IBERIABANK Corporation Reports Record Yearly Results for Fourth Quarter
LAFAYETTE, La., Jan. 28 /PRNewswire-FirstCall/ -- IBERIABANK Corporation (Nasdaq: IBKC), holding company of the 122-year-old IBERIABANK (www.iberiabank.com) and IBERIABANK fsb (www.IBERIABANKfsb.com), announced income available to common shareholders of $106 million for the quarter ended December 31, 2009, an increase of 340% compared to the third quarter of 2009 (“linked quarter basis”). Fully diluted earnings per share (“EPS”) were $5.23 in the fourth quarter of 2009, an increase of 332% on a linked quarter basis compared to $1.21 in the third quarter of 2009. For the full year of 2009, the Company reported net income to common shareholders of $144 million, up 273% compared to $39 million in 2008. EPS for 2009 was $8.03, up 171% compared to $2.96 in 2008. According to First Call, the consensus analyst EPS estimate for the Company for the fourth quarter of 2009 was $1.82 and $4.02 for the full year of 2009.
Daryl G. Byrd, President and Chief Executive Officer commented, “2009 was a year of tremendous achievement and opportunity for our Company. Our shareholders and other constituents benefitted from our many years of sacrifice, hard work, discipline, and foresight. Our fourth quarter and year-end results are a clear demonstration of our profitability, capital strength, and sound asset quality compared to the severe strife within the financial services industry.” Byrd continued, “Despite the industry challenges, our shareholders received a total return on their investment of 522% between year-ends 1999 and 2009, assuming reinvestment of quarterly cash dividends. This equated to a total annual shareholder return of 20% over that period.”
Significant Influences on the Quarter Ended December 31, 2009
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The Company recorded a $170 million pre-tax gain for the Orion Bank and Century Bank acquisitions under FAS141R in accordance with generally accepted accounting principles. The Company incurred one-time pre-tax acquisition-related costs of $7.9 million, or $0.25 per share on an after-tax basis during the fourth quarter of 2009. |
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The majority of assets acquired in each of the three FDIC-assisted transactions are covered under the loss sharing arrangements with the FDIC and loan valuations incorporate estimated losses. Based on current modeling, management estimates each of the three acquisitions will be accretive to earnings and EPS of the Company over the next few years. |
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The Company reported net charge-offs totaling $2 million in the fourth quarter of 2009, or 0.18% of average loans on an annualized basis. On a similar basis, this figure compares to $23 million, or 2.26% of average loans, in the third quarter of 2009. The Company recorded a loan loss provision of $9 million, down 64% compared to $25 million on a linked quarter basis. The loan loss provision was elevated in the third quarter of 2009 primarily due to the higher charge-offs. The Company’s ratio of loan loss reserves to total loans was 0.96% at December 31, 2009 and 1.36% excluding the FDIC transactions, compared to 1.25% at September 30, 2009. |
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($ in thousands) Reported CapitalSouth 3Q09 Organic Reported
6/30/2009 Acquisition * Growth 9/30/2009
--------- ------------- ------------ ---------
Assets
------
Investments 1,023,388 46,027 26,404 1,095,819
Loans 3,829,326 366,788 102,298 4,298,412
Allowance (46,329) - (2,462) (48,791)
OREO 17,352 9,556 (3,947) 22,961
Other Assets 878,890 188,152 31,924 1,098,966
------- ------- ------ ---------
Total Assets 5,702,627 610,523 154,217 6,467,367
Liabilities
-----------
Deposits 4,172,895 517,153 85,685 4,775,733
L/T Borrowings 538,161 30,624 (42,679) 526,106
Other Liabilities 330,997 4,916 (20,966) 314,947
------- ----- ------- -------
Total Liabilities 5,042,053 552,693 22,040 5,616,786
Equity 660,574 57,830 132,177 850,581
------- ------ ------- -------
Liabs & Equity 5,702,627 610,523 154,217 6,467,367
($ in thousands) Orion Century 4Q09 Organic Reported
Acquisition * Acquisition * Growth 12/31/2009
------------- ------------- ------------ ----------
Assets
------
Investments 230,968 22,128 231,922 1,580,837
Loans 961,094 417,561 107,298 5,784,365
Allowance - - (6,977) (55,768)
OREO 28,505 21,150 1,475 74,091
Other Assets 1,141,120 351,170 (274,379) 2,316,877
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Total Assets 2,361,687 812,009 59,339 9,700,402
Liabilities
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Deposits 1,883,087 615,815 281,513 7,556,148
L/T Borrowings 344,689 143,006 (267,937) 745,864
Other Liabilities 61,176 21,453 46,599 444,175
------ ------ ------ -------
Total Liabilities 2,288,952 780,274 60,175 8,746,187
Equity 72,735 31,735 (836) 954,215
------ ------ ---- -------
Liabs & Equity 2,361,687 812,009 59,339 9,700,402
* Unaudited. Derived from financial information furnished by the FDIC
at acquisition.
Subsequently revised to include fair value adjustments
Balance Sheet and Yields
Total assets increased $3.2 billion, or 50%, to $9.7 billion at December 31, 2009, and up $59 million, or 1%, excluding the FDIC acquisitions of Orion Bank and Century Bank. Over the last 10 years, the Company’s asset base grew at a 22% annual compounded growth rate. Total shareholders’ equity increased $104 million, or 12%, since September 30, 2009 and grew at a 10-year compounded annual rate of 23%. The Company’s market capitalization was $1.1 billion at year-end 2009 and climbed at a 10-year compounded annual growth rate of 28%.
Total investment securities increased $485 million, or 44%, to $1.6 billion during the fourth quarter of 2009, as the Company received cash associated with the FDIC-assisted transactions and excess cash was moved into the investment portfolio. As a percentage of total assets, the investment portfolio decreased from 18% at September 30, 2009 to 16% at December 31, 2009. Excluding the Orion Bank and Century Bank transactions, the investment portfolio had a modified duration of 3.0 years at December 31, 2009, up slightly compared to 2.8 years at September 30, 2009. Based on projected prepayment speeds and other assumptions at December 31, 2009, the portfolio was expected to generate approximately $357 million in cash flows, or about 27% of the portfolio, over the next 12 months. The average yield on investment securities decreased 21 basis points on a linked quarter basis, to 3.82% in the fourth quarter of 2009. The Company holds in its investment portfolio primarily government agency and municipal securities.
Loans
Since September 30, 2009, total loans increased $1.5 billion, or 35%, and $107 million, or 2%, excluding the FDIC-assisted transactions. Between the time of the acquisitions and December 31, 2009, Orion Bank and Century Bank-related loans decreased approximately $42 million, or 2%, which was consistent with the Company’s expectations. Over the last 10 years, total loans grew at a 21% compounded annual growth rate.
The loan portfolio is comprised of disparate components. Approximately 29% of the Company’s $5.8 billion loan portfolio is comprised of assets covered under the FDIC’s loss share agreements, which provide considerable protection against credit risk on those covered assets. Covered under the FDIC loss agreements were the acquired loan portfolios of CapitalSouth ($0.4 billion and 6% of total gross loans), Orion Bank ($1.8 billion and 26% of total gross loans), and Century Bank ($0.7 billion and 10% of total gross loans). In addition, the Company purchased these loans at an aggregate discount of $1.3 billion, or 42% of loans acquired and 18% of total gross loans). Finally, $4.1 billion in loans are associated with the legacy franchise, which were underwritten under the Company’s guidelines.
