IBERIABANK Corporation Reports First Quarter Results

LAFAYETTE, La., April 17, 2020 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 133-year-old IBERIABANK (www.iberiabank.com), reported financial results for the first quarter ended March 31, 2020. For the quarter, the Company reported net income available to common shareholders of $32.8 million, or $0.62 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 March 31, 2020 was $0.67 per common share, compared to $1.72 in the same quarter of 2019 (refer to press release supplemental tables for a reconciliation of GAAP to non-GAAP metrics).

Daryl G. Byrd, President and Chief Executive Officer, commented, "As we navigate the uncertain and unprecedented COVID-19 environment, the Company is highly focused on servicing the financial needs of our clients, ensuring the health and well-being of our associates, and supporting the communities in which we live and serve. Our teams have been working around the clock to assist clients with payment forbearance and other relief programs, including the SBA Paycheck Protection Program. At the same time, retail operations and branch facilities remain open and committed to serving our clients in a safe and responsible manner. This is truly a Herculean effort and our teams have made a tremendous amount of progress for our clients in a very short time period. I am very proud of the commitment of all our IBERIABANK associates."

"During the first quarter, our fundamental business model performed very well in the face of uncertain economic times. The Company was able to expand our client base, produce significant growth in our loan portfolio, increase core and non-interest bearing deposits, and grow tangible book value. The Company successfully delivered record non-interest income, held non-interest expense in check, and maintained already strong credit quality metrics. First quarter results included the adoption of CECL early in the quarter, and as a result we recorded an approximately $82 million increase in our allowance for expected credit losses and related book value write-down.  As we evaluated the economic uncertainties of the current pandemic, at the end of March we recorded an additional $69 million pre-tax increase in provision and other credit-related reserves that significantly impacted our financial results."

Byrd concluded, "We continue to diligently work on the merger planning process. Our employees remain engaged and committed to creating a top-tier regional banking institution and look forward to all we can accomplish for our clients and shareholders as a combined franchise."

First Quarter 2020 Highlights:


For the three months ended


GAAP


Non-GAAP Core


1Q20

4Q19


1Q20

4Q19

Diluted Earnings Per Common Share

$

0.62


$

1.48



$

0.67


$

1.59


Return on Average Assets

0.46

%

1.03

%


0.49

%

1.10

%

Return on Average Common Equity

3.21

%

7.58

%


3.47

%

8.13

%

Return on Average Tangible Common Equity

N/A


N/A



5.53

%

12.39

%

Efficiency Ratio

60.1

%

61.8

%


59.1

%

58.0

%

Tangible Efficiency Ratio (TE)

N/A


N/A



57.4

%

56.2

%

 

  • Total loan growth was $520.1 million, or 9% annualized, on a linked quarter basis. Commercial and consumer line utilization was 52.4% and 64.0%, respectively, only slightly higher than at year-end 2019.
  • Total deposits increased $306.9 million compared to the prior quarter, or 5% annualized. Non-interest bearing deposits increased $309.1 million, or 5%, in the quarter, to 26% of total deposits.
  • Non-interest income increased $5.3 million, or 9%, on a linked quarter basis to $64.7 million, a record quarter on a core basis for the Company, primarily the result of a $7.9 million increase in mortgage income.
    • As of April 13, 2020, the Company's locked mortgage pipeline was $662.2 million, up 209% from $214.4 million at January 21, 2020.
  • Non-interest expense decreased $4.3 million, or 2%, on a linked quarter basis, primarily as a result of decreases in salaries and benefits and professional services expense, partially offset by a $7.3 million increase in credit valuation adjustments on derivatives and a $2.4 million increase in impairment related to mortgage servicing rights.
    • Non-interest expense included $3.0 million in merger-related expense and other non-core items, a decrease of $8.3 million from the fourth quarter of 2019. Excluding these non-core items, core non-interest expense increased $4.0 million, or 2%, on a linked quarter basis.
  • The Company's reported and cash net interest margins were down 4 and 2 basis points from the prior quarter at 3.17% and 3.06%, respectively. The lower net interest margin was primarily the result of a 20 basis point decrease in loan yield somewhat offset by a 13 basis point decline in the cost of interest-bearing liabilities.
  • Effective January 1, 2020, the Company adopted the current expected credit loss (CECL) methodology for estimating its credit losses, which resulted in an $82.3 million increase in the allowance for expected credit losses, increasing the allowance coverage of total loans and leases from 0.68% to 1.02% upon adoption. As of March 31, 2020, the allowance for expected credit losses totaled $305.0 million, or 1.24% of total loans and leases, and covered 172% of non-performing loans.
  • The provision for expected credit losses, using the baseline scenario published by a nationally recognized service dated March 27, 2020 (adjusted for alternative scenarios), totaled $69.0 million compared to $8.2 million in the prior quarter. The provision for expected credit losses was impacted by both the CECL methodology and the expected impact of the COVID-19 pandemic on future losses.
  • Net charge-offs to average loans on an annualized basis increased 5 basis points to 0.16% compared to the prior quarter. Non-performing assets to total assets were 0.60% compared to 0.54% in the prior quarter.
  • Capital ratios remain strong. There were no share repurchases in the first quarter of 2020 due to the pending merger with First Horizon National Corporation.

COVID-19 Operational Update

  • The Company took early action by executing its proven business continuity plan to protect the health and welfare of its associates and to mitigate disruption.
  • The Company is operating 181 branches today, with only seven closed. There are approximately 2,000 associates working remotely, which is almost 60% of our total workforce.
  • We have modified our health care benefits plans to provide additional assistance during the COVID-19 pandemic. Additionally, we are offering pandemic benefits and bonus pay to eligible associates.
  • The Bank has established client assistance programs, including a payment forbearance plan that is available to assist consumer and commercial clients impacted by COVID-19, upon request. The Company is also waiving and reversing certain fees for impacted clients.
  • The Company is participating in the Coronavirus Aid, Relief and Economic Security Act ("CARES") Act. As of April 16, 2020, the Company had processed nearly 9,000 loan applications for the SBA Paycheck Protection Program, representing a total of $1.86 billion. The Company has secured funding for 92% of the funds applied for, funding payroll for more than 200,000 people. The Company remains ready to continue to fund eligible client requests if Congress appropriates additional funds.

