IBERIABANK Corporation Reports Second Quarter Results

23 Jul, 2013, 17:41 ET from IBERIABANK Corporation

LAFAYETTE, La., July 23, 2013 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 126-year-old IBERIABANK (www.iberiabank.com), reported operating results for the second quarter ended June 30, 2013.  For the quarter, the Company reported income available to common shareholders of $16 million, or $0.53 fully diluted earnings per share.  The Company incurred costs to implement previously disclosed earnings improvement initiatives in the second quarter of 2013 equal to $0.16 per share on an after-tax basis.  In addition, as announced on April 15, 2013, the results for the second quarter of 2013 were materially affected by increased costs related to the adoption of a new accounting standard ($0.11 per share after-tax).  The negative impact of these items on the second quarter of 2013 totaled $7 million on a pre-tax basis, or $0.27 per share on an after-tax basis.  Excluding those items, EPS in the second quarter of 2013 was $0.80 per share on a non-GAAP operating basis excluding the adoption of the new accounting standard (refer to press release supplemental table).

Daryl G. Byrd, President and Chief Executive Officer, commented, "The results for the second quarter were generally consistent with our expectations.  We experienced the strongest quarterly organic loan growth in our Company's history.  Noninterest bearing deposit volumes continued to climb.  Our net interest margin in the second quarter showed significant improvement as expected.  Our asset quality and capital position remained stellar.  Targeted cost savings are being achieved, though results this quarter were masked by $4 million in one-time branch closure costs that were beyond our expectations.  While we originated the third highest quarterly mortgage loan production in our Company's history, mortgage income was negatively affected by the rapid rise in interest rates and reduced pipeline valuations. Overall, we believe we remain on track to achieve the guidance we projected for the investment community last quarter."

Highlights for the Second Quarter of 2013 and June 30, 2013:

  • The net interest margin improved 16 basis points on a linked quarter basis to 3.39%. The primary drivers of the margin improvement were yield stability in the investment securities portfolio and loans net of the loss share receivable combined with an improved earning asset mix and a five basis point reduction in the cost of interest bearing deposits. Management stated continued comfort with the previously disclosed net interest margin guidance range of 3.30% to 3.35% through the fourth quarter of 2013.
  • The Company's profitability improvement initiatives are currently expected to achieve aggregate annual run-rate benefits of approximately $21 million, of which 92% are targeted expense reductions. In the second quarter of 2013, implementation costs were $7 million, approximately $4 million greater than initially projected, due primarily to higher branch closing costs than initially forecasted.  Implementation costs for the remainder of 2013 are projected to total less than $1 million, with approximately $9 million in aggregate pre-tax earnings improvements in the second half of 2013.  Full run-rate benefits are expected to be achieved by the first quarter of 2014, resulting in approximately $21 million of annual pre-tax earnings improvements in 2014 and beyond.
  • Gross loan growth was $394 million, or 5%, between quarter-ends (21% annualized rate), excluding loans and other assets covered under FDIC loss share agreements ("Covered Assets").
  • Total deposits decreased $45 million, or less than 1%, between quarter-ends.  Noninterest bearing deposits increased $84 million, or 4% (17% annualized rate), and time deposits decreased $110 million, or 5%, over the period.
  • The Company's legacy asset quality continued to be strong in the second quarter of 2013.  Nonperforming assets ("NPAs"), excluding Covered Assets and impaired loans acquired in acquisitions, equated to 0.86% of total assets at June 30, 2013, compared to 0.83% at March 31, 2013.  On that basis, loans past due 30 days or more equated to 1.18% of total loans at June 30, 2013, compared to 1.13% at March 31, 2013.  Classified assets excluding Covered Assets decreased $30 million, or 14%, during the second quarter, and decreased from 1.84% of total assets at March 31, 2013, to 1.59% at June 30, 2013.
  • The Company recorded a $2 million loan loss provision in the second quarter of 2013, compared to a $3 million negative loan loss provision in the first quarter of 2013.  The provision increase was driven primarily by solid loan growth.  Net charge-offs totaled $1.1 million in the second quarter of 2013, or an annualized 0.05% of average loans, compared to 0.06% of average loans in the first quarter of 2013, and 0.07% of average loans over the past six quarters.
  • Capital ratios remained strong. At June 30, 2013, the Company's tangible common equity ratio was 8.69%, tier 1 common ratio was 11.08%, and total risk based capital ratio was 13.45%.

Table A - Summary Financial Results

For the Quarter Ended:

Selected Financial Data

6/30/2012

3/31/2013

6/30/2013

% Change

Net Income ($ in thousands)

$               12,560

$                     717

$               15,590

2074%

Per Share Data:

Fully Diluted Earnings 

$                    0.43

$                    0.02

$                    0.53

2011%

Operating Earnings (Non-GAAP) (1)

0.54

0.86

0.80

-7%

Pre-provision Operating Earnings  (Non-GAAP)

0.73

0.66

0.73

10%

Tangible Book Value 

37.28

36.93

36.30

-2%

As of and for the Quarter Ended:

Basis Point

Key Ratios 

6/30/2012

3/31/2013

6/30/2013

Change

Return on Average Assets

0.43%

0.02%

0.49%

47

bps

Return on Average Common Equity

3.36%

0.19%

4.09%

390

bps

Return on Average Tangible Common Equity (Non-GAAP)

4.86%

0.55%

5.96%

541

bps

Net Interest Margin (TE) (2)

3.59%

3.23%

3.39%

16

bps

Tangible Efficiency Ratio (TE) (2)(Non-GAAP)

78.2%

102.4%

81.9%

(2,051)

bps

Tangible Common Equity Ratio (Non-GAAP)

9.37%

8.75%

8.69%

(6)

bps

Tier 1 Leverage Ratio

10.42%

9.37%

9.59%

22

bps

Tier 1 Common Ratio (Non-GAAP)

12.97%

11.39%

11.08%

(31)

bps

Total Risk Based Capital Ratio

15.54%

13.80%

13.45%

(35)

bps

Net Charge-Offs to Average Loans (3)

0.07%

0.06%

0.05%

(1)

bps

Nonperforming Assets to Total Assets (3)

0.84%

0.83%

0.86%

3

bps

For the Quarter Ended:

GAAP

Non GAAP

Adjusted Selected Key Ratios

6/30/2013

Adjustments(4)

6/30/2013

Return on Average Assets

0.49%

0.12%

0.61%

Return on Average Common Equity

4.09%

0.85%

4.94%

Return on Average Tangible Common Equity (Non-GAAP)

5.96%

1.18%

7.14%

Net Interest Margin (TE) (2)

3.39%

0.17%

3.56%

Tangible Efficiency Ratio (TE)(2)(Non-GAAP)

81.9%

(2.8%)

79.1%

(1)Excludes the impact of the adoption of the new accounting standard.

(2)Fully taxable equivalent basis.

(3)Excluding FDIC Covered Assets and acquired impaired loans.

(4)Adjusted results exclude the income statement impact of the additional amortization of the Company's  indemnification asset, net of tax where applicable, without adjustment to any balance sheet accounts. 

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 decreased $241 million, or 2%, as average loans and the FDIC receivable increased $89 million, or 1%, average investment securities increased $17 million, or 1%, and other earning assets declined $340 million, or 50%. Also on a linked quarter basis, the average earning asset yield increased 10 basis points, and the cost of interest bearing liabilities decreased seven basis points.  As a result, the tax-equivalent net interest margin improved 16 basis points.  Tax-equivalent net interest income increased $3.5 million, or 4%, as the improvement in deposit costs and earning asset yields more than offset the decline in average earning assets on a linked quarter basis.

