IBERIABANK Corporation Reports Earnings per Share Increase of 71%

Oct 23, 2012, 17:50 ET from IBERIABANK Corporation

LAFAYETTE, La., Oct. 23, 2012 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 125-year-old IBERIABANK (www.iberiabank.com), reported operating results for the third quarter ended September 30, 2012.  For the quarter, the Company reported income available to common shareholders of $21 million and fully diluted earnings per share ("EPS") of $0.73, up 71% compared to the second quarter of 2012. During the third quarter of 2012, the Company incurred costs associated with a recent acquisition and related conversion, branch closures, severance, and process improvements totaling $5 million on a pre-tax basis, or $0.10 per share on an after-tax basis.  On an operating basis, EPS in the third quarter of 2012 was $0.83 per share (non-GAAP; refer to press release supplemental table), up $0.29 per share, or 55%, compared to the second quarter of 2012.

The Company completed the acquisition of Florida Gulf Bancorp, Inc. ("Florida Gulf") on July 31, 2012.  Florida Gulf was headquartered in Fort Myers, Florida, and added 10 bank offices in the Fort Myers and Cape Coral markets.  The acquisition added $57 million in investment securities, $216 million in loans (after preliminary discounts), and $286 million in deposits ($58 million in noninterest bearing deposits and $228 million in interest bearing deposits).  Financial statements reflect the impact of the acquisition beginning on that date and are subject to future refinements to purchase accounting adjustments.  The conversions of branch and operating systems were successfully completed over the weekend of August 18-19, 2012.  Acquisition and conversion related costs totaled $3 million on a pre-tax basis in the third quarter of 2012, or $0.07 per share on an after-tax basis.

Daryl G. Byrd, President and Chief Executive Officer, commented, "Our financial results for the third quarter demonstrate our significant progress in improving the long-term value of our franchise.  We experienced exceptional client growth in loans and deposits, a stable margin, and record results in our mortgage and title insurance businesses.  Our operating leverage improved significantly in the third quarter as revenues grew $8 million and expenses were fairly flat.  Our investments in new markets and lines of business are exhibiting great promise.  Our process improvement initiatives are proceeding on target, though by no means complete."

Byrd continued, "We welcome the clients, associates, and shareholders of Florida Gulf to our Company.  With this combination, we have an organization of enviable strength serving Lee County, Florida."

Highlights for the Third Quarter of 2012 and September 30, 2012:

  • Increased net interest income and stable net interest margin.  Tax equivalent net interest income improved $4 million and the net interest margin declined one basis point on a linked quarter basis to 3.58%.  Total revenues increased approximately $8 million, or 6%, while total expenses increased less than $1 million, or 1%.
  • Loan growth of $329 million, or 5%, between quarter-ends (20% annualized rate), excluding loans and other assets covered under FDIC loss share agreements ("Covered Assets") and loans acquired in the Florida Gulf transaction.  On that basis, loans increased $1.1 billion, or 19%, over the past year.
  • Core deposit growth (excluding time deposits and deposits assumed in the Florida Gulf acquisition) of $273 million, or 4% (15% annualized growth) during the quarter, and $980 million, or 15%, over the past year.
  • Noninterest bearing deposits climbed $200 million, or 12%, between June 30, 2012 and September 30, 2012, and $437 million, or 31%, over the past year.  Since year-end 2010, noninterest bearing deposits grew $973 million, or 111%, and increased from 11% of total deposits at December 31, 2010 to 19% at September 30, 2012.
  • The loan loss provision in the third quarter of 2012 totaled $4 million compared to $9 million in the second quarter of 2012.  Net charge-offs were approximately $1 million in the second quarter of 2012 and $2 million in the third quarter of 2012, equating to 0.07% and 0.10% of average loans, respectively.
  • Continued legacy asset quality strength; Nonperforming assets ("NPAs"), excluding Covered Assets and impaired loans acquired in acquisitions, equated to 0.81% of total assets at September 30, 2012, compared to 0.84% at June 30, 2012.  On that basis, loans past due 30 days or more remained stable at 1.30% of total loans at September 30, 2012. Classified assets excluding Covered Assets increased 34 basis points, to 2.28% of total assets at September 30, 2012.  The increase in classified assets was due primarily to loans acquired in the Florida Gulf transaction, which were marked to fair value at acquisition.
  • Capital ratios remained strong. At September 30, 2012, the Company's tangible common equity ratio was 9.01%, tier 1 common ratio was 12.04%, and total risk based capital ratio was 14.54%.

Table A - Summary of Earnings

For Quarter Ended:

%/Basis Point

9/30/2011

6/30/2012

9/30/2012

Change

Net Income ($ in thousands)

$ 16,347

$ 12,560

$ 21,234

69%

Per Share Data:

Fully Diluted Earnings

$ 0.54

$ 0.43

$ 0.73

71%

Operating Earnings (Non-GAAP)

0.70

0.54

0.83

55%

Pre-provision Operating Earnings (Non-GAAP)

0.83

0.73

0.92

26%

Tangible Book Value

36.41

37.28

37.07

-1%

Key Ratios:

Return on Average Assets

0.56%

0.43%

0.69%

26 bps

Return on Average Common Equity

4.31%

3.36%

5.56%

220 bps

Return on Average Tangible Common Equity (Non-GAAP)

6.22%

4.86%

7.91%

305 bps

Net Interest Margin (TE)*

3.58%

3.59%

3.58%

(1) bps

Tangible Efficiency Ratio (TE)* (Non-GAAP)

75.0%

78.2%

74.3%

(393) bps

Tangible Common Equity Ratio

9.64%

9.37%

9.01%

(36) bps

Tier 1 Leverage Ratio

10.42%

10.42%

10.01%

(41) bps

Tier 1 Common Ratio (Non-GAAP)

13.90%

12.97%

12.04%

(93) bps

Total Risk Based Capital Ratio

16.61%

15.54%

14.54%

(100) bps

Net Charge-Offs to Average Loans**

0.12%

0.07%

0.11%

4 bps

Nonperforming Assets to Total Assets**

0.89%

0.84%

0.81%

(3) bps

* Fully taxable equivalent basis.

