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

LAFAYETTE, La., Oct. 26 /PRNewswire-FirstCall/ -- IBERIABANK Corporation (Nasdaq: IBKC), holding company of the 123-year-old IBERIABANK (www.iberiabank.com) and IBERIABANK fsb (www.IBERIABANKfsb.com), reported improved asset quality ratios, capital strength, and earnings results for the quarter ended September 30, 2010.  The Company's levels of nonperforming assets, loans past due 30 days or more, and classified assets, and its commercial loan watch list each improved between June 30, 2010 and September 30, 2010.  At quarter-end, the Company possessed one of the strongest regulatory capital ratios for bank holding companies with assets in excess of $5 billion. For the third quarter of 2010, the Company reported income available to common shareholders of $14 million and fully diluted earnings per share ("EPS") of $0.52.  Excluding one-time acquisition costs, earnings were $15 million and EPS was $0.56, or an increase of 34% compared to the second quarter of 2010 ("linked quarter basis").

Daryl G. Byrd, President and Chief Executive Officer, commented, "The third quarter was a period of incremental improvement for our Company.  Our extremely favorable credit quality measures showed continued improvement.  Our excess cash and capital are methodically and patiently being deployed.  Our business lines exhibited strength, and our newest business line, Iberia Capital Partners, has commenced operations."  Byrd continued, "Our IBERIABANK family welcomes the clients and associates of Sterling Bank, who joined our organization three months ago.  We are very pleased with the successful assimilation of Sterling's operations into IBERIABANK."

Byrd continued, "Our industry has experienced significant upheaval recently regarding the suspension of residential mortgage foreclosure processes to ensure foreclosure documentation and procedures are accurate, adequately reviewed, and appropriately administered.  A related industry concern is the potential forced repurchase of mortgage loans that were sold to investors, the origination of which was later found to involve questionable underwriting and documentation.  We don't foresee these items being significant issues for our Company given the types of lending we have historically focused upon, the quality of our underwriting, limited housing price pressures in our legacy markets, and the strength of our loan servicing and resolution processes."

Operating Results Summary

Diluted net income to common shareholders in the third quarter of 2010 totaled $14 million, up 58% on a linked quarter basis, and down 44% compared to the same quarter last year.  EPS was $0.52 in the third quarter of 2010, an increase of 58% on a linked quarter basis, and a decrease of 58% compared to the same quarter last year.  For the third quarter of 2010, return on average assets ("ROA") was 0.52%, return on average common equity ("ROE") was 4.24%, and return on average tangible common equity was 5.64%.

Acquisition and Merger.  The Company completed its FDIC-assisted acquisition of selected assets and assumption of selected liabilities associated with Sterling Bank on July 23, 2010, including $54 million in investment securities, $151 million in loans (after discounts), and $287 million in deposits.  Financial statements reflect the impact of that acquisition beginning on that date.  Sterling Bank was formerly headquartered in Lantana, Florida, with six offices in the Miami-Fort Lauderdale Metropolitan Statistical Area ("MSA").  The conversions of branch and operating systems were successfully completed over the weekend of October 16-17, 2010.

On August 23, 2010, the Company announced its intention to merge its IBERIABANK fsb subsidiary into IBERIABANK.  The merger is anticipated to be completed in the fourth quarter of 2010.

During the third quarter of 2010, the Company incurred one-time pre-tax acquisition and conversion-related costs of $1 million, or $0.04 per share on an after-tax basis, and $4 million, or $0.08 per share on an after-tax basis in the second quarter of 2010.

Excess Cash and Margin.  The Company held $1.1 billion in excess cash on average in the second quarter of 2010, compared to $1.0 billion in the third quarter of 2010.  The Company's tax-equivalent net interest margin ("margin") declined 14 basis points on a linked quarter basis to 2.91% in the third quarter of 2010.  The aggregate excess cash position suppressed the margin approximately 45 and 37 basis points in the second and third quarters of 2010, respectively.  The Company estimates the excess cash reduced EPS by $0.29 and $0.22 in the second and third quarters of 2010, respectively.

Surplus Capital.  On March 8, 2010, the Company issued and sold 5,973,207 shares of common stock in an underwritten public offering, with net proceeds of $329 million.  The Company estimates EPS was suppressed due to the additional outstanding shares by $0.09 and $0.14 per share in the second and third quarters of 2010, respectively.

Loan Loss Provision and FDIC Loss Share Accounting.  In connection with the FDIC-Assisted transactions, the Company was required under generally accepted accounting principles to establish homogeneous pools of loans with common characteristics.  In the third quarter of 2010 the Company recorded pre-tax provision expense of $2 million, or $0.05 per share, related to FDIC covered loans associated with those select loan pools.   These figures compare to $6 million, or $0.15 per share, on a linked quarter basis.

Security Transactions And Debt Repayment.  In the third quarter, the Company incurred an other than temporary impairment ("OTTI") totaling $0.5 million on a revenue municipal security that was acquired in an acquisition in 2007.  In September 2010, the Company sold $213 million in investment securities yielding 2.80%, resulting in a gain of $4.1 million.  The Company also repaid $78 million in long-term debt at an annualized cost of 4.03%, resulting in a loss of $3.5 million and $25 million in sub-debt that carried an approximate net yield of 6.00% for a loss of $0.2 million.  The losses associated with the debt repayment and the OTTI were recorded in the income statement under "other expense."

Balance Sheet Summary

Total assets increased $184 million, or 2%, since June 30, 2010, to $10.6 billion at September 30, 2010.  Over this period, total loans increased $31 million, or 1%, and total deposits increased $190 million, or 2%.  Total shareholders' equity increased $2 million, or less than 1%, since June 30, 2010.

The majority of assets acquired in the four FDIC-assisted transactions completed in 2009 and 2010 are covered under FDIC loss sharing arrangements ("covered assets"), and loan valuations incorporate estimated losses.  As a result, a significant portion of the Company's nonperforming assets has minimal loss exposure.  Total Nonperforming Assets ("NPAs") at September 30, 2010 were $972 million, down $57 million, or 6%, compared to June 30, 2010.  Excluding $908 million in NPAs covered under the FDIC-assisted agreements, NPAs at September 30, 2010 were $65 million, down $4 million, or 6%, compared to June 30, 2010.  On that basis, NPAs were 0.81% of total assets at September 30, 2010, compared to 0.86% of assets at June 30, 2010 and 0.93% one year ago.

Loans

In the third quarter of 2010, total loans increased $31 million, or 1%.  Excluding the FDIC-assisted transactions, loans increased $42 million, or 1%, over that period. Between the times at which the acquisitions were completed and September 30, 2010, loans acquired in the FDIC acquisitions decreased by approximately $381 million, or 20%.

The loan portfolio at September 30, 2010, was comprised of disparate components.  Approximately 26% of the Company's $5.8 billion loan portfolio at that date was comprised of assets covered under FDIC loss share agreements, which provide considerable protection against credit risk on those covered assets.  The remaining $4.3 billion in loans at September 30, 2010, were associated with the Company's legacy franchise, and underwritten under the Company's guidelines.  

