IBERIABANK Corporation Reports Second Quarter Results

Jul 22, 2015, 19:05 ET from IBERIABANK Corporation

LAFAYETTE, La., July 22, 2015 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 128-year-old IBERIABANK (www.iberiabank.com), reported operating results for the second quarter ended June 30, 2015.  For the quarter, the Company reported income available to common shareholders of $30.8 million, or $0.79 fully diluted earnings per share ("EPS").  In the second quarter of 2015, the Company incurred non-operating expenses net of non-operating revenue equal to $15.5 million on a pre-tax basis, or $0.26 per share on an after-tax basis.   Excluding non-operating items, EPS in the second quarter of 2015 was $1.05 per share on a non-GAAP operating basis (refer to press release supplemental table.)  

The Company completed the acquisition of Georgia Commerce Bancshares, Inc. ("Georgia Commerce") on May 31, 2015. On that date, Georgia Commerce had total assets of $1.0 billion, gross loans of $808 million, total deposits of $908 million, and nine bank offices serving the Metro Atlanta market.  Financial statements reflect the impact of the acquisition beginning on the acquisition date and are subject to future refinements to purchase accounting adjustments.  The Company incurred approximately $12.7 million in pre-tax acquisition and conversion-related costs during the second quarter of 2015.

Daryl G. Byrd, President and Chief Executive Officer, commented, "We welcome the former shareholders and clients of Georgia Commerce to our Company.  We believe our combined franchise is well-positioned to experience significant long-term growth in the Metro Atlanta area.  I'm particularly proud of the tremendous effort and teamwork on the part of our legacy associates and our newest team members to successfully complete and convert all of our recent combinations in a high-quality manner. In the brief span of 122 days, our teams completed the acquisitions of three holding companies and four banks, and successfully completed five branch and operating system conversions.  Teamwork, attention to detail, and client service are distinguishing characteristics of our Company."   

Byrd continued, "We achieved improved operating results in second quarter of 2015 despite only a partial phasing-in of acquisition synergies during the quarter.  Our legacy loans and deposits each grew over $500 million during the quarter.  Many of our fee income businesses delivered solid quarterly results, while our energy and indirect automobile lending balances continued to taper down as expected.  In addition, our operating EPS improved 11% on a linked quarter basis and 18% compared to the same quarter last year.  Based on the sustained low interest rate environment and our current expectations and assumptions, our guidance range for operating EPS for the full year of 2015 is in the range of $4.22 to $4.27 per share, equal to a 13% to 14% increase compared to 2014 operating results without the benefit of rising interest rates.  We estimate that each 25-basis point increase in the Federal Funds rate would positively influence our quarterly after-tax EPS by seven cents per share."

Highlights for the second quarter of 2015 and June 30, 2015:

  • On a linked quarter basis, operating revenues increased $31.6 million, or 18%, while operating expenses increased $13.7 million, or 11%.  Operating expenses were impacted by the timing of the Georgia Commerce and Old Florida Bancshares, Inc., acquisitions and conversions.  Georgia Commerce had a full month of operating expenses with very limited cost savings due to the timing of the conversion of the branch and operating systems, which was completed at quarter-end.  The conversions of the Old Florida subsidiaries were completed on April 26, 2015 and May 17, 2015, resulting in a partial phase-in of synergistic benefits during the second quarter of 2015.
  • The net interest margin decreased two basis points on a linked quarter basis to 3.52%, which was consistent with management's expectations.
  • Energy-related loans declined $32 million, or 4%, between March 31, 2015 and June 30, 2015, due to loan pay-downs and pay-offs.  Energy-related loans declined from 6.4% of total loans at March 31, 2015, to 5.6% at June 30, 2015.  At June 30, 2015, the Company had accrued approximately $15 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 67% of energy loans outstanding at June 30, 2015) and limited losses in the service company portfolio.
  • Total loan growth was $1.1 billion, or 8%, between March 31, 2015 and June 30, 2015.  Despite a $32 million decline in energy-related loans and a $44 million decline in 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 $501 million, or 5% (20% annualized rate).
  • Total deposits increased $1.5 billion, or 10%, between quarter-ends, and increased $546 million, or 4%, excluding acquisitions (15% annualized rate).

Table A - IBERIABANK CORPORATION

SUMMARY FINANCIAL RESULTS

(Dollars in thousands, except per share data)

For the Three Months Ended

6/30/2015

3/31/2015

% Change

6/30/2014(1)

% Change

Net income 

$        30,836

$        25,126

22.7

$         16,217

90.1

Earnings per common share - diluted

0.79

0.75

5.3

0.53

49.1

Average gross loans and leases

$ 13,297,724

$ 11,563,946

15.0

$    9,998,533

33.0

Average total deposits

15,132,197

12,761,808

18.6

11,071,698

36.7

Net interest margin (TE) (2)

3.52%

3.54%

3.49%

OPERATING BASIS (NON-GAAP) (3):

Total revenues

$      205,924

$      174,314

18.1

$       153,025

34.6

Total non-interest expense

136,450

122,787

11.1

109,988

24.1

Earnings per common share - diluted

1.05

0.95

10.5

0.89

18.0

Tangible efficiency ratio

65.3%

69.6%

71.3%

Return on average assets

0.89

0.81

0.78

Return on average tangible common equity

11.14

9.92

9.72

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

3.29

3.28

3.45

(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 second 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

During the second quarter, average legacy loan volume increased $413 million and the associated yield declined two basis points, while the average Acquired Asset loan volume increased $1.3 billion and the yield decreased 52 basis points.  The decrease in the Acquired Asset loan yield was primarily due to the mix of lower yielding loans recently acquired.

On a linked quarter basis, average earning assets increased $2.2 billion, or 15%, as average loans increased $1.7 billion, or 15%, average investment securities increased $162 million, or 7%, and other earning assets increased $261 million, or 65%. Also on a linked quarter basis, the average earning asset yield decreased three basis points and the cost of interest-bearing liabilities remained stable.  As a result, the net interest spread decreased three basis points, and the net interest margin decreased two basis points.  Tax-equivalent net interest income increased $20 million, or 16%, as average earning assets increased significantly and the net interest margin decreased slightly on a linked quarter basis.

In the second quarter of 2015, non-interest income increased $12.6 million, or 26%, compared to the first quarter of 2015.  Non-operating income totaled $1.3 million in the second quarter of 2015.  Operating non-interest income increased $11.7 million, or 24%, on a linked quarter basis.  The primary changes in operating non-interest income on a linked quarter basis were:

  • Increased mortgage income of $7.2 million, or 40%;
  • Increased title revenues of $1.5 million, or 33%;
  • Increased energy capital markets income of $1.2 million, or 68%;
  • Increased service charge income on deposit accounts of $0.9 million, or 10%;
  • Increased ATM and debit card fee income of $0.3 million, or 9%; and
  • Increased other operating non-interest income of $0.8 million, primarily due to SBA-related income.

In the second quarter of 2015, the Company originated $700 million in residential mortgage loans, up $205 million, or 41%, on a linked quarter basis.  Client loan refinancing opportunities accounted for approximately 22% of mortgage loan applications in the second quarter of 2015, down compared to 24% in the first quarter of 2015.  The Company sold $663 million in mortgage loans during the second quarter of 2015, up $221 million, or 50%, on a linked quarter basis.  The mortgage origination locked pipeline and loans held for sale increased $50 million, or 18%, between March 31, 2015, and June 30, 2015, to $329 million at quarter-end.  At July 17, 2015, the locked pipeline was $329 million, up $1 million, or less than 1%, compared to June 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 June 30, 2015, down 2% compared to March 31, 2015.  Revenues for IWA increased 7% on a linked quarter basis, and were up 17% compared to the second quarter of 2014.  IBERIA Financial Services revenues increased 3% on a linked quarter basis, and were down 4% compared to the second quarter of 2014.  IBERIA Capital Partners ("ICP") revenues increased 54% on a linked quarter basis, and were down 6% compared to the second quarter of 2014.

Non-interest expense increased $20.1 million, or 15%, on a linked quarter basis, while operating expense increased $13.7 million, or 11%.  Operating expense changes included the following on a linked-quarter basis:

  • Increased compensation and benefit costs of $8.5 million primarily due to:
    • Increased personnel expenses of $3.7 million attributable to Old Florida associates for three months and Georgia Commerce associates for one month in the second quarter of 2015;
    • Increased mortgage commissions of $2.6 million and retail and other commissions of $0.4 million;
    • Increased payroll expenses of $1.1 million for merit increases effective at the beginning of the second quarter of 2015; and
    • Increased all other personnel costs of $0.7 million;
  • Increased occupancy and equipment expense of $1.2 million (all due to acquisitions);
  • Increased FDIC deposit insurance premium of $0.7 million (primarily due to acquisitions);
  • Increased intangible amortization of $0.6 million (all due to acquisitions); and
  • Increased all other operating expenses of $2.7 million (partially due to acquisitions).

