IBERIABANK Corporation Reports Third Quarter Results

Oct 26, 2010, 21:07 ET from IBERIABANK Corporation

LAFAYETTE, La., Oct. 26 /PRNewswire-FirstCall/ -- IBERIABANK Corporation (Nasdaq: IBKC), holding company of the 123-year-old IBERIABANK (www.iberiabank.com) and IBERIABANK fsb (www.IBERIABANKfsb.com), reported improved asset quality ratios, capital strength, and earnings results for the quarter ended September 30, 2010.  The Company's levels of nonperforming assets, loans past due 30 days or more, and classified assets, and its commercial loan watch list each improved between June 30, 2010 and September 30, 2010.  At quarter-end, the Company possessed one of the strongest regulatory capital ratios for bank holding companies with assets in excess of $5 billion. For the third quarter of 2010, the Company reported income available to common shareholders of $14 million and fully diluted earnings per share ("EPS") of $0.52.  Excluding one-time acquisition costs, earnings were $15 million and EPS was $0.56, or an increase of 34% compared to the second quarter of 2010 ("linked quarter basis").

Daryl G. Byrd, President and Chief Executive Officer, commented, "The third quarter was a period of incremental improvement for our Company.  Our extremely favorable credit quality measures showed continued improvement.  Our excess cash and capital are methodically and patiently being deployed.  Our business lines exhibited strength, and our newest business line, Iberia Capital Partners, has commenced operations."  Byrd continued, "Our IBERIABANK family welcomes the clients and associates of Sterling Bank, who joined our organization three months ago.  We are very pleased with the successful assimilation of Sterling's operations into IBERIABANK."

Byrd continued, "Our industry has experienced significant upheaval recently regarding the suspension of residential mortgage foreclosure processes to ensure foreclosure documentation and procedures are accurate, adequately reviewed, and appropriately administered.  A related industry concern is the potential forced repurchase of mortgage loans that were sold to investors, the origination of which was later found to involve questionable underwriting and documentation.  We don't foresee these items being significant issues for our Company given the types of lending we have historically focused upon, the quality of our underwriting, limited housing price pressures in our legacy markets, and the strength of our loan servicing and resolution processes."

Operating Results Summary

Diluted net income to common shareholders in the third quarter of 2010 totaled $14 million, up 58% on a linked quarter basis, and down 44% compared to the same quarter last year.  EPS was $0.52 in the third quarter of 2010, an increase of 58% on a linked quarter basis, and a decrease of 58% compared to the same quarter last year.  For the third quarter of 2010, return on average assets ("ROA") was 0.52%, return on average common equity ("ROE") was 4.24%, and return on average tangible common equity was 5.64%.

Acquisition and Merger.  The Company completed its FDIC-assisted acquisition of selected assets and assumption of selected liabilities associated with Sterling Bank on July 23, 2010, including $54 million in investment securities, $151 million in loans (after discounts), and $287 million in deposits.  Financial statements reflect the impact of that acquisition beginning on that date.  Sterling Bank was formerly headquartered in Lantana, Florida, with six offices in the Miami-Fort Lauderdale Metropolitan Statistical Area ("MSA").  The conversions of branch and operating systems were successfully completed over the weekend of October 16-17, 2010.

On August 23, 2010, the Company announced its intention to merge its IBERIABANK fsb subsidiary into IBERIABANK.  The merger is anticipated to be completed in the fourth quarter of 2010.

During the third quarter of 2010, the Company incurred one-time pre-tax acquisition and conversion-related costs of $1 million, or $0.04 per share on an after-tax basis, and $4 million, or $0.08 per share on an after-tax basis in the second quarter of 2010.

Excess Cash and Margin.  The Company held $1.1 billion in excess cash on average in the second quarter of 2010, compared to $1.0 billion in the third quarter of 2010.  The Company's tax-equivalent net interest margin ("margin") declined 14 basis points on a linked quarter basis to 2.91% in the third quarter of 2010.  The aggregate excess cash position suppressed the margin approximately 45 and 37 basis points in the second and third quarters of 2010, respectively.  The Company estimates the excess cash reduced EPS by $0.29 and $0.22 in the second and third quarters of 2010, respectively.

Surplus Capital.  On March 8, 2010, the Company issued and sold 5,973,207 shares of common stock in an underwritten public offering, with net proceeds of $329 million.  The Company estimates EPS was suppressed due to the additional outstanding shares by $0.09 and $0.14 per share in the second and third quarters of 2010, respectively.

Loan Loss Provision and FDIC Loss Share Accounting.  In connection with the FDIC-Assisted transactions, the Company was required under generally accepted accounting principles to establish homogeneous pools of loans with common characteristics.  In the third quarter of 2010 the Company recorded pre-tax provision expense of $2 million, or $0.05 per share, related to FDIC covered loans associated with those select loan pools.   These figures compare to $6 million, or $0.15 per share, on a linked quarter basis.

Security Transactions And Debt Repayment.  In the third quarter, the Company incurred an other than temporary impairment ("OTTI") totaling $0.5 million on a revenue municipal security that was acquired in an acquisition in 2007.  In September 2010, the Company sold $213 million in investment securities yielding 2.80%, resulting in a gain of $4.1 million.  The Company also repaid $78 million in long-term debt at an annualized cost of 4.03%, resulting in a loss of $3.5 million and $25 million in sub-debt that carried an approximate net yield of 6.00% for a loss of $0.2 million.  The losses associated with the debt repayment and the OTTI were recorded in the income statement under "other expense."

Balance Sheet Summary

Total assets increased $184 million, or 2%, since June 30, 2010, to $10.6 billion at September 30, 2010.  Over this period, total loans increased $31 million, or 1%, and total deposits increased $190 million, or 2%.  Total shareholders' equity increased $2 million, or less than 1%, since June 30, 2010.

