IBERIABANK Corporation Reports First Quarter Results

LAFAYETTE, La., April 27, 2016 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 129-year-old IBERIABANK (www.iberiabank.com), reported operating results for the first quarter ended March 31, 2016.  For the quarter, the Company reported income available to common shareholders of $40.2 million, or $0.97 fully diluted earnings per common share ("EPS").  In the first quarter of 2016, the Company incurred non-operating expenses net of non-operating revenue and income taxes equal to $1.6 million, or $0.04 per common share.   Excluding non-operating items, operating EPS in the first quarter of 2016 was $1.01 per common share on a non-GAAP operating basis (refer to press release supplemental table).  The $1.01 operating EPS results in the first quarter of 2016 were within management's guidance range and exceeded consensus analyst expectations.

Daryl G. Byrd, President and Chief Executive Officer, commented, "We are pleased at the progress we achieved this past quarter in improving our operating efficiency and profitability. We delivered unseasonably strong legacy loan growth and continued margin strength in the first quarter, both of which are favorable trends which we believe run counter to our peers. In addition, some of our fee income businesses, including mortgage, client derivatives, and treasury management, delivered strong revenue growth and our successful cost containment efforts were evident as our tangible operating efficiency ratio improved to 60.3%, placing us on the very cusp of our strategic efficiency goal of 60%."

Byrd continued, "These favorable financial results were achieved despite the headwinds associated with our continued pro-active 'risk-off trade' and vigilance in mitigating risks that sustained low energy prices are having on selected clients.We increased our energy-related loan loss reserves by 48% on a linked quarter basis, while our operating EPS on a pre-tax pre-provision basis reached $2.00 per share in the first quarter of 2016, a record for our Company, and an increase of 30% compared to the first quarter of 2015. We remain comfortable with the full year 2016 guidance we previously provided to the investment community regarding our growth expectations, continued margin strength, expense targets, and delivering solid operating earnings. We are keenly focused on delivering exceptional client service and continued progress in improved long-term shareholder returns."

 

 

Highlights for the first quarter of 2016 and at March 31, 2016:

  • Energy-related loans ("energy loans") increased $51 million, or 7%, between December 31, 2015 and March 31, 2016, and at March 31, 2016, equated to 5.1% of total loans. At March 31, 2016, $46 million in energy loans were held on non-performing status (6.3% of total energy loans), up from $8 million at year-end 2015. At March 31, 2016, the Company had approximately $39 million in aggregate reserves for energy loans and unfunded commitments, an increase of $13 million, or 48%, since December 31, 2015. At quarter-end, energy-related reserves equated to 5.4% of energy loans outstanding. The Company had no energy loans past due at March 31, 2016, and incurred no energy-related charge-offs in the first quarter of 2016. Exclusive of energy loans, the Company's general asset quality improved on a linked quarter basis and on a year-over-year basis.
  • The Company's net interest margin was stable on a linked quarter basis at 3.64%, which was above management's expectations. The Company's cash margin improved 10 basis points on a linked quarter basis.
  • On a linked quarter basis, the Company's operating revenues increased $3.5 million, or 2%, while its operating expenses increased $0.7 million, or less than 1%. The tangible efficiency ratio improved from 61.1% to 60.3% on a linked quarter basis.
  • During the first quarter of 2016, the Company closed or consolidated 19 branches, which is expected to result in projected annual net run-rate savings of at least $1 million per quarter starting in the second quarter of 2016. The Company incurred $2.1 million in pre-tax non-operating expenses in the first quarter of 2016 associated with branch closures and consolidations.
  • Total loan growth was $124 million, or 1%, between December 31, 2015 and March 31, 2016. Legacy loan growth, which excludes all assets covered under FDIC loss share agreements and other non-covered acquired assets (collectively, "Acquired Assets"), increased $338 million, or 3% (12% annualized rate), on a period-end basis and $370 million, or 3% (14% annualized rate), on an average balance basis.
  • Total deposits increased $82 million, or less than 1%, between quarter-ends, and decreased $348 million, or 2%, on an average balance basis.  Non-interest-bearing deposits increased $132 million, or 3%, between quarter-ends and decreased $72 million, or 2%, on an average balance basis.  The Company's loan-to-deposit ratio was 88.9% at March 31, 2016, up slightly from 88.6% at year-end 2015 and 87.8% one year prior.  

 

 

Table A - Summary Financial Results

(Dollars in thousands, except per share data)

                     
 

For the Three Months Ended

 

3/31/2016

   

12/31/2015

 

% Change

 

3/31/2015

 

% Change

Net income available to common shareholders

$         40,193

   

$         44,407

 

(9.5)

 

$         25,126

 

60.0

Earnings per common share - diluted

0.97

   

1.08

 

(10.2)

 

0.75

 

29.3

                     

Average gross loans and leases

$ 14,354,410

   

$ 14,185,150

 

1.2

 

$ 11,563,946

 

24.1

Average total deposits

15,945,069

   

16,292,755

 

(2.1)

 

12,761,808

 

24.9

Net interest margin (TE) (1)

3.64

%

 

3.64

%

   

3.54

%

 
                     

OPERATING BASIS (NON-GAAP) (2):

                   

Total revenues

$       217,052

   

$       213,506

 

1.7

 

$       174,314

 

24.5

Total non-interest expense

134,860

   

134,111

 

0.6

 

122,787

 

9.8

Earnings per common share - diluted

1.01

   

1.11

 

(9.0)

 

0.95

 

6.3

Tangible efficiency ratio (TE)(1) (4)

60.3

%

 

61.1

%

   

68.5

%

 

Return on average assets

0.85

   

0.92

     

0.81

   

Return on average tangible common equity

10.26

   

11.20

     

9.92

   

Net interest margin (TE) - cash basis (1)(3)

3.48

   

3.38

     

3.28

   
                     
 

(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)

See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations.

   

(3)

See Table 8 for adjustments related to purchase discounts on acquired loans and related accretion and the impact of the FDIC indemnification asset.

   

(4)

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

 

 

Operating Results

On a linked quarter basis, average loan volume (including the FDIC loss share receivable) increased $165 million, or 1%, and the associated yield increased one basis point.  Over that period, average legacy loans increased $370 million, or 3%, with an increase in yield of 10 basis points, and acquired loans (including the FDIC loss share receivable) decreased $205 million, or 6%, and the yield decreased 13 basis points.  All other average earning assets, including investment securities, mortgage loans held for sale, and interest-bearing deposits in other institutions, increased a total of $20 million, or less than 1%.

On a linked quarter basis, average earning assets increased $185 million, or 1%, and the average earning asset yield remained stable. Average interest-bearing liabilities increased $161 million, or 1%, and the cost of interest-bearing liabilities remained constant over the period.  As a result, the net interest spread and margin were each unchanged.  On a linked quarter basis, tax-equivalent net interest income increased $0.2 million, or less than 1%. One less business day in the first quarter of 2016 compared to the fourth quarter of 2015 suppressed net interest income in the first quarter of 2016 by approximately $1.5 million.

In the first quarter of 2016, non-interest income increased $3.3 million, or 6%, compared to the fourth quarter of 2015.  Non-operating non-interest income totaled $0.2 million in the first quarter of 2016, similar to the fourth quarter of 2015.  Operating non-interest income increased $3.3 million, or 6%, on a linked quarter basis.  The primary changes in operating non-interest income on a linked quarter basis included:

  • Increased mortgage income of $3.2 million, or 19%; and
  • Increased client derivative income of $1.9 million, or 175%; partially offset by
  • Decreased title revenues of $0.7 million, or 13%; and
  • Decreased service charge income of $0.5 million, or 4%.

In the first quarter of 2016, the Company originated $516 million in residential mortgage loans, down $42 million, or 8%, on a linked quarter basis.  Client loan refinancing opportunities accounted for approximately 23% of mortgage loan applications in the first quarter of 2016, which was stable on a linked quarter basis.  The Company sold $488 million in mortgage loans during the first quarter of 2016, down $109 million, or 18%, on a linked quarter basis.  Loans held for sale increased from $166 million at December 31, 2015, to $193 million at March 31, 2016.  The mortgage origination locked pipeline increased $118 million, or 52%, between December 31, 2015, and March 31, 2016, to $345 million at quarter-end, and up $66 million, or 24%, over the comparable period last year.  At April 22, 2016, the locked pipeline was $382 million, up $37 million, or 11%, compared to March 31, 2016.  The improvement mortgage income on a linked quarter basis was primarily the result of higher volumes of the mortgage origination locked pipeline and mortgage loans held for sale, and an improvement in the gain on sale margin.

Non-interest expense decreased $1.5 million, or 1%, on a linked quarter basis, while non-operating expense declined $2.3 million and operating expense increased $0.7 million, or less than 1%.  Operating expense changes included the following on a linked quarter basis:

  • Increased marketing and business development expenses of $1.3 million, or 61%;
  • Increased core deposit intangible amortization of $0.3 million, or 18%;
  • Increased travel and entertainment expenses of $0.3 million, or 17%; and
  • Increased OREO-related expense of $0.3 million; partially offset by
  • Decreased salaries and employee benefit expenses of $1.3 million, or 2%.

The Company's operating tangible efficiency ratio in the first quarter of 2016 was 60.3%, down from 61.1% in the fourth quarter of 2015.  The Company continues to focus on expense savings and revenue enhancement strategies intended to achieve a targeted operating tangible efficiency ratio of less than 60% by the fourth quarter of 2016.  

 

 

Table B - Summary Financial Condition Results

(Dollars in thousands, except per share data)

                           
   

As of and For the Three Months Ended

   

3/31/2016

 

12/31/2015

 

% Change

 

3/31/2015

 

% Change

PERIOD-END BALANCES:

                       
 

Total loans and leases

$ 14,451,244

   

$ 14,327,428

   

0.9

 

$ 12,873,461

   

12.3

 

Legacy loans and leases

11,528,697

   

11,190,520

   

3.0

 

9,894,869

   

16.5

 

Total deposits

16,260,566

   

16,178,748

   

0.5

 

14,665,024

   

10.9

                           

ASSET QUALITY RATIOS (LEGACY):

                       
 

Past due loans to total loans(1)

1.18

%

 

0.64

%

     

0.79

%

   
 

Non-performing assets to total assets(2)

0.65

   

0.42

       

0.55

     
 

Classified assets to total assets(3)

2.21

   

1.02

       

0.61

     
                           

CAPITAL RATIOS:

                       
 

Tangible common equity ratio (Non-GAAP) (4) (5)

8.83

%

 

8.86

%

     

8.62

%

   
 

Tier 1 leverage ratio

9.41

   

9.52

       

8.87

     
 

Total risk-based capital ratio

12.21

   

12.14

       

11.62

     
                           

PER COMMON SHARE DATA:

                       
 

Book value

$           59.93

   

$           58.87

   

1.8

 

$           56.77

   

5.6

 

Tangible book value (4)

41.38

   

40.35

   

2.6

 

39.26

   

5.4

 

Closing stock price

51.27

   

55.07

   

(6.9)

 

63.03

   

(18.7)

 

Cash dividends

0.34

   

0.34

   

 

0.34

   

                           
   

(1)

Past due loans include non-accruing loans.

