IBERIABANK Corporation Reports First Quarter Results

LAFAYETTE, La., April 25, 2019 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 132-year-old IBERIABANK (www.iberiabank.com), reported financial results for the first quarter ended March 31, 2019. For the quarter, the Company reported net income available to common shareholders of $96.5 million, or $1.75 diluted earnings per common share ("EPS"). On a non-GAAP basis, EPS excluding non-core revenues and non-core expenses ("Core EPS") in the first quarter of 2019 was $1.72 per common share, compared to $1.37 in the year-ago period, an increase of 26% (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 are pleased to report another quarter of solid earnings and a very good start to 2019. Our results for the quarter reflect outstanding growth in loans, improvement in fee income, and continued reduction of non-interest expense. We had a lower net interest margin than we anticipated, which I expect to improve in future quarters. We believe the foundation laid in 2018 and in the first quarter sets us up well to deliver strong results in 2019."

Highlights for the first quarter of 2019 and at March 31, 2019:


For the three months ended


GAAP


Non-GAAP Core


1Q19

4Q18


1Q19

4Q18

Earnings Per Common Share

$

1.75


$

2.32



$

1.72


$

1.86


Return on Average Assets

1.32

%

1.70

%


1.29

%

1.37

%

Return on Average Common Equity

9.85

%

13.38

%


9.66

%

10.75

%

Return on Average Tangible Common Equity

N/A


N/A



15.03

%

16.98

%

Efficiency Ratio

52.4

%

63.5

%


53.2

%

52.6

%

Tangible Efficiency Ratio (TE)

N/A


N/A



51.3

%

50.7

%

 

  • Strong 1Q19 for both GAAP and Core EPS, improving 59% and 26%, respectively on a year-over-year basis, as a result of excellent loan growth, non-interest income, and continued expense management.
  • Total loan growth of $448.5 million, or 8% annualized. Loan growth was driven by strong originations and loan prepayments slowing.
  • The Company's reported and cash net interest margins decreased 22 and 10 basis points on a linked quarter basis, to 3.59% and 3.42%, respectively. The decline in margin was primarily driven by lower recoveries as expected and higher cost of funding. Funding costs increased as the Company realized seasonal declines in lower cost deposits and strong loan growth primarily funded with wholesale funding sources.
  • Strong growth in non-interest income influenced by the current yield curve.
    • Mortgage income increased $1.5 million, or 14% on a linked quarter basis and 23% as compared to 1Q18.
    • The Company realized record swap income of $4.2 million, up 124% on a linked quarter basis.
    • The linked quarter increase of $51.5 million was primarily driven by $49.8 million in losses on sales of available securities that occurred during 4Q18.
  • Continued focus on non-interest expense which decreased $10.2 million, or 6% on a linked quarter basis. Core non-interest expense declined $5.1 million, or 3%, from 4Q18.
    • Year-over-year reduced FTEs by 342, or almost 10%, including employees from the Gibraltar acquisition.
    • Produced the lowest quarterly level of non-interest expense to average assets over the past 15 years.
    • Continued improvement in operating leverage.
  • Credit metrics remained strong and stable. The provision expense rose slightly from the prior quarter to provide adequate reserve coverage of strong loan growth. We see no signs of deterioration in the portfolio.
  • During 1Q19, the Company repurchased 387,921 common shares at a weighted average price of $77.19 per common share.
  • On March 19, 2019, the Company announced a first quarter cash dividend equal to $0.43 per common share, payable on April 26, 2019. This equated to a 5% increase to the 4Q18 dividend.

Special Items

  • On April 4, 2019, the Company issued and sold 4.0 million depositary shares, each representing 1/400th interest in a share of non-cumulative perpetual preferred stock. The Series D preferred stock has an initial coupon equal to 6.100% for a period of five years, and thereafter floats at a rate of LIBOR plus 385.9 basis points. The Company raised approximately $100.0 million in gross proceeds from the transaction. Proceeds from the transaction are currently expected to be used for repurchases of common stock. This re-stacking of capital is expected to provide a few incremental pennies of EPS and enhance the Company's ROTCE by approximately 50 basis points in 2020, based on IBKC's current stock price. The impact of this offering will be immaterial on 2019 earnings.

 

Table A - Summary Financial Results

(Dollars in thousands, except per share data)













For the Three Months Ended


3/31/2019



12/31/2018


% Change


3/31/2018


% Change

GAAP BASIS:











Income available to common shareholders

$

96,533




$

129,090



(25.2)



$

60,023



60.8


Earnings per common share - diluted

1.75




2.32



(24.6)



1.10



59.1













Average loans and leases, net of unearned income

$

22,599,686




$

22,364,188



1.1



$

20,181,390



12.0


Average total deposits

23,678,400




23,484,576



0.8



21,777,634



8.7


Net interest margin (TE) (1)

3.59


%


3.81


%



3.67


%













Total revenues

$

302,993




$

265,990



13.9



$

277,455



9.2


Total non-interest expense

158,753




168,989



(6.1)



188,071



(15.6)


Efficiency ratio

52.4


%


63.5


%



67.8


%


Return on average assets

1.32




1.70





0.92




Return on average common equity

9.85




13.38





6.79















NON-GAAP BASIS (2):











Core revenues

$

302,993




$

316,249



(4.2)



$

277,514



9.2


Core non-interest expense

161,239




166,379



(3.1)



169,232



(4.7)


Core earnings per common share - diluted

1.72




1.86



(7.5)



1.37



25.5


Core tangible efficiency ratio (TE) (1) (3)

51.3


%


50.7


%



58.8


%


Core return on average assets

1.29




1.37





1.13




Core return on average common equity

9.66




10.75





8.45




Core return on average tangible common equity

15.03




16.98





13.83




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

3.42




3.52





3.42
















(1)

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

(2)

See Table 7 and Table 8 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.

Operating Results

Net interest income decreased $14.5 million, or 5%, on a linked quarter basis. Average loans increased $235.5 million, or 4% annualized, while the associated taxable-equivalent yield decreased 15 basis points. The yield on total earning assets was 6 basis points lower at 4.68% compared to 4.74% in the prior quarter. The decline in loan yield was primarily driven by lower recoveries in the acquired loan portfolio.

Average interest-bearing deposits increased $568.6 million, or 14% annualized, and the cost of interest-bearing deposits rose 17 basis points to 1.40% on a linked quarter basis. Total average interest-bearing liabilities increased by $766.3 million, or 16% annualized, and the cost of interest-bearing liabilities rose 19 basis points to 1.53%. The total cost of funding in the first quarter of 2019 was 1.17%, compared to 1.00% in the prior quarter. The increase in cost of funds was primarily due to an unfavorable funding balance mix shift from lower cost deposits to wholesale borrowings, an upward repricing of remaining deposits, promotional activity in customer time deposits, and brokered wholesale CD issuances. The lower loan yields, along with the increase in cost of funds, resulted in a decrease in the reported and cash net interest margins of 22 and 10 basis points to 3.59% and 3.42%, respectively.

