IBERIABANK Corporation Reports Fourth Quarter Results

LAFAYETTE, La., Jan. 25, 2018 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 130-year-old IBERIABANK (www.iberiabank.com), reported financial results for the fourth quarter ended December 31, 2017. For the quarter, the Company reported income available to common shareholders of $9.3 million, or $0.17 diluted earnings per common share ("EPS"). On a non-GAAP basis, EPS excluding non-core revenues and non-core expenses ("Core EPS") in the fourth quarter of 2017 was $1.33 per common share vs. $1.16 per common share in the year-ago period, an increase of 15% (refer to press release supplemental tables for a reconciliation of GAAP to non-GAAP metrics).

Daryl G. Byrd, President and Chief Executive Officer, commented, "We delivered solid core earnings during the fourth quarter of 2017, achieving our Company's highest quarterly Core EPS result and providing a glimpse into the strong underlying earnings power of the franchise.  Our team's focus and strategic positioning drove significant improvement over the prior quarter as we continue to reap the benefits of our asset sensitive balance sheet and start to realize the synergies from the Sabadell acquisition following the conversion in mid-October.  Similar to many other banks, our GAAP metrics were materially impacted by one-time charges - the most significant of which was a write-down of deferred tax assets resulting from the enactment of the Tax Cuts and Jobs Act on December 22, 2017. Despite the one-time DTA adjustment in the quarter, we expect this tax change will significantly benefit our net income in future periods."

Byrd continued, "We are proud of the results we have achieved in the fourth quarter of 2017 and recognize the opportunity to build on current momentum in delivering improved financial results.  In December, we provided financial guidance for our 2018 earnings and we continue to work towards achieving those goals to provide outstanding returns for our shareholders.  During the first quarter of 2018, we will be providing our three-year goals, which we will refer to as our 2020 Goals."

Highlights for the fourth quarter of 2017 and at December 31, 2017:

While GAAP EPS and returns were negatively impacted by one-time items, the Company reported solid improvement in Core EPS driven by a strong core operating leverage multiple of 4.7, GAAP and cash margin expansion, cost containment and balance sheet growth during the quarter.


For the three months ended


GAAP


Non-GAAP Core


4Q17

3Q17


4Q17

3Q17

Earnings Per Common Share

$ 0.17


$ 0.49



$ 1.33


$ 1.00


Return on Average Assets

0.15

%

0.45

%


1.03

%

0.87

%

Return on Average Common Equity

1.02

%

2.92

%


7.92

%

5.99

%

Return on Average Tangible Common Equity




12.73

%

8.95

%

Efficiency Ratio

63.5

%

75.2

%


57.9

%

60.6

%

Tangible Efficiency Ratio (TE)




55.6

%

58.2

%

 

  • The Company's reported and cash net interest margins increased 5 and 4 basis points on a linked quarter basis, to 3.69% and 3.33%, respectively, primarily as a result of increases in average earning assets and higher loan yields, offset by smaller increases in average interest-bearing liabilities and costs of deposits.
  • 4Q17 results include a $51.0 million estimated net impact of the Tax Cuts and Jobs Act enacted on December 22, 2017 ($0.94 per share decrease in earnings), subject to refinement in future periods as further information becomes available.
  • The effective tax rate in 2018 is expected to be 21% - 22%, which revises our previous guidance of 32.5% - 33.5% disclosed prior to the passing of tax reform.
  • Total loan growth was $0.3 billion, or 1.4% (5.6% annualized rate), in 4Q17, driven by originations in New Orleans, Atlanta and Tampa.
  • Total deposits increased $0.1 billion, or 0.6% (2.4% annualized rate), in 4Q17, driven by growth in the Houston, Acadiana, New Orleans and Baton Rouge markets.
  • Net charge-offs decreased $18.7 million on a linked quarter basis, and equated to an annualized 0.20% of average loans. The provision for loan losses decreased $4.1 million, or 22%.
  • The Company successfully completed the conversion of branch and operating systems associated with the Sabadell  acquisition over the weekend of October 13 - 15, 2017. The Company incurred $11.4 million of pre-tax merger-related expense in 4Q17 ($0.16 per share decrease in earnings).
  • On October 19, 2017, the Company entered into a Merger Agreement with Gibraltar Private Bank & Trust Company ("Gibraltar"). The Merger Agreement has been approved by the boards of directors of each company and is expected to close in the first quarter of 2018, subject to the required approval of Gibraltar's shareholders, the receipt of required regulatory approvals, and other customary closing conditions.

 

Table A - Summary Financial Results

(Dollars in thousands, except per share data)













For the Three Months Ended


12/31/2017



9/30/2017


% Change


12/31/2016


% Change

GAAP BASIS:











Income available to common shareholders

$

9,329




$

26,046



(64.2)



$

44,173



(78.9)


Earnings per common share - diluted

0.17




0.49



(65.3)



1.04



(83.7)













Average loans, net of unearned income

$

19,941,500




$

18,341,154



8.7



$

14,912,350



33.7


Average total deposits

21,378,122




19,785,328



8.1



16,893,643



26.5


Net interest margin (TE) (1)

3.69


%


3.64


%



3.38


%













Total revenues

$

290,163




$

269,950



7.5



$

214,903



35.0


Total non-interest expense

184,384




202,986



(9.2)



151,570



21.6


Efficiency ratio

63.5


%


75.2


%



70.5


%


Return on average assets

0.15




0.45





0.85




Return on average common equity

1.02




2.92





6.70















NON-GAAP BASIS (2):











Core revenues

$

290,128




$

270,192



7.4



$

214,898



35.0


Core non-interest expense

167,910




163,686



2.6



133,562



25.7


Core earnings per common share - diluted

1.33




1.00



33.0



1.16



14.7


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

55.6


%


58.2


%



60.3


%


Core return on average assets

1.03




0.87





0.94




Core return on average common equity

7.92




5.99





7.44




Core return on average tangible common equity (4)

12.73




8.95





10.75




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

3.33




3.29





3.16
















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

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

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

Operating Results

Net interest income increased 9% on a linked quarter basis.  Average loans increased $1.6 billion, or 9%, and the associated taxable-equivalent yield increased 4 basis points. All other average earning assets increased a net of $113.7 million, or 2%, versus the prior quarter.  The yield on interest earning assets was 8 basis points higher at 4.22% compared to 4.14% in the prior quarter. The average cost of interest-bearing deposits rose 4 basis points to 65 basis points compared to 61 basis points in the prior quarter.

The increase in average earning assets and higher loan yields, offset by increases in average interest-bearing liabilities and costs of deposits, resulted in net increases on a linked quarter basis to the Company's reported and cash net interest margins of 5 and 4 basis points to 3.69% and 3.33%, respectively.

The Company's provision for loan losses decreased 22% to $14.4 million primarily due to a decline in net charge-offs. The provision for loan losses covered net charge-offs in 4Q17 by 142% compared to 64% in 3Q17.

In the fourth quarter of 2017, non-interest income increased $1.6 million compared to the third quarter of 2017. The primary changes in non-interest income on a linked quarter basis were increased treasury management and customer swap commission income of $1.2 million, or 18%, increased deferred COLI income of $1.0 million, or 351%, and decreased mortgage income of $2.4 million, or 15%, of which $1.5 million was volume/mix-related and $0.9 million was margin-related.

Non-interest expense decreased $18.6 million on a linked quarter basis primarily due to higher merger-related and professional services expenses incurred in 3Q17 related to the Sabadell acquisition and the Department of Housing and Urban Development ("HUD") lawsuit. The HUD lawsuit was settled on December 11, 2017, in the amount of $11.7 million, which was previously provided for in the second ($6.0 million) and third ($5.7 million) quarters of 2017.