   

(2)

Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets.

   

(3)

Classified assets consist of $378 million, $166 million and $91 million at March 31, 2016, December 31, 2015 and March 31, 2015, respectively.

   

(4)

See Table 10 for the GAAP to Non-GAAP reconciliation.

   

(5)

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

 

 

Loans

Total loans increased $124 million, or 1%, between December 31, 2015, and March 31, 2016.  Over that period, the acquired loan portfolio decreased $214 million, or 7%, and legacy loans increased $338 million, or 3% (12% annualized rate), including an increase in total energy loans of $51 million, or 7%, and a decline in indirect automobile loans of $33 million, or 13%.  During the first quarter of 2016, legacy commercial loans increased $294 million, or 4% (which included $52 million in small business loan growth, up 5%, or 19% annualized rate), legacy consumer loans increased $8 million, or less than 1%, and legacy mortgage loans increased $37 million, or 5% (21% annualized rate).  Excluding the impact of energy fundings, period-end loan growth during the first quarter of 2016 was strongest in the Southeast Florida, Naples, Birmingham, Tampa, and Dallas  markets.  Funded loan origination and renewal mix in the first quarter of 2016 was 34% fixed rate and 66% floating rate, and total loans outstanding (excluding non-accruals) were 45% fixed and 55% floating.  Loans and commitments originated and/or renewed during the first quarter of 2016 totaled $1.3 billion (down 13% on a linked quarter basis).  At March 31, 2016, the Company's commercial loan pipeline was approximately $900 million.  

 

Table C - Period-End Loans

(Dollars in thousands, except per share data)

                                 
 

As of and For the Three Months Ended

             

Linked Qtr Change

 

Year/Year Change

 

Mix

 

3/31/2016

 

12/31/2015

 

3/31/2015

 

$

%

 

Annualized

 

$

%

 

3/31/2016

12/31/2015

Legacy loans:

                               

Commercial

$   8,427,154

 

$    8,133,341

 

$   7,157,090

 

293,813

3.6

 

14.4 %

 

1,270,064

17.7

 

73.1 %

72.7 %

Residential mortgage

730,621

 

694,023

 

553,815

 

36,598

5.3

 

21.1 %

 

176,806

31.9

 

6.3 %

6.2 %

Consumer

2,370,922

 

2,363,156

 

2,183,964

 

7,766

0.3

 

1.3 %

 

186,958

8.6

 

20.6 %

21.1 %

Total legacy loans

11,528,697

 

11,190,520

 

9,894,869

 

338,177

3.0

 

12.1 %

 

1,633,828

16.5

 

100 %

100 %

                                 

Acquired loans:

                               

Balance at beginning of period

3,136,908

 

3,337,761

 

1,772,330

 

(200,853)

(6.0)

     

1,364,578

77.0

     

Loans acquired during the period

-

 

-

 

1,370,482

 

-

-

     

(1,370,482)

(100.0)

     

Net paydown activity

(214,361)

 

(200,853)

 

(164,220)

 

(13,508)

6.7

     

(50,141)

30.5

     

Total acquired loans

2,922,547

 

3,136,908

 

2,978,592

 

(214,361)

(6.8)

     

(56,045)

(1.9)

     

Total loans

$ 14,451,244

 

$  14,327,428

 

$ 12,873,461

 

123,816

0.9

     

1,577,783

12.3

     

 

 

Energy loans outstanding totaled $732 million at March 31, 2016, up $51 million, or 7%, compared to December 31, 2015, and equated to approximately 5.1% of total loans.  The increase in energy loans was the result of select exploration and production companies drawing on commitment lines (up $56 million) and normal draws on existing working capital lines at select midstream companies (up $14 million), partially offset by a decrease in oil field service loans outstanding (down $19 million.) Energy-related commitments totaled $1.2 billion at March 31, 2016, down $78 million, or 6%, compared to year-end 2015. Loans to exploration and production companies accounted for 51% of energy loans outstanding and 56% of energy loan commitments at March 31, 2016.  Midstream companies accounted for 18% of energy loans and 17% of energy loan commitments, and service companies accounted for 31% of energy loans and 27% of energy loan commitments.  At March 31, 2016, $46 million in energy loans were on non-accrual status (compared to $8 million at December 31, 2015), and no energy loans were past due greater than 30 days at quarter-end.  At March 31, 2016,  approximately 39% of energy loans were classified, and 49% were criticized.  To date, the Company has experienced no energy-related charge-offs.  Additional information regarding the Company's energy loan and commitment exposure is provided in the supplemental investor presentation.

At March 31, 2016, the Company's indirect automobile lending business had approximately $213 million in loans outstanding, down $33 million, or 13%, compared to December 31, 2015 (1.5% of total loans outstanding compared to 1.7% at December 31, 2015).

Deposits

Total deposits increased $82 million, or less than 1%, between December 31, 2015 and March 31, 2016.  Non-interest-bearing deposits increased $132 million, or 3%, and equated to 28% of total deposits at March 31, 2016.  NOW accounts decreased $14 million, or less than 1%, while money market accounts decreased $47 million, or less than 1%, and time deposits decreased $45 million, or 2%, between December 31, 2015 and March 31, 2016.  Savings deposits increased $55 million, or 8%, between quarter-ends.  Deposit growth during the first quarter of 2016 was strongest in the Lake Charles, Houston, Orlando, Birmingham, and Naples markets.  

 

Table D - Period-End Deposits

(Dollars in thousands)

             

Linked Qtr Change 

 

Year/Year Change(1)

 

Mix

 

3/31/2016

 

12/31/2015

 

3/31/2015

 

$

%

Annualized

 

$

%

 

3/31/2016

12/31/2015

Non-interest-bearing

$   4,484,024

 

$   4,352,229

 

$   3,860,820

 

131,795

3.0

12.1%

 

623,204

16.1

 

27.6 %

26.9 %

NOW accounts

2,960,562

 

2,974,176

 

2,729,791

 

(13,614)

(0.5)

(1.8)%

 

230,771

8.5

 

18.2 %

18.4 %

Money market accounts

5,964,029

 

6,010,882

 

5,067,462

 

(46,853)

(0.8)

(3.1)%

 

896,567

17.7

 

36.7 %

37.2 %

Savings accounts

772,117

 

716,838

 

728,981

 

55,279

7.7

30.8%

 

43,136

5.9

 

4.7 %

4.4 %

Time deposits

2,079,834

 

2,124,623

 

2,277,970

 

(44,789)

(2.1)

(8.4)%

 

(198,136)

(8.7)

 

12.8 %

13.1 %

Total deposits

$ 16,260,566

 

$ 16,178,748

 

$ 14,665,024

 

81,818

0.5

2.0%

 

1,595,542

10.9

 

100.0 %

100.0 %

                               

(1) Growth includes the impact of acquisitions.

 

 

 

On an average balance and linked quarter basis, non-interest-bearing deposits decreased $72 million, or 2%, and interest-bearing deposits decreased $276 million, or 2%.  The rate on average interest-bearing deposits in the first quarter of 2016 was 0.42%, down one basis point on a linked quarter basis.

Other Assets And Funding

On an average balance and linked quarter basis, the investment portfolio decreased $34 million, or 1%, to $2.9 billion in the first quarter of 2016.  On a period-end basis, the investment portfolio equated to $2.9 billion, or 14% of total assets at March 31, 2016, compared to 15% at December 31, 2015.  The investment portfolio had an effective duration of 2.8 years at March 31, 2016, compared to 3.3 years at December 31, 2015.  The investment portfolio had a $39 million unrealized gain at March 31, 2016.  The average yield on investment securities increased four basis points on a linked quarter basis, to 2.25% in the first quarter of 2016.  The Company holds in its investment portfolio primarily government agency securities.  Municipal securities comprised only 8% of total investments at March 31, 2016.  The Company holds for investment no sovereign debt, equity securities, trust preferred securities, or derivative exposure to foreign counterparties.

On a linked quarter basis, average short-term borrowings (including repurchase agreements) increased $254 million, or 106%, and the cost of short-term borrowings increased 23 basis points.  At March 31, 2016, short-term borrowings (including repurchase agreements) increased $172 million, or 53%, compared to year-end 2015.  On a linked quarter basis, average long-term debt increased $182 million, or 54%, and the cost of long-term debt decreased 67 basis points to 2.35%.  The cost of average interest-bearing liabilities was 0.49% in the first quarter of 2016, unchanged on a linked quarter basis.

Asset Quality

Between December 31, 2015 and March 31, 2016, legacy non-performing assets ("NPAs") increased $43 million, or 63%.  At March 31, 2016, NPAs included $11 million in former bank branches and related real estate, an increase of 36% compared to December 31, 2015.  At March 31, 2016, legacy NPAs equated to 0.65% of total assets, up from 0.42% at December 31, 2015, and 0.59% of total assets excluding bank-related properties, up from 0.37% at December 31, 2015.

Legacy loans past due 30 days or more (excluding non-accruing loans) increased $22 million, or 105%, and represented 0.37% of total legacy loans at March 31, 2016, compared to 0.19% at December 31, 2015.  Of the $22 million increase in loans past due, $20 million was related to three loans that were past due at quarter-end due to the fact that those loans had matured. Since the end of the first quarter of 2016, the largest of the three loans (totaling $9 million past due), was renewed and is current.

Net charge-offs totaled $4.0 million in the first quarter of 2016, up $1.1 million, or 37%, compared to the fourth quarter of 2015.  Annualized net charge-offs equated to 0.11% of average loans in the first quarter of 2016, up three basis points on a linked quarter basis.  The Company's provision for loan losses increased $3.2 million, or 27%, on a linked quarter basis to $14.9 million.