Period-End Loan Volumes ($ in Millions)

Loans            
 

9/30/09

12/31/09

3/31/10

6/30/10

9/30/10

 
             

Commercial

$      2,556

$      2,748

$      2,825

$      2,878

$       2,947

 

Consumer

923

914

912

929

926

 

Mortgage

467

452

441

430

406

 

Non-FDIC Loans

$      3,946

$      4,114

$      4,178

$      4,237

$       4,279

 

Covered Loans

$         353

$      1,670

$      1,561

$      1,524

$       1,512

 

Total Loans

$      4,299

$      5,784

$      5,739

$      5,761

$       5,791

 

   Non-FDIC Growth

3%

4%

2%

1%

1%

 

 

On a linked quarter basis, the yield on average total loans decreased 36 basis points to 6.14%.  The decline in average loan yield was primarily driven by FDIC loss share covered assets and a 14 basis point decline in non-covered loans.  Yields on commercial and consumer loans decreased 34 and 60 basis points, respectively, on a linked quarter basis.  The yield on mortgage loans increased 16 basis points over that period.  

Commercial real estate ("CRE") loans totaled $2.5 billion at September 30, 2010, and the average loan size was $635,000.  At September 30, 2010, approximately $1.0 billion, or 40%, of the total CRE portfolio was covered under the loss share agreements with the FDIC.  In addition, loans covered under those agreements were purchased at substantial discounts from the FDIC and are expected to offset much of the remaining credit loss exposure and servicing costs.  The remaining $1.5 billion in legacy CRE loans included $617 million in owner-occupied loans (1.99% past due 30 days or more) and $930 million in non-owner occupied CRE loans (2.15% past due 30 days or more). The legacy CRE portfolio had loans past due 30 days or more (including nonaccruing loans) equal to 2.08% of the CRE loans outstanding, compared to 2.79% at June 30, 2010.  Non-owner occupied CRE loans equated to 78% of total risk based capital at September 30, 2010.  At September 30, 2010, many of the local legacy markets remained economically healthy compared to the national economy.  

At September 30, 2010, approximately 25% of the Company's direct consumer loan portfolio (net of discounts) was covered under the FDIC loss share agreements.  The remaining legacy consumer portfolio maintained favorable asset quality.  The average credit score of the legacy consumer loan portfolio was 722, and loans past due 30 days or more were 0.61% of consumer loans at September 30, 2010 (an improvement compared to 0.81% at June 30, 2010).  Legacy home equity loans totaled $322 million at September 30, 2010, with 0.75% past due 30 days or more (0.82% at June 30, 2010).  Legacy home equity lines of credit totaled $206 million, with 0.42% past due 30 days or more (0.80% at June 30, 2010).  Annualized net charge-offs in this portfolio were 0.87% of total consumer loans in the third quarter of 2010 (0.58% in the second quarter of 2010).  The weighted average loan-to-value at origination for this portfolio over the last three years was approximately 67%.

The indirect automobile portfolio totaled $267 million at September 30, 2010, down 1% compared to the portfolio at June 30, 2010.  This portfolio equated to 5% of total loans and had 0.78% in loans past due 30 days or more (including nonaccruing loans) at September 30, 2010 (unchanged from 0.78% at June 30, 2010).  Annualized net charge-offs in the indirect loan portfolio equated to approximately 0.11% of average loans in the third quarter of 2010 (an improvement from 0.15% in the second quarter of 2010).  Approximately 87% of the indirect automobile portfolio was to borrowers in the Acadiana region of Louisiana, which currently experiences a relatively favorable unemployment rate (6.6% at August 2010, the 45th lowest unemployment rate of 372 MSAs in the United States).

Deposits

During the third quarter of 2010, total deposits increased $190 million, or 2%, and increased $33 million, or 1%, excluding the FDIC transactions. Between the consummation dates of the FDIC-assisted acquisitions and September 30, 2010, acquired deposits, excluding brokered deposits, increased approximately $221 million, or 8%, which was more favorable than the Company's expectations at closing.

Period-End Deposit Volumes ($ in Millions)

 

Deposits

           
 

9/30/09

12/31/09

3/31/10

6/30/10

9/30/10

 
             

Noninterest

$         629

$         875

$         825

$         821

$          857

 

NOW Accounts

959

1,352

1,407

1,333

1,254

 

Savings/MMkt

1,327

2,252

2,571

2,808

3,013

 

Time Deposits

1,861

3,077

3,153

3,112

3,139

 

Total Deposits

$      4,776

$      7,556

$      7,956

$      8,074

$       8,264

 

Growth

14%

58%

5%

1%

2%

 
           

 

Noninterest bearing deposits totaled $857 million at September 30, 2010, up $37 million, or 4%, compared to June 30, 2010.  Excluding the FDIC-assisted transactions, noninterest bearing deposits increased $19 million, or 3%, over this period.  On a linked quarter basis, average noninterest bearing deposits increased $22 million, or 3%, and interest-bearing deposits increased $301 million, or 4%.  The rate on average interest bearing deposits in the third quarter of 2010 was 1.32%, a decrease of 14 basis points on a linked quarter basis.  In the month of September 2010, the average cost of interest bearing deposits was 1.24%.

In September 2010, the Company paid off $78 million in long-term debt at an annualized cost of 4.03%.  The Company had only $30 million in short-term borrowings at September 30, 2010, or approximately 0.3% of total liabilities.  The cost of average interest bearing liabilities was 1.44% in the third quarter of 2010, a decrease of 12 basis points on a linked quarter basis. For the month of September 2010, the average cost of interest bearing liabilities was 1.35%.

Asset Quality

The Company's credit quality statistics were significantly affected by the FDIC-assisted acquisitions.  However, the loss share arrangements with the FDIC and discounts on the assets acquired are expected to provide substantial protection against losses on those assets.  Under the loss share agreements in connection with the FDIC-assisted acquisitions, the FDIC will cover 80% of the losses on the disposition of loans and OREO up to $1.2 billion, or $965 million (the Company covered the remaining $241 million at the times of acquisition).  In addition, the FDIC will cover 95% of losses that exceed a $970 million threshold level.  The Company received a discount of approximately $515 million on the purchase of assets in the transactions.

Excluding the FDIC-assisted transactions, NPAs and loans past due 30 days or more decreased during the third quarter of 2010 at the Company.  The legacy Company had troubled debt restructurings at September 30, 2010, totaling $18 million, compared to $8 million at June 30, 2010.

Summary Asset Quality Statistics

 

    ($thousands)

IBERIABANK

 

IBERIABANK fsb

 

IBERIABANK Corp.

