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

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