Capital Position

At March 31, 2016, the Company reported a tangible common equity ratio of 8.83%, down three basis points compared to December 31, 2015, and the preliminary Tier 1 leverage ratio was 9.41%, down 11 basis points compared to December 31, 2015. The Company's preliminary calculation of its total risk-based capital ratio at March 31, 2016, was 12.21%, up seven basis points compared to December 31, 2015.  During the first quarter of 2016, the remaining 25% of trust preferred securities included in the Company's Tier 1 capital ratio at year-end 2015 was phased into Tier 2 capital.  As a result, the negative impact on Tier 1 capital ratios was approximately 18 basis points. No impact on the Company's total risk-based capital ratio was associated with this change.

At March 31, 2016, book value per common share was $59.93, up $1.06 per share, or 2%, compared to December 31, 2015. Tangible book value per common share was $41.38, up $1.03 per share, or 3%, compared to December 31, 2015.  Based on the closing stock price of the Company's common stock of $57.01 per share on April 27, 2016, this price equated to 0.95 times March 31, 2016 book value per common share and 1.38 times March 31, 2016 tangible book value per common share.

On March 14, 2016, the Company declared a quarterly cash dividend of $0.34 per common share. This common dividend level equated to an annualized dividend rate of $1.36 per common share.  Based on the Company's closing common stock price on April 27, 2016, the indicated dividend yield was 2.39% per common share. The payment of dividends is at the discretion of the Board of Directors.

On August 5, 2015, the Company sold 3.2 million depositary shares, each representing a 1/400th interest in a share of non-cumulative perpetual preferred stock. The preferred stock has an initial coupon equal to 6.625% for a period of 10 years, and thereafter floats at a rate of LIBOR plus 426.2 basis points. The Company raised approximately $80 million in gross proceeds ($77 million net proceeds) from the transaction.  On January 4, 2016, the Company declared a semi-annual cash dividend of $0.805 per depositary share that was paid on February 1, 2016.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with 298 combined offices, including 199 bank branch offices and three loan production offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, and Georgia, 22 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 65 locations in 10 states.  The Company has eight locations with representatives of IBERIA Wealth Advisors in four states, and one IBERIA Capital Partners L.L.C. office in New Orleans.

The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC" and its Series B Preferred Stock trades on the NASDAQ Global Select Market under the symbol "IBKCP".  The Company's common stock market capitalization was approximately $2.4 billion, based on the NASDAQ Global Select Market closing stock price on April 27, 2016.

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

  • Bank of America Merrill Lynch
  • FBR & Co.
  • FIG Partners, LLC
  • Hovde Group, LLC
  • Jefferies & Co., Inc.
  • Keefe, Bruyette & Woods, Inc.
  • Piper Jaffray & Co.
  • Raymond James & Associates, Inc.
  • Robert W. Baird & Company
  • Sandler O'Neill + Partners, L.P.
  • Stephens, Inc.
  • SunTrust Robinson-Humphrey

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 28, 2016, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 5200632.  A replay of the call will be available until midnight Central Time on May 5, 2016 by dialing 1-877-344-7529. The confirmation code for the replay is 10083371.  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 "Financial Information" and "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.

Caution About Forward-Looking Statements

This press release contains "forward-looking statements," which may include forecasts of our financial results and condition, expectations for our operations and businesses, and our assumptions for those forecasts and expectations. Do not place undue reliance on forward-looking statements. Due to various factors, actual results may differ materially from our forward-looking statements. Factors that could cause our actual results to differ materially from our forward-looking statements are described under "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Risk Factors" and "Regulation and Supervision" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, and in other documents subsequently filed by the Company with the Securities and Exchange Commission, available at the SEC's website, http://www.sec.gov, and the Company's website, http://www.iberiabank.com. To the extent that statements in this press release relate to future plans, objectives, financial results or performance by the Company, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are generally identified by use of 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.

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.  Factors that could cause or contribute to such differences include, but are not limited to: the level of market volatility, our ability to execute our growth strategy, including the availability of future bank acquisition opportunities, our ability to execute on our revenue and efficiency improvement initiatives, unanticipated losses related to the completion and integration of mergers and acquisitions, refinements to purchase accounting adjustments for acquired businesses and assets and assumed liabilities in these transactions, adjustments of fair values of acquired assets and assumed liabilities and of deferred taxes in acquisitions, actual results deviating from the Company's current estimates and assumptions of timing and amounts of cash flows, credit risk of our customers, resolution of assets subject to loss share agreements with the FDIC within the coverage periods, effects of the on-going correction in residential real estate prices and  levels of home sales, our ability to satisfy new capital and liquidity standards such as those imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act and those adopted by the Basel Committee on Banking Supervision and federal banking regulators, sufficiency of our allowance for loan losses, changes in interest rates, access to funding sources, reliance on the services of executive management, competition for loans, deposits and investment dollars, competition from competitors with greater financial resources than the Company, reputational risk and social factors, changes in government regulations and legislation, increases in FDIC insurance assessments, geographic concentration of our markets, economic and business conditions in our markets or nationally, including the impact of volatility of oil and gas prices, rapid changes in the financial services industry, significant litigation, cyber-security risks including dependence on our operational, technological, and organizational systems and infrastructure and those of third party providers of those services, hurricanes and other adverse weather events, and valuation of intangible assets. All information in this discussion is as of the date of this press release. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.  

 

 

 

Table 1 - IBERIABANK CORPORATION

FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per share data)

                           
   

As of and For the Three Months Ended

INCOME DATA:

3/31/2016

 

12/31/2015

 

% Change

 

3/31/2015

% Change

 

Net interest income

$ 161,403

   

$ 161,160

   

0.2

 

$ 125,804

   

28.3

 

Net interest income (TE)(1)

163,764

   

163,544

   

0.1

 

127,844

   

28.1

 

Total revenues

217,248

   

213,663

   

1.7

 

174,703

   

24.4

 

Provision for loan losses

14,905

   

11,711

   

27.3

 

5,345

   

178.9

 

Non-interest expense

137,452

   

138,975

   

(1.1)

 

133,153

   

3.2

 

Net income available to common shareholders

40,193

   

44,407

   

(9.5)

 

25,126

   

60.0

                           

PER COMMON SHARE DATA:

                       
 

Earnings available to common shareholders - basic

$        0.98

   

$        1.08

   

(9.3)

 

$        0.75

   

30.7

 

Earnings available to common shareholders - diluted

0.97

   

1.08

   

(10.2)

 

0.75

   

29.3

 

Operating earnings (Non-GAAP) (2)

1.01

   

1.11

   

(9.0)

 

0.95

   

6.3

 

Book value

59.93

   

58.87

   

1.8

 

56.77

   

5.6

 

Tangible book value (3)

41.38

   

40.35

   

2.6

 

39.26

   

5.4

 

Closing stock price

51.27

   

55.07

   

(6.9)

 

63.03

   

(18.7)

 

Cash dividends

0.34

   

0.34

   

 

0.34

   

                           

KEY RATIOS AND OTHER DATA (6):

               
 

Net interest margin (TE)(1)

3.64

%

 

3.64

%

     

3.54

%

   
 

Efficiency ratio

63.3

   

65.0

       

76.2

     
 

Tangible operating efficiency ratio (TE) (Non-GAAP) (1) (2) (3)

60.3

   

61.1

       

68.5

     
 

Return on average assets

0.82

   

0.90

       

0.64

     
 

Return on average common equity

6.59

   

7.30

       

5.39

     
 

Return on average operating tangible common equity (Non-GAAP) (2)(3)

10.26

   

11.20

       

9.92

     
 

Effective tax rate

34.1

   

29.5

       

30.6

     
 

Full-time equivalent employees

3,112

   

3,151

       

2,883

     
                           

CAPITAL RATIOS:

                       
 

Tangible common equity ratio (Non-GAAP) (2) (3)

8.83

%

 

8.86

%

     

8.62

%

   
 

Tangible common equity to risk-weighted assets(3)

10.14

   

9.89

       

9.92

     
 

Tier 1 leverage ratio (4)

9.41

   

9.52

       

8.87

     
 

Common equity Tier 1 (CET 1) (transitional) (4)

10.11

   

10.07

       

9.79

     
 

Common equity Tier 1 (CET 1) (fully phased-in) (4)

10.02

   

9.94

       

9.66

     
 

Tier 1 capital (transitional) (4)

10.56

   

10.70

       

9.99

     
 

Total risk-based capital ratio (4)

12.21

   

12.14

       

11.62

     
 

Common stock dividend payout ratio

34.9

   

31.5

       

51.7

     
 

Classified assets to Tier 1 capital

28.4

   

17.7

       

17.6

     
                           

ASSET QUALITY RATIOS (LEGACY):

               
 

Non-performing assets to total assets(5)

0.65

%

 

0.42

%

     

0.55

%

   
 

Allowance for loan losses to loans

0.92

   

0.84

       

0.80

     
 

Net charge-offs to average loans (annualized)

0.15

   

0.09

       

0.06

     
 

Non-performing assets to total loans and OREO (5)

0.96

   

0.61

       

0.83

     
                           
   

(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)

See Table 9 and Table 10 for the GAAP to Non-GAAP reconciliations.

   

(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)

Capital ratios as of March 31, 2016 are estimated.

   

(5)

Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets.