 
 

1Q10*

2Q10*

3Q10*

 

1Q10

2Q10

3Q10

 

1Q10*

2Q10*

3Q10*

 
                         

Nonaccruals

$         30,054

$         25,512

$       23,027

 

$          24,570

$          22,537

$            18,054

 

$          54,624

$          48,049

$         41,081

 

OREO & Foreclosed

4,012

5,037

4,096

 

11,436

10,177

12,872

 

15,448

15,214

16,968

 

90+ Days Past Due

1,852

3,229

2,666

 

1,316

2,416

4,151

 

3,168

5,645

6,817

 

   Nonperforming Assets

$         35,918

$         33,778

$       29,789

 

$          37,322

$          35,130

$            35,077

 

$          73,240

$          68,908

$         64,865

 
                         

NPAs/Assets

0.63%

0.54%

0.48%

 

2.27%

2.11%

2.06%

 

0.98%

0.86%

0.81%

 

NPAs/(Loans + OREO)

1.13%

1.04%

0.92%

 

3.64%

3.49%

3.32%

 

1.75%

1.62%

1.51%

 

LLR/Loans

1.38%

1.36%

1.24%

 

1.98%

2.04%

2.05%

 

1.53%

1.52%

1.43%

 

Net Charge-Offs/Loans

0.08%

0.65%

0.60%

 

1.41%

0.31%

0.48%

 

0.41%

0.57%

0.57%

 
                         

* Excludes the impact of all FDIC-assisted acquisitions

 
                       

 

The FDIC-assisted transactions accounted for $908 million, or 93% of the Company's $972 million in total NPAs at September 30, 2010, and the legacy IBERIABANK Corporation franchise accounted for the remaining $65 million in NPAs.  Excluding the FDIC-assisted transactions, NPAs equated to 0.81% of total assets at September 30, 2010, compared to 0.86% at June 30, 2010.  On this same basis, total loans past due 30 days or more (including nonaccruing loans) represented 1.48% of total loans at September 30, 2010, an improvement of 42 basis points, compared to 1.90% of total loans at June 30, 2010.

Loans Past Due

 

Loans Past Due 30 Days Or More And Nonaccruing Loans As % Of Loans Outstanding

 
               

By Entity:

6/30/09

9/30/09

12/31/09

3/31/10

6/30/10

9/30/10

 
               

IBERIABANK (Ex-FDIC Covered Assets)

             

    30+ days past due

0.33%

0.32%

0.58%

0.67%

0.81%

0.32%

 

    Non-accrual

0.47%

0.45%

0.38%

0.94%

0.78%

0.70%

 

    Total Past Due

0.80%

0.77%

0.96%

1.61%

1.59%

1.02%

 
               

IBERIABANK fsb

             

    30+ days past due

1.73%

1.09%

1.12%

0.88%

0.60%

1.14%

 

    Non-accrual

1.68%

2.45%

2.78%

2.42%

2.26%

1.73%

 

    Total Past Due

3.41%

3.54%

3.90%

3.30%

2.86%

2.87%

 
               

Consolidated (Ex-FDIC Covered Assets)

             

    30+ days past due

0.64%

0.50%

0.72%

0.73%

0.77%

0.52%

 

    Non-accrual

0.74%

0.92%

0.97%

1.31%

1.13%

0.96%

 

    Total Past Due

1.38%

1.42%

1.69%

2.04%

1.90%

1.48%

 
               

Consolidated With FDIC Covered Assets

             

    30+ days past due

 

1.06%

3.60%

3.09%

3.48%

1.98%

 

    Non-accrual

 

2.79%

12.70%

14.23%

13.01%

12.95%

 

    Total Past Due

 

3.85%

16.30%

17.32%

16.49%

14.93%

 
             

 

At September 30, 2010, the allowance for loan losses was 2.28%, up compared to 1.67% at June 30, 2010.  In accordance with generally accepted accounting principles, the assets acquired in the FDIC-assisted transactions were marked to market at consummation, including estimated loan impairments.  Excluding the acquired loans, the Company's ratio of loan loss reserves to loans decreased from 1.52% at June 30, 2010 to 1.43% at September 30, 2010.

The Company reported net charge-offs of $5 million in the third quarter of 2010, compared to $6 million in the second quarter of 2010.  The ratio of net charge-offs to average loans was 0.36% in the third quarter of 2010, compared to 0.44% in the second quarter of 2010.  The Company recorded a $5 million loan loss provision in the third quarter of 2010, down 60% compared to the level recorded in the second quarter of 2010.  Excluding provision expense associated with the FDIC-assisted acquisitions, the loan loss provision declined from $6 million to $3 million on a linked quarter basis.  Management considers the loan loss reserve adequate to absorb credit losses inherent in the loan portfolio at September 30, 2010.

Investments

Total investment securities increased $160 million, or 9%, to $1.9 billion during the third quarter of 2010.  As a percentage of total assets, the investment portfolio increased from 17% at June 30, 2010 to 18% at September 30, 2010.  The investment portfolio had a modified duration of 2.4 years at September 30, 2010, compared to 2.7 years at June 30, 2010.  The unrealized gain in the investment portfolio decreased $2 million, or 5%, from $38 million at June 30, 2010 to $36 million at September 30, 2010.  Based on projected prepayment speeds and other assumptions at September 30, 2010, the portfolio was expected to generate approximately $710 million in cash flows, or about 38% of the portfolio, over the next 15 months. The average yield on investment securities decreased 33 basis points on a linked quarter basis, to 2.90% in the third quarter of 2010.  The Company holds in its investment portfolio primarily government agency and municipal securities.

Capital Position

The Company maintains strong capital ratios compared to peers.  The equity-to-assets ratio was 12.31% at September 30, 2010, compared to 12.51% at June 30, 2010.  At September 30, 2010, the Company reported a tangible common equity ratio of 10.05%, compared to 10.28% at June 30, 2010 and 9.59% one year ago.  The Company's Tier 1 leverage ratio was 10.81%, compared to 11.15% at June 30, 2010 and 11.55% one year ago.  The Company's total risk based capital ratio at September 30, 2010 was 19.90%, compared to 21.72% at June 30, 2010 and 16.83% one year ago.  The Company's tangible common equity to risk weighted assets ratio was 17.23%, compared to 18.60% at June 30, 2010, and 13.38% one year ago.

 

Regulatory Capital Ratios

 
 

At September 30, 2010

 
                     
     

Well

         

IBERIABANK

 
 

Capital Ratio

Capitalized

 

IBERIABANK

 

IBERIABANK fsb

 

Corporation

 
                     
 

Tier 1 Leverage

 

5.00%

 

7.63%

 

9.60%

 

10.81%

 
 

Tier 1 Risk Based

 

6.00%

 

14.18%

 

11.80%

 

18.64%

 
 

Total Risk Based

 

10.00%

 

15.44%

 

13.04%

 

19.90%

 
                   

 

At September 30, 2010, book value per share was $48.37, up $0.06, compared to June 30, 2010, and up 17% compared to one year ago. Tangible book value per share decreased $0.21 over that period to $38.50, and up 33% compared to one year ago.

On September 15, 2010, 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 2.56%, based on the closing stock price of the Company's common stock on October 26, 2010 of $53.14 per share.  This price equated to 1.10 times September 30, 2010 book value per share of $48.37 and 1.38 times tangible book value per share of $38.50.