Period-End Loan Volumes ($ in Millions)
Loans IBERIABANK
----------
12/31/08 3/31/09 6/30/09 9/30/09 12/31/09
-------- ------- ------- ------- --------
Commercial $1,768 $1,806 $1,877 $1,935 $2,045
Consumer 672 673 686 687 680
Mortgage 461 438 409 399 385
--- --- --- --- ---
Non-FDIC Loans $2,901 $2,917 $2,972 $3,021 $3,110
Covered Loans $353 $1,670
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Total Loans $3,374 $4,780
Non-FDIC Growth 4% 1% 2% 14% 3%
Loans IBERIABANK fsb
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Since
12/31/08 3/31/09 6/30/09 9/30/09 12/31/09 Acq.
-------- ------- ------- ------- -------- --------
Commercial $530 $536 $554 $621 $704 58%
Consumer 239 233 234 236 234 -2%
Mortgage 74 72 69 68 68 1%
--- --- --- --- --- ---
Non-FDIC Loans $843 $841 $857 $925 $1,006 33%
Covered Loans
Total Loans
Non-FDIC Growth 0% 0% 2% 8% 9%
On a linked quarter basis, the yield on average total loans increased 33 basis points to 5.56%. Yields on mortgage and consumer loans declined 54 and 60 basis points, respectively, on a linked quarter basis. Over this period, the yield on commercial loans increased 86 basis points.
The IBERIABANK fsb builder construction portfolio has declined to $9 million at December 31, 2009 (equal to only 0.2% of the Company’s consolidated total loan portfolio). The Company’s Louisiana C&D loans totaled $248 million, or 4.3% of total loans. The Louisiana C&D portfolio continues to perform well; only 0.91% of this portfolio was past due 30 days or more (1.53% at September 30, 2009).
The Company’s commercial real estate (“CRE”) loan portfolio is composed of four parts. First, a significant portion of the total CRE portfolio is covered under the loss share agreements with the FDIC. Second, much of the acquired CRE portfolio was purchased at substantial discounts from the FDIC that are expected to offset much of the remaining credit exposure and servicing costs. Third, a portion of the CRE portfolio is associated with the IBERIABANK fsb builder construction portfolio which has compressed significantly over the last two years. Finally, a portion of the CRE portfolio is comprised of legacy CRE loans, underwritten under the Company’s guidelines. At December 31, 2009, the average loan size in the legacy CRE portfolio was approximately $604,000, and loans past due 30 days or more (including nonaccruing loans) equated to 1.72% of the CRE loans outstanding (1.81% at September 30, 2009). Approximately 61% of the legacy CRE portfolio was based in southern Louisiana, 14% in northern Louisiana, and 24% in IBERIABANK fsb’s markets. At December 31, 2009, many of the local markets in southern Louisiana remained economically healthy compared to the national economy. Excluding construction-related credits and FDIC-related loans, at December 31, 2009, approximately 47% of the Company’s CRE portfolio was owner-occupied and 53% non-owner occupied. Non-owner occupied CRE loans equated to 104% of total risk based capital at December 31, 2009.
At December 31, 2009, approximately 42% of the Company’s consumer loan portfolio was covered under the FDIC loss share agreements. The remaining legacy consumer portfolio maintained favorable asset quality. The average credit score of the legacy consumer loan portfolio was 716, and loans past due 30 days or more were 1.32% at December 31, 2009 (compared to 0.86% at September 30, 2009). Legacy home equity loans totaled $342 million, with 1.38% past due 30 days or more (1.11% at September 30, 2009). Legacy home equity lines of credit totaled $196 million, with 0.98% past due 30 days or more (0.62% at September 30, 2009). Annualized net charge-offs in this portfolio were 0.66% of loans in the fourth quarter of 2009 (1.13% in the third quarter of 2009). The weighted average loan-to-value at origination for this portfolio over the last three years was approximately 70%.
The indirect automobile portfolio totaled $259 million at December 31, 2009, down 3% compared to September 30, 2009. This portfolio equated to 4% of total loans and had 1.19% in loans past due 30 days or more (including nonaccruing loans) at December 31, 2009 (1.05% at September 30, 2009). Annualized net charge-offs in the indirect loan portfolio equated to approximately 0.45% of average loans in the fourth quarter of 2009 (0.45% in the third quarter of 2009). Approximately 87% of the indirect automobile portfolio was in the Acadiana region of Louisiana, which currently experiences a relatively favorable unemployment rate.
Deposits
During the fourth quarter of 2009, total deposits increased $2.8 billion, or 58%, and $282 million, or 6%, excluding the FDIC transactions. Between the time of the acquisitions and January 27, 2010, Orion Bank and Century Bank-related deposits, excluding brokered deposits, decreased approximately $17 million, or 6%, which was more favorable than the Company’s expectations.
Period-End Deposit Volumes ($ in Millions)
Deposits IBERIABANK
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12/31/08 3/31/09 6/30/09 9/30/09 12/31/09
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Noninterest $465 $452 $451 $501 $832
NOW Accounts 615 747 750 764 1,038
Savings/MMkt 755 851 888 1,048 1,948
Time Deposits 1,006 1,009 1,014 1,356 2,589
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Total Deposits $2,842 $3,059 $3,103 $3,669 $6,407
Growth 5% 8% 1% 18% 75%
Deposits IBERIABANK fsb
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Since
12/31/08 3/31/09 6/30/09 9/30/09 12/31/09 Acq.
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Noninterest $156 $129 $126 $128 $153 59%
NOW Accounts 206 205 198 195 203 5%
Savings/MMkt 199 220 240 279 305 73%
Time Deposits 593 520 507 504 488 -9%
--- --- --- --- --- ---
Total Deposits $1,154 $1,074 $1,071 $1,105 $1,149 14%
Growth -5% -7% 0% 3% 4%
Between September 30 and December 31, 2009, deposits at IBERIABANK increased $2.7 billion, or 75%, and $239 million, or 7% excluding Orion Bank and Century Bank. Deposits at IBERIABANK fsb increased $44 million, or 4% over this same period.
Noninterest bearing deposits totaled $985 million at December 31, 2009, up $356 million, or 57%, compared to September 30, 2009. Excluding the FDIC-assisted transactions, noninterest bearing deposits climbed $138 million, or 22%, over this period. On a linked quarter basis, average noninterest bearing deposits increased $222 million, or 38%, and interest-bearing deposits increased $1.5 billion, or 39%. The rate on average interest bearing deposits in the fourth quarter of 2009 was 1.75%, a decrease of three basis points on a linked quarter basis, compared to a 19 basis point decline in the cost of average interest bearing liabilities. The Company had only $90 million in short-term borrowings at December 31, 2009, or approximately 1% of total liabilities.
