IBERIABANK Corporation Reports Second Quarter Results

Jul 25, 2012, 22:20 ET from IBERIABANK Corporation

LAFAYETTE, La., July 25, 2012 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 125-year-old IBERIABANK (www.iberiabank.com), reported operating results for the second quarter ended June 30, 2012.  For the quarter, the Company reported income available to common shareholders of $12 million and fully diluted earnings per share ("EPS") of $0.43.  During the second quarter of 2012, the Company incurred costs associated with recent and pending acquisitions, conversions, and process improvement initiatives totaling $6 million on a pre-tax basis, or $0.13 per share on an after-tax basis.  Gains on sale of investment securities were $1 million, or $0.02 per share on an after-tax basis, during the second quarter.  In addition, loan loss provision expense was $9 million, or $0.19 per share on an after-tax basis.  Based on the aforementioned items, pre-provision operating EPS in the second quarter of 2012 was $0.73 per share (non-GAAP; refer to press release supplemental table).

Daryl G. Byrd, President and Chief Executive Officer, commented, "We continue to see tremendous client and balance sheet growth, and our fee businesses are progressing very well, as we expected.  We are very pleased with our margin stability, exceptional loan growth, and the relatively low-risk posture of our balance sheet."

Byrd continued, "During the second quarter, we embarked upon a process to improve the long-term operating efficiency, risk-adjusted profitability, and long-term growth prospects of our franchise.  This is an ongoing and multi-faceted Company-wide undertaking that entails significant internal and external resources.  To date, we have identified and taken deliberate steps to consolidate and enhance underperforming branches, elevate retail and business banking sales effectiveness, improve support staff efficiency, enhance the risk-adjusted returns in our businesses, and prepare our Company for the rapidly changing economic, regulatory, and competitive environments. Importantly, we are ensuring these actions are fully aligned with the long-term interests of our shareholders, clients, and other constituents.  On a linked quarter basis, our revenues increased by $6 million.  Expenses, excluding the cost of these initiatives and acquisition-related costs, were up $4 million, the majority of which was due to volume-related mortgage commissions.  We believe the improved revenues and contained costs are reflective of an improvement in our core operating efficiency during the second quarter."

Highlights for the Second Quarter of 2012 and June 30, 2012:

  • During the second quarter of 2012, the Company incurred pre-tax acquisition and conversion-related costs of approximately $500,000, or $0.01 per share on an after-tax basis.  In addition, pre-tax costs totaling $5 million, or $0.12 per share after-tax were incurred in association with multiple internal projects to improve the long-term earnings, efficiency, risk posture, and growth prospects of the Company.  The Company anticipates additional non-recurring costs totaling approximately $3 million in the third and fourth quarters of 2012 associated with this process and estimates these actions will produce improved 2013 pre-tax annual earnings to equal approximately $5 million, or $0.11 per share on an after-tax basis, and $0.11 per share in subsequent years.
  • Loan growth of $330 million, or 5%, between quarter-ends (21% annualized rate), excluding loans and other assets covered under FDIC loss share agreements ("Covered Assets").
  • Core deposit growth (excluding time deposits) of $93 million, or 1% (5% annualized growth), during the quarter.
  • The loan loss provision in the second quarter of 2012 was elevated due to deteriorated credit conditions associated with specific acquired loans totaling $3.2 million on a pre-tax basis, or $0.07 per share on an after-tax basis, and FDIC-related loans totaling $1.4 million pre-tax, or $0.03 per share on an after-tax basis.
  • Continued legacy asset quality strength; Nonperforming assets ("NPAs"), excluding Covered Assets and impaired loans acquired in the OMNI Bancshares, Inc. and Cameron Bancshares, Inc. acquisitions, equated to 0.84% of total assets at June 30, 2012, compared to 0.83% at March 31, 2012.  On that basis, loans past due 30 days or more increased one basis point, to 1.30% of total loans at June 30, 2012, and classified assets declined two basis points, to 1.94% of total assets at June 30, 2012.
  • Net charge-offs excluding Covered Assets and acquired impaired loans were $1 million in each the first and second quarters of 2012, equating to 0.09% and 0.07% of average loans, respectively.
  • Capital ratios remained strong; at June 30, 2012, the Company's tangible common equity ratio was 9.37%, tier 1 common ratio was 12.98%, tier 1 leverage ratio was 10.42%, and total risk based capital ratio was 15.55%.

