IBERIABANK Corporation Reports Third Quarter Results

LAFAYETTE, La., Oct. 19, 2018 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 131-year-old IBERIABANK (www.iberiabank.com), reported financial results for the third quarter ended September 30, 2018. For the quarter, the Company reported net income available to common shareholders of $97.9 million, or $1.73 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 2018 was $1.74 per common share, compared to $1.00 in the year-ago period, an increase of 74% (refer to press release supplemental tables for a reconciliation of GAAP to non-GAAP metrics). Excluding quarters where we had bargain purchase gains, Core EPS
was a record in the third quarter of 2018.

Daryl G. Byrd, President and Chief Executive Officer, commented, "We are pleased to report another quarter of solid financial performance driven by loan growth, increased revenues, and a reduced expense base. Today, we are providing initial financial guidance for 2019.  Our focus on delivering sustainable, profitable returns to our shareholders is reflected in our guidance as we continue to work toward achieving our 2020 Strategic Goals, which we expect to attain in 2019."

Highlights for the third quarter of 2018 and at September 30, 2018:

 

For the three months ended

 

GAAP

 

Non-GAAP Core

 

3Q18

2Q18

 

3Q18

2Q18

Earnings Per Common Share

$

1.73

 

$

1.30

   

$

1.74

 

$

1.71

 

Return on Average Assets

1.34

%

1.01

%

 

1.35

%

1.32

%

Return on Average Common Equity

10.21

%

7.87

%

 

10.27

%

10.30

%

Return on Average Tangible Common Equity

N/A

N/A

 

16.34

%

16.70

%

Efficiency Ratio

54.2

%

63.5

%

 

54.0

%

56.6

%

Tangible Efficiency Ratio (TE)

N/A

N/A

 

52.0

%

54.3

%

 

  • On a linked quarter basis, both GAAP and Core EPS improved driven by loan growth, margin stability and expense reduction. 
  • Revenue growth and declining expense produced positive operating leverage in the quarter.
  • Solid returns in 3Q18 allowed the company to achieve previously announced 2020 Strategic Goals for the second consecutive quarter.
  • The Company's reported and cash net interest margins declined 2 basis points on a linked quarter basis, to 3.74% and 3.47%, respectively.
  • Non-interest expense declined $27.5 million on a linked quarter basis. On a core basis, non-interest expense decreased $6.8 million.
  • Total loan growth was $268.1 million, or 5% annualized.
  • Total deposits decreased $237.0 million, or -4% annualized. As of September, 30, 2018, total non-interest bearing deposits represented 28% of total deposits. Third quarter deposits were significantly influenced by several large commercial deposit outflows, which were expected.
  • Credit metrics remained stable. Classified assets are down 20% from the same time a year ago.
  • As previously announced, during 3Q18 the Company closed 22 retail branches and expects to realize $2 million in operating expense savings per quarter.
  • During 3Q18, the Company repurchased 363,210 common shares at a weighted average price of $83.63 per common share.
  • The Company announced a third quarter cash dividend equal to $0.39 per common share, a 3% increase compared to the common dividend declared in June 2018.
  • On October 19, 2018, the Company announced a fourth quarter cash dividend equal to $0.41 per common share, payable on January 25, 2019, to shareholders of record on December 31, 2018.  This equates to a 5% increase to the third quarter common dividend. This announcement marks the third common dividend increase in 2018.

4Q18 Special Items

In connection with filing its 2017 income tax returns, the Company anticipates recognizing a non-core, permanent net income tax benefit of approximately $55 million in the fourth quarter of 2018. This anticipated benefit is based on the repricing of  its current and deferred income tax position associated with the Tax Cuts and Jobs Act of 2017 following the filing of the Company's remaining state income tax returns and the receipt of written consent from the IRS on a tax accounting method change.  The Company expects these items to be finalized in the fourth quarter of 2018.

2019 Financial Guidance

The Company is providing initial financial guidance for 2019 as listed below:

2019 Guidance

Average Earning Assets

$28.6B ~ $28.9B

Consolidated Loan Growth

5% ~ 7%

Consolidated Deposit Growth

5% ~ 7%

Provision Expense

$35MM ~ $49MM

Non-Interest Income (Core Basis)

$215MM ~ $225MM

Non-Interest Expense (Core Basis)

$685MM ~ $700MM

Net Interest Margin

3.60% ~ 3.70%

Tax Rate

22.5% ~ 23.5%

Preferred Dividend & Unrestricted Shares

$12.5 ~ $13.5

Share Repurchase Activity

$135MM ~ $150MM

Credit Quality

Stable

 

  • Guidance includes two interest rate increases in 2019.
  • Impact of deployment alternatives related to the $55 million non-core permanent tax in 2018 are not included in the guidance at this time. Once received, management and the Board of Directors will evaluate deployment alternatives, which may include increased dividends, additional share repurchases, and/or balance sheet management strategies.

 

Table A - Summary Financial Results

(Dollars in thousands, except per share data)

                     
 

For the Three Months Ended

 

9/30/2018

   

6/30/2018

 

% Change

 

9/30/2017

 

% Change

GAAP BASIS:

                   

Income available to common shareholders

$

97,866

     

$

74,175

   

31.9

   

$

26,046

   

275.7

 

Earnings per common share - diluted

1.73

     

1.30

   

33.1

   

0.49

   

253.1

 
                     

Average loans and leases, net of unearned income

$

22,162,373

     

$

21,830,720

   

1.5

   

$

18,341,154

   

20.8

 

Average total deposits

23,241,529

     

23,155,871

   

0.4

   

19,785,328

   

17.5

 

Net interest margin (TE) (1)

3.74

 

%

 

3.76

 

%

   

3.64

 

%

 
                     

Total revenues (2)

$

312,312

     

$

310,053

   

0.7

   

$

267,726

   

16.7

 

Total non-interest expense (2)

169,349

     

196,877

   

(14.0)

   

200,762

   

(15.6)

 

Efficiency ratio (2)

54.2

 

%

 

63.5

 

%

   

75.0

 

%

 

Return on average assets

1.34

     

1.01

       

0.45

     

Return on average common equity

10.21

     

7.87

       

2.92

     
                     

NON-GAAP BASIS (3):

                   

Core revenues (2)

$

312,311

     

$

310,050

   

0.7

   

$

267,968

   

16.5

 

Core non-interest expense (2)

168,649

     

175,445

   

(3.9)

   

161,462

   

4.5

 

Core earnings per common share - diluted

1.74

     

1.71

   

1.8

   

1.00

   

74.0

 

Core tangible efficiency ratio (TE) (1) (2) (4)

52.0

 

%

 

54.3

 

%

   

57.9

 

%

 

Core return on average assets

1.35

     

1.32

       

0.87

     

Core return on average common equity

10.27

     

10.30

       

5.99

     

Core return on average tangible common equity

16.34

     

16.70

       

8.95

     

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

3.47

     

3.49

       

3.30

     
                     

 

 

(1)  Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017.

(2)  Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. The adoption resulted in a reduction of non-interest income and non-interest expense of approximately $2.2 million and had no impact on net income.

(3)  See Table 9 and Table 10 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.

 

 

 

Operating Results

 

The Company's reported and cash net interest margins declined 2 basis points on a linked quarter basis, to 3.74% and 3.47%, respectively. The Company realized $1.1 million less in recoveries on acquired impaired loans compared to 2Q18.

Net interest income increased $3.1 million, or 1%, on a linked quarter basis. Average loans increased $331.7 million, or 6% annualized, and the associated taxable-equivalent yield increased 11 basis points. All other average earning assets decreased by $52.1 million from the linked quarter. The yield on total earning assets was 11 basis points higher at 4.57% compared to 4.46% in the linked quarter.

Average interest-bearing deposits increased $197.2 million, or 5% annualized, and the average cost of interest-bearing deposits rose 17 basis points to 106 basis points on a linked quarter basis. Total average interest-bearing liabilities increased by $355.3 million, or 8% annualized, and the average cost of interest-bearing liabilities rose 18 basis points to 120 basis points. The total cost of interest-bearing liabilities rose primarily due to an upward repricing of deposits, brokered wholesale CD issuances, and increases in the average rate paid on short-term and long-term FHLB advances. The total cost of funding in 3Q18 was 89 basis points, compared to 75 basis points in 2Q18.

The Company's provision for loan losses increased to $11.1 million on a linked quarter basis and covered net charge-offs in 3Q18 by 124%. The overall increase in provision was mainly attributable to a $741.7 million increase in legacy loans.

In 3Q18, non-interest income decreased $0.9 million, or 2%, compared to 2Q18 primarily as a result of seasonal declines in the Company's fee income businesses. Non-interest income on a linked quarter basis included a decrease of $1.0 million in mortgage income, a decrease of $0.6 million in title revenue, and a decrease of $0.5 million in ATM/debit card fee income. These decreases were offset by an increase of $1.1 million in client derivative activity and $0.6 million in service charges on deposit accounts.

Non-interest expense decreased $27.5 million, or 14%, on a linked quarter basis, primarily due to decreased merger and conversion-related expenses and reduced salaries and employee benefits expenses. During 3Q18, non-interest expense included $3.3 million in branch closure and other impairment expenses, a $2.7 million gain on the early termination of loss share agreements, $1.1 million in compensation-related expenses, and $1.0 million in merger and conversion-related expenses that are considered non-core items by management.