Non-interest expense in 4Q17 included $11.4 million in merger and conversion-related expenses, $1.5 million in compensation-related expense, $3.2 million in branch closure and other impairment expense, and $0.5 million in tax penalties and interest and storm-related expenses. Excluding these items, core non-interest expense increased $4.2 million, or 3%, primarily related to a full quarter of Sabadell expenses.

The efficiency ratio improved to 63.5% from 75.2% on a linked quarter basis, while the non-GAAP core tangible efficiency ratio decreased to 55.6% from 58.2%, over the same period. Refer to Table A for a summary of financial results on both a GAAP and non-GAAP basis.

Table B - Summary Financial Condition Results

(Dollars in thousands, except per share data)

















As of and For the Three Months Ended



12/31/2017


9/30/2017


% Change


12/31/2016


% Change

PERIOD-END BALANCES:














Total loans, net of unearned income

$

20,078,181




$

19,795,085




1.4



$

15,064,971




33.3



Total deposits

21,466,717




21,334,271




0.6



17,408,283




23.3
















ASSET QUALITY RATIOS:














Loans 30-89 days past due and still accruing as a percentage of total loans (1)

0.31

%



0.30

%





0.19

%





Loans 90 days or more past due and still accruing as a percentage of total loans (1)

0.03




0.01






0.01






Non-performing assets to total assets (1)(2)

0.64




0.63






1.16






Classified assets to total assets (3)

1.45




1.47






2.25



















CAPITAL RATIOS:














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

8.61

%



8.68

%





9.82

%





Tier 1 leverage ratio (6)

9.36




10.17






10.86






Total risk-based capital ratio (6)

12.37




12.77






14.13



















PER COMMON SHARE DATA:














Book value

$

66.17




$

66.74




(0.9)



$

62.68




5.6



Tangible book value (Non-GAAP) (4) (5)

42.56




43.04




(1.1)



45.80




(7.1)



Closing stock price

77.50




82.15




(5.7)



83.75




(7.5)



Cash dividends

0.37




0.37






0.36




2.8


















(1)

Past due and non-accrual loan amounts 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.

(2)

Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets. Refer to Table 5 for further detail.

(3)

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. Classified assets were $404 million, $410 million and $487 million at December 31, 2017, September 30, 2017, and December 31, 2016, respectively.

(4)

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

(5)

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

(6)

Regulatory capital ratios as of December 31, 2017 are preliminary.


Loans and Other Assets

Total loans increased $283.1 million, or 1.4% (5.6% annualized rate), to $20.1 billion at December 31, 2017. Period-end loan growth during 4Q17 was strongest in the New Orleans, Atlanta and Tampa markets.

Table C - Period-End Loans

(Dollars in thousands)



















As of and For the Three Months Ended








Linked Qtr Change


Year/Year Change


Mix


12/31/2017


9/30/2017


12/31/2016


$

%


Annualized


$

%


12/31/2017

9/30/2017

Legacy loans:

















Commercial

$

10,781,778



$

10,295,455



$

9,377,399



486,323


4.7



18.7

%


1,404,379


15.0



74.5

%

74.4

%

Residential mortgage

1,176,365



1,040,990



854,216



135,375


13.0



51.6

%


322,149


37.7



8.1

%

7.5

%

Consumer

2,525,008



2,496,701



2,463,309



28,307


1.1



4.5

%


61,699


2.5



17.4

%

18.1

%

Total legacy loans

14,483,151



13,833,146



12,694,924



650,005


4.7



18.6

%


1,788,227


14.1



100.0

%

100.0

%


















Acquired loans:

















Balance at beginning of period

5,961,939



2,062,606



2,511,129



3,899,333


189.0





3,450,810


137.4





Loans acquired during the period



4,026,020





(4,026,020)


(100.0)










Net paydown activity

(366,909)



(126,687)



(141,082)



(240,222)


189.6





(225,827)


160.1





Total acquired loans

5,595,030



5,961,939



2,370,047



(366,909)


(6.2)





3,224,983


136.1





Total loans

$

20,078,181



$

19,795,085



$

15,064,971



283,096


1.4





5,013,210


33.3





On an average balance and linked quarter basis, the investment portfolio increased $184.0 million in 4Q17, to $4.9 billion.  On a period-end basis, the investment portfolio equated to $4.8 billion, or 17% of total assets, at December 31, 2017, compared to $4.9 billion, or 18% of total assets, at September 30, 2017. The investment portfolio had an effective duration of 3.7 years at December 31, 2017, up from 3.5 years at September 30, 2017. The investment portfolio had a $57.2 million unrealized loss at December 31, 2017, up from an $18.4 million unrealized loss at September 30, 2017. The average yield on investment securities increased 5 basis points to 2.37% in 4Q17. The Company holds in its investment portfolio primarily government agency securities. Municipal securities comprised 9% of total investments at December 31, 2017.

Deposits and Funding

Total deposits increased $132.4 million, or 0.6% (2.4% annualized rate), to $21.5 billion at December 31, 2017. Deposit growth during 4Q17 was strongest in the Houston, Acadiana, New Orleans and Baton Rouge markets. Quarterly fluctuations in NOW and money market accounts were caused by conversion-related mapping changes.

Table D - Period-End Deposits

(Dollars in thousands)








Linked Qtr Change


Year/Year Change


Mix


12/31/2017


9/30/2017


12/31/2016


$

%

Annualized


$

%


12/31/2017

9/30/2017

Non-interest-bearing

$

6,209,925



$

5,963,943



$

4,928,878



245,982


4.1


16.3

%


1,281,047


26.0



28.9

%

28.0

%

NOW accounts

4,348,939



3,547,761



3,314,281



801,178


22.6


89.7

%


1,034,658


31.2



20.3

%

16.6

%

Money market accounts

7,674,291



8,321,755



6,219,532



(647,464)


(7.8)


(30.9)

%


1,454,759


23.4



35.7

%

39.0

%

Savings accounts

846,074



843,662



814,385



2,412


0.3


1.2

%


31,689


3.9



4.0

%

4.0

%

Time deposits

2,387,488



2,657,150



2,131,207



(269,662)


(10.1)


(40.1)

%


256,281


12.0



11.1

%

12.4

%

Total deposits

$

21,466,717



$

21,334,271



$

17,408,283



132,446


0.6


2.4

%


4,058,434


23.3



100.0

%

100.0

%

On an average balance and linked quarter basis, both non-interest-bearing deposits and interest-bearing deposits increased. The rate on average interest-bearing deposits in 4Q17 was 0.65%, while the cost of total deposits (including non-interest bearing deposits) was 0.46%, increases of 4 basis points and 2 basis points, respectively, compared to 3Q17. The increase in the cost of interest-bearing deposits was primarily driven by interest-rate sensitive money market deposits. Cycle-to-date deposit beta is 22% through December 31, 2017.

On a linked quarter basis, average borrowings increased $282.1 million, or 12%, and the cost of average borrowings was unchanged between periods. The cost of average total interest-bearing liabilities was 0.76% in 4Q17, an increase of 4 basis points over the linked quarter, primarily driven by the costs of deposits. Total funding costs, inclusive of non-interest-bearing deposits was 57 basis points in 4Q17, compared to 54 basis points in 3Q17.

Asset Quality

Non-performing assets ("NPAs") to total assets remained relatively flat at 64 basis points at December 31, 2017 compared to 63 basis points at the linked quarter-end.  Accruing loans past due 30 to 89 days equated to 0.31% of total loans at December 31, 2017, compared to 0.30% at September 30, 2017.

Net charge-offs totaled $10.1 million in 4Q17, down $18.7 million, or 65%, compared to 3Q17.  Annualized net charge-offs equated to 0.20% of average loans in 4Q17, a 42 basis point decrease on a linked quarter basis.