Interest Rate Risk Position

The Company's interest rate risk modeling at September 30, 2010 indicated the Company is asset sensitive over a 12-month time frame.  A 100 basis point instantaneous and parallel upward shift in interest rates is estimated to increase net interest income over 12 months by approximately 5.7%.  Similarly, a 100 basis point decrease in interest rates is expected to decrease net interest income by approximately 0.6%.  At September 30, 2010, approximately 50% of the Company's loan portfolio had fixed interest rates.  Eliminating fixed rate loans that mature within a one-year time frame reduces this percentage to 46%.  Approximately 70% of the Company's time deposit base will re-price within 12 months from September 30, 2010.  

Operating Results

The Company's average excess liquidity position decreased from approximately $1.1 billion to $1.0 billion on a linked quarter basis, maintaining pressure on the yield on earning assets.  The yield on average investment securities and loans declined 33 and 36 basis points, respectively, on a linked quarter basis.  The average earning asset yield decreased 25 basis points, while the cost of interest bearing deposits and liabilities decreased 14 and 12 basis points, respectively. As a result, the net interest spread and margin declined 12 and 14 basis points, respectively, on a linked quarter basis.  Tax-equivalent net interest income decreased $1 million, or 1%, on a linked quarter basis, as average earning assets increased $344 million, or 4%, on a linked quarter basis.

Quarterly Average Yields/Cost (Taxable Equivalent Basis)

 
 

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

 
               

Earning Asset Yield

4.99%

4.66%

4.64%

4.45%

4.38%

4.13%

 

Cost Of Int-Bearing Liabs

2.12%

1.96%

1.74%

1.47%

1.56%

1.44%

 

Net Interest Spread

2.87%

2.69%

2.90%

2.97%

2.82%

2.70%

 
               

Net Interest Margin

3.17%

3.02%

3.13%

3.16%

3.05%

2.91%

 
             

 

Aggregate noninterest income increased $6 million, or 20%, on a linked quarter basis.  The primary changes on a linked quarter basis were a higher level of gains on the sale of investment securities (up $4 million) and mortgage loans (up $3 million), as well as higher brokerage income (up $1 million), partially offset by lower income on deposit account service charges, credit card fees, and commercial loan income.

The Company's mortgage origination business experienced substantial strength in the third quarter of 2010.  The Company originated $521 million in mortgage loans during the third quarter of 2010, up $79 million, or 18%, on a linked quarter basis.  Client loan refinancing opportunities accounted for approximately 52% of mortgage loan applications in the third quarter of 2010, and approximately 56% between September 30, 2010 and October 15, 2010.  The Company sold $466 million in mortgage loans during the third quarter of 2010, up $66 million, or 17%, compared to the second quarter of 2010.  Sales margins remained fairly stable on a linked quarter basis.  Gains on the sale of mortgage loans totaled $14 million in the third quarter of 2010, an increase of $3 million, or 27%, on a linked quarter basis.  The mortgage pipeline was approximately $220 million at September 30, 2010, and has since risen to approximately $236 million at October 15, 2010.

Noninterest expense increased $5 million, or 6%, on a linked quarter basis.  In aggregate, one-time merger-related costs totaled $1 million in the third quarter of 2010, compared to $4 million in the second quarter.  Excluding one-time merger-related costs, noninterest expense increased $7 million on a linked quarter basis.  The drivers of the expense increase were the penalty on the repayment of long-term debt ($3.5 million), and increases in mortgage commissions, other real estate expense, and credit and other loan expense (up approximately $1 million each). The Company incurred approximately $0.3 million in expense associated with the repurchase of mortgage loans from investors during the third quarter of 2010.  The combined tangible efficiency ratio of the Company's financial institution subsidiaries was approximately 62.1% in the third quarter of 2010.

IBERIABANK Corporation

IBERIABANK Corporation is a multi-bank financial holding company with 224 combined offices, including 144 bank branch offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, and Florida, 26 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 54 locations in 12 states.

The Company opened four new bank branch offices since June 30, 2010.  Offices were opened in Mobile and Fairhope, Alabama, reaching a total of three offices serving the greater Mobile area.  Two additional offices were opened in Houston, Texas, reaching a total of four offices serving the Houston market.

The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC."  The Company's market capitalization was approximately $1.4 billion, based on the NASDAQ closing stock price on October 26, 2010.

The following twelve investment firms currently provide equity research coverage on IBERIABANK Corporation:

  • B. Riley & Company
  • FIG Partners, LLC
  • Howe Barnes Hoefer & Arnett, Inc.
  • Keefe, Bruyette & Woods
  • Morgan Keegan & Company, Inc.
  • Raymond James & Associates, Inc.
  • Robert W. Baird & Company
  • Stephens, Inc.
  • Sterne, Agee & Leach
  • Stifel Nicolaus & Company
  • 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 Wednesday, October 27, 2010, beginning at 9:30 a.m. Central Time by dialing 1-800-230-1951. The confirmation code for the call is 173672.  A replay of the call will be available until midnight Central Time on November 3, 2010 by dialing 1-800-475-6701. The confirmation code for the replay is 173672.  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 nonrecurring transactions. 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.

Forward Looking Statements

To the extent that statements in this press release relate to future plans, objectives, financial results or performance of IBERIABANK Corporation, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which are based on management's current information, estimates and assumptions and the current economic environment, are generally identified by the use of the words "plan", "believe", "expect", "intend", "anticipate", "estimate", "project" or similar expressions. IBERIABANK Corporation's actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties.

Actual results could differ materially because of factors such as the current level of market volatility and our ability to execute our growth strategy, including the availability of future FDIC-assisted failed bank opportunities, unanticipated losses related to the integration of, and accounting for, acquired businesses and assets and assumed liabilities in FDIC-assisted transactions, adjustments of fair values of acquired assets and assumed liabilities and of deferred taxes in FDIC-assisted acquisitions, credit risk of our customers, effects of the on-going correction in residential real estate prices and reduced levels of home sales, sufficiency of our allowance for loan losses, changes in interest rates, access to funding sources, reliance on the services of executive management, competition for loans, deposits and investment dollars, reputational risk and social factors, changes in government regulations and legislation, increases in FDIC insurance assessments, geographic concentration of our markets and economic conditions in these markets, rapid changes in the financial services industry, dependence on our operational, technological, and organizational infrastructure, hurricanes and other adverse weather events, the volatility and low trading volume of our common stock, and valuation of intangible assets.  These and other factors that may cause actual results to differ materially from these forward-looking statements are discussed in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission, available at the SEC's website, www.sec.gov, and the Company's website, www.iberiabank.com.  All information in this release is as of the date of this release.  The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

 

IBERIABANK CORPORATION

 
 

FINANCIAL HIGHLIGHTS

 
                       
                       
   

For The Quarter Ended

 

For The Quarter Ended

 
   

September 30,

 

June 30,

 
   

2010

 

2009

 

% Change

 

2010

 

% Change

 
                       

Income Data (in thousands):

                   
 

Net Interest Income

$        69,933

 

$           40,666

 

72%

 

$        70,139

 

(0%)

 
 

Net Interest Income  (TE)   (1)

71,702

 

42,297

 

70%

 

72,730

 

(1%)

 
 

Net Income

13,940

 

24,952

 

(44%)

 

8,840

 

58%

 
 

Earnings Available to Common Shareholders- Basic

13,940

 

24,952

 

(44%)

