/C O R R E C T I O N -- IBERIABANK Corporation/

In the news release, IBERIABANK Corporation Reports First Quarter Results, issued 27-Apr-2017 by IBERIABANK Corporation over PR Newswire, we are advised by the company that the "Highlights for the first quarter of 2017 and at March 31, 2017:" bulleted section, in the second sentence of the first bullet, should read "...cash net interest margins of 15 and 11 basis points, respectively." rather than "...cash net interest margins of 15 and 14 basis points, respectively." as originally issued inadvertently. The complete, corrected release follows:

IBERIABANK Corporation Reports First Quarter Results

LAFAYETTE, La., April 27, 2017 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 130-year-old IBERIABANK (www.iberiabank.com), reported financial results for the quarter ended March 31, 2017.  For the quarter, the Company reported income available to common shareholders of $46.9 million, or $1.00 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 first quarter of 2017 was $1.02 per common share (refer to press release supplemental tables for a reconciliation of GAAP to non-GAAP metrics), which exceeded consensus analyst expectations.

Daryl G. Byrd, President and Chief Executive Officer, commented, "Many events transpired this quarter as we expected and as we communicated to our investors last quarter. First, asset quality statistics associated with our energy-related loans continued to show significant improvements this quarter, and energy-related loans grew slightly during the first quarter.  Second, we are well-positioned for rising short-term interest rates, and the Federal Reserve's short-term rate increases in December 2016 and March 2017 resulted in a rebound in our margin and significant improvement in net interest income this quarter. We expect these benefits to continue into future quarters as well.  Third, we anticipated our loan growth would slow during the first quarter, due in part to typical seasonal trends, and we expected a portion of the massive inflow of deposits that we experienced in the final quarter of 2016 would begin to flow out during the first quarter of 2017. While some deposit outflow occurred as expected, we maintained a considerable amount of excess liquidity throughout the quarter.  Finally, in December 2016, we issued and sold common equity with the expectation we would find an excellent investment opportunity in which we could deploy that capital. With our recently signed agreement to acquire Sabadell United Bank, we now have an excellent opportunity in which to deploy that capital, as well as capital raised in March 2017 when we issued and sold additional common shares. We are very excited to partner with the team at Sabadell United and double the size of our Florida franchise."

Byrd continued, "Our financial performance in the first quarter of 2017 has started off well this year. During the first quarter, we experienced favorable average earning asset growth and a tremendous improvement in the net interest margin. We achieved our strongest first quarter EPS in nine years, and we achieved record first quarter core EPS. Those results were achieved despite the 11-cent negative EPS carrying cost in this quarter associated with the two common stock sales. Our core return on average assets was 0.96% in the first quarter, an improvement of six basis points compared to the same quarter last year, and despite the traditional seasonal slowness in our fee income businesses. We are still carrying a significant amount of capital and liquidity, which once deployed, should further enhance our financial performance."

Highlights for the first quarter of 2017 and at March 31, 2017:

  • The Company remains very asset sensitive from an interest rate risk position. Primarily as a result of recent increases in short-term interest rates combined with a two basis point increase in total deposit costs during the first quarter of 2017 resulted in improvements on a linked quarter basis in the Company's reported and cash net interest margins of 15 and 11 basis points, respectively. The yield on average earning assets increased 16 basis points and the cost of total interest bearing liabilities increased two basis points.
  • Primarily as a result of the improvement in the net interest margin and a 4% increase in average earning assets, tax equivalent net interest income increased $11.3 million, or 7%, on a linked quarter basis.
  • Non-interest income declined $5.9 million, or 11%, on a linked quarter basis, primarily as a result of seasonal declines in the Company's fee income businesses.
  • Energy-related loans ("energy loans") increased slightly and equated to 3.7% of total loans at March 31, 2017, unchanged from year-end 2016. Classified energy loans and non-performing assets each decreased 23% during the first quarter of 2017.
  • On February 28, 2017, the Company announced an agreement to acquire Sabadell United Bank, headquartered in Miami, Florida. In association with the pending acquisition, on March 7, 2017, the Company issued and sold approximately 6.1 million shares of common stock at $83.00 per common share, resulting in net proceeds of $485 million.

 

Table A - Summary Financial Results

(Dollars in thousands, except per share data)

                     
 

For the Three Months Ended

 

3/31/2017

   

12/31/2016

 

% Change

 

3/31/2016

 

% Change

GAAP BASIS:

                   

Income available to common shareholders

$       46,874

   

$       44,173

 

6.1

 

$       40,193

 

16.6

Earnings per common share - diluted

1.00

   

1.04

 

(3.8)

 

0.97

 

3.1

                     

Average loans, net of unearned income

$15,045,755

   

$14,912,350

 

0.9

 

$14,354,410

 

4.8

Average total deposits

17,511,324

   

16,893,643

 

3.7

 

15,945,069

 

9.8

Net interest margin (TE) (1)

3.53

%

 

3.38

%

   

3.68

%

 
                     

Total revenues

$     220,164

   

$     214,903

 

2.4

 

$     217,248

 

1.3

Total non-interest expense

141,018

   

151,570

 

(7.0)

 

137,452

 

2.6

Efficiency ratio

64.1

%

 

70.5

%

   

63.3

%

 

Return on average assets

0.94

   

0.85

     

0.87

   

Return on average common equity

6.41

   

6.70

     

6.59

   
                     

NON-GAAP BASIS (2):

                   

Core revenues

$     220,163

   

$     214,898

 

2.4

 

$     217,052

 

1.4

Core non-interest expense

139,437

   

133,562

 

4.4

 

134,860

 

3.4

Core earnings per common share - diluted

1.02

   

1.16

 

(12.1)

 

1.01

 

1.0

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

61.6

%

 

60.3

%

   

60.3

%

 

Core return on average assets

0.96

   

0.94

     

0.90

   

Core return on average tangible common equity (4)

8.99

   

10.75

     

10.26

   

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

3.30

   

3.19

     

3.51

   
                     

(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 10 and Table 11 for GAAP to Non-GAAP reconciliations.

(3) See Table 9 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 $113 million, or 1%, and the associated tax-equivalent yield increased 23 basis points.  Over that period, average legacy loans increased $279 million, or 2%, with an increase in yield of 15 basis points, and average acquired loans (including the FDIC loss share receivable) decreased $166 million, or 7%, and the yield increased 82 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 $624 million, or 14%.

Primarily as a result of rising short-term interest rates and lower levels of balance sheet liquidity, the Company's reported and cash net interest margins increased 15 and 11 basis points, respectively, on a linked quarter basis.

On a linked quarter basis, average earning assets increased $737 million, or 4%, and the average earning asset yield increased 16 basis points.  Average interest-bearing liabilities increased $271 million, or 2%, and the cost of interest-bearing liabilities increased two basis points. On a linked quarter basis, tax-equivalent net interest income increased $11.3 million, or 7%.

The Company's provision for loan losses increased $1.0 million, or 19%, on a linked quarter basis to $6.2 million. The provision for loan losses covered net charge-offs in the first quarter of 2017 by 102% compared to 68% in the fourth quarter of 2016.

In the first quarter of 2017, non-interest income on a GAAP and non-core basis decreased $5.9 million, or 11%, compared to the fourth quarter of 2016.  The primary changes in non-interest income on a linked quarter basis included:

  • Decreased mortgage income of $2.0 million, or 12%;
  • Decreased capital markets and brokerage commission of $1.3 million, or 32%;
  • Decreased gains on the sale of SBA loans of $1.3 million;
  • Decreased title revenues of $0.6 million, or 11%; and
  • Decreased client derivative income of $0.2 million.

In the first quarter of 2017, the Company originated $384 million in residential mortgage loans, down $154 million, or 29%, on a linked quarter basis.  Client loan refinancing opportunities accounted for approximately 21% of mortgage loan applications in the first quarter of 2017, compared to 30% on a linked quarter basis.  The Company sold $427 million in mortgage loans during the first quarter of 2017, down $156 million, or 27%, on a linked quarter basis.  Loans held for sale decreased from $157 million at December 31, 2016, to $122 million at March 31, 2017.  The mortgage origination locked pipeline was $240 million at March 31, 2017, up $74 million, or 46%, between quarter-ends, and was down 30% compared to one year ago.  At April 24, 2017, the locked mortgage pipeline was $266 million, up 27% compared to March 31, 2017.

Non-interest expense decreased $10.6 million, or 7%, on a linked quarter basis. The decrease in non-interest expense was significantly influenced by the $17.8 million loss on the early termination of FDIC loss share agreements in the fourth quarter of 2016 and $1.4 million net impairment of long-lived assets in the first quarter of 2017. Excluding those non-core expenses, core non-interest expense increased $5.9 million, or 4%, and was comprised of the following items on a linked-quarter basis:

  • Increased salary and benefits cost of $1.1 million, or 1%, which included:
    • Increased payroll tax expense of $2.2 million;
    • Increased health care costs of $2.0 million;
    • Increased compensation expense of $0.8 million; partially offset by
    • Decreased mortgage commission expenses of $1.9 million; and
    • Decreased phantom stock incentives expense of $1.6 million; partially offset by
  • Increased provision for unfunded commitments of $1.2 million;
  • Increased marketing expense of $0.9 million;
  • Increased FDIC insurance premium expense of $0.7 million;
  • Increased legal and professional expense of $0.5 million; and
  • Increased occupancy and equipment expense of $0.5 million.

On a linked quarter basis, the Company's revenues and non-GAAP core revenues each increased $5.3 million, or 2%. Over the same period, GAAP expenses decreased $10.6 million, or 7%, and non-GAAP core expenses increased $5.9 million, or 4%. The efficiency ratio decreased from 70.5% to 64.1%, while the non-GAAP core tangible efficiency ratio increased from 60.3% to 61.6% on a linked quarter basis. The Company continues to focus on expense containment and revenue enhancement strategies intended to further improve its core tangible efficiency ratio.

Due to a recent change in accounting principle, the effective tax rate for the first quarter of 2017 was 30.9% and was favorably impacted by a $1.8 million decrease in income tax expense associated with restricted stock vesting during the quarter. Absent any future exercises or vesting, the Company expects the effective tax rate in the remaining three quarters of 2017 to be approximately 33.5%. Vesting and exercise of share-based compensation is expected to have an impact on tax expense in the first quarter of future years as well.