Capital Position

At December 31, 2017, the Company reported a non-GAAP tangible common equity ratio of 8.61%, down 7 basis points compared to September 30, 2017, and the preliminary Tier 1 leverage ratio was 9.36%, down 81 basis points compared to September 30, 2017. The Company's preliminary calculation of its total risk-based capital ratio at December 31, 2017, was 12.37%, down 40 basis points compared to September 30, 2017. The write-down of deferred tax assets in conjunction with the Tax Cuts and Jobs Act in December 2017 resulted in a 23 basis points decline in risk-based capital ratios.

At December 31, 2017, book value per common share was $66.17, down $0.57 per share, compared to September 30, 2017. Tangible book value per common share was $42.56, down $0.48 per share, compared to September 30, 2017.  The 4Q17 write-down of deferred tax assets negatively impacted both book value and tangible book value by $0.95 per common share compared to the linked quarter. Based on the closing stock price of the Company's common stock of $82.05 per share on January 25, 2018, this price equated to 1.24 times December 31, 2017 book value per common share and 1.93 times December 31, 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 December 19, 2017, the Company declared a quarterly cash dividend of $0.37 per common share, consistent with the common dividend declared in September 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 December 18, 2017, of $79.25 per common share, the indicated dividend yield was 1.87% per common share. The dividend is payable on January 26, 2018, to shareholders of record as of December 29, 2017.

Preferred Stock. On December 19, 2017, the Company declared a quarterly cash dividend of $0.4125 per depositary share of Series C preferred stock that is payable on February 1, 2018. On January 5, 2018, the Company declared a semi-annual cash dividend of $0.8281 per depositary share of Series B preferred stock that is payable on February 1, 2018.

Common Stock Repurchase Program.  On May 4, 2016, the Board of Directors of the Company authorized the repurchase of up to 950,000 shares of the Company's common stock. The Company did not repurchase common shares under the authorized program during the fourth quarter of 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 $4.4 billion, based on the NASDAQ Global Select Market closing stock price on January 25, 2018.

The following 11 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.
  • Sandler O'Neill + Partners, L.P.
  • Stephens, Inc.
  • SunTrust Robinson-Humphrey

Conference Call

In association with this earnings release, the Company will host a live conference call to discuss the financial results for the quarter just completed. The telephone conference call will be held on Friday, January 26, 2018, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 6105557.  A replay of the call will be available until midnight Central Time on February 2, 2018 by dialing 1-877-344-7529. The confirmation code for the replay is 10115138.  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.

Important Additional Information and Where to Find It

This communication is being made in respect of the proposed merger transaction involving IBERIABANK Corporation ("IBKC"), IBERIABANK and Gibraltar Private Bank & Trust Company ("Gibraltar"). In connection with the proposed merger, IBKC filed a registration statement on Form S-4 (Registration No. 333-222200) with the Securities and Exchange Commission (the "SEC"), which included a preliminary proxy statement of Gibraltar and a preliminary prospectus of IBKC.  The Form S-4, as amended, was declared effective by the SEC on January 19, 2018 and the definitive Proxy Statement/Prospectus was first mailed to stockholders of Gibraltar on or about January 22, 2018.  This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.  Before making any voting or investment decision, investors and securityholders of Gibraltar are urged to carefully read the entire registration statement and Proxy Statement/Prospectus regarding the merger and any other relevant documents filed with the SEC, as well as any amendments or supplements to these documents, because they do and will contain important information about the proposed transaction.

A copy of the definitive Proxy Statement/Prospectus is, and other filings containing information about IBKC and Gibraltar will be, available without charge at the SEC's website at http://www.sec.gov. Alternatively, these documents can be obtained without charge from IBKC's website at http://www.iberiabank.com.

 

Table 1 - IBERIABANK CORPORATION

FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per share data)

















As of and For the Three Months Ended

INCOME DATA:

12/31/2017


9/30/2017


% Change


12/31/2016


% Change


Net interest income

$

235,502




$

216,883




8.6



$

161,665




45.7



Net interest income (TE) (1)

238,314




219,468




8.6



164,005




45.3



Total revenues

290,163




269,950




7.5



214,903




35.0



Provision for loan losses

14,393




18,514




(22.3)



5,169




178.4



Non-interest expense

184,384




202,986




(9.2)



151,570




21.6



Net income available to common shareholders

9,329




26,046




(64.2)



44,173




(78.9)
















PER COMMON SHARE DATA:














Earnings available to common shareholders - basic

$

0.17




$

0.49




(65.3)



$

1.05




(83.8)



Earnings available to common shareholders - diluted

0.17




0.49




(65.3)



1.04




(83.7)



Core earnings (Non-GAAP) (2)

1.33




1.00




33.0



1.16




14.7



Book value

66.17




66.74




(0.9)



62.68




5.6



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

42.56




43.04




(1.1)



45.80




(7.1)



Closing stock price

77.50




82.15




(5.7)



83.75




(7.5)



Cash dividends

0.37




0.37






0.36




2.8
















KEY RATIOS AND OTHER DATA (6):










Net interest margin (TE) (1)

3.69

%



3.64

%





3.38

%





Efficiency ratio

63.5




75.2






70.5






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

55.6




58.2






60.3






Return on average assets

0.15




0.45






0.85






Return on average common equity

1.02




2.92






6.70






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

12.73




8.95






10.75






Effective tax rate

88.8




38.8






22.4






Full-time equivalent employees

3,552




3,646






3,100



















CAPITAL RATIOS:














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

8.61

%



8.68

%





9.82

%





Tangible common equity to risk-weighted assets (3)

10.20




10.56






11.62






Tier 1 leverage ratio (4)

9.36




10.17






10.86






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

10.58




10.93






11.84






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

10.53




10.86






11.77






Tier 1 capital (transitional) (4)

11.17




11.53






12.59






Total risk-based capital ratio (4)

12.37




12.77






14.13






Common stock dividend payout ratio

213.6




76.5






36.4






Classified assets to Tier 1 capital (7)

16.1




16.2






21.9



















ASSET QUALITY RATIOS:










Non-performing assets to total assets (5)

0.64

%



0.63

%





1.16

%





Allowance for loan losses to loans

0.70




0.69






0.96






Net charge-offs to average loans (annualized)

0.20




0.62






0.21






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

0.89




0.89






1.66





















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

(3)

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

(4)

Regulatory capital ratios as of December 31, 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. For purposes of this table, past due and non-accrual loan amounts 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.

(6)

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

(7)

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

 

Table 2 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except per share data)


















For the Three Months Ended






Linked Qtr Change








Year/Year Change


12/31/2017


9/30/2017


$

%


6/30/2017


3/31/2017


12/31/2016


$

%

Interest income

$

269,703



$

246,972



22,731


9.2



$

204,575



$

192,533



$

180,805



88,898


49.2


Interest expense

34,201



30,089



4,112


13.7



20,932



19,715



19,140



15,061


78.7


Net interest income

235,502



216,883



18,619


8.6



183,643



172,818



161,665



73,837


45.7


Provision for loan losses

14,393



18,514



(4,121)


(22.3)



12,050



6,154



5,169



9,224


178.4


Net interest income after provision for loan losses

221,109



198,369



22,740


11.5



171,593



166,664



156,496



64,613


41.3


Mortgage income

13,675



16,050



(2,375)


(14.8)



19,730



14,115



16,115



(2,440)


(15.1)


Service charges on deposit accounts

12,581



12,534



47


0.4



11,410



11,153



11,178



1,403


12.6


Title revenue

5,398



5,643



(245)


(4.3)



6,190



4,741



5,332



66


1.2


Broker commissions

2,151



2,269



(118)


(5.2)



2,744



2,738



4,006



(1,855)


(46.3)


ATM/debit card fee income

3,779



3,658



121


3.3



3,800



3,585



3,604



175


4.9


Income from bank owned life insurance

1,267



1,263



4


0.3



1,241



1,311



1,323



(56)


(4.2)


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

35



(242)