Interest Rate Risk Position
The Company’s interest rate risk modeling at December 31, 2009 excluding the Orion Bank and Century Bank transactions indicated the Company is slightly asset sensitive over a 12-month time frame. A 100 basis point instantaneous and parallel upward shift in interest rates is estimated to increase net interest income over 12 months by approximately 1.3%. Similarly, a 100 basis point decrease in interest rates is expected to decrease net interest income by approximately 3.7%. At December 31, 2009, approximately 59% of the Company’s loan portfolio had fixed interest rates. Eliminating fixed rate loans that mature within a one-year time frame reduces this percentage to 55%. Approximately 75% of the Company’s time deposit base will re-price within 12 months from December 31, 2009. The rapid decline in short-term interest rates over the last few years and changes in the Company’s balance sheet mix have caused the Company’s interest rate risk position to become more asset sensitive over time.
Quarterly Average Yields/Cost (Taxable Equivalent Basis)
IBERIABANK
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4Q08 1Q09 2Q09 3Q09 4Q09
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Earning Asset Yield 5.60% 4.92% 4.91% 4.65% 4.64%
Cost Of Int-Bearing Liabs 2.43% 2.10% 1.97% 1.84% 1.77%
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Net Interest Spread 3.17% 2.82% 2.94% 2.81% 2.87%
Net Interest Margin 3.56% 3.15% 3.26% 3.09% 3.15%
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IBERIABANK fsb
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4Q08 1Q09 2Q09 3Q09 4Q09
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Earning Asset Yield 5.37% 5.41% 5.29% 4.79% 4.89%
Cost Of Int-Bearing Liabs 2.99% 2.55% 2.32% 2.13% 1.95%
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Net Interest Spread 2.37% 2.86% 2.97% 2.66% 2.94%
Net Interest Margin 2.78% 3.19% 3.28% 2.97% 3.26%
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Operating Results
Tax-equivalent net interest income increased $17.2 million, or 41% on a linked quarter basis. Average earning assets increased $1.9 billion (up 34%) and the tax-equivalent net interest spread and margin improved 18 and 13 basis points, respectively, on a linked quarter basis. The average earning asset yield decreased two basis points. The Company’s excess liquidity position increased from approximately $250 million at September 30, 2009 to $342 million at December 31, 2009 ($261 million in Fed Funds Sold and $81 million in interest bearing cash). Interest bearing deposits and liabilities declined three and 19 basis points, respectively.
Aggregate noninterest income increased $115 million, or 143%, on a linked quarter basis. The primary changes on a linked quarter basis were (1) a $170 million gain on completion of the Orion Bank and Century Bank acquisitions in the fourth quarter compared to $57 million in the third quarter of 2009, (2) a $0.9 million gain on the sale of investment securities, and (3) a $0.5 million decline in title insurance income on a linked quarter basis.
The Company’s mortgage origination business experienced continued strength during the fourth quarter of 2009. The Company originated $351 million in mortgage loans during the fourth quarter of 2009, up $49 million, or 16%, on a linked quarter basis. Client loan refinancing opportunities accounted for approximately 30% of mortgage loan originations in the fourth quarter of 2009, compared to 27% in the third quarter of 2009. The Company sold $335 million in mortgage loans during this period, down $5 million, or 1%, compared to the third quarter of 2009. Sales margins improved on a linked quarter basis. Gains on the sale of mortgage loans totaled $8.5 million in the fourth quarter of 2009, an increase of $1.2 million, or 17%, on a linked quarter basis. The mortgage pipeline was approximately $76 million at year-end 2009, and has since risen to a level of approximately $87 million at January 22, 2009. In recent weeks, loan refinancings accounted for approximately one-quarter of mortgage activity.
Noninterest expense increased $20.6 million, or 38%, on a linked quarter basis. A substantial portion of the increase in noninterest expense during the fourth quarter was associated with a goodwill impairment charge. The Company’s annual goodwill impairment tests determined a portion of the goodwill associated with the Company’s title insurance businesses was impaired by $9.7 million. A non-cash impairment charge was incurred for this amount during the fourth quarter of 2009. Other increases in expenses on a linked quarter basis were compensation (up $3.1 million), contract labor/temporary help (up $2.7 million), legal and professional (up $1.2 million), occupancy and equipment ($1.2 million), marketing and business development (up $1.1 million) and FDIC deposit insurance premium assessments (up $1.0 million). Partially offsetting those expense increases were reductions in OREO expense (down $3.9 million) and annual bonus accrual (down $1.9 million). One-time merger-related costs (included in some of the previously described expense categories) totaled $7.9 million in the fourth quarter of 2009, compared to $0.6 million in the third quarter. In aggregate, the combined tangible efficiency ratio of the Company’s bank subsidiaries was approximately 18.9% in the fourth quarter of 2009 (33.7% in the third quarter of 2009).
Basic net income to common shareholders in the fourth quarter of 2009 totaled $106 million, up 340% on a linked quarter basis. Return on average assets (“ROA”) was 5.29% for the fourth quarter of 2009, return on average common equity (“ROE”) was 46.94%, and return on average tangible common equity was 66.26%.
Asset Quality
The Company’s credit quality statistics were significantly affected by the FDIC-assisted acquisitions, though the loss share arrangements with the FDIC and discounts on the assets acquired should provide substantial protection against loss on those assets. Under the loss share agreements, the FDIC will cover 80% of the losses on the disposition of loans and OREO up to $970 million, or $776 million (the Company would cover the remaining $194 million amount). In addition, the FDIC will cover 95% of losses that exceed that $970 million threshold level. The Company estimates its maximum loss exposure will be approximately $297 million, assuming all loans experience 100% losses with no recoveries, over the loss share period. The Company received a discount of approximately $500 million on the purchase of assets in the transactions.
Excluding the FDIC-assisted transactions, NPAs and loans past due 30 days or more increased marginally during the fourth quarter of 2009 at both IBERIABANK and IBERIABANK fsb. The legacy Company had no troubled debt restructurings at December 31, 2009.
Summary Asset Quality Statistics
($thousands) IBERIABANK IBERIABANK fsb
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2Q09 3Q09* 4Q09** 2Q09 3Q09 4Q09
---- ----- ------ ---- ---- ----
Nonaccruals $14,110 $13,600 $11,899 $14,409 $22,655 $27,947
OREO & Foreclosed 1,199 2,277 4,000 16,153 11,192 11,281
90+ Days Past Due 3,596 1,999 3,193 9,663 2,651 1,767
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Nonperforming
Assets $18,905 $17,877 $19,092 $40,225 $36,498 $40,996
NPAs/Assets 0.45% 0.42% 0.38% 2.78% 2.43% 2.68%
NPAs/(Loans + OREO) 0.64% 0.59% 0.61% 4.60% 3.90% 4.03%
LLR/Loans 1.01% 1.05% 1.10% 1.89% 1.86% 2.12%
Net Charge-Offs/
Loans 0.08% 1.21% 0.04% 1.22% 6.16% 0.78%
---- ---- ---- ---- ---- ----
($thousands) IBERIABANK Corp.