The provision for credit losses totaled $13.8 million compared to $13.1 million in the prior quarter. Asset quality measures remained strong and stable. Net charge-offs to average loans on an annualized basis were 0.13% compared to 0.14% in the prior quarter.  Non-performing assets to total assets were 0.58% compared to 0.55% in the prior quarter. The allowance for loan and lease losses to total loans and leases remained unchanged at 0.62% and covered 94% of non-performing loans.

Non-interest income increased $51.5 million, primarily driven by $49.8 million in losses realized on sales of available-for-sale securities during the prior quarter. On a core basis, non-interest income increased $1.3 million, or 2%, driven by higher customer swap commissions of $2.3 million and higher mortgage income of $1.0 million. These increases were partially offset primarily by decreases of $0.8 million in title revenue and $0.6 million in service charges on deposit accounts.

Non-interest expense decreased $10.2 million, or 6%, compared to the linked quarter, primarily driven by a $4.2 million decrease in professional service expenses, a $3.3 million decrease in salaries and employee benefits expenses, and a $1.9 million decrease in credit and other loan related expenses. Non-core expense items resulted in a $2.5 million reduction in GAAP non-interest expense, primarily from interest related to tax refunds received. Refer to Tables 7 and 8 for GAAP to Non-GAAP reconciliations.

Income tax expense increased $76.5 million to  $30.3 million when compared to the prior quarter. This increase was primarily attributable to the $65.3 million, non-core, permanent net tax benefit that was recorded in the fourth quarter of 2018 which resulted in a $46.1 million income tax benefit.

On a linked quarter basis, the efficiency ratio improved to 52.4% from 63.5%, primarily due to a decrease in non-interest expense, while the non-GAAP core tangible efficiency ratio was relatively unchanged at 51.3% compared to 50.7%. First quarter operating results reflect a continued focus on expense discipline and revenue enhancement efforts. 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



3/31/2019


12/31/2018


% Change


3/31/2018


% Change

PERIOD-END BALANCES:














Total loans and leases, net of unearned income

$

22,968,295




$

22,519,815




2.0



$

21,706,090




5.8



Total deposits

24,092,062




23,763,431




1.4



22,971,192




4.9
















ASSET QUALITY RATIOS:














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

0.20

%



0.25

%





0.36

%





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

0.02




0.01






0.04






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

0.58




0.55






0.64






Classified assets to total assets (3)

1.01




0.98






1.49



















CAPITAL RATIOS:














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

9.01

%



8.84

%





8.66

%





Tier 1 leverage ratio (6)

9.67




9.63






9.97






Total risk-based capital ratio (6)

12.33




12.33






12.48



















PER COMMON SHARE DATA:














Book value

$

73.50




$

71.61




2.6



$

66.38




10.7



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

49.48




47.61




3.9



42.91




15.3



Closing stock price

71.71




64.28




11.6



78.00




(8.1)



Cash dividends

0.43




0.41




4.9



0.38




13.2
















(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 4 for further detail.

(3)

Classified assets include commercial loans rated substandard or worse, non-performing mortgage and consumer loans, and OREO and foreclosed property and include acquired impaired loans accounted for under ASC 310-30. Classified assets were $315 million, $302 million and $439 million at March 31, 2019, December 31, 2018, and March 31, 2018, respectively.

(4)

See Table 7 and Table 8 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 March 31, 2019 are preliminary.

Loans and Other Assets

Total loans increased $448.5 million, or 8% annualized, to $23.0 billion at March 31, 2019. Period-end loan growth during the first quarter of 2019 was strongest in the Energy Group (primarily reserve-based lending), the Corporate Asset Finance Group (equipment financing business), and the Atlanta, South Florida Commercial, 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


3/31/2019


12/31/2018


3/31/2018


$

%


Annualized


$

%


3/31/2019

12/31/2018

Legacy loans:

















Commercial loans and leases

$

13,047,438



$

12,396,515


$

11,094,464


650,923


5.3



21.3

%


1,952,974


17.6



73.8

%

73.2

%

Residential mortgage loans

2,172,421



2,023,760


1,280,580


148,661


7.3



29.8

%


891,841


69.6



12.3

%

11.9

%

Consumer and other loans

2,463,370



2,529,705


2,538,878


(66,335)


(2.6)



(10.6)

%


(75,508)


(3.0)



13.9

%

14.9

%

Total legacy loans

17,683,229



16,949,980


14,913,922


733,249


4.3



17.5

%


2,769,307


18.6



100.0

%

100.0

%


















Acquired loans:

















Balance at beginning of period

5,569,835



5,992,144


5,595,030


(422,309)


(7.0)





(25,195)


(0.5)





Loans acquired during the period




1,465,319







(1,465,319)


(100.0)





Net paydown activity

(284,769)



(422,309)


(268,181)


137,540


(32.6)





(16,588)


6.2





Total acquired loans

5,285,066



5,569,835


6,792,168


(284,769)


(5.1)





(1,507,102)


(22.2)





Total loans

$

22,968,295



$

22,519,815


$

21,706,090


448,480


2.0





1,262,205


5.8





On an average balance and linked quarter basis, the investment portfolio increased $240.6 million, or 20% annualized, to $5.0 billion, mainly due to purchases of available-for-sale securities and favorable fair value adjustments. On a period-end basis, investment securities were $5.1 billion, or 16% of total assets. Approximately 96% of the investment portfolio is in available-for-sale securities, which experience unrealized losses as interest rates rise. The investment portfolio had an effective duration of 3.0 years at March 31, 2019, down from 3.4 years at December 31, 2018, and a $6.0 million unrealized loss at March 31, 2019, down from a $62.9 million loss at December 31, 2018. The average yield on investment securities increased 29 basis points to 2.90% in the first quarter of 2019. The investment portfolio primarily consists of government agency securities. Municipal securities comprised 7% of total investments at March 31, 2019.

Deposits and Funding

Total deposits increased $328.6 million, or 6% annualized, to $24.1 billion at March 31, 2019. First quarter deposit growth included a $270 million increase in brokered and reciprocal deposits. Deposit growth during the first quarter of 2019 was strongest in the Miami-Dade, Southwest Louisiana, and Palm Beach/Broward markets.