 

Table B - IBERIABANK CORPORATION

SUMMARY FINANCIAL CONDITION RATIOS

(Dollars in thousands, except per share data)

As of and For the Three Months Ended

6/30/2015

3/31/2015

% Change

6/30/2014 (1)

% Change

PERIOD-END BALANCES:

Total loans and leases

$ 13,950,563

$ 12,873,461

8.4%

$ 10,899,482

28.0%

Legacy loans and leases

10,395,553

9,894,869

5.1

8,831,945

17.7

Total deposits

16,119,541

14,665,024

9.9

11,981,147

34.5

ASSET QUALITY RATIOS (LEGACY):

Past due loans to total loans(2)

0.78%

0.79%

0.55%

Non-performing assets to total assets(3)

0.55

0.55

0.53

Classified assets to total assets(4)

0.84

0.61

0.60

CAPITAL RATIOS:

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

8.68%

8.62%

8.43%

Tier 1 leverage ratio

9.23

8.87

10.00

Total risk-based capital ratio 

11.47

11.62

12.40

PER SHARE DATA:

Book value

$          57.53

$          56.77

1.3%

$          53.76

7.0%

Tangible book value (6)

39.00

39.25

(0.6)

37.28

4.6

Closing stock price

68.23

63.03

8.3

69.19

(1.4)

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 second 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 $131 million, $91 million and $79 million at June 30, 2015, March 31, 2015 and June 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 intangibles assets and the corresponding amortization expense on a tax-effected basis where applicable.

Loans

Total loans increased $1.1 billion, or 8%, between March 31, 2015, and June 30, 2015.  The Company acquired $801 million in loans in the Georgia Commerce acquisition.  The loan portfolio covered under FDIC loss share protection at June 30, 2015, increased $16 million, or 6%, compared to March 31, 2015 primarily due to the Georgia Commerce acquisition.  Excluding covered and Acquired Assets, total loans increased $501 million, or 5% (20% annualized rate), during the second quarter. Legacy commercial loans increased $382 million, or 5% (which included $50 million in business banking loan growth, up 6%, or 22% annualized rate), legacy consumer loans increased $56 million, or 3%, and legacy mortgage loans increased $63 million, or 11%, during the quarter.  Period-end legacy loan growth during the second quarter of 2015 was strongest in the Houston, Dallas, Orlando, New Orleans, and Memphis markets.  Funded loan origination and renewal mix in the second quarter of 2015 was 39% fixed rate and 61% floating rate, and total loans outstanding (excluding nonaccruals) were 47% fixed and 53% floating.  Loans and commitments originated and/or renewed during the second quarter of 2015 totaled $1.5 billion (up 46% on a linked quarter basis).

Table C - IBERIABANK CORPORATION

PERIOD END LOANS

(Dollars in thousands)

As of and For the Three Months Ended

Linked Qtr Change

Year/Year Change

Mix

6/30/2015

3/31/2015

6/30/2014

$

%

Annualized

$

%

6/30/2015

3/31/2015

Legacy loans:

Commercial

$   7,538,703

$   7,157,090

$   6,393,188

$     381,613

5.3%

21.3%

$  1,145,515

17.9%

73%

72%

Residential mortgage

616,497

553,815

399,240

62,682

11.3%

45.3%

217,257

54.4%

6%

6%

Consumer

2,240,353

2,183,964

2,039,517

56,389

2.6%

10.3%

200,836

9.8%

21%

22%

Total legacy loans

10,395,553

9,894,869

8,831,945

500,684

5.1%

20.2%

1,563,608

17.7%

100%

100%

Acquired loans:

Balance at beginning of period

2,978,592

1,772,330

1,188,372

$  1,206,262

68.1%

$  1,790,220

150.6%

Loans acquired during the period

801,126

1,321,993

999,725

(520,867)

-39.4%

(198,599)

-19.9%

Net paydown activity

(224,708)

(115,731)

(120,560)

(108,977)

94.2%

(104,148)

86.4%

Total acquired loans

3,555,010

2,978,592

2,067,537

576,418

19.4%

1,487,473

71.9%

Total loans

$ 13,950,563

$ 12,873,461

$ 10,899,482

$  1,077,102

8.4%

$  3,051,081

28.0%

Energy-related loans outstanding totaled $788 million at June 30, 2015, down $32 million, or 4%, compared to March 31, 2015, and equated to approximately 5.6% of total loans.  Loans to exploration and production companies accounted for 48% of energy loans outstanding and 54% of energy commitments at June 30, 2015.  Midstream companies accounted for 18% of energy loans and 16% of energy commitments, and service company loans accounted for 34% of energy loans and 30% of energy commitments.  At June 30, 2015, only $1.3 million in energy loans were on non-accrual status and one energy loan totaling $3.4 million that was past due greater than 90 days at quarter-end, but was subsequently brought current after 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 June 30, 2015, the Company's indirect automobile lending business had approximately $323 million in loans outstanding, down $44 million, or 12%, compared to March 31, 2015 (2.3% of total loans outstanding compared to 2.9% at March 31, 2015).

Deposits

Total deposits increased $1.5 billion, or 10%, from March 31, 2015 to June 30, 2015.  The Company acquired $908 million in deposits in the Georgia Commerce acquisition.   Excluding the acquisition, total deposits increased $546 million, or 4% (a 15% annualized growth rate), since March 31, 2015.

Georgia Commerce had $250 million in aggregate non-interest-bearing deposits, or 28% of their aggregate total deposits.  Legacy non-interest-bearing deposits increased $56 million, or 2% (6% annualized basis), and equated to 26% of total deposits at June 30, 2015.  Legacy NOW accounts decreased $177 million, or 7%, while money market account volume increased $704 million, or 14% (56% annualized basis), between March 31, 2015 and June 30, 2015.  Legacy time deposits decreased $30 million, or 1%, between quarter-ends.  Period-end deposit growth during the second quarter of 2015 was strongest in the Houston, Shreveport, Orlando, Memphis, and Sarasota markets.  

Table D - IBERIABANK CORPORATION

PERIOD END DEPOSITS

(Dollars in thousands)

6/30/2015

Linked Qtr Change (1)

Year/Year Change(2)

Mix

Excluding Acquired

Acquired

Total

3/31/2015

6/30/2014

$

%

Annualized

$

%

6/30/2015

3/31/2015

Non-interest-bearing 

$   3,917,111

$ 249,739

$   4,166,850

$   3,860,820

$   3,047,349

56,291

1.5

5.8

1,119,501

36.7

26%

26%

NOW accounts

2,552,421

71,276

2,623,697

2,729,791

2,233,993

(177,370)

(6.5)

(26.0)

389,704

17.4

16%

19%

Money market accounts

5,771,721

427,684

6,199,405

5,067,462

4,092,724

704,259

13.9

55.6

2,106,681

51.5

38%

35%

Savings accounts

722,632

3,001

725,633

728,981

592,643

(6,349)

(0.9)

(3.5)

132,990

22.4

5%

5%

Time deposits

2,247,608

156,348

2,403,956

2,277,970

2,014,438

(30,362)

(1.3)

(5.3)

389,518

19.3

15%

15%

Total deposits

$ 15,211,493

$ 908,048

$ 16,119,541

$ 14,665,024

$ 11,981,147

546,469

3.7

14.9

4,138,394

34.5

100%

100%

(1)

Linked quarter growth excludes the impact of current period acquisitions.

(2)

Year over year growth includes the impact of acquisitions.

On an average balance and linked quarter basis, non-interest-bearing deposits increased $621 million, or 19%, and interest-bearing deposits increased $1.7 billion, or 19%.  The rate on average interest-bearing deposits in the second quarter of 2015 was 0.42%, an increase of two basis points on a linked quarter basis.