** Excluding FDIC Covered Assets and acquired impaired loans.

Refer to press release supplemental table for a reconciliation of GAAP and non-GAAP measures.

Operating Results

On a linked quarter basis, the average earning asset yield declined six basis points, while the cost of interest bearing liabilities decreased seven basis points. As a result, the tax-equivalent net interest spread remained stable at 3.45% and the net interest margin declined one basis point.  On a linked quarter basis, the relatively stable net interest margin and an increase in average earning assets of $333 million, or 3%, resulted in an improvement in tax-equivalent net interest income of $4 million, or 4%.

Table B - Quarterly Average Yields/Cost (Taxable Equivalent Basis)

For Quarter Ended:

%/Basis Point

9/30/2011

6/30/2012

9/30/2012

Change

Investment Securities

2.72%

2.40%

2.22%

(18)

bps

Covered Loans, net of loss share receivable

4.93%

5.23%

5.42%

19

bps

Noncovered Loans

4.99%

4.68%

4.55%

(13)

bps

Loans & Loss Share Receivable

4.97%

4.80%

4.71%

(9)

bps

Mortgage Loans Held For Sale

4.19%

3.64%

3.21%

(43)

bps

Other Earning Assets

0.78%

0.84%

0.85%

1

bps

  Total Earning Assets

4.39%

4.20%

4.14%

(6)

bps

Interest Bearing Deposits

0.90%

0.65%

0.58%

(7)

bps

Short-Term Borrowings

0.28%

0.24%

0.21%

(3)

bps

Long-Term Borrowings

2.63%

3.07%

3.10%

3

bps

  Total Interest Bearing Liabilities

0.98%

0.76%

0.69%

(7)

bps

Net Interest Spread

3.41%

3.45%

3.45%

0

bps

Net Interest Margin

3.58%

3.59%

3.58%

(1)

bps

* Earning asset yields are shown on a fully taxable equivalent basis.

Movement in the net interest margin was muted during the third quarter as declines in investment securities and non-covered loan yields were partially offset by (1) an improvement in the yield on loans covered under FDIC loss share protection less the FDIC indemnification asset yield, (2) an increase in average noninterest bearing deposits of $133 million, or 8%, on a linked quarter basis, and (3) a decline in interest bearing deposit costs of seven basis points.  The increase in the yield on the covered loan portfolio benefitted the net interest margin for the third quarter by approximately three basis points.  For the fourth quarter of 2012, the Company projects the prospective yield on the covered loan portfolio net of the FDIC indemnification asset to approximate the level experienced in the third quarter of 2012 and projects the average balance of the net covered loan portfolio to decline approximately $50 million, based on current FDIC loss share accounting assumptions and estimates.

The Company recorded a $4 million loan loss provision in the third quarter of 2012, down $5 million, or 54%, on a linked quarter basis. The Company reported net charge-offs of $2 million in the third quarter of 2012, equal to 0.10% of average loans.  Excluding Covered Assets and acquired impaired loans, net charge-offs were 0.11% of average loans in the third quarter of 2012.

Aggregate noninterest income increased $5 million, or 12%, on a linked quarter basis.  The primary changes in noninterest income on a linked quarter basis were:

  • Increased gains on the sale of mortgage loans of $5.0 million, or 28%;
  • Increased title insurance revenues of $0.3 million, or 5%; and
  • Increased service charge revenues of $0.3 million, or 5%; partially offset by
  • Decreased gains on the sale of investment securities of $0.9 million, or 95%; and
  • Decreased FDIC reimbursement of $0.4 million.

In the third quarter of 2012, the Company originated $707 million in residential mortgage loans, up $116 million, or 20%, on a linked quarter basis.  Client loan refinancing opportunities accounted for approximately 45% of mortgage loan applications in the third quarter of 2012, compared to 34% in the second quarter of 2012 and approximately 54% between September 30, 2012, and October 15, 2012.  The Company sold $677 million in mortgage loans during the third quarter of 2012, up $138 million, or 26%, on a linked quarter basis.  Sales margins on the sale of mortgage loans improved slightly on a linked quarter basis.  The mortgage origination pipeline was approximately $297 million at September 30, 2012, compared to $300 million at June 30, 2012, and approximately $330 million at October 12, 2012.  Mortgage loan repurchases and make-whole payments were $0.2 million in the third quarter of 2012, compared to $0.3 million in the second quarter of 2012. 

Aggregate revenues in the third quarter of 2012 for the capital markets, wealth management, brokerage, and trust businesses were stable on a linked quarter basis.  Assets under wealth management were $902 million at September 30, 2012.

