IBERIABANK Corporation Reports Second Quarter Results

LAFAYETTE, La., July 20, 2017 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 130-year-old IBERIABANK (www.iberiabank.com), reported financial results for the quarter ended June 30, 2017.  For the quarter, the Company reported income available to common shareholders of $51.1 million, or $0.99 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 second quarter of 2017 was $1.10 per common share (refer to press release supplemental tables for a reconciliation of GAAP to non-GAAP metrics).

Daryl G. Byrd, President and Chief Executive Officer, commented, "As expected, we experienced a seasonal rebound in our operating performance in the second quarter. First, our team delivered exemplary period-end loan growth rates of 18% for legacy loans and 11% for total loans, on an annualized basis. Second, our margin and non-interest income gained considerably during the  quarter, benefited by rising interest rates and improvements in our fee businesses.  Third, we gained operating efficiency, as evidenced by the improvements in our efficiency ratio to 61.6% and core tangible efficiency ratio to 57.6%, well below our 60% target. Finally, profitability improved as ROA increased to 96 basis points and core ROA increased to 106 basis points. We continue to make good progress on multiple fronts."

Byrd continued, "Our acquisition of Sabadell United Bank remains on track as well. We received all regulatory approvals within 92 days of announcing the acquisition, and we anticipate completing the acquisition 11 days from now.  Our respective teams have worked diligently to ensure a smooth and seamless transition for the clients and associates of Sabadell United Bank. We are excited to partner with Sabadell United Bank, and we look forward to working together as one team."

Highlights for the second quarter of 2017 and at June 30, 2017:

  • The Company's reported and cash net interest margins improved 18 and 15 basis points, on a linked quarter basis, to 3.71% and 3.45%, respectively. On a linked quarter basis, recoveries on acquired loans accounted for a $3.0 million increase in net interest income, or 11 basis points of the net interest margin improvement in the second quarter. The remaining seven basis point margin improvement was primarily the result of recent increases in rate indexes and reduced excess liquidity.
  • Non-interest income increased $8.6 million, or 18%, on a linked quarter basis, primarily as a result of seasonal growth in the Company's fee income businesses.
  • Energy-related loans ("energy loans") decreased $12 million and equated to 3.5% of total loans at June 30, 2017, compared to 3.7% at March 31, 2017. Classified energy loans decreased 30%, and non-performing energy assets decreased 18% during the second quarter of 2017.
  • Net charge-offs increased $4.8 million, on a linked quarter basis, and equated to an annualized 0.29% of average loans. The provision for loan losses increased $5.9 million, or 96%.
  • During the second quarter of 2017, the Company recorded an estimated $6 million settlement accrual associated with the previously disclosed U.S. Department of Housing and Urban Development lawsuit. The Company believes the matter will likely be settled by the end 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. The Company has received regulatory approvals to complete the acquisition and anticipates closing the transaction on July 31, 2017. The estimated dilutive impact of carrying common stock sold in advance of completing the acquisition was approximately $0.17 per common share during the second quarter of 2017.  The Company incurred approximately $1.4 million in acquisition, conversion, and severance-related non-core expenses during the second quarter of 2017.  

Table A - Summary Financial Results

(Dollars in thousands, except per share data)













For the Three Months Ended


6/30/2017



3/31/2017


% Change


6/30/2016


% Change

GAAP BASIS:











Income available to common shareholders

$           51,069



$           46,874


8.9


$           49,956


2.2

Earnings per common share - diluted

0.99



1.00


(1.0)


1.21


(18.2)












Average loans, net of unearned income

$     15,284,007



$     15,045,755


1.6


$     14,570,945


4.9

Average total deposits

17,160,848



17,511,324


(2.0)


15,979,391


7.4

Net interest margin (TE) (1)

3.71

%


3.53

%



3.65

%













Total revenues

$         239,609



$         220,164


8.8


$         227,670


5.2

Total non-interest expense

147,508



141,018


4.6


139,504


5.7

Efficiency ratio

61.6

%


64.1

%



61.3

%


Return on average assets

0.96



0.94




1.02



Return on average common equity

6.08



6.41




8.05














NON-GAAP BASIS (2):











Core revenues

$         239,550



$         220,163


8.8


$         225,881


6.1

Core non-interest expense

141,370



139,437


1.4


139,443


1.4

Core earnings per common share - diluted

1.10



1.02


7.8


1.18


(6.8)

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

57.6

%


61.6

%



60.0

%


Core return on average assets

1.06



0.96




1.00



Core return on average tangible common equity (4)

8.86



8.99




11.64



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

3.45



3.30




3.44















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


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


(3)  See Table 11 for adjustments related to purchase discounts on acquired loans and related accretion and the impact of the FDIC indemnification asset.


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


Operating Results

On a linked quarter basis, average loan volume increased $238 million, or 2%, and the associated tax-equivalent yield increased 15 basis points.  Over that period, average legacy loans increased $390 million, or 3%, with an increase in yield of 15 basis points, and average acquired loans decreased $152 million, or 7%, and the yield increased 59 basis points.  All other average earning assets, including investment securities, mortgage loans held for sale, and interest-bearing deposits in other institutions, decreased a net of $215 million, or 4%.

Primarily as a result of rising short-term interest rates, lower levels of balance sheet liquidity, and recoveries on acquired loans, the Company's reported and cash net interest margins increased 18 and 15 basis points, respectively, on a linked quarter basis.

On a linked quarter basis, average earning assets increased $23 million, or less than 1%, and the average earning asset yield increased 20 basis points.  Average interest-bearing liabilities decreased $414 million, or 3%, and the cost of interest-bearing liabilities increased five basis points. On a linked quarter basis, tax-equivalent net interest income increased $10.8 million, or 6%.

The Company's provision for loan losses increased $5.9 million, or 96%, on a linked quarter basis to $12.1 million. The provision for loan losses covered net charge-offs in the second quarter of 2017 by 111% compared to 102% in the first quarter of 2017.

In the second quarter of 2017, non-interest income on a GAAP and non-core basis each increased $8.6 million, or 18%, compared to the first quarter of 2017.  The primary changes in non-interest income on a linked quarter basis were:

  • Increased mortgage income of $5.6 million, or 40%;
  • Increased title revenues of $1.5 million, or 31%;
  • Increased treasury management income of $0.4 million, or 8%;
  • Increased deposit service charge income of $0.3 million, or 2%;
  • Increased credit/debit card fee income of $0.2 million, or 6%; and
  • Increased client derivative income of $0.2 million, or 16%.

In the second quarter of 2017, the Company originated $546 million in residential mortgage loans, up $162 million, or 42%, on a linked quarter basis.  Client loan refinancing opportunities accounted for approximately 14% of mortgage loan applications in the second quarter of 2017, compared to 21% on a linked quarter basis.  The Company sold $508 million in mortgage loans during the second quarter of 2017, up $81 million, or 19%, on a linked quarter basis.  Loans held for sale increased from $122 million at March 31, 2017, to $141 million at June 30, 2017.  The mortgage origination locked pipeline was $249 million at June 30, 2017, up $9 million, or 4%, between quarter-ends, and was down 28% compared to one year ago.  At July 19, 2017, the locked mortgage pipeline was $250 million, up less than 1% compared to June 30, 2017.

Non-interest expense increased $6.5 million, or 5%, on a linked quarter basis. During the second quarter of 2017, the Company's non-core expenses included $1.1 million in merger and conversion-related costs and $0.4 million in severance costs, offset by a $1.3 million gain on the sale of former IBERIABANK properties. In addition, during the second quarter of 2017, the Company recorded an estimated $6 million settlement accrual associated with the previously disclosed U.S. Department of Housing and Urban Development lawsuit. The Company believes the matter will likely be settled by the end of 2017.

Excluding  non-core expenses, core non-interest expense increased $2 million, or 1%, and was comprised of the following items on a linked-quarter basis:

  • Increased salary and benefits cost of $3.9 million, or 5%, which included:
    • Increased regular compensation expenses of $2.2 million;
    • Increased mortgage commission expenses of $2.0 million; and
    • Increased incentives and other benefit expenses of $1.5 million; partially offset by
    • Decreased payroll tax expense of $1.1 million;
    • Decreased health care costs of $0.7 million;
  • Decreased provision for unfunded commitments of $1.6 million; and
  • Decreased other expenses of $0.3 million.

On a linked quarter basis, the Company's revenues and non-GAAP core revenues each increased $19.4 million, or 9%. Over the same period, GAAP expenses increased $6.5 million, or 5%, and non-GAAP core expenses increased $2.0 million, or 1%. The efficiency ratio decreased from 64.1% to 61.6%, while the non-GAAP core tangible efficiency ratio decreased from 61.6% to 57.6% on a linked quarter basis. The Company continues to focus on expense containment and revenue enhancement strategies intended to further improve these ratios.

