IBERIABANK CORPORATION LAFAYETTE, La., July 20, 2017 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 130-year-old IBERIABANK (www.iberiabank.com), reported financial results for the quarter ended June 30, 2017. For the quarter, the Company reported income available to common shareholders of $51.1 million, or $0.99 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 second quarter of 2017 was $1.10 per common share (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 expected, we experienced a seasonal rebound in our operating performance in the second quarter. First, our team delivered exemplary period-end loan growth rates of 18% for legacy loans and 11% for total loans, on an annualized basis. Second, our margin and non-interest income gained considerably during the quarter, benefited by rising interest rates and improvements in our fee businesses. Third, we gained operating efficiency, as evidenced by the improvements in our efficiency ratio to 61.6% and core tangible efficiency ratio to 57.6%, well below our 60% target. Finally, profitability improved as ROA increased to 96 basis points and core ROA increased to 106 basis points. We continue to make good progress on multiple fronts."
Byrd continued, "Our acquisition of Sabadell United Bank remains on track as well. We received all regulatory approvals within 92 days of announcing the acquisition, and we anticipate completing the acquisition 11 days from now. Our respective teams have worked diligently to ensure a smooth and seamless transition for the clients and associates of Sabadell United Bank. We are excited to partner with Sabadell United Bank, and we look forward to working together as one team."
Highlights for the second quarter of 2017 and at June 30, 2017:
-- The Company's reported and cash net interest margins improved 18 and 15
basis points, on a linked quarter basis, to 3.71% and 3.45%,
respectively. On a linked quarter basis, recoveries on acquired loans
accounted for a $3.0 million increase in net interest income, or 11
basis points of the net interest margin improvement in the second
quarter. The remaining seven basis point margin improvement was
primarily the result of recent increases in rate indexes and reduced
excess liquidity.
-- Non-interest income increased $8.6 million, or 18%, on a linked quarter
basis, primarily as a result of seasonal growth in the Company's fee
income businesses.
-- Energy-related loans ("energy loans") decreased $12 million and equated
to 3.5% of total loans at June 30, 2017, compared to 3.7% at March 31,
2017. Classified energy loans decreased 30%, and non-performing energy
assets decreased 18% during the second quarter of 2017.
-- Net charge-offs increased $4.8 million, on a linked quarter basis, and
equated to an annualized 0.29% of average loans. The provision for loan
losses increased $5.9 million, or 96%.
-- During the second quarter of 2017, the Company recorded an estimated $6
million settlement accrual associated with the previously disclosed U.S.
Department of Housing and Urban Development lawsuit. The Company
believes the matter will likely be settled by the end 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. The Company has
received regulatory approvals to complete the acquisition and
anticipates closing the transaction on July 31, 2017. The estimated
dilutive impact of carrying common stock sold in advance of completing
the acquisition was approximately $0.17 per common share during the
second quarter of 2017. The Company incurred approximately $1.4 million
in acquisition, conversion, and severance-related non-core expenses
during the second quarter of 2017.
Table A - Summary Financial Results
(Dollars in thousands, except per share data)
For the Three Months Ended
--------------------------
6/30/2017 3/31/2017 % Change 6/30/2016 % Change
--------- --------- -------- --------- --------
GAAP BASIS:
Income available
to common
shareholders $51,069 $46,874 8.9 $49,956 2.2
Earnings per
common share -
diluted 0.99 1.00 (1.0) 1.21 (18.2)
Average loans, net
of unearned
income $15,284,007 $15,045,755 1.6 $14,570,945 4.9
Average total
deposits 17,160,848 17,511,324 (2.0) 15,979,391 7.4
Net interest
margin (TE) (1) 3.71% 3.53% 3.65%
Total revenues $239,609 $220,164 8.8 $227,670 5.2
Total non-
interest expense 147,508 141,018 4.6 139,504 5.7
Efficiency ratio 61.6% 64.1% 61.3%
Return on average
assets 0.96 0.94 1.02
Return on average
common equity 6.08 6.41 8.05
NON-GAAP BASIS
(2):
Core revenues $239,550 $220,163 8.8 $225,881 6.1
Core non-interest
expense 141,370 139,437 1.4 139,443 1.4
Core earnings per
common share -
diluted 1.10 1.02 7.8 1.18 (6.8)
Core tangible
efficiency ratio
(TE) (1) (4) 57.6% 61.6% 60.0%
Core return on
average assets 1.06 0.96 1.00
Core return on
average tangible
common equity (4) 8.86 8.99 11.64
Net interest
margin (TE) -
cash basis (1)
(3) 3.45 3.30 3.44
(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 12 and Table 13 for GAAP to Non-GAAP reconciliations.
(3) See Table 11 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 increased $238 million, or 2%, and the associated tax-equivalent yield increased 15 basis points. Over that period, average legacy loans increased $390 million, or 3%, with an increase in yield of 15 basis points, and average acquired loans decreased $152 million, or 7%, and the yield increased 59 basis points. All other average earning assets, including investment securities, mortgage loans held for sale, and interest-bearing deposits in other institutions, decreased a net of $215 million, or 4%.
Primarily as a result of rising short-term interest rates, lower levels of balance sheet liquidity, and recoveries on acquired loans, the Company's reported and cash net interest margins increased 18 and 15 basis points, respectively, on a linked quarter basis.
On a linked quarter basis, average earning assets increased $23 million, or less than 1%, and the average earning asset yield increased 20 basis points. Average interest-bearing liabilities decreased $414 million, or 3%, and the cost of interest-bearing liabilities increased five basis points. On a linked quarter basis, tax-equivalent net interest income increased $10.8 million, or 6%.
The Company's provision for loan losses increased $5.9 million, or 96%, on a linked quarter basis to $12.1 million. The provision for loan losses covered net charge-offs in the second quarter of 2017 by 111% compared to 102% in the first quarter of 2017.
In the second quarter of 2017, non-interest income on a GAAP and non-core basis each increased $8.6 million, or 18%, compared to the first quarter of 2017. The primary changes in non-interest income on a linked quarter basis were:
-- Increased mortgage income of $5.6 million, or 40%;
-- Increased title revenues of $1.5 million, or 31%;
-- Increased treasury management income of $0.4 million, or 8%;
-- Increased deposit service charge income of $0.3 million, or 2%;
-- Increased credit/debit card fee income of $0.2 million, or 6%; and
-- Increased client derivative income of $0.2 million, or 16%.
In the second quarter of 2017, the Company originated $546 million in residential mortgage loans, up $162 million, or 42%, on a linked quarter basis. Client loan refinancing opportunities accounted for approximately 14% of mortgage loan applications in the second quarter of 2017, compared to 21% on a linked quarter basis. The Company sold $508 million in mortgage loans during the second quarter of 2017, up $81 million, or 19%, on a linked quarter basis. Loans held for sale increased from $122 million at March 31, 2017, to $141 million at June 30, 2017. The mortgage origination locked pipeline was $249 million at June 30, 2017, up $9 million, or 4%, between quarter-ends, and was down 28% compared to one year ago. At July 19, 2017, the locked mortgage pipeline was $250 million, up less than 1% compared to June 30, 2017.
Non-interest expense increased $6.5 million, or 5%, on a linked quarter basis. During the second quarter of 2017, the Company's non-core expenses included $1.1 million in merger and conversion-related costs and $0.4 million in severance costs, offset by a $1.3 million gain on the sale of former IBERIABANK properties. In addition, during the second quarter of 2017, the Company recorded an estimated $6 million settlement accrual associated with the previously disclosed U.S. Department of Housing and Urban Development lawsuit. The Company believes the matter will likely be settled by the end of 2017.
Excluding non-core expenses, core non-interest expense increased $2 million, or 1%, and was comprised of the following items on a linked-quarter basis:
-- Increased salary and benefits cost of $3.9 million, or 5%, which
included:
-- Increased regular compensation expenses of $2.2 million;
-- Increased mortgage commission expenses of $2.0 million; and
-- Increased incentives and other benefit expenses of $1.5 million;
partially offset by
-- Decreased payroll tax expense of $1.1 million;
-- Decreased health care costs of $0.7 million;
-- Decreased provision for unfunded commitments of $1.6 million; and
-- Decreased other expenses of $0.3 million.
On a linked quarter basis, the Company's revenues and non-GAAP core revenues each increased $19.4 million, or 9%. Over the same period, GAAP expenses increased $6.5 million, or 5%, and non-GAAP core expenses increased $2.0 million, or 1%. The efficiency ratio decreased from 64.1% to 61.6%, while the non-GAAP core tangible efficiency ratio decreased from 61.6% to 57.6% on a linked quarter basis. The Company continues to focus on expense containment and revenue enhancement strategies intended to further improve these ratios.
The effective tax rate increased from 30.9% in the first quarter of 2017 to 35.0% in the second quarter of 2017. Due to a recent change in accounting principle, the effective tax rate for the first quarter of 2017 was favorably impacted by a $1.8 million decrease in income tax expense associated with restricted stock vesting during the quarter. Vesting and exercise of share-based compensation is expected to impact income 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
------------------------------------
6/30/2017 3/31/2017 % Change 6/30/2016 % Change
--------- --------- -------- --------- --------
PERIOD-END BALANCES:
Total loans, net of unearned
income $15,556,016 $15,132,202 2.8 $14,722,561 5.7
Legacy loans, net of unearned
income 13,493,410 12,923,444 4.4 11,984,849 12.6
Total deposits 16,853,116 17,312,265 (2.7) 15,862,027 6.2
ASSET QUALITY RATIOS
(LEGACY):
Loans 30-89 days past due and
still accruing as a
percentage of total loans 0.30% 0.25% 0.38%
Loans 90 days or more past
due and still accruing as a
percentage of total loans 0.00 0.02 0.00
Non-performing assets to
total assets (1) 0.87 0.99 0.63
Classified assets to total
assets (2) 1.43 1.60 2.09
CAPITAL RATIOS:
Tangible common equity ratio
(Non-GAAP) (3) (4) 12.45% 12.10% 9.00%
Tier 1 leverage ratio (5) 13.19 12.91 9.70
Total risk-based capital
ratio (5) 16.74 16.92 12.47
PER COMMON SHARE DATA:
Book value $66.08 $65.25 1.3 $61.05 8.2
Tangible book value (Non-
GAAP) (3) (4) 51.33 50.46 1.7 42.53 20.7
Closing stock price 81.50 79.10 3.0 59.73 36.4
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 $283 million, $316 million and $364 million at June 30, 2017, March 31, 2017, and June 30, 2016, respectively.
