IBERIABANK Corporation Reports Earnings per Share Increase of 8%

Jan 24, 2013, 18:20 ET from IBERIABANK Corporation

LAFAYETTE, La., Jan. 24, 2013 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 125-year-old IBERIABANK (www.iberiabank.com), reported operating results for the fourth quarter ended December 31, 2012.  For the quarter, the Company reported income available to common shareholders of $23 million and fully diluted earnings per share ("EPS") of $0.79, up 8% compared to the third quarter of 2012.  During the fourth quarter of 2012, the Company incurred total non-operating costs of $3 million on a pre-tax basis, or $0.06 per share on an after-tax basis, and non-operating income of $2 million on a pre-tax basis, or $0.05 per share on an after-tax basis.  On an operating basis, EPS in the fourth quarter of 2012 was $0.80 per share (non-GAAP; refer to press release supplemental table), down $0.03 per share, or 4%, compared to the third quarter of 2012.

Daryl G. Byrd, President and Chief Executive Officer, commented, "We finished 2012 with extraordinary client growth, a fairly stable margin, and favorable operating results in our new businesses and expanded operations.  During 2012, our loan growth excluding FDIC-assisted loans was $1.4 billion, or 22%, and our total deposit growth was $1.5 billion, or 16%.  Importantly, the mix of deposits improved considerably, and our asset quality, capital, and liquidity positions remain stout.  We are extremely pleased with the client development opportunities throughout our footprint and future growth prospects."

Highlights for the Fourth Quarter of 2012 and December 31, 2012:

  • Increased net interest income and slight decline in net interest margin during the quarter.  Tax equivalent net interest income improved $3 million, and the net interest margin declined three basis points on a linked quarter basis to 3.55%.  Total tax-equivalent revenues increased approximately $7 million, or 5%, while total noninterest expenses increased $4 million, or 3%, on a linked quarter basis.
  • Loan growth of $315 million, or 4%, between quarter-ends (18% annualized rate), excluding loans and other assets covered under FDIC loss share agreements ("Covered Assets").  On that basis and excluding loans that were acquired from Florida Gulf Bancorp, Inc. ("Florida Gulf") on July 31, 2012, loans increased $1.1 billion, or 19%, over the past year.
  • Total deposit growth of $835 million, or 8% (34% annualized growth), during the quarter, and $1.2 billion, or 13%, over the past year (each excluding the Florida Gulf acquisition).
  • Noninterest bearing deposits climbed $116 million, or 6%, between September 30, 2012 and December 31, 2012, and $425 million, or 29%, over the past year (excluding the Florida Gulf acquisition).  Since year-end 2010, noninterest bearing deposits grew $1.1 billion, or 124%, and increased from 11% of total deposits at December 31, 2010, to 18% at December 31, 2012.
  • The loan loss provision in the fourth quarter of 2012 totaled $5 million, compared to $4 million in the third quarter of 2012.  Net charge-offs declined to $89,000 in the fourth quarter of 2012, or an annualized 0.00% of average loans, compared to $2 million in the third quarter of 2012, or an annualized 0.10% of average loans.
  • Continued legacy asset quality strength: Nonperforming assets ("NPAs"), excluding Covered Assets and impaired loans acquired in acquisitions, equated to 0.85% of total assets at December 31, 2012, compared to 0.81% at September 30, 2012.  On that basis, loans past due 30 days or more declined three basis points to 1.27% of total loans at December 31, 2012.  Classified assets excluding Covered Assets decreased $16 million, or 7%, during the fourth quarter, and decreased from 2.28% of total assets at September 30, 2012, to 1.99% at December 31, 2012.
  • Capital ratios remained strong. At December 31, 2012, the Company's tangible common equity ratio was 8.66%, tier 1 common ratio was 11.74%, and total risk based capital ratio was 14.19%.

Table A - Summary Financial Results

For Quarter Ended:

%/Basis Point

12/31/2011

9/30/2012

12/31/2012

Change

Net Income ($ in thousands)

$      17,357

$       21,234

$      23,208

9%

Per Share Data:

Fully Diluted Earnings 

$          0.59

$            0.73

$          0.79

8%

Operating Earnings (Non-GAAP)

0.67

0.83

0.80

-4%

Pre-provision Operating Earnings  (Non-GAAP)

0.77

0.92

0.91

-2%

Tangible Book Value 

36.80

37.07

37.34

1%

Key Ratios:

Return on Average Assets

0.59%

0.69%

0.73%

4

bps

Return on Average Common Equity

4.65%

5.56%

6.02%

46

bps

Return on Average Tangible Common Equity (Non-GAAP)

6.72%

7.91%

8.62%

71

bps

Net Interest Margin (TE)*

3.62%

3.58%

3.55%

(3)

bps

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

75.2%

74.3%

73.2%

(110)

bps

Tangible Common Equity Ratio (Non-GAAP)

