IBERIABANK CORPORATION LAFAYETTE, La., Jan. 26, 2017 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 129-year-old IBERIABANK (www.iberiabank.com), reported financial results for the fourth quarter ended December 31, 2016. For the quarter, the Company reported income available to common shareholders of $44.2 million, or $1.04 fully diluted earnings per common share ("EPS"). On a non-GAAP basis, EPS excluding non-core revenues and non-core expenses ("Core EPS") in the fourth quarter of 2016 was $1.16 per common share (refer to press release supplemental tables for a reconciliation of GAAP to non-GAAP metrics).
For the year ended December 31, 2016, the Company reported income available to common shareholders of $178.8 million, an increase of $36.0 million, or 25%, compared to the year ended December 31, 2015. On that basis, EPS for the year of 2016 was $4.30 per common share, up 17% compared to 2015. Core earnings for the year of 2016 was $184.1 million, up $22.0 million, or 14%, compared to 2015. Core EPS for the year of 2016 was $4.43 per common share, up 6% compared to 2015. The levels of annual Core earnings and Core EPS in 2016 were record results for the Company.
Daryl G. Byrd, President and Chief Executive Officer, commented, "We were active on many fronts during the fourth quarter of 2016, and we delivered solid quarterly financial results which capped off an outstanding and record year for our Company. Despite typical seasonal softness in our mortgage and title businesses, we delivered our second highest level of quarterly Core EPS in our Company's history, and we demonstrated our sustained focus on efficiency. We experienced an abundance of liquidity driven by record organic deposit growth, the byproduct of which will be temporary compression of our net interest margin until the excess liquidity is fully deployed. Our capital position was further strengthened with the successful execution of a common stock offering that was well-oversubscribed by investors. Near the latter part of the fourth quarter we began to see the benefits of our asset-sensitive balance sheet position in a rising interest rate environment. Finally, we successfully completed the early termination of our FDIC loss share agreements after seven years of participation in that program. We are pleased with our continued financial progress and our unique position within the banking industry during this period of significant economic, political, and technological change."
Highlights for the fourth quarter of 2016 and at December 31, 2016:
-- The Company achieved quarterly organic deposit growth of $886 million on
a period-end basis and $817 million on an average balance basis, each of
which were quarterly record results for the Company.
-- The reported and cash net interest margins declined on a linked quarter
basis as a result of additional balance sheet liquidity from the strong
deposit inflows.
-- Energy-related loans ("energy loans") declined to 3.7% of total loans,
classified energy loans declined 7%, and energy-related non-performing
assets decreased during the fourth quarter of 2016.
-- Overall improvement in consolidated credit quality resulted in a $7
million decline in the provision for loan losses on a linked quarter
basis.
-- Total revenues declined 4% on a linked quarter basis primarily due to a
decline in the Company's seasonal fee income businesses and slower loan
growth. The Company's core efficiency remained generally stable on a
linked quarter basis.
-- IBERIABANK successfully terminated loss share agreements associated with
FDIC-assisted acquisitions. As a result of this action, the Company
recorded a non-core $17.8 million pre-tax charge during the fourth
quarter of 2016 and will no longer incur expenses associated with these
agreements. IBERIABANK will recognize all future recoveries, losses, and
expenses related to the assets previously subject to these agreements.
-- The Company experienced a $6.8 million reduction in income tax expense
associated with the filing of its 2015 tax return. This non-core tax
benefit equated to $0.16 per common share.
-- The Company issued and sold approximately 3.6 million shares of common
stock, resulting in net proceeds of $280 million and further
strengthened the Company's capital position.
Table A - Summary Financial Results
(Dollars in thousands, except per share data)
For the Three Months Ended
--------------------------
12/31/2016 9/30/2016 % Change 12/31/2015 % Change
---------- --------- -------- ---------- --------
GAAP BASIS:
Income available
to common
shareholders $44,173 $44,478 (0.7) $44,407 (0.5)
Earnings per
common share -
diluted 1.04 1.08 (3.7) 1.08 (3.7)
Average loans, net
of unearned
income $14,912,350 $14,802,199 0.7 $14,185,150 5.1
Average total
deposits 16,893,643 16,076,742 5.1 16,292,755 3.7
Net interest
margin (TE) (1) 3.34 3.53 3.64
Total revenues $214,903 $223,238 (3.7) $213,663 0.6
Total non-
interest expense 151,570 138,139 9.7 138,975 9.1
Efficiency ratio 70.5 61.9 65.0
Return on average
assets 0.85 0.94 0.90
Return on average
common equity 6.70 7.00 7.30
NON-GAAP BASIS
(2):
Core revenues $214,898 $223,226 (3.7) $213,506 0.7
Core non-interest
expense 133,562 138,139 (3.3) 134,111 (0.4)
Core earnings per
common share -
diluted 1.16 1.08 7.4 1.11 4.5
Core tangible
efficiency ratio
(TE) (1) (4) 60.3 60.1 61.1
Core return on
average assets 0.94 0.94 0.92
Core return on
average tangible
common equity(4) 10.75 10.30 11.20
Net interest
margin (TE) -
cash basis (1)
(3) 3.16 3.31 3.38
(1) Fully taxable
equivalent
(TE)
calculations
include the
tax benefit
associated
with related
income
sources that
are tax-
exempt using
a rate of
35%, which
approximates
the marginal
tax rate.