 

8,840

 

58%

 
 

Earnings Available to Common Shareholders- Diluted

13,652

 

24,344

 

(44%)

 

8,651

 

58%

 
                       

Per Share Data:

                   
 

Earnings Available to Common Shareholders - Basic

$            0.52

 

$               1.23

 

(58%)

 

$            0.33

 

55%

 
 

Earnings Available to Common Shareholders - Diluted

0.52

 

1.22

 

(58%)

 

0.33

 

58%

 
 

Book Value Per Common Share

48.37

 

41.41

 

17%

 

48.31

 

0%

 
 

Tangible Book Value Per Common Share (2)

38.50

 

28.88

 

33%

 

38.71

 

(1%)

 
 

Cash Dividends

0.34

 

0.34

 

-

 

0.34

 

-

 
                       

Number of Shares Outstanding:

                   
 

Basic Shares  (Average)

26,840,723

 

20,253,317

 

33%

 

26,804,334

 

0%

 
 

Diluted Shares  (Average)

26,460,084

 

19,944,420

 

33%

 

26,506,308

 

(0%)

 
 

Book Value Shares  (Period End) (3)

26,872,742

 

20,623,541

 

30%

 

26,865,543

 

0%

 
                       

Key Ratios: (4)

                   
 

Return on Average Assets

0.52%

 

1.62%

     

0.34%

     
 

Return on Average Common Equity

4.24%

 

11.77%

     

2.73%

     
 

Return on Average Tangible Common Equity (2)

5.64%

 

17.26%

     

3.73%

     
 

Net Interest Margin  (TE) (1)

2.91%

 

3.02%

     

3.05%

     
 

Efficiency Ratio

75.3%

 

44.7%

     

75.1%

     
 

Tangible Efficiency Ratio  (TE)  (1) (2)

72.6%

 

43.5%

     

71.8%

     
 

Average Loans to Average Deposits

70.4%

 

91.0%

     

70.6%

     
 

Nonperforming Assets to Total Assets (5)

9.21%

 

2.33%

     

9.93%

     
 

Allowance for Loan Losses to Loans

2.28%

 

1.14%

     

1.67%

     
 

Net Charge-offs to Average Loans

0.36%

 

2.26%

     

0.44%

     
 

Average Equity to Average Total Assets

12.26%

 

13.67%

     

12.56%

     
 

Tier 1 Leverage Ratio

10.81%

 

11.55%

     

11.15%

     
 

Common Stock Dividend Payout Ratio

65.5%

 

28.1%

     

103.3%

     
 

Tangible Common Equity Ratio

10.05%

 

9.59%

     

10.28%

     
 

Tangible Common Equity to Risk-Weighted Assets

17.23%

 

13.38%

     

18.60%

     
                       
                       

(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)

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

 

(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.

 
                     

 

IBERIABANK CORPORATION

 

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

 

(dollars in thousands except per share data)

 
                     

BALANCE SHEET (End of Period)

September 30,

 

June 30,

 

December 31,

 
 

2010

 

2009

 

% Change

 

2010

 

2009

 

ASSETS

                   

Cash and Due From Banks

$              99,670

 

$                  66,579

 

49.7%

 

$        93,531

 

$         94,674

 

Interest-bearing Deposits in Banks

804,012

 

273,982

 

193.5%

 

1,031,205

 

80,723

 

  Total Cash and Equivalents

903,682

 

340,561

 

165.4%

 

1,124,736

 

175,397

 

Investment Securities Available for Sale

1,587,088

 

1,024,868

 

54.9%

 

1,441,994

 

1,320,476

 

Investment Securities Held to Maturity

320,707

 

70,951

 

352.0%

 

305,629

 

260,361

 

  Total Investment Securities

1,907,795

 

1,095,819

 

74.1%

 

1,747,623

 

1,580,837

 

Mortgage Loans Held for Sale

171,545

 

52,796

 

224.9%

 

114,914

 

66,945

 

Loans, Net of Unearned Income

5,791,378

 

4,298,845

 

34.7%

 

5,760,550

 

5,784,365

 

Allowance for Loan Losses

(131,954)

 

(48,787)

 

170.5%

 

(96,000)

 

(55,768)

 

  Loans, net

5,659,424

 

4,250,058

 

33.2%

 

5,664,550

 

5,728,597

 

Loss Share Receivable

906,014

 

86,955

 

941.9%

 

822,858

 

1,034,734

 

Premises and Equipment

201,626

 

130,453

 

54.6%

 

195,464

 

137,426

 

Goodwill and Other Intangibles

265,266

 

258,186

 

2.7%

 

257,865

 

260,144

 

Mortgage Servicing Rights

212

 

219

 

(3.3%)

 

235

 

229

 

Other Assets

545,184

 

251,473

 

116.8%

 

448,219

 

716,093

 

  Total Assets

$       10,560,748

 

$             6,466,520

 

63.3%

 

$ 10,376,464

 

$    9,700,402

 
                     

LIABILITIES AND SHAREHOLDERS' EQUITY

                   

Noninterest-bearing Deposits

$            856,882

 

$                628,800

 

36.3%

 

$      820,254

 

$       874,885

 

Interest-bearing Deposits

7,407,257

 

4,146,933

 

78.6%

 

7,253,657

 

6,681,263

 

  Total Deposits

8,264,139

 

4,775,733

 

73.0%

 

8,073,911

 

7,556,148

 

Short-term Borrowings

30,190

 

15,000

 

101.3%

 

15,000

 

90,000

 

Securities Sold Under Agreements to Repurchase

259,058

 

193,234

 

34.1%

 

184,969

 

173,351

 

Long-term Debt

440,915

 

526,106

 

(16.2%)

 

586,130

 

745,864

 

Other Liabilities

266,698

 

105,866

 

151.9%

 

218,625

 

180,824

 

  Total Liabilities

9,261,000

 

5,615,939

 

64.9%

 

9,078,635

 

8,746,187

 

Total Shareholders' Equity

1,299,748

 

850,581

 

52.8%

 

1,297,829

 

954,215

 

  Total Liabilities and Shareholders' Equity

$       10,560,748

 

$             6,466,520

 

63.3%

 

$ 10,376,464

 

$    9,700,402

 
                     
                     
 

For The Three Months Ended

 

For The Nine Months Ended

 

INCOME STATEMENT

September 30,

 

September 30,

 
 

2010

 

2009

 

% Change

 

2010

 

2009

 
                     

Interest Income

$              99,818

 

$                  63,554

 

57.1%

 

$      298,655

 

$       184,849

 

Interest Expense

29,885

 

22,888

 

30.6%

 

89,377

 

69,620

 

  Net Interest Income

69,933

 

40,666

 

72.0%

 

209,278

 

115,229

 

Provision for Loan Losses

5,128

 

25,295

 

(79.7%)

 

31,227

 

36,110

 

  Net Interest Income After Provision for Loan Losses

64,805

 

15,371

 

321.6%

 

178,051

 

79,119

 

Service Charges

6,085

 

5,983

 

1.7%

 

18,361

 

16,734

 

ATM / Debit Card Fee Income

2,562

 