Table D - Period-End Deposits

(Dollars in thousands)








Linked Qtr Change


Year/Year Change


Mix


3/31/2019


12/31/2018


3/31/2018


$

%

Annualized


$

%


3/31/2019

12/31/2018

Non-interest-bearing

$

6,448,613



$

6,542,490


$

6,595,495


(93,877)


(1.4)


(5.8)

%


(146,882)


(2.2)



26.8

%

27.5

%

NOW accounts

4,452,966



4,514,113


4,500,181


(61,147)


(1.4)


(5.5)

%


(47,215)


(1.0)



18.5

%

19.0

%

Money market accounts

8,348,509



8,237,291


8,271,969


111,218


1.4


5.5

%


76,540


0.9



34.6

%

34.7

%

Savings accounts

770,754



828,914


874,741


(58,160)


(7.0)


(28.5)

%


(103,987)


(11.9)



3.2

%

3.5

%

Time deposits

4,071,220



3,640,623


2,728,806


430,597


11.8


48.0

%


1,342,414


49.2



16.9

%

15.3

%

Total deposits

$

24,092,062



$

23,763,431


$

22,971,192


328,631


1.4


5.6

%


1,120,870


4.9



100.0

%

100.0

%

Asset Quality

Credit quality remained strong and stable. Non-performing assets to total assets were 0.58% at March 31, 2019, compared to 0.55% in the prior quarter. Loans 30-89 days past due and still accruing decreased $12.0 million, or 21%, compared to the prior quarter and represented 0.20% of total loans and leases, compared to 0.25% in the prior quarter. As a percentage of average loans and leases, annualized net charge-offs were 0.13%, down one basis point compared to the prior quarter.

The allowance for loan and lease losses was $143.0 million, up $2.4 million compared to the prior quarter. As of March 31, 2019, the allowance for loan and lease losses was 0.62% of total loans and leases, unchanged compared to December 31, 2018. The allowance for loan and lease losses covered non-performing loans by 94% compared to 101% in the prior quarter.

Refer to Table 4 - Loans and Asset Quality Data for further information.

Capital Position

At March 31, 2019, the non-GAAP tangible common equity ratio was 9.01%, up 17 basis points compared to December 31, 2018, and the preliminary Tier 1 leverage ratio was 9.67%, up 4 basis points compared to December 31, 2018. The preliminary calculation of the total risk-based capital ratio at March 31, 2019, was 12.33%, flat compared to December 31, 2018.

At March 31, 2019, book value per common share was $73.50, up $1.89 per share, compared to December 31, 2018. Tangible book value per common share was $49.48, up $1.87 per share, compared to December 31, 2018. Based on the closing stock price of the Company's common stock of $77.14 per share on April 24, 2019, this price equated to 1.05 times March 31, 2019 book value per common share and 1.56 times March 31, 2019 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 March 19, 2019, the Company declared a quarterly cash dividend of $0.43 per common share, a 5% increase to the common dividend declared on January 25, 2019. This dividend is payable on April 26, 2019, to shareholders of record as of March 29, 2019.

Preferred Stock. On April 11, 2019, the Company declared a quarterly cash dividend of $0.4125 per depositary share of Series C Preferred Stock that is payable on May 1, 2019 to shareholders of record as of April 21, 2019.

On April 4, 2019, the Company sold 4.0 million depositary shares, each representing 1/400th interest in a share of non-cumulative perpetual preferred stock. The Series D preferred stock has an initial coupon equal to 6.100% for a period of five years, and thereafter floats at a rate of LIBOR plus 385.9 basis points. The Company raised approximately $100.0 million in gross proceeds from the transaction.

Common Stock Repurchase Program. On November 5, 2018, the Board of Directors authorized a new repurchase plan of up to 2,765,000 shares of the Company's common stock. This repurchase authorization equated to approximately 5% 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 currently anticipates the share repurchase program will extend over a two-year time frame, or earlier if the shares have been repurchased. During the first quarter of 2019, the Company repurchased 387,921 common shares, at a weighted average price of $77.19 per common share.  At March 31, 2019, the Company had approximately 1,877,079 remaining shares that may be repurchased under the current Board-approved plan.

2019 Financial Guidance

2019 Guidance

Average Earning Assets

$28.6B ~ $28.9B

Consolidated Loan Growth

5% ~ 7%

Consolidated Deposit Growth

5% ~ 7%

Provision Expense

$45MM ~ $50MM

Non-Interest Income (Core Basis)

$215MM ~ $225MM

Non-Interest Expense (Core Basis)

$675MM ~ $690MM

Net Interest Margin

3.55% ~ 3.65%

Tax Rate

23.0% ~ 24.0%

Preferred Dividend

$17.0MM ~ $18.0MM

Share Repurchase Activity

$230MM ~ $240MM

Credit Quality

Stable




 

  • Updated guidance includes no interest rate increases in 2019 and interest rate curve as of March 31, 2019.
  • Preferred Dividend range increases to reflect new Series D preferred dividends.
  • We expect to buy common shares with the proceeds of our recent preferred stock offering, which is included in the guide.

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, Series C Preferred Stock, and Series D Preferred Stock also trade on the NASDAQ Global Select Market under the symbols "IBKCP", "IBKCO", and "IBKCN", respectively. The Company's common stock market capitalization was approximately $4.2 billion, based on the NASDAQ Global Select Market closing stock price on April 24, 2019.

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 Thursday, April 25, 2019, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 6428111. A replay of the call will be available until midnight Central Time on May 2, 2019, by dialing 1-877-344-7529. The confirmation code for the replay is 10128769. 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, 2018, and in other documents subsequently filed by the Company with the Securities and Exchange Commission, available at the SEC's website, www.sec.gov, and the Company's website, 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:

3/31/2019


12/31/2018


% Change


3/31/2018


% Change


Net interest income

$

250,484




$

265,021




(5.5)



$

232,889




7.6



Net interest income (TE) (1)

251,833




266,448




(5.5)



234,353




7.5



Total revenues

302,993




265,990




13.9



277,455




9.2



Provision for credit losses

13,763




13,094




5.1



8,211




67.6



Non-interest expense

158,753




168,989




(6.1)



188,071




(15.6)



Net income available to common shareholders

96,533




129,090




(25.2)



60,023




60.8
















PER COMMON SHARE DATA:













Earnings available to common shareholders - basic

$

1.76




$

2.33




(24.5)



$

1.11




58.6



Earnings available to common shareholders - diluted

1.75




2.32




(24.6)



1.10




59.1



Core earnings (Non-GAAP) (2)

1.72




1.86




(7.5)



1.37




25.5



Book value

73.50




71.61




2.6



66.38




10.7



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

49.48




47.61




3.9



42.91




15.3



Closing stock price

71.71




64.28




11.6



78.00




(8.1)



Cash dividends

0.43




0.41




4.9



0.38




13.2
















KEY RATIOS AND OTHER DATA (6):










Net interest margin (TE) (1)

