IBERIABANK CORPORATION In the news release, IBERIABANK Corporation Reports First Quarter Results, issued
IBERIABANK Corporation Reports First Quarter Results
LAFAYETTE, La., April 27, 2017 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 130-year-old IBERIABANK (www.iberiabank.com), reported financial results for the quarter ended March 31, 2017. For the quarter, the Company reported income available to common shareholders of $46.9 million, or $1.00 fully 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 2017 was $1.02 per common share (refer to press release supplemental tables for a reconciliation of GAAP to non-GAAP metrics), which exceeded consensus analyst expectations.
Daryl G. Byrd, President and Chief Executive Officer, commented, "Many events transpired this quarter as we expected and as we communicated to our investors last quarter. First, asset quality statistics associated with our energy-related loans continued to show significant improvements this quarter, and energy-related loans grew slightly during the first quarter. Second, we are well-positioned for rising short-term interest rates, and the Federal Reserve's short-term rate increases in December 2016 and March 2017 resulted in a rebound in our margin and significant improvement in net interest income this quarter. We expect these benefits to continue into future quarters as well. Third, we anticipated our loan growth would slow during the first quarter, due in part to typical seasonal trends, and we expected a portion of the massive inflow of deposits that we experienced in the final quarter of 2016 would begin to flow out during the first quarter of 2017. While some deposit outflow occurred as expected, we maintained a considerable amount of excess liquidity throughout the quarter. Finally, in December 2016, we issued and sold common equity with the expectation we would find an excellent investment opportunity in which we could deploy that capital. With our recently signed agreement to acquire Sabadell United Bank, we now have an excellent opportunity in which to deploy that capital, as well as capital raised in March 2017 when we issued and sold additional common shares. We are very excited to partner with the team at Sabadell United and double the size of our Florida franchise."
Byrd continued, "Our financial performance in the first quarter of 2017 has started off well this year. During the first quarter, we experienced favorable average earning asset growth and a tremendous improvement in the net interest margin. We achieved our strongest first quarter EPS in nine years, and we achieved record first quarter core EPS. Those results were achieved despite the 11-cent negative EPS carrying cost in this quarter associated with the two common stock sales. Our core return on average assets was 0.96% in the first quarter, an improvement of six basis points compared to the same quarter last year, and despite the traditional seasonal slowness in our fee income businesses. We are still carrying a significant amount of capital and liquidity, which once deployed, should further enhance our financial performance."
Highlights for the first quarter of 2017 and at March 31, 2017:
-- The Company remains very asset sensitive from an interest rate risk
position. Primarily as a result of recent increases in short-term
interest rates combined with a two basis point increase in total deposit
costs during the first quarter of 2017 resulted in improvements on a
linked quarter basis in the Company's reported and cash net interest
margins of 15 and 11 basis points, respectively. The yield on average
earning assets increased 16 basis points and the cost of total interest
bearing liabilities increased two basis points.
-- Primarily as a result of the improvement in the net interest margin and
a 4% increase in average earning assets, tax equivalent net interest
income increased $11.3 million, or 7%, on a linked quarter basis.
-- Non-interest income declined $5.9 million, or 11%, on a linked quarter
basis, primarily as a result of seasonal declines in the Company's fee
income businesses.
-- Energy-related loans ("energy loans") increased slightly and equated to
3.7% of total loans at March 31, 2017, unchanged from year-end 2016.
Classified energy loans and non-performing assets each decreased 23%
during the first quarter of 2017.
-- On February 28, 2017, the Company announced an agreement to acquire
Sabadell United Bank, headquartered in Miami, Florida. In association
with the pending acquisition, on March 7, 2017, the Company issued and
sold approximately 6.1 million shares of common stock at $83.00 per
common share, resulting in net proceeds of $485 million.
Table A - Summary Financial Results
(Dollars in thousands, except per share data)
For the Three Months Ended
--------------------------
3/31/2017 12/31/2016 % Change 3/31/2016 % Change
--------- ---------- -------- --------- --------
GAAP BASIS:
Income available
to common
shareholders $46,874 $44,173 6.1 $40,193 16.6
Earnings per
common share -
diluted 1.00 1.04 (3.8) 0.97 3.1
Average loans, net
of unearned
income $15,045,755 $14,912,350 0.9 $14,354,410 4.8
Average total
deposits 17,511,324 16,893,643 3.7 15,945,069 9.8
Net interest
margin (TE) (1) 3.53% 3.38% 3.68%
Total revenues $220,164 $214,903 2.4 $217,248 1.3
Total non-
interest expense 141,018 151,570 (7.0) 137,452 2.6
Efficiency ratio 64.1% 70.5% 63.3%
Return on average
assets 0.94 0.85 0.87
Return on average
common equity 6.41 6.70 6.59
NON-GAAP BASIS
(2):
Core revenues $220,163 $214,898 2.4 $217,052 1.4
Core non-interest
expense 139,437 133,562 4.4 134,860 3.4
Core earnings per
common share -
diluted 1.02 1.16 (12.1) 1.01 1.0
Core tangible
efficiency ratio
(TE) (1) (4) 61.6% 60.3% 60.3%
Core return on
average assets 0.96 0.94 0.90
Core return on
average tangible
common equity (4) 8.99 10.75 10.26
Net interest
margin (TE) -
cash basis (1)
(3) 3.30 3.19 3.51
(1) Fully taxable equivalent (TE)
calculations include the tax
benefit associated with related
income sources that are tax-exempt
using a rate of 35%, which
approximates the marginal tax rate.
(2) See Table 10 and Table 11 for
GAAP to Non-GAAP reconciliations.
(3) See Table 9 for adjustments
related to purchase discounts on
acquired loans and related
accretion and the impact of the
FDIC indemnification asset.
(4) Tangible calculations eliminate
the effect of goodwill and
acquisition related intangible
assets and the corresponding
amortization expense on a tax-
effected basis where applicable.
Operating Results
On a linked quarter basis, average loan volume (including the FDIC loss share receivable) increased $113 million, or 1%, and the associated tax-equivalent yield increased 23 basis points. Over that period, average legacy loans increased $279 million, or 2%, with an increase in yield of 15 basis points, and average acquired loans (including the FDIC loss share receivable) decreased $166 million, or 7%, and the yield increased 82 basis points. All other average earning assets, including investment securities, mortgage loans held for sale, and interest-bearing deposits in other institutions, increased a net of $624 million, or 14%.
Primarily as a result of rising short-term interest rates and lower levels of balance sheet liquidity, the Company's reported and cash net interest margins increased 15 and 11 basis points, respectively, on a linked quarter basis.
On a linked quarter basis, average earning assets increased $737 million, or 4%, and the average earning asset yield increased 16 basis points. Average interest-bearing liabilities increased $271 million, or 2%, and the cost of interest-bearing liabilities increased two basis points. On a linked quarter basis, tax-equivalent net interest income increased $11.3 million, or 7%.
The Company's provision for loan losses increased $1.0 million, or 19%, on a linked quarter basis to $6.2 million. The provision for loan losses covered net charge-offs in the first quarter of 2017 by 102% compared to 68% in the fourth quarter of 2016.
In the first quarter of 2017, non-interest income on a GAAP and non-core basis decreased $5.9 million, or 11%, compared to the fourth quarter of 2016. The primary changes in non-interest income on a linked quarter basis included:
-- Decreased mortgage income of $2.0 million, or 12%;
-- Decreased capital markets and brokerage commission of $1.3 million, or
32%;
-- Decreased gains on the sale of SBA loans of $1.3 million;
-- Decreased title revenues of $0.6 million, or 11%; and
-- Decreased client derivative income of $0.2 million.
In the first quarter of 2017, the Company originated $384 million in residential mortgage loans, down $154 million, or 29%, on a linked quarter basis. Client loan refinancing opportunities accounted for approximately 21% of mortgage loan applications in the first quarter of 2017, compared to 30% on a linked quarter basis. The Company sold $427 million in mortgage loans during the first quarter of 2017, down $156 million, or 27%, on a linked quarter basis. Loans held for sale decreased from $157 million at December 31, 2016, to $122 million at March 31, 2017. The mortgage origination locked pipeline was $240 million at March 31, 2017, up $74 million, or 46%, between quarter-ends, and was down 30% compared to one year ago. At April 24, 2017, the locked mortgage pipeline was $266 million, up 27% compared to March 31, 2017.
Non-interest expense decreased $10.6 million, or 7%, on a linked quarter basis. The decrease in non-interest expense was significantly influenced by the $17.8 million loss on the early termination of FDIC loss share agreements in the fourth quarter of 2016 and $1.4 million net impairment of long-lived assets in the first quarter of 2017. Excluding those non-core expenses, core non-interest expense increased $5.9 million, or 4%, and was comprised of the following items on a linked-quarter basis:
-- Increased salary and benefits cost of $1.1 million, or 1%, which
included:
-- Increased payroll tax expense of $2.2 million;
-- Increased health care costs of $2.0 million;
-- Increased compensation expense of $0.8 million; partially offset by
-- Decreased mortgage commission expenses of $1.9 million; and
-- Decreased phantom stock incentives expense of $1.6 million;
partially offset by
-- Increased provision for unfunded commitments of $1.2 million;
-- Increased marketing expense of $0.9 million;
-- Increased FDIC insurance premium expense of $0.7 million;
-- Increased legal and professional expense of $0.5 million; and
-- Increased occupancy and equipment expense of $0.5 million.
On a linked quarter basis, the Company's revenues and non-GAAP core revenues each increased $5.3 million, or 2%. Over the same period, GAAP expenses decreased $10.6 million, or 7%, and non-GAAP core expenses increased $5.9 million, or 4%. The efficiency ratio decreased from 70.5% to 64.1%, while the non-GAAP core tangible efficiency ratio increased from 60.3% to 61.6% on a linked quarter basis. The Company continues to focus on expense containment and revenue enhancement strategies intended to further improve its core tangible efficiency ratio.
Due to a recent change in accounting principle, the effective tax rate for the first quarter of 2017 was 30.9% and was favorably impacted by a $1.8 million decrease in income tax expense associated with restricted stock vesting during the quarter. Absent any future exercises or vesting, the Company expects the effective tax rate in the remaining three quarters of 2017 to be approximately 33.5%. Vesting and exercise of share-based compensation is expected to have an impact on tax expense in the first quarter of future years as well.