9.52%

9.01%

8.66%

(35)

bps

Tier 1 Leverage Ratio

10.45%

10.01%

9.70%

(31)

bps

Tier 1 Common Ratio (Non-GAAP)

13.55%

12.04%

11.74%

(30)

bps

Total Risk Based Capital Ratio

16.21%

14.54%

14.19%

(35)

bps

Net Charge-Offs to Average Loans**

0.31%

0.11%

0.01%

(10)

bps

Nonperforming Assets to Total Assets**

0.86%

0.81%

0.85%

4

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, average earning assets increased $480 million, or 4%.  The average earning asset yield declined eight basis points, while the cost of interest bearing liabilities decreased four basis points. As a result, the tax-equivalent net interest spread and the net interest margin declined four and three basis points, respectively.  Tax-equivalent net interest income increased $3 million, or 3%, as the benefit of strong growth in average earning assets more than offset the slightly lower net interest spread in the fourth quarter of 2012.

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

For Quarter Ended:

%/Basis Point

12/31/2011

9/30/2012

12/31/2012

Change

Investment Securities

2.57%

2.22%

2.09%

(13)

bps

Covered Loans, net of loss share receivable

5.33%

5.42%

5.55%

13

bps

Noncovered Loans

4.91%

4.55%

4.52%

(3)

bps

Loans & Loss Share Receivable

5.02%

4.71%

4.70%

(1)

bps

Mortgage Loans Held For Sale

3.21%

3.21%

2.96%

(25)

bps

Other Earning Assets

0.68%

0.85%

0.61%

(24)

bps

  Total Earning Assets

4.36%

4.14%

4.06%

(8)

bps

Interest Bearing Deposits

0.80%

0.58%

0.53%

(5)

bps

Short-Term Borrowings

0.27%

0.21%

0.21%

(0)

bps

Long-Term Borrowings

2.84%

3.10%

3.17%

7

bps

  Total Interest Bearing Liabilities

0.90%

0.69%

0.65%

(4)

bps

Net Interest Spread

3.46%

3.45%

3.41%

(4)

bps

Net Interest Margin

3.62%

3.58%

3.55%

(3)

bps

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

Movement in the net interest margin was tempered during the fourth quarter as the covered loan yield (net of loss share receivable) improved 13 basis points, offsetting the three basis point decline in the yield on non-covered loans.  In addition, the 13 basis point decline in average investment yield was partially offset by a five basis point decline in the cost of interest bearing deposits, and an increase in average noninterest bearing deposits of $155 million, or 9%, on a linked quarter basis.  For the first quarter of 2013, the Company projects the prospective yield on the covered loan portfolio net of the FDIC indemnification asset to approximate the level experienced in the fourth 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 $5 million loan loss provision in the fourth quarter of 2012, up less than $1 million, or 20%, on a linked quarter basis. The increase in provision was primarily attributable to loans covered under FDIC loss share agreements and acquired impaired loans, partially offset by lower required reserves on the legacy loan portfolio and acquired performing portfolio due to improved asset quality.  The Company reported net charge-offs of $89,000 in the fourth quarter of 2012, or 0.00% of average loans on an annualized basis.  Excluding Covered Assets and acquired impaired loans, net charge-offs were 0.01% of average loans in the fourth quarter of 2012.

Aggregate noninterest income increased $4 million, or 8%, on a linked quarter basis.  The primary changes in noninterest income on a linked quarter basis were increased IBERIA Capital Partners revenues of $1.2 million, higher service charge revenues of $0.3 million, or 5%, and a $2.2 million gain associated with the redemption of a business investment acquired in the acquisition of OMNI Bancshares, Inc.  Assets under management at IBERIA Wealth Advisors were $955 million at December 31, 2012.  Mortgage and title insurance income were relatively stable on a linked quarter basis.

In the fourth quarter of 2012, the Company originated $677 million in residential mortgage loans, down $30 million, or 4%, on a linked quarter basis.  Client loan refinancing opportunities accounted for approximately 47% of mortgage loan applications in the fourth quarter of 2012, compared to 45% in the third quarter of 2012 and approximately 40% between December 31, 2012, and January 11, 2013.  The Company sold $627 million in mortgage loans during the fourth quarter of 2012, down $50 million, or 7%, on a linked quarter basis.  Margins on the sale of mortgage loans edged slightly lower on a linked quarter basis.  The mortgage origination pipeline was approximately $241 million at December 31, 2012, compared to $297 million at September 30, 2012, and approximately $256 million at January 11, 2013.  Mortgage loan repurchases and make-whole payments were approximately $0.2 million in the fourth quarter of 2012, unchanged from the third quarter of 2012. 

