IBERIABANK Corporation Reports Fourth Quarter Results

LAFAYETTE, La., Jan. 26, 2017 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 129-year-old IBERIABANK (www.iberiabank.com), reported financial results for the fourth quarter ended December 31, 2016.  For the quarter, the Company reported income available to common shareholders of $44.2 million, or $1.04 fully diluted earnings per common share ("EPS").  On a non-GAAP basis, EPS excluding non-core revenues and non-core expenses ("Core EPS") in the fourth quarter of 2016 was $1.16 per common share (refer to press release supplemental tables for a reconciliation of GAAP to non-GAAP metrics).

For the year ended December 31, 2016, the Company reported income available to common shareholders of $178.8 million, an increase of $36.0 million, or 25%, compared to the year ended December 31, 2015. On that basis, EPS for the year of 2016 was $4.30 per common share, up 17% compared to 2015. Core earnings for the year of 2016 was $184.1 million, up $22.0 million, or 14%, compared to 2015. Core EPS for the year of 2016 was $4.43 per common share, up 6% compared to 2015. The levels of annual Core earnings and Core EPS in 2016 were record results for the Company.

Daryl G. Byrd, President and Chief Executive Officer, commented, "We were active on many fronts during the fourth quarter of 2016, and we delivered solid quarterly financial results which capped off an outstanding and record year for our Company. Despite typical seasonal softness in our mortgage and title businesses, we delivered our second highest level of quarterly Core EPS in our Company's history, and we demonstrated our sustained focus on efficiency. We experienced an abundance of liquidity driven by record organic deposit growth, the byproduct of which will be temporary compression of our net interest margin until the excess liquidity is fully deployed. Our capital position was further strengthened with the successful execution of a common stock offering that was well-oversubscribed by investors. Near the latter part of the fourth quarter we began to see the benefits of our asset-sensitive balance sheet position in a rising interest rate environment. Finally, we successfully completed the early termination of our FDIC loss share agreements after seven years of participation in that program. We are pleased with our continued financial progress and our unique position within the banking industry during this period of significant economic, political, and technological change."

Highlights for the fourth quarter of 2016 and at December 31, 2016:


  • The Company achieved quarterly organic deposit growth of $886 million on a period-end basis and $817 million on an average balance basis, each of which were quarterly record results for the Company.
  • The reported and cash net interest margins declined on a linked quarter basis as a result of additional balance sheet liquidity from the strong deposit inflows.
  • Energy-related loans ("energy loans") declined to 3.7% of total loans, classified energy loans declined 7%, and energy-related non-performing assets decreased during the fourth quarter of 2016. 
  • Overall improvement in consolidated credit quality resulted in a $7 million decline in the provision for loan losses on a  linked quarter basis. 
  • Total revenues declined 4% on a linked quarter basis primarily due to a decline in the Company's seasonal fee income businesses and slower loan growth. The Company's core efficiency remained generally stable on a linked quarter basis.
  • IBERIABANK successfully terminated loss share agreements associated with FDIC-assisted acquisitions. As a result of this action, the Company recorded a non-core $17.8 million pre-tax charge during the fourth quarter of 2016 and will no longer incur expenses associated with these agreements. IBERIABANK will recognize all future recoveries, losses, and expenses related to the assets previously subject to these agreements.
  • The Company experienced a $6.8 million reduction in income tax expense associated with the filing of its 2015 tax return. This non-core tax benefit equated to $0.16 per common share.
  • The Company issued and sold approximately 3.6 million shares of common stock, resulting in net proceeds of $280 million and further strengthened the Company's capital position.

Table A - Summary Financial Results

(Dollars in thousands, except per share data)













For the Three Months Ended


12/31/2016



9/30/2016


% Change


12/31/2015


% Change

GAAP BASIS:











Income available to common shareholders

$       44,173



$       44,478


(0.7)


$       44,407


(0.5)

Earnings per common share - diluted

1.04



1.08


(3.7)


1.08


(3.7)












Average loans, net of unearned income

$14,912,350



$14,802,199


0.7


$14,185,150


5.1

Average total deposits

16,893,643



16,076,742


5.1


16,292,755


3.7

Net interest margin (TE) (1)

3.34



3.53




3.64














Total revenues

$     214,903



$     223,238


(3.7)


$     213,663


0.6

Total non-interest expense

151,570



138,139


9.7


138,975


9.1

Efficiency ratio

70.5



61.9




65.0



Return on average assets

0.85



0.94




0.90



Return on average common equity

6.70



7.00




7.30














NON-GAAP BASIS (2):











Core revenues

$     214,898



$     223,226


(3.7)


$     213,506


0.7

Core non-interest expense

133,562



138,139


(3.3)


134,111


(0.4)

Core earnings per common share - diluted

1.16



1.08


7.4


1.11


4.5

Core tangible efficiency ratio (TE) (1) (4)

60.3



60.1




61.1



Core return on average assets

0.94



0.94




0.92



Core return on average tangible common equity(4)

10.75



10.30




11.20



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

3.16



3.31




3.38














(1)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 35%, which approximates the marginal tax rate.

(2)

See Table 12 and Table 13 for GAAP to Non-GAAP reconciliations.

(3)

See Table 11 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 $103 million, or 1%, and the associated tax-equivalent yield decreased nine basis points.  Over that period, average legacy loans increased $298 million, or 2%, with a decrease in yield of two basis points, and average acquired loans (including the FDIC loss share receivable) decreased $195 million, or 7%, and the yield decreased 17 basis points.  All other average earning assets, including investment securities, mortgage loans held for sale, and interest-bearing deposits in other institutions, increased a net of $724 million, or 20%.

Primarily as a result of additional balance sheet liquidity, the Company's reported and cash net interest margins declined 19 and 15 basis points, respectively, on a linked quarter basis.  The excess liquidity compressed the net interest margin by approximately eight basis points on a linked quarter basis.

On a linked quarter basis, average earning assets increased $827 million, or 4%, and the average earning asset yield decreased 16 basis points.  Average interest-bearing liabilities increased $406 million, or 3%, and the cost of interest-bearing liabilities increased four basis points. On a linked quarter basis, tax-equivalent net interest income decreased $1.7 million, or 1%.

The Company's provision for loan losses decreased $7.3 million, or 59%, on a linked quarter basis to $5.2 million. The provision for loan losses covered net charge-offs in the fourth quarter of 2016 by 68% compared to 122% in the third quarter of 2016.

In the fourth quarter of 2016, non-interest income on a GAAP and non-core basis decreased $6.6 million, or 11%, compared to the third quarter of 2016.  The primary changes in core non-interest income on a linked quarter basis included:

  • Decreased mortgage income of $5.7 million, or 26%;
  • Decreased brokerage commission and swap income of $0.9 million; and
  • Decreased title revenues of $0.7 million, or 11%; partially offset by
  • Increased capital markets income of $0.6 million.

In the fourth quarter of 2016, the Company originated $538 million in residential mortgage loans, down $161 million, or 23%, on a linked quarter basis.  Client loan refinancing opportunities accounted for approximately 30% of mortgage loan applications in the fourth quarter of 2016, compared to 26% on a linked quarter basis.  The Company sold $583 million in mortgage loans during the fourth quarter of 2016, down $123 million, or 17%, on a linked quarter basis.  Loans held for sale decreased from $211 million at September 30, 2016, to $157 million at December 31, 2016.  The mortgage origination locked pipeline was $166 million at December 31, 2016, down $116 million, or 41%, between quarter-ends, and was down 27% compared to one year ago.  At January 20, 2017, the locked pipeline was $182 million, up 10% compared to December 31, 2016.

Non-interest expense increased $13.4 million, or 10%, on a linked quarter basis, the increase of which was the result of the Company's termination of FDIC loss share agreements. On December 20, 2016, IBERIABANK terminated 12 loss share agreements associated with FDIC-assisted acquisitions. IBERIABANK received a net cash payment from the FDIC of $6.5 million as consideration for the termination of those agreements, and recorded a non-core pre-tax $17.8 million expense, or $0.28 per common share, associated with the termination. IBERIABANK will recognize all future recoveries, losses, and expenses related to the assets previously subject to these agreements.

Excluding non-core expenses, core non-interest expense decreased $4.6 million, or 3%, and was comprised of the the following items on a linked-quarter basis:

  • Decreased health care costs of $2.7 million;
  • Decreased mortgage commission expenses of $1.7 million;
  • Decreased occupancy expense of $1.0 million;
  • Decreased FDIC insurance premiums of $1.0 million;
  • Decreased legal and professional expense of $0.8 million;
  • Decreased marketing expense of $0.7 million; and
  • Decreased compensation costs of $0.6 million; partially offset by
  • Increased credit and loan-related expenses of $1.5 million;
  • Increased phantom stock incentives expense of $1.5 million; and
  • Increased computer services expense of $0.9 million.

The Company's provision for unfunded commitments, which is included in credit and loan related expense in non-interest expense, increased $1.1 million during the fourth quarter of 2016. The reserve for unfunded commitments was $11.2 million at December 31, 2016 ($1.0 million of which were energy-related).

On a linked quarter basis, the Company's revenues and  non-GAAP core revenues decreased $8.3 million, or 4%. Over the same period, GAAP expenses increased $13.4 million, or 10%, and non-GAAP core expenses decreased $4.6 million, or 3%. The efficiency ratio increased from 61.9% to 70.5%, while the non-GAAP core tangible efficiency ratio edged up slightly from 60.1% to 60.3% on a linked quarter basis. The Company continues to focus on expense containment and revenue enhancement strategies intended to further improve its targeted core tangible efficiency ratio.