Table 1 - Summary Financial Results  

For Quarter Ended:

%/Basis Point

6/30/2011

3/31/2012

6/30/2012

Change

Net Income ($ in thousands)

$ 5,186

$ 19,393

$ 12,560

-35%

Fully Diluted Earnings Per Share

$ 0.18

$ 0.66

$ 0.43

-35%

Pre-provision Operating Earnings Per Share (Non-GAAP)

$ 0.61

$ 0.68

$ 0.73

8%

Tangible Book Value Per Share

$ 36.49

$ 37.23

$ 37.28

0%

Return on Average Assets

0.20%

0.67%

0.43%

(24)

bps

Return on Average Common Equity

1.50%

5.21%

3.36%

(185)

bps

Return on Average Tangible Common Equity (Non-GAAP)

2.24%

7.43%

4.86%

(257)

bps

Net Interest Margin (TE)*

3.28%

3.59%

3.59%

-

bps

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

83.7%

74.6%

78.2%

359

bps

Tangible Common Equity Ratio

10.02%

9.64%

9.37%

(27)

bps

Tier 1 Leverage Ratio

11.83%

10.51%

10.42%

(9)

bps

Tier 1 Common Ratio (Non-GAAP)

14.47%

13.48%

12.98%

(50)

bps

Total Risk Based Capital Ratio

17.19%

16.10%

15.55%

(55)

bps

Net Charge-Offs to Average Loans**

0.13%

0.09%

0.07%

(2)

bps

Nonperforming Assets to Total Assets**

0.84%

0.83%

0.84%

1

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 decreased five basis points, while the cost of interest bearing liabilities decreased six basis points. As a result, the tax-equivalent net interest margin remained stable at 3.59% in each of the first and second quarters.  On a linked quarter basis, the stable net interest margin and an increase in average earning assets of $133 million, or 1%, resulted in an improvement in tax-equivalent net interest income of $1 million, or 1%.

Table 2  - Quarterly Average Yields/Cost (Taxable Equivalent Basis)

For Quarter Ended:

%/Basis Point

3/31/2012

6/30/2012

Change

Investment Securities

2.51%

2.40%

(11)

bps

Covered Loans, net of loss share receivable

5.14%

5.23%

9

bps

Noncovered Loans

4.78%

4.68%

(10)

bps

Loans & Loss Share Receivable

4.87%

4.80%

(7)

bps

Mortgage Loans Held For Sale

3.58%

3.64%

6

bps

Other Earning Assets

0.71%

0.84%

13

bps

    Total Earning Assets

4.25%

4.20%

(5)

bps

Interest Bearing Deposits

0.72%

0.65%

(7)

bps

Short-Term Borrowings

0.25%

0.24%

(1)

bps

Long-Term Borrowings

2.92%

3.07%

15

bps

    Total Interest Bearing Liabilities

0.82%

0.76%

(6)

bps

Net Interest Spread

3.43%

3.45%

2

bps

Net Interest Margin

3.59%

3.59%

-

bps

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

Movement in the net interest margin was muted during the second 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) average noninterest bearing deposits increased $110 million, or 7%, on a linked quarter basis, and (3) interest bearing deposit costs declined seven basis points.  For the third quarter of 2012, the Company projects the prospective yield on the covered loan portfolio net of the FDIC indemnification asset to approximate 5.15% and projects the average balance of the net covered loan portfolio to decline approximately $75 million, based on current FDIC loss share accounting assumptions and estimates.

The Company reported net charge-offs of $1 million in the second quarter of 2012, equal to 0.06% of average loans.  The Company recorded a $9 million loan loss provision in the second quarter of 2012, up $6 million, or 211%, on a linked quarter basis. Approximately $1 million of the second quarter loan loss provision was related to net charge-offs, $3 million was associated with organic loan growth, and $5 million was associated with credit deterioration in covered loans and acquired impaired loans. 

Aggregate noninterest income increased $4 million, or 11%, 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 $4.5 million, or 33%;
  • Increased title insurance revenues of $0.8 million, or 18%;
  • Increased service charge revenues of $0.6 million, or 11%;
  • Increased trust, wealth management, brokerage and capital markets revenues of $0.2 million, or 5%; partially offset by
  • Decreased gains on the sale of investment securities of $1.9 million, or 68%.

In the second quarter of 2012, the Company originated $591 million in mortgage loans, up $141 million, or 31%, on a linked quarter basis.  Client loan refinancing opportunities accounted for approximately 34% of mortgage loan applications in the second quarter of 2012, and approximately 44% between June 30, 2012, and July 20, 2012, compared to 41% in the first quarter of 2012.  The Company sold $539 million in mortgage loans during the second quarter of 2012, up $63 million, or 13%, 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 $300 million at June 30, 2012, compared to $203 million at March 31, 2012, and approximately $321 million at July 20, 2012.  Mortgage loan repurchases and make-whole payments were $0.3 million in the second quarter of 2012, compared to less than $0.4 million in the first quarter of 2012. 

Wealth Management assets under management were $924 million at June 30, 2012, up 6% compared to March 31, 2012.

Noninterest expense increased $9.1 million, or 9%, on a linked quarter basis.  Approximately $5.0 million of the increase was due to the process improvement initiatives and $2.4 million in increased mortgage commissions.  The cost of process improvement initiatives in the second quarter of 2012 were:

  • Consulting and professional expense of $1.7 million;
  • Severance expense of $1.0 million; and
  • Branch closure costs of $2.7 million.

The other primary changes in noninterest expense on a linked quarter basis were: 

  • Increased mortgage commissions and incentives of $2.4 million, or 74%;
  • Increased franchise and share tax of $0.6 million, or 59%;
  • Increased credit and loan related expense of $0.8 million, or 20%; partially offset by
  • Decreased OREO property expense of $1.2 million, or 44%;
  • Decreased payroll tax expense of $0.5 million, or 15%; and
  • Decreased hospitalization expense of $0.4 million, or 11%.