Table B - Summary Financial Condition Results

(Dollars in thousands, except per share data)

                     
   

As of and For the Three Months Ended

   

3/31/2017

 

12/31/2016

 

% Change

 

3/31/2016

 

% Change

PERIOD-END BALANCES:

                 
 

Total loans, net of unearned income

$15,132,202

 

$15,064,971

 

0.4

 

$14,451,244

 

4.7

 

Legacy loans, net of unearned income

12,923,444

 

12,694,924

 

1.8

 

11,528,697

 

12.1

 

Total deposits

17,312,265

 

17,408,283

 

(0.6)

 

16,260,566

 

6.5

                     

ASSET QUALITY RATIOS (LEGACY):

                 
 

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

0.25%

 

0.20%

     

0.37%

   
 

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

0.02

 

0.01

     

0.00

   
 

Non-performing assets to total assets (1)

0.99

 

1.20

     

0.65

   
 

Classified assets to total assets (2)

1.60

 

1.94

     

2.21

   
                     

CAPITAL RATIOS:

                 
 

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

12.10%

 

9.82%

     

8.83%

   
 

Tier 1 leverage ratio (5)

12.91

 

10.86

     

9.41

   
 

Total risk-based capital ratio (5)

16.92

 

14.13

     

12.21

   
                     

PER COMMON SHARE DATA:

                 
 

Book value

$         65.25

 

$         62.68

 

4.1

 

$         59.93

 

8.9

 

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

50.46

 

45.80

 

10.2

 

41.38

 

21.9

 

Closing stock price

79.10

 

83.75

 

(5.6)

 

51.27

 

54.3

 

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 $316 million, $373 million and $378 million at March 31, 2017, December 31, 2016, and March 31, 2016, respectively.

(3)

See Table 10 and Table 11 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 March 31, 2017 are preliminary.

Loans

Total loans increased $67 million, or less than 1%, between December 31, 2016, and March 31, 2017.  Over that period, acquired loans decreased $161 million, or 7%, and legacy loans increased $229 million, or 2% (7% annualized rate), including an increase in total energy loans of $2 million, or less than 1%, and a decline in indirect automobile loans of $21 million, or 16%.  During the first quarter of 2017, legacy commercial loans increased $204 million, or 2%, legacy consumer loans decreased $23 million, or 1%, and legacy mortgage loans increased $48 million, or 6%.  Period-end loan growth during the first quarter of 2017 was strongest in the Atlanta, Tampa, Mobile, Orlando, and southeast Florida markets.  Funded loan origination and renewal mix in the first quarter of 2017 was 39% fixed rate and 61% floating rate, and total loans outstanding (excluding non-accruals) were 43% fixed and 57% floating.   Commitments originated and/or renewed during the first quarter of 2017 were $1.3 billion (down 7% on a linked quarter basis).  Loans originated and/or renewed during the first quarter of 2017 totaled $847 million (down 10% on a linked quarter basis).  At March 31, 2017, the Company's probably-weighted commercial loan pipeline was approximately $600 million.

Table C - Period-End Loans

(Dollars in thousands)

                                 
 

As of and For the Three Months Ended

             

Linked Qtr Change

 

Year/Year Change

 

Mix

 

3/31/2017

 

12/31/2016

 

3/31/2016

 

$

%

 

Annualized

 

$

%

 

3/31/2017

12/31/2016

Legacy loans:

                               

Commercial

$  9,581,229

 

$  9,377,399

 

$  8,427,154

 

203,830

2.2

 

8.7%

 

1,154,075

13.7

 

74.1%

73.9%

Residential mortgage

901,859

 

854,216

 

730,621

 

47,643

5.6

 

22.3%

 

171,238

23.4

 

7.0%

6.7%

Consumer

2,440,356

 

2,463,309

 

2,370,922

 

(22,953)

(0.9)

 

(3.7)%

 

69,434

2.9

 

18.9%

19.4%

Total legacy loans

12,923,444

 

12,694,924

 

11,528,697

 

228,520

1.8

 

7.2%

 

1,394,747

12.1

 

100.0%

100.0%

                                 

Acquired loans:

                               

Balance at beginning of period

2,370,047

 

2,511,129

 

3,136,908

 

(141,082)

(5.6)

     

(766,861)

(24.4)

     

Loans acquired during the period

 

 

 

     

     

Net paydown activity

(161,289)

 

(141,082)

 

(214,361)

 

(20,207)

14.3

     

53,072

(24.8)

     

Total acquired loans

2,208,758

 

2,370,047

 

2,922,547

 

(161,289)

(6.8)

     

(713,789)

(24.4)

     

Total loans

$15,132,202

 

$15,064,971

 

$14,451,244

 

67,231

0.4

     

680,958

4.7

     
                                 

Energy loans outstanding totaled $564 million at March 31, 2017, up $2 million, or less than 1%, compared to year-end 2016, and equated to approximately 3.7% of total loans (unchanged compared to year-end 2016).  Energy-related commitments totaled $1.0 billion at March 31, 2017, up $56 million, or 6%, compared to December 31, 2016. The increase in energy loans and commitments during the quarter was primarily  due to increases at exploration and production ("E&P") and midstream companies. E&P companies accounted for 47% of energy loans outstanding and 53% of energy loan commitments, midstream companies accounted for 22% of energy loans and 23% of energy loan commitments, and service companies accounted for 31% of energy loans and 24% of energy loan commitments.

At March 31, 2017, $113 million in energy loans were on non-accrual status (down $37 million compared to December 31, 2016), and $2.3 million in energy loans (excluding non-accruing loans) were past due greater than 30 days at quarter-end.  Classified energy loans decreased $55 million, or 23%, and criticized energy loans decreased $70 million, or 22%, between quarter-ends. At March 31, 2017,  approximately 32% of energy loans were classified and 44% were criticized, compared to 42% and 57%, respectively, at December 31, 2016.  To date, the Company has experienced $19 million in energy-related net charge-offs.  Additional information regarding the Company's energy loan and energy-related commitment exposure is provided in Table 7 of this press release and in the supplemental investor presentation.

At March 31, 2017, the Company's indirect automobile lending business had approximately $110 million in loans outstanding, down $21 million, or 16%, compared to year-end 2016 (0.7% of total loans outstanding compared to 0.9% at December 31, 2016).

Deposits

Total deposits decreased $96 million, or 1%, between December 31, 2016 and March 31, 2017.  Over that period, non-interest-bearing deposits increased $103 million, or 2%, and equated to 29% of total deposits at March 31, 2017.  Money market accounts increased $153 million, or 2%, NOW accounts decreased $229 million, or 7%, time deposits decreased $122 million, or 6%, and savings deposits declined $1 million, or less than 1%. Deposit growth during the first quarter of 2017 was strongest in the New Orleans, southwest Louisiana, Mobile, Birmingham, and Little Rock markets.

Table D - Period-End Deposits

(Dollars in thousands)

                               
             

Linked Qtr Change

 

Year/Year Change

 

Mix

 

3/31/2017

 

12/31/2016

 

3/31/2016

 

$

%

Annualized

 

$

%

 

3/31/2017

12/31/2016

Non-interest-bearing

$  5,031,583

 

$  4,928,878

 

$  4,484,024

 

102,705

2.1

8.3%

 

547,559

12.2

 

29.1%

28.3%

NOW accounts

3,085,720

 

3,314,281

 

2,960,562

 

(228,561)

(6.9)

(27.6)%

 

125,158

4.2

 

17.8%

19.0%

Money market accounts

6,372,855

 

6,219,532

 

5,964,029

 

153,323

2.5

9.9%

 

408,826

6.9

 

36.8%

35.7%

Savings accounts

813,009

 

814,385

 

772,117

 

(1,376)

(0.2)

(0.7)%

 

40,892

5.3

 

4.7%

4.7%

Time deposits

2,009,098

 

2,131,207

 

2,079,834

 

(122,109)

(5.7)

(22.9)%

 

(70,736)

(3.4)

 

11.6%

12.3%

Total deposits

$17,312,265

 

$17,408,283

 

$16,260,566

 

(96,018)

(0.6)

(2.2)%

 

1,051,699

6.5

 

100.0%

100.0%

                               

On an average balance and linked quarter basis, non-interest-bearing deposits increased $108 million, or 2%, and interest-bearing deposits increased $510 million, or 4%.  The rate on average interest-bearing deposits in the first quarter of 2017 was 0.52%, up two basis points on a linked quarter basis. The increase in the cost of interest-bearing deposits was primarily the result of a less favorable change in the mix of deposits during the first quarter of 2017. Marginal deposit rates remained stable throughout the first quarter of 2017.

Other Assets And Funding

On an average balance and linked quarter basis, the investment portfolio increased $587 million, or 19%, in the first quarter of 2017, to $3.7 billion.  On a period-end basis, the investment portfolio equated to $3.9 billion, or 18% of total assets at March 31, 2017, up $375 million, or 11%, compared to December 31, 2016.  The investment portfolio had an effective duration of 3.8 years at March 31, 2017, unchanged compared to year-end 2016.  The investment portfolio had a $32 million unrealized loss at March 31, 2017, an improvement from a $39 million unrealized loss at year-end 2016.  The average yield on investment securities increased 15 basis points on a linked quarter basis to 2.24% in the first quarter of 2017. The Company holds in its investment portfolio primarily government agency securities.  Municipal securities comprised 9% of total investments at March 31, 2017.

On a linked quarter basis, average short-term borrowings (including repurchase agreements) decreased $193 million, or 32%, and the cost of short-term borrowings decreased nine basis points.  At March 31, 2017, short-term borrowings (including repurchase agreements) decreased $60 million, or 12%, compared to December 31, 2016.  On a linked quarter basis, average long-term debt decreased $46 million, or 7%, and the cost of long-term debt increased seven basis points to 2.22%.  The cost of average interest-bearing liabilities was 0.59% in the first quarter of 2017, up two basis points on a linked quarter basis.