Other Assets And Funding

On a linked quarter basis, excess liquidity averaged $583 million in the second quarter of 2015, up $259 million, or 80%, and increased to $600 million at June 30, 2015.  Also on a linked quarter basis, the investment portfolio increased $185 million, or 8%, to $2.5 billion on average in the second quarter of 2015.  On a period-end basis, the investment portfolio equated to $2.5 billion, or 13% of total assets at June 30, 2015, compared to 14% at March 31, 2015.  The investment portfolio had an effective duration of 3.2 years at June 30, 2015, compared to 2.7 years at March 31, 2015.  The investment portfolio had an $8.6 million unrealized gain at June 30, 2015.  The average yield on investment securities decreased 14 basis points on a linked quarter basis to 2.08% in the second quarter of 2015.  The Company holds in its investment portfolio primarily government agency securities.  Municipal securities comprised only 6.5% of total investments at June 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 decreased $285 million, or 38%, and the cost of short-term borrowings was stable at 0.19%.  At June 30, 2015, short-term borrowings declined to $59 million, compared to $738 million one year prior.  Average long-term debt increased $23 million, or 6%, and the cost of long-term debt decreased 37 basis points to 2.54%.  The cost of average interest-bearing liabilities was 0.49% in the second quarter of 2015, unchanged on a linked quarter basis.

Asset Quality

Between March 31, 2015 and June 30, 2015, legacy NPAs increased $4 million, or 5%, due primarily to one relationship that regained current status subsequent to quarter-end.  At June 30, 2015, NPAs included $13 million in former bank branches and related real estate, a decrease of $4 million compared to March 31, 2015.  At June 30, 2015, legacy NPAs equated to 0.55% of total assets and 0.47% of total assets excluding bank-related properties.

Legacy loans past due 30 days or more (excluding non-accruing loans) increased $724,000, or 4%, and represented 0.18% of total loans at June 30, 2015, unchanged compared to March 31, 2015.

Legacy net charge-offs totaled $3.5 million in the second quarter of 2015, up $1.9 million compared to the first quarter of 2015.  The increase in net charge-offs during the second quarter was primarily related to retail and private banking clients located in markets not associated with energy activity, and a reduced level of recoveries.

The Company's provision for loan losses increased $3.4 million on a linked quarter basis due to a $1.9 million increase in net charges-offs, a $2.4 million provision associated with growth in the loan portfolio during the second quarter, and $0.8 million associated with all other factors.

Capital Position

At June 30, 2015, the Company reported a tangible common equity ratio of 8.68%, up six basis points compared to March 31, 2015.  At June 30, 2015, the Company's preliminary Tier 1 leverage ratio was 9.23%, up 36 basis points compared to March 31, 2015. The Company's preliminary total risk-based capital ratio at June 30, 2015, was 11.47%, down 15 basis points compared to March 31, 2015. 

Commencing in the first quarter of 2015, the Company experienced a 75% phase-out of Tier 1 capital treatment for its trust preferred securities with no commensurate change in total regulatory capital.  At year-end 2014, the Company experienced the expiration of FDIC loss share protection on non-single family loans associated with three FDIC-assisted transactions and in the third quarter of 2015, the Company will experience the expiration of a fourth FDIC loss share program.  The expiration of FDIC loss share coverage on those assets results in increased risk weighting associated with those assets. The influence of the phase-out of Tier 1 treatment on trust preferred securities, the expiration of certain FDIC loss share coverage, and full implementation of risk-weighting according to BASEL III capital requirements reduced the Company's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk based capital ratio.

At June 30, 2015, book value per share was $57.53, up $0.76 per share, or 1%, compared to March 31, 2015. Tangible book value per share was $39.00, down $0.25 per share, or less than 1%, compared to March 31, 2015.  Based on the closing stock price of the Company's common stock of $68.68 per share on July 22, 2015, this price equated to 1.19 times June 30, 2015 book value and 1.76 times June 30, 2015 tangible book value per share.

On June 16, 2015, 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 1.98%.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with 327 combined offices, including 226 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 67 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 $2.8 billion, based on the NASDAQ Global Select Market closing stock price on July 22, 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, July 23, 2015, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 0430256.  A replay of the call will be available until midnight Central Time on July 30, 2015 by dialing 1-877-344-7529. The confirmation code for the replay is 10068821.  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 full year 2015 was based on the following significant assumptions:

  • Recent forward interest rate curve projections;
  • Achievement of targeted synergies associated with acquisitions that were completed in the first half of 2015;
  • 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; and
  • Mortgage, title insurance, and capital markets projections continue to reflect the current environment and expectations.

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, the modest trading volume of our common stock, 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:

6/30/2015

3/31/2015

% Change

6/30/2014 (1)

% Change

Net interest income

$ 145,677

$ 125,804

15.8

$ 109,273

33.3

Net interest income (TE)(2)

147,673

127,844

15.5

111,464

32.5

Total revenues 

207,190

174,703

18.6

153,034

35.4

Provision for loan losses

8,790

5,345

64.5

4,748

85.1

Non-interest expenses

153,209

133,153

15.1

127,132

20.5

Net income

30,836

25,126

22.7

16,217

90.1

PER SHARE DATA:

Earnings available to common shareholders - basic

$       0.79

$       0.75

5.3

$       0.53

49.1

Earnings available to common shareholders - diluted

0.79

0.75

5.3

0.53

49.1

Operating earnings (Non-GAAP) (3)

1.05

0.95

10.5

0.89

18.0

Book value

57.53

56.77

1.3

53.76

7.0

Tangible book value (4)

39.00

39.25

(0.6)

37.28

4.6

Closing stock price

68.23

63.03

8.3

69.19

(1.4)

Cash dividends

0.34

0.34

-

0.34

-

KEY RATIOS AND OTHER DATA (7):

Net interest margin (TE)(2)

3.52%

3.54%

3.49%

Efficiency ratio

73.9

76.2

83.1

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

64.4

68.5

69.8

Return on average assets

0.67

0.64

0.46

Return on average common equity

5.54

5.39

3.99

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

11.14

9.92

9.72

Effective tax rate

31.8%

30.6%

23.3%

Full-time equivalent employees

3,215

2,883

2,760

CAPITAL RATIOS:

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

8.68%

8.62%

8.43%

Tangible common equity to risk-weighted assets(4)

9.89

9.92

10.37

Tier 1 leverage ratio

9.23

8.87

10.00

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

9.88

9.79

N/A

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

9.71

9.66

N/A

Tier 1 capital (transitional) (5)

10.06

9.99

11.20

Total risk-based capital ratio (5)

11.47

11.62

12.40

Common stock dividend payout ratio

45.3

51.7

70.1

Classified assets to Tier 1 capital

20.0

17.6

24.0

ASSET QUALITY RATIOS (LEGACY):

Non-performing assets to total assets(7)

0.55%

0.55%

0.53%

Allowance for loan losses to loans

0.81

0.80

0.80

Net charge-offs to average loans (annualized)

0.14

0.06

0.04

Non-performing assets to total loans and OREO (7)

0.83

0.83

0.78

(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 second 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 intangibles assets and the corresponding amortization expense on a tax-effected basis where applicable.

(5)

Capital ratios as of June 30, 2015 are estimated.

(6)

March 31, 2015 capital ratios reflect the implementation of Basel III capital requirements, excluding the impact of the Old Florida Bancshares, Inc. acquisition. Prior periods have not been restated to reflect Basel III implementation.

(7)

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

(8)

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

6/30/2015

3/31/2015

$

%

12/31/2014 (1)

9/30/2014(1)

6/30/2014 (1)

$

%

Interest income

$  160,545

$  138,585

21,960

15.8

$         137,276

$       133,793

$       119,514

41,031

34.3

Interest expense

14,868

12,781

2,087

16.3

12,596

12,042

10,241

4,627

45.2

       Net interest income

145,677

125,804

19,873

15.8

124,680

121,751

109,273

36,404

33.3

Provision for loan losses

8,790

5,345

3,445

64.5

6,495

5,714

4,748

4,042

85.1

Net interest income after provision for loan losses

136,887

120,459

16,428

13.6

118,185

116,037

104,525

32,362

31.0

Mortgage income

25,246

18,023

7,223

40.1

13,646

14,263

13,755

11,491

83.5

Service charges on deposit accounts

10,162

9,262

900

9.7

10,153

10,205

8,203

1,959

23.9

Title revenue

6,146

4,629

1,517

32.8

5,486

5,577

5,262

884

16.8

Broker commissions

5,461

4,162

1,299

31.2

3,960

5,297

5,479

(18)

(0.3)

ATM/debit card fee income

3,583

3,275

308

9.4

3,331

3,287

2,937

646

22.0

Income from bank owned life insurance

1,075

1,092

(17)

(1.5)

