IBERIABANK Corporation Reports Third Quarter Results

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IBERIABANK Corporation

Oct 21, 2015, 05:55 ET

LAFAYETTE, La., Oct. 21, 2015 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 128-year-old IBERIABANK (www.iberiabank.com), reported operating results for the third quarter ended September 30, 2015.  For the quarter, the Company reported income available to common shareholders of $42.5 million, or $1.03 fully diluted earnings per common share ("EPS").  In the third quarter of 2015, the Company incurred non-operating expenses net of non-operating revenue equal to $2.3 million on a pre-tax basis, or $0.04 per share on an after-tax basis.  Excluding non-operating items, EPS in the third quarter of 2015 was $1.07 per common share on a non-GAAP operating basis (refer to press release supplemental table.) The $1.07 operating EPS results in the third quarter of 2015 was a record for the Company.

Daryl G. Byrd, President and Chief Executive Officer, commented, "We continue to work diligently to improve our operating results while maintaining the favorable level of high-quality growth that we delivered consistently over the last 16 years.  Our results in the third quarter of 2015 continued to show progress in that regard.  We achieved 15% annualized loan growth, our operating EPS improved on a linked-quarter basis, our reported margin met our guidance and the cash margin gained two basis points, our asset quality ratios improved, and we strengthened our capital position. Year-to-date, we have aggressively engaged in a 'risk-off' trade by reducing energy, indirect automobile, and certain market credit exposure by $361 million which suppressed near-term earnings but will benefit our profitability in 2016 and thereafter.  We continue to work assertively to add to our expense savings and revenue enhancement initiatives as we strive to achieve our goals for this year and next year."

Byrd continued, "Based on the sustained low interest rate environment and our current expectations and assumptions, our guidance range for operating EPS for the fourth quarter of 2015 is in the range of $1.10 to $1.15 per share, which would equate to a 12% to 13% increase in full-year 2015 operating EPS compared to the prior year.  We estimate that each 25-basis point increase in the Federal Funds rate would positively influence our quarterly after-tax EPS by six cents per common share."

Highlights for the third quarter of 2015 and at September 30, 2015:


  • In addition to record operating EPS, the Company achieved record levels of commercial loan pipeline, mortgage origination volume, title income, and retail brokerage revenues in the third quarter of 2015.
  • On a linked quarter basis, operating revenues increased $4.5 million, or 2%, while operating expenses increased $4.0 million, or 3%.  Operating expenses were impacted by the timing of the Georgia Commerce acquisition. Georgia Commerce had three months of operating expenses in the third quarter of 2015, compared to one month of operating expenses in the second quarter of 2015.
  • The net interest margin decreased two basis points on a linked quarter basis to 3.50%, which was consistent with management's expectations.  The Company's cash margin improved two basis points on a linked quarter basis.
  • Energy-related loans declined $68 million, or 9%, between June 30, 2015 and September 30, 2015, and equated to 5.1% of total loans at September 30, 2015.  At September 30, 2015, the Company had accrued approximately $19 million in aggregate reserves for energy-related loans and unfunded commitments.  The Company continues to forecast little or no losses on the exploration and production or midstream energy loans outstanding (which constituted 64% of energy loans outstanding at September 30, 2015) and manageable losses in the service company portfolio.
  • Total loan growth was $166 million, or 1%, between June 30, 2015 and September 30, 2015.  Despite a $109 million decline in energy-related and indirect automobile loans between quarter-ends, legacy loan growth, which excludes all assets covered under FDIC loss share agreements and other non-covered acquired assets (collectively, "Acquired Assets"), increased $384 million, or 4% (15% annualized rate).
  • Total deposits increased $184 million, or 1%, between quarter-ends, which included non-interest-bearing deposit growth of $226 million, or 5% (22% annualized basis).
  • On August 5, 2015, the Company further strengthened its capital position through the sale of perpetual preferred stock with gross proceeds equal to approximately $80 million.

Table A - Summary Financial Results

(Dollars in thousands, except per share data)










For the Three Months Ended

9/30/2015

6/30/2015

% Change

9/30/2014(1)

% Change

Net income

$        42,475

$        30,836

37.7

$         30,893

37.5

Earnings per common share - diluted

1.03

0.79

30.4

0.92

12.0









Average gross loans and leases

$ 14,009,601

$ 13,297,724

5.4

$  11,009,833

27.2

Average total deposits

16,369,564

15,132,197

8.2

12,222,997

33.9

Net interest margin (TE) (2)

3.50

%

3.52

%

3.49

%











OPERATING BASIS (NON-GAAP) (3):









Total revenues

$      210,374

$      205,924

2.2

$       168,281

25.0

Total non-interest expense

140,497

136,450

3.0

113,716

23.6

Earnings per common share - diluted

1.07

1.05

1.9

1.04

2.9

Tangible efficiency ratio (TE) (2)

64.8

%

64.4

%

65.6

%

Return on average assets

0.89

0.89


0.89

Return on average tangible common equity

11.18

11.14


11.29

Net interest margin (TE) - cash basis (4)

3.31

3.29


3.36












(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015, and errors in mortgage income during the third quarter of 2014, as previously disclosed.

(2)

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%.

(3)

See Table 11 and Table 12 for GAAP to Non-GAAP reconciliations.

(4)

See Table 10 for adjustments related to purchase discounts on acquired loans and related accretion and the impact of the FDIC indemnification asset.

Operating Results

On a linked quarter basis, average loan volume (including the FDIC loss share receivable) increased $703 million, or 5%, and the associated yield declined two basis points.  Over that period, average legacy loans increased $424 million, or 4%, with an increase in yield of two basis points, and acquired loans (including the FDIC loss share receivable) increased $279 million, or 9%, and the yield declined 23 basis points due to the mix of lower yielding loans recently acquired.  All other average earning assets, including investment securities, mortgage loans held for sale, and interest-bearing deposits in other institutions, increased a total of $320 million, or 10%.

On a linked quarter basis, average earning assets increased $1.0 billion, or 6%, and the average earning asset yield decreased one basis point. Average interest-bearing liabilities increased $602 million, or 5%, and the cost of interest-bearing liabilities increased one basis point.  As a result, the net interest spread and net interest margin each decreased two basis points.  On a linked quarter basis, tax-equivalent net interest income increased $10 million, or 7%, as average earning assets increased significantly and the net interest margin decreased slightly.

In the third quarter of 2015, non-interest income decreased $4.0 million, or 7%, compared to the second quarter of 2015.  Non-operating income totaled $2.2 million in the third quarter of 2015, primarily due to a $1.9 million gain on the sale/leaseback of a building.  Operating non-interest income decreased $5.0 million, or 8%, on a linked quarter basis.  The primary changes in operating non-interest income on a linked quarter basis were:

  • Decreased mortgage income of $4.5 million, or 18%; and
  • Decreased energy capital markets income of $2.4 million, or 77%; partially offset by
  • Increased service charge income of $1.2 million, or 12%;
  • Increased retail brokerage commissions of $0.7 million, or 31%;
  • Increased title revenues of $0.5 million, or 8%; and
  • Increased credit card fee income of $0.4 million, or 19%.

In the third quarter of 2015, the Company originated $720 million in residential mortgage loans, up $20 million, or 3%, on a linked quarter basis.  Client loan refinancing opportunities accounted for approximately 19% of mortgage loan applications in the third quarter of 2015, down compared to 22% in the second quarter of 2015.  The Company sold $726 million in mortgage loans during the third quarter of 2015, up $63 million, or 10%, on a linked quarter basis.  Loans held for sale declined from $221 million at June 30, 2015, to $202 million at September 30, 2015.  The mortgage origination locked pipeline decreased $46 million, or 14%, between June 30, 2015, and September 30, 2015, to $283 million at quarter-end.  At October 16, 2015, the locked pipeline was $289 million, up $6 million, or 2%, compared to September 30, 2015.  The mortgage loan origination business primarily focuses on retail mortgage loans originated by the Company.

Assets under management at IBERIA Wealth Advisors ("IWA") were $1.4 billion at September 30, 2015, down 1% compared to June 30, 2015.  Revenues for IWA decreased 2% on a linked quarter basis, and were up 19% compared to the third quarter of 2014.  IBERIA Financial Services revenues increased 31% on a linked quarter basis, and were up 21% compared to the third quarter of 2014.  IBERIA Capital Partners ("ICP") revenues decreased 77% on a linked quarter basis, and were down 74% compared to the third quarter of 2014.

Non-interest expense decreased $8.2 million, or 5%, on a linked quarter basis, while operating expense increased $4.0 million, or 3%.  Operating expense changes included the following on a linked-quarter basis:

  • Increased compensation and benefit costs of $2.0 million, or 3%, primarily due to:
      • Increased personnel expenses of $1.2 million attributable to Georgia Commerce associates for two additional months in the third quarter of 2015; and
      • Increased medical/hospitalization expenses of $0.8 million;
  • Increased occupancy and equipment expense of $0.7 million, or 4%;
  • Increased professional services of $0.7 million, or 17%; and
  • Increased provision for unfunded commitment of $0.9 million.

The Company's tangible efficiency ratio in the third quarter of 2015 was 64.8%, stable on a linked quarter basis due primarily to seasonal factors.  The Company continues to work expense savings and revenue enhancement initiatives intended to achieve the targeted tangible efficiency ratio of 60% by the fourth quarter of 2016.


