IBERIABANK Corporation Reports Third Quarter Results

LAFAYETTE, La., Oct. 19, 2017 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 130-year-old IBERIABANK (www.iberiabank.com), reported financial results for the quarter ended September 30, 2017.  For the quarter, the Company reported income available to common shareholders of $26.0 million, or $0.49 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 third quarter of 2017 was $1.00 per common share (refer to press release supplemental tables for a reconciliation of GAAP to non-GAAP metrics).

The Company completed the acquisition of Sabadell United Bank, N.A. ("Sabadell United") from Banco de Sabadell, S.A. on July 31, 2017.  The acquisition added $4.0 billion in loans and $4.4 billion in deposits. Financial statements reflect the impact of the acquisition beginning on the acquisition date and are subject to future refinements to purchase accounting adjustments. The Company incurred approximately $33.2 million in pre-tax acquisition and conversion-related expenses, including compensation-related and branch closure expenses, during the third quarter of 2017.  Sabadell United had 25 offices serving the Miami metropolitan area and three offices in Naples, Sarasota and Tampa, Florida.

Daryl G. Byrd, President and Chief Executive Officer, commented, "We welcome the former clients and associates of Sabadell United to our Company. We believe our combined franchise is well-positioned to experience significant long-term growth in Southeast Florida and enhance our strategic progress. I'm particularly proud of the tremendous effort and teamwork on the part of our legacy associates and our newest team members to successfully complete and convert the combination in a high-quality manner."

Byrd continued, "As previously announced, third quarter results were impacted by merger and conversion-related expenses, hurricane-related and energy-related provisioning and an additional accrual for the HUD legal matter. These one-off expenses do not overshadow our excitement about the growth prospects, synergies and diversifications that we expect from the Sabadell United merger, in addition to our solid legacy business where we saw annualized legacy loan growth of 10% during the quarter."

Highlights for the third quarter of 2017 and at September 30, 2017:

  • The Company's reported and cash net interest margins declined 7 and 16 basis points on a linked quarter basis, to 3.64% and 3.29%, respectively, primarily as a result of the impact of the Sabadell United acquisition, which included lower acquired loan yields and higher acquired deposit costs compared to the Company's legacy business.
  • Non-interest income decreased $2.9 million, or 5.2%, on a linked quarter basis, primarily as a result of a decline in mortgage income.
  • Total loan growth was $4.2 billion, or 27%, between June 30, 2017 and September 30, 2017. Consolidated loans, excluding the loans acquired from Sabadell United, grew $213.0 million, or 1.4% (5% annualized rate), on a period-end basis. Legacy loan growth was $333.5 million, or 2.5% (10% annualized rate) on a period-end basis.
  • Energy-related loans (or "energy loans") increased $59.6 million and equated to 3.1% of total loans at September 30, 2017, compared to 3.5% at June 30, 2017. Classified energy-related loans decreased 22%, and non-performing energy-related assets decreased 34% during the third quarter of 2017, primarily related to one large charge-off and one large pay-down.
  • Total deposits increased $4.5 billion, or 27%, between quarter-ends, and increased $98.1 million, or 0.58% (2% annualized rate), excluding acquired Sabadell United deposits.
  • Net charge-offs increased $17.9 million on a linked quarter basis, primarily related to two credits, one of which was energy-related, and equated to an annualized 0.62% of average loans. The provision for loan losses increased $6.5 million, or 54%.
  • The Company successfully completed the conversion of branch and operating systems associated with the Sabadell United acquisition over the weekend of October 13 - 15, 2017.

Updates previously reported in press release dated October 4, 2017:

  • The Company made significant progress on the resolution of non-accruals in the energy portfolio during the third quarter of 2017. Several of the energy companies with non-accrual loans outstanding were successful in negotiating pre-packaged bankruptcies. As a result of these pre-packaged bankruptcies, $17.0 million of energy-related loan net charge-offs occurred during the third quarter of 2017. Of the $17.0 million, $7.8 million had been previously provided for in prior quarters with $9.2 million provided for during the third quarter.
  • During the third quarter of 2017, the Company recorded an additional $5.7 million settlement accrual associated with the previously disclosed U.S. Department of Housing and Urban Development ("HUD") lawsuit, which negatively impacted earnings by $0.09 per share after-tax. The Company has recently negotiated a settlement amount of $11.7 million that counsel for the United States are recommending for approval by the appropriate decision makers, which remains subject to review and approval by the Department of Justice. The Company hopes to resolve this matter by the end of October 2017.
  • The Company acquired Sabadell United on July 31, 2017, and incurred approximately $33.2 million, or $0.42 per share after-tax, in acquisition, conversion, branch closure and compensation-related non-core expenses during the third quarter of 2017.
  • During the third quarter of 2017 the Company accrued $8.5 million, or $0.10 per share after-tax, of incremental provision for credit losses associated with Hurricanes Harvey and Irma. Both storms occurred during the third quarter. The Company incurred minimal damage and incremental expense related to its physical infrastructure as a result of these storms.

 

Table A - Summary Financial Results

(Dollars in thousands, except per share data)













For the Three Months Ended


9/30/2017



6/30/2017


% Change


9/30/2016


% Change

GAAP BASIS:











Income available to common shareholders

$       26,046



$       51,069


(49.0)


$       44,478


(41.4)

Earnings per common share - diluted

0.49



0.99


(50.5)


1.08


(54.6)












Average loans, net of unearned income

$18,341,138



$15,284,007


20.0


$14,802,199


23.9

Average total deposits

19,783,182



17,160,848


15.3


16,076,742


23.1

Net interest margin (TE) (1)

3.64

%


3.71

%



3.56

%













Total revenues

$     269,950



$     239,609


12.7


$     223,238


20.9

Total non-interest expense

202,986



147,508


37.6


138,139


46.9

Efficiency ratio

75.2

%


61.6

%



61.9

%


Return on average assets

0.45



0.96




0.94



Return on average common equity

2.92



6.08




7.00














NON-GAAP BASIS (2):











Core revenues

$     270,192



$     239,550


12.8


$     223,226


21.0

Core non-interest expense

163,686



141,370


15.8


138,139


18.5

Core earnings per common share - diluted

1.00



1.10


(9.1)


1.08


(7.4)

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

58.2

%


57.6

%



60.1

%


Core return on average assets

0.87



1.06




0.94



Core return on average tangible common equity (4)

8.95



8.86




10.30



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

3.29



3.45




3.31




(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 loans increased $3.1 billion, or 20%, and the associated taxable-equivalent yield decreased 1 basis point.  Over that period, average legacy loans increased $487.8 million, or 4%, with an increase in yield of 2 basis points, while average acquired loans increased $2.6 billion, or 120%, and the acquired loan yield decreased 154 basis points, as a result of the Sabadell United acquisition. All other average earning assets, including investment securities, mortgage loans held for sale, and interest-bearing deposits in other institutions, increased a net of $785.0 million, or 16%, versus the prior quarter.

Primarily as a result of lower yields on acquired loans and an increase in the cost of interest-bearing deposits, the Company's reported and cash net interest margins decreased 7 and 16 basis points on a linked quarter basis to 3.64% and 3.29%, respectively. During the third quarter of 2017, the average yield on legacy loans was 4.29%, compared to a yield of 3.68% on Sabadell United acquired loans, and the average total costs of consolidated deposits less Sabadell United was 42 basis points compared to 56 basis points for Sabadell United acquired deposits.

Overall, taxable-equivalent net interest income increased by $33.3 million, or 18%, on a linked quarter basis. The primarily volume-driven increase in net interest income included a $3.9 billion, or 19%, increase in average earning assets and a 1 basis point increase in earning asset yield, offset by a $3.4 billion, or 26%, increase in average interest-bearing liabilities and an 8 basis point increase in associated costs.

The Company's provision for loan losses increased $6.5 million, or 54%, on a linked quarter basis to $18.5 million due primarily to hurricane and energy-related provisioning. The provision for loan losses covered net charge-offs in the third quarter of 2017 by 64% compared to 111% in the second quarter of 2017.

In the third quarter of 2017, non-interest income on a GAAP basis decreased $2.9 million, or 5%, and decreased $2.6 million, or 5%, on a non-core basis, each compared to the second quarter of 2017. The primary changes in non-interest income on a linked quarter basis were:

  • Decreased mortgage income of $3.7 million, or 19%;
  • Decreased title revenues of $0.5 million, or 9%;
  • Decreased broker commissions of $0.5 million, or 17%;
  • Loss on sale of available-for-sale securities of $0.3 million; partially offset by
  • Increased deposit service charge income of $1.1 million, or 10%; and
  • Increased trust fee income of $0.7 million, or 33%.

In the third quarter of 2017, the Company originated $528 million in residential mortgage loans, down $18 million, or 3%, on a linked quarter basis. Client loan refinancing opportunities accounted for approximately 22% of mortgage loan applications in the third quarter of 2017, compared to 17% on a linked quarter basis. The Company sold $509 million in mortgage loans during the third quarter of 2017, up $1 million, or less than 1%, on a linked quarter basis. Loans held for sale of $141.2 million at September 30, 2017, was consistent with the balance at June 30, 2017. The mortgage origination locked pipeline was $188 million at September 30, 2017, down $61 million, or 24%, between quarter-ends, and was down 33% compared to one year ago. At October 16, 2017, the locked mortgage pipeline was $204 million, up 9% compared to September 30, 2017.

Non-interest expense increased $55.5 million, or 38%, on a linked quarter basis and included $1.5 million related to inclusion of two months of Sabadell United expenses. During the third quarter of 2017, the Company's non-core non-interest expense included $28.5 million in merger and conversion-related expenses, $1.1 million in compensation-related expense, $5.7 million in litigation expense, $3.7 million in branch closure and other impairment expense, and $0.4 million in storm-related expense.