Table B - Summary Financial Condition Results
(Dollars in thousands, except per share data)
As of and For the Three Months Ended
------------------------------------
3/31/2017 12/31/2016 % Change 3/31/2016 % Change
--------- ---------- -------- --------- --------
PERIOD-END BALANCES:
Total loans, net of unearned
income $15,132,202 $15,064,971 0.4 $14,451,244 4.7
Legacy loans, net of unearned
income 12,923,444 12,694,924 1.8 11,528,697 12.1
Total deposits 17,312,265 17,408,283 (0.6) 16,260,566 6.5
ASSET QUALITY RATIOS
(LEGACY):
Loans 30-89 days past due and
still accruing as a
percentage of total loans 0.25% 0.20% 0.37%
Loans 90 days or more past
due and still accruing as a
percentage of total loans 0.02 0.01 0.00
Non-performing assets to
total assets (1) 0.99 1.20 0.65
Classified assets to total
assets (2) 1.60 1.94 2.21
CAPITAL RATIOS:
Tangible common equity ratio
(Non-GAAP)(3) (4) 12.10% 9.82% 8.83%
Tier 1 leverage ratio (5) 12.91 10.86 9.41
Total risk-based capital
ratio (5) 16.92 14.13 12.21
PER COMMON SHARE DATA:
Book value $65.25 $62.68 4.1 $59.93 8.9
Tangible book value (Non-
GAAP) (3) (4) 50.46 45.80 10.2 41.38 21.9
Closing stock price 79.10 83.75 (5.6) 51.27 54.3
Cash dividends 0.36 0.36 - 0.34 5.9
(1) Non-
performing
assets
consist of
non-accruing
loans,
accruing
loans 90 days
or more past
due and other
real estate
owned,
including
repossessed
assets.
(2) Classified
assets
include
commercial
loans rated
substandard
or worse and
non-
performing
mortgage and
consumer
loans, and
were $316
million, $373
million and
$378 million
at March 31,
2017,
December 31,
2016, and
March 31,
2016,
respectively.
(3) See Table 10
and Table 11
for GAAP to
Non-GAAP
reconciliations.
(4) Tangible
calculations
eliminate the
effect of
goodwill and
acquisition
related
intangible
assets and
the
corresponding
amortization
expense on a
tax-effected
basis where
applicable.
Regulatory
capital
ratios as of
March 31,
2017 are
(5) preliminary.
Loans
Total loans increased $67 million, or less than 1%, between December 31, 2016, and March 31, 2017. Over that period, acquired loans decreased $161 million, or 7%, and legacy loans increased $229 million, or 2% (7% annualized rate), including an increase in total energy loans of $2 million, or less than 1%, and a decline in indirect automobile loans of $21 million, or 16%. During the first quarter of 2017, legacy commercial loans increased $204 million, or 2%, legacy consumer loans decreased $23 million, or 1%, and legacy mortgage loans increased $48 million, or 6%. Period-end loan growth during the first quarter of 2017 was strongest in the Atlanta, Tampa, Mobile, Orlando, and southeast Florida markets. Funded loan origination and renewal mix in the first quarter of 2017 was 39% fixed rate and 61% floating rate, and total loans outstanding (excluding non-accruals) were 43% fixed and 57% floating. Commitments originated and/or renewed during the first quarter of 2017 were $1.3 billion (down 7% on a linked quarter basis). Loans originated and/or renewed during the first quarter of 2017 totaled $847 million (down 10% on a linked quarter basis). At March 31, 2017, the Company's probably-weighted commercial loan pipeline was approximately $600 million.
Table C - Period-End Loans
(Dollars in thousands)
As of and For the Three Months Ended
------------------------------------
Linked Qtr Change Year/Year Change Mix
----------------- ---------------- ---
3/31/2017 12/31/2016 3/31/2016 $ % Annualized $ % 3/31/2017 12/31/2016
--------- ---------- --------- --- --- ---------- --- --- --------- ----------
Legacy loans:
Commercial $9,581,229 $9,377,399 $8,427,154 203,830 2.2 8.7% 1,154,075 13.7 74.1% 73.9%
Residential
mortgage 901,859 854,216 730,621 47,643 5.6 22.3% 171,238 23.4 7.0% 6.7%
Consumer 2,440,356 2,463,309 2,370,922 (22,953) (0.9) (3.7)% 69,434 2.9 18.9% 19.4%
--------- --------- --------- ------- ---- ----- ------ --- ---- ----
Total legacy
loans 12,923,444 12,694,924 11,528,697 228,520 1.8 7.2% 1,394,747 12.1 100.0% 100.0%
Acquired loans:
Balance at
beginning of
period 2,370,047 2,511,129 3,136,908 (141,082) (5.6) (766,861) (24.4)
Loans acquired
during the
period - - - - - - -
Net paydown
activity (161,289) (141,082) (214,361) (20,207) 14.3 53,072 (24.8)
-------- -------- -------- ------- ---- ------ -----
Total acquired
loans 2,208,758 2,370,047 2,922,547 (161,289) (6.8) (713,789) (24.4)
--------- --------- --------- -------- ---- -------- -----
Total loans $15,132,202 $15,064,971 $14,451,244 67,231 0.4 680,958 4.7
=========== =========== =========== ====== === ======= ===
Energy loans outstanding totaled $564 million at March 31, 2017, up $2 million, or less than 1%, compared to year-end 2016, and equated to approximately 3.7% of total loans (unchanged compared to year-end 2016). Energy-related commitments totaled $1.0 billion at March 31, 2017, up $56 million, or 6%, compared to December 31, 2016. The increase in energy loans and commitments during the quarter was primarily due to increases at exploration and production ("E&P") and midstream companies. E&P companies accounted for 47% of energy loans outstanding and 53% of energy loan commitments, midstream companies accounted for 22% of energy loans and 23% of energy loan commitments, and service companies accounted for 31% of energy loans and 24% of energy loan commitments.
At March 31, 2017, $113 million in energy loans were on non-accrual status (down $37 million compared to December 31, 2016), and $2.3 million in energy loans (excluding non-accruing loans) were past due greater than 30 days at quarter-end. Classified energy loans decreased $55 million, or 23%, and criticized energy loans decreased $70 million, or 22%, between quarter-ends. At March 31, 2017, approximately 32% of energy loans were classified and 44% were criticized, compared to 42% and 57%, respectively, at December 31, 2016. To date, the Company has experienced $19 million in energy-related net charge-offs. Additional information regarding the Company's energy loan and energy-related commitment exposure is provided in Table 7 of this press release and in the supplemental investor presentation.
At March 31, 2017, the Company's indirect automobile lending business had approximately $110 million in loans outstanding, down $21 million, or 16%, compared to year-end 2016 (0.7% of total loans outstanding compared to 0.9% at December 31, 2016).
Deposits
Total deposits decreased $96 million, or 1%, between December 31, 2016 and March 31, 2017. Over that period, non-interest-bearing deposits increased $103 million, or 2%, and equated to 29% of total deposits at March 31, 2017. Money market accounts increased $153 million, or 2%, NOW accounts decreased $229 million, or 7%, time deposits decreased $122 million, or 6%, and savings deposits declined $1 million, or less than 1%. Deposit growth during the first quarter of 2017 was strongest in the New Orleans, southwest Louisiana, Mobile, Birmingham, and Little Rock markets.
Table D - Period-End Deposits
(Dollars in thousands)
Linked Qtr Change Year/Year Change Mix
----------------- ---------------- ---
3/31/2017 12/31/2016 3/31/2016 $ % Annualized $ % 3/31/2017 12/31/2016
--------- ---------- --------- --- --- ---------- --- --- --------- ----------
Non-
interest-
bearing $5,031,583 $4,928,878 $4,484,024 102,705 2.1 8.3% 547,559 12.2 29.1% 28.3%
NOW
accounts 3,085,720 3,314,281 2,960,562 (228,561) (6.9) (27.6)% 125,158 4.2 17.8% 19.0%
Money
market
accounts 6,372,855 6,219,532 5,964,029 153,323 2.5 9.9% 408,826 6.9 36.8% 35.7%
Savings
accounts 813,009 814,385 772,117 (1,376) (0.2) (0.7)% 40,892 5.3 4.7% 4.7%
Time
deposits 2,009,098 2,131,207 2,079,834 (122,109) (5.7) (22.9)% (70,736) (3.4) 11.6% 12.3%
--------- --------- --------- -------- ---- ------ ------- ---- ---- ----
Total
deposits $17,312,265 $17,408,283 $16,260,566 (96,018) (0.6) (2.2)% 1,051,699 6.5 100.0% 100.0%
=========== =========== =========== ======= ==== ===== ========= === ===== =====
On an average balance and linked quarter basis, non-interest-bearing deposits increased $108 million, or 2%, and interest-bearing deposits increased $510 million, or 4%. The rate on average interest-bearing deposits in the first quarter of 2017 was 0.52%, up two basis points on a linked quarter basis. The increase in the cost of interest-bearing deposits was primarily the result of a less favorable change in the mix of deposits during the first quarter of 2017. Marginal deposit rates remained stable throughout the first quarter of 2017.
Other Assets And Funding
On an average balance and linked quarter basis, the investment portfolio increased $587 million, or 19%, in the first quarter of 2017, to $3.7 billion. On a period-end basis, the investment portfolio equated to $3.9 billion, or 18% of total assets at March 31, 2017, up $375 million, or 11%, compared to December 31, 2016. The investment portfolio had an effective duration of 3.8 years at March 31, 2017, unchanged compared to year-end 2016. The investment portfolio had a $32 million unrealized loss at March 31, 2017, an improvement from a $39 million unrealized loss at year-end 2016. The average yield on investment securities increased 15 basis points on a linked quarter basis to 2.24% in the first quarter of 2017. The Company holds in its investment portfolio primarily government agency securities. Municipal securities comprised 9% of total investments at March 31, 2017.
On a linked quarter basis, average short-term borrowings (including repurchase agreements) decreased $193 million, or 32%, and the cost of short-term borrowings decreased nine basis points. At March 31, 2017, short-term borrowings (including repurchase agreements) decreased $60 million, or 12%, compared to December 31, 2016. On a linked quarter basis, average long-term debt decreased $46 million, or 7%, and the cost of long-term debt increased seven basis points to 2.22%. The cost of average interest-bearing liabilities was 0.59% in the first quarter of 2017, up two basis points on a linked quarter basis.
Asset Quality
Non-performing assets ("NPAs") decreased $31 million, or 13%, to $220 million at March 31, 2017. Acquired NPAs increased $4 million, while legacy NPAs, which include energy and non-energy loans, decreased $36 million, or 15%, and equated to 0.99% of total assets. Energy-related NPAs (which are included in legacy loans) decreased by $35 million, or 23%, and accounted for the decrease in the Company's total NPAs during the first quarter of 2017. At March 31, 2017, non-energy-related NPAs increased $3 million, or 3%, and equated to 0.49% of total assets, up slightly compared to 0.48% at year-end 2016.
Aggregate loans past due 30 to 89 days increased $7 million, or 25%, and equated to 0.24% of total loans at March 31, 2017, compared to 0.19% at year-end 2016.
Net charge-offs totaled $6.1 million in the first quarter of 2017, down $1.6 million, or 21%, compared to the fourth quarter of 2016. Annualized net charge-offs equated to 0.16% of average loans in the first quarter of 2017, a five basis point improvement on a linked quarter basis. Energy loans accounted for approximately 47% of the net charge-offs incurred during the first quarter of 2017.