Table B - Summary Financial Condition Results

(Dollars in thousands, except per share data)














As of and For the Three Months Ended

9/30/2015

6/30/2015

% Change

9/30/2014 (1)

% Change

PERIOD-END BALANCES:












Total loans and leases

$ 14,117,019

$ 13,950,563

1.2

$    11,080,887

27.4

Legacy loans and leases

10,779,258

10,395,553

3.7

9,179,942

17.4

Total deposits

16,303,065

16,119,541

1.1

12,377,691

31.7












ASSET QUALITY RATIOS (LEGACY):












Past due loans to total loans(2)

0.64

%

0.78

%


0.55

%


Non-performing assets to total assets(3)

0.43

0.55



0.46



Classified assets to total assets(4)

0.83

0.84



0.65
















CAPITAL RATIOS:












Tangible common equity ratio (Non-GAAP) (5)

8.75

%

8.68

%


8.45

%


Tier 1 leverage ratio

9.33

9.24



9.21



Total risk-based capital ratio

12.15

11.49



12.40
















PER COMMON SHARE DATA:












Book value

$          58.49

$          57.53

1.7

$             54.30

7.7

Tangible book value (6)

39.95

39.00

2.4

37.81

5.7

Closing stock price

58.21

68.23

(14.7)

62.51

(6.9)

Cash dividends

0.34

0.34

—

0.34

—












(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015, and errors in mortgage income during the third quarter of 2014, as previously disclosed.

(2)

Past due loans include non-accruing loans.

(3)

Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets.

(4)

Classified assets consist of $133 million, $131 million and $88 million at September 30, 2015, June 30, 2015 and September 30, 2014, respectively.

(5)

See Table 12 for the GAAP to Non-GAAP reconciliation.

(6)

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

Loans 

Total loans increased $166 million, or 1%, between June 30, 2015, and September 30, 2015.  Over that period, the acquired loan portfolio decreased $217 million, or 6%, and legacy loans increased $384 million, or 4% (15% annualized rate), including a decline in energy-related loans of $68 million, or 9%, and a decline in indirect automobile loans of $41 million, or 13%. During the third quarter, legacy commercial loans increased $276 million, or 4% (which included $67 million in small business loan growth, up 7%, or 28% annualized rate), legacy consumer loans increased $63 million, or 3% (11% annualized rate), and legacy mortgage loans increased $44 million, or 7% (28% annualized rate).  Period-end legacy loan growth during the third quarter of 2015 was strongest in the Orlando, Atlanta, Tampa, New Orleans, and Sarasota markets.  Funded loan origination and renewal mix in the third quarter of 2015 was 52% fixed rate and 48% floating rate, and total loans outstanding (excluding non-accruals) were 47% fixed and 53% floating.  Loans and commitments originated and/or renewed during the third quarter of 2015 totaled $1.3 billion (down 8% on a linked quarter basis).

Table C - Period-End Loans

(Dollars in thousands, except per share data)
















As of and For the Three Months Ended





Linked Qtr Change

Year/Year Change

Mix

9/30/2015

6/30/2015

9/30/2014

$

%

Annualized

$

%

9/30/2015

6/30/2015

Legacy loans:















Commercial

$   7,815,161

$   7,538,703

$   6,621,485

276,458

3.7 %

14.7 %

1,193,676

18.0 %

73 %

73 %

Residential mortgage

660,543

616,497

497,075

44,046

7.1 %

28.6 %

163,468

32.9 %

6 %

6 %

Consumer

2,303,554

2,240,353

2,061,382

63,201

2.8 %

11.3 %

242,172

11.7 %

21 %

21 %

Total legacy loans

10,779,258

10,395,553

9,179,942

383,705

3.7 %

14.8 %

1,599,316

17.4 %

100 %

100 %















Acquired loans:















Balance at beginning of period

3,555,010

2,978,592

2,067,537

576,418

19.4 %


$  1,487,473

71.9


Loans acquired during the period

—

801,126

—

(801,126)

(100.0)%


—

0.0


Net paydown activity

(217,249)

(224,708)

(166,592)

7,459

(3.3)%


(50,657)

30.4


Total acquired loans

3,337,761

3,555,010

1,900,945

(217,249)

(6.1)%


1,436,816

7.6


Total loans

$ 14,117,019

$ 13,950,563

$ 11,080,887

166,456

1.2 %


$  3,036,132

27.4


Energy-related loans outstanding totaled $719 million at September 30, 2015, down $68 million, or 9%, compared to June 30, 2015, and equated to approximately 5.1% of total loans.  Loans to exploration and production companies accounted for 47% of energy loans outstanding and 55% of energy commitments at September 30, 2015.  Midstream companies accounted for 17% of energy loans and 14% of energy commitments, and service companies accounted for 36% of energy loans and 31% of energy commitments.  At September 30, 2015, $4.9 million in energy loans were on non-accrual status and $477,000 was past due greater than 30 days at quarter-end.  The Company's outlook regarding the energy portfolio remains consistent with prior expectations.  Additional information regarding the Company's energy loan and commitment exposure is provided in the supplemental investor presentation.

In January 2015, the Company announced it was exiting the indirect automobile lending business, a service the Company has successfully provided to select automobile dealers in the Company's footprint for 20 years.  The Company concluded compliance risk associated with the indirect automobile lending business in general had become unbalanced relative to potential returns generated by the business on a risk-adjusted basis.  At September 30, 2015, the Company's indirect automobile lending business had approximately $282 million in loans outstanding, down $41 million, or 13%, compared to June 30, 2015 (2.0% of total loans outstanding compared to 2.3% at June 30, 2015).  Year-to-date, indirect loans declined $115 million, or 29%.

Deposits

Total deposits increased $184 million, or 1%, from June 30, 2015 to September 30, 2015.  Non-interest-bearing deposits increased $226 million, or 5% (22% annualized basis), and equated to 27% of total deposits at September 30, 2015.  NOW accounts increased $11 million, or less than 1%, while money market account volume increased $75 million, or 1% (5% annualized basis), between June 30, 2015 and September 30, 2015.  Time deposits decreased $129 million, or 5%, between quarter-ends.  Period-end deposit growth during the third quarter of 2015 was strongest in the Florida Keys, Baton Rouge, New Orleans, Atlanta, and Orlando markets.


Table D - Period-End Deposits

(Dollars in thousands)





Linked Qtr Change (1)

Year/Year Change (1)

Mix

9/30/2015

6/30/2015

9/30/2014

$

%

Annualized

$

%

9/30/2015

6/30/2015

Non-interest-bearing

$   4,392,808

$   4,166,850

$   3,157,453

225,958

5.4

21.7

1,235,355

39.1

27 %

26 %

NOW accounts

2,635,021

2,623,697

2,194,803

11,324

0.4

1.7

440,218

20.1

16 %

16 %

Money market accounts

6,274,428

6,199,405

4,346,173

75,023

1.2

4.8

1,928,255

44.4

38 %

38 %

Savings accounts

725,435

725,633

575,337

(198)

(0.0)

(0.1)

150,098

26.1

5 %

5 %

Time deposits

2,275,373

2,403,956

2,103,925

(128,583)

(5.3)

(21.4)

171,448

8.1

14 %

15 %

Total deposits

$ 16,303,065

$ 16,119,541

$ 12,377,691

183,524

1.1

4.6

3,925,374

31.7

100 %

100 %














(1) Growth includes the impact of acquisitions.

On an average balance and linked quarter basis, non-interest-bearing deposits increased $332 million, or 8%, and interest-bearing deposits increased $905 million, or 8%.  The rate on average interest-bearing deposits in the third quarter of 2015 was 0.43%, an increase of one basis point on a linked quarter basis.

Other Assets And Funding

On a linked quarter basis, the investment portfolio increased $229 million, or 9%, to $2.7 billion on average in the third quarter of 2015.  On a period-end basis, the investment portfolio equated to $2.9 billion, or 15% of total assets at September 30, 2015, compared to 13% at June 30, 2015.  The investment portfolio had an effective duration of 3.1 years at September 30, 2015, compared to 3.2 years at June 30, 2015.  The investment portfolio had a $28 million unrealized gain at September 30, 2015.  The average yield on investment securities increased eight basis points on a linked quarter basis to 2.16% in the third quarter of 2015.  The Company holds in its investment portfolio primarily government agency securities.  Municipal securities comprised only 8.3% of total investments at September 30, 2015.  The Company holds for investment no sovereign debt, equity securities, trust preferred securities, or derivative exposure to foreign counterparties.

The Company continued to significantly reduce its short-term and long-term debt borrowings.  On a linked quarter basis, average short-term borrowings (including repurchase agreements) decreased $199 million, or 43%, and the cost of short-term borrowings declined two basis points.  At September 30, 2015, short-term borrowings (including repurchase agreements) declined $590 million, or 73%, compared to $813 million one year prior.  On a linked quarter basis, average long-term debt decreased $104 million, or 23%, and the cost of long-term debt increased 45 basis points to 2.99%.  The cost of average interest-bearing liabilities was 0.50% in the third quarter of 2015, up one basis point on a linked quarter basis.

Asset Quality

Between June 30, 2015 and September 30, 2015, legacy non-performing assets ("NPAs") decreased $16 million, or 19%.  At September 30, 2015, NPAs included $8 million in former bank branches and related real estate, a decrease of $4 million compared to June 30, 2015.  At September 30, 2015, legacy NPAs equated to 0.43% of total assets, down from 0.55% at June 30, 2015, and 0.38% of total assets excluding bank-related properties.  Legacy loans past due 30 days or more (excluding non-accruing loans) decreased $1.3 million, or 7%, and represented 0.16% of total legacy loans at September 30, 2015, compared to 0.18% at June 30, 2015.