Asset Quality

Non-performing assets ("NPAs") decreased $31 million, or 13%, to $220 million at March 31, 2017.  Acquired NPAs increased $4 million, while legacy NPAs, which include energy and non-energy loans, decreased $36 million, or 15%, and equated to 0.99% of total assets. Energy-related NPAs (which are included in legacy loans) decreased by $35 million, or 23%, and accounted for the decrease in the Company's total NPAs during the first quarter of 2017.  At March 31, 2017, non-energy-related NPAs increased $3 million, or 3%, and equated to 0.49% of total assets, up slightly compared to 0.48% at year-end 2016.

Aggregate loans past due 30 to 89 days increased $7 million, or 25%, and equated to 0.24% of total loans at March 31, 2017, compared to 0.19% at year-end 2016.

Net charge-offs totaled $6.1 million in the first quarter of 2017, down $1.6 million, or 21%, compared to the fourth quarter of 2016.  Annualized net charge-offs equated to 0.16% of average loans in the first quarter of 2017, a five basis point improvement on a linked quarter basis.  Energy loans accounted for approximately 47% of the net charge-offs incurred during the first quarter of 2017.

Capital Position

At March 31, 2017, the Company reported a non-GAAP tangible common equity ratio of 12.10%, up 228 basis points compared to December 31, 2016, and the preliminary Tier 1 leverage ratio was 12.91%, up 205 basis points compared to December 31, 2016. The Company's preliminary calculation of its total risk-based capital ratio at March 31, 2017, was 16.92%, up 279 basis points compared to December 31, 2016.

At March 31, 2017, book value per common share was $65.25, up $2.57 per share, or 4%, compared to year-end 2016. Tangible book value per common share was $50.46, up $4.66 per share, or 10%, compared to year-end 2016.  Based on the closing stock price of the Company's common stock of $79.35 per share on April 27, 2017, this price equated to 1.22 times March 31, 2017 book value per common share and 1.57 times March 31, 2017 tangible book value per common share.

Cash Dividends On Common Stock.  On March 20, 2017, 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 April 27, 2017, the indicated dividend yield was 1.81% 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 first quarter of 2017. 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 4, 2017, the Company declared a semi-annual cash dividend of $0.8281 per depositary share that was paid 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 March 20, 2017, the Company declared a quarterly cash dividend of $0.4125 per depositary share that is payable on May 1, 2017.

Common Stock.  On December 7, 2016, the Company issued and sold 3.6 million 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 $279 million.  On March 7, 2017, the Company issued and sold 6.1 million shares of common stock at a price of $83.00 per common share. After deducting underwriting discounts and commissions and other related expenses, net proceeds of the sale were approximately $485 million. The estimated dilutive impact of carrying the excess capital associated with these two common stock offerings was approximately $0.11 per common share during the first quarter of 2017, and will be approximately $0.06 per month on an ongoing basis until the capital is fully deployed.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with 300 combined offices, including 202 bank branch offices and two loan production offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, and South Carolina, 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 $4.0 billion, based on the NASDAQ Global Select Market closing stock price on April 27, 2017.

The following 13 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.
  • JMP Securities LLC
  • 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, April 28, 2017, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 3978156.  A replay of the call will be available until midnight Central Time on May 5, 2017 by dialing 1-877-344-7529. The confirmation code for the replay is 10104130.  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, 2016, 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 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:

3/31/2017

 

12/31/2016

 

% Change

 

3/31/2016

% Change

 

Net interest income

$     172,818

   

$161,665

   

6.9

 

$161,403

   

7.1

 

Net interest income (TE) (1)

175,309

   

164,005

   

6.9

 

163,728

   

7.1

 

Total revenues

220,164

   

214,903

   

2.4

 

217,248

   

1.3

 

Provision for loan losses

6,154

   

5,169

   

19.1

 

14,905

   

(58.7)

 

Non-interest expense

141,018

   

151,570

   

(7.0)

 

137,452

   

2.6

 

Net income available to common shareholders

46,874

   

44,173

   

6.1

 

40,193

   

16.6

                           

PER COMMON SHARE DATA:

                       
 

Earnings available to common shareholders - basic

$           1.01

   

$      1.05

   

(3.8)

 

$      0.98

   

3.1

 

Earnings available to common shareholders - diluted

1.00

   

1.04

   

(3.8)

 

0.97

   

3.1

 

Core earnings (Non-GAAP)(2)

1.02

   

1.16

   

(12.1)

 

1.01

   

1.0

 

Book value

65.25

   

62.68

   

4.1

 

59.93

   

8.9

 

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

50.46

   

45.80

   

10.2

 

41.38

   

21.9

 

Closing stock price

79.10

   

83.75

   

(5.6)

 

51.27

   

54.3

 

Cash dividends

0.36

   

0.36

   

 

0.34

   

5.9

                           

KEY RATIOS AND OTHER DATA (6):

               
 

Net interest margin (TE) (1)

3.53%

   

3.38%

       

3.68%

     
 

Efficiency ratio

64.1

   

70.5

       

63.3

     
 

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

61.6

   

60.3

       

60.3

     
 

Return on average assets

0.94

   

0.85

       

0.87

     
 

Return on average common equity

6.41

   

6.70

       

6.59

     
 

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

8.99

   

10.75

       

10.26

     
 

Effective tax rate

30.9

   

22.4

       

34.1

     
 

Full-time equivalent employees

3,161

   

3,100

       

3,112

     
                           

CAPITAL RATIOS:

                       
 

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

12.10%

   

9.82%

       

8.83%

     
 

Tangible common equity to risk-weighted assets (3)

14.48

   

11.62

       

10.14

     
 

Tier 1 leverage ratio (4)

12.91

   

10.86

       

9.41

     
 

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

14.64

   

11.84

       

10.11

     
 

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

14.60

   

11.77

       

10.02

     
 

Tier 1 capital (transitional) (4)

15.38

   

12.59

       

10.56

     
 

Total risk-based capital ratio (4)

16.92

   

14.13

       

12.21

     
 

Common stock dividend payout ratio

39.0

   

36.4

       

34.9

     
 

Classified assets to Tier 1 capital (7)

15.2

   

21.9

       

28.4

     
                           

ASSET QUALITY RATIOS (LEGACY):

               
 

Non-performing assets to total assets (5)

0.99%

   

1.20%

       

0.65%

     
 

Allowance for loan losses to loans

0.82

   

0.83

       

0.92

     
 

Net charge-offs to average loans (annualized)

0.20

   

0.24

       

0.15

     
 

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

1.52

   

1.83

       

0.96

     
                           

(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 10 and Table 11 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 March 31, 2017 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

 

3/31/2017

 

12/31/2016

 

$

%

 

9/30/2016

 

6/30/2016

 

3/31/2016

 

$

%

Interest income

$192,533

 

$ 180,805

 

11,728

6.5

 

$180,504

 

$178,694

 

$176,936

 

15,597

8.8

Interest expense

19,715

 

19,140

 

575

3.0

 

17,087

 

15,941

 

15,533

 

4,182

26.9

Net interest income

172,818

 

161,665

 

11,153

6.9

 

163,417

 

162,753

 

161,403

 

11,415

7.1

Provision for loan losses

6,154

 

5,169

 

985

19.1

 

12,484

 

11,866

 

14,905

 

(8,751)

(58.7)

Net interest income after provision for loan losses

166,664

 

156,496

 

10,168

6.5

 

150,933

 

150,887

 

146,498

 

20,166

13.8

Mortgage income

14,115

 

16,115

 

(2,000)

(12.4)

 

21,807

 

25,991

 

19,940

 

(5,825)

(29.2)

Service charges on deposit accounts

11,153

 

11,178

 

(25)

(0.2)

 

11,066

 

10,940

 

10,951

 

202

1.8

Title revenue

4,741

 

5,332

 

(591)

(11.1)

 

6,001

 

6,135

 

4,745

 

(4)

(0.1)

Broker commissions

2,738

 

4,006

 

(1,268)

(31.7)

 

3,797

 

3,712

 

3,823

 

(1,085)

(28.4)

ATM/debit card fee income

3,585

 

3,604

 

(19)

(0.5)

 

3,483

 

3,650

 

3,503

 

82

2.3

Income from bank owned life insurance

1,311

 

1,323

 

(12)

(0.9)

 

1,305

 

1,411

 

1,202

 

109

9.1

Gain on sale of available-for-sale securities

 

4

 

(4)

(100.0)

 

12

 

1,789

 

196

 

(196)

(100.0)

Other non-interest income

9,703

 

11,676

 

(1,973)

(16.9)

 

12,350

 

11,289

 

11,485

 

(1,782)

(15.5)

Total non-interest income

47,346

 

53,238

 

(5,892)

(11.1)

 

59,821

 

64,917

 

55,845

 

(8,499)

(15.2)

Salaries and employee benefits

81,853

 

80,811

 

1,042

1.3

 

85,028

 

85,105

 

80,742

 

1,111

1.4

Occupancy and equipment

16,021

 

15,551

 

470

3.0

 

16,526

 

16,813

 

16,907

 

(886)

(5.2)

Loss on early termination of loss share agreements

 

17,798

 

(17,798)

(100.0)

 

 

 

 

 N/M 

Amortization of acquisition intangibles

1,770

 

2,087

 

(317)

(15.2)

 

2,106

 

2,109

 

2,113

 

(343)

(16.2)

Other non-interest expense

41,374

 

35,323

 

6,051

17.1

 

34,479

 

35,477

 

37,690

 

3,684

9.8

Total non-interest expense

141,018

 

151,570

 

(10,552)

(7.0)

 

138,139

 

139,504

 

137,452

 

3,566

2.6

Income before income taxes

72,992

 

58,164

 

14,828

25.5

 

72,615

 

76,300

 

64,891

 

8,101

12.5

Income tax expense

22,519

 

13,034

 

9,485

72.8

 

24,547

 

25,490

 

22,122

 

397

1.8

Net income

50,473

 

45,130

 

5,343

11.8

 

48,068

 

50,810

 

42,769

 

7,704

18.0

Preferred stock dividends

(3,599)

 

(957)

 

(2,642)

(276.1)

 

(3,590)

 

(854)

 

(2,576)

 

(1,023)

39.7

Net income available to common shareholders

$  46,874

 

$   44,173

 

2,701

6.1

 