Table B - Quarterly Average Yields/Cost (1)

For Quarter Ended:

Basis Point

6/30/2012

3/31/2013

6/30/2013

Change

Investment Securities

2.40%

1.92%

1.92%

(0)

bps

Covered Loans, net of loss share receivable

7.44%

5.35%

5.11%

(24)

bps

Noncovered Loans

4.68%

4.44%

4.40%

(4)

bps

Loans & Loss Share Receivable

4.80%

4.36%

4.35%

(1)

bps

Mortgage Loans Held For Sale

3.64%

2.97%

3.17%

20

bps

Other Earning Assets

0.84%

0.52%

0.87%

35

bps

  Total Earning Assets

4.20%

3.70%

3.80%

10

bps

Interest Bearing Deposits

0.65%

0.47%

0.42%

(5)

bps

Short-Term Borrowings

0.24%

0.19%

0.16%

(3)

bps

Long-Term Borrowings

3.07%

3.16%

3.39%

23

bps

  Total Interest Bearing Liabilities

0.76%

0.58%

0.51%

(7)

bps

Net Interest Spread

3.45%

3.12%

3.29%

17

bps

Net Interest Margin

3.59%

3.23%

3.39%

16

bps

(1) Earning asset yields are shown on a fully taxable equivalent basis.

The average investment yield was unchanged during the second quarter of 2013 as cash flows from maturing investments were reinvested at higher market rates.  During the second quarter of 2013, the Company deployed, on average, approximately $335 million in excess liquidity to fund loan growth.

The covered loan yield (net of loss share receivable amortization) decreased 24 basis points due primarily to lower income and higher balances on the covered loan portfolio.  The non-covered loan yield declined four basis points primarily due to four and eight basis point declines in the commercial and consumer loan portfolio yields, respectively.

For the third quarter of 2013, the Company projects the prospective yield on the covered loan portfolio net of the FDIC Indemnification Asset ("IA") to approximate 4.70% and 5.06% for the full year 2013. The average balance of the net covered loan portfolio is projected to decline approximately $102 million, based on current FDIC loss share accounting assumptions and estimates.  Net income on the covered loan portfolio is projected to decline from approximately $12 million in the second quarter of 2013 to approximately $10 million in the third quarter of 2013.

The IA declined $43 million, or 15%, from $284 million at March 31, 2013 to $241 million at June 30, 2013.  The portion of the IA collectible from the FDIC decreased $39 million, or 31%, while the collectible portion from OREO and customers declined $3 million, or 2%.

The Company recorded a $2 million loan loss provision in the second quarter of 2013, with net charge-offs of $1 million, or 0.05% of average loans on an annualized basis.

Aggregate noninterest income decreased $2 million, or 5%, on a linked quarter basis.  The primary changes in noninterest income on a linked quarter basis were:

  • Decreased gains on the sale of investment securities equal to $2.4 million;
  • Decreased mortgage income of $1.2 million, or 6%; partially offset by
  • Increased title revenue of $0.7 million, or 13%;
  • Increased brokerage commissions of $0.3 million, or 9%; and
  • Increased deposit service charge income of $0.3 million, or 5%.

The $1.2 million decline in mortgage income was the result of lower net valuations of derivatives and mortgage loans held for sale due primarily to the changing interest rate environment. Assets under management at IBERIA Wealth Advisors were $1.1 billion at June 30, 2013. 

In the second quarter of 2013, the Company originated $672 million in residential mortgage loans, up $126 million, or 23%, on a linked quarter basis (up $81 million, or 14%, compared to the same quarter last year).  The increase in origination volume was consistent with historical seasonal trends.  Client loan refinancing opportunities accounted for approximately 31% of mortgage loan applications in the second quarter of 2013, compared to 40% in the first quarter of 2013, and approximately 17% between June 30, 2013, and July 12, 2013.  The Company sold $684 million in mortgage loans during the second quarter of 2013, up $68 million, or 11%, on a linked quarter basis.  Margins on the sale of mortgage loans declined slightly on a linked quarter basis.  The mortgage origination pipeline was approximately $265 million at June 30, 2013, compared to $281 million at March 31, 2013, and was approximately $270 million at July 12, 2013.  Mortgage loan repurchases and make-whole payments were approximately $0.3 million in the second quarter of 2013, up slightly compared to the first quarter of 2013. 

Noninterest expense decreased $27.5 million, or 19%, on a linked quarter basis.  Non-operating expenses declined $28.0 million on a linked quarter basis, comprised of the following changes:

  • Decreased IA impairment of $31.8 million;
  • Decreased FHLB debt extinguishment of $2.3 million; and
  • Decreased merger and conversion-related expense of $0.2 million; partially offset by
  • Increased branch closure cost of $4.6 million;
  • Increased severance expense of $1.6 million; and
  • Increased litigation expenses of $0.2 million.

Excluding the aforementioned non-operating expenses, total expenses were essentially unchanged at $110 million in the second quarter of 2013.  Operating expense changes on a linked quarter basis included:

  • Increased mortgage commissions of $1.8 million, or 42%, due to higher mortgage loan production;
  • Decreased occupancy and equipment expense of $0.5 million, or 3%, due to branch closures; and
  • Decreased OREO expenses of $0.6 million, or 62%;

On a linked quarter basis, total headcount at the Company declined by 107 associates on a full-time equivalent basis, or 4%.

Loans

Total loans increased $308 million, or 4%, between March 31, 2013 and June 30, 2013.  The loan portfolio associated with FDIC-assisted acquisitions decreased $86 million, or 9%, compared to March 31, 2013.  Excluding loans associated with FDIC-assisted transactions, total loans increased $394 million, or 5% (21% annualized rate). Legacy commercial loans increased $288 million, or 5% (which includes $61 million in business banking loan growth, up 9%, or 36% annualized rate), legacy consumer loans increased $56 million, or 3%, and legacy mortgage loans increased $50 million, or 16%, during the quarter.  Loan origination and renewal growth during the second quarter of 2013 were strongest in the Houston, New Orleans, Lafayette, Birmingham, and Baton Rouge markets.  Loan origination mix in the second quarter of 2013 was 50% fixed rate and 50% floating rate.  Loans and commitments originated and/or renewed during the second quarter of 2013 totaled $1.2 billion (up 41% on a linked quarter basis).  Energy-related loans outstanding totaled $662 million at June 30, 2013, up $30 million, or 5% compared to March 31, 2013, and equal to approximately 7% of total loans. The Company had no student loans outstanding at June 30, 2013.

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

Period-End Balances ($ Millions)

% Change 

Mix

6/30/12

3/31/13

6/30/13

Year/Year

Qtr/Qtr

Annualized

3/31/13

6/30/13

Commercial

$     4,841

$     5,555

$     5,843

21%

5%

21%

64%

66%

Consumer

1,470

1,735

1,791

22%

3%

13%

20%

20%

Mortgage

236

301

351

49%

16%

66%

3%

4%

Non-FDIC Loans

$     6,547

$     7,591

$     7,985

22%

5%

21%

87%

90%

Covered Assets

1,190

1,004

918

-23%

-9%

-34%

13%

10%

Total Loans

$     7,737

$     8,595

$     8,903

15%

4%

14%

100%

100%

 

Deposits

Total deposits decreased $45 million, or less than 1%, from March 31, 2013 to June 30, 2013.  Noninterest bearing deposits increased $84 million, or 4%, and equated to 19% of total deposits at June 30, 2013.  NOW accounts increased $5 million, or less than 1%, and money market and savings account volume decreased $22 million, or 1%, at June 30, 2013.  Time deposits declined $110 million, or 5% between quarter-ends, including $13 million of wholesale time deposits.  Period-end deposit growth during the second quarter of 2013 was strongest in the Houston, Birmingham, and Memphis markets.

