IBERIABANK Corporation Reports Third Quarter Results

LAFAYETTE, La., Oct. 18, 2019 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 132-year-old IBERIABANK (www.iberiabank.com), reported financial results for the third quarter ended September 30, 2019. For the quarter, the Company reported net income available to common shareholders of $96.3 million, or $1.82 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 2019 was $1.82 per common share, compared to $1.74 in the year-ago period, an increase of 5% (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 reported another quarter of solid earnings driven by strong growth in both loans and core deposits. As expected, our net interest margin was impacted by lower interest rates, but continued strength in fee income businesses and good expense discipline provided a partial offset to the impact. As we move toward the end of 2019 and prepare for 2020, we remain focused on continuing to grow our businesses throughout the Southeastern U.S., delivering strong financial results and maintaining stellar asset quality, while navigating the ever-challenging environment."

Highlights for the third quarter of 2019 and at September 30, 2019:


For the three months ended


GAAP


Non-GAAP Core


3Q19

2Q19


3Q19

2Q19

Diluted Earnings Per Common Share

$

1.82


$

1.86



$

1.82


$

1.87


Return on Average Assets

1.26

%

1.30

%


1.26

%

1.31

%

Return on Average Common Equity

9.46

%

10.05

%


9.46

%

10.13

%

Return on Average Tangible Common Equity

N/A


N/A



14.48

%

15.58

%

Efficiency Ratio

55.2

%

54.0

%


55.2

%

53.8

%

Tangible Efficiency Ratio (TE)

N/A


N/A



53.4

%

52.0

%





















  • Total loan growth of $321.2 million on a linked quarter basis, or 6% annualized, primarily driven by growth in corporate asset finance and energy, and in the Birmingham, Mobile, and New Orleans markets. Total loan growth on a year-to-date basis was $1.2 billion, or 7%, on an annualized basis.
  • Total deposits increased $682.0 million compared to the prior quarter, or 11%, annualized. The Company experienced deposit growth in all but three of its operating markets, with no increase in brokered deposits from the prior quarter. On a year-to-date basis, we added $1.2 billion in total deposit balances, an annualized growth rate of 7%.
  • Non-interest income increased $4.8 million, or 8%, on a linked quarter basis. The increase was primarily driven by a $3.2 million gain on non-mortgage loan sales and a $1.6 million increase in customer swap commission income.
  • The Company's reported and cash net interest margins both decreased 13 basis points on a linked quarter basis, to 3.44% and 3.24%, respectively. The Company realized $7 million in recoveries, no significant change from the prior quarter.
  • The provision for credit losses totaled $9.0 million, compared to $10.8 million in the prior quarter. Asset quality measures remained strong and stable.
  • Net charge-offs to average loans on an annualized basis remained flat at 0.14% as compared to the prior quarter. Classified assets were 0.89% of total assets, compared to 0.97% in the prior quarter and 1.20% a year ago.
  • During the third quarter of 2019, the Company repurchased approximately 552 thousand shares of its outstanding common stock at a weighted average price of $72.46 per common share. The current share repurchase program has an additional 1.2 million common shares available, which we expect to repurchase over the next three quarters.



Table A - Summary Financial Results

(Dollars in thousands, except per share data)













For the Three Months Ended


9/30/2019



6/30/2019


% Change


9/30/2018


% Change

GAAP BASIS:











Income available to common shareholders

$

96,251




$

100,649



(4.4)



$

97,866



(1.7)


Earnings per common share - diluted

1.82




1.86



(2.2)



1.73



5.2













Average loans and leases, net of unearned income

$

23,522,892




$

23,120,689



1.7



$

22,162,373



6.1


Average total deposits

24,588,346




24,102,704



2.0



23,241,529



5.8


Net interest margin (TE) (1)

3.44


%


3.57


%



3.74


%













Total revenues

$

313,007




$

314,164



(0.4)



$

312,312



0.2


Total non-interest expense

172,662




169,618



1.8



169,062



2.1


Efficiency ratio

55.2


%


54.0


%



54.1


%


Return on average assets

1.26




1.30





1.34




Return on average common equity

9.46




10.05





10.21















NON-GAAP BASIS (2):











Core revenues

$

313,007




$

315,176



(0.7)



$

312,311



0.2


Core non-interest expense

172,662




169,543



1.8



168,362



2.6


Core earnings per common share - diluted

1.82




1.87



(2.7)



1.74



4.6


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

53.4


%


52.0


%



51.9


%


Core return on average assets

1.26




1.31





1.35




Core return on average common equity

9.46




10.13





10.27




Core return on average tangible common equity

14.48




15.58





16.34




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

3.24




3.37





3.47





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

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

Operating Results

Net interest income decreased $6.0 million, or 2%, on a linked quarter basis. The yield on total earning assets was 11 basis points lower at 4.59% compared to 4.70% in the prior quarter. Average loans increased $402.2 million, or 7% annualized, while the associated taxable-equivalent yield decreased 13 basis points. The decrease in loan yield was primarily attributable to the repricing of variable rate loans as a result of recent cuts to the target federal funds rate and the corresponding impact to LIBOR.

Average interest-bearing deposits increased $502.8 million, or 11% annualized, and the cost of interest-bearing deposits rose 5 basis points to 1.55% on a linked quarter basis. Total average interest-bearing liabilities increased by $195.1 million, or 4% annualized, and the cost of interest-bearing liabilities rose 3 basis points to 1.64%. The total cost of funding in the third quarter of 2019 was 1.24% compared to 1.22% in the prior quarter. The lower loan yield along with the increase in cost of funds resulted in a decrease in the reported and cash net interest margins of 13 basis points to 3.44% and 3.24%, respectively.

The provision for credit losses totaled $9.0 million compared to $10.8 million in the prior quarter. Asset quality measures remained strong and stable. Net charge-offs to average loans on an annualized basis remained flat at 0.14% compared to the prior quarter. Non-performing assets to total assets were 0.58% compared to 0.60% in the prior quarter. On a linked quarter basis, the allowance for loan and lease losses to total loans and leases decreased slightly to 0.62% compared to 0.63% in the prior quarter and covered 93% of non-performing loans.

Non-interest income increased $4.8 million, or 8%, on a linked quarter basis. The increase was primarily driven by a $3.2 million gain on non-mortgage loan sales and a $1.6 million increase in customer swap commission income.