277


114.5



59





4



31


775.0


Other non-interest income

15,775



11,892



3,883


32.7



10,792



9,703



11,676



4,099


35.1


Total non-interest income

54,661



53,067



1,594


3.0



55,966



47,346



53,238



1,423


2.7


Salaries and employee benefits

104,387



106,970



(2,583)


(2.4)



86,317



81,853



80,811



23,576


29.2


Occupancy and equipment

19,211



19,139



72


0.4



16,292



16,021



15,551



3,660


23.5


Loss on early termination of loss share agreements












17,798



(17,798)


(100.0)


Amortization of acquisition intangibles

4,642



4,527



115


2.5



1,651



1,770



2,087



2,555


122.4


Data processing

12,030



12,899



(869)


(6.7)



7,306



6,941



6,996



5,034


72.0


Professional services

9,441



22,550



(13,109)


(58.1)



11,219



5,335



4,881



4,560


93.4


Credit and other loan related expense

3,170



7,532



(4,362)


(57.9)



3,780



4,526



3,407



(237)


(7.0)


Other non-interest expense

31,503



29,369



2,134


7.3



20,943



24,572



20,039



11,464


57.2


Total non-interest expense

184,384



202,986



(18,602)


(9.2)



147,508



141,018



151,570



32,814


21.6


Income before income taxes

91,386



48,450



42,936


88.6



80,051



72,992



58,164



33,222


57.1


Income tax expense

81,108



18,806



62,302


331.3



28,033



22,519



13,034



68,074


522.3


Net income

10,278



29,644



(19,366)


(65.3)



52,018



50,473



45,130



(34,852)


(77.2)


Less: Preferred stock dividends

949



3,598



(2,649)


(73.6)



949



3,599



957



(8)


(0.8)


Net income available to common shareholders

$

9,329



$

26,046



(16,717)


(64.2)



$

51,069



$

46,874



$

44,173



(34,844)


(78.9)


















Income available to common shareholders - basic

$

9,329



$

26,046



(16,717)


(64.2)



$

51,069



$

46,874



$

44,173



(34,844)


(78.9)


Less: Earnings allocated to unvested restricted stock

101



283



(182)


(64.3)



361



346



414



(313)


(75.6)


Earnings allocated to common shareholders

$

9,228



$

25,763



(16,535)


(64.2)



$

50,708



$

46,528



$

43,759



(34,531)


(78.9)


















Earnings per common share - basic

$

0.17



$

0.49



(0.32)


(65.3)



$

1.00



$

1.01



$

1.05



(0.88)


(83.8)


















Earnings per common share - diluted

0.17



0.49



(0.32)


(65.3)



0.99



1.00



1.04



(0.87)


(83.7)


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

1.16



0.51



0.65


127.5



0.11



0.02



0.12



1.04


866.7


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

$

1.33



$

1.00



0.33


33.0



$

1.10



$

1.02



$

1.16



0.17


14.7


















NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
















Weighted average common shares outstanding - basic

53,287



52,424



863


1.6



50,630



46,123



41,688



11,599


27.8


Weighted average common shares outstanding - diluted

53,621



52,770



851


1.6



50,984



46,496



41,950



11,671


27.8


Book value shares (period end)

53,872



53,864



8




51,015



50,970



44,795



9,077


20.3


















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

 

Table 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except per share data)









For the Years Ended






Year/Year Change


12/31/2017


12/31/2016


$

%

Interest income

$

913,783



$

716,939



196,844


27.5


Interest expense

104,937



67,701



37,236


55.0


Net interest income

808,846



649,238



159,608


24.6


Provision for loan losses

51,111



44,424



6,687


15.1


Net interest income after provision for loan losses

757,735



604,814



152,921


25.3


Mortgage income

63,570



83,853



(20,283)


(24.2)


Service charges on deposit accounts

47,678



44,135



3,543


8.0


Title revenue

21,972



22,213



(241)


(1.1)


Broker commissions

9,902



15,338



(5,436)


(35.4)


ATM/debit card fee income

14,822



14,240



582


4.1


Income from bank owned life insurance

5,082



5,241



(159)


(3.0)


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

(148)



2,001



(2,149)


(107.4)


Other non-interest income

48,162



46,800



1,362


2.9


Total non-interest income

211,040



233,821



(22,781)


(9.7)


Salaries and employee benefits

379,527



331,686



47,841


14.4


Occupancy and equipment

70,663



65,797



4,866


7.4


Loss on early termination of loss share agreements



17,798



(17,798)


(100.0)


Amortization of acquisition intangibles

12,590



8,415



4,175


49.6


Data processing

39,176



25,091



14,085


56.1


Professional services

48,545



19,153



29,392


153.5


Credit and other loan related expense

19,008



10,937



8,071


73.8


Other non-interest expense

106,387



87,788



18,599


21.2


Total non-interest expense

675,896



566,665



109,231


19.3


Income before income taxes

292,879



271,970



20,909


7.7


Income tax expense

150,466



85,193



65,273


76.6


Net income

142,413



186,777



(44,364)


(23.8)


Less: Preferred stock dividends

9,095



7,977



1,118


14.0


Net income available to common shareholders

$

133,318



$

178,800



(45,482)


(25.4)









Income available to common shareholders - basic

$

133,318



$

178,800



(45,482)


(25.4)


Less: Earnings allocated to unvested restricted stock

1,210



1,872



(662)


(35.4)


Earnings allocated to common shareholders

$

132,108



$

176,928



(44,820)


(25.3)









Earnings per common share - basic

$

2.61



$

4.32



(1.71)


(39.6)









Earnings per common share - diluted

2.59



4.30



(1.71)


(39.8)


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

1.88



0.13



1.75


1,346.2


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

$

4.47



$

4.43



0.04


0.9









NUMBER OF COMMON SHARES OUTSTANDING (in thousands)







Weighted average common shares outstanding - basic

50,640



41,396



9,244


22.3


Weighted average common shares outstanding - diluted

50,992



41,106



9,886


24.1


Book value shares (period end)

53,872



44,795



9,077


20.3









(1)  See Table 9 and Table 10 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

12/31/2017


9/30/2017


$


%


6/30/2017


3/31/2017


12/31/2016


$


%

Cash and due from banks

$

319,156



$

298,173



20,983



7.0



$

301,910



$

276,979



$

295,896



23,260



7.9


Interest-bearing deposits in other banks

306,568



583,043



(276,475)



(47.4)



167,450



1,024,139



1,066,230



(759,662)



(71.2)


Total cash and cash equivalents

625,724



881,216



(255,492)



(29.0)



469,360



1,301,118



1,362,126



(736,402)



(54.1)


Investment securities available for sale

4,590,062



4,736,339



(146,277)



(3.1)



4,009,299



3,823,953



3,446,097



1,143,965



33.2


Investment securities held to maturity

227,318



175,906



51,412



29.2



84,517



86,018



89,216



138,102



154.8


Total investment securities

4,817,380



4,912,245



(94,865)



(1.9)



4,093,816



3,909,971



3,535,313



1,282,067



36.3


Mortgage loans held for sale

134,916



141,218



(6,302)



(4.5)



140,959



122,333



157,041



(22,125)



(14.1)


Loans, net of unearned income

20,078,181



19,795,085



283,096



1.4



15,556,016



15,132,202



15,064,971



5,013,210



33.3


Allowance for loan losses

(140,891)



(136,628)



(4,263)



3.1



(146,225)



(144,890)



(144,719)



3,828



(2.6)


Loans, net

19,937,290



19,658,457



278,833



1.4



15,409,791



14,987,312



14,920,252



5,017,038



33.6


Loss share receivable

8,622



9,780



(1,158)



(11.8)









8,622



N/M


Premises and equipment

331,413



330,800



613



0.2



318,167



303,978



306,373



25,040



8.2


Goodwill and other intangible assets

1,277,464



1,281,479



(4,015)



(0.3)



757,025



758,340



759,823



517,641



68.1


Other assets

771,320



761,440



9,880



1.3



601,609



625,427



618,262



153,058



24.8


Total assets

$

27,904,129



$

27,976,635



(72,506)