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

Period-End Balances ($ Millions)

% Change 

Mix

6/30/12

3/31/13

6/30/13

Year/Year

Qtr/Qtr

Annualized

3/31/13

6/30/13

Noninterest

$     1,651

$     1,972

$     2,055

24%

4%

17%

19%

19%

NOW Accounts

1,990

2,480

2,485

25%

0%

1%

23%

23%

Savings/MMkt

3,529

4,156

4,134

17%

-1%

-2%

39%

39%

Time Deposits

2,246

2,078

1,968

-12%

-5%

-21%

19%

19%

Total Deposits

$     9,416

$    10,686

$    10,642

13%

0%

-2%

100%

100%

On an average balance and linked quarter basis, noninterest-bearing deposits increased $72 million, or 4% (15% annualized rate), and interest-bearing deposits decreased $138 million, or 2%.  The rate on average interest-bearing deposits in the second quarter of 2013 was 0.42%, a decrease of five basis points on a linked quarter basis.  Approximately $1.7 billion in time deposits are scheduled to re-price over the next 12 months at a weighted average cost of 0.68%.  An additional $0.2 billion in time deposits are scheduled to re-price the following 12 months at a weighted average cost of 1.04%.  During the second quarter of 2013, new and re-priced time deposits were booked at an average cost of 0.32%.  The Company experienced a time deposit retention rate of 83% in the second quarter of 2013 with an average 25 basis point reduction in rate.

Other Assets And Funding

The Company reduced its excess liquidity position in the second quarter of 2013.  Excess liquidity averaged $295 million in the second quarter of 2013, down $335 million, or 53%, on a linked quarter basis.  The excess liquidity was used to fund strong loan growth while the investment portfolio remained stable at $2.1 billion on average in the second quarter of 2013.  On a period-end basis, the investment portfolio equated to $2.1 billion, or 16% of total assets at June 30, 2013, down slightly compared to 17% at March 31, 2013.  The investment portfolio had a modified duration of 3.9 years at June 30, 2013, up compared to 3.1 years at March 31, 2013.  The lengthening duration of the investment portfolio was the result of anticipated slowing prepayment speeds as interest rates increased near the end of the second quarter of 2013. At current prepayment speeds, the investment portfolio is projected to cash flow approximately $537 million over the next 18 months, or 26% of the total investment portfolio.  The Company estimates that a potential increase in interest rates of 100 and 200 basis points at June 30, 2013 would extend the duration of the investment portfolio by 0.6 and 0.7 years, respectively.  The unrealized gain in the portfolio decreased from a $40 million unrealized gain at March 31, 2013, to an $8 million unrealized loss at June 30, 2013.  The average yield on investment securities held steady on a linked quarter basis at 1.92% in the second quarter of 2013.  The Company holds in its investment portfolio primarily government agency securities.  Municipal securities comprised only 10% of total investments at June 30, 2013.  The Company holds no sovereign debt or derivative exposure to foreign counterparties.

The Company paid off $90 million in long-term FHLB borrowings near the end of the first quarter of 2013.  On a linked quarter basis, average long-term debt decreased $118 million, or 29%, and the cost of debt increased 23 basis points to 3.39%.  The cost of average interest bearing liabilities was 0.51% in the second quarter of 2013, a decrease of seven basis points on a linked quarter basis. For the month of June 2013, the average cost of interest bearing liabilities was 0.49%.

Asset Quality

Excluding $444 million in NPAs which were Covered Assets or acquired impaired loans, NPAs at June 30, 2013 were $100 million, up $4 million, or 4%, compared to March 31, 2013.  NPAs equated to 0.86% of total assets at June 30, 2013, compared to 0.83% of total assets at March 31, 2013.  Loans past due 30 days or more (including nonaccruing loans) increased $8 million, or 10%, and represented 1.18% of total loans at June 30, 2013, up compared to 1.13% at March 31, 2013.  Classified assets declined $30 million, or 14%, during the second quarter of 2013.

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

For Quarter Ended:

% or Basis Point Change

     ($ thousands)

6/30/2012

3/31/2013

6/30/2013

Year/Year

Qtr/Qtr

Nonperforming Assets

$   86,501

$   96,001

$   99,567

15%

4%

Past Due Loans

84,653

85,399

93,872

11%

10%

Classified Assets

200,872

213,589

183,414

-9%

-14%

Nonperforming Assets/Assets

0.84%

0.83%

0.86%

2

 bps 

3

 bps 

NPAs/(Loans + OREO)

1.33%

1.27%

1.24%

(9)

 bps 

(3)

 bps 

Classified Assets/Total Assets

1.94%

1.84%

1.59%

(35)

 bps 

(25)

 bps 

(Past Dues & Nonaccruals)/Loans

1.30%

1.13%

1.18%

(12)

 bps 

5

 bps 

Provision For Loan Losses

$    4,271

$   (3,941)

$    3,344

-22%

-185%

Net Charge-Offs/(Recoveries)

1,102

1,170

1,029

-7%

-12%

Provision Less Net Charge-Offs

$    3,169

$   (5,111)

$    2,315

27%

-145%

Net Charge-Offs/Average Loans

0.07%

0.06%

0.05%

(2)

(1)

Allowance For Loan Losses/Loans

1.23%

0.99%

0.84%

(39)

(15)

Allowance for Credit Losses to Total Loans

1.23%

0.99%

0.97%

(26)

(2)

Excluding Covered Assets and acquired impaired loans, troubled debt restructurings at June 30, 2013, totaled $10 million, or 0.13% of total loans (compared to 0.25% of total loans at March 31, 2013).  All but $2 million of the Company's troubled debt restructurings were included in NPAs at June 30, 2013.

Capital Position

The Company maintains favorable capital strength.  At June 30, 2013, the Company reported a tangible common equity ratio of 8.69%, down six basis points compared to March 31, 2013.  At June 30, 2013, the Company's preliminary Tier 1 leverage ratio was 9.59%, up 22 basis points compared to March 31, 2013.  The Company's preliminary total risk-based capital ratio at June 30, 2013 was 13.45%, down 35 basis points compared to March 31, 2013.  The decline in the risk-based capital ratio was due in part to the deployment of excess liquidity that carried a 0% risk weighting into loans that carried a higher risk weighting.

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 second quarter of 2013.  A total of 46,692 shares remain under the currently authorized share repurchase program.

At June 30, 2013, book value per share was $50.65, down $0.68 per share compared to March 31, 2013. Tangible book value per share was $36.30, down $0.63 per share compared to March 31, 2013.  Based on the closing stock price of the Company's common stock of $58.73 per share on July 23, 2013, this price equated to 1.16 times June 30, 2013 book value and 1.62 times June 30, 2013 tangible book value per share.

On June 3, 2013, 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 2.32%.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with 278 combined offices, including 180 bank branch offices and three LPOs in Louisiana, Arkansas, Tennessee, Alabama, Texas, and Florida, 21 title insurance offices in Arkansas and Louisiana, mortgage representatives in 65 locations in 12 states, eight locations with representatives of IBERIA Wealth Advisors in four states, and one IBERIA Capital Partners, L.L.C. office in New Orleans.

The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC."  The Company's market capitalization was approximately $1.7 billion, based on the NASDAQ closing stock price on July 23, 2013.