Excluding these items, core non-interest expense decreased $6.8 million, or 4%, primarily driven by decreases of $1.4 million in salary and employee benefits expenses, $1.4 million in occupancy and equipment expenses, $1.3 million in the accrual for mortgage loan repurchase reserves, $1.3 million in professional services expenses, and $0.8 million in marketing and business development expenses.

Branch closure expenses were partially offset by gains on sales of branches previously closed and gains on the termination of loss share agreements acquired in the Sabadell United Bank acquisition and made up the majority of the variance between GAAP and Core EPS.

On a linked quarter basis, the efficiency ratio improved to 54.2% from 63.5%, while the non-GAAP core tangible efficiency ratio improved to 52.0% from 54.3%. The Company continues to focus on cost containment and revenue enhancement efforts to deliver positive operating leverage. 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

   

9/30/2018

 

6/30/2018

 

% Change

 

9/30/2017

 

% Change

PERIOD-END BALANCES:

                       
 

Total loans and leases, net of unearned income

$

22,343,906

     

$

22,075,783

     

1.2

   

$

19,795,085

     

12.9

 
 

Total deposits

23,193,446

     

23,430,458

     

(1.0)

   

21,334,271

     

8.7

 
                           

ASSET QUALITY RATIOS:

                       
 

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

0.32

%

   

0.20

%

       

0.29

%

     
 

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

0.06

     

0.04

         

0.01

       
 

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

0.63

     

0.54

         

0.63

       
 

Classified assets to total assets (3)

1.09

     

1.26

         

1.47

       
                           

CAPITAL RATIOS:

                       
 

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

8.69

%

   

8.56

%

       

8.68

%

     
 

Tier 1 leverage ratio (6)

9.65

     

9.54

         

10.17

       
 

Total risk-based capital ratio (6)

12.42

     

12.37

         

12.78

       
                           

PER COMMON SHARE DATA:

                       
 

Book value

$

68.03

     

$

67.06

     

1.4

   

$

66.74

     

1.9

 
 

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

44.72

     

43.75

     

2.2

   

43.04

     

3.9

 
 

Closing stock price

81.35

     

75.80

     

7.3

   

82.15

     

(1.0)

 
 

Cash dividends

0.39

     

0.38

     

2.6

   

0.37

     

5.4

 
                           

 

 

(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 $328 million, $379 million and $410 million at September 30, 2018, June 30, 2018, and September 30, 2017, 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 September 30, 2018 are preliminary.

 

 

 

Loans and Other Assets

 

Total loans increased $268.1 million, or 5% annualized, to $22.3 billion at September 30, 2018. Period-end loan growth during 3Q18 was strongest in the Energy Group (reserve-based lending), South Florida Commercial, Corporate Asset Finance Group (equipment financing business), and the Birmingham, Tampa and Dallas markets. The Company believes it is well-positioned for diversified loan growth based on our strategic presence in significant MSAs in the Southeastern United States.

Table C - Period-End Loans

(Dollars in thousands)

                                 
 

As of and For the Three Months Ended

             

Linked Qtr Change

 

Year/Year Change

 

Mix

 

9/30/2018

 

6/30/2018

 

9/30/2017

 

$

%

 

Annualized

 

$

%

 

9/30/2018

6/30/2018

Legacy loans:

                               

Commercial(1)

$

11,971,771

   

$

11,500,907

   

$

10,295,455

   

470,864

 

4.1

   

16.2

%

 

1,676,316

 

16.3

   

73.2

%

73.7

%

Residential mortgage

1,836,119

   

1,534,294

   

1,040,990

   

301,825

 

19.7

   

78.0

%

 

795,129

 

76.4

   

11.2

%

9.8

%

Consumer

2,543,872

   

2,574,834

   

2,496,701

   

(30,962)

 

(1.2)

   

(4.8)

%

 

47,171

 

1.9

   

15.6

%

16.5

%

Total legacy loans

16,351,762

   

15,610,035

   

13,833,146

   

741,727

 

4.8

   

18.9

%

 

2,518,616

 

18.2

   

100.0

%

100.0

%

                                 

Acquired loans:

                               

Balance at beginning of period

6,465,748

   

6,792,168

   

2,062,606

   

(326,420)

 

(4.8)

       

4,403,142

 

213.5

       

Loans acquired during the period

   

   

4,026,020

   

 

       

(4,026,020)

 

N/M

     

Net paydown activity

(473,604)

   

(326,420)

   

(126,687)

   

(147,184)

 

45.1

       

(346,917)

 

273.8

       

Total acquired loans

5,992,144

   

6,465,748

   

5,961,939

   

(473,604)

 

(7.3)

       

30,205

 

0.5

       

Total loans

$

22,343,906

   

$

22,075,783

   

$

19,795,085

   

268,123

 

1.2

       

2,548,821

 

12.9

       

 

 

 

(1) Includes equipment financing leases.

N/M= not meaningful

 

On an average balance and linked quarter basis, the investment portfolio increased $37.9 million, or 3% annualized, to $4.9 billion, mainly due to purchases of additional investment securities. Approximately 96% of the Company's investment portfolio is in available-for-sale securities, which experience unrealized losses as interest rates rise. On a period-end basis, the investment portfolio equated to $4.8 billion, or 16% of total assets at September 30, 2018. The investment portfolio had an effective duration of 4.0 years at September 30, 2018, up from 3.9 years at June 30, 2018, and a $181.1 million unrealized loss at September 30, 2018, up from an $151.4 million loss at June 30, 2018. The average yield on investment securities increased 1 basis point to 2.43% in 3Q18. The Company holds in its investment portfolio primarily government agency securities. Municipal securities comprised 8% of total investments at September 30, 2018.

Deposits and Funding

Total deposits decreased $237.0 million, or 1%, to $23.2 billion at September 30, 2018. Deposit growth during 3Q18 was strongest in the Dallas, Baton Rouge and New York markets. Third quarter deposits were significantly influenced by several large commercial deposit outflows, which were expected. During the quarter, the Company had continued growth in its number of deposit
accounts, and expects positive deposit trends to resume moving forward. Periodic lumpy inflows and outflows are not unusual given the commercial nature of our franchise.

Table D - Period-End Deposits

(Dollars in thousands)

             

Linked Qtr Change

 

Year/Year Change

 

Mix

 

9/30/2018

 

6/30/2018

 

9/30/2017

 

$

%

Annualized

 

$

%

 

9/30/2018

6/30/2018

Non-interest-bearing

$

6,544,926

   

$

6,814,441

   

$

5,963,943

   

(269,515)

 

(4.0)

 

(15.9)

%

 

580,983

 

9.7

   

28.2

%

29.1

%

NOW accounts

4,247,533

   

4,453,152

   

3,547,761

   

(205,619)

 

(4.6)

 

(18.3)

%

 

699,772

 

19.7

   

18.3

%

19.0

%

Money market accounts

8,338,682

   

8,467,906

   

8,321,755

   

(129,224)

 

(1.5)

 

(6.0)

%

 

16,927

 

0.2

   

36.0

%

36.1

%

Savings accounts

820,354

   

850,425

   

843,662

   

(30,071)

 

(3.5)

 

(13.9)

%

 

(23,308)

 

(2.8)

   

3.5

%

3.6

%

Time deposits

3,241,951

   

2,844,534

   

2,657,150

   

397,417

 

14.0

 

55.5

%

 

584,801

 

22.0

   

14.0

%

12.2

%

Total deposits

$

23,193,446

   

$

23,430,458

   

$

21,334,271

   

(237,012)

 

(1.0)

 

(4.0)

%

 

1,859,175

 

8.7

   

100.0

%

100.0

%

Asset Quality

Credit quality remains stable and reflects strength in the economy.  On a linked quarter basis, classified assets decreased $51.6 million and were down $82.9 million, or 20%, from the same time a year ago. The Company's classified assets to total assets were 1.09% in 3Q18, down from 1.26% at 2Q18 and 1.47% at 3Q17.

Refer to Table 5 - Loans and Asset Quality Data for further information.

Capital Position

At September 30, 2018, the Company reported a non-GAAP tangible common equity ratio of 8.69%, up 13 basis points compared to June 30, 2018, and the preliminary Tier 1 leverage ratio was 9.65%, up 11 basis points compared to June 30, 2018. The Company's preliminary calculation of its total risk-based capital ratio at September 30, 2018, was 12.42%, up 5 basis points compared to June 30, 2018.

At September 30, 2018, book value per common share was $68.03, up $0.97 per share, compared to June 30, 2018. Tangible book value per common share was $44.72, up $0.97 per share, compared to June 30, 2018. Based on the closing stock price of the Company's common stock of $75.30 per share on October 18, 2018, this price equated to 1.11 times September 30, 2018 book value per common share and 1.68 times September 30, 2018 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 August 2, 2018, the Company declared a quarterly cash dividend of $0.39 per common share, a 3% increase compared to the common dividend declared in June 2018. The dividend is payable on October 26, 2018, to shareholders of record as of September 28, 2018.

On October 19, 2018, the Company announced a quarterly cash dividend equal to $0.41 per common share, payable on January 25, 2019, to shareholders of record on December 31, 2018.  This equated to a 5% increase to the common dividend declared in August 2018. This announcement marks the third common dividend increase in 2018.

Preferred Stock. On July 6, 2018, the Company declared a semi-annual cash dividend of $0.8281 per depositary share of Series B Preferred Stock that was paid on August 1, 2018. On August 2, 2018, the Company declared a quarterly cash dividend of $0.4125 per depositary share of Series C Preferred Stock that is payable on November 1, 2018.