Table B - Summary Financial Condition Results

(Dollars in thousands, except per share data)

















As of and For the Three Months Ended



12/31/2016


9/30/2016


% Change


12/31/2015


% Change

PERIOD-END BALANCES:














Total loans, net of unearned income

$15,064,971



$14,924,499



0.9


$14,327,428



5.1


Legacy loans, net of unearned income

12,694,924



12,413,370



2.3


11,190,520



13.4


Total deposits

17,408,283



16,522,517



5.4


16,178,748



7.6















ASSET QUALITY RATIOS (LEGACY):














Loans 30-89 days past due and still accruing as a percentage of total loans

0.20%



0.33%





0.18%





Loans 90 days or more past due and still accruing as a percentage of total loans

0.01



0.04





0.01





Non-performing assets to total assets (1)

1.20



1.33





0.42





Classified assets to total assets (2)

1.94



2.18





1.02


















CAPITAL RATIOS:














Tangible common equity ratio (Non-GAAP) (3) (4)

9.82%



8.87%





8.86%





Tier 1 leverage ratio (5)

10.86



9.70





9.52





Total risk-based capital ratio (5)

14.13



12.49





12.14


















PER COMMON SHARE DATA:














Book value

$         62.68



$         61.71



1.6


$         58.87



6.5


Tangible book value (Non-GAAP) (3) (4)

45.80



43.26



5.9


40.35



13.5


Closing stock price

83.75



67.12



24.8


55.07



52.1


Cash dividends

0.36



0.36



-


0.34



5.9

















(1)

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

(2)

Classified assets include commercial loans rated substandard or worse and non-performing mortgage and consumer loans, and were $373 million, $398 million and $166 million at December 31, 2016, September 30, 2016, and December 30, 2015, respectively.

(3)

See Table 12 and Table 13 for GAAP to Non-GAAP reconciliations.

(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.

(5)

Regulatory capital ratios as of December 31, 2016 are preliminary.

 

Loans

Total loans increased $140 million, or 1%, between September 30, 2016, and December 31, 2016.  Over that period, acquired loans decreased $141 million, or 6%, and legacy loans increased $282 million, or 2% (9% annualized rate), including a decrease in total energy loans of $38 million, or 6%, and a decline in indirect automobile loans of $23 million, or 15%.  During the fourth quarter of 2016, legacy commercial loans increased $258 million, or 3% (which included $38 million in small business loan growth, up 3%, or 12% annualized rate), legacy consumer loans increased $9 million, or less than 1%, and legacy mortgage loans increased $14 million, or 2%.  Period-end loan growth during the fourth quarter of 2016 was strongest in the Atlanta, Tampa, Dallas, and Baton Rouge markets.  Funded loan origination and renewal mix in the fourth quarter of 2016 was 36% fixed rate and 64% floating rate, and total loans outstanding (excluding non-accruals) were 44% fixed and 56% floating.   Commitments originated and/or renewed during the fourth quarter of 2016 were $1.4 billion (down 3% on a linked quarter basis).  Loans originated and/or renewed during the fourth quarter of 2016 totaled $936 million (down 4% on a linked quarter basis).  At December 31, 2016, the Company's commercial loan pipeline was approximately $811 million.

Table C - Period-End Loans

(Dollars in thousands)



















As of and For the Three Months Ended








Linked Qtr Change


Year/Year Change


Mix


12/31/2016


9/30/2016


12/31/2015


$

%


Annualized


$

%


12/31/2016

9/30/2016

Legacy loans:

















Commercial

$  9,377,399


$  9,119,234


$  8,133,341


258,165

2.8


11.3%


1,244,058

15.3


73.9%

73.4%

Residential mortgage

854,216


840,082


694,023


14,134

1.7


6.7%


160,193

23.1


6.7%

6.8%

Consumer

2,463,309


2,454,054


2,363,156


9,255

0.4


1.5%


100,153

4.2


19.4%

19.8%

Total legacy loans

12,694,924


12,413,370


11,190,520


281,554

2.3


9.1%


1,504,404

13.4


100.0%

100.0%


















Acquired loans:

















Balance at beginning of period

2,511,129


2,737,712


3,337,761


(226,583)

(8.3)




(826,632)

(24.8)




Loans acquired during the period

-


-


-


-

-




-

-




Net paydown activity

(141,082)


(226,583)


(200,853)


85,501

(37.7)




59,771

(29.8)




Total acquired loans

2,370,047


2,511,129


3,136,908


(141,082)

(5.6)




(766,861)

(24.4)




Total loans

$15,064,971


$14,924,499


$14,327,428


140,472

0.9




737,543

5.1




 

Energy loans outstanding totaled $561 million at December 31, 2016, down $38 million, or 6%, compared to September 30, 2016, and equated to approximately 3.7% of total loans (down from 4.0% at September 30, 2016).  Energy-related commitments totaled $970 million at December 31, 2016, down $36 million, or 4%, compared to September 30, 2016. Loans to exploration and production companies accounted for 52% of energy loans outstanding and 56% of energy loan commitments at December 31, 2016.  Midstream companies accounted for 16% of energy loans and 19% of energy loan commitments, and service companies accounted for 32% of energy loans and 25% of energy loan commitments.

At December 31, 2016, $150 million in energy loans were on non-accrual status (compared to $154 million at September 30, 2016), and $1.5 million in energy loans (excluding non-accruing loans) were past due greater than 30 days at quarter-end.  Classified energy loans declined $17 million, or 7%, and criticized energy loans decreased $2 million, or less than 1%, between quarter-ends. At December 31, 2016,  approximately 42% of energy loans were classified and 57% were criticized.  To date, the Company has experienced $16 million in energy-related charge-offs.  Additional information regarding the Company's energy loan and commitment exposure is provided in Table 8 of this press release and in the supplemental investor presentation.

At December 31, 2016, the Company's indirect automobile lending business had approximately $131 million in loans outstanding, down $23 million, or 15%, compared to September 30, 2016 (0.9% of total loans outstanding compared to 1.0% at September 30, 2016).

Deposits

Total deposits increased $886 million, or 5%, between September 30, 2016 and December 31, 2016.  Over that period, non-interest-bearing deposits increased $141 million, or 3%, and equated to 28% of total deposits at December 31, 2016.  NOW accounts increased $409 million, or 14%, money market accounts increased $372 million, or 6%, and savings deposits grew $16 million, or 2%. Between September 30, 2016 and December 31, 2016, time deposits decreased $52 million, or 2%. Deposit growth during the fourth quarter of 2016 was strongest in the New Orleans, Acadiana, Houston, and Florida Keys markets.

Table D - Period-End Deposits

(Dollars in thousands)








Linked Qtr Change


Year/Year Change


Mix


12/31/2016


9/30/2016


12/31/2015


$

%

Annualized


$

%


12/31/2016

9/30/2016

Non-interest-bearing

$  4,928,878


$  4,787,485


$  4,352,229


141,393

3.0

11.8%


576,649

13.2


28.3%

29.0%

NOW accounts

3,314,281


2,904,835


2,974,176


409,446

14.1

56.4%


340,105

11.4


19.0%

17.6%

Money market accounts

6,219,532


5,847,913


6,010,882


371,619

6.4

25.4%


208,650

3.5


35.7%

35.4%

Savings accounts

814,385


798,781


716,838


15,604

2.0

7.8%


97,547

13.6


4.7%

4.8%

Time deposits

2,131,207


2,183,503


2,124,623


(52,296)

(2.4)

-9.6%


6,584

0.3


12.3%

13.2%

Total deposits

$17,408,283


$16,522,517


$16,178,748


885,766

5.4

21.4%


1,229,535

7.6


100.0%

100.0%

 

On an average balance and linked quarter basis, non-interest-bearing deposits increased $264 million, or 6%, and interest-bearing deposits increased $553 million, or 5%.  The rate on average interest-bearing deposits in the fourth quarter of 2016 was 0.50%, up six basis points on a linked quarter basis. The increase in deposit rates was primarily the result of a less favorable change in the mix of deposits during the fourth quarter.

Other Assets And Funding

On an average balance and linked quarter basis, the investment portfolio increased $365 million, or 13%, in the fourth quarter of 2016, to $3.3 billion.  On a period-end basis, the investment portfolio equated to $3.5 billion, or 16% of total assets at December 31, 2016, up $559 million, or 19%, compared to September 30, 2016.  The investment portfolio had an effective duration of 3.8 years at December 31, 2016, compared to 3.0 years at September 30, 2016.  The investment portfolio had a $39 million unrealized loss at December 31, 2016, down from a $42 million unrealized gain at September 30, 2016.  The average yield on investment securities remained stable on a linked quarter basis, at 2.09% in the fourth quarter of 2016. The Company holds in its investment portfolio primarily government agency securities.  Municipal securities comprised 9% of total investments at December 31, 2016.

On a linked quarter basis, average short-term borrowings (including repurchase agreements) decreased $129 million, or 18%, and the cost of short-term borrowings decreased four basis points.  At December 31, 2016, short-term borrowings (including repurchase agreements) decreased $204 million, or 29%, compared to September 30, 2016.  On a linked quarter basis, average long-term debt decreased $18 million, or 3%, and the cost of long-term debt increased five basis points to 2.11%.  The cost of average interest-bearing liabilities was 0.57% in the fourth quarter of 2016, up four basis points on a linked quarter basis.

Asset Quality

Non-performing assets ("NPAs") decreased $12 million, or 4%, to $251 million at December 31, 2016. Acquired NPAs were stable at $19 million, while legacy NPAs, which include energy and non-energy loans, decreased $12 million, or 5%, and equated to 1.20% of total assets. Energy-related NPAs (which are included in legacy loans) decreased by $3 million, or 2%, and accounted for 28% of the decrease in the Company's total NPAs during the fourth quarter of 2016.  At December 31, 2016, non-energy-related NPAs decreased $8 million, or 8%, and equated to 0.48% of total assets, down from 0.53% at September 30, 2016.

Aggregate loans past due 30 to 89 days decreased $16 million, or 36%, and equated to 0.19% of total loans at December 31, 2016, compared to 0.30% at September 30, 2016.