Noninterest expense increased $0.8 million, or 1%, on a linked quarter basis.  One-time acquisition and conversion costs associated with Florida Gulf in the third quarter of 2012 were $3.0 million, or $0.07 per share, up $2.5 million on a linked quarter basis.  The Company also incurred pre-tax costs in association with multiple internal projects to improve the long-term earnings, efficiency, risk posture, and growth prospects of the Company totaling $1.6 million, or $0.04 per share, down $3.9 million on a linked quarter basis.  The Company incurred approximately $0.9 million in operating expenses associated with the acquired Florida Gulf franchise during the final two-months of the third quarter of 2012.  Excluding acquisition and conversion costs and including operating costs associated with Florida Gulf, the primary changes in noninterest expense on a linked quarter basis were:

  • Increased mortgage commissions and incentives of $0.4 million, or 7%;
  • Increased other salary and benefit expense of $1.6 million, or 3% (primarily related to Florida Gulf and revenue producers in Houston); and
  • Increased occupancy and equipment expense of $0.6 million, or 5% (primarily related to the addition of Florida Gulf branches, lease termination cost, and Hurricane Isaac expenses); partially offset by
  • Decreased consulting and professional expenses of $1.1 million;
  • Decreased branch closure costs of $2.5 million; and 
  • Decreased severance expense of $0.3 million.

One-time acquisition and conversion costs are projected to be approximately $1 million in the fourth quarter of 2012.  The Company anticipates incurring an aggregate $1.3 million in additional pre-tax process improvement costs in the fourth quarter of 2012, the pre-tax financial benefits of which are projected to be approximately $5.9 million in the full year of 2013 and each year thereafter.  Excluding acquisition, conversion, and process improvement costs, the Company's tangible efficiency ratio was 71.2% in the third quarter of 2012, an improvement from 74.4% in the second quarter in 2012.

Loans

In the third quarter of 2012, total loans increased $493 million, or 6%, of which $216 million in loan growth was due to the Florida Gulf acquisition.  The loan portfolio associated with FDIC-assisted acquisitions decreased $51 million, or 4%, compared to June 30, 2012.  Excluding loans associated with Florida Gulf and FDIC-assisted transactions, total loans increased $329 million, or 5%, over that period (20% annualized rate).  Legacy commercial loans increased $251 million, or 5%, and legacy consumer loans increased $90 million, or 6%, during the quarter.  Loan growth during the third quarter of 2012 was strongest in the Houston, New Orleans, Memphis, Baton Rouge, Naples, and Birmingham markets.  Excluding Florida Gulf, loans and commitments originated during the third quarter of 2012 totaled $1 billion with an average coupon of 3.80% and an average term of 7.8 years, with 46% fixed rate and 54% floating rate.  At September 30, 2012, approximately 26% of non-covered loans by volume were floating rate loans tied to LIBOR.

Table C - Period-End Loans ($ in Millions)

Period-End Balances ($Millions)

Mix

9/30/2012

% Change (Excluding Acquired)

Total

9/30/11

6/30/12

Excluding Acquired

FGB

Total

Year/Year

Qtr/Qtr

Annualized

6/30/12

9/30/12

Commercial

$4,276

$4,841

$     5,092

$   145

$     5,237

19%

5%

21%

63%

64%

Consumer

1,232

1,470

1,560

28

1,588

27%

6%

24%

19%

19%

Mortgage

284

236

223

43

266

-22%

-6%

-22%

3%

3%

Non-FDIC Loans

$5,792

$6,547

$     6,875

$   216

$     7,091

19%

5%

20%

85%

86%

Covered Assets

1,378

1,190

1,139

-

1,139

-17%

-4%

-17%

15%

14%

Total Loans

$7,170

$7,737

$     8,014

$   216

$     8,230

12%

4%

14%

100%

100%

Deposits

Total deposits increased $497 million, or 5%, from June 30, 2012 to September 30, 2012, of which $286 million were deposits acquired from Florida Gulf during the third quarter of 2012; therefore, legacy deposit growth was $211 million, or 2% (9% annualized growth) over that period.  Noninterest bearing deposits increased $200 million, or 12% (of which $58 million were Florida Gulf deposits), and equated to 19% of total deposits at September 30, 2012.  Florida Gulf added $47 million in time deposits during the third quarter, and the legacy franchise reduced time deposits by $61 million, for a net decline of $15 million.  Organic core deposit growth (excluding time deposits and the impact of the Florida Gulf acquisition) was $273 million, or 4%.  Core deposit growth during the third quarter of 2012 was strongest in the New Orleans, Houston, Lafayette, Little Rock, and Baton Rouge markets.

Table D - Period-End Deposits ($ in Millions)

Period-End Balances ($Millions)

Mix

9/30/2012

% Change (Excluding Acquired)

Total

9/30/11

6/30/12

Excluding Acquired

FGB

Total

Year/Year

Qtr/Qtr

Annualized

6/30/12

9/30/12

Noninterest

$1,415

$1,651

$     1,794

$     58

$     1,852

27%

9%

35%

18%

19%

NOW Accounts

1,688

1,990

1,997

42

2,039

18%

0%

1%

21%

21%

Savings/MMkt

3,360

3,529

3,652

139

3,791

9%

3%

14%

37%

38%

Time Deposits

2,727

2,246

2,184

47

2,231

-20%

-3%

-11%

24%

22%

Total Deposits

$9,190

$9,416

$     9,627

$   286

$     9,913

5%

2%

9%

100%

100%

On an average balance and linked quarter basis, noninterest bearing deposits increased $133 million, or 8%, and interest-bearing deposits increased $110 million, or 1%.  The rate on average interest bearing deposits in the third quarter of 2012 was 0.58%, a decrease of seven basis points on a linked quarter basis.  Approximately $1.6 billion in CDs are scheduled to re-price over the next 12 months at a weighted average cost of 0.78%.  An additional $0.3 billion in time deposits are scheduled to re-price the following 12 months at a weighted average cost of 1.38%.  During the third quarter of 2012, new and re-priced CDs were booked at an average cost of 0.57%.