(2) See Table 12
and Table 13
for GAAP to
Non-GAAP
reconciliations.
(3) See Table 11
for
adjustments
related to
purchase
discounts on
acquired
loans and
related
accretion and
the impact of
the FDIC
indemnification
asset.
(4) Tangible
calculations
eliminate the
effect of
goodwill and
acquisition
related
intangible
assets and
the
corresponding
amortization
expense on a
tax-effected
basis where
applicable.
Operating Results
On a linked quarter basis, average loan volume (including the FDIC loss share receivable) increased $103 million, or 1%, and the associated tax-equivalent yield decreased nine basis points. Over that period, average legacy loans increased $298 million, or 2%, with a decrease in yield of two basis points, and average acquired loans (including the FDIC loss share receivable) decreased $195 million, or 7%, and the yield decreased 17 basis points. All other average earning assets, including investment securities, mortgage loans held for sale, and interest-bearing deposits in other institutions, increased a net of $724 million, or 20%.
Primarily as a result of additional balance sheet liquidity, the Company's reported and cash net interest margins declined 19 and 15 basis points, respectively, on a linked quarter basis. The excess liquidity compressed the net interest margin by approximately eight basis points on a linked quarter basis.
On a linked quarter basis, average earning assets increased $827 million, or 4%, and the average earning asset yield decreased 16 basis points. Average interest-bearing liabilities increased $406 million, or 3%, and the cost of interest-bearing liabilities increased four basis points. On a linked quarter basis, tax-equivalent net interest income decreased $1.7 million, or 1%.
The Company's provision for loan losses decreased $7.3 million, or 59%, on a linked quarter basis to $5.2 million. The provision for loan losses covered net charge-offs in the fourth quarter of 2016 by 68% compared to 122% in the third quarter of 2016.
In the fourth quarter of 2016, non-interest income on a GAAP and non-core basis decreased $6.6 million, or 11%, compared to the third quarter of 2016. The primary changes in core non-interest income on a linked quarter basis included:
-- Decreased mortgage income of $5.7 million, or 26%;
-- Decreased brokerage commission and swap income of $0.9 million; and
-- Decreased title revenues of $0.7 million, or 11%; partially offset by
-- Increased capital markets income of $0.6 million.
In the fourth quarter of 2016, the Company originated $538 million in residential mortgage loans, down $161 million, or 23%, on a linked quarter basis. Client loan refinancing opportunities accounted for approximately 30% of mortgage loan applications in the fourth quarter of 2016, compared to 26% on a linked quarter basis. The Company sold $583 million in mortgage loans during the fourth quarter of 2016, down $123 million, or 17%, on a linked quarter basis. Loans held for sale decreased from $211 million at September 30, 2016, to $157 million at December 31, 2016. The mortgage origination locked pipeline was $166 million at December 31, 2016, down $116 million, or 41%, between quarter-ends, and was down 27% compared to one year ago. At January 20, 2017, the locked pipeline was $182 million, up 10% compared to December 31, 2016.
Non-interest expense increased $13.4 million, or 10%, on a linked quarter basis, the increase of which was the result of the Company's termination of FDIC loss share agreements. On December 20, 2016, IBERIABANK terminated 12 loss share agreements associated with FDIC-assisted acquisitions. IBERIABANK received a net cash payment from the FDIC of $6.5 million as consideration for the termination of those agreements, and recorded a non-core pre-tax $17.8 million expense, or $0.28 per common share, associated with the termination. IBERIABANK will recognize all future recoveries, losses, and expenses related to the assets previously subject to these agreements.
Excluding non-core expenses, core non-interest expense decreased $4.6 million, or 3%, and was comprised of the the following items on a linked-quarter basis:
-- Decreased health care costs of $2.7 million;
-- Decreased mortgage commission expenses of $1.7 million;
-- Decreased occupancy expense of $1.0 million;
-- Decreased FDIC insurance premiums of $1.0 million;
-- Decreased legal and professional expense of $0.8 million;
-- Decreased marketing expense of $0.7 million; and
-- Decreased compensation costs of $0.6 million; partially offset by
-- Increased credit and loan-related expenses of $1.5 million;
-- Increased phantom stock incentives expense of $1.5 million; and
-- Increased computer services expense of $0.9 million.
The Company's provision for unfunded commitments, which is included in credit and loan related expense in non-interest expense, increased $1.1 million during the fourth quarter of 2016. The reserve for unfunded commitments was $11.2 million at December 31, 2016 ($1.0 million of which were energy-related).
On a linked quarter basis, the Company's revenues and non-GAAP core revenues decreased $8.3 million, or 4%. Over the same period, GAAP expenses increased $13.4 million, or 10%, and non-GAAP core expenses decreased $4.6 million, or 3%. The efficiency ratio increased from 61.9% to 70.5%, while the non-GAAP core tangible efficiency ratio edged up slightly from 60.1% to 60.3% on a linked quarter basis. The Company continues to focus on expense containment and revenue enhancement strategies intended to further improve its targeted core tangible efficiency ratio.