Net charge-offs totaled $7.7 million in the fourth quarter of 2016, down $2.6 million, or 25%, compared to the third quarter of 2016.  Annualized net charge-offs equated to 0.21% of average loans in the fourth quarter of 2016, a seven basis point improvement on a linked quarter basis.  Energy loans accounted for approximately 19% of the net charge-offs incurred during the fourth quarter of 2016.

Capital Position

At December 31, 2016, the Company reported a non-GAAP tangible common equity ratio of 9.82%, up 95 basis points compared to September 30, 2016, and the preliminary Tier 1 leverage ratio was 10.86%, up 116 basis points compared to September 30, 2016. The Company's preliminary calculation of its total risk-based capital ratio at December 31, 2016, was 14.13%, up 164 basis points compared to September 30, 2016.

At December 31, 2016, book value per common share was $62.68, up $0.97 per share, or 2%, compared to September 30, 2016. Tangible book value per common share was $45.80, up $2.54 per share, or 6%, compared to September 30, 2016.  Based on the closing stock price of the Company's common stock of $83.25 per share on January 26, 2017, this price equated to 1.33 times December 31, 2016 book value per common share and 1.82 times December 31, 2016 tangible book value per common share.

Cash Dividends On Common Stock.  On December 13, 2016, the Company declared a quarterly cash dividend of $0.36 per common share, a 6% increase compared to the same quarter in the prior year. This common dividend level equated to an annualized dividend rate of $1.44 per common share.  Based on the Company's closing common stock price on January 26, 2017, the indicated dividend yield was 1.73% per common share. The payment of dividends on the common stock is at the discretion of the Board of Directors.

Common Stock Repurchase Program.  On May 4, 2016, the Board of Directors of the Company authorized the repurchase of up to 950,000 shares of the Company's common stock. The Company did not repurchase common shares under the authorized program during the fourth quarter of 2016. The Company has approximately 747,000 shares of common stock remaining that may be purchased under the currently authorized program.

Series B Preferred Stock.  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 Series B 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 from the transaction.  On January 5, 2017, the Company declared a semi-annual cash dividend of $0.8281 per depositary share that is payable on February 1, 2017.

Series C Preferred Stock.  On May 9, 2016, the Company sold 2.3 million depositary shares, each representing a 1/400th interest in a share of non-cumulative perpetual preferred stock. The Series C preferred stock has an initial coupon equal to 6.60% for a period of 10 years, and thereafter floats at a rate of LIBOR plus 492 basis points. The Company raised approximately $57.5 million in gross proceeds from the transaction.  On December 13, 2016, the Company declared a quarterly cash dividend of $0.4125 per depositary share that is payable on February 1, 2017.

Common Stock.  On December 7, 2016, the Company issued and sold 3,593,750 shares of common stock at a price of $81.50 per common share. After deducting underwriting discounts and commissions and other related expenses, net proceeds of the sale were approximately $280 million. The estimated dilutive impact of carrying the excess capital was approximately $0.03 per common share during the fourth quarter of 2016.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with 300 combined offices, including 200 bank branch offices and three loan production offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, and Georgia, 24 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 64 locations in 10 states.  The Company has eight locations with representatives of IBERIA Wealth Advisors in four states, and one IBERIA Capital Partners L.L.C. office in New Orleans.

The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC". The Company's Series B Preferred Stock and Series C Preferred Stock trade on the NASDAQ Global Select Market under the symbols "IBKCP" and "IBKCO", respectively.  The Company's common stock market capitalization was approximately $3.7 billion, based on the NASDAQ Global Select Market closing stock price on January 26, 2017.

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 Friday, January 27, 2017, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 4035284.  A replay of the call will be available until midnight Central Time on February 3, 2017 by dialing 1-877-344-7529. The confirmation code for the replay is 10098616.  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.  Non-GAAP measures in this press release include, but are not limited to, descriptions such as core, tangible, and pre-tax pre-provision.  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. Transactions that are typically excluded from non-GAAP performance measures include realized and unrealized gains/losses on former bank owned real estate, realized gains/losses on securities, income tax gains/losses, merger-related charges and recoveries, litigation charges and recoveries, and debt repayment penalties. 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 presented in the supplemental tables at the end of this release.  Please refer to the supplemental tables for these reconciliations.

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, utilization of non-GAAP financial measures, credit risk of our customers, resolution of assets formerly subject to loss share agreements with the FDIC, 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, compliance with laws and regulations, 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 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:

12/31/2016



9/30/2016



% Change


12/31/2015



% Change


Net interest income

$     161,665



$  163,417



(1.1)


$     161,160



0.3


Net interest income (TE) (1)

164,057



165,795



(1.0)


163,544



0.3


Total revenues

214,903



223,238



(3.7)


213,663



0.6


Provision for loan losses

5,169



12,484



(58.6)


11,711



(55.9)


Non-interest expense

151,570



138,139



9.7


138,975



9.1


Net income available to common shareholders

44,173



44,478



(0.7)


44,407



(0.5)















PER COMMON SHARE DATA:













Earnings available to common shareholders - basic

$           1.05



$        1.08



(2.8)


$           1.08



(2.8)


Earnings available to common shareholders - diluted

1.04



1.08



(3.7)


1.08



(3.7)


Core earnings (Non-GAAP) (2)

1.16



1.08



7.4


1.11



4.5


Book value

62.68



61.71



1.6


58.87



6.5


Tangible book value (Non-GAAP) (2) (3)

45.80



43.26



5.9


40.35



13.5


Closing stock price

83.75



67.12



24.8


55.07



52.1


Cash dividends

0.36



0.36



-


0.34



5.9















KEY RATIOS AND OTHER DATA (6):














Net interest margin (TE) (1)

3.34%



3.53%





3.64%





Efficiency ratio

70.5



61.9





65.0





Core tangible efficiency ratio (TE) (Non-GAAP) (1) (2) (3)

60.3



60.1





61.1





Return on average assets

0.85



0.94





0.90





Return on average common equity

6.70



7.00





7.30





Core return on average tangible common equity (Non-GAAP) (2)(3)

10.75



10.30





11.20





Effective tax rate

22.4



33.8





29.5





Full-time equivalent employees

3,100



3,129





3,151


















CAPITAL RATIOS:














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

9.82%



8.87%





8.86%





Tangible common equity to risk-weighted assets (3)

11.62



10.17





9.89





Tier 1 leverage ratio (4)

10.86



9.70





9.52





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

11.84



10.14





10.07





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

11.77



10.07





9.96





Tier 1 capital (transitional) (4)

12.59



10.90





10.70





Total risk-based capital ratio (4)

14.13



12.49





12.14





Common stock dividend payout ratio

36.4



33.3





31.5





Classified assets to Tier 1 capital (7)

21.9



26.1





17.7


















ASSET QUALITY RATIOS (LEGACY):














Non-performing assets to total assets (5)

1.20%



1.33%





0.42%





Allowance for loan losses to loans

0.83



0.88





0.84





Net charge-offs to average loans (annualized)

0.24



0.33





0.09





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

1.83



1.96





0.61






(1)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 35%, which approximates the marginal tax rate.

(2)

See Table 12 and Table 13 for 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)

Regulatory capital ratios as of December 31, 2016 are preliminary.

(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.

(7)

Classified assets include commercial loans rated substandard or worse and non-performing mortgage and consumer loans and include acquired impaired loans accounted for under ASC 310-30.

 


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


12/31/2016


9/30/2016


$

%


6/30/2016


3/31/2016


12/31/2015


$

%

Interest income

$     180,805


$  180,504


301

0.2


$  178,694


$  176,936


$     176,651


4,154

2.4

Interest expense

19,140


17,087


2,053

12.0


15,941


15,533


15,491


3,649

23.6

   Net interest income

161,665


163,417


(1,752)

(1.1)


162,753


161,403


161,160


505

0.3

Provision for loan losses

5,169


12,484


(7,315)

(58.6)


11,866


14,905


11,711


(6,542)

(55.9)

Net interest income after provision for loan losses

156,496


150,933


5,563

3.7


150,887


146,498


149,449


7,047

4.7

Mortgage income

16,115


21,807


(5,692)

(26.1)


25,991


19,940


16,765


(650)

(3.9)

Service charges on deposit accounts

11,178


11,066


112

1.0


10,940


10,951


11,431


(253)

(2.2)

Title revenue

5,332


6,001


(669)

(11.1)


6,135


4,745


5,435


(103)

(1.9)

Broker commissions

4,006


3,797


209

5.5


3,712


3,823


4,130


(124)

(3.0)

ATM/debit card fee income

3,604


3,483


121

3.5


3,650


3,503


3,569


35

1.0

Income from bank owned life insurance

1,323


1,305


18

1.4


1,411


1,202


1,096


227

20.7

Gain on sale of available-for-sale securities

4


12


(8)

(66.7)


1,789


196


6


(2)

(33.3)

Other non-interest income

11,676


12,350


(674)

(5.5)


11,289


11,485


10,071


1,605

15.9

   Total non-interest income

53,238


59,821


(6,583)

(11.0)


64,917


55,845


52,503


735

1.4

Salaries and employee benefits

80,811


85,028


(4,217)

(5.0)


85,105


80,742


83,455


(2,644)

(3.2)

Occupancy and equipment

15,551


16,526


(975)

(5.9)


16,813


16,907


16,928


(1,377)

(8.1)

Loss on early termination of loss share agreements

17,798


-


17,798

 N/M 


-


-


-


17,798

 N/M 

Amortization of acquisition intangibles

2,087


2,106


(19)

(0.9)


2,109


2,113


1,795


292

16.3

Other non-interest expense

35,323


34,479


844

2.4


35,477


37,690


36,797


(1,474)

(4.0)

   Total non-interest expense

151,570


138,139


13,431

9.7


139,504


137,452


138,975


12,595

9.1

Income before income taxes

58,164


72,615


(14,451)