The effective tax rate increased from 30.9% in the first quarter of 2017 to 35.0% in the second quarter of 2017. Due to a recent change in accounting principle, the effective tax rate for the first quarter of 2017 was favorably impacted by a $1.8 million decrease in income tax expense associated with restricted stock vesting during the quarter. Vesting and exercise of share-based compensation is expected to impact income 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



6/30/2017


3/31/2017


% Change


6/30/2016


% Change

PERIOD-END BALANCES:














 Total loans, net of unearned income 

$     15,556,016



$     15,132,202



2.8


$          14,722,561



5.7


Legacy loans, net of unearned income

13,493,410



12,923,444



4.4


11,984,849



12.6


Total deposits

16,853,116



17,312,265



(2.7)


15,862,027



6.2















ASSET QUALITY RATIOS (LEGACY):














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

0.30%



0.25%





0.38%





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

0.00



0.02





0.00





Non-performing assets to total assets (1)

0.87



0.99





0.63





Classified assets to total assets (2)

1.43



1.60





2.09


















CAPITAL RATIOS:














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

12.45%



12.10%





9.00%





Tier 1 leverage ratio (5)

13.19



12.91





9.70





Total risk-based capital ratio (5)

16.74



16.92





12.47


















PER COMMON SHARE DATA:














Book value

$             66.08



$             65.25



1.3


$                    61.05



8.2


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

51.33



50.46



1.7


42.53



20.7


Closing stock price

81.50



79.10



3.0


59.73



36.4


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 $283 million, $316 million and $364 million at June 30, 2017, March 31, 2017, and June 30, 2016, respectively.


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


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


(5) Regulatory capital ratios as of June 30, 2017 are preliminary.


Loans

Total loans increased $424 million, or 3%, between March 31, 2017, and June 30, 2017.  Over that period, acquired loans decreased $146 million, or 7%, and legacy loans increased $570 million, or 4% (18% annualized rate), including a decrease in total energy loans of $12 million, or 2%, and a decline in indirect automobile loans of $18 million, or 16%.  During the second quarter of 2017, legacy commercial loans increased $475 million, or 5%, legacy consumer loans increased $26 million, or 1%, and legacy mortgage loans increased $69 million, or 8%.  Period-end loan growth during the second quarter of 2017 was strongest in the Atlanta, Dallas, Orlando, Baton Rouge, Naples, and Tampa markets.  Funded loan origination and renewal mix in the second quarter of 2017 was 41% fixed rate and 59% floating rate, and total loans outstanding (excluding non-accruals) were 43% fixed and 57% floating.   Commitments originated and/or renewed during the second quarter of 2017 were $1.6 billion (up 28% on a linked quarter basis).  Loans originated and/or renewed during the second quarter of 2017 totaled $1.0 billion (up 24% on a linked quarter basis).  At June 30, 2017, the Company's probability-weighted commercial loan pipeline was approximately $1.0 billion.  

Table C - Period-End Loans

(Dollars in thousands)



















As of and For the Three Months Ended








Linked Qtr Change


Year/Year Change


Mix


6/30/2017


3/31/2017


6/30/2016


$

%


Annualized


$

%


6/30/2017

3/31/2017

Legacy loans:

















   Commercial

$          10,055,791


$       9,581,229


$       8,784,789


474,562

5.0


19.8%


1,271,002

14.5


74.5%

74.1%

   Residential mortgage

970,961


901,859


794,701


69,102

7.7


30.6%


176,260

22.2


7.2%

7.0%

   Consumer

2,466,658


2,440,356


2,405,359


26,302

1.1


4.3%


61,299

2.5


18.3%

18.9%

Total legacy loans

13,493,410


12,923,444


11,984,849


569,966

4.4


17.6%


1,508,561

12.6


100.0%

100.0%


















Acquired loans:

















   Balance at beginning of period

2,208,758


2,370,047


2,922,547


(161,289)

(6.8)




(713,789)

(24.4)




   Loans acquired during the period

-


-


-


-

-




-

-




   Net paydown activity

(146,152)


(161,289)


(184,835)


15,137

(9.4)




38,683

(20.9)




Total acquired loans

2,062,606


2,208,758


2,737,712


(146,152)

(6.6)




(675,106)

(24.7)




   Total loans

$          15,556,016


$     15,132,202


$     14,722,561


423,814

2.8




833,455

5.7




Energy loans outstanding totaled $552 million at June 30, 2017, down $12 million, or 2%, compared to March 31, 2017, and equated to approximately 3.5% of total loans (compared to 3.7% at March 31, 2017).  Energy-related commitments totaled $1.0 billion at June 30, 2017, up $4 million, or less than 1%, compared to March 31, 2017. E&P companies accounted for 48% of energy loans outstanding and 55% of energy loan commitments, midstream companies accounted for 19% of energy loans and 21% of energy loan commitments, and service companies accounted for 33% of energy loans and 24% of energy loan commitments.

At June 30, 2017, $95 million in energy loans were on non-accrual status (down $19 million, or 16%, compared to March 31, 2017), and $2.4 million in energy loans (excluding non-accruing loans) were past due greater than 30 days at quarter-end.  Classified energy loans decreased $54 million, or 30%, and criticized energy loans decreased $71 million, or 29%, between quarter-ends. At June 30, 2017,  approximately 23% of energy loans were classified and 32% were criticized, compared to approximately 32% and 44%, respectively, at March 31, 2017.  Since December 2014, 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 8 of this press release and in the supplemental investor presentation.

At June 30, 2017, the Company's indirect automobile lending business had approximately $92 million in loans outstanding, down $18 million, or 16%, compared to March 31, 2017 (0.6% of total loans outstanding compared to 0.7% at March 31, 2017).

Deposits

Total deposits decreased $459 million, or 3%, between March 31, 2017 and June 30, 2017.  Over that period, non-interest-bearing deposits decreased $11 million, or less than 1%, and equated to 30% of total deposits at June 30, 2017.  Money market accounts decreased $355 million, or 6%, NOW accounts increased $4 million, or less than 1%, time deposits decreased $81 million, or 4%, and savings deposits declined $15 million, or 2%. Deposit growth during the second quarter of 2017 was strongest in the Lake Charles, Huntsville, Birmingham, Dallas, and Baton Rouge markets.  

Table D - Period-End Deposits

(Dollars in thousands)








Linked Qtr Change


Year/Year Change


Mix


6/30/2017


3/31/2017


6/30/2016


$

%

Annualized


$

%


6/30/2017

3/31/2017

Non-interest-bearing

$             5,020,195


$       5,031,583


$    4,539,254


(11,388)

(0.2)

(0.9%)


480,941

10.6


29.8%

29.1%

NOW accounts

3,089,482


3,085,720


2,985,284


3,762

0.1

0.5%


104,198

3.5


18.3%

17.8%

Money market accounts

6,017,654


6,372,855


5,391,390


(355,201)

(5.6)

(22.3%)


626,264

11.6


35.7%

36.8%

Savings accounts

797,859


813,009


796,855


(15,150)

(1.9)

(7.5%)


1,004

0.1


4.8%

4.7%

Time deposits

1,927,926


2,009,098


2,149,244


(81,172)

(4.0)

(16.2%)


(221,318)

(10.3)


11.4%

11.6%

Total deposits

$           16,853,116


$     17,312,265


$   15,862,027


(459,149)

(2.7)

(10.6%)


991,089

6.2


100.0%

100.0%

On an average balance and linked quarter basis, non-interest-bearing deposits increased $16 million, or less than 1%, and interest-bearing deposits decreased $366 million, or 3%.  The rate on average interest-bearing deposits in the second quarter of 2017 was 0.56%, up four basis points on a linked quarter basis, while the cost of total deposits (including non-interest bearing deposits) was 0.40%, up three basis points. The increase in the cost of interest-bearing deposits was primarily the result of a less favorable change in the mix of interest-bearing deposits during the second quarter of 2017. Marginal deposit rates remained relatively stable throughout the second quarter of 2017.

Other Assets And Funding

On an average balance and linked quarter basis, the investment portfolio increased $288 million, or 8%, in the second quarter of 2017, to $4.0 billion.  On a period-end basis, the investment portfolio equated to $4.1 billion, or 19% of total assets at June 30, 2017, up $184 million, or 5%, compared to March 31, 2017.  The investment portfolio had an effective duration of 3.5 years at June 30, 2017, compared to 3.8 years at March 31, 2017.  The investment portfolio had a $19 million unrealized loss at June 30, 2017, an improvement from a $32 million unrealized loss at March 31, 2017.  The average yield on investment securities increased eight basis points on a linked quarter basis to 2.32% in the second quarter of 2017. The Company holds in its investment portfolio primarily government agency securities.  Municipal securities comprised 9% of total investments at June 30, 2017.

On a linked quarter basis, average short-term borrowings (including repurchase agreements) decreased $58 million, or 14%, and the cost of short-term borrowings decreased one basis point.  At June 30, 2017, short-term borrowings (including repurchase agreements) increased $135 million, or 30%, compared to March 31, 2017.  On a linked quarter basis, average long-term debt increased $10 million, or 2%, and the cost of long-term debt increased seven basis points to 2.29%.  The cost of average interest-bearing liabilities was 0.64% in the second quarter of 2017, up five basis points on a linked quarter basis.

Asset Quality

Non-performing assets ("NPAs") decreased $21 million, or 10%, to $198 million at June 30, 2017.  Acquired NPAs increased $4 million, while legacy NPAs, which include energy and non-energy loans, decreased $25 million, or 13%, and equated to 0.87% of total assets (down from 0.99% at March 31, 2017). Energy-related NPAs (which are included in legacy loans) decreased by $21 million, or 18%, and accounted for nearly all of the decline in the Company's total NPAs during the second quarter of 2017.  At June 30, 2017, non-energy-related NPAs remained essentially unchanged during the second quarter, and equated to 0.49% of non-energy-related assets.

Aggregate loans past due 30 to 89 days increased $15 million, or 41%, and equated to 0.33% of total loans at June 30, 2017, compared to 0.24% at March 31, 2017.