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

  • FIG Partners, LLC
  • Jefferies & Co., Inc.
  • Keefe, Bruyette & Woods
  • Merion Capital Group
  • Oppenheimer & Co., Inc.
  • Raymond James & Associates, Inc.
  • Robert W. Baird & Company
  • Stephens, Inc.
  • Sterne, Agee & Leach
  • 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, July 24, 2013, beginning at 8:00 a.m. Central Time by dialing 1-800-762-4758. The confirmation code for the call is 297018.  A replay of the call will be available until midnight Central Time on July 31, 2013 by dialing 1-800-475-6701. The confirmation code for the replay is 297018.  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, actual results deviating from the Company's current estimates and assumptions of timing and amounts of cash flows, 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, subsequent Quarterly Reports on Form 10-Q, and other filings with the Securities and Exchange Commission (the "SEC"), available at the SEC's website, http://www.sec.gov, and at 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 

 June 30, 

 March 31, 

2013

2012

% Change

2013

% Change

Income Data (in thousands):

Net Interest Income

$                96,482

$                  93,172

4%

$                    92,871

4%

Net Interest Income  (TE)   (1)

98,878

95,593

3%

95,335

4%

Net Income 

15,590

12,560

24%

717

2074%

Earnings Available to Common Shareholders- Basic

15,590

12,560

24%

717

2074%

Earnings Available to Common Shareholders- Diluted

15,297

12,320

24%

697

2094%

Per Share Data:

Earnings Available to Common Shareholders - Basic

$                     0.53

$                       0.43

24%

$                        0.02

2067%

Earnings Available to Common Shareholders - Diluted

0.53

0.43

24%

0.02

2088%

Operating Earnings (Non-GAAP) (2)

0.80

0.54

48%

0.86

(7%)

Book Value 

50.65

50.68

(0%)

51.33

(1%)

Tangible Book Value (3)

36.30

37.28

(3%)

36.93

(2%)

Cash Dividends

0.34

0.34

-

0.34

-

Closing Stock Price

53.61

50.45

6%

50.02

7%

Key Ratios: (4)

Operating Ratios:

Return on Average Assets

0.49%

0.43%

0.02%

Return on Average Common Equity

4.09%

3.36%

0.19%

Return on Average Tangible Common Equity (3)

5.96%

4.86%

0.55%

Net Interest Margin  (TE)  (1)

3.39%

3.59%

3.23%

Efficiency Ratio

84.4%

80.8%

105.5%

Tangible Efficiency Ratio  (TE)  (1) (3)

81.9%

78.2%

102.4%

Full-time Equivalent Employees

2,611

2,574

2,718

Capital Ratios:

Tangible Common Equity Ratio (Non-GAAP)

8.69%

9.37%

8.75%

Tangible Common Equity to Risk-Weighted Assets

11.03%

13.24%

11.64%

Tier 1 Leverage Ratio

9.59%

10.42%

9.37%

Tier 1 Capital Ratio

12.19%

14.27%

12.54%

Total Risk Based Capital Ratio

13.45%

15.54%

13.80%

Common Stock Dividend Payout Ratio

64.8%

79.9%

N/M

Asset Quality Ratios:

Excluding FDIC Covered Assets and acquired impaired loans

Nonperforming Assets to Total Assets (5)

0.86%

0.84%

0.83%

Allowance for Loan Losses to Loans

0.84%

1.23%

0.99%

Net Charge-offs to Average Loans 

0.05%

0.07%

0.06%

Nonperforming Assets to Total Loans and OREO (5)

1.25%

1.33%

1.27%

 For The Quarter Ended 

 For The Quarter Ended 

 June 30, 

 March 31, 

 December 31, 

 September 30, 

2013

2013

2013

2012

2012

Balance Sheet Summary (in thousands):

End of Period

Average

Average

Average

Average

Excess Liquidity (6)

$              120,451

$                294,544

$                    629,406

$                 432,752

$                   238,203

Total Investment Securities

2,075,298

2,096,166

2,096,229

1,957,542

2,005,975

Loans, Net of Unearned Income

8,903,037

8,748,476

8,543,538

8,384,218

8,016,829

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

7, 938,120

7,753,497

7,454,309

7,212,648

6,810,490

Total Assets

12,823,503

12,881,551

13,075,008

12,692,665

12,182,554

Total Deposits

10,641,718

10,638,478

10,703,883

10,315,944

9,705,957

Total Shareholders' Equity

1,504,761

1,528,606

1,531,068

1,533,561

1,519,338

(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)

Excludes the impact of the adoption of the new accounting standard.

(3)

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

(4)

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

(5)

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

(6)

Excess Liquidity includes interest-bearing deposits in banks and fed funds sold, but excludes liquidity sources and uses from off-balance sheet arrangements.

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

 

 

Table 2 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

BALANCE SHEET (End of Period)

June 30,

March 31,

2013

2012

% Change

2013

% Change

ASSETS

Cash and Due From Banks

$            227,114

$                 195,719

16.0%

$              183,158

24.0%

Interest-bearing Deposits in Banks

120,451

404,327

(70.2%)

443,358

(72.8%)

   Total Cash and Equivalents

347,565

600,046

(42.1%)

626,516

(44.5%)

Investment Securities Available for Sale

1,912,058

1,812,746

5.5%

1,951,548

(2.0%)

Investment Securities Held to Maturity

163,240

188,399

(13.4%)

198,442

(17.7%)

   Total Investment Securities

2,075,298

2,001,145

3.7%

2,149,990

(3.5%)

Mortgage Loans Held for Sale

162,031

180,569

(10.3%)

188,037

(13.8%)

Loans, Net of Unearned Income

8,903,037

7,736,512

15.1%

8,594,975

3.6%

Allowance for Loan Losses

(162,903)

(187,285)

(13.0%)

(189,725)

(14.1%)

   Loans, Net

8,740,134

7,549,227

15.8%

8,405,250

4.0%

Loss Share Receivable

241,040

469,923

(48.7%)

284,471

(15.3%)

Premises and Equipment

296,988

291,718

1.8%

304,353

(2.4%)

Goodwill and Other Intangibles

427,581

395,919

8.0%

428,522

(0.2%)

Other Assets

532,866

632,571

(15.8%)

564,060

(5.5%)

   Total Assets

$       12,823,503

$           12,121,118

5.8%

$        12,951,199

(1.0%)

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing Deposits

$         2,055,333

$             1,651,154

24.5%

$           1,971,809

4.2%

NOW Accounts

2,484,824

1,989,876

24.9%

2,480,305

0.2%

Savings and Money Market Accounts

4,133,770

3,529,060

17.1%

4,155,973

(0.5%)

Certificates of Deposit

1,967,791

2,245,830

(12.4%)

2,078,180

(5.3%)

   Total Deposits

10,641,718

9,415,920

13.0%

10,686,267

(0.4%)

Short-term Borrowings

-

405,000

(1)

-

-

Securities Sold Under Agreements to Repurchase

289,377

235,768

22.7%

294,156

(1.6%)

Trust Preferred Securities

111,862

111,862

0.0%

111,862

0.0%

Other Long-term Debt

171,623

306,036

(43.9%)

211,184

(18.7%)

Other Liabilities

104,162

151,492

(31.2%)

123,660

(15.8%)

   Total Liabilities

11,318,742

10,626,078

6.5%

11,427,129

(0.9%)

Total Shareholders' Equity

1,504,761

1,495,040

0.7%

1,524,070

(1.3%)

   Total Liabilities and Shareholders' Equity

$       12,823,503

$           12,121,118

5.8%

$        12,951,199

(1.0%)

BALANCE SHEET (Average)

June 30,

March 31,

December 31,

September 30,

June 30,

2013

2013

2012

2012

2012

ASSETS

Cash and Due From Banks

$            219,344

$                 220,746

$                              212,404

$              192,891

$                              188,260

Interest-bearing Deposits in Banks

294,544

629,406

432,752

236,653

294,171

Investment Securities

2,096,166

2,096,229

1,957,542

2,005,975

2,048,001

Mortgage Loans Held for Sale

170,620

178,387

212,432

182,543

135,273

Loans, Net of Unearned Income

8,748,476

8,543,538

8,384,218

8,016,829

7,592,677

Allowance for Loan Losses

(183,783)

(245,384)

(196,634)

(180,798)

(173,023)