Capital Position
At March 31, 2017, the Company reported a non-GAAP tangible common equity ratio of 12.10%, up 228 basis points compared to December 31, 2016, and the preliminary Tier 1 leverage ratio was 12.91%, up 205 basis points compared to December 31, 2016. The Company's preliminary calculation of its total risk-based capital ratio at March 31, 2017, was 16.92%, up 279 basis points compared to December 31, 2016.
At March 31, 2017, book value per common share was $65.25, up $2.57 per share, or 4%, compared to year-end 2016. Tangible book value per common share was $50.46, up $4.66 per share, or 10%, compared to year-end 2016. Based on the closing stock price of the Company's common stock of $79.35 per share on April 27, 2017, this price equated to 1.22 times March 31, 2017 book value per common share and 1.57 times March 31, 2017 tangible book value per common share.
Cash Dividends On Common Stock. On March 20, 2017, the Company declared a quarterly cash dividend of $0.36 per common share, a 6% increase compared to the same quarter in the prior year. This common dividend level equated to an annualized dividend rate of $1.44 per common share. Based on the Company's closing common stock price on April 27, 2017, the indicated dividend yield was 1.81% per common share. The payment of dividends on the common stock is at the discretion of the Board of Directors.
Common Stock Repurchase Program. On May 4, 2016, the Board of Directors of the Company authorized the repurchase of up to 950,000 shares of the Company's common stock. The Company did not repurchase common shares under the authorized program during the first quarter of 2017. The Company has approximately 747,000 shares of common stock remaining that may be purchased under the currently authorized program.
Series B Preferred Stock. On August 5, 2015, the Company sold 3.2 million depositary shares, each representing a 1/400th interest in a share of non-cumulative perpetual preferred stock. The Series B preferred stock has an initial coupon equal to 6.625% for a period of 10 years, and thereafter floats at a rate of LIBOR plus 426.2 basis points. The Company raised approximately $80 million in gross proceeds from the transaction. On January 4, 2017, the Company declared a semi-annual cash dividend of $0.8281 per depositary share that was paid on February 1, 2017.
Series C Preferred Stock. On May 9, 2016, the Company sold 2.3 million depositary shares, each representing a 1/400th interest in a share of non-cumulative perpetual preferred stock. The Series C preferred stock has an initial coupon equal to 6.60% for a period of 10 years, and thereafter floats at a rate of LIBOR plus 492 basis points. The Company raised approximately $57.5 million in gross proceeds from the transaction. On March 20, 2017, the Company declared a quarterly cash dividend of $0.4125 per depositary share that is payable on May 1, 2017.
Common Stock. On December 7, 2016, the Company issued and sold 3.6 million shares of common stock at a price of $81.50 per common share. After deducting underwriting discounts and commissions and other related expenses, net proceeds of the sale were approximately $279 million. On March 7, 2017, the Company issued and sold 6.1 million shares of common stock at a price of $83.00 per common share. After deducting underwriting discounts and commissions and other related expenses, net proceeds of the sale were approximately $485 million. The estimated dilutive impact of carrying the excess capital associated with these two common stock offerings was approximately $0.11 per common share during the first quarter of 2017, and will be approximately $0.06 per month on an ongoing basis until the capital is fully deployed.
IBERIABANK Corporation
IBERIABANK Corporation is a financial holding company with 300 combined offices, including 202 bank branch offices and two loan production offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, and South Carolina, 24 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 64 locations in 10 states. The Company has eight locations with representatives of IBERIA Wealth Advisors in four states, and one IBERIA Capital Partners L.L.C. office in New Orleans.
The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC". The Company's Series B Preferred Stock and Series C Preferred Stock trade on the NASDAQ Global Select Market under the symbols "IBKCP" and "IBKCO", respectively. The Company's common stock market capitalization was approximately $4.0 billion, based on the NASDAQ Global Select Market closing stock price on April 27, 2017.
The following 13 investment firms currently provide equity research coverage on the Company:
-- Bank of America Merrill Lynch
-- FBR & Co.
-- FIG Partners, LLC
-- Hovde Group, LLC
-- Jefferies & Co., Inc.
-- JMP Securities LLC
-- Keefe, Bruyette & Woods, Inc.
-- Piper Jaffray & Co.
-- Raymond James & Associates, Inc.
-- Robert W. Baird & Company
-- 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, April 28, 2017, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 3978156. A replay of the call will be available until midnight Central Time on May 5, 2017 by dialing 1-877-344-7529. The confirmation code for the replay is 10104130. The Company has prepared a PowerPoint presentation that supplements information contained in this press release. The PowerPoint presentation may be accessed on the Company's web site, www.iberiabank.com, under "Investor Relations" and then "Financial Information" and "Presentations."
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with GAAP. The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. Non-GAAP measures in this press release include, but are not limited to, descriptions such as core, tangible, and pre-tax pre-provision. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that in management's opinion can distort period-to-period comparisons of the Company's performance. Transactions that are typically excluded from non-GAAP performance measures include realized and unrealized gains/losses on former bank owned real estate, realized gains/losses on securities, income tax gains/losses, merger-related charges and recoveries, litigation charges and recoveries, and debt repayment penalties. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP disclosures are presented in the supplemental tables at the end of this release. Please refer to the supplemental tables for these reconciliations.
Caution About Forward-Looking Statements
This press release contains "forward-looking statements," which may include forecasts of our financial results and condition, expectations for our operations and businesses, and our assumptions for those forecasts and expectations. Do not place undue reliance on forward-looking statements. Due to various factors, actual results may differ materially from our forward-looking statements. Factors that could cause our actual results to differ materially from our forward-looking statements are described under "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Risk Factors" and "Regulation and Supervision" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016, and in other documents subsequently filed by the Company with the Securities and Exchange Commission, available at the SEC's website, http://www.sec.gov, and the Company's website, http://www.iberiabank.com. To the extent that statements in this press release relate to future plans, objectives, financial results or performance by the Company, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are generally identified by use of words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology.
Forward-looking statements represent management's beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. Factors that could cause or contribute to such differences include, but are not limited to: the level of market volatility, our ability to execute our growth strategy, including the availability of future bank acquisition opportunities, our ability to execute on our revenue and efficiency improvement initiatives, unanticipated losses related to the completion and integration of mergers and acquisitions, refinements to purchase accounting adjustments for acquired businesses and assets and assumed liabilities in these transactions, adjustments of fair values of acquired assets and assumed liabilities and of deferred taxes in acquisitions, actual results deviating from the Company's current estimates and assumptions of timing and amounts of cash flows, utilization of non-GAAP financial measures, credit risk of our customers, resolution of assets formerly subject to loss share agreements with the FDIC, effects of the on-going correction in residential real estate prices and levels of home sales, our ability to satisfy capital and liquidity standards such as those imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act and those adopted by the Basel Committee on Banking Supervision and federal banking regulators, sufficiency of our allowance for loan losses, changes in interest rates, access to funding sources, reliance on the services of executive management, competition for loans, deposits and investment dollars, competition from competitors with greater financial resources than the Company, reputational risk and social factors, compliance with laws and regulations, increases in FDIC insurance assessments, geographic concentration of our markets, economic and business conditions in our markets or nationally, including the impact of volatility of oil and gas prices, rapid changes in the financial services industry, significant litigation, cyber-security risks including dependence on our operational, technological, and organizational systems and infrastructure and those of third party providers of those services, hurricanes and other adverse weather events, and valuation of intangible assets. 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: 3/31/2017 12/31/2016 % Change 3/31/2016 % Change
--------- ---------- -------- --------- --------
Net interest income $172,818 $161,665 6.9 $161,403 7.1
Net interest income (TE) (1) 175,309 164,005 6.9 163,728 7.1
Total revenues 220,164 214,903 2.4 217,248 1.3
Provision for loan losses 6,154 5,169 19.1 14,905 (58.7)
Non-interest expense 141,018 151,570 (7.0) 137,452 2.6
Net income available to common
shareholders 46,874 44,173 6.1 40,193 16.6
PER COMMON SHARE DATA:
Earnings available to common
shareholders -basic $1.01 $1.05 (3.8) $0.98 3.1
Earnings available to common
shareholders -diluted 1.00 1.04 (3.8) 0.97 3.1
Core earnings (Non-GAAP)(2) 1.02 1.16 (12.1) 1.01 1.0
Book value 65.25 62.68 4.1 59.93 8.9
Tangible book value (Non-GAAP)
(2) (3) 50.46 45.80 10.2 41.38 21.9
Closing stock price 79.10 83.75 (5.6) 51.27 54.3
Cash dividends 0.36 0.36 - 0.34 5.9
KEY RATIOS AND OTHER DATA (6):
Net interest margin (TE) (1) 3.53% 3.38% 3.68%
Efficiency ratio 64.1 70.5 63.3
Core tangible efficiency ratio
(TE) (Non-GAAP) (1) (2) (3) 61.6 60.3 60.3
Return on average assets 0.94 0.85 0.87
Return on average common equity 6.41 6.70 6.59
Core return on average tangible
common equity (Non-GAAP)(2)(3) 8.99 10.75 10.26
Effective tax rate 30.9 22.4 34.1
Full-time equivalent employees 3,161 3,100 3,112
CAPITAL RATIOS:
Tangible common equity ratio
(Non-GAAP) (2) (3) 12.10% 9.82% 8.83%
Tangible common equity to risk-
weighted assets (3) 14.48 11.62 10.14
Tier 1 leverage ratio (4) 12.91 10.86 9.41
Common equity Tier 1 (CET 1)
(transitional) (4) 14.64 11.84 10.11
Common equity Tier 1 (CET 1)
(fully phased-in) (4) 14.60 11.77 10.02
Tier 1 capital (transitional) (4) 15.38 12.59 10.56
Total risk-based capital ratio
(4) 16.92 14.13 12.21
Common stock dividend payout
ratio 39.0 36.4 34.9
Classified assets to Tier 1
capital (7) 15.2 21.9 28.4
ASSET QUALITY RATIOS (LEGACY):
Non-performing assets to total
assets (5) 0.99% 1.20% 0.65%
Allowance for loan losses to
loans 0.82 0.83 0.92
Net charge-offs to average loans
(annualized) 0.20 0.24 0.15
Non-performing assets to total
loans and OREO (5) 1.52 1.83 0.96
(1) Fully taxable
equivalent
(TE)
calculations
include the
tax benefit
associated
with related
income
sources that
are tax-
exempt using
a rate of
35%, which
approximates
the marginal
tax rate.
See Table 10
and Table 11
for GAAP to
Non-GAAP
(2) reconciliations.
Tangible
calculations
eliminate the
effect of
goodwill and
acquisition
related
intangible
assets and
the
corresponding
amortization
expense on a
tax-effected
basis where
(3) applicable.
Regulatory
capital
ratios as of
March 31,
2017 are
(4) preliminary.
Non-
performing
assets
consist of
non-accruing
loans,
accruing
loans 90 days
or more past
due and other
real estate
owned,
including
repossessed
(5) assets.