(3) See Table 12 and Table 13 for GAAP to Non-GAAP reconciliations.
(4) Tangible calculations eliminate the effect of goodwill and acquisition related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable.
(5) Regulatory capital ratios as of June 30, 2017 are preliminary.
Loans
Total loans increased $424 million, or 3%, between March 31, 2017, and June 30, 2017. Over that period, acquired loans decreased $146 million, or 7%, and legacy loans increased $570 million, or 4% (18% annualized rate), including a decrease in total energy loans of $12 million, or 2%, and a decline in indirect automobile loans of $18 million, or 16%. During the second quarter of 2017, legacy commercial loans increased $475 million, or 5%, legacy consumer loans increased $26 million, or 1%, and legacy mortgage loans increased $69 million, or 8%. Period-end loan growth during the second quarter of 2017 was strongest in the Atlanta, Dallas, Orlando, Baton Rouge, Naples, and Tampa markets. Funded loan origination and renewal mix in the second quarter of 2017 was 41% fixed rate and 59% floating rate, and total loans outstanding (excluding non-accruals) were 43% fixed and 57% floating. Commitments originated and/or renewed during the second quarter of 2017 were $1.6 billion (up 28% on a linked quarter basis). Loans originated and/or renewed during the second quarter of 2017 totaled $1.0 billion (up 24% on a linked quarter basis). At June 30, 2017, the Company's probability-weighted commercial loan pipeline was approximately $1.0 billion.
Table C - Period-End Loans
(Dollars in thousands)
As of and For the Three Months Ended
------------------------------------
Linked Qtr Change Year/Year Change Mix
----------------- ---------------- ---
6/30/2017 3/31/2017 6/30/2016 $ % Annualized $ % 6/30/2017 3/31/2017
--------- --------- --------- --- --- ---------- --- --- --------- ---------
Legacy loans:
Commercial $10,055,791 $9,581,229 $8,784,789 474,562 5.0 19.8% 1,271,002 14.5 74.5% 74.1%
Residential
mortgage 970,961 901,859 794,701 69,102 7.7 30.6% 176,260 22.2 7.2% 7.0%
Consumer 2,466,658 2,440,356 2,405,359 26,302 1.1 4.3% 61,299 2.5 18.3% 18.9%
--------- --------- --------- ------ --- --- ------ --- ---- ----
Total legacy
loans 13,493,410 12,923,444 11,984,849 569,966 4.4 17.6% 1,508,561 12.6 100.0% 100.0%
Acquired
loans:
Balance at
beginning of
period 2,208,758 2,370,047 2,922,547 (161,289) (6.8) (713,789) (24.4)
Loans acquired
during the
period - - - - - - -
Net paydown
activity (146,152) (161,289) (184,835) 15,137 (9.4) 38,683 (20.9)
-------- -------- -------- ------ ---- ------ -----
Total acquired
loans 2,062,606 2,208,758 2,737,712 (146,152) (6.6) (675,106) (24.7)
Total loans $15,556,016 $15,132,202 $14,722,561 423,814 2.8 833,455 5.7
=========== =========== =========== ======= === ======= ===
Energy loans outstanding totaled $552 million at June 30, 2017, down $12 million, or 2%, compared to March 31, 2017, and equated to approximately 3.5% of total loans (compared to 3.7% at March 31, 2017). Energy-related commitments totaled $1.0 billion at June 30, 2017, up $4 million, or less than 1%, compared to March 31, 2017. E&P companies accounted for 48% of energy loans outstanding and 55% of energy loan commitments, midstream companies accounted for 19% of energy loans and 21% of energy loan commitments, and service companies accounted for 33% of energy loans and 24% of energy loan commitments.
At June 30, 2017, $95 million in energy loans were on non-accrual status (down $19 million, or 16%, compared to March 31, 2017), and $2.4 million in energy loans (excluding non-accruing loans) were past due greater than 30 days at quarter-end. Classified energy loans decreased $54 million, or 30%, and criticized energy loans decreased $71 million, or 29%, between quarter-ends. At June 30, 2017, approximately 23% of energy loans were classified and 32% were criticized, compared to approximately 32% and 44%, respectively, at March 31, 2017. Since December 2014, 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 8 of this press release and in the supplemental investor presentation.
At June 30, 2017, the Company's indirect automobile lending business had approximately $92 million in loans outstanding, down $18 million, or 16%, compared to March 31, 2017 (0.6% of total loans outstanding compared to 0.7% at March 31, 2017).
Deposits
Total deposits decreased $459 million, or 3%, between March 31, 2017 and June 30, 2017. Over that period, non-interest-bearing deposits decreased $11 million, or less than 1%, and equated to 30% of total deposits at June 30, 2017. Money market accounts decreased $355 million, or 6%, NOW accounts increased $4 million, or less than 1%, time deposits decreased $81 million, or 4%, and savings deposits declined $15 million, or 2%. Deposit growth during the second quarter of 2017 was strongest in the Lake Charles, Huntsville, Birmingham, Dallas, and Baton Rouge markets.
Table D - Period-End Deposits
(Dollars in thousands)
Linked Qtr Change Year/Year Change Mix
----------------- ---------------- ---
6/30/2017 3/31/2017 6/30/2016 $ % Annualized $ % 6/30/2017 3/31/2017
--------- --------- --------- --- --- ---------- --- --- --------- ---------
Non-
interest-
bearing $5,020,195 $5,031,583 $4,539,254 (11,388) (0.2) (0.9%) 480,941 10.6 29.8% 29.1%
NOW
accounts 3,089,482 3,085,720 2,985,284 3,762 0.1 0.5% 104,198 3.5 18.3% 17.8%
Money
market
accounts 6,017,654 6,372,855 5,391,390 (355,201) (5.6) (22.3%) 626,264 11.6 35.7% 36.8%
Savings
accounts 797,859 813,009 796,855 (15,150) (1.9) (7.5%) 1,004 0.1 4.8% 4.7%
Time
deposits 1,927,926 2,009,098 2,149,244 (81,172) (4.0) (16.2%) (221,318) (10.3) 11.4% 11.6%
Total
deposits $16,853,116 $17,312,265 $15,862,027 (459,149) (2.7) (10.6%) 991,089 6.2 100.0% 100.0%
=========== =========== =========== ======== ==== ====== ======= === ===== =====
On an average balance and linked quarter basis, non-interest-bearing deposits increased $16 million, or less than 1%, and interest-bearing deposits decreased $366 million, or 3%. The rate on average interest-bearing deposits in the second quarter of 2017 was 0.56%, up four basis points on a linked quarter basis, while the cost of total deposits (including non-interest bearing deposits) was 0.40%, up three basis points. The increase in the cost of interest-bearing deposits was primarily the result of a less favorable change in the mix of interest-bearing deposits during the second quarter of 2017. Marginal deposit rates remained relatively stable throughout the second quarter of 2017.
Other Assets And Funding
On an average balance and linked quarter basis, the investment portfolio increased $288 million, or 8%, in the second quarter of 2017, to $4.0 billion. On a period-end basis, the investment portfolio equated to $4.1 billion, or 19% of total assets at June 30, 2017, up $184 million, or 5%, compared to March 31, 2017. The investment portfolio had an effective duration of 3.5 years at June 30, 2017, compared to 3.8 years at March 31, 2017. The investment portfolio had a $19 million unrealized loss at June 30, 2017, an improvement from a $32 million unrealized loss at March 31, 2017. The average yield on investment securities increased eight basis points on a linked quarter basis to 2.32% in the second quarter of 2017. The Company holds in its investment portfolio primarily government agency securities. Municipal securities comprised 9% of total investments at June 30, 2017.
On a linked quarter basis, average short-term borrowings (including repurchase agreements) decreased $58 million, or 14%, and the cost of short-term borrowings decreased one basis point. At June 30, 2017, short-term borrowings (including repurchase agreements) increased $135 million, or 30%, compared to March 31, 2017. On a linked quarter basis, average long-term debt increased $10 million, or 2%, and the cost of long-term debt increased seven basis points to 2.29%. The cost of average interest-bearing liabilities was 0.64% in the second quarter of 2017, up five basis points on a linked quarter basis.
Asset Quality
Non-performing assets ("NPAs") decreased $21 million, or 10%, to $198 million at June 30, 2017. Acquired NPAs increased $4 million, while legacy NPAs, which include energy and non-energy loans, decreased $25 million, or 13%, and equated to 0.87% of total assets (down from 0.99% at March 31, 2017). Energy-related NPAs (which are included in legacy loans) decreased by $21 million, or 18%, and accounted for nearly all of the decline in the Company's total NPAs during the second quarter of 2017. At June 30, 2017, non-energy-related NPAs remained essentially unchanged during the second quarter, and equated to 0.49% of non-energy-related assets.
Aggregate loans past due 30 to 89 days increased $15 million, or 41%, and equated to 0.33% of total loans at June 30, 2017, compared to 0.24% at March 31, 2017.
Net charge-offs totaled $10.9 million in the second quarter of 2017, up $4.8 million, or 80%, compared to the first quarter of 2017. Annualized net charge-offs equated to 0.29% of average loans in the second quarter of 2017, a 13 basis point increase on a linked quarter basis. The Company reported no energy-related net charge-offs during the second quarter of 2017. Approximately half of the linked-quarter increase in net charge-offs was associated with one commercial loan. The Company believes that credit situation was an isolated event and not indicative of a change in asset quality trends or general deterioration in the loan portfolio.
Capital Position
At June 30, 2017, the Company reported a non-GAAP tangible common equity ratio of 12.45%, up 35 basis points compared to March 31, 2017, and the preliminary Tier 1 leverage ratio was 13.19%, up 28 basis points compared to March 31, 2017. The Company's preliminary calculation of its total risk-based capital ratio at June 30, 2017, was 16.74%, down 18 basis points compared to March 31, 2017.
At June 30, 2017, book value per common share was $66.08, up $0.83 per share, or 1%, compared to March 31, 2017. Tangible book value per common share was $51.33, up $0.87 per share, or 2%, compared to March 31, 2017. Based on the closing stock price of the Company's common stock of $81.35 per share on July 20, 2017, this price equated to 1.23 times June 30, 2017 book value per common share and 1.58 times June 30, 2017 tangible book value per common share.