1,050

1,047

935

140

15.0

Gain on sale of available-for-sale securities

903

386

517

134.1

162

582

8

895

 N/M 

Other non-interest income

8,937

8,070

867

10.7

9,284

6,854

7,182

1,755

24.4

Total non-interest income

61,513

48,899

12,614

25.8

47,072

47,112

43,761

17,752

40.6

Salaries and employee benefits

84,019

72,696

11,323

15.6

65,445

64,934

68,846

15,173

22.0

Occupancy and equipment

17,366

16,260

1,106

6.8

14,594

14,883

16,104

1,262

7.8

Amortization of acquisition intangibles

2,155

1,523

632

41.5

1,618

1,623

1,347

808

60.0

Other non-interest expense

49,669

42,674

6,995

16.4

37,478

38,672

40,835

8,834

21.6

Total non-interest expense

153,209

133,153

20,056

15.1

119,135

120,112

127,132

26,077

20.5

Income before income taxes

45,191

36,205

8,986

24.8

46,122

43,037

21,154

24,037

113.6

Income tax expense

14,355

11,079

3,276

29.6

10,186

12,144

4,937

9,418

190.8

Net income

$    30,836

$    25,126

5,710

22.7

$           35,936

$         30,893

$         16,217

14,619

90.1

Income available to common shareholders - basic

$    30,836

$    25,126

5,710

22.7

$           35,936

$         30,893

$         16,217

14,619

90.1

Earnings allocated to unvested restricted stock

(355)

(344)

(11)

3.2

(523)

(462)

(250)

(105)

42.0

Income available to common shareholders - diluted

$    30,481

$    24,782

5,699

23.0

$           35,413

$         30,431

$         15,967

14,514

90.9

Earnings per common share - basic

$        0.79

$        0.75

0.04

5.3

$               1.08

$             0.93

$             0.53

0.26

49.1

Earnings per common share - diluted

$        0.79

$        0.75

0.04

5.3

$               1.07

$             0.92

$             0.53

0.26

49.1

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

0.26

0.20

0.06

30.0

(0.02)

0.12

0.36

(0.10)

(27.8)

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

$        1.05

$        0.95

0.10

10.5

$               1.05

$             1.04

$             0.89

0.16

18.0

NUMBER OF SHARES OUTSTANDING (in thousands)

Weighted average common shares outstanding - basic

39,015

33,659

5,356

15.9

33,333

33,310

30,788

8,228

26.7

Weighted average common shares outstanding - diluted

38,667

33,235

5,432

16.3

32,947

32,927

30,386

8,281

27.3

Book value shares (period end)(3)

41,117

38,178

2,939

7.7

33,453

33,441

33,410

7,707

23.1

(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 second and third quarters 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, September 30, 2014 and June 30, 2014.

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

     

Table 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except per share data)

For the Six Months Ended

6/30/2015

6/30/2014 (1)

$ Change

% Change

Interest income

$  299,130

$       233,746

$  65,384

28.0

Interest expense

27,649

20,065

7,584

37.8

Net interest income

271,481

213,681

57,800

27.0

Provision for loan losses

14,135

6,851

7,284

106.3

Net interest income after provision for loan losses

257,346

206,830

50,516

24.4

Mortgage income

43,269

23,887

19,382

81.1

Service charges on deposit accounts

19,424

15,216

4,208

27.7

Title revenue

10,775

9,429

1,346

14.3

Broker commissions

9,623

9,526

97

1.0

ATM/debit card fee income

6,858

5,404

1,454

26.9

Income from bank owned life insurance

2,167

3,376

(1,209)

(35.8)

Gain on sale of available-for-sale securities

1,289

27

1,262

 N/M 

Other non-interest income

17,007

12,577

4,430

35.2

Total non-interest income

110,412

79,442

30,970

39.0

Salaries and employee benefits

156,715

128,707

28,008

21.8

Occupancy and equipment

33,626

30,094

3,532

11.7

Amortization of acquisition intangibles

3,678

2,565

1,113

43.4

Other non-interest expense

92,343

73,000

19,343

26.5

Total non-interest expense

286,362

234,366

51,996

22.2

Income before income taxes

81,396

51,906

29,490

56.8

Income tax expense

25,434

13,353

12,081

90.5

Net income

$    55,962

$         38,553

$  17,409

45.2

Income available to common shareholders - basic

$    55,962

$         38,553

$  17,409

45.2

Earnings allocated to unvested restricted stock

(675)

(641)

(34)

5.3

Income available to common shareholders - diluted

$    55,287

$         37,912

$  17,374

45.8

Earnings per common share - basic

$        1.54

$             1.27

$      0.27

21.3

Earnings per common share - diluted

$        1.54

$             1.27

$      0.27

21.3

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

0.46

0.35

0.11

31.4

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

$        2.00

$             1.62

$      0.38

23.5

NUMBER OF SHARES OUTSTANDING (in thousands)

Weighted average common shares outstanding - basic

36,352

30,303

6,049

20.0

Weighted average common shares outstanding - diluted

35,966

29,904

6,062

20.3

Book value shares (period end) 

41,117

33,410

7,707

23.1

(1)

Certain balances and amounts for the six months ended June 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 six months ended June 30, 2014 as previously disclosed. 

(2)

See Table 11 for GAAP to Non-GAAP reconciliation.  

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

     

TABLE 4 - IBERIABANK CORPORATION 

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

PERIOD-END BALANCES

Linked Qtr Change

Year/Year Change

ASSETS

6/30/2015

3/31/2015

$

%

12/31/2014 (1)

9/30/2014 (1)

6/30/2014 (1)

$

%

Cash and due from banks

$     300,257

$     268,241

32,016

11.9

$     251,994

$     257,147

$     286,615

13,642

4.8

Interest-bearing deposits in other banks

591,018

696,000

(104,982)

(15.1)

296,101

410,860

381,955

209,063

54.7

Total cash and cash equivalents

891,275

964,241

(72,966)

(7.6)

548,095

668,007

668,570

222,705

33.3

Investment securities available for sale

2,413,158

2,342,613

70,545

3.0

2,158,853

2,103,828

2,008,953

404,205

20.1

Investment securities held to maturity

101,475

113,442

(11,967)

(10.5)

116,960

120,520

132,245

(30,770)

(23.3)

Total investment securities

2,514,633

2,456,055

58,578

2.4

2,275,813

2,224,348

2,141,198

373,435

17.4

Mortgage loans held for sale

220,765

215,044

5,721

2.7

140,072

148,530

176,074

44,691

25.4

Loans, net of unearned income

13,950,563

12,873,461

1,077,102

8.4

11,441,044

11,080,887

10,899,482

3,051,081

28.0

Allowance for loan losses

(128,149)

(128,313)

164

(0.1)

(130,131)

(134,540)

(133,519)

5,370

(4.0)

Loans, net

13,822,414

12,745,148

1,077,266

8.5

11,310,913

10,946,347

10,765,963

3,056,451

28.4

Loss share receivable

50,452

60,972

(10,520)

(17.3)

69,627

94,712

120,532

(70,080)

(58.1)

Premises and equipment

342,949

337,201

5,748

1.7

307,159

307,868

307,090

35,859

11.7

Goodwill and other intangibles

765,813

672,337

93,476

13.9

548,130

553,668

553,100

212,713

38.5

Other assets

630,627

600,764

29,863

5.0

558,095

570,969

589,930

40,697

6.9

Total assets

$ 19,238,928

$ 18,051,762

1,187,166

6.6

$ 15,757,904

$ 15,514,449

$ 15,322,457

3,916,471

25.6

LIABILITIES AND SHAREHOLDERS' EQUITY

Non-interest-bearing deposits

$  4,166,850

$  3,860,820

306,030

7.9

$  3,195,430

$  3,157,453

$  3,047,349

1,119,501

36.7

NOW accounts

2,623,697

2,729,791

(106,094)

(3.9)

2,462,841

2,194,803

2,233,993

389,704

17.4

Savings and money market accounts

6,925,038

5,796,443

1,128,595

19.5

4,746,017

4,921,510

4,685,367

2,239,671

47.8

Certificates of deposit

2,403,956

2,277,970

125,986

5.5

2,116,237

2,103,925

2,014,438

389,518

19.3

Total deposits

16,119,541

14,665,024

1,454,517

9.9

12,520,525

12,377,691

11,981,147

4,138,394

34.5

Short-term borrowings

59,300

352,300

(293,000)

(83.2)

603,000

553,000

738,000

(678,700)

(92.0)

Securities sold under agreements to repurchase

209,004

252,602

(43,598)

(17.3)

242,742

259,783

296,741

(87,737)

(29.6)

Trust preferred securities

120,110

111,862

8,248

7.4

111,862

111,862

111,862

8,248

7.4

Other long-term debt

222,202

349,027

(126,825)