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2Q09 3Q09* 4Q09**
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Nonaccruals $28,519 $36,256 $39,847
OREO & Foreclosed 17,352 13,469 15,281
90+ Days Past Due 13,259 4,650 4,960
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Nonperforming
Assets $59,130 $54,375 $60,088
NPAs/Assets 1.04% 0.93% 0.91%
NPAs/(Loans + OREO) 1.54% 1.38% 1.45%
LLR/Loans 1.21% 1.25% 1.36%
Net Charge-Offs/
Loans 0.33% 2.38% 0.22%
---- ---- ----
* Excludes the impact of the CapitalSouth acquisition
** Excludes the impact of all FDIC-assisted acquisitions
The FDIC-assisted transactions accounted for $949 million, or 94% of the Company’s $1 billion in total NPAs at December 31, 2009, and the legacy IBERIABANK Corporation franchise accounted for the remaining $60 million in NPAs. Excluding the FDIC-assisted transactions, NPAs equated to 0.91% of total assets at December 31, 2009, compared to 0.93% at September 30, 2009. On this same basis, total loans past due 30 days or more (including nonaccruing loans) represented 1.67% of total loans at December 31, 2009, up 25 basis points, compared to 1.42% of total loans at September 30, 2009.
Loans Past Due
Loans Past Due 30 Days Or More And Nonaccruing Loans As % Of Loans
Outstanding
By Entity: 9/30/08 12/31/08 3/31/09 6/30/09 9/30/09 12/31/09
---------- ------- -------- ------- ------- ------- --------
IBERIABANK
30+ days
past due 0.28% 0.69% 0.31% 0.33% 0.32% 0.58%
Non-accrual 0.21% 0.22% 0.54% 0.47% 0.45% 0.38%
---- ---- ---- ---- ---- ----
Total Past
Due 0.49% 0.92% 0.85% 0.80% 0.77% 0.96%
IBERIABANK fsb
30+ days
past due 1.29% 1.57% 1.85% 1.73% 1.09% 1.12%
Non-accrual 2.42% 2.53% 2.12% 1.68% 2.45% 2.78%
---- ---- ---- ---- ---- ----
Total Past
Due 3.71% 4.10% 3.97% 3.41% 3.54% 3.90%
Consolidated
(Ex-FDIC
Covered Assets)
30+ days
past due 0.52% 0.89% 0.65% 0.64% 0.50% 0.71%
Non-accrual 0.72% 0.74% 0.90% 0.74% 0.92% 0.96%
---- ---- ---- ---- ---- ----
Total Past
Due 1.24% 1.63% 1.55% 1.38% 1.42% 1.67%
--------- ---- ---- ---- ---- ---- ----
CapitalSouth Only
30+ days
past due 7.62% 7.59%
Non-accrual 24.64% 29.68%
----- -----
Total Past
Due 32.26% 37.27%
Orion Only
30+ days
past due 16.55%
Non-accrual 57.63%
-----
Total Past
Due 74.18%
Century Only
30+ days
past due 10.52%
Non-accrual 52.88%
-----
Total Past
Due 63.40%
Consolidated
With FDIC
Covered Assets
30+ days
past due 1.08% 4.35%
Non-accrual 2.87% 15.33%
---- -----
Total Past
Due 3.95% 19.68%
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At December 31, 2009, the allowance for loan losses was 0.96%, down compared to 1.14% at September 30, 2009. In accordance with generally accepted accounting principles, the assets acquired in the FDIC-assisted transactions were marked to market at consummation, including estimated loan impairment. As a result, no loan loss reserves are expected on these loans at this time. Excluding the acquired loans, the Company’s ratio of loan loss reserves to loans increased from 1.24% at September 30, 2009 to 1.36% at December 31, 2009.
The Company reported net charge-offs of $2 million in the fourth quarter of 2009, compared to $23 million in the third quarter of 2009. The ratio of net charge-offs to average loans was 0.18% in the fourth quarter of 2009, compared to 2.26% in the third quarter of 2009. The elevated charge-offs in the third quarter were primarily due to valuations on appraisals of collateral securing certain loans, the Company’s credit portfolio management process, general economic conditions, and other third quarter factors. The Company recorded a $9 million loan loss provision in the fourth quarter of 2009, compared to $25 million in the third quarter of 2009. Management considers the loan loss reserve adequate to absorb credit losses inherent in the loan portfolio at December 31, 2009.
Capital Position
The Company maintains strong capital ratios compared to peers. The equity-to-assets ratio was 9.84% at December 31, 2009, compared to 13.15% at each of September 30, 2009 and December 31, 2008. At December 31, 2009, the Company reported a tangible common equity ratio of 7.35%, compared to 9.59% at September 30, 2009 and 7.23% one year ago. The Company’s Tier 1 leverage ratio was 9.90%, compared to 11.54% at September 30, 2009 and 11.27% one year ago. The Company’s total risk based capital ratio was 13.50%, compared to 16.83% at September 30, 2009 and 15.69% one year ago. The Company’s tangible common equity to risk weighted assets ratio was 14.49%, compared to 13.38% at September 30, 2009, and 9.48% one year ago.
In July 2009, the Company issued and sold 4,427,500 shares of common stock for net proceeds of approximately $165 million in a public underwritten equity offering. Shares were sold in the offering at a price of $39.00 per share.
Regulatory Capital Ratios
At December 31, 2009
Capital Well IBERIABANK
Ratio Capitalized IBERIABANK IBERIABANK fsb Corporation
------- ----------- ---------- -------------- -----------
Tier 1
Leverage 5.00% 8.40% 10.25% 9.90%
Tier 1
Risk Based 6.00% 10.73% 12.81% 12.23%
Total Risk
Based 10.00% 11.89% 14.04% 13.50%
At December 31, 2009, book value per share was $46.04, up $4.63, or 11%, compared to September 30, 2009, and up 14% compared to one year ago. Tangible book value per share improved $4.64, or 16%, over that period to $33.53, and up 39% compared to one year ago.
On December 14, 2009, 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 2.46%, based on the closing stock price of the Company’s common stock on January 27, 2009 of $55.32 per share. Based on that closing stock price, the Company’s common stock traded at a price-to-earnings ratio of 6.9 times $8.03 per fully diluted EPS for 2009. This price equated to 1.20 times December 31, 2009 book value per share of $46.04 and 1.65 times tangible book value per share of $33.53.
IBERIABANK Corporation
IBERIABANK Corporation is a multi-bank financial holding company with 209 combined offices, including 136 bank branch offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, and Florida, 26 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 47 locations in 12 states. The Company’s common stock trades on the NASDAQ Global Select Market under the symbol “IBKC” and the Company’s market capitalization is approximately $1.2 billion, based on the closing stock price on January 27, 2009.
The following twelve investment firms currently provide equity research coverage on IBERIABANK Corporation:
- B. Riley & Company
- FIG Partners, LLC
- Howe Barnes Hoefer & Arnett, Inc.
- Keefe, Bruyette & Woods
- Raymond James & Associates, Inc.
- Robert W. Baird & Company
- Soleil Securities Corporation/Tenner Investment Research
- Stephens, Inc.
