014

 

% Change

 

2014

 

% Change

Residential Mortgage Loans

 

$        553,815

 

$        428,576

 

29.2%

 

$            527,694

 

5.0%

Commercial Loans:

                   

   Real Estate

 

3,832,598

 

3,250,971

 

17.9%

 

3,718,058

 

3.1%

   Business

 

3,278,266

 

2,890,804

 

13.4%

 

3,284,140

 

(0.2%)

      Total Commercial Loans

 

7,110,864

 

6,141,775

 

15.8%

 

7,002,198

 

1.6%

Consumer Loans:

                   

   Indirect Automobile

 

367,077

 

378,260

 

(3.0%)

 

396,766

 

(7.5%)

   Home Equity

 

1,335,390

 

1,122,306

 

19.0%

 

1,290,976

 

3.4%

   Automobile

 

145,084

 

95,901

 

51.3%

 

134,014

 

8.3%

   Credit Card Loans

 

72,164

 

63,373

 

13.9%

 

72,745

 

(0.8%)

   Other 

 

265,022

 

222,731

 

19.0%

 

244,321

 

8.5%

      Total Consumer Loans

 

2,184,737

 

1,882,571

 

16.1%

 

2,138,822

 

2.1%

      Total Loans 

 

9,849,416

 

8,452,922

 

16.5%

 

9,668,714

 

1.9%

Allowance for Loan Losses

 

(78,773)

 

(68,324)

     

(76,174)

   

   Loans, Net

 

$     9,770,643

 

$     8,384,598

     

$         9,592,540

   
                     

Reserve for Unfunded Commitments

 

(12,849)

 

(11,519)

 

11.5%

 

(11,801)

 

8.9%

Allowance for Credit Losses

 

(91,622)

 

(79,843)

 

14.8%

 

(87,975)

 

4.1%

                     

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

 

March 31,

 

December 31,

   

2015

 

2014

 

% Change

 

2014

 

% Change

Non-accrual Loans

 

$          60,064

 

$           32,983

 

82.1%

 

$              34,970

 

71.8%

Foreclosed Assets

 

52

 

57

 

(8.6%)

 

36

 

47.2%

Other Real Estate Owned

 

21,602

 

26,147

 

(17.4%)

 

21,207

 

1.9%

Accruing Loans More Than 90 Days Past Due 

 

239

 

269

 

(11.3%)

 

754

 

(68.3%)

Total Non-performing Assets

 

$          81,957

 

$           59,456

 

37.8%

 

$              56,967

 

43.9%

                     

Loans 30-89 Days Past Due

 

$          17,606

 

$           11,183

 

57.4%

 

$              29,567

 

(40.5%)

                     

Troubled Debt Restructurings (2)

 

18,434

 

8,806

 

109.3%

 

3,639

 

406.6%

Current Troubled Debt Restructurings (3)

 

1,386

 

1,283

 

8.0%

 

1,430

 

(3.1%)

                     

Non-performing Assets to Total Assets 

 

0.55%

 

0.49%

 

11.8%

 

0.41%

 

33.7%

Non-performing Assets to Total Loans and OREO 

 

0.83%

 

0.70%

 

18.4%

 

0.59%

 

41.2%

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

 

130.6%

 

205.5%

 

(36.4%)

 

213.2%

 

(38.7%)

Allowance for Loan Losses to Non-performing Assets

 

96.1%

 

114.9%

 

(16.4%)

 

133.7%

 

(28.1%)

Allowance for Loan Losses to Total Loans

 

0.80%

 

0.81%

 

(1.1%)

 

0.79%

 

1.5%

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

 

151.9%

 

240.1%

 

(36.7%)

 

246.3%

 

(38.3%)

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

 

111.8%

 

134.3%

 

(16.8%)

 

154.4%

 

(27.6%)

Allowance for Credit Losses to Total Loans (1)

 

0.93%

 

0.94%

 

(1.5%)

 

0.91%

 

2.2%

                     

Year to Date Charge-offs 

 

$             2,669

 

$             2,544

 

4.9%

 

$               11,312

 

N/M

Year to Date Recoveries

 

(1,091)

 

(1,530)

 

(28.7%)

 

(5,870)

 

N/M

Year to Date Net Charge-offs (Recoveries)

 

$             1,578

 

$             1,014

 

55.6%

 

$                 5,442

 

N/M

Quarter to Date Net Charge-offs (Recoveries)