Table B - Summary Financial Condition Results
(Dollars in thousands, except per share data)
As of and For the Three Months Ended
------------------------------------
12/31/2016 9/30/2016 % Change 12/31/2015 % Change
---------- --------- -------- ---------- --------
PERIOD-END BALANCES:
Total loans, net of unearned
income $15,064,971 $14,924,499 0.9 $14,327,428 5.1
Legacy loans, net of unearned
income 12,694,924 12,413,370 2.3 11,190,520 13.4
Total deposits 17,408,283 16,522,517 5.4 16,178,748 7.6
ASSET QUALITY RATIOS
(LEGACY):
Loans 30-89 days past due and
still accruing as a
percentage of total loans 0.20% 0.33% 0.18%
Loans 90 days or more past
due and still accruing as a
percentage of total loans 0.01 0.04 0.01
Non-performing assets to
total assets (1) 1.20 1.33 0.42
Classified assets to total
assets (2) 1.94 2.18 1.02
CAPITAL RATIOS:
Tangible common equity ratio
(Non-GAAP) (3) (4) 9.82% 8.87% 8.86%
Tier 1 leverage ratio (5) 10.86 9.70 9.52
Total risk-based capital
ratio (5) 14.13 12.49 12.14
PER COMMON SHARE DATA:
Book value $62.68 $61.71 1.6 $58.87 6.5
Tangible book value (Non-
GAAP) (3) (4) 45.80 43.26 5.9 40.35 13.5
Closing stock price 83.75 67.12 24.8 55.07 52.1
Cash dividends 0.36 0.36 - 0.34 5.9
(1) Non-
performing
assets
consist of
non-accruing
loans,
accruing
loans 90 days
or more past
due and other
real estate
owned,
including
repossessed
assets.
(2) Classified
assets
include
commercial
loans rated
substandard
or worse and
non-
performing
mortgage and
consumer
loans, and
were $373
million, $398
million and
$166 million
at December
31, 2016,
September 30,
2016, and
December 30,
2015,
respectively.
(3) See Table 12
and Table 13
for GAAP to
Non-GAAP
reconciliations.
(4) Tangible
calculations
eliminate the
effect of
goodwill and
acquisition
related
intangible
assets and
the
corresponding
amortization
expense on a
tax-effected
basis where
applicable.
(5) Regulatory
capital
ratios as of
December 31,
2016 are
preliminary.
Loans
Total loans increased $140 million, or 1%, between September 30, 2016, and December 31, 2016. Over that period, acquired loans decreased $141 million, or 6%, and legacy loans increased $282 million, or 2% (9% annualized rate), including a decrease in total energy loans of $38 million, or 6%, and a decline in indirect automobile loans of $23 million, or 15%. During the fourth quarter of 2016, legacy commercial loans increased $258 million, or 3% (which included $38 million in small business loan growth, up 3%, or 12% annualized rate), legacy consumer loans increased $9 million, or less than 1%, and legacy mortgage loans increased $14 million, or 2%. Period-end loan growth during the fourth quarter of 2016 was strongest in the Atlanta, Tampa, Dallas, and Baton Rouge markets. Funded loan origination and renewal mix in the fourth quarter of 2016 was 36% fixed rate and 64% floating rate, and total loans outstanding (excluding non-accruals) were 44% fixed and 56% floating. Commitments originated and/or renewed during the fourth quarter of 2016 were $1.4 billion (down 3% on a linked quarter basis). Loans originated and/or renewed during the fourth quarter of 2016 totaled $936 million (down 4% on a linked quarter basis). At December 31, 2016, the Company's commercial loan pipeline was approximately $811 million.
Table C - Period-End Loans
(Dollars in thousands)
As of and For the Three Months Ended
------------------------------------
Linked Qtr Change Year/Year Change Mix
----------------- ---------------- ---
12/31/2016 9/30/2016 12/31/2015 $ % Annualized $ % 12/31/2016 9/30/2016
---------- --------- ---------- --- --- ---------- --- --- ---------- ---------
Legacy loans:
Commercial $9,377,399 $9,119,234 $8,133,341 258,165 2.8 11.3% 1,244,058 15.3 73.9% 73.4%
Residential
mortgage 854,216 840,082 694,023 14,134 1.7 6.7% 160,193 23.1 6.7% 6.8%
Consumer 2,463,309 2,454,054 2,363,156 9,255 0.4 1.5% 100,153 4.2 19.4% 19.8%
--------- --------- --------- ----- --- --- ------- --- ---- ----
Total legacy
loans 12,694,924 12,413,370 11,190,520 281,554 2.3 9.1% 1,504,404 13.4 100.0% 100.0%
Acquired
loans:
Balance at
beginning of
period 2,511,129 2,737,712 3,337,761 (226,583) (8.3) (826,632) (24.8)
Loans acquired
during the
period - - - - - - -
Net paydown
activity (141,082) (226,583) (200,853) 85,501 (37.7) 59,771 (29.8)
-------- -------- -------- ------ ----- ------ -----
Total acquired
loans 2,370,047 2,511,129 3,136,908 (141,082) (5.6) (766,861) (24.4)
Total loans $15,064,971 $14,924,499 $14,327,428 140,472 0.9 737,543 5.1
=========== =========== =========== ======= === ======= ===
Energy loans outstanding totaled $561 million at December 31, 2016, down $38 million, or 6%, compared to September 30, 2016, and equated to approximately 3.7% of total loans (down from 4.0% at September 30, 2016). Energy-related commitments totaled $970 million at December 31, 2016, down $36 million, or 4%, compared to September 30, 2016. Loans to exploration and production companies accounted for 52% of energy loans outstanding and 56% of energy loan commitments at December 31, 2016. Midstream companies accounted for 16% of energy loans and 19% of energy loan commitments, and service companies accounted for 32% of energy loans and 25% of energy loan commitments.