Non-interest expense increased $3.0 million, or 2%, compared to the linked quarter, primarily as a result of a $2.3 million increase in occupancy and equipment expense from a write-off on certain long-lived assets and a $2.0 million increase in OREO expense, partially offset by lower travel and other expenses.

On a linked quarter basis, the efficiency ratio increased to 55.2% from 54.0%, primarily due to the decrease in net interest income, while the non-GAAP core tangible efficiency ratio increased to 53.4% compared to 52.0%. 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



9/30/2019


6/30/2019


% Change


9/30/2018


% Change

PERIOD-END BALANCES:














Total loans and leases, net of unearned income

$

23,676,537




$

23,355,311




1.4



$

22,343,906




6.0



Total deposits

24,977,285




24,295,331




2.8



23,193,446




7.7
















ASSET QUALITY RATIOS:














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

0.23

%



0.18

%





0.32

%





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

0.02




0.00






0.06






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

0.58




0.60






0.63






Classified assets to total assets (3)

0.89




0.97






1.20



















CAPITAL RATIOS:














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

9.05

%



8.97

%





8.69

%





Tier 1 leverage ratio (6)

9.78




9.71






9.65






Total risk-based capital ratio (6)

12.34




12.33






12.42



















PER COMMON SHARE DATA:














Book value

$

77.58




$

75.93




2.2



$

68.03




14.0



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

52.68




51.20




2.9



44.72




17.8



Closing stock price

75.54




75.85




(0.4)



81.35




(7.1)



Cash dividends

0.45




0.43




4.7



0.39




15.4



(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 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 $283 million, $304 million and $360 million at September 30, 2019, June 30, 2019, and September 30, 2018, 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, 2019 are preliminary.

Loans and Leases

On a linked quarter basis, total loans and leases increased $321.2 million, or 6% annualized, to $23.7 billion at September 30, 2019. Growth during the third quarter of 2019 was strongest in the Energy Group (reserve-based and midstream lending), the Corporate Asset Finance Group (equipment financing and leasing business), and the Birmingham, Mobile, and New Orleans 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 and Leases

(Dollars in thousands)



















As of and For the Three Months Ended








Linked Qtr Change


Year/Year Change


Mix


9/30/2019


6/30/2019


9/30/2018


$

%


Annualized


$

%


9/30/2019

6/30/2019

Commercial loans and leases

$

16,299,881



$

15,980,029



$

14,962,923



319,852


2.0



7.9

%


1,336,958


8.9



68.9

%

68.5

%

Residential mortgage loans

4,649,745



4,538,194



4,300,163



111,551


2.5



9.8

%


349,582


8.1



19.6

%

19.4

%

Consumer and other loans

2,726,911



2,837,088



3,080,820



(110,177)


(3.9)



(15.4)

%


(353,909)


(11.5)



11.5

%

12.1

%

Total loans and leases

$

23,676,537



$

23,355,311



$

22,343,906



321,226


1.4



5.5

%


1,332,631


6.0



100.0

%

100.0

%

Investment Securities

On an average balance and linked quarter basis, the investment portfolio decreased $291.4 million, or 24% annualized, to $4.6 billion, primarily due to sales of available-for-sale securities. On a period-end basis, investment securities were $4.4 billion, or 14% of total assets. At September 30, 2019, approximately 96% of the investment portfolio was in available-for-sale securities, which experience unrealized gains as interest rates fall. The investment portfolio had an effective duration of 2.5 years at September 30, 2019, down from 2.6 years at June 30, 2019, and a $70.1 million unrealized gain at September 30, 2019, up from a $58.4 million unrealized gain at June 30, 2019. The average yield on investment securities decreased 12 basis points to 2.71% in the third quarter of 2019. The investment portfolio primarily consists of government agency securities. Municipal securities comprised 7.1% of total investments at September 30, 2019.

Deposits and Funding

Total deposits increased $682.0 million, or 11% annualized, to $25.0 billion at September 30, 2019. Growth during the third quarter of 2019 was strongest in the Miami-Dade, Southwest Louisiana, and Baton Rouge markets.

Table D - Period-End Deposits

(Dollars in thousands)









Linked Qtr Change


Year/Year Change


Mix


9/30/2019


6/30/2019


9/30/2018


$

%

Annualized


$

%


9/30/2019

6/30/2019

Non-interest-bearing

$

6,518,783



$

6,474,394



$

6,544,926



44,389


0.7


2.7

%


(26,143)


(0.4)



26.1

%

26.6

%

NOW accounts

4,503,353



4,610,577



4,247,533



(107,224)


(2.3)


(9.2)

%


255,820


6.0



18.0

%

19.0

%

Money market accounts

8,654,605



8,192,752



8,338,682



461,853


5.6


22.4

%


315,923


3.8



34.7

%

33.7

%

Savings accounts

671,156



702,711



820,354



(31,555)


(4.5)


(17.8)

%


(149,198)


(18.2)



2.7

%

2.9

%

Time deposits

4,629,388



4,314,897



3,241,951



314,491


7.3


28.9

%


1,387,437


42.8



18.5

%

17.8

%

Total deposits

$

24,977,285



$

24,295,331



$

23,193,446



681,954


2.8


11.1

%


1,783,839


7.7



100.0

%

100.0

%

Asset Quality

Credit quality remained strong and stable. Classified assets decreased $21.2 million, or 7%, from June 30, 2019 and were 0.89% of total assets compared to 0.97% in the prior quarter and 1.20% in the prior year. Non-performing assets to total assets were 0.58% at September 30, 2019 compared to 0.60% in the prior quarter and 0.63% in the prior year. Loans 30-89 days past due and still accruing represented 0.23% of total loans and leases compared to 0.18% in the prior quarter and 0.32% one year ago. As a percentage of average loans and leases, annualized net charge-offs for the quarter and year-to-date periods remained unchanged from the prior quarter at 0.14%.

The allowance for loan and lease losses was $146.2 million and represented 0.62% of total loans and leases compared to 0.63% as of June 30, 2019.

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

Capital Position

At September 30, 2019, the non-GAAP tangible common equity ratio was 9.05%, up 8 basis points compared to June 30, 2019, and the preliminary Tier 1 leverage ratio was 9.78%, up 7 basis points compared to June 30, 2019. The preliminary calculation of the total risk-based capital ratio at September 30, 2019, was 12.34%, up 1 basis point compared to June 30, 2019.