Net charge-offs totaled $2.5 million in the third quarter of 2015, down $1.3 million, or 35%, compared to the second quarter of 2015.  Annualized net charge-offs equated to 0.07% of the average loans in the third quarter of 2015, down four basis points on a linked quarter basis.  The Company's provision for loan losses decreased $3.7 million, or 42%, on a linked quarter basis to $5.1 million.

Capital Position

On August 5, 2015, the Company sold 3.2 million depositary shares, each representing a 1/400th interest in a share of non-cumulative perpetual preferred stock. The preferred stock has an initial coupon equal to 6.625% for a period of 10 years, and thereafter floats at a rate of LIBOR plus 426.2 basis points. The Company raised approximately $80 million in gross proceeds ($77 million net proceeds) from the transaction.

At September 30, 2015, the Company reported a tangible common equity ratio of 8.75%, up seven basis points compared to June 30, 2015, and the preliminary Tier 1 leverage ratio was 9.33%, up nine basis points compared to June 30, 2015. The Company's preliminary total risk-based capital ratio at September 30, 2015, was 12.15%, up 66 basis points compared to June 30, 2015.

At September 30, 2015, book value per common share was $58.49, up $0.96 per share, or 2%, compared to June 30, 2015. Tangible book value per common share was $39.95, up $0.95 per share, or 2%, compared to June 30, 2015.  Based on the closing stock price of the Company's common stock of $58.30 per share on October 21, 2015, this price equated to 1.00 times September 30, 2015 book value and 1.46 times September 30, 2015 tangible book value per common share.

On September 14, 2015, the Company declared a quarterly cash dividend of $0.34 per common share. This dividend level equated to an annualized dividend rate of $1.36 per common share.  Based on the Company's closing common stock price on October 21, 2015, the indicated dividend yield was 2.33% per common share.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with 326 combined offices, including 223 bank branch offices and three loan production offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, and Georgia, 22 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 69 locations in 10 states.  The Company has eight locations with representatives of IBERIA Wealth Advisors in five 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 $2.4 billion, based on the NASDAQ Global Select Market closing stock price on October 21, 2015.

The following 10 investment firms currently provide equity research coverage on the Company:

  • Bank of America Merrill Lynch
  • FIG Partners, LLC
  • Hovde Group, LLC
  • Jefferies & Co., Inc.
  • Keefe, Bruyette & Woods, Inc.
  • Raymond James & Associates, Inc.
  • Robert W. Baird & Company
  • Sandler O'Neill + Partners, L.P.
  • Stephens, Inc.
  • SunTrust Robinson-Humphrey

Conference Call

In association with this earnings release, the Company will host a live conference call to discuss the financial results for the quarter just completed. The telephone conference call will be held on Thursday, October 22, 2015, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 0317551.  A replay of the call will be available until midnight Central Time on October 30, 2015 by dialing 1-877-344-7529. The confirmation code for the replay is 10074233.  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 in management's opinion can distort period-to-period comparisons of the Company's performance. 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.

Assumptions Regarding Projected Earnings in Future Periods

The Company's operating EPS guidance for the fourth quarter of 2015 was based on the following significant assumptions:

  • Recent forward interest rate curve projections;
  • Achievement of targeted synergies associated with recently completed acquisitions;
  • No significant changes in credit quality;
  • No significant changes to the preliminary purchase accounting marks assumed on the Company's most recently completed acquisitions;
  • No significant cash flow or credit quality changes on acquired assets;
  • Mortgage, title insurance, and capital markets projections continue to reflect the current environment and expectations; and
  • The declaration of cash dividends on preferred stock commencing in the first quarter of 2016.

Caution About Forward-Looking Statements

This press release contains "forward-looking statements," which may include forecasts of our financial results and condition, expectations for our operations and businesses, and our assumptions for those forecasts and expectations. Do not place undue reliance on forward-looking statements. Due to various factors, actual results may differ materially from our forward-looking statements. Factors that could cause our actual results to differ materially from our forward-looking statements are described under "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Risk Factors" and "Regulation and Supervision" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014, and in other documents subsequently filed by the Company with the Securities and Exchange Commission, available at the SEC's website, http://www.sec.gov, and the Company's website, http://www.iberiabank.com. To the extent that statements in this press release relate to future plans, objectives, financial results or performance by the Company, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are generally identified by use of words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology.

Forward-looking statements represent management's beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance.  Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements.  Factors that could cause or contribute to such differences include, but are not limited to: the level of market volatility, our ability to execute our growth strategy, including the availability of future bank acquisition opportunities, unanticipated losses related to the completion and integration of mergers and acquisitions, 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, resolution of assets subject to loss share agreements with the FDIC within the coverage periods, effects of the on-going correction in residential real estate prices and  levels of home sales, our ability to satisfy new capital and liquidity standards such as those imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act and those adopted by the Basel Committee on Banking Supervision and federal banking regulators, 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, competition from competitors with greater financial resources than the Company, reputational risk and social factors, changes in government regulations and legislation, increases in FDIC insurance assessments, geographic concentration of our markets, economic or business conditions in our markets or nationally, rapid changes in the financial services industry, significant litigation, cyber-security risks including dependence on our operational, technological, and organizational systems and infrastructure and those of third party providers of those services, hurricanes and other adverse weather events, and valuation of intangible assets. All information in this discussion is as of the date of this press release. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.


Table 1 - IBERIABANK CORPORATION

FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per share data)














As of and For the Three Months Ended

INCOME DATA:

9/30/2015

6/30/2015

% Change

9/30/2014 (1)

% Change

Net interest income

$ 155,117

$ 145,677

6.5

$ 121,751

27.4

Net interest income (TE)(2)

157,302

147,673

6.5

123,885

27.0

Total revenues

212,595

207,190

2.6

168,863

25.9

Provision for loan losses

5,062

8,790

(42.4)

5,714

(11.4)

Non-interest expense

144,968

153,209

(5.4)

120,112

20.7

Net income

42,475

30,836

37.7

30,893

37.5












PER COMMON SHARE DATA:












Earnings available to common shareholders - basic

$       1.04

$       0.79

31.6

$       0.93

11.8

Earnings available to common shareholders - diluted

1.03

0.79

30.4

0.92

12.0

Operating earnings (Non-GAAP) (3)

1.07

1.05

1.9

1.04

2.9

Book value

58.49

57.53

1.7

54.30

7.7

Tangible book value (4)

39.95

39.00

2.4

37.81

5.7

Closing stock price

58.21

68.23

(14.7)

62.51

(6.9)

Cash dividends

0.34

0.34

—

0.34

—












KEY RATIOS AND OTHER DATA (7):








Net interest margin (TE)(2)

3.50

%

3.52

%


3.49

%


Efficiency ratio

68.2

73.9



71.1



Tangible operating efficiency ratio (TE) (Non-GAAP) (2) (3) (4)

64.8

64.4



65.6



Return on average assets

0.86

0.67



0.79



Return on average common equity

7.09

5.54



6.79



Return on average operating tangible common equity (Non-GAAP) (3)(4)

11.18

11.14



11.29



Effective tax rate

32.1

31.8



28.2



Full-time equivalent employees

3,214

3,215



2,703
















CAPITAL RATIOS:












Tangible common equity ratio (Non-GAAP) (3) (4)

8.75

%

8.68

%


8.45

%


Tangible common equity to risk-weighted assets(4)

10.02

9.90



10.31



Tier 1 leverage ratio

9.33

9.24



9.21



Common equity Tier 1 (CET 1) (transitional) (5)

10.08

9.97



N/A



Common equity Tier 1 (CET 1) (fully phased-in) (5)

10.08

9.71



N/A



Tier 1 capital (transitional) (5)

10.73

10.07



11.21



Total risk-based capital ratio (5)

12.15

11.49



12.40



Common stock dividend payout ratio

32.9

45.3



36.8



Classified assets to Tier 1 capital

17.5

20.0



21.3
















ASSET QUALITY RATIOS (LEGACY):








Non-performing assets to total assets(6)

0.43

%

0.55

%


0.46

%


Allowance for loan losses to loans

0.80

0.81



0.79



Net charge-offs to average loans (annualized)

0.09

0.14



0.09



Non-performing assets to total loans and OREO (6)

0.65

0.83



0.67
















(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015, and errors in mortgage income during the third quarter of 2014, as previously disclosed.

(2)

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%.

(3)

See Table 11 and Table 12 for the GAAP to Non-GAAP reconciliations.

(4)

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

(5)

Capital ratios as of September 30, 2015 are estimated.

(6)

Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets.