 

Table A - Summary Financial Results

(Dollars in thousands, except per share data)













For the Three Months Ended


3/31/2020



12/31/2019


% Change


3/31/2019


% Change

GAAP BASIS:











Income available to common shareholders

$

32,827




$

78,120



(58.0)



$

96,533



(66.0)


Earnings per common share - diluted

0.62




1.48



(58.1)



1.75



(64.6)













Average loans and leases, net of unearned income

$

24,153,182




$

23,830,962



1.4



$

22,599,686



6.9


Average total deposits

25,454,630




25,227,462



0.9



23,678,400



7.5


Net interest margin (TE) (1)

3.17


%


3.21


%



3.59


%













Total revenues

$

294,998




$

293,842



0.4



$

302,993



(2.6)


Total non-interest expense

177,427




181,723



(2.4)



158,753



11.8


Efficiency ratio

60.1


%


61.8


%



52.4


%


Return on average assets

0.46




1.03





1.32




Return on average common equity

3.21




7.58





9.85















NON-GAAP BASIS (2):











Core revenues

$

294,998




$

293,828



0.4



$

302,993



(2.6)


Core non-interest expense

174,416




170,380



2.4



161,230



8.2


Core earnings per common share - diluted

0.67




1.59



(57.9)



1.72



(61.0)


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

57.4


%


56.2


%



51.3


%


Core return on average assets

0.49




1.10





1.29




Core return on average common equity

3.47




8.13





9.66




Core return on average tangible common equity

5.53




12.39





15.03




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

3.06




3.08





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 $4.1 million, or 2%, on a linked quarter basis. The decrease in net interest income reflects a 4 basis point decrease in the net interest margin to 3.17% compared to 3.21% in the prior quarter. The lower net interest margin was primarily the result of a 20 basis point decline in loan yield somewhat offset by a 13 basis point decline in the cost of interest-bearing liabilities. The decrease in loan yield was primarily attributable to the repricing of variable rate loans as a result of recent cuts to the targeted federal funds rate and the corresponding impact to LIBOR. Additionally, the loan yield was impacted by lower acquired loan accretion, partially the result of CECL implementation, as well as lower pay-offs in the acquired loan portfolio during the first quarter. The decline in the cost of interest-bearing liabilities was primarily attributable to recent interest rate cuts.

The provision for expected credit losses under the CECL methodology totaled $69.0 million compared to $8.2 million in the prior quarter under the incurred loss methodology. The provision for expected credit losses was impacted by both the CECL methodology and the expected impact of the COVID-19 pandemic on future losses. Net charge-offs to average loans on an annualized basis increased 5 basis points to 0.16% when compared to the prior quarter.

Non-interest income increased $5.3 million, or 9%, on a linked quarter basis, primarily the result of a $7.9 million increase in mortgage income. This increase was partially offset by a $0.7 million decrease in title revenue, a $0.5 million decrease in ATM and debit card fee income, and a $0.4 million decrease in service charges on deposit accounts.

Non-interest expense decreased $4.3 million, or 2%, compared to the linked quarter. Professional services expense decreased $10.9 million and salaries and employee benefits expense decreased $4.4 million when comparing the quarters. These decreases were partially offset by a $7.3 million increase in credit valuation adjustments on derivatives, a $2.4 million increase in impairment on mortgage servicing rights, and a $0.7 million increase in credit and other loan-related expense. Non-interest expense included $3.0 million in merger-related expense and other non-core items, a decrease of $8.3 million from the fourth quarter of 2019. Excluding these non-core items, total core non-interest expense increased $4.0 million, or 2%, on a linked quarter basis.

On a linked quarter basis, the efficiency ratio improved to 60.1% from 61.8%, while the non-GAAP core tangible efficiency ratio increased to 57.4% compared to 56.2%. 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



3/31/2020


12/31/2019


%
Change


3/31/2019


%
Change

PERIOD-END BALANCES:














Total loans and leases, net of unearned income

$

24,541,632




$

24,021,499




2.2



$

22,968,295




6.9



Total deposits

25,526,237




25,219,349




1.2



24,092,062




6.0
















ASSET QUALITY RATIOS:














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

0.33

%



0.28

%





0.20

%





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

0.04




0.01






0.02






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

0.60




0.54






0.58






Classified assets to total assets (3)

0.94




0.84






1.01



















CAPITAL RATIOS:














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

9.13

%



9.24

%





9.01

%





Tier 1 leverage ratio (6)

9.93




9.90






9.67






Total risk-based capital ratio (6)

12.48




12.43






12.33



















PER COMMON SHARE DATA:














Book value

$

78.27




$

78.37




(0.1)



$

73.50




6.5



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

53.70




53.63




0.1



49.48




8.5



Closing stock price

36.16




74.83




(51.7)



71.71




(49.6)



Cash dividends

0.47




0.45




4.4



0.43




9.3
















(1)

For purposes of this table, for periods prior to the three months ended March 31, 2020, past due and non-accrual loan amounts exclude purchased credit deteriorated (PCD) loans (formerly purchased credit impaired loans), even if contractually past due or if the Company did not expect to receive payment in full, as the Company was accreting interest income over the expected life of the loans. For the three months ended March 31, 2020, NPAs included $16.4 million in PCD loans, of which $14.7 million were non-accrual, and loans 30-89 days past due included $4.0 million in PCD 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 loans rated substandard or worse, non-performing mortgage and consumer loans, and OREO and foreclosed property and include PCD loans. Classified assets were $302.6 million, $265.2 million and $314.6 million at March 31, 2020, December 31, 2019, and March 31, 2019, 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, 2020 are preliminary.


Loans and Leases

On a linked quarter basis, total loans and leases increased $520.1 million, or 9% annualized, to $24.5 billion at March 31, 2020. Growth during the first quarter of 2020 was strongest in the Corporate Asset Finance (equipment financing and leasing business) and Energy groups (reserve-based and midstream lending), as well as in the Houston, New Orleans, and New York markets.

Energy loans were 5.4% of total loans outstanding as of March 31, 2020. The E&P (60%) and midstream (38%) space comprise 98% of the Company's energy portfolio. The Company has had no new loan commitments in the past five years to the offshore or the oilfield services space.

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


3/31/2020


12/31/2019


3/31/2019


$

%


Annualized


$

%


3/31/2020

12/31/2019

Commercial loans and leases

$

17,140,864



$

16,611,633



$

15,628,158



529,231


3.2



12.8

%


1,512,706


9.7



69.8

%

69.2

%

Residential mortgage loans

4,849,119



4,739,075



4,415,267



110,044


2.3



9.3

%


433,852


9.8



19.8

%

19.7

%

Consumer and other loans

2,551,649



2,670,791



2,924,870



(119,142)


(4.5)



(17.9)

%


(373,221)


(12.8)



10.4

%

11.1

%

Total loans and leases

$

24,541,632



$

24,021,499



$

22,968,295



520,133


2.2



8.7

%


1,573,337


6.9



100.0

%

100.0

%

Investment Securities

On a linked quarter basis, the investment portfolio decreased $23.4 million, or 2.3% annualized, to $4.1 billion, as a result of net principal payments, offset by fair value adjustments on AFS securities. At March 31, 2020, 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 2.0 years at March 31, 2020, down from 2.7 years at December 31, 2019, and a $133.0 million unrealized gain at March 31, 2020, up from $57.8 million at December 31, 2019. The average yield on investment securities increased five basis points to 2.56% in the first quarter of 2020. The investment portfolio primarily consists of government agency securities. Municipal securities comprised 8% of total investments at March 31, 2020.