At December 31, 2016, $150 million in energy loans were on non-accrual status (compared to $154 million at September 30, 2016), and $1.5 million in energy loans (excluding non-accruing loans) were past due greater than 30 days at quarter-end. Classified energy loans declined $17 million, or 7%, and criticized energy loans decreased $2 million, or less than 1%, between quarter-ends. At December 31, 2016, approximately 42% of energy loans were classified and 57% were criticized. To date, the Company has experienced $16 million in energy-related charge-offs. Additional information regarding the Company's energy loan and commitment exposure is provided in Table 8 of this press release and in the supplemental investor presentation.
At December 31, 2016, the Company's indirect automobile lending business had approximately $131 million in loans outstanding, down $23 million, or 15%, compared to September 30, 2016 (0.9% of total loans outstanding compared to 1.0% at September 30, 2016).
Deposits
Total deposits increased $886 million, or 5%, between September 30, 2016 and December 31, 2016. Over that period, non-interest-bearing deposits increased $141 million, or 3%, and equated to 28% of total deposits at December 31, 2016. NOW accounts increased $409 million, or 14%, money market accounts increased $372 million, or 6%, and savings deposits grew $16 million, or 2%. Between September 30, 2016 and December 31, 2016, time deposits decreased $52 million, or 2%. Deposit growth during the fourth quarter of 2016 was strongest in the New Orleans, Acadiana, Houston, and Florida Keys markets.
Table D - Period-End Deposits
(Dollars in thousands)
Linked Qtr Change Year/Year Change Mix
----------------- ---------------- ---
12/31/2016 9/30/2016 12/31/2015 $ % Annualized $ % 12/31/2016 9/30/2016
---------- --------- ---------- --- --- ---------- --- --- ---------- ---------
Non-
interest-
bearing $4,928,878 $4,787,485 $4,352,229 141,393 3.0 11.8% 576,649 13.2 28.3% 29.0%
NOW
accounts 3,314,281 2,904,835 2,974,176 409,446 14.1 56.4% 340,105 11.4 19.0% 17.6%
Money
market
accounts 6,219,532 5,847,913 6,010,882 371,619 6.4 25.4% 208,650 3.5 35.7% 35.4%
Savings
accounts 814,385 798,781 716,838 15,604 2.0 7.8% 97,547 13.6 4.7% 4.8%
Time
deposits 2,131,207 2,183,503 2,124,623 (52,296) (2.4) -9.6% 6,584 0.3 12.3% 13.2%
----
Total
deposits $17,408,283 $16,522,517 $16,178,748 885,766 5.4 21.4% 1,229,535 7.6 100.0% 100.0%
=========== =========== =========== ======= === ==== ========= === ===== =====
On an average balance and linked quarter basis, non-interest-bearing deposits increased $264 million, or 6%, and interest-bearing deposits increased $553 million, or 5%. The rate on average interest-bearing deposits in the fourth quarter of 2016 was 0.50%, up six basis points on a linked quarter basis. The increase in deposit rates was primarily the result of a less favorable change in the mix of deposits during the fourth quarter.
Other Assets And Funding
On an average balance and linked quarter basis, the investment portfolio increased $365 million, or 13%, in the fourth quarter of 2016, to $3.3 billion. On a period-end basis, the investment portfolio equated to $3.5 billion, or 16% of total assets at December 31, 2016, up $559 million, or 19%, compared to September 30, 2016. The investment portfolio had an effective duration of 3.8 years at December 31, 2016, compared to 3.0 years at September 30, 2016. The investment portfolio had a $39 million unrealized loss at December 31, 2016, down from a $42 million unrealized gain at September 30, 2016. The average yield on investment securities remained stable on a linked quarter basis, at 2.09% in the fourth quarter of 2016. The Company holds in its investment portfolio primarily government agency securities. Municipal securities comprised 9% of total investments at December 31, 2016.
On a linked quarter basis, average short-term borrowings (including repurchase agreements) decreased $129 million, or 18%, and the cost of short-term borrowings decreased four basis points. At December 31, 2016, short-term borrowings (including repurchase agreements) decreased $204 million, or 29%, compared to September 30, 2016. On a linked quarter basis, average long-term debt decreased $18 million, or 3%, and the cost of long-term debt increased five basis points to 2.11%. The cost of average interest-bearing liabilities was 0.57% in the fourth quarter of 2016, up four basis points on a linked quarter basis.
Asset Quality
Non-performing assets ("NPAs") decreased $12 million, or 4%, to $251 million at December 31, 2016. Acquired NPAs were stable at $19 million, while legacy NPAs, which include energy and non-energy loans, decreased $12 million, or 5%, and equated to 1.20% of total assets. Energy-related NPAs (which are included in legacy loans) decreased by $3 million, or 2%, and accounted for 28% of the decrease in the Company's total NPAs during the fourth quarter of 2016. At December 31, 2016, non-energy-related NPAs decreased $8 million, or 8%, and equated to 0.48% of total assets, down from 0.53% at September 30, 2016.