The majority of assets acquired in the four FDIC-assisted transactions completed in 2009 and 2010 are covered under FDIC loss sharing arrangements ("covered assets"), and loan valuations incorporate estimated losses.  As a result, a significant portion of the Company's nonperforming assets has minimal loss exposure.  Total Nonperforming Assets ("NPAs") at September 30, 2010 were $972 million, down $57 million, or 6%, compared to June 30, 2010.  Excluding $908 million in NPAs covered under the FDIC-assisted agreements, NPAs at September 30, 2010 were $65 million, down $4 million, or 6%, compared to June 30, 2010.  On that basis, NPAs were 0.81% of total assets at September 30, 2010, compared to 0.86% of assets at June 30, 2010 and 0.93% one year ago.

Loans

In the third quarter of 2010, total loans increased $31 million, or 1%.  Excluding the FDIC-assisted transactions, loans increased $42 million, or 1%, over that period. Between the times at which the acquisitions were completed and September 30, 2010, loans acquired in the FDIC acquisitions decreased by approximately $381 million, or 20%.

The loan portfolio at September 30, 2010, was comprised of disparate components.  Approximately 26% of the Company's $5.8 billion loan portfolio at that date was comprised of assets covered under FDIC loss share agreements, which provide considerable protection against credit risk on those covered assets.  The remaining $4.3 billion in loans at September 30, 2010, were associated with the Company's legacy franchise, and underwritten under the Company's guidelines.  

Period-End Loan Volumes ($ in Millions)

Loans

9/30/09

12/31/09

3/31/10

6/30/10

9/30/10

Commercial

$      2,556

$      2,748

$      2,825

$      2,878

$       2,947

Consumer

923

914

912

929

926

Mortgage

467

452

441

430

406

Non-FDIC Loans

$      3,946

$      4,114

$      4,178

$      4,237

$       4,279

Covered Loans

$         353

$      1,670

$      1,561

$      1,524

$       1,512

Total Loans

$      4,299

$      5,784

$      5,739

$      5,761

$       5,791

   Non-FDIC Growth

3%

4%

2%

1%

1%

On a linked quarter basis, the yield on average total loans decreased 36 basis points to 6.14%.  The decline in average loan yield was primarily driven by FDIC loss share covered assets and a 14 basis point decline in non-covered loans.  Yields on commercial and consumer loans decreased 34 and 60 basis points, respectively, on a linked quarter basis.  The yield on mortgage loans increased 16 basis points over that period.  

Commercial real estate ("CRE") loans totaled $2.5 billion at September 30, 2010, and the average loan size was $635,000.  At September 30, 2010, approximately $1.0 billion, or 40%, of the total CRE portfolio was covered under the loss share agreements with the FDIC.  In addition, loans covered under those agreements were purchased at substantial discounts from the FDIC and are expected to offset much of the remaining credit loss exposure and servicing costs.  The remaining $1.5 billion in legacy CRE loans included $617 million in owner-occupied loans (1.99% past due 30 days or more) and $930 million in non-owner occupied CRE loans (2.15% past due 30 days or more). The legacy CRE portfolio had loans past due 30 days or more (including nonaccruing loans) equal to 2.08% of the CRE loans outstanding, compared to 2.79% at June 30, 2010.  Non-owner occupied CRE loans equated to 78% of total risk based capital at September 30, 2010.  At September 30, 2010, many of the local legacy markets remained economically healthy compared to the national economy.  

At September 30, 2010, approximately 25% of the Company's direct consumer loan portfolio (net of discounts) 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 722, and loans past due 30 days or more were 0.61% of consumer loans at September 30, 2010 (an improvement compared to 0.81% at June 30, 2010).  Legacy home equity loans totaled $322 million at September 30, 2010, with 0.75% past due 30 days or more (0.82% at June 30, 2010).  Legacy home equity lines of credit totaled $206 million, with 0.42% past due 30 days or more (0.80% at June 30, 2010).  Annualized net charge-offs in this portfolio were 0.87% of total consumer loans in the third quarter of 2010 (0.58% in the second quarter of 2010).  The weighted average loan-to-value at origination for this portfolio over the last three years was approximately 67%.

The indirect automobile portfolio totaled $267 million at September 30, 2010, down 1% compared to the portfolio at June 30, 2010.  This portfolio equated to 5% of total loans and had 0.78% in loans past due 30 days or more (including nonaccruing loans) at September 30, 2010 (unchanged from 0.78% at June 30, 2010).  Annualized net charge-offs in the indirect loan portfolio equated to approximately 0.11% of average loans in the third quarter of 2010 (an improvement from 0.15% in the second quarter of 2010).  Approximately 87% of the indirect automobile portfolio was to borrowers in the Acadiana region of Louisiana, which currently experiences a relatively favorable unemployment rate (6.6% at August 2010, the 45th lowest unemployment rate of 372 MSAs in the United States).

Deposits

During the third quarter of 2010, total deposits increased $190 million, or 2%, and increased $33 million, or 1%, excluding the FDIC transactions. Between the consummation dates of the FDIC-assisted acquisitions and September 30, 2010, acquired deposits, excluding brokered deposits, increased approximately $221 million, or 8%, which was more favorable than the Company's expectations at closing.

Period-End Deposit Volumes ($ in Millions)

Deposits

9/30/09

12/31/09

3/31/10

6/30/10

9/30/10

Noninterest

$         629

$         875

$         825

$         821

$          857

NOW Accounts

959

1,352

1,407

1,333

1,254

Savings/MMkt

1,327

2,252

2,571

2,808

3,013

Time Deposits

1,861

3,077

3,153

3,112

3,139

Total Deposits

$      4,776

$      7,556

$      7,956

$      8,074

$       8,264

Growth

14%

58%

5%

1%

2%

Noninterest bearing deposits totaled $857 million at September 30, 2010, up $37 million, or 4%, compared to June 30, 2010.  Excluding the FDIC-assisted transactions, noninterest bearing deposits increased $19 million, or 3%, over this period.  On a linked quarter basis, average noninterest bearing deposits increased $22 million, or 3%, and interest-bearing deposits increased $301 million, or 4%.  The rate on average interest bearing deposits in the third quarter of 2010 was 1.32%, a decrease of 14 basis points on a linked quarter basis.  In the month of September 2010, the average cost of interest bearing deposits was 1.24%.