Cash Dividends On Common Stock. On June 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 July 20, 2017, the indicated dividend yield was 1.77% 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 second 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 July 7, 2017, the Company declared a semi-annual cash dividend of $0.828125 per depositary share that is payable on August 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 June 20, 2017, the Company declared a quarterly cash dividend of $0.412500 per depositary share that is payable on August 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 $0.17 per common share during the second quarter of 2017 and $0.28 per common share year-to-date through June 30, 2017.
IBERIABANK Corporation
IBERIABANK Corporation is a financial holding company with 301 combined offices, including 203 bank branch offices and one loan production office 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 also trade on the NASDAQ Global Select Market under the symbols "IBKCP" and "IBKCO", respectively. The Company's common stock market capitalization was approximately $4.2 billion, based on the NASDAQ Global Select Market closing stock price on July 20, 2017.
The following 12 investment firms currently provide equity research coverage on the Company:
-- Bank of America Merrill Lynch
-- 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, July 21, 2017, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 6591359. A replay of the call will be available until midnight Central Time on July 28, 2017 by dialing 1-877-344-7529. The confirmation code for the replay is 10109052. 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: 6/30/2017 3/31/2017 % Change 6/30/2016 % Change
--------- --------- -------- --------- --------
Net interest income $183,643 $172,818 6.3 $162,753 12.8
Net interest income (TE) (1) 186,135 175,309 6.2 165,043 12.8
Total revenues 239,609 220,164 8.8 227,670 5.2
Provision for loan losses 12,050 6,154 95.8 11,866 1.6
Non-interest expense 147,508 141,018 4.6 139,504 5.7
Net income available to common shareholders 51,069 46,874 8.9 49,956 2.2
PER COMMON SHARE DATA:
Earnings available to common shareholders - basic $1.00 $1.01 (1.0) $1.21 (17.4)
Earnings available to common shareholders - diluted 0.99 1.00 (1.0) 1.21 (18.2)
Core earnings (Non-GAAP) (2) 1.10 1.02 7.8 1.18 (6.8)
Book value 66.08 65.25 1.3 61.05 8.2
Tangible book value (Non-GAAP) (2) (3) 51.33 50.46 1.7 42.53 20.7
Closing stock price 81.50 79.10 3.0 59.73 36.4
Cash dividends 0.36 0.36 - 0.34 5.9
KEY RATIOS AND OTHER DATA (6):
Net interest margin (TE) (1) 3.71% 3.53% 3.65%
Efficiency ratio 61.6 64.1 61.3
Core tangible efficiency ratio (TE) (Non-GAAP) (1) (2) (3) 57.6 61.6 60.0
Return on average assets 0.96 0.94 1.02
Return on average common equity 6.08 6.41 8.05
Core return on average tangible common equity (Non-GAAP) (2) (3) 8.86 8.99 11.64
Effective tax rate 35.0 30.9 33.4
Full-time equivalent employees 3,190 3,161 3,122
CAPITAL RATIOS:
Tangible common equity ratio (Non-GAAP) (2) (3) 12.45% 12.10% 9.00%
Tangible common equity to risk-weighted assets (3) 14.32 14.49 10.16
Tier 1 leverage ratio (4) 13.19 12.91 9.70
Common equity Tier 1 (CET 1) (transitional) (4) 14.52 14.64 10.09
Common equity Tier 1 (CET 1) (fully phased-in) (4) 14.50 14.60 9.99
Tier 1 capital (transitional) (4) 15.24 15.38 10.85
Total risk-based capital ratio (4) 16.74 16.92 12.47
Common stock dividend payout ratio 36.2 39.0 28.0
Classified assets to Tier 1 capital (7) 13.4 15.2 25.1
ASSET QUALITY RATIOS (LEGACY):
Non-performing assets to total assets (5) 0.87% 0.99% 0.63%
Allowance for loan losses to loans 0.80 0.82 0.89
Net charge-offs to average loans (annualized) 0.30 0.20 0.38
Non-performing assets to total loans and OREO (5) 1.27 1.52 0.92
(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 12 and Table 13 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 June 30, 2017 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.
(6) All ratios are calculated on an annualized basis for the periods 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
----------------- ----------------
6/30/2017 3/31/2017 $ % 12/31/2016 9/30/2016 6/30/2016 $ %
--------- --------- --- --- ---------- --------- --------- --- ---
Interest income $204,575 $192,533 12,042 6.3 $180,805 $180,504 $178,694 25,881 14.5
Interest expense 20,932 19,715 1,217 6.2 19,140 17,087 15,941 4,991 31.3
Net interest income 183,643 172,818 10,825 6.3 161,665 163,417 162,753 20,890 12.8
Provision for loan
losses 12,050 6,154 5,896 95.8 5,169 12,484 11,866 184 1.6
------ ----- ----- ---- ----- ------ ------ --- ---
Net interest income
after provision for
loan losses 171,593 166,664 4,929 3.0 156,496 150,933 150,887 20,706 13.7
Mortgage income 19,730 14,115 5,615 39.8 16,115 21,807 25,991 (6,261) (24.1)
Service charges on
deposit accounts 11,410 11,153 257 2.3 11,178 11,066 10,940 470 4.3
Title revenue 6,190 4,741 1,449 30.6 5,332 6,001 6,135 55 0.9
Broker commissions 2,744 2,738 6 0.2 4,006 3,797 3,712 (968) (26.1)
ATM/debit card fee
income 3,800 3,585 215 6.0 3,604 3,483 3,650 150 4.1
Income from bank owned
life insurance 1,241 1,311 (70) (5.3) 1,323 1,305 1,411 (170) (12.0)
Gain on sale of
available-for-sale
securities 59 - 59 N/M 4 12 1,789 (1,730) (96.7)
Other non-interest
income 10,792 9,703 1,089 11.2 11,676 12,350 11,289 (497) (4.4)
------ ----- ----- ---- ------ ------ ------ ---- ----
Total non-interest
income 55,966 47,346 8,620 18.2 53,238 59,821 64,917 (8,951) (13.8)
Salaries and employee
benefits 86,317 81,853 4,464 5.5 80,811 85,028 85,105 1,212 1.4
Occupancy and
equipment 16,292 16,021 271 1.7 15,551 16,526 16,813 (521) (3.1)
Loss on early
termination of loss
share agreements - - - - 17,798 - - - -
Amortization of
acquisition
intangibles 1,651 1,770 (119) (6.7) 2,087 2,106 2,109 (458) (21.7)
Other non-interest
expense 43,248 41,374 1,874 4.5 35,323 34,479 35,477 7,771 21.9
------ ------ ----- --- ------ ------ ------ ----- ----
Total non-interest
expense 147,508 141,018 6,490 4.6 151,570 138,139 139,504 8,004 5.7
Income before income
taxes 80,051 72,992 7,059 9.7 58,164 72,615 76,300 3,751 4.9
Income tax expense 28,033 22,519 5,514 24.5 13,034 24,547 25,490 2,543 10.0
------ ------ ----- ---- ------ ------ ------ ----- ----
Net income 52,018 50,473 1,545 3.1 45,130 48,068 50,810 1,208 2.4
Preferred stock
dividends (949) (3,599) 2,650 73.6 (957) (3,590) (854) (95) (11.1)
---- ------ ----- ---- ---- ------ ---- --- -----
Net income available
to common
shareholders $51,069 $46,874 4,195 8.9 $44,173 $44,478 $49,956 1,113 2.2
======= ======= ===== === ======= ======= ======= ===== ===
Income available to
common shareholders -
basic $51,069 $46,874 4,195 8.9 $44,173 $44,478 $49,956 1,113 2.2
Earnings allocated to
unvested restricted
stock (361) (346) (15) 4.3 (414) (462) (540) 179 33.1
---- ---- --- --- ---- ---- ---- --- ----
Earnings allocated to
common shareholders $50,708 $46,528 4,180 9.0 $43,759 $44,016 $49,416 1,292 2.6
======= ======= ===== === ======= ======= ======= ===== ===
Earnings per common
share -basic $1.00 $1.01 (0.01) (1.0) $1.05 $1.08 $1.21 (0.21) (17.4)
Earnings per common
share -diluted 0.99 1.00 (0.01) (1.0) 1.04 1.08 1.21 (0.22) (18.2)
Impact of non-core
items (Non-GAAP) (1) 0.11 0.02 0.09 450.0 0.12 - (0.03) 0.14 (466.7)
---- ---- ---- ----- ---- --- ----- ---- ------
Earnings per share -
diluted, excluding
non-core items (Non-
GAAP) (1) $1.10 $1.02 0.08 7.8 $1.16 $1.08 $1.18 (0.08) (6.8)
NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
Weighted average
common shares
outstanding -basic 50,630 46,123 4,507 9.8 41,688 40,618 40,771 9,859 24.2
Weighted average
common shares
outstanding -diluted 50,984 46,496 4,488 9.7 41,950 40,811 40,908 10,076 24.6
Book value shares
(period end) 51,015 50,970 45 0.1 44,795 41,082 41,039 9,976 24.3
(1) See Table 12 and Table 13 for GAAP to Non-GAAP reconciliations.
