IBERIABANK CORPORATION LAFAYETTE, La., Oct. 19, 2017 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 130-year-old IBERIABANK (www.iberiabank.com), reported financial results for the quarter ended September 30, 2017. For the quarter, the Company reported income available to common shareholders of $26.0 million, or $0.49 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 third quarter of 2017 was $1.00 per common share (refer to press release supplemental tables for a reconciliation of GAAP to non-GAAP metrics).
The Company completed the acquisition of Sabadell United Bank, N.A. ("Sabadell United") from Banco de Sabadell, S.A. on July 31, 2017. The acquisition added $4.0 billion in loans and $4.4 billion in deposits. Financial statements reflect the impact of the acquisition beginning on the acquisition date and are subject to future refinements to purchase accounting adjustments. The Company incurred approximately $33.2 million in pre-tax acquisition and conversion-related expenses, including compensation-related and branch closure expenses, during the third quarter of 2017. Sabadell United had 25 offices serving the Miami metropolitan area and three offices in Naples, Sarasota and Tampa, Florida.
Daryl G. Byrd, President and Chief Executive Officer, commented, "We welcome the former clients and associates of Sabadell United to our Company. We believe our combined franchise is well-positioned to experience significant long-term growth in Southeast Florida and enhance our strategic progress. I'm particularly proud of the tremendous effort and teamwork on the part of our legacy associates and our newest team members to successfully complete and convert the combination in a high-quality manner."
Byrd continued, "As previously announced, third quarter results were impacted by merger and conversion-related expenses, hurricane-related and energy-related provisioning and an additional accrual for the HUD legal matter. These one-off expenses do not overshadow our excitement about the growth prospects, synergies and diversifications that we expect from the Sabadell United merger, in addition to our solid legacy business where we saw annualized legacy loan growth of 10% during the quarter."
Highlights for the third quarter of 2017 and at September 30, 2017:
-- The Company's reported and cash net interest margins declined 7 and 16
basis points on a linked quarter basis, to 3.64% and 3.29%,
respectively, primarily as a result of the impact of the Sabadell United
acquisition, which included lower acquired loan yields and higher
acquired deposit costs compared to the Company's legacy business.
-- Non-interest income decreased $2.9 million, or 5.2%, on a linked quarter
basis, primarily as a result of a decline in mortgage income.
-- Total loan growth was $4.2 billion, or 27%, between June 30, 2017 and
September 30, 2017. Consolidated loans, excluding the loans acquired
from Sabadell United, grew $213.0 million, or 1.4% (5% annualized rate),
on a period-end basis. Legacy loan growth was $333.5 million, or 2.5%
(10% annualized rate) on a period-end basis.
-- Energy-related loans (or "energy loans") increased $59.6 million and
equated to 3.1% of total loans at September 30, 2017, compared to 3.5%
at June 30, 2017. Classified energy-related loans decreased 22%, and
non-performing energy-related assets decreased 34% during the third
quarter of 2017, primarily related to one large charge-off and one large
pay-down.
-- Total deposits increased $4.5 billion, or 27%, between quarter-ends, and
increased $98.1 million, or 0.58% (2% annualized rate), excluding
acquired Sabadell United deposits.
-- Net charge-offs increased $17.9 million on a linked quarter basis,
primarily related to two credits, one of which was energy-related, and
equated to an annualized 0.62% of average loans. The provision for loan
losses increased $6.5 million, or 54%.
-- The Company successfully completed the conversion of branch and
operating systems associated with the Sabadell United acquisition over
the weekend of October 13 - 15, 2017.
Updates previously reported in press release dated October 4, 2017:
-- The Company made significant progress on the resolution of non-accruals
in the energy portfolio during the third quarter of 2017. Several of the
energy companies with non-accrual loans outstanding were successful in
negotiating pre-packaged bankruptcies. As a result of these pre-packaged
bankruptcies, $17.0 million of energy-related loan net charge-offs
occurred during the third quarter of 2017. Of the $17.0 million, $7.8
million had been previously provided for in prior quarters with $9.2
million provided for during the third quarter.
-- During the third quarter of 2017, the Company recorded an additional
$5.7 million settlement accrual associated with the previously disclosed
U.S. Department of Housing and Urban Development ("HUD") lawsuit, which
negatively impacted earnings by $0.09 per share after-tax. The Company
has recently negotiated a settlement amount of $11.7 million that
counsel for the United States are recommending for approval by the
appropriate decision makers, which remains subject to review and
approval by the Department of Justice. The Company hopes to resolve this
matter by the end of October 2017.
-- The Company acquired Sabadell United on July 31, 2017, and incurred
approximately $33.2 million, or $0.42 per share after-tax, in
acquisition, conversion, branch closure and compensation-related
non-core expenses during the third quarter of 2017.
-- During the third quarter of 2017 the Company accrued $8.5 million, or
$0.10 per share after-tax, of incremental provision for credit losses
associated with Hurricanes Harvey and Irma. Both storms occurred during
the third quarter. The Company incurred minimal damage and incremental
expense related to its physical infrastructure as a result of these
storms.
Table A - Summary Financial Results
(Dollars in thousands, except per share data)
For the Three Months Ended
--------------------------
9/30/2017 6/30/2017 % Change 9/30/2016 % Change
--------- --------- -------- --------- --------
GAAP BASIS:
Income available
to common
shareholders $26,046 $51,069 (49.0) $44,478 (41.4)
Earnings per
common share -
diluted 0.49 0.99 (50.5) 1.08 (54.6)
Average loans, net
of unearned
income $18,341,138 $15,284,007 20.0 $14,802,199 23.9
Average total
deposits 19,783,182 17,160,848 15.3 16,076,742 23.1
Net interest
margin (TE) (1) 3.64% 3.71% 3.56%
Total revenues $269,950 $239,609 12.7 $223,238 20.9
Total non-
interest expense 202,986 147,508 37.6 138,139 46.9
Efficiency ratio 75.2% 61.6% 61.9%
Return on average
assets 0.45 0.96 0.94
Return on average
common equity 2.92 6.08 7.00
NON-GAAP BASIS
(2):
Core revenues $270,192 $239,550 12.8 $223,226 21.0
Core non-interest
expense 163,686 141,370 15.8 138,139 18.5
Core earnings per
common share -
diluted 1.00 1.10 (9.1) 1.08 (7.4)
Core tangible
efficiency ratio
(TE) (1) (4) 58.2% 57.6% 60.1%
Core return on
average assets 0.87 1.06 0.94
Core return on
average tangible
common equity (4) 8.95 8.86 10.30
Net interest
margin (TE) -
cash basis (1)
(3) 3.29 3.45 3.31
(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 loans increased $3.1 billion, or 20%, and the associated taxable-equivalent yield decreased 1 basis point. Over that period, average legacy loans increased $487.8 million, or 4%, with an increase in yield of 2 basis points, while average acquired loans increased $2.6 billion, or 120%, and the acquired loan yield decreased 154 basis points, as a result of the Sabadell United acquisition. All other average earning assets, including investment securities, mortgage loans held for sale, and interest-bearing deposits in other institutions, increased a net of $785.0 million, or 16%, versus the prior quarter.
Primarily as a result of lower yields on acquired loans and an increase in the cost of interest-bearing deposits, the Company's reported and cash net interest margins decreased 7 and 16 basis points on a linked quarter basis to 3.64% and 3.29%, respectively. During the third quarter of 2017, the average yield on legacy loans was 4.29%, compared to a yield of 3.68% on Sabadell United acquired loans, and the average total costs of consolidated deposits less Sabadell United was 42 basis points compared to 56 basis points for Sabadell United acquired deposits.
Overall, taxable-equivalent net interest income increased by $33.3 million, or 18%, on a linked quarter basis. The primarily volume-driven increase in net interest income included a $3.9 billion, or 19%, increase in average earning assets and a 1 basis point increase in earning asset yield, offset by a $3.4 billion, or 26%, increase in average interest-bearing liabilities and an 8 basis point increase in associated costs.
The Company's provision for loan losses increased $6.5 million, or 54%, on a linked quarter basis to $18.5 million due primarily to hurricane and energy-related provisioning. The provision for loan losses covered net charge-offs in the third quarter of 2017 by 64% compared to 111% in the second quarter of 2017.
In the third quarter of 2017, non-interest income on a GAAP basis decreased $2.9 million, or 5%, and decreased $2.6 million, or 5%, on a non-core basis, each compared to the second quarter of 2017. The primary changes in non-interest income on a linked quarter basis were:
-- Decreased mortgage income of $3.7 million, or 19%;
-- Decreased title revenues of $0.5 million, or 9%;
-- Decreased broker commissions of $0.5 million, or 17%;
-- Loss on sale of available-for-sale securities of $0.3 million; partially
offset by
-- Increased deposit service charge income of $1.1 million, or 10%; and
-- Increased trust fee income of $0.7 million, or 33%.
In the third quarter of 2017, the Company originated $528 million in residential mortgage loans, down $18 million, or 3%, on a linked quarter basis. Client loan refinancing opportunities accounted for approximately 22% of mortgage loan applications in the third quarter of 2017, compared to 17% on a linked quarter basis. The Company sold $509 million in mortgage loans during the third quarter of 2017, up $1 million, or less than 1%, on a linked quarter basis. Loans held for sale of $141.2 million at September 30, 2017, was consistent with the balance at June 30, 2017. The mortgage origination locked pipeline was $188 million at September 30, 2017, down $61 million, or 24%, between quarter-ends, and was down 33% compared to one year ago. At October 16, 2017, the locked mortgage pipeline was $204 million, up 9% compared to September 30, 2017.
Non-interest expense increased $55.5 million, or 38%, on a linked quarter basis and included $1.5 million related to inclusion of two months of Sabadell United expenses. During the third quarter of 2017, the Company's non-core non-interest expense included $28.5 million in merger and conversion-related expenses, $1.1 million in compensation-related expense, $5.7 million in litigation expense, $3.7 million in branch closure and other impairment expense, and $0.4 million in storm-related expense.
Excluding non-core expenses, core non-interest expense increased $22.3 million, or 16%, and was comprised of the following items on a linked-quarter basis:
-- Increased salary and benefits cost of $9.6 million, or 11%, which
included:
-- Increased regular compensation expenses of $7.5 million, including
$5.8 million for Sabadell United associates;
-- Increased incentives and other benefit expenses of $1.9 million;
partially offset by
-- Decreased deferred compensation of $0.4 million;
-- Increased provision for unfunded lending commitments of $4.1 million;
-- Increased occupancy and equipment expenses of $2.6 million, primarily
from the addition of South Florida locations related to the Sabadell
United acquisition;
-- Intangible amortization increased $2.9 million, or 174%, due to
increases from the Sabadell United acquisition; and
-- Insurance expense increased $1.8 million, or 40%, primarily related to
FDIC insurance on Sabadell United acquired deposits.