Deposits

Total deposits increased $306.9 million, or 5% annualized, to $25.5 billion at March 31, 2020. Growth during the first quarter of 2020 was strongest in the Energy group (primarily reserve-based lending) and the Palm Beach/Broward, Southwest Louisiana, and Birmingham markets.

Table D - Period-End Deposits

(Dollars in thousands)








Linked Qtr Change


Year/Year Change


Mix


3/31/2020


12/31/2019


3/31/2019


$

%

Annualized


$

%


3/31/2020

12/31/2019

Non-interest-bearing deposits

$

6,628,901



$

6,319,806



$

6,448,613



309,095


4.9


19.7

%


180,288


2.8



26.0

%

25.1

%

Interest-bearing demand deposits

5,046,434



4,821,252



4,452,966



225,182


4.7


18.8

%


593,468


13.3



19.8

%

19.1

%

Money market accounts

9,305,923



9,121,283



8,348,509



184,640


2.0


8.1

%


957,414


11.5



36.4

%

36.2

%

Savings accounts

703,862



683,366



770,754



20,496


3.0


12.1

%


(66,892)


(8.7)



2.8

%

2.7

%

Time deposits

3,841,117



4,273,642



4,071,220



(432,525)


(10.1)


(40.7)

%


(230,103)


(5.7)



15.0

%

16.9

%

Total deposits

$

25,526,237



$

25,219,349



$

24,092,062



306,888


1.2


4.9

%


1,434,175


6.0



100.0

%

100.0

%

Asset Quality

Credit quality remained strong. Non-performing assets to total assets were 0.60% at March 31, 2020, compared to 0.54% in the prior quarter. Loans 30-89 days past due and still accruing represented 0.33% of total loans and leases compared to 0.28% in the prior quarter. The increase in non-performing assets and past due loans was partially driven by the implementation of CECL which requires purchased credit deteriorated loans to be classified as non-accrual or past due based on performance. As a percentage of average loans and leases, annualized net charge-offs for the quarter increased five basis points on a linked quarter basis to 0.16%.

The allowance for expected credit losses, which includes the reserve for unfunded commitments, was $163.2 million at December 31, 2019. Upon adoption of CECL on January 1, 2020, the Company recognized an increase in the allowance of $82.3 million, as a cumulative effect adjustment, with a corresponding after-tax decrease of $67.6 million in retained earnings. At March 31, 2020, the allowance for expected credit losses, totaled $305.0 million, or 1.24% of total loans and leases. The increase in the allowance reflects a higher provision for expected credit losses in the first quarter of 2020 in response to the expected impact of the COVID-19 pandemic on future losses. The allowance coverage of non-performing loans was 171.8% at March 31, 2020, compared to 114.8% at December 31, 2019.

Given the on-going and uncertain impact to the economy of the current COVID-19 pandemic, the Company continues to monitor its portfolio as the potential exists for adverse events to impact credit quality trends.

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

Capital Position

At March 31, 2020, the non-GAAP tangible common equity ratio was 9.13%, down 11 basis points compared to December 31, 2019, and the preliminary Tier 1 leverage ratio was 9.93%, up 3 basis points compared to December 31, 2019. The preliminary calculation of the total risk-based capital ratio at March 31, 2020, was 12.48%, up 5 basis points compared to December 31, 2019. As part of its response to the impact of COVID-19, on March 31, 2020, the regulatory agencies issued an interim final rule that provided the option to temporarily delay the effects of CECL on regulatory capital for two years, followed by a three-year transition period. The Company's preliminary regulatory capital ratios have been calculated in accordance with this interim final rule.

At March 31, 2020, book value per common share was $78.27, down $0.10 per share, compared to December 31, 2019. Tangible book value per common share was $53.70, up $0.07 per share, compared to the prior quarter. Based on the closing stock price of the Company's common stock of $32.28 per share on April 16, 2020, this price equated to 0.41 times March 31, 2020 book value per common share and 0.60 times March 31, 2020 tangible book value per common share.

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

Common Stock  On January 28, 2020, the Company announced a quarterly cash dividend of $0.47 per common share, an increase of approximately 4% compared to the common dividend paid on January 24, 2020. The dividend was paid on April 1, 2020 to shareholders of record as of March 13, 2020.

Preferred Stock  On April 3, 2020, the Company announced a quarterly cash dividend of $0.4125 per depositary share of Series C Preferred Stock that is payable on May 1, 2020 to shareholders of record as of April 16, 2020. On April 3, 2020, the Company also announced a quarterly cash dividend of $0.7625 per depositary share of Series D Preferred Stock that is payable on May 1, 2020 to shareholders of record as of April 16, 2020.

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.  At March 31, 2020, the Company had approximately 1,165,000 remaining shares that could be repurchased under the current Board-approved plan. During the first quarter of 2020, the Company did not repurchase any common shares.  No further stock repurchases are expected due to the pending merger with First Horizon National Corporation.

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, commercial leasing and equipment financing, 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 $1.7 billion, based on the closing stock price on April 16, 2020.

The following 9 investment firms 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.
  • Raymond James & Associates, Inc.
  • Piper Sandler
  • Stephens, Inc.
  • SunTrust Robinson-Humphrey

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, 2019, and in other documents, including the Company's proxy statement in the S-4 Registration Statement filed by First Horizon in connection with our pending merger, 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:

3/31/2020


12/31/2019


%
Change


3/31/2019


%
Change


Net interest income

$

230,342




$

234,490




(1.8)



$

250,484




(8.0)



Net interest income (TE) (1)

231,653




235,858




(1.8)



251,833




(8.0)



Total revenues

294,998




293,842




0.4



302,993




(2.6)



Provision for expected credit losses

68,971




8,153




746.0



13,763




401.1



Non-interest expense

177,427




181,723




(2.4)



158,753




11.8



Net income available to common shareholders

32,827




78,120




(58.0)



96,533




(66.0)
















PER COMMON SHARE DATA:














Earnings available to common shareholders - basic

$

0.62




$

1.49




(58.4)



$

1.76




(64.8)



Earnings available to common shareholders - diluted

0.62




1.48




(58.1)



1.75




(64.6)



Core earnings (Non-GAAP) (2)

0.67




1.59




(57.9)



1.72




(61.0)



Book value

78.27




78.37




(0.1)