(19.9)


76,300


64,891


62,977


(4,813)

(7.6)

Income tax expense

13,034


24,547


(11,513)

(46.9)


25,490


22,122


18,570


(5,536)

(29.8)

   Net income

45,130


48,068


(2,938)

(6.1)


50,810


42,769


44,407


723

1.6

Preferred stock dividends

(957)


(3,590)


2,633

73.3


(854)


(2,576)


-


(957)

 N/M 

Net income available to common shareholders

$       44,173


$    44,478


(305)

(0.7)


$    49,956


$    40,193


$       44,407


(234)

(0.5)

















Income available to common shareholders - basic

$       44,173


$    44,478


(305)

(0.7)


$    49,956


$    40,193


$       44,407


(234)

(0.5)

Earnings allocated to unvested restricted stock

(414)


(462)


48

(10.4)


(540)


(460)


(505)


91

(18.0)

Earnings allocated to common shareholders

$       43,759


$    44,016


(257)

(0.6)


$    49,416


$    39,733


$       43,902


(143)

(0.3)

















Earnings per common share - basic

$           1.05


$        1.08


(0.03)

(2.8)


$        1.21


$        0.98


$           1.08


(0.03)

(2.8)

















Earnings per common share - diluted

1.04


1.08


(0.04)

(3.7)


1.21


0.97


1.08


(0.04)

(3.7)

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

0.12


-


0.12

 N/M 


(0.03)


0.04


0.03


0.09

300.0

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

$           1.16


$        1.08


0.08

7.4


$        1.18


$        1.01


$           1.11


0.05

4.5

















NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
















Weighted average common shares outstanding - basic

42,109


41,052


1,057

2.6


41,232


41,186


40,996


1,113

2.7

Weighted average common shares outstanding - diluted

41,950


40,811


1,139

2.8


40,908


40,765


40,597


1,353

3.3

Book value shares (period end)

44,795


41,082


3,713

9.0


41,039


41,232


41,140


3,655

8.9



(1)

See Table 12 and Table 13 for GAAP to Non-GAAP reconciliations.


















N/M = not meaningful








 


Table 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except per share data)









For the Years Ended


12/31/2016


12/31/2015


$ Change

% Change

Interest income

$     716,939


$     646,858


70,081

10.8

Interest expense

67,701


59,100


8,601

14.6

   Net interest income

649,238


587,758


61,480

10.5

Provision for loan losses

44,424


30,908


13,516

43.7

   Net interest income after provision for loan losses

604,814


556,850


47,964

8.6

Mortgage income

83,853


80,662


3,191

4.0

Service charges on deposit accounts

44,135


42,197


1,938

4.6

Title revenue

22,213


22,837


(624)

(2.7)

Broker commissions

15,338


17,592


(2,254)

(12.8)

ATM/debit card fee income

14,240


13,989


251

1.8

Income from bank owned life insurance

5,241


4,356


885

20.3

Gain on sale of available-for-sale securities

2,001


1,575


426

27.0

Other non-interest income

46,800


37,185


9,615

25.9

   Total non-interest income

233,821


220,393


13,428

6.1

Salaries and employee benefits

331,686


322,586


9,100

2.8

Occupancy and equipment

65,797


68,541


(2,744)

(4.0)

Loss on early termination of loss share agreements

17,798


-


17,798

 N/M 

Amortization of acquisition intangibles

8,415


7,811


604

7.7

Other non-interest expense

142,969


171,367


(28,398)

(16.6)

   Total non-interest expense

566,665


570,305


(3,640)

(0.6)

Income before income taxes

271,970


206,938


65,032

31.4

Income tax expense

85,193


64,094


21,099

32.9

   Net income

186,777


142,844


43,933

30.8

Preferred stock dividends

(7,977)


-


(7,977)

 N/M 

Net income available to common shareholders

$     178,800


$     142,844


35,956

25.2








Income available to common shareholders - basic

$     178,800


$     142,844


35,956

25.2

Earnings allocated to unvested restricted stock

(1,872)


(1,680)


(192)

11.4

Earnings allocated to common shareholders

$     176,928


$     141,164


35,764

25.3








Earnings per common share - basic

$           4.32


$           3.69


0.63

17.1








Earnings per common share - diluted

4.30


3.68


0.62

16.8

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

0.13


0.50


(0.37)

(74.0)

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

$           4.43


$           4.18


0.25

6.0








NUMBER OF COMMON SHARES OUTSTANDING (in thousands)







Weighted average common shares outstanding - basic

41,396


38,692


2,704

7.0

Weighted average common shares outstanding - diluted

41,106


38,310


2,796

7.3

Book value shares (period end)

44,795


41,140


3,655

8.9


(1)

See Table 12 and Table 13 for GAAP to Non-GAAP reconciliations.


N/M = not meaningful

 

TABLE 4 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)



















PERIOD-END BALANCES





Linked Qtr Change








Year/Year Change

ASSETS

12/31/2016


9/30/2016


$


%


6/30/2016


3/31/2016


12/31/2015


$


%

Cash and due from banks

$     295,896


$     327,799


(31,903)


(9.7)


$     288,141


$     300,207


$     241,650


54,246


22.4

Interest-bearing deposits in other banks

1,066,230


773,454


292,776


37.9


417,157


696,448


268,617


797,613


296.9

Total cash and cash equivalents

1,362,126


1,101,253


260,873


23.7


705,298


996,655


510,267


851,859


166.9

Investment securities available for sale

3,446,097


2,885,413


560,684


19.4


2,776,015


2,755,425


2,800,286


645,811


23.1

Investment securities held to maturity

89,216


90,653


(1,437)


(1.6)


92,904


96,117


98,928


(9,712)


(9.8)

Total investment securities

3,535,313


2,976,066


559,247


18.8


2,868,919


2,851,542


2,899,214


636,099


21.9

Mortgage loans held for sale

157,041


210,866


(53,825)


(25.5)


229,653


192,545


166,247


(9,206)


(5.5)

Loans, net of unearned income

15,064,971


14,924,499


140,472


0.9


14,722,561


14,451,244


14,327,428


737,543


5.1

Allowance for loan losses

(144,719)


(148,193)


3,474


(2.3)


(147,452)


(146,557)


(138,378)


(6,341)


4.6

Loans, net

14,920,252


14,776,306


143,946


1.0


14,575,109


14,304,687


14,189,050


731,202


5.2

Loss share receivable

-


24,406


(24,406)


(100.0)


29,224


33,564


39,878


(39,878)


(100.0)

Premises and equipment

306,373


308,932


(2,559)


(0.8)


311,173


314,615


323,902


(17,529)


(5.4)

Goodwill and other intangibles

759,823


761,206


(1,383)


(0.2)


763,387


768,235


765,655


(5,832)


(0.8)

Other assets

618,262


629,531


(11,269)


(1.8)


678,092


630,720


609,855


8,407


1.4

Total assets

$21,659,190


$20,788,566


870,624


4.2


$20,160,855


$20,092,563


$19,504,068


2,155,122


11.0



















LIABILITIES AND SHAREHOLDERS' EQUITY















Non-interest-bearing deposits

$  4,928,878


$  4,787,485


141,393


3.0


$  4,539,254


$  4,484,024


$  4,352,229


576,649


13.2

NOW accounts

3,314,281


2,904,835


409,446


14.1


2,985,284


2,960,562


2,974,176


340,105


11.4

Savings and money market accounts

7,033,917


6,646,694


387,223


5.8


6,188,245


6,736,146


6,727,720


306,197


4.6

Certificates of deposit

2,131,207


2,183,503


(52,296)


(2.4)


2,149,244


2,079,834


2,124,623


6,584


0.3

Total deposits

17,408,283


16,522,517


885,766


5.4


15,862,027


16,260,566


16,178,748


1,229,535


7.6

Short-term borrowings

175,000


360,000


(185,000)


(51.4)


477,620


195,000


110,000


65,000


59.1

Securities sold under agreements to repurchase

334,136


353,272


(19,136)


(5.4)


288,017


303,238


216,617


117,519


54.3

Trust preferred securities

120,110


120,110


0


-


120,110


120,110


120,110


0


-

Other long-term debt

508,843


552,328


(43,485)


(7.9)


567,326


478,814


220,337


288,506


130.9

Other liabilities

173,124


213,229


(40,105)


(18.8)


208,158


186,926


159,421


13,703


8.6

Total liabilities

18,719,496


18,121,456


598,040


3.3


17,523,258


17,544,654


17,005,233


1,714,263


10.1

Total shareholders' equity

2,939,694


2,667,110


272,584


10.2


2,637,597


2,547,909


2,498,835


440,859


17.6

Total liabilities and shareholders' equity

$21,659,190


$20,788,566


870,624


4.2


$20,160,855


$20,092,563


$19,504,068


2,155,122


11.0

 

TABLE 4 Continued - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)



















AVERAGE BALANCES





Linked Qtr Change








Year/Year Change

ASSETS

12/31/2016


9/30/2016


$


%


6/30/2016


3/31/2016


12/31/2015


$


%

Cash and due from banks

$     310,132


$     299,445


10,687


3.6


$     304,304


$     292,476


$     352,854


(42,722)


(12.1)

Interest-bearing deposits in other banks

930,524


536,741


393,783


73.4


386,139


365,709


319,302


611,222


191.4

Total cash and cash equivalents

1,240,656


836,186


404,470


48.4


690,443


658,185


672,156


568,500


84.6

Investment securities available for sale

3,192,040


2,825,030


367,010


13.0


2,823,292


2,797,320


2,829,825


362,215


12.8

Investment securities held to maturity

90,161


92,006


(1,845)


(2.0)


94,609


97,391


100,113


(9,952)


(9.9)