All ratios are
calculated on
an annualized
basis for the
periods
(6) indicated.
(7) Classified
assets
include
commercial
loans rated
substandard
or worse and
non-
performing
mortgage and
consumer
loans and
include
acquired
impaired
loans
accounted for
under ASC
310-30.
Table 2 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Dollars in thousands, except per share data)
For the Three Months Ended
--------------------------
Linked Qtr Change Year/Year Change
----------------- ----------------
3/31/2017 12/31/2016 $ % 9/30/2016 6/30/2016 3/31/2016 $ %
--------- ---------- --- --- --------- --------- --------- --- ---
Interest income $192,533 $180,805 11,728 6.5 $180,504 $178,694 $176,936 15,597 8.8
Interest expense 19,715 19,140 575 3.0 17,087 15,941 15,533 4,182 26.9
------ ------ --- --- ------ ------ ------ ----- ----
Net interest income 172,818 161,665 11,153 6.9 163,417 162,753 161,403 11,415 7.1
Provision for loan
losses 6,154 5,169 985 19.1 12,484 11,866 14,905 (8,751) (58.7)
----- ----- --- ---- ------ ------ ------ ------ -----
Net interest income
after provision for
loan losses 166,664 156,496 10,168 6.5 150,933 150,887 146,498 20,166 13.8
Mortgage income 14,115 16,115 (2,000) (12.4) 21,807 25,991 19,940 (5,825) (29.2)
Service charges on
deposit accounts 11,153 11,178 (25) (0.2) 11,066 10,940 10,951 202 1.8
Title revenue 4,741 5,332 (591) (11.1) 6,001 6,135 4,745 (4) (0.1)
Broker commissions 2,738 4,006 (1,268) (31.7) 3,797 3,712 3,823 (1,085) (28.4)
ATM/debit card fee
income 3,585 3,604 (19) (0.5) 3,483 3,650 3,503 82 2.3
Income from bank owned
life insurance 1,311 1,323 (12) (0.9) 1,305 1,411 1,202 109 9.1
Gain on sale of
available-for-sale
securities - 4 (4) (100.0) 12 1,789 196 (196) (100.0)
Other non-interest
income 9,703 11,676 (1,973) (16.9) 12,350 11,289 11,485 (1,782) (15.5)
----- ------ ------ ----- ------ ------ ------ ------ -----
Total non-interest
income 47,346 53,238 (5,892) (11.1) 59,821 64,917 55,845 (8,499) (15.2)
Salaries and employee
benefits 81,853 80,811 1,042 1.3 85,028 85,105 80,742 1,111 1.4
Occupancy and
equipment 16,021 15,551 470 3.0 16,526 16,813 16,907 (886) (5.2)
Loss on early
termination of loss
share agreements - 17,798 (17,798) (100.0) - - - - N/M
Amortization of
acquisition
intangibles 1,770 2,087 (317) (15.2) 2,106 2,109 2,113 (343) (16.2)
Other non-interest
expense 41,374 35,323 6,051 17.1 34,479 35,477 37,690 3,684 9.8
------ ------ ----- ---- ------ ------ ------ ----- ---
Total non-interest
expense 141,018 151,570 (10,552) (7.0) 138,139 139,504 137,452 3,566 2.6
Income before income
taxes 72,992 58,164 14,828 25.5 72,615 76,300 64,891 8,101 12.5
Income tax expense 22,519 13,034 9,485 72.8 24,547 25,490 22,122 397 1.8
------ ------ ----- ---- ------ ------ ------ --- ---
Net income 50,473 45,130 5,343 11.8 48,068 50,810 42,769 7,704 18.0
Preferred stock
dividends (3,599) (957) (2,642) (276.1) (3,590) (854) (2,576) (1,023) 39.7
------ ---- ------ ------ ------ ---- ------ ------ ----
Net income available
to common
shareholders $46,874 $44,173 2,701 6.1 $44,478 $49,956 $40,193 6,681 16.6
======= ======= ===== === ======= ======= ======= ===== ====
Income available to
common shareholders -
basic $46,874 $44,173 2,701 6.1 $44,478 $49,956 $40,193 6,681 16.6
Earnings allocated to
unvested restricted
stock (346) (414) 68 (16.4) (462) (540) (460) 114 (24.8)
---- ---- --- ----- ---- ---- ---- --- -----
Earnings allocated to
common shareholders $46,528 $43,759 2,769 6.3 $44,016 $49,416 $39,733 6,795 17.1
======= ======= ===== === ======= ======= ======= ===== ====
Earnings per common
share -basic $1.01 $1.05 (0.04) (3.8) $1.08 $1.21 $0.98 0.03 3.1
Earnings per common
share -diluted 1.00 1.04 (0.04) (3.8) 1.08 1.21 0.97 0.03 3.1
Impact of non-core
items (Non-GAAP) (1) 0.02 0.12 (0.10) (83.3) - (0.03) 0.04 (0.02) (50.0)
---- ---- ----- ----- --- ----- ---- ----- -----
Earnings per share -
diluted, excluding
non-core items (Non-
GAAP) (1) $1.02 $1.16 (0.14) (12.1) $1.08 $1.18 $1.01 0.01 1.0
NUMBER OF COMMON SHARES OUTSTANDING (in
thousands)
Weighted average
common shares
outstanding -basic 46,123 42,109 4,014 9.5 41,052 41,232 41,186 4,937 12.0
Weighted average
common shares
outstanding -diluted 46,496 41,950 4,546 10.8 40,811 40,908 40,765 5,731 14.1
Book value shares
(period end) 50,970 44,795 6,175 13.8 41,082 41,039 41,232 9,738 23.6
(1) See Table 10 and Table 11 for GAAP to Non-GAAP reconciliations.
N/M = not meaningful
TABLE 3 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
PERIOD-END BALANCES Linked Qtr Change Year/Year Change
----------------- ----------------
ASSETS 3/31/2017 12/31/2016 $ % 9/30/2016 6/30/2016 3/31/2016 $ %
--------- ---------- --- --- --------- --------- --------- --- ---
Cash and due from
banks $276,979 $295,896 (18,917) (6.4) $327,799 $288,141 $300,207 (23,228) (7.7)
Interest-bearing
deposits in other
banks 1,024,139 1,066,230 (42,091) (3.9) 773,454 417,157 696,448 327,691 47.1
--------- --------- ------- ---- ------- ------- ------- ------- ----
Total cash and cash
equivalents 1,301,118 1,362,126 (61,008) (4.5) 1,101,253 705,298 996,655 304,463 30.5
Investment
securities
available for sale 3,823,953 3,446,097 377,856 11.0 2,885,413 2,776,015 2,755,425 1,068,528 38.8
Investment
securities held to
maturity 86,018 89,216 (3,198) (3.6) 90,653 92,904 96,117 (10,099) (10.5)
------ ------ ------ ---- ------ ------ ------ ------- -----
Total investment
securities 3,909,971 3,535,313 374,658 10.6 2,976,066 2,868,919 2,851,542 1,058,429 37.1
Mortgage loans held
for sale 122,333 157,041 (34,708) (22.1) 210,866 229,653 192,545 (70,212) (36.5)
Loans, net of
unearned income 15,132,202 15,064,971 67,231 0.4 14,924,499 14,722,561 14,451,244 680,958 4.7
Allowance for loan
losses (144,890) (144,719) (171) 0.1 (148,193) (147,452) (146,557) 1,667 (1.1)
-------- -------- ---- --- -------- -------- -------- ----- ----
Loans, net 14,987,312 14,920,252 67,060 0.4 14,776,306 14,575,109 14,304,687 682,625 4.8
Loss share
receivable - - - - 24,406 29,224 33,564 (33,564) (100.0)
Premises and
equipment 303,978 306,373 (2,395) (0.8) 308,932 311,173 314,615 (10,637) (3.4)
Goodwill and other
intangibles 758,340 759,823 (1,483) (0.2) 761,206 763,387 768,235 (9,895) (1.3)
Other assets 625,427 618,262 7,165 1.2 629,531 678,092 630,720 (5,293) (0.8)
------- ------- ----- --- ------- ------- ------- ------ ----
Total assets $22,008,479 $21,659,190 349,289 1.6 $20,788,566 $20,160,855 $20,092,563 1,915,916 9.5
=========== =========== ======= === =========== =========== =========== ========= ===
LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest-
bearing deposits $5,031,583 $4,928,878 102,705 2.1 $4,787,485 $4,539,254 $4,484,024 547,559 12.2
NOW accounts 3,085,720 3,314,281 (228,561) (6.9) 2,904,835 2,985,284 2,960,562 125,158 4.2
Savings and money
market accounts 7,185,864 7,033,917 151,947 2.2 6,646,694 6,188,245 6,736,146 449,718 6.7
Certificates of
deposit 2,009,098 2,131,207 (122,109) (5.7) 2,183,503 2,149,244 2,079,834 (70,736) (3.4)
--------- --------- -------- ---- --------- --------- --------- ------- ----
Total deposits 17,312,265 17,408,283 (96,018) (0.6) 16,522,517 15,862,027 16,260,566 1,051,699 6.5
Short-term
borrowings 80,000 175,000 (95,000) (54.3) 360,000 477,620 195,000 (115,000) (59.0)
Securities sold
under agreements
to repurchase 368,696 334,136 34,560 10.3 353,272 288,017 303,238 65,458 21.6
Trust preferred
securities 120,110 120,110 - - 120,110 120,110 120,110 - -
Other long-term
debt 507,975 508,843 (868) (0.2) 552,328 567,326 478,814 29,161 6.1
Other liabilities 161,458 173,124 (11,666) (6.7) 213,229 208,158 186,926 (25,468) (13.6)
------- ------- ------- ---- ------- ------- ------- ------- -----
Total liabilities 18,550,504 18,719,496 (168,992) (0.9) 18,121,456 17,523,258 17,544,654 1,005,850 5.7
Total shareholders'
equity 3,457,975 2,939,694 518,281 17.6 2,667,110 2,637,597 2,547,909 910,066 35.7
--------- --------- ------- ---- --------- --------- --------- ------- ----
Total liabilities
and shareholders'