   

(6)

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

 

 

Table 2 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except per share data)

                               
 

For the Three Months Ended

         

Linked Qtr Change

             

Year/Year Change

 

3/31/2016

 

12/31/2015

 

$

%

 

9/30/2015

 

6/30/2015

 

3/31/2015

 

$

%

Interest income

$     176,936

 

$       176,651

 

285

0.2

 

$     171,077

 

$     160,545

 

$     138,585

 

38,351

27.7

Interest expense

15,533

 

15,491

 

42

0.3

 

15,960

 

14,868

 

12,781

 

2,752

21.5

Net interest income

161,403

 

161,160

 

243

0.2

 

155,117

 

145,677

 

125,804

 

35,599

28.3

Provision for loan losses

14,905

 

11,711

 

3,194

27.3

 

5,062

 

8,790

 

5,345

 

9,560

178.9

Net interest income after provision for loan losses

146,498

 

149,449

 

(2,951)

(2.0)

 

150,055

 

136,887

 

120,459

 

26,039

21.6

Mortgage income

20,347

 

17,123

 

3,224

18.8

 

20,730

 

25,246

 

18,023

 

2,324

12.9

Service charges on deposit accounts

10,951

 

11,431

 

(480)

(4.2)

 

11,342

 

10,162

 

9,262

 

1,689

18.2

Title revenue

4,745

 

5,435

 

(690)

(12.7)

 

6,627

 

6,146

 

4,629

 

116

2.5

Broker commissions

3,823

 

4,130

 

(307)

(7.4)

 

3,839

 

5,461

 

4,162

 

(339)

(8.1)

ATM/debit card fee income

3,503

 

3,569

 

(66)

(1.8)

 

3,562

 

3,583

 

3,275

 

228

7.0

Income from bank owned life insurance

1,202

 

1,096

 

106

9.7

 

1,093

 

1,075

 

1,092

 

110

10.1

Gain on sale of available-for-sale securities

196

 

6

 

190

3,166.7

 

280

 

903

 

386

 

(190)

(49.2)

Other non-interest income

11,078

 

9,713

 

1,365

14.1

 

10,005

 

8,937

 

8,070

 

3,008

37.3

Total non-interest income

55,845

 

52,503

 

3,342

6.4

 

57,478

 

61,513

 

48,899

 

6,946

14.2

Salaries and employee benefits

80,742

 

83,455

 

(2,713)

(3.3)

 

82,416

 

84,019

 

72,696

 

8,046

11.1

Occupancy and equipment

16,907

 

16,928

 

(21)

(0.1)

 

17,987

 

17,366

 

16,260

 

647

4.0

Amortization of acquisition intangibles

2,113

 

1,795

 

318

17.7

 

2,338

 

2,155

 

1,523

 

590

38.7

Other non-interest expense

37,690

 

36,797

 

893

2.4

 

42,227

 

49,669

 

42,674

 

(4,984)

(11.7)

Total non-interest expense

137,452

 

138,975

 

(1,523)

(1.1)

 

144,968

 

153,209

 

133,153

 

4,299

3.2

Income before income taxes

64,891

 

62,977

 

1,914

3.0

 

62,565

 

45,191

 

36,205

 

28,686

79.2

Income tax expense

22,122

 

18,570

 

3,552

19.1

 

20,090

 

14,355

 

11,079

 

11,043

99.7

Net income

42,769

 

44,407

 

(1,638)

(3.7)

 

42,475

 

30,836

 

25,126

 

17,643

70.2

Preferred stock dividends

2,576

 

-

 

2,576

-

 

-

 

-

 

-

 

2,576

-

Net income available to common shareholders

$       40,193

 

$         44,407

 

(4,214)

(9.5)

 

$       42,475

 

$       30,836

 

$       25,126

 

15,067

60.0

                               

Income available to common shareholders - basic

$       40,193

 

$         44,407

 

(4,214)

(9.5)

 

$       42,475

 

$       30,836

 

$       25,126

 

15,067

60.0

Earnings allocated to unvested restricted stock

(460)

 

(505)

 

45

(8.9)

 

(492)

 

(355)

 

(344)

 

(116)

33.7

Income allocated to common shareholders

$       39,733

 

$         43,902

 

(4,169)

(9.5)

 

$       41,983

 

$       30,481

 

$       24,782

 

14,951

60.3

                               

Earnings per common share - basic

$           0.98

 

$             1.08

 

(0.10)

(9.3)

 

$           1.04

 

$           0.79

 

$           0.75

 

0.23

30.7

                               

Earnings per common share - diluted

0.97

 

1.08

 

(0.11)

(10.2)

 

1.03

 

0.79

 

0.75

 

0.22

29.3

Impact of non-operating items (Non-GAAP)(1)

0.04

 

0.03

 

0.01

33.3

 

0.04

 

0.26

 

0.20

 

(0.16)

(80.0)

Earnings per share - diluted, excluding non-operating items (Non-GAAP) (1)

$           1.01

 

$             1.11

 

(0.10)

(9.0)

 

$           1.07

 

$           1.05

 

$           0.95

 

0.06

6.3

                               

NUMBER OF COMMON SHARES OUTSTANDING (in thousands)

                             

Weighted average common shares outstanding - basic

41,186

 

40,996

 

190

0.5

 

40,995

 

39,015

 

33,659

 

7,527

22.4

Weighted average common shares outstanding - diluted

40,765

 

40,597

 

168

0.4

 

40,614

 

38,667

 

33,235

 

7,530

22.7

Book value shares (period end) 

41,232

 

41,140

 

92

0.2

 

41,129

 

41,117

 

38,178

 

3,054

8.0

                               

(1)  See Table 9 for GAAP to Non-GAAP reconciliation.

 

TABLE 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

                                   

PERIOD-END BALANCES

 

Linked Qtr Change

             

Year/Year Change

ASSETS

3/31/2016

 

12/31/2015

 

$

 

%

 

9/30/2015

 

6/30/2015

 

3/31/2015

 

$

 

%

Cash and due from banks

$     300,207

 

$     241,650

 

58,557

 

24.2

 

$     370,657

 

$     300,257

 

$     268,241

 

31,966

 

11.9

Interest-bearing deposits in other banks

696,448

 

268,617

 

427,831

 

159.3

 

311,615

 

591,018

 

696,000

 

448

 

0.1

Total cash and cash equivalents

996,655

 

510,267

 

486,388

 

95.3

 

682,272

 

891,275

 

964,241

 

32,414

 

3.4

Investment securities available for sale

2,755,425

 

2,800,286

 

(44,861)

 

(1.6)

 

2,827,805

 

2,413,158

 

2,342,613

 

412,812

 

17.6

Investment securities held to maturity

96,117

 

98,928

 

(2,811)

 

(2.8)

 

98,330

 

101,475

 

113,442

 

(17,325)

 

(15.3)

Total investment securities

2,851,542

 

2,899,214

 

(47,672)

 

(1.6)

 

2,926,135

 

2,514,633

 

2,456,055

 

395,487

 

16.1

Mortgage loans held for sale

192,545

 

166,247

 

26,298

 

15.8

 

202,168

 

220,765

 

215,044

 

(22,499)

 

(10.5)

Loans, net of unearned income

14,451,244

 

14,327,428

 

123,816

 

0.9

 

14,117,019

 

13,950,563

 

12,873,461

 

1,577,783

 

12.3

Allowance for loan losses

(146,557)

 

(138,378)

 

(8,179)

 

5.9

 

(130,254)

 

(128,149)

 

(128,313)

 

(18,244)

 

14.2

Loans, net

14,304,687

 

14,189,050

 

115,637

 

0.8

 

13,986,765

 

13,822,414

 

12,745,148

 

1,559,539

 

12.2

Loss share receivable

33,564

 

39,878

 

(6,314)

 

(15.8)

 

43,443

 

50,452

 

60,972

 

(27,408)

 

(45.0)

Premises and equipment

314,615

 

323,902

 

(9,287)

 

(2.9)

 

333,273

 

342,949

 

337,201

 

(22,586)

 

(6.7)

Goodwill and other intangibles

768,235

 

765,655

 

2,580

 

0.3

 

766,589

 

765,813

 

672,337

 

95,898

 

14.3

Other assets

630,720

 

609,855

 

20,865

 

3.4

 

593,580

 

630,627

 

600,764

 

29,956

 

5.0

Total assets

$ 20,092,563

 

$ 19,504,068

 

588,495

 

3.0

 

$ 19,534,225

 

$ 19,238,928

 

$ 18,051,762

 

2,040,801

 

11.3

                                   

LIABILITIES AND SHAREHOLDERS' EQUITY

                       

Non-interest-bearing deposits

$  4,484,024

 

$  4,352,229

 

131,795

 

3.0

 

$  4,392,808

 

$  4,166,850

 

$  3,860,820

 

623,204

 

16.1

NOW accounts

2,960,562

 

2,974,176

 

(13,614)

 

(0.5)

 

2,635,021

 

2,623,697

 

2,729,791

 

230,771

 

8.5

Savings and money market accounts

6,736,146

 

6,727,720

 

8,426

 

0.1

 

6,999,863

 

6,925,038

 

5,796,443

 

939,703

 

16.2

Certificates of deposit

2,079,834

 

2,124,623

 

(44,789)

 

(2.1)

 

2,275,373

 

2,403,956

 

2,277,970

 

(198,136)

 

(8.7)

Total deposits

16,260,566

 

16,178,748

 

81,818

 

0.5

 

16,303,065

 

16,119,541

 

14,665,024

 

1,595,542

 

10.9

Short-term borrowings

195,000

 

110,000

 

85,000

 

77.3

 

10,000

 

59,300

 

352,300

 

(157,300)

 

(44.6)

Securities sold under agreements to repurchase

303,238

 

216,617

 

86,621

 

40.0

 

212,460

 

209,004

 

252,602

 

50,636

 

20.0

Trust preferred securities

120,110

 

120,110

 

 

 

120,110

 

120,110

 

111,862

 

8,248

 

7.4

Other long-term debt

478,814

 

220,337

 

258,477

 

117.3

 

221,863

 

222,202

 

349,027

 

129,787

 

37.2

Other liabilities

186,926

 

159,421

 

27,505

 

17.3

 

183,526

 

143,487

 

153,617

 

33,309

 

21.7

Total liabilities

17,544,654

 

17,005,233

 

539,421

 

3.2

 

17,051,024

 

16,873,644

 

15,884,432

 

1,660,222

 

10.5

Total shareholders' equity

2,547,909

 

2,498,835

 

49,074

 

2.0

 

2,483,201

 

2,365,284

 

2,167,330

 

380,579

 

17.6

Total liabilities and shareholders' equity

$ 20,092,563

 

$ 19,504,068

 

588,495

 

3.0

 

$ 19,534,225

 

$ 19,238,928

 

$ 18,051,762

 

2,040,801

 

11.3

                                   

 

TABLE 3 Continued - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

                                   

AVERAGE BALANCES

 

Linked Qtr Change

             

Year/Year Change

ASSETS

3/31/2016

 

12/31/2015

 

$

 

%

 

9/30/2015

 

6/30/2015

 

3/31/2015

 

$

 

%

Cash and due from banks

$     292,476

 

$     352,854

 

(60,378)

 

(17.1)

 

$     327,370

 

$     263,844

 

$     243,566

 

48,910

 

20.1

Interest-bearing deposits in other banks

365,709

 

319,302

 

46,407

 

14.5

 

682,764

 

582,032

 

324,150

 

41,559

 