One-time acquisition and conversion costs associated with the Florida Gulf Bancorp, Inc. and Florida Gulf Bank transactions are projected to be approximately $5 million in the third quarter of 2012 and approximately $1 million in the fourth quarter of 2012.  The Company anticipates incurring an aggregate $3 million in additional pre-tax process improvement costs in the second half of 2012, the pre-tax financial benefits of which are projected to be approximately $1 million in each the third and fourth quarters of 2012, and approximately $5 million for the full year of 2013 and each year thereafter.

Loans

In the second quarter of 2012, total loans increased $259 million, or 3%.  The loan portfolio associated with FDIC-assisted acquisitions decreased $71 million, or 6%, compared to March 31, 2012.  Excluding loans associated with FDIC-assisted transactions, total loans increased $330 million, or 5%, over that period (21% annualized rate).  While commercial and business banking loans accounted for the majority of loan growth during the quarter, the Company also experienced strong growth in consumer loans and lines of credit, as well as indirect automobile loans.  The Company grew loans in nearly every market during the second quarter of 2012, the strongest markets of which were Houston, Lafayette, Birmingham, and Memphis.  Loans and commitments originated during the second quarter of 2012 totaled $976 million, with 50% fixed rate and 50% floating rate.  At June 30, 2012, approximately 25% of non-covered loans by volume are floating rate loans tied to LIBOR.

Table 3 - Period-End Loans ($ in Millions)

Period-End Balances ($Millions)

% Change

Mix

6/30/11

3/31/12

6/30/12

Year/Year

Qtr/Qtr

Annualized

3/31/12

6/30/12

Commercial

$ 4,230

$ 4,601

$ 4,841

14%

5%

21%

62%

63%

Consumer

1,218

1,353

1,470

21%

9%

35%

18%

19%

Mortgage

235

263

236

1%

-10%

-41%

4%

3%

Non-FDIC Loans

$ 5,683

$ 6,217

$ 6,547

15%

5%

21%

83%

85%

Covered Assets

1,463

1,261

1,190

-19%

-6%

-22%

17%

15%

Total Loans

$ 7,146

$ 7,478

$ 7,737

8%

3%

14%

100%

100%

Deposits

Total deposits decreased $45 million, or less than 1%, from March 31, 2012 to June 30, 2012.  Noninterest bearing deposits increased $44 million, or 3% (11% annualized rate), during this period and equated to 18% of total deposits at June 30, 2012.  Time deposits declined $138 million, or 6%, as a result of lower pricing on those products.  Total deposit growth during the second quarter of 2012 was strongest in the Baton Rouge, Birmingham, New Orleans, and Memphis markets.

Table 4 - Period-End Deposits ($ in Millions)

Period-End Balances ($Millions)

% Change

Mix

6/30/11

3/31/12

6/30/12

Year/Year

Qtr/Qtr

Annualized

3/31/12

6/30/12

Noninterest

$ 1,323

$ 1,607

$ 1,651

25%

3%

11%

17%

18%

NOW Accounts

1,639

1,967

1,990

21%

1%

5%

21%

21%

Savings/MMkt

3,284

3,503

3,529

7%

1%

3%

37%

37%

Time Deposits

2,828

2,384

2,246

-21%

-6%

-23%

25%

24%

Total Deposits

$ 9,074

$ 9,461

$ 9,416

4%

0%

-2%

100%

100%

On an average balance basis, noninterest bearing deposits increased $110 million, or 7%, and interest-bearing deposits decreased $27 million, or less than 1%, on a linked quarter basis.  The rate on average interest bearing deposits in the second quarter of 2012 was 0.65%, 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 0.97%.  An additional $0.3 billion in time deposits are scheduled to re-price the following 12 months at a weighted average cost of 1.51%.  During the second quarter of 2012, new and re-priced CDs were booked at an average cost of 0.58%.

Other Assets And Funding

As a percentage of total assets, the investment portfolio held constant with the prior two quarter-ends at 17% at June 30, 2012.  The investment portfolio had a modified duration of 2.7 years at June 30, 2012, compared to 3.1 years at March 31, 2012.  The unrealized gain in the investment portfolio increased from $42 million at March 31, 2012, to $45 million at June 30, 2012.  The average yield on investment securities declined 11 basis points on a linked quarter basis to 2.40% in the second quarter of 2012.  The Company holds in its investment portfolio primarily government agency and municipal securities.  Municipal securities comprised only 10% of the total investment portfolio at June 30, 2012.  The Company holds no sovereign debt or derivative exposure to foreign counterparties and has an immaterial exposure to accelerated bond premium amortization.

Short-term borrowings increased $405 million at June 30, 2012 compared to March 31, 2012, as a result of temporary deposit outflows and liquidity maintenance.  The temporary short-term borrowing position was substantially reduced subsequent to June 30, 2012.  Long-term debt (including trust preferred securities) decreased $12 million, or 3%, between quarter-ends.  On a linked quarter basis, average long-term debt decreased $11 million, or 3%, and the cost of debt increased 15 basis points to 3.07%.  The cost of average interest bearing liabilities was 0.76% in the second quarter of 2012, a decrease of six basis points on a linked quarter basis. For the month of June 2012, the average cost of interest bearing liabilities was 0.73%.