equity $22,008,479 $21,659,190 349,289 1.6 $20,788,566 $20,160,855 $20,092,563 1,915,916 9.5
=========== =========== ======= === =========== =========== =========== ========= ===
TABLE 3 Continued - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
AVERAGE BALANCES Linked Qtr Change Year/Year Change
----------------- ----------------
ASSETS 3/31/2017 12/31/2016 $ % 9/30/2016 6/30/2016 3/31/2016 $ %
--------- ---------- --- --- --------- --------- --------- --- ---
Cash and due from
banks $302,585 $310,132 (7,547) (2.4) $299,445 $304,304 $292,476 10,109 3.5
Interest-bearing
deposits in other
banks 1,023,688 930,524 93,164 10.0 536,741 386,139 365,709 657,979 179.9
--------- ------- ------ ---- ------- ------- ------- ------- -----
Total cash and cash
equivalents 1,326,273 1,240,656 85,617 6.9 836,186 690,443 658,185 668,088 101.5
Investment
securities
available for sale 3,679,817 3,192,040 487,777 15.3 2,825,030 2,823,292 2,797,320 882,497 31.5
Investment
securities held to
maturity 87,246 90,161 (2,915) (3.2) 92,006 94,609 97,391 (10,145) (10.4)
------ ------ ------ ---- ------ ------ ------ ------- -----
Total investment
securities 3,767,063 3,282,201 484,862 14.8 2,917,036 2,917,901 2,894,711 872,352 30.1
Mortgage loans held
for sale 175,512 226,565 (51,053) (22.5) 219,369 211,468 160,873 14,639 9.1
Loans, net of
unearned income 15,045,755 14,912,350 133,405 0.9 14,802,199 14,570,945 14,354,410 691,345 4.8
Allowance for loan
losses (145,326) (150,499) 5,173 (3.4) (149,101) (149,037) (141,393) (3,933) 2.8
-------- -------- ----- ---- -------- -------- -------- ------ ---
Loans, net 14,900,429 14,761,851 138,578 0.9 14,653,098 14,421,908 14,213,017 687,412 4.8
Loss share
receivable - 20,456 (20,456) (100.0) 27,694 32,189 37,360 (37,360) (100.0)
Premises and
equipment 305,245 308,861 (3,616) (1.2) 310,592 313,862 322,086 (16,841) (5.2)
Goodwill and other
intangibles 758,887 760,003 (1,116) (0.1) 762,196 764,818 765,898 (7,011) (0.9)
Other assets 628,092 615,666 12,426 2.0 666,657 651,328 609,181 18,911 3.1
------- ------- ------ --- ------- ------- ------- ------ ---
Total assets $21,861,501 $21,216,259 645,242 3.0 $20,392,828 $20,003,917 $19,661,311 2,200,190 11.2
=========== =========== ======= === =========== =========== =========== ========= ====
LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest-
bearing deposits $4,976,945 $4,869,095 107,850 2.2 $4,605,447 $4,463,928 $4,388,259 588,686 13.4
NOW accounts 3,239,085 2,981,967 257,118 8.6 2,936,130 2,911,510 2,859,940 379,145 13.3
Savings and money
market accounts 7,211,545 6,869,614 341,931 5.0 6,359,006 6,486,242 6,598,838 612,707 9.3
Certificates of
deposit 2,083,749 2,172,967 (89,218) (4.1) 2,176,159 2,117,711 2,098,032 (14,283) (0.7)
--------- --------- ------- ---- --------- --------- --------- ------- ----
Total deposits 17,511,324 16,893,643 617,681 3.7 16,076,742 15,979,391 15,945,069 1,566,255 9.8
Short-term
borrowings 99,000 260,730 (161,730) (62.0) 430,332 358,837 277,374 (178,374) (64.3)
Securities sold
under agreements
to repurchase 311,726 342,953 (31,227) (9.1) 302,119 265,465 217,296 94,430 43.5
Trust preferred
securities 120,110 120,110 - - 120,110 120,110 120,110 - -
Other long-term
debt 498,384 544,353 (45,969) (8.4) 562,598 473,195 403,393 94,991 23.5
Other liabilities 221,993 300,768 (78,775) (26.2) 239,911 203,050 167,810 54,183 32.3
------- ------- ------- ----- ------- ------- ------- ------ ----
Total liabilities 18,762,537 18,462,557 299,980 1.6 17,731,812 17,400,048 17,131,052 1,631,485 9.5
Total shareholders'
equity 3,098,964 2,753,702 345,262 12.5 2,661,016 2,603,869 2,530,259 568,705 22.5
--------- --------- ------- ---- --------- --------- --------- ------- ----
Total liabilities
and shareholders'
equity $21,861,501 $21,216,259 645,242 3.0 $20,392,828 $20,003,917 $19,661,311 2,200,190 11.2
=========== =========== ======= === =========== =========== =========== ========= ====
Table 4 - IBERIABANK CORPORATION
TOTAL LOANS AND ASSET QUALITY DATA
(Dollars in thousands)
Linked Qtr Change Year/Year Change
----------------- ----------------
LOANS 3/31/2017 12/31/2016 $ % 9/30/2016 6/30/2016 3/31/2016 $ %
--------- ---------- --- --- --------- --------- --------- --- ---
Commercial loans:
Real estate $6,977,874 $6,802,266 175,608 2.6 $6,681,215 $6,472,001 $6,230,628 747,246 12.0
Commercial and
Industrial 3,455,578 3,543,122 (87,544) (2.5) 3,462,997 3,435,809 3,374,382 81,196 2.4
Energy (Real
Estate and
Commercial and
Industrial) (1) 563,623 561,193 2,430 0.4 599,641 662,034 731,662 (168,039) (23.0)
------- ------- ----- --- ------- ------- ------- -------- -----
Total commercial
loans 10,997,075 10,906,581 90,494 0.8 10,743,853 10,569,844 10,336,672 660,403 6.4
Residential
mortgage loans 1,296,358 1,267,400 28,958 2.3 1,270,530 1,249,062 1,208,391 87,967 7.3
Consumer loans:
Home equity 2,146,796 2,155,926 (9,130) (0.4) 2,151,130 2,129,812 2,091,514 55,282 2.6
Indirect
automobile 110,200 131,052 (20,852) (15.9) 153,913 182,223 213,179 (102,979) (48.3)
Automobile 142,139 147,662 (5,523) (3.7) 152,972 156,597 164,868 (22,729) (13.8)
Credit card 84,113 82,992 1,121 1.4 80,959 78,552 76,756 7,357 9.6
Other 355,521 373,358 (17,837) (4.8) 371,142 356,471 359,864 (4,343) (1.2)
------- ------- ------- ---- ------- ------- ------- ------ ----
Total consumer
loans 2,838,769 2,890,990 (52,221) (1.8) 2,910,116 2,903,655 2,906,181 (67,412) (2.3)
--------- --------- ------- ---- --------- --------- --------- ------- ----
Total loans $15,132,202 $15,064,971 67,231 0.4 $14,924,499 $14,722,561 $14,451,244 680,958 4.7
=========== =========== ====== === =========== =========== =========== ======= ===
Allowance for
loan losses (2) $(144,890) $(144,719) (171) 0.1 $(148,193) $(147,452) $(146,557) 1,667 (1.1)
Loans, net 14,987,312 14,920,252 67,060 0.4 14,776,306 14,575,109 14,304,687 682,625 4.8
Reserve for
unfunded
commitments (11,660) (11,241) (419) 3.7 (11,990) (13,826) (14,033) 2,373 (16.9)
Allowance for
credit losses (156,550) (155,960) (590) 0.4 (160,183) (161,278) (160,590) 4,040 (2.5)
ASSET QUALITY DATA
Non-accrual
loans (3) $191,582 $228,501 (36,919) (16.2) $235,521 $101,738 $98,588 92,994 94.3
Other real estate
owned and
foreclosed
assets 20,055 21,199 (1,144) (5.4) 22,085 27,220 31,411 (11,356) (36.2)
Accruing loans
more than 90
days past due(3) 7,980 1,386 6,594 475.8 5,233 751 385 7,595 1,972.7
----- ----- ----- ----- ----- --- --- ----- -------
Total non-
performing
assets $219,617 $251,086 (31,469) (12.5) $262,839 $129,709 $130,384 89,233 68.4
======== ======== ======= ===== ======== ======== ======== ====== ====
Loans 30-89 days
past due $36,172 $28,869 7,303 25.3 $45,125 $50,592 $49,071 (12,899) (26.3)
Non-performing
assets to total
assets 1.00% 1.16% 1.26% 0.64% 0.65%
Non-performing
assets to total
loans and OREO 1.45 1.66 1.76 0.88 0.90
Allowance for
loan losses to
non-performing
loans (4) 72.6 63.0 61.6 143.9 148.1
Allowance for
loan losses to
non-performing
assets 66.0 57.6 56.4 113.7 112.4
Allowance for
loan losses to
total loans 0.96 0.96 0.99 1.00 1.01
Quarter-to-date
charge-offs $7,291 $9,785 (2,494) (25.5) $11,500 $12,994 $5,560 1,731 31.1
Quarter-to-date
recoveries (1,235) (2,135) 900 (42.2) (1,277) (1,071) (1,551) 316 (20.4)
------ ------ --- ----- ------ ------ ------ --- -----
Quarter-to-date
net charge-offs $6,056 $7,650 (1,594) (20.8) $10,223 $11,923 $4,009 2,047 51.1
====== ====== ====== ===== ======= ======= ====== ===== ====
Net charge-offs
to average loans
(annualized) 0.16% 0.21% 0.28% 0.33% 0.11%
(1) For purposes of this
table, energy loans
generally include loans
with specific NAICS codes
that relate to the Oil and
Gas E&P, Services or
Midstream industries.
(2) The allowance for loan
losses includes impairment
reserves attributable to
acquired impaired loans.
(3) For purposes of this
table, non-accrual and
past due loans exclude
acquired impaired loans
accounted for under ASC
310-30 that are currently
accruing income.
(4) Non-performing loans
consist of non-accruing
loans and accruing loans 90
days or more past due.