Common Stock Repurchase Program. On May 10, 2018, the Board of Directors authorized the repurchase of up to 1,137,500 shares of the Company's common stock. This repurchase authorization equated to approximately 2% of total common shares outstanding. Stock repurchases under this program will be made from time to time, on the open market or in privately negotiated transactions at the discretion of the management of the Company. The timing of these repurchases will depend on market conditions and other requirements. The Company anticipates executing an active quarterly share repurchase. During 3Q18, the Company repurchased 363,210 common shares, at a weighted average price of $83.63 per common share. At September 30, 2018, there were approximately 709,290 remaining shares that may be repurchased under the current Board-approved plan.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with locations in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, South Carolina, North Carolina, Mississippi, Missouri, and New York 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 $4.2 billion, based on the NASDAQ Global Select Market closing stock price on October 18, 2018.

The following 10 investment firms currently provide equity research coverage on the Company:

  • Bank of America Merrill Lynch
  • FIG Partners, LLC
  • Hovde Group, LLC
  • Jefferies & Co., Inc.
  • 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, October 19, 2018, beginning at 8:00 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 9041078. A replay of the call will be available until midnight Central Time on October 26, 2018 by dialing 1-877-344-7529. The confirmation code for the replay is 10124103. 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, debt repayment penalties, and gains, losses, and impairment charges on long-lived assets. 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, 2017, and in other documents subsequently filed by the Company with the Securities and Exchange Commission, available at the SEC's website, https://www.sec.gov, and the Company's website, https://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:

9/30/2018

 

6/30/2018

 

% Change

 

9/30/2017

 

% Change

 

Net interest income

$

259,225

     

$

256,113

     

1.2

   

$

216,883

     

19.5

 
 

Net interest income (TE) (1)

260,727

     

257,562

     

1.2

   

219,463

     

18.8

 
 

Total revenues (2)

312,312

     

310,053

     

0.7

   

267,726

     

16.7

 
 

Provision for loan losses

11,097

     

7,595

     

46.1

   

18,514

     

(40.1)

 
 

Non-interest expense (2)

169,349

     

196,877

     

(14.0)

   

200,762

     

(15.6)

 
 

Net income available to common shareholders

97,866

     

74,175

     

31.9

   

26,046

     

275.7

 
                           

PER COMMON SHARE DATA:

                       
 

Earnings available to common shareholders - basic

$

1.74

     

$

1.31

     

32.8

   

$

0.49

     

255.1

 
 

Earnings available to common shareholders - diluted

1.73

     

1.30

     

33.1

   

0.49

     

253.1

 
 

Core earnings (Non-GAAP) (3)

1.74

     

1.71

     

1.8

   

1.00

     

74.0

 
 

Book value

68.03

     

67.06

     

1.4

   

66.74

     

1.9

 
 

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

44.72

     

43.75

     

2.2

   

43.04

     

3.9

 
 

Closing stock price

81.35

     

75.80

     

7.3

   

82.15

     

(1.0)

 
 

Cash dividends

0.39

     

0.38

     

2.6

   

0.37

     

5.4

 
                           

KEY RATIOS AND OTHER DATA (7):

               
 

Net interest margin (TE) (1)

3.74

%

   

3.76

%

       

3.64

%

     
 

Efficiency ratio (2)

54.2

     

63.5

         

75.0

       
 

Core tangible efficiency ratio (TE) (Non-GAAP) (1) (2) (3) (4)

52.0

     

54.3

         

57.9

       
 

Return on average assets

1.34

     

1.01

         

0.45

       
 

Return on average common equity

10.21

     

7.87

         

2.92

       
 

Core return on average tangible common equity (Non-GAAP) (3)(4)

16.34

     

16.70

         

8.95

       
 

Effective tax rate

23.1

     

28.8

         

38.8

       
 

Full-time equivalent employees

3,429

     

3,543

         

3,646

       
                           

CAPITAL RATIOS:

                       
 

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

8.69

%

   

8.56

%

       

8.68

%

     
 

Tangible common equity to risk-weighted assets (4)

10.17

     

10.18

         

10.56

       
 

Tier 1 leverage ratio (5)

9.65

     

9.54

         

10.17

       
 

Common equity Tier 1 (CET 1) ratio (5)

10.79

     

10.72

         

10.93

       
 

Tier 1 capital ratio (5)

11.33

     

11.27

         

11.53

       
 

Total risk-based capital ratio (5)

12.42

     

12.37

         

12.78

       
 

Common stock dividend payout ratio

21.8

     

28.9

         

76.5

       
 

Classified assets to Tier 1 capital (8)

11.7

     

13.9

         

16.2

       
                           

ASSET QUALITY RATIOS:

               
 

Non-performing assets to total assets (6)

0.63

%

   

0.54

%

       

0.63

%

     
 

ALLL to total loans and leases

0.61

     

0.62

         

0.69

       
 

Net charge-offs to average loans (annualized)

0.16

     

0.21

         

0.62

       
 

Non-performing assets to total loans and OREO (6)

0.84

     

0.74

         

0.89

       
                           

 

 

 

(1)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017.

(2)

Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. The adoption resulted in a reduction of non-interest income and non-interest expense of approximately $2.2 million and had no impact on net income.

(3)

See Table 9 and Table 10 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, 2018 are preliminary.

(6)

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.

(7)

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

(8)

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

 

9/30/2018

 

6/30/2018

 

$

%

 

3/31/2018

 

12/31/2017

 

9/30/2017

 

$

%

Interest income

$

317,067

   

$

303,823

   

13,244

 

4.4

   

$

270,543

   

$

269,703

   

$

246,972

   

70,095

 

28.4

 

Interest expense

57,842

   

47,710

   

10,132

 

21.2

   

37,654

   

34,201

   

30,089

   

27,753

 

92.2

 

Net interest income

259,225

   

256,113

   

3,112

 

1.2

   

232,889

   

235,502

   

216,883

   

42,342

 

19.5

 

Provision for loan losses

11,097

   

7,595

   

3,502

 

46.1

   

7,986

   

14,393

   

18,514

   

(7,417)

 

(40.1)

 

Net interest income after provision for loan losses

248,128

   

248,518

   

(390)

 

(0.2)

   

224,903

   

221,109

   

198,369

   

49,759

 

25.1

 

Mortgage income

12,732

   

13,721

   

(989)

 

(7.2)

   

9,595

   

13,675

   

16,050

   

(3,318)

 

(20.7)

 

Service charges on deposit accounts

13,520

   

12,950

   

570

 

4.4

   

12,908

   

12,581

   

12,534

   

986

 

7.9

 

Title revenue

6,280

   

6,846

   

(566)

 

(8.3)

   

5,027

   

5,398

   

5,643

   

637

 

11.3

 

Broker commissions(1)

2,627

   

2,396

   

231

 

9.6

   

2,221

   

1,958

   

2,094

   

533

 

25.5

 

ATM/debit card fee income(1)

2,470

   

2,925

   

(455)

 

(15.6)

   

2,633

   

2,583

   

2,486

   

(16)

 

(0.6)

 

Income from bank owned life insurance

1,744

   

1,261

   

483

 

38.3

   

1,282

   

1,267

   

1,263

   

481

 

38.1

 

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

   

3

   

(3)

 

(100.0)

   

(59)

   

35

   

(242)

   

242

 

100.0

 

Trust department income

3,993

   

4,243

   

(250)

 

(5.9)

   

3,426

   

3,081

   

2,686

   

1,307

 

48.7

 

Other non-interest income(1)

9,721

   

9,595

   

126

 

1.3

   

7,533

   

11,764

   

8,329

   

1,392

 

16.7

 

Total non-interest income(1)

53,087

   

53,940

   

(853)

 

(1.6)

   

44,566

   

52,342

   

50,843

   

2,244

 

4.4

 

Salaries and employee benefits

101,159

   

107,445

   

(6,286)

 

(5.9)

   

104,586

   

104,387

   

106,970

   

(5,811)

 

(5.4)

 

Occupancy and equipment

18,889

   

19,931

   

(1,042)

 

(5.2)

   

20,047

   

19,211

   

19,139

   

(250)

 

(1.3)

 

Amortization of acquisition intangibles

5,382

   

6,111

   

(729)

 

(11.9)

   

5,102

   

4,642

   

4,527

   

855

 

18.9

 

Data processing(1)

9,036

   

9,309

   

(273)

 

(2.9)

   

12,393

   

11,416

   

12,300

   

(3,264)

 

(26.5)

 

Professional services

5,519

   

7,160

   

(1,641)

 

(22.9)

   

7,391

   

9,441

   

22,550

   

(17,031)

 

(75.5)

 

Credit and other loan related expense

5,117

   

5,190

   

(73)

 

(1.4)

   

4,618

   

3,170

   

7,532

   

(2,415)

 

(32.1)

 

Other non-interest expense(1)

24,247

   

41,731

   

(17,484)

 

(41.9)

   

34,159

   

29,798

   

27,744

   

(3,497)

 

(12.6)

 

Total non-interest expense(1)

169,349

   

196,877

   

(27,528)

 

(14.0)

   

188,296

   

182,065

   

200,762

   

(31,413)

 

(15.6)

 

Income before income taxes

131,866

   

105,581

   

26,285

 

24.9

   

81,173

   