Aggregate loans past due 30 to 89 days decreased $16 million, or 36%, and equated to 0.19% of total loans at December 31, 2016, compared to 0.30% at September 30, 2016.
Net charge-offs totaled $7.7 million in the fourth quarter of 2016, down $2.6 million, or 25%, compared to the third quarter of 2016. Annualized net charge-offs equated to 0.21% of average loans in the fourth quarter of 2016, a seven basis point improvement on a linked quarter basis. Energy loans accounted for approximately 19% of the net charge-offs incurred during the fourth quarter of 2016.
Capital Position
At December 31, 2016, the Company reported a non-GAAP tangible common equity ratio of 9.82%, up 95 basis points compared to September 30, 2016, and the preliminary Tier 1 leverage ratio was 10.86%, up 116 basis points compared to September 30, 2016. The Company's preliminary calculation of its total risk-based capital ratio at December 31, 2016, was 14.13%, up 164 basis points compared to September 30, 2016.
At December 31, 2016, book value per common share was $62.68, up $0.97 per share, or 2%, compared to September 30, 2016. Tangible book value per common share was $45.80, up $2.54 per share, or 6%, compared to September 30, 2016. Based on the closing stock price of the Company's common stock of $83.25 per share on January 26, 2017, this price equated to 1.33 times December 31, 2016 book value per common share and 1.82 times December 31, 2016 tangible book value per common share.
Cash Dividends On Common Stock. On December 13, 2016, the Company declared a quarterly cash dividend of $0.36 per common share, a 6% increase compared to the same quarter in the prior year. This common dividend level equated to an annualized dividend rate of $1.44 per common share. Based on the Company's closing common stock price on January 26, 2017, the indicated dividend yield was 1.73% per common share. The payment of dividends on the common stock is at the discretion of the Board of Directors.
Common Stock Repurchase Program. On May 4, 2016, the Board of Directors of the Company authorized the repurchase of up to 950,000 shares of the Company's common stock. The Company did not repurchase common shares under the authorized program during the fourth quarter of 2016. The Company has approximately 747,000 shares of common stock remaining that may be purchased under the currently authorized program.
Series B Preferred Stock. On August 5, 2015, the Company sold 3.2 million depositary shares, each representing a 1/400th interest in a share of non-cumulative perpetual preferred stock. The Series B preferred stock has an initial coupon equal to 6.625% for a period of 10 years, and thereafter floats at a rate of LIBOR plus 426.2 basis points. The Company raised approximately $80 million in gross proceeds from the transaction. On January 5, 2017, the Company declared a semi-annual cash dividend of $0.8281 per depositary share that is payable on February 1, 2017.
Series C Preferred Stock. On May 9, 2016, the Company sold 2.3 million depositary shares, each representing a 1/400th interest in a share of non-cumulative perpetual preferred stock. The Series C preferred stock has an initial coupon equal to 6.60% for a period of 10 years, and thereafter floats at a rate of LIBOR plus 492 basis points. The Company raised approximately $57.5 million in gross proceeds from the transaction. On December 13, 2016, the Company declared a quarterly cash dividend of $0.4125 per depositary share that is payable on February 1, 2017.
Common Stock. On December 7, 2016, the Company issued and sold 3,593,750 shares of common stock at a price of $81.50 per common share. After deducting underwriting discounts and commissions and other related expenses, net proceeds of the sale were approximately $280 million. The estimated dilutive impact of carrying the excess capital was approximately $0.03 per common share during the fourth quarter of 2016.
IBERIABANK Corporation
IBERIABANK Corporation is a financial holding company with 300 combined offices, including 200 bank branch offices and three loan production offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, and Georgia, 24 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 64 locations in 10 states. The Company has eight locations with representatives of IBERIA Wealth Advisors in four states, and one IBERIA Capital Partners L.L.C. office in New Orleans.
The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC". The Company's Series B Preferred Stock and Series C Preferred Stock trade on the NASDAQ Global Select Market under the symbols "IBKCP" and "IBKCO", respectively. The Company's common stock market capitalization was approximately $3.7 billion, based on the NASDAQ Global Select Market closing stock price on January 26, 2017.
The following 12 investment firms currently provide equity research coverage on the Company:
-- Bank of America Merrill Lynch
-- FBR & Co.
-- FIG Partners, LLC
-- Hovde Group, LLC
-- Jefferies & Co., Inc.
-- Keefe, Bruyette & Woods, Inc.
-- Piper Jaffray & Co.
-- Raymond James & Associates, Inc.
-- Robert W. Baird & Company
-- Sandler O'Neill + Partners, L.P.
-- Stephens, Inc.