In September 2010, the Company paid off $78 million in long-term debt at an annualized cost of 4.03%.  The Company had only $30 million in short-term borrowings at September 30, 2010, or approximately 0.3% of total liabilities.  The cost of average interest bearing liabilities was 1.44% in the third quarter of 2010, a decrease of 12 basis points on a linked quarter basis. For the month of September 2010, the average cost of interest bearing liabilities was 1.35%.

Asset Quality

The Company's credit quality statistics were significantly affected by the FDIC-assisted acquisitions.  However, the loss share arrangements with the FDIC and discounts on the assets acquired are expected to provide substantial protection against losses on those assets.  Under the loss share agreements in connection with the FDIC-assisted acquisitions, the FDIC will cover 80% of the losses on the disposition of loans and OREO up to $1.2 billion, or $965 million (the Company covered the remaining $241 million at the times of acquisition).  In addition, the FDIC will cover 95% of losses that exceed a $970 million threshold level.  The Company received a discount of approximately $515 million on the purchase of assets in the transactions.

Excluding the FDIC-assisted transactions, NPAs and loans past due 30 days or more decreased during the third quarter of 2010 at the Company.  The legacy Company had troubled debt restructurings at September 30, 2010, totaling $18 million, compared to $8 million at June 30, 2010.

Summary Asset Quality Statistics

    ($thousands)

IBERIABANK

IBERIABANK fsb

IBERIABANK Corp.

1Q10*

2Q10*

3Q10*

1Q10

2Q10

3Q10

1Q10*

2Q10*

3Q10*

Nonaccruals

$         30,054

$         25,512

$       23,027

$          24,570

$          22,537

$            18,054

$          54,624

$          48,049

$         41,081

OREO & Foreclosed

4,012

5,037

4,096

11,436

10,177

12,872

15,448

15,214

16,968

90+ Days Past Due

1,852

3,229

2,666

1,316

2,416

4,151

3,168

5,645

6,817

   Nonperforming Assets

$         35,918

$         33,778

$       29,789

$          37,322

$          35,130

$            35,077

$          73,240

$          68,908

$         64,865

NPAs/Assets

0.63%

0.54%

0.48%

2.27%

2.11%

2.06%

0.98%

0.86%

0.81%

NPAs/(Loans + OREO)

1.13%

1.04%

0.92%

3.64%

3.49%

3.32%

1.75%

1.62%

1.51%

LLR/Loans

1.38%

1.36%

1.24%

1.98%

2.04%

2.05%

1.53%

1.52%

1.43%

Net Charge-Offs/Loans

0.08%

0.65%

0.60%

1.41%

0.31%

0.48%

0.41%

0.57%

0.57%

* Excludes the impact of all FDIC-assisted acquisitions

The FDIC-assisted transactions accounted for $908 million, or 93% of the Company's $972 million in total NPAs at September 30, 2010, and the legacy IBERIABANK Corporation franchise accounted for the remaining $65 million in NPAs.  Excluding the FDIC-assisted transactions, NPAs equated to 0.81% of total assets at September 30, 2010, compared to 0.86% at June 30, 2010.  On this same basis, total loans past due 30 days or more (including nonaccruing loans) represented 1.48% of total loans at September 30, 2010, an improvement of 42 basis points, compared to 1.90% of total loans at June 30, 2010.

Loans Past Due

Loans Past Due 30 Days Or More And Nonaccruing Loans As % Of Loans Outstanding

By Entity:

6/30/09

9/30/09

12/31/09

3/31/10

6/30/10

9/30/10

IBERIABANK (Ex-FDIC Covered Assets)

    30+ days past due

0.33%

0.32%

0.58%

0.67%

0.81%

0.32%

    Non-accrual

0.47%

0.45%

0.38%

0.94%

0.78%

0.70%

    Total Past Due

0.80%

0.77%

0.96%

1.61%

1.59%

1.02%

IBERIABANK fsb

    30+ days past due

1.73%

1.09%

1.12%

0.88%

0.60%

1.14%

    Non-accrual

1.68%

2.45%

2.78%

2.42%

2.26%

1.73%

    Total Past Due

3.41%

3.54%

3.90%

3.30%

2.86%

2.87%

Consolidated (Ex-FDIC Covered Assets)

    30+ days past due

0.64%

0.50%

0.72%

0.73%

0.77%

0.52%

    Non-accrual

0.74%

0.92%

0.97%

1.31%

1.13%

0.96%

    Total Past Due

1.38%

1.42%

1.69%

2.04%

1.90%

1.48%

Consolidated With FDIC Covered Assets

    30+ days past due

1.06%

3.60%

3.09%

3.48%

1.98%

    Non-accrual

2.79%

12.70%

14.23%

13.01%

12.95%

    Total Past Due

3.85%

16.30%

17.32%

16.49%

14.93%

At September 30, 2010, the allowance for loan losses was 2.28%, up compared to 1.67% at June 30, 2010.  In accordance with generally accepted accounting principles, the assets acquired in the FDIC-assisted transactions were marked to market at consummation, including estimated loan impairments.  Excluding the acquired loans, the Company's ratio of loan loss reserves to loans decreased from 1.52% at June 30, 2010 to 1.43% at September 30, 2010.

The Company reported net charge-offs of $5 million in the third quarter of 2010, compared to $6 million in the second quarter of 2010.  The ratio of net charge-offs to average loans was 0.36% in the third quarter of 2010, compared to 0.44% in the second quarter of 2010.  The Company recorded a $5 million loan loss provision in the third quarter of 2010, down 60% compared to the level recorded in the second quarter of 2010.  Excluding provision expense associated with the FDIC-assisted acquisitions, the loan loss provision declined from $6 million to $3 million on a linked quarter basis.  Management considers the loan loss reserve adequate to absorb credit losses inherent in the loan portfolio at September 30, 2010.