(36.3)

291,392

243,707

253,885

(31,683)

(12.5)

Other liabilities

143,487

153,617

(10,130)

(6.6)

136,235

152,732

144,539

(1,052)

(0.7)

Total liabilities

16,873,644

15,884,432

989,212

6.2

13,905,756

13,698,775

13,526,174

3,347,470

24.7

Total shareholders' equity

2,365,284

2,167,330

197,954

9.1

1,852,148

1,815,674

1,796,283

569,001

31.7

Total liabilities and shareholders' equity

$ 19,238,928

$ 18,051,762

1,187,166

6.6

$ 15,757,904

$ 15,514,449

$ 15,322,457

3,916,471

25.6

AVERAGE BALANCES

Linked Qtr Change

Year/Year Change

ASSETS

6/30/2015

3/31/2015

$

%

12/31/2014

9/30/2014

6/30/2014

$

%

Cash and due from banks

$     263,844

$     243,566

20,278

8.3

$     239,377

$     229,556

$     237,631

26,213

11.0

Interest-bearing deposits in other banks

582,032

324,150

257,882

79.6

353,716

489,221

237,712

344,320

144.8

Total cash and cash equivalents

845,876

567,716

278,160

49.0

593,093

718,777

475,343

370,533

78.0

Investment securities available for sale

2,417,002

2,223,344

193,658

8.7

2,142,981

2,046,170

1,977,484

439,518

22.2

Investment securities held to maturity

106,871

115,188

(8,317)

(7.2)

118,588

122,175

143,504

(36,633)

(25.5)

Total investment securities

2,523,873

2,338,532

185,341

7.9

2,261,569

2,168,345

2,120,988

402,885

19.0

Mortgage loans held for sale

202,691

133,304

69,387

52.1

121,438

163,510

140,096

62,595

44.7

Loans, net of unearned income

13,297,724

11,563,946

1,733,778

15.0

11,271,752

11,009,833

9,998,533

3,299,191

33.0

Allowance for loan losses

(129,069)

(128,519)

(550)

0.4

(134,177)

(133,443)

(132,049)

2,980

(2.3)

Loans, net

13,168,655

11,435,427

1,733,228

15.2

11,137,575

10,876,390

9,866,484

3,302,171

33.5

Loss share receivable

55,751

66,165

(10,414)

(15.7)

85,733

111,383

131,375

(75,624)

(57.6)

Premises and equipment

341,829

311,158

30,671

9.9

308,223

307,804

296,927

44,902

15.1

Goodwill and other intangibles

708,085

555,565

152,520

27.5

552,888

553,148

465,892

242,193

52.0

Other assets

598,526

549,746

48,780

8.9

553,804

576,851

544,077

54,449

10.0

Total assets

$ 18,445,286

$ 15,957,613

2,487,673

15.6

$ 15,614,323

$ 15,476,208

$ 14,041,182

4,404,104

31.4

LIABILITIES AND SHAREHOLDERS' EQUITY

Non-interest-bearing deposits

$  3,933,468

$  3,312,357

621,111

18.8

$  3,228,773

$  3,057,513

$  2,748,468

1,185,000

43.1

NOW accounts

2,639,140

2,464,760

174,380

7.1

2,271,836

2,228,378

2,229,264

409,876

18.4

Savings and money market accounts

6,228,052

4,834,244

1,393,808

28.8

4,908,247

4,877,051

4,372,855

1,855,197

42.4

Certificates of deposit

2,331,537

2,150,447

181,090

8.4

2,105,623

2,060,055

1,721,111

610,426

35.5

Total deposits

15,132,197

12,761,808

2,370,389

18.6

12,514,479

12,222,997

11,071,698

4,060,499

36.7

Short-term borrowings

225,437

483,413

(257,976)

(53.4)

449,190

627,192

632,778

(407,341)

(64.4)

Securities sold under agreements to repurchase

236,305

263,645

(27,340)

(10.4)

264,194

292,677

274,681

(38,376)

(14.0)

Trust preferred securities

114,581

111,862

2,719

2.4

111,862

111,862

111,862

2,719

2.4

Other long-term debt

332,413

311,633

20,780

6.7

283,548

247,108

192,845

139,568

72.4

Other liabilities

172,227

135,477

36,750

27.1

159,818

168,262

125,654

46,573

37.1

Total liabilities

16,213,160

14,067,838

2,145,322

15.2

13,783,091

13,670,098

12,409,518

3,803,642

30.7

Total shareholders' equity

2,232,126

1,889,775

342,351

18.1

1,831,232

1,806,110

1,631,664

600,462

36.8

Total liabilities and shareholders' equity

$ 18,445,286

$ 15,957,613

2,487,673

15.6

$ 15,614,323

$ 15,476,208

$ 14,041,182

4,404,104

31.4

(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 second and third quarters 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

6/30/2015

3/31/2015

$

%

12/31/2014

9/30/2014

6/30/2014

$

%

Commercial loans:

Real estate

$   5,887,183

$   5,157,670

$     729,513

14.1

$   4,405,133

$   4,281,704

$   4,272,430

$  1,614,753

37.8

Business

3,971,042

3,751,993

219,049

5.8

3,408,949

3,225,691

3,107,137

863,905

27.8

Total commercial loans

9,858,225

8,909,663

948,562

10.6

7,814,082

7,507,395

7,379,567

2,478,658

33.6

Residential mortgage loans

1,169,608

1,164,286

5,322

0.5

1,080,297

1,062,779

1,059,743

109,865

10.4

Consumer loans:

Home equity

1,971,073

1,858,088

112,985

6.1

1,601,105

1,567,415

1,527,057

444,016

29.1

Indirect automobile

322,958

367,349

(44,391)

(12.1)

397,158

394,691

392,355

(69,397)

(17.7)

Automobile

173,924

160,518

13,406

8.4

149,901

140,287

125,202

48,722

38.9

Credit card

74,314

72,711

1,603

2.2

73,393

69,352

65,892

8,422

12.8

Other

380,461

340,846

39,615

11.6

325,108

338,968

349,666

30,795

8.8

Total consumer loans

2,922,730

2,799,512

123,218

4.4

2,546,665

2,510,713

2,460,172

462,558

18.8

Total loans

$ 13,950,563

$ 12,873,461

$  1,077,102

8.4

$ 11,441,044

$ 11,080,887

$ 10,899,482

$  3,051,081

28.0

Allowance for loan losses

(128,149)

(128,313)

164

(0.1)

(130,131)

(134,540)

(133,519)

5,370

(4.0)

Loans, net 

13,822,414

12,745,148

1,077,266

8.5

11,310,913

10,946,347

10,765,963

3,056,451

28.4

Reserve for unfunded commitments

(13,244)

(12,849)

(395)

3.1

(11,801)

(12,099)

(11,260)

(1,984)

17.6

Allowance for credit losses

(141,393)

(141,162)

(231)

0.2

(141,932)

(146,639)

(144,779)

3,386

(2.3)

ASSET QUALITY DATA (1)

Non-accrual loans

$      192,385

$      195,371

$       (2,986)

(1.5)

$      169,686

$      195,680

$      208,673

$     (16,288)

(7.8)

Other real estate owned and foreclosed assets

49,929

53,194

(3,265)

(6.1)

53,947

63,386

84,479

(34,550)

(40.9)

Accruing loans more than 90 days past due

4,607

5,642

(1,035)

(18.3)

1,708

190

1,095

3,512

320.9

Total non-performing assets

$      246,921

$      254,207

$       (7,286)

(2.9)

$      225,341

$      259,256

$      294,247

$     (47,326)

(16.1)

Loans 30-89 days past due

$        39,005

$        32,835

$         6,170

18.8

$        51,141

$        23,784

$        31,875

$         7,130

22.4

Non-performing assets to total assets

1.28%

1.41%

(0.13)

1.43%

1.67%

1.92%

(0.64)

Non-performing assets to total loans and OREO

1.76

1.97

(0.21)

1.96

2.32

2.68

(0.92)

Allowance for loan losses to non-performing loans (2)

65.1

63.8

1.25

75.9

68.8

63.7

1.40

Allowance for loan losses to non-performing assets

51.9

50.5

1.40

57.7

51.9

45.4

6.52

Allowance for loan losses to total loans

0.92

1.00

(0.08)

1.14

1.21

1.22

(0.29)

Quarter-to-date charge-offs

$          4,808

$          2,972

1,836

61.8

$          3,413

$          3,261

$          2,752

2,056

74.7

Quarter-to-date recoveries

(1,034)

(1,237)