12.8

Total cash and cash equivalents

658,185

 

672,156

 

(13,971)

 

(2.1)

 

1,010,134

 

845,876

 

567,716

 

90,469

 

15.9

Investment securities available for sale

2,797,320

 

2,829,825

 

(32,505)

 

(1.1)

 

2,660,423

 

2,417,002

 

2,223,344

 

573,976

 

25.8

Investment securities held to maturity

97,391

 

100,113

 

(2,722)

 

(2.7)

 

99,864

 

106,871

 

115,188

 

(17,797)

 

(15.5)

Total investment securities

2,894,711

 

2,929,938

 

(35,227)

 

(1.2)

 

2,760,287

 

2,523,873

 

2,338,532

 

556,179

 

23.8

Mortgage loans held for sale

160,873

 

169,616

 

(8,743)

 

(5.2)

 

200,895

 

202,691

 

133,304

 

27,569

 

20.7

Loans, net of unearned income

14,354,410

 

14,185,150

 

169,260

 

1.2

 

14,009,601

 

13,297,724

 

11,563,946

 

2,790,464

 

24.1

Allowance for loan losses

(141,393)

 

(135,209)

 

(6,184)

 

4.6

 

(130,367)

 

(129,069)

 

(128,519)

 

(12,874)

 

10.0

Loans, net

14,213,017

 

14,049,941

 

163,076

 

1.2

 

13,879,234

 

13,168,655

 

11,435,427

 

2,777,590

 

24.3

Loss share receivable

37,360

 

41,205

 

(3,845)

 

(9.3)

 

47,190

 

55,751

 

66,165

 

(28,805)

 

(43.5)

Premises and equipment

322,086

 

329,604

 

(7,518)

 

(2.3)

 

339,860

 

341,829

 

311,158

 

10,928

 

3.5

Goodwill and other intangibles

765,898

 

766,664

 

(766)

 

(0.1)

 

766,712

 

708,085

 

555,565

 

210,333

 

37.9

Other assets

609,181

 

592,042

 

17,139

 

2.9

 

599,758

 

598,526

 

549,746

 

59,435

 

10.8

Total assets

$ 19,661,311

 

$ 19,551,166

 

110,145

 

0.6

 

$ 19,604,070

 

$ 18,445,286

 

$ 15,957,613

 

3,703,698

 

23.2

                                   

LIABILITIES AND SHAREHOLDERS' EQUITY

                       

Non-interest-bearing deposits

$  4,388,259

 

$  4,459,980

 

(71,721)

 

(1.6)

 

$  4,265,912

 

$  3,933,468

 

$  3,312,357

 

1,075,902

 

32.5

NOW accounts

2,859,940

 

2,720,128

 

139,812

 

5.1

 

2,655,069

 

2,639,140

 

2,464,760

 

395,180

 

16.0

Savings and money market accounts

6,598,838

 

6,899,090

 

(300,252)

 

(4.4)

 

7,104,789

 

6,228,052

 

4,834,244

 

1,764,594

 

36.5

Certificates of deposit

2,098,032

 

2,213,557

 

(115,525)

 

(5.2)

 

2,343,794

 

2,331,537

 

2,150,447

 

(52,415)

 

(2.4)

Total deposits

15,945,069

 

16,292,755

 

(347,686)

 

(2.1)

 

16,369,564

 

15,132,197

 

12,761,808

 

3,183,261

 

24.9

Short-term borrowings

277,374

 

16,109

 

261,265

 

1,621.9

 

41,033

 

225,437

 

483,413

 

(206,039)

 

(42.6)

Securities sold under agreements to repurchase

217,296

 

224,255

 

(6,959)

 

(3.1)

 

221,217

 

236,305

 

263,645

 

(46,349)

 

(17.6)

Trust preferred securities

120,110

 

120,110

 

-

 

-

 

120,110

 

114,581

 

111,862

 

8,248

 

7.4

Other long-term debt

403,393

 

220,913

 

182,480

 

82.6

 

222,906

 

332,167

 

311,633

 

91,760

 

29.4

Other liabilities

167,810

 

186,382

 

(18,572)

 

(10.0)

 

206,030

 

172,473

 

135,477

 

32,333

 

23.9

Total liabilities

17,131,052

 

17,060,524

 

70,528

 

0.4

 

17,180,860

 

16,213,160

 

14,067,838

 

3,063,214

 

21.8

Total shareholders' equity

2,530,259

 

2,490,642

 

39,617

 

1.6

 

2,423,210

 

2,232,126

 

1,889,775

 

640,484

 

33.9

Total liabilities and shareholders' equity

$ 19,661,311

 

$ 19,551,166

 

110,145

 

0.6

 

$ 19,604,070

 

$ 18,445,286

 

$ 15,957,613

 

3,703,698

 

23.2

 

 

Table 4 - IBERIABANK CORPORATION

TOTAL LOANS AND ASSET QUALITY DATA

(Dollars in thousands)

                           
         

Linked Qtr Change

             

Year/Year Change

LOANS

3/31/2016

 

12/31/2015

 

$

 

%

 

9/30/2015

 

6/30/2015

 

3/31/2015

 

$

 

%

Commercial loans:

                                 

Real estate

$   6,230,628

 

$   6,073,511

 

157,117

 

2.6

 

$   5,979,751

 

$   5,853,751

 

$   5,122,946

 

1,107,682

 

21.6

Commercial and Industrial

3,374,382

 

3,444,578

 

(70,196)

 

(2.0)

 

3,302,971

 

3,216,906

 

2,967,306

 

407,076

 

13.7

Energy-related (Real Estate and Commercial and Industrial)(1)

731,662

 

680,766

 

50,896

 

7.5

 

719,456

 

787,568

 

819,411

 

(87,749)

 

(10.7)

Total commercial loans

10,336,672

 

10,198,855

 

137,817

 

1.4

 

10,002,178

 

9,858,225

 

8,909,663

 

1,427,009

 

16.0

                                   

Residential mortgage loans

1,208,391

 

1,195,319

 

13,072

 

1.1

 

1,189,941

 

1,169,608

 

1,164,286

 

44,105

 

3.8

                                   

Consumer loans:

                                 

Home equity

2,091,514

 

2,066,167

 

25,347

 

1.2

 

2,015,687

 

1,971,073

 

1,858,088

 

233,426

 

12.6

Indirect automobile

213,179

 

246,298

 

(33,119)

 

(13.4)

 

281,649

 

322,958

 

367,349

 

(154,170)

 

(42.0)

Automobile

164,868

 

169,571

 

(4,703)

 

(2.8)

 

172,947

 

173,924

 

160,518

 

4,350

 

2.7

Credit card

76,756

 

77,843

 

(1,087)

 

(1.4)

 

77,284

 

74,314

 

72,711

 

4,045

 

5.6

Other

359,864

 

373,375

 

(13,511)

 

(3.6)

 

377,333

 

380,461

 

340,846

 

19,018

 

5.6

Total consumer loans

2,906,181

 

2,933,254

 

(27,073)

 

(0.9)

 

2,924,900

 

2,922,730

 

2,799,512

 

106,669

 

3.8

Total loans

$ 14,451,244

 

$ 14,327,428

 

123,816

 

0.9

 

$ 14,117,019

 

$ 13,950,563

 

$ 12,873,461

 

1,577,783

 

12.3

                                   

Allowance for loan losses

$    (146,557)

 

$    (138,378)

 

(8,179)

 

5.9

 

$    (130,254)

 

$    (128,149)

 

$    (128,313)

 

(18,244)

 

14.2

Loans, net

14,304,687

 

14,189,050

 

115,637

 

0.8

 

13,986,765

 

13,822,414

 

12,745,148

 

1,559,539

 

12.2

                                   

Reserve for unfunded commitments

(14,033)

 

(14,145)

 

112

 

(0.8)

 

(14,525)

 

(13,244)

 

(12,849)

 

(1,184)

 

9.2

Allowance for credit losses

(160,590)

 

(152,523)

 

(8,067)

 

5.3

 

(144,779)

 

(141,393)

 

(141,162)

 

(19,428)

 

13.8

                                   

ASSET QUALITY DATA (2)

                         

Non-accrual loans

$      182,757

 

$      154,425

 

28,332

 

18.3

 

$      165,022

 

$      192,385

 

$      195,371

 

(12,614)

 

(6.5)

Other real estate owned and foreclosed assets

31,411

 

34,131

 

(2,720)

 

(8.0)

 

40,450

 

49,929

 

53,194

 

(21,783)

 

(41.0)

Accruing loans more than 90 days past due

1,068

 

1,970

 

(902)

 

(45.8)

 

2,994

 

4,607

 

5,642

 

(4,574)

 

(81.1)

Total non-performing assets

$      215,236

 

$      190,526

 

24,710

 

13.0

 

$      208,466

 

$      246,921

 

$      254,207

 

(38,971)

 

(15.3)

                                   
                                   

Loans 30-89 days past due

$        59,074

 

$        35,579

 

23,495

 

66.0

 

$        25,306

 

$        39,005

 

$        32,835

 

26,239

 

79.9

                                   

Non-performing assets to total assets

1.07 %

 

0.98 %

         

1.07 %

 

1.28 %

 

1.41 %

     

Non-performing assets to total loans and OREO

1.49

 

1.33

         

1.47

 

1.76

 

1.97

       

Allowance for loan losses to non-performing loans (3)

79.7

 

88.5

         

77.5

 

65.1

 

63.8

       

Allowance for loan losses to non-performing assets

68.1

 

72.6

         

62.5

 

51.9

 

50.5

       

Allowance for loan losses to total loans

1.01

 

0.97

         

0.92

 

0.92

 

1.00

       
                                   

Quarter-to-date charge-offs

$          5,560

 

$          4,277

 

1,283

 

30.0

 

$          5,245

 

$          4,808

 

$          2,972

 

2,588

 

87.1

Quarter-to-date recoveries

(1,551)

 

(1,358)

 

(193)

 

14.2

 

(2,790)

 

(1,034)

 

(1,237)

 

(314)

 

25.4

Quarter-to-date net charge-offs

$          4,009

 

$          2,919

 

1,090

 

37.3

 

$          2,455

 

$          3,774

 

$          1,735

 

2,274

 

131.1

                                   

Net charge-offs to average loans (annualized)

0.11 %

 

0.08 %

         

0.07 %

 

0.11 %

 

0.06 %

     
                                   
 

(1)

For purposes of this table, energy-related loans generally include loans with specific NAICS codes that relate to the Oil and Gas E&P, Services or Midstream industries.