On a linked quarter basis, the Company's revenues and non-GAAP core revenues increased $30.3 million, or 13%, and increased $30.6 million, or 13%, respectively. Over the same period, GAAP expenses increased $55.5 million, or 38%, and non-GAAP core expenses increased $22.3 million, or 16%. The efficiency ratio increased from 61.6% to 75.2%, while the non-GAAP core tangible efficiency ratio increased from 57.6% to 58.2%, on a linked quarter basis.
Table B - Summary Financial Condition Results
(Dollars in thousands, except per share data)
As of and For the Three Months Ended
------------------------------------
9/30/2017 6/30/2017 % Change 9/30/2016 % Change
--------- --------- -------- --------- --------
PERIOD-END BALANCES:
Total loans, net of unearned income $19,795,085 $15,556,016 27.3 $14,924,499 32.6
Legacy loans, net of unearned income 13,826,904 13,493,410 2.5 12,413,370 11.4
Total deposits 21,334,271 16,853,116 26.6 16,522,517 29.1
ASSET QUALITY RATIOS (LEGACY):
Loans 30-89 days past due and still accruing as a percentage of total loans 0.26% 0.30% 0.33%
Loans 90 days or more past due and still accruing as a percentage of total
loans 0.01 0.00 0.04
Non-performing assets to total assets (1) 0.64 0.87 1.33
Classified assets to total assets (2) 1.21 1.43 2.18
CAPITAL RATIOS:
Tangible common equity ratio (Non-GAAP) (3) (4) 8.68% 12.45% 8.87%
Tier 1 leverage ratio (5) 10.17 13.19 9.70
Total risk-based capital ratio (5) 12.78 16.74 12.47
PER COMMON SHARE DATA:
Book value $66.74 $66.08 1.0 $61.71 8.2
Tangible book value (Non-GAAP) (3) (4) 43.04 51.33 (16.2) 43.26 (0.5)
Closing stock price 82.15 81.50 0.8 67.12 22.4
Cash dividends 0.37 0.36 2.8 0.36 2.8
(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. Refer to Tables 5-8 for further detail.
(2) Classified assets include commercial loans rated substandard or
worse and non-performing mortgage and consumer loans, and were $259
million, $283 million and $398 million at September 30, 2017, June
30, 2017, and September 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 September 30, 2017 are
preliminary.
Loans
Total loans increased $4.2 billion, or 27%, to $19.8 billion at September 30, 2017, from $15.6 billion at June 30, 2017. Over that period, acquired loans increased $3.9 billion, or 189%, as a result of the Sabadell United acquisition, and legacy loans increased $333.5 million, or 2% (10% annualized rate). During the third quarter of 2017, legacy commercial loans increased $239.7 million, or 2% (including an increase in energy loans of $60.4 million, or 11%), legacy consumer loans increased $23.8 million, or 1% (including a decline in indirect automobile loans of $15.9 million, or 17%), and legacy mortgage loans increased $70.0 million, or 7%. Excluding acquired loans from Sabadell United, period-end loan growth during the third quarter of 2017 was strongest in the Atlanta, Tampa, Baton Rouge and Palm Beach/Broward markets. Funded loan origination and renewal mix in the third quarter of 2017 was 35% fixed rate and 65% floating rate, and total loans outstanding (excluding non-accruals) were 41% fixed and 59% floating. Commitments originated and/or renewed during the third quarter of 2017 were $1.7 billion (up 5% on a linked quarter basis). Loans originated and/or renewed during the third quarter of 2017 totaled $1.1 billion (up 4% on a linked quarter basis). At September 30, 2017, the Company's probability-weighted commercial loan pipeline was approximately $1.2 billion.
Table C - Period-End Loans
(Dollars in thousands)
As of and For the Three Months Ended
Linked Qtr Change Year/Year Change Mix
----------------- ---------------- ---
9/30/2017 6/30/2017 9/30/2016 $ % Annualized $ % 9/30/2017 6/30/2017
--------- --------- --------- --- --- ---------- --- --- --------- ---------
Legacy loans:
Commercial $10,295,455 $10,055,791 $9,119,234 239,664 2.4 9.5% 1,176,221 12.9 74.5% 74.5%
Residential mortgage 1,040,990 970,961 840,082 70,029 7.2 28.6% 200,908 23.9 7.5% 7.2%
Consumer 2,490,459 2,466,658 2,454,054 23,801 1.0 3.8% 36,405 1.5 18.0% 18.3%
--------- --------- --------- ------ --- --- ------ --- ---- ----
Total legacy loans 13,826,904 13,493,410 12,413,370 333,494 2.5 9.8% 1,413,534 11.4 100.0% 100.0%
Acquired loans:
Balance at beginning of period 2,062,606 2,208,758 2,737,712 (146,152) (6.6) (675,106) (24.7)
Loans acquired during the period 4,026,020 - - 4,026,020 100.0 4,026,020 100.0
Net paydown activity (120,445) (146,152) (226,583) 25,707 (17.6) 106,138 (46.8)
-------- -------- -------- ------ ----- ------- -----
Total acquired loans 5,968,181 2,062,606 2,511,129 3,905,575 189.4 3,457,052 137.7
Total loans $19,795,085 $15,556,016 $14,924,499 4,239,069 27.3 4,870,586 32.6
=========== =========== =========== ========= ==== ========= ====
As previously announced, the Company made significant progress on the resolution of non-accruals in the energy portfolio during the third quarter of 2017. Several of the energy companies with non-accrual loans outstanding were successful in negotiating pre-packaged bankruptcies. As a result of these pre-packaged bankruptcies, $17.0 million of energy-related loan net charge-offs occurred during the third quarter of 2017. Of the $17.0 million, $7.8 million had been previously provided for in prior quarters with $9.2 million provided for during the third quarter.
Energy loans outstanding totaled $611.6 million at September 30, 2017, up $59.6 million, or 11% compared to June 30, 2017, and equated to approximately 3.1% of total loans (compared to 3.5% at June 30, 2017). Energy-related commitments totaled $1.2 billion at September 30, 2017, up $146.8 million, or 14%, compared to June 30, 2017. E&P companies accounted for 54% of energy loans outstanding and 59% of energy loan commitments, midstream companies accounted for 21% of energy loans and 22% of energy loan commitments, and service companies accounted for 25% of energy loans and 19% of energy loan commitments.
At September 30, 2017, $62.4 million in energy-related loans were on non-accrual status (down $32.1 million, or 34%, compared to June 30, 2017), and $2.3 million in energy-related loans (excluding non-accruing loans) were past due greater than 30 days at quarter-end. Classified energy loans decreased $28 million, or 22%, and criticized energy loans decreased $26 million, or 14%, between quarter-ends. At September 30, 2017, approximately 16% of energy loans were classified and 25% were criticized, compared to approximately 23% and 32%, respectively, at June 30, 2017. Since December 2014, the Company has experienced $36 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.
Deposits
Total deposits increased $4.5 billion, or 27%, between June 30, 2017 and September 30, 2017 primarily driven by $4.4 billion deposits acquired from Sabadell United. Non-interest-bearing deposits increased $943.7 million, or 19%, and equated to 28% of total deposits at September 30, 2017. Money market accounts increased $2.3 billion, or 38%, time deposits increased $729.2 million, or 38%, NOW accounts increased $458.3 million, or 15%, and savings deposits increased $45.8 million, or 6%. Excluding acquired deposits from Sabadell United, deposit growth during the third quarter of 2017 was strongest in the Dallas, Birmingham, New Orleans and Palm Beach/Broward markets.
Table D - Period-End Deposits
(Dollars in thousands)
Linked Qtr Change Year/Year Change Mix
----------------- ---------------- ---
9/30/2017 6/30/2017 9/30/2016 $ % Annualized $ % 9/30/2017 6/30/2017
--- --- --------- ---------
Non-
interest-
bearing $5,963,943 $5,020,195 $4,787,485 943,748 18.8 74.5% 1,176,458 24.6 28.0% 29.8%
NOW
accounts 3,547,761 3,089,482 2,904,835 458,279 14.8 58.8% 642,926 22.1 16.6% 18.3%
Money
market
accounts 8,321,755 6,017,654 5,847,913 2,304,101 38.3 151.9% 2,473,842 42.3 39.0% 35.7%
Savings
accounts 843,662 797,859 798,781 45,803 5.7 22.8% 44,881 5.6 4.0% 4.8%
Time
deposits 2,657,150 1,927,926 2,183,503 729,224 37.8 150.1% 473,647 21.7 12.4% 11.4%
Total
deposits $21,334,271 $16,853,116 $16,522,517 4,481,155 26.6 105.5% 4,811,754 29.1 100.0% 100.0%
=========== =========== =========== ========= ==== ===== ========= ==== ===== =====
On an average balance and linked quarter basis, non-interest-bearing deposits increased $608.5 million, or 12%, and interest-bearing deposits increased $2.0 billion, or 17%. The rate on average interest-bearing deposits in the third quarter of 2017 was 0.61%, up five basis points on a linked quarter basis, while the cost of total deposits (including non-interest bearing deposits) was 0.44%, up four basis points. The increase in the cost of interest-bearing deposits was primarily driven by the deposits acquired from Sabadell United during the third quarter of 2017 as well as interest-rate sensitive brokered money market deposits.
Other Assets And Funding
On an average balance and linked quarter basis, the investment portfolio increased $679.9 million, or 17%, in the third quarter of 2017, to $4.7 billion. On a period-end basis, the investment portfolio equated to $4.9 billion, or 18% of total assets at September 30, 2017, up $818.4 million, or 20%, compared to June 30, 2017. The investment portfolio had an effective duration of 3.5 years at both September 30, 2017 and June 30, 2017. The investment portfolio had an $18.2 million unrealized loss at September 30, 2017, an improvement from a $19.3 million unrealized loss at June 30, 2017. The average yield on investment securities remained at 2.32% in the third quarter of 2017. The Company holds in its investment portfolio primarily government agency securities. Municipal securities comprised 8% of total investments at September 30, 2017.