(7)

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


Table 2 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except per share data)















For the Three Months Ended



Linked Qtr Change






Year/Year Change

9/30/2015

6/30/2015

$

%

3/31/2015

12/31/2014 (1)

9/30/2014 (1)

$

%

Interest income

$ 171,077

$ 160,545

10,532

6.6

$ 138,585

$          137,276

$       133,793

37,284

27.9

Interest expense

15,960

14,868

1,092

7.3

12,781

12,596

12,042

3,918

32.5

Net interest income

155,117

145,677

9,440

6.5

125,804

124,680

121,751

33,366

27.4

Provision for loan losses

5,062

8,790

(3,728)

(42.4)

5,345

6,495

5,714

(652)

(11.4)

Net interest income after provision for loan losses

150,055

136,887

13,168

9.6

120,459

118,185

116,037

34,018

29.3

Mortgage income

20,730

25,246

(4,516)

(17.9)

18,023

13,646

14,263

6,467

45.3

Service charges on deposit accounts

11,342

10,162

1,180

11.6

9,262

10,153

10,205

1,137

11.1

Title revenue

6,627

6,146

481

7.8

4,629

5,486

5,577

1,050

18.8

Broker commissions

3,839

5,461

(1,622)

(29.7)

4,162

3,960

5,297

(1,458)

(27.5)

ATM/debit card fee income

3,562

3,583

(21)

(0.6)

3,275

3,331

3,287

275

8.4

Income from bank owned life insurance

1,093

1,075

18

1.7

1,092

1,050

1,047

46

4.4

Gain on sale of available-for-sale securities

280

903

(623)

(69.0)

386

162

582

(302)

(51.9)

Other non-interest income

10,005

8,937

1,068

12.0

8,070

9,284

6,854

3,151

46.0

Total non-interest income

57,478

61,513

(4,035)

(6.6)

48,899

47,072

47,112

10,366

22.0

Salaries and employee benefits

82,416

84,019

(1,603)

(1.9)

72,696

65,445

64,934

17,482

26.9

Occupancy and equipment

17,987

17,366

621

3.6

16,260

14,594

14,883

3,104

20.9

Amortization of acquisition intangibles

2,338

2,155

183

8.5

1,523

1,618

1,623

715

44.1

Other non-interest expense

42,227

49,669

(7,442)

(15.0)

42,674

37,478

38,672

3,555

9.2

Total non-interest expense

144,968

153,209

(8,241)

(5.4)

133,153

119,135

120,112

24,856

20.7

Income before income taxes

62,565

45,191

17,374

38.4

36,205

46,122

43,037

19,528

45.4

Income tax expense

20,090

14,355

5,735

40.0

11,079

10,186

12,144

7,946

65.4

Net income

$   42,475

$   30,836

11,639

37.7

$   25,126

$            35,936

$         30,893

11,582

37.5














Income available to common shareholders - basic

$   42,475

$   30,836

11,639

37.7

$   25,126

$            35,936

$         30,893

11,582

37.5

Earnings allocated to unvested restricted stock

(492)

(355)

(137)

38.6

(344)

(523)

(462)

(30)

6.5

Income available to common shareholders - diluted

$   41,983

$   30,481

11,502

37.7

$   24,782

$            35,413

$         30,431

11,552

38.0














Earnings per common share - basic

$       1.04

$       0.79

0.25

31.6

$       0.75

$                1.08

$             0.93

0.11

11.8














Earnings per common share - diluted

$       1.03

$       0.79

0.24

30.4

$       0.75

$                1.07

$             0.92

0.11

12.0

Impact of non-operating items (Non-GAAP)(2)

0.04

0.26

(0.22)

(84.6)

0.20

(0.02)

0.12

(0.08)

(66.7)

Earnings per share - diluted, excluding non-operating items (Non-GAAP)(2)

$       1.07

$       1.05

0.02

1.9

$       0.95

$                1.05

$             1.04

0.03

2.9














NUMBER OF COMMON SHARES OUTSTANDING (in thousands)














Weighted average common shares outstanding - basic

40,995

39,015

1,980

5.1

33,659

33,333

33,310

7,685

23.1

Weighted average common shares outstanding - diluted

40,614

38,667

1,947

5.0

33,235

32,947

32,927

7,687

23.3

Book value shares (period end)(3)

41,129

41,117

12

0.0

38,178

33,453

33,441

7,688

23.0














(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015, and errors in mortgage income during the third quarter of 2014, as previously disclosed.

(2)

See Table 11 for GAAP to Non-GAAP reconciliation.

(3)

Shares used for book value purposes exclude shares held in treasury at the end of December 31, 2014 and September 30, 2014.


Table 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except per share data)








For the Nine Months Ended

9/30/2015

9/30/2014 (1)

$ Change

% Change

Interest income

$  470,207

$       367,539

102,668

27.9

Interest expense

43,609

32,107

11,502

35.8

Net interest income

426,598

335,432

91,166

27.2

Provision for loan losses

19,197

12,565

6,632

52.8

Net interest income after provision for loan losses

407,401

322,867

84,534

26.2

Mortgage income

63,999

38,150

25,849

67.8

Service charges on deposit accounts

30,766

25,421

5,345

21.0

Title revenue

17,402

15,007

2,395

16.0

Broker commissions

13,462

14,823

(1,361)

(9.2)

ATM/debit card fee income

10,420

8,691

1,729

19.9

Income from bank owned life insurance

3,260

4,423

(1,163)

(26.3)

Gain on sale of available-for-sale securities

1,569

609

960

157.6

Other non-interest income

27,012

19,430

7,582

39.0

Total non-interest income

167,890

126,554

41,336

32.7

Salaries and employee benefits

239,131

193,641

45,490

23.5

Occupancy and equipment

51,613

44,977

6,636

14.8

Amortization of acquisition intangibles

6,016

4,189

1,827

43.6

Other non-interest expense

134,570

111,672

22,898

20.5

Total non-interest expense

431,330

354,479

76,851

21.7

Income before income taxes

143,961

94,942

49,019

51.6

Income tax expense

45,524

25,497

20,027

78.5

Net income

$    98,437

$         69,445

28,992

41.7









Income available to common shareholders - basic

$    98,437

$         69,445

28,992

41.7

Earnings allocated to unvested restricted stock

(1,171)

(1,114)

(57)

5.1

Income available to common shareholders - diluted

$    97,266

$         68,331

28,935

42.3









Earnings per common share - basic

$        2.60

$             2.22

0.38

17.1









Earnings per common share - diluted

$        2.59

$             2.21

0.38

17.2

Impact of non-operating items (Non-GAAP)(2)

0.48

0.46

0.02

4.3

Earnings per share - diluted, excluding non-operating items (Non-GAAP)(2)

$        3.07

$             2.67

0.40

15.0









NUMBER OF COMMON SHARES OUTSTANDING (in thousands)







Weighted average common shares outstanding - basic

37,917

31,316

6,601

21.1

Weighted average common shares outstanding - diluted

37,532

30,923

6,609

21.4

Book value shares (period end) 

41,129

33,441

7,688

23.0









(1)

Certain balances and amounts for the nine months ended September 30, 2014 have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015, and errors in mortgage income during the nine months ended September 30, 2014, as previously disclosed.

(2)

See Table 11 for GAAP to Non-GAAP reconciliation.


TABLE 4 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)


PERIOD-END BALANCES

Linked Qtr Change






Year/Year Change

ASSETS

9/30/2015

6/30/2015

$

%

3/31/2015

12/31/2014 (1)

9/30/2014 (1)

$

%

Cash and due from banks

$      370,657

$      300,257

70,400

23.4

$      268,241

$          251,994

$       257,147

113,510

44.1

Interest-bearing deposits in other banks

311,615

591,018

(279,403)

(47.3)

696,000

296,101

410,860

(99,245)

(24.2)

Total cash and cash equivalents

682,272

891,275

(209,003)

(23.4)

964,241

548,095

668,007

14,265

2.1

Investment securities available for sale

2,827,805

2,413,158

414,647

17.2

2,342,613

2,158,853

2,103,828

723,977

34.4

Investment securities held to maturity

98,330

101,475

(3,145)

(3.1)

113,442

116,960

120,520

(22,190)

(18.4)

Total investment securities

2,926,135

2,514,633

411,502

16.4

2,456,055

2,275,813

2,224,348

701,787

31.6

Mortgage loans held for sale

202,168

220,765

(18,597)

(8.4)

215,044

140,072

148,530

53,638

36.1

Loans, net of unearned income

14,117,019

13,950,563

166,456

1.2

12,873,461

11,441,044

11,080,887

3,036,132

27.4

Allowance for loan losses

(130,254)

(128,149)

(2,105)

1.6

(128,313)

(130,131)

(134,540)

4,286

(3.2)

Loans, net

13,986,765

13,822,414

164,351

1.2

12,745,148

11,310,913

10,946,347

3,040,418

27.8

Loss share receivable

43,443

50,452

(7,009)

(13.9)

60,972

69,627

94,712

(51,269)

(54.1)

Premises and equipment

333,273

342,949

(9,676)

(2.8)

337,201

307,159

307,868

25,405

8.3

Goodwill and other intangibles

766,589

765,813

776

0.1

672,337

548,130

553,668

212,921

38.5

Other assets

593,580

630,627

(37,047)

(5.9)

600,764

558,095

570,969

22,611

4.0

Total assets

$ 19,534,225

$ 19,238,928

295,297

1.5

$ 18,051,762

$     15,757,904

$  15,514,449

4,019,776

25.9
















LIABILITIES AND SHAREHOLDERS' EQUITY











Non-interest-bearing deposits

$   4,392,808

$   4,166,850

225,958

5.4

$   3,860,820

$       3,195,430

$    3,157,453

1,235,355

39.1

NOW accounts

2,635,021

2,623,697

11,324

0.4

2,729,791

2,462,841

2,194,803

440,218

20.1

Savings and money market accounts

6,999,863

6,925,038

74,825

1.1

5,796,443

4,746,017

4,921,510

2,078,353

42.2

Certificates of deposit

2,275,373

2,403,956

(128,583)

(5.3)

2,277,970

2,116,237

2,103,925

171,448

8.1

Total deposits

16,303,065

16,119,541

183,524

1.1

14,665,024

12,520,525

12,377,691

3,925,374

31.7

Short-term borrowings

10,000

59,300

(49,300)

(83.1)

352,300

603,000

553,000

(543,000)

(98.2)

Securities sold under agreements to repurchase

212,460

209,004

3,456

1.7

252,602

242,742

259,783

(47,323)

(18.2)

Trust preferred securities

120,110

120,110

—

—

111,862

111,862

111,862

8,248

7.4

Other long-term debt

221,863

222,202

(339)

(0.2)

349,027

291,392

243,707

(21,844)