Excluding non-core expenses, core non-interest expense increased $22.3 million, or 16%, and was comprised of the following items on a linked-quarter basis:

  • Increased salary and benefits cost of $9.6 million, or 11%, which included:
    • Increased regular compensation expenses of $7.5 million, including $5.8 million for Sabadell United associates;
    • Increased incentives and other benefit expenses of $1.9 million; partially offset by
    • Decreased deferred compensation of $0.4 million;
  • Increased provision for unfunded lending commitments of $4.1 million;
  • Increased occupancy and equipment expenses of $2.6 million, primarily from the addition of South Florida locations related to the Sabadell United acquisition;
  • Intangible amortization increased $2.9 million, or 174%, due to increases from the Sabadell United acquisition; and
  • Insurance expense increased $1.8 million, or 40%, primarily related to FDIC insurance on Sabadell United acquired deposits.

On a linked quarter basis, the Company's revenues and non-GAAP core revenues increased $30.3 million, or 13%, and increased $30.6 million, or 13%, respectively. Over the same period, GAAP expenses increased $55.5 million, or 38%, and non-GAAP core expenses increased $22.3 million, or 16%. The efficiency ratio increased from 61.6% to 75.2%, while the non-GAAP core tangible efficiency ratio increased from 57.6% to 58.2%, on a linked quarter basis.

 

Table B - Summary Financial Condition Results


(Dollars in thousands, except per share data)



















As of and For the Three Months Ended



9/30/2017


6/30/2017


% Change


9/30/2016


% Change

PERIOD-END BALANCES:














Total loans, net of unearned income

$19,795,085



$15,556,016



27.3


$14,924,499



32.6


Legacy loans, net of unearned income

13,826,904



13,493,410



2.5


12,413,370



11.4


Total deposits

21,334,271



16,853,116



26.6


16,522,517



29.1















ASSET QUALITY RATIOS (LEGACY):














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

0.26%



0.30%





0.33%





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

0.01



0.00





0.04





Non-performing assets to total assets (1)

0.64



0.87





1.33





Classified assets to total assets (2)

1.21



1.43





2.18


















CAPITAL RATIOS:














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

8.68%



12.45%





8.87%





Tier 1 leverage ratio (5)

10.17



13.19





9.70





Total risk-based capital ratio (5)

12.78



16.74





12.47


















PER COMMON SHARE DATA:














Book value

$         66.74



$         66.08



1.0


$         61.71



8.2


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

43.04



51.33



(16.2)


43.26



(0.5)


Closing stock price

82.15



81.50



0.8


67.12



22.4


Cash dividends

0.37



0.36



2.8


0.36



2.8














(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. Refer to Tables 5-8 for further detail.

(2) Classified assets include commercial loans rated substandard or worse and non-performing mortgage and consumer loans, and were $259 million, $283 million and $398 million at September 30, 2017, June 30, 2017, and September 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 September 30, 2017 are preliminary.

Loans

Total loans increased $4.2 billion, or 27%, to $19.8 billion at September 30, 2017, from $15.6 billion at June 30, 2017.  Over that period, acquired loans increased $3.9 billion, or 189%, as a result of the Sabadell United acquisition, and legacy loans increased $333.5 million, or 2% (10% annualized rate).  During the third quarter of 2017, legacy commercial loans increased $239.7 million, or 2% (including an increase in energy loans of $60.4 million, or 11%), legacy consumer loans increased $23.8 million, or 1% (including a decline in indirect automobile loans of $15.9 million, or 17%), and legacy mortgage loans increased $70.0 million, or 7%.  Excluding acquired loans from Sabadell United, period-end loan growth during the third quarter of 2017 was strongest in the Atlanta, Tampa, Baton Rouge and Palm Beach/Broward  markets.  Funded loan origination and renewal mix in the third quarter of 2017 was 35% fixed rate and 65% floating rate, and total loans outstanding (excluding non-accruals) were 41% fixed and 59% floating.  Commitments originated and/or renewed during the third quarter of 2017 were $1.7 billion (up 5% on a linked quarter basis).  Loans originated and/or renewed during the third quarter of 2017 totaled $1.1 billion (up 4% on a linked quarter basis).  At September 30, 2017, the Company's probability-weighted commercial loan pipeline was approximately $1.2 billion.

Table C - Period-End Loans

(Dollars in thousands)



















As of and For the Three Months Ended








Linked Qtr Change


Year/Year Change


Mix


9/30/2017


6/30/2017


9/30/2016


$

%


Annualized


$

%


9/30/2017

6/30/2017

Legacy loans:

















   Commercial

$10,295,455


$10,055,791


$  9,119,234


239,664

2.4


9.5%


1,176,221

12.9


74.5%

74.5%

   Residential mortgage

1,040,990


970,961


840,082


70,029

7.2


28.6%


200,908

23.9


7.5%

7.2%

   Consumer

2,490,459


2,466,658


2,454,054


23,801

1.0


3.8%


36,405

1.5


18.0%

18.3%

Total legacy loans

13,826,904


13,493,410


12,413,370


333,494

2.5


9.8%


1,413,534

11.4


100.0%

100.0%


















Acquired loans:

















   Balance at beginning of period

2,062,606


2,208,758


2,737,712


(146,152)

(6.6)




(675,106)

(24.7)




   Loans acquired during the period

4,026,020


-


-


4,026,020

100.0




4,026,020

100.0




   Net paydown activity

(120,445)


(146,152)


(226,583)


25,707

(17.6)




106,138

(46.8)




Total acquired loans

5,968,181


2,062,606


2,511,129


3,905,575

189.4




3,457,052

137.7




   Total loans

$19,795,085


$15,556,016


$14,924,499


4,239,069

27.3




4,870,586

32.6




As previously announced, the Company made significant progress on the resolution of non-accruals in the energy portfolio during the third quarter of 2017. Several of the energy companies with non-accrual loans outstanding were successful in negotiating pre-packaged bankruptcies. As a result of these pre-packaged bankruptcies, $17.0 million of energy-related loan net charge-offs occurred during the third quarter of 2017. Of the $17.0 million, $7.8 million had been previously provided for in prior quarters with $9.2 million provided for during the third quarter.

Energy loans outstanding totaled $611.6 million at September 30, 2017, up $59.6 million, or 11% compared to June 30, 2017, and equated to approximately 3.1% of total loans (compared to 3.5% at June 30, 2017).  Energy-related commitments totaled $1.2 billion at September 30, 2017, up $146.8 million, or 14%, compared to June 30, 2017. E&P companies accounted for 54% of energy loans outstanding and 59% of energy loan commitments, midstream companies accounted for 21% of energy loans and 22% of energy loan commitments, and service companies accounted for 25% of energy loans and 19% of energy loan commitments.

At September 30, 2017, $62.4 million in energy-related loans were on non-accrual status (down $32.1 million, or 34%, compared to June 30, 2017), and $2.3 million in energy-related loans (excluding non-accruing loans) were past due greater than 30 days at quarter-end. Classified energy loans decreased $28 million, or 22%, and criticized energy loans decreased $26 million, or 14%, between quarter-ends. At September 30, 2017,  approximately 16% of energy loans were classified and 25% were criticized, compared to approximately 23% and 32%, respectively, at June 30, 2017.  Since December 2014, the Company has experienced $36 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.

Deposits

Total deposits increased $4.5 billion, or 27%, between June 30, 2017 and September 30, 2017 primarily driven by $4.4 billion deposits acquired from Sabadell United.  Non-interest-bearing deposits increased $943.7 million, or 19%, and equated to 28% of total deposits at September 30, 2017.  Money market accounts increased $2.3 billion, or 38%, time deposits increased $729.2 million, or 38%, NOW accounts increased $458.3 million, or 15%, and savings deposits increased $45.8 million, or 6%. Excluding acquired deposits from Sabadell United, deposit growth during the third quarter of 2017 was strongest in the Dallas, Birmingham, New Orleans and Palm Beach/Broward markets.

Table D - Period-End Deposits

(Dollars in thousands)








Linked Qtr Change


Year/Year Change


Mix


9/30/2017


6/30/2017


9/30/2016


$

%

Annualized


$

%


9/30/2017

6/30/2017

Non-interest-bearing

$  5,963,943


$  5,020,195


$  4,787,485


943,748

18.8

74.5%


1,176,458

24.6


28.0%

29.8%

NOW accounts

3,547,761


3,089,482


2,904,835


458,279

14.8

58.8%


642,926

22.1


16.6%

18.3%

Money market accounts

8,321,755


6,017,654


5,847,913


2,304,101

38.3

151.9%


2,473,842

42.3


39.0%

35.7%

Savings accounts

843,662


797,859


798,781


45,803

5.7

22.8%


44,881

5.6


4.0%

4.8%

Time deposits

2,657,150


1,927,926


2,183,503


729,224

37.8

150.1%


473,647

21.7


12.4%

11.4%

Total deposits

$21,334,271


$16,853,116


$16,522,517


4,481,155

26.6

105.5%


4,811,754

29.1


100.0%

100.0%

On an average balance and linked quarter basis, non-interest-bearing deposits increased $608.5 million, or 12%, and interest-bearing deposits increased $2.0 billion, or 17%. The rate on average interest-bearing deposits in the third quarter of 2017 was 0.61%, up five basis points on a linked quarter basis, while the cost of total deposits (including non-interest bearing deposits) was 0.44%, up four basis points. The increase in the cost of interest-bearing deposits was primarily driven by the  deposits acquired from Sabadell United during the third quarter of 2017 as well as interest-rate sensitive brokered money market deposits.