203

(16.4)

(1,658)

(1,053)

(1,895)

861

(45.4)

Quarter-to-date net charge-offs

$          3,774

$          1,735

$         2,039

117.6

$          1,755

$          2,208

$             857

$         2,917

340.4

Net charge-offs to average loans (annualized)

0.11%

0.06%

0.06%

0.08%

0.03%

(1)

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

(2)

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

6/30/2015

3/31/2015

$

%

12/31/2014

9/30/2014

6/30/2014

$

%

Commercial loans:

Real estate

$   4,138,519

$ 3,878,824

$  259,695

6.7

$  3,718,058

$ 3,527,612

$ 3,452,649

$     685,870

19.9

Business

3,400,184

3,278,266

121,918

3.7

3,284,140

3,093,873

2,940,539

459,645

15.6

Total commercial loans

7,538,703

7,157,090

381,613

5.3

7,002,198

6,621,485

6,393,188

1,145,515

17.9

Residential mortgage loans

616,497

553,815

62,682

11.3

527,694

497,075

399,240

217,257

54.4

Consumer loans:

Home equity

1,399,005

1,335,390

63,615

4.8

1,290,976

1,229,998

1,231,364

167,641

13.6

Indirect automobile

322,767

367,077

(44,310)

(12.1)

396,766

394,078

391,482

(68,715)

(17.6)

Automobile

159,778

145,084

14,694

10.1

134,014

123,445

107,029

52,749

49.3

Credit card

73,726

72,164

1,562

2.2

72,745

68,731

65,260

8,466

13.0

Other

285,077

264,249

20,828

7.9

244,321

245,130

244,382

40,695

16.7

Total consumer loans

2,240,353

2,183,964

56,389

2.6

2,138,822

2,061,382

2,039,517

200,836

9.8

Total loans

$ 10,395,553

$ 9,894,869

$  500,684

5.1

$  9,668,714

$ 9,179,942

$ 8,831,945

$  1,563,608

17.7

Allowance for loan losses

$      (83,723)

$    (78,773)

(4,950)

6.3

$     (76,174)

$    (73,073)

$    (71,106)

(12,617)

17.7

Loans, net 

10,311,830

9,816,096

495,734

5.1

9,592,540

9,106,869

8,760,839

1,550,991

17.7

Reserve for unfunded commitments

(13,244)

(12,849)

(395)

3.1

(11,801)

(12,099)

(11,260)

(1,984)

17.6

Allowance for credit losses

(96,967)

(91,622)

(5,345)

5.8

(87,975)

(85,172)

(82,366)

(14,601)

17.7

ASSET QUALITY DATA (1)

Non-accrual loans

$        62,739

$      60,064

2,675

4.5

$       34,970

$      38,060

$      34,187

28,552

83.5

Other real estate owned and foreclosed assets

20,028

21,654

(1,626)

(7.5)

21,244

23,478

34,795

(14,767)

(42.4)

Accruing loans more than 90 days past due

3,584

239

3,345

 N/M 

754

4

20

3,564

 N/M 

Total non-performing assets

$        86,351

$      81,957

4,394

5.4

$       56,968

$      61,542

$      69,002

17,349

25.1

Loans 30-89 days past due

$        14,985

$      17,606

(2,621)

(14.9)

$       29,567

$      12,441

$      13,982

1,003

7.2

Non-performing assets to total assets

0.55%

0.55%

0.41%

0.46%

0.53%

Non-performing assets to total loans and OREO

0.83

0.83

0.59

0.67

0.78

Allowance for loan losses to non-performing loans (2)

126.2

130.6

213.2

190.6

206.5

Allowance for loan losses to non-performing assets

97.0

96.1

133.7

117.9

102.4

Allowance for loan losses to total loans

0.81

0.80

0.79

0.79

0.80

Quarter-to-date charge-offs

$          4,446

$        2,669

1,777

66.6

$         3,070

$        3,045

$        2,653

1,793

67.6

Quarter-to-date recoveries

(941)

(1,091)

150

(13.7)

(1,532)

(914)

(1,894)

953

(50.3)

Quarter-to-date net charge-offs

$          3,505

$        1,578

1,927

122.1

$         1,538

$        2,131

$           759

2,746

361.8

Net charge-offs to average loans (annualized)

0.14%

0.06%

0.06%

0.09%

0.04%

(1)

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

(2)

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)

6/30/2015

3/31/2015

$

%

12/31/2014

9/30/2014

6/30/2014

$

%

Commercial loans:

Real estate

$ 1,748,664

$ 1,278,846

$  469,818

36.7

$     687,075

$    754,092

$    819,781

$   928,883

113.3

Business

570,858

473,727

97,131

20.5

124,809

131,818

166,598

404,260

242.7

Total commercial loans

2,319,522

1,752,573

566,949

32.3

811,884

885,910

986,379

1,333,143

135.2

Residential mortgage loans

553,111

610,471

(57,360)

(9.4)

552,603

565,704

660,503

(107,392)

(16.3)

Consumer loans:

Home equity

572,068

522,698

49,370

9.4

310,129

337,417

295,693

276,375

93.5

Indirect automobile

191

272

(81)

(29.8)

392

613

873

(682)

(78.1)

Automobile

14,146

15,434

(1,288)

(8.3)

15,887

16,842

18,173

(4,027)

(22.2)

Credit card

588

547

41

7.5

648

621

632

(44)

(7.0)

Other

95,384

76,597

18,787

24.5

80,787

93,838

105,284

(9,900)

(9.4)

Total consumer loans

682,377

615,548

66,829

10.9

407,843

449,331

420,655

261,722

62.2

Total loans

$ 3,555,010

$ 2,978,592

$  576,418

19.4

$  1,772,330

$ 1,900,945

$ 2,067,537

1,487,473

71.9

Allowance for loan losses

$    (44,426)

$    (49,540)

5,114

(10.3)

$     (53,957)

$    (61,467)

$    (62,413)

17,987

(28.8)

Loans, net 

3,510,584

2,929,052

581,532

19.9

1,718,373

1,839,478

2,005,124

1,505,460

75.1

ACQUIRED ASSET QUALITY DATA (1)

Non-accrual loans

$    129,646

$    135,307

$    (5,661)

(4.2)

$     134,716

$    157,620

$    174,486

$   (44,840)

(25.7)

Other real estate owned and foreclosed assets

29,901

31,540

(1,639)

(5.2)

32,703

39,908

49,684

(19,783)

(39.8)

Accruing loans more than 90 days past due

1,023

5,403

(4,380)

(81.1)

954

186

1,075

(52)

(4.8)

Total non-performing assets

$    160,570

$    172,250

$  (11,680)

(6.8)

$     168,373

$    197,714

$    225,245

$   (64,675)

(28.7)

Loans 30-89 days past due

$      24,020

$      15,229

$      8,791

57.7

$       21,574

$      11,343

$      17,893

6,127

34.2

Non-performing assets to total assets

4.42%

5.64%

9.11%

9.83%

10.21%

Non-performing assets to total loans and OREO

4.48

5.72

9.33

10.19

10.64

Allowance for loan losses to non-performing loans (2)

34.0

35.2

39.8

39.0

35.6

Allowance for loan losses to non-performing assets

27.7

28.8

32.1

31.1

27.7

Allowance for loan losses to total loans

1.25

1.66

3.04

3.23

3.02

Quarter-to-date charge-offs

$           362

$           303

$           59

19.5

$            343

$           216

$             99

$          263

265.7

Quarter-to-date recoveries

(93)

(146)

53

(36.3)

(126)

(139)

(1)

(92)

 N/M 

Quarter-to-date net charge-offs

$           269

$           157

$         112

71.3

$            217

$             77

$             98

$          171

174.5

Net charge-offs to average loans (annualized)

0.03%

0.03%

0.05%

0.01%

0.03%

(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)

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 8 - IBERIABANK CORPORATION 

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)

For the Three Months Ended

6/30/2015

3/31/2015

Basis Point Change

ASSETS

Average Balance

Interest Income/Expense

Yield/Rate

Average Balance

Interest Income/Expense

Yield/Rate

Yield/Rate

Earning assets:

Commercial loans 

$   9,277,141

$             103,272

4.46%

$   7,882,782

$               83,645

4.31%

15

Residential mortgage loans

1,187,166

14,379

4.84

1,099,518

13,594

4.95

(11)

Consumer loans

2,833,417

35,684

5.05

2,581,646

32,952

5.18

(13)

Total loans

13,297,724

153,335

4.62

11,563,946

130,191

4.56

6

Loss share receivable

55,751

(7,398)