3.59

%



3.81

%





3.67

%





Efficiency ratio

52.4




63.5






67.8






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

51.3




50.7






58.8






Return on average assets

1.32




1.70






0.92






Return on average common equity

9.85




13.38






6.79






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

15.03




16.98






13.83






Effective tax rate

23.3




(55.0)






21.6






Full-time equivalent employees

3,384




3,403






3,726



















CAPITAL RATIOS:













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

9.01

%



8.84

%





8.66

%





Tangible common equity to risk-weighted assets (3)

10.60




10.43






10.27






Tier 1 leverage ratio (4)

9.67




9.63






9.97






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

10.73




10.72






10.77






Tier 1 capital ratio (4)

11.25




11.25






11.32






Total risk-based capital ratio (4)

12.33




12.33






12.48






Common stock dividend payout ratio

24.3




17.8






36.0






Classified assets to Tier 1 capital (7)

11.2




10.7






16.3



















ASSET QUALITY RATIOS:










Non-performing assets to total assets (5)

0.58

%



0.55

%





0.64

%





ALLL to total loans and leases

0.62




0.62






0.67






Net charge-offs to average loans (annualized)

0.13




0.14






0.09






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

0.79




0.75






0.87



















(1)

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

(2)

See Table 7 and Table 8 for GAAP to Non-GAAP reconciliations.

(3)

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

(4)

Regulatory capital ratios as of March 31, 2019 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, non-performing mortgage and consumer loans, and OREO and foreclosed property and include acquired impaired loans accounted for under ASC 310-30.

 

Table 2 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except per share data)


















For the Three Months Ended






Linked Qtr Change








Year/Year Change


3/31/2019


12/31/2018


$

%


9/30/2018


6/30/2018


3/31/2018


$

%

Interest income

$

326,084



$

330,196



(4,112)


(1.2)



$

317,067



$

303,823



$

270,543



55,541


20.5


Interest expense

75,600



65,175



10,425


16.0



57,842



47,710



37,654



37,946


100.8


Net interest income

250,484



265,021



(14,537)


(5.5)



259,225



256,113



232,889



17,595


7.6


Provision for credit losses

13,763



13,094



669


5.1



11,384



7,696



8,211



5,552


67.6


Net interest income after provision for credit losses

236,721



251,927



(15,206)


(6.0)



247,841



248,417



224,678



12,043


5.4


Mortgage income

11,849



10,379



1,470


14.2



12,729



13,721



9,595



2,254


23.5


Service charges on deposit accounts

12,810



13,425



(615)


(4.6)



13,520



12,950



12,908



(98)


(0.8)


Title revenue

5,225



5,996



(771)


(12.9)



6,280



6,846



5,027



198


3.9


Broker commissions

1,953



1,951



2


0.1



2,627



2,396



2,221



(268)


(12.1)


ATM/debit card fee income

2,582



2,267



315


13.9



2,470



2,925



2,633



(51)


(1.9)


Income from bank owned life insurance

1,797



2,023



(226)


(11.2)



1,744



1,261



1,282



515


40.2


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



(49,844)



49,844


100.0





3



(59)



59


100.0


Trust department income

4,167



4,319



(152)


(3.5)



3,993



4,243



3,426



741


21.6


Other non-interest income

12,126



10,453



1,673


16.0



9,724



9,595



7,533



4,593


61.0


Total non-interest income

52,509



969



51,540


5,318.9



53,087



53,940



44,566



7,943


17.8


Salaries and employee benefits

98,296



101,551



(3,255)


(3.2)



101,159



107,445



104,586



(6,290)


(6.0)


Occupancy and equipment

18,564



18,379



185


1.0



18,889



19,931



20,047



(1,483)


(7.4)


Amortization of acquisition intangibles

5,009



5,083



(74)


(1.5)



5,382



6,111



5,102



(93)


(1.8)


Computer services expense

9,157



8,942



215


2.4



9,036



9,309



12,393



(3,236)


(26.1)


Professional services

4,450



8,628



(4,178)


(48.4)



5,519



7,160



7,391



(2,941)


(39.8)


Credit and other loan related expense

2,859



4,776



(1,917)


(40.1)



4,830



5,089



4,393



(1,534)


(34.9)


Other non-interest expense

20,418



21,630



(1,212)


(5.6)



24,247



41,731



34,159



(13,741)


(40.2)


Total non-interest expense

158,753



168,989



(10,236)


(6.1)



169,062



196,776



188,071



(29,318)


(15.6)


Income before income taxes

130,477



83,907



46,570


55.5



131,866



105,581



81,173



49,304


60.7


Income tax expense (benefit)

30,346



(46,132)



76,478


165.8



30,401



30,457



17,552



12,794


72.9


Net income

100,131



130,039



(29,908)


(23.0)



101,465



75,124



63,621



36,510


57.4


Less: Preferred stock dividends

3,598



949



2,649


279.1



3,599



949



3,598





Net income available to common shareholders

$

96,533



$

129,090



(32,557)


(25.2)



$

97,866



$

74,175



$

60,023



36,510


60.8


















Income available to common shareholders - basic

$

96,533



$

129,090



(32,557)


(25.2)



$

97,866



$

74,175



$

60,023



36,510


60.8


Less: Earnings allocated to unvested restricted stock

933



1,214



(281)


(23.1)



908



767



639



294


46.0


Earnings allocated to common shareholders

$

95,600



$

127,876



(32,276)


(25.2)



$

96,958



$

73,408



$

59,384



36,216


61.0


















Earnings per common share - basic

$

1.76



$

2.33



(0.57)


(24.5)



$

1.74



$

1.31



$

1.11



0.65


58.6


















Earnings per common share - diluted

1.75



2.32



(0.57)


(24.6)



1.73



1.30



1.10



0.65


59.1


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

(0.03)



(0.46)



0.43


93.5



0.01



0.41



0.27



(0.30)


(111.1)


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

$

1.72



$

1.86



(0.14)


(7.5)



$

1.74



$

1.71



$

1.37



0.35


25.5


















NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
















Weighted average common shares outstanding - basic

54,177



54,892



(715)


(1.3)



55,571



55,931



53,616



561


1.0


Weighted average common shares outstanding - diluted

54,539



55,215



(676)


(1.2)



55,945



56,287



53,967



572


1.1


Book value shares (period end)

54,551



54,796



(245)


(0.4)



56,007



56,390



56,779



(2,228)


(3.9)



















(1)

See Table 7 and Table 8 for GAAP to Non-GAAP reconciliations.