Noninterest expense increased $3.6 million, or 3%, on a linked quarter basis.  One-time acquisition and conversion costs associated with the Florida Gulf transaction in the fourth quarter of 2012 were $1.2 million, or $0.03 per share, down $1.8 million on a linked quarter basis.  One-time acquisition and conversion costs are projected to be immaterial in the first quarter of 2013.  The Company also incurred pre-tax costs associated with multiple internal projects to improve long-term earnings, efficiency, risk posture, and growth prospects totaling $1.4 million, or $0.03 per share, in line with expectations.  Excluding acquisition and non-operating expenses, other changes in noninterest expense on a linked quarter basis were:

  • Increased salaries and benefits costs of $1.4 million, or 2% (due primarily to a $0.3 million increase in health care costs, $0.4 million associated with recently added revenue producers in Houston, and $0.2 million for the additional month impact of Florida Gulf personnel); 
  • Increased occupancy and equipment expense of $0.9 million, or 7% (due primarily to $0.4 million in seasonal property tax payments and $0.2 million for the additional month impact of Florida Gulf branches);
  • Increased donations, marketing, and business development expense of $2.3 million, or 111% ($1.2 million in costs associated with multiple loan and deposit campaigns and $0.7 million in business development contributions); and
  • Increased FDIC insurance premium of $0.4 million, or 17% (resulting from the Florida Gulf acquisition and organic balance sheet growth); partially offset by
  • Decreased mortgage commissions of $0.3 million, or 4%; and
  • Decreased credit and loan-related expense of $0.5 million, or 9%.

Loans

In the fourth quarter of 2012, total loans increased $269 million, or 3%.  The loan portfolio associated with FDIC-assisted acquisitions decreased $46 million, or 4%, compared to September 30, 2012.  Excluding loans associated with FDIC-assisted transactions, total loans increased $315 million, or 4%, over that period (18% annualized rate).  Legacy commercial loans increased $205 million, or 4%, legacy consumer loans increased $86 million, or 5%, and legacy mortgage loans increased $24 million, or 9%, during the quarter.  Loan growth during the fourth quarter of 2012 was strongest in the Houston, Memphis, Birmingham, and Naples markets.  Loans and commitments originated during the fourth quarter of 2012 totaled $1.2 billion, with 53% fixed rate and 47% floating rate.  Energy-related loans outstanding totaled $576 million at December 31, 2012, equal to approximately 7% of total loans.

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

Period-End Balances ($ Millions)

9/30/2012

% Change 

Mix

12/31/11

Excluding Acquired

FGB

Total

12/31/12

Year/Year

Qtr/Qtr

Annualized

9/30/12

12/31/12

Commercial

$     4,504

$     5,093

$   145

$     5,237

$     5,442

21%

4%

16%

64%

64%

Consumer

1,288

1,560

28

1,588

1,674

30%

5%

22%

19%

20%

Mortgage

262

222

43

266

290

10%

9%

36%

3%

3%

Non-FDIC Loans

$     6,054

$     6,875

$   216

$     7,091

$     7,406

22%

4%

18%

86%

87%

Covered Assets

1,334

1,139

-

1,139

1,093

-18%

-4%

-16%

14%

13%

Total Loans

$     7,388

$     8,014

$   216

$     8,230

$     8,499

15%

3%

13%

100%

100%

Deposits

Total deposits increased $835 million, or 8%, from September 30, 2012 to December 31, 2012 (34% annualized growth). Noninterest bearing deposits increased $116 million, or 6%, and equated to 18% of total deposits at December 31, 2012. NOW accounts increased $484 million, or 24%, and money market and savings account volume increased $312 million, or 8% at December 31, 2012. Deposit growth in the fourth quarter was driven by commercial and retail client growth, seasonal deposits, and low-cost wholesale deposits. By year-end 2012, the Company received an influx of approximately $140 million in seasonal client deposits (primarily NOW accounts), the duration of which is expected to be less than 90 days. The Company assumed $170 million in short-term wholesale deposits at December 31, 2012 ($73 million on average during the fourth quarter of 2012 at a cost of 0.23%). Deposit growth excluding the estimated seasonal and wholesale deposits was $525 million, or 5% (21% annualized rate). Deposit growth during the fourth quarter of 2012 was strongest in the New Orleans, Houston, Birmingham, Lafayette, and Little Rock markets.

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

Period-End Balances ($ Millions)

9/30/2012

% Change 

Mix

12/31/11

Excluding Acquired

FGB

Total

12/31/12

Year/Year

Qtr/Qtr

Annualized

9/30/12

12/31/12

Noninterest

$     1,485

$     1,794

$     58

$     1,852

$     1,968

32%

6%

25%

19%

18%

NOW Accounts

1,877

1,997

42

2,039

2,523

34%

24%

95%

21%

24%

Savings/MMkt

3,381

3,652

139

3,791

4,103

21%

8%

33%

38%

38%

Time Deposits

2,546

2,184

47

2,231

2,154

-15%

-3%

-14%

22%

20%

Total Deposits

$     9,289

$     9,627

$   286

$     9,913

$    10,748

16%

8%

34%

100%

100%

On an average balance and linked quarter basis, noninterest bearing deposits increased $155 million, or 9%, and interest-bearing deposits increased $455 million, or 6%.  The rate on average interest bearing deposits in the fourth quarter of 2012 was 0.53%, a decrease of five basis points on a linked quarter basis.  Approximately $1.5 billion in time deposits are scheduled to re-price over the next 12 months at a weighted average cost of 0.74%.  An additional $0.3 billion in time deposits are scheduled to re-price the following 12 months at a weighted average cost of 1.27%.  During the fourth quarter of 2012, new and re-priced time deposits were booked at an average cost of 0.54%. The Company experienced a time deposit retention rate of 90% in 2012 with an average 46 basis point reduction in rate.