   

(2)

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

   

(3)

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

 

 

Table 5 - IBERIABANK CORPORATION

LEGACY LOANS AND LEGACY ASSET QUALITY DATA

(Dollars in thousands)

                                   
         

Linked Qtr Change

             

Year/Year Change

LEGACY LOANS

3/31/2016

 

12/31/2015

 

$

 

%

 

9/30/2015

 

6/30/2015

 

3/31/2015

 

$

 

%

Commercial loans:

                                 

Real estate

$   4,771,690

 

$   4,504,062

 

267,628

 

5.9

 

$   4,321,723

 

$   4,105,592

 

$ 3,845,551

 

926,139

 

24.1

Commercial and Industrial

2,926,686

 

2,952,102

 

(25,416)

 

(0.9)

 

2,779,503

 

2,650,799

 

2,496,258

 

430,428

 

17.2

Energy-related (Real Estate and Commercial and Industrial) (1)

728,778

 

677,177

 

51,601

 

7.6

 

713,935

 

782,312

 

815,281

 

(86,503)

 

(10.6)

Total commercial loans

8,427,154

 

8,133,341

 

293,813

 

3.6

 

7,815,161

 

7,538,703

 

7,157,090

 

1,270,064

 

17.7

                                   

Residential mortgage loans

730,621

 

694,023

 

36,598

 

5.3

 

660,543

 

616,497

 

553,815

 

176,806

 

31.9

                                   

Consumer loans:

                                 

Home equity

1,625,812

 

1,575,643

 

50,169

 

3.2

 

1,488,796

 

1,399,005

 

1,335,390

 

290,422

 

21.7

Indirect automobile

213,141

 

246,214

 

(33,073)

 

(13.4)

 

281,522

 

322,767

 

367,077

 

(153,936)

 

(41.9)

Automobile

153,732

 

157,579

 

(3,847)

 

(2.4)

 

159,928

 

159,778

 

145,084

 

8,648

 

6.0

Credit card

76,247

 

77,261

 

(1,014)

 

(1.3)

 

76,716

 

73,726

 

72,164

 

4,083

 

5.7

Other

301,990

 

306,459

 

(4,469)

 

(1.5)

 

296,592

 

285,077

 

264,249

 

37,741

 

14.3

Total consumer loans

2,370,922

 

2,363,156

 

7,766

 

0.3

 

2,303,554

 

2,240,353

 

2,183,964

 

186,958

 

8.6

Total loans

$ 11,528,697

 

$ 11,190,520

 

338,177

 

3.0

 

$ 10,779,258

 

$ 10,395,553

 

$ 9,894,869

 

1,633,828

 

16.5

                                   

Allowance for loan losses

$    (105,574)

 

$      (93,808)

 

(11,766)

 

12.5

 

$      (86,400)

 

$      (83,723)

 

$    (78,773)

 

(26,801)

 

34.0

Loans, net

11,423,123

 

11,096,712

 

326,411

 

2.9

 

10,692,858

 

10,311,830

 

9,816,096

 

1,607,027

 

16.4

                                   

Reserve for unfunded commitments

(14,033)

 

(14,145)

 

112

 

(0.8)

 

(14,525)

 

(13,244)

 

(12,849)

 

(1,184)

 

9.2

Allowance for credit losses

(119,607)

 

(107,953)

 

(11,654)

 

10.8

 

(100,925)

 

(96,967)

 

(91,622)

 

(27,985)

 

30.5

                                   

ASSET QUALITY DATA (2)

                           

Non-accrual loans

$        93,429

 

$        50,928

 

42,501

 

83.5

 

$        51,274

 

$        62,739

 

$      60,064

 

33,365

 

55.5

Other real estate owned and foreclosed assets

17,662

 

16,491

 

1,171

 

7.1

 

17,062

 

20,028

 

21,654

 

(3,992)

 

(18.4)

Accruing loans more than 90 days past due

125

 

624

 

(499)

 

(80.0)

 

1,521

 

3,584

 

239

 

(114)

 

(47.7)

Total non-performing assets

$      111,216

 

$        68,043

 

43,173

 

63.4

 

$        69,857

 

$        86,351

 

$      81,957

 

29,259

 

35.7

                                   

Loans 30-89 days past due

$        42,454

 

$        20,109

 

22,345

 

111.1

 

$        15,718

 

$        14,985

 

$      17,606

 

24,848

 

141.1

                                   

Non-performing assets to total assets

0.65 %

 

0.42 %

         

0.43 %

 

0.55 %

 

0.55 %

       

Non-performing assets to total loans and OREO

0.96

 

0.61

         

0.65

 

0.83

 

0.83

       

Allowance for loan losses to non-performing loans (3)

112.9

 

182.0

         

163.7

 

126.2

 

130.6

       

Allowance for loan losses to non-performing assets

94.9

 

137.9

         

123.7

 

97.0

 

96.1

       

Allowance for loan losses to total loans

0.92

 

0.84

         

0.80

 

0.81

 

0.80

       
                                   

Quarter-to-date charge-offs

$          5,389

 

$          3,705

 

1,684

 

45.5

 

$          4,958

 

$          4,446

 

$        2,669

 

2,720

 

101.9

Quarter-to-date recoveries

(1,247)

 

(1,145)

 

(102)

 

8.9

 

(2,524)

 

(941)

 

(1,091)

 

(156)

 

14.3

Quarter-to-date net charge-offs

$          4,142

 

$          2,560

 

1,582

 

61.8

 

$          2,434

 

$          3,505

 

$        1,578

 

2,564

 

162.5

Net charge-offs to average loans (annualized)

0.15 %

 

0.09 %

         

0.09 %

 

0.14 %

 

0.06 %

       
                                   
 

(1)

For purposes of this table, energy-related loans generally include loans with specific NAICS codes that relate to the Oil and Gas E&P, Services or Midstream industries.

   

(2)

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

   

(3)

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

 

 

Table 6 - IBERIABANK CORPORATION

ACQUIRED LOANS AND ACQUIRED ASSET QUALITY DATA

(Dollars in thousands)

                                   
         

Linked Qtr Change

             

Year/Year Change

ACQUIRED LOANS(1)

3/31/2016

 

12/31/2015

 

$

 

%

 

9/30/2015

 

6/30/2015

 

3/31/2015

 

$

 

%

Commercial loans:

                                 

Real estate

$ 1,458,938

 

$  1,569,449

 

(110,511)

 

(7.0)

 

$ 1,658,028

 

$ 1,748,159

 

$ 1,277,395

 

181,543

 

14.2

Commercial and Industrial

447,696

 

492,476

 

(44,780)

 

(9.1)

 

523,468

 

566,107

 

471,048

 

(23,352)

 

(5.0)

Energy-related (Real Estate and Commercial and Industrial) (2)

2,884

 

3,589

 

(705)

 

(19.6)

 

5,521

 

5,256

 

4,130

 

(1,246)

 

(30.2)

Total commercial loans

1,909,518

 

2,065,514

 

(155,996)

 

(7.6)

 

2,187,017

 

2,319,522

 

1,752,573

 

156,945

 

9.0

                                   

Residential mortgage loans

477,770

 

501,296

 

(23,526)

 

(4.7)

 

529,398

 

553,111

 

610,471

 

(132,701)

 

(21.7)

                                   

Consumer loans:

                                 

Home equity

465,702

 

490,524

 

(24,822)

 

(5.1)

 

526,891

 

572,068

 

522,698

 

(56,996)

 

(10.9)

Indirect automobile

38

 

84

 

(46)

 

(54.8)

 

127

 

191

 

272

 

(234)

 

(86.0)

Automobile

11,136

 

11,992

 

(856)

 

(7.1)

 

13,019

 

14,146

 

15,434

 

(4,298)

 

(27.8)

Credit card

509

 

582

 

(73)

 

(12.5)

 

568

 

588

 

547

 

(38)

 

(6.9)

Other

57,874

 

66,916

 

(9,042)

 

(13.5)

 

80,741

 

95,384

 

76,597

 

(18,723)

 

(24.4)

Total consumer loans

535,259

 

570,098

 

(34,839)

 

(6.1)

 

621,346

 

682,377

 

615,548

 

(80,289)

 

(13.0)

                Total loans

$ 2,922,547

 

$  3,136,908

 

(214,361)

 

(6.8)

 

$ 3,337,761

 

$ 3,555,010

 

$ 2,978,592

 

(56,045)

 

(1.9)

                                   

Allowance for loan losses

$    (40,983)

 

$    (44,570)

 

3,587

 

(8.0)

 

$   (43,854)

 

$   (44,426)

 

$   (49,540)

 

8,557

 

(17.3)

Loans, net

2,881,564

 

3,092,338

 

(210,774)

 

(6.8)

 

3,293,907

 

3,510,584

 

2,929,052

 

(47,488)

 

(1.6)

                                   

ACQUIRED ASSET QUALITY DATA (1)

                               

Non-accrual loans

$      89,328

 

$     103,497

 

(14,169)

 

(13.7)

 

$    113,748

 

$    129,646

 

$    135,307

 

(45,979)

 

(34.0)

Other real estate owned and foreclosed assets

13,749

 

17,640

 

(3,891)

 

(22.1)

 

23,388

 

29,901

 

31,540

 

(17,791)

 

(56.4)

Accruing loans more than 90 days past due

943

 

1,346

 

(403)

 

(29.9)

 

1,473

 

1,023

 

5,403

 

(4,460)

 

(82.5)

Total non-performing assets

$    104,020

 

$     122,483

 

(18,463)

 

(15.1)

 

$    138,609

 

$    160,570

 

$    172,250

 

(68,230)

 

(39.6)

                                   

Loans 30-89 days past due

$      16,620

 

$       15,470

 

1,150

 

7.4

 

$        9,588

 

$      24,020

 

$      15,229

 

1,391

 

9.1

                                   

Non-performing assets to total assets

3.50 %

 

3.84 %

         

4.07 %

 

4.42 %

 

5.64 %

       

Non-performing assets to total loans and OREO

3.54

 

3.88

         

4.12

 

4.48

 

5.72

       

Allowance for loan losses to non-performing loans (3)

45.4

 

42.5

         

38.1

 

34.0

 

35.2

       

Allowance for loan losses to non-performing assets

39.4

 

36.4

         

31.6

 

27.7

 

28.8

       

Allowance for loan losses to total loans

1.40

 

1.42

         

1.31

 

1.25

 

1.66

       
                                   

Quarter-to-date charge-offs

$          171

 

$           572

 

(401)

 

(70.1)

 

$          287

 

$          362

 

$          303

 

(132)

 

(43.6)

Quarter-to-date recoveries

(304)

 

(213)

 

(91)

 

42.7

 

(266)

 

(93)

 

(146)

 

(158)

 

108.2

Quarter-to-date net charge-offs/(recoveries)

(133)

 

$           359

 

(492)

 

(137.0)

 

$            21

 

$          269

 

$          157

 

(290)

 

(184.7)

                                   

Net charge-offs/(recoveries) to average loans (annualized)

(0.02)%

 

0.04%

         

0.00%

 

0.03 %

 

0.03 %

       
                                   
 

(1)

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

   

(2)

For purposes of this table, energy-related loans generally include loans with specific NAICS codes that relate to the Oil and Gas E&P, Services or Midstream industries.