 

TABLE 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)
















PERIOD-END BALANCES




Linked Qtr Change








Year/Year Change

ASSETS

3/31/2019


12/31/2018


$


%


9/30/2018


6/30/2018


3/31/2018


$


%

Cash and due from banks

$

280,680



$

294,186



(13,506)



(4.6)



$

291,083



$

299,268



$

253,527



27,153



10.7


Interest-bearing deposits in other banks

391,217



396,267



(5,050)



(1.3)



184,852



428,120



310,565



80,652



26.0


Total cash and cash equivalents

671,897



690,453



(18,556)



(2.7)



475,935



727,388



564,092



107,805



19.1


Investment securities available for sale

4,873,778



4,783,579



90,199



1.9



4,634,124



4,650,915



4,542,486



331,292



7.3


Investment securities held to maturity

198,958



207,446



(8,488)



(4.1)



213,561



221,030



224,241



(25,283)



(11.3)


Total investment securities

5,072,736



4,991,025



81,711



1.6



4,847,685



4,871,945



4,766,727



306,009



6.4


Mortgage loans held for sale

128,451



107,734



20,717



19.2



42,976



78,843



110,348



18,103



16.4


Loans and leases, net of unearned income

22,968,295



22,519,815



448,480



2.0



22,343,906



22,075,783



21,706,090



1,262,205



5.8


Allowance for loan and lease losses

(142,966)



(140,571)



(2,395)



1.7



(136,950)



(136,576)



(144,527)



1,561



(1.1)


Loans and leases, net

22,825,329



22,379,244



446,085



2.0



22,206,956



21,939,207



21,561,563



1,263,766



5.9


Premises and equipment, net

297,342



300,507



(3,165)



(1.1)



304,605



326,213



329,454



(32,112)



(9.7)


Goodwill and other intangible assets

1,319,992



1,324,269



(4,277)



(0.3)



1,313,478



1,320,664



1,338,573



(18,581)



(1.4)


Other assets

944,442



1,039,783



(95,341)



(9.2)



926,752



861,902



801,880



142,562



17.8


Total assets

$

31,260,189



$

30,833,015



427,174



1.4



$

30,118,387



$

30,126,162



$

29,472,637



1,787,552



6.1




















LIABILITIES AND SHAREHOLDERS' EQUITY













Non-interest-bearing deposits

$

6,448,613



$

6,542,490



(93,877)



(1.4)



$

6,544,926



$

6,814,441



$

6,595,495



(146,882)



(2.2)


NOW accounts

4,452,966



4,514,113



(61,147)



(1.4)



4,247,533



4,453,152



4,500,181



(47,215)



(1.0)


Savings and money market accounts

9,119,263



9,066,205



53,058



0.6



9,159,036



9,318,331



9,146,710



(27,447)



(0.3)


Time deposits

4,071,220



3,640,623



430,597



11.8



3,241,951



2,844,534



2,728,806



1,342,414



49.2


Total deposits

24,092,062



23,763,431



328,631



1.4



23,193,446



23,430,458



22,971,192



1,120,870



4.9


Short-term borrowings

845,000



1,167,000



(322,000)



(27.6)



790,000



595,000



375,000



470,000



125.3


Securities sold under agreements to repurchase

261,131



315,882



(54,751)



(17.3)



452,719



459,213



525,496



(264,365)



(50.3)


Trust preferred securities

120,110



120,110







120,110



120,110



120,110






Other long-term debt

1,355,345



1,046,041



309,304



29.6



1,346,700



1,318,504



1,329,192



26,153



2.0


Other liabilities

444,710



364,274



80,436



22.1



273,051



289,468



250,740



193,970



77.4


Total liabilities

27,118,358



26,776,738



341,620



1.3



26,176,026



26,212,753



25,571,730



1,546,628



6.0


Total shareholders' equity

4,141,831



4,056,277



85,554



2.1



3,942,361



3,913,409



3,900,907



240,924



6.2


Total liabilities and shareholders' equity

$

31,260,189



$

30,833,015



427,174



1.4



$

30,118,387



$

30,126,162



$

29,472,637



1,787,552



6.1


 

TABLE 3 Continued - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)



















AVERAGE BALANCES


Linked Qtr Change








Year/Year Change

ASSETS

3/31/2019


12/31/2018


$


%


9/30/2018


6/30/2018


3/31/2018


$


%

Cash and due from banks

$

291,659



$

281,509



10,150



3.6



$

279,918



$

296,907



$

308,319



(16,660)



(5.4)


Interest-bearing deposits in other banks

332,638



385,619



(52,981)



(13.7)



259,455



392,906



486,298



(153,660)



(31.6)


Total cash and cash equivalents

624,297



667,128



(42,831)



(6.4)



539,373



689,813



794,617



(170,320)



(21.4)


Investment securities available for sale

4,816,855



4,567,564



249,291



5.5



4,673,454



4,629,177



4,544,836



272,019



6.0


Investment securities held to maturity

202,601



211,333



(8,732)



(4.1)



216,419



222,764



226,229



(23,628)



(10.4)


Total investment securities

5,019,456



4,778,897



240,559



5.0



4,889,873



4,851,941



4,771,065



248,391



5.2


Mortgage loans held for sale

95,588



63,033



32,555



51.6



87,823



72,917



109,027



(13,439)



(12.3)


Loans and leases, net of unearned income

22,599,686



22,364,188



235,498



1.1



22,162,373



21,830,720



20,181,390



2,418,296



12.0


Allowance for loan and lease losses

(140,915)



(138,675)



(2,240)



1.6



(139,075)



(145,565)



(144,295)



3,380



(2.3)


Loans and leases, net

22,458,771



22,225,513



233,258



1.0



22,023,298



21,685,155



20,037,095



2,421,676



12.1


Premises and equipment, net

299,741



302,956



(3,215)



(1.1)



315,259



327,686



331,640



(31,899)



(9.6)


Goodwill and other intangible assets

1,322,288



1,318,200



4,088



0.3



1,316,527



1,338,420



1,281,598



40,690



3.2


Other assets

1,013,359



977,740



35,619



3.6



874,078



804,920



807,177



206,182



25.5


Total assets

$

30,833,500



$

30,333,467



500,033



1.6



$

30,046,231



$

29,770,852



$

28,132,219



2,701,281



9.6




















LIABILITIES AND SHAREHOLDERS' EQUITY













Non-interest-bearing deposits

$

6,271,313



$

6,646,071



(374,758)



(5.6)



$

6,684,343



$

6,795,878



$

6,278,507



(7,194)



(0.1)


NOW accounts

4,458,634



4,212,304



246,330



5.8



4,296,392



4,494,064



4,363,557



95,077



2.2


Savings and money market accounts

9,089,099



9,169,184



(80,085)



(0.9)