73.50




6.5



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

53.70




53.63




0.1



49.48




8.5



Closing stock price

36.16




74.83




(51.7)



71.71




(49.6)



Cash dividends

0.47




0.45




4.4



0.43




9.3
















KEY RATIOS AND OTHER DATA (6):










Net interest margin (TE) (1)

3.17

%



3.21

%





3.59

%





Efficiency ratio

60.1




61.8






52.4






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

57.4




56.2






51.3






Return on average assets

0.46




1.03






1.32






Return on average common equity

3.21




7.58






9.85






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

5.53




12.39






15.03






Effective tax rate

25.1




20.6






23.3






Full-time equivalent employees

3,399




3,401






3,384



















CAPITAL RATIOS:














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

9.13

%



9.24

%





9.01

%





Tangible common equity to risk-weighted assets (3)

 

10.44




10.59






10.60






Tier 1 leverage ratio (4)

9.93




9.90






9.67






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

10.43




10.52






10.73






Tier 1 capital ratio (4)

11.28




11.38






11.25






Total risk-based capital ratio (4)

12.48




12.43






12.33






Common stock dividend payout ratio

75.3




30.2






24.3






Classified assets to Tier 1 capital (7)

9.9




8.8






11.2



















ASSET QUALITY RATIOS:










Non-performing assets to total assets (5)

0.60

%



0.54

%





0.58

%





Allowance for expected credit losses to total loans and leases

1.17




0.61






0.62






Net charge-offs to average loans (annualized)

0.16




0.11






0.13






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

0.79




0.71






0.79



















(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, 2020 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. The Company's adoption of CECL on January 1, 2020 resulted in a change in the accounting for purchased credit impaired loans, which are considered purchased credit deteriorated (PCD) loans under CECL. Prior to January 1, 2020, past due and non-accrual loan amounts excluded purchased credit impaired loans, even if contractually past due or if the Company did not expect to receive payment in full, as the Company was accreting interest income over the expected life of the loans. For the three months ended March 31, 2020, NPAs included $16.4 million in PCD loans, of which $14.7 million were non-accrual, and loans 30-89 days past due included $4.0 million in PCD 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 PCD loans.

 

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


3/31/2020


12/31/2019


$

%


9/30/2019


6/30/2019


3/31/2019


$

%

Interest income

$

302,929



$

314,779



(11,850)


(3.8)



$

333,178



$

335,967



$

326,084



(23,155)


(7.1)


Interest expense

72,587



80,289



(7,702)


(9.6)



83,845



80,628



75,600



(3,013)


(4.0)


Net interest income

230,342



234,490



(4,148)


(1.8)



249,333



255,339



250,484



(20,142)


(8.0)


Provision for expected credit losses

68,971



8,153



60,818


746.0



8,986



10,755



13,763



55,208


401.1


Net interest income after provision for expected credit losses

161,371



226,337



(64,966)


(28.7)



240,347



244,584



236,721



(75,350)


(31.8)


Mortgage income

23,245



15,305



7,940


51.9



17,432



18,444



11,849



11,396


96.2


Service charges on deposit accounts

12,525



12,970



(445)


(3.4)



13,209



12,847



12,810



(285)


(2.2)


Title revenue

5,936



6,638



(702)


(10.6)



7,170



6,895



5,225



711


13.6


Broker commissions

2,127



2,483



(356)


(14.3)



1,800



2,044



1,953



174


8.9


ATM/debit card fee income

2,838



3,309



(471)


(14.2)



2,948



3,032



2,582



256


9.9


Income from bank owned life insurance

1,822



1,887



(65)


(3.4)



1,760



1,750



1,797



25


1.4


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



8



(8)


(100.0)



27



(1,014)







Trust department income

4,226



4,222



4


0.1



4,281



4,388



4,167



59


1.4


Other non-interest income

11,937



12,530



(593)


(4.7)



15,047



10,439



12,126



(189)


(1.6)


Total non-interest income

64,656



59,352



5,304


8.9



63,674



58,825



52,509



12,147


23.1


Salaries and employee benefits

102,545



106,941



(4,396)


(4.1)



103,257



103,375



98,296



4,249


4.3


Occupancy and equipment

19,984



20,894



(910)


(4.4)



21,316



18,999



18,564



1,420


7.6


Amortization of acquisition intangibles

4,187



4,259



(72)


(1.7)



4,410



4,786



5,009



(822)


(16.4)


Computer services expense

10,167



9,930



237


2.4



9,638



9,383



9,157



1,010


11.0


Professional services

5,322



16,267



(10,945)


(67.3)



6,323



6,244



4,450



872


19.6


Credit and other loan-related expense

3,643



2,916



727


24.9



4,532



4,141



2,859



784


27.4


Other non-interest expense

31,579



20,516



11,063


53.9



23,186



22,690



20,418



11,161


54.7


Total non-interest expense

177,427



181,723



(4,296)


(2.4)



172,662



169,618



158,753



18,674


11.8


Income before income taxes

48,600



103,966



(55,366)


(53.3)



131,359



133,791



130,477



(81,877)


(62.8)


Income tax expense

12,175



21,390



(9,215)


(43.1)



31,509



32,193



30,346



(18,171)


(59.9)


Net income

36,425



82,576



(46,151)


(55.9)



99,850



101,598



100,131



(63,706)


(63.6)


Less: Preferred stock dividends

3,598



4,456



(858)


(19.3)



3,599



949



3,598





Net income available to common shareholders

$

32,827



$

78,120



(45,293)


(58.0)



$

96,251



$

100,649



$

96,533



(63,706)


(66.0)


















Income available to common shareholders - basic

$

32,827



$

78,120



(45,293)


(58.0)



$

96,251



$

100,649



$

96,533



(63,706)


(66.0)


Less: Earnings allocated to unvested restricted stock

367



752



(385)


(51.2)



874



999



933



(566)


(60.7)


Earnings allocated to common shareholders

$

32,460



$

77,368



(44,908)


(58.0)



$

95,377



$

99,650



$

95,600



(63,140)


(66.0)


















Earnings per common share - basic

$

0.62



$

1.49



(0.87)


(58.4)



$

1.83



$

1.87



$

1.76



(1.14)


(64.8)


















Earnings per common share - diluted

0.62



1.48



(0.86)


(58.1)



1.82



1.86



1.75



(1.13)


(64.6)


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

0.05



0.11



(0.06)


100.0





0.01



(0.03)



0.08


266.7


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

$

0.67



$

1.59



(0.92)


(57.9)



$

1.82



$

1.87



$

1.72



(1.05)


(61.0)


















NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
















Weighted average common shares outstanding - basic

51,979



51,835



144


0.3



51,984



53,345



54,177



(2,198)


(4.1)