Other Assets And Funding

The investment portfolio equated to 16% of total assets at September 30, 2012, down compared to 17% at each of the prior two quarter-ends.  The investment portfolio had a modified duration of 2.7 years at September 30, 2012, unchanged compared to June 30, 2012.  The unrealized gain in the portfolio increased from $45 million at June 30, 2012, to $51 million at September 30, 2012.  The average yield on investment securities declined 18 basis points on a linked quarter basis, to 2.22% in the third quarter of 2012.  The Company holds in its investment portfolio primarily government agency and municipal securities.  Municipal securities comprised only 11% of total investments at September 30, 2012.  The Company holds no sovereign debt or derivative exposure to foreign counterparties.

Short-term borrowings decreased $115 million at September 30, 2012 compared to June 30, 2012.  Long-term debt (including trust preferred securities) increased $11 million, or 4%, between quarter-ends.  On a linked quarter basis, average long-term debt increased $14 million, or 3%, and the cost of debt increased three basis points to 3.10%.  The cost of average interest bearing liabilities was 0.69% in the third quarter of 2012, a decrease of seven basis points on a linked quarter basis. For the month of September 2012, the average cost of interest bearing liabilities was 0.67%.

Asset Quality

Excluding $613 million in NPAs which were Covered Assets or acquired impaired loans marked to fair value, NPAs at September 30, 2012 were $89 million, up $2 million, or 2%, compared to June 30, 2012.  On that basis, NPAs were 0.81% of total assets at September 30, 2012, compared to 0.84% of assets at June 30, 2012.  Similarly, loans past due 30 days or more (including nonaccruing loans) increased $6 million, or 8%, and represented 1.30% of total loans at September 30, 2012, unchanged compared to June 30, 2012.

Table E - Asset Quality Summary

Excludes the impact of all FDIC-assisted acquisitions and impaired loans

For Quarter Ended:

%/Basis Point Change

     ($ thousands)

9/30/2011

6/30/2012

9/30/2012

Year/Year

Qtr/Qtr

Nonperforming Assets

$   89,791

$   86,501

$   88,601

-1%

2%

Past Due Loans

97,660

84,653

91,164

-7%

8%

Classified Assets

196,537

200,872

247,923

26%

23%

Nonperforming Assets/Assets

0.89%

0.84%

0.81%

(8)

(3)

NPAs/(Loans + OREO)

1.57%

1.33%

1.26%

(31)

(7)

Classified Assets/Total Assets

2.09%

1.94%

2.28%

19

34

(Past Dues & Nonaccruals)/Loans

1.70%

1.30%

1.30%

(40)

(0)

Provision For Loan Losses

$    6,302

$    4,271

$    1,244

-80%

-71%

Net Charge-Offs/(Recoveries)

1,711

1,102

1,923

12%

74%

Provision Less Net Charge-Offs

$    4,592

$    3,169

$      (679)

-115%

-121%

Net Charge-Offs/Average Loans

0.12%

0.07%

0.11%

(1)

4

Reserve For Loan Losses/Loans

1.34%

1.19%

1.10%

(24)

(9)

Excluding Covered Assets and acquired impaired loans, troubled debt restructurings at September 30, 2012, totaled $22 million, or 0.31% of total loans (compared to 0.35% of loans at June 30, 2012).  Substantially all of the troubled debt restructurings were included in NPAs at September 30, 2012.

Capital Position

The Company maintains favorable capital strength.  At September 30, 2012, the Company reported a tangible common equity ratio of 9.01%, down 36 basis points compared to June 30, 2012.  At that date, the Company's preliminary Tier 1 leverage ratio was 10.01%, down 41 basis points compared to June 30, 2012.  The Company's preliminary total risk-based capital ratio at September 30, 2012 was 14.54%, down 100 basis points compared to June 30, 2012.  The decline in these capital ratios was the result of leveraging the balance sheet through the addition of acquired assets and organic loan growth, and the repurchase of common stock totaling approximately $38 million during the third quarter of 2012.

On October 26, 2011, the Company announced a share repurchase program totaling 900,000 shares of common stock to be completed over a one-year period. During the third quarter of 2012, the Company purchased 805,120 shares of IBERIABANK Corporation common stock at a weighted average cost of $47.35 per share.  A total of 46,692 shares remain under the currently authorized share repurchase program.

At September 30, 2012, book value per share was $51.44, up $0.76 per share compared to June 30, 2012. Tangible book value per share was $37.07, down $0.21 per share compared to June 30, 2012.  Based on the closing stock price of the Company's common stock of $45.16 per share on October 23, 2012, this price equated to 0.88 times September 30, 2012 book value and 1.22 times September 30, 2012 tangible book value per share.