9,237,614



9,146,302



8,664,085



425,014



4.9


Time deposits

3,859,354



3,457,017



402,337



11.6



3,023,180



2,719,627



2,471,485



1,387,869



56.2


Total deposits

23,678,400



23,484,576



193,824



0.8



23,241,529



23,155,871



21,777,634



1,900,766



8.7


Short-term borrowings

859,576



602,593



256,983



42.6



820,087



609,965



506,056



353,520



69.9


Securities sold under agreements to repurchase

291,643



386,563



(94,920)



(24.6)



376,078



427,508



477,862



(186,219)



(39.0)


Trust preferred securities

120,110



120,110







120,110



120,110



120,110






Other long-term debt

1,343,752



1,308,086



35,666



2.7



1,260,900



1,261,515



1,257,213



86,539



6.9


Other liabilities

434,516



470,501



(35,985)



(7.6)



292,445



281,820



275,869



158,647



57.5


Total liabilities

26,727,997



26,372,429



355,568



1.3



26,111,149



25,856,789



24,414,744



2,313,253



9.5


Total shareholders' equity

4,105,503



3,961,038



144,465



3.6



3,935,082



3,914,063



3,717,475



388,028



10.4


Total liabilities and shareholders' equity

$

30,833,500



$

30,333,467



500,033



1.6



$

30,046,231



$

29,770,852



$

28,132,219



2,701,281



9.6


 

Table 4 - IBERIABANK CORPORATION

LOANS AND ASSET QUALITY DATA

(Dollars in thousands)














Linked Qtr Change








Year/Year Change

LOANS

3/31/2019


12/31/2018


$


%


9/30/2018


6/30/2018


3/31/2018


$


%

Commercial loans and leases:


















Real estate- construction

$

1,219,647



$

1,196,366



23,281



1.9



$

1,127,988



$

1,183,367



$

1,199,625



20,022



1.7


Real estate- owner-occupied (1)

2,408,079



2,395,822



12,257



0.5



2,458,964



2,455,685



2,449,513



(41,434)



(1.7)


Real estate- non-owner occupied

6,147,864



5,796,117



351,747



6.1



5,794,931



5,653,252



5,599,813



548,051



9.8


Commercial and industrial (6)

5,852,568



5,737,017



115,551



2.0



5,581,040



5,512,416



5,325,682



526,886



9.9


Total commercial loans and leases

15,628,158



15,125,322



502,836



3.3



14,962,923



14,804,720



14,574,633



1,053,525



7.2




















Residential mortgage loans

4,415,267



4,359,156



56,111



1.3



4,300,163



4,124,538



3,971,067



444,200



11.2




















Consumer and other loans:


















Home equity

2,220,648



2,304,694



(84,046)



(3.6)



2,350,176



2,410,617



2,421,186



(200,538)



(8.3)


Other

704,222



730,643



(26,421)



(3.6)



730,644



735,908



739,204



(34,982)



(4.7)


Total consumer and other loans

2,924,870



3,035,337



(110,467)



(3.6)



3,080,820



3,146,525



3,160,390



(235,520)



(7.5)


Total loans and leases

$

22,968,295



$

22,519,815



448,480



2.0



$

22,343,906



$

22,075,783



$

21,706,090



1,262,205



5.8















Allowance for loan and lease losses (2)

$

(142,966)



$

(140,571)



(2,395)



1.7



$

(136,950)



$

(136,576)



$

(144,527)



1,561



(1.1)


Loans and leases, net

22,825,329



22,379,244



446,085



2.0



22,206,956



21,939,207



21,561,563



1,263,766



5.9




















Reserve for unfunded commitments

(15,981)



(14,830)



(1,151)



7.8



(14,721)



(14,433)



(13,432)



(2,549)



19.0


Allowance for credit losses

(158,947)



(155,401)



(3,546)



2.3



(151,671)



(151,009)



(157,959)



(988)



0.6




















ASSET QUALITY DATA

















Non-accrual loans (3)

$

148,056



$

137,184



10,872



7.9



$

143,595



$

131,155



$

153,975



(5,919)



(3.8)


Other real estate owned and foreclosed assets

30,606



30,394



212



0.7



32,418



22,267



27,117



3,489



12.9


Accruing loans more than 90 days past due (3)

4,111



2,128



1,983



93.2



12,452



9,314



8,288



(4,177)



(50.4)


Total non-performing

assets (3)(4)

$

182,773



$

169,706



13,067



7.7



$

188,465



$

162,736



$

189,380



(6,607)



(3.5)




















Loans 30-89 days past due (3)

$

45,334



$

57,332



(11,998)



(20.9)



$

70,624



$

43,159



$

78,293



(32,959)



(42.1)




















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

0.58

%


0.55

%






0.63

%


0.54

%


0.64

%





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

0.79



0.75







0.84



0.74



0.87






ALLL to non-performing

loans (3)(5)

94.0



100.9







87.8



97.2



89.1






ALLL to non-performing

assets (3)(4)

78.2



82.8







72.7



83.9



76.3






ALLL to total loans and leases

0.62



0.62







0.61



0.62



0.67
























Quarter-to-date charge-offs

$

8,918



$

10,806



(1,888)



(17.5)



$

12,006



$

13,618



$

9,116



(198)



(2.2)


Quarter-to-date recoveries

(1,586)



(3,097)



1,511



(48.8)



(3,049)



(1,968)



(4,813)



3,227



(67.0)


Quarter-to-date net charge-offs

$

7,332



$

7,709



(377)



(4.9)



$

8,957



$

11,650



$

4,303



3,029



70.4




















Net charge-offs to average loans (annualized)

0.13

%


0.14

%






0.16

%


0.21

%


0.09

%







(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 5 - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)












For the Three Months Ended


3/31/2019


12/31/2018


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

$

15,253,655


$

194,510


5.19

%


$

14,978,169


$

196,881


5.24

%


(5)

Residential mortgage loans

4,385,634


47,829


4.36



4,345,811


53,836


4.96



(60)

Consumer and other loans

2,960,397


42,540


5.83



3,040,208


44,275


5.78



5

Total loans and leases

22,599,686


284,879


5.11



22,364,188


294,992


5.26



(15)

Mortgage loans held for sale

95,588


1,054


4.41



63,033


721


4.58



(17)

Investment securities (2)

5,052,922


36,125


2.90



4,782,844


30,559


2.61



29

Other earning assets

533,745


4,026


3.06



581,673


3,924


2.68



38

Total earning assets

28,281,941


326,084


4.68



27,791,738


330,196


4.74



(6)

Allowance for loan and lease losses

(140,915)





(138,675)






Non-earning assets

2,692,474





2,680,404






Total assets

$

30,833,500





$

30,333,467
















LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:










NOW accounts

$

4,458,634


$

11,396


1.04

%


$

4,212,304


$

9,420


0.89

%


15

Savings and money market accounts

9,089,099


28,762


1.28



9,169,184


26,062


1.13



15

Time deposits

3,859,354


20,077


2.11



3,457,017


16,666


1.91



20

Total interest-bearing deposits (3)