Weighted average common shares outstanding - diluted

52,196



52,142



54


0.1



52,292



53,674



54,539



(2,343)


(4.3)


Book value shares (period end)

52,618



52,420



198


0.4



52,266



52,805



54,551



(1,933)


(3.5)


















(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

3/31/2020


12/31/2019


$


%


9/30/2019


6/30/2019


3/31/2019


$


%

Cash and due from banks

$

279,388



$

289,794



(10,406)



(3.6)



$

353,346



$

289,502



$

280,680



(1,292)



(0.5)


Interest-bearing deposits in other banks

665,674



604,929



60,745



10.0



577,587



499,813



391,217



274,457



70.2


Total cash and cash equivalents

945,062



894,723



50,339



5.6



930,933



789,315



671,897



273,165



40.7


Investment securities available for sale

3,914,960



3,933,360



(18,400)



(0.5)



4,238,082



4,455,308



4,873,778



(958,818)



(19.7)


Investment securities held to maturity

177,960



182,961



(5,001)



(2.7)



185,007



192,917



198,958



(20,998)



(10.6)


Total investment securities

4,092,920



4,116,321



(23,401)



(0.6)



4,423,089



4,648,225



5,072,736



(979,816)



(19.3)


Mortgage loans held for sale

207,845



213,357



(5,512)



(2.6)



255,276



187,987



128,451



79,394



61.8


Loans and leases, net of unearned income

24,541,632



24,021,499



520,133



2.2



23,676,537



23,355,311



22,968,295



1,573,337



6.9


Allowance for loan and lease losses

(286,685)



(146,588)



140,097



95.6



(146,235)



(146,386)



(142,966)



143,719



100.5


Loans and leases, net

24,254,947



23,874,911



380,036



1.6



23,530,302



23,208,925



22,825,329



1,429,618



6.3


Premises and equipment, net

297,551



296,688



863



0.3



298,309



295,897



297,342



209



0.1


Goodwill and other intangible assets

1,307,673



1,312,701



(5,028)



(0.4)



1,314,676



1,317,151



1,319,992



(12,319)



(0.9)


Other assets

1,133,985



1,004,749



129,236



12.9



982,013



999,032



944,442



189,543



20.1


Total assets

$

32,239,983



$

31,713,450



526,533



1.7



$

31,734,598



$

31,446,532



$

31,260,189



979,794



3.1




















LIABILITIES AND SHAREHOLDERS' EQUITY













Non-interest-bearing deposits

$

6,628,901



$

6,319,806



309,095



4.9



$

6,518,783



$

6,474,394



$

6,448,613



180,288



2.8


Interest-bearing demand deposits

5,046,434



4,821,252



225,182



4.7



4,503,353



4,610,577



4,452,966



593,468



13.3


Savings and money market accounts

10,009,785



9,804,649



205,136



2.1



9,325,761



8,895,463



9,119,263



890,522



9.8


Time deposits

3,841,117



4,273,642



(432,525)



(10.1)



4,629,388



4,314,897



4,071,220



(230,103)



(5.7)


Total deposits

25,526,237



25,219,349



306,888



1.2



24,977,285



24,295,331



24,092,062



1,434,175



6.0


Short-term borrowings

218,000





218,000



100.0



275,000



813,000



845,000



(627,000)



(74.2)


Securities sold under agreements to repurchase

172,747



204,208



(31,461)



(15.4)



223,049



184,507



261,131



(88,384)



(33.8)


Trust preferred securities

120,110



120,110







120,110



120,110



120,110






Other long-term debt

1,168,062



1,223,577



(55,515)



(4.5)



1,274,092



1,254,649



1,355,345



(187,283)



(13.8)


Other liabilities

687,720



609,472



78,248



12.8



581,762



540,935



444,710



243,010



54.6


Total liabilities

27,892,876



27,376,716



516,160



1.9



27,451,298



27,208,532



27,118,358



774,518



2.9


Total shareholders' equity

4,347,107



4,336,734



10,373



0.2



4,283,300



4,238,000



4,141,831



205,276



5.0


Total liabilities and shareholders' equity

$

32,239,983



$

31,713,450



526,533



1.7



$

31,734,598



$

31,446,532



$

31,260,189



979,794



3.1


 

TABLE 3 Continued - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)



















AVERAGE BALANCES


Linked Qtr Change








Year/Year Change

ASSETS

3/31/2020


12/31/2019


$


%


9/30/2019


6/30/2019


3/31/2019


$


%

Cash and due from banks

$

304,733



$

294,487



10,246



3.5



$

272,273



$

275,917



$

291,659



13,074



4.5


Interest-bearing deposits in other banks

796,980



756,223



40,757



5.4



531,665



436,948



332,638



464,342



139.6


Total cash and cash equivalents

1,101,713



1,050,710



51,003



4.9



803,938



712,865



624,297



477,416



76.5


Investment securities available for sale

3,949,555



4,095,950



(146,395)



(3.6)



4,365,558



4,650,757



4,816,855



(867,300)



(18.0)


Investment securities held to maturity

180,689



184,272



(3,583)



(1.9)



189,400



195,639



202,601



(21,912)



(10.8)


Total investment securities

4,130,244



4,280,222



(149,978)



(3.5)



4,554,958



4,846,396



5,019,456



(889,212)



(17.7)


Mortgage loans held for sale

189,597



239,346



(49,749)



(20.8)



209,778



159,931



95,588



94,009



98.3


Loans and leases, net of unearned income

24,153,182



23,830,962



322,220



1.4



23,522,892



23,120,689



22,599,686



1,553,496



6.9


Allowance for loan and lease losses

(231,914)



(147,641)



(84,273)



57.1



(148,203)



(145,854)



(140,915)



(90,999)



64.6


Loans and leases, net

23,921,268



23,683,321



237,947



1.0



23,374,689



22,974,835



22,458,771



1,462,497



6.5


Premises and equipment, net

299,096



299,607



(511)



(0.2)



298,055



298,119



299,741



(645)



(0.2)


Goodwill and other intangible assets

1,310,237



1,313,169



(2,932)



(0.2)



1,315,359



1,318,182



1,322,288



(12,051)



(0.9)


Other assets

1,033,984



971,873



62,111



6.4



997,514



961,494



1,013,359



20,625



2.0


Total assets

$

31,986,139



$

31,838,248



147,891



0.5



$

31,554,291



$

31,271,822



$

30,833,500



1,152,639



3.7




















LIABILITIES AND SHAREHOLDERS' EQUITY













Non-interest-bearing deposits

$

6,540,532



$

6,501,529



39,003



0.6



$

6,425,026



$

6,442,217



$

6,271,313



269,219



4.3


Interest-bearing demand deposits

4,834,171



4,526,694



307,477



6.8



4,451,579



4,488,691



4,458,634



375,537



8.4


Savings and money market accounts

9,930,353



9,708,541



221,812



2.3



9,188,186



9,014,822



9,089,099



841,254



9.3


Time deposits

4,149,574



4,490,698



(341,124)