Loss Share Receivable

268,700

384,319

411,328

448,746

508,443

Other Assets

1,267,484

1,267,767

1,278,623

1,279,715

1,223,299

   Total Assets

$       12,881,551

$           13,075,008

$                        12,692,665

$        12,182,554

$                       11,817,101

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing Deposits

$         2,010,263

$             1,937,890

$                         1,928,361

$           1,773,302

$                         1,640,327

NOW Accounts

2,488,721

2,464,922

2,207,032

2,023,769

1,985,248

Savings and Money Market Accounts

4,113,671

4,170,123

3,935,675

3,701,947

3,524,641

Certificates of Deposit

2,025,823

2,130,948

2,244,876

2,206,939

2,313,176

   Total Deposits

10,638,478

10,703,883

10,315,944

9,705,957

9,463,392

Short-term Borrowings

77

500

9,239

121,957

27,857

Securities Sold Under Agreements to Repurchase

294,712

292,448

262,027

245,486

245,401

Trust Preferred Securities

111,862

111,862

111,862

113,905

111,862

Long-term Debt

181,884

300,071

312,190

324,923

313,451

Other Liabilities

125,932

135,176

147,842

150,988

151,036

   Total Liabilities

11,352,945

11,543,940

11,159,104

10,663,216

10,312,999

Total Shareholders' Equity

1,528,606

1,531,068

1,533,561

1,519,338

1,504,102

   Total Liabilities and Shareholders' Equity

$       12,881,551

$           13,075,008

$                       12,692,665

$        12,182,554

$                       11,817,101

 

Table 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

For The Three Months Ended

INCOME STATEMENT

June 30,

March 31,

2013

2012

% Change

2013

% Change

Interest Income

$       108,177

$         109,283

(1.0%)

$     106,416

1.7%

Interest Expense

11,695

16,111

(27.4%)

13,545

(13.7%)

   Net Interest Income

96,482

93,172

3.6%

92,871

3.9%

(Reversal of) Provision for Loan Losses

1,807

8,895

(79.7%)

(3,377)

(153.5%)

   Net Interest Income After (Reversal of ) Provision for Loan Losses

94,675

84,277

12.3%

96,248

(1.6%)

Service Charges

7,106

6,625

7.3%

6,797

4.5%

ATM / Debit Card Fee Income

2,357

2,166

8.8%

2,183

8.0%

BOLI Proceeds and Cash Surrender Value Income

901

905

(0.4%)

939

(4.1%)

Mortgage Income

17,708

18,185

(2.6%)

18,931

(6.5%)

Gain (Loss) on Sale of Investments, Net

(57)

901

(106.4%)

2,359

(102.4%)

Title Revenue

5,696

5,339

6.7%

5,021

13.4%

Broker Commissions

3,863

3,102

24.5%

3,534

9.3%

Other Noninterest Income

4,915

4,471

10.0%

4,727

4.0%

   Total Noninterest Income

42,489

41,694

1.9%

44,491

(4.5%)

Salaries and Employee Benefits

63,815

58,121

9.8%

62,529

2.1%

Occupancy and Equipment

14,283

12,908

10.7%

15,195

(6.0%)

Amortization of Acquisition Intangibles

1,181

1,289

(8.3%)

1,183

(0.2%)

Other Noninterest Expense

38,082

36,704

3.8%

65,991

(42.3%)

   Total Noninterest Expense

117,361

109,022

7.6%

144,898

(19.0%)

   Income (Loss) Before Income Taxes

19,803

16,949

16.8%

(4,159)

(576.2%)

Income Taxes

4,213

4,389

(4.0%)

(4,876)

(186.4%)

   Net Income 

$         15,590

$           12,560

24.1%

$             717

2073.1%

   Preferred Stock Dividends

-

-

-

-

-

   Earnings Available to Common Shareholders - Basic

15,590

12,560

24.1%

717

2073.8%

   Earnings Allocated to Unvested Restricted Stock

(293)

(240)

21.9%

(20)

1378.8%

   Earnings Available to Common Shareholders - Diluted 

15,297

12,320

24.2%

697

2093.5%

Earnings Per Share, Diluted

$             0.53

$                0.43

23.7%

$            0.02

2086.9%

Impact of Non-Operating Expenses and New Accounting Standard (Non-GAAP)

$             0.27

$                0.11

147.9%

$            0.84

(67.8%)

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

$             0.80

$                0.54

48.4%

$            0.86

(7.1%)

NUMBER OF SHARES OUTSTANDING

Basic Shares - All Classes  (Average)

29,610,315

29,463,811

0.5%

29,502,711

0.4%

Diluted Shares - Common Shareholders (Average)

29,066,906

28,950,806

0.4%

28,979,168

0.3%

Book Value Shares  (Period End)  (1)

29,710,058

29,497,008

0.7%

29,691,781

0.1%

2013

2012

INCOME STATEMENT

Second

First

Fourth

Third

Second

Quarter

Quarter 

Quarter

Quarter

Quarter

Interest Income

$       108,177

$         106,416

$            114,779

$     111,951

$     109,283

Interest Expense

11,695

13,545

14,789

15,225

16,111

   Net Interest Income

96,482

92,871

99,990

96,726

93,172

(Reversal of) Provision for Credit Losses

1,807

(3,377)

4,866

4,053

8,895

   Net Interest Income After (Reversal of) Provision for Loan Losses

94,675

96,248

95,124

92,673

84,277

Total Noninterest Income

42,489

44,491

50,354

46,553

41,694

Total Noninterest Expense

117,361

144,898

113,441

109,848

109,022

   Income (Loss) Before Income Taxes

19,803

(4,159)

32,037

29,378

16,949

Income Taxes

4,213

(4,876)

8,829

8,144

4,389

   Net Income

$         15,590

$                 717

$               23,208

$        21,234

$        12,560

   Preferred Stock Dividends

-

-

-

-

-

   Earnings Available to Common Shareholders - Basic

15,590

717

23,208

21,234

12,560

   Earnings Allocated to Unvested Restricted Stock

(293)

(20)

(428)

(406)

(240)

   Earnings Available to Common Shareholders - Diluted

$         15,297

$                 697

$               22,780

$        20,828

$        12,320

Earnings Per Share, Basic

$             0.53

$                0.02

$                   0.79

$            0.73

$            0.43

Earnings Per Share, Diluted 

$             0.53

$                0.02

$                   0.79

$            0.73

$            0.43

Book Value Per Common Share

$           50.65

$             51.33

$                 51.88

$          51.44

$          50.68

Tangible Book Value Per Common Share

$           36.30

$             36.93

$                 37.34

$          37.07

$          37.28

Return on Average Assets

0.49%

0.02%

0.73%

0.69%

0.43%

Return on Average Common Equity

4.09%

0.19%

6.02%

5.56%

3.36%

Return on Average Tangible Common Equity

5.96%

0.55%

8.62%

7.91%

4.86%

(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 Six Months Ended

INCOME STATEMENT

June 30,

2013

2012

% Change

Interest Income

$       214,593

$         218,470

(1.8%)

Interest Expense

25,239

33,436

(24.5%)

   Net Interest Income

189,354

185,034

2.3%

(Reversal of) Provision for Loan Losses

(1,569)

11,752

(113.4%)

   Net Interest Income After Provision for Loan Losses

190,923

173,282

10.2%

Service Charges

13,903

12,606

10.3%

ATM / Debit Card Fee Income

4,541

4,189

8.4%

BOLI Proceeds and Cash Surrender Value Income

1,840

1,855

(0.8%)

Mortgage Income

36,639

31,903

14.8%

Gain on Sale of Investments, net

2,302

3,737

(38.4%)

Title Revenue

10,717

9,872

8.6%

Broker Commissions

7,397

6,162

20.0%

Other Noninterest Income

9,641

8,766

10.0%

   Total Noninterest Income

86,980

79,090

10.0%

Salaries and Employee Benefits

126,344

112,940

11.9%

Occupancy and Equipment

29,478

25,627

15.0%

Amortization of Acquisition Intangibles

2,364

2,579

(8.3%)