17,407,087


60,235


1.40



16,838,505


52,148


1.23



17

Short-term borrowings

1,151,219


5,716


2.01



989,156


4,104


1.65



36

Long-term debt

1,463,862


9,649


2.67



1,428,196


8,923


2.48



19

Total interest-bearing liabilities

20,022,168


75,600


1.53



19,255,857


65,175


1.34



19

Non-interest-bearing deposits

6,271,313





6,646,071






Non-interest-bearing liabilities

434,516





470,501






Total liabilities

26,727,997





26,372,429






Total shareholders' equity

4,105,503





3,961,038






Total liabilities and shareholders' equity

$

30,833,500





$

30,333,467
















Net interest income/Net interest spread

$

250,484


3.15

%



$

265,021


3.40

%


(25)

Taxable equivalent benefit


1,349


0.02




1,427


0.02



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


$

251,833


3.59

%



$

266,448


3.81

%


(22)


(1)

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

(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, 2019 and December 31, 2018 were 1.03% and 0.88%, respectively.

 

TABLE 5 Continued - 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


3/31/2018

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

$

14,825,572


$

191,014


5.13

%


$

14,631,985


$

178,830


4.92

%


$

14,087,635


$

164,660


4.76

%

Residential mortgage loans

4,230,471


48,145


4.55



4,041,259


47,215


4.67



3,151,775


34,494


4.38


Consumer and other loans

3,106,330


43,966


5.62



3,157,476


44,431


5.64



2,941,980


38,915


5.36


Total loans and leases

22,162,373


283,125


5.09



21,830,720


270,476


4.98



20,181,390


238,069


4.79


Mortgage loans held for sale

87,823


1,037


4.72



72,917


836


4.59



109,027


1,154


4.23


Investment securities (2)

5,016,163


29,793


2.43



4,958,769


29,325


2.42



4,843,448


28,094


2.38


Other earning assets

456,120


3,112


2.71



580,477


3,186


2.20



679,902


3,226


1.92


Total earning assets

27,722,479


317,067


4.57



27,442,883


303,823


4.46



25,813,767


270,543


4.26


Allowance for loan and lease losses

(139,075)





(145,565)





(144,295)




Non-earning assets

2,462,827





2,473,534





2,462,747




Total assets

$

30,046,231





$

29,770,852





$

28,132,219
















LIABILITIES AND SHAREHOLDERS' EQUITY











Interest-bearing liabilities:












NOW accounts

$

4,296,392


$

8,841


0.82

%


$

4,494,064


$

8,620


0.77

%


$

4,363,557


$

7,081


0.66

%

Savings and money market accounts

9,237,614


23,076


0.99



9,146,302


18,434


0.81



8,664,085


14,579


0.68


Time deposits

3,023,180


12,484


1.64



2,719,627


9,105


1.34



2,471,485


6,584


1.08


Total interest-bearing deposits (3)

16,557,186


44,401


1.06



16,359,993


36,159


0.89



15,499,127


28,244


0.74


Short-term borrowings

1,196,165


4,727


1.57



1,037,473


3,327


1.29



983,918


2,524


1.04


Long-term debt

1,381,010


8,714


2.50



1,381,625


8,224


2.39



1,377,323


6,886


2.03


Total interest-bearing liabilities

19,134,361


57,842


1.20



18,779,091


47,710


1.02



17,860,368


37,654


0.86


Non-interest-bearing deposits

6,684,343





6,795,878





6,278,507




Non-interest-bearing liabilities

292,445





281,820





275,869




Total liabilities

26,111,149





25,856,789





24,414,744




Total shareholders' equity

3,935,082





3,914,063





3,717,475




Total liabilities and shareholders' equity

$

30,046,231





$

29,770,852





$

28,132,219
















Net interest income/Net interest spread


$

259,225


3.37

%



$

256,113


3.44

%



$

232,889


3.40

%

Taxable equivalent benefit


1,461


0.02




1,449


0.02




1,464


0.02


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


$

260,686


3.74

%



$

257,562


3.76

%



$

234,353


3.67

%


(1)

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

(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, June 30, 2018, and March 31, 2018, were 0.76%, 0.63% and 0.53%, respectively.

 

Table 6 - IBERIABANK CORPORATION

LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS

(Dollars in millions)






















For the Three Months Ended


3/31/2019


12/31/2018


9/30/2018


6/30/2018


3/31/2018

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

$

213


$

17,192


5.02

%


$

209


$

16,616


4.99

%


$

193


$

15,957


4.80

%


$

179


$

15,217


4.73

%


$

166


$

14,556


4.61

%

Acquired loans

72


5,408


5.35



86


5,748


5.97



90


6,205


5.78



91


6,614


5.51



72


5,625


5.20


Total loans

$

285


$

22,600


5.10

%


$

295


$

22,364


5.24

%


$

283


$

22,162


5.08

%


$

270


$

21,831


4.97

%


$

238


$

20,181


4.77

%






















3/31/2019


12/31/2018


9/30/2018


6/30/2018


3/31/2018

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

(11)


136


(0.92)



(19)


144


(1.46)



(17)


144


(1.23)



(16)


142


(1.12)



(15)


142


(1.16)


Total loans

$

(11)


$

136


(0.22)

%


$

(19)


$

144


(0.38)

%


$

(17)


$

144


(0.35)

%


$

(16)


$

142


(0.34)

%


$

(15)


$

142


(0.32)

%






















3/31/2019


12/31/2018


9/30/2018


6/30/2018


3/31/2018

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

$

213


$

17,192


5.02

%


$

209


$

16,616


4.99

%


$

193


$

15,957


4.80

%


$

179


$

15,217


4.73

%


$

166


$

14,556


4.61

%

Acquired loans

61


5,544


4.43



67


5,892


4.51



73


6,349


4.55



75


6,756


4.39



57


5,767


4.04


Total loans

$

274


$

22,736


4.88

%


$

276


$

22,508


4.86

%


$

266


$

22,306


4.73

%


$

254


$

21,973


4.63

%


$

223


$

20,323


4.45

%

 

Table 7 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands, except per share amounts)




















For the Three Months Ended


3/31/2019


12/31/2018


9/30/2018


Pre-tax


After-tax


Per share (2)


Pre-tax


After-tax


Per share (2)


Pre-tax


After-tax


Per share (2)

Net income

$

130,477



$

100,131



$

1.82



$

83,907



$

130,039



$

2.34



$

131,866



$

101,465



$

1.79


Less: Preferred stock dividends



3,598



0.07





949



0.02





3,599



0.06


Income available to common shareholders (GAAP)