Other Assets And Funding

The Company significantly improved its liquidity position in the fourth quarter of 2012.  Total cash and equivalents increased $348 million, or 56%, to $1.0 billion.  The investment portfolio equated to $1.9 billion, or 15% of total assets at December 31, 2012, down slightly compared to 16% at September 30, 2012.  The investment portfolio had a modified duration of 2.8 years at December 31, 2012, up slightly compared to 2.7 years at September 30, 2012.  The unrealized gain in the portfolio decreased from $51 million at September 30, 2012, to $44 million at December 31, 2012.  The average yield on investment securities declined 13 basis points on a linked quarter basis to 2.09% in the fourth 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 December 31, 2012.  The Company holds no sovereign debt or derivative exposure to foreign counterparties.

As a result of strong deposit growth, the Company paid off all overnight borrowings during the fourth quarter.  Long-term debt (including trust preferred securities) decreased $6 million, or 1%, between quarter-ends.  On a linked quarter basis, average long-term debt decreased $15 million, or 3%, and the cost of debt increased seven basis points to 3.17%.  The cost of average interest bearing liabilities was 0.65% in the fourth quarter of 2012, a decrease of four basis points on a linked quarter basis. For the month of December 2012, the average cost of interest bearing liabilities was 0.63%.

Asset Quality

Excluding $568 million in NPAs which were Covered Assets or acquired impaired loans marked to fair value, NPAs at December 31, 2012 were $99 million, up $10 million, or 11%, compared to September 30, 2012.  The increase in NPAs was primarily attributable to three loan relationships, of which the Company anticipates no material loss associated with the ultimate resolution of those loans.  NPAs equated to 0.85% of total assets at December 31, 2012, compared to 0.81% of assets at September 30, 2012.  Loans past due 30 days or more (including nonaccruing loans) increased $2 million, or 3%, and represented 1.27% of total loans at December 31, 2012, down compared to 1.30% at September 30, 2012.  Classified assets declined $16 million, or 7% during the fourth quarter of 2012.

Table E - Asset Quality Summary Excludes the impact of all FDIC-assisted acquisitions and impaired loans

For Quarter Ended:

% or Basis Point Change

     ($ thousands)

12/31/2011

9/30/2012

12/31/2012

Year/Year

Qtr/Qtr

Nonperforming Assets

$   83,884

$   88,454

$   98,510

17%

11%

Past Due Loans

83,338

91,016

93,358

12%

3%

Classified Assets

205,920

247,923

231,586

12%

-7%

Nonperforming Assets/Assets

0.86%

0.81%

0.85%

(1) bps

4 bps

NPAs/(Loans + OREO)

1.39%

1.26%

1.34%

(5) bps

8 bps

Classified Assets/Total Assets

2.10%

2.28%

1.99%

(11) bps

(29) bps

(Past Dues & Nonaccruals)/Loans

1.38%

1.30%

1.27%

(11) bps

(3) bps

Provision For Credit Losses

$    2,620

$    1,735

$       362

-86%

-79%

Net Charge-Offs/(Recoveries)

4,622

1,923

91

-98%

-95%

Provision Less Net Charge-Offs

$   (2,002)

$      (188)

$       271

-114%

-244%

Net Charge-Offs/Average Loans

0.31%

0.11%

0.01%

(30)

(10)

Reserve For Credit Losses/Loans

1.24%

1.13%

1.08%

(16)

(5)

Excluding Covered Assets and acquired impaired loans, troubled debt restructurings at December 31, 2012, totaled $18 million, or 0.24% of total loans (compared to 0.31% of loans at September 30, 2012).  All but $2 million of the troubled debt restructurings were included in NPAs at December 31, 2012.

Capital Position

The Company maintains favorable capital strength.  At December 31, 2012, the Company reported a tangible common equity ratio of 8.66%, down 35 basis points compared to September 30, 2012.  At that date, the Company's preliminary Tier 1 leverage ratio was 9.70%, down 31 basis points compared to September 30, 2012.  The Company's preliminary total risk-based capital ratio at December 31, 2012 was 14.19%, down 35 basis points compared to September 30, 2012.  The declines in these capital ratios were the result of strong organic balance sheet growth.

On October 26, 2011, the Company announced a share repurchase program totaling 900,000 shares of common stock. No shares were repurchased under this program during the fourth quarter of 2012.  A total of 46,692 shares remain under the currently authorized share repurchase program.