   

(3)

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

 

 

TABLE 7 - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)

                   
 

For the Three Months Ended

   
 

3/31/2016

 

12/31/2015

 

Basis Point Change

ASSETS

Average Balance

Interest Income/Expense

Yield/Rate

 

Average Balance

Interest Income/Expense

Yield/Rate

 

Yield/Rate

Earning assets:

                 

Commercial loans (TE) (1)

$         10,250,555

$             113,417

4.43 %

 

$         10,062,680

$             114,153

4.50 %

 

(7)

Residential mortgage loans

1,202,692

13,429

4.47

 

1,193,488

12,819

4.30

 

17

Consumer loans

2,901,163

37,145

5.15

 

2,928,982

36,553

4.95

 

20

Total loans (TE) (1)

14,354,410

163,991

4.58

 

14,185,150

163,525

4.57

 

1

Loss share receivable

37,360

(4,386)

(46.44)

 

41,205

(4,490)

(42.63)

 

(381)

Total loans and loss share receivable

14,391,770

159,605

4.45

 

14,226,355

159,035

4.44

 

1

Mortgage loans held for sale

160,873

1,401

3.48

 

169,616

1,422

3.35

 

13

Investment securities (2)

2,866,974

15,212

2.25

 

2,901,388

15,149

2.21

 

4

Other earning assets

453,737

718

0.64

 

390,571

1,045

1.06

 

(42)

Total earning assets

17,873,354

176,936

3.99

 

17,687,930

176,651

3.99

 

Allowance for loan losses

(141,393)

     

(135,209)

       

Non-earning assets

1,929,350

     

1,998,445

       

Total assets

$         19,661,311

     

$         19,551,166

       
                   

LIABILITIES AND SHAREHOLDERS' EQUITY

           

Interest-bearing liabilities:

                 

NOW accounts

$           2,859,940

1,940

0.27

 

$           2,720,128

1,861

0.27

 

Savings and money market accounts

6,598,838

5,640

0.34

 

6,899,090

6,172

0.35

 

(1)

Certificates of deposit

2,098,032

4,354

0.83

 

2,213,557

4,727

0.85

 

(2)

Total interest-bearing deposits(3)

11,556,810

11,934

0.42

 

11,832,775

12,760

0.43

 

(1)

Short-term borrowings

494,670

485

0.39

 

240,365

98

0.16

 

23

Long-term debt

523,503

3,114

2.35

 

341,022

2,633

3.02

 

(67)

Total interest-bearing liabilities

12,574,983

15,533

0.49

 

12,414,162

15,491

0.49

 

Non-interest-bearing deposits

4,388,259

     

4,459,980

       

Non-interest-bearing liabilities

167,810

     

186,382

       

Total liabilities

17,131,052

     

17,060,524

       

Total shareholders' equity

2,530,259

     

2,490,642

       

Total liabilities and shareholders' equity

$         19,661,311

     

$         19,551,166

       
                   

Net interest income/Net interest spread

 

$             161,403

3.50 %

   

$             161,160

3.50 %

 

Tax-equivalent benefit

 

2,361

0.05

   

2,384

0.05

 

Net interest income (TE)/Net interest margin (TE) (1)

 

$             163,764

3.64 %

   

$             163,544

3.64 %

 

                   
 

(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 the impact of trade date accounting.

   

(3)

Total deposit costs for the three months ended March 31, 2016 and December 31, 2015 total 0.30% and 0.31%, respectively.

 

 

TABLE 7 Continued - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)

                       
 

For the Three Months Ended

 

9/30/2015

 

6/30/2015

3/31/2015

ASSETS

Average Balance

Interest Income/Expense

Yield/Rate

 

Average Balance

Interest Income/Expense

Yield/Rate

 

Average Balance

Interest Income/Expense

Yield/Rate

Earning assets:

                     

Commercial loans (TE) (1)

$      9,915,593

$       110,282

4.41 %

 

$           9,277,141

$            103,272

4.46 %

 

$           7,882,782

$              83,645

4.31 %

Residential mortgage loans

1,180,725

13,156

4.46

 

1,187,166

14,379

4.84

 

1,099,518

13,594

4.95

Consumer loans

2,913,283

36,477

4.97

 

2,833,417

35,684

5.05

 

2,581,646

32,952

5.18

Total loans (TE) (1)

14,009,601

159,915

4.53

 

13,297,724

153,335

4.62

 

11,563,946

130,191

4.56

Loss share receivable

47,190

(5,600)

(46.43)

 

55,751

(7,398)

(52.50)

 

66,165

(6,013)

(36.35)

Total loans and loss share receivable

14,056,791

154,315

4.36

 

13,353,475

145,937

4.38

 

11,630,111

124,178

4.32

Mortgage loans held for sale

200,895

1,847

3.68

 

202,691

1,380

2.72

 

133,304

1,515

4.55

Investment securities (2)

2,697,617

13,729

2.16

 

2,469,050

12,191

2.08

 

2,307,525

12,097

2.22

Other earning assets

756,277

1,186

0.62

 

663,071

1,037

0.63

 

402,499

795

0.80

Total earning assets

17,711,580

171,077

3.86

 

16,688,287

160,545

3.87

 

14,473,439

138,585

3.90

Allowance for loan losses

(130,367)

     

(129,069)

     

(128,519)

   

Non-earning assets

2,022,857

     

1,886,068

     

1,612,693

   

Total assets

$    19,604,070

     

$         18,445,286

     

$         15,957,613

   
                       

LIABILITIES AND SHAREHOLDERS' EQUITY

                     

Interest-bearing liabilities:

                     

NOW accounts

$      2,655,069

1,725

0.26

 

$           2,639,140

1,765

0.27

 

$           2,464,760

1,552

0.26

Savings and money market accounts

7,104,789

6,459

0.36

 

6,228,052

5,058

0.33

 

4,834,244

3,375

0.28

Certificates of deposit

2,343,794

5,040

0.85

 

2,331,537

4,959

0.85

 

2,150,447

4,411

0.83

Total interest-bearing deposits(3)

12,103,652

13,224

0.43

 

11,198,729

11,782

0.42

 

9,449,451

9,338

0.40

Short-term borrowings

262,250

116

0.17

 

461,742

220

0.19

 

747,058

363

0.19

Long-term debt

343,016

2,620

2.99

 

446,748

2,866

2.54

 

423,495

3,080

2.91

Total interest-bearing liabilities

12,708,918

15,960

0.50

 

12,107,219

14,868

0.49

 

10,620,004

12,781

0.49

Non-interest-bearing deposits

4,265,912

     

3,933,468

     

3,312,357

   

Non-interest-bearing liabilities

206,030

     

172,473

     

135,477

   

Total liabilities

17,180,860

     

16,213,160

     

14,067,838

   

Total shareholders' equity

2,423,210

     

2,232,126

     

1,889,775

   
 

$    19,604,070

     

$         18,445,286

     

$         15,957,613

   
                       

Net interest income/Net interest spread

 

$       155,117

3.36 %

   

$            145,677

3.38 %

   

$            125,804

3.41 %

Tax-equivalent benefit

 

2,185

0.05

   

1,996

0.05

   

2,040

0.06

Net interest income (TE)/Net interest margin (TE) (1)

 

$       157,302

3.50 %

   

$            147,673

3.52 %

   

$            127,844

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 the impact of trade date accounting.

   

(3)

Total deposit costs for the three months ended September 30, 2015, June 30, 2015, and March 31, 2015 total 0.32%, 0.31% and 0.30%, respectively.

 

Table 8 - IBERIABANK CORPORATION

LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS

(Dollars in millions)

                                       
 

For the Three Months Ended

 

3/31/2016

 

12/31/2015

 

9/30/2015

 

6/30/2015

 

3/31/2015

AS REPORTED (US GAAP)

Income

Average Balance

Yield

 

Income

Average Balance

Yield

 

Income

Average Balance

Yield

 

Income

Average Balance

Yield

 

Income

Average Balance

Yield

Legacy loans, net

$   115

$ 11,319

4.02 %

 

$   109

$ 10,949

3.92 %

 

$   105

$ 10,571

3.90 %

 

$                      99

$ 10,147

3.88 %

 

$     94

$   9,734

3.90 %

Acquired loans (1)

45

3,073

5.84

 

50

3,277

5.97

 

49

3,486

5.59

 

47

3,206

5.82

 

30

1,896

6.34

Total loans

$   160

$ 14,392

4.46 %

 

$   159

$ 14,226

4.44 %

 

$   154

$ 14,057

4.36 %

 

$                    146

$ 13,353

4.38 %

 

$   124

$ 11,630

4.32 %

                                       
 

3/31/2016

 

12/31/2015

 

9/30/2015

 

6/30/2015

 

3/31/2015

ADJUSTMENTS

Income

Average Balance

Yield

 

Income

Average Balance

Yield

 

Income

Average Balance

Yield

 

Income

Average Balance

Yield

 

Income

Average Balance

Yield

Legacy loans, net

$     —

$        —

—%

 

$     —

$        —

—%

 

$     —

$        —

—%

 

$                      —

$        —

—%

 

$     —

$        —

—%

Acquired loans (1)

(7)

86

(1.04)

 

(11)

87

(1.41)

 

(8)

92

(0.90)

 

(9)

85

(1.23)

 

(9)

67

(2.00)

Total loans

$      (7)

$        86

(0.21)%

 

$    (11)

$        87

(0.33)%

 

$      (8)

$        92

(0.24)%

 

$                       (9)

$        85

(0.30)%

 

$      (9)

$        67

(0.33)%

                                       
 

3/31/2016

 

12/31/2015

 

9/30/2015

 

6/30/2015

 

3/31/2015

AS ADJUSTED (CASH YIELD, NON-GAAP)

Income

Average Balance

Yield

 

Income

Average Balance

Yield

 

Income

Average Balance

Yield

 

Income

Average Balance

Yield

 

Income

Average Balance

Yield

Legacy loans, net

$   115

$ 11,319

4.02 %

 

$   109

$ 10,949

3.92 %

 

$   105

$ 10,571

3.90 %

 

$                      99

$ 10,147

3.88 %

 

$     94

$   9,734

3.90 %

Acquired loans (1)

38

3,159

4.80

 

39

3,364

4.56

 

41

3,578

4.69

 

38

3,291

4.58

 

21

1,963

4.28

Total loans

$   153

$ 14,478

4.25 %

 

$   148

$ 14,313

4.11 %

 

$   146

$ 14,149

4.12 %

 

$                    137

$ 13,438

4.08 %

 

$   115

$ 11,697

3.99 %

                                       

(1) Acquired loans include the impact of the FDIC Indemnification Asset.