N/M = not meaningful
Table 3 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Dollars in thousands, except per share data)
For the Six Months Ended
------------------------
Linked Qtr Change
-----------------
6/30/2017 6/30/2016 $ %
--------- --------- --- ---
Interest income $397,108 $355,630 41,478 11.7
Interest expense 40,647 31,474 9,173 29.1
------ ------ ----- ----
Net interest income 356,461 324,156 32,305 10.0
Provision for loan
losses 18,204 26,771 (8,567) (32.0)
------ ------ ------ -----
Net interest income
after provision for
loan losses 338,257 297,385 40,872 13.7
Mortgage income 33,845 45,931 (12,086) (26.3)
Service charges on
deposit accounts 22,563 21,891 672 3.1
Title revenue 10,931 10,880 51 0.5
Broker commissions 5,482 7,535 (2,053) (27.2)
ATM/debit card fee
income 7,385 7,153 232 3.2
Income from bank owned
life insurance 2,552 2,613 (61) (2.3)
Gain on sale of
available-for-sale
securities 59 1,985 (1,926) (97.0)
Other non-interest
income 20,495 22,774 (2,279) (10.0)
------ ------ ------ -----
Total non-interest
income 103,312 120,762 (17,450) (14.4)
Salaries and employee
benefits 168,170 165,847 2,323 1.4
Occupancy and equipment 32,313 33,720 (1,407) (4.2)
Amortization of
acquisition
intangibles 3,421 4,222 (801) (19.0)
Other non-interest
expense 84,622 73,167 11,455 15.7
------ ------ ------ ----
Total non-interest
expense 288,526 276,956 11,570 4.2
Income before income
taxes 153,043 141,191 11,852 8.4
Income tax expense 50,552 47,612 2,940 6.2
------ ------ ----- ---
Net income 102,491 93,579 8,912 9.5
Preferred stock
dividends (4,548) (3,430) (1,118) (32.6)
------ ------ ------ -----
Net income available to
common shareholders $97,943 $90,149 7,794 8.6
======= ======= ===== ===
Income available to
common shareholders -
basic $97,943 $90,149 7,794 8.6
Earnings allocated to
unvested restricted
stock (707) (1,003) 296 29.5
Earnings allocated to
common shareholders $97,236 $89,146 8,090 9.1
======= ======= ===== ===
Earnings per common
share -basic $2.01 $2.19 (0.18) (8.2)
Earnings per common
share -diluted 1.99 2.18 (0.19) (8.7)
Impact of non-core
items (Non-GAAP) (1) 0.14 0.01 0.13 1,300.0
---- ---- ---- -------
Earnings per share -
diluted, excluding
non-core items (Non-
GAAP) (1) $2.13 $2.19 (0.06) (2.7)
NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
Weighted average common
shares outstanding -
basic 48,389 40,741 7,648 18.8
Weighted average common
shares outstanding -
diluted 48,751 40,836 7,915 19.4
Book value shares
(period end) 51,015 41,039 9,976 24.3
(1) See Table 12 and Table 13 for GAAP to Non-GAAP reconciliations.
N/M = not meaningful
TABLE 4 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
PERIOD-END BALANCES Linked Qtr Change Year/Year Change
----------------- ----------------
ASSETS 6/30/2017 3/31/2017 $ % 12/31/2016 9/30/2016 6/30/2016 $ %
--------- --------- --- --- ---------- --------- --------- --- ---
Cash and due from banks $301,910 $276,979 24,931 9.0 $295,896 $327,799 $288,141 13,769 4.8
Interest-bearing deposits
in other banks 167,450 1,024,139 (856,689) (83.6) 1,066,230 773,454 417,157 (249,707) (59.9)
------- --------- -------- ----- --------- ------- ------- -------- -----
Total cash and cash
equivalents 469,360 1,301,118 (831,758) (63.9) 1,362,126 1,101,253 705,298 (235,938) (33.5)
Investment securities
available for sale 4,009,299 3,823,953 185,346 4.8 3,446,097 2,885,413 2,776,015 1,233,284 44.4
Investment securities held
to maturity 84,517 86,018 (1,501) (1.7) 89,216 90,653 92,904 (8,387) (9.0)
------ ------ ------ ---- ------ ------ ------ ------ ----
Total investment securities 4,093,816 3,909,971 183,845 4.7 3,535,313 2,976,066 2,868,919 1,224,897 42.7
Mortgage loans held for
sale 140,959 122,333 18,626 15.2 157,041 210,866 229,653 (88,694) (38.6)
Loans, net of unearned
income 15,556,016 15,132,202 423,814 2.8 15,064,971 14,924,499 14,722,561 833,455 5.7
Allowance for loan losses (146,225) (144,890) (1,335) 0.9 (144,719) (148,193) (147,452) 1,227 (0.8)
-------- -------- ------ --- -------- -------- -------- ----- ----
Loans, net 15,409,791 14,987,312 422,479 2.8 14,920,252 14,776,306 14,575,109 834,682 5.7
Loss share receivable - - - - - 24,406 29,224 (29,224) (100.0)
Premises and equipment 318,167 303,978 14,189 4.7 306,373 308,932 311,173 6,994 2.2
Goodwill and other
intangibles 757,025 758,340 (1,315) (0.2) 759,823 761,206 763,387 (6,362) (0.8)
Other assets 601,609 625,427 (23,818) (3.8) 618,262 629,531 678,092 (76,483) (11.3)
Total assets $21,790,727 $22,008,479 (217,752) (1.0) $21,659,190 $20,788,566 $20,160,855 1,629,872 8.1
=========== =========== ======== ==== =========== =========== =========== ========= ===
LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest-bearing
deposits $5,020,195 $5,031,583 (11,388) (0.2) $4,928,878 $4,787,485 $4,539,254 480,941 10.6
NOW accounts 3,089,482 3,085,720 3,762 0.1 3,314,281 2,904,835 2,985,284 104,198 3.5
Savings and money market
accounts 6,815,513 7,185,864 (370,351) (5.2) 7,033,917 6,646,694 6,188,245 627,268 10.1
Certificates of deposit 1,927,926 2,009,098 (81,172) (4.0) 2,131,207 2,183,503 2,149,244 (221,318) (10.3)
--------- --------- ------- ---- --------- --------- --------- -------- -----
Total deposits 16,853,116 17,312,265 (459,149) (2.7) 17,408,283 16,522,517 15,862,027 991,089 6.2
Short-term borrowings 250,000 80,000 170,000 212.5 175,000 360,000 477,620 (227,620) (47.7)
Securities sold under
agreements to repurchase 333,935 368,696 (34,761) (9.4) 334,136 353,272 288,017 45,918 15.9
Trust preferred securities 120,110 120,110 - - 120,110 120,110 120,110 - -
Other long-term debt 547,133 507,975 39,158 7.7 508,843 552,328 567,326 (20,193) (3.6)
Other liabilities 183,191 161,458 21,733 13.5 173,124 213,229 208,158 (24,967) (12.0)
------- ------- ------ ---- ------- ------- ------- ------- -----
Total liabilities 18,287,485 18,550,504 (263,019) (1.4) 18,719,496 18,121,456 17,523,258 764,227 4.4
Total shareholders' equity 3,503,242 3,457,975 45,267 1.3 2,939,694 2,667,110 2,637,597 865,645 32.8
Total liabilities and
shareholders' equity $21,790,727 $22,008,479 (217,752) (1.0) $21,659,190 $20,788,566 $20,160,855 1,629,872 8.1
=========== =========== ======== ==== =========== =========== =========== ========= ===
TABLE 4 Continued - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
AVERAGE BALANCES Linked Qtr Change Year/Year Change
----------------- ----------------
ASSETS 6/30/2017 3/31/2017 $ % 12/31/2016 9/30/2016 6/30/2016 $ %
--------- --------- --- --- ---------- --------- --------- --- ---
Cash and due from banks $277,047 $302,585 (25,538) (8.4) $310,132 $299,445 $304,304 (27,257) (9.0)
Interest-bearing deposits
in other banks 555,431 1,023,688 (468,257) (45.7) 930,524 536,741 386,139 169,292 43.8
------- --------- -------- ----- ------- ------- ------- ------- ----
Total cash and cash
equivalents 832,478 1,326,273 (493,795) (37.2) 1,240,656 836,186 690,443 142,035 20.6
Investment securities
available for sale 3,970,021 3,679,817 290,204 7.9 3,192,040 2,825,030 2,823,292 1,146,729 40.6
Investment securities held
to maturity 85,516 87,246 (1,730) (2.0) 90,161 92,006 94,609 (9,093) (9.6)
------ ------ ------ ---- ------ ------ ------ ------ ----
Total investment securities 4,055,537 3,767,063 288,474 7.7 3,282,201 2,917,036 2,917,901 1,137,636 39.0
Mortgage loans held for
sale 145,274 175,512 (30,238) (17.2) 226,565 219,369 211,468 (66,194) (31.3)
Loans, net of unearned
income 15,284,007 15,045,755 238,252 1.6 14,912,350 14,802,199 14,570,945 713,062 4.9
Allowance for loan losses (146,448) (145,326) (1,122) 0.8 (150,499) (149,101) (149,037) 2,589 (1.7)
-------- -------- ------ --- -------- -------- -------- ----- ----
Loans, net 15,137,559 14,900,429 237,130 1.6 14,761,851 14,653,098 14,421,908 715,651 5.0
Loss share receivable - - - - 20,456 27,694 32,189 (32,189) (100.0)
Premises and equipment 309,622 305,245 4,377 1.4 308,861 310,592 313,862 (4,240) (1.4)
Goodwill and other
intangibles 757,528 758,887 (1,359) (0.2) 760,003 762,196 764,818 (7,290) (1.0)
Other assets 605,539 628,092 (22,553) (3.6) 615,666 666,657 651,328 (45,789) (7.0)
Total assets $21,843,537 $21,861,501 (17,964) (0.1) $21,216,259 $20,392,828 $20,003,917 1,839,620 9.2
=========== =========== ======= ==== =========== =========== =========== ========= ===
LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest-bearing
deposits $4,992,598 $4,976,945 15,653 0.3 $4,869,095 $4,605,447 $4,463,928 528,670 11.8
NOW accounts 3,124,243 3,239,085 (114,842) (3.5) 2,981,967 2,936,130 2,911,510 212,733 7.3
Savings and money market
accounts 7,079,773 7,211,545 (131,772) (1.8) 6,869,614 6,359,006 6,486,242 593,531 9.2