 

$             1,578

 

$             1,014

 

55.6%

 

$                 1,538

 

2.6%

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

0.06%

 

0.05%

 

26.8%

 

0.06%

 

(0.5%)

Year to Date Net Charge-offs to Average Loans

 

0.06%

 

0.05%

 

39.5%

 

0.06%

 

5.4%

                     

(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 5A - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

                     

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

 

March 31,

 

December 31,

   

2015

 

2014

 

% Change

 

2014

 

% Change

Residential Mortgage Loans

 

$        610,471

 

$        171,507

 

255.9%

 

$        552,603

 

10.5%

Commercial Loans:

                   

   Real Estate

 

1,325,072

 

701,762

 

88.8%

 

687,075

 

92.9%

   Business

 

473,727

 

98,979

 

378.6%

 

124,809

 

279.6%

      Total Commercial Loans

 

1,798,799

 

800,741

 

124.6%

 

811,884

 

121.6%

Consumer Loans:

                   

   Indirect Automobile

 

272

 

1,285

 

(78.8%)

 

392

 

(30.7%)

   Home Equity

 

522,698

 

196,958

 

165.4%

 

310,129

 

68.5%

   Automobile

 

15,434

 

698

 

2111.2%

 

15,887

 

(2.9%)

   Credit Card Loans

 

547

 

615

 

(11.1%)

 

648

 

(15.6%)

   Other 

 

75,824

 

16,568

 

357.7%

 

80,787

 

(6.1%)

      Total Consumer Loans

 

614,775

 

216,124

 

184.5%

 

407,843

 

50.7%

      Total Loans Receivable

 

3,024,045

 

1,188,372

 

154.5%

 

1,772,330

 

70.6%

Allowance for Loan Losses

 

(49,540)

 

(66,278)

     

(53,957)

   

   Loans, Net

 

$     2,974,505

 

$     1,122,094

     

$     1,718,373

   
                     
                     

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

 

March 31,

 

December 31,

   

2015

 

2014

 

% Change

 

2014

 

% Change

Non-accrual Loans

 

$        135,307

 

$        196,979

 

(31.3%)

 

$        134,716

 

0.4%

Foreclosed Assets

 

623

 

1,244

 

(50.0%)

 

870

 

(28.4%)

Other Real Estate Owned

 

30,917

 

65,717

 

(53.0%)

 

31,835

 

(2.9%)

Accruing Loans More Than 90 Days Past Due 

 

5,403

 

712

 

659.3%

 

954

 

466.4%

Total Non-performing Assets

 

$        172,250

 

$         264,652

 

(34.9%)

 

$        168,375

 

2.3%

                     

Loans 30-89 Days Past Due

 

$          15,229

 

$           32,722

 

(53.5%)

 

$          21,574

 

(29.4%)

                     

Non-performing Assets to Total Assets 

 

5.58%

 

18.84%

 

(70.4%)

 

9.11%

 

(38.8%)

Non-performing Assets to Total Loans and OREO 

 

5.64%

 

21.08%

 

(73.3%)

 

9.33%

 

(39.6%)

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

 

35.2%

 

33.5%

 

5.0%

 

39.8%

 

(11.5%)

Allowance for Loan Losses to Non-performing Assets

 

28.8%

 

25.0%

 

14.8%

 

32.0%

 

(10.3%)

Allowance for Loan Losses to Total Loans

 

1.64%

 

5.58%

 

(70.6%)

 

3.04%

 

(46.2%)

                     

Year to Date Charge-offs 

 

$                303

 

$                  34

 

 N/M 

 

$                671

 

 N/M 

Year to Date Recoveries

 

(146)

 

(280)

 

 N/M 

 

(526)

 

 N/M 

Year to Date Net Charge-offs (Recoveries)

 

157

 

(246)

 

(163.9%)

 

145

 

 N/M 

Quarter to Date Net Charge-offs (Recoveries)

 

157

 

(246)

 

 N/M 

 

217

 

 N/M 

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

0.04%

 

-0.08%

 

 N/M 

 

0.05%

 

 N/M 

Year to Date Net Charge-offs to Average Loans

 

0.04%

 

-0.08%

 

(143.1%)

 

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

                 
                               

As Reported (US GAAP)

                             
   

1Q 2014

   

2Q 2014

   

3Q 2014

   

4Q 2014

   

1Q 2015

 
 

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

                               