Asset Quality

Excluding $678 million in NPAs which were Covered Assets or acquired impaired loans marked to fair value, NPAs at June 30, 2012 were $87 million, up $4 million, or 5%, compared to March 31, 2012.  On that basis, NPAs were 0.84% of total assets at June 30, 2012, compared to 0.83% of assets at March 31, 2012.  Similarly, loans past due 30 days or more (including nonaccruing loans) increased $5 million, or 6%, and represented 1.30% of total loans at June 30, 2012, compared to 1.29% of total loans at March 31, 2012.

Table 5 - Asset Quality Summary Excludes the impact of all FDIC-assisted acquisitions and impaired loans

For Quarter Ended:

%/Basis Point Change

($ thousands)

6/30/11

3/31/12

6/30/12

Year/Year

Qtr/Qtr

Nonperforming Assets

$ 77,085

$ 82,238

$ 86,501

12%

5%

Past Due Loans

79,859

79,927

84,653

6%

6%

Classified Assets

158,725

194,033

200,872

27%

4%

Nonperforming Assets/Assets

0.84%

0.83%

0.84%

0

1

NPAs/(Loans + OREO)

1.37%

1.33%

1.32%

(5)

(1)

Classified Assets/Total Assets

1.70%

1.96%

1.94%

24

(2)

(Past Dues & Nonaccruals)/Loans

1.42%

1.29%

1.30%

(12)

1

Provision For Loan Losses

$ 7,351

$ 1,004

$ 4,271

-42%

326%

Net Charge-Offs/(Recoveries)

1,628

1,339

1,102

-32%

-18%

Provision Less Net Charge-Offs

$ 5,723

$ (335)

$ 3,169

-45%

1045%

Net Charge-Offs/Average Loans

0.13%

0.09%

0.07%

(6)

(2)

Reserve For Loan Losses/Loans

1.29%

1.21%

1.19%

(10)

(2)

Excluding Covered Assets and acquired impaired loans, troubled debt restructurings at June 30, 2012, totaled $23 million, or 0.35% of total loans (compared to 0.44% of loans at March 31, 2012).  Substantially all of the troubled debt restructurings were included in NPAs at June 30, 2012.

Capital Position

The Company maintains formidable capital strength.  At June 30, 2012, the Company reported a tangible common equity ratio of 9.37%, down 27 basis points compared to March 31, 2012.  At that date, the Company's preliminary Tier 1 leverage ratio was 10.42%, down nine basis points compared to March 31, 2012.  The Company's preliminary total risk-based capital ratio at June 30, 2012 was 15.55%, down 55 basis points compared to March 31, 2012.

At June 30, 2012, book value per share was $50.68, up $0.01 per share compared to March 31, 2012. Tangible book value per share was $37.28, up $0.05 per share compared to March 31, 2012.  Based on the closing stock price of the Company's common stock of $48.16 per share on July 25, 2012, this price equated to 0.95 times June 30, 2012 book value and 1.29 times June 30, 2012 tangible book value per share.

On June 15, 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 2.82%.

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 second quarter of 2012, the Company purchased 48,188 shares of IBERIABANK Corporation common stock at a weighted average cost of $47.93 per share.  A total of 851,812 shares remain under the currently authorized share repurchase program.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with 269 combined offices, including 179 bank branch offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, and Florida, 22 title insurance offices in Arkansas and Louisiana, mortgage representatives in 59 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 March 31, 2012, the Company opened six bank branch offices in New Orleans, Baton Rouge, Birmingham, Huntsville, Little Rock, and Sugar Land, Texas.

The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC."  The Company's market capitalization was approximately $1.4 billion, based on the NASDAQ closing stock price on July 25, 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 Thursday, July 26, 2012, beginning at 9:00 a.m. Central Time by dialing 1-800-230-1085. The confirmation code for the call is 252343.  A replay of the call will be available until midnight Central Time on August 2, 2012 by dialing 1-800-475-6701. The confirmation code for the replay is 252343.  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 those in accordance with GAAP. The Company's management uses these non-GAAP financial measures in their analysis of the Company's operating performance and believes that such measures are useful to investors in comparing period-to-period operating performance, predicting future performance, and assessing the performance of the Company on the same basis as that of management. "Taxable equivalent" and "tangible" measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt and exclude the effects of the amortization of intangibles. "Operating earnings" and "pre-provision operating earnings" remove the effects of specific items that management believes are not indicative of future performance.  It is possible for the amounts excluded from operating earnings and pre-provision operating earnings to recur; however the Company believes that such excluded amounts are not indicative of ongoing operations.  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 have inherent limitations as analytical tools and do not represent amounts that accrue to the benefit of shareholders.   Accordingly, non-GAAP measures should not be considered in isolation or 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 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 accounting for, acquired businesses and assets and assumed liabilities in FDIC-assisted transactions, adjustments of fair values of acquired assets and assumed liabilities and of deferred taxes in FDIC-assisted 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 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.