Other Noninterest Expense

104,073

67,750

53.6%

   Total Noninterest Expense

262,259

208,896

25.5%

   Income Before Income Taxes

15,644

43,477

(64.0%)

Income Taxes

(663)

11,523

(105.8%)

   Net Income

$         16,307

$           31,953

(49.0%)

   Preferred Stock Dividends

-

-

-

   Earnings Available to Common Shareholders - Basic

16,307

31,953

(49.0%)

   Earnings Allocated to Unvested Restricted Stock

(313)

(607)

(48.5%)

   Earnings Available to Common Shareholders - Diluted

15,994

31,346

(49.0%)

Earnings Per Share, diluted

$             0.55

$                1.08

(49.1%)

 

Table 5 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

LOANS

June 30,

March 31,

2013

2012

% Change

2013

% Change

Residential Mortgage Loans:

518,496

418,789

23.8%

478,617

8.3%

Commercial Loans:

   Real Estate

3,744,238

3,313,863

13.0%

3,587,692

4.4%

   Business

2,687,920

2,306,160

16.6%

2,621,644

2.5%

      Total Commercial Loans

6,432,158

5,620,023

14.5%

6,209,336

3.6%

Consumer Loans:

   Indirect Automobile

351,631

309,855

13.5%

342,117

2.8%

   Home Equity

1,278,823

1,159,899

10.3%

1,261,171

1.4%

   Automobile

76,427

49,411

54.7%

66,240

15.4%

   Credit Card Loans

53,026

46,519

14.0%

51,642

2.7%

   Other 

192,476

132,016

45.8%

185,852

3.6%

      Total Consumer Loans

1,952,383

1,697,700

15.0%

1,907,022

2.4%

      Total Loans 

8,903,037

7,736,512

15.1%

8,594,975

3.6%

Allowance for Loan Losses

(162,903)

(187,285)

(189,725)

   Loans, Net

$   8,740,134

$         7,549,227

$         8,405,250

Reserve for Unfunded Commitments (1)

(10,342)

-

100.0%

-

100.0%

Allowance for Credit Losses

(173,246)

(187,285)

(7.5%)

(189,725)

(8.7%)

ASSET QUALITY DATA (2)

June 30,

March 31,

2013

2012

% Change

2013

% Change

Nonaccrual Loans

$       409,775

$            625,938

(34.5%)

$            463,075

(11.5%)

Foreclosed Assets

1,647

455

262.2%

1,375

19.8%

Other Real Estate Owned

127,960

129,463

(1.2%)

130,461

(1.9%)

Accruing Loans More Than 90 Days Past Due 

4,126

8,270

(50.1%)

5,697

(27.6%)

Total Nonperforming Assets

$       543,508

$            764,126

(28.9%)

$            600,608

(9.5%)

Loans 30-89 Days Past Due

$         35,204

$              46,391

(24.1%)

$              33,227

5.9%

Nonperforming Assets to Total Assets 

4.24%

6.30%

(32.8%)

4.63%

(8.5%)

Nonperforming Assets to Total Loans and OREO 

6.02%

9.71%

(38.1%)

6.87%

(12.4%)

Allowance for Loan Losses to Nonperforming Loans (3)

39.4%

29.5%

33.3%

40.6%

(2.9%)

Allowance for Loan Losses to Nonperforming Assets

30.0%

24.5%

22.3%

31.6%

(5.3%)

Allowance for Loan Losses to Total Loans

1.83%

2.42%

(24.4%)

2.21%

(17.1%)

Allowance for Credit Losses to Nonperforming Loans (1) (3)

41.9%

29.5%

41.7%

40.6%

3.2%

Allowance for Credit Losses to Nonperforming Assets (1)

31.9%

24.5%

30.1%

31.6%

0.9%

Allowance for Credit Losses to Total Loans (1)

1.95%

2.42%

(19.6%)

2.21%

(11.8%)

Year to Date Charge-offs 

$           4,375

$                 4,627

(5.5%)

$                 2,103

N/M

Year to Date Recoveries

(2,029)

(1,815)

11.7%

(893)

N/M

Year to Date Net Charge-offs (Recoveries)

$           2,346

$                 2,812

(16.6%)

$                 1,210

N/M

Quarter to Date Net Charge-offs (Recoveries)

$           1,136

$                 1,118

1.7%

$                 1,210

(6.1%)

Quarter to Date Net Charge-offs to Average Loans (Annualized)

0.05%

0.06%

(12.0%)

0.06%

(9.3%)

(1) During the second quarter of 2013, the Company segregated its allowance for credit losses into an allowance for loan losses and a reserve for unfunded commitments, which is included in other liabilities on its balance sheet.

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

(3) 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 6 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

LOANS (Ex-Covered Assets and Acquired Impaired Loans)(1)

June 30,

March 31,

2013

2012

% Change

2013

% Change

Residential Mortgage Loans:

350,458

235,221

49.0%

300,555

16.6%

Commercial Loans:

   Real Estate

3,184,515

2,626,391

21.3%

2,970,535

7.2%

   Business

2,615,495

2,179,919

20.0%

2,531,272

3.3%

      Total Commercial Loans

5,800,010

4,806,310

20.7%

5,501,807

5.4%

Consumer Loans:

   Indirect Automobile

351,586

309,757

13.5%

342,067

2.8%

   Home Equity

1,118,594

937,299

19.3%

1,088,685

2.7%

   Automobile

76,269

49,402

54.4%

66,237

15.1%

   Credit Card Loans

52,243

45,693

14.3%

50,823

2.8%

   Other 

188,960

123,034

53.6%

182,600

3.5%

      Total Consumer Loans

1,787,652

1,465,185

22.0%

1,730,412

3.3%

      Total Loans 

7,938,120

6,506,716

22.0%

7,532,774

5.4%

Allowance for Loan Losses

(66,481)

(79,999)

(74,217)

   Loans, Net

$  7,871,639

$         6,426,717

$         7,458,557

Reserve for Unfunded Commitments (2)

(10,342)

-

100.0%

-

100.0%

Allowance for Credit Losses

(76,823)

(79,999)

(4.0%)

(74,217)

3.5%

ASSET QUALITY DATA (Ex-Covered Assets and Acquired Impaired Loans) (1)

June 30,

March 31,

2013

2012

% Change

2013

% Change

Nonaccrual Loans

$         71,556

$              66,545

7.5%

$              66,659

7.3%

Foreclosed Assets

32

-

100.0%

48

(32.5%)

Other Real Estate Owned

25,861

18,681

38.4%

26,467

(2.3%)

Accruing Loans More Than 90 Days Past Due 

2,118

1,275

66.2%

2,827

(25.1%)

Total Nonperforming Assets

$         99,567

$              86,501

15.1%

$              96,001

3.7%

Loans 30-89 Days Past Due

$         20,198

$              16,833

20.0%

$              15,912

26.9%

Troubled Debt Restructurings (3)

10,425

22,630

(53.9%)

18,508

(43.7%)

Current Troubled Debt Restructurings (4)

1,813

669

171.0%

2,124

(14.6%)

Nonperforming Assets to Total Assets 

0.86%

0.84%

2.9%

0.83%

3.8%

Nonperforming Assets to Total Loans and OREO 

1.25%

1.33%

(5.7%)

1.27%

(1.6%)

Allowance for Loan Losses to Nonperforming Loans (5)

90.2%

118.0%

(23.5%)

106.8%

(15.5%)

Allowance for Loan Losses to Nonperforming Assets

66.8%

92.5%

(27.8%)

77.3%

(13.6%)

Allowance for Loan Losses to Total Loans

0.84%

1.23%

(31.9%)

0.99%

(15.0%)

Allowance for Credit Losses to Nonperforming Loans (2) (5)

104.3%

118.0%

(11.6%)

106.8%

(2.4%)

Allowance for Credit Losses to Nonperforming Assets (2) (5)

77.2%

92.5%

(16.6%)

77.3%

(0.2%)

Allowance for Credit Losses to Total Loans (2) (5)

0.97%

1.23%

(21.3%)

0.99%

(1.8%)

Year to Date Charge-offs 

$           4,227

$                 4,237

(0.2%)

$                 2,063

N/M

Year to Date Recoveries

(2,028)

(1,796)

13.0%

(893)

N/M

Year to Date Net Charge-offs (Recoveries)

$           2,199

$                 2,441

(9.9%)

$                 1,170

N/M

Quarter to Date Net Charge-offs (Recoveries)

$           1,029

$                 1,102

(6.7%)

$                 1,170

(12.1%)

Quarter to Date Net Charge-offs to Average Loans (Annualized)

0.05%

0.07%

(23.1%)

0.06%

(16.4%)

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

(2) During the second quarter of 2013, the Company segregated its allowance for credit losses into an allowance for loan losses and a reserve for unfunded commitments, which is included in other liabilities on its balance sheet.