On September 18, 2012, the Company declared a quarterly cash dividend of $0.34 per share. This dividend level equated to an annualized dividend rate of $1.36 per share and an indicated dividend yield of 3.01%.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with 277 combined offices, including 184 bank branch offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, and Florida, 22 title insurance offices in Arkansas and Louisiana, mortgage representatives in 62 locations in 12 states, eight locations with representatives of IBERIA Wealth Advisors in four states, and one IBERIA Capital Partners, LLC office in New Orleans.  Since June 30, 2012, the Company opened two bank branch offices in the Little Rock and Baton Rouge markets. 

The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC."  The Company's market capitalization was approximately $1.3 billion, based on the NASDAQ closing stock price on October 23, 2012.

The following 11 investment firms currently provide equity research coverage on IBERIABANK Corporation:

  • FIG Partners, LLC
  • Jefferies & Co., Inc.
  • Keefe, Bruyette & Woods
  • Oppenheimer & Co., Inc.
  • Raymond James & Associates, Inc.
  • Robert W. Baird & Company
  • Stephens, Inc.
  • Sterne, Agee & Leach
  • Stifel Nicolaus & Company
  • SunTrust Robinson-Humphrey
  • Wunderlich Securities

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 Wednesday, October 24, 2012, beginning at 9:00 a.m. Central Time by dialing 1-800-762-4758. The confirmation code for the call is 260099.  A replay of the call will be available until midnight Central Time on November 1, 2012 by dialing 1-800-475-6701. The confirmation code for the replay is 260099.  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 "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. 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 are infrequent in nature. Since the presentation of these GAAP performance measures and their impact differ between companies, 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 included as tables at the end of this release.  Refer to press release supplemental table for this reconciliation.

Forward Looking Statements

To the extent that statements in this press release and the accompanying PowerPoint presentation relate to future plans, objectives, financial results or performance of IBERIABANK Corporation, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which are based on management's current information, estimates and assumptions and the current economic environment, are generally identified by the use of the words "plan", "believe", "expect", "intend", "anticipate", "estimate", "project" or similar expressions. IBERIABANK Corporation's actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties.

Actual results could differ materially because of factors such as the current level of market volatility and our ability to execute our growth strategy, including the availability of future FDIC-assisted failed bank opportunities, unanticipated losses related to the integration of, and 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, credit risk of our customers, effects of the on-going correction in residential real estate prices and reduced levels of home sales, 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, reputational risk and social factors, changes in government regulations and legislation, increases in FDIC insurance assessments, geographic concentration of our markets and economic conditions in these markets, rapid changes in the financial services industry, dependence on our operational, technological, and organizational systems or infrastructure, hurricanes and other adverse weather events, the volatility and low trading volume of our common stock, and valuation of intangible assets.  These and other factors that may cause actual results to differ materially from these forward-looking statements are discussed in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission (the "SEC"), available at the SEC's website, http://www.sec.gov, and the Company's website, http://www.iberiabank.com, under the heading "Investor Information."  All information in this release and the accompanying PowerPoint presentation is as of the date of this release.  The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations. Certain tabular presentations may not reconcile because of rounding.

 

 

Table 1 - IBERIABANK CORPORATION

FINANCIAL HIGHLIGHTS

 For The Quarter Ended 

 For The Quarter Ended 

 September 30, 

 June 30, 

2012

2011

% Change

2012

% Change

Income Data (in thousands):

Net Interest Income

$                 96,726

$                 90,971

6%

$                 93,172

4%

Net Interest Income  (TE)   (1)

99,143

93,314

6%

95,593

4%

Net Income 

21,234

16,347

30%

12,560

69%

Earnings Available to Common Shareholders- Basic

21,234

16,347

30%

12,560

69%

Earnings Available to Common Shareholders- Diluted

20,828

16,057

30%

12,320

69%

Per Share Data:

Earnings Available to Common Shareholders - Basic

$                      0.73

$                      0.55

34%

$                      0.43

71%

Earnings Available to Common Shareholders - Diluted

0.73

0.54

34%

0.43

71%

Operating Earnings (Non-GAAP)

0.83

0.70

19%

0.54

55%

Book Value 

51.44

50.16

3%

50.68

1%

Tangible Book Value (2)

37.07

36.41

2%

37.28

(1%)

Cash Dividends

0.34

0.34

-

0.34

-

Closing Stock Price

45.80

47.06

(3%)

50.45

(9%)

Key Ratios: (3)

Operating Ratios:

Return on Average Assets

0.69%

0.56%

0.43%

Return on Average Common Equity

5.56%

4.31%

3.36%

Return on Average Tangible Common Equity (2)

7.91%

6.22%

4.86%

Net Interest Margin  (TE)  (1)

3.58%

3.58%

3.59%

Efficiency Ratio

76.7%

77.7%

80.8%

Tangible Efficiency Ratio  (TE)  (1) (2)

74.3%

75.0%

78.2%

Full-time Equivalent Employees

2,684

2,541

2,574

Capital Ratios:

Tangible Common Equity Ratio

9.01%

9.64%

9.37%

Tangible Common Equity to Risk-Weighted Assets

12.35%

14.21%

13.24%

Tier 1 Leverage Ratio

10.01%

10.42%

10.42%

Tier 1 Capital Ratio

13.27%

15.35%

14.27%

Total Risk Based Capital Ratio

14.54%

16.61%

15.54%

Common Stock Dividend Payout Ratio

47.2%

61.0%

79.9%

Asset Quality Ratios:

Excluding FDIC Covered Assets and acquired impaired loans

Nonperforming Assets to Total Assets (4)