(0.3)



$

21,790,727



$

22,008,479



$

21,659,190



6,244,939



28.8




















LIABILITIES AND SHAREHOLDERS' EQUITY















Non-interest-bearing deposits

$

6,209,925



$

5,963,943



245,982



4.1



$

5,020,195



$

5,031,583



$

4,928,878



1,281,047



26.0


NOW accounts

4,348,939



3,547,761



801,178



22.6



3,089,482



3,085,720



3,314,281



1,034,658



31.2


Savings and money market accounts

8,520,365



9,165,417



(645,052)



(7.0)



6,815,513



7,185,864



7,033,917



1,486,448



21.1


Certificates of deposit

2,387,488



2,657,150



(269,662)



(10.1)



1,927,926



2,009,098



2,131,207



256,281



12.0


Total deposits

21,466,717



21,334,271



132,446



0.6



16,853,116



17,312,265



17,408,283



4,058,434



23.3


Short-term borrowings

475,000



975,008



(500,008)



(51.3)



250,000



80,000



175,000



300,000



171.4


Securities sold under agreements to repurchase

516,297



548,696



(32,399)



(5.9)



333,935



368,696



334,136



182,161



54.5


Trust preferred securities

120,110



120,110







120,110



120,110



120,110






Other long-term debt

1,375,725



1,007,474



368,251



36.6



547,133



507,975



508,843



866,882



170.4


Other liabilities

253,489



264,302



(10,813)



(4.1)



183,191



161,458



173,124



80,365



46.4


Total liabilities

24,207,338



24,249,861



(42,523)



(0.2)



18,287,485



18,550,504



18,719,496



5,487,842



29.3


Total shareholders' equity

3,696,791



3,726,774



(29,983)



(0.8)



3,503,242



3,457,975



2,939,694



757,097



25.8


Total liabilities and shareholders' equity

$

27,904,129



$

27,976,635



(72,506)



(0.3)



$

21,790,727



$

22,008,479



$

21,659,190



6,244,939



28.8



N/M = not meaningful

 

TABLE 4 Continued - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)



















AVERAGE BALANCES


Linked Qtr Change








Year/Year Change

ASSETS

12/31/2017


9/30/2017


$


%


6/30/2017


3/31/2017


12/31/2016


$


%

Cash and due from banks

$

307,328



$

277,968



29,360



10.6



$

277,047



$

302,585



$

310,132



(2,804)



(0.9)


Interest-bearing deposits in other banks

538,733



615,445



(76,712)



(12.5)



555,431



1,023,688



930,524



(391,791)



(42.1)


Total cash and cash equivalents

846,061



893,413



(47,352)



(5.3)



832,478



1,326,273



1,240,656



(394,595)



(31.8)


Investment securities available for sale

4,674,496



4,593,798



80,698



1.8



3,970,021



3,679,817



3,192,040



1,482,456



46.4


Investment securities held to maturity

191,067



114,895



76,172



66.3



85,516



87,246



90,161



100,906



111.9


Total investment securities

4,865,563



4,708,693



156,870



3.3



4,055,537



3,767,063



3,282,201



1,583,362



48.2


Mortgage loans held for sale

126,216



132,309



(6,093)



(4.6)



145,274



175,512



226,565



(100,349)



(44.3)


Loans, net of unearned income

19,941,500



18,341,154



1,600,346



8.7



15,284,007



15,045,755



14,912,350



5,029,150



33.7


Allowance for loan losses

(138,927)



(147,046)



8,119



(5.5)



(146,448)



(145,326)



(150,499)



11,572



(7.7)


Loans, net

19,802,573



18,194,108



1,608,465



8.8



15,137,559



14,900,429



14,761,851



5,040,722



34.1


Loss share receivable

9,295



21,042



(11,747)



(55.8)







20,456



(11,161)



(54.6)


Premises and equipment

329,957



327,917



2,040



0.6



309,622



305,245



308,861



21,096



6.8


Goodwill and other intangible assets

1,277,293



1,047,355



229,938



22.0



757,528



758,887



760,003



517,290



68.1


Other assets

778,105



772,084



6,021



0.8



605,539



628,092



615,666



162,439



26.4


Total assets

$

28,035,063



$

26,096,921



1,938,142



7.4



$

21,843,537



$

21,861,501



$

21,216,259



6,818,804



32.1




















LIABILITIES AND SHAREHOLDERS' EQUITY













Non-interest-bearing deposits

$

6,176,347



$

5,601,071



575,276



10.3



$

4,992,598



$

4,976,945



$

4,869,095



1,307,252



26.8


NOW accounts

3,987,908



3,203,657



784,251



24.5



3,124,243



3,239,085



2,981,967



1,005,941



33.7


Savings and money market accounts

8,769,464



8,566,873



202,591



2.4



7,079,773



7,211,545



6,869,614



1,899,850



27.7


Certificates of deposit

2,444,403



2,413,727



30,676



1.3



1,964,234



2,083,749



2,172,967



271,436



12.5


Total deposits

21,378,122



19,785,328



1,592,794



8.1



17,160,848



17,511,324



16,893,643



4,484,479



26.5


Short-term borrowings

729,111



1,180,165



(451,054)



(38.2)



38,320



99,000



260,730



468,381



179.6


Securities sold under agreements to repurchase

494,757



439,077



55,680



12.7



314,090



311,726



342,953



151,804



44.3


Trust preferred securities

120,110



120,110







120,110



120,110



120,110






Other long-term debt

1,300,114



622,655



677,459



108.8



508,522



498,384



544,353



755,761



138.8


Other liabilities

264,790



273,163



(8,373)



(3.1)



200,673



221,993



300,768



(35,978)



(12.0)


Total liabilities

24,287,004



22,420,498



1,866,506



8.3



18,342,563



18,762,537



18,462,557



5,824,447



31.5


Total shareholders' equity

3,748,059



3,676,423



71,636



1.9



3,500,974



3,098,964



2,753,702



994,357



36.1


Total liabilities and shareholders' equity

$

28,035,063



$

26,096,921



1,938,142



7.4



$

21,843,537



$

21,861,501



$

21,216,259



6,818,804



32.1


 

Table 5 - IBERIABANK CORPORATION

TOTAL LOANS AND ASSET QUALITY DATA

(Dollars in thousands)














Linked Qtr Change








Year/Year Change

LOANS

12/31/2017


9/30/2017


$


%


6/30/2017


3/31/2017


12/31/2016


$


%

Commercial loans:


















Real estate- construction

$

1,240,396



$

1,298,282



(57,886)



(4.5)



$

1,100,504



$

946,477



$

802,242



438,154



54.6


Real estate- owner-occupied (1)

2,529,885



2,448,826



81,059



3.3



2,242,275



2,230,041



2,277,749



252,136



11.1


Real estate- non-owner occupied

5,167,949



5,020,778



147,171



2.9



3,839,777



3,844,823



3,766,558



1,401,391



37.2


Commercial and industrial

5,135,067



5,016,437



118,630



2.4



4,195,096



3,975,734



4,060,032



1,075,035



26.5


  Total commercial loans

14,073,297



13,784,323



288,974



2.1



11,377,652



10,997,075



10,906,581



3,166,716



29.0




















Residential mortgage loans

3,056,352



3,024,970



31,382



1.0



1,346,467



1,296,358



1,267,400



1,788,952



141.2




















Consumer loans:


















Home equity

2,292,275



2,320,233



(27,958)



(1.2)



2,158,948



2,146,796



2,155,926



136,349



6.3


Automobile

127,531



130,847



(3,316)



(2.5)



135,012



142,139



147,662



(20,131)



(13.6)


Credit card

96,368



88,454



7,914



8.9



87,088



84,113



82,992



13,376



16.1


Other

432,358



446,258



(13,900)



(3.1)