Additional Information About The Florida Gulf Bancorp, Inc. Transaction

In connection with the proposed merger, IBERIABANK Corporation has filed with the Securities and Exchange Commission (the "SEC") a Registration Statement on Form S-4 that contains a proxy statement/prospectus for shareholders of Florida Gulf Bancorp, Inc. Investors may obtain a free copy of the proxy statement/prospectus and other documents containing information about IBERIABANK Corporation, Florida Gulf Bancorp, Inc., and the proposed transaction, without charge, at the SEC's web site at http://www.sec.gov. Copies of the proxy statement/prospectus and the SEC filings that are incorporated by reference in the proxy statement/prospectus may also be obtained, for free from the IBERIABANK Corporation website, http://www.iberiabank.com, under the heading "Investor Information".

 

Table 6 - IBERIABANK CORPORATION

FINANCIAL HIGHLIGHTS

 For The Quarter Ended 

 For The Quarter Ended 

 June 30, 

 March 31, 

2012

2011

% Change

2012

% Change

Income Data (in thousands):

Net Interest Income

$             93,172

$             75,965

23%

$             91,861

1%

Net Interest Income  (TE)   (1)

95,593

78,007

23%

94,233

1%

Net Income 

12,560

5,186

142%

19,393

(35%)

Earnings Available to Common Shareholders- Basic

12,560

5,186

142%

19,393

(35%)

Earnings Available to Common Shareholders- Diluted

12,320

5,099

142%

19,029

(35%)

Per Share Data:

Earnings Available to Common Shareholders - Basic

$                0.43

$                0.19

130%

$               0.66

(35%)

Earnings Available to Common Shareholders - Diluted

0.43

0.18

131%

0.66

(35%)

Book Value Per Share

50.68

49.88

2%

50.67

0%

Tangible Book Value Per Common Share(2)

37.28

36.49

2%

37.23

0%

Cash Dividends

0.34

0.34

-

0.34

-

Closing Stock Price

50.45

57.64

(12%)

53.47

(6%)

Key Ratios: (3)

Operating Ratios:

Return on Average Assets

0.43%

0.20%

0.67%

Return on Average Common Equity

3.36%

1.50%

5.21%

Return on Average Tangible Common Equity (2)

4.86%

2.24%

7.43%

Net Interest Margin  (TE)  (1)

3.59%

3.28%

3.59%

Efficiency Ratio

80.8%

86.7%

77.3%

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

78.2%

83.7%

74.6%

Full-time Equivalent Employees

2,574

2,560

2,591

Capital Ratios:

Tangible Common Equity Ratio

9.37%

10.02%

9.64%

Tangible Common Equity to Risk-Weighted Assets

13.24%

14.82%

13.80%

Tier 1 Leverage Ratio

10.42%

11.83%

10.51%

Tier 1 Capital Ratio

14.28%

15.93%

14.84%

Total Risk Based Capital Ratio

15.55%

17.19%

16.10%

Common Stock Dividend Payout Ratio

79.9%

198.1%

51.8%

Asset Quality Ratios:

Excluding FDIC Covered Assets and acquired impaired loans

Nonperforming Assets to Total Assets (4)

0.84%

0.84%

0.83%

Allowance for Loan Losses to Loans

1.19%

1.29%

1.21%

Net Charge-offs to Average Loans 

0.07%

0.13%

0.09%

Nonperforming Assets to Total Loans and OREO (4)

1.32%

1.37%

1.33%

 For The Quarter Ended 

 For The Quarter Ended 

 June 30, 

 March 31, 

 December 31, 

 September 30, 

2012

2012

2012

2011

2011

Balance Sheet Summary (in thousands):

End of Period

Average

Average

Average

Average

Excess Liquidity (5)

$           404,327

$           294,171

$    326,810

$           328,869

$           217,447

Total Investment Securities

2,001,145

2,048,001

2,047,168

2,051,564

2,152,993

Loans, Net of Unearned Income

7,736,512

7,592,677

7,381,188

7,224,613

7,164,164

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

6,517,694

6,400,351

6,053,548

5,850,558

5,679,590

Total Assets

12,121,118

11,817,101

11,688,081

11,585,185

11,506,895

Total Deposits

9,415,920

9,463,392

9,380,956

9,252,647

9,169,770

Total Shareholders' Equity

1,495,040

1,504,102

1,496,782

1,480,538

1,505,355

(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 7 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

BALANCE SHEET (End of Period)

June 30,

March 31,

2012

2011

% Change

2012

% Change

ASSETS

Cash and Due From Banks

$            195,719

$            193,360

1.2%

$            196,572

(0.4%)

Interest-bearing Deposits in Banks

404,327

68,444

490.7%

396,209

2.0%

   Total Cash and Equivalents

600,046

261,804

129.2%

592,781

1.2%

Investment Securities Available for Sale

1,812,746

1,937,169

(6.4%)

1,811,023

0.1%

Investment Securities Held to Maturity

188,399

278,192

(32.3%)

190,084

(0.9%)