$  44,478

 

$  49,956

 

$  40,193

 

6,681

16.6

                               

Income available to common shareholders - basic

$  46,874

 

$   44,173

 

2,701

6.1

 

$  44,478

 

$  49,956

 

$  40,193

 

6,681

16.6

Earnings allocated to unvested restricted stock

(346)

 

(414)

 

68

(16.4)

 

(462)

 

(540)

 

(460)

 

114

(24.8)

Earnings allocated to common shareholders

$  46,528

 

$   43,759

 

2,769

6.3

 

$  44,016

 

$  49,416

 

$  39,733

 

6,795

17.1

                               

Earnings per common share - basic

$      1.01

 

$       1.05

 

(0.04)

(3.8)

 

$      1.08

 

$      1.21

 

$      0.98

 

0.03

3.1

                               

Earnings per common share - diluted

1.00

 

1.04

 

(0.04)

(3.8)

 

1.08

 

1.21

 

0.97

 

0.03

3.1

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

0.02

 

0.12

 

(0.10)

(83.3)

 

 

(0.03)

 

0.04

 

(0.02)

(50.0)

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

$      1.02

 

$       1.16

 

(0.14)

(12.1)

 

$      1.08

 

$      1.18

 

$      1.01

 

0.01

1.0

                               

NUMBER OF COMMON SHARES OUTSTANDING (in thousands)

                             

Weighted average common shares outstanding - basic

46,123

 

42,109

 

4,014

9.5

 

41,052

 

41,232

 

41,186

 

4,937

12.0

Weighted average common shares outstanding - diluted

46,496

 

41,950

 

4,546

10.8

 

40,811

 

40,908

 

40,765

 

5,731

14.1

Book value shares (period end)

50,970

 

44,795

 

6,175

13.8

 

41,082

 

41,039

 

41,232

 

9,738

23.6

                               

(1) See Table 10 and Table 11 for GAAP to Non-GAAP reconciliations.

                               

N/M = not meaningful

                             

 

TABLE 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

                             

PERIOD-END BALANCES

     

Linked Qtr Change

             

Year/Year Change

ASSETS

3/31/2017

 

12/31/2016

 

$

 

%

 

9/30/2016

 

6/30/2016

 

3/31/2016

 

$

 

%

Cash and due from banks

$     276,979

 

$     295,896

 

(18,917)

 

(6.4)

 

$     327,799

 

$     288,141

 

$     300,207

 

(23,228)

 

(7.7)

Interest-bearing deposits in other banks

1,024,139

 

1,066,230

 

(42,091)

 

(3.9)

 

773,454

 

417,157

 

696,448

 

327,691

 

47.1

Total cash and cash equivalents

1,301,118

 

1,362,126

 

(61,008)

 

(4.5)

 

1,101,253

 

705,298

 

996,655

 

304,463

 

30.5

Investment securities available for sale

3,823,953

 

3,446,097

 

377,856

 

11.0

 

2,885,413

 

2,776,015

 

2,755,425

 

1,068,528

 

38.8

Investment securities held to maturity

86,018

 

89,216

 

(3,198)

 

(3.6)

 

90,653

 

92,904

 

96,117

 

(10,099)

 

(10.5)

Total investment securities

3,909,971

 

3,535,313

 

374,658

 

10.6

 

2,976,066

 

2,868,919

 

2,851,542

 

1,058,429

 

37.1

Mortgage loans held for sale

122,333

 

157,041

 

(34,708)

 

(22.1)

 

210,866

 

229,653

 

192,545

 

(70,212)

 

(36.5)

Loans, net of unearned income

15,132,202

 

15,064,971

 

67,231

 

0.4

 

14,924,499

 

14,722,561

 

14,451,244

 

680,958

 

4.7

Allowance for loan losses

(144,890)

 

(144,719)

 

(171)

 

0.1

 

(148,193)

 

(147,452)

 

(146,557)

 

1,667

 

(1.1)

Loans, net

14,987,312

 

14,920,252

 

67,060

 

0.4

 

14,776,306

 

14,575,109

 

14,304,687

 

682,625

 

4.8

Loss share receivable

 

 

 

 

24,406

 

29,224

 

33,564

 

(33,564)

 

(100.0)

Premises and equipment

303,978

 

306,373

 

(2,395)

 

(0.8)

 

308,932

 

311,173

 

314,615

 

(10,637)

 

(3.4)

Goodwill and other intangibles

758,340

 

759,823

 

(1,483)

 

(0.2)

 

761,206

 

763,387

 

768,235

 

(9,895)

 

(1.3)

Other assets

625,427

 

618,262

 

7,165

 

1.2

 

629,531

 

678,092

 

630,720

 

(5,293)

 

(0.8)

Total assets

$22,008,479

 

$21,659,190

 

349,289

 

1.6

 

$20,788,566

 

$20,160,855

 

$20,092,563

 

1,915,916

 

9.5

                                   

LIABILITIES AND SHAREHOLDERS' EQUITY

                           

Non-interest-bearing deposits

$  5,031,583

 

$  4,928,878

 

102,705

 

2.1

 

$  4,787,485

 

$  4,539,254

 

$  4,484,024

 

547,559

 

12.2

NOW accounts

3,085,720

 

3,314,281

 

(228,561)

 

(6.9)

 

2,904,835

 

2,985,284

 

2,960,562

 

125,158

 

4.2

Savings and money market accounts

7,185,864

 

7,033,917

 

151,947

 

2.2

 

6,646,694

 

6,188,245

 

6,736,146

 

449,718

 

6.7

Certificates of deposit

2,009,098

 

2,131,207

 

(122,109)

 

(5.7)

 

2,183,503

 

2,149,244

 

2,079,834

 

(70,736)

 

(3.4)

Total deposits

17,312,265

 

17,408,283

 

(96,018)

 

(0.6)

 

16,522,517

 

15,862,027

 

16,260,566

 

1,051,699

 

6.5

Short-term borrowings

80,000

 

175,000

 

(95,000)

 

(54.3)

 

360,000

 

477,620

 

195,000

 

(115,000)

 

(59.0)

Securities sold under agreements to repurchase

368,696

 

334,136

 

34,560

 

10.3

 

353,272

 

288,017

 

303,238

 

65,458

 

21.6

Trust preferred securities

120,110

 

120,110

 

 

 

120,110

 

120,110

 

120,110

 

 

Other long-term debt

507,975

 

508,843

 

(868)

 

(0.2)

 

552,328

 

567,326

 

478,814

 

29,161

 

6.1

Other liabilities

161,458

 

173,124

 

(11,666)

 

(6.7)

 

213,229

 

208,158

 

186,926

 

(25,468)

 

(13.6)

Total liabilities

18,550,504

 

18,719,496

 

(168,992)

 

(0.9)

 

18,121,456

 

17,523,258

 

17,544,654

 

1,005,850

 

5.7

Total shareholders' equity

3,457,975

 

2,939,694

 

518,281

 

17.6

 

2,667,110

 

2,637,597

 

2,547,909

 

910,066

 

35.7

Total liabilities and shareholders' equity

$22,008,479

 

$21,659,190

 

349,289

 

1.6

 

$20,788,566

 

$20,160,855

 

$20,092,563

 

1,915,916

 

9.5

                                   

 

TABLE 3 Continued - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

                                   

AVERAGE BALANCES

 

Linked Qtr Change

             

Year/Year Change

ASSETS

3/31/2017

 

12/31/2016

 

$

 

%

 

9/30/2016

 

6/30/2016

 

3/31/2016

 

$

 

%

Cash and due from banks

$     302,585

 

$     310,132

 

(7,547)

 

(2.4)

 

$     299,445

 

$     304,304

 

$     292,476

 

10,109

 

3.5

Interest-bearing deposits in other banks

1,023,688

 

930,524

 

93,164

 

10.0

 

536,741

 

386,139

 

365,709

 

657,979

 

179.9

Total cash and cash equivalents

1,326,273

 

1,240,656

 

85,617

 

6.9

 

836,186

 

690,443

 

658,185

 

668,088

 

101.5

Investment securities available for sale

3,679,817

 

3,192,040

 

487,777

 

15.3

 

2,825,030

 

2,823,292

 

2,797,320

 

882,497

 

31.5

Investment securities held to maturity

87,246

 

90,161

 

(2,915)

 

(3.2)

 

92,006

 

94,609

 

97,391

 

(10,145)

 

(10.4)

Total investment securities

3,767,063

 

3,282,201

 

484,862

 

14.8

 

2,917,036

 

2,917,901

 

2,894,711

 

872,352

 

30.1

Mortgage loans held for sale

175,512

 

226,565

 

(51,053)

 

(22.5)

 

219,369

 

211,468

 

160,873

 

14,639

 

9.1

Loans, net of unearned income

15,045,755

 

14,912,350

 

133,405

 

0.9

 

14,802,199

 

14,570,945

 

14,354,410

 

691,345

 

4.8

Allowance for loan losses

(145,326)

 

(150,499)

 

5,173

 

(3.4)

 

(149,101)

 

(149,037)

 

(141,393)

 

(3,933)

 

2.8

Loans, net

14,900,429

 

14,761,851

 

138,578

 

0.9

 

14,653,098

 

14,421,908

 

14,213,017

 

687,412

 

4.8

Loss share receivable

 

20,456

 

(20,456)

 

(100.0)

 

27,694

 

32,189

 

37,360

 

(37,360)

 

(100.0)

Premises and equipment

305,245

 

308,861

 

(3,616)

 

(1.2)

 

310,592

 

313,862

 

322,086

 

(16,841)

 

(5.2)

Goodwill and other intangibles

758,887

 

760,003

 

(1,116)

 

(0.1)

 

762,196

 

764,818

 

765,898

 

(7,011)

 

(0.9)

Other assets

628,092

 

615,666

 

12,426

 

2.0

 

666,657

 

651,328

 

609,181

 

18,911

 

3.1

Total assets

$21,861,501

 

$21,216,259

 

645,242

 

3.0

 

$20,392,828

 

$20,003,917

 

$19,661,311

 

2,200,190

 

11.2

                                   

LIABILITIES AND SHAREHOLDERS' EQUITY

                       