450,849



465,721



504,410



(72,052)



(14.3)


  Total consumer loans

2,948,532



2,985,792



(37,260)



(1.2)



2,831,897



2,838,769



2,890,990



57,542



2.0


  Total loans

$

20,078,181



$

19,795,085



283,096



1.4



$

15,556,016



$

15,132,202



$

15,064,971



5,013,210



33.3















Allowance for loan losses (2)

$

(140,891)



$

(136,628)



(4,263)



3.1



$

(146,225)



$

(144,890)



$

(144,719)



3,828



(2.6)


Loans, net

19,937,290



19,658,457



278,833



1.4



15,409,791



14,987,312



14,920,252



5,017,038



33.6




















Reserve for unfunded commitments

(13,208)



(21,032)



7,824



(37.2)



(10,462)



(11,660)



(11,241)



(1,967)



17.5


Allowance for credit losses

(154,099)



(157,660)



3,561



(2.3)



(156,687)



(156,550)



(155,960)



1,861



(1.2)




















ASSET QUALITY DATA

















Non-accrual loans (3)

$

145,390



$

145,422



(32)





$

177,956



$

191,582



$

228,501



(83,111)



(36.4)


Other real estate owned and foreclosed assets

26,533



28,338



(1,805)



(6.4)



19,718



20,055



21,199



5,334



25.2


Accruing loans more than 90 days past due (3)

6,901



2,193



4,708



214.7



802



7,980



1,386



5,515



397.9


Total non-performing

assets (3)(4)

$

178,824



$

175,953



2,871



1.6



$

198,476



$

219,617



$

251,086



(72,262)



(28.8)




















Loans 30-89 days past due (3)

$

61,809



$

58,773



3,036



5.2



$

50,840



$

36,172



$

28,869



32,940



114.1




















Non-performing assets to total assets (3)(4)

0.64

%


0.63

%






0.91

%


1.00

%


1.16

%





Non-performing assets to total loans and OREO (3)(4)

0.89



0.89







1.27



1.45



1.66






Allowance for loan losses to non-performing loans (3)(5)

92.5



92.6







81.8



72.6



63.0






Allowance for loan losses to non-performing assets (3)(4)

78.8



77.7







73.7



66.0



57.6






Allowance for loan losses to total loans

0.70



0.69







0.94



0.96



0.96
























Quarter-to-date charge-offs

$

12,526



$

30,460



(17,934)



(58.9)



$

12,189



$

7,291



$

9,785



2,741



28.0


Quarter-to-date recoveries

(2,425)



(1,644)



(781)



47.5



(1,289)



(1,235)



(2,135)



(290)



13.6


Quarter-to-date net charge-offs

$

10,101



$

28,816



(18,715)



(64.9)



$

10,900



$

6,056



$

7,650



2,451



32.0




















Net charge-offs to average loans (annualized)

0.20

%


0.62

%






0.29

%


0.16

%


0.21

%







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

(3) For purposes of this table, past due and non-accrual loan amounts 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.

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

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

 

TABLE 6 - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)












For the Three Months Ended


12/31/2017


9/30/2017


Basis Point
Change

ASSETS

Average
Balance

Interest
Income/Expense

Yield/Rate
(TE)(1)


Average
Balance

Interest
Income/Expense

Yield/Rate
(TE)(1)


Yield/Rate
(TE)(1)

Earning assets:










Commercial loans

$

13,964,340


$

163,974


4.70

%


$

12,951,243


$

146,003


4.52

%


18

Residential mortgage loans

3,049,947


35,007


4.59



2,464,348


28,645


4.65



(6)

Consumer loans

2,927,213


38,836


5.26



2,925,563


42,240


5.73



(47)

  Total loans

19,941,500


237,817


4.77



18,341,154


216,888


4.73



4

Loss share receivable

9,295





21,042





  Total loans and loss share receivable

19,950,795


237,817


4.77



18,362,196


216,888


4.72



5

Mortgage loans held for sale

126,216


1,251


3.96



132,309


1,209


3.66



30

Investment securities (2)

4,893,538


27,714


2.37



4,709,526


26,246


2.32



5

Other earning assets

715,747


2,921


1.62



768,181


2,629


1.36



26

Total earning assets

25,686,296


269,703


4.22



23,972,212


246,972


4.14



8

Allowance for loan losses

(138,927)





(147,046)






Non-earning assets

2,487,694





2,271,755






Total assets

$

28,035,063





$

26,096,921
















LIABILITIES AND SHAREHOLDERS' EQUITY









Interest-bearing liabilities:










NOW accounts

$

3,987,908


$

5,404


0.54

%


$

3,203,657


$

4,384


0.54

%


Savings and money market accounts

8,769,464


13,345


0.60



8,566,873


11,650


0.54



6

Certificates of deposit

2,444,403


6,115


0.99



2,413,727


5,766


0.95



4

Total interest-bearing deposits (3)

15,201,775


24,864


0.65



14,184,257


21,800


0.61



4

Short-term borrowings

1,223,868


2,901


0.94



1,619,242


4,152


1.02



(8)

Long-term debt

1,420,224


6,436


1.80



742,765


4,137


2.21



(41)

  Total interest-bearing liabilities

17,845,867


34,201


0.76



16,546,264


30,089


0.72



4

Non-interest-bearing deposits

6,176,347





5,601,071






Non-interest-bearing liabilities

264,790





273,163






Total liabilities

24,287,004





22,420,498






Total shareholders' equity

3,748,059





3,676,423






Total liabilities and shareholders' equity

$

28,035,063





$

26,096,921
















Net interest income/Net interest spread

$

235,502


3.46

%



$

216,883


3.42

%


4

Taxable equivalent benefit


2,812


0.04




2,585


0.04



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


$

238,314


3.69

%



$

219,468


3.64

%


5












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

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

(3) Total deposit costs for the three months ended December 31, 2017 and September 30, 2017 were 0.46% and 0.44%, respectively.

 

TABLE 6 Continued - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)














For the Three Months Ended


6/30/2017


3/31/2017


12/31/2016

ASSETS

Average
Balance

Interest
Income/Expense

Yield/Rate
(TE)(1)


Average
Balance

Interest
Income/Expense

Yield/Rate
(TE)(1)


Average
Balance

Interest
Income/Expense

Yield/Rate
(TE)(1)

Earning assets:












Commercial loans

$

11,136,842


$

127,301


4.64

%


$

10,917,714


$

119,605


4.50

%


$

10,759,264


$

114,694


4.29

%

Residential mortgage loans

1,319,207


14,345


4.35



1,273,069


12,848


4.04



1,267,413


14,038


4.43


Consumer loans

2,827,958


37,619


5.34



2,854,972


36,524


5.19



2,885,673


36,960


5.10


  Total loans

15,284,007


179,265


4.74



15,045,755


168,977


4.59



14,912,350


165,692


4.46


Loss share receivable









20,456


(3,539)


(68.83)


  Total loans and loss share receivable

15,284,007


179,265


4.74



15,045,755


168,977


4.59



14,932,806


162,153


4.36


Mortgage loans held for sale

145,274


1,249


3.44



175,512


971


2.21



226,565


1,539


2.72


Investment securities (2)

4,029,491


22,307


2.32



3,741,128


19,927


2.24



3,154,252


15,464


2.09


Other earning assets

650,083


1,754


1.08



1,123,087


2,658


0.96



1,034,980


1,649


0.63


  Total earning assets

20,108,855


204,575


4.13



20,085,482


192,533


3.93



19,348,603


180,805


3.77


Allowance for loan losses

(146,448)





(145,326)





(150,499)




Non-earning assets

1,881,130





1,921,345





2,018,155




Total assets

$

21,843,537





$

21,861,501





$

21,216,259
















LIABILITIES AND SHAREHOLDERS' EQUITY











Interest-bearing liabilities:












NOW accounts

$

3,124,243


$

3,507


0.45

%


$

3,239,085


$

3,090


0.39

%


$

2,981,967


$

2,483


0.33

%

Savings and money market accounts

7,079,773


9,030


0.51



7,211,545


8,329


0.47



6,869,614


7,732


0.45


Certificates of deposit

1,964,234


4,576


0.93



2,083,749


4,638


0.90



2,172,967


4,785


0.88


Total interest-bearing deposits (3)

12,168,250


17,113


0.56



12,534,379


16,057


0.52



12,024,548


15,000


0.50


Short-term borrowings

352,410


226


0.26



410,726


277


0.27



603,683


552


0.36


Long-term debt

628,632


3,593


2.29



618,494


3,381


2.22



664,463


3,588


2.15


    Total interest-bearing liabilities

13,149,292


20,932


0.64



13,563,599


19,715


0.59



13,292,694


19,140


0.57


Non-interest-bearing deposits

4,992,598





4,976,945





4,869,095




Non-interest-bearing liabilities

200,673





221,993





300,768




Total liabilities

18,342,563





18,762,537





18,462,557




Total shareholders' equity

3,500,974





3,098,964





2,753,702




Total liabilities and shareholders' equity

$

21,843,537





$

21,861,501





$

21,216,259
















Net interest income/Net interest spread


$

183,643


3.49

%



$

172,818


3.34

%



$

161,665


3.20

%

Taxable equivalent benefit


2,492


0.05




2,491


0.05




2,340


0.05


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


$

186,135


3.71

%



$

175,309


3.53

%



$

164,005


3.38

%














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

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

(3) Total deposit costs for the three months ended June 30, 2017, March 31, 2017, and December 31, 2016 were 0.40%, 0.37% and 0.35%, respectively.

 

TABLE 7 - IBERIABANK CORPORATION

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

(Dollars in thousands)












For the Years Ended


12/31/2017


12/31/2016


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

$

12,252,823


$

556,883


4.59

%


$

10,529,830


$

459,352


4.42

%


17

Residential mortgage loans

2,032,710


90,845


4.47



1,236,640


54,966


4.44



3

Consumer loans

2,884,239


155,219


5.38



2,894,584


148,718


5.14



24

  Total loans

17,169,772


802,947


4.71



14,661,054


663,036


4.56



15

Loss share receivable

7,646





29,396


(16,023)


(54.51)



5,451

  Total loans and loss share receivable

17,177,418


802,947


4.71



14,690,450


647,013


4.44



27

Mortgage loans held for sale

144,658


4,679


3.23



204,669


6,564


3.21



2

Investment securities (2)

4,347,581


96,194


2.31



2,927,588


59,154


2.14



17

Other earning assets

813,032


9,963


1.23



654,357


4,208


0.64



59

Total earning assets

22,482,689


913,783


4.11



18,477,064


716,939


3.93



18

Allowance for loan losses

(144,426)





(147,520)






Non-earning assets

2,142,393





1,991,690






Total assets

$

24,480,656





$

20,321,234
















LIABILITIES AND SHAREHOLDERS' EQUITY









Interest-bearing liabilities:










NOW accounts

$

3,390,268


$

16,385


0.48

%


$

2,922,587


$

8,816


0.30

%


18

Savings and money market accounts

7,912,990


42,353


0.54



6,578,622


24,725


0.38



16

Certificates of deposit

2,228,029


21,095


0.95



2,141,399


18,040


0.84



11

Total interest-bearing deposits (3)

13,531,287


79,833


0.59



11,642,608


51,581


0.44



15

Short-term borrowings

905,755


7,557


0.83



614,073


2,452


0.40



43

Long-term debt

854,425


17,547


2.05



616,309


13,668


2.22



(17)

  Total interest-bearing liabilities

15,291,467


104,937


0.69



12,872,990


67,701


0.53



16

Non-interest-bearing deposits

5,440,477





4,582,533






Non-interest-bearing liabilities

240,362





228,117






  Total liabilities

20,972,306





17,683,640






Total shareholders' equity

3,508,350





2,637,594






Total liabilities and shareholders' equity

$

24,480,656





$

20,321,234
















Net interest income/Net interest spread

$

808,846


3.42

%



$

649,238


3.40

%


2

Tax-equivalent benefit


10,261


0.05




9,201


0.05



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


$

819,107


3.64

%



$

658,439


3.56

%


8












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

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

(3) Total deposit costs for the years ended December 31, 2017 and 2016 were 0.42% and 0.32%, respectively.

 

Table 8 - IBERIABANK CORPORATION

LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS

(Dollars in millions)






















For the Three Months Ended


12/31/2017


9/30/2017


6/30/2017


3/31/2017


12/31/2016

AS REPORTED (US GAAP)

Income

Average
Balance

Yield


Income

Average
Balance

Yield


Income

Average
Balance

Yield


Income

Average
Balance

Yield


Income

Average
Balance

Yield

Legacy loans, net

$

157


$

14,235


4.39

%


$

148


$

13,638


4.29

%


$

140


$

13,150


4.27

%


$

131


$

12,760


4.12

%


$

125


$

12,481


3.97

%

Acquired loans (1)

81


5,706


5.61



69


4,703


5.86



39


2,134


7.40



38


2,286


6.81



37


2,452


5.99


Total loans

$

238


$

19,941


4.74

%


$

217


$

18,341


4.70

%


$

179


$

15,284


4.70

%


$

169


$

15,046


4.55

%


$

162


$

14,933


4.30

%






















12/31/2017


9/30/2017


6/30/2017


3/31/2017


12/31/2016

ADJUSTMENTS

Income

Average
Balance

Yield


Income

Average
Balance

Yield


Income

Average
Balance

Yield


Income

Average
Balance

Yield


Income

Average
Balance

Yield

Legacy loans, net

$


$


0.00

%


$


$


0.00

%


$


$


0.00

%


$


$


0.00

%


$


$


0.00

%

Acquired loans (1)

(21)


161


(1.60)



(20)


120


(1.76)



(12)


72


(2.46)



(11)


87


(2.08)



(8)


73


(1.43)


Total loans

$

(21)


$

161


(0.46)

%


$

(20)


$

120


(0.45)

%


$

(12)


$

72


(0.34)

%


$

(11)


$

87


(0.31)

%


$

(8)


$

73


(0.23)

%






















12/31/2017


9/30/2017


6/30/2017


3/31/2017


12/31/2016

AS ADJUSTED (CASH YIELD, NON-GAAP)

Income

Average
Balance

Yield


Income

Average
Balance

Yield


Income

Average
Balance

Yield


Income

Average
Balance

Yield


Income

Average
Balance

Yield

Legacy loans, net

$

157


$

14,235


4.39

%


$

148


$

13,638


4.29

%


$

140


$

13,150


4.27

%


$

131


$

12,760


4.12

%


$

125


$

12,481


3.97

%

Acquired loans (1)

60


5,867


4.01



49


4,823


4.10



27


2,206


4.94



27


2,373


4.73



29


2,525


4.56


Total loans

$

217


$

20,102


4.28

%


$

197


$

18,461


4.25

%


$

167


$

15,356


4.36

%


$

158


$

15,133


4.24

%


$

154


$

15,006


4.07

%



























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






 

Table 9 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)




















For the Three Months Ended


12/31/2017


9/30/2017


6/30/2017


Pre-tax


After-tax


Per share (2)


Pre-tax


After-tax


Per share (2)


Pre-tax


After-tax


Per share (2)

Net income

$

91,386



$

10,278



$

0.19



$

48,450



$

29,644



$

0.56



$

80,051



$

52,018



$

1.01


Less: Preferred stock dividends



949



0.02





3,598



0.07





949



0.02


Income available to common shareholders (GAAP)

$

91,386



$

9,329



$

0.17



$

48,450



$

26,046



$

0.49



$

80,051



$

51,069



$

0.99




















Non-interest income adjustments (1)(3):

