(9.0)

Other liabilities

183,526

143,487

40,039

27.9

153,617

136,235

152,732

30,794

20.2

Total liabilities

17,051,024

16,873,644

177,380

1.1

15,884,432

13,905,756

13,698,775

3,352,249

24.5

Total shareholders' equity

2,483,201

2,365,284

117,917

5.0

2,167,330

1,852,148

1,815,674

667,527

36.8

Total liabilities and shareholders' equity

$ 19,534,225

$ 19,238,928

295,297

1.5

$ 18,051,762

$     15,757,904

$  15,514,449

4,019,776

25.9


































AVERAGE BALANCES

Linked Qtr Change






Year/Year Change

ASSETS

9/30/2015

6/30/2015

$

%

3/31/2015

12/31/2014 (1)

9/30/2014 (1)

$

%

Cash and due from banks

$      327,370

$      263,844

63,526

24.1

$      243,566

$          239,377

$       229,556

97,814

42.6

Interest-bearing deposits in other banks

682,764

582,032

100,732

17.3

324,150

353,716

489,221

193,543

39.6

Total cash and cash equivalents

1,010,134

845,876

164,258

19.4

567,716

593,093

718,777

291,357

40.5

Investment securities available for sale

2,660,423

2,417,002

243,421

10.1

2,223,344

2,142,981

2,046,170

614,253

30.0

Investment securities held to maturity

99,864

106,871

(7,007)

(6.6)

115,188

118,588

122,175

(22,311)

(18.3)

Total investment securities

2,760,287

2,523,873

236,414

9.4

2,338,532

2,261,569

2,168,345

591,942

27.3

Mortgage loans held for sale

200,895

202,691

(1,796)

(0.9)

133,304

121,438

163,510

37,385

22.9

Loans, net of unearned income

14,009,601

13,297,724

711,877

5.4

11,563,946

11,271,752

11,009,833

2,999,768

27.2

Allowance for loan losses

(130,367)

(129,069)

(1,298)

1.0

(128,519)

(134,177)

(133,443)

3,076

(2.3)

Loans, net

13,879,234

13,168,655

710,579

5.4

11,435,427

11,137,575

10,876,390

3,002,844

27.6

Loss share receivable

47,190

55,751

(8,561)

(1.5)

66,165

85,733

111,383

(64,193)

(57.6)

Premises and equipment

339,860

341,829

(1,969)

(0.6)

311,158

308,223

307,804

32,056

10.4

Goodwill and other intangibles

766,712

708,085

58,627

8.3

555,565

552,888

553,148

213,564

38.6

Other assets

599,758

598,526

1,232

0.2

549,746

553,804

576,851

22,907

4.0

Total assets

$ 19,604,070

$ 18,445,286

1,158,784

6.3

$ 15,957,613

$     15,614,323

$  15,476,208

4,127,862

26.7
















LIABILITIES AND SHAREHOLDERS' EQUITY











Non-interest-bearing deposits

$   4,265,912

$   3,933,468

332,444

8.5

$   3,312,357

$       3,228,773

$    3,057,513

1,208,399

39.5

NOW accounts

2,655,069

2,639,140

15,929

0.6

2,464,760

2,271,836

2,228,378

426,691

19.1

Savings and money market accounts

7,104,789

6,228,052

876,737

14.1

4,834,244

4,908,247

4,877,051

2,227,738

45.7

Certificates of deposit

2,343,794

2,331,537

12,257

0.5

2,150,447

2,105,623

2,060,055

283,739

13.8

Total deposits

16,369,564

15,132,197

1,237,367

8.2

12,761,808

12,514,479

12,222,997

4,146,567

33.9

Short-term borrowings

41,033

225,437

(184,404)

(81.8)

483,413

449,190

627,192

(586,159)

(93.5)

Securities sold under agreements to repurchase

221,217

236,305

(15,088)

(6.4)

263,645

264,194

292,677

(71,460)

(24.4)

Trust preferred securities

120,110

114,581

5,529

4.8

111,862

111,862

111,862

8,248

7.4

Other long-term debt

222,906

332,167

(109,261)

(32.9)

311,633

283,548

247,108

(24,202)

(9.8)

Other liabilities

206,030

172,473

33,557

19.5

135,477

159,818

168,262

37,768

22.4

Total liabilities

17,180,860

16,213,160

967,700

6.0

14,067,838

13,783,091

13,670,098

3,510,762

25.7

Total shareholders' equity

2,423,210

2,232,126

191,084

8.6

1,889,775

1,831,232

1,806,110

617,100

34.2

Total liabilities and shareholders' equity

$ 19,604,070

$ 18,445,286

1,158,784

6.3

$ 15,957,613

$     15,614,323

$  15,476,208

4,127,862

26.7
















(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015, and errors in mortgage income during the third quarter of 2014, as previously disclosed.


Table 5 - IBERIABANK CORPORATION

TOTAL LOANS AND ASSET QUALITY DATA

(Dollars in thousands)

















Linked Qtr Change






Year/Year Change

LOANS

9/30/2015

6/30/2015

$

%

3/31/2015

12/31/2014

9/30/2014

$

%

Commercial loans:
















Real estate

$   5,979,751

$   5,853,751

126,000

2.2

$   5,122,946

$   4,361,779

$   4,235,327

1,744,424

41.2

Commercial and Industrial

3,302,971

3,216,906

86,065

2.7

2,967,306

2,571,695

2,432,245

870,726

35.8

Energy-related (Real Estate and Commercial and Industrial)(1)

719,456

787,568

(68,112)

(8.6)

819,411

880,608

839,823

(120,367)

(14.3)

Total commercial loans

10,002,178

9,858,225

143,953

1.5

8,909,663

7,814,082

7,507,395

2,494,783

33.2
















Residential mortgage loans

1,189,941

1,169,608

20,333

1.7

1,164,286

1,080,297

1,062,779

127,162

12.0
















Consumer loans:
















Home equity

2,015,687

1,971,073

44,614

2.3

1,858,088

1,601,105

1,567,415

448,272

28.6

Indirect automobile

281,649

322,958

(41,309)

(12.8)

367,349

397,158

394,691

(113,042)

(28.6)

Automobile

172,947

173,924

(977)

(0.6)

160,518

149,901

140,287

32,660

23.3

Credit card

77,284

74,314

2,970

4.0

72,711

73,393

69,352

7,932

11.4

Other

377,333

380,461

(3,128)

(0.8)

340,846

325,108

338,968

38,365

11.3

Total consumer loans

2,924,900

2,922,730

2,170

0.1

2,799,512

2,546,665

2,510,713

414,187

16.5

Total loans

$ 14,117,019

$ 13,950,563

166,456

1.2

$ 12,873,461

$ 11,441,044

$ 11,080,887

3,036,132

27.4
















Allowance for loan losses

$    (130,254)

$    (128,149)

(2,105)

1.6

$    (128,313)

$    (130,131)

$    (134,540)

4,286

(3.2)

Loans, net

13,986,765

13,822,414

164,351

1.2

12,745,148

11,310,913

10,946,347

3,040,418

27.8
















Reserve for unfunded commitments

(14,525)

(13,244)

(1,281)

9.7

(12,849)

(11,801)

(12,099)

(2,426)

20.1

Allowance for credit losses

(144,779)

(141,393)

(3,386)

2.4

(141,162)

(141,932)

(146,639)

1,860

(1.3)
















ASSET QUALITY DATA (2)












Non-accrual loans

$      165,022

$      192,385

(27,363)

(14.2)

$      195,371

$      169,686

$      195,680

(30,658)

(15.7)

Other real estate owned and foreclosed assets

40,450

49,929

(9,479)

(19.0)

53,194

53,947

63,386

(22,936)

(36.2)

Accruing loans more than 90 days past due

2,994

4,607

(1,613)

(35.0)

5,642

1,708

190

2,804

N/M

Total non-performing assets

$      208,466

$      246,921

(38,455)

(15.6)

$      254,207

$      225,341

$      259,256

(50,790)

(19.6)


































Loans 30-89 days past due

$        25,306

$        39,005

(13,699)

(35.1)

$        32,835

$        51,141

$        23,784

1,522

6.4
















Non-performing assets to total assets

1.07 %

1.28 %




1.41 %

1.43 %

1.67 %


Non-performing assets to total loans and OREO

1.47

1.76




1.97

1.96

2.32



Allowance for loan losses to non-performing loans (3)

77.5

65.1




63.8

75.9

68.8



Allowance for loan losses to non-performing assets

62.5

51.9




50.5

57.7

51.9



Allowance for loan losses to total loans

0.92

0.92




1.00

1.14

1.21

























































Quarter-to-date charge-offs

$          5,245

$          4,808

437

9.1

$          2,972

$          3,413

$          3,261

1,984

60.8

Quarter-to-date recoveries

(2,790)

(1,034)

(1,756)

169.8

(1,237)

(1,658)

(1,053)

(1,737)

165.0

Quarter-to-date net charge-offs

$          2,455

$          3,774

(1,319)

(34.9)

$          1,735

$          1,755

$          2,208

247

11.2
















Net charge-offs to average loans (annualized)

0.07 %

0.11 %




0.06 %

0.06 %

0.08 %




















(1)

For purposes of this table, energy-related loans generally include loans with specific NAICS codes that relate to the Oil and Gas E&P, Services, or Midstream industries.

(2)

For purposes of this table, non-performing assets include all loans meeting non-performing asset criteria, including assets acquired in FDIC-assisted transactions.