On a linked quarter basis, average short-term borrowings (including repurchase agreements) increased $1.3 billion, or 359%, and the cost of short-term borrowings increased seventy-six basis points. On a linked quarter basis, average long-term debt increased $114.1 million, or 18%, and the cost of long-term debt decreased eight basis points to 2.21%. The cost of average interest-bearing liabilities was 0.72% in the third quarter of 2017, up eight basis points on a linked quarter basis, primarily due to the costs associated with Sabadell United acquired deposits and other liabilities.
The acquisition of Sabadell United resulted in $431.8 million of goodwill and $96.6 million of core deposit intangible assets, based on preliminary fair value estimates.
Asset Quality
Non-performing assets ("NPAs") decreased $22.5 million, or 11%, to $176.0 million at September 30, 2017. Acquired NPAs increased $10.6 million, while legacy NPAs, which include energy and non-energy loans, decreased $33.1 million, or 19%, and equated to 0.64% of total legacy assets (down from 0.87% at June 30, 2017). Energy-related NPAs (which are included in legacy loans) decreased by $32.1 million, or 34%, and accounted for nearly all of the decline in the Company's legacy NPAs during the third quarter of 2017. At September 30, 2017, non-energy-related NPAs decreased to 0.41% of non-energy-related assets from 0.49% at June 30, 2017.
Aggregate accruing loans past due 30 to 89 days increased $7.9 million, or 16%, and equated to 0.30% of total loans at September 30, 2017, compared to 0.33% at June 30, 2017.
Net charge-offs totaled $28.8 million in the third quarter of 2017, up $17.9 million, or 164%, compared to the second quarter of 2017. Annualized net charge-offs equated to 0.62% of average loans in the third quarter of 2017, a 33 basis point increase on a linked quarter basis, primarily related to two credits, one of which was energy-related. The Company believes these events are not indicative of a change in asset quality trends or general deterioration in the loan portfolio.
Capital Position
At September 30, 2017, the Company reported a non-GAAP tangible common equity ratio of 8.68%, down 377 basis points compared to June 30, 2017, and the preliminary Tier 1 leverage ratio was 10.17%, down 302 basis points compared to June 30, 2017. The Company's preliminary calculation of its total risk-based capital ratio at September 30, 2017, was 12.78%, down 396 basis points compared to June 30, 2017.
At September 30, 2017, book value per common share was $66.74, up $0.66 per share, or 1%, compared to June 30, 2017. Tangible book value per common share was $43.04, down $8.29 per share, or 16%, compared to June 30, 2017. Based on the closing stock price of the Company's common stock of $80.15 per share on October 19, 2017, this price equated to 1.20 times September 30, 2017 book value per common share and 1.86 times September 30, 2017 tangible book value per common share.
Dividends On Capital Stock. The declaration of dividends is at the discretion of the Board of Directors. The following details the recent dividend declarations:
Common Stock. On September 19, 2017, the Company declared a quarterly cash dividend of $0.37 per common share, a 3% increase compared to the common dividend declared in June 2017. This common dividend level equated to an annualized dividend rate of $1.48 per common share. Based on the Company's closing common stock price on September 18, 2017, the indicated dividend yield was 1.95% per common share. The dividend is payable on October 27, 2017, to shareholders of record as of September 29, 2017.
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 $0.8281 per depositary share that was 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 September 19, 2017, the Company declared a quarterly cash dividend of $0.4125 per depositary share that is payable on November 1, 2017, to the shareholders of record as of the close of business on October 17, 2017.
Sale and Issuance of 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. These issuances were used to finance the acquisition of Sabadell United. The acquisition, which closed on July 31, 2017, provided for Banco de Sabadell, S.A. to receive 2,610,304 shares of the Company's common stock ($211.0 million based on the Company's closing stock price of $80.85 on that date) and $809.2 million in cash. Banco de Sabadell, S.A. sold the 2.6 million shares received as part of acquisition proceeds early in the fourth quarter of 2017.
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 third quarter of 2017. The Company has approximately 747,000 shares of common stock remaining that may be purchased under the currently authorized program.
IBERIABANK Corporation
IBERIABANK Corporation is a regional financial holding company with offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, and South Carolina, offering commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, mortgage, and title insurance services.
The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC". The Company's Series B Preferred Stock 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 $4.3 billion, based on the NASDAQ Global Select Market closing stock price on October 19, 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, October 20, 2017, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 4690812. A replay of the call will be available until midnight Central Time on October 27, 2017 by dialing 1-877-344-7529. The confirmation code for the replay is 10112272. 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. All information is as of the date of this press release. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.
Table 1 - IBERIABANK CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
As of and For the Three Months Ended
------------------------------------
INCOME DATA: 9/30/2017 6/30/2017 % Change 9/30/2016 % Change
--------- --------- -------- --------- --------
Net interest income $216,883 $183,643 18.1 $163,417 32.7
Net interest income (TE) (1) 219,468 186,135 17.9 165,747 32.4
Total revenues 269,950 239,609 12.7 223,238 20.9
Provision for loan losses 18,514 12,050 53.6 12,484 48.3
Non-interest expense 202,986 147,508 37.6 138,139 46.9
Net income available to common
shareholders 26,046 51,069 (49.0) 44,478 (41.4)
PER COMMON SHARE DATA:
Earnings available to common
shareholders -basic $0.49 $1.00 (51.0) $1.08 (54.6)
Earnings available to common
shareholders -diluted 0.49 0.99 (50.5) 1.08 (54.6)
Core earnings (Non-GAAP) (2) 1.00 1.10 (9.1) 1.08 (7.4)
Book value 66.74 66.08 1.0 61.71 8.2
Tangible book value (Non-GAAP)
(2) (3) 43.04 51.33 (16.2) 43.26 (0.5)
Closing stock price 82.15 81.50 0.8 67.12 22.4
Cash dividends 0.37 0.36 2.8 0.36 2.8
KEY RATIOS AND OTHER DATA (6):
Net interest margin (TE) (1) 3.64% 3.71% 3.56%
Efficiency ratio 75.2 61.6 61.9
Core tangible efficiency ratio
(TE) (Non-GAAP) (1) (2) (3) 58.2 57.6 60.1
Return on average assets 0.45 0.96 0.94
Return on average common equity 2.92 6.08 7.00
Core return on average tangible
common equity (Non-GAAP) (2)(3) 8.95 8.86 10.30
Effective tax rate 38.8 35.0 33.8
Full-time equivalent employees 3,646 3,190 3,129
CAPITAL RATIOS:
Tangible common equity ratio
(Non-GAAP) (2) (3) 8.68% 12.45% 8.87%
Tangible common equity to risk-
weighted assets (3) 10.56 14.32 10.17
Tier 1 leverage ratio (4) 10.17 13.19 9.70
Common equity Tier 1 (CET 1)
(transitional) (4) 10.93 14.52 10.13
Common equity Tier 1 (CET 1)
(fully phased-in) (4) 10.86 14.50 10.07
Tier 1 capital (transitional) (4) 11.53 15.24 10.89
Total risk-based capital ratio
(4) 12.78 16.74 12.47
Common stock dividend payout
ratio 76.5 36.2 33.3
Classified assets to Tier 1
capital (7) 16.2 13.4 26.1
ASSET QUALITY RATIOS (LEGACY):
Non-performing assets to total
assets (5) 0.64% 0.87% 1.33%
Allowance for loan losses to
loans 0.72 0.80 0.88
Net charge-offs to average loans
(annualized) 0.81 0.30 0.33
Non-performing assets to total
loans and OREO (5) 1.00 1.27 1.96
(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.