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

(35)



(22)





242



157





(59)



(38)






















Non-interest expense adjustments (1)(3):

















Merger-related expense

11,373



8,487



0.16



28,478



19,255



0.36



1,066



789



0.02


Compensation-related expense

1,457



947



0.01



1,092



710



0.02



378



246




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

3,177



2,065



0.04



3,661



2,380



0.04



(1,306)



(849)



(0.02)


Litigation expense



1,228



0.02



5,692



4,696



0.09



6,000



5,481



0.11


Other non-core non-interest expense

467



358



0.01



377



245










Total non-interest expense adjustments

16,474



13,085



0.24



39,300



27,286



0.51



6,138



5,667



0.11


Income tax expense (benefit) - provisional impact of TCJA (4)



51,023



0.94














Income tax expense (benefit) - other



(1,237)



(0.02)














Core earnings (Non-GAAP)

107,825



72,178



1.33



87,992



53,489



1.00



86,130



56,698



1.10


Provision for loan losses (1)

14,393



9,355





18,514



12,034





12,050



7,833




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

$

122,218



$

81,533





$

106,506



$

65,523





$

98,180



$

64,531



























































For the Three Months Ended








3/31/2017


12/31/2016








Pre-tax


After-tax


Per share (2)


Pre-tax


After-tax


Per share (2)







Net income

$

72,992



$

50,473



$

1.08



$

58,164



$

45,130



$

1.06








Less: Preferred stock dividends



3,599



0.08





957



0.02








Income available to common shareholders (GAAP)

$

72,992



$

46,874



$

1.00



$

58,164



$

44,173



$

1.04


























Non-interest income adjustments (1)(3):

















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







(4)



(3)




























Non-interest expense adjustments (1)(3):

















Merger-related expense

54



35
















Compensation-related expense

98



63





188



122










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

1,429



929



0.02



(462)



(300)



(0.01)








Loss on early termination of loss share agreements







17,798



11,569



0.28








Other non-core non-interest expense







484



314



0.01








Total non-interest expense adjustments

1,581



1,027



0.02



18,008



11,705



0.28








Income tax expense (benefit)









(6,836)



(0.16)








Core earnings (Non-GAAP)

74,573



47,901



1.02



76,168



49,039



1.16








Provision for loan losses (1)

6,154



4,000





5,169



3,360










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

$

80,727



$

51,901





$

81,337



$

52,399




























(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.

(4) Estimated net impact of the Tax Cuts and Jobs Act ("TCJA") enacted on December 22, 2017 is subject to refinement in future periods as further information becomes available.






































For the Years Ended








12/31/2017


12/31/2016








Pre-tax


After-tax


Per share (2)


Pre-tax


After-tax


Per share (2)







Net income

$

292,879



$

142,413



$

2.77



$

271,970



$

186,777



$

4.49








Less: Preferred stock dividends



9,095



0.18





7,977



0.19








Income available to common shareholders (GAAP)

$

292,879



$

133,318



$

2.59



$

271,970



$

178,800



$

4.30


























Non-interest income adjustments (1)(3):

















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

148



97





(2,001)



(1,301)



(0.03)


























Non-interest expense adjustments (1)(3):

















Merger-related expense

40,971



28,566



0.55



3



2










Compensation-related expense

3,025



1,966



0.04



782



508



0.01








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

6,961



4,525



0.09



(674)



(437)



(0.01)








Litigation expense

11,692



11,405



0.22



17,798



11,569



0.28








Loss on early termination of loss share agreements


















Other non-core non-interest expense

844



603



0.01



2,752



1,788



0.04








Total non-interest expense adjustments

63,493



47,065



0.91



20,661



13,430



0.32








Income tax expense (benefit) - provisional impact of TCJA (4)



51,023



0.99














Income tax expense (benefit) - other



(1,237)



(0.02)





(6,836)



(0.16)








Core earnings (Non-GAAP)

356,520



230,266



4.47



290,630



184,093



4.43








Provision for loan losses (1)

51,111



33,222





44,424



28,875










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

$

407,631



$

263,488





$

335,054



$

212,968





























(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.

(4) Estimated net impact of the Tax Cuts and Jobs Act ("TCJA") enacted on December 22, 2017 is subject to refinement in future periods as further information becomes available.

 

Table 10 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)












For the Three Months Ended


12/31/2017


9/30/2017


6/30/2017


3/31/2017


12/31/2016

Net interest income (GAAP)

$

235,502



$

216,883



$

183,643



$

172,818



$

161,665


Taxable equivalent benefit

2,812



2,585



2,492



2,491



2,340


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

238,314



219,468



186,135



175,309



164,005












Non-interest income (GAAP)

54,661



53,067



55,966



47,346



53,238


Taxable equivalent benefit

683



680



668



706



713


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

55,344



53,747



56,634



48,052



53,951


Taxable equivalent revenues (Non-GAAP) (1)

293,658



273,215



242,769



223,361



217,956


Securities (gains) losses and other non-interest income

(35)



242



(59)





(4)


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

$

293,623



$

273,457



$

242,710



$

223,361



$

217,952












Total non-interest expense (GAAP)

$

184,384



$

202,986



$

147,508



$

141,018



$

151,570


Less: Intangible amortization expense

4,642



4,527



1,651



1,770



2,087


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

179,742



198,459



145,857



139,248



149,483


Less: Merger-related expense

11,373



28,478



1,066



54




         Compensation-related expense

1,457



1,092



378



98



188


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

3,177



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

467



377







484


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

$

163,268



$

159,159



$

139,719



$

137,667



$

131,475












Return on average assets (GAAP)

0.15

%


0.45

%


0.96

%


0.94

%


0.85

%

Effect of non-core revenues and expenses

0.88



0.42



0.10



0.02



0.09


Core return on average assets (Non-GAAP)

1.03

%


0.87

%


1.06

%


0.96

%


0.94

%











Efficiency ratio (GAAP)

63.5

%


75.2

%


61.6

%


64.1

%


70.5

%

Effect of tax benefit related to tax-exempt income

(0.7)



(0.9)



(0.8)



(1.0)



(1.0)


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

62.8

%


74.3

%


60.8

%


63.1

%


69.5

%

Effect of amortization of intangibles

(1.6)



(1.7)



(0.7)



(0.8)



(1.0)


Effect of non-core items

(5.6)



(14.4)



(2.5)



(0.7)



(8.2)


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

55.6

%


58.2

%


57.6

%


61.6

%


60.3

%











Return on average common equity (GAAP)

1.02

%


2.92

%


6.08

%


6.41

%


6.70

%

Effect of non-core revenues and expenses

6.90



3.07



0.67



0.14



0.74


Core return on average common equity (Non-GAAP)

7.92

%


5.99

%


6.75

%


6.55

%


7.44

%

Effect of intangibles (2)

4.81



2.96



2.11



2.44



3.31


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

12.73

%


8.95

%


8.86

%


8.99

%


10.75

%











Total shareholders' equity (GAAP)

$

3,696,791



$

3,726,774



$

3,503,242



$

3,457,975



$

2,939,694


Less:  Goodwill and other intangibles

1,271,807



1,276,241



752,336



753,991



755,765


           Preferred stock

132,097



132,097



132,097



132,097



132,097


Tangible common equity (Non-GAAP) (2)

$

2,292,887



$

2,318,436



$

2,618,809



$

2,571,887



$

2,051,832












Total assets (GAAP)

$

27,904,129



$

27,976,635



$

21,790,727



$

22,008,479



$

21,659,190


Less:  Goodwill and other intangibles

1,271,807



1,276,241



752,336



753,991



755,765


Tangible assets (Non-GAAP) (2)

$

26,632,322



$

26,700,394



$

21,038,391



$

21,254,488



$

20,903,425


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

8.61

%


8.68

%


12.45

%


12.10

%


9.82

%


(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