Total investment securities

3,282,201


2,917,036


365,165


12.5


2,917,901


2,894,711


2,929,938


352,263


12.0

Mortgage loans held for sale

226,565


219,369


7,196


3.3


211,468


160,873


169,616


56,949


33.6

Loans, net of unearned income

14,912,350


14,802,199


110,151


0.7


14,570,945


14,354,410


14,185,150


727,200


5.1

Allowance for loan losses

(150,499)


(149,101)


(1,398)


0.9


(149,037)


(141,393)


(135,209)


(15,290)


11.3

Loans, net

14,761,851


14,653,098


108,753


0.7


14,421,908


14,213,017


14,049,941


711,910


5.1

Loss share receivable

20,456


27,694


(7,238)


(26.1)


32,189


37,360


41,205


(20,749)


(50.4)

Premises and equipment

308,861


310,592


(1,731)


(0.6)


313,862


322,086


329,604


(20,743)


(6.3)

Goodwill and other intangibles

760,003


762,196


(2,193)


(0.3)


764,818


765,898


766,664


(6,661)


(0.9)

Other assets

615,666


666,657


(50,991)


(7.6)


651,328


609,181


592,042


23,624


4.0

Total assets

$21,216,259


$20,392,828


823,431


4.0


$20,003,917


$19,661,311


$19,551,166


1,665,093


8.5



















LIABILITIES AND SHAREHOLDERS' EQUITY















Non-interest-bearing deposits

$  4,869,095


$  4,605,447


263,648


5.7


$  4,463,928


$  4,388,259


$  4,459,980


409,115


9.2

NOW accounts

2,981,967


2,936,130


45,837


1.6


2,911,510


2,859,940


2,720,128


261,839


9.6

Savings and money market accounts

6,869,614


6,359,006


510,608


8.0


6,486,242


6,598,838


6,899,090


(29,476)


(0.4)

Certificates of deposit

2,172,967


2,176,159


(3,192)


(0.1)


2,117,711


2,098,032


2,213,557


(40,590)


(1.8)

Total deposits

16,893,643


16,076,742


816,901


5.1


15,979,391


15,945,069


16,292,755


600,888


3.7

Short-term borrowings

260,730


430,332


(169,602)


(39.4)


358,837


277,374


16,109


244,621


1,518.5

Securities sold under agreements to repurchase

342,953


302,119


40,834


13.5


265,465


217,296


224,255


118,698


52.9

Trust preferred securities

120,110


120,110


-


-


120,110


120,110


120,110


-


-

Other long-term debt

544,353


562,598


(18,245)


(3.2)


473,195


403,393


220,913


323,440


146.4

Other liabilities

300,768


239,911


60,857


25.4


203,050


167,810


186,382


114,386


61.4

Total liabilities

18,462,557


17,731,812


730,745


4.1


17,400,048


17,131,052


17,060,524


1,402,033


8.2

Total shareholders' equity

2,753,702


2,661,016


92,686


3.5


2,603,869


2,530,259


2,490,642


263,060


10.6

Total liabilities and shareholders' equity

$21,216,259


$20,392,828


823,431


4.0


$20,003,917


$19,661,311


$19,551,166


1,665,093


8.5

 


Table 5 - IBERIABANK CORPORATION

TOTAL LOANS AND ASSET QUALITY DATA

(Dollars in thousands)
























Linked Qtr Change








Year/Year Change

LOANS

12/31/2016


9/30/2016


$


%


6/30/2016


3/31/2016


12/31/2015


$


%

Commercial loans:


















Real estate

$  6,802,266


$  6,681,215


121,051


1.8


$  6,472,001


$  6,230,628


$  6,073,511


728,755


12.0

Commercial and Industrial

3,543,122


3,462,997


80,125


2.3


3,435,809


3,374,382


3,444,578


98,544


2.9

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

561,193


599,641


(38,448)


(6.4)


662,034


731,662


680,766


(119,573)


(17.6)

Total commercial loans

10,906,581


10,743,853


162,728


1.5


10,569,844


10,336,672


10,198,855


707,726


6.9



















Residential mortgage loans

1,267,400


1,270,530


(3,130)


(0.2)


1,249,062


1,208,391


1,195,319


72,081


6.0



















Consumer loans:


















Home equity

2,155,926


2,151,130


4,796


0.2


2,129,812


2,091,514


2,066,167


89,759


4.3

Indirect automobile

131,052


153,913


(22,861)


(14.9)


182,223


213,179


246,298


(115,246)


(46.8)

Automobile

147,662


152,972


(5,310)


(3.5)


156,597


164,868


169,571


(21,909)


(12.9)

Credit card

82,992


80,959


2,033


2.5


78,552


76,756


77,843


5,149


6.6

Other

373,358


371,142


2,216


0.6


356,471


359,864


373,375


(17)


0.0

Total consumer loans

2,890,990


2,910,116


(19,126)


(0.7)


2,903,655


2,906,181


2,933,254


(42,264)


(1.4)

Total loans

$15,064,971


$14,924,499


140,472


0.9


$14,722,561


$14,451,244


$14,327,428


737,543


5.1



















Allowance for loan losses

$    (144,719)


$    (148,193)


3,474


(2.3)


$    (147,452)


$    (146,557)


$    (138,378)


(6,341)


4.6

Loans, net

14,920,252


14,776,306


143,946


1.0


14,575,109


14,304,687


14,189,050


731,202


5.2



















Reserve for unfunded commitments

(11,241)


(11,990)


749


(6.2)


(13,826)


(14,033)


(14,145)


2,904


(20.5)

Allowance for credit losses

(155,960)


(160,183)


4,223


(2.6)


(161,278)


(160,590)


(152,523)


(3,437)


2.3



















ASSET QUALITY DATA

















Non-accrual loans (2)

$     228,501


$     235,521


(7,020)


(3.0)


$     101,738


$       98,588


$       56,349


172,152


305.5

Other real estate owned and foreclosed assets

21,199


22,085


(886)


(4.0)


27,220


31,411


34,131


(12,932)


(37.9)

Accruing loans more than 90 days past due (2)

1,386


5,233


(3,847)


(73.5)


751


385


915


471


51.5

Total non-performing assets

$     251,086


$     262,839


(11,753)


(4.5)


$     129,709


$     130,384


$       91,395


159,691


174.7





































Loans 30-89 days past due

$       28,869


$       45,125


(16,256)


(36.0)


$       50,592


$       49,071


$       25,176


3,693


14.7



















Non-performing assets to total assets

1.16%


1.26%






0.64%


0.65%


0.47%





Non-performing assets to total loans and OREO

1.66


1.76






0.88


0.90


0.64





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

63.0


61.6






143.9


148.1


241.6





Allowance for loan losses to non-performing assets

57.6


56.4






113.7


112.4


151.4





Allowance for loan losses to total loans

0.96


0.99






1.00


1.01


0.97























Quarter-to-date charge-offs

$         9,785


$       11,500


(1,715)


(14.9)


$       12,994


$         5,560


$         4,277


5,508


128.8

Quarter-to-date recoveries

(2,135)


(1,277)


(858)


67.2


(1,071)


(1,551)


(1,358)


(777)


57.2

Quarter-to-date net charge-offs

$         7,650


$       10,223


(2,573)


(25.2)


$       11,923


$         4,009


$         2,919


4,731


162.1



















Net charge-offs to average loans (annualized)

0.21%


0.28%






0.33%


0.11%


0.08%







(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)

The allowance for loan losses includes impairment reserves attributable to acquired impaired loans.

(3)

For purposes of this table, non-accrual and past due loans exclude acquired impaired loans accounted for under ASC 310-30 that are currently accruing income.

(4)

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

 


Table 6 - IBERIABANK CORPORATION

LEGACY LOANS AND LEGACY ASSET QUALITY DATA

(Dollars in thousands)
























Linked Qtr Change








Year/Year Change

LEGACY LOANS

12/31/2016


9/30/2016


$


%


6/30/2016


3/31/2016


12/31/2015


$


%

Commercial loans:


















Real estate

$  5,623,314


$  5,419,483


203,831


3.8


$  5,097,689


$  4,771,690


$  4,504,062


1,119,252


24.8

Commercial and Industrial

3,194,796


3,101,472


93,324


3.0


3,027,590


2,926,686


2,952,102


242,694


8.2

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

559,289


598,279


(38,990)


(6.5)


659,510


728,778


677,177


(117,888)


(17.4)

Total commercial loans

9,377,399


9,119,234


258,165


2.8


8,784,789


8,427,154


8,133,341


1,244,058


15.3



















Residential mortgage loans

854,216


840,082


14,134


1.7


794,701


730,621


694,023


160,193


23.1



















Consumer loans:


















Home equity

1,783,421


1,755,295


28,126


1.6


1,695,113


1,625,812


1,575,643


207,778


13.2

Indirect automobile

131,048


153,904


(22,856)


(14.9)


182,199


213,141


246,214


(115,166)


(46.8)

Automobile

138,638


143,355


(4,717)


(3.3)


146,394


153,732


157,579


(18,941)


(12.0)

Credit card

82,524


80,452


2,072


2.6


78,044


76,247


77,261


5,263


6.8

Other

327,678


321,048


6,630


2.1


303,609


301,990


306,459


21,219


6.9

Total consumer loans

2,463,309


2,454,054


9,255


0.4


2,405,359


2,370,922


2,363,156


100,153


4.2

Total loans

$12,694,924


$12,413,370


281,554


2.3


$11,984,849


$11,528,697


$11,190,520


1,504,404


13.4














-





Allowance for loan losses

$   (105,569)


$   (108,889)


3,320


(3.0)


$   (106,861)


$   (105,574)


$   (93,808)


(11,761)


12.5

Loans, net

12,589,355


12,304,481


284,874


2.3


11,877,988


11,423,123


11,096,712


1,492,643


13.5



















Reserve for unfunded commitments

(11,241)


(11,990)


749


(6.2)


(13,826)


(14,033)


(14,145)


2,904


(20.5)

