IBERIABANK Corporation Reports Second Quarter Results

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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