(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
September 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 Year/Year
Change Change
------ ------
9/30/2017 6/30/2017 $ % 3/31/2017 12/31/2016 9/30/2016 $ %
--------- --------- --- --- --------- ---------- --------- --- ---
Interest income $246,972 $204,575 42,397 20.7 $192,533 $180,805 $180,504 66,468 36.8
Interest expense 30,089 20,932 9,157 43.7 19,715 19,140 17,087 13,002 76.1
------ ------ ----- ---- ------ ------ ------ ------ ----
Net interest income 216,883 183,643 33,240 18.1 172,818 161,665 163,417 53,466 32.7
Provision for loan losses 18,514 12,050 6,464 53.6 6,154 5,169 12,484 6,030 48.3
------ ------ ----- ---- ----- ----- ------ ----- ----
Net interest income after
provision for loan
losses 198,369 171,593 26,776 15.6 166,664 156,496 150,933 47,436 31.4
Mortgage income 16,050 19,730 (3,680) (18.7) 14,115 16,115 21,807 (5,757) (26.4)
Service charges on
deposit accounts 12,534 11,410 1,124 9.9 11,153 11,178 11,066 1,468 13.3
Title revenue 5,643 6,190 (547) (8.8) 4,741 5,332 6,001 (358) (6.0)
Broker commissions 2,269 2,744 (475) (17.3) 2,738 4,006 3,797 (1,528) (40.2)
ATM/debit card fee income 3,658 3,800 (142) (3.7) 3,585 3,604 3,483 175 5.0
Income from bank owned
life insurance 1,263 1,241 22 1.8 1,311 1,323 1,305 (42) (3.2)
Gain (loss) on sale of
available-for-sale
securities (242) 59 (301) (510.2) - 4 12 (254) (2,116.7)
Other non-interest income 11,892 10,792 1,100 10.2 9,703 11,676 12,350 (458) (3.7)
------ ------ ----- ---- ----- ------ ------ ---- ----
Total non-interest
income 53,067 55,966 (2,899) (5.2) 47,346 53,238 59,821 (6,754) (11.3)
Salaries and employee
benefits 106,970 86,317 20,653 23.9 81,853 80,811 85,028 21,942 25.8
Occupancy and equipment 19,139 16,292 2,847 17.5 16,021 15,551 16,526 2,613 15.8
Loss on early termination
of loss share agreements - - - - - 17,798 - - -
Amortization of
acquisition intangibles 4,527 1,651 2,876 174.2 1,770 2,087 2,106 2,421 115.0
Data processing 12,899 7,306 5,593 76.6 6,941 6,996 6,076 6,823 112.3
Professional services 22,550 11,219 11,331 101.0 5,335 4,881 5,553 16,997 306.1
Credit and other loan
related expense 7,532 3,780 3,752 99.3 4,526 3,407 1,928 5,604 290.7
Other non-interest
expense 29,369 20,943 8,426 40.2 24,572 20,039 20,922 8,447 40.4
------ ------ ----- ---- ------ ------ ------ ----- ----
Total non-interest
expense 202,986 147,508 55,478 37.6 141,018 151,570 138,139 64,847 46.9
Income before income
taxes 48,450 80,051 (31,601) (39.5) 72,992 58,164 72,615 (24,165) (33.3)
Income tax expense 18,806 28,033 (9,227) (32.9) 22,519 13,034 24,547 (5,741) (23.4)
------ ------
Net income 29,644 52,018 (22,374) (43.0) 50,473 45,130 48,068 (18,424) (38.3)
Less: Preferred stock
dividends 3,598 949 2,649 279.1 3,599 957 3,590 8 0.2
Net income available to
common shareholders $26,046 $51,069 (25,023) (49.0) $46,874 $44,173 $44,478 (18,432) (41.4)
======= ======= ======= ===== ======= ======= ======= ======= =====
Income available to
common shareholders -
basic $26,046 $51,069 (25,023) (49.0) $46,874 $44,173 $44,478 (18,432) (41.4)
Less: Earnings allocated
to unvested restricted
stock 283 361 (78) (21.6) 346 414 462 (179) (38.7)
Earnings allocated to
common shareholders $25,763 $50,708 (24,945) (49.2) $46,528 $43,759 $44,016 (18,253) (41.5)
======= ======= ======= ===== ======= ======= ======= ======= =====
Earnings per common share
-basic $0.49 $1.00 (0.51) (51.0) $1.01 $1.05 $1.08 (0.59) (54.6)
Earnings per common share
-diluted 0.49 0.99 (0.50) (50.5) 1.00 1.04 1.08 (0.59) (54.6)
Impact of non-core items
(Non-GAAP) (1) 0.51 0.11 0.40 363.6 0.02 0.12 - 0.51 N/M
---- ---- ---- ----- ---- ---- --- ---- ---
Earnings per share -
diluted, excluding non-
core items (Non-GAAP)
(1) $1.00 $1.10 (0.10) (9.1) $1.02 $1.16 $1.08 (0.08) (7.4)
NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
Weighted average common
shares outstanding -
basic 52,424 50,630 1,794 3.5 46,123 41,688 40,618 11,806 29.1
Weighted average common
shares outstanding -
diluted 52,770 50,984 1,786 3.5 46,496 41,950 40,811 11,959 29.3
Book value shares (period
end) 53,864 51,015 2,849 5.6 50,970 44,795 41,082 12,782 31.1
(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 Nine Months Ended
-------------------------
Linked Qtr Change
-----------------
9/30/2017 9/30/2016 $ %
--------- --------- --- ---
Interest income $644,080 $536,134 107,946 20.1
Interest expense 70,736 48,561 22,175 45.7
------ ------ ------ ----
Net interest income 573,344 487,573 85,771 17.6
Provision for loan losses 36,718 39,255 (2,537) (6.5)
------ ------ ------ ----
Net interest income after
provision for loan
losses 536,626 448,318 88,308 19.7
Mortgage income 49,895 67,738 (17,843) (26.3)
Service charges on
deposit accounts 35,097 32,957 2,140 6.5
Title revenue 16,574 16,881 (307) (1.8)
Broker commissions 7,751 11,332 (3,581) (31.6)
ATM/debit card fee income 11,043 10,636 407 3.8
Income from bank owned
life insurance 3,815 3,918 (103) (2.6)
Gain (loss) on sale of
available-for-sale
securities (183) 1,997 (2,180) (109.2)
Other non-interest income 32,387 35,124 (2,737) (7.8)
------ ------ ------ ----
Total non-interest
income 156,379 180,583 (24,204) (13.4)
Salaries and employee
benefits 275,140 250,875 24,265 9.7
Occupancy and equipment 51,452 50,246 1,206 2.4
Amortization of
acquisition intangibles 7,948 6,328 1,620 25.6
Data processing 27,146 18,095 9,051 50.0
Professional services 39,104 14,272 24,832 174.0
Credit and other loan
related expense 15,838 7,530 8,308 110.3
Other non-interest
expense 74,884 67,749 7,135 10.5
------ ------ ----- ----
Total non-interest
expense 491,512 415,095 76,417 18.4
Income before income
taxes 201,493 213,806 (12,313) (5.8)
Income tax expense 69,358 72,159 (2,801) (3.9)
------ ------ ------ ----
Net income 132,135 141,647 (9,512) (6.7)
Less: Preferred stock
dividends 8,146 7,020 1,126 16.0
Net income available to
common shareholders $123,989 $134,627 (10,638) (7.9)
======== ======== ======= ====
Income available to
common shareholders -
basic $123,989 $134,627 (10,638) (7.9)
Less: Earnings allocated
to unvested restricted
stock 1,052 1,464 (412) (28.1)
Earnings allocated to
common shareholders $122,937 $133,163 (10,226) (7.7)
======== ======== ======= ====
Earnings per common share
-basic $2.47 $3.27 (0.80) (24.5)
Earnings per common share
-diluted 2.45 3.26 (0.81) (24.8)
Impact of non-core items
(Non-GAAP) (1) 0.68 0.01 0.67 6,700.0
---- ---- ---- -------
Earnings per share -
diluted, excluding non-
core items (Non-GAAP)
(1) $3.13 $3.27 (0.14) (4.3)
NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
Weighted average common
shares outstanding -
basic 49,749 41,156 8,593 20.9
Weighted average common
shares outstanding -
diluted 50,106 40,818 9,288 22.8
Book value shares (period
end) 53,864 41,082 12,782 31.1
(1) See Table 12 and Table 13 for GAAP to
Non-GAAP reconciliations.
TABLE 4 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
PERIOD-END BALANCES Linked Qtr Change Year/Year Change
----------------- ----------------
ASSETS 9/30/2017 6/30/2017 $ % 3/31/2017 12/31/2016 9/30/2016 $ %
--------- --------- --- --- --------- ---------- --------- --- ---
Cash and due from banks $298,173 $301,910 (3,737) (1.2) $276,979 $295,896 $327,799 (29,626) (9.0)
Interest-bearing deposits in
other banks 583,043 167,450 415,593 248.2 1,024,139 1,066,230 773,454 (190,411) (24.6)
------- ------- ------- ----- --------- --------- ------- -------- -----
Total cash and cash equivalents 881,216 469,360 411,856 87.7 1,301,118 1,362,126 1,101,253 (220,037) (20.0)
Investment securities available
for sale 4,736,339 4,009,299 727,040 18.1 3,823,953 3,446,097 2,885,413 1,850,926 64.1
Investment securities held to
maturity 175,906 84,517 91,389 108.1 86,018 89,216 90,653 85,253 94.0
------- ------ ------ ----- ------ ------ ------ ------ ----
Total investment securities 4,912,245 4,093,816 818,429 20.0 3,909,971 3,535,313 2,976,066 1,936,179 65.1
Mortgage loans held for sale 141,218 140,959 259 0.2 122,333 157,041 210,866 (69,648) (33.0)
Loans, net of unearned income 19,795,085 15,556,016 4,239,069 27.3 15,132,202 15,064,971 14,924,499 4,870,586 32.6
Allowance for loan losses (136,628) (146,225) 9,597 (6.6) (144,890) (144,719) (148,193) 11,565 (7.8)
-------- -------- ----- ---- -------- -------- -------- ------ ----
Loans, net 19,658,457 15,409,791 4,248,666 27.6 14,987,312 14,920,252 14,776,306 4,882,151 33.0
Loss share receivable 9,780 - 9,780 100.0 - - 24,406 (14,626) (59.9)
Premises and equipment 330,800 318,167 12,633 4.0 303,978 306,373 308,932 21,868 7.1
Goodwill and other intangibles 1,281,479 757,025 524,454 69.3 758,340 759,823 761,206 520,273 68.3
Other assets 761,440 601,609 159,831 26.6 625,427 618,262 629,531 131,909 21.0
Total assets $27,976,635 $21,790,727 6,185,908 28.4 $22,008,479 $21,659,190 $20,788,566 7,188,069 34.6
=========== =========== ========= ==== =========== =========== =========== ========= ====
LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest-bearing deposits $5,963,943 $5,020,195 943,748 18.8 $5,031,583 $4,928,878 $4,787,485 1,176,458 24.6
NOW accounts 3,547,761 3,089,482 458,279 14.8 3,085,720 3,314,281 2,904,835 642,926 22.1
Savings and money market
accounts 9,165,417 6,815,513 2,349,904 34.5 7,185,864 7,033,917 6,646,694 2,518,723 37.9
Certificates of deposit 2,657,150 1,927,926 729,224 37.8 2,009,098 2,131,207 2,183,503 473,647 21.7
--------- --------- ------- ---- --------- --------- --------- ------- ----
Total deposits 21,334,271 16,853,116 4,481,155 26.6 17,312,265 17,408,283 16,522,517 4,811,754 29.1
Short-term borrowings 975,008 250,000 725,008 290.0 80,000 175,000 360,000 615,008 170.8
Securities sold under
agreements to repurchase 548,696 333,935 214,761 64.3 368,696 334,136 353,272 195,424 55.3