Certificates of deposit 1,964,234 2,083,749 (119,515) (5.7) 2,172,967 2,176,159 2,117,711 (153,477) (7.2)
--------- --------- -------- ---- --------- --------- --------- -------- ----
Total deposits 17,160,848 17,511,324 (350,476) (2.0) 16,893,643 16,076,742 15,979,391 1,181,457 7.4
Short-term borrowings 38,320 99,000 (60,680) (61.3) 260,730 430,332 358,837 (320,517) (89.3)
Securities sold under
agreements to repurchase 314,090 311,726 2,364 0.8 342,953 302,119 265,465 48,625 18.3
Trust preferred securities 120,110 120,110 - - 120,110 120,110 120,110 - -
Other long-term debt 508,522 498,384 10,138 2.0 544,353 562,598 473,195 35,327 7.5
Other liabilities 200,673 221,993 (21,320) (9.6) 300,768 239,911 203,050 (2,377) (1.2)
------- ------- ------- ---- ------- ------- ------- ------ ----
Total liabilities 18,342,563 18,762,537 (419,974) (2.2) 18,462,557 17,731,812 17,400,048 942,515 5.4
Total shareholders' equity 3,500,974 3,098,964 402,010 13.0 2,753,702 2,661,016 2,603,869 897,105 34.5
Total liabilities and
shareholders' equity $21,843,537 $21,861,501 (17,964) (0.1) $21,216,259 $20,392,828 $20,003,917 1,839,620 9.2
=========== =========== ======= ==== =========== =========== =========== ========= ===
Table 5 - IBERIABANK CORPORATION
TOTAL LOANS AND ASSET QUALITY DATA
(Dollars in thousands)
Linked Qtr Change Year/Year Change
----------------- ----------------
LOANS 6/30/2017 3/31/2017 $ % 12/31/2016 9/30/2016 6/30/2016 $ %
--------- --------- --- --- ---------- --------- --------- --- ---
Commercial loans:
Real estate-
Owner Occupied
(1) $2,205,408 $2,187,406 18,002 0.8 $2,234,636 $2,163,541 $2,109,448 95,960 4.5
Real estate-
Non-Owner
Occupied 4,936,195 4,790,468 145,727 3.0 4,567,630 4,517,674 4,362,553 573,642 13.1
Commercial and
Industrial 3,684,081 3,455,578 228,503 6.6 3,543,122 3,462,997 3,435,809 248,272 7.2
Energy (Real
Estate and
Commercial and
Industrial) (2) 551,968 563,623 (11,655) (2.1) 561,193 599,641 662,034 (110,066) (16.6)
------- ------- ------- ---- ------- ------- ------- -------- -----
Total commercial
loans 11,377,652 10,997,075 380,577 3.5 10,906,581 10,743,853 10,569,844 807,808 7.6
Residential
mortgage loans 1,346,467 1,296,358 50,109 3.9 1,267,400 1,270,530 1,249,062 97,405 7.8
Consumer loans:
Home equity 2,158,948 2,146,796 12,152 0.6 2,155,926 2,151,130 2,129,812 29,136 1.4
Indirect
automobile 92,130 110,200 (18,070) (16.4) 131,052 153,913 182,223 (90,093) (49.4)
Automobile 135,012 142,139 (7,127) (5.0) 147,662 152,972 156,597 (21,585) (13.8)
Credit Card 87,088 84,113 2,975 3.5 82,992 80,959 78,552 8,536 10.9
Other 358,719 355,521 3,198 0.9 373,358 371,142 356,471 2,248 0.6
Total consumer
loans 2,831,897 2,838,769 (6,872) (0.2) 2,890,990 2,910,116 2,903,655 (71,758) (2.5)
Total loans $15,556,016 $15,132,202 423,814 2.8 $15,064,971 $14,924,499 $14,722,561 833,455 5.7
=========== =========== ======= === =========== =========== =========== ======= ===
Allowance for
loan losses(3) $(146,225) $(144,890) (1,335) 0.9 $(144,719) $(148,193) $(147,452) 1,227 (0.8)
Loans, net 15,409,791 14,987,312 422,479 2.8 14,920,252 14,776,306 14,575,109 834,682 5.7
Reserve for
unfunded
commitments (10,462) (11,660) 1,198 (10.3) (11,241) (11,990) (13,826) 3,364 (24.3)
Allowance for
credit losses (156,687) (156,550) (137) 0.1 (155,960) (160,183) (161,278) 4,591 (2.8)
ASSET QUALITY DATA
Non-accrual
loans (4) $177,956 $191,582 (13,626) (7.1) $228,501 $235,521 $101,738 76,218 74.9
Other real estate
owned and
foreclosed
assets 19,718 20,055 (337) (1.7) 21,199 22,085 27,220 (7,502) (27.6)
Accruing loans
more than 90
days past due
(4) 802 7,980 (7,178) (89.9) 1,386 5,233 751 51 6.8
Total non-
performing
assets $198,476 $219,617 (21,141) (9.6) $251,086 $262,839 $129,709 68,767 53.0
======== ======== ======= ==== ======== ======== ======== ====== ====
Loans 30-89 days
past due (4) $50,840 $36,172 14,668 40.6 $28,869 $45,125 $50,592 248 0.5
Non-performing
assets to total
assets 0.91% 1.00% 1.16% 1.26% 0.64%
Non-performing
assets to total
loans and OREO 1.27 1.45 1.66 1.76 0.88
Allowance for
loan losses to
non-performing
loans (5) 81.8 72.6 63.0 61.6 143.9
Allowance for
loan losses to
non-performing
assets 73.7 66.0 57.6 56.4 113.7
Allowance for
loan losses to
total loans 0.94 0.96 0.96 0.99 1.00
Quarter-to-date
charge-offs $12,189 $7,291 4,898 67.2 $9,785 $11,500 $12,994 (805) (6.2)
Quarter-to-date
recoveries (1,289) (1,235) (54) 4.4 (2,135) (1,277) (1,071) (218) 20.4
Quarter-to-date
net charge-offs $10,900 $6,056 4,844 80.0 $7,650 $10,223 $11,923 (1,023) (8.6)
======= ====== ===== ==== ====== ======= ======= ====== ====
Net charge-offs
to average loans
(annualized) 0.29% 0.16% 0.21% 0.28% 0.33%
(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) 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.
(3) The allowance for loan losses includes impairment reserves attributable to acquired impaired loans.
(4) 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.
(5) Non-performing loans consist of non-accruing loans and accruing loans 90 days or more past due.
Table 6 - IBERIABANK CORPORATION
LEGACY LOANS AND LEGACY ASSET QUALITY DATA
(Dollars in thousands)
Linked Qtr Change Year/Year Change
----------------- ----------------
LEGACY LOANS 6/30/2017 3/31/2017 $ % 12/31/2016 9/30/2016 6/30/2016 $ %
--------- --------- --- --- ---------- --------- --------- --- ---
Commercial loans:
Real estate-
Owner Occupied
(1) $1,815,167 $1,769,153 46,014 2.6 $1,784,624 $1,683,557 $1,614,351 200,816 12.4
Real estate-
Non-Owner
Occupied 4,299,763 4,109,356 190,407 4.6 3,838,690 3,735,926 3,483,338 816,425 23.4
Commercial and
Industrial 3,390,699 3,140,205 250,494 8.0 3,194,796 3,101,472 3,027,590 363,109 12.0
Energy (Real
Estate and
Commercial and
Industrial) (2) 550,162 562,515 (12,353) (2.2) 559,289 598,279 659,510 (109,348) (16.6)
Total commercial
loans 10,055,791 9,581,229 474,562 5.0 9,377,399 9,119,234 8,784,789 1,271,002 14.5
Residential
mortgage loans 970,961 901,859 69,102 7.7 854,216 840,082 794,701 176,260 22.2
Consumer loans:
Home equity 1,838,841 1,797,123 41,718 2.3 1,783,421 1,755,295 1,695,113 143,728 8.5
Indirect
automobile 92,106 110,174 (18,068) (16.4) 131,048 153,904 182,199 (90,093) (49.4)
Automobile 127,265 133,852 (6,587) (4.9) 138,638 143,355 146,394 (19,129) (13.1)
Credit card 86,587 83,612 2,975 3.6 82,524 80,452 78,044 8,543 10.9
Other 321,859 315,595 6,264 2.0 327,678 321,048 303,609 18,250 6.0
------- ------- ----- --- ------- ------- ------- ------ ---
Total consumer
loans 2,466,658 2,440,356 26,302 1.1 2,463,309 2,454,054 2,405,359 61,299 2.5
Total loans $13,493,410 $12,923,444 569,966 4.4 $12,694,924 $12,413,370 $11,984,849 1,508,561 12.6
=========== =========== ======= === =========== =========== =========== ========= ====
Allowance for
loan losses $(107,610) $(105,813) (1,797) 1.7 $(105,569) $(108,889) $(106,861) (749) 0.7
Loans, net 13,385,800 12,817,631 568,169 4.4 12,589,355 12,304,481 11,877,988 1,507,812 12.7
Reserve for
unfunded
commitments (10,462) (11,660) 1,198 (10.3) (11,241) (11,990) (13,826) 3,364 (24.3)
Allowance for
credit losses (118,072) (117,473) (599) 0.5 (116,810) (120,879) (120,687) 2,615 (2.2)
ASSET QUALITY DATA
Non-accrual loans $163,748 $185,078 (21,330) (11.5) $221,543 $227,122 $95,096 68,652 72.2
Other real estate
owned and
foreclosed
assets 7,106 8,217 (1,111) (13.5) 9,264 11,538 14,478 (7,372) (50.9)
Accruing loans
more than 90
days past due 610 3,100 (2,490) (80.3) 1,104 4,936 353 257 72.8
Total non-
performing
assets $171,464 $196,395 (24,931) (12.7) $231,911 $243,596 $109,927 61,537 56.0
======== ======== ======= ===== ======== ======== ======== ====== ====
Loans 30-89 days
past due $40,882 $32,286 8,596 26.6 $24,902 $41,157 $45,906 (5,024) (10.9)
Non-performing
assets to total
assets 0.87% 0.99% 1.20% 1.33% 0.63%
Non-performing
assets to total
loans and OREO 1.27 1.52 1.83 1.96 0.92
Allowance for
loan losses to
non-performing
loans (3) 65.5 56.2 47.4 46.9 112.0
Allowance for
loan losses to
non-performing
assets 62.8 53.9 45.5 44.7 97.2
Allowance for
loan losses to
total loans 0.80 0.82 0.83 0.88 0.89
Quarter-to-date
charge-offs $10,896 $7,202 3,694 51.3 $9,496 $11,201 $11,969 (1,073) (9.0)
Quarter-to-date
recoveries (944) (880) (64) 7.3 (1,910) (1,102) (775) (169) 21.8
Quarter-to-date
net charge-offs $9,952 $6,322 3,630 57.4 $7,586 $10,099 $11,194 (1,242) (11.1)
====== ====== ===== ==== ====== ======= ======= ====== =====
Net charge-offs
to average loans
(annualized) 0.30% 0.20% 0.24% 0.33% 0.38%
(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) 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.
(3) Non-performing loans consist of non-accruing loans and accruing loans 90 days or more past due.