Net charge-offs totaled $10.9 million in the second quarter of 2017, up $4.8 million, or 80%, compared to the first quarter of 2017.  Annualized net charge-offs equated to 0.29% of average loans in the second quarter of 2017, a 13 basis point increase on a linked quarter basis.  The Company reported no energy-related net charge-offs during the second quarter of 2017.  Approximately half of the linked-quarter increase in net charge-offs was associated with one commercial loan. The Company believes that credit situation was an isolated event and not indicative of a change in asset quality trends or general deterioration in the loan portfolio.

Capital Position

At June 30, 2017, the Company reported a non-GAAP tangible common equity ratio of 12.45%, up 35 basis points compared to March 31, 2017, and the preliminary Tier 1 leverage ratio was 13.19%, up 28 basis points compared to March 31, 2017. The Company's preliminary calculation of its total risk-based capital ratio at June 30, 2017, was 16.74%, down 18 basis points compared to March 31, 2017.

At June 30, 2017, book value per common share was $66.08, up $0.83 per share, or 1%, compared to March 31, 2017. Tangible book value per common share was $51.33, up $0.87 per share, or 2%, compared to March 31, 2017.  Based on the closing stock price of the Company's common stock of $81.35 per share on July 20, 2017, this price equated to 1.23 times June 30, 2017 book value per common share and 1.58 times June 30, 2017 tangible book value per common share.

Cash Dividends On Common Stock.  On June 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 July 20, 2017, the indicated dividend yield was 1.77% 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 second 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 July 7, 2017, the Company declared a semi-annual cash dividend of $0.828125 per depositary share that is payable on August 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 June 20, 2017, the Company declared a quarterly cash dividend of $0.412500 per depositary share that is payable on August 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 $0.17 per common share during the second quarter of 2017 and $0.28 per common share year-to-date through June 30, 2017.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with 301 combined offices, including 203 bank branch offices and one loan production office 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 also trade on the NASDAQ Global Select Market under the symbols "IBKCP" and "IBKCO", respectively.  The Company's common stock market capitalization was approximately $4.2 billion, based on the NASDAQ Global Select Market closing stock price on July 20, 2017.

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

  • Bank of America Merrill Lynch
  • 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, July 21, 2017, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 6591359.  A replay of the call will be available until midnight Central Time on July 28, 2017 by dialing 1-877-344-7529. The confirmation code for the replay is 10109052.  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:

6/30/2017



3/31/2017


% Change


6/30/2016



% Change


Net interest income

$       183,643



$       172,818


6.3


$         162,753



12.8


Net interest income (TE) (1)

186,135



175,309


6.2


165,043



12.8


Total revenues

239,609



220,164


8.8


227,670



5.2


Provision for loan losses

12,050



6,154


95.8


11,866



1.6


Non-interest expense

147,508



141,018


4.6


139,504



5.7


Net income available to common shareholders

51,069



46,874


8.9


49,956



2.2














PER COMMON SHARE DATA:












Earnings available to common shareholders - basic

$            1.00



$            1.01


(1.0)


$               1.21



(17.4)


Earnings available to common shareholders - diluted

0.99



1.00


(1.0)


1.21



(18.2)


Core earnings (Non-GAAP) (2)

1.10



1.02


7.8


1.18



(6.8)


Book value

66.08



65.25


1.3


61.05



8.2


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

51.33



50.46


1.7


42.53



20.7


Closing stock price

81.50



79.10


3.0


59.73



36.4


 Cash dividends 

0.36



0.36


-


0.34



5.9














KEY RATIOS AND OTHER DATA (6):













Net interest margin (TE) (1)

3.71%



3.53%




3.65%





Efficiency ratio

61.6



64.1




61.3





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

57.6



61.6




60.0





Return on average assets

0.96



0.94




1.02





Return on average common equity

6.08



6.41




8.05





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

8.86



8.99




11.64





Effective tax rate

35.0



30.9




33.4





Full-time equivalent employees

3,190



3,161




3,122

















CAPITAL RATIOS:













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

12.45%



12.10%




9.00%





Tangible common equity to risk-weighted assets (3)

14.32



14.49




10.16





Tier 1 leverage ratio (4)

13.19



12.91




9.70





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

14.52



14.64




10.09





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

14.50



14.60




9.99





Tier 1 capital (transitional) (4)

15.24



15.38




10.85





Total risk-based capital ratio (4)

16.74



16.92




12.47





Common stock dividend payout ratio

36.2



39.0




28.0





Classified assets to Tier 1 capital (7)

13.4



15.2




25.1

















ASSET QUALITY RATIOS (LEGACY):













Non-performing assets to total assets (5)

0.87%



0.99%




0.63%





Allowance for loan losses to loans

0.80



0.82




0.89





Net charge-offs to average loans (annualized)

0.30



0.20




0.38





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

1.27



1.52




0.92

















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



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



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



(4) Regulatory capital ratios as of June 30, 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


6/30/2017


3/31/2017


$

%


12/31/2016


9/30/2016


6/30/2016


$

%

Interest income

$       204,575


$       192,533


12,042

6.3


$       180,805


$       180,504


$       178,694


25,881

14.5

Interest expense

20,932


19,715


1,217

6.2


19,140


17,087


15,941


4,991

31.3

Net interest income

183,643


172,818


10,825

6.3


161,665


163,417


162,753


20,890

12.8

Provision for loan losses

12,050


6,154


5,896

95.8


5,169


12,484


11,866


184

1.6

Net interest income after provision for loan losses

171,593


166,664


4,929

3.0


156,496


150,933


150,887


20,706

13.7

Mortgage income

19,730


14,115


5,615

39.8


16,115


21,807


25,991


(6,261)

(24.1)

Service charges on deposit accounts

11,410


11,153


257

2.3


11,178


11,066


10,940


470

4.3

Title revenue

6,190


4,741


1,449

30.6


5,332


6,001


6,135


55

0.9

Broker commissions

2,744


2,738


6

0.2


4,006


3,797


3,712


(968)

(26.1)

ATM/debit card fee income

3,800


3,585


215

6.0


3,604


3,483


3,650


150

4.1

Income from bank owned life insurance

1,241


1,311


(70)

(5.3)


1,323


1,305


1,411


(170)

(12.0)

Gain on sale of available-for-sale securities

59



59

 N/M 


4


12


1,789


(1,730)

(96.7)

Other non-interest income

10,792


9,703


1,089

11.2


11,676


12,350


11,289


(497)

(4.4)

Total non-interest income

55,966


47,346


8,620

18.2


53,238


59,821


64,917


(8,951)

(13.8)

Salaries and employee benefits

86,317


81,853


4,464

5.5


80,811


85,028


85,105


1,212

1.4

Occupancy and equipment

16,292


16,021


271

1.7


15,551


16,526


16,813


(521)

(3.1)

Loss on early termination of loss share agreements




17,798




Amortization of acquisition intangibles

1,651


1,770


(119)

(6.7)


2,087


2,106


2,109


(458)

(21.7)

Other non-interest expense

43,248


41,374


1,874

4.5


35,323


34,479


35,477


7,771

21.9

Total non-interest expense

147,508


141,018


6,490

4.6


151,570


138,139


139,504


8,004

5.7

Income before income taxes

80,051


72,992


7,059

9.7


58,164


72,615


76,300


3,751

4.9

Income tax expense

28,033


22,519


5,514

24.5


13,034


24,547


25,490


2,543

10.0

Net income

52,018


50,473


1,545

3.1


45,130


48,068


50,810


1,208

2.4

Preferred stock dividends

(949)


(3,599)


2,650

73.6


(957)


(3,590)


(854)


(95)

(11.1)

Net income available to common shareholders

$         51,069


$         46,874


4,195

8.9


$         44,173


$         44,478


$         49,956


1,113

2.2

















Income available to common shareholders - basic

$         51,069


$         46,874


4,195

8.9


$         44,173


$         44,478


$         49,956


1,113

2.2

Earnings allocated to unvested restricted stock

(361)


(346)


(15)

4.3


(414)


(462)


(540)


179

33.1

Earnings allocated to common shareholders

$         50,708


$         46,528


4,180

9.0


$         43,759


$         44,016


$         49,416


1,292

2.6

















Earnings per common share - basic

$            1.00


$            1.01


(0.01)

(1.0)


$            1.05


$            1.08


$            1.21


(0.21)

(17.4)

















Earnings per common share - diluted

0.99


1.00


(0.01)

(1.0)


1.04


1.08


1.21


(0.22)

(18.2)

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

0.11


0.02


0.09

450.0


0.12



(0.03)


0.14

(466.7)

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

$            1.10


$            1.02


0.08

7.8


$            1.16


$            1.08


$            1.18


(0.08)

(6.8)

















NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
















Weighted average common shares outstanding - basic

50,630


46,123


4,507

9.8


41,688


40,618


40,771


9,859

24.2

Weighted average common shares outstanding - diluted

50,984


46,496


4,488

9.7


41,950


40,811


40,908


10,076

24.6

Book value shares (period end)

51,015


50,970


45

0.1


44,795


41,082


41,039


9,976

24.3

















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

















N/M = not meaningful














 

Table 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except per share data)









For the Six Months Ended






Linked Qtr Change


6/30/2017


6/30/2016


$

%

Interest income

$       397,108


$       355,630


41,478

11.7

Interest expense

40,647


31,474


9,173

29.1

Net interest income

356,461


324,156


32,305

10.0

Provision for loan losses

18,204


26,771


(8,567)

(32.0)

Net interest income after provision for loan losses

338,257


297,385


40,872

13.7

Mortgage income

33,845


45,931


(12,086)

(26.3)

Service charges on deposit accounts

22,563


21,891


672

3.1

Title revenue

10,931


10,880


51

0.5

Broker commissions

5,482


7,535


(2,053)