Allowance for credit losses

(116,810)


(120,879)


4,069


(3.4)


(120,687)


(119,607)


(107,953)


(8,857)


8.2



















ASSET QUALITY DATA

















Non-accrual loans

$     221,543


$     227,122


(5,579)


(2.5)


$       95,096


$       93,429


$       50,928


170,615


335.0

Other real estate owned and foreclosed assets

9,264


11,538


(2,274)


(19.7)


14,478


17,662


16,491


(7,227)


(43.8)

Accruing loans more than 90 days past due

1,104


4,936


(3,832)


(77.6)


353


125


624


480


76.9

Total non-performing assets

$     231,911


$     243,596


(11,685)


(4.8)


$     109,927


$     111,216


$       68,043


163,868


240.8



















Loans 30-89 days past due

$        24,902


$       41,157


(16,255)


(39.5)


$       45,906


$       42,454


$       20,109


4,793


23.8



















Non-performing assets to total assets

1.20%


1.33%






0.63%


0.65%


0.42%





Non-performing assets to total loans and OREO

1.83


1.96






0.92


0.96


0.61





Allowance for loan losses to non-performing loans (2)

47.4


46.9






112.0


112.9


182.0





Allowance for loan losses to non-performing assets

45.5


44.7






97.2


94.9


137.9





Allowance for loan losses to total loans

0.83


0.88






0.89


0.92


0.84























Quarter-to-date charge-offs

$         9,496


$       11,201


(1,705)


(15.2)


$       11,969


$         5,389


$         3,705


5,791


156.3

Quarter-to-date recoveries

(1,910)


(1,102)


(808)


73.3


(775)


(1,247)


(1,145)


(765)


66.8

Quarter-to-date net charge-offs

$         7,586


$       10,099


(2,513)


(24.9)


$       11,194


$         4,142


$         2,560


5,026


196.3

Net charge-offs to average loans (annualized)

0.24%


0.33%






0.38%


0.15%


0.09%







(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)

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

 


Table 7 - IBERIABANK CORPORATION

ACQUIRED LOANS AND ACQUIRED ASSET QUALITY DATA

(Dollars in thousands)
























Linked Qtr Change








Year/Year Change

ACQUIRED LOANS

12/31/2016


9/30/2016


$


%


6/30/2016


3/31/2016


12/31/2015


$


%

Commercial loans:


















Real estate

$  1,178,952


$1,261,732


(82,780)


(6.6)


$1,374,312


$1,458,938


$  1,569,449


(390,497)


(24.9)

Commercial and Industrial

348,326


361,525


(13,199)


(3.7)


408,219


447,696


492,476


(144,150)


(29.3)

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

1,904


1,362


542


39.8


2,524


2,884


3,589


(1,685)


(46.9)

      Total commercial loans

1,529,182


1,624,619


(95,437)


(5.9)


1,785,055


1,909,518


2,065,514


(536,332)


(26.0)



















Residential mortgage loans

413,184


430,448


(17,264)


(4.0)


454,361


477,770


501,296


(88,112)


(17.6)



















Consumer loans:


















   Home equity

372,505


395,835


(23,330)


(5.9)


434,699


465,702


490,524


(118,019)


(24.1)

   Indirect automobile

4


9


(5)


(55.6)


24


38


84


(80)


(95.2)

   Automobile

9,024


9,617


(593)


(6.2)


10,203


11,136


11,992


(2,968)


(24.7)

   Credit card

468


507


(39)


(7.7)


508


509


582


(114)


(19.6)

   Other

45,680


50,094


(4,414)


(8.8)


52,862


57,874


66,916


(21,236)


(31.7)

      Total consumer loans

427,681


456,062


(28,381)


(6.2)


498,296


535,259


570,098


(142,417)


(25.0)

      Total loans

$  2,370,047


$2,511,129


(141,082)


(5.6)


$2,737,712


$2,922,547


$  3,136,908


(766,861)


(24.4)



















Allowance for loan losses (2)

$     (39,150)


$    (39,304)


154


(0.4)


$    (40,591)


$    (40,983)


$     (44,570)


5,420


(12.2)

   Loans, net

2,330,897


2,471,825


(140,928)


(5.7)


2,697,121


2,881,564


3,092,338


(761,441)


(24.6)



















ACQUIRED ASSET QUALITY DATA (3)
















Non-accrual loans

$         6,958


$       8,399


(1,441)


(17.2)


$       6,642


$       5,159


$         5,421


1,537


28.4

Other real estate owned and foreclosed assets

11,935


10,547


1,388


13.2


12,742


13,749


17,640


(5,705)


(32.3)

Accruing loans more than 90 days past due

282


297


(15)


(5.1)


398


260


291


(9)


(3.1)

Total non-performing assets

$       19,175


$     19,243


(68)


(0.4)


$     19,782


$     19,168


$       23,352


(4,177)


(17.9)



















Loans 30-89 days past due

$         3,967


$       3,968


(1)


-


$       4,686


$       6,617


$        5,067


(1,100)


(21.7)



















Non-performing assets to total assets

0.81%


0.76%






0.72%


0.65%


0.73%





Non-performing assets to total loans and OREO

0.81


0.76






0.72


0.65


0.74





Allowance for loan losses to non-performing loans

540.7


452.0






576.6


756.3


780.3





Allowance for loan losses to non-performing assets

204.2


204.3






205.2


213.8


190.9





Allowance for loan losses to total loans

1.65


1.57






1.48


1.40


1.42























Quarter-to-date charge-offs

$            289


$          299


(10)


(3.3)


$       1,025


$         171


$            572


(283)


(49.5)

Quarter-to-date recoveries

(225)


(175)


(50)


28.6


(296)


(304)


(213)


(12)


5.6

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

$              64


$          124


(60)


(48.4)


$          729


$         (133)


$            359


(295)


(82.2)



















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

0.01%


0.02%






0.10%


(0.02%)


0.04%







(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)

The allowance for loan losses includes impairment reserves attributable to acquired impaired loans.

(3)

Acquired non-performing loans exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans.

 


Table 8 - IBERIABANK CORPORATION

ENERGY-RELATED LOANS AND ASSET QUALITY DATA

(Dollars in thousands)






































Linked Qtr Change








Year/Year Change

ENERGY-RELATED LOANS: (1)

12/31/2016


9/30/2016


$


%


6/30/2016


3/31/2016


12/31/2015


$


%

E&P

$     290,711


$     301,223


(10,512)


(3.5)


$     328,066


$     369,725


$     314,381


(23,670)


(7.5)

Midstream

90,120


110,821


(20,701)


(18.7)


123,687


130,556


116,623


(26,503)


(22.7)

Service

180,362


187,597


(7,235)


(3.9)


210,281


231,381


249,762


(69,400)


(27.8)

Total energy-related loans

$     561,193


$     599,641


(38,448)


(6.4)


$     662,034


$     731,662


$     680,766


(119,573)


(17.6)



















ENERGY-RELATED COMMITMENTS:


















E&P

$     545,061


$     545,383


(322)


(0.1)


$     572,267


$     677,258


$     717,109


(172,048)


(24.0)

Midstream

182,998


198,618


(15,620)


(7.9)


201,555


206,504


204,326


(21,328)


(10.4)

Service

241,740


261,450


(19,710)


(7.5)


295,591


329,282


369,751


(128,011)


(34.6)

Total energy-related commitments

$     969,799


$  1,005,451


(35,652)


(3.5)


$  1,069,413


$  1,213,044


$  1,291,186


(321,387)


(24.9)



















Total loans net of unearned income

$15,064,971


$14,924,499


140,472


0.9


$14,722,561


$14,451,244


$14,327,428


737,543


5.1

Energy outstandings as a % of total loans

3.7%


4.0%






4.5%


5.1%


4.8%





Energy commitments as a % of total commitments

4.8%


5.1%






5.4%


6.3%


6.8%























Allowance for loan losses

$      (22,524)


$      (28,215)


5,691


(20.2)


$      (33,040)


$      (38,495)


$      (23,987)


1,463


(6.1)

Reserve for unfunded commitments

(1,003)


(953)


(50)


5.2


(2,223)


(903)


(2,666)


1,663


(62.4)

Allowance for credit losses

(23,527)


(29,168)


5,641


(19.3)


(35,263)


(39,398)


(26,653)


3,126


(11.7)








-










-

ASSET QUALITY DATA






-










-

Non-accrual loans

$     150,329


$     153,620


(3,291)


(2.1)


$       60,814


$       46,223


$         8,449


141,880


1,679.3

Other real estate owned and foreclosed assets

-


-


-


-


-


-


-


-


-

Accruing loans more than 90 days past due

-


-


-


-


-


-


-


-


-

Total non-performing assets

$     150,329


$     153,620


(3,291)


(2.1)


$       60,814


$       46,223


$         8,449


141,880


1,679.3



















Loans 30-89 days past due

$         1,526


$               -


1,526


100


$         3,055


$               -


$              15


1,511


10,073.3



















Non-performing assets to total energy-related loans and OREO

26.79%


25.62%






9.19%


6.32%


1.24%





Allowance for loan losses to non-performing loans (2)

15.0


18.4






54.3


83.3


283.9





Allowance for loan losses to non-performing assets

15.0


18.4






54.3


83.3


283.9





Allowance for loan losses to total energy-related loans

4.01


4.71






4.99


5.26


3.52























Quarter-to-date charge-offs

$         2,321


$         6,957






$         7,715


$               -


$               -





Quarter-to-date recoveries

(840)


-






-


-


-





Quarter-to-date net charge-offs

$         1,481


$         6,957






$         7,715


$               -


$               -





Net charge-offs to average loans (annualized)

1.02%


4.39%






4.44%


0.00%


0.00%







(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)

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

 




TABLE 9 - IBERIABANK CORPORATION



QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES



(Dollars in thousands)
