Non-interest-bearing deposits

$  4,976,945

 

$  4,869,095

 

107,850

 

2.2

 

$  4,605,447

 

$  4,463,928

 

$  4,388,259

 

588,686

 

13.4

NOW accounts

3,239,085

 

2,981,967

 

257,118

 

8.6

 

2,936,130

 

2,911,510

 

2,859,940

 

379,145

 

13.3

Savings and money market accounts

7,211,545

 

6,869,614

 

341,931

 

5.0

 

6,359,006

 

6,486,242

 

6,598,838

 

612,707

 

9.3

Certificates of deposit

2,083,749

 

2,172,967

 

(89,218)

 

(4.1)

 

2,176,159

 

2,117,711

 

2,098,032

 

(14,283)

 

(0.7)

Total deposits

17,511,324

 

16,893,643

 

617,681

 

3.7

 

16,076,742

 

15,979,391

 

15,945,069

 

1,566,255

 

9.8

Short-term borrowings

99,000

 

260,730

 

(161,730)

 

(62.0)

 

430,332

 

358,837

 

277,374

 

(178,374)

 

(64.3)

Securities sold under agreements to repurchase

311,726

 

342,953

 

(31,227)

 

(9.1)

 

302,119

 

265,465

 

217,296

 

94,430

 

43.5

Trust preferred securities

120,110

 

120,110

 

 

 

120,110

 

120,110

 

120,110

 

 

Other long-term debt

498,384

 

544,353

 

(45,969)

 

(8.4)

 

562,598

 

473,195

 

403,393

 

94,991

 

23.5

Other liabilities

221,993

 

300,768

 

(78,775)

 

(26.2)

 

239,911

 

203,050

 

167,810

 

54,183

 

32.3

Total liabilities

18,762,537

 

18,462,557

 

299,980

 

1.6

 

17,731,812

 

17,400,048

 

17,131,052

 

1,631,485

 

9.5

Total shareholders' equity

3,098,964

 

2,753,702

 

345,262

 

12.5

 

2,661,016

 

2,603,869

 

2,530,259

 

568,705

 

22.5

Total liabilities and shareholders' equity

$21,861,501

 

$21,216,259

 

645,242

 

3.0

 

$20,392,828

 

$20,003,917

 

$19,661,311

 

2,200,190

 

11.2

                                   

 

Table 4 - IBERIABANK CORPORATION

 

TOTAL LOANS AND ASSET QUALITY DATA

 

(Dollars in thousands)

 
                       
     

Linked Qtr Change

             

Year/Year Change

LOANS

3/31/2017

 

12/31/2016

 

$

 

%

 

9/30/2016

 

6/30/2016

 

3/31/2016

 

$

 

%

Commercial loans:

                                 

Real estate

$  6,977,874

 

$  6,802,266

 

175,608

 

2.6

 

$  6,681,215

 

$  6,472,001

 

$  6,230,628

 

747,246

 

12.0

Commercial and Industrial

3,455,578

 

3,543,122

 

(87,544)

 

(2.5)

 

3,462,997

 

3,435,809

 

3,374,382

 

81,196

 

2.4

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

563,623

 

561,193

 

2,430

 

0.4

 

599,641

 

662,034

 

731,662

 

(168,039)

 

(23.0)

Total commercial loans

10,997,075

 

10,906,581

 

90,494

 

0.8

 

10,743,853

 

10,569,844

 

10,336,672

 

660,403

 

6.4

                                   

Residential mortgage loans

1,296,358

 

1,267,400

 

28,958

 

2.3

 

1,270,530

 

1,249,062

 

1,208,391

 

87,967

 

7.3

                                   

Consumer loans:

                                 

Home equity

2,146,796

 

2,155,926

 

(9,130)

 

(0.4)

 

2,151,130

 

2,129,812

 

2,091,514

 

55,282

 

2.6

Indirect automobile

110,200

 

131,052

 

(20,852)

 

(15.9)

 

153,913

 

182,223

 

213,179

 

(102,979)

 

(48.3)

Automobile

142,139

 

147,662

 

(5,523)

 

(3.7)

 

152,972

 

156,597

 

164,868

 

(22,729)

 

(13.8)

Credit card

84,113

 

82,992

 

1,121

 

1.4

 

80,959

 

78,552

 

76,756

 

7,357

 

9.6

Other

355,521

 

373,358

 

(17,837)

 

(4.8)

 

371,142

 

356,471

 

359,864

 

(4,343)

 

(1.2)

Total consumer loans

2,838,769

 

2,890,990

 

(52,221)

 

(1.8)

 

2,910,116

 

2,903,655

 

2,906,181

 

(67,412)

 

(2.3)

Total loans

$15,132,202

 

$15,064,971

 

67,231

 

0.4

 

$14,924,499

 

$14,722,561

 

$14,451,244

 

680,958

 

4.7

                           

Allowance for loan losses (2)

$    (144,890)

 

$    (144,719)

 

(171)

 

0.1

 

$    (148,193)

 

$    (147,452)

 

$    (146,557)

 

1,667

 

(1.1)

Loans, net

14,987,312

 

14,920,252

 

67,060

 

0.4

 

14,776,306

 

14,575,109

 

14,304,687

 

682,625

 

4.8

                                   

Reserve for unfunded commitments

(11,660)

 

(11,241)

 

(419)

 

3.7

 

(11,990)

 

(13,826)

 

(14,033)

 

2,373

 

(16.9)

Allowance for credit losses

(156,550)

 

(155,960)

 

(590)

 

0.4

 

(160,183)

 

(161,278)

 

(160,590)

 

4,040

 

(2.5)

                                   

ASSET QUALITY DATA

                               

Non-accrual loans (3)

$     191,582

 

$     228,501

 

(36,919)

 

(16.2)

 

$     235,521

 

$     101,738

 

$       98,588

 

92,994

 

94.3

Other real estate owned and foreclosed assets

20,055

 

21,199

 

(1,144)

 

(5.4)

 

22,085

 

27,220

 

31,411

 

(11,356)

 

(36.2)

Accruing loans more than 90 days past due(3)

7,980

 

1,386

 

6,594

 

475.8

 

5,233

 

751

 

385

 

7,595

 

1,972.7

Total non-performing assets

$     219,617

 

$     251,086

 

(31,469)

 

(12.5)

 

$     262,839

 

$     129,709

 

$     130,384

 

89,233

 

68.4

                                   

Loans 30-89 days past due

$       36,172

 

$       28,869

 

7,303

 

25.3

 

$       45,125

 

$       50,592

 

$       49,071

 

(12,899)

 

(26.3)

                                   

Non-performing assets to total assets

1.00%

 

1.16%

         

1.26%

 

0.64%

 

0.65%

       

Non-performing assets to total loans and OREO

1.45

 

1.66

         

1.76

 

0.88

 

0.90

       

Allowance for loan losses to non-performing loans (4)

72.6

 

63.0

         

61.6

 

143.9

 

148.1

       

Allowance for loan losses to non-performing assets

66.0

 

57.6

         

56.4

 

113.7

 

112.4

       

Allowance for loan losses to total loans

0.96

 

0.96

         

0.99

 

1.00

 

1.01

       
                                   

Quarter-to-date charge-offs

$         7,291

 

$         9,785

 

(2,494)

 

(25.5)

 

$       11,500

 

$       12,994

 

$         5,560

 

1,731

 

31.1

Quarter-to-date recoveries

(1,235)

 

(2,135)

 

900

 

(42.2)

 

(1,277)

 

(1,071)

 

(1,551)

 

316

 

(20.4)

Quarter-to-date net charge-offs

$         6,056

 

$         7,650

 

(1,594)

 

(20.8)

 

$       10,223

 

$       11,923

 

$         4,009

 

2,047

 

51.1

                                   

Net charge-offs to average loans (annualized)

0.16%

 

0.21%

         

0.28%

 

0.33%

 

0.11%

       
   

(1) For purposes of this table, energy 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 5 - IBERIABANK CORPORATION

LEGACY LOANS AND LEGACY ASSET QUALITY DATA

(Dollars in thousands)

                           
         

Linked Qtr Change

             

Year/Year Change

LEGACY LOANS

3/31/2017

 

12/31/2016

 

$

 

%

 

9/30/2016

 

6/30/2016

 

3/31/2016

 

$

 

%

Commercial loans:

                                 

Real estate

$  5,878,509

 

$  5,623,314

 

255,195

 

4.5

 

$  5,419,483

 

$  5,097,689

 

$  4,771,690

 

1,106,819

 

23.2

Commercial and Industrial

3,140,205

 

3,194,796

 

(54,591)

 

(1.7)

 

3,101,472

 

3,027,590

 

2,926,686

 

213,519

 

7.3

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

562,515

 

559,289

 

3,226

 

0.6

 

598,279

 

659,510

 

728,778

 

(166,263)

 

(22.8)

Total commercial loans

9,581,229

 

9,377,399

 

203,830

 

2.2

 

9,119,234

 

8,784,789

 

8,427,154

 

1,154,075

 

13.7

                                   

Residential mortgage loans

901,859

 

854,216

 

47,643

 

5.6

 

840,082

 

794,701

 

730,621

 

171,238

 

23.4

                                   

Consumer loans:

                                 

Home equity

1,797,123

 

1,783,421

 

13,702

 

0.8

 

1,755,295

 

1,695,113

 

1,625,812

 

171,311

 

10.5

Indirect automobile

110,174

 

131,048

 

(20,874)

 

(15.9)

 

153,904

 

182,199

 

213,141

 

(102,967)

 

(48.3)

Automobile

133,852

 

138,638

 

(4,786)

 

(3.5)

 

143,355

 

146,394

 

153,732

 

(19,880)

 

(12.9)

Credit card

83,612

 

82,524

 

1,088

 

1.3

 

80,452

 

78,044

 

76,247

 

7,365

 

9.7

Other

315,595

 

327,678

 

(12,083)

 

(3.7)

 

321,048

 

303,609

 

301,990

 

13,605

 

4.5

Total consumer loans

2,440,356

 

2,463,309

 

(22,953)

 

(0.9)

 

2,454,054

 

2,405,359

 

2,370,922

 

69,434

 

2.9

Total loans

$12,923,444

 