At September 30, 2019, book value per common share was $77.58, up $1.65 per share, compared to June 30, 2019. Tangible book value per common share was $52.68, up $1.48 per share, compared to June 30, 2019. Based on the closing stock price of the Company's common stock of $76.08 per share on October 17, 2019, this price equated to 0.98 times September 30, 2019 book value per common share and 1.44 times September 30, 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 July 17, 2019, the Company announced a quarterly cash dividend of $0.45 per common share, an increase of approximately 5% compared to the common dividend declared in May. The dividend is payable on October 25, 2019 to shareholders of record as of September 30, 2019.

Preferred Stock . On July 3, 2019, the Company announced a semi-annual cash dividend of $0.8281 per depositary share of Series B Preferred Stock that was payable on August 1, 2019 to shareholders of record as of July 17, 2019. On July 3, 2019, the Company also announced a quarterly cash dividend of $0.4125 per depositary share of Series C Preferred Stock that was payable on August 1, 2019 to shareholders of record as of July 17, 2019.

On October 3, 2019, the Company announced a quarterly cash dividend of $0.4125 per depositary share of Series C Preferred Stock that is payable on November 1, 2019 to shareholders of record as of October 17, 2019. On October 3, 2019, the Company also announced a semi-annual cash dividend of $0.8769 per depositary share of Series D Preferred Stock that is payable on November 1, 2019 to shareholders of record as of October 17, 2019.

Common Stock Repurchase Program . On July 17, 2019 the Board of Directors authorized the repurchase of up to 1,600,000 shares of the Company's common stock. This repurchase authorization equated to approximately 3% 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 be completed within the next year. During the third quarter of 2019, the Company repurchased 552,230 common shares, at a weighted average price of $72.46 per common share. At September 30, 2019, the Company had approximately 1,165,000 remaining shares that may be repurchased under the current Board-approved plan.

Updated 2019 Financial Guidance

Updated 2019 Guidance (1)

Average Earning Assets

$28.7B ~ $29.0B

Consolidated Loan Growth

6.50% ~ 7.25%

Consolidated Deposit Growth

6.50% ~ 7.25%

Provision Expense

$38MM ~ $43MM

Non-Interest Income (Core Basis)

$230MM ~ $235MM

Non-Interest Expense (Core Basis)

$667MM ~ $673MM

Net Interest Margin

3.43% ~ 3.47%

Tax Rate

23.5% ~ 24.0%

Preferred Dividend & Unrestricted Shares

$16.0MM ~ $17.0MM

Share Repurchase Activity

$235MM ~ $240MM

Credit Quality

Stable


(1) Updated guidance includes three interest rate cuts of 25 basis points; one each in July, September, and October 2019

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 $4.0 billion, based on the closing stock price on October 17, 2019.

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

  • Bank of America Merrill Lynch
  • Janney Montgomery Scott, 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 18, 2019, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 4011645. A replay of the call will be available until midnight Central Time on October 25, 2019, by dialing 1-877-344-7529. The confirmation code for the replay is 10134915. 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:

9/30/2019


6/30/2019


% Change


9/30/2018


% Change


Net interest income

$

249,333




$

255,339




(2.4)



$

259,225




(3.8)



Net interest income (TE) (1)

250,653




256,677




(2.3)



260,686




(3.8)



Total revenues

313,007




314,164




(0.4)



312,312




0.2



Provision for credit losses

8,986




10,755




(16.4)



11,384




(21.1)



Non-interest expense

172,662




169,618




1.8



169,062




2.1



Net income available to common shareholders

96,251




100,649




(4.4)



97,866




(1.7)
















PER COMMON SHARE DATA:














Earnings available to common shareholders - basic

$

1.83




$

1.87




(2.1)



$

1.74




5.2



Earnings available to common shareholders - diluted

1.82




1.86




(2.2)



1.73




5.2



Core earnings (Non-GAAP) (2)

1.82




1.87




(2.7)



1.74




4.6



Book value

77.58




75.93




2.2



68.03




14.0



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

52.68




51.20




2.9



44.72




17.8



Closing stock price

75.54




75.85




(0.4)



81.35




(7.1)



Cash dividends

0.45




0.43




4.7



0.39




15.4
















KEY RATIOS AND OTHER DATA (6):


















Net interest margin (TE) (1)

3.44

%



3.57

%





3.74

%





Efficiency ratio

55.2




54.0






54.1






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

53.4




52.0






51.9






Return on average assets

1.26




1.30






1.34






Return on average common equity

9.46




10.05






10.21






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

14.48




15.58






16.34






Effective tax rate

24.0




24.1






23.1






Full-time equivalent employees

3,397




3,418






3,429



















CAPITAL RATIOS:














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

9.05

%



8.97

%





8.69

%





Tangible common equity to risk-weighted assets (3)

10.51




10.45






10.17






Tier 1 leverage ratio (4)

9.78




9.71






9.65






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

10.41




10.37






10.79






Tier 1 capital ratio (4)

11.28




11.26






11.33






Total risk-based capital ratio (4)

12.34




12.33






12.42






Common stock dividend payout ratio

24.4




22.6






21.8






Classified assets to Tier 1 capital (7)

9.6




10.4






12.9



















ASSET QUALITY RATIOS:


















Non-performing assets to total assets (5)

0.58

%



0.60

%





0.63

%





ALLL to total loans and leases

0.62




0.63






0.61






Net charge-offs to average loans (annualized)

0.14




0.14






0.16






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

0.78




0.80






0.84



















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

(3)

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

(4)

Regulatory capital ratios as of September 30, 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 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


9/30/2019


6/30/2019


$

%


3/31/2019


12/31/2018


9/30/2018


$

%

Interest income

$

333,178



$

335,967



(2,789)


(0.8)



$

326,084



$

330,196



$

317,067



16,111


5.1


Interest expense

83,845



80,628



3,217


4.0



75,600



65,175



57,842



26,003


45.0


Net interest income

249,333



255,339



(6,006)


(2.4)



250,484



265,021



259,225



(9,892)


(3.8)


Provision for credit losses

8,986



10,755



(1,769)


(16.4)



13,763



13,094



11,384



(2,398)


(21.1)


Net interest income after provision for credit losses

240,347



244,584



(4,237)


(1.7)



236,721



251,927



247,841



(7,494)


(3.0)


Mortgage income

17,432



18,444



(1,012)


(5.5)



11,849



10,379



12,729



4,703


36.9


Service charges on deposit accounts

13,209



12,847



362


2.8



12,810



13,425



13,520



(311)