(3)

Non-performing loans consist of non-accruing 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

LEGACY LOANS AND LEGACY ASSET QUALITY DATA

(Dollars in thousands)





















Linked Qtr Change






Year/Year Change

LEGACY LOANS

9/30/2015

6/30/2015

$

%

3/31/2015

12/31/2014

9/30/2014

$

%

Commercial loans:
















Real estate

$   4,321,723

$   4,105,592

216,131

5.3

$ 3,845,551

$ 3,676,811

$ 3,483,785

837,938

24.1

Commercial and Industrial

2,779,503

2,650,799

128,704

4.9

2,496,258

2,452,521

2,305,749

473,754

20.5

Energy-related (Real Estate and Commercial and Industrial)(1)

713,935

782,312

(68,377)

(8.7)

815,281

872,866

831,951

(118,016)

(14.2)

Total commercial loans

7,815,161

7,538,703

276,458

3.7

7,157,090

7,002,198

6,621,485

1,193,676

18.0
















Residential mortgage loans

660,543

616,497

44,046

7.1

553,815

527,694

497,075

163,468

32.9
















Consumer loans:
















Home equity

1,488,796

1,399,005

89,791

6.4

1,335,390

1,290,976

1,229,998

258,798

21.0

Indirect automobile

281,522

322,767

(41,245)

(12.8)

367,077

396,766

394,078

(112,556)

(28.6)

Automobile

159,928

159,778

150

0.1

145,084

134,014

123,445

36,483

29.6

Credit card

76,716

73,726

2,990

4.1

72,164

72,745

68,731

7,985

11.6

Other

296,592

285,077

11,515

4.0

264,249

244,321

245,130

51,462

21.0

Total consumer loans

2,303,554

2,240,353

63,201

2.8

2,183,964

2,138,822

2,061,382

242,172

11.7

Total loans

$ 10,779,258

$ 10,395,553

383,705

3.7

$ 9,894,869

$ 9,668,714

$ 9,179,942

1,599,316

17.4
















Allowance for loan losses

$      (86,400)

$      (83,723)

(2,677)

3.2

$    (78,773)

$    (76,174)

$    (73,073)

(13,327)

18.2

Loans, net

10,692,858

10,311,830

381,028

3.7

9,816,096

9,592,540

9,106,869

1,585,989

17.4
















Reserve for unfunded commitments

(14,525)

(13,244)

(1,281)

9.7

(12,849)

(11,801)

(12,099)

(2,426)

20.1

Allowance for credit losses

(100,925)

(96,967)

(3,958)

4.1

(91,622)

(87,975)

(85,172)

(15,753)

18.5
















ASSET QUALITY DATA (2)













Non-accrual loans

$        51,274

$        62,739

(11,465)

(18.3)

$      60,064

$      34,970

$      38,060

13,214

34.7

Other real estate owned and foreclosed assets

17,062

20,028

(2,966)

(14.8)

21,654

21,244

23,478

(6,416)

(27.3)

Accruing loans more than 90 days past due

1,521

3,584

(2,063)

(57.6)

239

754

4

1,517

N/M

Total non-performing assets

$        69,857

$        86,351

(16,494)

(19.1)

$      81,957

$      56,968

$      61,542

8,315

13.5
















Loans 30-89 days past due

$        15,718

$        14,985

733

4.9

17,606

$      29,567

$      12,441

3,277

26.3
















Non-performing assets to total assets

0.43 %

0.55 %




0.55 %

0.41 %

0.46 %



Non-performing assets to total loans and OREO

0.65

0.83




0.83

0.59

0.67



Allowance for loan losses to non-performing loans (3)

163.7

126.2




130.6

213.2

190.6



Allowance for loan losses to non-performing assets

123.7

97.0




96.1

133.7

117.9



Allowance for loan losses to total loans

0.80

0.81




0.80

0.79

0.79





















Quarter-to-date charge-offs

$          4,958

$          4,446

512

11.5

$        2,669

$        3,070

$        3,045

1,913

62.8

Quarter-to-date recoveries

(2,524)

(941)

(1,583)

168.2

(1,091)

(1,532)

(914)

(1,610)

176.1

Quarter-to-date net charge-offs

$          2,434

$          3,505

(1,071)

(30.6)

1,578

$        1,538

$        2,131

303

14.2

Net charge-offs to average loans (annualized)

0.09 %

0.14 %




0.06 %

0.06 %

0.09 %





















(1)

For purposes of this table, energy-related loans generally include loans with specific NAICS codes that relate to the Oil and Gas E&P, Services, or Midstream industries.

(2)

For purposes of this table, non-performing assets include all loans meeting non-performing asset criteria, including assets acquired in FDIC-assisted transactions.

(3)

Non-performing loans consist of non-accruing 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 - IBERIABANK CORPORATION

ACQUIRED LOANS AND ACQUIRED ASSET QUALITY DATA

(Dollars in thousands)





















Linked Qtr Change






Year/Year Change

ACQUIRED LOANS(1)

9/30/2015

6/30/2015

$

%

3/31/2015

12/31/2014

9/30/2014

$

%

Commercial loans:
















Real estate

$ 1,658,028

$ 1,748,159

(90,131)

(5.2)

$ 1,277,395

$    684,968

$    751,542

906,486

120.6

Commercial and Industrial

523,468

566,107

(42,639)

(7.5)

471,048

119,174

126,496

396,972

313.8

Energy-related (Real Estate and Commercial and Industrial)(2)

5,521

5,256

265

5.0

4,130

7,742

7,872

(2,351)

(29.9)

Total commercial loans

2,187,017

2,319,522

(132,505)

(5.7)

1,752,573

811,884

885,910

1,301,107

146.9
















Residential mortgage loans

529,398

553,111

(23,713)

(4.3)

610,471

552,603

565,704

(36,306)

(6.4)
















Consumer loans:
















Home equity

526,891

572,068

(45,177)

(7.9)

522,698

310,129

337,417

189,474

56.2

Indirect automobile

127

191

(64)

(33.5)

272

392

613

(486)

(79.3)

Automobile

13,019

14,146

(1,127)

(8.0)

15,434

15,887

16,842

(3,823)

(22.7)

Credit card

568

588

(20)

(3.4)

547

648

621

(53)

(8.5)

Other

80,741

95,384

(14,643)

(15.4)

76,597

80,787

93,838

(13,097)

(14.0)

Total consumer loans

621,346

682,377

(61,031)

(8.9)

615,548

407,843

449,331

172,015

38.3

Total loans

$ 3,337,761

$ 3,555,010

(217,249)

(6.1)

$ 2,978,592

$ 1,772,330

$ 1,900,945

1,436,816

75.6
















Allowance for loan losses

$    (43,854)

$   (44,426)

572

(1.3)

$   (49,540)

$   (53,957)

$   (61,467)

17,613

(28.7)

Loans, net

3,293,907

3,510,584

(216,677)

(6.2)

2,929,052

1,718,373

1,839,478

1,454,429

79.1
















ACQUIRED ASSET QUALITY DATA (1)















Non-accrual loans

$    113,748

$    129,646

(15,898)

(12.3)

$    135,307

$    134,716

$    157,620

(43,872)

(27.8)

Other real estate owned and foreclosed assets

23,388

29,901

(6,513)

(21.8)

31,540

32,703

39,908

(16,520)

(41.4)

Accruing loans more than 90 days past due

1,473

1,023

450

44.0

5,403

954

186

1,287

691.9

Total non-performing assets

$    138,609

$    160,570

(21,961)

(13.7)

$    172,250

$    168,373

$    197,714

(59,105)

(29.9)
















Loans 30-89 days past due

$        9,588

$      24,020

(14,432)

(60.1)

$      15,229

$      21,574

$      11,343

(1,755)

(15.5)
















Non-performing assets to total assets

4.07 %

4.42 %




5.64 %

9.11 %

9.83 %



Non-performing assets to total loans and OREO

4.12

4.48




5.72

9.33

10.19



Allowance for loan losses to non-performing loans (3)

38.1

34.0




35.2

39.8

39.0



Allowance for loan losses to non-performing assets

31.6

27.7




28.8

32.1

31.1



Allowance for loan losses to total loans

1.31

1.25




1.66

3.04

3.23







































Quarter-to-date charge-offs

$          287

$          362

(75)

(20.7)

$          303

$          343

$          216

71

32.9

Quarter-to-date recoveries

(266)

(93)

(173)

186.0

(146)

(126)

(139)

(127)

91.4

Quarter-to-date net charge-offs

$            21

$          269

(248)

(92.2)

$          157

$          217

$            77

(56)

(72.7)
















Net charge-offs to average loans (annualized)

—%

0.03 %




0.03 %

0.05 %

0.01 %





















(1)

For purposes of this table, acquired loans and acquired non-performing assets are presented only. Non-performing assets include all loans meeting non-performing asset criteria.

(2)

For purposes of this table, energy-related loans generally include loans with specific NAICS codes that relate to the Oil and Gas E&P, Services, or Midstream industries.

(3)

Non-performing loans consist of non-accruing loans and accruing loans 90 days or more past due.