Other Assets And Funding

On an average balance and linked quarter basis, the investment portfolio increased $679.9 million, or 17%, in the third quarter of 2017, to $4.7 billion.  On a period-end basis, the investment portfolio equated to $4.9 billion, or 18% of total assets at September 30, 2017, up $818.4 million, or 20%, compared to June 30, 2017.  The investment portfolio had an effective duration of 3.5 years at both September 30, 2017 and June 30, 2017.  The investment portfolio had an $18.2 million unrealized loss at September 30, 2017, an improvement from a $19.3 million unrealized loss at June 30, 2017.  The average yield on investment securities remained at 2.32% in the third quarter of 2017. The Company holds in its investment portfolio primarily government agency securities.  Municipal securities comprised 8% of total investments at September 30, 2017.

On a linked quarter basis, average short-term borrowings (including repurchase agreements) increased $1.3 billion, or 359%, and the cost of short-term borrowings increased seventy-six basis points. On a linked quarter basis, average long-term debt increased $114.1 million, or 18%, and the cost of long-term debt decreased eight basis points to 2.21%.  The cost of average interest-bearing liabilities was 0.72% in the third quarter of 2017, up eight basis points on a linked quarter basis, primarily due to the costs associated with Sabadell United acquired deposits and other liabilities.

The acquisition of Sabadell United resulted in $431.8 million of goodwill and $96.6 million of core deposit intangible assets, based on preliminary fair value estimates.

Asset Quality

Non-performing assets ("NPAs") decreased $22.5 million, or 11%, to $176.0 million at September 30, 2017.  Acquired NPAs increased $10.6 million, while legacy NPAs, which include energy and non-energy loans, decreased $33.1 million, or 19%, and equated to 0.64% of total legacy assets (down from 0.87% at June 30, 2017). Energy-related NPAs (which are included in legacy loans) decreased by $32.1 million, or 34%, and accounted for nearly all of the decline in the Company's legacy NPAs during the third quarter of 2017.  At September 30, 2017, non-energy-related NPAs decreased to 0.41% of non-energy-related assets from 0.49% at June 30, 2017.

Aggregate accruing loans past due 30 to 89 days increased $7.9 million, or 16%, and equated to 0.30% of total loans at September 30, 2017, compared to 0.33% at June 30, 2017.

Net charge-offs totaled $28.8 million in the third quarter of 2017, up $17.9 million, or 164%, compared to the second quarter of 2017.  Annualized net charge-offs equated to 0.62% of average loans in the third quarter of 2017, a 33 basis point increase on a linked quarter basis, primarily related to two credits, one of which was energy-related. The Company believes these events are not indicative of a change in asset quality trends or general deterioration in the loan portfolio.

Capital Position

At September 30, 2017, the Company reported a non-GAAP tangible common equity ratio of 8.68%, down 377 basis points compared to June 30, 2017, and the preliminary Tier 1 leverage ratio was 10.17%, down 302 basis points compared to June 30, 2017.  The Company's preliminary calculation of its total risk-based capital ratio at September 30, 2017, was 12.78%, down 396 basis points compared to June 30, 2017.

At September 30, 2017, book value per common share was $66.74, up $0.66 per share, or 1%, compared to June 30, 2017. Tangible book value per common share was $43.04, down $8.29 per share, or 16%, compared to June 30, 2017.  Based on the closing stock price of the Company's common stock of $80.15 per share on October 19, 2017, this price equated to 1.20 times September 30, 2017 book value per common share and 1.86 times September 30, 2017 tangible book value per common share.

Dividends On Capital Stock. The declaration of dividends is at the discretion of the Board of Directors. The following details the recent dividend declarations:

Common Stock.  On September 19, 2017, the Company declared a quarterly cash dividend of $0.37 per common share, a 3% increase compared to the common dividend declared in June 2017. This common dividend level equated to an annualized dividend rate of $1.48 per common share.  Based on the Company's closing common stock price on September  18, 2017, the indicated dividend yield was 1.95% per common share. The dividend is payable on October 27, 2017, to shareholders of record as of September 29, 2017.

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 $0.8281 per depositary share that was 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 September 19, 2017, the Company declared a quarterly cash dividend of $0.4125 per depositary share that is payable on November 1, 2017, to the shareholders of record as of the close of business on October 17, 2017.

Sale and Issuance of 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. These issuances were used to finance the acquisition of Sabadell United. The acquisition, which closed on July 31, 2017, provided for Banco de Sabadell, S.A. to receive 2,610,304 shares of the Company's common stock ($211.0 million based on the Company's closing stock price of $80.85 on that date) and $809.2 million in cash. Banco de Sabadell, S.A. sold the 2.6 million shares received as part of acquisition proceeds early in the fourth quarter of 2017.

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 third quarter of 2017. The Company has approximately 747,000 shares of common stock remaining that may be purchased under the currently authorized program.

IBERIABANK Corporation

IBERIABANK Corporation is a regional financial holding company with offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, and South Carolina, offering commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, mortgage, and title insurance services.

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 $4.3 billion, based on the NASDAQ Global Select Market closing stock price on October 19, 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, October 20, 2017, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 4690812.  A replay of the call will be available until midnight Central Time on October 27, 2017 by dialing 1-877-344-7529. The confirmation code for the replay is 10112272.  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. 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:

9/30/2017


6/30/2017


% Change


9/30/2016


% Change


Net interest income 

$216,883



$183,643



18.1


$163,417



32.7


Net interest income (TE) (1)

219,468



186,135



17.9


165,747



32.4


Total revenues

269,950



239,609



12.7


223,238



20.9


Provision for loan losses 

18,514



12,050



53.6


12,484



48.3


Non-interest expense

202,986



147,508



37.6


138,139



46.9


Net income available to common shareholders

26,046



51,069



(49.0)


44,478



(41.4)















PER COMMON SHARE DATA:














Earnings available to common shareholders - basic

$      0.49



$      1.00



(51.0)


$      1.08



(54.6)


Earnings available to common shareholders - diluted

0.49



0.99



(50.5)


1.08



(54.6)


Core earnings (Non-GAAP) (2)

1.00



1.10



(9.1)


1.08



(7.4)


Book value

66.74



66.08



1.0


61.71



8.2


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

43.04



51.33



(16.2)


43.26



(0.5)


Closing stock price

82.15



81.50



0.8


67.12



22.4


Cash dividends 

0.37



0.36



2.8


0.36



2.8















KEY RATIOS AND OTHER DATA (6):














Net interest margin (TE) (1)

3.64%



3.71%





3.56%





Efficiency ratio

75.2



61.6





61.9





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

58.2



57.6





60.1





Return on average assets

0.45



0.96





0.94





Return on average common equity

2.92



6.08





7.00





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

8.95



8.86





10.30





Effective tax rate

38.8



35.0





33.8





Full-time equivalent employees

3,646



3,190





3,129


















CAPITAL RATIOS:














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

8.68%



12.45%





8.87%





Tangible common equity to risk-weighted assets (3)

10.56



14.32





10.17





Tier 1 leverage ratio (4)

10.17



13.19





9.70





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

10.93



14.52





10.13





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

10.86



14.50





10.07





Tier 1 capital (transitional) (4)

11.53



15.24





10.89





Total risk-based capital ratio (4)

12.78



16.74





12.47





Common stock dividend payout ratio

76.5



36.2





33.3





Classified assets to Tier 1 capital (7)

16.2



13.4





26.1


















ASSET QUALITY RATIOS (LEGACY):














Non-performing assets to total assets (5)

0.64%



0.87%





1.33%





Allowance for loan losses to loans

0.72



0.80





0.88





Net charge-offs to average loans (annualized)

0.81



0.30





0.33





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

1.00



1.27





1.96






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

(2) See Table 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 September 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


9/30/2017


6/30/2017


$

%


3/31/2017


12/31/2016


9/30/2016


$

%

Interest income

$  246,972


$  204,575


42,397

20.7


$  192,533


$     180,805


$  180,504


66,468

36.8

Interest expense

30,089


20,932


9,157

43.7


19,715


19,140


17,087


13,002

76.1

   Net interest income

216,883


183,643


33,240

18.1


172,818


161,665


163,417


53,466

32.7

Provision for loan losses

18,514


12,050


6,464

53.6


6,154


5,169


12,484


6,030

48.3

   Net interest income after provision for loan losses

198,369


171,593


26,776

15.6


166,664


156,496


150,933


47,436

31.4

Mortgage income

16,050


19,730


(3,680)

(18.7)


14,115


16,115


21,807


(5,757)

(26.4)

Service charges on deposit accounts

12,534


11,410


1,124

9.9


11,153


11,178


11,066


1,468

13.3

Title revenue

5,643


6,190


(547)

(8.8)


4,741


5,332


6,001


(358)

(6.0)

Broker commissions

2,269


2,744


(475)

(17.3)


2,738


4,006


3,797


(1,528)

(40.2)

ATM/debit card fee income

3,658


3,800


(142)

(3.7)


3,585


3,604


3,483


175

5.0

Income from bank owned life insurance

1,263


1,241


22

1.8


1,311


1,323


1,305


(42)

(3.2)

Gain (loss) on sale of available-for-sale securities

(242)


59


(301)

(510.2)


-


4


12


(254)

(2,116.7)

Other non-interest income

11,892


10,792


1,100

10.2


9,703


11,676


12,350


(458)

(3.7)

   Total non-interest income

53,067


55,966


(2,899)

(5.2)


47,346


53,238


59,821


(6,754)

(11.3)