   Total Investment Securities

2,001,145

2,215,361

(9.7%)

2,001,107

0.0%

Mortgage Loans Held for Sale

180,569

75,615

138.8%

128,125

40.9%

Loans, Net of Unearned Income

7,736,512

7,145,428

8.3%

7,478,306

3.5%

Allowance for Loan Losses

(187,285)

(169,988)

10.2%

(177,192)

5.7%

   Loans, Net

7,549,227

6,975,440

8.2%

7,301,114

3.4%

Loss Share Receivable

469,923

670,465

(29.9%)

537,448

(12.6%)

Premises and Equipment

291,718

275,502

5.9%

292,403

(0.2%)

Goodwill and Other Intangibles

395,919

404,677

(2.2%)

396,908

(0.2%)

Other Assets

632,571

532,339

18.8%

541,397

16.8%

   Total Assets

$      12,121,118

$      11,411,203

6.2%

$      11,791,283

2.8%

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing Deposits

$         1,651,154

$         1,322,546

24.8%

$         1,607,244

2.7%

NOW Accounts

1,989,876

1,638,839

21.4%

1,966,960

1.2%

Savings and Money Market Accounts

3,529,060

3,283,793

7.5%

3,502,606

0.8%

Certificates of Deposit

2,245,830

2,828,344

(20.6%)

2,384,601

(5.8%)

   Total Deposits

9,415,920

9,073,522

3.8%

9,461,411

(0.5%)

Short-term Borrowings

405,000

10,000

3950.0%

-

100.0%

Securities Sold Under Agreements to Repurchase

235,768

205,778

14.6%

266,489

(11.5%)

Trust Preferred Securities

111,862

111,862

0.0%

111,862

0.0%

Other Long-term Debt

306,036

351,154

(12.8%)

317,980

(3.8%)

Other Liabilities

151,492

151,899

(0.3%)

137,911

9.8%

   Total Liabilities

10,626,078

9,904,215

7.3%

10,295,653

3.2%

Total Shareholders' Equity

1,495,040

1,506,988

(0.8%)

1,495,630

(0.0%)

   Total Liabilities and Shareholders' Equity

$      12,121,118

$      11,411,203

6.2%

$      11,791,283

2.8%

BALANCE SHEET (Average)

June 30,

March 31,

December 31,

September 30,

June 30,

2012

2012

2011

2011

2011

ASSETS

Cash and Due From Banks

$            188,260

$            189,182

$            188,517

$            199,610

$            157,412

Interest-bearing Deposits in Banks

294,171

326,810

328,869

217,423

104,800

Investment Securities

2,048,001

2,047,168

2,051,564

2,152,993

2,061,814

Mortgage Loans Held for Sale

135,273

117,186

131,787

87,769

56,783

Loans, Net of Unearned Income

7,592,677

7,381,188

7,224,613

7,164,164

6,493,790

Allowance for Loan Losses

(173,023)

(185,952)

(167,433)

(172,030)

(147,889)

Loss Share Receivable

508,443

573,776

592,985

626,551

666,159

Other Assets

1,223,299

1,238,723

1,234,283

1,230,415

1,046,062

   Total Assets

$      11,817,101

$      11,688,081

$      11,585,185

$      11,506,895

$      10,438,931

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing Deposits

$         1,640,327

$         1,530,504

$         1,455,097

$         1,368,014

$         1,090,281

NOW Accounts

1,985,248

1,924,371

1,718,337

1,682,568

1,472,547

Savings and Money Market Accounts

3,524,641

3,481,073

3,413,278

3,350,035

3,053,046

Certificates of Deposit

2,313,176

2,445,008

2,665,935

2,769,153

2,630,670

   Total Deposits

9,463,392

9,380,956

9,252,647

9,169,770

8,246,544

Short-term Borrowings

27,857

4,220

4,337

-

21,919

Securities Sold Under Agreements to Repurchase

245,401

219,846

218,926

218,290

200,565

Trust Preferred Securities

111,862

111,862

111,862

111,862

106,944

Long-term Debt

313,451

324,468

343,687

352,610

315,570

Other Liabilities

151,036

149,947

173,188

149,008

160,150

   Total Liabilities

10,312,999

10,191,299

10,104,647

10,001,540

9,051,692

Total Shareholders' Equity

1,504,102

1,496,782

1,480,538

1,505,355

1,387,239

   Total Liabilities and Shareholders' Equity

$      11,817,101

$      11,688,081

$      11,585,185

$      11,506,895

$      10,438,931

 

Table 8 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

For The Three Months Ended

INCOME STATEMENT

June 30,

March 31,

2012

2011

% Change

2012

% Change

Interest Income

$     109,283

$       97,127

12.5%

$      109,187

0.1%

Interest Expense

16,111

21,162

(23.9%)

17,326

(7.0%)

   Net Interest Income

93,172

75,965

22.7%

91,861

1.4%

Provision for Loan Losses

8,895

9,990

(11.0%)

2,857

211.3%

   Net Interest Income After Provision for Loan Losses

84,277

65,975

27.7%

89,004

(5.3%)