TABLE 8 - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)








For the Three Months Ended

9/30/2015

6/30/2015

Basis Point Change

ASSETS

Average
Balance

Interest
Income/Expense

Yield/Rate

Average
Balance

Interest
Income/Expense

Yield/Rate

Yield/Rate

Earning assets:







Commercial loans

$   9,915,593

$          110,282

4.41 %

$   9,277,141

$          103,272

4.46 %

(5)

Residential mortgage loans

1,180,725

13,156

4.46

1,187,166

14,379

4.84

(38)

Consumer loans

2,913,283

36,477

4.97

2,833,417

35,684

5.05

(8)

Total loans

14,009,601

159,915

4.53

13,297,724

153,335

4.62

(9)

Loss share receivable

47,190

(5,600)

(46.43)

55,751

(7,398)

(52.50)

607

Total loans and loss share receivable

14,056,791

154,315

4.36

13,353,475

145,937

4.38

(2)

Mortgage loans held for sale

200,895

1,847

3.68

202,691

1,380

2.72

96

Investment securities (2)

2,697,617

13,729

2.16

2,469,050

12,191

2.08

8

Other earning assets

756,277

1,186

0.62

663,071

1,037

0.63

(1)

Total earning assets

17,711,580

171,077

3.86

16,688,287

160,545

3.87

(1)

Allowance for loan losses

(130,367)


(129,069)


Non-earning assets

2,022,857


1,886,068


Total assets

$ 19,604,070


$ 18,445,286











LIABILITIES AND SHAREHOLDERS' EQUITY




Interest-bearing liabilities:







NOW accounts

$   2,655,069

1,725

0.26

$   2,639,140

1,765

0.27

(1)

Savings and money market accounts

7,104,789

6,459

0.36

6,228,052

5,058

0.33

3

Certificates of deposit

2,343,794

5,040

0.85

2,331,537

4,959

0.85

—

Total interest-bearing deposits(3)

12,103,652

13,224

0.43

11,198,729

11,782

0.42

1

Short-term borrowings

262,250

116

0.17

461,742

220

0.19

(2)

Long-term debt

343,016

2,620

2.99

446,748

2,866

2.54

45

Total interest-bearing liabilities

12,708,918

15,960

0.50

12,107,219

14,868

0.49

1

Non-interest-bearing deposits

4,265,912


3,933,468


Non-interest-bearing liabilities

206,030


172,473


Total liabilities

17,180,860


16,213,160


Total shareholders' equity

2,423,210


2,232,126


Total liabilities and shareholders' equity

$ 19,604,070


$ 18,445,286











Net interest income/Net interest spread

$          155,117

3.36 %

$          145,677

3.38 %

(2)

Tax-equivalent benefit

2,185

0.05

1,996

0.05

—

Net interest income (TE)/Net interest margin (TE) (1)

$          157,302

3.50 %

$          147,673

3.52 %

(2)







(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 the impact of trade date accounting.

(3)

Total deposit costs for the three months ended September 30, 2015 and June 30, 2015 total 0.32% and 0.31%, respectively.











For the Three Months Ended

3/31/2015

12/31/2014

9/30/2014

ASSETS

Average
Balance

Interest
Income/Expense

Yield/Rate

Average
Balance

Interest
Income/Expense

Yield/Rate

Average
Balance

Interest
Income/Expense

Yield/Rate

Earning assets:










Commercial loans

$   7,882,782

$            83,645

4.31 %

$   7,656,992

$            89,574

4.65 %

$          7,467,597

$             98,562

5.24 %

Residential mortgage loans

1,099,518

13,594

4.95

1,069,555

13,094

4.90

1,104,692

13,321

4.82

Consumer loans

2,581,646

32,952

5.18

2,545,205

33,994

5.30

2,437,544

33,589

5.47

Total loans

11,563,946

130,191

4.56

11,271,752

136,662

4.82

11,009,833

145,472

5.25

Loss share receivable

66,165

(6,013)

(36.35)

85,733

(13,224)

(60.36)

111,383

(25,120)

(88.25)

Total loans and loss share receivable

11,630,111

124,178

4.32

11,357,485

123,438

4.32

11,121,216

120,352

4.30

Mortgage loans held for sale

133,304

1,515

4.55

121,439

1,200

3.95

163,510

1,594

3.90

Investment securities (2)

2,307,525

12,097

2.22

2,234,235

11,766

2.24

2,137,735

10,994

2.20

Other earning assets

402,499

795

0.80

431,603

872

0.80

567,897

853

0.60

Total earning assets

14,473,439

138,585

3.90

14,144,762

137,276

3.88

13,990,358

133,793

3.83

Allowance for loan losses

(128,519)


(134,177)


(133,443)

Non-earning assets

1,612,693


1,603,738


1,619,293

Total assets

$ 15,957,613


$ 15,614,323


$        15,476,208













LIABILITIES AND SHAREHOLDERS' EQUITY










Interest-bearing liabilities:










NOW accounts

$   2,464,760

1,552

0.26

$   2,271,836

1,526

0.27

$          2,228,378

1,546

0.28

Savings and money market accounts

4,834,244

3,375

0.28

4,908,247

3,694

0.30

4,877,051

3,588

0.29

Certificates of deposit

2,150,447

4,411

0.83

2,105,623

4,272

0.80

2,060,055

3,983

0.77

Total interest-bearing deposits(3)

9,449,451

9,338

0.40

9,285,706

9,492

0.41

9,165,484

9,117

0.39

Short-term borrowings

747,058

363

0.19

713,384

342

0.19

919,869

406

0.17

Long-term debt

423,495

3,080

2.91

395,410

2,762

2.73

358,970

2,519

2.75

Total interest-bearing liabilities

10,620,004

12,781

0.49

10,394,500

12,596

0.48

10,444,323

12,042

0.46

Non-interest-bearing deposits

3,312,357


3,228,773


3,057,513

Non-interest-bearing liabilities

135,477


159,818


168,262

Total liabilities

14,067,838


13,783,091


13,670,098

Total shareholders' equity

1,889,775


1,831,232


1,806,110


$ 15,957,613


$ 15,614,323


$        15,476,208













Net interest income/Net interest spread

$          125,804

3.41 %

$          124,680

3.40 %

$           121,751

3.37 %

Tax-equivalent benefit

2,040

0.06

2,055

0.06

2,134

0.06

Net interest income (TE)/Net interest margin (TE) (1)

$          127,844

3.54 %

$          126,735

3.53 %

$           123,885

3.49 %










(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 the impact of trade date accounting.

(3)

Total deposit costs for the three months ended March 31, 2015, December 31, 2014 and September 30, 2014 total 0.30% for each three month period.


TABLE 9 - IBERIABANK CORPORATION

YEAR-TO-DATE AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)








For the Nine Months Ended

9/30/2015

9/30/2014

Basis Point Change

ASSETS

Average Balance

Interest Income/Expense

Yield/Rate

Average Balance

Interest Income/Expense

Yield/Rate

Yield/Rate

Earning assets:







Commercial loans

$   9,032,618

$          297,199

4.40 %

$   7,158,634

$          270,227

5.05 %

(65)

Residential mortgage loans

1,156,101

41,129

4.74

802,095

31,469

5.23

(49)

Consumer loans

2,777,330

105,113

5.06

2,231,190

88,348

5.29

(23)

Total loans

12,966,049

443,441

4.57

10,191,919

390,044

5.12

(55)

Loss share receivable

56,299

(19,011)

(44.53)

132,306

(61,393)

(61.19)

1,666

Total loans and loss share receivable

13,022,348

424,430

4.36

10,324,225

328,651

4.27

9

Mortgage loans held for sale

179,211

4,742

3.53

133,455

3,953

3.95

(42)

Investment securities (2)

2,492,826

38,017

2.15

2,120,226

32,911

2.22

(7)

Other earning assets

608,578

3,018

0.66

351,232

2,024

0.77

(11)

Total earning assets

16,302,963

470,207

3.87

12,929,138

367,539

3.83

4

Allowance for loan losses

(129,325)


(135,050)


Non-earning assets

1,842,042


1,506,864


Total assets

$ 18,015,680


$ 14,300,952











LIABILITIES AND SHAREHOLDERS' EQUITY







Interest-bearing liabilities:







NOW accounts

$   2,587,020

5,042

0.26

$   2,229,454

4,480

0.27

(1)

Savings and money market accounts

6,064,012

14,892

0.33

4,517,549

9,108

0.27

6

Certificates of deposit

2,275,968

14,410

0.85

1,817,146

10,009

0.74

11

Total interest-bearing deposits(3)

10,927,000

34,344

0.42

8,564,149

23,597

0.37

5

Short-term borrowings

488,574

699

0.19

805,167

1,022

0.17

2

Long-term debt

404,125

8,566

2.80

314,924

7,488

3.14

(34)

Total interest-bearing liabilities

11,819,699

43,609

0.49

9,684,240

32,107

0.44

5

Non-interest-bearing deposits

3,840,738


2,811,276


Non-interest-bearing liabilities

171,585


139,821


Total liabilities

15,832,022


12,635,337


Total shareholders' equity

2,183,658


1,665,615



$ 18,015,680


$ 14,300,952











Net interest income/Net interest spread

$          426,598

3.38 %

$          335,432

3.39 %

(1)

Tax-equivalent benefit

6,221

0.05

6,554

0.07

(2)

Net interest income (TE)/Net interest margin (TE) (1)

$          432,819

3.52 %

$          341,986

3.51 %

1







(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 the impact of trade date accounting.

(3)

Total deposit costs for the nine months ended September 30, 2015 and 2014 total 0.31% and 0.28%, respectively.