1,958

 

30.9%

 

7,444

 

5,635

 

BOLI Proceeds and Cash Surrender Value Income

726

 

729

 

(0.4%)

 

2,153

 

2,163

 

Gain on Acquisition

-

 

57,831

 

(100.0%)

 

3,781

 

57,831

 

Gain on Sale of Loans, net

13,518

 

7,264

 

86.1%

 

31,517

 

26,602

 

Gain (Loss) on Sale of Investments, net

4,176

 

(25)

 

16931.4%

 

5,158

 

5,857

 

Title Revenue

4,852

 

4,638

 

4.6%

 

13,368

 

14,349

 

Broker Commissions

2,320

 

1,329

 

74.6%

 

5,204

 

3,544

 

Other Noninterest Income

2,542

 

1,527

 

66.4%

 

8,851

 

4,278

 

  Total Noninterest Income

36,781

 

81,234

 

(54.7%)

 

95,837

 

136,993

 

Salaries and Employee Benefits

40,932

 

29,161

 

40.4%

 

116,323

 

80,041

 

Occupancy and Equipment

8,779

 

5,856

 

49.9%

 

24,493

 

17,269

 

Amortization of Acquisition Intangibles

1,316

 

627

 

109.9%

 

3,595

 

1,870

 

Other Noninterest Expense

29,344

 

18,896

 

55.3%

 

78,736

 

48,965

 

  Total Noninterest Expense

80,371

 

54,540

 

47.4%

 

223,147

 

148,145

 

  Income Before Income Taxes

21,215

 

42,065

 

(49.6%)

 

50,741

 

67,967

 

Income Taxes

7,275

 

17,113

 

(57.5%)

 

14,958

 

25,396

 

  Net Income

$              13,940

 

$                  24,952

 

(44.1%)

 

$        35,783

 

$         42,571

 

  Preferred Stock Dividends

-

 

-

 

-

 

-

 

(3,350)

 

  Earnings Available to Common Shareholders - Basic

13,940

 

24,952

 

(44.1%)

 

35,783

 

39,221

 

  Earnings Allocated to Unvested Restricted Stock

(288)

 

(608)

 

(52.7%)

 

(716)

 

(1,035)

 

  Earnings Available to Common Shareholders - Diluted

13,652

 

24,344

 

(43.9%)

 

35,067

 

38,186

 
                     

Earnings Per Share, diluted

$                  0.52

 

$                      1.22

 

(57.7%)

 

$            1.40

 

$             2.22

 
                   

 

IBERIABANK CORPORATION

 

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

 

(dollars in thousands except per share data)

 
                     
 

For The Quarter Ended

 

BALANCE SHEET (Average)

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 
 

2010

 

2010

 

2010

 

2009

 

2009

 

ASSETS

                   

Cash and Due From Banks

$              95,687

 

$              95,822

 

$               92,145

 

$        75,435

 

$         59,975

 

Interest-bearing Deposits in Banks

959,466

 

1,007,124

 

387,929

 

305,371

 

299,591

 

Investment Securities

1,919,056

 

1,617,372

 

1,569,301

 

1,327,579

 

1,074,896

 

Mortgage Loans Held for Sale

131,944

 

82,502

 

50,810

 

58,785

 

60,350

 

Loans, Net of Unearned Income

5,830,711

 

5,616,203

 

5,737,876

 

5,070,584

 

4,049,351

 

Allowance for Loan Losses

(92,941)

 

(63,115)

 

(55,133)

 

(49,442)

 

(45,711)

 

Loss Share Receivable

865,810

 

914,437

 

1,033,377

 

590,804

 

38,784

 

Other Assets

935,828

 

1,050,169

 

1,054,224

 

787,488

 

592,455

 

  Total Assets

$       10,645,561

 

$       10,320,514

 

$          9,870,529

 

$   8,166,604

 

$    6,129,691

 
                     

LIABILITIES AND SHAREHOLDERS' EQUITY

                   

Noninterest-bearing Deposits

$            840,765

 

$            818,985

 

$             824,959

 

$      749,262

 

$       583,229

 

Interest-bearing Deposits

7,440,136

 

7,138,919

 

6,887,249

 

5,424,348

 

3,864,927

 

  Total Deposits

8,280,901

 

7,957,904

 

7,712,208

 

6,173,610

 

4,448,156

 

Short-term Borrowings

17,402

 

17,967

 

32,769

 

31,054

 

2,174

 

Securities Sold Under Agreements to Repurchase

214,411

 

176,357

 

168,303

 

188,339

 

210,115

 

Long-term Debt

567,166

 

639,923

 

736,458

 

681,789

 

536,877

 

Other Liabilities

260,155

 

231,875

 

162,675

 

174,133

 

94,189

 

  Total Liabilities

9,340,035

 

9,024,026

 

8,812,413

 

7,248,925

 

5,291,511

 

Total Shareholders' Equity

1,305,526

 

1,296,488

 

1,058,116

 

917,679

 

838,180

 

  Total Liabilities and Shareholders' Equity

$       10,645,561

 

$       10,320,514

 

$          9,870,529

 

$   8,166,604

 

$    6,129,691

 
                     
                     
 

2010

 

2009

 
 

Third

 

Second

 

First

 

Fourth

 

Third

 

INCOME STATEMENT

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 
                     

Interest Income

$              99,818

 

$            101,217

 

$               97,620

 

$        85,538

 

$         63,554

 

Interest Expense

29,885

 

31,078

 

28,414

 

27,982

 

22,888

 

  Net Interest Income

69,933

 

70,139

 

69,206

 

57,556

 

40,666

 

Provision for Loan Losses

5,128

 

12,899

 

13,201

 

9,260

 

25,295

 

  Net Interest Income After Provision for Loan Losses

64,805

 

57,240

 

56,005

 

48,296

 

15,371

 

Total Noninterest Income

36,781

 

30,704

 

28,353

 

196,353

 

81,234

 

Total Noninterest Expense

80,371

 

75,775

 

67,000

 

75,114

 

54,540

 

  Income Before Income Taxes

21,215

 

12,169

 

17,358

 

169,535

 

42,065

 

Income Taxes

7,275

 

3,329

 

4,354

 

60,633

 

17,113

 

  Net Income

$              13,940

 

$                8,840

 

$               13,004

 

$      108,902

 

$         24,952

 

  Preferred Stock Dividends

-

 

-

 

-

 

-

 

-

 

  Earnings Available to Common Shareholders - Basic

$              13,940

 

$                8,840

 

$               13,004

 

$      108,902

 

$         24,952

 

  Earnings Allocated to Unvested Restricted Stock

(288)

 

(189)

 

(252)

 

(2,717)

 

(608)

 

  Earnings Available to Common Shareholders - Diluted

$              13,652

 

$                8,651

 

$               12,752

 

$      106,185

 

$         24,344

 
                     

Earnings Per Share, basic

$                  0.52

 

$                  0.33

 

$                   0.60

 

$            5.27

 

$             1.23

 
                     

Earnings Per Share, diluted

$                  0.52

 

$                  0.33

 

$                   0.59

 

$            5.23

 