Service Charges

6,625

6,343

4.5%

5,980

10.8%

ATM / Debit Card Fee Income

2,166

2,966

(27.0%)

2,024

7.0%

BOLI Proceeds and Cash Surrender Value Income

905

748

21.0%

951

(4.9%)

Gain on Sale of Loans, Net

18,078

9,389

92.5%

13,619

32.7%

Gain (Loss) on Sale of Investments, Net

901

1,428

(36.9%)

2,836

(68.2%)

Title Revenue

5,339

4,492

18.9%

4,533

17.8%

Broker Commissions

3,102

2,624

18.2%

3,060

1.4%

Other Noninterest Income

4,578

2,998

52.7%

4,393

4.2%

   Total Noninterest Income

41,694

30,988

34.5%

37,396

11.5%

Salaries and Employee Benefits

58,121

46,048

26.2%

54,819

6.0%

Occupancy and Equipment

12,908

12,067

7.0%

12,719

1.5%

Amortization of Acquisition Intangibles

1,289

1,183

9.0%

1,290

(0.1%)

Other Noninterest Expense

36,704

33,409

9.9%

31,045

18.2%

   Total Noninterest Expense

109,022

92,706

17.6%

99,873

9.2%

   Income Before Income Taxes

16,949

4,257

298.2%

26,527

(36.1%)

Income Taxes

4,389

(929)

572.3%

7,134

(38.5%)

   Net Income

$        12,560

$         5,186

142.2%

$         19,393

(35.2%)

   Preferred Stock Dividends

-

-

-

-

-

   Earnings Available to Common Shareholders - Basic

12,560

5,186

142.2%

19,393

(35.2%)

   Earnings Allocated to Unvested Restricted Stock

(240)

(87)

176.0%

(364)

(34.0%)

   Earnings Available to Common Shareholders - Diluted

12,320

5,099

141.6%

19,029

(35.3%)

Earnings Per Share, Diluted

$            0.43

$            0.18

131.0%

$             0.66

(35.3%)

Impact of Merger-related Expenses

$            0.03

$            0.16

(79.5%)

$             0.01

126.4%

Earnings Per Share, diluted, Excluding Merger-related Expenses

$            0.46

$            0.34

33.9%

$             0.67

(31.8%)

NUMBER OF SHARES OUTSTANDING

Basic Shares  (Average)

29,463,811

28,015,846

5.2%

29,384,220

0.3%

Diluted Shares  (Average)

28,950,806

27,677,313

4.6%

28,928,276

0.1%

Book Value Shares  (Period End)  (1)

29,497,008

30,214,550

(2.4%)

29,515,866

(0.1%)

2012

2011

INCOME STATEMENT

Second

First

Fourth

Third

Second

Quarter

Quarter 

Quarter

Quarter

Quarter

Interest Income

$     109,283

$     109,187

$      111,799

$      111,966

$         97,127

Interest Expense

16,111

17,326

19,226

20,995

21,162

   Net Interest Income

93,172

91,861

92,573

90,971

75,965

Provision for Loan Losses

8,895

2,857

4,278

6,127

9,990

   Net Interest Income After Provision for Loan Losses

84,277

89,004

88,295

84,844

65,975

Total Noninterest Income

41,694

37,396

35,455

37,120

30,988

Total Noninterest Expense

109,022

99,873

99,726

99,566

92,706

   Income Before Income Taxes

16,949

26,527

24,024

22,398

4,257

Income Taxes

4,389

7,134

6,667

6,051

(929)

   Net Income

$        12,560

$       19,393

$        17,357

$         16,347

$           5,186

   Preferred Stock Dividends

-

-

-

-

-

   Earnings Available to Common Shareholders - Basic

12,560

19,393

17,357

16,347

5,186

   Earnings Allocated to Unvested Restricted Stock

(240)

(364)

(307)

(290)

(87)

   Earnings Available to Common Shareholders - Diluted

$        12,320

$       19,029

$        17,050

$         16,057

$           5,099

Earnings Per Share, Basic

$            0.43

$            0.66

$            0.59

$             0.55

$             0.19

Earnings Per Share, Diluted

$            0.43

$            0.66

$            0.59

$             0.54

$             0.18

Book Value Per Common Share

$          50.68

$         50.67

$          50.48

$           50.16

$           49.88

Tangible Book Value Per Common Share

$          37.28

$         37.23

$          36.80

$           36.41

$           36.49

Return on Average Assets

0.43%

0.67%

0.59%

0.56%

0.20%

Return on Average Common Equity

3.36%

5.21%

4.65%

4.31%

1.50%

Return on Average Tangible Common Equity

4.86%

7.43%

6.72%

6.22%

2.24%

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

 

 

Table 9 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

For The Six Months Ended

INCOME STATEMENT

June 30,

2012

2011

% Change

Interest Income

$     218,470

$     196,562

11.1%

Interest Expense

33,436

41,848

(20.1%)

   Net Interest Income

185,034

154,714

19.6%

Provision for Loan Losses

11,752

15,461

(24.0%)

   Net Interest Income After Provision for Loan Losses

173,282

139,253

24.4%

Service Charges

12,606

11,855

6.3%

ATM / Debit Card Fee Income

4,189

5,879

(28.7%)