(2.3)


Title revenue

7,170



6,895



275


4.0



5,225



5,996



6,280



890


14.2


Broker commissions

1,800



2,044



(244)


(11.9)



1,953



1,951



2,627



(827)


(31.5)


ATM/debit card fee income

2,948



3,032



(84)


(2.8)



2,582



2,267



2,470



478


19.4


Income from bank owned life insurance

1,760



1,750



10


0.6



1,797



2,023



1,744



16


0.9


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

27



(1,014)



1,041


102.7





(49,844)





27


100.0


Trust department income

4,281



4,388



(107)


(2.4)



4,167



4,319



3,993



288


7.2


Other non-interest income

15,047



10,439



4,608


44.1



12,126



10,453



9,724



5,323


54.7


Total non-interest income

63,674



58,825



4,849


8.2



52,509



969



53,087



10,587


19.9


Salaries and employee benefits

103,257



103,375



(118)


(0.1)



98,296



101,551



101,159



2,098


2.1


Occupancy and equipment

21,316



18,999



2,317


12.2



18,564



18,379



18,889



2,427


12.8


Amortization of acquisition intangibles

4,410



4,786



(376)


(7.9)



5,009



5,083



5,382



(972)


(18.1)


Computer services expense

9,638



9,383



255


2.7



9,157



8,942



9,036



602


6.7


Professional services

6,323



6,244



79


1.3



4,450



8,628



5,519



804


14.6


Credit and other loan related expense

4,532



4,141



391


9.4



2,859



4,776



4,830



(298)


(6.2)


Other non-interest expense

23,186



22,690



496


2.2



20,418



21,630



24,247



(1,061)


(4.4)


Total non-interest expense

172,662



169,618



3,044


1.8



158,753



168,989



169,062



3,600


2.1


Income before income taxes

131,359



133,791



(2,432)


(1.8)



130,477



83,907



131,866



(507)


(0.4)


Income tax expense (benefit)

31,509



32,193



(684)


(2.1)



30,346



(46,132)



30,401



1,108


3.6


Net income

99,850



101,598



(1,748)


(1.7)



100,131



130,039



101,465



(1,615)


(1.6)


Less: Preferred stock dividends

3,599



949



2,650


279.2



3,598



949



3,599





Net income available to common shareholders

$

96,251



$

100,649



(4,398)


(4.4)



$

96,533



$

129,090



$

97,866



(1,615)


(1.7)


















Income available to common shareholders - basic

$

96,251



$

100,649



(4,398)


(4.4)



$

96,533



$

129,090



$

97,866



(1,615)


(1.7)


Less: Earnings allocated to unvested restricted stock

874



999



(125)


(12.5)



933



1,214



908



(34)


(3.7)


Earnings allocated to common shareholders

$

95,377



$

99,650



(4,273)


(4.3)



$

95,600



$

127,876



$

96,958



(1,581)


(1.6)


















Earnings per common share - basic

$

1.83



$

1.87



(0.04)


(2.1)



$

1.76



$

2.33



$

1.74



0.09


5.2


















Earnings per common share - diluted

1.82



1.86



(0.04)


(2.2)



1.75



2.32



1.73



0.09


5.2


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



0.01



(0.01)


(100.0)



(0.03)



(0.46)



0.01



(0.01)


(100.0)


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

$

1.82



$

1.87



(0.05)


(2.7)



$

1.72



$

1.86



$

1.74



0.08


4.6


















NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
















Weighted average common shares outstanding - basic

51,984



53,345



(1,361)


(2.6)



54,177



54,892



55,571



(3,587)


(6.5)


Weighted average common shares outstanding - diluted

52,292



53,674



(1,382)


(2.6)



54,539



55,215



55,945



(3,653)


(6.5)


Book value shares (period end)

52,266



52,805



(539)


(1.0)



54,551



54,796



56,007



(3,741)


(6.7)



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



Table 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except per share data)









For the Nine Months Ended






Change


9/30/2019


9/30/2018


$

%

Interest income

$

995,229



$

891,433



103,796


11.6


Interest expense

240,073



143,206



96,867


67.6


Net interest income

755,156



748,227



6,929


0.9


Provision for credit losses

33,504



27,290



6,214


22.8


Net interest income after provision for credit losses

721,652



720,937



715


0.1


Mortgage income

47,725



36,045



11,680


32.4


Service charges on deposit accounts

38,866



39,378



(512)


(1.3)


Title revenue

19,290



18,153



1,137


6.3


Broker commissions

5,797



7,244



(1,447)


(20.0)


ATM/debit card fee income

8,562



8,028



534


6.7


Income from bank owned life insurance

5,307



4,287



1,020


23.8


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

(987)



(56)



(931)


NM


Trust department income

12,836



11,662



1,174


10.1


Other non-interest income

37,612



26,852



10,760


40.1


Total non-interest income

175,008



151,593



23,415


15.4


Salaries and employee benefits

304,928



313,190



(8,262)


(2.6)


Occupancy and equipment

58,879



58,867



12


NM


Amortization of acquisition intangibles

14,205



16,595



(2,390)


(14.4)


Computer services expense

28,178



30,738



(2,560)


(8.3)


Professional services

17,017



20,070



(3,053)


(15.2)


Credit and other loan related expense

11,532



14,313



(2,781)


(19.4)


Other non-interest expense

66,294



100,137



(33,843)


(33.8)


Total non-interest expense

501,033



553,910



(52,877)


(9.5)


Income before income taxes

395,627



318,620



77,007


24.2


Income tax expense

94,048



78,410



15,638


19.9


Net income

301,579



240,210



61,369


25.5


Less: Preferred stock dividends

8,146



8,146





Net income available to common shareholders

$

293,433



$

232,064



61,369


26.4









Income available to common shareholders - basic

$

293,433



$

232,064



61,369


26.4


Less: Earnings allocated to unvested restricted stock

2,806



2,341



465


19.9


Earnings allocated to common shareholders

$

290,627



$

229,723



60,904


26.5









Earnings per common share - basic

$

5.47



$

4.17



1.30


31.2









Earnings per common share - diluted

5.43



4.14



1.29


31.2


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

(0.02)



0.69



(0.71)


(102.9)


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

$

5.41



$

4.83



0.58


12.0









NUMBER OF COMMON SHARES OUTSTANDING (in thousands)







Weighted average common shares outstanding - basic

53,160



55,047



(1,887)