$             1.22

 
                     

Book Value Per Share

$                48.37

 

$                48.31

 

$                 48.29

 

$          46.04

 

$           41.41

 
                     

Return on Average Assets

0.52%

 

0.34%

 

0.53%

 

5.29%

 

1.62%

 

Return on Average Common Equity

4.24%

 

2.73%

 

4.98%

 

46.93%

 

11.77%

 

Return on Average Tangible Common Equity

5.64%

 

3.73%

 

6.94%

 

66.25%

 

17.26%

 
                   

 

IBERIABANK CORPORATION

 

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

 

(dollars in thousands)

 
                     

LOANS RECEIVABLE

September 30,

 

June 30,

 

December 31,

 
 

2010

 

2009

 

% Change

 

2010

 

2009

 

Residential Mortgage Loans:

                   

  Residential 1-4 Family

$            647,657

 

$             519,601

 

24.6%

 

$           767,502

 

$           975,395

 

  Construction/ Owner Occupied

14,564

 

19,737

 

(26.2%)

 

23,251

 

32,857

 

     Total Residential Mortgage Loans

662,221

 

539,338

 

22.8%

 

790,753

 

1,008,252

 

Commercial Loans:

                   

  Real Estate

2,483,420

 

1,808,787

 

37.3%

 

2,484,828

 

2,500,433

 

  Business

1,415,088

 

1,005,862

 

40.7%

 

1,348,217

 

1,217,326

 

     Total Commercial Loans

3,898,508

 

2,814,649

 

38.5%

 

3,833,045

 

3,717,759

 

Consumer Loans:

                   

  Indirect Automobile

266,859

 

267,801

 

(0.4%)

 

268,936

 

259,339

 

  Home Equity

821,608

 

525,721

 

56.3%

 

722,272

 

649,821

 

  Automobile

30,511

 

30,782

 

(0.9%)

 

30,640

 

30,552

 

  Credit Card Loans

42,370

 

42,527

 

(0.4%)

 

42,301

 

44,561

 

  Other

69,301

 

78,027

 

(11.2%)

 

72,603

 

74,081

 

     Total Consumer Loans

1,230,649

 

944,858

 

30.2%

 

1,136,752

 

1,058,354

 

     Total Loans Receivable

5,791,378

 

4,298,845

 

34.7%

 

5,760,550

 

5,784,365

 

Allowance for Loan Losses

(131,954)

 

(48,787)

     

(96,000)

 

(55,768)

 

  Loans Receivable, Net

$         5,659,424

 

$          4,250,058

     

$        5,664,550

 

$        5,728,597

 
                     
                     

ASSET QUALITY DATA

September 30,

 

June 30,

 

December 31,

 
 

2010

 

2009

 

% Change

 

2010

 

2009

 

Nonaccrual Loans

$            871,353

 

$             123,304

 

606.7%

 

$           870,153

 

$           893,441

 

Foreclosed Assets

173

 

55

 

213.8%

 

12

 

35

 

Other Real Estate Owned

57,322

 

22,906

 

150.2%

 

45,831

 

74,056

 

Accruing Loans More Than 90 Days Past Due

43,593

 

4,698

 

828.0%

 

113,891

 

43,952

 

Total Nonperforming Assets

$            972,441

 

$             150,963

 

544.2%

 

$        1,029,887

 

$        1,011,485

 
                     

Nonperforming Assets to Total Assets

9.21%

 

2.33%

 

294.5%

 

9.93%

 

10.43%

 

Nonperforming Assets to Total Loans and OREO

16.6%

 

3.49%

 

375.9%

 

17.74%

 

17.27%

 

Allowance for Loan Losses to Nonperforming Loans (1)

14.4%

 

38.1%

 

(62.2%)

 

9.8%

 

5.9%

 

Allowance for Loan Losses to Nonperforming Assets

13.6%

 

32.3%

 

(58.0%)

 

9.3%

 

5.5%

 

Allowance for Loan Losses to Total Loans

2.28%

 

1.14%

 

100.7%

 

1.67%

 

0.96%

 

Year to Date Charge-offs

$              22,638

 

$               29,892

 

(24.3%)

 

$             14,596

 

$             33,267

 

Year to Date Recoveries

(6,103)

 

(1,554)

 

292.8%

 

(3,391)

 

$             (2,646)

 

Year to Date Net Charge-offs

$              16,535

 

$               28,338

 

(41.7%)

 

$             11,205

 

$             30,621

 

Quarter to Date Net Charge-offs

$                5,330

 

$               22,980

 

(76.8%)

 

$               6,111

 

$               2,283

 
                     

(1) Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due.

 
                     
                     

DEPOSITS

September 30,

 

June 30,

 

December 31,

 
 

2010

 

2009

 

% Change

 

2010

 

2009

 
                     

Noninterest-bearing Demand Accounts

$            856,882

 

$             628,800

 

36.3%

 

$           820,254

 

$           874,885

 

NOW Accounts

1,254,498

 

959,041

 

30.8%

 

1,333,120

 

1,351,609

 

Savings and Money Market Accounts

3,013,378

 

1,326,202

 

127.2%

 

2,808,412

 

2,253,065

 

Certificates of Deposit

3,139,381

 

1,861,690

 

68.6%

 

3,112,125

 

3,076,589

 

  Total Deposits

$         8,264,139

 

$          4,775,733

 

73.0%

 

$        8,073,911

 

$        7,556,148

 
                   

 

IBERIABANK CORPORATION

 

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

 

Taxable Equivalent Basis

 

(dollars in thousands)

 
                         
                         
 

For The Quarter Ended

 
 

September 30, 2010

 

June 30, 2010

 

September 30, 2009

 
     

Average

     

Average

     

Average

 
 

Average

Balance

 

Yield/Rate (%)

 

Average

Balance

 

Yield/Rate (%)

 

Average

Balance

 

Yield/Rate (%)

 

ASSETS

                       

Earning  Assets:

                       

Loans Receivable:

                       

Mortgage Loans

$                710,112

 

7.42%

 

$       902,597

 

7.26%

 

$       501,196

 

5.60%

 

Commercial Loans (TE) (1)

3,918,156

 

5.88%

 

3,644,349

 

6.22%

 

2,614,911

 

4.74%

 

Consumer and Other Loans

1,202,443

 

6.21%

 

1,069,257

 

6.81%

 

933,244

 

6.42%

 

Total  Loans

5,830,711

 

6.14%

 

5,616,203

 

6.50%

 

4,049,351

 

5.23%

 

Mortgage Loans Held for Sale

131,944

 

4.26%

 

82,502

 

4.65%

 

60,350

 

4.72%

 

Investment  Securities (TE) (1)(2)

1,843,511

 

2.90%

 

1,573,403

 

3.23%

 

1,040,275

 

4.03%

 

Other  Earning Assets

1,898,123

 

0.19%

 

2,088,590

 

0.16%

 

380,080

 

0.28%

 

Total  Earning Assets

9,704,289

 

4.13%

 

9,360,698

 

4.38%

 

5,530,056

 

4.66%

 

Allowance for Loan Losses

(92,941)

     

(63,115)

     