-- SunTrust Robinson-Humphrey
Conference Call
In association with this earnings release, the Company will host a live conference call to discuss the financial results for the quarter just completed. The telephone conference call will be held on Friday, January 27, 2017, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 4035284. A replay of the call will be available until midnight Central Time on February 3, 2017 by dialing 1-877-344-7529. The confirmation code for the replay is 10098616. 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 "Financial Information" and "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. Non-GAAP measures in this press release include, but are not limited to, descriptions such as core, tangible, and pre-tax pre-provision. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that in management's opinion can distort period-to-period comparisons of the Company's performance. Transactions that are typically excluded from non-GAAP performance measures include realized and unrealized gains/losses on former bank owned real estate, realized gains/losses on securities, income tax gains/losses, merger-related charges and recoveries, litigation charges and recoveries, and debt repayment penalties. 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 presented in the supplemental tables at the end of this release. Please refer to the supplemental tables for these reconciliations.
Caution About Forward-Looking Statements
This press release contains "forward-looking statements," which may include forecasts of our financial results and condition, expectations for our operations and businesses, and our assumptions for those forecasts and expectations. Do not place undue reliance on forward-looking statements. Due to various factors, actual results may differ materially from our forward-looking statements. Factors that could cause our actual results to differ materially from our forward-looking statements are described under "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Risk Factors" and "Regulation and Supervision" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, and in other documents subsequently filed by the Company with the Securities and Exchange Commission, available at the SEC's website, http://www.sec.gov, and the Company's website, http://www.iberiabank.com. To the extent that statements in this press release relate to future plans, objectives, financial results or performance by the Company, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are generally identified by use of words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology.
Forward-looking statements represent management's beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. Factors that could cause or contribute to such differences include, but are not limited to: the level of market volatility, our ability to execute our growth strategy, including the availability of future bank acquisition opportunities, our ability to execute on our revenue and efficiency improvement initiatives, unanticipated losses related to the completion and integration of mergers and acquisitions, refinements to purchase accounting adjustments for acquired businesses and assets and assumed liabilities in these transactions, adjustments of fair values of acquired assets and assumed liabilities and of deferred taxes in acquisitions, actual results deviating from the Company's current estimates and assumptions of timing and amounts of cash flows, utilization of non-GAAP financial measures, credit risk of our customers, resolution of assets formerly subject to loss share agreements with the FDIC, effects of the on-going correction in residential real estate prices and levels of home sales, our ability to satisfy new capital and liquidity standards such as those imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act and those adopted by the Basel Committee on Banking Supervision and federal banking regulators, sufficiency of our allowance for loan losses, changes in interest rates, access to funding sources, reliance on the services of executive management, competition for loans, deposits and investment dollars, competition from competitors with greater financial resources than the Company, reputational risk and social factors, compliance with laws and regulations, increases in FDIC insurance assessments, geographic concentration of our markets, economic and business conditions in our markets or nationally, including the impact of volatility of oil and gas prices, rapid changes in the financial services industry, significant litigation, cyber-security risks including dependence on our operational, technological, and organizational systems and infrastructure and those of third party providers of those services, hurricanes and other adverse weather events, and valuation of intangible assets. All information is as of the date of this press release. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.
Table 1 - IBERIABANK CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
As of and For the Three Months Ended
------------------------------------
INCOME DATA: 12/31/2016 9/30/2016 % Change 12/31/2015 % Change
---------- --------- -------- ---------- --------
Net interest income $161,665 $163,417 (1.1) $161,160 0.3
Net interest income (TE) (1) 164,057 165,795 (1.0) 163,544 0.3
Total revenues 214,903 223,238 (3.7) 213,663 0.6
Provision for loan losses 5,169 12,484 (58.6) 11,711 (55.9)
Non-interest expense 151,570 138,139 9.7 138,975 9.1
Net income available to common
shareholders 44,173 44,478 (0.7) 44,407 (0.5)
PER COMMON SHARE DATA:
Earnings available to common
shareholders -basic $1.05 $1.08 (2.8) $1.08 (2.8)
Earnings available to common
shareholders -diluted 1.04 1.08 (3.7) 1.08 (3.7)
Core earnings (Non-GAAP) (2) 1.16 1.08 7.4 1.11 4.5
Book value 62.68 61.71 1.6 58.87 6.5
Tangible book value (Non-GAAP)
(2) (3) 45.80 43.26 5.9 40.35 13.5
Closing stock price 83.75 67.12 24.8 55.07 52.1
Cash dividends 0.36 0.36 - 0.34 5.9
KEY RATIOS AND OTHER DATA (6):
Net interest margin (TE) (1) 3.34% 3.53% 3.64%
Efficiency ratio 70.5 61.9 65.0
Core tangible efficiency ratio
(TE) (Non-GAAP) (1) (2) (3) 60.3 60.1 61.1
Return on average assets 0.85 0.94 0.90
Return on average common equity 6.70 7.00 7.30
Core return on average tangible
common equity (Non-GAAP) (2)(3) 10.75 10.30 11.20
Effective tax rate 22.4 33.8 29.5
Full-time equivalent employees 3,100 3,129 3,151
CAPITAL RATIOS:
Tangible common equity ratio
(Non-GAAP) (2) (3) 9.82% 8.87% 8.86%
Tangible common equity to risk-
weighted assets (3) 11.62 10.17 9.89
Tier 1 leverage ratio (4) 10.86 9.70 9.52
Common equity Tier 1 (CET 1)
(transitional) (4) 11.84 10.14 10.07
Common equity Tier 1 (CET 1)
(fully phased-in) (4) 11.77 10.07 9.96
Tier 1 capital (transitional) (4) 12.59 10.90 10.70
Total risk-based capital ratio
(4) 14.13 12.49 12.14
Common stock dividend payout
ratio 36.4 33.3 31.5
Classified assets to Tier 1
capital (7) 21.9 26.1 17.7
ASSET QUALITY RATIOS (LEGACY):
Non-performing assets to total
assets (5) 1.20% 1.33% 0.42%
Allowance for loan losses to
loans 0.83 0.88 0.84
Net charge-offs to average loans
(annualized) 0.24 0.33 0.09
Non-performing assets to total
loans and OREO (5) 1.83 1.96 0.61
(1) Fully taxable
equivalent
(TE)
calculations
include the
tax benefit
associated
with related
income
sources that
are tax-
exempt using
a rate of
35%, which
approximates
the marginal
tax rate.