(52.50)

66,165

(6,013)

(36.35)

(1,615)

Total loans and loss share receivable

13,353,475

145,937

4.38

11,630,111

124,178

4.32

6

Mortgage loans held for sale

202,691

1,380

2.72

133,304

1,515

4.55

(183)

Investment securities (2)

2,469,050

12,191

2.08

2,307,525

12,097

2.22

(14)

Other earning assets

663,071

1,037

0.63

402,499

795

0.80

(17)

Total earning assets

16,688,287

160,545

3.87

14,473,439

138,585

3.90

(3)

Allowance for loan losses

(129,069)

(128,519)

Non-earning assets

1,886,068

1,612,693

Total assets

$ 18,445,286

$ 15,957,613

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:

NOW accounts

$   2,639,140

1,765

0.27

$   2,464,760

1,552

0.26

1

Savings and money market accounts

6,228,052

5,058

0.33

4,834,244

3,375

0.28

5

Certificates of deposit

2,331,537

4,959

0.85

2,150,447

4,411

0.83

2

Total interest-bearing deposits(3)

11,198,729

11,782

0.42

9,449,451

9,338

0.40

2

Short-term borrowings

461,742

220

0.19

747,058

363

0.19

-

Long-term debt

446,994

2,866

2.54

423,495

3,080

2.91

(37)

Total interest-bearing liabilities

12,107,465

14,868

0.49

10,620,004

12,781

0.49

-

Non-interest-bearing deposits

3,933,468

3,312,357

Non-interest-bearing liabilities

172,227

135,477

Total liabilities

16,213,160

14,067,838

Total shareholders' equity

2,232,126

1,889,775

Total liabilities and shareholders' equity

$ 18,445,286

$ 15,957,613

Net interest income/Net interest spread

$             145,677

3.38%

$             125,804

3.41%

(3)

Tax-equivalent benefit

1,996

0.05

2,040

0.06

(1)

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

$             147,673

3.52%

$             127,844

3.54%

(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 June 30, 2015 and March 31, 2015 total 0.31% and 0.30%, respectively.

     

TABLE 8 continued - IBERIABANK CORPORATION 

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)

For the Three Months Ended

12/31/2014

9/30/2014

6/30/2014

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 

$   7,656,992

$               89,574

4.65%

$   7,467,597

$               98,562

5.24%

$   7,111,315

$               85,735

4.84%

Residential mortgage loans

1,069,555

13,094

4.90

1,104,692

13,321

4.82

700,721

9,385

5.36

Consumer loans

2,545,205

33,994

5.30

2,437,544

33,589

5.47

2,186,497

28,299

5.19

Total loans

11,271,752

136,662

4.82

11,009,833

145,472

5.25

9,998,533

123,419

4.96

Loss share receivable

85,733

(13,224)

(60.36)

111,383

(25,120)

(88.25)

131,375

(17,009)

(51.22)

Total loans and loss share receivable

11,357,485

123,438

4.32

11,121,216

120,352

4.30

10,129,908

106,410

4.23

Mortgage loans held for sale

121,439

1,200

3.95

163,510

1,594

3.90

140,096

1,474

4.21

Investment securities(2)

2,234,235

11,766

2.24

2,137,735

10,994

2.20

2,109,254

11,000

2.24

Other earning assets

431,603

872

0.80

567,897

853

0.60

308,713

630

0.81

Total earning assets

14,144,762

137,276

3.88

13,990,358

133,793

3.83

12,687,971

119,514

3.82

Allowance for loan losses

(134,177)

(133,443)

(132,049)

Non-earning assets

1,603,738

1,619,293

1,485,260

Total assets

$ 15,614,323

$ 15,476,208

$ 14,041,182

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:

NOW accounts

$   2,271,836

1,526

0.27

$   2,228,378

1,546

0.28

$   2,229,264

1,394

0.25

Savings and money market accounts

4,908,247

3,694

0.30

4,877,051

3,588

0.29

4,372,855

2,812

0.26

Certificates of deposit

2,105,623

4,272

0.80

2,060,055

3,983

0.77

1,721,111

3,089

0.72

Total interest-bearing deposits(3)

9,285,706

9,492

0.41

9,165,484

9,117

0.39

8,323,230

7,295

0.35

Short-term borrowings

713,384

342

0.19

919,869

406

0.17

907,459

373

0.16

Long-term debt

395,410

2,762

2.73

358,970

2,519

2.75

304,707

2,573

3.34

Total interest-bearing liabilities

10,394,500

12,596

0.48

10,444,323

12,042

0.46

9,535,396

10,241

0.43

Non-interest-bearing deposits

3,228,773

3,057,513

2,748,468

Non-interest-bearing liabilities

159,818

168,262

125,654

Total liabilities

13,783,091

13,670,098

12,409,518

Total shareholders' equity

1,831,232

1,806,110

1,631,664

Total liabilities and shareholders' equity

$ 15,614,323

$ 15,476,208

$ 14,041,182

Net interest income/Net interest spread

$             124,680

3.40%

$             121,751

3.37%

$             109,273

3.39%

Tax-equivalent benefit

2,055

0.06

2,134

0.06

2,191

0.07

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

$             126,735

3.53%

$             123,885

3.49%

$             111,464

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 December 31, 2014, September 30, 2014 and June 30, 2014 total 0.30%, 0.30% and 0.26%, respectively.

     

TABLE 9 - IBERIABANK CORPORATION 

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

(Dollars in thousands)

For the Six Months Ended

6/30/2015

6/30/2014

Basis Point Change

ASSETS

Average Balance

Interest Income/Expense

Yield/Rate

Average Balance

Interest Income/Expense

Yield/Rate

Yield/Rate

Earning assets:

Commercial loans

$   8,583,814

$             186,916

4.39%

$   7,001,591

$             171,666

4.96%

(57)

Residential mortgage loans

1,143,584

27,974

4.89

648,289

18,148

5.60

(71)

Consumer loans

2,708,227

68,636

5.11

2,126,304

54,758

5.19

(8)

Total loans

12,435,625

283,526

4.59

9,776,184

244,572

5.05

(46)

Loss share receivable

60,929

(13,411)

(43.78)

142,940

(36,273)

(50.47)

669

Total loans and loss share receivable

12,496,554

270,115

4.36

9,919,124

208,299

4.25

11

Mortgage loans held for sale

168,189

2,895

3.44

118,179

2,359

3.99

(55)

Investment securities (2)

2,388,733

24,287

2.15

2,111,327

21,917

2.23

(8)

Other earning assets

533,505

1,833

0.69

241,103

1,171

0.98

(29)

Total earning assets

15,586,981

299,130

3.88

12,389,733

233,746

3.84

4

Allowance for loan losses

(128,795)

(135,866)

Non-earning assets

1,750,135

1,449,718

Total assets

$ 17,208,321

$ 13,703,585

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:

NOW accounts

$   2,552,431

3,317

0.26

$   2,230,001

2,934

0.27

(1)

Savings and money market accounts

5,534,999

8,432

0.31

4,334,819

5,520

0.26

5

Certificates of deposit

2,241,492

9,371

0.84

1,693,679

6,026

0.72

12

Total interest-bearing deposits(3)

10,328,922

21,120

0.41

8,258,499

14,480

0.35

6

Short-term borrowings

603,612

583

0.19

746,866

615

0.16

3

Long-term debt

435,186

5,946

2.72

292,535

4,970

3.38

(66)

Total interest-bearing liabilities

11,367,720

27,649

0.49

9,297,900

20,065

0.43

6

Non-interest-bearing deposits

3,624,628

2,686,118

Non-interest-bearing liabilities

154,077

125,365

Total liabilities

15,146,425

12,109,383

Total shareholders' equity

2,061,896

1,594,202

Total liabilities and shareholders' equity

$ 17,208,321

$ 13,703,585

Net interest income/Net interest spread

$             271,481

3.39%

$             213,681

3.41%

(2)

Tax-equivalent benefit

4,036

0.05

4,420

0.07

(2)

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

$             275,517

3.53%

$             218,101

3.51%

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 six months ended June 30, 2015 and 2014 total 0.31% and 0.27%, respectively. 