$12,694,924

 

228,520

 

1.8

 

$12,413,370

 

$11,984,849

 

$11,528,697

 

1,394,747

 

12.1

                                   

Allowance for loan losses

$    (105,813)

 

$    (105,569)

 

(244)

 

0.2

 

$    (108,889)

 

$    (106,861)

 

$    (105,574)

 

(239)

 

0.2

Loans, net

12,817,631

 

12,589,355

 

228,276

 

1.8

 

12,304,481

 

11,877,988

 

11,423,123

 

1,394,508

 

12.2

                                   

Reserve for unfunded commitments

(11,660)

 

(11,241)

 

(419)

 

3.7

 

(11,990)

 

(13,826)

 

(14,033)

 

2,373

 

(16.9)

Allowance for credit losses

(117,473)

 

(116,810)

 

(663)

 

0.6

 

(120,879)

 

(120,687)

 

(119,607)

 

2,134

 

(1.8)

                                   

ASSET QUALITY DATA

                         

Non-accrual loans

$     185,078

 

$     221,543

 

(36,465)

 

(16.5)

 

$     227,122

 

$       95,096

 

$       93,429

 

91,649

 

98.1

Other real estate owned and foreclosed assets

8,217

 

9,264

 

(1,047)

 

(11.3)

 

11,538

 

14,478

 

17,662

 

(9,445)

 

(53.5)

Accruing loans more than 90 days past due

3,100

 

1,104

 

1,996

 

180.8

 

4,936

 

353

 

125

 

2,975

 

2,380.0

Total non-performing assets

$     196,395

 

$     231,911

 

(35,516)

 

(15.3)

 

$     243,596

 

$     109,927

 

$     111,216

 

85,179

 

76.6

                                   

Loans 30-89 days past due

$       32,286

 

$       24,902

 

7,384

 

29.7

 

$       41,157

 

$       45,906

 

$       42,454

 

(10,168)

 

(24.0)

                                   

Non-performing assets to total assets

0.99%

 

1.20%

         

1.33%

 

0.63%

 

0.65%

       

Non-performing assets to total loans and OREO

1.52

 

1.83

         

1.96

 

0.92

 

0.96

     

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

56.2

 

47.4

         

46.9

 

112.0

 

112.9

       

Allowance for loan losses to non-performing assets

53.9

 

45.5

         

44.7

 

97.2

 

94.9

       

Allowance for loan losses to total loans

0.82

 

0.83

         

0.88

 

0.89

 

0.92

       
                                   

Quarter-to-date charge-offs

$         7,202

 

$         9,496

 

(2,294)

 

(24.2)

 

$       11,201

 

$       11,969

 

$         5,389

 

1,813

 

33.6

Quarter-to-date recoveries

(880)

 

(1,910)

 

1,030

 

(53.9)

 

(1,102)

 

(775)

 

(1,247)

 

367

 

(29.4)

Quarter-to-date net charge-offs

$         6,322

 

$         7,586

 

(1,264)

 

(16.7)

 

$       10,099

 

$       11,194

 

$         4,142

 

2,180

 

52.6

Net charge-offs to average loans (annualized)

0.20%

 

0.24%

         

0.33%

 

0.38%

 

0.15%

       
                                   

(1) For purposes of this table, energy 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 6 - IBERIABANK CORPORATION

ACQUIRED LOANS AND ACQUIRED ASSET QUALITY DATA

(Dollars in thousands)

                           
         

Linked Qtr Change

             

Year/Year Change

ACQUIRED LOANS

3/31/2017

 

12/31/2016

 

$

 

%

 

9/30/2016

 

6/30/2016

 

3/31/2016

 

$

 

%

Commercial loans:

                                 

Real estate

$1,099,365

 

$1,178,952

 

(79,587)

 

(6.8)

 

$1,261,732

 

$1,374,312

 

$1,458,938

 

(359,573)

 

(24.6)

Commercial and Industrial

315,373

 

348,326

 

(32,953)

 

(9.5)

 

361,525

 

408,219

 

447,696

 

(132,323)

 

(29.6)

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

1,108

 

1,904

 

(796)

 

(41.8)

 

1,362

 

2,524

 

2,884

 

(1,776)

 

(61.6)

Total commercial loans

1,415,846

 

1,529,182

 

(113,336)

 

(7.4)

 

1,624,619

 

1,785,055

 

1,909,518

 

(493,672)

 

(25.9)

                                   

Residential mortgage loans

394,499

 

413,184

 

(18,685)

 

(4.5)

 

430,448

 

454,361

 

477,770

 

(83,271)

 

(17.4)

                                   

Consumer loans:

                                 

Home equity

349,673

 

372,505

 

(22,832)

 

(6.1)

 

395,835

 

434,699

 

465,702

 

(116,029)

 

(24.9)

Indirect automobile

26

 

4

 

22

 

550.0

 

9

 

24

 

38

 

(12)

 

(31.6)

Automobile

8,287

 

9,024

 

(737)

 

(8.2)

 

9,617

 

10,203

 

11,136

 

(2,849)

 

(25.6)

Credit card

501

 

468

 

33

 

7.1

 

507

 

508

 

509

 

(8)

 

(1.6)

Other

39,926

 

45,680

 

(5,754)

 

(12.6)

 

50,094

 

52,862

 

57,874

 

(17,948)

 

(31.0)

Total consumer loans

398,413

 

427,681

 

(29,268)

 

(6.8)

 

456,062

 

498,296

 

535,259

 

(136,846)

 

(25.6)

Total loans

$2,208,758

 

$2,370,047

 

(161,289)

 

(6.8)

 

$2,511,129

 

$2,737,712

 

$2,922,547

 

(713,789)

 

(24.4)

                                   

Allowance for loan losses (2)

$    (39,077)

 

$    (39,150)

 

73

 

(0.2)

 

$    (39,304)

 

$    (40,591)

 

$    (40,983)

 

1,906

 

(4.7)

Loans, net

2,169,681

 

2,330,897

 

(161,216)

 

(6.9)

 

2,471,825

 

2,697,121

 

2,881,564

 

(711,883)

 

(24.7)

                                   

ACQUIRED ASSET QUALITY DATA(3)

                           

Non-accrual loans

$       6,504

 

$       6,958

 

(454)

 

(6.5)

 

$       8,399

 

$       6,642

 

$       5,159

 

1,345

 

26.1

Other real estate owned and foreclosed assets

11,838

 

11,935

 

(97)

 

(0.8)

 

10,547

 

12,742

 

13,749

 

(1,911)

 

(13.9)

Accruing loans more than 90 days past due

4,880

 

282

 

4,598

 

1,630.5

 

297

 

398

 

260

 

4,620

 

1,776.9

Total non-performing assets

$     23,222

 

$     19,175

 

4,047

 

21.1

 

$     19,243

 

$     19,782

 

$     19,168

 

4,054

 

21.1

                                   

Loans 30-89 days past due

$       3,886

 

$       3,967

 

(81)

 

(2.0)

 

$       3,968

 

$       4,686

 

$       6,617

 

(2,731)

 

(41.3)

                                   

Non-performing assets to total assets

1.06%

 

0.81%

         

0.76%

 

0.72%

 

0.65%

       

Non-performing assets to total loans and OREO

1.05

 

0.81

         

0.76

 

0.72

 

0.65

       

Allowance for loan losses to non-performing loans

343.3

 

540.7

         

452.0

 

576.6

 

756.3

       

Allowance for loan losses to non-performing assets

168.3

 

204.2

         

204.3

 

205.2

 

213.8

       

Allowance for loan losses to total loans

1.77

 

1.65

         

1.57

 

1.48

 

1.40

       
                                   

Quarter-to-date charge-offs

$            89

 

$          289

 

(200)

 

(69.2)

 

$          299

 

$       1,025

 

$          171

 

(82)

 

(48.0)

Quarter-to-date recoveries

(355)

 

(225)

 

(130)

 

57.8

 

(175)

 

(296)

 

(304)

 

(51)

 

16.8

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

$         (266)

 

$            64

 

(330)

 

(515.6)

 

$          124

 

$          729

 

$         (133)

 

(133)

 

100.0

                                   

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

(0.05)%

 

0.01%

         

0.02%

 

0.10%

 

(0.02)%

       
                                   

 

(1) For purposes of this table, energy 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 7 - IBERIABANK CORPORATION

ENERGY LOANS, ENERGY-RELATED COMMITMENTS AND ASSET QUALITY DATA

(Dollars in thousands)

                           

ENERGY LOANS:(1)

       

Linked Qtr Change

             

Year/Year Change

3/31/2017

 

12/31/2016

 

$

 

%

 

9/30/2016

 

6/30/2016

 

3/31/2016

 

$

 

%

E&P

$     265,696

 

$     290,711

 

(25,015)

 

(8.6)

 

$     301,223

 

$     328,066

 

$     369,725

 

(104,029)

 

(28.1)

Midstream

123,436

 

90,120

 

33,316

 

37.0

 

110,821

 

123,687

 

130,556

 

(7,120)

 

(5.5)

Service

174,491

 

180,362

 

(5,871)

 

(3.3)

 

187,597

 

210,281

 

231,381

 

(56,890)

 

(24.6)

Total energy loans

$     563,623

 

$     561,193

 

2,430

 

0.4

 

$     599,641

 

$     662,034

 

$     731,662

 

(168,039)

 

(23.0)

                                   

ENERGY-RELATED COMMITMENTS:

                               

E&P

$     543,689

 

$     545,061

 

(1,372)

 

(0.3)

 

$     545,383

 

$     572,267

 

$     677,258

 

(133,569)

 

(19.7)

Midstream

238,186

 

182,998

 

55,188

 

30.2

 

198,618

 

201,555

 

206,504

 

31,682

 

15.3

Service

243,991

 

241,740

 

2,251

 

0.9

 

261,450

 

295,591

 

329,282

 

(85,291)

 

(25.9)

Total energy-related commitments

$  1,025,866

 

$     969,799

 

56,067

 

5.8

 

$  1,005,451

 

$  1,069,413

 

$  1,213,044

 

(187,178)

 

(15.4)

                                   

Total loans net of unearned income

$15,132,202

 

$15,064,971

 

67,231

 