(2) See Table 12
and Table 13
for GAAP to
Non-GAAP
reconciliations.
(3) Tangible
calculations
eliminate the
effect of
goodwill and
acquisition
related
intangible
assets and
the
corresponding
amortization
expense on a
tax-effected
basis where
applicable.
(4) Regulatory
capital
ratios as of
December 31,
2016 are
preliminary.
(5) Non-
performing
assets
consist of
non-accruing
loans,
accruing
loans 90 days
or more past
due and other
real estate
owned,
including
repossessed
assets.
(6) All ratios are
calculated on
an annualized
basis for the
periods
indicated.
(7) Classified
assets
include
commercial
loans rated
substandard
or worse and
non-
performing
mortgage and
consumer
loans and
include
acquired
impaired
loans
accounted for
under ASC
310-30.
Table 2 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Dollars in thousands, except per share data)
For the Three Months Ended
--------------------------
Linked Qtr Change Year/Year Change
----------------- ----------------
12/31/2016 9/30/2016 $ % 6/30/2016 3/31/2016 12/31/2015 $ %
---------- --------- --- --- --------- --------- ---------- --- ---
Interest income $180,805 $180,504 301 0.2 $178,694 $176,936 $176,651 4,154 2.4
Interest expense 19,140 17,087 2,053 12.0 15,941 15,533 15,491 3,649 23.6
------ ------ ----- ---- ------ ------ ------ ----- ----
Net interest income 161,665 163,417 (1,752) (1.1) 162,753 161,403 161,160 505 0.3
Provision for loan
losses 5,169 12,484 (7,315) (58.6) 11,866 14,905 11,711 (6,542) (55.9)
----- ------ ------ ----- ------ ------ ------ ------ -----
Net interest income
after provision for
loan losses 156,496 150,933 5,563 3.7 150,887 146,498 149,449 7,047 4.7
Mortgage income 16,115 21,807 (5,692) (26.1) 25,991 19,940 16,765 (650) (3.9)
Service charges on
deposit accounts 11,178 11,066 112 1.0 10,940 10,951 11,431 (253) (2.2)
Title revenue 5,332 6,001 (669) (11.1) 6,135 4,745 5,435 (103) (1.9)
Broker commissions 4,006 3,797 209 5.5 3,712 3,823 4,130 (124) (3.0)
ATM/debit card fee
income 3,604 3,483 121 3.5 3,650 3,503 3,569 35 1.0
Income from bank owned
life insurance 1,323 1,305 18 1.4 1,411 1,202 1,096 227 20.7
Gain on sale of
available-for-sale
securities 4 12 (8) (66.7) 1,789 196 6 (2) (33.3)
Other non-interest
income 11,676 12,350 (674) (5.5) 11,289 11,485 10,071 1,605 15.9
---- -----
Total non-interest
income 53,238 59,821 (6,583) (11.0) 64,917 55,845 52,503 735 1.4
Salaries and employee
benefits 80,811 85,028 (4,217) (5.0) 85,105 80,742 83,455 (2,644) (3.2)
Occupancy and
equipment 15,551 16,526 (975) (5.9) 16,813 16,907 16,928 (1,377) (8.1)
Loss on early
termination of loss
share agreements 17,798 - 17,798 N/M - - - 17,798 N/M
Amortization of
acquisition
intangibles 2,087 2,106 (19) (0.9) 2,109 2,113 1,795 292 16.3
Other non-interest
expense 35,323 34,479 844 2.4 35,477 37,690 36,797 (1,474) (4.0)
------ ------ --- --- ------ ------ ------ ------ ----
Total non-interest
expense 151,570 138,139 13,431 9.7 139,504 137,452 138,975 12,595 9.1
Income before income
taxes 58,164 72,615 (14,451) (19.9) 76,300 64,891 62,977 (4,813) (7.6)
Income tax expense 13,034 24,547 (11,513) (46.9) 25,490 22,122 18,570 (5,536) (29.8)
------ ------ ------- ----- ------ ------ ------ ------ -----
Net income 45,130 48,068 (2,938) (6.1) 50,810 42,769 44,407 723 1.6
Preferred stock
dividends (957) (3,590) 2,633 73.3 (854) (2,576) - (957) N/M
---- ------ ----- ---- ---- ------ --- ---- ---
Net income available
to common
shareholders $44,173 $44,478 (305) (0.7) $49,956 $40,193 $44,407 (234) (0.5)
======= ======= ==== ==== ======= ======= ======= ==== ====
Income available to
common shareholders -
basic $44,173 $44,478 (305) (0.7) $49,956 $40,193 $44,407 (234) (0.5)
Earnings allocated to
unvested restricted
stock (414) (462) 48 (10.4) (540) (460) (505) 91 (18.0)
---- ---- --- ----- ---- ---- ---- --- -----
Earnings allocated to
common shareholders $43,759 $44,016 (257) (0.6) $49,416 $39,733 $43,902 (143) (0.3)
Earnings per common