For the Three Months Ended





12/31/2016


9/30/2016


Basis Point

Change

ASSETS

Average Balance

Interest Income/Expense


Yield/Rate


Average Balance

Interest Income/Expense


Yield/Rate


Yield/Rate

Earning assets:












Commercial loans

$         10,759,264

$             114,694


4.22%


$         10,646,874

$             116,653


4.34%


(12)

Residential mortgage loans

1,267,413

14,038


4.43


1,254,665

13,718


4.37


6

Consumer loans

2,885,673

36,960


5.10


2,900,660

37,413


5.13


(3)

Total loans

14,912,350

165,692


4.41


14,802,199

167,784


4.50


(9)

Loss share receivable

20,456

(3,539)


(67.70)


27,694

(3,935)


(55.61)


(1,209)

Total loans and loss share receivable

14,932,806

162,153


4.31


14,829,893

163,849


4.39


(8)

Mortgage loans held for sale

226,565

1,539


2.72


219,369

1,774


3.24


(52)

Investment securities (2)

3,154,252

15,464


2.09


2,830,892

13,815


2.09


-

Other earning assets

1,034,980

1,649


0.63


641,080

1,066


0.66


(3)

Total earning assets

19,348,603

180,805


3.73


18,521,234

180,504


3.89


(16)

Allowance for loan losses

(150,499)





(149,101)






Non-earning assets

2,018,155





2,020,695






Total assets

$         21,216,259





$         20,392,828


















LIABILITIES AND SHAREHOLDERS' EQUITY











Interest-bearing liabilities:












NOW accounts

$           2,981,967

2,483


0.33


$           2,936,130

2,313


0.31


2

Savings and money market accounts

6,869,614

7,732


0.45


6,359,006

5,826


0.36


9

Certificates of deposit

2,172,967

4,785


0.88


2,176,159

4,592


0.84


4

Total interest-bearing deposits (3)

12,024,548

15,000


0.50


11,471,295

12,731


0.44


6

Short-term borrowings

603,683

552


0.36


732,451

753


0.40


(4)

Long-term debt

664,463

3,588


2.11


682,708

3,603


2.06


5

Total interest-bearing liabilities

13,292,694

19,140


0.57


12,886,454

17,087


0.53


4

Non-interest-bearing deposits

4,869,095





4,605,447






Non-interest-bearing liabilities

300,768





239,911






Total liabilities

18,462,557





17,731,812






Total shareholders' equity

2,753,702





2,661,016






Total liabilities and shareholders' equity

$         21,216,259





$         20,392,828


















Net interest income/Net interest spread

$             161,665


3.16%



$             163,417


3.36%


(20)

Tax-equivalent benefit


2,392


0.05



2,378


0.05


-

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


$             164,057


3.34%



$             165,795


3.53%


(19)



(1)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 35%, which approximates the marginal tax rate.

(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 December 31, 2016 and September 30, 2016 total 0.35% and 0.32%, respectively.

 


TABLE 9 Continued - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)














For the Three Months Ended


6/30/2016


3/31/2016


12/31/2015

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

$10,458,822

$             114,588

4.39%


$10,250,555

$             113,417

4.43%


$10,062,680

$             114,153

4.50%

Residential mortgage loans

1,221,254

13,781

4.51


1,202,692

13,429

4.47


1,193,488

12,819

4.30

Consumer loans

2,890,869

37,200

5.18


2,901,163

37,145

5.15


2,928,982

36,553

4.95

Total loans

14,570,945

165,569

4.55


14,354,410

163,991

4.58


14,185,150

163,525

4.57

Loss share receivable

32,189

(4,163)

(51.16)


37,360

(4,386)

(46.44)


41,205

(4,490)

(42.63)

Total loans and loss share receivable

14,603,134

161,406

4.43


14,391,770

159,605

4.45


14,226,355

159,035

4.44

Mortgage loans held for sale

211,468

1,850

3.50


160,873

1,401

3.48


169,616

1,422

3.35

Investment securities (2)

2,856,805

14,663

2.18


2,866,974

15,212

2.25


2,901,388

15,149

2.21

Other earning assets

483,597

775

0.64


453,737

718

0.64


390,571

1,045

1.06

Total earning assets

18,155,004

178,694

3.97


17,873,354

176,936

3.99


17,687,930

176,651

3.99

Allowance for loan losses

(149,037)




(141,393)




(135,209)



Non-earning assets

1,997,950




1,929,350




1,998,445



Total assets

$20,003,917




$19,661,311




$19,551,166















LIABILITIES AND SHAREHOLDERS' EQUITY











Interest-bearing liabilities:












NOW accounts

$  2,911,510

2,080

0.29


$  2,859,940

1,940

0.27


$  2,720,128

1,861

0.27

Savings and money market accounts

6,486,242

5,527

0.34


6,598,838

5,640

0.34


6,899,090

6,172

0.35

Certificates of deposit

2,117,711

4,309

0.82


2,098,032

4,354

0.83


2,213,557

4,727

0.85

Total interest-bearing deposits (3)

11,515,463

11,916

0.42


11,556,810

11,934

0.42


11,832,775

12,760

0.43

Short-term borrowings

624,302

662

0.42


494,670

485

0.39


240,365

98

0.16

Long-term debt

593,305

3,363

2.24


523,503

3,114

2.35


341,022

2,633

3.02

Total interest-bearing liabilities

12,733,070

15,941

0.50


12,574,983

15,533

0.49


12,414,162

15,491

0.49

Non-interest-bearing deposits

4,463,928




4,388,259




4,459,980



Non-interest-bearing liabilities

203,050




167,810




186,382



Total liabilities

17,400,048




17,131,052




17,060,524



Total shareholders' equity

2,603,869




2,530,259




2,490,642



Total liabilities and shareholders' equity

$20,003,917




$19,661,311




$19,551,166















Net interest income/Net interest spread

$             162,753

3.47%



$             161,403

3.50%



$             161,160

3.50%

Tax-equivalent benefit


2,332

0.05%



2,361

0.05%



2,384

0.05%

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


$             165,085

3.61%



$             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 rate of 35%, which approximates the marginal tax rate.

(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 June 30, 2016, March 31, 2016 and December 31, 2015 total 0.30%, 0.30% and 0.31%, respectively.

 


TABLE 10 - IBERIABANK CORPORATION

YEAR-TO-DATE AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)












For the Years Ended


12/31/2016


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

$         10,529,830

$            459,352

4.34%


$           9,292,251

$            411,351

4.42%


(8)

Residential mortgage loans

1,236,640

54,966

4.44


1,165,524

53,948

4.63


(19)

Consumer loans

2,894,584

148,718

5.14


2,815,554

141,667

5.03


11

Total loans

14,661,054

663,036

4.51


13,273,329

606,966

4.57


(6)

Loss share receivable

29,396

(16,023)

(53.62)


52,494

(23,500)

(44.15)


(947)

Total loans and loss share receivable

14,690,450

647,013

4.39


13,325,823

583,466

4.38


1

Mortgage loans held for sale

204,669

6,564

3.21


176,793

6,164

3.49


(28)

Investment securities (2)

2,927,588

59,154

2.15


2,595,806

53,165

2.17


(2)

Other earning assets

654,357

4,208

0.64


553,629

4,063

0.73


(9)

Total earning assets

18,477,064

716,939

3.89


16,652,051

646,858

3.90


(1)

Allowance for loan losses

(147,520)




(130,808)





Non-earning assets

1,991,690




1,881,463





Total assets

$         20,321,234




$         18,402,706















LIABILITIES AND SHAREHOLDERS' EQUITY









Interest-bearing liabilities:










NOW accounts

$           2,922,587

8,816

0.30


$           2,620,570

6,903

0.26


4

Savings and money market accounts

6,578,622

24,725

0.38


6,274,498

21,063

0.34


4

Certificates of deposit

2,141,399

18,040

0.84


2,260,237

19,137

0.85


(1)

Total interest-bearing deposits (3)

11,642,608

51,581

0.44


11,155,305

47,103

0.42


2

Short-term borrowings

614,073

2,452

0.39


426,011

797

0.18


21

Long-term debt

616,309

13,668

2.18


388,220

11,200

2.85


(67)

Total interest-bearing liabilities

12,872,990

67,701

0.52


11,969,536

59,100

0.49


3

Non-interest-bearing deposits

4,582,533




3,996,821





Non-interest-bearing liabilities

228,117




175,315





Total liabilities

17,683,640




16,141,672





Total shareholders' equity

2,637,594




2,261,034





Total liabilities and shareholders' equity

$         20,321,234




$         18,402,706















Net interest income/Net interest spread

$             649,238

3.37%



$             587,758

3.41%


(4)

Tax-equivalent benefit


9,463

0.05



8,604

0.05


-

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


$             658,701

3.53%



$             596,362

3.55%


(2)



(1)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 35%, which approximates the marginal tax rate.

(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 years ended December 30, 2016 and 2015 total 0.32% and 0.31%, respectively .