     

Table 10 - IBERIABANK CORPORATION

LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS

(Dollars in millions)

For the Three Months Ended

6/30/2015

3/31/2015

12/31/2014

9/30/2014

6/30/2014

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

$     99

$ 10,147

3.88%

$     94

$   9,734

3.90%

$     95

$   9,439

3.94%

$     91

$   9,019

3.97%

$     88

$   8,644

4.04%

Acquired loans (1)

47

3,206

5.82%

30

1,896

6.34%

29

1,919

5.97%

29

2,102

5.49%

19

1,486

4.98%

   Total loans

$   146

$ 13,353

4.38%

$   124

$ 11,630

4.32%

$   124

$ 11,358

4.32%

$   120

$ 11,121

4.30%

$   107

$ 10,130

4.23%

6/30/2015

3/31/2015

12/31/2014

9/30/2014

6/30/2014

ADJUSTMENTS

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Income

Average Balance

Yield

Legacy loans, net

$        -

$           -

-

$        -

$           -

0.00%

$        -

$           -

0.00%

$        -

$           -

0.00%

$        -

$           -

-

Acquired loans (1)

(9)

85

-1.23%

(9)

67

-2.00%

(6)

55

-1.38%

(4)

44

-0.88%

-

30

-

   Total loans

$      (9)

$        85

-0.30%

$      (9)

$        67

-0.33%

$      (6)

$        55

-0.23%

$      (4)

$        44

-0.16%

$        -

$        30

-

6/30/2015

3/31/2015

12/31/2014

9/30/2014

6/30/2014

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

$     99

$ 10,147

3.88%

$     94

$   9,734

3.90%

$     95

$   9,439

3.94%

$     91

$   9,019

3.97%

$     88

$   8,644

4.04%

Acquired loans (1)

38

3,291

4.58%

21

1,963

4.28%

23

1,974

4.59%

25

2,146

4.61%

19

1,516

4.98%

   Total loans

$   137

$ 13,438

4.08%

$   115

$ 11,697

3.99%

$   118

$ 11,413

4.09%

$   116

$ 11,165

4.13%

$   107

$ 10,160

4.23%

(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

6/30/2015

3/31/2015

12/31/2014 (1)

Pre-tax

After-tax (2)

Per share (3)

Pre-tax

After-tax (2)

Per share (3)

Pre-tax

After-tax (2)

Per share (2)

Net income (loss) (GAAP)

$

45,191

$

30,836

$

0.79

$

36,205

$

25,126

$

0.75

$

46,122

$

35,936

$

1.07

Non-interest income adjustments:

   Gain on sale of investments and other non-interest income

(1,266)

(823)

(0.02)

(389)

(252)

(0.01)

(374)

(243)

(0.01)

Non-interest expense adjustments:

   Merger-related expenses

12,732

8,392

0.22

9,296

6,139

0.18

1,955

1,496

0.04

   Severance expenses

406

264

0.01

41

27

-

139

91

-

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

1,571

1,021

0.03

579

376

0.01

1,078

701

0.02

   Other non-operating non-interest expense

2,050

1,333

0.03

450

292

0.01

2

1

-

      Total non-interest expense adjustments

16,759

11,010

0.29

10,366

6,834

0.20

3,174

2,289

0.07

   Income tax benefits

-

-

-

-

-

-

-

(2,959)

(0.09)

Operating earnings (non-GAAP)

60,684

41,023

1.05

46,182

31,708

0.95

48,922

35,023

1.05

   Provision for loan losses

8,789

5,713

0.15

5,345

3,475

0.10

6,495

4,222

0.11

Pre-provision operating earnings (non-GAAP)

$

69,473

$

46,736

$

1.20

$

51,527

$

35,183

$

1.05

$

55,417

$

39,245

$

1.17

For the Three Months Ended

9/30/2014 (1)

6/30/2014 (1)

Pre-tax

After-tax (2)

Per share (3)

Pre-tax

After-tax (2)

Per share (3)

Net income (loss) (GAAP)

$

43,037

$

30,893

$

0.92

$

21,154

$

16,217

$

0.53

Non-interest income adjustments:

   Gain on sale of investments and other non-interest income

(582)

(378)

(0.01)

(9)

(6)

-

Non-interest expense adjustments:

   Merger-related expenses

1,752

1,139

0.04

10,419

6,840

0.22

   Severance expenses

1,214

789

0.02

5,466

3,553

0.11

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

4,229

2,749

0.08

1,247

811

0.03

   Other non-operating non-interest expense

(799)

(520)

(0.02)

12

8

-

      Total non-interest expense adjustments

6,396

4,157

0.12

17,144

11,212

0.36

   Income tax benefits

-

-

-

-

-

-

Operating earnings (non-GAAP)

48,851

34,672

1.04

38,289

27,423

0.89

   Provision for loan losses

5,714

3,714

0.11

4,748

3,087

0.10

Pre-provision operating earnings (non-GAAP)

$

54,565

$

38,386

$

1.15

$

43,037

$

30,510

$

0.99

For the Six Months Ended

6/30/2015

6/30/2014 (1)

Pre-tax

After-tax (2)

Per share (3)

Pre-tax

After-tax (2)

Per share (3)

Net income (loss) (GAAP)

$

81,396

$

55,962

$

1.54

$

51,906

$

38,553

$

1.27

Non-interest income adjustments:

   Gain on sale of investments and other non-interest income

(1,655)

(1,075)

(0.03)

(1,800)

(1,698)

(0.05)

Non-interest expense adjustments:

   Merger-related expenses

22,028

14,531

0.40

11,009

7,224

0.24

   Severance expenses

447

291

0.01

5,586

3,631

0.12

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

2,150

1,397

0.04

1,782

1,158

0.04

   Other non-operating non-interest expense

2,500

1,625

0.05

574

373

0.01

      Total non-interest expense adjustments

27,125

17,844

0.50

18,951

12,386

0.41

   Income tax benefits

-

-

-

-

-

-

Operating earnings (non-GAAP)

106,866

72,731

2.00

69,057

49,241

1.63

   Provision for loan losses

14,134

9,188

0.26

6,851

4,453

0.15

Pre-provision operating earnings (non-GAAP)

$

121,000

$

81,919

$

2.26

$

75,908

$

53,694

$

1.78

(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 second and third quarters 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

6/30/2015

3/31/2015

12/31/2014 (1)

9/30/2014 (1)

6/30/2014 (1)

Net interest income (GAAP)

$

145,677

$

125,804

$

124,680

$

121,751

$

109,273

Add: Effect of tax benefit on interest income

1,996

2,040

2,055

2,134

2,191

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

147,673

127,844

126,735

123,885

111,464

Non-interest income (GAAP)

61,513

48,899

47,072

47,112

43,761

Add: Effect of tax benefit on non-interest income

579

588

566

564

503

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

62,092

49,487

47,638

47,676

44,264

Taxable equivalent revenues (Non-GAAP) (2)

209,765

177,331

174,373

171,561

155,728

Securities gains and other non-interest income

(1,266)

(389)

(374)

(582)

(9)

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

$

208,499

$

176,942

$

173,999

$

170,979

$

155,719

Total non-interest expense (GAAP)

$

153,209

$

133,153

$

119,135

$

120,112

$

127,132

Less: Intangible amortization expense

2,155

1,523

1,618

1,623

1,347

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

151,054

131,630

117,517

118,489

125,785

Merger -related expense

12,732

9,296

1,955

1,752

10,419

Severance expense

406

41

139

1,214

5,466

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

1,571

579

1,078

4,229

1,247

Other non-operating non-interest expense

2,050

450

2

(799)

12

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

$

134,295

$

121,264

$

114,343

$

112,093

$

108,641

Return on average assets (GAAP)

0.67%

0.64%

0.91%

0.79%

0.46%

Effect of non-operating revenues and expenses

0.22

0.17

(0.02)

0.10

0.32

Operating return on average assets (Non-GAAP)

0.89%

0.81%

0.89%

0.89%

0.78%

Efficiency ratio (GAAP)

73.9%

76.2%

69.4%

71.1%

83.1%

Effect of tax benefit related to tax-exempt income

(0.9)

(1.1)

(1.1)

(1.1)

(1.5)

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

73.0%

75.1%

68.3%

70.0%

81.6%

Effect of amortization of intangibles

(1.0)

(0.9)

(0.9)

(0.9)

(0.9)

Effect of non-operating items

(7.6)

(5.7)

(1.7)

(3.5)

(10.9)

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

64.4%

68.5%

65.7%

65.6%

69.8%

Return on average common equity (GAAP)

5.54%

5.39%

7.79%

6.79%

3.99%

Effect of intangibles (3)

2.93

2.53

3.67

3.32

1.89

Effect of non-operating revenues and expenses

2.67

2.00

(0.29)

1.18

3.84

Return on average tangible common equity (Non-GAAP)

11.14%

9.92%

11.17%

11.29%

9.72%

(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 second and third quarters 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



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