(3) Troubled debt restructurings meeting past due and nonaccruing criteria are included in loans past due and nonaccrual loans above.

(4) Current troubled debt restructurings are defined as troubled debt restructurings not past due or on nonaccrual status for the respective periods.

(5) 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 7 - Non-Covered and Net Covered Loan Portfolio Volumes And Yields ($ in Millions)

2Q 2012

3Q 2012

4Q 2012

1Q 2013

2Q 2013

Average Balance

Yield

Average Balance

Yield

Average Balance

Yield

Average Balance

Yield

Average Balance

Yield

Non Covered Loans

$   6,374

4.68%

$   6,863

4.55%

$   7,272

4.52%

$   7,504

4.44%

$   7,794

4.40%

FDIC Covered Loans

$   1,219

16.66%

$   1,154

18.88%

$   1,112

17.53%

$   1,039

16.05%

$      955

12.62%

Covered Loans, net of Indemnification Asset Amortization

$   1,727

7.44%

$   1,603

7.60%

$   1,523

7.68%

$   1,424

5.35%

$   1,223

5.11%

Table 8 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

Taxable Equivalent Basis

(dollars in thousands)

For The Quarter Ended

June 30, 2013

March 31, 2013

June 30, 2012

Average 

Average 

Average 

Average 

Average 

Average 

Interest 

Balance

Yield/Rate (%)

Balance 

Yield/Rate (%)

Balance

Yield/Rate (%)

ASSETS

Earning  Assets:

Loans Receivable: 

Mortgage Loans

7,526

$          494,531

6.09%

$          472,112

6.32%

$          446,189

7.42%

Commercial Loans (TE) (1)

81,049

6,321,599

5.17%

6,205,785

5.80%

5,510,619

6.65%

Consumer and Other Loans

26,667

1,932,346

5.54%

1,865,641

5.91%

1,635,869

6.25%

Total Loans 

115,242

8,748,476

5.30%

8,543,538

5.85%

7,592,677

6.61%

Loss Share Receivable

(18,130)

268,700

-26.69%

384,319

-28.83%

508,443

-22.16%

       Total Loans and Loss Share Receivable

97,112

9,017,176

4.35%

8,927,857

4.36%

8,101,120

4.80%

Mortgage Loans Held for Sale

1,351

170,620

3.17%

178,387

2.97%

135,273

3.64%

Investment  Securities (TE) (1)(2)

8,978

2,059,502

1.92%

2,042,275

1.92%

1,992,933

2.40%

Other  Earning Assets

736

338,668

0.87%

678,917

0.52%

348,267

0.84%

Total  Earning Assets

108,177

11,585,966

3.80%

11,827,436

3.70%

10,577,593

4.20%

 Allowance for Loan Losses 

(183,783)

(245,384)

(173,023)

Nonearning Assets

1,479,368

1,492,956

1,412,531

Total Assets

$    12,881,551

$    13,075,008

$    11,817,101

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities

   Deposits:

      NOW Accounts

1,983

$       2,488,721

0.32%

$       2,464,922

0.32%

$       1,985,248

0.38%

      Savings and Money Market Accounts

2,705

4,113,671

0.26%

4,170,123

0.35%

3,524,641

0.48%

      Certificates of Deposit

4,372

2,025,823

0.87%

2,130,948

0.89%

2,313,176

1.14%

         Total Interest-bearing Deposits

9,060

8,628,215

0.42%

8,765,993

0.47%

7,823,065

0.65%

   Short-term Borrowings

121

294,789

0.16%

292,948

0.19%

273,258

0.24%

   Long-term Debt

2,514

293,746

3.39%

411,933

3.16%

425,313

3.07%

         Total Interest-bearing Liabilities

11,695

9,216,750

0.51%

9,470,874

0.58%

8,521,636

0.76%

Noninterest-bearing Demand Deposits

2,010,263

1,937,890

1,640,327

Noninterest-bearing Liabilities

125,932

135,176

151,036

         Total Liabilities

11,352,945

11,543,940

10,312,999

Shareholders' Equity

1,528,606

1,531,068

1,504,102

         Total Liabilities and Shareholders' Equity

$    12,881,551

$    13,075,008

$    11,817,101

Net Interest Spread

$            96,482

3.29%

$            92,871

3.12%

$            93,172

3.45%

Tax-equivalent Benefit

2,396

0.08%

2,464

0.08%

2,421

0.09%

Net Interest Income (TE) / Net Interest Margin (TE) (1)

$            98,878

3.39%

$            95,335

3.23%

$            95,593

3.59%

(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)  Balances exclude unrealized gain or loss on securities available for sale and impact of trade date accounting.

 

Table 9 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

Taxable Equivalent Basis

(dollars in thousands)

For The Six Months Ended

June 30, 2013

June 30, 2012

Average 

Average 

Average 

Average 

Interest 

Balance

Yield/Rate (%)

Interest 

Balance

Yield/Rate (%)

ASSETS

Earning  Assets:

Loans Receivable: 

Mortgage Loans

14,984

$           483,383

6.20%

16,737

$          458,309

7.31%

Commercial Loans (TE) (1)

169,485

6,264,012

5.48%

182,281

5,436,569

6.73%

Consumer and Other Loans

53,839

1,899,178

5.72%

49,791

1,592,055

6.29%

Total Loans 

238,308

8,646,573

5.57%

248,809

7,486,933

6.67%

Loss Share Receivable

(45,831)

326,190

-27.95%

(56,411)

541,110

-20.62%

       Total Loans and Loss Share Receivable

192,477

8,972,763

4.35%

192,398

8,028,043

4.84%

Mortgage Loans Held for Sale

2,676

174,482

3.07%

2,281

126,230

3.61%

Investment  Securities (TE) (1)(2)

17,838

2,050,935

1.92%

22,391

1,990,068

2.45%

Other  Earning Assets

1,602

507,853

0.64%

1,400

366,562

0.77%

Total  Earning Assets

214,593

11,706,033

3.75%

218,470

10,510,903

4.23%

 Allowance for Loan Losses 

(214,414)

(179,487)

Nonearning Assets

1,486,126

1,421,175

Total Assets

$     12,977,745

$    11,752,591

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities

   Deposits:

      NOW Accounts

3,927

$        2,476,888

0.32%

3,799

$       1,954,809

0.39%

      Savings and Money Market Accounts

6,261

4,141,741

0.30%

8,585

3,502,857

0.49%

      Certificates of Deposit

9,026

2,078,095

0.88%

14,225

2,379,092

1.20%

         Total Interest-bearing Deposits

19,214

8,696,724

0.45%

26,609

7,836,758

0.68%

   Short-term Borrowings

262

293,874

0.18%

309

248,662

0.25%

   Long-term Debt

5,763

352,513

3.25%

6,518

430,822

2.99%

         Total Interest-bearing Liabilities

25,239

9,343,111

0.54%

33,436

8,516,242

0.79%

Noninterest-bearing Demand Deposits

1,974,276

1,585,416

Noninterest-bearing Liabilities

130,528

150,491

         Total Liabilities

11,447,915

10,252,149

Shareholders' Equity

1,529,830

1,500,442

         Total Liabilities and Shareholders' Equity

$     12,977,745

$    11,752,591

Net Interest Spread

$           189,354

3.20%

$          185,034

3.44%

Tax-equivalent Benefit

4,860

0.08%

4,793

0.09%

Net Interest Income (TE) / Net Interest Margin (TE) (1)

$           194,214

3.31%

$          189,827

3.59%

(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)  Balances exclude unrealized gain or loss on securities available for sale and impact of trade date accounting.