(27.2)

ATM/debit card fee income

7,385


7,153


232

3.2

Income from bank owned life insurance

2,552


2,613


(61)

(2.3)

Gain on sale of available-for-sale securities

59


1,985


(1,926)

(97.0)

Other non-interest income

20,495


22,774


(2,279)

(10.0)

Total non-interest income

103,312


120,762


(17,450)

(14.4)

Salaries and employee benefits

168,170


165,847


2,323

1.4

Occupancy and equipment

32,313


33,720


(1,407)

(4.2)

Amortization of acquisition intangibles

3,421


4,222


(801)

(19.0)

Other non-interest expense

84,622


73,167


11,455

15.7

Total non-interest expense

288,526


276,956


11,570

4.2

Income before income taxes

153,043


141,191


11,852

8.4

Income tax expense

50,552


47,612


2,940

6.2

Net income

102,491


93,579


8,912

9.5

Preferred stock dividends

(4,548)


(3,430)


(1,118)

(32.6)

Net income available to common shareholders

$         97,943


$         90,149


7,794

8.6








Income available to common shareholders - basic

$         97,943


$         90,149


7,794

8.6

Earnings allocated to unvested restricted stock

(707)


(1,003)


296

29.5

Earnings allocated to common shareholders

$         97,236


$         89,146


8,090

9.1








Earnings per common share - basic

$            2.01


$            2.19


(0.18)

(8.2)








Earnings per common share - diluted

1.99


2.18


(0.19)

(8.7)

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

0.14


0.01


0.13

1,300.0

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

$            2.13


$            2.19


(0.06)

(2.7)








NUMBER OF COMMON SHARES OUTSTANDING (in thousands)







Weighted average common shares outstanding - basic

48,389


40,741


7,648

18.8

Weighted average common shares outstanding - diluted

48,751


40,836


7,915

19.4

Book value shares (period end)

51,015


41,039


9,976

24.3








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








N/M = not meaningful







 

TABLE 4 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)



















PERIOD-END BALANCES





Linked Qtr Change








Year/Year Change

ASSETS

6/30/2017


3/31/2017


$


%


12/31/2016


9/30/2016


6/30/2016


$


%

Cash and due from banks

$             301,910


$             276,979


24,931


9.0


$             295,896


$             327,799


$             288,141


13,769


4.8

Interest-bearing deposits in other banks

167,450


1,024,139


(856,689)


(83.6)


1,066,230


773,454


417,157


(249,707)


(59.9)

Total cash and cash equivalents

469,360


1,301,118


(831,758)


(63.9)


1,362,126


1,101,253


705,298


(235,938)


(33.5)

Investment securities available for sale

4,009,299


3,823,953


185,346


4.8


3,446,097


2,885,413


2,776,015


1,233,284


44.4

Investment securities held to maturity

84,517


86,018


(1,501)


(1.7)


89,216


90,653


92,904


(8,387)


(9.0)

Total investment securities

4,093,816


3,909,971


183,845


4.7


3,535,313


2,976,066


2,868,919


1,224,897


42.7

Mortgage loans held for sale

140,959


122,333


18,626


15.2


157,041


210,866


229,653


(88,694)


(38.6)

Loans, net of unearned income

15,556,016


15,132,202


423,814


2.8


15,064,971


14,924,499


14,722,561


833,455


5.7

Allowance for loan losses

(146,225)


(144,890)


(1,335)


0.9


(144,719)


(148,193)


(147,452)


1,227


(0.8)

Loans, net

15,409,791


14,987,312


422,479


2.8


14,920,252


14,776,306


14,575,109


834,682


5.7

Loss share receivable

-


-


-


-


-


24,406


29,224


(29,224)


(100.0)

Premises and equipment

318,167


303,978


14,189


4.7


306,373


308,932


311,173


6,994


2.2

Goodwill and other intangibles

757,025


758,340


(1,315)


(0.2)


759,823


761,206


763,387


(6,362)


(0.8)

Other assets

601,609


625,427


(23,818)


(3.8)


618,262


629,531


678,092


(76,483)


(11.3)

Total assets

$        21,790,727


$        22,008,479


(217,752)


(1.0)


$        21,659,190


$        20,788,566


$        20,160,855


1,629,872


8.1



















LIABILITIES AND SHAREHOLDERS' EQUITY


















Non-interest-bearing deposits

$          5,020,195


$          5,031,583


(11,388)


(0.2)


$          4,928,878


$          4,787,485


$          4,539,254


480,941


10.6

NOW accounts

3,089,482


3,085,720


3,762


0.1


3,314,281


2,904,835


2,985,284


104,198


3.5

Savings and money market accounts

6,815,513


7,185,864


(370,351)


(5.2)


7,033,917


6,646,694


6,188,245


627,268


10.1

Certificates of deposit

1,927,926


2,009,098


(81,172)


(4.0)


2,131,207


2,183,503


2,149,244


(221,318)


(10.3)

Total deposits

16,853,116


17,312,265


(459,149)


(2.7)


17,408,283


16,522,517


15,862,027


991,089


6.2

Short-term borrowings

250,000


80,000


170,000


212.5


175,000


360,000


477,620


(227,620)


(47.7)

Securities sold under agreements to repurchase

333,935


368,696


(34,761)


(9.4)


334,136


353,272


288,017


45,918


15.9

Trust preferred securities

120,110


120,110


-


-


120,110


120,110


120,110


-


-

Other long-term debt

547,133


507,975


39,158


7.7


508,843


552,328


567,326


(20,193)


(3.6)

Other liabilities

183,191


161,458


21,733


13.5


173,124


213,229


208,158


(24,967)


(12.0)

Total liabilities

18,287,485


18,550,504


(263,019)


(1.4)


18,719,496


18,121,456


17,523,258


764,227


4.4

Total shareholders' equity

3,503,242


3,457,975


45,267


1.3


2,939,694


2,667,110


2,637,597


865,645


32.8

Total liabilities and shareholders' equity

$        21,790,727


$        22,008,479


(217,752)


(1.0)


$        21,659,190


$        20,788,566


$        20,160,855


1,629,872


8.1

 

TABLE 4 Continued - IBERIABANK CORPORATION


CONDENSED CONSOLIDATED BALANCE SHEETS


(Dollars in thousands)




















AVERAGE BALANCES





Linked Qtr Change








Year/Year Change

ASSETS

6/30/2017


3/31/2017


$


%


12/31/2016


9/30/2016


6/30/2016


$


%

Cash and due from banks

$             277,047


$             302,585


(25,538)


(8.4)


$             310,132


$             299,445


$             304,304


(27,257)


(9.0)

Interest-bearing deposits in other banks

555,431


1,023,688


(468,257)


(45.7)


930,524


536,741


386,139


169,292


43.8

Total cash and cash equivalents

832,478


1,326,273


(493,795)


(37.2)


1,240,656


836,186


690,443


142,035


20.6

Investment securities available for sale

3,970,021


3,679,817


290,204


7.9


3,192,040


2,825,030


2,823,292


1,146,729


40.6

Investment securities held to maturity

85,516


87,246


(1,730)


(2.0)


90,161


92,006


94,609


(9,093)


(9.6)

Total investment securities

4,055,537


3,767,063


288,474


7.7


3,282,201


2,917,036


2,917,901


1,137,636


39.0

Mortgage loans held for sale

145,274


175,512


(30,238)


(17.2)


226,565


219,369


211,468


(66,194)


(31.3)

Loans, net of unearned income

15,284,007


15,045,755


238,252


1.6


14,912,350


14,802,199


14,570,945


713,062


4.9

Allowance for loan losses

(146,448)


(145,326)


(1,122)


0.8


(150,499)


(149,101)


(149,037)


2,589


(1.7)

Loans, net

15,137,559


14,900,429


237,130


1.6


14,761,851


14,653,098


14,421,908


715,651


5.0

Loss share receivable

-


-


-


-


20,456


27,694


32,189


(32,189)


(100.0)

Premises and equipment

309,622


305,245


4,377


1.4


308,861


310,592


313,862


(4,240)


(1.4)

Goodwill and other intangibles

757,528


758,887


(1,359)


(0.2)


760,003


762,196


764,818


(7,290)


(1.0)

Other assets

605,539


628,092


(22,553)


(3.6)


615,666


666,657


651,328


(45,789)


(7.0)

Total assets

$        21,843,537


$        21,861,501


(17,964)


(0.1)


$        21,216,259


$        20,392,828


$        20,003,917


1,839,620


9.2



















LIABILITIES AND SHAREHOLDERS' EQUITY


















Non-interest-bearing deposits

$          4,992,598


$          4,976,945


15,653


0.3


$          4,869,095


$          4,605,447


$          4,463,928


528,670


11.8

NOW accounts

3,124,243


3,239,085


(114,842)


(3.5)


2,981,967


2,936,130


2,911,510


212,733


7.3

Savings and money market accounts

7,079,773


7,211,545


(131,772)


(1.8)


6,869,614


6,359,006


6,486,242


593,531


9.2

Certificates of deposit

1,964,234


2,083,749


(119,515)


(5.7)


2,172,967


2,176,159


2,117,711


(153,477)


(7.2)

Total deposits

17,160,848


17,511,324


(350,476)


(2.0)


16,893,643


16,076,742


15,979,391


1,181,457


7.4

Short-term borrowings

38,320


99,000


(60,680)


(61.3)


260,730


430,332


358,837


(320,517)


(89.3)