(45,711)

     

Nonearning Assets

1,034,213

     

1,022,931

     

645,346

     

Total Assets

$           10,645,561

     

$  10,320,514

     

$    6,129,691

     
                         

LIABILITIES AND SHAREHOLDERS' EQUITY

                       

Interest-bearing liabilities

                       

  Deposits:

                       

     NOW Accounts

$             1,281,554

 

0.67%

 

$    1,347,510

 

0.74%

 

$       945,141

 

0.77%

 

     Savings and Money Market Accounts

2,953,907

 

1.18%

 

2,678,399

 

1.54%

 

1,222,273

 

1.31%

 

     Certificates of Deposit

3,204,675

 

1.71%

 

3,113,010

 

1.71%

 

1,697,513

 

2.69%

 

        Total Interest-bearing Deposits

7,440,136

 

1.32%

 

7,138,919

 

1.46%

 

3,864,927

 

1.78%

 

  Short-term Borrowings

231,813

 

0.39%

 

194,324

 

0.40%

 

212,289

 

0.68%

 

  Long-term Debt

567,166

 

3.35%

 

639,923

 

3.01%

 

536,877

 

3.75%

 

        Total Interest-bearing Liabilities

8,239,115

 

1.44%

 

7,973,166

 

1.56%

 

4,614,093

 

1.96%

 

Noninterest-bearing Demand Deposits

840,765

     

818,985

     

583,229

     

Noninterest-bearing Liabilities

260,155

     

231,875

     

94,189

     

        Total Liabilities

9,340,035

     

9,024,026

     

5,291,511

     

Shareholders' Equity

1,305,526

     

1,296,488

     

838,180

     

        Total Liabilities and Shareholders' Equity

$           10,645,561

     

$  10,320,514

     

$    6,129,691

     
                         
                         

Net Interest Spread

$                  69,933

 

2.70%

 

$         70,139

 

2.82%

 

$         40,666

 

2.69%

 

Tax-equivalent Benefit

1,769

 

0.07%

 

2,591

 

0.08%

 

1,631

 

0.12%

 

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

$                  71,702

 

2.91%

 

$         72,730

 

3.05%

 

$         42,297

 

3.02%

 
                         
                         

(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.

 
                       

 

IBERIABANK CORPORATION

 

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

 

Taxable Equivalent Basis

 

(dollars in thousands)

 
                 
                 
 

For The Nine Months Ended

 
 

September 30, 2010

 

September 30, 2009

 
 

Average

 

Average

 

Average

 

Average

 
 

Balance

 

Yield/Rate (%)

 

Balance

 

Yield/Rate (%)

 

ASSETS

               

Earning  Assets:

               

Loans Receivable:

               

Mortgage Loans

$            867,399

 

6.75%

 

$       504,817

 

5.63%

 

Commercial Loans (TE) (1)

3,754,208

 

5.93%

 

2,439,238

 

4.70%

 

Consumer and Other Loans

1,107,893

 

6.49%

 

917,286

 

6.51%

 

Total  Loans

5,729,500

 

6.16%

 

3,861,341

 

5.25%

 

Mortgage Loans Held for Sale

88,716

 

4.45%

 

77,107

 

4.76%

 

Investment  Securities (TE) (1)(2)

1,653,686

 

3.16%

 

1,005,094

 

4.36%

 

Other  Earning Assets

1,879,796

 

0.15%

 

219,248

 

0.42%

 

Total  Earning Assets

9,351,698

 

4.31%

 

5,162,790

 

4.87%

 

Allowance for Loan Losses

(70,453)

     

(43,149)

     

Nonearning Assets

1,003,918

     

647,334

     

Total Assets

$       10,285,163

     

$    5,766,975

     
                 

LIABILITIES AND SHAREHOLDERS' EQUITY

               

Interest-bearing Liabilities

               

  Deposits:

               

     NOW Accounts

$         1,341,581

 

0.72%

 

$       934,387

 

0.84%

 

     Savings and Money Market Accounts

2,680,060

 

1.44%

 

1,110,934

 

1.42%

 

     Certificates of Deposit

3,132,881

 

1.61%

 

1,584,666

 

2.90%

 

        Total Interest-bearing Deposits

7,154,522

 

1.38%

 

3,629,987

 

1.92%

 

  Short-term Borrowings

209,297

 

0.39%

 

190,555

 

0.74%

 

  Long-term Debt

647,229

 

3.03%

 

543,699

 

4.01%

 

        Total Interest-bearing Liabilities

8,011,048

 

1.49%

 

4,364,241

 

2.13%

 

Noninterest-bearing Demand Deposits

828,294

     

569,371

     

Noninterest-bearing Liabilities

224,850

     

84,546

     

        Total Liabilities

9,064,192

     

5,018,158

     

Shareholders' Equity

1,220,971

     

748,817

     

        Total Liabilities and Shareholders' Equity

$       10,285,163

     

$    5,766,975

     
                 
                 

Net Interest Spread

$            209,278

 

2.82%

 

$       115,229

 

2.74%

 

Tax-equivalent Benefit

6,193

 

0.08%

 

4,385

 

0.11%

 

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

$            215,471

 

3.04%

 

$       119,614

 

3.07%

 
                 
                 

(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.

 
               

 

IBERIABANK CORPORATION

 

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

 

(dollars in thousands)

 
             
 

For The Quarter Ended

 
 

9/30/2010

 

6/30/2010

 

9/30/2009

 
             

Net Interest Income

$                69,933

 

$             70,139

 

$        40,666

 

Effect of Tax Benefit on Interest Income

1,769

 

2,591

 

1,631

 

Net Interest Income (TE) (1)

71,702

 

72,730

 

42,297

 

Noninterest Income

36,781

 

30,704

 

81,234

 

Effect of Tax Benefit on Noninterest Income

391

 

386

 

393

 

Noninterest Income (TE) (1)

37,172

 

31,090

 

81,627

 

Total Revenues (TE) (1)

$              108,874

 

$           103,820

 

$      123,924

 
             

Total Noninterest Expense

$                80,371

 

$             75,775

 

$        54,540

 

Less Intangible Amortization Expense

(1,316)

 

(1,269)

 

(627)

 

Tangible Operating Expense (2)

$                79,055

 

$             74,506

 

$        53,913

 
             

Return on Average Common Equity

4.24%

 

2.73%

 

11.77%

 

Effect of Intangibles (2)

1.40%

 

1.00%

 

5.49%

 

Return on Average Tangible Common Equity (2)

5.64%

 

3.73%

 

17.26%

 
             

Efficiency Ratio

75.3%

 

75.1%

 

44.7%

 

Effect of Tax Benefit Related to Tax Exempt Income

(1.5%)

 

(2.1%)

 

(0.7%)

 

Efficiency Ratio (TE) (1)

73.8%

 

73.0%

 

44.0%

 

Effect of Amortization of Intangibles

(1.2%)

 

(1.2%)

 

(0.5%)

 

Tangible Efficiency Ratio (TE) (1) (2)

72.6%

 

71.8%

 

43.5%

 
             

(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.

 
           

 

SOURCE IBERIABANK Corporation