0.81%

0.89%

0.84%

Allowance for Loan Losses to Loans

1.10%

1.34%

1.19%

Net Charge-offs to Average Loans 

0.11%

0.12%

0.07%

Nonperforming Assets to Total Loans and OREO (4)

1.26%

1.57%

1.33%

 For The Quarter Ended 

 For The Quarter Ended 

 September 30, 

 June 30, 

 March 31, 

 December 31, 

2012

2012

2012

2012

2011

Balance Sheet Summary (in thousands):

End of Period

Average

Average

Average

Average

Excess Liquidity (5)

$               416,693

$               238,203

$               294,171

$               326,810

$               328,869

Total Investment Securities

1,946,933

2,005,975

2,048,001

2,047,168

2,051,564

Loans, Net of Unearned Income

8,229,946

8,016,829

7,592,677

7,381,188

7,224,613

Loans, Net of Unearned Income, Excluding Covered Loans and SOP 03-3

7,021,411

6,810,490

6,400,351

6,053,548

5,850,558

Total Assets

12,534,119

12,182,554

11,817,101

11,688,081

11,585,185

Total Deposits

9,913,111

9,705,957

9,463,392

9,380,956

9,252,647

Total Shareholders' Equity

1,515,154

1,519,338

1,504,102

1,496,782

1,480,538

(1)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%.

(2)

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

(3)

All ratios are calculated on an annualized basis for the period indicated.

(4)

Nonperforming assets consist of nonaccruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets.

(5)

Excess Liquidity includes interest-bearing deposits in banks and fed funds sold.

 

 

Table 2 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

BALANCE SHEET (End of Period)

September 30,

June 30,

2012

2011

% Change

2012

% Change

ASSETS

Cash and Due From Banks

$            206,373

$            206,464

(0.0%)

$            195,719

5.4%

Interest-bearing Deposits in Banks

416,693

263,924

57.9%

404,327

3.1%

   Total Cash and Equivalents

623,066

470,388

32.5%

600,046

3.8%

Investment Securities Available for Sale

1,757,934

1,776,827

(1.1%)

1,812,746

(3.0%)

Investment Securities Held to Maturity

188,999

280,533

(32.6%)

188,399

0.3%

   Total Investment Securities

1,946,933

2,057,360

(5.4%)

2,001,145

(2.7%)

Mortgage Loans Held for Sale

211,132

131,726

60.3%

180,569

16.9%

Loans, Net of Unearned Income

8,229,946

7,169,642

14.8%

7,736,512

6.4%

Allowance for Loan Losses

(201,387)

(175,320)

14.9%

(187,285)

7.5%

   Loans, Net

8,028,559

6,994,322

14.8%

7,549,227

6.3%

Loss Share Receivable

431,167

601,862

(28.4%)

469,923

(8.2%)

Premises and Equipment

304,699

280,709

8.5%

291,718

4.4%

Goodwill and Other Intangibles

424,154

403,275

5.2%

395,919

7.1%

Other Assets

564,409

547,052

3.2%

632,571

(10.8%)

   Total Assets

$      12,534,119

$      11,486,694

9.1%

$      12,121,118

3.4%

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing Deposits

$         1,851,569

$         1,414,520

30.9%

$         1,651,154

12.1%

NOW Accounts

2,038,783

1,688,310

20.8%

1,989,876

2.5%

Savings and Money Market Accounts

3,791,616

3,359,711

12.9%

3,529,060

7.4%

Certificates of Deposit

2,231,143

2,727,488

(18.2%)

2,245,830

(0.7%)

   Total Deposits

9,913,111

9,190,029

7.9%

9,415,920

5.3%

Short-term Borrowings

290,000

-

100.0%

405,000

(28.4%)

Securities Sold Under Agreements to Repurchase

241,501

214,824

12.4%

235,768

2.4%

Trust Preferred Securities

111,862

111,862

0.0%

111,862

0.0%

Other Long-term Debt

317,442

350,120

(9.3%)

306,036

3.7%

Other Liabilities

145,049

148,569

(2.4%)

151,492

(4.3%)

   Total Liabilities

11,018,965

10,015,404

10.0%

10,626,078

3.7%

Total Shareholders' Equity

1,515,154

1,471,290

3.0%

1,495,040

1.3%

   Total Liabilities and Shareholders' Equity

$      12,534,119

$      11,486,694

9.1%

$      12,121,118

3.4%

BALANCE SHEET (Average)

September 30,

June 30,

March 31,

December 31,

September 30,

2012

2012

2012

2011

2011

ASSETS

Cash and Due From Banks

$            192,891

$            188,260

$            189,182

$            188,517

$            199,610

Interest-bearing Deposits in Banks

236,653

294,171

326,810

328,869

217,423

Investment Securities

2,005,975

2,048,001

2,047,168

2,051,564

2,152,993

Mortgage Loans Held for Sale

182,543

135,273

117,186

131,787

87,769

Loans, Net of Unearned Income

8,016,829

7,592,677

7,381,188

7,224,613

7,164,164

Allowance for Loan Losses

(180,798)

(173,023)

(185,952)

(167,433)

(172,030)