$

130,477



$

96,533



$

1.75



$

83,907



$

129,090



$

2.32



$

131,866



$

97,866



$

1.73




















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

















Loss (gain) on sale of investments







49,844



37,882



0.68



(1)



(1)




Other non-core non-interest income







415



316










Total non-interest income adjustments







50,259



38,198



0.68



(1)



(1)






















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

















Merger-related expense

(334)



(254)





(238)



(353)





973



743



0.01


Compensation-related expense

(9)



(7)





184



140





1,104



839



0.01


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

986



749



0.01



64



49





3,286



2,497



0.05


Gain on early termination of loss share agreements













(2,708)



(2,058)



(0.04)


Other non-core non-interest expense

(3,129)



(2,378)



(0.04)



2,600



1,976



0.04



(1,955)



(1,486)



(0.02)


Total non-interest expense adjustments

(2,486)



(1,890)



(0.03)



2,610



1,812



0.04



700



535



0.01


Income tax expense (benefit) - impact of the Tax Cuts and Jobs Act









(65,317)



(1.18)








Core earnings (Non-GAAP)

127,991



94,643



1.72



136,776



103,783



1.86



132,565



98,400



1.74


Provision for credit losses (1)

13,763



10,460





13,094



9,951





11,384



8,652




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

$

141,754



$

105,103





$

149,870



$

113,734





$

143,949



$

107,052



























































For the Three Months Ended








6/30/2018


3/31/2018








Pre-tax


After-tax


Per share (2)


Pre-tax


After-tax


Per share (2)







Net income

$

105,581



$

75,124



$

1.32



$

81,173



$

63,621



$

1.17








Less: Preferred stock dividends



949



0.02





3,598



0.07








Income available to common shareholders (GAAP)

$

105,581



$

74,175



$

1.30



$

81,173



$

60,023



$

1.10


























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

















(Gain) loss on sale of investments

(3)



(2)





59



44




























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

















Merger-related expense

14,333



11,012



0.20



16,227



12,517



0.23








Compensation-related expense

1,781



1,354



0.02



1,221



928



0.02








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

5,413



4,114



0.07



2,074



1,576



0.03








Other non-core non-interest expense

(95)



(72)





(683)



(520)



(0.01)








Total non-interest expense adjustments

21,432



16,408



0.29



18,839



14,501



0.27








Income tax expense - impact of the Tax Cuts and Jobs Act



6,572



0.12














Income tax expense (benefit) - other









173










Core earnings (Non-GAAP)

127,010



97,153



1.71



100,071



74,741



1.37








Provision for credit losses (1)

7,696



5,849





8,211



6,240










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

$

134,706



$

103,002





$

108,282



$

80,981











(1)

Excluding preferred stock dividends and merger-related expense, after-tax amounts are calculated using a tax rate of 24%, 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, and gains, losses, and impairment charges on long-lived assets.

 

Table 8 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)












For the Three Months Ended


3/31/2019


12/31/2018


9/30/2018


6/30/2018


3/31/2018

Net interest income (GAAP)

$

250,484



$

265,021



$

259,225



$

256,113



$

232,889


Taxable equivalent benefit

1,349



1,427



1,461



1,449



1,464


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

251,833



266,448



260,686



257,562



234,353












Non-interest income (GAAP)

52,509



969



53,087



53,940



44,566


Taxable equivalent benefit

478



539



463



336



341


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

52,987



1,508



53,550



54,276



44,907


Taxable equivalent revenues (Non-GAAP) (1)

304,820



267,956



314,236



311,838



279,260


Securities (gains) losses and other non-interest income



50,259



(1)



(3)



59


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

$

304,820



$

318,215



$

314,235



$

311,835



$

279,319












Total non-interest expense (GAAP)

$

158,753



$

168,989



$

169,062



$

196,776



$

188,071


Less: Intangible amortization expense

5,009



5,083



5,382



6,111



5,102


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

153,744



163,906



163,680



190,665



182,969


Less: Merger-related expense

(334)



(238)



973



14,333



16,227


Compensation-related expense

(9)



184



1,104



1,781



1,221


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

986



64



3,286



5,413



2,074


Gain on early termination of loss share agreements





(2,708)






Other non-core non-interest expense

(3,129)



2,600



(1,955)



(95)



(683)


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

$

156,230



$

161,296



$

162,980



$

169,233



$

164,130












Return on average assets (GAAP)

1.32

%


1.70

%


1.34

%


1.01

%


0.92

%

Effect of non-core revenues and expenses

(0.03)



(0.33)



0.01



0.31



0.21


Core return on average assets (Non-GAAP)

1.29

%


1.37

%


1.35

%


1.32

%


1.13

%











Efficiency ratio (GAAP)

52.4

%


63.5

%


54.1

%


63.5

%


67.8

%

Effect of tax benefit related to tax-exempt income

(0.3)



(0.4)



(0.3)



(0.4)



(0.4)


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

52.1

%


63.1

%


53.8

%


63.1

%


67.4

%

Effect of amortization of intangibles

(1.6)



(1.9)



(1.7)



(1.9)



(1.8)


Effect of non-core items

0.8



(10.5)



(0.2)



(6.9)



(6.8)


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

51.3

%


50.7

%


51.9

%


54.3

%


58.8

%











Return on average common equity (GAAP)

9.85

%


13.38

%


10.21

%


7.87

%


6.79

%

Effect of non-core revenues and expenses

(0.19)



(2.63)



0.06



2.43



1.66


Core return on average common equity (Non-GAAP)

9.66

%


10.75

%


10.27

%


10.30

%


8.45

%

Effect of intangibles (2)

5.37



6.23



6.07



6.40



5.38


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

15.03

%


16.98

%


16.34

%


16.70

%


13.83

%











Total shareholders' equity (GAAP)

$

4,141,831



$

4,056,277



$

3,942,361



$

3,913,409



$

3,900,907


Less:  Goodwill and other intangibles

1,310,458



1,315,462



1,305,915



1,314,165



1,332,672


Preferred stock

132,097



132,097



132,097



132,097



132,097


Tangible common equity (Non-GAAP) (2)

$

2,699,276



$

2,608,718



$

2,504,349



$

2,467,147



$

2,436,138












Total assets (GAAP)

$

31,260,189



$

30,833,015



$

30,118,387



$

30,126,162



$

29,472,637


Less:  Goodwill and other intangibles

1,310,458



1,315,462



1,305,915



1,314,165



1,332,672


Tangible assets (Non-GAAP) (2)

$

29,949,731



$

29,517,553



$

28,812,472



$

28,811,997



$

28,139,965


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

9.01

%


8.84

%


8.69

%


8.56

%


8.66

%


(1)

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

(2)

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

 

(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, Energy Lending and Investor Relations (504) 310-7314