Table 7 - IBERIABANK CORPORATION
ACQUIRED LOANS AND ACQUIRED ASSET QUALITY DATA
(Dollars in thousands)
Linked Qtr Change Year/Year Change
----------------- ----------------
ACQUIRED LOANS 6/30/2017 3/31/2017 $ % 12/31/2016 9/30/2016 6/30/2016 $ %
--------- --------- --- --- ---------- --------- --------- --- ---
Commercial loans:
Real Estate-
Owner Occupied
(1) $390,241 $418,254 (28,013) (6.7) $450,012 $479,984 $495,097 (104,856) (21.2)
Real Estate-
Non-Owner
Occupied 636,432 681,111 (44,679) (6.6) 728,940 781,748 879,215 (242,783) (27.6)
Commercial and
Industrial 293,382 315,373 (21,991) (7.0) 348,326 361,525 408,219 (114,837) (28.1)
Energy (Real
Estate and
Commercial and
Industrial) (2) 1,806 1,108 698 63.0 1,904 1,362 2,524 (718) (28.4)
----- ----- --- ---- ----- ----- ----- ---- -----
Total commercial
loans 1,321,861 1,415,846 (93,985) (6.6) 1,529,182 1,624,619 1,785,055 (463,194) (25.9)
Residential
mortgage loans 375,506 394,499 (18,993) (4.8) 413,184 430,448 454,361 (78,855) (17.4)
Consumer loans:
Home equity 320,107 349,673 (29,566) (8.5) 372,505 395,835 434,699 (114,592) (26.4)
Indirect
automobile 24 26 (2) (7.7) 4 9 24 - -
Automobile 7,747 8,287 (540) (6.5) 9,024 9,617 10,203 (2,456) (24.1)
Credit card 501 501 - - 468 507 508 (7) (1.4)
Other 36,860 39,926 (3,066) (7.7) 45,680 50,094 52,862 (16,002) (30.3)
------ ------ ------ ---- ------ ------ ------ ------- -----
Total consumer
loans 365,239 398,413 (33,174) (8.3) 427,681 456,062 498,296 (133,057) (26.7)
Total loans $2,062,606 $2,208,758 (146,152) (6.6) $2,370,047 $2,511,129 $2,737,712 (675,106) (24.7)
========== ========== ======== ==== ========== ========== ========== ======== =====
Allowance for
loan losses (3) $(38,615) $(39,077) 462 (1.2) $(39,150) $(39,304) $(40,591) 1,976 (4.9)
Loans, net 2,023,991 2,169,681 (145,690) (6.7) 2,330,897 2,471,825 2,697,121 (673,130) (25.0)
ACQUIRED ASSET QUALITY DATA (4)
Non-accrual
loans $14,208 $6,504 7,704 118.5 $6,958 $8,399 $6,642 7,566 113.9
Other real
estate owned
and foreclosed
assets 12,612 11,838 774 6.5 11,935 10,547 12,742 (130) (1.0)
Accruing loans
more than 90
days past due 192 4,880 (4,688) (96.1) 282 297 398 (206) (51.8)
Total non-
performing
assets $27,012 $23,222 3,790 16.3 $19,175 $19,243 $19,782 7,230 36.5
======= ======= ===== ==== ======= ======= ======= ===== ====
Loans 30-89 days
past due $9,958 $3,886 6,072 156.3 $3,967 $3,968 $4,686 5,272 112.5
Non-performing
assets to total
assets 1.32% 1.06% 0.81% 0.76% 0.72%
Non-performing
assets to total
loans and OREO 1.30 1.05 0.81 0.76 0.72
Allowance for
loan losses to
non-performing
loans 268.2 343.3 540.7 452.0 576.6
Allowance for
loan losses to
non-performing
assets 143.0 168.3 204.2 204.3 205.2
Allowance for
loan losses to
total loans 1.87 1.77 1.65 1.57 1.48
Quarter-to-
date charge-
offs $1,293 $89 1,204 1,352.8 $289 $299 $1,025 268 26.1
Quarter-to-
date recoveries (345) (355) 10 (2.8) (225) (175) (296) (49) 16.6
Quarter-to-
date net
charge-offs/
(recoveries) $948 $(266) 1,214 (456.4) $64 $124 $729 219 30.0
==== ===== ===== ====== === ==== ==== === ====
Net charge-
offs/
(recoveries) to
average loans
(annualized) 0.18% (0.05)% 0.01% 0.02% 0.10%
(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) 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.
(3) The allowance for loan losses includes impairment reserves attributable to acquired impaired loans.
(4) 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 8 - IBERIABANK CORPORATION
ENERGY LOANS, ENERGY-RELATED COMMITMENTS AND ASSET QUALITY DATA
(Dollars in thousands)
ENERGY LOANS: (1) Linked Qtr Change Year/Year Change
----------------- ----------------
6/30/2017 3/31/2017 $ % 12/31/2016 9/30/2016 6/30/2016 $ %
--------- --------- --- --- ---------- --------- --------- --- ---
E&P $264,336 $265,696 (1,360) (0.5) $290,711 $301,223 $328,066 (63,730) (19.4)
Midstream 106,999 123,436 (16,437) (13.3) 90,120 110,821 123,687 (16,688) (13.5)
Service 180,633 174,491 6,142 3.5 180,362 187,597 210,281 (29,648) (14.1)
Total energy loans $551,968 $563,623 (11,655) (2.1) $561,193 $599,641 $662,034 (110,066) (16.6)
======== ======== ======= ==== ======== ======== ======== ======== =====
ENERGY-RELATED COMMITMENTS:
E&P $571,964 $543,689 28,275 5.2 $545,061 $545,383 $572,267 (303) (0.1)
Midstream 213,273 238,186 (24,913) (10.5) 182,998 198,618 201,555 11,718 5.8
Service 244,267 243,991 276 0.1 241,740 261,450 295,591 (51,324) (17.4)
Total energy-related
commitments $1,029,504 $1,025,866 3,638 0.4 $969,799 $1,005,451 $1,069,413 (39,909) (3.7)
========== ========== ===== === ======== ========== ========== ======= ====
Total loans net of unearned
income $15,556,016 $15,132,202 423,814 2.8 $15,064,971 $14,924,499 $14,722,561 833,455 5.7
Energy loan outstandings as
a % of total loans 3.5% 3.7% 3.7% 4.0% 4.5%
Energy-related commitments
as a % of total
commitments 5.1% 5.2% 4.8% 5.1% 5.4%
Allowance for loan losses $(23,046) $(20,144) (2,902) 14.4 $(22,524) $(28,215) $(33,040) 9,994 (30.2)
Reserve for unfunded
commitments (147) (203) 56 (27.6) (1,003) (953) (2,223) 2,076 (93.4)
Allowance for credit losses (23,193) (20,347) (2,846) 14.0 (23,527) (29,168) (35,263) 12,070 (34.2)
ASSET QUALITY DATA
Non-accrual loans $94,565 $113,212 (18,647) (16.5) $150,329 $153,620 $60,814 33,751 55.5
Other real estate owned and
foreclosed assets - - - - - - - - -
Accruing loans more than 90
days past due - 2,175 (2,175) (100.0) - - - - -
Total non-performing assets $94,565 $115,387 (20,822) (18.0) $150,329 $153,620 $60,814 33,751 55.5
======= ======== ======= ===== ======== ======== ======= ====== ====
Loans 30-89 days past due $2,392 $157 2,235 1,423.6 $1,526 $ - $3,055 (663) (21.7)
Non-performing assets to
total energy loans and
OREO 17.13% 20.47% 26.79% 25.62% 9.19%
Allowance for loan losses
to non-performing loans
(2) 24.4 17.5 15.0 18.4 54.3
Allowance for loan losses
to non-performing assets 24.4 17.5 15.0 18.4 54.3
Allowance for loan losses
to total energy loans 4.18 3.57 4.01 4.71 4.99
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) 0.00% 2.05% 1.02% 4.39% 4.44%
(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 9 - IBERIABANK CORPORATION
QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES
(Dollars in thousands)
For the Three Months Ended
--------------------------
6/30/2017 3/31/2017 Basis Point
Change
------
ASSETS Average Balance Interest Yield/Rate Average Balance Interest Yield/Rate Yield/Rate
Income/Expense (TE)(1) Income/Expense (TE)(1) (TE)(1)
------ --- ------ -------
Earning assets:
Commercial loans $11,136,842 $127,301 4.64% $10,917,714 $119,605 4.50% 14
Residential mortgage loans 1,319,207 14,345 4.35 1,273,069 12,848 4.04 31
Consumer loans 2,827,958 37,619 5.34 2,854,972 36,524 5.19 15
--------- ------ ---- --------- ------ ----
Total loans 15,284,007 179,265 4.74 15,045,755 168,977 4.59 15
Loss share receivable - - - - - - -
--- --- --- --- --- ---
Total loans and loss share
receivable 15,284,007 179,265 4.74 15,045,755 168,977 4.59 15
Mortgage loans held for
sale 145,274 1,249 3.44 175,512 971 2.21 123
Investment securities (2) 4,029,491 22,307 2.32 3,741,128 19,927 2.24 8
Other earning assets 650,083 1,754 1.08 1,123,087 2,658 0.96 12
------- ----- ---- --------- ----- ----
Total earning assets 20,108,855 204,575 4.13 20,085,482 192,533 3.93 20
Allowance for loan losses (146,448) (145,326)
Non-earning assets 1,881,130 1,921,345
Total assets $21,843,537 $21,861,501
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
NOW accounts $3,124,243 3,507 0.45% $3,239,085 3,090 0.39% 6
Savings and money market
accounts 7,079,773 9,030 0.51 7,211,545 8,329 0.47 4
Certificates of deposit 1,964,234 4,576 0.93 2,083,749 4,638 0.90 3
--------- ----- ---- --------- ----- ----
Total interest-bearing
deposits (3) 12,168,250 17,113 0.56 12,534,379 16,057 0.52 4
Short-term borrowings 352,410 226 0.26 410,726 277 0.27 (1)
Long-term debt 628,632 3,593 2.29 618,494 3,381 2.22 7
------- ----- ---- ------- ----- ----
Total interest-bearing
liabilities 13,149,292 20,932 0.64 13,563,599 19,715 0.59 5
Non-interest-bearing
deposits 4,992,598 4,976,945
Non-interest-bearing
liabilities 200,673 221,993
------- -------
Total liabilities 18,342,563 18,762,537
Total shareholders' equity 3,500,974 3,098,964
Total liabilities and
shareholders' equity $21,843,537 $21,861,501
=========== ===========
Net interest income/Net interest spread $183,643 3.49% $172,818 3.34% 15
Tax-equivalent benefit 2,492 0.05 2,491 0.05 -
Net interest income (TE)/Net interest margin (TE) (1) $186,135 3.71% $175,309 3.53% 18
======== ========
(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 June 30, 2017 and March 31, 2017 were 0.40% and 0.37%, respectively.