- Sterne, Agee & Leach
- Stifel Nicolaus & Company
- SunTrust Robinson-Humphrey
- Wunderlich Securities
Conference Call
In association with this earnings release, the Company will host a live conference call to discuss the financial results for the quarter just completed. The telephone conference call will be held on Thursday, January 28, 2010, beginning at 8:00 a.m. Central Time by dialing 1-800-288-8961. The confirmation code for the call is 141829. A replay of the call will be available until midnight Central Time on February 4, 2010 by dialing 1-800-475-6701. The confirmation code for the replay is 141829. 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 nonrecurring transactions. 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.
Forward Looking Statements
To the extent that statements in this press release relate to future plans, objectives, financial results or performance of IBERIABANK Corporation, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which are based on management’s current information, estimates and assumptions and the current economic environment, are generally identified by the use of the words “plan”, “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project” or similar expressions. IBERIABANK Corporation’s actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties.
Actual results could differ materially because of factors such as the current level of market volatility and our ability to execute our growth strategy, unanticipated losses related to the integration of acquired businesses and assets and assumed liabilities in FDIC-assisted transactions, adjustments of fair values of acquired assets and assumed liabilities and of deferred taxes in FDIC-assisted acquisitions, credit risk of our customers, effects of the on-going correction in residential real estate prices and reduced levels of home sales, sufficiency of our allowance for loan losses, changes in interest rates, access to funding sources, reliance on the services of executive management, competition for loans, deposits and investment dollars, reputational risk and social factors, changes in government regulations and legislation, increases in FDIC insurance assessments, geographic concentration of our markets, rapid changes in the financial services industry, dependence on our operational, technological, and organizational infrastructure, hurricanes and other adverse weather events, the volatility of our common stock, and valuation of intangible assets. These and other factors that may cause actual results to differ materially from these forward-looking statements are discussed in the Company’s Annual Report on Form 10-K and other filings with the Securities and Exchange Commission, available at the SEC’s website, www.sec.gov, and the Company’s website, www.iberiabank.com. All information in this release is as of the date of this release. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
IBERIABANK CORPORATION
FINANCIAL HIGHLIGHTS
For The Quarter For The Quarter
Ended Ended
December 31, September 30,
---------------------------- ---------------
2009 2008 % Change 2009 % Change
---- ---- -------- ---- --------
Income Data
(in thousands):
Net Interest
Income $57,556 $37,167 55% $40,666 42%
Net Interest
Income (TE) (1) 59,452 38,417 55% 42,297 41%
Net Income 108,902 8,276 1216% 24,729 340%
Earnings
Available to
Common
Shareholders-
Basic 108,902 7,928 1274% 24,729 340%
Earnings
Available to
Common
Shareholders-
Diluted 106,185 7,716 1276% 24,126 340%
Per Share Data:
Earnings
Available to
Common
Shareholders -
Basic $5.27 $0.58 808% $1.22 332%
Earnings
Available to
Common
Shareholders -
Diluted 5.23 0.57 818% 1.21 332%
Book Value
Per Common
Share 46.04 40.53 14% 41.41 11%
Tangible Book
Value Per
Common Share
(2) 33.53 24.20 39% 28.89 16%
Cash
Dividends 0.34 0.34 - 0.34 -
Number of
Shares
Outstanding:
Basic Shares
(Average) 20,617,155 13,650,667 51% 20,253,317 2%
Diluted
Shares
(Average) 20,301,633 13,537,539 50% 19,944,420 2%
Book Value
Shares
(Period End)(3) 20,797,218 15,900,820 31% 20,623,541 1%
Key
Ratios:
(4)
Return on
Average
Assets 5.29% 0.62% 1.60%
Return on
Average
Common
Equity 46.94% 5.80% 11.66%
Return on
Average
Tangible
Common
Equity (2) 66.26% 11.74% 17.10%
Net Interest
Margin (TE)(1) 3.15% 3.17% 3.02%
Efficiency
Ratio 29.6% 70.5% 44.9%
Tangible
Efficiency
Ratio (TE)(1)(2) 28.9% 67.4% 43.6%
Average Loans
to Average
Deposits 82.1% 92.4% 91.0%
Nonperforming
Assets to Total
Assets (5) 10.40% 0.84% 2.33%
Allowance
for Loan
Losses to
Loans 0.96% 1.09% 1.14%
Net Charge-
offs to
Average
Loans 0.18% 0.53% 2.25%
Average
Equity to
Average
Total Assets 11.24% 10.71% 13.67%
Tier 1
Leverage
Ratio 9.90% 11.27% 11.54%
Common Stock
Dividend
Payout Ratio 6.5% 68.2% 28.4%
Tangible
Common
Equity Ratio 7.35% 7.23% 9.59%
Tangible
Common
Equity to
Risk-
Weighted
Assets 14.49% 9.48% 13.38%
(1) Fully taxable equivalent (TE) calculations include the tax benefit
associated with related income sources that are tax-exempt using a
marginal tax rate of 35%.
(2) Tangible calculations eliminate the effect of goodwill and
acquisition related intangible assets and the corresponding
amortization expense on a tax-effected basis where applicable.
(3) Shares used for book value purposes exclude shares held in treasury
at the end of the period.
(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.
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands except per share data)
BALANCE SHEET
(End of Period) December 31, September 30,
---------------- -----------------------------
2009 2008 % Change 2009
---- ---- -------- ----
ASSETS
------
Cash and Due From
Banks $94,674 $159,716 (40.7%) $66,579
Interest-
bearing
Deposits in