BOLI Proceeds and Cash Surrender Value Income

1,855

1,473

26.0%

Gain on Sale of Loans, net

31,697

18,281

73.4%

Gain (Loss) on Sale of Investments, net

3,737

1,476

153.2%

Title Revenue

9,872

8,302

18.9%

Broker Commissions

6,162

5,266

17.0%

Other Noninterest Income

8,972

6,751

32.9%

   Total Noninterest Income

79,090

59,283

33.4%

Salaries and Employee Benefits

112,940

89,678

25.9%

Occupancy and Equipment

25,627

21,179

21.0%

Amortization of Acquisition Intangibles

2,579

2,352

9.7%

Other Noninterest Expense

67,750

61,231

10.6%

   Total Noninterest Expense

208,896

174,440

19.8%

   Income Before Income Taxes

43,476

24,096

80.4%

Income Taxes

11,523

4,263

170.3%

   Net Income

$        31,953

$       19,833

61.1%

   Preferred Stock Dividends

-

-

-

   Earnings Available to Common Shareholders - Basic

31,953

19,833

61.1%

   Earnings Allocated to Unvested Restricted Stock

(607)

(378)

60.3%

   Earnings Available to Common Shareholders - Diluted

31,346

19,455

61.1%

Earnings Per Share, diluted

$            1.08

$            0.72

51.0%

Impact of Merger-related Expenses

$            0.05

$            0.20

(75.3%)

Earnings Per Share, diluted, Excluding Merger-related Expenses

$            1.13

$            0.91

23.9%

 

Table 10 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

LOANS RECEIVABLE

June 30,

March 31,

2012

2011

% Change

2012

% Change

Residential Mortgage Loans:

   Residential 1-4 Family

$        410,015

$        525,550

(22.0%)

$        457,248

(10.3%)

   Construction/ Owner Occupied

9,482

17,694

(46.4%)

15,228

(37.7%)

      Total Residential Mortgage Loans

419,497

543,244

(22.8%)

472,476

(11.2%)

Commercial Loans:

   Real Estate

3,313,172

3,376,941

(1.9%)

3,263,960

1.5%

   Business

2,306,160

1,751,373

31.7%

2,160,583

6.7%

      Total Commercial Loans

5,619,332

5,128,314

9.6%

5,424,543

3.6%

Consumer Loans:

   Indirect Automobile

309,838

247,103

25.4%

288,064

7.6%

   Home Equity

1,159,899

1,006,113

15.3%

1,092,989

6.1%

   Automobile

49,411

34,331

43.9%

42,458

16.4%

   Credit Card Loans

46,519

45,461

2.3%

46,801

(0.6%)

   Other 

132,016

140,862

(6.3%)

110,976

19.0%

      Total Consumer Loans

1,697,683

1,473,870

15.2%

1,581,287

7.4%

      Total Loans Receivable

7,736,512

7,145,428

8.3%

7,478,306

3.5%

Allowance for Loan Losses

(187,285)

(169,988)

(177,192)

   Loans Receivable, Net

$     7,549,227

$     6,975,440

$     7,301,114

ASSET QUALITY DATA (1)

June 30,

March 31,

2012

2011

% Change

2012

% Change

Nonaccrual Loans

$        625,938

$        790,953

(20.9%)

$        677,619

(7.6%)

Foreclosed Assets

455

18

2485.0%

64

609.7%

Other Real Estate Owned

129,463

112,060

15.5%

126,593

2.3%

Accruing Loans More Than 90 Days Past Due 

8,270

23,070

(64.2%)

7,320

13.0%

Total Nonperforming Assets

$        764,126

$        926,101

(17.5%)

$        811,596

(5.8%)

Loans 30-89 Days Past Due

46,391

86,880

(46.6%)

35,228

31.7%

Nonperforming Assets to Total Assets 

6.30%

8.12%

(22.3%)

6.88%

(8.4%)

Nonperforming Assets to Total Loans and OREO 

9.71%

12.76%

(23.9%)

10.67%

(9.0%)

Allowance for Loan Losses to Nonperforming Loans (2)

29.5%

20.9%

41.4%

25.9%

14.2%

Allowance for Loan Losses to Nonperforming Assets

24.5%

18.4%

33.5%

21.8%

12.3%

Allowance for Loan Losses to Total Loans

2.42%

2.38%

1.8%

2.37%

2.2%

Year to Date Charge-offs 

$             4,627

$             5,962

(22.4%)

$             2,485

N/M

Year to Date Recoveries

(1,815)

(5,008)

(63.7%)

(790)

N/M

Year to Date Net Charge-offs (Recoveries)

$             2,812

$                954

194.7%

$             1,695

N/M

Quarter to Date Net Charge-offs (Recoveries)

$             1,118

$             1,718

(35.0%)

$             1,695

(34.1%)

(1)For purposes of this table, nonperforming assets include all loans meeting nonperforming asset criteria,  including assets acquired in FDIC-assisted transactions.

(2)Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due.  

N/M - Comparison of the information presented is not meaningful given the periods presented.

 

Table 11 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)