                         

 

 

Table 9 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)

                                   
 

For the Three Months Ended

 

3/31/2016

 

12/31/2015

 

9/30/2015

 

Pre-tax

 

After-tax (1)

 

Per share (2)

 

Pre-tax

 

After-tax (1)

 

Per share (2)

 

Pre-tax

 

After-tax (1)

 

Per share (2)

Net income available to common shareholders (GAAP)

$ 64,891

 

$     40,193

 

$          0.97

 

$ 62,977

 

$     44,407

 

$          1.08

 

$ 62,565

 

$     42,475

 

$          1.03

                                   

Non-interest income adjustments:

                                 

Gain on sale of investments and other non-interest income

(196)

 

(127)

 

-

 

(157)

 

(102)

 

-

 

(2,221)

 

(1,444)

 

(0.04)

                                   

Non-interest expense adjustments:

                                 

Merger-related expenses

3

 

2

 

-

 

(166)

 

(108)

 

-

 

2,212

 

1,438

 

0.04

Severance expenses

454

 

295

 

0.01

 

1,842

 

1,197

 

0.03

 

304

 

198

 

-

Impairment of long-lived assets, net of (gain) loss on sale

1,044

 

679

 

0.01

 

3,396

 

2,207

 

0.05

 

1,713

 

1,113

 

0.03

Other non-operating non-interest expense

1,091

 

709

 

0.02

 

(208)

 

(135)

 

-

 

242

 

157

 

-

Total non-interest expense adjustments

2,592

 

1,685

 

0.04

 

4,864

 

3,161

 

0.08

 

4,471

 

2,906

 

0.07

Income tax benefits

-

 

-

 

-

 

-

 

(2,041)

 

(0.05)

 

-

 

-

 

-

Operating earnings (non-GAAP)

67,287

 

41,751

 

1.01

 

67,684

 

45,425

 

1.11

 

64,815

 

43,937

 

1.07

Provision for loan losses

14,905

 

9,688

 

0.24

 

11,711

 

7,612

 

0.19

 

5,062

 

3,291

 

0.08

Pre-provision operating earnings (non-GAAP)

$ 82,192

 

$     51,439

 

$          1.25

 

$ 79,395

 

$     53,037

 

$          1.30

 

$ 69,877

 

$     47,228

 

$          1.15

                                   
 

For the Three Months Ended

           
 

6/30/2015

 

3/31/2015

           
 

Pre-tax

 

After-tax (1)

 

Per share (2)

 

Pre-tax

 

After-tax(1)

 

Per share (2)

           

Net income available to common shareholders (GAAP)

$ 45,191

 

$     30,836

 

$          0.79

 

$ 36,205

 

$     25,126

 

$          0.75

           
                                   

Non-interest income adjustments:

                                 

Gain on sale of investments and other non-interest income

(1,266)

 

(823)

 

(0.02)

 

(389)

 

(252)

 

(0.01)

           
                                   

Non-interest expense adjustments:

                                 

Merger-related expenses

12,732

 

8,392

 

0.22

 

9,296

 

6,139

 

0.18

           

Severance expenses

406

 

264

 

0.01

 

41

 

27

 

-

           

Impairment of long-lived assets, net of (gain) loss on sale

1,571

 

1,021

 

0.03

 

579

 

376

 

0.01

           

Other non-operating non-interest expense

2,050

 

1,333

 

0.03

 

450

 

292

 

0.01

           

Total non-interest expense adjustments

16,759

 

11,010

 

0.29

 

10,366

 

6,834

 

0.20

           

Income tax benefits

-

 

-

 

-

 

-

 

-

 

-

           

Operating earnings (non-GAAP)

60,684

 

41,023

 

1.05

 

46,182

 

31,708

 

0.95

           

Provision for loan losses

8,790

 

5,713

 

0.15

 

5,345

 

3,475

 

0.10

           

Pre-provision operating earnings (non-GAAP)

$ 69,474

 

$     46,736

 

$          1.20

 

$ 51,527

 

$     35,183

 

$          1.05

           
                                   
 

(1)

 After-tax amounts computed using a marginal tax rate of 35%.

   

(2)

Diluted per share amounts may not appear to foot due to rounding.

 

 

Table 10 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)

                   
 

For the Three Months Ended

 

3/31/2016

 

12/31/2015

 

9/30/2015

 

6/30/2015

 

3/31/2015

Net interest income (GAAP)

$   161,403

 

$                 161,160

 

$   155,117

 

$   145,677

 

$   125,804

Add: Effect of tax benefit on interest income

2,361

 

2,384

 

2,185

 

1,996

 

2,040

Net interest income (TE) (Non-GAAP) (1)

163,764

 

163,544

 

157,302

 

147,673

 

127,844

                   

Non-interest income (GAAP)

55,845

 

52,503

 

57,478

 

61,513

 

48,899

Add: Effect of tax benefit on non-interest income

647

 

590

 

589

 

579

 

588

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

56,492

 

53,093

 

58,067

 

62,092

 

49,487

Taxable equivalent revenues (Non-GAAP) (1)

220,256

 

216,637

 

215,369

 

209,765

 

177,331

Securities gains and other non-interest income

(196)

 

(157)

 

(2,221)

 

(1,266)

 

(389)

Taxable equivalent operating revenues (Non-GAAP) (1)

$   220,060

 

$                 216,480

 

$   213,148

 

$   208,499

 

$   176,942

                   

Total non-interest expense (GAAP)

$   137,452

 

$                 138,975

 

$   144,968

 

$   153,209

 

$   133,153

Less: Intangible amortization expense

2,113

 

1,795

 

2,338

 

2,155

 

1,523

Tangible non-interest expense (Non-GAAP) (2)

135,339

 

137,180

 

142,630

 

151,054

 

131,630

Less: Merger-related expense

3

 

(166)

 

2,212

 

12,732

 

9,296

Severance expense

454

 

1,842

 

304

 

406

 

41

Loss on sale of long-lived assets, net of impairment

1,044

 

3,396

 

1,713

 

1,571

 

579

Other non-operating non-interest expense

1,091

 

(208)

 

242

 

2,050

 

450

Tangible operating non-interest expense (Non-GAAP) (2)

$   132,747

 

$                 132,316

 

$   138,159

 

$   134,295

 

$   121,264

                   

Return on average assets (GAAP)

0.82 %

 

0.90 %

 

0.86 %

 

0.67 %

 

0.64 %

Effect of non-operating revenues and expenses

0.03

 

0.02

 

0.03

 

0.22

 

0.17

Operating return on average assets (Non-GAAP)

0.85 %

 

0.92 %

 

0.89 %

 

0.89 %

 

0.81 %

                   

Efficiency ratio (GAAP)

63.3 %

 

65.0 %

 

68.2 %

 

73.9 %

 

76.2 %

Effect of tax benefit related to tax-exempt income

(0.9)

 

(0.8)

 

(0.9)

 

(0.9)

 

(1.1)

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

62.4 %

 

64.2 %

 

67.3 %

 

73.0 %

 

75.1 %

Effect of amortization of intangibles

(1.0)

 

(0.8)

 

(1.1)

 

(1.0)

 

(0.9)

Effect of non-operating items

(1.1)

 

(2.3)

 

(1.4)

 

(7.6)

 

(5.7)

Tangible operating efficiency ratio (TE) (Non-GAAP)(1)(2)

60.3 %

 

61.1 %

 

64.8 %

 

64.4 %

 

68.5 %

                   

Return on average common equity (GAAP)

6.59 %

 

7.30 %

 

7.09 %

 

5.54 %

 

5.39 %

Effect of intangibles (2)

3.30

 

3.65

 

3.73

 

2.93

 

2.53

Effect of non-operating revenues and expenses

0.37

 

0.25

 

0.36

 

2.67

 

2.00

Return on average operating tangible common equity (Non-GAAP) (2)

10.26 %

 

11.20 %

 

11.18 %

 

11.14 %

 

9.92 %

                   

Total shareholders' equity (GAAP)

2,547,909

 

2,498,835

 

2,483,201

 

2,365,284

 

2,167,330

Less:  Goodwill and other intangibles

764,730

 

761,871

 

762,500

 

761,809

 

668,802

Preferred stock

76,812

 

76,812

 

77,463

 

-

 

-

Tangible common equity (Non-GAAP) (2)

1,706,367

 

1,660,152

 

1,643,238

 

1,603,475

 

1,498,528

                   

Total assets (GAAP)

20,092,563

 

19,504,068

 

19,534,225

 

19,238,928

 

18,051,762

Less:  Goodwill and other intangibles

764,730

 

761,871

 

762,500

 

761,809

 

668,802

Tangible assets (Non-GAAP) (2)

19,327,833

 

18,742,197

 

18,771,725

 

18,477,119

 

17,382,960

Tangible common equity ratio (Non-GAAP) (2)

8.83%

 

8.86%

 

8.75%

 

8.68%

 

8.62%

                   
 

(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 intangibles and the corresponding amortization expense on a tax-effected basis where applicable.

  

 

SOURCE IBERIABANK Corporation

For further information: Daryl G. Byrd, President and CEO (337) 521-4003, John R. Davis, Senior Executive Vice President (337) 521-4005