(3.4)


Weighted average common shares outstanding - diluted

53,493



55,407



(1,914)


(3.5)


Book value shares (period end)

52,266



56,007



(3,741)


(6.7)



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

NM - not meaningful



TABLE 4 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)
















PERIOD-END BALANCES




Linked Qtr Change








Year/Year Change

ASSETS

9/30/2019


6/30/2019


$


%


3/31/2019


12/31/2018


9/30/2018


$


%

Cash and due from banks

$

353,346



$

289,502



63,844



22.1



$

280,680



$

294,186



$

291,083



62,263



21.4


Interest-bearing deposits in other banks

577,587



499,813



77,774



15.6



391,217



396,267



184,852



392,735



212.5


Total cash and cash equivalents

930,933



789,315



141,618



17.9



671,897



690,453



475,935



454,998



95.6


Investment securities available for sale

4,238,082



4,455,308



(217,226)



(4.9)



4,873,778



4,783,579



4,634,124



(396,042)



(8.5)


Investment securities held to maturity

185,007



192,917



(7,910)



(4.1)



198,958



207,446



213,561



(28,554)



(13.4)


Total investment securities

4,423,089



4,648,225



(225,136)



(4.8)



5,072,736



4,991,025



4,847,685



(424,596)



(8.8)


Mortgage loans held for sale

255,276



187,987



67,289



35.8



128,451



107,734



42,976



212,300



494.0


Loans and leases, net of unearned income

23,676,537



23,355,311



321,226



1.4



22,968,295



22,519,815



22,343,906



1,332,631



6.0


Allowance for loan and lease losses

(146,235)



(146,386)



(151)



(0.1)



(142,966)



(140,571)



(136,950)



9,285



6.8


Loans and leases, net

23,530,302



23,208,925



321,377



1.4



22,825,329



22,379,244



22,206,956



1,323,346



6.0


Premises and equipment, net

298,309



295,897



2,412



0.8



297,342



300,507



304,605



(6,296)



(2.1)


Goodwill and other intangible assets

1,314,676



1,317,151



(2,475)



(0.2)



1,319,992



1,324,269



1,313,478



1,198



0.1


Other assets

982,013



999,032



(17,019)



(1.7)



944,442



1,039,783



926,752



55,261



6.0


Total assets

$

31,734,598



$

31,446,532



288,066



0.9



$

31,260,189



$

30,833,015



$

30,118,387



1,616,211



5.4




















LIABILITIES AND SHAREHOLDERS' EQUITY













Non-interest-bearing deposits

$

6,518,783



$

6,474,394



44,389



0.7



$

6,448,613



$

6,542,490



$

6,544,926



(26,143)



(0.4)


NOW accounts

4,503,353



4,610,577



(107,224)



(2.3)



4,452,966



4,514,113



4,247,533



255,820



6.0


Savings and money market accounts

9,325,761



8,895,463



430,298



4.8



9,119,263



9,066,205



9,159,036



166,725



1.8


Time deposits

4,629,388



4,314,897



314,491



7.3



4,071,220



3,640,623



3,241,951



1,387,437



42.8


Total deposits

24,977,285



24,295,331



681,954



2.8



24,092,062



23,763,431



23,193,446



1,783,839



7.7


Short-term borrowings

275,000



813,000



(538,000)



(66.2)



845,000



1,167,000



790,000



(515,000)



(65.2)


Securities sold under agreements to repurchase

223,049



184,507



38,542



20.9



261,131



315,882



452,719



(229,670)



(50.7)


Trust preferred securities

120,110



120,110







120,110



120,110



120,110






Other long-term debt

1,274,092



1,254,649



19,443



1.5



1,355,345



1,046,041



1,346,700



(72,608)



(5.4)


Other liabilities

581,762



540,935



40,827



7.5



444,710



364,274



273,051



308,711



113.1


Total liabilities

27,451,298



27,208,532



242,766



0.9



27,118,358



26,776,738



26,176,026



1,275,272



4.9


Total shareholders' equity

4,283,300



4,238,000



45,300



1.1



4,141,831



4,056,277



3,942,361



340,939



8.6


Total liabilities and shareholders' equity

$

31,734,598



$

31,446,532



288,066



0.9



$

31,260,189



$

30,833,015



$

30,118,387



1,616,211



5.4




TABLE 4 Continued - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)



















AVERAGE BALANCES


Linked Qtr Change








Year/Year Change

ASSETS

9/30/2019


6/30/2019


$


%


3/31/2019


12/31/2018


9/30/2018


$


%

Cash and due from banks

$

272,273



$

275,917



(3,644)



(1.3)



$

291,659



$

281,509



$

279,918



(7,645)



(2.7)


Interest-bearing deposits in other banks

531,665



436,948



94,717



21.7



332,638



385,619



259,455



272,210



104.9


Total cash and cash equivalents

803,938



712,865



91,073



12.8



624,297



667,128



539,373



264,565



49.1


Investment securities available for sale

4,365,558



4,650,757



(285,199)



(6.1)



4,816,855



4,567,564



4,673,454



(307,896)



(6.6)


Investment securities held to maturity

189,400



195,639



(6,239)



(3.2)



202,601



211,333



216,419



(27,019)



(12.5)


Total investment securities

4,554,958



4,846,396



(291,438)



(6.0)



5,019,456



4,778,897



4,889,873



(334,915)



(6.8)


Mortgage loans held for sale

209,778



159,931



49,847



31.2



95,588



63,033



87,823



121,955



138.9


Loans and leases, net of unearned income

23,522,892



23,120,689



402,203



1.7



22,599,686



22,364,188



22,162,373



1,360,519



6.1


Allowance for loan and lease losses

(148,203)



(145,854)



(2,349)



1.6



(140,915)



(138,675)



(139,075)



(9,128)



6.6


Loans and leases, net

23,374,689



22,974,835



399,854



1.7



22,458,771



22,225,513



22,023,298



1,351,391



6.1


Premises and equipment, net

298,055



298,119



(64)



0.0



299,741



302,956



315,259



(17,204)



(5.5)


Goodwill and other intangible assets

1,315,359



1,318,182



(2,823)



(0.2)



1,322,288



1,318,200



1,316,527



(1,168)



(0.1)