 

Table 10 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(dollars in thousands, except per share data)

For The Quarter Ended

June 30, 2013

March 31, 2013

June 30, 2012

Net Interest Income (GAAP)

$             96,482

$                        92,871

$             93,172

Effect of Tax Benefit on Interest Income

2,396

2,464

2,421

Net Interest Income (TE) (Non-GAAP) (1)

98,878

95,335

95,593

Noninterest Income (GAAP)

42,489

44,491

41,694

Effect of Tax Benefit on Noninterest Income

485

506

487

Noninterest Income (TE) (Non-GAAP) (1)

42,974

44,997

42,181

Taxable Equivalent Revenues (Non-GAAP) (1)

141,852

140,332

137,774

   Securities Losses (Gains)

57

(2,359)

(901)

   Impact of New Accounting Standard

4,967

5,453

-

   Other noninterest income

-

-

-

Taxable Equivalent Operating Revenues (Non-GAAP) (1)

$           146,876

$                      143,426

$           136,873

Total Noninterest Expense (GAAP)

$           117,361

$                      144,898

$           109,022

Less Intangible Amortization Expense

(1,181)

(1,183)

(1,289)

Tangible Noninterest Expense (Non-GAAP) (2)

116,180

143,715

107,733

Merger-related expenses

-

157

456

Severance expenses

1,670

97

1,053

Occupancy expenses and branch closure expenses

4,925

375

2,743

Impairment of indemnification asset

-

31,813

-

Debt prepayment

-

2,307

-

Termination of debit card rewards program

450

-

-

Professional expenses and litigation settlements

150

-

1,661

Tangible Operating Noninterest Expense (Non-GAAP) (2)

$           108,985

$                      108,966

$           101,820

Return on Average Common Equity (GAAP)

4.09%

0.19%

3.36%

Effect of Intangibles (2)

1.87%

0.36%

1.50%

Effect of Non Operating Revenues and Expenses

2.88%

9.04%

1.19%

Operating Return on Average Tangible Common Equity (Non-GAAP) (2)

8.85%

9.59%

6.05%

Efficiency Ratio (GAAP)

84.5%

105.5%

80.8%

    Effect of Tax Benefit Related to Tax Exempt Income

(1.8%)

(2.2%)

(1.7%)

 Efficiency Ratio (TE) (Non-GAAP)  (1)  

82.7%

103.3%

79.1%

    Effect of Amortization of Intangibles

(0.8%)

(0.8%)

(0.9%)

    Effect of Non-Operating Items and New Accounting Standard

(7.7%)

(26.5%)

(3.8%)

Tangible Operating Efficiency Ratio (TE)(Non-GAAP) (1) (2)

74.2%

76.0%

74.4%

(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.

 

Table 11 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES(1) 

(dollars in thousands)

For The Quarter Ended

June 30, 2013

March 31, 2013

June 30, 2012

Dollar Amount

Dollar Amount

Dollar Amount

Pre-tax 

After-tax (2)

 Per share 

Pre-tax 

After-tax (2)

 Per share 

Pre-tax 

After-tax (2)

 Per share 

Net Income (Loss) (GAAP)

$                19,803

$                        15,590

$               0.53

$ (4,159)

$                 717

$           0.02

$ 16,949

$         12,560

$           0.43

Noninterest income adjustments

Loss (Gain) on sale of investments

57

37

0.00

(2,359)

(1,533)

(0.05)

(901)

(586)

(0.02)

Other noninterest income

-

-

-

-

-

-

-

-

-

Noninterest expense adjustments

Merger-related expenses

-

-

-

157

102

0.00

456

296

0.01

Severance expenses

1,670

1,086

0.04

97

63

0.00

1,053

685

0.02

Impairment of indemnification asset

-

-

-

31,813

20,678

0.70

-

-

-

Debt prepayment

-

-

-

2,307

1,500

0.05

-

-

-

Occupancy expenses and branch closure expenses

4,925

3,201

0.11

375

244

0.01

2,743

1,783

0.06

Termination of debit card rewards program

450

293

0.01

-

-

-

-

-

-

Professional expenses and litigation settlements

150

97

0.00

-

-

-

1,661

1,080

0.04

Operating earnings (Non-GAAP) (3)

27,055

20,304

0.69

28,231

21,771

0.74

21,961

15,818

0.54

Covered and acquired impaired (reversal of) provision for loan losses

(1,537)

(999)

(0.03)

565

367

0.01

4,624

3,006

0.10

Other (reversal of) provision for loan losses

3,344

2,174

0.07

(3,941)

(2,562)

(0.09)

4,271

2,776

0.09

Pre-provision operating earnings (Non-GAAP) (3)

$                28,862

$                        21,479

$               0.73

$ 24,855

$           19,576

$           0.66

$ 30,856

$         21,600

$           0.73

Net Income (Loss) (GAAP)

$                19,803

$                        15,590

$               0.53

$ (4,159)

$                 717

$           0.02

$ 16,949

$         12,560

$           0.43

Impact of adoption of new accounting standard (4)

4,967

3,228

0.11

5,453

3,544

0.12

-

-

-

Earnings less impact of new accounting standard (Non-GAAP)

$                24,770

$                        18,818

$               0.64

$   1,294

$             4,262

$           0.14

$ 16,949

$         12,560

$           0.43

Operating earnings including the impact of the adoption of new accounting standard (Non-GAAP)

$                27,055

$                        20,304

$               0.69

$ 28,231

$           21,771

$           0.74

$ 21,961

$         15,818

$           0.54

Impact of adoption of new accounting standard (4)

4,967

3,228

0.11

5,453

3,544

0.12

-

-

-

Operating earnings less impact of new accounting standard (Non-GAAP)

$                32,022

$                        23,532

$               0.80

$ 33,684

$           25,315

$           0.86

$ 21,961

$         15,818

$           0.54

(1) Per share amounts may not appear to foot due to rounding

(2) After-tax amounts estimated based on a 35% marginal tax rate

(3) Includes the impact of the adoption of ASU 2012-06 in the three-month periods ending June 30, 2013 and March 31, 2013

(4) Adjustments represent additional amortization on the Company's loss share receivable due to the adoption of ASU 2012-06 for the three month-periods ending June 30, 2013 and March 31, 2013.  The amounts included above represents the incremental amortization as calculated using the yield on the covered portfolio for the three month period ending December 31, 2012. The Company expects the additional amortization (calculated on the same basis as the amount above) over the next four quarters to be as follows:

Quarter Ended

Pre-tax Amount

After-tax Amount (2)

Per Share (5)

9/30/2013

$                  5,085

$                        3,305

$               0.11

12/31/2013

4,017

2,611

0.09

3/31/2014

3,315

2,155

0.07

6/30/2014

2,541

1,652

0.06

(5) Per share amounts have been calculated using a sharecount that is consistent with the fully diluted sharecount for the quarter ended June 30, 2013

 

SOURCE IBERIABANK Corporation



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