Securities sold under agreements to repurchase

314,090


311,726


2,364


0.8


342,953


302,119


265,465


48,625


18.3

Trust preferred securities

120,110


120,110


-


-


120,110


120,110


120,110


-


-

Other long-term debt

508,522


498,384


10,138


2.0


544,353


562,598


473,195


35,327


7.5

Other liabilities

200,673


221,993


(21,320)


(9.6)


300,768


239,911


203,050


(2,377)


(1.2)

Total liabilities

18,342,563


18,762,537


(419,974)


(2.2)


18,462,557


17,731,812


17,400,048


942,515


5.4

Total shareholders' equity

3,500,974


3,098,964


402,010


13.0


2,753,702


2,661,016


2,603,869


897,105


34.5

Total liabilities and shareholders' equity

$        21,843,537


$        21,861,501


(17,964)


(0.1)


$        21,216,259


$        20,392,828


$        20,003,917


1,839,620


9.2

 

Table 5 - IBERIABANK CORPORATION

TOTAL LOANS AND ASSET QUALITY DATA

(Dollars in thousands)
























Linked Qtr Change








Year/Year Change

LOANS

6/30/2017


3/31/2017


$


%


12/31/2016


9/30/2016


6/30/2016


$


%

Commercial loans:


















   Real estate- Owner Occupied (1)

$           2,205,408


$       2,187,406


18,002


0.8


$       2,234,636


$       2,163,541


$       2,109,448


95,960


4.5

   Real estate- Non-Owner Occupied

4,936,195


4,790,468


145,727


3.0


4,567,630


4,517,674


4,362,553


573,642


13.1

   Commercial and Industrial

3,684,081


3,455,578


228,503


6.6


3,543,122


3,462,997


3,435,809


248,272


7.2

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

551,968


563,623


(11,655)


(2.1)


561,193


599,641


662,034


(110,066)


(16.6)

      Total commercial loans

11,377,652


10,997,075


380,577


3.5


10,906,581


10,743,853


10,569,844


807,808


7.6



















Residential mortgage loans

1,346,467


1,296,358


50,109


3.9


1,267,400


1,270,530


1,249,062


97,405


7.8



















Consumer loans:


















   Home equity

2,158,948


2,146,796


12,152


0.6


2,155,926


2,151,130


2,129,812


29,136


1.4

   Indirect automobile

92,130


110,200


(18,070)


(16.4)


131,052


153,913


182,223


(90,093)


(49.4)

   Automobile

135,012


142,139


(7,127)


(5.0)


147,662


152,972


156,597


(21,585)


(13.8)

   Credit Card

87,088


84,113


2,975


3.5


82,992


80,959


78,552


8,536


10.9

   Other

358,719


355,521


3,198


0.9


373,358


371,142


356,471


2,248


0.6

      Total consumer loans

2,831,897


2,838,769


(6,872)


(0.2)


2,890,990


2,910,116


2,903,655


(71,758)


(2.5)

      Total loans

$          15,556,016


$     15,132,202


423,814


2.8


$     15,064,971


$     14,924,499


$     14,722,561


833,455


5.7



















Allowance for loan losses(3)

$             (146,225)


$        (144,890)


(1,335)


0.9


$        (144,719)


$        (148,193)


$        (147,452)


1,227


(0.8)

Loans, net

15,409,791


14,987,312


422,479


2.8


14,920,252


14,776,306


14,575,109


834,682


5.7



















Reserve for unfunded commitments

(10,462)


(11,660)


1,198


(10.3)


(11,241)


(11,990)


(13,826)


3,364


(24.3)

Allowance for credit losses

(156,687)


(156,550)


(137)


0.1


(155,960)


(160,183)


(161,278)


4,591


(2.8)



















ASSET QUALITY DATA

















Non-accrual loans (4)

$              177,956


$         191,582


(13,626)


(7.1)


$         228,501


$         235,521


$         101,738


76,218


74.9

Other real estate owned and foreclosed assets

19,718


20,055


(337)


(1.7)


21,199


22,085


27,220


(7,502)


(27.6)

Accruing loans more than 90 days past due (4)

802


7,980


(7,178)


(89.9)


1,386


5,233


751


51


6.8

Total non-performing assets

$              198,476


$         219,617


(21,141)


(9.6)


$         251,086


$         262,839


$         129,709


68,767


53.0





































Loans 30-89 days past due (4)

$                50,840


$           36,172


14,668


40.6


$           28,869


$           45,125


$           50,592


248


0.5



















Non-performing assets to total assets

0.91%


1.00%






1.16%


1.26%


0.64%





Non-performing assets to total loans and OREO

1.27


1.45






1.66


1.76


0.88





Allowance for loan losses to non-performing loans (5)

81.8


72.6






63.0


61.6


143.9





Allowance for loan losses to non-performing assets

73.7


66.0






57.6


56.4


113.7





Allowance for loan losses to total loans

0.94


0.96






0.96


0.99


1.00























Quarter-to-date charge-offs

$                12,189


$             7,291


4,898


67.2


$             9,785


$           11,500


$           12,994


(805)


(6.2)

Quarter-to-date recoveries

(1,289)


(1,235)


(54)


4.4


(2,135)


(1,277)


(1,071)


(218)


20.4

Quarter-to-date net charge-offs

$                10,900


$             6,056


4,844


80.0


$             7,650


$           10,223


$           11,923


(1,023)


(8.6)



















Net charge-offs to average loans (annualized)

0.29%


0.16%






0.21%


0.28%


0.33%
























(1) Real estate- owner-occupied is defined as loans with a "1E1" Call Report Code (loans secured by owner-occupied non-farm non-residential properties).


(2) 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.


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


(4) 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.


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


 

Table 6 - IBERIABANK CORPORATION

LEGACY LOANS AND LEGACY ASSET QUALITY DATA

(Dollars in thousands)
























Linked Qtr Change








Year/Year Change

LEGACY LOANS

6/30/2017


3/31/2017


$


%


12/31/2016


9/30/2016


6/30/2016


$


%

Commercial loans:


















   Real estate- Owner Occupied (1)

$           1,815,167


$       1,769,153


46,014


2.6


$       1,784,624


$       1,683,557


$       1,614,351


200,816


12.4

   Real estate- Non-Owner Occupied

4,299,763


4,109,356


190,407


4.6


3,838,690


3,735,926


3,483,338


816,425


23.4

   Commercial and Industrial

3,390,699


3,140,205


250,494


8.0


3,194,796


3,101,472


3,027,590


363,109


12.0

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

550,162


562,515


(12,353)


(2.2)


559,289


598,279


659,510


(109,348)


(16.6)

      Total commercial loans

10,055,791


9,581,229


474,562


5.0


9,377,399


9,119,234


8,784,789


1,271,002


14.5



















Residential mortgage loans

970,961


901,859


69,102


7.7


854,216


840,082


794,701


176,260


22.2



















Consumer loans:


















   Home equity

1,838,841


1,797,123


41,718


2.3


1,783,421


1,755,295


1,695,113


143,728


8.5

   Indirect automobile

92,106


110,174


(18,068)


(16.4)


131,048


153,904


182,199


(90,093)


(49.4)

   Automobile

127,265


133,852


(6,587)


(4.9)


138,638


143,355


146,394


(19,129)


(13.1)

   Credit card

86,587


83,612


2,975


3.6


82,524


80,452


78,044


8,543


10.9

   Other

321,859


315,595


6,264


2.0


327,678


321,048


303,609


18,250


6.0

      Total consumer loans

2,466,658


2,440,356


26,302


1.1


2,463,309


2,454,054


2,405,359


61,299


2.5

      Total loans

$          13,493,410


$     12,923,444


569,966


4.4


$     12,694,924


$     12,413,370


$     11,984,849


1,508,561


12.6



















Allowance for loan losses

$             (107,610)


$        (105,813)


(1,797)


1.7


$        (105,569)


$        (108,889)


$        (106,861)


(749)


0.7

   Loans, net

13,385,800


12,817,631


568,169


4.4


12,589,355


12,304,481


11,877,988


1,507,812


12.7



















Reserve for unfunded commitments

(10,462)


(11,660)


1,198


(10.3)


(11,241)


(11,990)


(13,826)


3,364


(24.3)

Allowance for credit losses

(118,072)


(117,473)


(599)


0.5


(116,810)


(120,879)


(120,687)


2,615


(2.2)



















ASSET QUALITY DATA

















Non-accrual loans

$              163,748


$         185,078


(21,330)


(11.5)


$         221,543


$         227,122


$           95,096


68,652


72.2

Other real estate owned and foreclosed assets

7,106


8,217


(1,111)


(13.5)


9,264


11,538


14,478


(7,372)


(50.9)

Accruing loans more than 90 days past due

610


3,100


(2,490)


(80.3)


1,104


4,936


353


257


72.8

Total non-performing assets

$              171,464


$         196,395


(24,931)


(12.7)


$         231,911


$         243,596


$         109,927


61,537


56.0



















Loans 30-89 days past due

$                40,882


$           32,286


8,596


26.6


$           24,902


$           41,157


$           45,906


(5,024)


(10.9)



















Non-performing assets to total assets

0.87%


0.99%






1.20%


1.33%


0.63%





Non-performing assets to total loans and OREO

1.27


1.52






1.83


1.96


0.92





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

65.5


56.2






47.4


46.9


112.0





Allowance for loan losses to non-performing assets

62.8


53.9






45.5


44.7


97.2





Allowance for loan losses to total loans

0.80


0.82






0.83


0.88


0.89























Quarter-to-date charge-offs

$                10,896


$             7,202


3,694


51.3


$             9,496


$           11,201


$           11,969


(1,073)


(9.0)

Quarter-to-date recoveries

(944)


(880)


(64)


7.3


(1,910)


(1,102)


(775)


(169)


21.8

Quarter-to-date net charge-offs

$                  9,952


$             6,322


3,630


57.4


$             7,586


$           10,099


$           11,194


(1,242)


(11.1)



















Net charge-offs to average loans (annualized)

0.30%


0.20%






0.24%


0.33%


0.38%
























(1) Real estate- owner-occupied is defined as loans with a "1E1" Call Report Code (loans secured by owner-occupied non-farm non-residential properties).