91,386

   

48,450

   

83,416

 

172.2

 

Income tax expense

30,401

   

30,457

   

(56)

 

(0.2)

   

17,552

   

81,108

   

18,806

   

11,595

 

61.7

 

Net income

101,465

   

75,124

   

26,341

 

35.1

   

63,621

   

10,278

   

29,644

   

71,821

 

242.3

 

Less: Preferred stock dividends

3,599

   

949

   

2,650

 

279.2

   

3,598

   

949

   

3,598

   

1

 

 

Net income available to common shareholders

$

97,866

   

$

74,175

   

23,691

 

31.9

   

$

60,023

   

$

9,329

   

$

26,046

   

71,820

 

275.7

 
                               

Income available to common shareholders - basic

$

97,866

   

$

74,175

   

23,691

 

31.9

   

$

60,023

   

$

9,329

   

$

26,046

   

71,820

 

275.7

 

Less: Earnings allocated to unvested restricted stock

908

   

767

   

141

 

18.4

   

639

   

101

   

283

   

625

 

220.8

 

Earnings allocated to common shareholders

$

96,958

   

$

73,408

   

23,550

 

32.1

   

$

59,384

   

$

9,228

   

$

25,763

   

71,195

 

276.3

 
                               

Earnings per common share - basic

$

1.74

   

$

1.31

   

0.43

 

32.8

   

$

1.11

   

$

0.17

   

$

0.49

   

1.25

 

255.1

 
                               

Earnings per common share - diluted

1.73

   

1.30

   

0.43

 

33.1

   

1.10

   

0.17

   

0.49

   

1.24

 

253.1

 

Impact of non-core items (Non-GAAP) (2)

0.01

   

0.41

   

(0.40)

 

(97.6)

   

0.27

   

1.16

   

0.51

   

(0.50)

 

(98.0)

 

Earnings per share - diluted, excluding non-core items (Non-GAAP) (2)

$

1.74

   

$

1.71

   

0.03

 

1.8

   

$

1.37

   

$

1.33

   

$

1.00

   

0.74

 

74.0

 
                               

NUMBER OF COMMON SHARES OUTSTANDING (in thousands)

                             

Weighted average common shares outstanding - basic

55,571

   

55,931

   

(360)

 

(0.6)

   

53,616

   

53,287

   

52,424

   

3,147

 

6.0

 

Weighted average common shares outstanding - diluted

55,945

   

56,287

   

(342)

 

(0.6)

   

53,967

   

53,621

   

52,770

   

3,175

 

6.0

 

Book value shares (period end)

56,007

   

56,390

   

(383)

 

(0.7)

   

56,779

   

53,872

   

53,864

   

2,143

 

4.0

 
                               

 

 

 

(1)  Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. On average, the adoption resulted in a reduction of non-interest income and non-interest expense of approximately $2.3 million on a quarterly basis, and had no impact on net income.

(2)  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 Nine Months Ended

         

Change

 

9/30/2018

 

9/30/2017

 

$

%

Interest income

$

891,433

   

$

644,080

   

247,353

 

38.4

 

Interest expense

143,206

   

70,736

   

72,470

 

102.5

 

Net interest income

748,227

   

573,344

   

174,883

 

30.5

 

Provision for loan losses

26,678

   

36,718

   

(10,040)

 

(27.3)

 

Net interest income after provision for loan losses

721,549

   

536,626

   

184,923

 

34.5

 

Mortgage income

36,048

   

49,895

   

(13,847)

 

(27.8)

 

Service charges on deposit accounts

39,378

   

35,097

   

4,281

 

12.2

 

Title revenue

18,153

   

16,574

   

1,579

 

9.5

 

Broker commissions (1)

7,244

   

7,203

   

41

 

0.6

 

ATM/debit card fee income (1)

8,028

   

7,615

   

413

 

5.4

 

Income from bank owned life insurance

4,287

   

3,815

   

472

 

12.4

 

(Loss) gain on sale of available-for-sale securities

(56)

   

(183)

   

127

 

69.4

 

Trust department income

11,662

   

6,625

   

5,037

 

76.0

 

Other non-interest income (1)

26,849

   

23,164

   

3,685

 

15.9

 

Total non-interest income (1)

151,593

   

149,805

   

1,788

 

1.2

 

Salaries and employee benefits

313,190

   

275,140

   

38,050

 

13.8

 

Occupancy and equipment

58,867

   

51,452

   

7,415

 

14.4

 

Amortization of acquisition intangibles

16,595

   

7,948

   

8,647

 

108.8

 

Data processing (1)

30,738

   

25,374

   

5,364

 

21.1

 

Professional services

20,070

   

39,104

   

(19,034)

 

(48.7)

 

Credit and other loan related expense

14,925

   

15,838

   

(913)

 

(5.8)

 

Other non-interest expense (1)

100,137

   

70,082

   

30,055

 

42.9

 

Total non-interest expense (1)

554,522

   

484,938

   

69,584

 

14.3

 

Income before income taxes

318,620

   

201,493

   

117,127

 

58.1

 

Income tax expense

78,410

   

69,358

   

9,052

 

13.1

 

Net income

240,210

   

132,135

   

108,075

 

81.8

 

Less: Preferred stock dividends

8,146

   

8,146

   

 

 

Net income available to common shareholders

$

232,064

   

$

123,989

   

108,075

 

87.2

 
             

Income available to common shareholders - basic

$

232,064

   

$

123,989

   

108,075

 

87.2

 

Less: Earnings allocated to unvested restricted stock

2,341

   

1,052

   

1,289

 

122.5

 

Earnings allocated to common shareholders

$

229,723

   

$

122,937

   

106,786

 

86.9

 
             

Earnings per common share - basic

$

4.17

   

$

2.47

   

1.70

 

68.8

 
             

Earnings per common share - diluted

4.14

   

2.45

   

1.69

 

68.9

 

Impact of non-core items (Non-GAAP) (2)

0.69

   

0.68

   

0.01

 

1.5

 

Earnings per share - diluted, excluding non-core items (Non-GAAP) (2)

$

4.83

   

$

3.13

   

1.70

 

54.3

 
             

NUMBER OF COMMON SHARES OUTSTANDING (in thousands)

           

Weighted average common shares outstanding - basic

55,047

   

49,749

   

5,298

 

10.6

 

Weighted average common shares outstanding - diluted

55,407

   

50,106

   

5,301

 

10.6

 

Book value shares (period end)

56,007

   

53,864

   

2,143

 

4.0

 
             

 

 

 

(1)  Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. The adoption resulted in a reduction of non-interest income and non-interest expense of approximately $6.6 million and had no impact on net income.

(2)  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

9/30/2018

 

6/30/2018

 

$

 

%

 

3/31/2018

 

12/31/2017

 

9/30/2017

 

$

 

%

Cash and due from banks

$

291,083

   

$

299,268

   

(8,185)

   

(2.7)

   

$

253,527

   

$

319,156

   

$

298,173

   

(7,090)

   

(2.4)

 

Interest-bearing deposits in other banks

184,852

   

428,120

   

(243,268)

   

(56.8)

   

310,565

   

306,568

   

583,043

   

(398,191)

   

(68.3)

 

Total cash and cash equivalents

475,935

   

727,388

   

(251,453)

   

(34.6)

   

564,092

   

625,724

   

881,216

   

(405,281)

   

(46.0)

 

Investment securities available for sale

4,634,124

   

4,650,915

   

(16,791)

   

(0.4)

   

4,542,486

   

4,590,062

   

4,736,339

   

(102,215)

   

(2.2)

 

Investment securities held to maturity

213,561

   

221,030

   

(7,469)

   

(3.4)

   

224,241

   

227,318

   

175,906

   

37,655

   

21.4

 

Total investment securities

4,847,685

   

4,871,945

   

(24,260)

   

(0.5)

   

4,766,727

   

4,817,380

   

4,912,245

   

(64,560)

   

(1.3)

 

Mortgage loans held for sale

42,976

   

78,843

   

(35,867)

   

(45.5)

   

110,348

   

134,916

   

141,218

   

(98,242)

   

(69.6)

 

Loans and leases, net of unearned income

22,343,906

   

22,075,783

   

268,123

   

1.2

   

21,706,090

   

20,078,181

   

19,795,085

   

2,548,821

   

12.9

 

Allowance for loan and lease losses

(136,950)

   

(136,576)

   

(374)

   

0.3

   

(144,527)

   

(140,891)

   

(136,628)

   

(322)

   

0.2

 

Loans and leases, net

22,206,956

   

21,939,207

   

267,749

   

1.2

   

21,561,563

   

19,937,290

   

19,658,457

   

2,548,499

   

13.0

 

Premises and equipment, net

304,605

   

326,213

   

(21,608)

   

(6.6)

   

329,454

   

331,413

   

330,800

   

(26,195)

   

(7.9)

 

Goodwill and other intangible assets

1,313,478

   

1,320,664

   

(7,186)

   

(0.5)

   

1,338,573

   

1,277,464

   

1,281,479

   

31,999

   

2.5

 

Other assets

926,752

   

861,902

   

64,850

   

7.5

   

801,880

   

779,942

   

771,220

   

155,532

   

20.2

 

Total assets

$

30,118,387

   

$

30,126,162

   

(7,775)

   

   

$

29,472,637

   

$

27,904,129

   

$

27,976,635

   

2,141,752

   

7.7

 
                                   