At December 31, 2012, book value per share was $51.88, up $0.44 per share compared to September 30, 2012. Tangible book value per share was $37.34, up $0.27 per share compared to September 30, 2012.  Based on the closing stock price of the Company's common stock of $51.75 per share on January 24, 2013, this price equated to 1.00 times December 31, 2012 book value and 1.39 times December 31, 2012 tangible book value per share.

On December 10, 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 2.63%.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with 278 combined offices, including 184 bank branch offices and one LPO in Louisiana, Arkansas, Tennessee, Alabama, Texas, and Florida, 21 title insurance offices in Arkansas and Louisiana, mortgage representatives in 62 locations in 12 states, nine locations with representatives of IBERIA Wealth Advisors in four states, and one IBERIA Capital Partners, LLC office in New Orleans.  Since September 30, 2012, the Company opened seven bank branch offices in the New Orleans, Birmingham, Houston, Baton Rouge, and Naples markets.

The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC."  The Company's market capitalization was approximately $1.5 billion, based on the NASDAQ closing stock price on January 24, 2013.

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 Friday, January 25, 2013, beginning at 9:00 a.m. Central Time by dialing 1-800-230-1059. The confirmation code for the call is 276812.  A replay of the call will be available until midnight Central Time on February 1, 2013 by dialing 1-800-475-6701. The confirmation code for the replay is 276812.  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 level of market volatility, 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 and those of third-party providers of those services, hurricanes and other adverse weather events, the modest 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 

 December 31, 

 September 30, 

2012

2011

% Change

2012

% Change

Income Data (in thousands):

Net Interest Income

$   99,990

$   92,573

8%

$   96,726

3%

Net Interest Income  (TE)   (1)

102,439

94,918

8%

99,143

3%

Net Income 

23,208

17,357

34%

21,234

9%

Earnings Available to Common Shareholders- Basic

23,208

17,357

34%

21,234

9%

Earnings Available to Common Shareholders- Diluted

22,780

17,050

34%

20,828

9%

Per Share Data:

Earnings Available to Common Shareholders - Basic

$      0.79

$     0.59

33%

$     0.73

8%

Earnings Available to Common Shareholders - Diluted

0.79

0.59

33%

0.73

8%

Operating Earnings (Non-GAAP)

0.80

0.67

19%

0.83

(4%)

Book Value 

51.88

50.48

3%

51.44

1%

Tangible Book Value (2)

37.34

36.80

1%

37.07

1%

Cash Dividends

0.34

0.34

-

0.34

-

Closing Stock Price

49.12

49.30

(0%)

45.80

7%

Key Ratios: (3)

Operating Ratios:

Return on Average Assets

0.73%

0.59%

0.69%

Return on Average Common Equity

6.02%

4.65%

5.56%

Return on Average Tangible Common Equity (2)

8.62%

6.72%

7.91%

Net Interest Margin  (TE)  (1)

3.55%

3.62%

3.58%

Efficiency Ratio

75.5%

77.9%

76.7%

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

73.2%

75.2%

74.3%

Full-time Equivalent Employees

2,697

2,582

2,684

Capital Ratios:

Tangible Common Equity Ratio (Non-GAAP)

8.66%

9.52%

9.01%

Tangible Common Equity to Risk-Weighted Assets

12.01%

13.86%

12.35%

Tier 1 Leverage Ratio

9.70%

10.45%

10.01%

Tier 1 Capital Ratio

12.92%

14.94%

13.27%

Total Risk Based Capital Ratio

14.19%

16.21%

14.54%

Common Stock Dividend Payout Ratio

43.2%

57.5%

47.2%

Asset Quality Ratios:

Excluding FDIC Covered Assets and acquired impaired loans

Nonperforming Assets to Total Assets (4)

0.85%

0.86%

0.81%

Allowance for Credit Losses to Loans

1.08%

1.24%

1.13%

Net Charge-offs to Average Loans 

0.01%

0.31%

0.11%

Nonperforming Assets to Total Loans and OREO (4)

1.34%

1.39%

1.26%

 For The Quarter Ended 

 For The Quarter Ended 

 December 31, 

 September 30, 

 June 30, 

 March 31, 

2012

2012

2012

2012

2012

Balance Sheet Summary (in thousands):

End of Period

Average

Average

Average

Average

Excess Liquidity (5)

$  722,763

$  432,752

$  238,203

$  294,171

$  326,810

Total Investment Securities

1,950,066

1,957,542

2,005,975

2,048,001

2,047,168

Loans, Net of Unearned Income

8,498,580

8,384,218

8,016,829

7,592,677

7,381,188

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

7,341,626

7,212,648

6,810,490

6,400,351

6,053,548

Total Assets

13,129,678

12,692,665

12,182,554

11,817,101

11,688,081

Total Deposits

10,748,277

10,315,944

9,705,957

9,463,392

9,380,956

Total Shareholders' Equity

1,529,868

1,533,561

1,519,338

1,504,102

1,496,782

(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, but excludes liquidity sources and uses from off-balance sheet arrangements.