Loss Share Receivable

448,746

508,443

573,776

592,985

626,551

Other Assets

1,279,715

1,223,299

1,238,723

1,234,283

1,230,415

   Total Assets

$      12,182,554

$      11,817,101

$      11,688,081

$      11,585,185

$      11,506,895

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing Deposits

$         1,773,302

$         1,640,327

$         1,530,504

$         1,455,097

$         1,368,014

NOW Accounts

2,023,769

1,985,248

1,924,371

1,718,337

1,682,568

Savings and Money Market Accounts

3,701,947

3,524,641

3,481,073

3,413,278

3,350,035

Certificates of Deposit

2,206,939

2,313,176

2,445,008

2,665,935

2,769,153

   Total Deposits

9,705,957

9,463,392

9,380,956

9,252,647

9,169,770

Short-term Borrowings

121,957

27,857

4,220

4,337

-

Securities Sold Under Agreements to Repurchase

245,486

245,401

219,846

218,926

218,290

Trust Preferred Securities

113,905

111,862

111,862

111,862

111,862

Long-term Debt

324,923

313,451

324,468

343,687

352,610

Other Liabilities

150,988

151,036

149,947

173,188

149,008

   Total Liabilities

10,663,216

10,312,999

10,191,299

10,104,647

10,001,540

Total Shareholders' Equity

1,519,338

1,504,102

1,496,782

1,480,538

1,505,355

   Total Liabilities and Shareholders' Equity

$      12,182,554

$      11,817,101

$      11,688,081

$      11,585,185

$      11,506,895

 

 

 

Table 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

For The Three Months Ended

INCOME STATEMENT

September 30,

June 30,

2012

2011

% Change

2012

% Change

Interest Income

$     111,951

$     111,966

(0.0%)

$      109,283

2.4%

Interest Expense

15,225

20,995

(27.5%)

16,111

(5.5%)

   Net Interest Income

96,726

90,971

6.3%

93,172

3.8%

Provision for Loan Losses

4,053

6,127

(33.9%)

8,895

(54.4%)

   Net Interest Income After Provision for Loan Losses

92,673

84,844

9.2%

84,277

10.0%

Service Charges

6,952

7,448

(6.7%)

6,625

4.9%

ATM / Debit Card Fee Income

2,377

3,132

(24.1%)

2,166

9.7%

BOLI Proceeds and Cash Surrender Value Income

916

924

(0.9%)

905

1.2%

Gain on Sale of Loans, Net

23,085

13,438

71.8%

18,078

27.7%

Gain on Sale of Investments, Net

41

1,206

(96.6%)

901

(95.4%)

Title Revenue

5,623

4,900

14.8%

5,339

5.3%

Broker Commissions

3,092

2,501

23.6%

3,102

(0.3%)

Other Noninterest Income

4,467

3,571

25.1%

4,578

(2.4%)

   Total Noninterest Income

46,553

37,120

25.4%

41,694

11.7%

Salaries and Employee Benefits

59,938

52,679

13.8%

58,121

3.1%

Occupancy and Equipment

13,869

14,017

(1.1%)

12,908

7.5%

Amortization of Acquisition Intangibles

1,287

1,385

(7.1%)

1,289

(0.1%)

Other Noninterest Expense

34,754

31,485

10.4%

36,704

(5.3%)

   Total Noninterest Expense

109,848

99,566

10.3%

109,022

0.8%

   Income Before Income Taxes

29,378

22,398

31.2%

16,949

73.3%

Income Taxes

8,144

6,051

34.6%

4,389

85.5%

   Net Income

$        21,234

$       16,347

29.9%

$         12,560

69.1%

   Preferred Stock Dividends

-

-

-

-

-

   Earnings Available to Common Shareholders - Basic

21,234

16,347

29.9%

12,560

69.1%

   Earnings Allocated to Unvested Restricted Stock

(406)

(290)

39.9%

(240)

69.5%

   Earnings Available to Common Shareholders - Diluted

20,828

16,057

29.7%

12,320

69.1%

Earnings Per Share, Diluted

$            0.73

$            0.54

33.9%

$             0.43

71.4%

Impact of Non-Operating Expenses

$            0.10

$            0.16

(35.0%)

$             0.11

(8.4%)

Earnings Per Share, Diluted, Excluding Non-operating Expenses

$            0.83

$            0.70

18.9%

$             0.54

55.0%

NUMBER OF SHARES OUTSTANDING

Basic Shares  (Average)

29,066,000

29,908,906

(2.8%)

29,463,811

(1.4%)

Diluted Shares  (Average)

28,548,432

29,472,519

(3.1%)

28,950,806

(1.4%)

Book Value Shares  (Period End)  (1)

29,456,748

29,332,856

0.4%

29,497,008

(0.1%)

2012

2011

INCOME STATEMENT

Third

Second

First

Fourth

Third

Quarter

Quarter 

Quarter

Quarter

Quarter

Interest Income

$     111,951

$     109,283

$      109,187

$      111,799

$      111,966

Interest Expense

15,225

16,111

17,326

19,226

20,995

   Net Interest Income

96,726

93,172

91,861

92,573

90,971

Provision for Loan Losses

4,053

8,895

2,857

4,278

6,127

   Net Interest Income After Provision for Loan Losses

92,673

84,277

89,004

88,295

84,844

Total Noninterest Income

46,553

41,694

37,396

35,455

37,120

Total Noninterest Expense

109,848

109,022

99,873

99,726

99,566

   Income Before Income Taxes

29,378

16,949

26,527

24,024

22,398

Income Taxes

8,144

4,389

7,134

6,667

6,051

   Net Income

$        21,234

$       12,560

$        19,393

$         17,357

$         16,347

   Preferred Stock Dividends

-

-

-

-

-

   Earnings Available to Common Shareholders - Basic

21,234

12,560

19,393

17,357

16,347

   Earnings Allocated to Unvested Restricted Stock

(406)