Legacy Loans, net

$ 84.2

$ 8,325

4.06%

$ 87.9

$ 8,644

4.04%

$ 91.1

$ 9,019

3.97%

$ 94.5

$ 9,439

3.94%

$ 94.3

$ 9,734

3.90%

Acquired Loans, net

11.0

535

8.23%

12.6

730

6.86%

24.1

1,432

6.63%

24.1

1,370

6.94%

26.8

1,558

6.91%

                               

Covered Loans, net

25.9

691

15.00%

23.0

625

14.70%

30.2

559

21.64%

18.1

463

15.29%

9.0

260

14.06%

FDIC Indemnification Asset

(19.3)

155

-49.83%

(17.0)

131

-51.22%

(25.1)

111

-88.25%

(13.2)

86

-60.36%

(6.0)

66

-36.35%

Covered Loans, net of Indemnification Asset Amortization

$ 6.7

$ 846

3.18%

$ 6.0

$ 756

3.16%

$ 5.1

$ 670

3.07%

$ 4.9

$ 549

3.57%

$ 3.0

$ 326

3.82%

                               

Adjustments

                             
   

1Q 2014

   

2Q 2014

   

3Q 2014

   

4Q 2014

   

1Q 2015

 
 

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

(4.2)

65

-3.79%

(2.9)

67

-2.03%

(6.4)

72

-1.97%

(6.5)

67

-2.06%

(8.7)

69

-2.50%

                               

Covered Loans, net

(17.5)

106

-10.82%

(13.7)

95

-9.58%

(22.8)

84

-17.07%

(12.8)

74

-10.72%

(6.3)

64

-10.70%

FDIC Indemnification Asset

19.3

(155)

49.83%

17.0

(131)

51.22%

25.1

(111)

88.25%

13.2

(86)

60.36%

6.0

(66)

36.35%

Covered Loans, net of Indemnification Asset Amortization

$ 1.7

$ (48)

1.01%

$ 3.3

$ (37)

1.96%

$ 2.3

$ (27)

1.50%

$ 0.4

$ (12)

1.00%

$ (0.3)

$ (2)

-0.46%

                               

As Adjusted (Cash Yield, Non-GAAP)

                             
   

1Q 2014

   

2Q 2014

   

3Q 2014

   

4Q 2014

   

1Q 2015

 
 

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

                               

Legacy Loans, net

$ 84.2

$ 8,325

4.06%

$ 87.9

$ 8,644

4.04%

$ 91.1

$ 9,019

3.97%

$ 94.5

$ 9,439

3.94%

$ 94.3

$ 9,734

3.90%

Acquired Loans, net

6.7

600

4.45%

9.7

797

4.83%

17.6

1,504

4.66%

17.6

1,436

4.88%

18.2

1,628

4.42%

                               

Covered Loans, net

8.4

798

4.18%

9.3

719

5.13%

7.4

642

4.57%

5.3

537

4.57%

2.7

323

3.36%

FDIC Indemnification Asset

0.0

-

0.00%

0.0

-

0.00%

-

(0)

0.00%

-

-

0.00%

-

-

0.00%

Covered Loans, net of Indemnification Asset Amortization

$ 8.4

$ 798

4.18%

$ 9.3

$ 719

5.13%

$ 7.4

$ 642

4.57%

$ 5.3

$ 537

4.57%

$ 2.7

$ 323

3.36%

 

Table 7 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

Taxable Equivalent Basis

(dollars in thousands)

                             
                             
       

For The Quarter Ended

   

March 31, 2015

 

December 31, 2014

 

March 31, 2014

       

Average 

 

Average 

 

Average 

 

Average 

 

Average 

 

Average 

   

Interest 

 

Balance

 

Yield/Rate (%)

 

Balance 

 

Yield/Rate (%)

 

Balance

 

Yield/Rate (%)

ASSETS

                           

Earning  Assets:

                           

Loans Receivable: 

                           

Mortgage Loans

 

$              13,595

 

$       1,098,962

 

4.95%

 

$       1,069,555

 

4.90%

 

$          595,275

 

5.89%

Commercial Loans (TE) (1)

 

83,644

 

7,873,270

 

4.31%

 

7,656,992

 

4.65%

 

6,890,647

 

5.07%

Consumer and Other Loans

 

32,952

 

2,579,786

 

5.18%

 

2,545,205

 

5.30%

 

2,065,441

 