0.4

 

$14,924,499

 

$14,722,561

 

$14,451,244

 

680,958

 

4.7

Energy loan outstandings as a % of total loans

3.7%

 

3.7%

         

4.0%

 

4.5%

 

5.1%

       

Energy-related commitments as a % of total commitments

5.2%

 

4.8%

         

5.1%

 

5.4%

 

6.3%

       
                                   

Allowance for loan losses

$      (20,144)

 

$      (22,524)

 

2,380

 

(10.6)

 

$      (28,215)

 

$      (33,040)

 

$      (38,495)

 

18,351

 

(47.7)

Reserve for unfunded commitments

(203)

 

(1,003)

 

800

 

(79.8)

 

(953)

 

(2,223)

 

(903)

 

700

 

(77.5)

Allowance for credit losses

(20,347)

 

(23,527)

 

3,180

 

(13.5)

 

(29,168)

 

(35,263)

 

(39,398)

 

19,051

 

(48.4)

                                   

ASSET QUALITY DATA

                               

Non-accrual loans

$     113,212

 

$     150,329

 

(37,117)

 

(24.7)

 

$     153,620

 

$       60,814

 

$       46,223

 

66,989

 

144.9

Other real estate owned and foreclosed assets

 

 

 

 

 

 

 

 

Accruing loans more than 90 days past due

2,175

 

 

2,175

 

 N/M 

 

 

 

 

2,175

 

 N/M 

Total non-performing assets

$     115,387

 

$     150,329

 

(34,942)

 

(23.2)

 

$     153,620

 

$       60,814

 

$       46,223

 

69,164

 

149.6

                                   

Loans 30-89 days past due

$            157

 

$         1,526

 

(1,369)

 

(89.7)

 

$               -

 

$         3,055

 

$               -

 

157

 

 N/M 

                                   

Non-performing assets to total energy loans and OREO

20.47%

 

26.79%

         

25.62%

 

9.19%

 

6.32%

       

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

17.5

 

15.0

         

18.4

 

54.3

 

83.3

       

Allowance for loan losses to non-performing assets

17.5

 

15.0

         

18.4

 

54.3

 

83.3

       

Allowance for loan losses to total energy loans

3.57

 

4.01

         

4.71

 

4.99

 

5.26

       
                                   
                                   

Quarter-to-date charge-offs

$         2,845

 

$         2,321

         

$         6,957

 

$         7,715

 

$               -

       

Quarter-to-date recoveries

 

(840)

         

 

 

       

Quarter-to-date net charge-offs

$         2,845

 

$         1,481

         

$         6,957

 

$         7,715

 

$               -

       

Net charge-offs to average loans (annualized)

2.05%

 

1.02%

         

4.39%

 

4.44%

 

0.00%

       
                                   

(1) For purposes of this table, energy 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.

                                 

N/M - Not meaningful

                               

 

TABLE 8 - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)

                   
 

For the Three Months Ended

 

3/31/2017

 

12/31/2016

 

Basis Point Change

ASSETS

Average Balance

Interest
Income/Expense

Yield/Rate (TE)

 

Average Balance

Interest
Income/Expense

Yield/Rate (TE)

 

Yield/Rate (TE)

Earning assets:

                 

Commercial loans

$        10,917,714

$           119,605

4.50%

 

$        10,759,264

$           114,694

4.29%

 

21

Residential mortgage loans

1,273,069

12,848

4.04

 

1,267,413

14,038

4.43

 

(39)

Consumer loans

2,854,972

36,524

5.19

 

2,885,673

36,960

5.10

 

9

Total loans

15,045,755

168,977

4.59

 

14,912,350

165,692

4.46

 

13

Loss share receivable

0.00

 

20,456

(3,539)

(68.83)

 

6,883

Total loans and loss share receivable

15,045,755

168,977

4.59

 

14,932,806

162,153

4.36

 

23

Mortgage loans held for sale

175,512

971

2.21

 

226,565

1,539

2.72

 

(51)

Investment securities (2)

3,741,128

19,927

2.24

 

3,154,252

15,464

2.09

 

15

Other earning assets

1,123,087

2,658

0.96

 

1,034,980

1,649

0.63

 

33

Total earning assets

20,085,482

192,533

3.93

 

19,348,603

180,805

3.77

 

16

Allowance for loan losses

(145,326)

     

(150,499)

       

Non-earning assets

1,921,345

     

2,018,155

       

Total assets

$        21,861,501

     

$        21,216,259

       
                   

LIABILITIES AND SHAREHOLDERS' EQUITY

         

Interest-bearing liabilities:

                 

NOW accounts

$          3,239,085

$               3,090

0.39%

 

$          2,981,967

$               2,483

0.33%

 

6

Savings and money market accounts

7,211,545

8,329

0.47

 

6,869,614

7,732

0.45

 

2

Certificates of deposit

2,083,749

4,638

0.90

 

2,172,967

4,785

0.88

 

2

Total interest-bearing deposits (3)

12,534,379

16,057

0.52

 

12,024,548

15,000

0.50

 

2

Short-term borrowings

410,726

277

0.27

 

603,683

552

0.36

 

(9)

Long-term debt

618,494

3,381

2.22

 

664,463

3,588

2.15

 

7

Total interest-bearing liabilities

13,563,599

19,715

0.59

 

13,292,694

19,140

0.57

 

2

Non-interest-bearing deposits

4,976,945

     

4,869,095

       

Non-interest-bearing liabilities

221,993

     

300,768

       

Total liabilities

18,762,537

     

18,462,557

       

Total shareholders' equity

3,098,964

     

2,753,702

       

Total liabilities and shareholders' equity

$        21,861,501

     

$        21,216,259

       
                   

Net interest income/Net interest spread

$           172,818

3.34%

   

$           161,665

3.20%

 

14

Tax-equivalent benefit

 

2,491

0.05

   

2,340

0.05

 

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

 

$           175,309

3.53%

   

$           164,005

3.38%

 

15

                   

(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 March 31, 2017 and December 31, 2016 total 0.37% and 0.35%, respectively.

 

TABLE 8 Continued - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)

                       
 

For the Three Months Ended

 

9/30/2016

 

6/30/2016

 

3/31/2016

ASSETS

Average Balance

Interest
Income/Expense

Yield/Rate (TE)

 

Average Balance

Interest
Income/Expense

Yield/Rate (TE)

 

Average Balance

Interest
Income/Expense

Yield/Rate (TE)

Earning assets:

                     

Commercial loans

$        10,646,874

$           116,653

4.41%

 

$        10,458,822

$           114,588

4.46%

 

$        10,250,555

$           113,417

4.51%

Residential mortgage loans

1,254,665

13,718

4.37

 

1,221,254

13,781

4.51

 

1,202,692

13,429

4.47

Consumer loans

2,900,660

37,413

5.13

 

2,890,869

37,200

5.18

 

2,901,163

37,145

5.15

Total loans

14,802,199

167,784

4.55

 

14,570,945

165,569

4.61

 

14,354,410

163,991

4.63

Loss share receivable

27,694

(3,935)

(56.53)

 

32,189

(4,163)

(52.01)

 

37,360

(4,386)

(47.22)

Total loans and loss share receivable

14,829,893

163,849

4.44

 

14,603,134

161,406

4.48

 

14,391,770

159,605

4.49

Mortgage loans held for sale

219,369

1,774

3.24

 

211,468

1,850

3.50

 

160,873

1,401

3.48

Investment securities (2)

2,830,892

13,815

2.08

 

2,856,805

14,663

2.17

 

2,866,974

15,212

2.24

Other earning assets

641,080

1,066

0.66

 

483,597

775

0.64

 

453,737

718

0.64

Total earning assets

18,521,234

180,504

3.93

 

18,155,004

178,694

4.01

 

17,873,354

176,936

4.03

Allowance for loan losses

(149,101)

     

(149,037)

     

(141,393)

   

Non-earning assets

2,020,695

     

1,997,950

     

1,929,350

   

Total assets

$        20,392,828

     

$        20,003,917

     

$        19,661,311

   
                       

LIABILITIES AND SHAREHOLDERS' EQUITY

               

Interest-bearing liabilities:

                     

NOW accounts

$          2,936,130

$               2,313

0.31%

 

$          2,911,510

$               2,080

0.29%

 

$          2,859,940

$               1,940

0.27%

Savings and money market accounts

6,359,006

5,826

0.36

 

6,486,242

5,527

0.34

 

6,598,838

5,640

0.34

Certificates of deposit

2,176,159

4,592

0.84

 

2,117,711

4,309

0.82

 

2,098,032

4,354

0.83

Total interest-bearing deposits(3)

11,471,295

12,731

0.44

 

11,515,463

11,916

0.42

 

11,556,810

11,934

0.42

Short-term borrowings

732,451

753

0.41

 

624,302

662

0.43

 

494,670

485

0.39

Long-term debt

682,708

3,603

2.10

 

593,305

3,363

2.28

 

523,503

3,114

2.39

Total interest-bearing liabilities

12,886,454

17,087

0.53

 

12,733,070

15,941

0.51

 

12,574,983

15,533

0.50

Non-interest-bearing deposits

4,605,447

     

4,463,928

     

4,388,259

   

Non-interest-bearing liabilities

239,911

     

203,050

     

167,810

   

Total liabilities

17,731,812

     

17,400,048

     

17,131,052

   

Total shareholders' equity

2,661,016

     

2,603,869

     

2,530,259

   

Total liabilities and shareholders' equity

$        20,392,828

     

$        20,003,917

     

$        19,661,311

   
                       

Net interest income/Net interest spread

 

$           163,417

3.40%

   

$           162,753

3.50%

   

$           161,403

3.53%

Tax-equivalent benefit

 

2,330

0.05

   

2,290

0.05

   

2,325

0.05

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

 

$           165,747

3.56%

   

$           165,043

3.65%

   

$           163,728

3.68%

                       

(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 September 30, 2016, June 30, 2016 and March 31, 2016 total 0.32%, 0.30% and 0.30%, respectively.