Trust preferred securities 120,110 120,110 - - 120,110 120,110 120,110 - -
Other long-term debt 1,007,474 547,133 460,341 84.1 507,975 508,843 552,328 455,146 82.4
Other liabilities 264,302 183,191 81,111 44.3 161,458 173,124 213,229 51,073 24.0
------- ------- ------ ---- ------- ------- ------- ------ ----
Total liabilities 24,249,861 18,287,485 5,962,376 32.6 18,550,504 18,719,496 18,121,456 6,128,405 33.8
Total shareholders' equity 3,726,774 3,503,242 223,532 6.4 3,457,975 2,939,694 2,667,110 1,059,664 39.7
Total liabilities and
shareholders' equity $27,976,635 $21,790,727 6,185,908 28.4 $22,008,479 $21,659,190 $20,788,566 7,188,069 34.6
=========== =========== ========= ==== =========== =========== =========== ========= ====
TABLE 4 Continued - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
AVERAGE BALANCES Linked Qtr Change Year/Year Change
----------------- ----------------
ASSETS 9/30/2017 6/30/2017 $ % 3/31/2017 12/31/2016 9/30/2016 $ %
--------- --------- --- --- --------- ---------- --------- --- ---
Cash and due from banks $277,968 $277,047 921 0.3 $302,585 $310,132 $299,445 (21,477) (7.2)
Interest-bearing deposits in
other banks 615,445 555,431 60,014 10.8 1,023,688 930,524 536,741 78,704 14.7
------- ------- ------ ---- --------- ------- ------- ------ ----
Total cash and cash equivalents 893,413 832,478 60,935 7.3 1,326,273 1,240,656 836,186 57,227 6.8
Investment securities available
for sale 4,593,798 3,970,021 623,777 15.7 3,679,817 3,192,040 2,825,030 1,768,768 62.6
Investment securities held to
maturity 114,895 85,516 29,379 34.4 87,246 90,161 92,006 22,889 24.9
------- ------ ------ ---- ------ ------ ------ ------ ----
Total investment securities 4,708,693 4,055,537 653,156 16.1 3,767,063 3,282,201 2,917,036 1,791,657 61.4
Mortgage loans held for sale 132,309 145,274 (12,965) (8.9) 175,512 226,565 219,369 (87,060) (39.7)
Loans, net of unearned income 18,341,138 15,284,007 3,057,131 20.0 15,045,755 14,912,350 14,802,199 3,538,939 23.9
Allowance for loan losses (147,046) (146,448) (598) 0.4 (145,326) (150,499) (149,101) 2,055 (1.4)
-------- -------- ---- --- -------- -------- -------- ----- ----
Loans, net 18,194,092 15,137,559 3,056,533 20.2 14,900,429 14,761,851 14,653,098 3,540,994 24.2
Loss share receivable 21,040 - 21,040 100.0 - 20,456 27,694 (6,654) (24.0)
Premises and equipment 327,681 309,622 18,059 5.8 305,245 308,861 310,592 17,089 5.5
Goodwill and other intangibles 1,048,804 757,528 291,276 38.5 758,887 760,003 762,196 286,608 37.6
Other assets 768,743 605,539 163,204 27.0 628,092 615,666 666,657 102,086 15.3
Total assets $26,094,775 $21,843,537 4,251,238 19.5 $21,861,501 $21,216,259 $20,392,828 5,701,947 28.0
=========== =========== ========= ==== =========== =========== =========== ========= ====
LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest-bearing deposits $5,601,071 $4,992,598 608,473 12.2 $4,976,945 $4,869,095 $4,605,447 995,624 21.6
NOW accounts 3,201,511 3,124,243 77,268 2.5 3,239,085 2,981,967 2,936,130 265,381 9.0
Savings and money market
accounts 8,566,873 7,079,773 1,487,100 21.0 7,211,545 6,869,614 6,359,006 2,207,867 34.7
Certificates of deposit 2,413,727 1,964,234 449,493 22.9 2,083,749 2,172,967 2,176,159 237,568 10.9
--------- --------- ------- ---- --------- --------- --------- ------- ----
Total deposits 19,783,182 17,160,848 2,622,334 15.3 17,511,324 16,893,643 16,076,742 3,706,440 23.1
Short-term borrowings 1,180,165 38,320 1,141,845 2,979.8 99,000 260,730 430,332 749,833 174.2
Securities sold under
agreements to repurchase 439,077 314,090 124,987 39.8 311,726 342,953 302,119 136,958 45.3
Trust preferred securities 120,110 120,110 - - 120,110 120,110 120,110 - -
Other long-term debt 622,655 508,522 114,133 22.4 498,384 544,353 562,598 60,057 10.7
Other liabilities 273,163 200,673 72,490 36.1 221,993 300,768 239,911 33,252 13.9
------- ------- ------ ---- ------- ------- ------- ------ ----
Total liabilities 22,418,352 18,342,563 4,075,789 22.2 18,762,537 18,462,557 17,731,812 4,686,540 26.4
Total shareholders' equity 3,676,423 3,500,974 175,449 5.0 3,098,964 2,753,702 2,661,016 1,015,407 38.2
Total liabilities and
shareholders' equity $26,094,775 $21,843,537 4,251,238 19.5 $21,861,501 $21,216,259 $20,392,828 5,701,947 28.0
=========== =========== ========= ==== =========== =========== =========== ========= ====
Table 5 - IBERIABANK CORPORATION
TOTAL LOANS AND ASSET QUALITY DATA
(Dollars in thousands)
Linked Qtr Change Year/Year Change
----------------- ----------------
LOANS 9/30/2017 6/30/2017 $ % 3/31/2017 12/31/2016 9/30/2016 $ %
--------- --------- --- --- --------- ---------- --------- --- ---
Commercial loans:
Real estate- owner occupied (1) $2,417,407 $2,205,408 211,999 9.6 $2,187,406 $2,234,636 $2,163,541 253,866 11.7
Real estate- non-owner occupied 6,312,218 4,936,195 1,376,023 27.9 4,790,468 4,567,630 4,517,674 1,794,544 39.7
Commercial and industrial 4,443,085 3,684,081 759,004 20.6 3,455,578 3,543,122 3,462,997 980,088 28.3
Energy (real estate and commercial and
industrial) (2) 611,613 551,968 59,645 10.8 563,623 561,193 599,641 11,972 2.0
------- ------- ------ ---- ------- ------- ------- ------ ---
Total commercial loans 13,784,323 11,377,652 2,406,671 21.2 10,997,075 10,906,581 10,743,853 3,040,470 28.3
Residential mortgage loans 3,024,970 1,346,467 1,678,503 124.7 1,296,358 1,267,400 1,270,530 1,754,440 138.1
Consumer loans:
Home equity 2,320,233 2,158,948 161,285 7.5 2,146,796 2,155,926 2,151,130 169,103 7.9
Indirect automobile 76,189 92,130 (15,941) (17.3) 110,200 131,052 153,913 (77,724) (50.5)
Automobile 130,847 135,012 (4,165) (3.1) 142,139 147,662 152,972 (22,125) (14.5)
Credit card 88,454 87,088 1,366 1.6 84,113 82,992 80,959 7,495 9.3
Other 370,069 358,719 11,350 3.2 355,521 373,358 371,142 (1,073) (0.3)
Total consumer loans 2,985,792 2,831,897 153,895 5.4 2,838,769 2,890,990 2,910,116 75,676 2.6
Total loans $19,795,085 $15,556,016 4,239,069 27.3 $15,132,202 $15,064,971 $14,924,499 4,870,586 32.6
=========== =========== ========= ==== =========== =========== =========== ========= ====
Allowance for loan losses (3) $(136,628) $(146,225) 9,597 (6.6) $(144,890) $(144,719) $(148,193) 11,565 (7.8)
Loans, net 19,658,457 15,409,791 4,248,666 27.6 14,987,312 14,920,252 14,776,306 4,882,151 33.0
Reserve for unfunded commitments (21,032) (10,462) (10,570) 101.0 (11,660) (11,241) (11,990) (9,042) 75.4
Allowance for credit losses (157,660) (156,687) (973) 0.6 (156,550) (155,960) (160,183) 2,523 (1.6)
ASSET QUALITY DATA
Non-accrual loans (4) $145,422 $177,956 (32,534) (18.3) $191,582 $228,501 $235,521 (90,099) (38.3)
Other real estate owned and foreclosed assets 28,338 19,718 8,620 43.7 20,055 21,199 22,085 6,253 28.3
Accruing loans more than 90 days past due (4) 2,193 802 1,391 173.4 7,980 1,386 5,233 (3,040) (58.1)
Total non-performing assets $175,953 $198,476 (22,523) (11.3) $219,617 $251,086 $262,839 (86,886) (33.1)
======== ======== ======= ===== ======== ======== ======== ======= =====
Loans 30-89 days past due (4) $58,773 $50,840 7,933 15.6 $36,172 $28,869 $45,125 13,648 30.2
Non-performing assets to total assets 0.63% 0.91% 1.00% 1.16% 1.26%
Non-performing assets to total loans and OREO 0.89 1.27 1.45 1.66 1.76
Allowance for loan losses to non-performing
loans (5) 92.6 81.8 72.6 63.0 61.6
Allowance for loan losses to non-performing
assets 77.7 73.7 66.0 57.6 56.4
Allowance for loan losses to total loans 0.69 0.94 0.96 0.96 0.99
Quarter-to-date charge-offs $30,460 $12,189 18,271 149.9 $7,291 $9,785 $11,500 18,960 164.9
Quarter-to-date recoveries (1,644) (1,289) (355) 27.5 (1,235) (2,135) (1,277) (367) 28.7
Quarter-to-date net charge-offs $28,816 $10,900 17,916 164.4 $6,056 $7,650 $10,223 18,593 181.9
======= ======= ====== ===== ====== ====== ======= ====== =====
Net charge-offs to average loans (annualized) 0.62% 0.29% 0.16% 0.21% 0.28%
(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 9/30/2017 6/30/2017 $ % 3/31/2017 12/31/2016 9/30/2016 $ %
--------- --------- --- --- --------- ---------- --------- --- ---
Commercial loans:
Real estate- owner occupied (1) $1,807,670 $1,815,167 (7,497) (0.4) $1,769,153 $1,784,624 $1,683,557 124,113 7.4
Real estate- non-owner occupied 4,379,801 4,299,763 80,038 1.9 4,109,356 3,838,690 3,735,926 643,875 17.2
Commercial and industrial 3,497,374 3,390,699 106,675 3.1 3,140,205 3,194,796 3,101,472 395,902 12.8
Energy (real estate and commercial and
industrial) (2) 610,610 550,162 60,448 11.0 562,515 559,289 598,279 12,331 2.1
Total commercial loans 10,295,455 10,055,791 239,664 2.4 9,581,229 9,377,399 9,119,234 1,176,221 12.9
Residential mortgage loans 1,040,990 970,961 70,029 7.2 901,859 854,216 840,082 200,908 23.9
Consumer loans:
Home equity 1,885,226 1,838,841 46,385 2.5 1,797,123 1,783,421 1,755,295 129,931 7.4
Indirect automobile 76,165 92,106 (15,941) (17.3) 110,174 131,048 153,904 (77,739) (50.5)
Automobile 123,900 127,265 (3,365) (2.6) 133,852 138,638 143,355 (19,455) (13.6)
Credit card 87,954 86,587 1,367 1.6 83,612 82,524 80,452 7,502 9.3
Other 317,214 321,859 (4,645) (1.4) 315,595 327,678 321,048 (3,834) (1.2)
------- ------- ------ ---- ------- ------- ------- ------ ----
Total consumer loans 2,490,459 2,466,658 23,801 1.0 2,440,356 2,463,309 2,454,054 36,405 1.5
Total loans $13,826,904 $13,493,410 333,494 2.5 $12,923,444 $12,694,924 $12,413,370 1,413,534 11.4
=========== =========== ======= === =========== =========== =========== ========= ====
Allowance for loan losses $(99,346) $(107,610) 8,264 (7.7) $(105,813) $(105,569) $(108,889) 9,543 (8.8)
Loans, net 13,727,558 13,385,800 341,758 2.6 12,817,631 12,589,355 12,304,481 1,423,077 11.6
Reserve for unfunded commitments (21,032) (10,462) (10,570) 101.0 (11,660) (11,241) (11,990) (9,042) 75.4