Table 5 - IBERIABANK CORPORATION
LEGACY LOANS AND LEGACY ASSET QUALITY DATA
(Dollars in thousands)
Linked Qtr Change Year/Year Change
----------------- ----------------
LEGACY LOANS 3/31/2017 12/31/2016 $ % 9/30/2016 6/30/2016 3/31/2016 $ %
--------- ---------- --- --- --------- --------- --------- --- ---
Commercial loans:
Real estate $5,878,509 $5,623,314 255,195 4.5 $5,419,483 $5,097,689 $4,771,690 1,106,819 23.2
Commercial and
Industrial 3,140,205 3,194,796 (54,591) (1.7) 3,101,472 3,027,590 2,926,686 213,519 7.3
Energy (Real
Estate and
Commercial and
Industrial) (1) 562,515 559,289 3,226 0.6 598,279 659,510 728,778 (166,263) (22.8)
------- ------- ----- --- ------- ------- ------- -------- -----
Total commercial
loans 9,581,229 9,377,399 203,830 2.2 9,119,234 8,784,789 8,427,154 1,154,075 13.7
Residential
mortgage loans 901,859 854,216 47,643 5.6 840,082 794,701 730,621 171,238 23.4
Consumer loans:
Home equity 1,797,123 1,783,421 13,702 0.8 1,755,295 1,695,113 1,625,812 171,311 10.5
Indirect
automobile 110,174 131,048 (20,874) (15.9) 153,904 182,199 213,141 (102,967) (48.3)
Automobile 133,852 138,638 (4,786) (3.5) 143,355 146,394 153,732 (19,880) (12.9)
Credit card 83,612 82,524 1,088 1.3 80,452 78,044 76,247 7,365 9.7
Other 315,595 327,678 (12,083) (3.7) 321,048 303,609 301,990 13,605 4.5
------- ------- ------- ---- ------- ------- ------- ------ ---
Total consumer
loans 2,440,356 2,463,309 (22,953) (0.9) 2,454,054 2,405,359 2,370,922 69,434 2.9
--------- --------- ------- ---- --------- --------- --------- ------ ---
Total loans $12,923,444 $12,694,924 228,520 1.8 $12,413,370 $11,984,849 $11,528,697 1,394,747 12.1
=========== =========== ======= === =========== =========== =========== ========= ====
Allowance for
loan losses $(105,813) $(105,569) (244) 0.2 $(108,889) $(106,861) $(105,574) (239) 0.2
Loans, net 12,817,631 12,589,355 228,276 1.8 12,304,481 11,877,988 11,423,123 1,394,508 12.2
Reserve for
unfunded
commitments (11,660) (11,241) (419) 3.7 (11,990) (13,826) (14,033) 2,373 (16.9)
Allowance for
credit losses (117,473) (116,810) (663) 0.6 (120,879) (120,687) (119,607) 2,134 (1.8)
ASSET QUALITY DATA
Non-accrual loans $185,078 $221,543 (36,465) (16.5) $227,122 $95,096 $93,429 91,649 98.1
Other real estate
owned and
foreclosed
assets 8,217 9,264 (1,047) (11.3) 11,538 14,478 17,662 (9,445) (53.5)
Accruing loans
more than 90
days past due 3,100 1,104 1,996 180.8 4,936 353 125 2,975 2,380.0
----- ----- ----- ----- ----- --- --- ----- -------
Total non-
performing
assets $196,395 $231,911 (35,516) (15.3) $243,596 $109,927 $111,216 85,179 76.6
======== ======== ======= ===== ======== ======== ======== ====== ====
Loans 30-89 days
past due $32,286 $24,902 7,384 29.7 $41,157 $45,906 $42,454 (10,168) (24.0)
Non-performing
assets to total
assets 0.99% 1.20% 1.33% 0.63% 0.65%
Non-performing
assets to total
loans and OREO 1.52 1.83 1.96 0.92 0.96
Allowance for
loan losses to
non-performing
loans (2) 56.2 47.4 46.9 112.0 112.9
Allowance for
loan losses to
non-performing
assets 53.9 45.5 44.7 97.2 94.9
Allowance for
loan losses to
total loans 0.82 0.83 0.88 0.89 0.92
Quarter-to-date
charge-offs $7,202 $9,496 (2,294) (24.2) $11,201 $11,969 $5,389 1,813 33.6
Quarter-to-date
recoveries (880) (1,910) 1,030 (53.9) (1,102) (775) (1,247) 367 (29.4)
---- ------ ----- ----- ------ ---- ------ --- -----
Quarter-to-date
net charge-offs $6,322 $7,586 (1,264) (16.7) $10,099 $11,194 $4,142 2,180 52.6
====== ====== ====== ===== ======= ======= ====== ===== ====
Net charge-offs
to average loans
(annualized) 0.20% 0.24% 0.33% 0.38% 0.15%
(1) For purposes of this
table, energy loans
generally include loans
with specific NAICS codes
that relate to the Oil and
Gas E&P, Services or
Midstream industries.
(2) Non-performing loans
consist of non-accruing
loans and accruing loans 90
days or more past due.
Table 6 - IBERIABANK CORPORATION
ACQUIRED LOANS AND ACQUIRED ASSET QUALITY DATA
(Dollars in thousands)
Linked Qtr Change Year/Year Change
----------------- ----------------
ACQUIRED LOANS 3/31/2017 12/31/2016 $ % 9/30/2016 6/30/2016 3/31/2016 $ %
--------- ---------- --- --- --------- --------- --------- --- ---
Commercial loans:
Real estate $1,099,365 $1,178,952 (79,587) (6.8) $1,261,732 $1,374,312 $1,458,938 (359,573) (24.6)
Commercial and
Industrial 315,373 348,326 (32,953) (9.5) 361,525 408,219 447,696 (132,323) (29.6)
Energy (Real
Estate and
Commercial and
Industrial) (1) 1,108 1,904 (796) (41.8) 1,362 2,524 2,884 (1,776) (61.6)
----- ----- ---- ----- ----- ----- ----- ------ -----
Total commercial
loans 1,415,846 1,529,182 (113,336) (7.4) 1,624,619 1,785,055 1,909,518 (493,672) (25.9)
Residential
mortgage loans 394,499 413,184 (18,685) (4.5) 430,448 454,361 477,770 (83,271) (17.4)
Consumer loans:
Home equity 349,673 372,505 (22,832) (6.1) 395,835 434,699 465,702 (116,029) (24.9)
Indirect
automobile 26 4 22 550.0 9 24 38 (12) (31.6)
Automobile 8,287 9,024 (737) (8.2) 9,617 10,203 11,136 (2,849) (25.6)
Credit card 501 468 33 7.1 507 508 509 (8) (1.6)
Other 39,926 45,680 (5,754) (12.6) 50,094 52,862 57,874 (17,948) (31.0)
------ ------ ------ ----- ------ ------ ------ ------- -----
Total consumer
loans 398,413 427,681 (29,268) (6.8) 456,062 498,296 535,259 (136,846) (25.6)
------- ------- ------- ---- ------- ------- ------- -------- -----
Total loans $2,208,758 $2,370,047 (161,289) (6.8) $2,511,129 $2,737,712 $2,922,547 (713,789) (24.4)
========== ========== ======== ==== ========== ========== ========== ======== =====
Allowance for
loan losses (2) $(39,077) $(39,150) 73 (0.2) $(39,304) $(40,591) $(40,983) 1,906 (4.7)
Loans, net 2,169,681 2,330,897 (161,216) (6.9) 2,471,825 2,697,121 2,881,564 (711,883) (24.7)
ACQUIRED ASSET QUALITY DATA(3)
Non-accrual
loans $6,504 $6,958 (454) (6.5) $8,399 $6,642 $5,159 1,345 26.1
Other real
estate owned
and foreclosed
assets 11,838 11,935 (97) (0.8) 10,547 12,742 13,749 (1,911) (13.9)
Accruing loans
more than 90
days past due 4,880 282 4,598 1,630.5 297 398 260 4,620 1,776.9
----- --- ----- ------- --- --- --- ----- -------
Total non-
performing
assets $23,222 $19,175 4,047 21.1 $19,243 $19,782 $19,168 4,054 21.1
======= ======= ===== ==== ======= ======= ======= ===== ====
Loans 30-89 days
past due $3,886 $3,967 (81) (2.0) $3,968 $4,686 $6,617 (2,731) (41.3)
Non-performing
assets to total
assets 1.06% 0.81% 0.76% 0.72% 0.65%
Non-performing
assets to total
loans and OREO 1.05 0.81 0.76 0.72 0.65
Allowance for
loan losses to
non-performing
loans 343.3 540.7 452.0 576.6 756.3
Allowance for
loan losses to
non-performing
assets 168.3 204.2 204.3 205.2 213.8
Allowance for
loan losses to
total loans 1.77 1.65 1.57 1.48 1.40
Quarter-to-
date charge-
offs $89 $289 (200) (69.2) $299 $1,025 $171 (82) (48.0)
Quarter-to-
date recoveries (355) (225) (130) 57.8 (175) (296) (304) (51) 16.8
---- ---- ---- ---- ---- ---- ---- --- ----
Quarter-to-
date net
charge-offs/
(recoveries) $(266) $64 (330) (515.6) $124 $729 $(133) (133) 100.0
===== === ==== ====== ==== ==== ===== ==== =====
Net charge-
offs/
(recoveries) to
average loans
(annualized) (0.05)% 0.01% 0.02% 0.10% (0.02)%
(1) For purposes of this table,
energy loans generally include
loans with specific NAICS codes
that relate to the Oil and Gas
E&P, Services or Midstream
industries.
(2) The allowance for loan
losses includes impairment
reserves attributable to
acquired impaired loans.
(3) Acquired non-performing
loans 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.
Table 7 - IBERIABANK CORPORATION
ENERGY LOANS, ENERGY-RELATED COMMITMENTS AND ASSET QUALITY DATA
(Dollars in thousands)
ENERGY LOANS:(1) Linked Qtr Change Year/Year Change
----------------- ----------------
3/31/2017 12/31/2016 $ % 9/30/2016 6/30/2016 3/31/2016 $ %
--------- ---------- --- --- --------- --------- --------- --- ---
E&P $265,696 $290,711 (25,015) (8.6) $301,223 $328,066 $369,725 (104,029) (28.1)
Midstream 123,436 90,120 33,316 37.0 110,821 123,687 130,556 (7,120) (5.5)
Service 174,491 180,362 (5,871) (3.3) 187,597 210,281 231,381 (56,890) (24.6)
------- ------- ------ ---- ------- ------- ------- ------- -----
Total energy
loans $563,623 $561,193 2,430 0.4 $599,641 $662,034 $731,662 (168,039) (23.0)
======== ======== ===== === ======== ======== ======== ======== =====
ENERGY-RELATED COMMITMENTS:
E&P $543,689 $545,061 (1,372) (0.3) $545,383 $572,267 $677,258 (133,569) (19.7)
Midstream 238,186 182,998 55,188 30.2 198,618 201,555 206,504 31,682 15.3
Service 243,991 241,740 2,251 0.9 261,450 295,591 329,282 (85,291) (25.9)
------- ------- ----- --- ------- ------- ------- ------- -----
Total energy-
related
commitments $1,025,866 $969,799 56,067 5.8 $1,005,451 $1,069,413 $1,213,044 (187,178) (15.4)
========== ======== ====== === ========== ========== ========== ======== =====
Total loans net
of unearned
income $15,132,202 $15,064,971 67,231 0.4 $14,924,499 $14,722,561 $14,451,244 680,958 4.7
Energy loan
outstandings as
a % of total
loans 3.7% 3.7% 4.0% 4.5% 5.1%
Energy-related
commitments as a
% of total
commitments 5.2% 4.8% 5.1% 5.4% 6.3%
Allowance for
loan losses $(20,144) $(22,524) 2,380 (10.6) $(28,215) $(33,040) $(38,495) 18,351 (47.7)
Reserve for
unfunded
commitments (203) (1,003) 800 (79.8) (953) (2,223) (903) 700 (77.5)
Allowance for
credit losses (20,347) (23,527) 3,180 (13.5) (29,168) (35,263) (39,398) 19,051 (48.4)
ASSET QUALITY DATA
Non-accrual loans $113,212 $150,329 (37,117) (24.7) $153,620 $60,814 $46,223 66,989 144.9
Other real estate
owned and
foreclosed
assets - - - - - - - - -
Accruing loans
more than 90
days past due 2,175 - 2,175 N/M - - - 2,175 N/M
----- --- ----- --- --- --- --- ----- ---
Total non-
performing
assets $115,387 $150,329 (34,942) (23.2) $153,620 $60,814 $46,223 69,164 149.6
======== ======== ======= ===== ======== ======= ======= ====== =====
Loans 30-89 days
past due $157 $1,526 (1,369) (89.7) $ - $3,055 $ - 157 N/M
Non-performing
assets to total
energy loans and
OREO 20.47% 26.79% 25.62% 9.19% 6.32%
Allowance for
loan losses to
non-performing
loans (2) 17.5 15.0 18.4 54.3 83.3
Allowance for
loan losses to
non-performing
assets 17.5 15.0 18.4 54.3 83.3
Allowance for
loan losses to
total energy
loans 3.57 4.01 4.71 4.99 5.26
Quarter-to-date
charge-offs $2,845 $2,321 $6,957 $7,715 $ -
Quarter-to-date
recoveries - (840) - - -
--- ---- --- --- ---
Quarter-to-date
net charge-offs $2,845 $1,481 $6,957 $7,715 $ -
====== ====== ====== ====== =================
Net charge-offs
to average loans
(annualized) 2.05% 1.02% 4.39% 4.44% 0.00%
(1) For purposes of this table, energy loans generally include loans with specific NAICS codes that relate to the Oil
and Gas E&P, Services or Midstream industries.