LIABILITIES AND SHAREHOLDERS' EQUITY

                       

Non-interest-bearing deposits

$

6,544,926

   

$

6,814,441

   

(269,515)

   

(4.0)

   

$

6,595,495

   

$

6,209,925

   

$

5,963,943

   

580,983

   

9.7

 

NOW accounts

4,247,533

   

4,453,152

   

(205,619)

   

(4.6)

   

4,500,181

   

4,348,939

   

3,547,761

   

699,772

   

19.7

 

Savings and money market accounts

9,159,036

   

9,318,331

   

(159,295)

   

(1.7)

   

9,146,710

   

8,520,365

   

9,165,417

   

(6,381)

   

(0.1)

 

Time deposits

3,241,951

   

2,844,534

   

397,417

   

14.0

   

2,728,806

   

2,387,488

   

2,657,150

   

584,801

   

22.0

 

Total deposits

23,193,446

   

23,430,458

   

(237,012)

   

(1.0)

   

22,971,192

   

21,466,717

   

21,334,271

   

1,859,175

   

8.7

 

Short-term borrowings

790,000

   

595,000

   

195,000

   

32.8

   

375,000

   

475,000

   

975,008

   

(185,008)

   

(19.0)

 

Securities sold under agreements to repurchase

452,719

   

459,213

   

(6,494)

   

(1.4)

   

525,496

   

516,297

   

548,696

   

(95,977)

   

(17.5)

 

Trust preferred securities

120,110

   

120,110

   

   

   

120,110

   

120,110

   

120,110

   

   

 

Other long-term debt

1,346,700

   

1,318,504

   

28,196

   

2.1

   

1,329,192

   

1,375,725

   

1,007,474

   

339,226

   

33.7

 

Other liabilities

273,051

   

289,468

   

(16,417)

   

(5.7)

   

250,740

   

253,489

   

264,302

   

8,749

   

3.3

 

Total liabilities

26,176,026

   

26,212,753

   

(36,727)

   

(0.1)

   

25,571,730

   

24,207,338

   

24,249,861

   

1,926,165

   

7.9

 

Total shareholders' equity

3,942,361

   

3,913,409

   

28,952

   

0.7

   

3,900,907

   

3,696,791

   

3,726,774

   

215,587

   

5.8

 

Total liabilities and shareholders' equity

$

30,118,387

   

$

30,126,162

   

(7,775)

   

   

$

29,472,637

   

$

27,904,129

   

$

27,976,635

   

2,141,752

   

7.7

 

 

 

TABLE 4 Continued - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

                                   

AVERAGE BALANCES

 

Linked Qtr Change

             

Year/Year Change

ASSETS

9/30/2018

 

6/30/2018

 

$

 

%

 

3/31/2018

 

12/31/2017

 

9/30/2017

 

$

 

%

Cash and due from banks

$

279,918

   

$

296,907

   

(16,989)

   

(5.7)

   

$

308,319

   

$

307,328

   

$

277,968

   

1,950

   

0.7

 

Interest-bearing deposits in other banks

259,455

   

392,906

   

(133,451)

   

(34.0)

   

486,298

   

538,733

   

615,445

   

(355,990)

   

(57.8)

 

Total cash and cash equivalents

539,373

   

689,813

   

(150,440)

   

(21.8)

   

794,617

   

846,061

   

893,413

   

(354,040)

   

(39.6)

 

Investment securities available for sale

4,673,454

   

4,629,177

   

44,277

   

1.0

   

4,544,836

   

4,674,496

   

4,593,798

   

79,656

   

1.7

 

Investment securities held to maturity

216,419

   

222,764

   

(6,345)

   

(2.8)

   

226,229

   

191,067

   

114,895

   

101,524

   

88.4

 

Total investment securities

4,889,873

   

4,851,941

   

37,932

   

0.8

   

4,771,065

   

4,865,563

   

4,708,693

   

181,180

   

3.8

 

Mortgage loans held for sale

87,823

   

72,917

   

14,906

   

20.4

   

109,027

   

126,216

   

132,309

   

(44,486)

   

(33.6)

 

Loans and leases, net of unearned income

22,162,373

   

21,830,720

   

331,653

   

1.5

   

20,181,390

   

19,941,500

   

18,341,154

   

3,821,219

   

20.8

 

Allowance for loan and lease losses

(139,075)

   

(145,565)

   

6,490

   

(4.5)

   

(144,295)

   

(138,927)

   

(147,046)

   

7,971

   

(5.4)

 

Loans and leases, net

22,023,298

   

21,685,155

   

338,143

   

1.6

   

20,037,095

   

19,802,573

   

18,194,108

   

3,829,190

   

21.0

 

Premises and equipment, net

315,259

   

327,686

   

(12,427)

   

(3.8)

   

331,640

   

329,957

   

327,917

   

(12,658)

   

(3.9)

 

Goodwill and other intangible assets

1,316,527

   

1,338,420

   

(21,893)

   

(1.6)

   

1,281,598

   

1,277,293

   

1,047,355

   

269,172

   

25.7

 

Other assets

874,078

   

804,920

   

69,158

   

8.6

   

807,177

   

787,400

   

793,126

   

80,952

   

10.2

 

Total assets

$

30,046,231

   

$

29,770,852

   

275,379

   

0.9

   

$

28,132,219

   

$

28,035,063

   

$

26,096,921

   

3,949,310

   

15.1

 
                                   

LIABILITIES AND SHAREHOLDERS' EQUITY

                       

Non-interest-bearing deposits

$

6,684,343

   

$

6,795,878

   

(111,535)

   

(1.6)

   

$

6,278,507

   

$

6,176,347

   

$

5,601,071

   

1,083,272

   

19.3

 

NOW accounts

4,296,392

   

4,494,064

   

(197,672)

   

(4.4)

   

4,363,557

   

3,987,908

   

3,203,657

   

1,092,735

   

34.1

 

Savings and money market accounts

9,237,614

   

9,146,302

   

91,312

   

1.0

   

8,664,085

   

8,769,464

   

8,566,873

   

670,741

   

7.8

 

Time deposits

3,023,180

   

2,719,627

   

303,553

   

11.2

   

2,471,485

   

2,444,403

   

2,413,727

   

609,453

   

25.2

 

Total deposits

23,241,529

   

23,155,871

   

85,658

   

0.4

   

21,777,634

   

21,378,122

   

19,785,328

   

3,456,201

   

17.5

 

Short-term borrowings

820,087

   

609,965

   

210,122

   

34.4

   

506,056

   

729,111

   

1,180,165

   

(360,078)

   

(30.5)

 

Securities sold under agreements to repurchase

376,078

   

427,508

   

(51,430)

   

(12.0)

   

477,862

   

494,757

   

439,077

   

(62,999)

   

(14.3)

 

Trust preferred securities

120,110

   

120,110

   

   

   

120,110

   

120,110

   

120,110

   

   

 

Other long-term debt

1,260,900

   

1,261,515

   

(615)

   

   

1,257,213

   

1,300,114

   

622,655

   

638,245

   

102.5

 

Other liabilities

292,445

   

281,820

   

10,625

   

3.8

   

275,869

   

264,790

   

273,163

   

19,282

   

7.1

 

Total liabilities

26,111,149

   

25,856,789

   

254,360

   

1.0

   

24,414,744

   

24,287,004

   

22,420,498

   

3,690,651

   

16.5

 

Total shareholders' equity

3,935,082

   

3,914,063

   

21,019

   

0.5

   

3,717,475

   

3,748,059

   

3,676,423

   

258,659

   

7.0

 

Total liabilities and shareholders' equity

$

30,046,231

   

$

29,770,852

   

275,379

   

0.9

   

$

28,132,219

   

$

28,035,063

   

$

26,096,921

   

3,949,310

   

15.1

 

 

 

 

Table 5 - IBERIABANK CORPORATION

LOANS AND ASSET QUALITY DATA

(Dollars in thousands)

                     
   

Linked Qtr Change

             

Year/Year Change

LOANS

9/30/2018

 

6/30/2018

 

$

 

%

 

3/31/2018

 

12/31/2017

 

9/30/2017

 

$

 

%

Commercial loans and leases:

                                 

Real estate- construction

$

1,127,988

   

$

1,183,367

   

(55,379)

   

(4.7)

   

$

1,199,625

   

$

1,240,396

   

$

1,298,282

   

(170,294)

   

(13.1)

 

Real estate- owner-occupied (1)

2,458,964

   

2,455,685

   

3,279

   

0.1

   

2,449,513

   

2,375,321

   

2,306,941

   

152,023

   

6.6

 

Real estate- non-owner occupied

5,794,931

   

5,653,252

   

141,679

   

2.5

   

5,599,813

   

5,322,513

   

5,162,663

   

632,268

   

12.2

 

Commercial and industrial (6)

5,581,040

   

5,512,416

   

68,624

   

1.2

   

5,325,682

   

5,135,067

   

5,016,437

   

564,603

   

11.3

 

Total commercial loans and leases

14,962,923

   

14,804,720

   

158,203

   

1.1

   

14,574,633

   

14,073,297

   

13,784,323

   

1,178,600

   

8.6

 
                                   

Residential mortgage loans

4,300,163

   

4,124,538

   

175,625

   

4.3

   

3,971,067

   

3,056,352

   

3,024,970

   

1,275,193

   

42.2

 
                                   

Consumer loans:

                                 

Home equity

2,350,176

   