Table 2 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

BALANCE SHEET (End of Period)

December 31,

September 30,

2012

2011

% Change

2012

% Change

ASSETS

Cash and Due From Banks

$            248,214

$            194,171

27.8%

$            206,373

20.3%

Interest-bearing Deposits in Banks

722,763

379,125

90.6%

416,693

73.5%

   Total Cash and Equivalents

970,977

573,296

69.4%

623,066

55.8%

Investment Securities Available for Sale

1,745,004

1,805,205

(3.3%)

1,757,934

(0.7%)

Investment Securities Held to Maturity

205,062

192,764

6.4%

188,999

8.5%

   Total Investment Securities

1,950,066

1,997,969

(2.4%)

1,946,933

0.2%

Mortgage Loans Held for Sale

267,475

153,013

74.8%

211,132

26.7%

Loans, Net of Unearned Income

8,498,580

7,388,037

15.0%

8,229,946

3.3%

Allowance for Credit Losses

(251,603)

(193,761)

29.9%

(201,387)

24.9%

   Loans, Net

8,246,977

7,194,276

14.6%

8,028,559

2.7%

Loss Share Receivable

423,069

591,844

(28.5%)

431,167

(1.9%)

Premises and Equipment

303,523

285,607

6.3%

304,699

(0.4%)

Goodwill and Other Intangibles

429,584

401,888

6.9%

424,154

1.3%

Other Assets

538,007

560,035

(3.9%)

564,409

(4.7%)

   Total Assets

$      13,129,678

$      11,757,928

11.7%

$      12,534,119

4.8%

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing Deposits

$         1,967,662

$         1,485,058

32.5%

$         1,851,569

6.3%

NOW Accounts

2,523,252

1,876,797

34.4%

2,038,783

23.8%

Savings and Money Market Accounts

4,103,183

3,381,502

21.3%

3,791,616

8.2%

Certificates of Deposit

2,154,180

2,545,656

(15.4%)

2,231,143

(3.4%)

   Total Deposits

10,748,277

9,289,013

15.7%

9,913,111

8.4%

Short-term Borrowings

-

192,000

(100.0%)

290,000

(100.0%)

Securities Sold Under Agreements to Repurchase

303,045

203,543

48.9%

241,501

25.5%

Trust Preferred Securities

111,862

111,862

0.0%

111,862

0.0%

Other Long-term Debt

311,515

340,871

(8.6%)

317,442

(1.9%)

Other Liabilities

125,111

137,978

(9.3%)

145,049

(13.7%)

   Total Liabilities

11,599,810

10,275,267

12.9%

11,018,965

5.3%

Total Shareholders' Equity

1,529,868

1,482,661

3.2%

1,515,154

1.0%

   Total Liabilities and Shareholders' Equity

$      13,129,678

$      11,757,928

11.7%

$      12,534,119

4.8%

BALANCE SHEET (Average)

December 31,

September 30,

June 30,

March 31,

December 31,

2012

2012

2012

2012

2011

ASSETS

Cash and Due From Banks

$            212,404

$            192,891

$            188,260

$            189,182

$            188,517

Interest-bearing Deposits in Banks

432,752

236,653

294,171

326,810

328,869

Investment Securities

1,957,542

2,005,975

2,048,001

2,047,168

2,051,564

Mortgage Loans Held for Sale

212,432

182,543

135,273

117,186

131,787

Loans, Net of Unearned Income

8,384,218

8,016,829

7,592,677

7,381,188

7,224,613

Allowance for Credit Losses

(196,634)

(180,798)

(173,023)

(185,952)

(167,433)

Loss Share Receivable

411,328

448,746

508,443

573,776

592,985

Other Assets

1,278,623

1,279,715

1,223,299

1,238,723

1,234,283

   Total Assets

$      12,692,665

$      12,182,554

$      11,817,101

$      11,688,081

$      11,585,185

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing Deposits

$         1,928,361

$         1,773,302

$         1,640,327

$         1,530,504

$         1,455,097

NOW Accounts

2,207,032

2,023,769

1,985,248

1,924,371

1,718,337

Savings and Money Market Accounts

3,935,675

3,701,947

3,524,641

3,481,073

3,413,278

Certificates of Deposit

2,244,876

2,206,939

2,313,176

2,445,008

2,665,935

   Total Deposits

10,315,944

9,705,957

9,463,392

9,380,956

9,252,647

Short-term Borrowings

9,239

121,957

27,857

4,220

4,337

Securities Sold Under Agreements to Repurchase

262,027

245,486

245,401

219,846

218,926

Trust Preferred Securities

111,862

113,905

111,862

111,862

111,862

Long-term Debt

312,190

324,923

313,451

324,468

343,687

Other Liabilities

147,842

150,988

151,036

149,947

173,188

   Total Liabilities

11,159,104

10,663,216

10,312,999

10,191,299

10,104,647

Total Shareholders' Equity

1,533,561

1,519,338

1,504,102

1,496,782

1,480,538

   Total Liabilities and Shareholders' Equity

$      12,692,665

$      12,182,554

$      11,817,101

$      11,688,081

$      11,585,185

Table 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

For The Three Months Ended

INCOME STATEMENT

December 31,

September 30,

2012

2011

% Change

2012

% Change

Interest Income

$     114,779

$     111,799

2.7%

$      111,951

2.5%

Interest Expense

14,789

19,226

(23.1%)