 

Table 11 - IBERIABANK CORPORATION

LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS

(Dollars in millions)






















For the Three Months Ended


12/31/2016


9/30/2016


6/30/2016


3/31/2016


12/31/2015

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

$                    125

$                  12,481

3.95%


$   123

$                12,183

3.97%


$   118

$                11,737

4.00%


$   115

$                11,319

4.02%


$   109

$                10,949

3.92%

Acquired loans (1)

37

2,452

5.93


41

2,647

6.10


43

2,866

6.01


45

3,073

5.84


50

3,277

5.97

Total loans

$                    162

$                  14,933

4.27%


$   164

$                14,830

4.35%


$   161

$                14,603

4.39%


$   160

$                14,392

4.41%


$   159

$                14,226

4.39%






















12/31/2016


9/30/2016


6/30/2016


3/31/2016


12/31/2015

ADJUSTMENTS

Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield

Legacy loans, net

$                        -

$                          -

0.00%


$        -

$                        -

0.00%


$        -

$                        -

0.00%


$        -

$                        -

0.00%


$      -

$                        -

0.00%

Acquired loans (1)

(8)

73

(1.47)


(9)

76

(1.49)


(9)

84

(1.33)


(7)

86

(1.04)


(11)

87

(1.41)

Total loans

$                       (8)

$                         73

(0.24%)


$      (9)

$                       76

(0.27%)


$      (9)

84

(0.26%)


$      (7)

$                       86

(0.21%)


$    (11)

$                       87

(0.33%)






















12/31/2016


9/30/2016


6/30/2016


3/31/2016


12/31/2015

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

$                    125

$                  12,481

3.95%


$   123

$                12,183

3.97%


$   118

$                11,737

4.00%


$   115

$                11,319

4.02%


$   109

$                10,949

3.92%

Acquired loans (1)

29

2,525

4.46


32

2,723

4.61


34

2,950

4.68


38

3,159

4.80


39

3,364

4.56

Total loans

$                    154

$                  15,006

4.03%


$   155

$                14,906

4.08%


$   152

$                14,687

4.13%


$   153

$                14,478

4.20%


$   148

$                14,313

4.06%


(1)

Acquired loans include the impact of the FDIC Indemnification Asset.

 

Table 12 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)




















For the Three Months Ended


12/31/2016


9/30/2016


6/30/2016


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

$  58,164


$        45,130


1.06


$  72,615


$        48,068


1.17


$76,300


$        50,810


1.23

Preferred stock dividends

-


(957)


(0.02)


-


(3,590)


(0.09)


-


(854)


(0.02)

Income available to common shareholders (GAAP)

58,164


44,173


1.04


72,615


44,478


1.08


76,300


49,956


1.21



















Non-interest income adjustments:


















Gain on sale of investments and other non-interest income

(5)


(3)


-


(12)


(8)


-


(1,789)


(1,163)


(0.03)



















Non-interest expense adjustments:


















Merger-related expense

-


-


-


-


-


-


-


-


-

Severance expense

188


122


-


-


-


-


140


91


-

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

(462)


(300)


(0.01)


-


-


-


(1,256)


(816)


(0.02)

Loss on early termination of loss share agreements

17,798


11,569


0.28


-


-


-


-


-


-

Other non-core non-interest expense

484


314


0.01


-


-


-


1,177


765


0.02

Total non-interest expense adjustments

18,008


11,705


0.28


-


-


-


61


40


-

Income tax benefits

-


(6,836)


(0.16)


-


-


-


-


-


-

Core earnings (Non-GAAP)

76,167


49,039


1.16


72,603


44,470


1.08


74,572


48,833


1.18

Provision for loan losses

5,169


3,360


0.08


12,484


8,115


0.20


11,866


7,712


0.19

Core pre-provision earnings (Non-GAAP)

$  81,336


$        52,399


$           1.24


$  85,087


$        52,585


$         1.28


$86,438


$        56,545


$           1.37




















For the Three Months Ended








3/31/2016


12/31/2015








Pre-tax


After-tax (1)


Per share (2)


Pre-tax


After-tax (1)


Per share (2)







Net income

$  64,891


$        42,769


1.03


62,977


$        44,407


1.08







Preferred stock dividends

-


(2,576)


(0.06)


-


-


-







Income available to common shareholders (GAAP)

64,891


40,193


0.97


62,977


44,407


1.08

























Non-interest income adjustments:


















Gain on sale of investments and other non-interest income

(196)


(127)


-


(157)


(102)


-








-


-




-


-









Non-interest expense adjustments:

-


-




-


-









Merger-related expense

3


2


-


(166)


(108)


-







Severance expense

454


295


0.01


1,842


1,197


0.03







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

1,044


679


0.01


3,396


2,207


0.05







Other non-core non-interest expense

1,091


709


0.02


(208)


(135)


-







Total non-interest expense adjustments

2,592


1,685


0.04


4,864


3,161


0.08







Income tax benefits

-


-


-


-


(2,041)


(0.05)







Core earnings (Non-GAAP)

67,287


41,751


1.01


67,684


45,425


1.11







Provision for loan losses

14,905


9,688


0.24


11,711


7,612


0.19







Core pre-provision earnings  (Non-GAAP)

$  82,192


$        51,439


$           1.25


$  79,395


$        53,037


$         1.30












































For the Years Ended








12/31/2016


12/31/2015








Pre-tax


After-tax (1)


Per share (2)


Pre-tax


After-tax (1)


Per share (2)







Net income

$271,970


$      186,777


$           4.49


206,938


142,844


3.68







Preferred stock dividends

-


(7,977)


(0.19)


-


-


-







Income available to common shareholders (GAAP)

271,970


178,800


4.30


206,938


142,844


3.68

























Non-interest income adjustments:


















Gain on sale of investments and other non-interest income

(2,002)


(1,301)


(0.03)


(4,033)


(2,621)


(0.07)

























Non-interest expense adjustments:


















Merger-related expense

3


2


-


24,074


15,861


0.41







Severance expense

782


508


0.01


2,593


1,686


0.04







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

(674)


(437)


(0.01)


7,259


4,717


0.12







Loss on early termination of loss share agreements

17,798


11,569


0.28


-


-


-







Debt prepayment

-


-


-


1,262


820


0.02







Other non-core non-interest expense

2,752


1,788


0.04


1,272


827


0.02







Total non-interest expense adjustments

20,661


13,430


0.32


36,460


23,911


0.62







Income tax benefits

-


(6,836)


(0.16)


-


(2,041)


(0.05)







Core earnings (Non-GAAP)

290,629


184,093


4.43


239,365


162,093


4.18







Provision for loan losses

44,424


28,875


0.71


30,908


20,090


0.52







Core pre-provision earnings (Non-GAAP)

$335,053


$      212,968


$           5.14


$270,273


$      182,183


$         4.70

























(1)

After-tax amounts, excluding preferred stock dividends, are calculated using a tax rate of 35%, which approximates the marginal tax rate.

(2)

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

 


Table 13 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)












For the Three Months Ended


12/31/2016


9/30/2016


6/30/2016


3/31/2016


12/31/2015

Net interest income (GAAP)

$     161,665


$     163,417


$     162,753


$     161,403


$     161,160

Add: Effect of tax benefit on interest income

2,392


2,378


2,332


2,361


2,384

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

164,057


165,795


165,085


163,764


163,544











Non-interest income (GAAP)

53,238


59,821


64,917


55,845


52,503

Add: Effect of tax benefit on non-interest income

713


703


760


647


590

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

53,951


60,524


65,677


56,492


53,093

Taxable equivalent revenues (Non-GAAP) (1)

218,008


226,319


230,762


220,256


216,637

Securities gains and other non-interest income

(5)


(12)


(1,789)


(196)


(157)

Core taxable equivalent revenues (Non-GAAP) (1)

$     218,003


$     226,307


$     228,973


$     220,060


$     216,480











Total non-interest expense (GAAP)

$     151,570


$     138,139


$     139,504


$     137,452


$     138,975

Less: Intangible amortization expense

2,087


2,106


2,109


2,113


1,795

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

149,483


136,033


137,395


135,339


137,180

Less: Merger-related expense

-


-


-


3


(166)

Severance expense

188


-


140


454


1,842

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

(462)


-


(1,256)


1,044


3,396

Loss on early termination of loss share agreements

17,798


-


-


-


-

Other non-core non-interest expense

484


-


1,177


1,091


(208)

Core tangible non-interest expense (Non-GAAP) (2)

$     131,475


$     136,033


$     137,334


$     132,747


$     132,316











Return on average assets (GAAP)

0.85%


0.94%


1.02%


0.87%


0.90%

Effect of non-core revenues and expenses

0.09


0.00


(0.02)


0.03


0.02

Core return on average assets (Non-GAAP)

0.94%


0.94%


1.00%


0.90%


0.92%











Efficiency ratio (GAAP)

70.5%


61.9%


61.3%


63.3%


65.0%

Effect of tax benefit related to tax-exempt income

(1.0)


(0.9)


(0.8)


(0.9)


(0.8)

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

69.5%


61.0%


60.5%


62.4%


64.2%

Effect of amortization of intangibles

(1.0)


(0.9)


(0.9)


(1.0)


(0.8)

Effect of non-core items

(8.2)


-


0.4


(1.1)


(2.3)

Core tangible efficiency ratio (TE) (Non-GAAP) (1) (2)

60.3%


60.1%


60.0%


60.3%


61.1%











Return on average common equity (GAAP)

6.70%


7.00%


8.05%


6.59%


7.30%

Effect of intangibles (2)

3.01


3.30


3.85


3.30


3.65

Effect of non-core revenues and expenses

1.04


-


(0.26)


0.37


0.25

Core return on average tangible common equity (Non-GAAP) (2)

10.75%


10.30%


11.64%


10.26%


11.20%











Total shareholders' equity (GAAP)

$  2,939,694


$  2,667,110


$  2,637,597


$  2,547,909


$  2,498,835

Less:  Goodwill and other intangibles

755,765


757,856


759,966


764,730


761,871

Preferred stock

132,097


132,097


132,098


76,812


76,812

Tangible common equity (Non-GAAP) (2)

$  2,051,832


$  1,777,157


$  1,745,533


$  1,706,367


$  1,660,152











Total assets (GAAP)

$21,659,190


$20,788,566


$20,160,855


$20,092,563


$19,504,068

Less:  Goodwill and other intangibles

755,765


757,856


759,966


764,730


761,871

Tangible assets (Non-GAAP) (2)

$20,903,425


$20,030,710


$19,400,889


$19,327,833


$18,742,197

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

9.82%


8.87%


9.00%


8.83%


8.86%



(1)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 35%, which approximates the marginal tax rate.

(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; or John R. Davis, Senior Executive Vice President, (337) 521-4005