Investments

Total investment securities increased $160 million, or 9%, to $1.9 billion during the third quarter of 2010.  As a percentage of total assets, the investment portfolio increased from 17% at June 30, 2010 to 18% at September 30, 2010.  The investment portfolio had a modified duration of 2.4 years at September 30, 2010, compared to 2.7 years at June 30, 2010.  The unrealized gain in the investment portfolio decreased $2 million, or 5%, from $38 million at June 30, 2010 to $36 million at September 30, 2010.  Based on projected prepayment speeds and other assumptions at September 30, 2010, the portfolio was expected to generate approximately $710 million in cash flows, or about 38% of the portfolio, over the next 15 months. The average yield on investment securities decreased 33 basis points on a linked quarter basis, to 2.90% in the third quarter of 2010.  The Company holds in its investment portfolio primarily government agency and municipal securities.

Capital Position

The Company maintains strong capital ratios compared to peers.  The equity-to-assets ratio was 12.31% at September 30, 2010, compared to 12.51% at June 30, 2010.  At September 30, 2010, the Company reported a tangible common equity ratio of 10.05%, compared to 10.28% at June 30, 2010 and 9.59% one year ago.  The Company's Tier 1 leverage ratio was 10.81%, compared to 11.15% at June 30, 2010 and 11.55% one year ago.  The Company's total risk based capital ratio at September 30, 2010 was 19.90%, compared to 21.72% at June 30, 2010 and 16.83% one year ago.  The Company's tangible common equity to risk weighted assets ratio was 17.23%, compared to 18.60% at June 30, 2010, and 13.38% one year ago.

Regulatory Capital Ratios

At September 30, 2010

Well

IBERIABANK

Capital Ratio

Capitalized

IBERIABANK

IBERIABANK fsb

Corporation

Tier 1 Leverage

5.00%

7.63%

9.60%

10.81%

Tier 1 Risk Based

6.00%

14.18%

11.80%

18.64%

Total Risk Based

10.00%

15.44%

13.04%

19.90%

At September 30, 2010, book value per share was $48.37, up $0.06, compared to June 30, 2010, and up 17% compared to one year ago. Tangible book value per share decreased $0.21 over that period to $38.50, and up 33% compared to one year ago.

On September 15, 2010, 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 2.56%, based on the closing stock price of the Company's common stock on October 26, 2010 of $53.14 per share.  This price equated to 1.10 times September 30, 2010 book value per share of $48.37 and 1.38 times tangible book value per share of $38.50.

Interest Rate Risk Position

The Company's interest rate risk modeling at September 30, 2010 indicated the Company is 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 5.7%.  Similarly, a 100 basis point decrease in interest rates is expected to decrease net interest income by approximately 0.6%.  At September 30, 2010, approximately 50% 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 46%.  Approximately 70% of the Company's time deposit base will re-price within 12 months from September 30, 2010.  

Operating Results

The Company's average excess liquidity position decreased from approximately $1.1 billion to $1.0 billion on a linked quarter basis, maintaining pressure on the yield on earning assets.  The yield on average investment securities and loans declined 33 and 36 basis points, respectively, on a linked quarter basis.  The average earning asset yield decreased 25 basis points, while the cost of interest bearing deposits and liabilities decreased 14 and 12 basis points, respectively. As a result, the net interest spread and margin declined 12 and 14 basis points, respectively, on a linked quarter basis.  Tax-equivalent net interest income decreased $1 million, or 1%, on a linked quarter basis, as average earning assets increased $344 million, or 4%, on a linked quarter basis.

Quarterly Average Yields/Cost (Taxable Equivalent Basis)

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

Earning Asset Yield

4.99%

4.66%

4.64%

4.45%

4.38%

4.13%

Cost Of Int-Bearing Liabs

2.12%

1.96%

1.74%

1.47%

1.56%

1.44%

Net Interest Spread

2.87%

2.69%

2.90%

2.97%

2.82%

2.70%

Net Interest Margin

3.17%

3.02%

3.13%

3.16%

3.05%

2.91%

Aggregate noninterest income increased $6 million, or 20%, on a linked quarter basis.  The primary changes on a linked quarter basis were a higher level of gains on the sale of investment securities (up $4 million) and mortgage loans (up $3 million), as well as higher brokerage income (up $1 million), partially offset by lower income on deposit account service charges, credit card fees, and commercial loan income.

The Company's mortgage origination business experienced substantial strength in the third quarter of 2010.  The Company originated $521 million in mortgage loans during the third quarter of 2010, up $79 million, or 18%, on a linked quarter basis.  Client loan refinancing opportunities accounted for approximately 52% of mortgage loan applications in the third quarter of 2010, and approximately 56% between September 30, 2010 and October 15, 2010.  The Company sold $466 million in mortgage loans during the third quarter of 2010, up $66 million, or 17%, compared to the second quarter of 2010.  Sales margins remained fairly stable on a linked quarter basis.  Gains on the sale of mortgage loans totaled $14 million in the third quarter of 2010, an increase of $3 million, or 27%, on a linked quarter basis.  The mortgage pipeline was approximately $220 million at September 30, 2010, and has since risen to approximately $236 million at October 15, 2010.

Noninterest expense increased $5 million, or 6%, on a linked quarter basis.  In aggregate, one-time merger-related costs totaled $1 million in the third quarter of 2010, compared to $4 million in the second quarter.  Excluding one-time merger-related costs, noninterest expense increased $7 million on a linked quarter basis.  The drivers of the expense increase were the penalty on the repayment of long-term debt ($3.5 million), and increases in mortgage commissions, other real estate expense, and credit and other loan expense (up approximately $1 million each). The Company incurred approximately $0.3 million in expense associated with the repurchase of mortgage loans from investors during the third quarter of 2010.  The combined tangible efficiency ratio of the Company's financial institution subsidiaries was approximately 62.1% in the third quarter of 2010.