15,225

(2.9%)

   Net Interest Income

99,990

92,573

8.0%

96,726

3.4%

Provision for Credit Losses

4,866

4,278

13.7%

4,053

20.1%

   Net Interest Income After Provision for Loan Losses

95,124

88,295

7.7%

92,673

2.6%

Service Charges

7,295

6,613

10.3%

6,952

4.9%

ATM / Debit Card Fee Income

2,412

1,997

20.8%

2,377

1.5%

BOLI Proceeds and Cash Surrender Value Income

909

899

1.1%

916

(0.8%)

Mortgage Income

22,935

13,274

72.8%

23,215

(1.2%)

Gain (Loss) on Sale of Investments, Net

(4)

793

(100.5%)

41

(109.7%)

Title Revenue

5,492

4,846

13.3%

5,623

(2.3%)

Broker Commissions

4,192

2,457

70.6%

3,092

35.6%

Other Noninterest Income

7,123

4,576

55.7%

4,337

64.2%

   Total Noninterest Income

50,354

35,455

42.0%

46,553

8.2%

Salaries and Employee Benefits

60,899

51,416

18.4%

59,938

1.6%

Occupancy and Equipment

15,176

14,404

5.4%

13,869

9.4%

Amortization of Acquisition Intangibles

1,285

1,384

(7.1%)

1,287

(0.1%)

Other Noninterest Expense

36,081

32,522

10.9%

34,754

3.8%

   Total Noninterest Expense

113,441

99,726

13.8%

109,848

3.3%

   Income Before Income Taxes

32,037

24,024

33.4%

29,378

9.1%

Income Taxes

8,829

6,667

32.4%

8,144

8.4%

   Net Income

$        23,208

$       17,357

33.7%

$         21,234

9.3%

   Preferred Stock Dividends

-

-

-

-

-

   Earnings Available to Common Shareholders - Basic

23,208

17,357

33.7%

21,234

9.3%

   Earnings Allocated to Unvested Restricted Stock

(428)

(307)

39.5%

(406)

5.3%

   Earnings Available to Common Shareholders - Diluted

22,780

17,050

33.6%

20,828

9.4%

Earnings Per Share, Diluted

$            0.79

$            0.59

33.4%

$             0.73

8.0%

Impact of Non-Operating Expenses (Non-GAAP)

$            0.01

$            0.08

(88.4%)

$             0.10

(90.7%)

Earnings Per Share, Diluted, Excluding Non-operating Expenses (Non-GAAP)

$            0.80

$            0.67

18.7%

$             0.83

(4.2%)

NUMBER OF SHARES OUTSTANDING

Basic Shares - All Classes  (Average)

29,401,395

29,307,297

0.3%

29,066,000

1.2%

Diluted Shares - Common Shareholders (Average)

28,904,317

28,857,342

0.2%

28,548,432

1.2%

Book Value Shares  (Period End)  (1)

29,489,745

29,373,905

0.4%

29,456,748

0.1%

2012

2011

INCOME STATEMENT

Fourth

Third

Second

First

Fourth

Quarter

Quarter 

Quarter

Quarter

Quarter

Interest Income

$     114,779

$     111,951

$      109,283

$      109,187

$      111,799

Interest Expense

14,789

15,225

16,111

17,326

19,226

   Net Interest Income

99,990

96,726

93,172

91,861

92,573

Provision for Credit Losses

4,866

4,053

8,895

2,857

4,278

   Net Interest Income After Provision for Loan Losses

95,124

92,673

84,277

89,004

88,295

Total Noninterest Income

50,354

46,553

41,694

37,396

35,455

Total Noninterest Expense

113,441

109,848

109,022

99,873

99,726

   Income Before Income Taxes

32,037

29,378

16,949

26,527

24,024

Income Taxes

8,829

8,144

4,389

7,134

6,667

   Net Income

$        23,208

$       21,234

$        12,560

$         19,393

$         17,357

   Preferred Stock Dividends

-

-

-

-

-

   Earnings Available to Common Shareholders - Basic

23,208

21,234

12,560

19,393

17,357

   Earnings Allocated to Unvested Restricted Stock

(428)

(406)

(240)

(364)

(307)