Allowance for credit losses (120,378) (118,072) (2,306) 2.0 (117,473) (116,810) (120,879) 501 (0.4)
ASSET QUALITY DATA
Non-accrual loans $129,316 $163,748 (34,432) (21.0) $185,078 $221,543 $227,122 (97,806) (43.1)
Other real estate owned and foreclosed assets 7,058 7,106 (48) (0.7) 8,217 9,264 11,538 (4,480) (38.8)
Accruing loans more than 90 days past due 1,991 610 1,381 226.4 3,100 1,104 4,936 (2,945) (59.7)
Total non-performing assets $138,365 $171,464 (33,099) (19.3) $196,395 $231,911 $243,596 (105,231) (43.2)
======== ======== ======= ===== ======== ======== ======== ======== =====
Loans 30-89 days past due $36,131 $40,882 (4,751) (11.6) $32,286 $24,902 $41,157 (5,026) (12.2)
Non-performing assets to total assets 0.64% 0.87% 0.99% 1.20% 1.33%
Non-performing assets to total loans and OREO 1.00 1.27 1.52 1.83 1.96
Allowance for loan losses to non-performing
loans (3) 75.7 65.5 56.2 47.4 46.9
Allowance for loan losses to non-performing
assets 71.8 62.8 53.9 45.5 44.7
Allowance for loan losses to total loans 0.72 0.80 0.82 0.83 0.88
Quarter-to-date charge-offs $29,002 $10,896 18,106 166.2 $7,202 $9,496 $11,201 17,801 158.9
Quarter-to-date recoveries (1,218) (944) (274) 29.0 (880) (1,910) (1,102) (116) 10.5
------ ---- ---- ---- ---- ------ ------ ---- ----
Quarter-to-date net charge-offs $27,784 $9,952 17,832 179.2 $6,322 $7,586 $10,099 17,685 175.1
======= ====== ====== ===== ====== ====== ======= ====== =====
Net charge-offs to average loans (annualized) 0.81% 0.30% 0.20% 0.24% 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) 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 9/30/2017 6/30/2017 $ % 3/31/2017 12/31/2016 9/30/2016 $ %
--------- --------- --- --- --------- ---------- --------- --- ---
Commercial loans:
Real estate- owner occupied (1) $609,737 $390,241 219,496 56.2 $418,254 $450,012 $479,984 129,753 27.0
Real estate- non-owner occupied 1,932,417 636,432 1,295,985 203.6 681,111 728,940 781,748 1,150,669 147.2
Commercial and industrial 945,711 293,382 652,329 222.3 315,373 348,326 361,525 584,186 161.6
Energy (real estate and commercial and
industrial) (2) 1,003 1,806 (803) (44.5) 1,108 1,904 1,362 (359) (26.4)
----- ----- ---- ----- ----- ----- ----- ---- -----
Total commercial loans 3,488,868 1,321,861 2,167,007 163.9 1,415,846 1,529,182 1,624,619 1,864,249 114.7
Residential mortgage loans 1,983,980 375,506 1,608,474 428.3 394,499 413,184 430,448 1,553,532 360.9
Consumer loans:
Home equity 435,007 320,107 114,900 35.9 349,673 372,505 395,835 39,172 9.9
Indirect automobile 24 24 - - 26 4 9 15 166.7
Automobile 6,947 7,747 (800) (10.3) 8,287 9,024 9,617 (2,670) (27.8)
Credit card 500 501 (1) - 501 468 507 (7) (1.4)
Other 52,855 36,860 15,995 43.4 39,926 45,680 50,094 2,761 5.5
------ ------ ------ ---- ------ ------ ------ ----- ---
Total consumer loans 495,333 365,239 130,094 35.6 398,413 427,681 456,062 39,271 8.6
Total loans $5,968,181 $2,062,606 3,905,575 189.4 $2,208,758 $2,370,047 $2,511,129 3,457,052 137.7
========== ========== ========= ===== ========== ========== ========== ========= =====
Allowance for loan losses (3) $(37,282) $(38,615) 1,333 (3.5) $(39,077) $(39,150) $(39,304) 2,022 (5.1)
Loans, net 5,930,899 2,023,991 3,906,908 193.0 2,169,681 2,330,897 2,471,825 3,459,074 139.9
ACQUIRED ASSET QUALITY DATA (4)
Non-accrual loans $16,106 $14,208 1,898 13.4 $6,504 $6,958 $8,399 7,707 91.8
Other real estate owned and foreclosed assets 21,280 12,612 8,668 68.7 11,838 11,935 10,547 10,733 101.8
Accruing loans more than 90 days past due 202 192 10 5.2 4,880 282 297 (95) (32.0)
Total non-performing assets $37,588 $27,012 10,576 39.2 $23,222 $19,175 $19,243 18,345 95.3
======= ======= ====== ==== ======= ======= ======= ====== ====
Loans 30-89 days past due $22,642 $9,958 12,684 127.4 $3,886 $3,967 $3,968 18,674 470.6
Non-performing assets to total assets 0.58% 1.32% 1.06% 0.81% 0.76%
Non-performing assets to total loans and OREO 0.63 1.30 1.05 0.81 0.76
Allowance for loan losses to non-performing
loans 228.6 268.2 343.3 540.7 452.0
Allowance for loan losses to non-performing
assets 99.2 143.0 168.3 204.2 204.3
Allowance for loan losses to total loans 0.62 1.87 1.77 1.65 1.57
Quarter-to-date charge-offs $1,458 $1,293 165 12.8 $89 $289 $299 1,159 387.6
Quarter-to-date recoveries (426) (345) (81) 23.5 (355) (225) (175) (251) 143.4
Quarter-to-date net charge-offs/(recoveries) $1,032 $948 84 8.9 $(266) $64 $124 908 732.3
====== ==== === === ===== === ==== === =====
Net charge-offs/(recoveries) to average loans
(annualized) 0.09% 0.18% (0.05)% 0.01% 0.02%
(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)
Linked Qtr Change Year/Year Change
----------------- ----------------
ENERGY LOANS: (1) 9/30/2017 6/30/2017 $ % 3/31/2017 12/31/2016 9/30/2016 $ %
--------- --------- --- --- --------- ---------- --------- --- ---
E&P $330,608 $264,336 66,272 25.1 $265,696 $290,711 $301,223 29,385 9.8
Midstream 125,867 106,999 18,868 17.6 123,436 90,120 110,821 15,046 13.6
Service 155,138 180,633 (25,495) (14.1) 174,491 180,362 187,597 (32,459) (17.3)
Total energy loans $611,613 $551,968 59,645 10.8 $563,623 $561,193 $599,641 11,972 2.0
======== ======== ====== ==== ======== ======== ======== ====== ===
ENERGY-RELATED COMMITMENTS:
E&P $691,984 $571,964 120,020 21.0 $543,689 $545,061 $545,383 146,601 26.9
Midstream 264,401 213,273 51,128 24.0 238,186 182,998 198,618 65,783 33.1
Service 219,913 244,267 (24,354) (10.0) 243,991 241,740 261,450 (41,537) (15.9)
Total energy-related
commitments $1,176,298 $1,029,504 146,794 14.3 $1,025,866 $969,799 $1,005,451 170,847 17.0
========== ========== ======= ==== ========== ======== ========== ======= ====
Total loans net of unearned
income $19,795,085 $15,556,016 4,239,069 27.3 $15,132,202 $15,064,971 $14,924,499 4,870,586 32.6
Energy loan outstandings as
a % of total loans 3.1% 3.5% 3.7% 3.7% 4.0%
Energy-related commitments
as a % of total
commitments 4.6% 5.1% 5.2% 4.8% 5.1%
Allowance for loan losses $(13,260) $(23,046) 9,786 (42.5) $(20,144) $(22,524) $(28,215) 14,955 (53.0)
Reserve for unfunded
commitments (1,272) (147) (1,125) 765.3 (203) (1,003) (953) (319) 33.5
Allowance for credit losses (14,532) (23,193) 8,661 (37.3) (20,347) (23,527) (29,168) 14,636 (50.2)
ASSET QUALITY DATA
Non-accrual loans $62,429 $94,565 (32,136) (34.0) $113,212 $150,329 $153,620 (91,191) (59.4)
Other real estate owned and
foreclosed assets - - - - - - - - -
Accruing loans more than 90
days past due - - - - 2,175 - - - -
Total non-performing assets $62,429 $94,565 (32,136) (34.0) $115,387 $150,329 $153,620 (91,191) (59.4)
======= ======= ======= ===== ======== ======== ======== ======= =====
Loans 30-89 days past due $2,323 $2,392 (69) (2.9) $157 $1,526 $ - 2,323 100.0
Non-performing assets to
total energy loans and
OREO 10.21% 17.13% 20.47% 26.79% 25.62%
Allowance for loan losses
to non-performing loans
(2) 21.2 24.4 17.5 15.0 18.4
Allowance for loan losses
to non-performing assets 21.2 24.4 17.5 15.0 18.4
Allowance for loan losses
to total energy loans 2.17 4.18 3.57 4.01 4.71
Quarter-to-date charge-offs $16,956 $ - $2,845 $2,321 $6,957
Quarter-to-date recoveries - - - (840) -
Quarter-to-date net
charge-offs $16,956 $ - $2,845 $1,481 $6,957
======= ================= ====== ====== ======
Net charge-offs to average
loans (annualized) 11.56% 0.00% 2.05% 1.02% 4.39%
(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
--------------------------
9/30/2017 6/30/2017 Basis Point
Change
------
ASSETS Average Interest Yield/Rate Average Interest Yield/Rate Yield/Rate
Balance Income/Expense (TE) Balance Income/Expense (TE) (TE)
Earning assets:
Commercial loans $12,951,243 $146,003 4.52% $11,136,842 $127,301 4.64% (12)
Residential mortgage loans 2,464,348 28,645 4.65 1,319,207 14,345 4.35 30
Consumer loans 2,925,547 42,240 5.73 2,827,958 37,619 5.34 39
--------- ------ ---- --------- ------ ----
Total loans 18,341,138 216,888 4.73 15,284,007 179,265 4.74 (1)
Loss share receivable 21,040 - - - - - -
------ --- --- --- --- ---
Total loans and loss share receivable 18,362,178 216,888 4.72 15,284,007 179,265 4.74 (2)
Mortgage loans held for sale 132,309 1,209 3.66 145,274 1,249 3.44 22
Investment securities(2) 4,709,391 26,246 2.32 4,029,491 22,307 2.32 -
Other earning assets 768,181 2,629 1.36 650,083 1,754 1.08 28
------- ----- ---- ------- ----- ----
Total earning assets 23,972,059 246,972 4.14 20,108,855 204,575 4.13 1
Allowance for loan losses (147,046) (146,448)
Non-earning assets 2,269,762 1,881,130
Total assets $26,094,775 $21,843,537
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
NOW accounts $3,201,511 $4,384 0.54% $3,124,243 $3,507 0.45% 9
Savings and money market accounts 8,566,873 11,650 0.54 7,079,773 9,030 0.51 3
Certificates of deposit 2,413,727 5,766 0.95 1,964,234 4,576 0.93 2
--------- ----- ---- --------- ----- ----
Total interest-bearing deposits(3) 14,182,111 21,800 0.61 12,168,250 17,113 0.56 5
Short-term borrowings 1,619,242 4,152 1.02 352,410 226 0.26 76
Long-term debt 742,765 4,137 2.21 628,632 3,593 2.29 (8)
------- ----- ---- ------- ----- ----
Total interest-bearing liabilities 16,544,118 30,089 0.72 13,149,292 20,932 0.64 8
Non-interest-bearing deposits 5,601,071 4,992,598
Non-interest-bearing liabilities 273,163 200,673
------- -------
Total liabilities 22,418,352 18,342,563
Total shareholders' equity 3,676,423 3,500,974
--------- ---------
Total liabilities and shareholders' equity $26,094,775 $21,843,537
=========== ===========
Net interest income/Net interest spread $216,883 3.42% $183,643 3.49% (7)
Taxable equivalent benefit 2,585 0.04 2,492 0.05 (1)
Net interest income (TE)/Net interest margin (TE)(1) $219,468 3.64% $186,135 3.71% (7)
======== ========
(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,
2017 and June 30, 2017 were 0.44% and 0.40%, respectively.