(2) Non-performing loans consist of non-accruing loans and accruing loans 90 days or more past due.
N/M -Not
meaningful
TABLE 8 - IBERIABANK CORPORATION
QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES
(Dollars in thousands)
For the Three Months Ended
--------------------------
3/31/2017 12/31/2016 Basis Point Change
--------- ---------- ------------------
ASSETS Average Balance Interest Yield/Rate (TE) Average Balance Interest Yield/Rate (TE) Yield/Rate (TE)
Income/Expense Income/Expense
--- ---
Earning assets:
Commercial loans $10,917,714 $119,605 4.50% $10,759,264 $114,694 4.29% 21
Residential
mortgage loans 1,273,069 12,848 4.04 1,267,413 14,038 4.43 (39)
Consumer loans 2,854,972 36,524 5.19 2,885,673 36,960 5.10 9
--------- ------ ---- --------- ------ ----
Total loans 15,045,755 168,977 4.59 14,912,350 165,692 4.46 13
Loss share
receivable - - 0.00 20,456 (3,539) (68.83) 6,883
--- --- ---- ------ ------ ------
Total loans and
loss share
receivable 15,045,755 168,977 4.59 14,932,806 162,153 4.36 23
Mortgage loans held
for sale 175,512 971 2.21 226,565 1,539 2.72 (51)
Investment
securities (2) 3,741,128 19,927 2.24 3,154,252 15,464 2.09 15
Other earning
assets 1,123,087 2,658 0.96 1,034,980 1,649 0.63 33
--------- ----- ---- --------- ----- ----
Total earning
assets 20,085,482 192,533 3.93 19,348,603 180,805 3.77 16
Allowance for loan
losses (145,326) (150,499)
Non-earning assets 1,921,345 2,018,155
--------- ---------
Total assets $21,861,501 $21,216,259
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
NOW accounts $3,239,085 $3,090 0.39% $2,981,967 $2,483 0.33% 6
Savings and money
market accounts 7,211,545 8,329 0.47 6,869,614 7,732 0.45 2
Certificates of
deposit 2,083,749 4,638 0.90 2,172,967 4,785 0.88 2
--------- ----- ---- --------- ----- ----
Total interest-
bearing deposits
(3) 12,534,379 16,057 0.52 12,024,548 15,000 0.50 2
Short-term
borrowings 410,726 277 0.27 603,683 552 0.36 (9)
Long-term debt 618,494 3,381 2.22 664,463 3,588 2.15 7
------- ----- ---- ------- ----- ----
Total interest-
bearing
liabilities 13,563,599 19,715 0.59 13,292,694 19,140 0.57 2
Non-interest-
bearing deposits 4,976,945 4,869,095
Non-interest-
bearing
liabilities 221,993 300,768
------- -------
Total liabilities 18,762,537 18,462,557
Total shareholders'
equity 3,098,964 2,753,702
--------- ---------
Total liabilities
and shareholders'
equity $21,861,501 $21,216,259
=========== ===========
Net interest income/Net interest spread $172,818 3.34% $161,665 3.20% 14
Tax-equivalent benefit 2,491 0.05 2,340 0.05 -
----- -----
Net interest income (TE)/Net interest margin (TE) (1) $175,309 3.53% $164,005 3.38% 15
======== ========
(1) Fully taxable equivalent (TE)
calculations include the tax
benefit associated with related
income sources that are tax-
exempt using a rate of 35%,
which approximates the marginal
tax rate.
(2) Balances exclude unrealized
gain or loss on securities
available for sale and the
impact of trade date accounting.
(3) Total deposit costs for the
three months ended March 31,
2017 and December 31, 2016 total
0.37% and 0.35%, respectively.
TABLE 8 Continued - IBERIABANK CORPORATION
QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES
(Dollars in thousands)
For the Three Months Ended
--------------------------
9/30/2016 6/30/2016 3/31/2016
--------- --------- ---------
ASSETS Average Balance Interest Yield/Rate (TE) Average Balance Interest Yield/Rate (TE) Average Balance Interest Yield/Rate (TE)
Income/Expense Income/Expense Income/Expense
--- --- ---
Earning assets:
Commercial loans $10,646,874 $116,653 4.41% $10,458,822 $114,588 4.46% $10,250,555 $113,417 4.51%
Residential
mortgage loans 1,254,665 13,718 4.37 1,221,254 13,781 4.51 1,202,692 13,429 4.47
Consumer loans 2,900,660 37,413 5.13 2,890,869 37,200 5.18 2,901,163 37,145 5.15
--------- ------ ---- --------- ------ ---- --------- ------ ----
Total loans 14,802,199 167,784 4.55 14,570,945 165,569 4.61 14,354,410 163,991 4.63
Loss share
receivable 27,694 (3,935) (56.53) 32,189 (4,163) (52.01) 37,360 (4,386) (47.22)
------ ------ ------ ------ ------ ------ ------ ------ ------
Total loans and
loss share
receivable 14,829,893 163,849 4.44 14,603,134 161,406 4.48 14,391,770 159,605 4.49
Mortgage loans held
for sale 219,369 1,774 3.24 211,468 1,850 3.50 160,873 1,401 3.48
Investment
securities (2) 2,830,892 13,815 2.08 2,856,805 14,663 2.17 2,866,974 15,212 2.24
Other earning
assets 641,080 1,066 0.66 483,597 775 0.64 453,737 718 0.64
------- ----- ---- ------- --- ---- ------- --- ----
Total earning
assets 18,521,234 180,504 3.93 18,155,004 178,694 4.01 17,873,354 176,936 4.03
Allowance for loan
losses (149,101) (149,037) (141,393)
Non-earning assets 2,020,695 1,997,950 1,929,350
--------- --------- ---------
Total assets $20,392,828 $20,003,917 $19,661,311
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
NOW accounts $2,936,130 $2,313 0.31% $2,911,510 $2,080 0.29% $2,859,940 $1,940 0.27%
Savings and money
market accounts 6,359,006 5,826 0.36 6,486,242 5,527 0.34 6,598,838 5,640 0.34
Certificates of
deposit 2,176,159 4,592 0.84 2,117,711 4,309 0.82 2,098,032 4,354 0.83
--------- ----- ---- --------- ----- ---- --------- ----- ----
Total interest-
bearing
deposits(3) 11,471,295 12,731 0.44 11,515,463 11,916 0.42 11,556,810 11,934 0.42
Short-term
borrowings 732,451 753 0.41 624,302 662 0.43 494,670 485 0.39
Long-term debt 682,708 3,603 2.10 593,305 3,363 2.28 523,503 3,114 2.39
------- ----- ---- ------- ----- ---- ------- ----- ----
Total interest-
bearing
liabilities 12,886,454 17,087 0.53 12,733,070 15,941 0.51 12,574,983 15,533 0.50
Non-interest-
bearing deposits 4,605,447 4,463,928 4,388,259
Non-interest-
bearing
liabilities 239,911 203,050 167,810
------- ------- -------
Total liabilities 17,731,812 17,400,048 17,131,052
Total shareholders'
equity 2,661,016 2,603,869 2,530,259
--------- --------- ---------
Total liabilities
and shareholders'
equity $20,392,828 $20,003,917 $19,661,311
=========== =========== ===========
Net interest income/Net interest spread $163,417 3.40% $162,753 3.50% $161,403 3.53%
Tax-equivalent benefit 2,330 0.05 2,290 0.05 2,325 0.05
----- ----- -----
Net interest income (TE)/Net interest margin (TE) (1) $165,747 3.56% $165,043 3.65% $163,728 3.68%
======== ======== ========
(1) Fully taxable equivalent (TE)
calculations include the tax
benefit associated with related
income sources that are tax-
exempt using a rate of 35%,
which approximates the marginal
tax rate.
(2) Balances exclude unrealized
gain or loss on securities
available for sale and the
impact of trade date accounting.
(3) Total deposit costs for the
three months ended September 30,
2016, June 30, 2016 and March
31, 2016 total 0.32%, 0.30% and
0.30%, respectively.