(7.6)



4,523,555



4,156,974



3,859,354



290,220



7.5


Total deposits

25,454,630



25,227,462



227,168



0.9



24,588,346



24,102,704



23,678,400



1,776,230



7.5


Short-term borrowings

19,626



118,557



(98,931)



(83.4)



606,739



782,516



859,576



(839,950)



(97.7)


Securities sold under agreements to repurchase

207,039



207,478



(439)



(0.2)



187,305



214,090



291,643



(84,604)



(29.0)


Trust preferred securities

120,110



120,110







120,110



120,110



120,110






Other long-term debt

1,221,833



1,265,077



(43,244)



(3.4)



1,240,382



1,345,575



1,343,752



(121,919)



(9.1)


Other liabilities

623,868



582,643



41,225



7.1



545,838



463,803



434,516



189,352



43.6


Total liabilities

27,647,106



27,521,327



125,779



0.5



27,288,720



27,028,798



26,727,997



919,109



3.4


Total shareholders' equity

4,339,033



4,316,921



22,112



0.5



4,265,571



4,243,024



4,105,503



233,530



5.7


Total liabilities and shareholders' equity

$

31,986,139



$

31,838,248



147,891



0.5



$

31,554,291



$

31,271,822



$

30,833,500



1,152,639



3.7


 

Table 4 - IBERIABANK CORPORATION

LOANS AND ASSET QUALITY DATA

(Dollars in thousands)














Linked Qtr Change








Year/Year Change

LOANS

3/31/2020


12/31/2019


$


%


9/30/2019


6/30/2019


3/31/2019


$


%

Commercial loans and leases:


















Real estate- construction

$

1,322,627



$

1,321,663



964



0.1



$

1,330,014



$

1,342,984



$

1,219,647



102,980



8.4


Real estate- owner-occupied (1)

2,424,139



2,475,326



(51,187)



(2.1)



2,468,061



2,373,143



2,408,079



16,060



0.7


Real estate- non-owner occupied

6,484,257



6,267,106



217,151



3.5



6,011,681



6,102,143



6,147,864



336,393



5.5


Commercial and industrial (6)

6,909,841



6,547,538



362,303



5.5



6,490,125



6,161,759



5,852,568



1,057,273



18.1


Total commercial loans and leases

17,140,864



16,611,633



529,231



3.2



16,299,881



15,980,029



15,628,158



1,512,706



9.7




















Residential mortgage loans

4,849,119



4,739,075



110,044



2.3



4,649,745



4,538,194



4,415,267



433,852



9.8




















Consumer and other loans:


















Home equity

1,926,753



1,987,336



(60,583)



(3.0)



2,053,588



2,147,897



2,220,648



(293,895)



(13.2)


Other

624,896



683,455



(58,559)



(8.6)



673,323



689,191



704,222



(79,326)



(11.3)


Total consumer and other loans

2,551,649



2,670,791



(119,142)



(4.5)



2,726,911



2,837,088



2,924,870



(373,221)



(12.8)


Total loans and leases

$

24,541,632



$

24,021,499



520,133



2.2



$

23,676,537



$

23,355,311



$

22,968,295



1,573,337



6.9















Allowance for loan and lease losses

$

(286,685)



$

(146,588)



140,097



95.6



$

(146,235)



$

(146,386)



$

(142,966)



143,719



100.5


Loans and leases, net

24,254,947



23,874,911



380,036



1.6



23,530,302



23,208,925



22,825,329



1,429,618



6.3




















Reserve for unfunded commitments

(18,302)



(16,637)



1,665



10.0



(16,144)



(15,281)



(15,981)



2,321



14.5


Allowance for expected credit losses (2)

(304,987)



(163,225)



141,762



86.9



(162,379)



(161,667)



(158,947)



146,040



91.9




















ASSET QUALITY DATA

















Non-accrual loans (3)

$

166,563



$

138,905



27,658



19.9



$

153,113



$

158,992



$

148,056



18,507



12.5


Other real estate owned and foreclosed assets

15,893



27,985



(12,092)



(43.2)



27,075



28,106



30,606



(14,713)



(48.1)


Accruing loans more than 90 days past due (3)

10,963



3,257



7,706



236.6



4,790



851



4,111



6,852



166.7


Total non-performing assets (3)(4)

$

193,419



$

170,147



23,272



13.7



$

184,978



$

187,949



$

182,773



10,646



5.8




















Loans 30-89 days past due (3)

$

80,702



$

68,204



12,498



18.3



$

54,618



$

43,021



$

45,334



35,368



78.0




















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

0.60

%


0.54

%






0.58

%


0.60

%


0.58

%





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

0.79



0.71







0.78



0.80



0.79






ALLL to non-performing loans (3)(5)

161.5



103.1







92.6



91.6



94.0






ALLL to non-performing assets (3)(4)

148.2



86.2







79.1



77.9



78.2






ALLL to total loans and leases

1.17



0.61







0.62



0.63



0.62
























Quarter-to-date charge-offs

$

12,119



$

8,398



3,721



44.3



$

10,777



$

10,275



$

8,918



3,201



35.9


Quarter-to-date recoveries

(2,591)



(1,683)



908



54.0



(2,336)



(2,218)



(1,586)



1,005



63.4


Quarter-to-date net charge-offs

$

9,528



$

6,715



2,813



41.9



$

8,441



$

8,057



$

7,332



2,196



30.0




















Net charge-offs to average loans (annualized)

0.16

%


0.11

%






0.14

%


0.14

%


0.13

%






(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) Effective January 1, 2020, the Company adopted the CECL accounting guidance, which resulted in an $82.3 million increase in the allowance upon adoption.