Other assets

997,514



961,494



36,020



3.7



1,013,359



977,740



874,078



123,436



14.1


Total assets

$

31,554,291



$

31,271,822



282,469



0.9



$

30,833,500



$

30,333,467



$

30,046,231



1,508,060



5.0




















LIABILITIES AND SHAREHOLDERS' EQUITY













Non-interest-bearing deposits

$

6,425,026



$

6,442,217



(17,191)



(0.3)



$

6,271,313



$

6,646,071



$

6,684,343



(259,317)



(3.9)


NOW accounts

4,451,579



4,488,691



(37,112)



(0.8)



4,458,634



4,212,304



4,296,392



155,187



3.6


Savings and money market accounts

9,188,186



9,014,822



173,364



1.9



9,089,099



9,169,184



9,237,614



(49,428)



(0.5)


Time deposits

4,523,555



4,156,974



366,581



8.8



3,859,354



3,457,017



3,023,180



1,500,375



49.6


Total deposits

24,588,346



24,102,704



485,642



2.0



23,678,400



23,484,576



23,241,529



1,346,817



5.8


Short-term borrowings

606,739



782,516



(175,777)



(22.5)



859,576



602,593



820,087



(213,348)



(26.0)


Securities sold under agreements to repurchase

187,305



214,090



(26,785)



(12.5)



291,643



386,563



376,078



(188,773)



(50.2)


Trust preferred securities

120,110



120,110







120,110



120,110



120,110






Other long-term debt

1,240,382



1,345,575



(105,193)



(7.8)



1,343,752



1,308,086



1,260,900



(20,518)



(1.6)


Other liabilities

545,838



463,803



82,035



17.7



434,516



470,501



292,445



253,393



86.6


Total liabilities

27,288,720



27,028,798



259,922



1.0



26,727,997



26,372,429



26,111,149



1,177,571



4.5


Total shareholders' equity

4,265,571



4,243,024



22,547



0.5



4,105,503



3,961,038



3,935,082



330,489



8.4


Total liabilities and shareholders' equity

$

31,554,291



$

31,271,822



282,469



0.9



$

30,833,500



$

30,333,467



$

30,046,231



1,508,060



5.0




Table 5 - IBERIABANK CORPORATION

LOANS AND ASSET QUALITY DATA

(Dollars in thousands)














Linked Qtr Change








Year/Year Change

LOANS

9/30/2019


6/30/2019


$


%


3/31/2019


12/31/2018


9/30/2018


$


%

Commercial loans and leases:


















Real estate- construction

$

1,330,014



$

1,342,984



(12,970)



(1.0)



$

1,219,647



$

1,196,366



$

1,127,988



202,026



17.9


Real estate- owner-occupied (1)

2,468,061



2,373,143



94,918



4.0



2,408,079



2,395,822



2,458,964



9,097



0.4


Real estate- non-owner occupied

6,011,681



6,102,143



(90,462)



(1.5)



6,147,864



5,796,117



5,794,931



216,750



3.7


Commercial and industrial (6)

6,490,125



6,161,759



328,366



5.3



5,852,568



5,737,017



5,581,040



909,085



16.3


Total commercial loans and leases

16,299,881



15,980,029



319,852



2.0



15,628,158



15,125,322



14,962,923



1,336,958



8.9




















Residential mortgage loans

4,649,745



4,538,194



111,551



2.5



4,415,267



4,359,156



4,300,163



349,582



8.1




















Consumer and other loans:


















Home equity

2,053,588



2,147,897



(94,309)



(4.4)



2,220,648



2,304,694



2,350,176



(296,588)



(12.6)


Other

673,323



689,191



(15,868)



(2.3)



704,222



730,643



730,644



(57,321)



(7.8)


Total consumer and other loans

2,726,911



2,837,088



(110,177)



(3.9)



2,924,870



3,035,337



3,080,820



(353,909)



(11.5)


Total loans and leases

$

23,676,537



$

23,355,311



321,226



1.4



$

22,968,295



$

22,519,815



$

22,343,906



1,332,631



6.0















Allowance for loan and lease losses (2)

$

(146,235)



$

(146,386)



(151)



(0.1)



$

(142,966)



$

(140,571)



$

(136,950)



9,285



6.8


Loans and leases, net

23,530,302



23,208,925



321,377



1.4



22,825,329



22,379,244



22,206,956



1,323,346



6.0




















Reserve for unfunded commitments

(16,144)



(15,281)



863



5.6



(15,981)



(14,830)



(14,721)



1,423



9.7


Allowance for credit losses

(162,379)



(161,667)



712



0.4



(158,947)



(155,401)



(151,671)



10,708



7.1




















ASSET QUALITY DATA

















Non-accrual loans (3)

$

153,113



$

158,992



(5,879)



(3.7)



$

148,056



$

137,184



$

143,595



9,518



6.6


Other real estate owned and foreclosed assets

27,075



28,106



(1,031)



(3.7)



30,606



30,394



32,418



(5,343)



(16.5)


Accruing loans more than 90 days past due (3)

4,790



851



3,939



462.9



4,111



2,128



12,452



(7,662)



(61.5)


Total non-performing

assets (3)(4)

$

184,978



$

187,949



(2,971)



(1.6)



$

182,773



$

169,706



$

188,465



(3,487)



(1.9)




















Loans 30-89 days past due (3)

$

54,618



$

43,021



11,597



27.0



$

45,334



$

57,332



$

70,624



(16,006)



(22.7)




















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

0.58

%


0.60

%






0.58

%


0.55

%


0.63

%





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

0.78



0.80







0.79



0.75



0.84






ALLL to non-performing

loans (3)(5)

92.6



91.6







94.0



100.9



87.8






ALLL to non-performing

assets (3)(4)

79.1



77.9







78.2



82.8



72.7






ALLL to total loans and leases

0.62



0.63







0.62



0.62



0.61
























Quarter-to-date charge-offs

$

10,777



$

10,275



502



4.9



$

8,918



$

10,806



$

12,006



(1,229)



(10.2)


Quarter-to-date recoveries

(2,336)



(2,218)



118



5.3



(1,586)



(3,097)



(3,049)



(713)



(23.4)


Quarter-to-date net charge-offs

$

8,441



$

8,057



384



4.8



$

7,332



$

7,709



$

8,957



(516)



(5.8)




















Net charge-offs to average loans (annualized)

0.14

%


0.14

%






0.13

%


0.14

%


0.16

%






(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


9/30/2019


6/30/2019


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

$

16,155,962


$

205,350


5.06

%


$

15,766,423


$

205,093


5.24

%


(18)