Salaries and employee benefits

106,970


86,317


20,653

23.9


81,853


80,811


85,028


21,942

25.8

Occupancy and equipment

19,139


16,292


2,847

17.5


16,021


15,551


16,526


2,613

15.8

Loss on early termination of loss share agreements

-


-


-

-


-


17,798


-


-

-

Amortization of acquisition intangibles

4,527


1,651


2,876

174.2


1,770


2,087


2,106


2,421

115.0

Data processing

12,899


7,306


5,593

76.6


6,941


6,996


6,076


6,823

112.3

Professional services

22,550


11,219


11,331

101.0


5,335


4,881


5,553


16,997

306.1

Credit and other loan related expense

7,532


3,780


3,752

99.3


4,526


3,407


1,928


5,604

290.7

Other non-interest expense

29,369


20,943


8,426

40.2


24,572


20,039


20,922


8,447

40.4

   Total non-interest expense

202,986


147,508


55,478

37.6


141,018


151,570


138,139


64,847

46.9

Income before income taxes

48,450


80,051


(31,601)

(39.5)


72,992


58,164


72,615


(24,165)

(33.3)

Income tax expense

18,806


28,033


(9,227)

(32.9)


22,519


13,034


24,547


(5,741)

(23.4)

   Net income

29,644


52,018


(22,374)

(43.0)


50,473


45,130


48,068


(18,424)

(38.3)

Less: Preferred stock dividends

3,598


949


2,649

279.1


3,599


957


3,590


8

0.2

Net income available to common shareholders

$    26,046


$    51,069


(25,023)

(49.0)


$    46,874


$       44,173


$    44,478


(18,432)

(41.4)

















Income available to common shareholders - basic

$    26,046


$    51,069


(25,023)

(49.0)


$    46,874


$       44,173


$    44,478


(18,432)

(41.4)

Less: Earnings allocated to unvested restricted stock

283


361


(78)

(21.6)


346


414


462


(179)

(38.7)

Earnings allocated to common shareholders

$    25,763


$    50,708


(24,945)

(49.2)


$    46,528


$       43,759


$    44,016


(18,253)

(41.5)

















Earnings per common share - basic

$        0.49


$        1.00


(0.51)

(51.0)


$        1.01


$           1.05


$        1.08


(0.59)

(54.6)

















Earnings per common share - diluted

0.49


0.99


(0.50)

(50.5)


1.00


1.04


1.08


(0.59)

(54.6)

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

0.51


0.11


0.40

363.6


0.02


0.12


-


0.51

 N/M 

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

$        1.00


$        1.10


(0.10)

(9.1)


$        1.02


$           1.16


$        1.08


(0.08)

(7.4)

















NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
















Weighted average common shares outstanding - basic

52,424


50,630


1,794

3.5


46,123


41,688


40,618


11,806

29.1

Weighted average common shares outstanding - diluted

52,770


50,984


1,786

3.5


46,496


41,950


40,811


11,959

29.3

Book value shares (period end)

53,864


51,015


2,849

5.6


50,970


44,795


41,082


12,782

31.1


(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 Nine Months Ended






Linked Qtr Change


9/30/2017


9/30/2016


$

%

Interest income

$  644,080


$  536,134


107,946

20.1

Interest expense

70,736


48,561


22,175

45.7

   Net interest income

573,344


487,573


85,771

17.6

Provision for loan losses

36,718


39,255


(2,537)

(6.5)

   Net interest income after provision for loan losses

536,626


448,318


88,308

19.7

Mortgage income

49,895


67,738


(17,843)

(26.3)

Service charges on deposit accounts

35,097


32,957


2,140

6.5

Title revenue

16,574


16,881


(307)

(1.8)

Broker commissions

7,751


11,332


(3,581)

(31.6)

ATM/debit card fee income

11,043


10,636


407

3.8

Income from bank owned life insurance

3,815


3,918


(103)

(2.6)

Gain (loss) on sale of available-for-sale securities

(183)


1,997


(2,180)

(109.2)

Other non-interest income

32,387


35,124


(2,737)

(7.8)

   Total non-interest income

156,379


180,583


(24,204)

(13.4)

Salaries and employee benefits

275,140


250,875


24,265

9.7

Occupancy and equipment

51,452


50,246


1,206

2.4

Amortization of acquisition intangibles

7,948


6,328


1,620

25.6

Data processing

27,146


18,095


9,051

50.0

Professional services

39,104


14,272


24,832

174.0

Credit and other loan related expense

15,838


7,530


8,308

110.3

Other non-interest expense

74,884


67,749


7,135

10.5

   Total non-interest expense

491,512


415,095


76,417

18.4

Income before income taxes

201,493


213,806


(12,313)

(5.8)

Income tax expense

69,358


72,159


(2,801)

(3.9)

   Net income

132,135


141,647


(9,512)

(6.7)

Less: Preferred stock dividends

8,146


7,020


1,126

16.0

Net income available to common shareholders

$  123,989


$  134,627


(10,638)

(7.9)








Income available to common shareholders - basic

$  123,989


$  134,627


(10,638)

(7.9)

Less: Earnings allocated to unvested restricted stock

1,052


1,464


(412)

(28.1)

Earnings allocated to common shareholders

$  122,937


$  133,163


(10,226)

(7.7)








Earnings per common share - basic

$        2.47


$        3.27


(0.80)

(24.5)








Earnings per common share - diluted

2.45


3.26


(0.81)

(24.8)

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

0.68


0.01


0.67

6,700.0

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

$        3.13


$        3.27


(0.14)

(4.3)








NUMBER OF COMMON SHARES OUTSTANDING (in thousands)







Weighted average common shares outstanding - basic

49,749


41,156


8,593

20.9

Weighted average common shares outstanding - diluted

50,106


40,818


9,288

22.8

Book value shares (period end)

53,864


41,082


12,782

31.1








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

 

TABLE 4 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)



















PERIOD-END BALANCES





Linked Qtr Change








Year/Year Change

ASSETS

9/30/2017


6/30/2017


$


%


3/31/2017


12/31/2016


9/30/2016


$


%

Cash and due from banks

$     298,173


$     301,910


(3,737)


(1.2)


$     276,979


$     295,896


$     327,799


(29,626)


(9.0)

Interest-bearing deposits in other banks

583,043


167,450


415,593


248.2


1,024,139


1,066,230


773,454


(190,411)


(24.6)

Total cash and cash equivalents

881,216


469,360


411,856


87.7


1,301,118


1,362,126


1,101,253


(220,037)


(20.0)

Investment securities available for sale

4,736,339


4,009,299


727,040


18.1


3,823,953


3,446,097


2,885,413


1,850,926


64.1

Investment securities held to maturity

175,906


84,517


91,389


108.1


86,018


89,216


90,653


85,253


94.0

Total investment securities

4,912,245


4,093,816


818,429


20.0


3,909,971


3,535,313


2,976,066


1,936,179


65.1

Mortgage loans held for sale

141,218


140,959


259


0.2


122,333


157,041


210,866


(69,648)


(33.0)

Loans, net of unearned income

19,795,085


15,556,016


4,239,069


27.3


15,132,202


15,064,971


14,924,499


4,870,586


32.6

Allowance for loan losses

(136,628)


(146,225)


9,597


(6.6)


(144,890)


(144,719)


(148,193)


11,565


(7.8)

Loans, net

19,658,457


15,409,791


4,248,666


27.6


14,987,312


14,920,252


14,776,306


4,882,151


33.0

Loss share receivable

9,780


-


9,780


100.0


-


-


24,406


(14,626)


(59.9)

Premises and equipment

330,800


318,167


12,633


4.0


303,978


306,373


308,932


21,868


7.1

Goodwill and other intangibles

1,281,479


757,025


524,454


69.3


758,340


759,823


761,206


520,273


68.3

Other assets

761,440


601,609


159,831


26.6


625,427


618,262


629,531


131,909


21.0

Total assets

$27,976,635


$21,790,727


6,185,908


28.4


$22,008,479


$21,659,190


$20,788,566


7,188,069


34.6



















LIABILITIES AND SHAREHOLDERS' EQUITY


















Non-interest-bearing deposits

$  5,963,943


$  5,020,195


943,748


18.8


$  5,031,583


$  4,928,878


$  4,787,485


1,176,458


24.6

NOW accounts

3,547,761


3,089,482


458,279


14.8


3,085,720


3,314,281


2,904,835


642,926


22.1

Savings and money market accounts

9,165,417


6,815,513


2,349,904


34.5


7,185,864


7,033,917


6,646,694


2,518,723


37.9

Certificates of deposit

2,657,150


1,927,926


729,224


37.8


2,009,098


2,131,207


2,183,503


473,647


21.7

Total deposits

21,334,271


16,853,116


4,481,155


26.6


17,312,265


17,408,283


16,522,517


4,811,754


29.1

Short-term borrowings

975,008


250,000


725,008


290.0


80,000


175,000


360,000


615,008


170.8

Securities sold under agreements to repurchase

548,696


333,935


214,761


64.3


368,696


334,136


353,272


195,424


55.3

Trust preferred securities

120,110


120,110


-


-


120,110


120,110


120,110


-


-

Other long-term debt

1,007,474


547,133


460,341


84.1


507,975


508,843


552,328


455,146


82.4

Other liabilities

264,302


183,191


81,111


44.3


161,458


173,124


213,229


51,073


24.0

Total liabilities

24,249,861


18,287,485


5,962,376


32.6


18,550,504


18,719,496


18,121,456


6,128,405


33.8

Total shareholders' equity

3,726,774


3,503,242


223,532


6.4


3,457,975


2,939,694


2,667,110


1,059,664


39.7

Total liabilities and shareholders' equity

$27,976,635


$21,790,727


6,185,908


28.4


$22,008,479


$21,659,190


$20,788,566


7,188,069


34.6

 