   Earnings Available to Common Shareholders - Diluted

$        22,780

$       20,828

$        12,320

$         19,029

$         17,051

Earnings Per Share, Basic

$            0.79

$            0.73

$            0.43

$             0.66

$             0.59

Earnings Per Share, Diluted

$            0.79

$            0.73

$            0.43

$             0.66

$             0.59

Book Value Per Common Share

$          51.88

$         51.44

$          50.68

$           50.67

$           50.48

Tangible Book Value Per Common Share

$          37.34

$         37.07

$          37.28

$           37.23

$           36.80

Return on Average Assets

0.73%

0.69%

0.43%

0.67%

0.59%

Return on Average Common Equity

6.02%

5.56%

3.36%

5.21%

4.65%

Return on Average Tangible Common Equity

8.62%

7.91%

4.86%

7.43%

6.72%

(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 Year Ended

INCOME STATEMENT

December 31,

2012

2011

% Change

Interest Income

$     445,200

$     420,327

5.9%

Interest Expense

63,450

82,069

(22.7%)

   Net Interest Income

381,750

338,258

12.9%

Provision for Credit Losses

20,671

25,867

(20.1%)

   Net Interest Income After Provision for Loan Losses

361,079

312,391

15.6%

Service Charges

26,852

25,915

3.6%

ATM / Debit Card Fee Income

8,978

11,008

(18.4%)

BOLI Proceeds and Cash Surrender Value Income

3,680

3,296

11.6%

Mortgage Income

78,053

45,177

72.8%

Gain on Sale of Investments, net

3,775

3,475

8.6%

Title Revenue

20,987

18,048

16.3%

Broker Commissions

13,446

10,224

31.5%

Other Noninterest Income

20,226

14,716

37.4%

   Total Noninterest Income

175,997

131,859

33.5%

Salaries and Employee Benefits

233,777

193,773

20.6%

Occupancy and Equipment

54,672

49,600

10.2%

Amortization of Acquisition Intangibles

5,150

5,121

0.6%

Other Noninterest Expense

138,586

125,237

10.7%

   Total Noninterest Expense

432,185

373,731

15.6%

   Income Before Income Taxes

104,891

70,519

48.7%

Income Taxes

28,496

16,981

67.8%

   Net Income

$        76,395

$       53,538

42.7%

   Preferred Stock Dividends

-

-

-

   Earnings Available to Common Shareholders - Basic

76,395

53,538

42.7%

   Earnings Allocated to Unvested Restricted Stock

(1,433)

(967)

48.2%

   Earnings Available to Common Shareholders - Diluted

74,962

52,571

42.6%

Earnings Per Share, diluted

$            2.59

$            1.87

38.0%

Table 5 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

LOANS

December 31,

September 30,

2012

2011

% Change

2012

% Change

Residential Mortgage Loans:

476,852

538,500

(11.4%)

463,402

2.9%

Commercial Loans:

   Real Estate

3,632,045

3,363,891

8.0%

3,549,837

2.3%

   Business

2,537,716

2,005,234

26.6%

2,449,125

3.6%

      Total Commercial Loans

6,169,761

5,369,125

14.9%

5,998,962

2.8%

Consumer Loans:

   Indirect Automobile

327,985

261,896

25.2%

319,389

2.7%

   Home Equity

1,250,977

1,019,110

22.8%

1,200,886

4.2%

   Automobile

60,240

38,600

56.1%

55,244

9.0%

   Credit Card Loans

52,628

48,732

8.0%

49,330

6.7%

   Other 

160,137

112,074

42.9%

142,734

12.2%

      Total Consumer Loans

1,851,967

1,480,412

25.1%

1,767,582

4.8%

      Total Loans 

8,498,580

7,388,037

15.0%

8,229,946

3.3%

Allowance for Credit Losses

(251,603)

(193,761)

(201,387)

   Loans, Net

$     8,246,977

$     7,194,276

$     8,028,559

ASSET QUALITY DATA (1)

December 31,

September 30,

2012

2011

% Change

2012

% Change

Nonaccrual Loans

$        540,867

$        719,236

(24.8%)

$        567,006

(4.6%)

Foreclosed Assets

1,473

4

40196.0%

1,648

(10.6%)

Other Real Estate Owned

120,063

125,042

(4.0%)

127,525

(5.9%)

Accruing Loans More Than 90 Days Past Due 

4,404

29,003

(84.8%)

5,538

(20.5%)

Total Nonperforming Assets

$        666,807

$        873,285

(23.6%)

$        701,717

(5.0%)

Loans 30-89 Days Past Due

$          47,899

$           86,467

(44.6%)

$          59,063

(18.9%)

Nonperforming Assets to Total Assets 

5.08%

7.43%

(31.6%)

5.60%

(9.3%)

Nonperforming Assets to Total Loans and OREO 

7.74%

11.62%

(33.4%)

8.39%

(7.9%)

Allowance for Credit Losses to Nonperforming Loans (2)

46.1%

25.9%

78.2%

35.2%

31.2%

Allowance for Credit Losses to Nonperforming Assets

37.7%

22.2%