TABLE 9 Continued - IBERIABANK CORPORATION
QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES
(Dollars in thousands)
For the Three Months Ended
--------------------------
12/31/2016 9/30/2016 6/30/2016
---------- --------- ---------
ASSETS Average Balance Interest Yield/Rate Average Balance Interest Income/Expense Yield/Rate (TE)(1) Average Balance Interest Yield/Rate
Income/Expense (TE)(1) Income/Expense (TE)(1)
------ --- ------ -------
Earning assets:
Commercial loans $10,759,264 $114,694 4.29% $10,646,874 $116,653 4.41% $10,458,822 $114,588 4.46%
Residential mortgage loans 1,267,413 14,038 4.43 1,254,665 13,718 4.37 1,221,254 13,781 4.51
Consumer loans 2,885,673 36,960 5.10 2,900,660 37,413 5.13 2,890,869 37,200 5.18
--------- ------ ---- --------- ------ ---- --------- ------ ----
Total loans 14,912,350 165,692 4.46 14,802,199 167,784 4.55 14,570,945 165,569 4.61
Loss share receivable 20,456 (3,539) (68.83) 27,694 (3,935) (56.53) 32,189 (4,163) (52.01)
------ ------ ------ ------ ------ ------ ------ ------ ------
Total loans and loss share
receivable 14,932,806 162,153 4.36 14,829,893 163,849 4.44 14,603,134 161,406 4.48
Mortgage loans held for
sale 226,565 1,539 2.72 219,369 1,774 3.24 211,468 1,850 3.50
Investment securities (2) 3,154,252 15,464 2.09 2,830,892 13,815 2.08 2,856,805 14,663 2.17
Other earning assets 1,034,980 1,649 0.63 641,080 1,066 0.66 483,597 775 0.64
--------- ----- ---- ------- ----- ---- ------- --- ----
Total earning assets 19,348,603 180,805 3.77 18,521,234 180,504 3.93 18,155,004 178,694 4.01
Allowance for loan losses (150,499) (149,101) (149,037)
Non-earning assets 2,018,155 2,020,695 1,997,950
Total assets $21,216,259 $20,392,828 $20,003,917
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
NOW accounts $2,981,967 $2,483 0.33% $2,936,130 $2,313 0.31% $2,911,510 $2,080 0.29%
Savings and money market
accounts 6,869,614 7,732 0.45 6,359,006 5,826 0.36 6,486,242 5,527 0.34
Certificates of deposit 2,172,967 4,785 0.88 2,176,159 4,592 0.84 2,117,711 4,309 0.82
--------- ----- ---- --------- ----- ---- --------- ----- ----
Total interest-bearing
deposits (3) 12,024,548 15,000 0.50 11,471,295 12,731 0.44 11,515,463 11,916 0.42
Short-term borrowings 603,683 552 0.36 732,451 753 0.41 624,302 662 0.43
Long-term debt 664,463 3,588 2.15 682,708 3,603 2.10 593,305 3,363 2.28
------- ----- ---- ------- ----- ---- ------- ----- ----
Total interest-bearing
liabilities 13,292,694 19,140 0.57 12,886,454 17,087 0.53 12,733,070 15,941 0.51
Non-interest-bearing
deposits 4,869,095 4,605,447 4,463,928
Non-interest-bearing
liabilities 300,768 239,911 203,050
------- ------- -------
Total liabilities 18,462,557 17,731,812 17,400,048
Total shareholders' equity 2,753,702 2,661,016 2,603,869
Total liabilities and
shareholders' equity $21,216,259 $20,392,828 $20,003,917
=========== =========== ===========
Net interest income/Net interest spread $161,665 3.20% $163,417 3.40% $162,753 3.50%
Tax-equivalent benefit 2,340 0.05 2,330 0.05 2,290 0.05
Net interest income (TE)/Net interest margin (TE) (1) $164,005 3.38% $165,747 3.56% $165,043 3.65%
======== ======== ========
(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 December 31, 2016, September 30, 2016, and June 30, 2016 were 0.35%, 0.32% and 0.30%, respectively.
TABLE 10 - IBERIABANK CORPORATION
YEAR-TO-DATE AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES
(Dollars in thousands)
For the Six Months Ended
------------------------
6/30/2017 6/30/2016 Basis Point
Change
------
ASSETS Average Balance Interest Yield/Rate Average Balance Interest Yield/Rate Yield/Rate
Income/Expense (TE)(1) Income/Expense (TE)(1) (TE)(1)
------ --- ------ -------
Earning assets:
Commercial loans $11,027,883 246,906 4.57% $10,354,688 228,005 4.48% 9
Residential mortgage loans 1,296,266 27,193 4.20 1,211,973 27,210 4.49 (29)
Consumer loans 2,841,390 74,143 5.26 2,896,016 74,345 5.16 10
--------- ------ ---- --------- ------ ----
Total loans 15,165,539 348,242 4.67 14,462,677 329,560 4.62 5
Loss share receivable - - - 34,775 (8,549) (49.44) 4,944
--- --- --- ------ ------ ------
Total loans and loss share
receivable 15,165,539 348,242 4.67 14,497,452 321,011 4.49 18
Mortgage loans held for
sale 160,309 2,219 2.77 186,170 3,251 3.49 (72)
Investment securities (2) 3,886,106 42,234 2.28 2,861,890 29,875 2.21 7
Other earning assets 885,278 4,413 1.01 468,667 1,493 0.64 37
------- ----- ---- ------- ----- ----
Total earning assets 20,097,232 397,108 4.03 18,014,179 355,630 4.02 1
Allowance for loan losses (145,890) (145,215)
Non-earning assets 1,901,127 1,963,650
Total assets $21,852,469 $19,832,614
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
NOW accounts $3,181,347 $6,597 0.42% $2,885,726 $4,021 0.28% 14
Savings and money market
accounts 7,145,295 17,359 0.49 6,542,540 11,166 0.34 15
Certificates of deposit 2,023,661 9,213 0.92 2,107,871 8,663 0.83 9
--------- ----- ---- --------- ----- ----
Total interest-bearing
deposits (3) 12,350,303 33,169 0.54 11,536,137 23,850 0.42 12
Short-term borrowings 381,407 504 0.27 559,486 1,147 0.41 (14)
Long-term debt 623,591 6,974 2.26 558,404 6,477 2.33 (7)
------- ----- ---- ------- ----- ----
Total interest-bearing
liabilities 13,355,301 40,647 0.62 12,654,027 31,474 0.51 11
Non-interest-bearing
deposits 4,984,815 4,426,093
Non-interest-bearing
liabilities 211,274 185,430
------- -------
Total liabilities 18,551,390 17,265,550
Total shareholders' equity 3,301,079 2,567,064
Total liabilities and
shareholders' equity $21,852,469 $19,832,614
=========== ===========
Net interest income/Net interest spread $356,461 3.41% $324,156 3.51% (10)
Tax-equivalent benefit 4,947 0.05 4,579 0.05 -
Net interest income (TE)/Net interest margin (TE) (1) $361,408 3.62% $328,735 3.67% (5)
======== ========
(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 six months ended June 30, 2017 and 2016 were 0.39% and 0.30%, respectively.
Table 11 - IBERIABANK CORPORATION
LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS
(Dollars in millions)
For the Three Months Ended
--------------------------
06/30/2017 3/31/2017 12/31/2016 9/30/2016 06/30/2016
---------- --------- ---------- --------- ----------
AS REPORTED (US GAAP) Income Average Yield Income Average Yield Income Average Yield Income Average Yield Income Average Yield
Balance Balance Balance Balance Balance
--- --- --- --- ---
Legacy loans, net $140 $13,150 4.27% $131 $12,760 4.12% $125 $12,481 3.97% $123 $12,183 4.00% $118 $11,737 4.04%
Acquired loans (1) 39 2,134 7.40 38 2,286 6.81 37 2,452 5.99 41 2,647 6.16 43 2,866 6.07
Total loans $179 $15,284 4.70% $169 $15,046 4.55% $162 $14,933 4.30% $164 $14,830 4.38% $161 $14,603 4.43%
==== ======= ==== ==== ======= ==== ==== ======= ==== ==== ======= ==== ==== ======= ====
06/30/2017 03/31/2017 12/31/2016 9/30/2016 6/30/2016
---------- ---------- ---------- --------- ---------
ADJUSTMENTS Income Average Yield Income Average Yield Income Average Yield Income Average Yield Income Average Yield
Balance Balance Balance Balance Balance
--- --- --- --- ---
Legacy loans, net $ - $ - 0.00% $ - $ - 0.00% $ - $ - 0.00% $ - $ - 0.00% $ - $ - 0.00%
Acquired loans (1) (12) 72 (2.46) (11) 87 (2.08) (8) 73 (1.43) (9) 76 (1.49) (9) 84 (1.41)
Total loans $(12) $72 (0.34%) $(11) $87 (0.31%) $(8) $73 (0.23%) $(9) $76 (0.26%) $(9) $84 (0.27%)
==== === ====== ==== === ====== === === ====== === === ====== === === ======
06/30/2017 03/31/2017 12/31/2016 9/30/2016 6/30/2016
---------- ---------- ---------- --------- ---------
AS ADJUSTED (CASH
YIELD, NON-GAAP) Income Average Yield Income Average Yield Income Average Yield Income Average Yield Income Average Yield
Balance Balance Balance Balance Balance
--- --- --- --- ---
Legacy loans, net $140 $13,150 4.27% $131 $12,760 4.12% $125 $12,481 3.97% $123 $12,183 4.00% $118 $11,737 4.04%
Acquired loans (1) 27 2,206 4.94 27 2,373 4.73 29 2,525 4.56 32 2,723 4.67 34 2,950 4.67
Total loans $167 $15,356 4.36% $158 $15,133 4.24% $154 $15,006 4.07% $155 $14,906 4.12% $152 $14,687 4.16%
==== ======= ==== ==== ======= ==== ==== ======= ==== ==== ======= ==== ==== ======= ====
(1) Acquired loans include the impact of the FDIC Indemnification Asset in periods prior to loss share termination in December 2016.