2,410,617

   

(60,441)

   

(2.5)

   

2,421,186

   

2,292,275

   

2,320,233

   

29,943

   

1.3

 

Other

730,644

   

735,908

   

(5,264)

   

(0.7)

   

739,204

   

656,257

   

665,559

   

65,085

   

9.8

 

Total consumer loans

3,080,820

   

3,146,525

   

(65,705)

   

(2.1)

   

3,160,390

   

2,948,532

   

2,985,792

   

95,028

   

3.2

 

Total loans and leases

$

22,343,906

   

$

22,075,783

   

268,123

   

1.2

   

$

21,706,090

   

$

20,078,181

   

$

19,795,085

   

2,548,821

   

12.9

 
                         

Allowance for loan and lease losses (2)

$

(136,950)

   

$

(136,576)

   

(374)

   

0.3

   

$

(144,527)

   

$

(140,891)

   

$

(136,628)

   

(322)

   

0.2

 

Loans and leases, net

22,206,956

   

21,939,207

   

267,749

   

1.2

   

21,561,563

   

19,937,290

   

19,658,457

   

2,548,499

   

13.0

 
                                   

Reserve for unfunded commitments

(14,721)

   

(14,433)

   

(288)

   

2.0

   

(13,432)

   

(13,208)

   

(21,032)

   

6,311

   

(30.0)

 

Allowance for credit losses

(151,671)

   

(151,009)

   

(662)

   

0.4

   

(157,959)

   

(154,099)

   

(157,660)

   

5,989

   

(3.8)

 
                                   

ASSET QUALITY DATA

                               

Non-accrual loans (3)

$

143,595

   

$

131,155

   

12,440

   

9.5

   

$

153,975

   

$

145,388

   

$

145,491

   

(1,896)

   

(1.3)

 

Other real estate owned and foreclosed assets

32,418

   

22,267

   

10,151

   

45.6

   

27,117

   

26,533

   

28,338

   

4,080

   

14.4

 

Accruing loans more than 90 days past due (3)

12,452

   

9,314

   

3,138

   

33.7

   

8,288

   

6,900

   

2,190

   

10,262

   

468.6

 

Total non-performing

assets (3)(4)

$

188,465

   

$

162,736

   

25,729

   

15.8

   

$

189,380

   

$

178,821

   

$

176,019

   

12,446

   

7.1

 
                                   

Loans 30-89 days past due (3)

$

70,624

   

$

43,159

   

27,465

   

63.6

   

$

78,293

   

$

61,717

   

$

58,327

   

12,297

   

21.1

 
                                   

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

0.63

%

 

0.54

%

         

0.64

%

 

0.64

%

 

0.63

%

       

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

0.84

   

0.74

           

0.87

   

0.89

   

0.89

         

ALLL to non-performing

loans (3)(5)

87.8

   

97.2

           

89.1

   

92.5

   

92.5

         

ALLL to non-performing

assets (3)(4)

72.7

   

83.9

           

76.3

   

78.8

   

77.6

         

ALLL to total loans and leases

0.61

   

0.62

           

0.67

   

0.70

   

0.69

         
                                   

Quarter-to-date charge-offs

$

12,006

   

$

13,618

   

(1,612)

   

(11.8)

   

$

9,116

   

$

12,526

   

$

30,460

   

(18,454)

   

(60.6)

 

Quarter-to-date recoveries

(3,049)

   

(1,968)

   

(1,081)

   

54.9

   

(4,813)

   

(2,425)

   

(1,644)

   

(1,405)

   

85.5

 

Quarter-to-date net charge-offs

$

8,957

   

$

11,650

   

(2,693)

   

(23.1)

   

$

4,303

   

$

10,101

   

$

28,816

   

(19,859)

   

(68.9)

 
                                   

Net charge-offs to average loans (annualized)

0.16

%

 

0.21

%

         

0.09

%

 

0.20

%

 

0.62

%

       
 

 

 

 

(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 and lease 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.

(6) Includes equipment financing leases.

 

 

 

 

TABLE 6 - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)

                   
 

For the Three Months Ended

 

9/30/2018

 

6/30/2018

 

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 and leases

$

14,825,572

 

$

191,014

 

5.13

%

 

$

14,631,985

 

$

178,830

 

4.92

%

 

21

Residential mortgage loans

4,230,471

 

48,145

 

4.55

   

4,041,259

 

47,215

 

4.67

   

(12)

Consumer loans

3,106,330

 

43,966

 

5.62

   

3,157,476

 

44,431

 

5.64

   

(2)

Total loans and leases

22,162,373

 

283,125

 

5.09

   

21,830,720

 

270,476

 

4.98

   

11

Mortgage loans held for sale

87,823

 

1,037

 

4.72

   

72,917

 

836

 

4.59

   

13

Investment securities (2)

5,016,163

 

29,793

 

2.43

   

4,958,769

 

29,325

 

2.42

   

1

Other earning assets

456,120

 

3,112

 

2.71

   

580,477

 

3,186

 

2.20

   

51

Total earning assets

27,722,479

 

317,067

 

4.57

   

27,442,883

 

303,823

 

4.46

   

11

Allowance for loan and lease losses

(139,075)

       

(145,565)

         

Non-earning assets

2,462,827

       

2,473,534

         

Total assets

$

30,046,231

       

$

29,770,852

         
                   

LIABILITIES AND SHAREHOLDERS' EQUITY

               

Interest-bearing liabilities:

                 

NOW accounts

$

4,296,392

 

$

8,841

 

0.82

%

 

$

4,494,064

 

$

8,620

 

0.77

%

 

5

Savings and money market accounts

9,237,614

 

23,076

 

0.99

   

9,146,302

 

18,434

 

0.81

   

18

Time deposits

3,023,180

 

12,484

 

1.64

   

2,719,627

 

9,105

 

1.34

   

30

Total interest-bearing deposits (3)

16,557,186

 

44,401

 

1.06

   

16,359,993

 

36,159

 

0.89

   

17

Short-term borrowings

1,196,165

 

4,727

 

1.57

   

1,037,473

 

3,327

 

1.29

   

28

Long-term debt

1,381,010

 

8,714

 

2.50

   

1,381,625

 

8,224

 

2.39

   

11

Total interest-bearing liabilities

19,134,361

 

57,842

 

1.20

   

18,779,091

 

47,710

 

1.02

   

18

Non-interest-bearing deposits

6,684,343

       

6,795,878

         

Non-interest-bearing liabilities

292,445

       

281,820

         

Total liabilities

26,111,149

       

25,856,789

         

Total shareholders' equity

3,935,082

       

3,914,063

         

Total liabilities and shareholders' equity

$

30,046,231

       

$

29,770,852

         
                   

Net interest income/Net interest spread

$

259,225

 

3.37

%

   

$

256,113

 

3.44

%

 

(7)

Taxable equivalent benefit

 

1,502

 

0.02

     

1,449

 

0.02

   

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

 

$

260,727

 

3.74

%

   

$

257,562

 

3.76

%

 

(2)

                   

 

 

 

(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017.

(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, 2018 and June 30, 2018 were 0.76% and 0.63%, respectively.

 

 

TABLE 6 Continued - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)

                       
 

For the Three Months Ended

 

3/31/2018

 

12/31/2017

 

9/30/2017

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 and leases

$

14,087,635

 

$

164,660

 

4.76

%

 

$

13,964,340

 

$

163,974

 

4.70

%

 

$

12,951,243

 

$

146,003

 

4.52

%

Residential mortgage loans

3,151,775

 

34,494

 

4.38

   

3,049,947

 

35,007

 

4.59

   

2,464,348

 

28,645

 

4.65

 

Consumer loans

2,941,980

 

38,915

 

5.36

   

2,927,213

 

38,836

 

5.26

   

2,925,563

 

42,240

 

5.73

 

Total loans and leases

20,181,390

 

238,069

 

4.79

   

19,941,500

 

237,817

 

4.77

   

18,341,154

 

216,888

 

4.73

 

Mortgage loans held for sale

109,027

 

1,154

 

4.23

   

126,216

 

1,251

 

3.96

   

132,309

 

1,209

 

3.66

 

Investment securities (2)

4,843,448

 

28,094

 

2.38

   

4,893,538

 

27,714

 

2.37

   

4,709,526

 

26,246

 

2.32

 

Other earning assets

679,902

 

3,226

 

1.92

   

725,042

 

2,921

 

1.60

   

789,223

 

2,629

 

1.32

 

Total earning assets

25,813,767

 

270,543

 

4.26

   

25,686,296

 

269,703

 

4.22

   

23,972,212

 

246,972

 

4.14

 

Allowance for loan and lease losses

(144,295)

       

(138,927)

       

(147,046)

     

Non-earning assets

2,462,747

       

2,487,694

       

2,271,755

     

Total assets

$

28,132,219

       

$

28,035,063

       

$

26,096,921

     
                       

LIABILITIES AND SHAREHOLDERS' EQUITY

                   

Interest-bearing liabilities:

                     

NOW accounts

$

4,363,557

 

$

7,081

 

0.66

%

 

$

3,987,908

 

$

5,404

 

0.54

%

 

$

3,203,657

 

$

4,384

 

0.54

%

Savings and money market accounts

8,664,085

 

14,579

 

0.68

   

8,769,464

 

13,345

 

0.60

   

8,566,873

 

11,650

 

0.54

 

Time deposits

2,471,485

 

6,584

 