5.20%

Total Loans 

 

130,191

 

11,552,018

 

4.57%

 

11,271,752

 

4.82%

 

9,551,363

 

5.15%

Loss Share Receivable

 

(6,013)

 

66,165

 

-36.35%

 

85,733

 

-60.36%

 

154,634

 

-49.83%

       Total Loans and Loss Share Receivable

 

124,178

 

11,618,183

 

4.33%

 

11,357,485

 

4.32%

 

9,705,997

 

4.27%

Mortgage Loans Held for Sale

 

1,515

 

133,238

 

4.55%

 

121,438

 

3.95%

 

96,019

 

3.69%

Investment  Securities (TE) (1)(2)

 

12,096

 

2,306,778

 

2.22%

 

2,234,236

 

2.24%

 

2,113,423

 

2.23%

Other  Earning Assets

 

796

 

398,692

 

0.81%

 

431,603

 

0.80%

 

172,742

 

1.27%

Total  Earning Assets

 

138,585

 

14,456,891

 

3.90%

 

14,144,762

 

3.88%

 

12,088,181

 

3.87%

 Allowance for Loan Losses 

     

(128,519)

     

(134,177)

     

(139,726)

   

Non-earning Assets

     

1,611,113

     

1,603,738

     

1,413,782

   

Total Assets

     

$     15,939,485

     

$     15,614,323

     

$     13,362,237

   
                             

LIABILITIES AND SHAREHOLDERS' EQUITY

                           

Interest-bearing liabilities

                           

   Deposits:

                           

      NOW Accounts

 

$                 1,552

 

$       2,462,232

 

0.26%

 

$       2,271,836

 

0.27%

 

$       2,230,744

 

0.28%

      Savings and Money Market Accounts

 

3,375

 

4,825,917

 

0.28%

 

4,908,247

 

0.30%

 

4,296,360

 

0.26%

      Certificates of Deposit

 

4,411

 

2,149,649

 

0.83%

 

2,105,623

 

0.80%

 

1,665,943

 

0.71%

         Total Interest-bearing Deposits

 

9,338

 

9,437,798

 

0.40%

 

9,285,706

 

0.41%

 

8,193,047

 

0.36%

   Short-term Borrowings

 

363

 

747,041

 

0.19%

 

713,384

 

0.19%

 

584,489

 

0.17%

   Long-term Debt

 

3,080

 

423,495

 

2.91%

 

395,410

 

2.73%

 

280,229

 

3.42%

         Total Interest-bearing Liabilities

 

12,781

 

10,608,334

 

0.49%

 

10,394,500

 

0.48%

 

9,057,765

 

0.44%

Non-interest-bearing Demand Deposits

     

3,308,604

     

3,228,773

     

2,623,075

   

Non-interest-bearing Liabilities

     

135,461

     

159,818

     

125,072

   

         Total Liabilities

     

14,052,399

     

13,783,091

     

11,805,912

   

Shareholders' Equity

     

1,887,086

     

1,831,232

     

1,556,325

   

         Total Liabilities and Shareholders' Equity

     

$     15,939,485

     

$     15,614,323

     

$     13,362,237

   
                             
                             

Net Interest Spread

     

$          125,804

 

3.41%

 

$          124,680

 

3.41%

 

$          104,408

 

3.43%

Tax-equivalent Benefit

     

2,040

 

0.06%

 

2,055

 

0.06%

 

2,229

 

0.07%

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

     

$          127,844

 

3.54%

 

$          126,735

 

3.53%

 

$          106,637

 

3.54%

                             
                             

(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 8 - IBERIABANK CORPORATION(1)

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(dollars in thousands)

             
   

For The Quarter Ended

   

March 31, 2015

 

December 31, 2014

 

March 31, 2014

             

Net Interest Income (GAAP)

 

$                      125,804

 

$                        124,680

 

$                       104,408

Effect of Tax Benefit on Interest Income

 

2,040

 

2,055

 

2,229

Net Interest Income (TE) (Non-GAAP) (2)

 

127,844

 

126,735

 

106,637

Non-interest Income (GAAP)

 

48,899

 

47,072

 

35,681

Effect of Tax Benefit on Non-interest Income

 

588

 

566

 

1,315

Non-interest Income (TE) (Non-GAAP) (2)

 

49,487

 

47,638

 

36,996

Taxable Equivalent Revenues (Non-GAAP) (2)

177,331

 

174,373

 