IBERIABANK Corporation

IBERIABANK Corporation is a multi-bank financial holding company with 224 combined offices, including 144 bank branch offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, and Florida, 26 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 54 locations in 12 states.

The Company opened four new bank branch offices since June 30, 2010.  Offices were opened in Mobile and Fairhope, Alabama, reaching a total of three offices serving the greater Mobile area.  Two additional offices were opened in Houston, Texas, reaching a total of four offices serving the Houston market.

The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC."  The Company's market capitalization was approximately $1.4 billion, based on the NASDAQ closing stock price on October 26, 2010.

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
  • Morgan Keegan & Company, Inc.
  • Raymond James & Associates, Inc.
  • Robert W. Baird & Company
  • 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 Wednesday, October 27, 2010, beginning at 9:30 a.m. Central Time by dialing 1-800-230-1951. The confirmation code for the call is 173672.  A replay of the call will be available until midnight Central Time on November 3, 2010 by dialing 1-800-475-6701. The confirmation code for the replay is 173672.  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, including the availability of future FDIC-assisted failed bank opportunities, unanticipated losses related to the integration of, and accounting for, 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 and economic conditions in these markets, rapid changes in the financial services industry, dependence on our operational, technological, and organizational infrastructure, hurricanes and other adverse weather events, the volatility and low trading volume of our common stock, and valuation of intangible assets.  These and other factors that may cause actual results to differ materially from these forward-looking statements are discussed in the Company's Annual Report on Form 10-K 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 Ended

For The Quarter Ended

September 30,

June 30,

2010

2009

% Change

2010

% Change

Income Data (in thousands):

Net Interest Income

$        69,933

$           40,666

72%

$        70,139

(0%)

Net Interest Income  (TE)   (1)

71,702

42,297

70%

72,730

(1%)

Net Income

13,940

24,952

(44%)

8,840

58%

Earnings Available to Common Shareholders- Basic

13,940

24,952

(44%)

8,840

58%

Earnings Available to Common Shareholders- Diluted

13,652

24,344

(44%)

8,651

58%

Per Share Data:

Earnings Available to Common Shareholders - Basic

$            0.52

$               1.23

(58%)

$            0.33

55%

Earnings Available to Common Shareholders - Diluted

0.52

1.22

(58%)

0.33

58%

Book Value Per Common Share

48.37

41.41

17%

48.31

0%

Tangible Book Value Per Common Share (2)

38.50

28.88

33%

38.71

(1%)

Cash Dividends

0.34

0.34

-

0.34

-

Number of Shares Outstanding:

Basic Shares  (Average)

26,840,723

20,253,317

33%

26,804,334

0%

Diluted Shares  (Average)

26,460,084

19,944,420

33%

26,506,308

(0%)

Book Value Shares  (Period End) (3)

26,872,742

20,623,541

30%

26,865,543

0%

Key Ratios: (4)

Return on Average Assets

0.52%

1.62%

0.34%

Return on Average Common Equity

4.24%

11.77%

2.73%

Return on Average Tangible Common Equity (2)

5.64%

17.26%

3.73%

Net Interest Margin  (TE) (1)

2.91%

3.02%

3.05%

Efficiency Ratio

75.3%

44.7%

75.1%

Tangible Efficiency Ratio  (TE)  (1) (2)

72.6%

43.5%

71.8%

Average Loans to Average Deposits

70.4%

91.0%

70.6%

Nonperforming Assets to Total Assets (5)

9.21%

2.33%

9.93%

Allowance for Loan Losses to Loans

2.28%

1.14%

1.67%

Net Charge-offs to Average Loans

0.36%

2.26%

0.44%

Average Equity to Average Total Assets

12.26%

13.67%

12.56%

Tier 1 Leverage Ratio

10.81%

11.55%

11.15%

Common Stock Dividend Payout Ratio

65.5%

28.1%

103.3%

Tangible Common Equity Ratio

10.05%

9.59%

10.28%

Tangible Common Equity to Risk-Weighted Assets

17.23%

13.38%

18.60%

(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)

September 30,

June 30,

December 31,

2010

2009

% Change

2010

2009

ASSETS

Cash and Due From Banks

$              99,670

$                  66,579

49.7%

$        93,531

$         94,674

Interest-bearing Deposits in Banks

804,012

273,982

193.5%

1,031,205

80,723

  Total Cash and Equivalents

903,682

340,561

165.4%

1,124,736

175,397

Investment Securities Available for Sale

1,587,088

1,024,868

54.9%

1,441,994

1,320,476

Investment Securities Held to Maturity

320,707

70,951

352.0%

305,629

260,361

  Total Investment Securities

1,907,795

1,095,819

74.1%

1,747,623

1,580,837

Mortgage Loans Held for Sale

171,545

52,796

224.9%

114,914

66,945

Loans, Net of Unearned Income

5,791,378

4,298,845

34.7%

5,760,550

5,784,365

Allowance for Loan Losses

(131,954)

(48,787)

170.5%

(96,000)

(55,768)

  Loans, net

5,659,424

4,250,058

33.2%

5,664,550

5,728,597

Loss Share Receivable

906,014

86,955

941.9%

822,858

1,034,734

Premises and Equipment

201,626

130,453

54.6%

195,464

137,426

Goodwill and Other Intangibles

265,266

258,186

2.7%

257,865

260,144

Mortgage Servicing Rights

212

219

(3.3%)