TABLE 4 Continued - IBERIABANK CORPORATION


CONDENSED CONSOLIDATED BALANCE SHEETS


(Dollars in thousands)












AVERAGE BALANCES





Linked Qtr Change








Year/Year Change

ASSETS

9/30/2017


6/30/2017


$


%


3/31/2017


12/31/2016


9/30/2016


$


%

Cash and due from banks

$     277,968


$     277,047


921


0.3


$     302,585


$     310,132


$     299,445


(21,477)


(7.2)

Interest-bearing deposits in other banks

615,445


555,431


60,014


10.8


1,023,688


930,524


536,741


78,704


14.7

Total cash and cash equivalents

893,413


832,478


60,935


7.3


1,326,273


1,240,656


836,186


57,227


6.8

Investment securities available for sale

4,593,798


3,970,021


623,777


15.7


3,679,817


3,192,040


2,825,030


1,768,768


62.6

Investment securities held to maturity

114,895


85,516


29,379


34.4


87,246


90,161


92,006


22,889


24.9

Total investment securities

4,708,693


4,055,537


653,156


16.1


3,767,063


3,282,201


2,917,036


1,791,657


61.4

Mortgage loans held for sale

132,309


145,274


(12,965)


(8.9)


175,512


226,565


219,369


(87,060)


(39.7)

Loans, net of unearned income

18,341,138


15,284,007


3,057,131


20.0


15,045,755


14,912,350


14,802,199


3,538,939


23.9

Allowance for loan losses

(147,046)


(146,448)


(598)


0.4


(145,326)


(150,499)


(149,101)


2,055


(1.4)

Loans, net

18,194,092


15,137,559


3,056,533


20.2


14,900,429


14,761,851


14,653,098


3,540,994


24.2

Loss share receivable

21,040


-


21,040


100.0


-


20,456


27,694


(6,654)


(24.0)

Premises and equipment

327,681


309,622


18,059


5.8


305,245


308,861


310,592


17,089


5.5

Goodwill and other intangibles

1,048,804


757,528


291,276


38.5


758,887


760,003


762,196


286,608


37.6

Other assets

768,743


605,539


163,204


27.0


628,092


615,666


666,657


102,086


15.3

Total assets

$26,094,775


$21,843,537


4,251,238


19.5


$21,861,501


$21,216,259


$20,392,828


5,701,947


28.0



















LIABILITIES AND SHAREHOLDERS' EQUITY


















Non-interest-bearing deposits

$  5,601,071


$  4,992,598


608,473


12.2


$  4,976,945


$  4,869,095


$  4,605,447


995,624


21.6

NOW accounts

3,201,511


3,124,243


77,268


2.5


3,239,085


2,981,967


2,936,130


265,381


9.0

Savings and money market accounts

8,566,873


7,079,773


1,487,100


21.0


7,211,545


6,869,614


6,359,006


2,207,867


34.7

Certificates of deposit

2,413,727


1,964,234


449,493


22.9


2,083,749


2,172,967


2,176,159


237,568


10.9

Total deposits

19,783,182


17,160,848


2,622,334


15.3


17,511,324


16,893,643


16,076,742


3,706,440


23.1

Short-term borrowings

1,180,165


38,320


1,141,845


2,979.8


99,000


260,730


430,332


749,833


174.2

Securities sold under agreements to repurchase

439,077


314,090


124,987


39.8


311,726


342,953


302,119


136,958


45.3

Trust preferred securities

120,110


120,110


-


-


120,110


120,110


120,110


-


-

Other long-term debt

622,655


508,522


114,133


22.4


498,384


544,353


562,598


60,057


10.7

Other liabilities

273,163


200,673


72,490


36.1


221,993


300,768


239,911


33,252


13.9

Total liabilities

22,418,352


18,342,563


4,075,789


22.2


18,762,537


18,462,557


17,731,812


4,686,540


26.4

Total shareholders' equity

3,676,423


3,500,974


175,449


5.0


3,098,964


2,753,702


2,661,016


1,015,407


38.2

Total liabilities and shareholders' equity

$26,094,775


$21,843,537


4,251,238


19.5


$21,861,501


$21,216,259


$20,392,828


5,701,947


28.0

 

Table 5 - IBERIABANK CORPORATION


TOTAL LOANS AND ASSET QUALITY DATA


(Dollars in thousands)

















Linked Qtr Change








Year/Year Change

LOANS

9/30/2017


6/30/2017


$


%


3/31/2017


12/31/2016


9/30/2016


$


%

Commercial loans:


















   Real estate- owner occupied (1)

$  2,417,407


$  2,205,408


211,999


9.6


$  2,187,406


$  2,234,636


$  2,163,541


253,866


11.7

   Real estate- non-owner occupied

6,312,218


4,936,195


1,376,023


27.9


4,790,468


4,567,630


4,517,674


1,794,544


39.7

   Commercial and industrial

4,443,085


3,684,081


759,004


20.6


3,455,578


3,543,122


3,462,997


980,088


28.3

   Energy (real estate and commercial and industrial) (2)

611,613


551,968


59,645


10.8


563,623


561,193


599,641


11,972


2.0

      Total commercial loans

13,784,323


11,377,652


2,406,671


21.2


10,997,075


10,906,581


10,743,853


3,040,470


28.3



















Residential mortgage loans

3,024,970


1,346,467


1,678,503


124.7


1,296,358


1,267,400


1,270,530


1,754,440


138.1



















Consumer loans:


















   Home equity

2,320,233


2,158,948


161,285


7.5


2,146,796


2,155,926


2,151,130


169,103


7.9

   Indirect automobile

76,189


92,130


(15,941)


(17.3)


110,200


131,052


153,913


(77,724)


(50.5)

   Automobile

130,847


135,012


(4,165)


(3.1)


142,139


147,662


152,972


(22,125)


(14.5)

   Credit card

88,454


87,088


1,366


1.6


84,113


82,992


80,959


7,495


9.3

   Other

370,069


358,719


11,350


3.2


355,521


373,358


371,142


(1,073)


(0.3)

      Total consumer loans

2,985,792


2,831,897


153,895


5.4


2,838,769


2,890,990


2,910,116


75,676


2.6

      Total loans

$19,795,085


$15,556,016


4,239,069


27.3


$15,132,202


$15,064,971


$14,924,499


4,870,586


32.6



















Allowance for loan losses (3)

$    (136,628)


$    (146,225)


9,597


(6.6)


$    (144,890)


$    (144,719)


$    (148,193)


11,565


(7.8)

   Loans, net

19,658,457


15,409,791


4,248,666


27.6


14,987,312


14,920,252


14,776,306


4,882,151


33.0



















Reserve for unfunded commitments

(21,032)


(10,462)


(10,570)


101.0


(11,660)


(11,241)


(11,990)


(9,042)


75.4

Allowance for credit losses

(157,660)


(156,687)


(973)


0.6


(156,550)


(155,960)


(160,183)


2,523


(1.6)



















ASSET QUALITY DATA


















Non-accrual loans (4)

$     145,422


$     177,956


(32,534)


(18.3)


$     191,582


$     228,501


$     235,521


(90,099)


(38.3)

Other real estate owned and foreclosed assets

28,338


19,718


8,620


43.7


20,055


21,199


22,085


6,253


28.3

Accruing loans more than 90 days past due (4)

2,193


802


1,391


173.4


7,980


1,386


5,233


(3,040)


(58.1)

Total non-performing assets

$     175,953


$     198,476


(22,523)


(11.3)


$     219,617


$     251,086


$     262,839


(86,886)


(33.1)



















Loans 30-89 days past due (4)

$       58,773


$       50,840


7,933


15.6


$       36,172


$       28,869


$       45,125


13,648


30.2



















Non-performing assets to total assets

0.63%


0.91%






1.00%


1.16%


1.26%





Non-performing assets to total loans and OREO

0.89


1.27






1.45


1.66


1.76





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

92.6


81.8






72.6


63.0


61.6





Allowance for loan losses to non-performing assets

77.7


73.7






66.0


57.6


56.4





Allowance for loan losses to total loans

0.69


0.94






0.96


0.96


0.99























Quarter-to-date charge-offs

$       30,460


$       12,189


18,271


149.9


$         7,291


$         9,785


$       11,500


18,960


164.9

Quarter-to-date recoveries

(1,644)


(1,289)


(355)


27.5


(1,235)


(2,135)


(1,277)


(367)


28.7

Quarter-to-date net charge-offs

$       28,816


$       10,900


17,916


164.4


$         6,056


$         7,650


$       10,223


18,593


181.9



















Net charge-offs to average loans (annualized)

0.62%


0.29%






0.16%


0.21%


0.28%






(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

9/30/2017


6/30/2017


$


%


3/31/2017


12/31/2016


9/30/2016


$


%

Commercial loans:


















   Real estate- owner occupied (1)

$  1,807,670


$  1,815,167


(7,497)


(0.4)


$  1,769,153


$  1,784,624


$  1,683,557


124,113


7.4

   Real estate- non-owner occupied

4,379,801


4,299,763


80,038


1.9


4,109,356


3,838,690


3,735,926


643,875


17.2

   Commercial and industrial

3,497,374


3,390,699


106,675


3.1


3,140,205


3,194,796


3,101,472


395,902


12.8

   Energy (real estate and commercial and industrial) (2)

610,610


550,162


60,448


11.0


562,515


559,289


598,279


12,331


2.1

      Total commercial loans

10,295,455


10,055,791


239,664


2.4


9,581,229


9,377,399


9,119,234


1,176,221


12.9



















Residential mortgage loans

1,040,990


970,961


70,029


7.2


901,859


854,216


840,082


200,908


23.9



















Consumer loans:


