1.08

   

2,444,403

 

6,115

 

0.99

   

2,413,727

 

5,766

 

0.95

 

Total interest-bearing deposits (3)

15,499,127

 

28,244

 

0.74

   

15,201,775

 

24,864

 

0.65

   

14,184,257

 

21,800

 

0.61

 

Short-term borrowings

983,918

 

2,524

 

1.04

   

1,223,868

 

2,901

 

0.94

   

1,619,242

 

4,152

 

1.02

 

Long-term debt

1,377,323

 

6,886

 

2.03

   

1,420,224

 

6,436

 

1.80

   

742,765

 

4,137

 

2.21

 

Total interest-bearing liabilities

17,860,368

 

37,654

 

0.86

   

17,845,867

 

34,201

 

0.76

   

16,546,264

 

30,089

 

0.72

 

Non-interest-bearing deposits

6,278,507

       

6,176,347

       

5,601,071

     

Non-interest-bearing liabilities

275,869

       

264,790

       

273,163

     

Total liabilities

24,414,744

       

24,287,004

       

22,420,498

     

Total shareholders' equity

3,717,475

       

3,748,059

       

3,676,423

     

Total liabilities and shareholders' equity

$

28,132,219

       

$

28,035,063

       

$

26,096,921

     
                       

Net interest income/Net interest spread

 

$

232,889

 

3.40

%

   

$

235,502

 

3.46

%

   

$

216,883

 

3.42

%

Taxable equivalent benefit

 

1,464

 

0.02

     

2,808

 

0.04

     

2,580

 

0.04

 

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

 

$

234,353

 

3.67

%

   

$

238,310

 

3.69

%

   

$

219,463

 

3.64

%

                       

 

 

(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017.

(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, 2018, December 31, 2017, and September 30, 2017, were 0.53%, 0.46% and 0.44%, respectively.

 

 

 

 

TABLE 7 - IBERIABANK CORPORATION

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

(Dollars in thousands)

                   
 

For the Nine Months Ended

 

9/30/2018

 

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 and leases

$

14,517,767

 

$

534,504

 

4.94

%

 

$

11,676,048

 

$

392,909

 

4.55

%

 

39

Residential mortgage loans

3,811,786

 

129,854

 

4.54

   

1,689,905

 

55,838

 

4.41

   

13

Consumer loans

3,069,198

 

127,312

 

5.55

   

2,869,756

 

116,383

 

5.42

   

13

Total loans and leases

21,398,751

 

791,670

 

4.96

   

16,235,709

 

565,130

 

4.69

   

27

Mortgage loans held for sale

89,845

 

3,027

 

4.49

   

150,873

 

3,429

 

3.03

   

146

Investment securities (2)

4,940,093

 

87,212

 

2.41

   

4,163,596

 

68,480

 

2.30

   

11

Other earning assets

571,346

 

9,524

 

2.23

   

852,908

 

7,041

 

1.11

   

112

Total earning assets

27,000,035

 

891,433

 

4.43

   

21,403,086

 

644,080

 

4.07

   

36

Allowance for loan and lease losses

(142,960)

       

(146,280)

         

Non-earning assets

2,466,370

       

2,026,028

         

Total assets

$

29,323,445

       

$

23,282,834

         
                   

LIABILITIES AND SHAREHOLDERS' EQUITY

               

Interest-bearing liabilities:

                 

NOW accounts

$

4,384,425

 

$

24,542

 

0.75

%

 

$

3,188,866

 

$

10,981

 

0.46

%

 

29

Savings and money market accounts

9,018,101

 

56,089

 

0.83

   

7,624,362

 

29,009

 

0.51

   

32

Time deposits

2,740,119

 

28,173

 

1.37

   

2,155,112

 

14,980

 

0.93

   

44

Total interest-bearing deposits (3)

16,142,645

 

108,804

 

0.90

   

12,968,340

 

54,970

 

0.57

   

33

Short-term borrowings

1,073,296

 

10,578

 

1.32

   

798,553

 

4,655

 

0.78

   

54

Long-term debt

1,380,000

 

23,824

 

2.31

   

663,752

 

11,111

 

2.24

   

7

Total interest-bearing liabilities

18,595,941

 

143,206

 

1.03

   

14,430,645

 

70,736

 

0.66

   

37

Non-interest-bearing deposits

6,587,729

       

5,192,491

         

Non-interest-bearing liabilities

283,438

       

232,130

         

Total liabilities

25,467,108

       

19,855,266

         

Total shareholders' equity

3,856,337

       

3,427,568

         

Total liabilities and shareholders' equity

$

29,323,445

       

$

23,282,834

         
                   

Net interest income/Net interest spread

$

748,227

 

3.40

%

   

$

573,344

 

3.41

%

 

(1)

Tax-equivalent benefit

 

4,482

 

0.02

     

7,543

 

0.05

   

(3)

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

 

$

752,709

 

3.72

%

   

$

580,887

 

3.63

%

 

9

                   

 

 

 

(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017.

(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, 2018 and 2017 were 0.64% and 0.40%, respectively.

 

 

Table 8 - IBERIABANK CORPORATION

LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS

(Dollars in millions)

                                       
 

For the Three Months Ended

 

9/30/2018

 

6/30/2018

 

3/31/2018

 

12/31/2017

 

9/30/2017

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

$

193

 

$

15,957

 

4.80

%

 

$

179

 

$

15,217

 

4.73

%

 

$

166

 

$

14,556

 

4.61

%

 

$

157

 

$

14,235

 

4.39

%

 

$

148

 

$

13,638

 

4.29

%

Acquired loans

90

 

6,205

 

5.78

   

91

 

6,614

 

5.51

   

72

 

5,625

 

5.20

   

81

 

5,706

 

5.61

   

69

 

4,703

 

5.86

 

Total loans

$

283

 

$

22,162

 

5.08

%

 

$

270

 

$

21,831

 

4.97

%

 

$

238

 

$

20,181

 

4.77

%

 

$

238

 

$

19,941

 

4.74

%

 

$

217

 

$

18,341

 

4.70

%

                                       
 

9/30/2018

 

6/30/2018

 

3/31/2018

 

12/31/2017

 

9/30/2017

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

(17)

 

144

 

(1.23)

   

(16)

 

142

 

(1.12)

   

(15)

 

142

 

(1.16)

   

(21)

 

161

 

(1.60)

   

(20)

 

120

 

(1.76)

 

Total loans

$

(17)

 

$

144

 

(0.35)

%

 

$

(16)

 

$

142

 

(0.34)

%

 

$

(15)

 

$

142

 

(0.32)

%

 

$

(21)

 

$

161

 

(0.46)

%

 

$

(20)

 

$

120

 

(0.45)

%

                                       
 

9/30/2018

 

6/30/2018

 

3/31/2018

 

12/31/2017

 

9/30/2017

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

$

193

 

$

15,957

 

4.80

%

 

$

179

 

$

15,217

 

4.73

%

 

$

166

 

$

14,556

 

4.61

%

 

$

157

 

$

14,235

 

4.39

%

 

$

148

 

$

13,638

 

4.29

%

Acquired loans

73

 

6,349

 

4.55

   

75

 

6,756

 

4.39

   

57

 

5,767

 

4.04

   

60

 

5,867

 

4.01

   

49

 

4,823

 

4.10

 

Total loans

$

266

 

$

22,306

 

4.73

%

 

$

254

 

$

21,973

 

4.63

%

 

$

223

 

$

20,323

 

4.45

%

 

$

217

 

$

20,102

 

4.28

%

 

$

197

 

$

18,461

 

4.25

%

 

 

 

Table 9 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands, except per share amounts)

                                   
 

For the Three Months Ended

 

9/30/2018

 

6/30/2018

 

3/31/2018

 

Pre-tax

 

After-tax

 

Per share (2)

 

Pre-tax

 

After-tax

 

Per share (2)

 

Pre-tax

 

After-tax

 

Per share (2)

Net income

$

131,866

   

$

101,465

   

$

1.79

   

$

105,581

   

$

75,124

   

$

1.32

   

$

81,173

   

$

63,621

   

$

1.17

 

Less: Preferred stock dividends

   

3,599

   

0.06

   

   

949

   

0.02

   

   

3,598

   

0.07

 

Income available to common shareholders (GAAP)

$

131,866

   

$

97,866

   

$

1.73

   

$

105,581

   

$

74,175

   

$

1.30

   

$

81,173

   

$

60,023

   

$

1.10

 
                                   

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

                               

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

(1)

   

(1)

   

   

(3)

   

(2)

   

   

59

   

44

   

 
                                   

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

                               

Merger-related expense

973

   

743

   

0.01

   

14,333

   

11,012

   

0.20

   

16,227

   

12,517

   

0.23

 

Compensation-related expense

1,104

   

839

   

0.01

   

1,781

   

1,354

   

0.02

   

1,221

   

928

   

0.02

 

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

3,286

   

2,497

   

0.05

   

5,413

   

4,114

   

0.07

   

2,074

   

1,576

   

0.03

 

Gain on early termination of loss share agreements

(2,708)

   

(2,058)

   

(0.04)

   

   

   

   

   

   

 

Other non-core non-interest expense

(1,955)

   

(1,486)

   

(0.02)

   

(95)

   

(72)

   

   

(683)

   

(520)

   

(0.01)

 

Total non-interest expense adjustments

700

   

535

   

0.01

   

21,432

   

16,408

   