235

229

Other Assets

545,184

251,473

116.8%

448,219

716,093

  Total Assets

$       10,560,748

$             6,466,520

63.3%

$ 10,376,464

$    9,700,402

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing Deposits

$            856,882

$                628,800

36.3%

$      820,254

$       874,885

Interest-bearing Deposits

7,407,257

4,146,933

78.6%

7,253,657

6,681,263

  Total Deposits

8,264,139

4,775,733

73.0%

8,073,911

7,556,148

Short-term Borrowings

30,190

15,000

101.3%

15,000

90,000

Securities Sold Under Agreements to Repurchase

259,058

193,234

34.1%

184,969

173,351

Long-term Debt

440,915

526,106

(16.2%)

586,130

745,864

Other Liabilities

266,698

105,866

151.9%

218,625

180,824

  Total Liabilities

9,261,000

5,615,939

64.9%

9,078,635

8,746,187

Total Shareholders' Equity

1,299,748

850,581

52.8%

1,297,829

954,215

  Total Liabilities and Shareholders' Equity

$       10,560,748

$             6,466,520

63.3%

$ 10,376,464

$    9,700,402

For The Three Months Ended

For The Nine Months Ended

INCOME STATEMENT

September 30,

September 30,

2010

2009

% Change

2010

2009

Interest Income

$              99,818

$                  63,554

57.1%

$      298,655

$       184,849

Interest Expense

29,885

22,888

30.6%

89,377

69,620

  Net Interest Income

69,933

40,666

72.0%

209,278

115,229

Provision for Loan Losses

5,128

25,295

(79.7%)

31,227

36,110

  Net Interest Income After Provision for Loan Losses

64,805

15,371

321.6%

178,051

79,119

Service Charges

6,085

5,983

1.7%

18,361

16,734

ATM / Debit Card Fee Income

2,562

1,958

30.9%

7,444

5,635

BOLI Proceeds and Cash Surrender Value Income

726

729

(0.4%)

2,153

2,163

Gain on Acquisition

-

57,831

(100.0%)

3,781

57,831

Gain on Sale of Loans, net

13,518

7,264

86.1%

31,517

26,602

Gain (Loss) on Sale of Investments, net

4,176

(25)

16931.4%

5,158

5,857

Title Revenue

4,852

4,638

4.6%

13,368

14,349

Broker Commissions

2,320

1,329

74.6%

5,204

3,544

Other Noninterest Income

2,542

1,527

66.4%

8,851

4,278

  Total Noninterest Income

36,781

81,234

(54.7%)

95,837

136,993

Salaries and Employee Benefits

40,932

29,161

40.4%

116,323

80,041

Occupancy and Equipment

8,779

5,856

49.9%

24,493

17,269

Amortization of Acquisition Intangibles

1,316

627

109.9%

3,595

1,870

Other Noninterest Expense

29,344

18,896

55.3%

78,736

48,965

  Total Noninterest Expense

80,371

54,540

47.4%

223,147

148,145

  Income Before Income Taxes

21,215

42,065

(49.6%)

50,741

67,967

Income Taxes

7,275

17,113

(57.5%)

14,958

25,396

  Net Income

$              13,940

$                  24,952

(44.1%)

$        35,783

$         42,571

  Preferred Stock Dividends

-

-

-

-

(3,350)

  Earnings Available to Common Shareholders - Basic

13,940

24,952

(44.1%)

35,783

39,221

  Earnings Allocated to Unvested Restricted Stock

(288)

(608)

(52.7%)

(716)

(1,035)

  Earnings Available to Common Shareholders - Diluted

13,652

24,344

(43.9%)

35,067

38,186

Earnings Per Share, diluted

$                  0.52

$                      1.22

(57.7%)

$            1.40

$             2.22

IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

For The Quarter Ended

BALANCE SHEET (Average)

September 30,

June 30,

March 31,

December 31,

September 30,

2010

2010

2010

2009

2009

ASSETS

Cash and Due From Banks

$              95,687

$              95,822

$               92,145

$        75,435

$         59,975

Interest-bearing Deposits in Banks

959,466

1,007,124

387,929

305,371

299,591

Investment Securities

1,919,056

1,617,372

1,569,301

1,327,579

1,074,896

Mortgage Loans Held for Sale

131,944

82,502

50,810

58,785

60,350

Loans, Net of Unearned Income

5,830,711

5,616,203

5,737,876

5,070,584

4,049,351

Allowance for Loan Losses

(92,941)

(63,115)

(55,133)

(49,442)

(45,711)

Loss Share Receivable

865,810

914,437

1,033,377

590,804

38,784

Other Assets

935,828

1,050,169

1,054,224

787,488

592,455

  Total Assets

$       10,645,561

$       10,320,514

$          9,870,529

$   8,166,604

$    6,129,691

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing Deposits

$            840,765

$            818,985

$             824,959

$      749,262

$       583,229

Interest-bearing Deposits

7,440,136

7,138,919

6,887,249

5,424,348

3,864,927

  Total Deposits

8,280,901

7,957,904

7,712,208

6,173,610

4,448,156

Short-term Borrowings

17,402

17,967

32,769

31,054

2,174

Securities Sold Under Agreements to Repurchase

214,411

176,357

168,303

188,339

210,115

Long-term Debt

567,166

639,923

736,458

681,789

536,877

Other Liabilities

260,155

231,875

162,675

174,133

94,189

  Total Liabilities

9,340,035

9,024,026

8,812,413

7,248,925

5,291,511

Total Shareholders' Equity

1,305,526

1,296,488

1,058,116

917,679

838,180

  Total Liabilities and Shareholders' Equity

$       10,645,561

$       10,320,514

$          9,870,529

$   8,166,604

$    6,129,691

2010

2009

Third

Second

First

Fourth

Third

INCOME STATEMENT

Quarter

Quarter

Quarter

Quarter

Quarter

Interest Income

$              99,818

$            101,217

$               97,620

$        85,538

$         63,554

Interest Expense

29,885

31,078

28,414

27,982

22,888

  Net Interest Income

69,933

70,139

69,206

57,556

40,666

Provision for Loan Losses

5,128

12,899

13,201

9,260

25,295

  Net Interest Income After Provision for Loan Losses

64,805

57,240

56,005

48,296

15,371

Total Noninterest Income

36,781

30,704

28,353

196,353

81,234

Total Noninterest Expense

80,371

75,775

67,000

75,114

54,540

  Income Before Income Taxes

21,215

12,169

17,358

169,535

42,065

Income Taxes

7,275

3,329

4,354

60,633

17,113

  Net Income

$              13,940

$                8,840

$               13,004

$      108,902

$         24,952

  Preferred Stock Dividends

-

-

-

-

-

  Earnings Available to Common Shareholders - Basic

$              13,940

$                8,840

$               13,004

$      108,902

$         24,952

  Earnings Allocated to Unvested Restricted Stock

(288)