Table 12 - IBERIABANK CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
For the Three Months Ended
--------------------------
6/30/2017 3/31/2017 12/31/2016
--------- --------- ----------
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 $80,051 $52,018 $1.01 $72,992 $50,473 $1.08 $58,164 $45,130 $1.06
Preferred stock
dividends - (949) (0.02) - (3,599) (0.08) - (957) (0.02)
--- ---- ----- --- ------ ----- --- ---- -----
Income available
to common
shareholders
(GAAP) $80,051 $51,069 $0.99 $72,992 $46,874 $1.00 $58,164 $44,173 $1.04
Non-interest income adjustments (3):
Gain on sale of
investments and
other non-
interest income (59) (38) - (1) - - (5) (3) -
Non-interest expense adjustments (3):
Merger-related
expense 1,066 789 0.02 54 35 - - - -
Severance expense 378 246 - 98 63 - 188 122 -
Impairment of
long-lived
assets, net of
(gain) loss on
sale (1,306) (849) (0.02) 1,429 929 0.02 (462) (300) (0.01)
Litigation expense 6,000 5,481 0.11 - - - - - -
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 6,138 5,667 0.11 1,581 1,027 0.02 18,008 11,705 0.28
Income tax expense
(benefit) - - - - - - - (6,836) (0.16)
--- --- --- --- --- --- --- ------ -----
Core earnings
(Non-GAAP) 86,130 56,698 1.10 74,572 47,901 1.02 76,167 49,039 1.16
Provision for loan
losses 12,050 7,833 6,154 4,000 5,169 3,360
Pre-provision
earnings, as
adjusted (Non-
GAAP) (3) $98,180 $64,531 $80,726 $51,901 $81,336 $52,399
======= ======= ======= ======= ======= =======
For the Three Months Ended
--------------------------
9/30/2016 6/30/2016
--------- ---------
Pre-tax After-tax (1) Per share (2) Pre-tax After-tax (1) Per share (2)
------- ------------ ------------ ------- ------------ ------------
Net income $72,615 $48,068 $1.17 $76,300 $50,810 $1.23
Preferred stock
dividends - (3,590) (0.09) - (854) (0.02)
--- ------ ----- --- ---- -----
Income available
to common
shareholders
(GAAP) $72,615 $44,478 $1.08 $76,300 $49,956 $1.21
Non-interest income adjustments (3):
Gain on sale of
investments and
other non-
interest income (12) (8) - (1,789) (1,163) (0.03)
Non-interest expense adjustments (3):
Merger-related
expense - - - - - -
Severance expense - - - 140 91 -
Impairment of
long-lived
assets, net of
(gain) loss on
sale - - - (1,256) (816) (0.02)
Other non-core
non-interest
expense - - - 1,177 765 0.02
--- --- --- ----- --- ----
Total non-
interest expense
adjustments - - - 61 40 -
Income tax expense
(benefit) - - - - - -
--- --- --- --- --- ---
Core earnings
(Non-GAAP) 72,603 44,470 1.08 74,572 48,833 1.18
Provision for loan
losses 12,484 8,115 11,866 7,712
Pre-provision
earnings, as
adjusted (Non-
GAAP) (3) $85,087 $52,585 $86,438 $56,545
======= ======= ======= =======
(1) Excluding preferred stock dividends, merger-related expense and litigation expense, after-tax amounts 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.
(3) Adjustments to GAAP results include certain significant activities or transactions that, in management's opinion, can distort period-to-period comparisons of the Company's performance. These adjustments include, but are not limited to, realized and unrealized gains or losses on former bank-owned real estate, realized gains or losses on the sale of investment securities, merger-related expenses, litigation charges and recoveries, debt prepayment penalties,
and gains, losses, and impairment charges on long-lived assets.
For the Six Months Ended
------------------------
6/30/2017 6/30/2016
--------- ---------
Pre-tax After-tax (1) Per share (2) Pre-tax After-tax (1) Per share (2)
------- ------------ ------------ ------- ------------ ------------
Net income $153,043 $102,491 $2.08 $141,191 $93,579 $2.26
Preferred stock
dividends - (4,548) (0.09) - (3,430) (0.08)
--- ------ ----- --- ------ -----
Income available
to common
shareholders
(GAAP) $153,043 $97,943 $1.99 $141,191 $90,149 $2.18
Non-interest income adjustments (3):
Gain on sale of
investments and
other non-
interest income (60) (38) - (1,985) (1,290) (0.03)
Non-interest expense adjustments (3):
Merger-related
expense 1,120 824 0.02 3 2 -
Severance expense 476 309 0.01 594 386 0.01
Impairment of
long-lived
assets, net of
(gain) loss on
sale 123 80 - (212) (137) (0.01)
Litigation expense 6,000 5,481 0.11 - - -
Other non-core
non-interest
expense - - - 2,268 1,474 0.04
--- --- --- ----- ----- ----
Total non-
interest expense
adjustments 7,719 6,694 0.14 2,653 1,725 0.04
Income tax expense
(benefit) - - - - - -
--- --- --- --- --- ---
Core earnings
(Non-GAAP) 160,702 104,599 2.13 141,859 90,584 2.19
Provision for loan
losses 18,204 11,833 26,771 17,400
Pre-provision
earnings, as
adjusted (Non-
GAAP) (3) $178,906 $116,432 $168,630 $107,984
======== ======== ======== ========
(1) Excluding preferred stock dividends, merger-related expense and litigation expense, after-tax amounts 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.
(3) Adjustments to GAAP results include certain significant activities or transactions that, in management's opinion, can distort period-to-period comparisons of the Company's performance. These adjustments include, but are not limited to, realized and unrealized gains or losses on former bank-owned real estate, realized gains or losses on the sale of investment securities, merger-related expenses, litigation charges and recoveries, debt prepayment penalties,
and gains, losses, and impairment charges on long-lived assets.
Table 13 - IBERIABANK CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
For the Three Months Ended
--------------------------
6/30/2017 3/31/2017 12/31/2016 9/30/2016 6/30/2016
--------- --------- ---------- --------- ---------
Net interest income
(GAAP) $183,643 $172,818 $161,665 $163,417 $162,753
Add: Effect of tax
benefit on interest
income 2,492 2,491 2,340 2,330 2,290
Net interest income (TE)
(Non-GAAP) (1) 186,135 175,309 164,005 165,747 165,043
------- ------- ------- ------- -------
Non-interest income
(GAAP) 55,966 47,346 53,238 59,821 64,917
Add: Effect of tax
benefit on non-interest
income 668 706 713 703 760
--- --- --- --- ---
Non-interest income (TE)
(Non-GAAP) (1) 56,634 48,052 53,951 60,524 65,677
------ ------ ------ ------ ------
Taxable equivalent
revenues (Non-GAAP) (1) 242,769 223,361 217,956 226,271 230,720
Securities gains and
other non-interest
income (59) (1) (5) (12) (1,789)
Core taxable equivalent
revenues (Non-GAAP) (1) $242,710 $223,360 $217,951 $226,259 $228,931
======== ======== ======== ======== ========
Total non-interest
expense (GAAP) $147,508 $141,018 $151,570 $138,139 $139,504
Less: Intangible
amortization expense 1,651 1,770 2,087 2,106 2,109
Tangible non-interest
expense (Non-GAAP) (2) 145,857 139,248 149,483 136,033 137,395
------- ------- ------- ------- -------
Less: Merger-related
expense 1,066 54 - - -
Severance expense 378 98 188 - 140
(Gain) Loss on sale of
long-lived assets, net
of impairment (1,306) 1,429 (462) - (1,256)
Litigation expense 6,000 - - - -
Loss on early termination
of loss share agreements - - 17,798 - -
Other non-core non-
interest expense - - 484 - 1,177
Core tangible non-
interest expense (Non-
GAAP) (2) $139,719 $137,667 $131,475 $136,033 $137,334
======== ======== ======== ======== ========
Return on average assets
(GAAP) 0.96% 0.94% 0.85% 0.94% 1.02%
Effect of non-core
revenues and expenses 0.10 0.02 0.09 0.00 (0.02)
Core return on average
assets (Non-GAAP) 1.06% 0.96% 0.94% 0.94% 1.00%
==== ==== ==== ==== ====
Efficiency ratio (GAAP) 61.6% 64.1% 70.5% 61.9% 61.3%
Effect of tax benefit
related to tax-exempt
income (0.8) (1.0) (1.0) (0.9) (0.8)
---- ---- ---- ---- ----
Efficiency ratio (TE)
(Non-GAAP) (1) 60.8% 63.1% 69.5% 61.0% 60.5%
Effect of amortization of
intangibles (0.7) (0.8) (1.0) (0.9) (0.9)
Effect of non-core items (2.5) (0.7) (8.2) 0.0 0.4
Core tangible efficiency
ratio (TE) (Non-GAAP)
(1)(2) 57.6% 61.6% 60.3% 60.1% 60.0%
==== ==== ==== ==== ====
Return on average common
equity (GAAP) 6.08% 6.41% 6.70% 7.00% 8.05%
Effect of intangibles (2) 1.92 2.39 3.01 3.30 3.85
Effect of non-core
revenues and expenses 0.86 0.19 1.04 0.00 (0.26)
Core return on average
tangible common equity
(Non-GAAP) (2) 8.86% 8.99% 10.75% 10.30% 11.64%
==== ==== ===== ===== =====
Total shareholders'
equity (GAAP) $3,503,242 $3,457,975 $2,939,694 $2,667,110 $2,637,597
Less: Goodwill and other
intangibles 752,336 753,991 755,765 757,856 759,966
Preferred stock 132,097 132,097 132,097 132,097 132,098
Tangible common equity
(Non-GAAP) (2) $2,618,809 $2,571,887 $2,051,832 $1,777,157 $1,745,533
========== ========== ========== ========== ==========
Total assets (GAAP) $21,790,727 $22,008,479 $21,659,190 $20,788,566 $20,160,855
Less: Goodwill and other
intangibles 752,336 753,991 755,765 757,856 759,966
Tangible assets (Non-
GAAP) (2) $21,038,391 $21,254,488 $20,903,425 $20,030,710 $19,400,889
=========== =========== =========== =========== ===========
Tangible common equity
ratio (Non-GAAP) (2) 12.45% 12.10% 9.82% 8.87% 9.00%
===== ===== ==== ==== ====
(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.
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SOURCE IBERIABANK Corporation