Residential mortgage loans

4,588,549


50,939


4.44



4,482,150


49,388


4.41



3

Consumer and other loans

2,778,381


40,501


5.78



2,872,116


42,205


5.89



(11)

Total loans and leases

23,522,892


296,790


5.03



23,120,689


296,686


5.16



(13)

Mortgage loans held for sale

209,778


1,936


3.69



159,931


1,588


3.97



(28)

Investment securities (2)

4,493,789


29,932


2.71



4,853,858


33,803


2.83



(12)

Other earning assets

733,305


4,520


2.44



639,232


3,890


2.44



Total earning assets

28,959,764


333,178


4.59



28,773,710


335,967


4.70



(11)

Allowance for loan and lease losses

(148,203)





(145,854)






Non-earning assets

2,742,730





2,643,966






Total assets

$

31,554,291





$

31,271,822
















LIABILITIES AND SHAREHOLDERS' EQUITY








Interest-bearing liabilities:










NOW accounts

$

4,451,579


$

11,305


1.01

%


$

4,488,691


$

11,623


1.04

%


(3)

Savings and money market accounts

9,188,186


32,959


1.42



9,014,822


30,845


1.37



5

Time deposits

4,523,555


26,489


2.32



4,156,974


23,398


2.26



6

Total interest-bearing deposits (3)

18,163,320


70,753


1.55



17,660,487


65,866


1.50



5

Short-term borrowings

794,044


3,880


1.94



996,606


5,197


2.09



(15)

Long-term debt

1,360,492


9,212


2.69



1,465,685


9,565


2.62



7

Total interest-bearing liabilities

20,317,856


83,845


1.64



20,122,778


80,628


1.61



3

Non-interest-bearing deposits

6,425,026





6,442,217






Non-interest-bearing liabilities

545,838





463,803






Total liabilities

27,288,720





27,028,798






Total shareholders' equity

4,265,571





4,243,024






Total liabilities and shareholders' equity

$

31,554,291





$

31,271,822
















Net interest income/Net interest spread

$

249,333


2.95

%



$

255,339


3.09

%


(14)

Taxable equivalent benefit


1,320


0.02




1,338


0.02



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


$

250,653


3.44

%



$

256,677


3.57

%


(13)


(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, 2019 and June 30, 2019 were 1.14% and 1.10%, respectively.



TABLE 6 Continued - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)














For the Three Months Ended


3/31/2019


12/31/2018


9/30/2018

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

$

15,253,655


$

194,510


5.19

%


$

14,978,169


$

196,881


5.24

%


$

14,825,572


$

191,014


5.13

%

Residential mortgage loans

4,385,634


47,829


4.36



4,345,811


53,836


4.96



4,230,471


48,145


4.55


Consumer and other loans

2,960,397


42,540


5.83



3,040,208


44,275


5.78



3,106,330


43,966


5.62


Total loans and leases

22,599,686


284,879


5.11



22,364,188


294,992


5.26



22,162,373


283,125


5.09


Mortgage loans held for sale

95,588


1,054


4.41



63,033


721


4.58



87,823


1,037


4.72


Investment securities (2)

5,052,922


36,125


2.90



4,782,844


30,559


2.61



5,016,163


29,793


2.43


Other earning assets

533,745


4,026


3.06



581,673


3,924


2.68



456,120


3,112


2.71


Total earning assets

28,281,941


326,084


4.68



27,791,738


330,196


4.74



27,722,479


317,067


4.57


Allowance for loan and lease losses

(140,915)





(138,675)





(139,075)




Non-earning assets

2,692,474





2,680,404





2,462,827




Total assets

$

30,833,500





$

30,333,467





$

30,046,231
















LIABILITIES AND SHAREHOLDERS' EQUITY










Interest-bearing liabilities:












NOW accounts

$

4,458,634


$

11,396


1.04

%


$

4,212,304


$

9,420


0.89

%


$

4,296,392


$

8,841


0.82

%

Savings and money market accounts

9,089,099


28,762


1.28



9,169,184


26,062


1.13



9,237,614


23,076


0.99


Time deposits

3,859,354


20,077


2.11



3,457,017


16,666


1.91



3,023,180


12,484


1.64


Total interest-bearing deposits (3)

17,407,087


60,235


1.40



16,838,505


52,148


1.23



16,557,186


44,401


1.06


Short-term borrowings

1,151,219


5,716


2.01



989,156


4,104


1.65



1,196,165


4,727


1.57


Long-term debt

1,463,862


9,649


2.67



1,428,196


8,923


2.48



1,381,010


8,714


2.50


Total interest-bearing liabilities

20,022,168


75,600


1.53



19,255,857


65,175


1.34



19,134,361


57,842


1.20


Non-interest-bearing deposits

6,271,313





6,646,071





6,684,343




Non-interest-bearing liabilities

434,516




470,501





292,445




Total liabilities

26,727,997




26,372,429





26,111,149




Total shareholders' equity

4,105,503




3,961,038





3,935,082




Total liabilities and shareholders' equity

$

30,833,500





$

30,333,467





$

30,046,231
















Net interest income/Net interest spread


$

250,484


3.15

%



$

265,021


3.40

%



$

259,225


3.37

%

Taxable equivalent benefit


1,349


0.02




1,427


0.02




1,461


0.02


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


$

251,833


3.59

%



$

266,448


3.81

%



$

260,686


3.74

%


(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, December 31, 2018, and September 30, 2018, were 1.03%, 0.88% and 0.76%, respectively.