(189)

(252)

(2,717)

(608)

  Earnings Available to Common Shareholders - Diluted

$              13,652

$                8,651

$               12,752

$      106,185

$         24,344

Earnings Per Share, basic

$                  0.52

$                  0.33

$                   0.60

$            5.27

$             1.23

Earnings Per Share, diluted

$                  0.52

$                  0.33

$                   0.59

$            5.23

$             1.22

Book Value Per Share

$                48.37

$                48.31

$                 48.29

$          46.04

$           41.41

Return on Average Assets

0.52%

0.34%

0.53%

5.29%

1.62%

Return on Average Common Equity

4.24%

2.73%

4.98%

46.93%

11.77%

Return on Average Tangible Common Equity

5.64%

3.73%

6.94%

66.25%

17.26%

IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

LOANS RECEIVABLE

September 30,

June 30,

December 31,

2010

2009

% Change

2010

2009

Residential Mortgage Loans:

  Residential 1-4 Family

$            647,657

$             519,601

24.6%

$           767,502

$           975,395

  Construction/ Owner Occupied

14,564

19,737

(26.2%)

23,251

32,857

     Total Residential Mortgage Loans

662,221

539,338

22.8%

790,753

1,008,252

Commercial Loans:

  Real Estate

2,483,420

1,808,787

37.3%

2,484,828

2,500,433

  Business

1,415,088

1,005,862

40.7%

1,348,217

1,217,326

     Total Commercial Loans

3,898,508

2,814,649

38.5%

3,833,045

3,717,759

Consumer Loans:

  Indirect Automobile

266,859

267,801

(0.4%)

268,936

259,339

  Home Equity

821,608

525,721

56.3%

722,272

649,821

  Automobile

30,511

30,782

(0.9%)

30,640

30,552

  Credit Card Loans

42,370

42,527

(0.4%)

42,301

44,561

  Other

69,301

78,027

(11.2%)

72,603

74,081

     Total Consumer Loans

1,230,649

944,858

30.2%

1,136,752

1,058,354

     Total Loans Receivable

5,791,378

4,298,845

34.7%

5,760,550

5,784,365

Allowance for Loan Losses

(131,954)

(48,787)

(96,000)

(55,768)

  Loans Receivable, Net

$         5,659,424

$          4,250,058

$        5,664,550

$        5,728,597

ASSET QUALITY DATA

September 30,

June 30,

December 31,

2010

2009

% Change

2010

2009

Nonaccrual Loans

$            871,353

$             123,304

606.7%

$           870,153

$           893,441

Foreclosed Assets

173

55

213.8%

12

35

Other Real Estate Owned

57,322

22,906

150.2%

45,831

74,056

Accruing Loans More Than 90 Days Past Due

43,593

4,698

828.0%

113,891

43,952

Total Nonperforming Assets

$            972,441

$             150,963

544.2%

$        1,029,887

$        1,011,485

Nonperforming Assets to Total Assets

9.21%

2.33%

294.5%

9.93%

10.43%

Nonperforming Assets to Total Loans and OREO

16.6%

3.49%

375.9%

17.74%

17.27%

Allowance for Loan Losses to Nonperforming Loans (1)

14.4%

38.1%

(62.2%)

9.8%

5.9%

Allowance for Loan Losses to Nonperforming Assets

13.6%

32.3%

(58.0%)

9.3%

5.5%

Allowance for Loan Losses to Total Loans

2.28%

1.14%

100.7%

1.67%

0.96%

Year to Date Charge-offs

$              22,638

$               29,892

(24.3%)

$             14,596

$             33,267

Year to Date Recoveries

(6,103)

(1,554)

292.8%

(3,391)

$             (2,646)

Year to Date Net Charge-offs

$              16,535

$               28,338

(41.7%)

$             11,205

$             30,621

Quarter to Date Net Charge-offs

$                5,330

$               22,980

(76.8%)

$               6,111

$               2,283

(1) Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due.

DEPOSITS

September 30,

June 30,

December 31,

2010

2009

% Change

2010

2009

Noninterest-bearing Demand Accounts

$            856,882

$             628,800

36.3%

$           820,254

$           874,885

NOW Accounts

1,254,498

959,041

30.8%

1,333,120

1,351,609

Savings and Money Market Accounts

3,013,378

1,326,202

127.2%

2,808,412

2,253,065

Certificates of Deposit

3,139,381

1,861,690

68.6%

3,112,125

3,076,589

  Total Deposits

$         8,264,139

$          4,775,733

73.0%

$        8,073,911

$        7,556,148

IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

Taxable Equivalent Basis

(dollars in thousands)

For The Quarter Ended

September 30, 2010

June 30, 2010

September 30, 2009

Average

Average

Average

Average

Balance

Yield/Rate (%)

Average

Balance

Yield/Rate (%)

Average

Balance

Yield/Rate (%)

ASSETS

Earning  Assets:

Loans Receivable:

Mortgage Loans

$                710,112

7.42%

$       902,597

7.26%

$       501,196

5.60%

Commercial Loans (TE) (1)