(2) 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.


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


 

Table 7 - IBERIABANK CORPORATION


ACQUIRED LOANS AND ACQUIRED ASSET QUALITY DATA


(Dollars in thousands)


























Linked Qtr Change








Year/Year Change


ACQUIRED LOANS

6/30/2017


3/31/2017


$


%


12/31/2016


9/30/2016


6/30/2016


$


%


Commercial loans:



















Real Estate- Owner Occupied (1)

$        390,241


$        418,254


(28,013)


(6.7)


$        450,012


$        479,984


$        495,097


(104,856)


(21.2)


Real Estate- Non-Owner Occupied

636,432


681,111


(44,679)


(6.6)


728,940


781,748


879,215


(242,783)


(27.6)


Commercial and Industrial

293,382


315,373


(21,991)


(7.0)


348,326


361,525


408,219


(114,837)


(28.1)


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

1,806


1,108


698


63.0


1,904


1,362


2,524


(718)


(28.4)


Total commercial loans

1,321,861


1,415,846


(93,985)


(6.6)


1,529,182


1,624,619


1,785,055


(463,194)


(25.9)





















Residential mortgage loans

375,506


394,499


(18,993)


(4.8)


413,184


430,448


454,361


(78,855)


(17.4)





















Consumer loans:



















Home equity

320,107


349,673


(29,566)


(8.5)


372,505


395,835


434,699


(114,592)


(26.4)


Indirect automobile

24


26


(2)


(7.7)


4


9


24


-


-


Automobile

7,747


8,287


(540)


(6.5)


9,024


9,617


10,203


(2,456)


(24.1)


Credit card

501


501


-


-


468


507


508


(7)


(1.4)


Other

36,860


39,926


(3,066)


(7.7)


45,680


50,094


52,862


(16,002)


(30.3)


Total consumer loans

365,239


398,413


(33,174)


(8.3)


427,681


456,062


498,296


(133,057)


(26.7)


Total loans

$     2,062,606


$     2,208,758


(146,152)


(6.6)


$     2,370,047


$     2,511,129


$     2,737,712


(675,106)


(24.7)





















Allowance for loan losses (3)

$        (38,615)


$        (39,077)


462


(1.2)


$        (39,150)


$        (39,304)


$        (40,591)


1,976


(4.9)


Loans, net

2,023,991


2,169,681


(145,690)


(6.7)


2,330,897


2,471,825


2,697,121


(673,130)


(25.0)





















ACQUIRED ASSET QUALITY DATA (4)



















Non-accrual loans

$         14,208


$           6,504


7,704


118.5


$           6,958


$           8,399


$           6,642


7,566


113.9


Other real estate owned and foreclosed assets

12,612


11,838


774


6.5


11,935


10,547


12,742


(130)


(1.0)


Accruing loans more than 90 days past due

192


4,880


(4,688)


(96.1)


282


297


398


(206)


(51.8)


Total non-performing assets

$         27,012


$         23,222


3,790


16.3


$         19,175


$         19,243


$         19,782


7,230


36.5





















Loans 30-89 days past due

$           9,958


$           3,886


6,072


156.3


$           3,967


$           3,968


$           4,686


5,272


112.5





















Non-performing assets to total assets

1.32%


1.06%






0.81%


0.76%


0.72%






Non-performing assets to total loans and OREO

1.30


1.05






0.81


0.76


0.72






Allowance for loan losses to non-performing loans

268.2


343.3






540.7


452.0


576.6






Allowance for loan losses to non-performing assets

143.0


168.3






204.2


204.3


205.2






Allowance for loan losses to total loans

1.87


1.77






1.65


1.57


1.48

























Quarter-to-date charge-offs

$           1,293


$                89


1,204


1,352.8


$              289


$              299


$           1,025


268


26.1


Quarter-to-date recoveries

(345)


(355)


10


(2.8)


(225)


(175)


(296)


(49)


16.6


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

$              948


$             (266)


1,214


(456.4)


$                64


$              124


$              729


219


30.0





















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

0.18%


(0.05)%






0.01%


0.02%


0.10%


























(1) Real estate- owner-occupied is defined as loans with a "1E1" Call Report Code (loans secured by owner-occupied non-farm non-residential properties).




(2) 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.


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




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


 

Table 8 - IBERIABANK CORPORATION

ENERGY LOANS, ENERGY-RELATED COMMITMENTS AND ASSET QUALITY DATA

(Dollars in thousands)



















ENERGY LOANS: (1)





Linked Qtr Change








Year/Year Change


6/30/2017


3/31/2017


$


%


12/31/2016


9/30/2016


6/30/2016


$


%

E&P

$             264,336


$             265,696


(1,360)


(0.5)


$             290,711


$             301,223


$             328,066


(63,730)


(19.4)

Midstream

106,999


123,436


(16,437)


(13.3)


90,120


110,821


123,687


(16,688)


(13.5)

Service

180,633


174,491


6,142


3.5


180,362


187,597


210,281


(29,648)


(14.1)

Total energy loans

$             551,968


$             563,623


(11,655)


(2.1)


$             561,193


$             599,641


$             662,034


(110,066)


(16.6)



















ENERGY-RELATED COMMITMENTS:


















E&P

$             571,964


$             543,689


28,275


5.2


$             545,061


$             545,383


$             572,267


(303)


(0.1)

Midstream

213,273


238,186


(24,913)


(10.5)


182,998


198,618


201,555


11,718


5.8

Service

244,267


243,991


276


0.1


241,740


261,450


295,591


(51,324)


(17.4)

Total energy-related commitments

$          1,029,504


$          1,025,866


3,638


0.4


$             969,799


$          1,005,451


$          1,069,413


(39,909)


(3.7)



















Total loans net of unearned income

$        15,556,016


$        15,132,202


423,814


2.8


$        15,064,971


$        14,924,499


$        14,722,561


833,455


5.7

Energy loan outstandings as a % of total loans

3.5%


3.7%






3.7%


4.0%


4.5%





Energy-related commitments as a % of total commitments

5.1%


5.2%






4.8%


5.1%


5.4%























Allowance for loan losses

$             (23,046)


$             (20,144)


(2,902)


14.4


$             (22,524)


$             (28,215)


$             (33,040)


9,994


(30.2)

Reserve for unfunded commitments

(147)


(203)


56


(27.6)


(1,003)


(953)


(2,223)


2,076


(93.4)

Allowance for credit losses

(23,193)


(20,347)


(2,846)


14.0


(23,527)


(29,168)


(35,263)


12,070


(34.2)



















ASSET QUALITY DATA


















Non-accrual loans

$               94,565


$             113,212


(18,647)


(16.5)


$             150,329


$             153,620


$               60,814


33,751


55.5

Other real estate owned and foreclosed assets

-


-


-


-


-


-


-


-


-

Accruing loans more than 90 days past due

-


2,175


(2,175)


(100.0)


-


-


-


-


-

Total non-performing assets

$               94,565


$             115,387


(20,822)


(18.0)


$             150,329


$             153,620


$               60,814


33,751


55.5



















Loans 30-89 days past due

$                 2,392


$                    157


2,235


1,423.6


$                 1,526


$                       -


$                 3,055


(663)


(21.7)



















Non-performing assets to total energy loans and OREO

17.13%


20.47%






26.79%


25.62%


9.19%





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

24.4


17.5






15.0


18.4


54.3





Allowance for loan losses to non-performing assets

24.4


17.5






15.0


18.4


54.3





Allowance for loan losses to total energy loans

4.18


3.57






4.01


4.71


4.99























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)

0.00%


2.05%






1.02%


4.39%


4.44%
























(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 9 - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)












For the Three Months Ended


6/30/2017


3/31/2017


Basis Point

Change

ASSETS

Average Balance

Interest

Income/Expense

Yield/Rate

(TE)(1)


Average Balance

Interest

Income/Expense

Yield/Rate

(TE)(1)


Yield/Rate

(TE)(1)

Earning assets:










Commercial loans

$        11,136,842

$             127,301

4.64%


$        10,917,714

$             119,605

4.50%


14

Residential mortgage loans

1,319,207

14,345

4.35


1,273,069

12,848

4.04


31

Consumer loans

2,827,958

37,619

5.34


2,854,972

36,524

5.19


15

Total loans

15,284,007

179,265

4.74


15,045,755

168,977

4.59


15

Loss share receivable

-

-

-


-

-

-


-

Total loans and loss share receivable

15,284,007

179,265

4.74


15,045,755

168,977

4.59


15

Mortgage loans held for sale

145,274

1,249

3.44


175,512

971

2.21


123

Investment securities (2)

4,029,491

22,307

2.32


3,741,128

19,927

2.24


8

Other earning assets

650,083

1,754

1.08


1,123,087

2,658

0.96


12

Total earning assets

20,108,855

204,575

4.13


20,085,482

192,533

3.93


20

Allowance for loan losses

(146,448)




(145,326)





Non-earning assets

1,881,130




1,921,345





Total assets

$        21,843,537




$        21,861,501















LIABILITIES AND SHAREHOLDERS' EQUITY










Interest-bearing liabilities:










NOW accounts

$          3,124,243

3,507

0.45%


$          3,239,085

3,090

0.39%


6

Savings and money market accounts

7,079,773

9,030

0.51


7,211,545

8,329

0.47


4

Certificates of deposit

1,964,234

4,576

0.93


2,083,749

4,638

0.90


3

Total interest-bearing deposits (3)

12,168,250

17,113

0.56


12,534,379

16,057

0.52


4

Short-term borrowings

352,410

226

0.26


410,726

277

0.27


(1)

Long-term debt

628,632

3,593

2.29


618,494

3,381

2.22


7

Total interest-bearing liabilities

13,149,292

20,932

0.64


13,563,599

19,715

0.59


5

Non-interest-bearing deposits

4,992,598




4,976,945





Non-interest-bearing liabilities

200,673




221,993





Total liabilities

18,342,563




18,762,537





Total shareholders' equity

3,500,974




3,098,964





Total liabilities and shareholders' equity

$        21,843,537




$        21,861,501















Net interest income/Net interest spread


$             183,643

3.49%



$             172,818

3.34%


15

Tax-equivalent benefit


2,492

0.05



2,491

0.05


-

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


$             186,135

3.71%



$             175,309

3.53%


18












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


(2) Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting.