   Home equity

1,885,226


1,838,841


46,385


2.5


1,797,123


1,783,421


1,755,295


129,931


7.4

   Indirect automobile

76,165


92,106


(15,941)


(17.3)


110,174


131,048


153,904


(77,739)


(50.5)

   Automobile

123,900


127,265


(3,365)


(2.6)


133,852


138,638


143,355


(19,455)


(13.6)

   Credit card

87,954


86,587


1,367


1.6


83,612


82,524


80,452


7,502


9.3

   Other

317,214


321,859


(4,645)


(1.4)


315,595


327,678


321,048


(3,834)


(1.2)

      Total consumer loans

2,490,459


2,466,658


23,801


1.0


2,440,356


2,463,309


2,454,054


36,405


1.5

      Total loans

$13,826,904


$13,493,410


333,494


2.5


$12,923,444


$12,694,924


$12,413,370


1,413,534


11.4



















Allowance for loan losses

$      (99,346)


$    (107,610)


8,264


(7.7)


$    (105,813)


$    (105,569)


$    (108,889)


9,543


(8.8)

   Loans, net

13,727,558


13,385,800


341,758


2.6


12,817,631


12,589,355


12,304,481


1,423,077


11.6



















Reserve for unfunded commitments

(21,032)


(10,462)


(10,570)


101.0


(11,660)


(11,241)


(11,990)


(9,042)


75.4

Allowance for credit losses

(120,378)


(118,072)


(2,306)


2.0


(117,473)


(116,810)


(120,879)


501


(0.4)



















ASSET QUALITY DATA


















Non-accrual loans

$     129,316


$     163,748


(34,432)


(21.0)


$     185,078


$     221,543


$     227,122


(97,806)


(43.1)

Other real estate owned and foreclosed assets

7,058


7,106


(48)


(0.7)


8,217


9,264


11,538


(4,480)


(38.8)

Accruing loans more than 90 days past due

1,991


610


1,381


226.4


3,100


1,104


4,936


(2,945)


(59.7)

Total non-performing assets

$     138,365


$     171,464


(33,099)


(19.3)


$     196,395


$     231,911


$     243,596


(105,231)


(43.2)



















Loans 30-89 days past due

$        36,131


$       40,882


(4,751)


(11.6)


$       32,286


$       24,902


$       41,157


(5,026)


(12.2)



















Non-performing assets to total assets

0.64%


0.87%






0.99%


1.20%


1.33%





Non-performing assets to total loans and OREO

1.00


1.27






1.52


1.83


1.96





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

75.7


65.5






56.2


47.4


46.9





Allowance for loan losses to non-performing assets

71.8


62.8






53.9


45.5


44.7





Allowance for loan losses to total loans

0.72


0.80






0.82


0.83


0.88























Quarter-to-date charge-offs

$       29,002


$       10,896


18,106


166.2


$         7,202


$         9,496


$       11,201


17,801


158.9

Quarter-to-date recoveries

(1,218)


(944)


(274)


29.0


(880)


(1,910)


(1,102)


(116)


10.5

Quarter-to-date net charge-offs

$       27,784


$         9,952


17,832


179.2


$         6,322


$         7,586


$       10,099


17,685


175.1



















Net charge-offs to average loans (annualized)

0.81%


0.30%






0.20%


0.24%


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) 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

9/30/2017


6/30/2017


$


%


3/31/2017


12/31/2016


9/30/2016


$


%

Commercial loans:


















   Real estate- owner occupied (1)

$   609,737


$   390,241


219,496


56.2


$   418,254


$     450,012


$   479,984


129,753


27.0

   Real estate- non-owner occupied

1,932,417


636,432


1,295,985


203.6


681,111


728,940


781,748


1,150,669


147.2

  Commercial and industrial

945,711


293,382


652,329


222.3


315,373


348,326


361,525


584,186


161.6

   Energy (real estate and commercial and industrial) (2)

1,003


1,806


(803)


(44.5)


1,108


1,904


1,362


(359)


(26.4)

      Total commercial loans

3,488,868


1,321,861


2,167,007


163.9


1,415,846


1,529,182


1,624,619


1,864,249


114.7



















Residential mortgage loans

1,983,980


375,506


1,608,474


428.3


394,499


413,184


430,448


1,553,532


360.9



















Consumer loans:


















   Home equity

435,007


320,107


114,900


35.9


349,673


372,505


395,835


39,172


9.9

   Indirect automobile

24


24


-


-


26


4


9


15


166.7

   Automobile

6,947


7,747


(800)


(10.3)


8,287


9,024


9,617


(2,670)


(27.8)

   Credit card

500


501


(1)


-


501


468


507


(7)


(1.4)

   Other

52,855


36,860


15,995


43.4


39,926


45,680


50,094


2,761


5.5

      Total consumer loans

495,333


365,239


130,094


35.6


398,413


427,681


456,062


39,271


8.6

      Total loans

$5,968,181


$2,062,606


3,905,575


189.4


$2,208,758


$  2,370,047


$2,511,129


3,457,052


137.7



















Allowance for loan losses (3)

$    (37,282)


$    (38,615)


1,333


(3.5)


$    (39,077)


$     (39,150)


$    (39,304)


2,022


(5.1)

   Loans, net

5,930,899


2,023,991


3,906,908


193.0


2,169,681


2,330,897


2,471,825


3,459,074


139.9



















ACQUIRED ASSET QUALITY DATA (4)


















Non-accrual loans

$     16,106


$     14,208


1,898


13.4


$       6,504


$         6,958


$       8,399


7,707


91.8

Other real estate owned and foreclosed assets

21,280


12,612


8,668


68.7


11,838


11,935


10,547


10,733


101.8

Accruing loans more than 90 days past due

202


192


10


5.2


4,880


282


297


(95)


(32.0)

Total non-performing assets

$     37,588


$     27,012


10,576


39.2


$     23,222


$       19,175


$     19,243


18,345


95.3



















Loans 30-89 days past due

$     22,642


$       9,958


12,684


127.4


$       3,886


$         3,967


$       3,968


18,674


470.6



















Non-performing assets to total assets

0.58%


1.32%






1.06%


0.81%


0.76%





Non-performing assets to total loans and OREO

0.63


1.30






1.05


0.81


0.76





Allowance for loan losses to non-performing loans

228.6


268.2






343.3


540.7


452.0





Allowance for loan losses to non-performing assets

99.2


143.0






168.3


204.2


204.3





Allowance for loan losses to total loans

0.62


1.87






1.77


1.65


1.57























Quarter-to-date charge-offs

$       1,458


$       1,293


165


12.8


$            89


$            289


$          299


1,159


387.6

Quarter-to-date recoveries

(426)


(345)


(81)


23.5


(355)


(225)


(175)


(251)


143.4

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

$       1,032


$          948


84


8.9


$         (266)


$              64


$          124


908


732.3



















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

0.09%


0.18%






(0.05)%


0.01%


0.02%






(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)




















Linked Qtr Change








Year/Year Change

ENERGY LOANS: (1)

9/30/2017


6/30/2017


$


%


3/31/2017


12/31/2016


9/30/2016


$


%

E&P

$     330,608


$     264,336


66,272


25.1


$     265,696


$     290,711


$     301,223


29,385


9.8

Midstream

125,867


106,999


18,868


17.6


123,436


90,120


110,821


15,046


13.6

Service

155,138


180,633


(25,495)


(14.1)


174,491


180,362


187,597


(32,459)


(17.3)

Total energy loans

$     611,613


$     551,968


59,645


10.8


$     563,623


$     561,193


$     599,641


11,972


2.0



















ENERGY-RELATED COMMITMENTS:


















E&P

$     691,984


$     571,964


120,020


21.0


$     543,689


$     545,061


$     545,383


146,601


26.9

Midstream

264,401


213,273


51,128


24.0


238,186


182,998


198,618


65,783


33.1

Service

219,913


244,267


(24,354)


(10.0)


243,991


241,740


261,450


(41,537)


(15.9)

Total energy-related commitments

$  1,176,298


$  1,029,504


146,794


14.3


$  1,025,866


$     969,799


$  1,005,451


170,847


17.0



















Total loans net of unearned income

$19,795,085


$15,556,016


4,239,069


27.3


$15,132,202


$15,064,971


$14,924,499


4,870,586


32.6

Energy loan outstandings as a % of total loans

3.1%


3.5%






3.7%


3.7%


4.0%





Energy-related commitments as a % of total commitments

4.6%


5.1%






5.2%


4.8%


5.1%























Allowance for loan losses

$      (13,260)


$      (23,046)


9,786


(42.5)


$      (20,144)


$      (22,524)


$      (28,215)


14,955


(53.0)

Reserve for unfunded commitments

(1,272)


(147)


(1,125)


765.3


(203)


(1,003)


(953)


(319)


33.5

Allowance for credit losses

(14,532)


(23,193)


8,661


(37.3)


(20,347)


(23,527)


(29,168)


14,636


(50.2)



















ASSET QUALITY DATA


















Non-accrual loans

$       62,429


$       94,565


(32,136)


(34.0)


$     113,212


$     150,329


$     153,620


(91,191)


(59.4)

Other real estate owned and foreclosed assets

-


-


-


-


-


-


-


-


-

Accruing loans more than 90 days past due

-


-


-


-


2,175


-


-


-


-

Total non-performing assets

$       62,429


$       94,565


(32,136)


(34.0)


$     115,387


$     150,329


$     153,620


(91,191)


(59.4)



















Loans 30-89 days past due

$         2,323


$         2,392


(69)


(2.9)