3,918,156

5.88%

3,644,349

6.22%

2,614,911

4.74%

Consumer and Other Loans

1,202,443

6.21%

1,069,257

6.81%

933,244

6.42%

Total  Loans

5,830,711

6.14%

5,616,203

6.50%

4,049,351

5.23%

Mortgage Loans Held for Sale

131,944

4.26%

82,502

4.65%

60,350

4.72%

Investment  Securities (TE) (1)(2)

1,843,511

2.90%

1,573,403

3.23%

1,040,275

4.03%

Other  Earning Assets

1,898,123

0.19%

2,088,590

0.16%

380,080

0.28%

Total  Earning Assets

9,704,289

4.13%

9,360,698

4.38%

5,530,056

4.66%

Allowance for Loan Losses

(92,941)

(63,115)

(45,711)

Nonearning Assets

1,034,213

1,022,931

645,346

Total Assets

$           10,645,561

$  10,320,514

$    6,129,691

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities

  Deposits:

     NOW Accounts

$             1,281,554

0.67%

$    1,347,510

0.74%

$       945,141

0.77%

     Savings and Money Market Accounts

2,953,907

1.18%

2,678,399

1.54%

1,222,273

1.31%

     Certificates of Deposit

3,204,675

1.71%

3,113,010

1.71%

1,697,513

2.69%

        Total Interest-bearing Deposits

7,440,136

1.32%

7,138,919

1.46%

3,864,927

1.78%

  Short-term Borrowings

231,813

0.39%

194,324

0.40%

212,289

0.68%

  Long-term Debt

567,166

3.35%

639,923

3.01%

536,877

3.75%

        Total Interest-bearing Liabilities

8,239,115

1.44%

7,973,166

1.56%

4,614,093

1.96%

Noninterest-bearing Demand Deposits

840,765

818,985

583,229

Noninterest-bearing Liabilities

260,155

231,875

94,189

        Total Liabilities

9,340,035

9,024,026

5,291,511

Shareholders' Equity

1,305,526

1,296,488

838,180

        Total Liabilities and Shareholders' Equity

$           10,645,561

$  10,320,514

$    6,129,691

Net Interest Spread

$                  69,933

2.70%

$         70,139

2.82%

$         40,666

2.69%

Tax-equivalent Benefit

1,769

0.07%

2,591

0.08%

1,631

0.12%

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

$                  71,702

2.91%

$         72,730

3.05%

$         42,297

3.02%

(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 Nine Months Ended

September 30, 2010

September 30, 2009

Average

Average

Average

Average

Balance

Yield/Rate (%)

Balance

Yield/Rate (%)

ASSETS

Earning  Assets:

Loans Receivable:

Mortgage Loans

$            867,399

6.75%

$       504,817

5.63%

Commercial Loans (TE) (1)

3,754,208

5.93%

2,439,238

4.70%

Consumer and Other Loans

1,107,893

6.49%

917,286

6.51%

Total  Loans

5,729,500

6.16%

3,861,341

5.25%

Mortgage Loans Held for Sale

88,716

4.45%

77,107

4.76%

Investment  Securities (TE) (1)(2)

1,653,686

3.16%

1,005,094

4.36%

Other  Earning Assets

1,879,796

0.15%

219,248

0.42%

Total  Earning Assets

9,351,698

4.31%

5,162,790

4.87%

Allowance for Loan Losses

(70,453)

(43,149)

Nonearning Assets

1,003,918

647,334

Total Assets

$       10,285,163

$    5,766,975

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing Liabilities

  Deposits:

     NOW Accounts

$         1,341,581

0.72%

$       934,387

0.84%

     Savings and Money Market Accounts

2,680,060

1.44%

1,110,934

1.42%

     Certificates of Deposit

3,132,881

1.61%

1,584,666

2.90%

        Total Interest-bearing Deposits

7,154,522

1.38%

3,629,987

1.92%

  Short-term Borrowings

209,297

0.39%

190,555

0.74%

  Long-term Debt

647,229

3.03%

543,699

4.01%

        Total Interest-bearing Liabilities

8,011,048

1.49%

4,364,241

2.13%

Noninterest-bearing Demand Deposits

828,294

569,371

Noninterest-bearing Liabilities

224,850

84,546

        Total Liabilities

9,064,192

5,018,158

Shareholders' Equity

1,220,971

748,817

        Total Liabilities and Shareholders' Equity

$       10,285,163

$    5,766,975

Net Interest Spread

$            209,278

2.82%

$       115,229

2.74%

Tax-equivalent Benefit

6,193

0.08%

4,385

0.11%

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

$            215,471

3.04%

$       119,614

3.07%

(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

9/30/2010

6/30/2010

9/30/2009

Net Interest Income

$                69,933

$             70,139

$        40,666

Effect of Tax Benefit on Interest Income

1,769

2,591

1,631

Net Interest Income (TE) (1)

71,702

72,730

42,297

Noninterest Income

36,781

30,704

81,234

Effect of Tax Benefit on Noninterest Income

391

386

393

Noninterest Income (TE) (1)

37,172

31,090

81,627

Total Revenues (TE) (1)

$              108,874

$           103,820

$      123,924

Total Noninterest Expense

$                80,371

$             75,775

$        54,540

Less Intangible Amortization Expense

(1,316)

(1,269)

(627)

Tangible Operating Expense (2)

$                79,055

$             74,506

$        53,913

Return on Average Common Equity

4.24%

2.73%

11.77%

Effect of Intangibles (2)

1.40%

1.00%

5.49%

Return on Average Tangible Common Equity (2)

5.64%

3.73%

17.26%

Efficiency Ratio

75.3%

75.1%

44.7%

Effect of Tax Benefit Related to Tax Exempt Income

(1.5%)

(2.1%)

(0.7%)

Efficiency Ratio (TE) (1)

73.8%

73.0%

44.0%

Effect of Amortization of Intangibles

(1.2%)

(1.2%)

(0.5%)

Tangible Efficiency Ratio (TE) (1) (2)

72.6%

71.8%

43.5%

(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



RELATED LINKS

http://www.iberiabank.com