(240)

(364)

(307)

(290)

   Earnings Available to Common Shareholders - Diluted

$        20,828

$       12,320

$        19,029

$         17,050

$         16,057

Earnings Per Share, Basic

$            0.73

$            0.43

$            0.66

$             0.59

$             0.55

Earnings Per Share, Diluted

$            0.73

$            0.43

$            0.66

$             0.59

$             0.54

Book Value Per Common Share

$          51.44

$         50.68

$          50.67

$           50.48

$           50.16

Tangible Book Value Per Common Share

$          37.07

$         37.28

$          37.23

$           36.80

$           36.41

Return on Average Assets

0.69%

0.43%

0.67%

0.59%

0.56%

Return on Average Common Equity

5.56%

3.36%

5.21%

4.65%

4.31%

Return on Average Tangible Common Equity

7.91%

4.86%

7.43%

6.72%

6.22%

(1) Shares used for book value purposes exclude shares held in treasury at the end of the period.  

 

 

 

Table 4 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

For The Nine Months Ended

INCOME STATEMENT

September 30,

2012

2011

% Change

Interest Income

$     330,422

$     308,527

7.1%

Interest Expense

48,662

62,842

(22.6%)

   Net Interest Income

281,760

245,685

14.7%

Provision for Loan Losses

15,805

21,589

(26.8%)

   Net Interest Income After Provision for Loan Losses

265,955

224,096

18.7%

Service Charges

19,557

19,303

1.3%

ATM / Debit Card Fee Income

6,566

9,011

(27.1%)

BOLI Proceeds and Cash Surrender Value Income

2,771

2,397

15.6%

Gain on Sale of Loans, net

54,782

31,719

72.7%

Gain on Sale of Investments, net

3,779

2,682

40.9%

Title Revenue

15,495

13,202

17.4%

Broker Commissions

9,254

7,767

19.2%

Other Noninterest Income

13,439

10,322

30.2%

   Total Noninterest Income

125,643

96,403

30.3%

Salaries and Employee Benefits

172,878

142,356

21.4%

Occupancy and Equipment

39,496

35,196

12.2%

Amortization of Acquisition Intangibles

3,865

3,737

3.4%

Other Noninterest Expense

102,505

92,715

10.6%

   Total Noninterest Expense

318,744

274,004

16.3%

   Income Before Income Taxes

72,854

46,495

56.7%

Income Taxes

19,667

10,314

90.7%

   Net Income

$        53,187

$       36,181

47.0%

   Preferred Stock Dividends

-

-

-

   Earnings Available to Common Shareholders - Basic

53,187

36,181

47.0%

   Earnings Allocated to Unvested Restricted Stock

(1,007)

(667)

50.9%

   Earnings Available to Common Shareholders - Diluted

52,180

35,514

46.9%

Earnings Per Share, diluted

$            1.81

$            1.27

42.3%

 

 

 

Table 5 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

LOANS RECEIVABLE

September 30,

June 30,

2012

2011

% Change

2012

% Change

Residential Mortgage Loans:

   Residential 1-4 Family

$        454,146

$        532,109

(14.7%)

$        444,785

2.1%

   Construction/ Owner Occupied

9,256

17,256

(46.4%)

9,482

(2.4%)

      Total Residential Mortgage Loans

463,402

549,365

(15.6%)

454,267

2.0%

Commercial Loans:

   Real Estate

3,549,837

3,345,319

6.1%

3,344,209

6.1%

   Business

2,449,125

1,846,440

32.6%

2,281,922

7.3%

      Total Commercial Loans

5,998,962

5,191,759

15.5%

5,626,131

6.6%

Consumer Loans:

   Indirect Automobile

319,389

260,002

22.8%

309,855

3.1%

   Home Equity

1,200,886

973,769

23.3%

1,125,313

6.7%

   Automobile

55,244

36,753

50.3%

49,411

11.8%

   Credit Card Loans

49,330

45,700

7.9%

46,519

6.0%

   Other 

142,734

112,055

27.4%

125,016

14.2%

      Total Consumer Loans

1,767,582

1,428,518

23.7%

1,656,114

6.7%

      Total Loans Receivable

8,229,946

7,169,642

14.8%

7,736,512

6.4%

Allowance for Loan Losses

(201,387)

(175,320)

(187,285)

   Loans Receivable, Net

$     8,028,559

$     6,994,322

$     7,549,227

ASSET QUALITY DATA (1)

September 30,

June 30,

2012

2011

% Change

2012

% Change

Nonaccrual Loans

$        567,153

$        805,247

(29.6%)

$        625,938

(9.4%)

Foreclosed Assets

1,648

32

5058.8%

455

262.4%

Other Real Estate Owned

127,525

117,611

8.4%

129,463

(1.5%)

Accruing Loans More Than 90 Days Past Due 

5,539

24,741

(77.6%)

8,270

(33.0%)

Total Nonperforming Assets

$        701,865

$        947,631

(25.9%)

$        764,126

(8.1%)

Loans 30-89 Days Past Due

59,063

74,604

(20.8%)

46,391

27.3%

Nonperforming Assets to Total Assets 

5.60%

8.25%

(32.1%)

6.30%

(11.2%)

Nonperforming Assets to Total Loans and OREO 

8.40%

13.00%

(35.4%)

9.71%

(13.6%)

Allowance for Loan Losses to Nonperforming Loans (2)</