TABLE 9 Continued - 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 9/30/2016
--------- ---------- ---------
ASSETS Average Interest Yield/Rate Average Interest Yield/Rate Average Interest Yield/Rate
Balance Income/Expense (TE) Balance Income/Expense (TE) Balance Income/Expense (TE)
Earning assets:
Commercial loans $10,917,714 $119,605 4.50% $10,759,264 $114,694 4.29% $10,646,874 $116,653 4.41%
Residential mortgage loans 1,273,069 12,848 4.04 1,267,413 14,038 4.43 1,254,665 13,718 4.37
Consumer loans 2,854,972 36,524 5.19 2,885,673 36,960 5.10 2,900,660 37,413 5.13
--------- ------ ---- --------- ------ ---- --------- ------ ----
Total loans 15,045,755 168,977 4.59 14,912,350 165,692 4.46 14,802,199 167,784 4.55
Loss share receivable - - - 20,456 (3,539) (68.83) 27,694 (3,935) (56.53)
--- --- --- ------ ------ ------ ------ ------ ------
Total loans and loss share receivable 15,045,755 168,977 4.59 14,932,806 162,153 4.36 14,829,893 163,849 4.44
Mortgage loans held for sale 175,512 971 2.21 226,565 1,539 2.72 219,369 1,774 3.24
Investment securities(2) 3,741,128 19,927 2.24 3,154,252 15,464 2.09 2,830,892 13,815 2.08
Other earning assets 1,123,087 2,658 0.96 1,034,980 1,649 0.63 641,080 1,066 0.66
--------- ----- ---- --------- ----- ---- ------- ----- ----
Total earning assets 20,085,482 192,533 3.93 19,348,603 180,805 3.77 18,521,234 180,504 3.93
Allowance for loan losses (145,326) (150,499) (149,101)
Non-earning assets 1,921,345 2,018,155 2,020,695
Total assets $21,861,501 $21,216,259 $20,392,828
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
NOW accounts $3,239,085 3,090 0.39% $2,981,967 2,483 0.33% $2,936,130 2,313 0.31%
Savings and money market accounts 7,211,545 8,329 0.47 6,869,614 7,732 0.45 6,359,006 5,826 0.36
Certificates of deposit 2,083,749 4,638 0.90 2,172,967 4,785 0.88 2,176,159 4,592 0.84
--------- ----- ---- --------- ----- ---- --------- ----- ----
Total interest-bearing deposits(3) 12,534,379 16,057 0.52 12,024,548 15,000 0.50 11,471,295 12,731 0.44
Short-term borrowings 410,726 277 0.27 603,683 552 0.36 732,451 753 0.41
Long-term debt 618,494 3,381 2.22 664,463 3,588 2.15 682,708 3,603 2.10
------- ----- ---- ------- ----- ---- ------- ----- ----
Total interest-bearing liabilities 13,563,599 19,715 0.59 13,292,694 19,140 0.57 12,886,454 17,087 0.53
Non-interest-bearing deposits 4,976,945 4,869,095 4,605,447
Non-interest-bearing liabilities 221,993 300,768 239,911
------- ------- -------
Total liabilities 18,762,537 18,462,557 17,731,812
Total shareholders' equity 3,098,964 2,753,702 2,661,016
--------- --------- ---------
Total liabilities and shareholders' equity $21,861,501 $21,216,259 $20,392,828
=========== =========== ===========
Net interest income/Net interest spread $172,818 3.34% $161,665 3.20% $163,417 3.40%
Taxable equivalent benefit 2,491 0.05 2,340 0.05 2,330 0.05
Net interest income (TE)/Net interest margin (TE)(1) $175,309 3.53% $164,005 3.38% $165,747 3.56%
======== ======== ========
(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,
December 31, 2016, and September 30, 2016 were 0.37%, 0.35% and
0.32%, respectively.
TABLE 10 - IBERIABANK CORPORATION
YEAR-TO-DATE AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES
(Dollars in thousands)
For the Nine Months Ended
-------------------------
9/30/2017 9/30/2016 Basis Point
Change
------
ASSETS Average Interest Yield/Rate Average Interest Yield/Rate Yield/Rate
Balance Income/Expense (TE)(1) Balance Income/Expense (TE)(1) (TE)(1)
------- -------------- ------ ------- -------------- ------ ------
Earning assets:
Commercial loans $11,676,048 $392,909 4.55% $10,452,794 $344,658 4.46% 9
Residential mortgage loans 1,689,905 55,838 4.41 1,226,307 40,928 4.45 (4)
Consumer loans 2,869,751 116,383 5.42 2,897,576 111,758 5.15 27
--------- ------- ---- --------- ------- ----
Total loans 16,235,704 565,130 4.69 14,576,677 497,344 4.60 9
Loss share receivable 7,090 - - 32,398 (12,484) (51.47) 5,147
----- --- --- ------ ------- ------
Total loans and loss share
receivable 16,242,794 565,130 4.69 14,609,075 484,860 4.47 22
Mortgage loans held for sale 150,873 3,429 3.03 197,317 5,025 3.40 (37)
Investment securities(2) 4,163,550 68,480 2.30 2,851,482 43,691 2.17 13
Other earning assets 845,817 7,041 1.11 526,557 2,558 0.65 46
------- ----- ---- ------- ----- ----
Total earning assets 21,403,034 644,080 4.07 18,184,431 536,134 3.99 8
Allowance for loan losses (146,280) (146,520)
Non-earning assets 2,025,356 1,982,804
--------- ---------
Total assets $23,282,110 $20,020,715
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
NOW accounts $3,188,142 $10,981 0.46% $2,902,649 $6,334 0.29% 17
Savings and money market
accounts 7,624,362 29,009 0.51 6,480,916 16,992 0.35 16
Certificates of deposit 2,155,112 14,980 0.93 2,130,800 13,255 0.83 10
--------- ------ ---- --------- ------ ----
Total interest-bearing
deposits(3) 12,967,616 54,970 0.57 11,514,365 36,581 0.42 15
Short-term borrowings 798,553 4,655 0.78 617,562 1,900 0.41 37
Long-term debt 663,752 11,111 2.24 600,141 10,080 2.24 -
------- ------ ---- ------- ------ ----
Total interest-bearing
liabilities 14,429,921 70,736 0.66 12,732,068 48,561 0.51 15
Non-interest-bearing deposits 5,192,491 4,486,314
Non-interest-bearing
liabilities 232,130 203,723
------- -------
Total liabilities 19,854,542 17,422,105
Total shareholders' equity 3,427,568 2,598,610
--------- ---------
Total liabilities and
shareholders' equity $23,282,110 $20,020,715
=========== ===========
Net interest income/Net interest spread $573,344 3.41% $487,573 3.47% (6)
Tax-equivalent benefit 7,506 0.05% 6,884 0.05% -
Net interest income (TE)/Net interest margin (TE)(1) $580,850 3.63% $494,457 3.63% -
======== ========
(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 nine months ended September 30,
2017 and 2016 were 0.40% and 0.30%, respectively.