(3) Total deposit costs for the three months ended June 30, 2017 and March 31, 2017 were 0.40% and 0.37%, respectively.


 

TABLE 9 Continued - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)














For the Three Months Ended


12/31/2016


9/30/2016


6/30/2016

ASSETS

Average Balance

Interest

Income/Expense

Yield/Rate

(TE)(1)


Average Balance

Interest Income/Expense

Yield/Rate (TE)(1)


Average Balance

Interest

Income/Expense

Yield/Rate

(TE)(1)

Earning assets:












Commercial loans

$        10,759,264

$             114,694

4.29%


$        10,646,874

$             116,653

4.41%


$        10,458,822

$             114,588

4.46%

Residential mortgage loans

1,267,413

14,038

4.43


1,254,665

13,718

4.37


1,221,254

13,781

4.51

Consumer loans

2,885,673

36,960

5.10


2,900,660

37,413

5.13


2,890,869

37,200

5.18

Total loans

14,912,350

165,692

4.46


14,802,199

167,784

4.55


14,570,945

165,569

4.61

Loss share receivable

20,456

(3,539)

(68.83)


27,694

(3,935)

(56.53)


32,189

(4,163)

(52.01)

Total loans and loss share receivable

14,932,806

162,153

4.36


14,829,893

163,849

4.44


14,603,134

161,406

4.48

Mortgage loans held for sale

226,565

1,539

2.72


219,369

1,774

3.24


211,468

1,850

3.50

Investment securities (2)

3,154,252

15,464

2.09


2,830,892

13,815

2.08


2,856,805

14,663

2.17

Other earning assets

1,034,980

1,649

0.63


641,080

1,066

0.66


483,597

775

0.64

Total earning assets

19,348,603

180,805

3.77


18,521,234

180,504

3.93


18,155,004

178,694

4.01

Allowance for loan losses

(150,499)




(149,101)




(149,037)



Non-earning assets

2,018,155




2,020,695




1,997,950



Total assets

$        21,216,259




$        20,392,828




$        20,003,917















LIABILITIES AND SHAREHOLDERS' EQUITY












Interest-bearing liabilities:












NOW accounts

$          2,981,967

$                 2,483

0.33%


$          2,936,130

$                 2,313

0.31%


$          2,911,510

$                 2,080

0.29%

Savings and money market accounts

6,869,614

7,732

0.45


6,359,006

5,826

0.36


6,486,242

5,527

0.34

Certificates of deposit

2,172,967

4,785

0.88


2,176,159

4,592

0.84


2,117,711

4,309

0.82

Total interest-bearing deposits (3)

12,024,548

15,000

0.50


11,471,295

12,731

0.44


11,515,463

11,916

0.42

Short-term borrowings

603,683

552

0.36


732,451

753

0.41


624,302

662

0.43

Long-term debt

664,463

3,588

2.15


682,708

3,603

2.10


593,305

3,363

2.28

Total interest-bearing liabilities

13,292,694

19,140

0.57


12,886,454

17,087

0.53


12,733,070

15,941

0.51

Non-interest-bearing deposits

4,869,095




4,605,447




4,463,928



Non-interest-bearing liabilities

300,768




239,911




203,050



Total liabilities

18,462,557




17,731,812




17,400,048



Total shareholders' equity

2,753,702




2,661,016




2,603,869



Total liabilities and shareholders' equity

$        21,216,259




$        20,392,828




$        20,003,917















Net interest income/Net interest spread


$             161,665

3.20%



$             163,417

3.40%



$             162,753

3.50%

Tax-equivalent benefit


2,340

0.05



2,330

0.05



2,290

0.05

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


$             164,005

3.38%



$             165,747

3.56%



$             165,043

3.65%














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


(2) Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting.


(3) Total deposit costs for the three months ended December 31, 2016, September 30, 2016, and June 30, 2016 were 0.35%, 0.32% and 0.30%, respectively.


 

TABLE 10 - IBERIABANK CORPORATION

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

(Dollars in thousands)












For the Six Months Ended


6/30/2017


6/30/2016


Basis Point

Change

ASSETS

Average Balance

Interest

Income/Expense

Yield/Rate

(TE)(1)


Average Balance

Interest

Income/Expense

Yield/Rate

(TE)(1)


Yield/Rate

(TE)(1)

Earning assets:










Commercial loans

$           11,027,883

246,906

4.57%


$           10,354,688

228,005

4.48%


9

Residential mortgage loans

1,296,266

27,193

4.20


1,211,973

27,210

4.49


(29)

Consumer loans

2,841,390

74,143

5.26


2,896,016

74,345

5.16


10

Total loans

15,165,539

348,242

4.67


14,462,677

329,560

4.62


5

Loss share receivable

-

-

-


34,775

(8,549)

(49.44)


4,944

Total loans and loss share receivable

15,165,539

348,242

4.67


14,497,452

321,011

4.49


18

Mortgage loans held for sale

160,309

2,219

2.77


186,170

3,251

3.49


(72)

Investment securities (2)

3,886,106

42,234

2.28


2,861,890

29,875

2.21


7

Other earning assets

885,278

4,413

1.01


468,667

1,493

0.64


37

Total earning assets

20,097,232

397,108

4.03


18,014,179

355,630

4.02


1

Allowance for loan losses

(145,890)




(145,215)





Non-earning assets

1,901,127




1,963,650





Total assets

$           21,852,469




$           19,832,614















LIABILITIES AND SHAREHOLDERS' EQUITY










Interest-bearing liabilities:










NOW accounts

$             3,181,347

$                      6,597

0.42%


$             2,885,726

$                     4,021

0.28%


14

Savings and money market accounts

7,145,295

17,359

0.49


6,542,540

11,166

0.34


15

Certificates of deposit

2,023,661

9,213

0.92


2,107,871

8,663

0.83


9

Total interest-bearing deposits (3)

12,350,303

33,169

0.54


11,536,137

23,850

0.42


12

Short-term borrowings

381,407

504

0.27


559,486

1,147

0.41


(14)

Long-term debt

623,591

6,974

2.26


558,404

6,477

2.33


(7)

Total interest-bearing liabilities

13,355,301

40,647

0.62


12,654,027

31,474

0.51


11

Non-interest-bearing deposits

4,984,815




4,426,093





Non-interest-bearing liabilities

211,274




185,430





Total liabilities

18,551,390




17,265,550





Total shareholders' equity

3,301,079




2,567,064





Total liabilities and shareholders' equity

$           21,852,469




$           19,832,614















Net interest income/Net interest spread


$                  356,461

3.41%



$                  324,156

3.51%


(10)

Tax-equivalent benefit


4,947

0.05



4,579

0.05


-

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


$                  361,408

3.62%



$                  328,735

3.67%


(5)












(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 six months ended June 30, 2017 and 2016 were 0.39% and 0.30%, respectively.


 

Table 11 - IBERIABANK CORPORATION

LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS

(Dollars in millions)






















For the Three Months Ended


06/30/2017


3/31/2017


12/31/2016


9/30/2016


06/30/2016

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

$                    140

$               13,150

4.27%


$                    131

$               12,760

4.12%


$                    125

$               12,481

3.97%


$                    123

$               12,183

4.00%


$              118

$               11,737

4.04%

Acquired loans (1)

39

2,134

7.40


38

2,286

6.81


37

2,452

5.99


41

2,647

6.16


43

2,866

6.07

Total loans

$                    179

$               15,284

4.70%


$                    169

$               15,046

4.55%


$                    162

$               14,933

4.30%


$                    164

$               14,830

4.38%


$              161

$               14,603

4.43%






















06/30/2017


03/31/2017


12/31/2016


9/30/2016


6/30/2016

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)

(12)

72

(2.46)


(11)

87

(2.08)


(8)

73

(1.43)


(9)

76

(1.49)


(9)

84

(1.41)

Total loans

$                    (12)

$                      72

(0.34%)


$                    (11)

$                      87

(0.31%)


$                      (8)

$                      73

(0.23%)


$                      (9)

$                      76

(0.26%)


$                (9)

$                      84

(0.27%)






















06/30/2017


03/31/2017


12/31/2016


9/30/2016


6/30/2016

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

$                    140

$               13,150

4.27%


$                    131

$               12,760

4.12%


$                    125

$               12,481

3.97%


$                    123

$               12,183

4.00%


$              118

$               11,737

4.04%

Acquired loans (1)