143,633

   Securities Gains and other non-interest income

(389)

 

(374)

 

(1,791)

Taxable Equivalent Operating Revenues (Non-GAAP) (2)

$                      176,942

 

$                        173,999

 

$                       141,842

             

Total Non-interest Expense (GAAP)

 

$                      133,153

 

$                        119,135

 

$                       107,234

Less Intangible Amortization Expense

 

(1,525)

 

(1,618)

 

(1,218)

Tangible Non-interest Expense (Non-GAAP) (3)

 

131,628

 

117,517

 

106,016

Merger-related expenses

 

9,296

 

1,955

 

967

Severance expenses

 

41

 

139

 

119

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

 

579

 

1,078

 

541

(Reversal of) Provision for FDIC clawback liability

 

-

 

-

 

-

Other non-operating non-interest expense

 

450

 

2

 

179

Tangible Operating Non-interest Expense (Non-GAAP) (3)

 

$                      121,262

 

$                        114,343

 

$                       104,210

             

Return on Average Common Equity (GAAP)

 

5.40%

 

7.79%

 

5.82%

Effect of Intangibles (3)

 

2.53%

 

3.67%

 

2.53%

Effect of Non Operating Revenues and Expenses

 

1.78%

 

(0.29%)

 

(0.37%)

Operating Return on Average Tangible Common Equity (Non-GAAP) (3)

 

9.71%

 

11.17%

 

7.98%

             

Efficiency Ratio (GAAP)

 

76.2%

 

69.4%

 

76.5%

    Effect of Tax Benefit Related to Tax-exempt Income

 

(1.1%)

 

(1.1%)

 

(1.8%)

 Efficiency Ratio (TE) (Non-GAAP)  (2)  

 

75.1%

 

68.3%

 

74.7%

    Effect of Amortization of Intangibles

 

(0.9%)

 

(0.9%)

 

(0.9%)

    Effect of Non-operating Items 

 

(5.7%)

 

(1.7%)

 

(0.3%)

Tangible Operating Efficiency Ratio (TE)(Non-GAAP) (2) (3)

 

68.5%

 

65.7%

 

73.5%

             
             

(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 in the current period.

(2)

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%.

(3)

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 9 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES(1) (2)

(dollars in thousands)

                       
 

For The Quarter Ended

 

March 31, 2015

 

December 31, 2014

 

March 31, 2014

 

Dollar Amount

   

Dollar Amount

   

Dollar Amount

 
 

Pre-tax 

After-tax (3)

 Per share 

 

Pre-tax 

After-tax (3)

 Per share 

 

Pre-tax 

After-tax (3)

 Per share 

Net Income (Loss) (GAAP)

$          36,205

$          25,126

$          0.75

 

$          46,122

$          35,936

$          1.07

 

$          30,752

$          22,336

$          0.75

                       

Non-interest income adjustments

                     

Gain on sale of investments and other non-interest income

(389)

(252)

(0.01)

 

(374)

(243)

(0.01)

 

(1,791)

(1,692)

(0.06)

                       

Non-interest expense adjustments

                     

Merger-related expenses

9,296

6,139

0.18

 

1,955

1,496

0.04

 

967

629

0.02

Severance expenses

41

27

0.00

 

139

91

0.00

 

119

78

0.00

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

579

376

0.01

 

1,078

701

0.02

 

541

352

0.01

Other non-operating non-interest expense

450

292

0.01

 

2

1

(0.00)

 

179

116

0.00

Total non-interest expense adjustments

10,366

6,834

0.21

 

3,174

2,289

0.07

 

1,806

1,175

0.03

                       

Income tax benefits

-

-

-

 

-

(2,959)

(0.09)

 

-

-

-

Operating earnings (Non-GAAP)

46,182

31,708

0.95

 

48,922

35,023

1.05

 

30,767

21,819

0.73

Covered and acquired (reversal of) provision for loan losses

1,169

760

0.02

 

1,497

973

0.03

 

108

70

0.00

Other provision for loan losses

4,176

2,715

0.08

 

4,998

3,249

0.08

 

1,995

1,297

0.04

Pre-provision operating earnings (Non-GAAP)

$          51,527

$          35,183

$          1.05

 

$           55,417

$          39,245

$          1.17

 

$          32,870

$          23,186

$          0.78

                       
         

(1) Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 in the current period.

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

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

 

SOURCE IBERIABANK Corporation