Banks 80,723 186,149 (56.6%) 273,982
------ ------- ----- -------
Total Cash and
Equivalents 175,397 345,865 (49.3%) 340,561
Investment
Securities
Available for
Sale 1,320,476 828,743 59.3% 1,024,868
Investment
Securities Held
to Maturity 260,361 60,733 328.7% 70,951
------- ------ ----- ------
Total
Investment
Securities 1,580,837 889,476 77.7% 1,095,819
Mortgage Loans
Held for Sale 66,945 63,503 5.4% 52,796
Loans, Net of
Unearned Income 5,784,365 3,744,402 54.5% 4,298,412
Allowance for
Loan Losses (55,768) (40,872) 36.4% (48,791)
------- ------- ---- -------
Loans, net 5,728,597 3,703,530 54.7% 4,249,621
Loss Share
Receivable 1,034,734 - 100.0% 88,093
Premises and
Equipment 137,426 131,404 4.6% 130,453
Goodwill and
Other
Intangibles 260,144 259,683 0.2% 258,186
Mortgage
Servicing
Rights 229 188 22.2% 219
Other Assets 716,093 189,577 277.7% 251,619
------- ------- ----- -------
Total Assets $9,700,402 $5,583,226 73.7% $6,467,367
========== ========== ==== ==========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
---------------
Noninterest-
bearing Deposits $985,253 $620,637 58.7% $628,800
Interest-bearing
Deposits 6,570,895 3,375,179 94.7% 4,146,933
--------- --------- ---- ---------
Total Deposits 7,556,148 3,995,816 89.1% 4,775,733
Short-term
Borrowings 90,000 58,000 55.2% 15,000
Securities Sold
Under
Agreements to
Repurchase 173,351 150,213 15.4% 193,234
Long-term Debt 745,864 568,479 31.2% 526,106
Other Liabilities 180,824 76,510 136.3% 106,713
------- ------ ----- -------
Total
Liabilities 8,746,187 4,849,018 80.4% 5,616,786
Total
Shareholders'
Equity 954,215 734,208 30.0% 850,581
------- ------- ---- -------
Total Liabilities
and Shareholders'
Equity $9,700,402 $5,583,226 73.7% $6,467,367
========== ========== ==== ==========
For The Three Months Ended
INCOME STATEMENT December 31,
---------------- --------------------------
2009 2008 % Change
---- ---- --------
Interest Income $85,538 $65,074 31.4%
Interest Expense 27,982 27,907 0.3%
------ ------ ---
Net Interest Income 57,556 37,167 54.9%
Provision for Loan Losses 9,260 6,206 49.2%
----- ----- ----
Net Interest Income After
Provision for Loan Losses 48,296 30,961 56.0%
Service Charges 6,253 5,851 6.9%
ATM / Debit Card Fee Income 2,340 1,804 29.7%
BOLI Proceeds and Cash Surrender Value
Income 729 679 7.5%
Gain on Acquisition 169,872 - 100.0%
Gain on Sale of Loans, net 8,506 4,292 98.2%
Gain (Loss) on Sale of
Investments, net 878 525 67.3%
Title Revenue 4,127 3,806 8.4%
Broker Commissions 1,048 1,156 (9.4%)
Other Noninterest Income 2,600 2,275 14.3%
----- ----- ----
Total Noninterest Income 196,353 20,388 863.1%
Salaries and Employee Benefits 34,339 22,362 53.6%
Occupancy and Equipment 7,068 5,702 23.9%
Amortization of Acquisition
Intangibles 1,022 684 49.5%
Other Noninterest Expense 32,685 11,804 176.9%
------ ------ -----
Total Noninterest Expense 75,114 40,552 85.2%
Income Before Income Taxes 169,535 10,797 (1470.2%)
Income Taxes 60,633 2,521 (2304.7%)
------ ----- -------
Net Income $108,902 $8,276 (1215.9%)
======== ====== =======
Preferred Stock Dividends - (348) 0.0%
---- ---- ===
Earnings Available to Common
Shareholders -Basic 108,902 7,928 (1273.7%)
======= ===== =======
Earnings Allocated to Unvested
Restricted Stock (2,717) (212) 1184.5%
------ ---- ======
Earnings Available to Common
Shareholders -Diluted 106,185 7,716 1276.1%
======= ===== ======
Earnings Per Share, diluted $5.23 $0.57 817.6%
===== ===== =====
For The Twelve Months Ended
INCOME STATEMENT December 31,
---------------- ---------------------------
2009 2008 % Change
---- ---- --------
Interest Income $270,387 $263,827 2.5%
Interest Expense 97,602 126,183 (22.7%)
------ ------- -----
Net Interest Income 172,785 137,644 25.5%
Provision for Loan Losses 45,370 12,568 261.0%
------ ------ -----
Net Interest Income After
Provision for Loan Losses 127,415 125,076 1.9%
Service Charges 22,986 23,025 (0.2%)
ATM / Debit Card Fee Income 7,975 6,820 16.9%
BOLI Proceeds and Cash Surrender Value
Income 2,892 2,966 (2.5%)
Gain on Acquisition 227,342 - 100.0%
Gain on Sale of Loans, net 35,108 25,295 38.8%
Gain (Loss) on Sale of
Investments, net 6,736 1,137 492.2%
Title Revenue 18,476 19,003 (2.8%)
Broker Commissions 4,592 5,528 (16.9%)
Other Noninterest Income 6,879 8,158 (15.7%)
----- ----- -----
Total Noninterest Income 332,986 91,932 262.2%
Salaries and Employee Benefits 114,379 88,971 28.6%
Occupancy and Equipment 24,337 23,294 4.5%
Amortization of Acquisition
Intangibles 2,893 2,408 20.1%
Other Noninterest Expense 81,651 46,553 75.4%
------ ------ ----
Total Noninterest Expense 223,260 161,226 38.5%
Income Before Income Taxes 237,141 55,782 325.1%
Income Taxes 85,891 15,870 441.2%
------ ------ -----
Net Income $151,250 $39,912 279.0%
======== ======= =====
Preferred Stock Dividends (3,350) (348) 100.0%
------ ---- =====
Earnings Available to Common
Shareholders -Basic 147,900 39,564 273.8%
======= ====== =====
Earnings Allocated to Unvested
Restricted Stock (3,733) (905) 312.5%
------ ---- =====
Earnings Available to Common
Shareholders -Diluted 144,167 38,659 272.9%
======= ====== =====
Earnings Per Share, diluted $8.03 $2.96 170.8%
===== ===== =====
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands except per share data)
For The Quarter Ended
----------------------------------------------------
BALANCE SHEET December September June March December
(Average) 31, 30, 30, 31, 31,
------------- 2009 2009 2009 2009 2008
---- ---- ---- ---- ----
ASSETS
------
Cash and
Due From
Banks $75,435 $59,975 $78,939 $78,204 $77,896
Interest-
bearing
Deposits in
Banks 305,371 299,591 61,115 130,584 106,618
Investment
Securities 1,327,579 1,074,896 1,033,274 995,766 889,983
Mortgage