Table 10 - IBERIABANK CORPORATION

LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS

(Dollars in millions)



















For the Three Months Ended

9/30/2015

6/30/2015

3/31/2015

12/31/2014

9/30/2014

AS REPORTED (US GAAP)

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Legacy loans, net

$   105

$ 10,571

3.90 %

$     99

$ 10,147

3.88 %

$     94

$   9,734

3.90 %

$     95

$   9,439

3.94 %

$     91

$   9,019

3.97 %

Acquired loans (1)

49

3,486

5.59

47

3,206

5.82

30

1,896

6.34

29

1,919

5.97

29

2,102

5.49

Total loans

$   154

$ 14,057

4.36 %

$   146

$ 13,353

4.38 %

$   124

$ 11,630

4.32 %

$   124

$ 11,358

4.32 %

$   120

$ 11,121

4.30 %



















9/30/2015

6/30/2015

3/31/2015

12/31/2014

9/30/2014

ADJUSTMENTS

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Legacy loans, net

$     —

$        —

—%

$     —

$        —

—%

$     —

$        —

—%

$     —

$        —

—%

$     —

$        —

—%

Acquired loans (1)

(8)

92

(0.90)

(9)

85

(1.23)

(9)

67

(2.00)

(6)

55

(1.38)

(4)

44

(0.88)

Total loans

$     (8)

$        92

(0.24)%

$     (9)

$        85

(0.30)%

$     (9)

$        67

(0.33)%

$     (6)

$        55

(0.23)%

$     (4)

$        44

(0.16)%



















9/30/2015

6/30/2015

3/31/2015

12/31/2014

9/30/2014

AS ADJUSTED (CASH YIELD, NON-GAAP)

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Legacy loans, net

$   105

$ 10,571

3.90 %

$     99

$ 10,147

3.88 %

$     94

$   9,734

3.90 %

$     95

$   9,439

3.94 %

$     91

$   9,019

3.97 %

Acquired loans (1)

41

3,578

4.69

38

3,291

4.58

21

1,963

4.28

23

1,974

4.59

25

2,146

4.61

Total loans

$   146

$ 14,149

4.12 %

$   137

$ 13,438

4.08 %

$   115

$ 11,697

3.99 %

$   118

$ 11,413

4.09 %

$   116

$ 11,165

4.13 %


















(1) Acquired loans include the impact of the FDIC Indemnification Asset.

Table 11 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)

















For the Three Months Ended

9/30/2015

6/30/2015

3/31/2015

Pre-tax

After-tax (2)

Per share (3)

Pre-tax

After-tax (2)

Per share (3)

Pre-tax

After-tax (2)

Per share (3)

Net income (GAAP)

$   62,565

$      42,475

$            1.03

$   45,191

$      30,836

$            0.79

$ 36,205

$      25,126

$            0.75
















Non-interest income adjustments:
















Gain on sale of investments and other non-interest income

(2,221)

(1,444)

(0.04)

(1,266)

(823)

(0.02)

(389)

(252)

(0.01)
















Non-interest expense adjustments:
















Merger-related expenses

2,212

1,438

0.04

12,732

8,392

0.22

9,296

6,139

0.18

Severance expenses

304

198

0.00

406

264

0.01

41

27

—

Loss on sale of long-lived assets, net of impairment

1,713

1,113

0.03

1,571

1,021

0.03

579

376

0.01

Other non-operating non-interest expense

242

157

0.00

2,050

1,333

0.03

450

292

0.01

Total non-interest expense adjustments

4,471

2,906

0.07

16,759

11,010

0.29

10,366

6,834

0.20

Income tax benefits

-

-

-

-

-

-

-

-

-

Operating earnings (non-GAAP)

64,815

43,937

1.07

60,684

41,023

1.05

46,182

31,708

0.95

Provision for loan losses

5,062

3,291

0.08

8,790

5,713

0.15

5,345

3,475

0.10

Pre-provision operating earnings (non-GAAP)

$   69,877

$      47,228

$            1.15

$   69,474

$      46,736

$            1.20

$ 51,527

$      35,183

$            1.05

For the Three Months Ended

12/31/2014 (1)

9/30/2014 (1)

Pre-tax

After-tax (2)

Per share (3)

Pre-tax

After-tax(2)

Per share (3)

Net income (GAAP)

$   46,122

$      35,936

$            1.07

$   43,037

$      30,893

$            0.92










Non-interest income adjustments:










Gain on sale of investments and other non-interest income

(374)

(243)

(0.01)

(582)

(378)

(0.01)










Non-interest expense adjustments:










Merger-related expenses

1,955

1,496

0.04

1,752

1,139

0.04

Severance expenses

139

91

—

1,214

789

0.02

Loss on sale of long-lived assets, net of impairment

1,078

701

0.02

4,229

2,749

0.08

Other non-operating non-interest expense

2

1

—

(799)

(520)

(0.02)

Total non-interest expense adjustments

3,174

2,289

0.07

6,396

4,157

0.12

Income tax benefits

-

(2,959)

(0.09)

-

-

-

Operating earnings (non-GAAP)

48,922

35,023

1.05

48,851

34,672

1.04

Provision for loan losses

6,495

4,222

0.11

5,714

3,714

0.11

Pre-provision operating earnings (non-GAAP)

$   55,417

$      39,245

$            1.17

$   54,565

$      38,386

$            1.15











For the Nine Months Ended

9/30/2015

9/30/2014 (1)

Pre-tax

After-tax (2)

Per share (3)

Pre-tax

After-tax (2)

Per share (3)

Net income (GAAP)

$ 143,961

$      98,437

$            2.59

$   94,942

$      69,445

$            2.21










Non-interest income adjustments:










Gain on sale of investments and other non-interest income

(3,876)

(2,519)

(0.07)

(2,382)

(2,076)

(0.06)










Non-interest expense adjustments:










Merger-related expenses

24,240

15,969

0.42

13,138

8,608

0.27

Severance expenses

751

489

0.01

6,812

4,427

0.14

Loss on sale of long-lived assets, net of impairment

3,863

2,510

0.07

5,994

3,896

0.12

Other non-operating non-interest expense

2,742

1,782

0.05

(599)

(389)

(0.01)

Total non-interest expense adjustments

31,596

20,750

0.55

25,345

16,542

0.52

Income tax benefits

—

—

—

—

—

—

Operating earnings (non-GAAP)

171,681

116,668

3.07

117,905

83,911

2.67

Provision for loan losses

19,197

12,479

0.33

12,565

8,167

0.26

Pre-provision operating earnings (non-GAAP)

$ 190,878

$    129,147

$            3.40

$ 130,470

$      92,078

$            2.93

(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015, and errors in mortgage income during the third quarter of 2014, as previously disclosed.

(2)

After-tax amounts computed using a marginal tax rate of 35%.

(3)

Diluted per share amounts may not appear to foot due to rounding.

Table 12 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)









For the Three Months Ended

9/30/2015

6/30/2015

3/31/2015

12/31/2014 (1)

9/30/2014 (1)

Net interest income (GAAP)

$ 155,117

$ 145,677

$ 125,804

$      124,680

$    121,751

Add: Effect of tax benefit on interest income

2,185

1,996

2,040

2,055

2,134

Net interest income (TE) (Non-GAAP) (2)

157,302

147,673

127,844

126,735

123,885








Non-interest income (GAAP)

57,478

61,513

48,899

47,072

47,112

Add: Effect of tax benefit on non-interest income

589

579

588

566

564

Non-interest income (TE) (Non-GAAP)(2)

58,067

62,092

49,487

47,638

47,676

Taxable equivalent revenues (Non-GAAP) (2)

215,369

209,765

177,331

174,373

171,561

Securities gains and other non-interest income

(2,221)

(1,266)

(389)

(374)

(582)

Taxable equivalent operating revenues (Non-GAAP) (2)

$ 213,148

$ 208,499

$ 176,942

$      173,999

$    170,979








Total non-interest expense (GAAP)

$ 144,968

$ 153,209

$ 133,153

$      119,135

$    120,112

Less: Intangible amortization expense

2,338

2,155

1,523

1,618

1,623

Tangible non-interest expense (Non-GAAP) (3)

142,630

151,054

131,630

117,517

118,489

Less: Merger-related expense

2,212

12,732

9,296

1,955

1,752

Severance expense

304

406

41

139

1,214

Loss on sale of long-lived assets, net of impairment

1,713

1,571

579

1,078

4,229

Other non-operating non-interest expense

242

2,050

450

2

(799)

Tangible operating non-interest expense (Non-GAAP) (3)

$ 138,159

$ 134,295

$ 121,264

$      114,343

$    112,093








Return on average assets (GAAP)

0.86 %

0.67 %

0.64 %

0.91 %

0.79 %

Effect of non-operating revenues and expenses

0.03

0.22

0.17

(0.02)

0.10

Operating return on average assets (Non-GAAP)

0.89 %

0.89 %

0.81 %

0.89 %

0.89 %








Efficiency ratio (GAAP)

68.2 %

73.9 %

76.2 %

69.4 %

71.1 %

Effect of tax benefit related to tax-exempt income

(0.9)

(0.9)

(1.1)

(1.1)

(1.1)

Efficiency ratio (TE) (Non-GAAP) (2)

67.3 %

73.0 %

75.1 %

68.3 %

70.0 %

Effect of amortization of intangibles

(1.1)

(1.0)

(0.9)

(0.9)

(0.9)

Effect of non-operating items

(1.4)

(7.6)

(5.7)

(1.7)

(3.5)

Tangible operating efficiency ratio (TE) (Non-GAAP)(2)(3)

64.8 %

64.4 %

68.5 %

65.7 %

65.6 %








Return on average common equity (GAAP)

7.09 %

5.54 %

5.39 %

7.79 %

6.79 %

Effect of intangibles (3)

3.73

2.93

2.53

3.67

3.32

Effect of non-operating revenues and expenses

0.36

2.67

2.00

(0.29)

1.18

Return on average operating tangible common equity (Non-GAAP)

11.18 %

11.14 %

9.92 %

11.17 %

11.29 %

(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015, and errors in mortgage income during the third quarter of 2014, as previously disclosed.

(2)

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%.

(3)

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

SOURCE IBERIABANK Corporation