TABLE 7 - IBERIABANK CORPORATION

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

(Dollars in thousands)












For the Nine Months Ended


9/30/2019


9/30/2018


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

$

15,728,652


$

604,953


5.16

%


$

14,517,767


$

534,504


4.94

%


22

Residential mortgage loans

4,486,188


148,156


4.40



3,811,786


129,854


4.54



(14)

Consumer and other loans

2,869,631


125,246


5.84



3,069,198


127,312


5.55



29

Total loans and leases

23,084,471


878,355


5.10



21,398,751


791,670


4.96



14

Mortgage loans held for sale

155,517


4,578


3.93



89,845


3,027


4.49



(56)

Investment securities (2)

4,798,142


99,860


2.82



4,940,093


87,212


2.41



41

Other earning assets

636,158


12,436


2.61



571,346


9,524


2.23



38

Total earning assets

28,674,288


995,229


4.66



27,000,035


891,433


4.43



23

Allowance for loan and lease losses

(145,017)





(142,960)






Non-earning assets

2,693,240





2,466,370






Total assets

$

31,222,511





$

29,323,445
















LIABILITIES AND SHAREHOLDERS' EQUITY








Interest-bearing liabilities:










NOW accounts

$

4,466,275


$

34,325


1.03

%


$

4,384,425


$

24,542


0.75

%


28

Savings and money market accounts

9,097,732


92,565


1.36



9,018,101


56,089


0.83



53

Time deposits

4,182,394


69,964


2.24



2,740,119


28,173


1.37



87

Total interest-bearing deposits (3)

17,746,401


196,854


1.48



16,142,645


108,804


0.90



58

Short-term borrowings

979,315


14,793


2.02



1,073,296


10,578


1.32



70

Long-term debt

1,429,634


28,426


2.66



1,380,000


23,824


2.31



35

Total interest-bearing liabilities

20,155,350


240,073


1.59



18,595,941


143,206


1.03



56

Non-interest-bearing deposits

6,380,082





6,587,729






Non-interest-bearing liabilities

481,794





283,438






Total liabilities

27,017,226





25,467,108






Total shareholders' equity

4,205,285





3,856,337






Total liabilities and shareholders' equity

$

31,222,511





$

29,323,445
















Net interest income/Net interest spread

$

755,156


3.07

%



$

748,227


3.40

%


(33)

Tax-equivalent benefit


3,994


0.02




4,357


0.02



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


$

759,150


3.54

%



$

752,584


3.72

%


(18)


(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 nine months ended September 30, 2019 and 2018 were 1.09% and 0.64%, respectively.



Table 8 - IBERIABANK CORPORATION

LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS

(Dollars in millions)






















For the Three Months Ended


9/30/2019


6/30/2019


3/31/2019


12/31/2018


9/30/2018

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 and leases, net

$

229


$

18,721


4.86

%


$

225


$

17,984


5.00

%


$

213


$

17,192


5.02

%


$

209


$

16,616


4.99

%


$

193


$

15,957


4.80

%

Acquired loans

68


4,802


5.62



72


5,137


5.64



72


5,408


5.35



86


5,748


5.97



90


6,205


5.78


Total loans and leases

$

297


$

23,523


5.01

%


$

297


$

23,121


5.14

%


$

285


$

22,600


5.10

%


$

295


$

22,364


5.24

%


$

283


$

22,162


5.08

%






















9/30/2019


6/30/2019


3/31/2019


12/31/2018


9/30/2018

ADJUSTMENTS

Income

Average
Balance

Yield


Income

Average
Balance

Yield


Income

Average
Balance

Yield


Income

Average
Balance

Yield


Income

Average
Balance

Yield

Legacy loans and leases, net

$


$


0.00

%


$


$


0.00

%


$


$


0.00

%


$


$


0.00

%


$


$


0.00

%

Acquired loans

(14)


111


(1.24)



(14)


124


(1.15)



(11)


136


(0.92)



(19)


144


(1.46)



(17)


144


(1.23)


Total loans and leases

$

(14)


$

111


(0.25)

%


$

(14)


$

124


(0.25)

%


$

(11)


$

136


(0.22)

%


$

(19)


$

144


(0.38)

%


$

(17)


$

144


(0.35)

%






















6/30/2019


6/30/2019


3/31/2019


12/31/2018


9/30/2018

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 and leases, net

$

229


$

18,721


4.86

%


$

225


$

17,984


5.00

%


$

213


$

17,192


5.02

%


$

209


$

16,616


4.99

%


$

193


$

15,957


4.80

%

Acquired loans

54


4,913


4.38



58


5,261


4.49



61


5,544


4.43



67


5,892


4.51



73


6,349


4.55


Total loans and leases

$

283


$

23,634


4.76

%


$

283


$

23,245


4.89

%


$

274


$

22,736


4.88

%


$

276


$

22,508


4.86

%


$

266


$

22,306


4.73

%



Table 9 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands, except per share amounts)




















For the Three Months Ended


9/30/2019


6/30/2019


3/31/2019


Pre-tax


After-tax


Per share (2)


Pre-tax


After-tax


Per share (2)


Pre-tax


After-tax


Per share (2)

Net income

$

131,359



$

99,850



$

1.89



$

133,791



$

101,598



$

1.88



$

130,477



$

100,131



$

1.82


Less: Preferred stock dividends



3,599



0.07





949



0.02





3,598



0.07


Income available to common shareholders (GAAP)

$

131,359



$

96,251



$

1.82



$

133,791



$

100,649



$

1.86



$

130,477



$

96,533



$

1.75




















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

















Loss (gain) on sale of investments







1,012



769



0.01


























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

















Merger-related expense







(10)



(7)





(334)



(254)




Compensation-related expense













(9)



(7)




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







(22)



(17)





986



749



0.01


Other non-core non-interest expense







107



81





(3,129)



(2,378)



(0.04)


Total non-interest expense adjustments







75



57





(2,486)



(1,890)



(0.03)


Core earnings (Non-GAAP)

131,359



96,251



1.82



134,878



101,475



1.87



127,991



94,643



1.72


Provision for credit losses (1)

8,986



6,829





10,755



8,174





13,763



10,460




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

$

140,345



$

103,080





$

145,633



$

109,649





$

141,754



$

105,103



























































For the Three Months Ended








12/31/2018


9/30/2018








Pre-tax


After-tax


Per share (2)


Pre-tax


After-tax


Per share (2)







Net income

$

83,907



$

130,039



$

2.34



$

131,866



$

101,465



$

1.79








Less: Preferred stock dividends



949



0.02





3,599



0.06








Income available to common shareholders (GAAP)

$

83,907



$

129,090



$

2.32



$

131,866



$

97,866



$

1.73


























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

















(Gain) loss 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

(238)



(353)





973



743



0.01








Compensation-related expense

184



140





1,104



839



0.01








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

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

2,600



1,976



0.04



(1,955)



(1,486)



(0.02)








Total non-interest expense adjustments

2,610



1,812



0.04



700



535



0.01








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



(65,317)



(1.18)














Core earnings (Non-GAAP)

136,776



103,783



1.86



132,565



98,400



1.74








Provision for credit losses (1)

13,094



9,951





11,384



8,652










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

$

149,870



$

113,734





$

143,949



$

107,052











(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.




For the Nine Months Ended


9/30/2019