Loans
Held for Sale 58,785 60,350 89,298 81,910 44,841
Loans, Net of
Unearned
Income 5,070,584 4,049,351 3,788,273 3,743,032 3,662,020
Allowance for
Loan Losses (49,442) (45,711) (42,970) (40,711) (39,640)
Loss Share
Receivable 590,804 38,784 - - -
Other Assets 787,488 592,455 585,016 583,373 583,147
------- ------- ------- ------- -------
Total Assets $8,166,604 $6,129,691 $5,592,945 $5,572,158 $5,324,865
========== ========== ========== ========== ==========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
---------------
Noninterest-
bearing
Deposits $804,918 $583,229 $570,298 $554,269 $575,738
Interest-
bearing
Deposits 5,368,692 3,864,927 3,558,739 3,461,866 3,388,765
--------- --------- --------- --------- ---------
Total
Deposits 6,173,610 4,448,156 4,129,037 4,016,135 3,964,503
Short-term
Borrowings 31,054 2,174 22,489 45,760 32,367
Securities Sold
Under
Agreements to
Repurchase 188,339 210,115 149,664 141,186 138,763
Long-term
Debt 681,789 536,877 541,557 552,838 567,562
Other
Liabilities 174,133 94,189 86,819 72,430 51,473
------- ------ ------ ------ ------
Total
Liabilities 7,248,925 5,291,511 4,929,566 4,828,349 4,754,668
Total
Shareholders'
Equity 917,679 838,180 663,379 743,809 570,197
------- ------- ------- ------- -------
Total
Liabilities
and
Shareholders'
Equity $8,166,604 $6,129,691 $5,592,945 $5,572,158 $5,324,865
========== ========== ========== ========== ==========
2009 2008
---------------------------------------- ----
Fourth Third Second First Fourth
INCOME STATEMENT Quarter Quarter Quarter Quarter Quarter
---------------- ------- ------- ------- ------- -------
Interest
Income $85,538 $63,554 $60,974 $60,321 $65,074
Interest
Expense 27,982 22,888 22,698 24,034 27,907
------ ------ ------ ------ ------
Net
Interest
Income 57,556 40,666 38,276 36,287 37,167
Provision
for Loan
Losses 9,260 25,295 7,783 3,032 6,206
----- ------ ----- ----- -----
Net
Interest
Income
After
Provision
for Loan
Losses 48,296 15,371 30,493 33,255 30,961
Total
Noninterest
Income 196,353 80,874 32,030 23,730 20,388
Total
Noninterest
Expense 75,114 54,540 49,814 43,792 40,552
------ ------ ------ ------ ------
Income
Before
Income
Taxes 169,535 41,705 12,709 13,193 10,797
Income
Taxes 60,633 16,976 4,235 4,048 2,521
------ ------ ----- ----- -----
Net
Income $108,902 $24,729 $8,474 $9,145 $8,276
======== ======= ====== ====== ======
Preferred
Stock
Dividends - - - (3,350) (348)
==== ==== ==== ====== ====
Earnings
Available to
Common
Shareholders
- Basic $108,902 $24,729 $8,474 $5,795 $7,928
======== ======= ====== ====== ======
Earnings
Allocated to
Unvested
Restricted
Stock (2,717) (603) (250) (169) (212)
------ ---- ---- ---- ----
Earnings
Available to
Common
Shareholders
- Diluted $106,185 $24,126 $8,224 $5,626 $7,716
======== ======= ====== ====== ======
Earnings Per
Share, basic $5.27 $1.22 $0.53 $0.36 $0.58
===== ===== ===== ===== =====
Earnings Per
Share, diluted $5.23 $1.21 $0.52 $0.36 $0.57
===== ===== ===== ===== =====
Book Value Per
Share $46.04 $41.41 $41.13 $40.98 $40.53
====== ====== ====== ====== ======
Return on
Average
Assets 5.29% 1.60% 0.61% 0.68% 0.62%
Return on
Average
Common
Equity 46.94% 11.66% 5.11% 3.59% 5.80%
Return on
Average
Tangible
Common
Equity 66.26% 17.10% 8.75% 6.35% 11.74%
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands)
LOANS RECEIVABLE December 31, September 30,
---------------- --------------------------------
2009 2008 % Change 2009
---- ---- -------- ----
Residential
Mortgage
Loans:
Residential 1-
4 Family $975,395 $498,740 95.6% $514,111
Construction/
Owner Occupied 32,857 36,693 (10.5%) 19,737
------ ------ ----- ------
Total
Residential
Mortgage Loans 1,008,252 535,433 88.3% 533,848
Commercial Loans:
Real Estate 2,499,843 1,522,965 64.1% 1,817,634
Business 1,218,014 775,625 57.0% 1,005,862
--------- ------- ---- ---------
Total
Commercial
Loans 3,717,857 2,298,590 61.7% 2,823,496
Consumer Loans:
Indirect
Automobile 259,339 265,722 (2.4%) 267,801
Home Equity 649,821 501,036 29.7% 523,227
Automobile 30,552 28,464 7.3% 30,782
Credit Card
Loans 44,561 38,014 17.2% 42,527
Other 73,983 77,143 (4.1%) 76,731
------ ------ ---- ------
Total
Consumer
Loans 1,058,256 910,379 16.2% 941,068
--------- ------- ---- -------
Total Loans
Receivable 5,784,365 3,744,402 54.5% 4,298,412
====
Allowance for
Loan Losses (55,768) (40,872) (48,791)
------- ------- -------
Loans
Receivable,
Net $5,728,597 $3,703,530 $4,249,621
========== ========== ==========
ASSET QUALITY
DATA December 31, September 30,
------------- ---------------------------------
2009 2008 % Change 2009
---- ---- -------- ----
Nonaccrual Loans $890,993 $27,825 3102.2% $123,304
Foreclosed Assets 35 38 (6.2%) 55
Other Real Estate
Owned 74,056 16,274 355.1% 22,906
Accruing Loans
More Than 90
Days Past Due 43,952 2,481 1671.6% 4,698
------ ----- ------ -----
Total
Nonperforming
Assets $1,009,036 $46,618 2064.5% $150,963
========== ======= ====== ========
Nonperforming
Assets to Total
Assets 10.40% 0.83% 1160.3% 2.33%
Nonperforming
Assets to Total
Loans and OREO 17.22% 1.24% 1289.5% 3.49%
Allowance for
Loan Losses to
Nonperforming
Loans (1) 6.0% 134.9% (95.6%) 38.1%
Allowance for
Loan Losses to
Nonperforming
Assets 5.5% 87.7% (93.7%) 32.3%
Allowance for
Loan Losses to
Total Loans 0.96% 1.09% (11.7%) 1.14%
Year to Date
Charge-offs $33,267 $12,882 158.2% $29,892
Year to Date
Recoveries (2,646) (2,900) (8.8%) (1,554)
------ ------ ---- ------
Year to Date
Net Charge-
offs $30,621 $9,982 206.8% $28,338
======= ====== ===== =======
Quarter to Date
Net Charge-offs $2,283 $4,885 (53.3%) $22,980
====== ====== ===== =======
(1) Nonperforming loans consist of nonaccruing loans and accruing loans 90
days or more past due.