 

Table 9 - IBERIABANK CORPORATION

LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS

(Dollars in millions)

                                       
 

For the Three Months Ended

 

3/31/2017

 

12/31/2016

 

9/30/2016

 

6/30/2016

 

3/31/2016

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

$   131

$               12,760

4.12%

 

$   125

$               12,481

3.97%

 

$   123

$               12,183

4.00%

 

$   118

$               11,737

4.04%

 

$   115

$               11,319

4.05%

Acquired loans (1)

38

2,286

6.81

 

37

2,452

5.99

 

41

2,647

6.16

 

43

2,866

6.07

 

45

3,073

5.90

Total loans

$   169

$               15,046

4.55%

 

$   162

$               14,933

4.30%

 

$   164

$               14,830

4.38%

 

$   161

$               14,603

4.43%

 

$   160

$               14,392

4.45%

                                       
 

3/31/2017

 

12/31/2016

 

9/30/2016

 

6/30/2016

 

3/31/2016

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)

(11)

87

(2.08)

 

(8)

73

(1.43)

 

(9)

76

(1.49)

 

(9)

84

(1.41)

 

(7)

86

(1.05)

Total loans

$   (11)

$                      87

(0.31)%

 

$     (8)

$                      73

(0.23)%

 

$     (9)

$                      76

(0.26)%

 

$     (9)

$                      84

(0.27)%

 

$     (7)

$                      86

(0.22)%

                                       
 

3/31/2017

 

12/31/2016

 

9/30/2016

 

6/30/2016

 

3/31/2016

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

$   131

$               12,760

4.12%

 

$   125

$               12,481

3.97%

 

$   123

$               12,183

4.00%

 

$   118

$               11,737

4.04%

 

$   115

$               11,319

4.05%

Acquired loans (1)

27

2,373

4.73

 

29

2,525

4.56

 

32

2,723

4.67

 

34

2,950

4.67

 

38

3,159

4.85

Total loans

$   158

$               15,133

4.24%

 

$   154

$               15,006

4.07%

 

$   155

$               14,906

4.12%

 

$   152

$               14,687

4.16%

 

$   153

$               14,478

4.23%

(1) Acquired loans include the impact of the FDIC Indemnification Asset in periods prior to loss share termination in December 2016.

 

Table 10 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)

                                   
 

For the Three Months Ended

 

3/31/2017

 

12/31/2016

 

9/30/2016

 

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

$72,992

 

$     50,473

 

$          1.08

 

$58,164

 

$     45,130

 

$          1.06

 

$72,615

 

$     48,068

 

$          1.17

Preferred stock dividends

 

(3,599)

 

(0.08)

 

 

(957)

 

(0.02)

 

 

(3,590)

 

(0.09)

Income available to common shareholders (GAAP)

$72,992

 

$     46,874

 

$          1.00

 

$58,164

 

$     44,173

 

$          1.04

 

$72,615

 

$     44,478

 

$          1.08

                                   

Non-interest income adjustments:

                               

Gain on sale of investments and other non-interest income

(1)

 

 

 

(5)

 

(3)

 

 

(12)

 

(8)

 

                                   

Non-interest expense adjustments:

                               

Merger-related expense

54

 

35

 

 

 

 

 

 

 

Severance expense

98

 

63

 

 

188

 

122

 

 

 

 

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

1,429

 

929

 

0.02

 

(462)

 

(300)

 

(0.01)

 

 

 

Loss on early termination of loss share agreements

 

 

 

17,798

 

11,569

 

0.28

 

 

 

Other non-core non-interest expense

 

 

 

484

 

314

 

0.01

 

 

 

Total non-interest expense adjustments

1,581

 

1,027

 

0.02

 

18,008

 

11,705

 

0.28

 

 

 

Income tax benefits

 

 

 

 

(6,836)

 

(0.16)

 

 

 

Core earnings (Non-GAAP)

74,572

 

47,901

 

1.02

 

76,167

 

49,039

 

1.16

 

72,603

 

44,470

 

1.08

Provision for loan losses

6,154

 

4,000

 

0.09

 

5,169

 

3,360

 

0.08

 

12,484

 

8,115

 

0.2

Core pre-provision earnings (Non-GAAP)

$80,726

 

$     51,901

 

$          1.11

 

$81,336

 

$     52,399

 

$          1.24

 

$85,087

 

$     52,585

 

$          1.28

                                   
                                   
                                   
 

For the Three Months Ended

           
 

6/30/2016

 

3/31/2016

           
 

Pre-tax

 

After-tax (1)

 

Per share (2)

 

Pre-tax

 

After-tax (1)

 

Per share (2)

           

Net income

$76,300

 

$     50,810

 

$          1.23

 

$64,891

 

$     42,769

 

$          1.03

           

Preferred stock dividends

 

(854)

 

(0.02)

 

 

(2,576)

 

(0.06)

           

Income available to common shareholders (GAAP)

$76,300

 

$     49,956

 

$          1.21

 

$64,891

 

$     40,193

 

$          0.97

           
                                   

Non-interest income adjustments:

                               

Gain on sale of investments and other non-interest income

(1,789)

 

(1,163)

 

(0.03)

 

(196)

 

(127)

 

           
                                   

Non-interest expense adjustments:

                               

Merger-related expense

 

 

 

3

 

2

 

           

Severance expense

140

 

91

 

 

454

 

295

 

0.01

           

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

(1,256)

 

(816)

 

(0.02)

 

1,044

 

679

 

0.01

           

Other non-core non-interest expense

1,177

 

765

 

0.02

 

1,091

 

709

 

0.02

           

Total non-interest expense adjustments

61

 

40

 

 

2,592

 

1,685

 

0.04

           

Income tax benefits

 

 

 

 

 

           

Core earnings (Non-GAAP)

74,572

 

48,833

 

1.18

 

67,287

 

41,751

 

1.01

           

Provision for loan losses

11,866

 

7,712

 

0.19

 

14,905

 

9,688

 

0.24

           

Core pre-provision earnings (Non-GAAP)

$86,438

 

$     56,545

 

$          1.37

 

$82,192

 

$     51,439

 

$          1.25

           
                                   

(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 11 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)

                   
 

For the Three Months Ended

 

3/31/2017

 

12/31/2016

 

9/30/2016

 

6/30/2016

 

3/31/2016

Net interest income (GAAP)

$     172,818

 

$     161,665

 

$     163,417

 

$     162,753

 

$     161,403

Add: Effect of tax benefit on interest income

2,491

 

2,340

 

2,330

 

2,290

 

2,325

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

175,309

 

164,005

 

165,747

 

165,043

 

163,728

                   

Non-interest income (GAAP)

47,346

 

53,238

 

59,821

 

64,917

 

55,845

Add: Effect of tax benefit on non-interest income

706

 

713

 

703

 

760

 

647

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

48,052

 

53,951

 

60,524

 

65,677

 

56,492

Taxable equivalent revenues (Non-GAAP) (1)

223,361

 

217,956

 

226,271

 

230,720

 

220,220

Securities gains and other non-interest income

(1)

 

(5)

 

(12)

 

(1,789)

 

(196)

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

$     223,360

 

$     217,951

 

$     226,259

 

$     228,931

 

$     220,024

                   

Total non-interest expense (GAAP)

$     141,018

 

$     151,570

 

$     138,139

 

$     139,504

 

$     137,452

Less: Intangible amortization expense

1,770

 

2,087

 

2,106

 

2,109

 

2,113

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

139,248

 

149,483

 

136,033

 

137,395

 

135,339

Less: Merger-related expense

54

 

 

 

 

3

Severance expense

98

 

188

 

 

140

 

454

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

1,429

 

(462)

 

 

(1,256)

 

1,044

Loss on early termination of loss share agreements

 

17,798

 

 

 

Other non-core non-interest expense

 

484

 

 

1,177

 

1,091

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

$     137,667

 

$     131,475

 

$     136,033

 

$     137,334

 

$     132,747

                   

Return on average assets (GAAP)

0.94%

 

0.85%

 

0.94%

 

1.02%

 

0.87%

Effect of non-core revenues and expenses

0.02

 

0.09

 

0.00

 

(0.02)

 

0.03

Core return on average assets (Non-GAAP)

0.96%

 

0.94%

 

0.94%

 

1.00%

 

0.90%

                   

Efficiency ratio (GAAP)

64.1%

 

70.5%

 

61.9%

 

61.3%

 

63.3%

Effect of tax benefit related to tax-exempt income

(1.0)

 

(1.0)

 

(0.9)

 

(0.8)

 

(0.9)

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

63.1%

 

69.5%

 

61.0%

 

60.5%

 

62.4%

Effect of amortization of intangibles

(0.8)

 

(1.0)

 

(0.9)

 

(0.9)

 

(1.0)

Effect of non-core items

(0.7)

 

(8.2)

 

0.0

 

0.4

 

(1.1)

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

61.6%

 

60.3%

 

60.1%

 

60.0%

 

60.3%

                   

Return on average common equity (GAAP)

6.41%

 

6.70%

 

7.00%

 

8.05%

 

6.59%

Effect of intangibles(2)

2.39

 

3.01

 

3.30

 

3.85

 

3.30

Effect of non-core revenues and expenses

0.19

 

1.04

 

0.00

 

(0.26)

 

0.37

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

8.99%

 

10.75%

 

10.30%

 

11.64%

 

10.26%

                   

Total shareholders' equity (GAAP)

$  3,457,975

 

$  2,939,694

 

$  2,667,110

 

$  2,637,597

 

$  2,547,909

Less: Goodwill and other intangibles

753,991

 

755,765

 

757,856

 

759,966

 

764,730

Preferred stock

132,097

 

132,097

 

132,097

 

132,098

 

76,812

Tangible common equity (Non-GAAP) (2)

$  2,571,887

 

$  2,051,832

 

$  1,777,157

 

$  1,745,533

 

$  1,706,367

                   

Total assets (GAAP)

$22,008,479

 

$21,659,190

 

$20,788,566

 

$20,160,855

 

$20,092,563

Less: Goodwill and other intangibles

753,991

 

755,765

 

757,856

 

759,966

 

764,730

Tangible assets (Non-GAAP) (2)

$21,254,488

 

$20,903,425

 

$20,030,710

 

$19,400,889

 

$19,327,833

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

12.10%

 

9.82%

 

8.87%

 

9.00%

 

8.83%

                   

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