$            157


$         1,526


$               -


2,323


100.0



















Non-performing assets to total energy loans and OREO

10.21%


17.13%






20.47%


26.79%


25.62%





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

21.2


24.4






17.5


15.0


18.4





Allowance for loan losses to non-performing assets

21.2


24.4






17.5


15.0


18.4





Allowance for loan losses to total energy loans

2.17


4.18






3.57


4.01


4.71























Quarter-to-date charge-offs

$       16,956


$               -






$         2,845


$         2,321


$         6,957





Quarter-to-date recoveries

-


-






-


(840)


-





Quarter-to-date net charge-offs

$       16,956


$               -






$         2,845


$         1,481


$         6,957





Net charge-offs to average loans (annualized)

11.56%


0.00%






2.05%


1.02%


4.39%























(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


9/30/2017


6/30/2017


Basis Point
Change

ASSETS

Average
Balance

Interest
Income/Expense

Yield/Rate
(TE)


Average
Balance

Interest
Income/Expense

Yield/Rate
(TE)


Yield/Rate
(TE)

Earning assets:










   Commercial loans

$12,951,243

$           146,003

4.52%


$11,136,842

$           127,301

4.64%


(12)

   Residential mortgage loans

2,464,348

28,645

4.65


1,319,207

14,345

4.35


30

   Consumer loans

2,925,547

42,240

5.73


2,827,958

37,619

5.34


39

      Total loans

18,341,138

216,888

4.73


15,284,007

179,265

4.74


(1)

   Loss share receivable

21,040

-

-


-

-

-


-

      Total loans and loss share receivable

18,362,178

216,888

4.72


15,284,007

179,265

4.74


(2)

Mortgage loans held for sale

132,309

1,209

3.66


145,274

1,249

3.44


22

Investment securities(2)

4,709,391

26,246

2.32


4,029,491

22,307

2.32


-

Other earning assets

768,181

2,629

1.36


650,083

1,754

1.08


28

   Total earning assets

23,972,059

246,972

4.14


20,108,855

204,575

4.13


1

Allowance for loan losses

(147,046)




(146,448)





Non-earning assets

2,269,762




1,881,130





      Total assets

$26,094,775




$21,843,537















LIABILITIES AND SHAREHOLDERS' EQUITY









Interest-bearing liabilities:










   NOW accounts

$  3,201,511

$               4,384

0.54%


$  3,124,243

$               3,507

0.45%


9

   Savings and money market accounts

8,566,873

11,650

0.54


7,079,773

9,030

0.51


3

   Certificates of deposit

2,413,727

5,766

0.95


1,964,234

4,576

0.93


2

   Total interest-bearing deposits(3)

14,182,111

21,800

0.61


12,168,250

17,113

0.56


5

   Short-term borrowings

1,619,242

4,152

1.02


352,410

226

0.26


76

   Long-term debt

742,765

4,137

2.21


628,632

3,593

2.29


(8)

      Total interest-bearing liabilities

16,544,118

30,089

0.72


13,149,292

20,932

0.64


8

Non-interest-bearing deposits

5,601,071




4,992,598





Non-interest-bearing liabilities

273,163




200,673





   Total liabilities

22,418,352




18,342,563





Total shareholders' equity

3,676,423




3,500,974





   Total liabilities and shareholders' equity

$26,094,775




$21,843,537















Net interest income/Net interest spread


$           216,883

3.42%



$           183,643

3.49%


(7)

Taxable equivalent benefit


2,585

0.04



2,492

0.05


(1)

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


$           219,468

3.64%



$           186,135

3.71%


(7)











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

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

(3) Total deposit costs for the three months ended September 30, 2017 and June 30, 2017 were 0.44% and 0.40%, respectively.

 

TABLE 9 Continued - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)














For the Three Months Ended


3/31/2017


12/31/2016


9/30/2016

ASSETS

Average
Balance

Interest
Income/Expense

Yield/Rate
(TE)


Average
Balance

Interest
Income/Expense

Yield/Rate
(TE)


Average
Balance

Interest
Income/Expense

Yield/Rate
(TE)

Earning assets:












   Commercial loans

$10,917,714

$           119,605

4.50%


$10,759,264

$           114,694

4.29%


$10,646,874

$           116,653

4.41%

   Residential mortgage loans

1,273,069

12,848

4.04


1,267,413

14,038

4.43


1,254,665

13,718

4.37

   Consumer loans

2,854,972

36,524

5.19


2,885,673

36,960

5.10


2,900,660

37,413

5.13

      Total loans

15,045,755

168,977

4.59


14,912,350

165,692

4.46


14,802,199

167,784

4.55

Loss share receivable

-

-

-


20,456

(3,539)

(68.83)


27,694

(3,935)

(56.53)

      Total loans and loss share receivable

15,045,755

168,977

4.59


14,932,806

162,153

4.36


14,829,893

163,849

4.44

Mortgage loans held for sale

175,512

971

2.21


226,565

1,539

2.72


219,369

1,774

3.24

Investment securities(2)

3,741,128

19,927

2.24


3,154,252

15,464

2.09


2,830,892

13,815

2.08

Other earning assets

1,123,087

2,658

0.96


1,034,980

1,649

0.63


641,080

1,066

0.66

      Total earning assets

20,085,482

192,533

3.93


19,348,603

180,805

3.77


18,521,234

180,504

3.93

Allowance for loan losses

(145,326)




(150,499)




(149,101)



Non-earning assets

1,921,345




2,018,155




2,020,695



      Total assets

$21,861,501




$21,216,259




$20,392,828















LIABILITIES AND SHAREHOLDERS' EQUITY











Interest-bearing liabilities:












   NOW accounts

$  3,239,085

3,090

0.39%


$  2,981,967

2,483

0.33%


$  2,936,130

2,313

0.31%

   Savings and money market accounts

7,211,545

8,329

0.47


6,869,614

7,732

0.45


6,359,006

5,826

0.36

   Certificates of deposit

2,083,749

4,638

0.90


2,172,967

4,785

0.88


2,176,159

4,592

0.84

   Total interest-bearing deposits(3)

12,534,379

16,057

0.52


12,024,548

15,000

0.50


11,471,295

12,731

0.44

   Short-term borrowings

410,726

277

0.27


603,683

552

0.36


732,451

753

0.41

   Long-term debt

618,494

3,381

2.22


664,463

3,588

2.15


682,708

3,603

2.10

      Total interest-bearing liabilities

13,563,599

19,715

0.59


13,292,694

19,140

0.57


12,886,454

17,087

0.53

Non-interest-bearing deposits

4,976,945




4,869,095




4,605,447



Non-interest-bearing liabilities

221,993




300,768




239,911



   Total liabilities

18,762,537




18,462,557




17,731,812



Total shareholders' equity

3,098,964




2,753,702




2,661,016



   Total liabilities and shareholders' equity

$21,861,501




$21,216,259




$20,392,828















Net interest income/Net interest spread


$           172,818

3.34%



$           161,665

3.20%



$           163,417

3.40%

Taxable equivalent benefit


2,491

0.05



2,340

0.05



2,330

0.05

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


$           175,309

3.53%



$           164,005

3.38%



$           165,747

3.56%













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

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

(3) Total deposit costs for the three months ended March 31, 2017, December 31, 2016, and September 30, 2016 were 0.37%, 0.35% and 0.32%, respectively.

 

TABLE 10 - IBERIABANK CORPORATION

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

(Dollars in thousands)












For the Nine Months Ended


9/30/2017


9/30/2016


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

$11,676,048

$           392,909

4.55%


$10,452,794

$           344,658

4.46%


9

   Residential mortgage loans

1,689,905

55,838

4.41


1,226,307

40,928

4.45


(4)

   Consumer loans

2,869,751

116,383

5.42


2,897,576

111,758

5.15


27

      Total loans

16,235,704

565,130

4.69


14,576,677

497,344

4.60


9

   Loss share receivable

7,090

-

-


32,398

(12,484)

(51.47)


5,147

      Total loans and loss share receivable

16,242,794

565,130

4.69


14,609,075

484,860

4.47


22

Mortgage loans held for sale

150,873

3,429

3.03


197,317

5,025

3.40


(37)

Investment securities(2)

4,163,550

68,480

2.30


2,851,482

43,691

2.17


13

Other earning assets

845,817

7,041

1.11


526,557

2,558

0.65


46

   Total earning assets

21,403,034

644,080

4.07


18,184,431

536,134

3.99


8

Allowance for loan losses

(146,280)




(146,520)





Non-earning assets

2,025,356




1,982,804





   Total assets

$23,282,110




$20,020,715















LIABILITIES AND SHAREHOLDERS' EQUITY










Interest-bearing liabilities:










   NOW accounts

$  3,188,142

$             10,981

0.46%


$  2,902,649

$               6,334

0.29%


17

   Savings and money market accounts

7,624,362

29,009

0.51


6,480,916

16,992

0.35


16

   Certificates of deposit

2,155,112

14,980

0.93


2,130,800

13,255

0.83


10

   Total interest-bearing deposits(3)

12,967,616

54,970

0.57


11,514,365

36,581

0.42


15

   Short-term borrowings

798,553

4,655

0.78


617,562

1,900

0.41


37

   Long-term debt

663,752

11,111

2.24


600,141

10,080

2.24


-

      Total interest-bearing liabilities

14,429,921

70,736

0.66


12,732,068

48,561

0.51


15

Non-interest-bearing deposits

5,192,491




4,486,314





Non-interest-bearing liabilities

232,130




203,723





   Total liabilities

19,854,542




17,422,105





Total shareholders' equity

3,427,568




2,598,610





   Total liabilities and shareholders' equity

$23,282,110




$20,020,715















Net interest income/Net interest spread


$           573,344

3.41%



$           487,573

3.47%


(6)

Tax-equivalent benefit


7,506

0.05%



6,884

0.05%


-

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


$           580,850

3.63%



$           494,457

3.63%


-











(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 nine months ended September 30, 2017 and 2016 were 0.40% and 0.30%, respectively.