27

2,206

4.94


27

2,373

4.73


29

2,525

4.56


32

2,723

4.67


34

2,950

4.67

Total loans

$                    167

$               15,356

4.36%


$                    158

$               15,133

4.24%


$                    154

$               15,006

4.07%


$                    155

$               14,906

4.12%


$              152

$               14,687

4.16%





















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

 

Table 12 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)




















For the Three Months Ended


6/30/2017


3/31/2017


12/31/2016


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

$               80,051


$               52,018


$                   1.01


$               72,992


$               50,473


$                   1.08


$               58,164


$               45,130


$                   1.06

Preferred stock dividends

-


(949)


(0.02)


-


(3,599)


(0.08)


-


(957)


(0.02)

Income available to common shareholders (GAAP)

$               80,051


$               51,069


$                   0.99


$               72,992


$               46,874


$                   1.00


$               58,164


$               44,173


$                   1.04



















Non-interest income adjustments (3):


















Gain on sale of investments and other non-interest income

(59)


(38)


-


(1)


-


-


(5)


(3)


-



















Non-interest expense adjustments (3):


















Merger-related expense

1,066


789


0.02


54


35


-


-


-


-

Severance expense

378


246


-


98


63


-


188


122


-

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

(1,306)


(849)


(0.02)


1,429


929


0.02


(462)


(300)


(0.01)

Litigation expense

6,000


5,481


0.11


-


-


-


-


-


-

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

6,138


5,667


0.11


1,581


1,027


0.02


18,008


11,705


0.28

Income tax expense (benefit)

-


-


-


-


-


-


-


(6,836)


(0.16)

Core earnings (Non-GAAP)

86,130


56,698


1.10


74,572


47,901


1.02


76,167


49,039


1.16

Provision for loan losses

12,050


7,833




6,154


4,000




5,169


3,360



Pre-provision earnings, as adjusted (Non-GAAP) (3)

$               98,180


$               64,531




$               80,726


$               51,901




$               81,336


$               52,399






















For the Three Months Ended








9/30/2016


6/30/2016








Pre-tax


After-tax (1)


Per share (2)


Pre-tax


After-tax (1)


Per share (2)







Net income

$               72,615


$               48,068


$                   1.17


$               76,300


$               50,810


$                   1.23







Preferred stock dividends

-


(3,590)


(0.09)


-


(854)


(0.02)







Income available to common shareholders (GAAP)

$               72,615


$               44,478


$                   1.08


$               76,300


$               49,956


$                   1.21

























Non-interest income adjustments (3):


















Gain on sale of investments and other non-interest income

(12)


(8)


-


(1,789)


(1,163)


(0.03)

























Non-interest expense adjustments (3):


















Merger-related expense

-


-


-


-


-


-







Severance expense

-


-


-


140


91


-







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

-


-


-


(1,256)


(816)


(0.02)







Other non-core non-interest expense

-


-


-


1,177


765


0.02







Total non-interest expense adjustments

-


-


-


61


40


-







Income tax expense (benefit)

-


-


-


-


-


-







Core earnings (Non-GAAP)

72,603


44,470


1.08


74,572


48,833


1.18







Provision for loan losses

12,484


8,115




11,866


7,712









Pre-provision earnings, as adjusted (Non-GAAP) (3)

$               85,087


$               52,585




$               86,438


$               56,545

















































































(1) Excluding preferred stock dividends, merger-related expense and litigation expense, after-tax amounts 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.

(3) Adjustments to GAAP results include certain significant activities or transactions that, in management's opinion, can distort period-to-period comparisons of the Company's performance. These adjustments include, but are not limited to, realized and unrealized gains or losses on former bank-owned real estate, realized gains or losses on the sale of investment securities, merger-related expenses, litigation charges and recoveries, debt prepayment penalties, and gains, losses, and impairment charges on long-lived assets.






































For the Six Months Ended








6/30/2017


6/30/2016








Pre-tax


After-tax (1)


Per share (2)


Pre-tax


After-tax (1)


Per share (2)







Net income

$             153,043


$             102,491


$                   2.08


$             141,191


$               93,579


$                   2.26







Preferred stock dividends

-


(4,548)


(0.09)


-


(3,430)


(0.08)







Income available to common shareholders (GAAP)

$             153,043


$               97,943


$                   1.99


$             141,191


$               90,149


$                   2.18

























Non-interest income adjustments (3):


















Gain on sale of investments and other non-interest income

(60)


(38)


-


(1,985)


(1,290)


(0.03)

























Non-interest expense adjustments (3):


















Merger-related expense

1,120


824


0.02


3


2


-







Severance expense

476


309


0.01


594


386


0.01







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

123


80


-


(212)


(137)


(0.01)







Litigation expense

6,000


5,481


0.11


-


-


-







Other non-core non-interest expense

-


-


-


2,268


1,474


0.04







Total non-interest expense adjustments

7,719


6,694


0.14


2,653


1,725


0.04







Income tax expense (benefit)

-


-


-


-


-


-







Core earnings (Non-GAAP)

160,702


104,599


2.13


141,859


90,584


2.19







Provision for loan losses

18,204


11,833




26,771


17,400









Pre-provision earnings, as adjusted (Non-GAAP) (3)

$             178,906


$             116,432




$             168,630


$             107,984



























(1) Excluding preferred stock dividends, merger-related expense and litigation expense, after-tax amounts 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.

(3) Adjustments to GAAP results include certain significant activities or transactions that, in management's opinion, can distort period-to-period comparisons of the Company's performance. These adjustments include, but are not limited to, realized and unrealized gains or losses on former bank-owned real estate, realized gains or losses on the sale of investment securities, merger-related expenses, litigation charges and recoveries, debt prepayment penalties, and gains, losses, and impairment charges on long-lived assets.

 

Table 13 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)












For the Three Months Ended


6/30/2017


3/31/2017


12/31/2016


9/30/2016


6/30/2016

Net interest income (GAAP)

$                183,643


$                172,818


$                161,665


$                163,417


$                162,753

Add: Effect of tax benefit on interest income

2,492


2,491


2,340


2,330


2,290

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

186,135


175,309


164,005


165,747


165,043











Non-interest income (GAAP)

55,966


47,346


53,238


59,821


64,917

Add: Effect of tax benefit on non-interest income

668


706


713


703


760

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

56,634


48,052


53,951


60,524


65,677

Taxable equivalent revenues (Non-GAAP) (1)

242,769


223,361


217,956


226,271


230,720

Securities gains and other non-interest income

(59)


(1)


(5)


(12)


(1,789)

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

$                242,710


$                223,360


$                217,951


$                226,259


$                228,931











Total non-interest expense (GAAP)

$                147,508


$                141,018


$                151,570


$                138,139


$                139,504

Less: Intangible amortization expense

1,651


1,770


2,087


2,106


2,109

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

145,857


139,248


149,483


136,033


137,395

Less: Merger-related expense

1,066


54


-


-


-

Severance expense

378


98


188


-


140

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

(1,306)


1,429


(462)


-


(1,256)

Litigation expense

6,000


-


-


-


-

Loss on early termination of loss share agreements

-


-


17,798


-


-

Other non-core non-interest expense

-


-


484


-


1,177

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

$                139,719


$                137,667


$                131,475


$                136,033


$                137,334











Return on average assets (GAAP)

0.96%


0.94%


0.85%


0.94%


1.02%

Effect of non-core revenues and expenses

0.10


0.02


0.09


0.00


(0.02)

Core return on average assets (Non-GAAP)

1.06%


0.96%


0.94%


0.94%


1.00%











Efficiency ratio (GAAP)

61.6%


64.1%


70.5%


61.9%


61.3%

Effect of tax benefit related to tax-exempt income

(0.8)


(1.0)


(1.0)


(0.9)


(0.8)

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

60.8%


63.1%


69.5%


61.0%


60.5%

Effect of amortization of intangibles

(0.7)


(0.8)


(1.0)


(0.9)


(0.9)

Effect of non-core items

(2.5)


(0.7)


(8.2)


0.0


0.4

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

57.6%


61.6%


60.3%


60.1%


60.0%











Return on average common equity (GAAP)

6.08%


6.41%


6.70%


7.00%


8.05%

Effect of intangibles (2)

1.92


2.39


3.01


3.30


3.85

Effect of non-core revenues and expenses

0.86


0.19


1.04


0.00


(0.26)

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

8.86%


8.99%


10.75%


10.30%


11.64%











Total shareholders' equity (GAAP)

$             3,503,242


$             3,457,975


$             2,939,694


$             2,667,110


$             2,637,597

Less: Goodwill and other intangibles

752,336


753,991


755,765


757,856


759,966

Preferred stock

132,097


132,097


132,097


132,097


132,098

Tangible common equity (Non-GAAP) (2)

$             2,618,809


$             2,571,887


$             2,051,832


$             1,777,157


$             1,745,533











Total assets (GAAP)

$           21,790,727


$           22,008,479


$           21,659,190


$           20,788,566


$           20,160,855

Less: Goodwill and other intangibles

752,336


753,991


755,765


757,856


759,966

Tangible assets (Non-GAAP) (2)

$           21,038,391


$           21,254,488


$           20,903,425


$           20,030,710


$           19,400,889

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

12.45%


12.10%


9.82%


8.87%


9.00%



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


(2) Tangible calculations eliminate the effect of goodwill and acquisition-related intangibles and the corresponding amortization expense on a tax-effected basis where applicable.


 

SOURCE IBERIABANK Corporation

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