Table 11 - IBERIABANK CORPORATION
LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS
(Dollars in millions)
For the Three Months Ended
--------------------------
09/30/2017 6/30/2017 3/31/2017 12/31/2016 09/30/2016
---------- --------- --------- ---------- ----------
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 $148 $13,638 4.29% $140 $13,150 4.27% $131 $12,760 4.12% $125 $12,481 3.97% $123 $12,183 4.00%
Acquired loans(1) 69 4,703 5.86 39 2,134 7.40 38 2,286 6.81 37 2,452 5.99 41 2,647 6.16
Total loans $217 $18,341 4.70% $179 $15,284 4.70% $169 $15,046 4.55% $162 $14,933 4.30% $164 $14,830 4.38%
==== ======= ==== ==== ======= ==== ==== ======= ==== ==== ======= ==== ==== ======= ====
09/30/2017 06/30/2017 3/31/2017 12/31/2016 9/30/2016
---------- ---------- --------- ---------- ---------
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) (20) 120 (1.76) (12) 72 (2.46) (11) 87 (2.08) (8) 73 (1.43) (9) 76 (1.49)
Total loans $(20) $120 (0.45%) $(12) $72 (0.34%) $(11) $87 (0.31%) $(8) $73 (0.23%) $(9) $76 (0.26%)
==== ==== ====== ==== === ====== ==== === ====== === === ====== === === ======
09/30/2017 06/30/2017 3/31/2017 12/31/2016 9/30/2016
---------- ---------- --------- ---------- ---------
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 $148 $13,638 4.29% $140 $13,150 4.27% $131 $12,760 4.12% $125 $12,481 3.97% $123 $12,183 4.00%
Acquired loans(1) 49 4,823 4.10 27 2,206 4.94 27 2,373 4.73 29 2,525 4.56 32 2,723 4.67
Total loans $197 $18,461 4.25% $167 $15,356 4.36% $158 $15,133 4.24% $154 $15,006 4.07% $155 $14,906 4.12%
==== ======= ==== ==== ======= ==== ==== ======= ==== ==== ======= ==== ==== ======= ====
(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
--------------------------
9/30/2017 6/30/2017 3/31/2017
--------- --------- ---------
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 $48,450 $29,644 $0.56 $80,051 $52,018 $1.01 $72,992 $50,473 $1.08
Less: Preferred stock
dividends - 3,598 0.07 - 949 0.02 - 3,599 0.08
--- ----- ---- --- --- ---- --- ----- ----
Income available to
common shareholders
(GAAP) $48,450 $26,046 $0.49 $80,051 $51,069 $0.99 $72,992 $46,874 $1.00
Non-interest income adjustments(3):
(Gain) loss on sale of
investments and other
non-interest income 242 157 - (59) (38) - - - -
Non-interest expense adjustments(3):
Merger-related expense 28,478 19,255 0.36 1,066 789 0.02 54 35 -
Compensation-related
expense 1,092 710 0.02 378 246 - 98 63 -
Impairment of long-
lived assets, net of
(gain) loss on sale 3,661 2,380 0.04 (1,306) (849) (0.02) 1,429 929 0.02
Litigation expense 5,692 4,696 0.09 6,000 5,481 0.11 - - -
Other non-core non-
interest expense 377 245 - - - - - - -
--- --- --- --- --- --- --- --- ---
Total non-interest
expense adjustments 39,300 27,286 0.51 6,138 5,667 0.11 1,581 1,027 0.02
------ ------ ---- ----- ----- ---- ----- ----- ----
Core earnings (Non-
GAAP) 87,992 53,489 1.00 86,130 56,698 1.10 74,573 47,901 1.02
Provision for loan
losses 18,514 12,034 12,050 7,833 6,154 4,000
------ ------ ------ ----- ----- -----
Pre-provision
earnings, as adjusted
(Non-GAAP)(3) $106,506 $65,523 $98,180 $64,531 $80,727 $51,901
======== ======= ======= ======= ======= =======
For the Three Months Ended
--------------------------
12/31/2016 9/30/2016
---------- ---------
Pre-tax After-tax (1) Per share (2) Pre-tax After-tax (1) Per share (2)
------- ------------ ------------ ------- ------------ ------------
Net income $58,164 $45,130 $1.06 $72,615 $48,068 $1.17
Less: Preferred stock
dividends - 957 0.02 - 3,590 0.09
--- --- ---- --- ----- ----
Income available to
common shareholders
(GAAP) $58,164 $44,173 $1.04 $72,615 $44,478 $1.08
Non-interest income adjustments(3):
(Gain) loss on sale of
investments and other
non-interest income (4) (3) - (12) (8) -
Non-interest expense adjustments(3):
Compensation-related
expense 188 122 - - - -
Impairment of long-
lived assets, net of
(gain) loss on sale (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 18,008 11,705 0.28 - - -
Income tax expense
(benefit) - (6,836) (0.16) - - -
--- ------ ----- --- --- ---
Core earnings (Non-
GAAP) 76,168 49,039 1.16 72,603 44,470 1.08
Provision for loan
losses 5,169 3,360 12,484 8,115
----- ----- ------ -----
Pre-provision
earnings, as adjusted
(Non-GAAP)(3) $81,337 $52,399 $85,087 $52,585
======= ======= ======= =======
(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 Nine Months Ended
-------------------------
9/30/2017 9/30/2016
--------- ---------
Pre-tax After-tax (1) Per share (2) Pre-tax After-tax (1) Per share (2)
------- ------------ ------------ ------- ------------ ------------
Net income $201,493 $132,135 $2.61 $213,806 $141,647 $3.43
Less: Preferred stock
dividends - 8,146 0.16 - 7,020 0.17
--- ----- ---- --- ----- ----
Income available to
common shareholders
(GAAP) $201,493 $123,989 $2.45 $213,806 $134,627 $3.26
Non-interest income adjustments(3):
(Gain) loss on sale of
investments and other
non-interest income 183 119 - (1,997) (1,298) (0.03)
Non-interest expense adjustments(3):
Merger-related expense 29,598 20,079 0.40 3 2 -
Compensation-related
expense 1,568 1,019 0.02 594 386 0.01
Impairment of long-
lived assets, net of
(gain) loss on sale 3,784 2,460 0.05 (212) (137) (0.01)
Litigation expense 11,692 10,177 0.20 - - -
Other non-core non-
interest expense 377 245 0.01 2,268 1,474 0.04
--- --- ---- ----- ----- ----
Total non-interest
expense adjustments 47,019 33,980 0.68 2,653 1,725 0.04
------ ------ ---- ----- ----- ----
Core earnings (Non-
GAAP) 248,695 158,088 3.13 214,462 135,054 3.27
Provision for loan
losses 36,718 23,867 39,255 25,516
------ ------ ------ ------
Pre-provision
earnings, as adjusted
(Non-GAAP)(3) $285,413 $181,955 $253,717 $160,570
======== ======== ======== ========
(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
--------------------------
9/30/2017 6/30/2017 3/31/2017 12/31/2016 9/30/2016
--------- --------- --------- ---------- ---------
Net interest income
(GAAP) $216,883 $183,643 $172,818 $161,665 $163,417
Taxable equivalent
benefit 2,585 2,492 2,491 2,340 2,330
----- ----- ----- ----- -----
Net interest income
(TE) (Non-GAAP) (1) 219,468 186,135 175,309 164,005 165,747
------- ------- ------- ------- -------
Non-interest income
(GAAP) 53,067 55,966 47,346 53,238 59,821
Taxable equivalent
benefit 680 668 706 713 703
--- --- --- --- ---
Non-interest income
(TE) (Non-GAAP) (1) 53,747 56,634 48,052 53,951 60,524
------ ------ ------ ------ ------
Taxable equivalent
revenues (Non-GAAP)
(1) 273,215 242,769 223,361 217,956 226,271
Securities (gains)
losses and other non-
interest income 242 (59) - (4) (12)
--- --- --- --- ---
Core taxable
equivalent revenues
(Non-GAAP) (1) $273,457 $242,710 $223,361 $217,952 $226,259
======== ======== ======== ======== ========
Total non-interest
expense (GAAP) $202,986 $147,508 $141,018 $151,570 $138,139
Less: Intangible
amortization expense 4,527 1,651 1,770 2,087 2,106
----- ----- ----- ----- -----
Tangible non-interest
expense (Non-GAAP)
(2) 198,459 145,857 139,248 149,483 136,033
------- ------- ------- ------- -------
Less: Merger-related
expense 28,478 1,066 54 - -
Compensation-related
expense 1,092 378 98 188 -
Impairment of long-
lived assets, net of
(gain) loss on sale 3,661 (1,306) 1,429 (462) -
Litigation expense 5,692 6,000 - - -
Loss on early
termination of loss
share agreements - - - 17,798 -
Other non-core non-
interest expense 377 - - 484 -
--- --- --- --- ---
Core tangible non-
interest expense
(Non-GAAP) (2) $159,159 $139,719 $137,667 $131,475 $136,033
======== ======== ======== ======== ========
Return on average
assets (GAAP) 0.45% 0.96% 0.94% 0.85% 0.94%
Effect of non-core
revenues and expenses 0.42 0.10 0.02 0.09 0.00
---- ---- ---- ---- ----
Core return on average
assets (Non-GAAP) 0.87% 1.06% 0.96% 0.94% 0.94%
==== ==== ==== ==== ====
Efficiency ratio
(GAAP) 75.2% 61.6% 64.1% 70.5% 61.9%
Effect of tax benefit
related to tax-
exempt income (0.9) (0.8) (1.0) (1.0) (0.9)
---- ---- ---- ---- ----
Efficiency ratio (TE)
(Non-GAAP) (1) 74.3% 60.8% 63.1% 69.5% 61.0%
Effect of amortization
of intangibles (1.7) (0.7) (0.8) (1.0) (0.9)
Effect of non-core
items (14.4) (2.5) (0.7) (8.2) 0.0
----- ---- ---- ---- ---
Core tangible
efficiency ratio (TE)
(Non-GAAP) (1) (2) 58.2% 57.6% 61.6% 60.3% 60.1%
==== ==== ==== ==== ====
Return on average
common equity (GAAP) 2.92% 6.08% 6.41% 6.70% 7.00%
Effect of intangibles
(2) 1.68 1.92 2.39 3.01 3.30
Effect of non-core
revenues and expenses 4.35 0.86 0.19 1.04 0.00
---- ---- ---- ---- ----
Core return on average
tangible common
equity (Non-GAAP)
(2) 8.95% 8.86% 8.99% 10.75% 10.30%
==== ==== ==== ===== =====
Total shareholders'
equity (GAAP) $3,726,774 $3,503,242 $3,457,975 $2,939,694 $2,667,110
Less: Goodwill and
other intangibles 1,276,241 752,336 753,991 755,765 757,856
Preferred stock 132,097 132,097 132,097 132,097 132,097
------- ------- ------- ------- -------
Tangible common equity
(Non-GAAP) (2) $2,318,436 $2,618,809 $2,571,887 $2,051,832 $1,777,157
========== ========== ========== ========== ==========
Total assets (GAAP) $27,976,635 $21,790,727 $22,008,479 $21,659,190 $20,788,566
Less: Goodwill and
other intangibles 1,276,241 752,336 753,991 755,765 757,856
--------- ------- ------- ------- -------
Tangible assets (Non-
GAAP) (2) $26,700,394 $21,038,391 $21,254,488 $20,903,425 $20,030,710
=========== =========== =========== =========== ===========
Tangible common equity
ratio (Non-GAAP) (2) 8.68% 12.45% 12.10% 9.82% 8.87%
==== ===== ===== ==== ====
(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