(3) Amounts are not comparative due to the Company's adoption of CECL on January 1, 2020. The adoption resulted in a change in the accounting for purchased credit impaired loans, which are considered purchased credit deteriorated (PCD) loans under CECL. Prior to January 1, 2020, past due and non-accrual loan amounts excluded purchased credit impaired loans, even if contractually past due or if the Company did not expect to receive payment in full, as the Company was accreting interest income over the expected life of the loans. For the three months ended March 31, 2020, NPAs included $16.4 million in PCD loans, of which $14.7 million were non-accrual, and loans 30-89 days past due included $4.0 million in PCD 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


3/31/2020


12/31/2019


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

$

16,791,766


$

188,063


4.52

%


$

16,441,658


$

195,487


4.74

%


(22)

Residential mortgage loans

4,800,131


50,457


4.20



4,706,745


50,879


4.32



(12)

Consumer and other loans

2,561,285


33,226


5.22



2,682,559


36,198


5.35



(13)

Total loans and leases

24,153,182


271,746


4.53



23,830,962


282,564


4.73



(20)

Mortgage loans held for sale

189,597


1,678


3.54



239,346


2,132


3.56



(2)

Investment securities (2)

4,035,469


25,403


2.56



4,218,720


25,926


2.51



5

Other earning assets

960,762


4,102


1.72



937,076


4,157


1.76



(4)

Total earning assets

29,339,010


302,929


4.17



29,226,104


314,779


4.30



(13)

Allowance for loan and lease losses

(231,914)





(147,641)






Non-earning assets

2,879,043





2,759,785






Total assets

$

31,986,139





$

31,838,248
















LIABILITIES AND SHAREHOLDERS' EQUITY









Interest-bearing liabilities:










Interest-bearing demand deposits

$

4,834,171


$

9,962


0.83

%


$

4,526,694


$

10,091


0.88

%


(5)

Savings and money market accounts

9,930,353


31,244


1.27



9,708,541


34,422


1.41



(14)

Time deposits

4,149,574


22,470


2.18



4,490,698


25,860


2.28



(10)

Total interest-bearing deposits (3)

18,914,098


63,676


1.35



18,725,933


70,373


1.49



(14)

Short-term borrowings

226,665


266


0.47



326,035


946


1.15



(68)

Long-term debt

1,341,943


8,645


2.59



1,385,187


8,970


2.57



2

Total interest-bearing liabilities

20,482,706


72,587


1.43



20,437,155


80,289


1.56



(13)

Non-interest-bearing deposits

6,540,532





6,501,529






Non-interest-bearing liabilities

623,868





582,643






Total liabilities

27,647,106





27,521,327






Total shareholders' equity

4,339,033





4,316,921






Total liabilities and shareholders' equity

$

31,986,139





$

31,838,248
















Net interest income/Net interest spread

$

230,342


2.74

%



$

234,490


2.74

%


Taxable equivalent benefit


1,311


0.02

%



1,368


0.02



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


$

231,653


3.17

%



$

235,858


3.21

%


(4)


(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, 2020 and December 31, 2019  were 1.01% and 1.11%, respectively.


















































 

TABLE 5 Continued - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)














For the Three Months Ended


9/30/2019


6/30/2019


3/31/2019

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

$

16,155,962


$

205,350


5.06

%


$

15,766,423


$

205,093


5.24

%


$

15,253,655


$

194,510


5.19

%

Residential mortgage loans

4,588,549


50,939


4.44



4,482,150


49,388


4.41



4,385,634


47,829


4.36


Consumer and other loans

2,778,381


40,501


5.78



2,872,116


42,205


5.89



2,960,397


42,540


5.83


Total loans and leases

23,522,892


296,790


5.03



23,120,689


296,686


5.16



22,599,686


284,879


5.11


Mortgage loans held for sale

209,778


1,936


3.69



159,931


1,588


3.97



95,588


1,054


4.41


Investment securities (2)

4,493,789


29,932


2.71



4,853,858


33,803


2.83



5,052,922


36,125


2.90


Other earning assets

733,305


4,520


2.44



639,232


3,890


2.44



533,745


4,026


3.06


Total earning assets

28,959,764


333,178


4.59



28,773,710


335,967


4.70



28,281,941


326,084


4.68


Allowance for loan and lease losses

(148,203)





(145,854)





(140,915)




Non-earning assets

2,742,730





2,643,966





2,692,474




Total assets

$

31,554,291





$

31,271,822





$

30,833,500
















LIABILITIES AND SHAREHOLDERS' EQUITY











Interest-bearing liabilities:












Interest-bearing demand deposits

$

4,451,579


$

11,305


1.01

%


$

4,488,691


$

11,623


1.04

%


$

4,458,634


$

11,396


1.04

%

Savings and money market accounts

9,188,186


32,959


1.42



9,014,822


30,845


1.37



9,089,099


28,762


1.28


Time deposits

4,523,555


26,489


2.32



4,156,974


23,398


2.26



3,859,354


20,077


2.11


Total interest-bearing deposits (3)

18,163,320


70,753


1.55



17,660,487


65,866


1.50



17,407,087


60,235


1.40


Short-term borrowings

794,044


3,880


1.94



996,606


5,197


2.09



1,151,219


5,716


2.01


Long-term debt

1,360,492


9,212


2.69



1,465,685


9,565


2.62



1,463,862


9,649


2.67


Total interest-bearing liabilities

20,317,856


83,845


1.64



20,122,778


80,628


1.61



20,022,168


75,600


1.53


Non-interest-bearing deposits

6,425,026





6,442,217





6,271,313




Non-interest-bearing liabilities

545,838





463,803





434,516




Total liabilities

27,288,720





27,028,798





26,727,997




Total shareholders' equity

4,265,571





4,243,024





4,105,503




Total liabilities and shareholders' equity

$

31,554,291





$

31,271,822





$

30,833,500
















Net interest income/Net interest spread


$

249,333


2.95

%



$

255,339


3.09

%



$

250,484


3.15

%

Taxable equivalent benefit


1,320


0.02




1,338


0.02




1,349


0.02


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


$

250,653


3.44

%



$

256,677


3.57

%



$

251,833


3.59

%













(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, June 30, 2019, and March 31, 2019 were 1.14%, 1.10% and 1.03%, respectively.

 

Table 6 - IBERIABANK CORPORATION

LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS

(Dollars in millions)






















For the Three Months Ended


3/31/2`020


12/31/2019


9/30/2019


6/30/2019


3/31/2019

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

$

220


$

19,936


4.43

%


$

225


$

19,374


4.60

%


$

229


$

18,721


4.86

%


$

225


$

17,984


5.00

%


$

213


$

17,192


5.02

%

Acquired loans

52


4,217


4.94



58


4,457


5.18



68


4,802


5.62



72


5,137


5.64



72


5,408


5.35


Total loans and leases

$

272


$

24,153


4.52

%


$

283


$

23,831


4.71

%


$

297


$

23,523


5.01

%


$

297


$

23,121


5.14

%


$

285


$

22,600


5.10

%






















3/31/2020


12/31/2019


9/30/2019


6/30/2019


3/31/2019

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

$


$


%


$


$


%


$


$


%


$


$


%


$


$


%

Acquired loans

(8)


95


(0.79)



(9)


97


(0.90)



(14)


111


(1.24)



(14)


124


(1.15)



(11)


136


(0.92)


Total loans and leases

$

(8)


$

95


(0.14)

%


$

(9)


$

97


(0.17)

%


$

(14)


$

111


(0.25)