 

Table 11 - IBERIABANK CORPORATION

LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS

(Dollars in millions)






















For the Three Months Ended


09/30/2017


6/30/2017


3/31/2017


12/31/2016


09/30/2016

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

$   148

$              13,638

4.29%


$   140

$13,150

4.27%


$   131

$              12,760

4.12%


$   125

$12,481

3.97%


$   123

$12,183

4.00%

Acquired loans(1)

69

4,703

5.86


39

2,134

7.40


38

2,286

6.81


37

2,452

5.99


41

2,647

6.16

Total loans

$   217

$              18,341

4.70%


$   179

$15,284

4.70%


$   169

$              15,046

4.55%


$   162

$14,933

4.30%


$   164

$14,830

4.38%






















09/30/2017


06/30/2017


3/31/2017


12/31/2016


9/30/2016

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)

(20)

120

(1.76)


(12)

72

(2.46)


(11)

87

(2.08)


(8)

73

(1.43)


(9)

76

(1.49)

Total loans

$    (20)

$                   120

(0.45%)


$    (12)

$      72

(0.34%)


$    (11)

$                    87

(0.31%)


$     (8)

$      73

(0.23%)


$     (9)

$      76

(0.26%)






















09/30/2017


06/30/2017


3/31/2017


12/31/2016


9/30/2016

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

$   148

$              13,638

4.29%


$   140

$13,150

4.27%


$   131

$              12,760

4.12%


$   125

$12,481

3.97%


$   123

$12,183

4.00%

Acquired loans(1)

49

4,823

4.10


27

2,206

4.94


27

2,373

4.73


29

2,525

4.56


32

2,723

4.67

Total loans

$   197

$              18,461

4.25%


$   167

$15,356

4.36%


$   158

$              15,133

4.24%


$   154

$15,006

4.07%


$   155

$14,906

4.12%





















(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


9/30/2017


6/30/2017


3/31/2017


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

$  48,450


$    29,644


$         0.56


$  80,051


$    52,018


$         1.01


$72,992


$    50,473


$         1.08

Less: Preferred stock dividends

-


3,598


0.07


-


949


0.02


-


3,599


0.08

Income available to common shareholders (GAAP)

$  48,450


$    26,046


$         0.49


$  80,051


$    51,069


$         0.99


$72,992


$    46,874


$         1.00



















Non-interest income adjustments(3):


















(Gain) loss on sale of investments and other non-interest income

242


157


-


(59)


(38)


-


-


-


-



















Non-interest expense adjustments(3):


















Merger-related expense

28,478


19,255


0.36


1,066


789


0.02


54


35


-

Compensation-related expense

1,092


710


0.02


378


246


-


98


63


-

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

3,661


2,380


0.04


(1,306)


(849)


(0.02)


1,429


929


0.02

Litigation expense

5,692


4,696


0.09


6,000


5,481


0.11


-


-


-

Other non-core non-interest expense

377


245


-


-


-


-


-


-


-

Total non-interest expense adjustments

39,300


27,286


0.51


6,138


5,667


0.11


1,581


1,027


0.02

Core earnings (Non-GAAP)

87,992


53,489


1.00


86,130


56,698


1.10


74,573


47,901


1.02

Provision for loan losses

18,514


12,034




12,050


7,833




6,154


4,000



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

$106,506


$    65,523




$  98,180


$    64,531




$80,727


$    51,901






















For the Three Months Ended








12/31/2016


9/30/2016








Pre-tax


After-tax (1)


Per share (2)


Pre-tax


After-tax (1)


Per share (2)







Net income

$  58,164


$    45,130


$         1.06


$  72,615


$    48,068


$         1.17







Less: Preferred stock dividends

-


957


0.02


-


3,590


0.09







Income available to common shareholders (GAAP)

$  58,164


$    44,173


$         1.04


$  72,615


$    44,478


$         1.08

























Non-interest income adjustments(3):


















(Gain) loss on sale of investments and other non-interest income

(4)


(3)


-


(12)


(8)


-

























Non-interest expense adjustments(3):


















Compensation-related expense

188


122


-


-


-


-







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

(462)


(300)


(0.01)


-


-


-







Loss on early termination of loss share agreements

17,798


11,569


0.28


-


-


-







Other non-core non-interest expense

484


314


0.01


-


-


-







Total non-interest expense adjustments

18,008


11,705


0.28


-


-


-







Income tax expense (benefit)

-


(6,836)


(0.16)


-


-


-







Core earnings (Non-GAAP)

76,168


49,039


1.16


72,603


44,470


1.08







Provision for loan losses

5,169


3,360




12,484


8,115









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

$  81,337


$    52,399




$  85,087


$    52,585































































(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 Nine Months Ended








9/30/2017


9/30/2016








Pre-tax


After-tax (1)


Per share (2)


Pre-tax


After-tax (1)


Per share (2)







Net income

$201,493


$  132,135


$         2.61


$213,806


$  141,647


$         3.43







Less: Preferred stock dividends

-


8,146


0.16


-


7,020


0.17







Income available to common shareholders (GAAP)

$201,493


$  123,989


$         2.45


$213,806


$  134,627


$         3.26

























Non-interest income adjustments(3):


















(Gain) loss on sale of investments and other non-interest income

183


119


-


(1,997)


(1,298)


(0.03)

























Non-interest expense adjustments(3):


















Merger-related expense

29,598


20,079


0.40


3


2


-







Compensation-related expense

1,568


1,019


0.02


594


386


0.01







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

3,784


2,460


0.05


(212)


(137)


(0.01)







Litigation expense

11,692


10,177


0.20


-


-


-







Other non-core non-interest expense

377


245


0.01


2,268


1,474


0.04







Total non-interest expense adjustments

47,019


33,980


0.68


2,653


1,725


0.04







Core earnings (Non-GAAP)

248,695


158,088


3.13


214,462


135,054


3.27







Provision for loan losses

36,718


23,867




39,255


25,516









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

$285,413


$  181,955




$253,717


$  160,570










(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


9/30/2017


6/30/2017


3/31/2017


12/31/2016


9/30/2016

Net interest income (GAAP)

$     216,883


$     183,643


$     172,818


$     161,665


$     163,417

Taxable equivalent benefit

2,585


2,492


2,491


2,340


2,330

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

219,468


186,135


175,309


164,005


165,747











Non-interest income (GAAP)

53,067


55,966


47,346


53,238


59,821

Taxable equivalent benefit

680


668


706


713


703

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

53,747


56,634


48,052


53,951


60,524

Taxable equivalent revenues (Non-GAAP) (1)

273,215


242,769


223,361


217,956


226,271

Securities (gains) losses and other non-interest income

242


(59)


-


(4)


(12)

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

$     273,457


$     242,710


$     223,361


$     217,952


$     226,259











Total non-interest expense (GAAP)

$     202,986


$     147,508


$     141,018


$     151,570


$     138,139

Less: Intangible amortization expense

4,527


1,651


1,770


2,087


2,106

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

198,459


145,857


139,248


149,483


136,033

Less: Merger-related expense

28,478


1,066


54


-


-

   Compensation-related expense

1,092


378


98


188


-

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

3,661


(1,306)


1,429


(462)


-

   Litigation expense

5,692


6,000


-


-


-

   Loss on early termination of loss share agreements

-


-


-


17,798


-

   Other non-core non-interest expense

377


-


-


484


-

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

$     159,159


$     139,719


$     137,667


$     131,475


$     136,033











Return on average assets (GAAP)

0.45%


0.96%


0.94%


0.85%


0.94%

Effect of non-core revenues and expenses

0.42


0.10


0.02


0.09


0.00

Core return on average assets (Non-GAAP)

0.87%


1.06%


0.96%


0.94%


0.94%











Efficiency ratio (GAAP)

75.2%


61.6%


64.1%


70.5%


61.9%

Effect of tax benefit related to tax-exempt income

(0.9)


(0.8)


(1.0)


(1.0)


(0.9)

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

74.3%


60.8%


63.1%


69.5%


61.0%

Effect of amortization of intangibles

(1.7)


(0.7)


(0.8)


(1.0)


(0.9)

Effect of non-core items

(14.4)


(2.5)


(0.7)


(8.2)


0.0

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

58.2%


57.6%


61.6%


60.3%


60.1%











Return on average common equity (GAAP)

2.92%


6.08%


6.41%


6.70%


7.00%

Effect of intangibles (2)

1.68


1.92


2.39


3.01


3.30

Effect of non-core revenues and expenses

4.35


0.86


0.19


1.04


0.00

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

8.95%


8.86%


8.99%


10.75%


10.30%











Total shareholders' equity (GAAP)

$  3,726,774


$  3,503,242


$  3,457,975


$  2,939,694


$  2,667,110

Less:  Goodwill and other intangibles

1,276,241


752,336


753,991


755,765


757,856

   Preferred stock

132,097


132,097


132,097


132,097


132,097

Tangible common equity (Non-GAAP) (2)

$  2,318,436


$  2,618,809


$  2,571,887


$  2,051,832


$  1,777,157











Total assets (GAAP)

$27,976,635


$21,790,727


$22,008,479


$21,659,190


$20,788,566

Less:  Goodwill and other intangibles

1,276,241


752,336


753,991


755,765


757,856

Tangible assets (Non-GAAP) (2)

$26,700,394


$21,038,391


$21,254,488


$20,903,425


$20,030,710

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

8.68%


12.45%


12.10%


9.82%


8.87%


(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; Jefferson G. Parker, Vice Chairman, Director of Capital Markets and Investor Relations (504) 310-7314