Table 9 - IBERIABANK CORPORATION
LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS
(Dollars in millions)
For the Three Months Ended
--------------------------
3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
--------- ---------- --------- --------- ---------
AS REPORTED (US GAAP) Income Average Balance Yield Income Average Balance Yield Income Average Balance Yield Income Average Balance Yield Income Average Balance Yield
------ --------------- ----- ------ --------------- ----- ------ --------------- ----- ------ --------------- ----- ------ --------------- -----
Legacy loans, net $131 $12,760 4.12% $125 $12,481 3.97% $123 $12,183 4.00% $118 $11,737 4.04% $115 $11,319 4.05%
Acquired loans (1) 38 2,286 6.81 37 2,452 5.99 41 2,647 6.16 43 2,866 6.07 45 3,073 5.90
--- ----- ---- --- ----- ---- --- ----- ---- --- ----- ---- --- ----- ----
Total loans $169 $15,046 4.55% $162 $14,933 4.30% $164 $14,830 4.38% $161 $14,603 4.43% $160 $14,392 4.45%
==== ======= ==== ==== ======= ==== ==== ======= ==== ==== ======= ==== ==== ======= ====
3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
--------- ---------- --------- --------- ---------
ADJUSTMENTS Income Average Balance Yield Income Average Balance Yield Income Average Balance Yield Income Average Balance Yield Income Average Balance Yield
------ --------------- ----- ------ --------------- ----- ------ --------------- ----- ------ --------------- ----- ------ --------------- -----
Legacy loans, net $ - $ - 0.00% $ - $ - 0.00% $ - $ - 0.00% $ - $ - 0.00% $ - $ - 0.00%
Acquired loans (1) (11) 87 (2.08) (8) 73 (1.43) (9) 76 (1.49) (9) 84 (1.41) (7) 86 (1.05)
--- --- ----- --- --- ----- --- --- ----- --- --- ----- --- --- -----
Total loans $(11) $87 (0.31)% $(8) $73 (0.23)% $(9) $76 (0.26)% $(9) $84 (0.27)% $(7) $86 (0.22)%
==== === ====== === === ====== === === ====== === === ====== === === ======
3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
--------- ---------- --------- --------- ---------
AS ADJUSTED (CASH YIELD,
NON-GAAP) Income Average Balance Yield Income Average Balance Yield Income Average Balance Yield Income Average Balance Yield Income Average Balance Yield
------ --------------- ----- ------ --------------- ----- ------ --------------- ----- ------ --------------- ----- ------ --------------- -----
Legacy loans, net $131 $12,760 4.12% $125 $12,481 3.97% $123 $12,183 4.00% $118 $11,737 4.04% $115 $11,319 4.05%
Acquired loans (1) 27 2,373 4.73 29 2,525 4.56 32 2,723 4.67 34 2,950 4.67 38 3,159 4.85
--- ----- ---- --- ----- ---- --- ----- ---- --- ----- ---- --- ----- ----
Total loans $158 $15,133 4.24% $154 $15,006 4.07% $155 $14,906 4.12% $152 $14,687 4.16% $153 $14,478 4.23%
==== ======= ==== ==== ======= ==== ==== ======= ==== ==== ======= ==== ==== ======= ====
(1) Acquired loans include the
impact of the FDIC Indemnification
Asset in periods prior to loss
share termination in December 2016.
Table 10 - IBERIABANK CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
For the Three Months Ended
--------------------------
3/31/2017 12/31/2016 9/30/2016
--------- ---------- ---------
Pre-tax After-tax (1) Per share (2) Pre-tax After-tax (1) Per share (2) Pre-tax After-tax(1) Per share (2)
------- ------------ ------------ ------- ------------ ------------ ------- ----------- ------------
Net income $72,992 $50,473 $1.08 $58,164 $45,130 $1.06 $72,615 $48,068 $1.17
Preferred stock
dividends - (3,599) (0.08) - (957) (0.02) - (3,590) (0.09)
--- ------ ----- --- ---- ----- --- ------ -----
Income available
to common
shareholders
(GAAP) $72,992 $46,874 $1.00 $58,164 $44,173 $1.04 $72,615 $44,478 $1.08
Non-interest income adjustments:
Gain on sale of
investments and
other non-
interest income (1) - - (5) (3) - (12) (8) -
Non-interest expense adjustments:
Merger-related
expense 54 35 - - - - - - -
Severance expense 98 63 - 188 122 - - - -
Impairment of
long-lived
assets, net of
(gain) loss on
sale 1,429 929 0.02 (462) (300) (0.01) - - -
Loss on early
termination of
loss share
agreements - - - 17,798 11,569 0.28 - - -
Other non-core
non-interest
expense - - - 484 314 0.01 - - -
--- --- --- --- --- ---- --- --- ---
Total non-
interest expense
adjustments 1,581 1,027 0.02 18,008 11,705 0.28 - - -
Income tax
benefits - - - - (6,836) (0.16) - - -
--- --- --- --- ------ ----- --- --- ---
Core earnings
(Non-GAAP) 74,572 47,901 1.02 76,167 49,039 1.16 72,603 44,470 1.08
Provision for loan
losses 6,154 4,000 0.09 5,169 3,360 0.08 12,484 8,115 0.2
----- ----- ---- ----- ----- ---- ------ ----- ---
Core pre-
provision
earnings (Non-
GAAP) $80,726 $51,901 $1.11 $81,336 $52,399 $1.24 $85,087 $52,585 $1.28
======= ======= ===== ======= ======= ===== ======= ======= =====
For the Three Months Ended
--------------------------
6/30/2016 3/31/2016
--------- ---------
Pre-tax After-tax (1) Per share (2) Pre-tax After-tax (1) Per share (2)
------- ------------ ------------ ------- ------------ ------------
Net income $76,300 $50,810 $1.23 $64,891 $42,769 $1.03
Preferred stock
dividends - (854) (0.02) - (2,576) (0.06)
--- ---- ----- --- ------ -----
Income available
to common
shareholders
(GAAP) $76,300 $49,956 $1.21 $64,891 $40,193 $0.97
Non-interest income adjustments:
Gain on sale of
investments and
other non-
interest income (1,789) (1,163) (0.03) (196) (127) -
Non-interest expense adjustments:
Merger-related
expense - - - 3 2 -
Severance expense 140 91 - 454 295 0.01
Impairment of
long-lived
assets, net of
(gain) loss on
sale (1,256) (816) (0.02) 1,044 679 0.01
Other non-core
non-interest
expense 1,177 765 0.02 1,091 709 0.02
----- --- ---- ----- --- ----
Total non-
interest expense
adjustments 61 40 - 2,592 1,685 0.04
Income tax
benefits - - - - - -
--- --- --- --- --- ---
Core earnings
(Non-GAAP) 74,572 48,833 1.18 67,287 41,751 1.01
Provision for loan
losses 11,866 7,712 0.19 14,905 9,688 0.24
------ ----- ---- ------ ----- ----
Core pre-
provision
earnings (Non-
GAAP) $86,438 $56,545 $1.37 $82,192 $51,439 $1.25
======= ======= ===== ======= ======= =====
(1) After-tax amounts, excluding
preferred stock dividends, are
calculated using a tax rate of
35%, which approximates the
marginal tax rate.
(2) Diluted per share amounts may
not appear to foot due to
rounding.
Table 11 - IBERIABANK CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
For the Three Months Ended
--------------------------
3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
--------- ---------- --------- --------- ---------
Net interest income
(GAAP) $172,818 $161,665 $163,417 $162,753 $161,403
Add: Effect of tax
benefit on
interest income 2,491 2,340 2,330 2,290 2,325
----- ----- ----- ----- -----
Net interest income
(TE) (Non-GAAP)
(1) 175,309 164,005 165,747 165,043 163,728
------- ------- ------- ------- -------
Non-interest
income (GAAP) 47,346 53,238 59,821 64,917 55,845
Add: Effect of tax
benefit on non-
interest income 706 713 703 760 647
--- --- --- --- ---
Non-interest
income (TE) (Non-
GAAP) (1) 48,052 53,951 60,524 65,677 56,492
------ ------ ------ ------ ------
Taxable equivalent
revenues (Non-
GAAP) (1) 223,361 217,956 226,271 230,720 220,220
Securities gains
and other non-
interest income (1) (5) (12) (1,789) (196)
--- --- --- ------ ----
Core taxable
equivalent
revenues (Non-
GAAP) (1) $223,360 $217,951 $226,259 $228,931 $220,024
======== ======== ======== ======== ========
Total non-interest
expense (GAAP) $141,018 $151,570 $138,139 $139,504 $137,452
Less: Intangible
amortization
expense 1,770 2,087 2,106 2,109 2,113
----- ----- ----- ----- -----
Tangible non-
interest expense
(Non-GAAP) (2) 139,248 149,483 136,033 137,395 135,339
------- ------- ------- ------- -------
Less: Merger-
related expense 54 - - - 3
Severance expense 98 188 - 140 454
(Gain) Loss on sale
of long-lived
assets, net of
impairment 1,429 (462) - (1,256) 1,044
Loss on early
termination of
loss share
agreements - 17,798 - - -
Other non-core
non-interest
expense - 484 - 1,177 1,091
--- --- --- ----- -----
Core tangible non-
interest expense
(Non-GAAP) (2) $137,667 $131,475 $136,033 $137,334 $132,747
======== ======== ======== ======== ========
Return on average
assets (GAAP) 0.94% 0.85% 0.94% 1.02% 0.87%
Effect of non-core
revenues and
expenses 0.02 0.09 0.00 (0.02) 0.03
---- ---- ---- ----- ----
Core return on
average assets
(Non-GAAP) 0.96% 0.94% 0.94% 1.00% 0.90%
==== ==== ==== ==== ====
Efficiency ratio
(GAAP) 64.1% 70.5% 61.9% 61.3% 63.3%
Effect of tax
benefit related to
tax-exempt income (1.0) (1.0) (0.9) (0.8) (0.9)
---- ---- ---- ---- ----
Efficiency ratio
(TE) (Non-GAAP)
(1) 63.1% 69.5% 61.0% 60.5% 62.4%
Effect of
amortization of
intangibles (0.8) (1.0) (0.9) (0.9) (1.0)
Effect of non-core
items (0.7) (8.2) 0.0 0.4 (1.1)
---- ---- --- --- ----
Core tangible
efficiency ratio
(TE) (Non-GAAP)
(1) (2) 61.6% 60.3% 60.1% 60.0% 60.3%
==== ==== ==== ==== ====
Return on average
common equity
(GAAP) 6.41% 6.70% 7.00% 8.05% 6.59%
Effect of
intangibles(2) 2.39 3.01 3.30 3.85 3.30
Effect of non-core
revenues and
expenses 0.19 1.04 0.00 (0.26) 0.37
---- ---- ---- ----- ----
Core return on
average tangible
common equity
(Non-GAAP) (2) 8.99% 10.75% 10.30% 11.64% 10.26%
==== ===== ===== ===== =====
Total shareholders'
equity (GAAP) $3,457,975 $2,939,694 $2,667,110 $2,637,597 $2,547,909
Less: Goodwill and
other intangibles 753,991 755,765 757,856 759,966 764,730
Preferred stock 132,097 132,097 132,097 132,098 76,812
------- ------- ------- ------- ------
Tangible common
equity (Non-GAAP)
(2) $2,571,887 $2,051,832 $1,777,157 $1,745,533 $1,706,367
========== ========== ========== ========== ==========
Total assets (GAAP) $22,008,479 $21,659,190 $20,788,566 $20,160,855 $20,092,563
Less: Goodwill and
other intangibles 753,991 755,765 757,856 759,966 764,730
------- ------- ------- ------- -------
Tangible assets
(Non-GAAP) (2) $21,254,488 $20,903,425 $20,030,710 $19,400,889 $19,327,833
=========== =========== =========== =========== ===========
Tangible common
equity ratio (Non-
GAAP) (2) 12.10% 9.82% 8.87% 9.00% 8.83%
===== ==== ==== ==== ====
(1) Fully taxable equivalent (TE)
calculations include the tax
benefit associated with related
income sources that are tax-
exempt using a rate of 35%, which
approximates the marginal tax
rate.
(2) Tangible calculations eliminate
the effect of goodwill and
acquisition-related intangibles
and the corresponding amortization
expense on a tax-effected basis
where applicable.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/iberiabank-corporation-reports-first-quarter-results-300447694.html
SOURCE IBERIABANK Corporation