%


$

(14)


$

124


(0.25)

%


$

(11)


$

136


(0.22)

%






















3/31/2020


12/31/2019


9/30/2019


6/30/2019


3/31/2019

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

$

220


$

19,936


4.43

%


$

225


$

19,374


4.60

%


$

229


$

18,721


4.86

%


$

225


$

17,984


5.00

%


$

213


$

17,192


5.02

%

Acquired loans

44


4,312


4.15



49


4,554


4.28



54


4,913


4.38



58


5,261


4.49



61


5,544


4.43


Total loans and leases

$

264


$

24,248


4.38

%


$

274


$

23,928


4.54

%


$

283


$

23,634


4.76

%


$

283


$

23,245


4.89

%


$

274


$

22,736


4.88

%

 

Table 7 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands, except per share amounts)




















For the Three Months Ended


3/31/2020


12/31/2019


9/30/2019


Pre-tax


After-tax


Per share(2)


Pre-tax


After-tax


Per share(2)


Pre-tax


After-tax


Per share(2)

Net income

$

48,600



$

36,425



$

0.69



$

103,966



$

82,576



$

1.57



$

131,359



$

99,850



$

1.89


Less: Preferred stock dividends



3,598



0.07





4,456



0.09





3,599



0.07


Income available to common shareholders (GAAP)

$

48,600



$

32,827



$

0.62



$

103,966



$

78,120



$

1.48



$

131,359



$

96,251



$

1.82




















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















(Gain) loss on sale of investments







(14)



(11)




























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















Merger-related expense

2,734



2,157



0.04



11,321



10,828



0.21








Hazard-related expense

281



213
















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

(4)



(3)





30



23










Other non-core non-interest expense







(8)



(6)










Total non-interest expense adjustments

3,011



2,367



0.04



11,343



10,845



0.21








Income tax expense (benefit) - other



241



0.01





(5,209)



(0.10)








Core earnings (Non-GAAP)

51,611



35,435



0.67



115,295



83,745



1.59



131,359



96,251



1.82


Provision for expected credit losses(1)

68,971



52,418





8,153



6,196





8,986



6,829




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

$

120,582



$

87,853





$

123,448



$

89,941





$

140,345



$

103,080



























































For the Three Months Ended








6/30/2019


3/31/2019








Pre-tax


After-tax


Per share(2)


Pre-tax


After-tax


Per share(2)







Net income

$

133,791



$

101,598



$

1.88



$

130,477



$

100,131



$

1.82








Less: Preferred stock dividends



949



0.02





3,598



0.07








Income available to common shareholders (GAAP)

$

133,791



$

100,649



$

1.86



$

130,477



$

96,533



$

1.75


























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















Loss 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)

134,878



101,475



1.87



127,991



94,643



1.72








Provision for credit losses (1)

10,755



8,174





13,763



10,460










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

$

145,633



$

109,649





$

141,754



$

105,103











(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 gains or losses on the sale of investment securities, merger-related expenses, hazard-related expenses, including those incurred as a result of the Company's response to the COVID-19 pandemic, realized or unrealized gains or losses on former bank-owned real estate, 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


3/31/2020


12/31/2019


9/30/2019


6/30/2019


3/31/2019

Net interest income (GAAP)

$

230,342



$

234,490



$

249,333



$

255,339



$

250,484


Taxable equivalent benefit

1,311



1,368



1,320



1,338



1,349


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

231,653



235,858



250,653



256,677



251,833












Non-interest income (GAAP)

64,656



59,352



63,674



58,825



52,509


Taxable equivalent benefit

484



502



468



465



478


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

65,140



59,854



64,142



59,290



52,987


Taxable equivalent revenues (Non-GAAP) (1)

296,793



295,712



314,795



315,967



304,820


Securities (gains) losses and other non-interest income



(14)





1,012




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

$

296,793



$

295,698



$

314,795



$

316,979



$

304,820












Total non-interest expense (GAAP)

$

177,427



$

181,723



$

172,662



$

169,618



$

158,753


Less: Intangible amortization expense

4,187



4,259



4,410



4,786



5,009


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

173,240



177,464



168,252



164,832



153,744


Less: Merger-related expense

2,734



11,321





(10)



(334)


         Hazard-related expense

281










  Compensation-related expense









(9)


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

(4)



30





(22)



986


         Other non-core non-interest expense



(8)





107



(3,129)


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

$

170,229



$

166,121



$

168,252



$

164,757



$

156,230


Return on average assets (GAAP)

0.46

%


1.03

%


1.26

%


1.30

%


1.32

%

Effect of non-core revenues and expenses

0.03



0.07





0.01



(0.03)


Core return on average assets (Non-GAAP)

0.49

%


1.10

%


1.26

%


1.31

%


1.29

%

Efficiency ratio (GAAP)

60.1

%


61.8

%


55.2

%


54.0

%


52.4

%

Effect of tax benefit related to tax-exempt income

(0.3)



(0.3)



(0.3)



(0.3)



(0.3)


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

59.8

%


61.5

%


54.9

%


53.7

%


52.1

%

Effect of amortization of intangibles

(1.3)



(1.5)



(1.5)



(1.5)



(1.6)


Effect of non-core items

(1.1)



(3.8)





(0.2)



0.8


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

57.4

%


56.2

%


53.4

%


52.0

%


51.3

%

Return on average common equity (GAAP)

3.21

%


7.58

%


9.46

%


10.05

%


9.85

%

Effect of non-core revenues and expenses

0.26



0.55





0.08



(0.19)


Core return on average common equity (Non-GAAP)

3.47

%


8.13

%


9.46

%


10.13

%


9.66

%

Effect of intangibles (2)

2.06



4.26



5.02



5.45



5.37


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

5.53

%


12.39

%


14.48

%


15.58

%


15.03

%

Total shareholders' equity (GAAP)

$

4,347,107



$

4,336,734



$

4,283,300



$

4,238,000



$

4,141,831


Less:  Goodwill and other intangibles

1,292,910



1,297,095



1,301,348



1,305,752



1,310,458


           Preferred stock

228,485



228,485



228,485



228,485



132,097


Tangible common equity (Non-GAAP) (2)

$

2,825,712



$

2,811,154



$

2,753,467



$

2,703,763



$

2,699,276


Total assets (GAAP)

$

32,239,983



$

31,713,450



$

31,734,598



$

31,446,532



$

31,260,189


Less:  Goodwill and other intangibles

1,292,910



1,297,095



1,301,348



1,305,752



1,310,458


Tangible assets (Non-GAAP) (2)

$

30,947,073



$

30,416,355



$

30,433,250



$

30,140,780



$

29,949,731


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

9.13

%


9.24

%


9.05

%


8.97

%


9.01

%


(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