0.29

   

18,839

   

14,501

   

0.27

 

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

   

   

   

   

6,572

   

0.12

   

   

   

 

Income tax expense (benefit) - other

   

   

   

   

   

   

   

173

   

 

Core earnings (Non-GAAP)

132,565

   

98,400

   

1.74

   

127,010

   

97,153

   

1.71

   

100,071

   

74,741

   

1.37

 

Provision for loan losses (1)

11,097

   

8,434

       

7,595

   

5,772

       

7,986

   

6,069

     

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

$

143,662

   

$

106,834

       

$

134,605

   

$

102,925

       

$

108,057

   

$

80,810

     
                                   
                                   
                                   
 

For the Three Months Ended

           
 

12/31/2017

 

9/30/2017

           
 

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

             

Less: Preferred stock dividends

   

949

   

0.02

   

   

3,598

   

0.07

             

Income available to common shareholders (GAAP)

$

91,386

   

$

9,329

   

$

0.17

   

$

48,450

   

$

26,046

   

$

0.49

             
                                   

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

                               

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

(35)

   

(22)

   

   

242

   

157

   

             
                                   

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

                               

Merger-related expense

11,373

   

8,487

   

0.16

   

28,478

   

19,255

   

0.36

             

Compensation-related expense

1,457

   

947

   

0.01

   

1,092

   

710

   

0.02

             

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

3,177

   

2,065

   

0.04

   

3,661

   

2,380

   

0.04

             

Litigation expense

   

1,228

   

0.02

   

5,692

   

4,696

   

0.09

             

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

             

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

             

Provision for loan losses (1)

14,393

   

9,355

       

18,514

   

12,034

                 

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

$

122,218

   

$

81,533

       

$

106,506

   

$

65,523

                 
                                   

 

 

 

(1) Excluding preferred stock dividends, merger-related expense, and litigation expense, after-tax amounts are calculated using a tax rate of 24% in 2018 and 35% in 2017, 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 Nine Months Ended

 
 

9/30/2018

 

9/30/2017

 
 

Pre-tax

 

After-tax

 

Per share (2)

 

Pre-tax

 

After-tax

 

Per share (2)

 

Net income

$

318,620

   

$

240,210

   

$

4.29

   

$

201,493

   

$

132,135

   

$

2.61

   

Less: Preferred stock dividends

   

8,146

   

0.15

   

   

8,146

   

0.16

   

Income available to common shareholders (GAAP)

$

318,620

   

$

232,064

   

$

4.14

   

$

201,493

   

$

123,989

   

$

2.45

   
                         

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

                     

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

55

   

41

   

   

183

   

119

   

   
                         

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

                     

Merger-related expense

31,533

   

24,272

   

0.44

   

29,598

   

20,079

   

0.40

   

Compensation-related expense

4,106

   

3,121

   

0.06

   

1,568

   

1,019

   

0.02

   

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

10,773

   

8,187

   

0.15

   

3,784

   

2,460

   

0.05

   

Gain on early termination of loss share agreements

(2,708)

   

(2,058)

   

(0.04)

   

   

   

   

Litigation expense

   

   

   

11,692

   

10,177

   

0.20

   

Other non-core non-interest expense

(2,733)

   

(2,078)

   

(0.04)

   

377

   

245

   

0.01

   

Total non-interest expense adjustments

40,971

   

31,444

   

0.57

   

47,019

   

33,980

   

0.68

   

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

   

6,572

   

0.12

   

   

   

   

Income tax expense (benefit) - other

   

173

   

   

   

   

   

Core earnings (Non-GAAP)

359,646

   

270,294

   

4.83

   

248,695

   

158,088

   

3.13

   

Provision for loan losses (1)

26,678

   

20,275

       

36,718

   

23,867

       

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

$

386,324

   

$

290,569

       

$

285,413

   

$

181,955

       
                         

 

 

(1) Excluding preferred stock dividends, merger-related expense, and litigation expense, after-tax amounts are calculated using a tax rate of 24% in 2018 and 35% in 2017, 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

 

9/30/2018

 

6/30/2018

 

3/31/2018

 

12/31/2017

 

9/30/2017

Net interest income (GAAP)

$

259,225

   

$

256,113

   

$

232,889

   

$

235,502

   

$

216,883

 

Taxable equivalent benefit

1,502

   

1,449

   

1,464

   

2,808

   

2,580

 

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

260,727

   

257,562

   

234,353

   

238,310

   

219,463

 
                   

Non-interest income (GAAP) (3)

53,087

   

53,940

   

44,566

   

52,342

   

50,843

 

Taxable equivalent benefit

463

   

336

   

341

   

683

   

680

 

Non-interest income (TE) (Non-GAAP) (1) (3)

53,550

   

54,276

   

44,907

   

53,025

   

51,523

 

Taxable equivalent revenues (Non-GAAP) (1) (3)

314,277

   

311,838

   

279,260

   

291,335

   

270,986

 

Securities (gains) losses and other non-interest income

(1)

   

(3)

   

59

   

(35)

   

242

 

Core taxable equivalent revenues (Non-GAAP) (1) (3)

$

314,276

   

$

311,835

   

$

279,319

   

$

291,300

   

$

271,228

 
                   

Total non-interest expense (GAAP) (3)

$

169,349

   

$

196,877

   

$

188,296

   

$

182,065

   

$

200,762

 

Less: Intangible amortization expense

5,382

   

6,111

   

5,102

   

4,642

   

4,527

 

Tangible non-interest expense (Non-GAAP) (2) (3)

163,967

   

190,766

   

183,194

   

177,423

   

196,235

 

Less: Merger-related expense

973

   

14,333

   

16,227

   

11,373

   

28,478

 

Compensation-related expense

1,104

   

1,781

   

1,221

   

1,457

   

1,092

 

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

3,286

   

5,413

   

2,074

   

3,177

   

3,661

 

Gain on early termination of loss share agreements

(2,708)

   

   

   

   

 

Litigation expense

   

   

   

   

5,692

 

Other non-core non-interest expense

(1,955)

   

(95)

   

(683)

   

467

   

377

 

Core tangible non-interest expense (Non-GAAP) (2) (3)

$

163,267

   

$

169,334

   

$

164,355

   

$

160,949

   

$

156,935

 
                   

Return on average assets (GAAP)

1.34

%

 

1.01

%

 

0.92

%

 

0.15

%

 

0.45

%

Effect of non-core revenues and expenses

0.01

   

0.31

   

0.21

   

0.88

   

0.42

 

Core return on average assets (Non-GAAP)

1.35

%

 

1.32

%

 

1.13

%

 

1.03

%

 

0.87

%

                   

Efficiency ratio (GAAP) (3)

54.2

%

 

63.5

%

 

67.9

%

 

63.3

%

 

75.0

%

Effect of tax benefit related to tax-exempt income (3)

(0.3)

   

(0.4)

   

(0.5)

   

(0.8)

   

(1.0)

 

Efficiency ratio (TE) (Non-GAAP) (1) (3)

53.9

%

 

63.1

%

 

67.4

%

 

62.5

%

 

74.0

%

Effect of amortization of intangibles

(1.7)

   

(1.9)

   

(1.8)

   

(1.6)

   

(1.7)

 

Effect of non-core items

(0.2)

   

(6.9)

   

(6.8)

   

(5.6)

   

(14.4)

 

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

52.0

%

 

54.3

%

 

58.8

%

 

55.3

%

 

57.9

%

                   

Return on average common equity (GAAP)

10.21

%

 

7.87

%

 

6.79

%

 

1.02

%

 

2.92

%

Effect of non-core revenues and expenses

0.06

   

2.43

   

1.66

   

6.90

   

3.07

 

Core return on average common equity (Non-GAAP)

10.27

%

 

10.30

%

 

8.45

%

 

7.92

%

 

5.99

%

Effect of intangibles (2)

6.07

   

6.40

   

5.38

   

4.81

   

2.96

 

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

16.34

%

 

16.70

%

 

13.83

%

 

12.73

%

 

8.95

%

                   

Total shareholders' equity (GAAP)

$

3,942,361

   

$

3,913,409

   

$

3,900,907

   

$

3,696,791

   

$

3,726,774

 

Less:  Goodwill and other intangibles

1,305,915

   

1,314,165

   

1,332,672

   

1,271,807

   

1,276,241

 

           Preferred stock

132,097

   

132,097

   

132,097

   

132,097

   

132,097

 

Tangible common equity (Non-GAAP) (2)

$

2,504,349

   

$

2,467,147

   

$

2,436,138

   

$

2,292,887

   

$

2,318,436

 
                   

Total assets (GAAP)

$

30,118,387

   

$

30,126,162

   

$

29,472,637

   

$

27,904,129

   

$

27,976,635

 

Less:  Goodwill and other intangibles

1,305,915

   

1,314,165

   

1,332,672

   

1,271,807

   

1,276,241

 

Tangible assets (Non-GAAP) (2)

$

28,812,472

   

$

28,811,997

   

$

28,139,965

   

$

26,632,322

   

$

26,700,394

 

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

8.69

%

 

8.56

%

 

8.66

%

 

8.61

%

 

8.68

%

 

 

 

(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017.

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

(3) Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. On average, the adoption resulted in a reduction of non-interest income and non-interest expense of approximately $2.3 million on a quarterly basis, and had no impact on net income.

 

 

(PRNewsfoto/IBERIABANK Corporation)

 

 

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