DEPOSITS December 31, September 30,
-------- ----------------------------------
2009 2008 % Change 2009
---- ---- -------- ----
Noninterest-
bearing Demand
Accounts $985,253 $620,637 58.7% $628,800
NOW Accounts 1,241,241 821,649 51.1% 959,041
Savings
and Money
Market
Accounts 2,253,065 954,408 136.1% 1,326,202
Certificates
of Deposit 3,076,589 1,599,122 92.4% 1,861,690
--------- --------- ---- ---------
Total
Deposits $7,556,148 $3,995,816 89.1% $4,775,733
========== ========== ==== ==========
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Taxable Equivalent Basis
(dollars in thousands)
For The Quarter Ended
---------------------
December 31, 2009 September 30, 2009
----------------- ------------------
Average Average
Average Yield/ Average Yield/
Balance Rate (%) Balance Rate (%)
------- -------- ------- --------
ASSETS
Earning Assets:
Loans Receivable:
Mortgage Loans $875,454 5.06% $501,196 5.60%
Commercial Loans
(TE) (1) 3,134,273 5.61% 2,614,911 4.75%
Consumer and
Other Loans 1,060,857 5.82% 933,244 6.42%
--------- ---- ------- ----
Total Loans 5,070,584 5.56% 4,049,351 5.23%
Mortgage Loans Held
for Sale 58,785 4.75% 60,350 4.72%
Investment
Securities (TE)
(1)(2) 1,265,385 3.82% 1,040,275 4.03%
Other Earning
Assets 1,030,554 0.18% 380,080 0.28%
--------- ---- ------- ----
Total Earning
Assets 7,425,308 4.64% 5,530,056 4.66%
Allowance for Loan
Losses (49,442) (45,711)
Nonearning Assets 790,738 645,346
------- -------
Total Assets $8,166,604 $6,129,691
========== ==========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-bearing
Liabilities:
Deposits:
NOW Accounts $1,083,574 0.76% $945,141 0.77%
Savings and
Money Market
Accounts 1,806,497 1.48% 1,222,273 1.31%
Certificates
of Deposit 2,478,621 2.37% 1,697,513 2.69%
--------- ---- --------- ----
Total
Interest-
bearing
Deposits 5,368,692 1.75% 3,864,927 1.78%
Short-term
Borrowings 219,394 0.46% 212,289 0.68%
Long-term Debt 681,789 2.33% 536,877 3.75%
------- ---- ------- ----
Total
Interest-
bearing
Liabilities 6,269,875 1.77% 4,614,093 1.96%
Noninterest-
bearing Demand
Deposits 804,918 583,229
Noninterest-bearing
Liabilities 174,132 94,189
------- ------
Total
Liabilities 7,248,925 5,291,511
Shareholders'
Equity 917,679 838,180
------- -------
Total
Liabilities
and
Shareholders'
Equity $8,166,604 $6,129,691
========== ==========
Net Interest Spread $57,556 2.87% $40,666 2.69%
Tax-equivalent
Benefit 1,896 0.09% 1,631 0.12%
Net Interest
Income (TE) /
Net Interest
Margin (TE)(1) $59,452 3.15% $42,297 3.02%
For The Quarter Ended
---------------------
December 31, 2008
-----------------
Average Average
Balance Yield/Rate (%)
------- --------------
ASSETS
Earning Assets:
Loans Receivable:
Mortgage Loans $529,449 5.80%
Commercial Loans
(TE) (1) 2,222,997 5.40%
Consumer and
Other Loans 909,574 6.85%
------- ----
Total Loans 3,662,020 5.83%
Mortgage Loans Held
for Sale 44,841 5.77%
Investment
Securities (TE)
(1)(2) 886,132 5.07%
Other Earning
Assets 185,657 0.87%
------- ----
Total Earning
Assets 4,778,650 5.49%
Allowance for Loan
Losses (39,640)
Nonearning Assets 585,855
-------
Total Assets $5,324,865
==========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-bearing
Liabilities:
Deposits:
NOW Accounts $792,032 1.13%
Savings and
Money Market
Accounts 979,841 1.76%
Certificates
of Deposit 1,616,892 3.54%
--------- ----
Total
Interest-
bearing
Deposits 3,388,765 2.46%
Short-term
Borrowings 171,130 1.10%
Long-term Debt 567,562 4.47%
------- ----
Total
Interest-
bearing
Liabilities 4,127,457 2.67%
Noninterest-
bearing Demand
Deposits 575,738
Noninterest-bearing
Liabilities 51,473
------
Total
Liabilities 4,754,668
Shareholders'
Equity 570,197
-------
Total
Liabilities
and
Shareholders'
Equity $5,324,865
==========
Net Interest Spread $37,167 2.82%
Tax-equivalent
Benefit 1,250 0.10%
Net Interest
Income (TE) /
Net Interest
Margin (TE)(1) $38,417 3.17%
(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.
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Taxable Equivalent Basis
(dollars in thousands)
For The Twelve Months Ended
---------------------------
December 31, 2009 December 31, 2008
----------------- -----------------
Average Average
Average Yield/ Average Yield/
Balance Rate (%) Balance Rate (%)
------- -------- ------- --------
ASSETS
------
Earning Assets:
Loans Receivable:
Mortgage Loans $598,237 5.42% $554,943 5.88%
Commercial Loans (TE)(1) 2,614,425 4.97% 2,113,145 5.68%
Consumer and Other
Loans 953,474 6.32% 867,715 7.12%
------- ---- ------- ----
Total Loans 4,166,136 5.35% 3,535,803 6.07%
Mortgage Loans Held
for Sale 72,489 4.76% 59,551 5.83%
Investment Securities
(TE)(1)(2) 1,070,701 4.20% 876,380 5.08%
Other Earning Assets 423,743 0.27% 188,694 2.28%
------- ---- ------- ----
Total Earning Assets 5,733,069 4.79% 4,660,428 5.72%
Allowance for Loan
Losses (44,735) (39,138)
Nonearning Assets 683,481 585,074
------- -------
Total Assets $6,371,815 $5,206,364
========== ==========
LIABILITIES AND
SHAREHOLDERS' EQUITY
---------------------
Interest-bearing
Liabilities:
Deposits:
NOW Accounts $971,990 0.82% $817,708 1.48%
Savings and
Money Market
Accounts 1,286,254 1.44% 937,026 2.13%
Certificates of
Deposit 1,809,992 2.72% 1,604,973 4.01%
--------- ---- --------- ----
Total
Interest-
bearing
Deposits 4,068,236 1.86% 3,359,707 2.87%
Short-term
Borrowings 197,824 0.66% 205,120 2.14%
Long-term Debt 578,505 3.51% 554,288 4.50%
------- ---- ------- ----
Total
Interest-
bearing
Liabilities 4,844,565 2.01% 4,119,115 3.05%
Noninterest-bearing
Demand Deposits 628,742 509,769
Noninterest-bearing
Liabilities 107,137 49,314
------- ------
Total
Liabilities 5,580,444 4,678,198
Shareholders' Equity 791,371 528,166
------- -------
Total Liabilities
and Shareholders'
Equity $6,371,815 $5,206,364
========== ==========
Net Interest Spread $172,785 2.78% $137,644 2.67%
Tax-equivalent Benefit 6,282 0.11% 4,902 0.10%
Net Interest Income
(TE) /Net Interest
Margin (TE) (1) $179,067 3.09% $142,546 3.03%
(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.
IBERIABANK CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(dollars in thousands)
For The Quarter Ended
---------------------
12/31/2009 9/30/2009 12/31/2008
---------- --------- ----------
Net Interest Income $57,556 $40,666 $37,167
Effect of Tax Benefit on Interest
Income 1,896 1,631 1,250
----- ----- -----
Net Interest Income (TE) (1) 59,452 42,297 38,417
------ ------ ------
Noninterest Income 196,353 80,874 20,388
Effect of Tax Benefit on
Noninterest Income 393 393 365
--- --- ---
Noninterest Income (TE) (1) 196,746 81,267 20,753
------- ------ ------
Total Revenues (TE) (1) $256,198 $123,564 $59,170
======== ======== =======
Total Noninterest Expense $75,114 $54,540 $40,552
Less Intangible Amortization
Expense (1,022) (627) (684)
------ ---- ----
Tangible Operating Expense (2) $74,092 $53,913 $39,868
======= ======= =======
Return on Average Common Equity 46.94% 11.66% 5.80%
Effect of Intangibles (2) 19.32% 5.44% 5.94%
----- ---- ----
Return on Average Tangible Common
Equity (2) 66.26% 17.10% 11.74%
===== ===== =====
Efficiency Ratio 29.6% 44.9% 70.5%
Effect of Tax Benefit Related
to Tax Exempt Income (0.3%) (0.8%) (1.9%)
---- ---- ----
Efficiency Ratio (TE) (1) 29.3% 44.1% 68.6%
Effect of Amortization of
Intangibles (0.4%) (0.5%) (1.2%)
---- ---- ----
Tangible Efficiency Ratio (TE)(1)(2) 28.9% 43.6% 67.4%
==== ==== ====
(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.
SOURCE IBERIABANK Corporation
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