share -basic $1.05 $1.08 (0.03) (2.8) $1.21 $0.98 $1.08 (0.03) (2.8)
Earnings per common
share -diluted 1.04 1.08 (0.04) (3.7) 1.21 0.97 1.08 (0.04) (3.7)
Impact of non-core
items (Non-GAAP) (1) 0.12 - 0.12 N/M (0.03) 0.04 0.03 0.09 300.0
---- --- ---- --- ----- ---- ---- ---- -----
Earnings per share -
diluted, excluding
non-core items (Non-
GAAP) (1) $1.16 $1.08 0.08 7.4 $1.18 $1.01 $1.11 0.05 4.5
NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
Weighted average
common shares
outstanding -basic 42,109 41,052 1,057 2.6 41,232 41,186 40,996 1,113 2.7
Weighted average
common shares
outstanding -diluted 41,950 40,811 1,139 2.8 40,908 40,765 40,597 1,353 3.3
Book value shares
(period end) 44,795 41,082 3,713 9.0 41,039 41,232 41,140 3,655 8.9
(1) See Table 12 and Table 13 for GAAP to Non-GAAP
reconciliations.
N/M = not meaningful
Table 3 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Dollars in thousands, except per share data)
For the Years Ended
-------------------
12/31/2016 12/31/2015 $ Change % Change
---------- ---------- -------- --------
Interest income $716,939 $646,858 70,081 10.8
Interest expense 67,701 59,100 8,601 14.6
------ ------ ----- ----
Net interest income 649,238 587,758 61,480 10.5
Provision for loan
losses 44,424 30,908 13,516 43.7
------ ------ ------ ----
Net interest income
after provision for
loan losses 604,814 556,850 47,964 8.6
Mortgage income 83,853 80,662 3,191 4.0
Service charges on
deposit accounts 44,135 42,197 1,938 4.6
Title revenue 22,213 22,837 (624) (2.7)
Broker commissions 15,338 17,592 (2,254) (12.8)
ATM/debit card fee
income 14,240 13,989 251 1.8
Income from bank owned
life insurance 5,241 4,356 885 20.3
Gain on sale of
available-for-sale
securities 2,001 1,575 426 27.0
Other non-interest
income 46,800 37,185 9,615 25.9
------ ------ ----- ----
Total non-interest
income 233,821 220,393 13,428 6.1
Salaries and employee
benefits 331,686 322,586 9,100 2.8
Occupancy and equipment 65,797 68,541 (2,744) (4.0)
Loss on early
termination of loss
share agreements 17,798 - 17,798 N/M
Amortization of
acquisition
intangibles 8,415 7,811 604 7.7
Other non-interest
expense 142,969 171,367 (28,398) (16.6)
------- ------- ------- -----
Total non-interest
expense 566,665 570,305 (3,640) (0.6)
Income before income
taxes 271,970 206,938 65,032 31.4
Income tax expense 85,193 64,094 21,099 32.9
------ ------ ------ ----
Net income 186,777 142,844 43,933 30.8
Preferred stock
dividends (7,977) - (7,977) N/M
------ --- ------ ---
Net income available to
common shareholders $178,800 $142,844 35,956 25.2
======== ======== ====== ====
Income available to
common shareholders -
basic $178,800 $142,844 35,956 25.2
Earnings allocated to
unvested restricted
stock (1,872) (1,680) (192) 11.4
------ ------ ---- ----
Earnings allocated to
common shareholders $176,928 $141,164 35,764 25.3
======== ======== ====== ====
Earnings per common
share -basic $4.32 $3.69 0.63 17.1
Earnings per common
share -diluted 4.30 3.68 0.62 16.8
Impact of non-core
items (Non-GAAP) (1) 0.13 0.50 (0.37) (74.0)
---- ---- ----- -----
Earnings per share -
diluted, excluding
non-core items (Non-
GAAP) (1) $4.43 $4.18 0.25 6.0
NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
Weighted average common
shares outstanding -
basic 41,396 38,692 2,704 7.0
Weighted average common
shares outstanding -
diluted 41,106 38,310 2,796 7.3
Book value shares
(period end) 44,795 41,140 3,655 8.9
(1) See Table 12 and Table 13 for GAAP
to Non-GAAP reconciliations.
N/M = not meaningful
TABLE 4 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
PERIOD-END BALANCES Linked Qtr Change Year/Year Change
----------------- ----------------
ASSETS 12/31/2016 9/30/2016 $ % 6/30/2016 3/31/2016 12/31/2015 $ %
---------- --------- --- --- --------- --------- ---------- --- ---
Cash and due from
banks $295,896 $327,799 (31,903) (9.7) $288,141 $300,207 $241,650 54,246 22.4
Interest-bearing
deposits in other
banks 1,066,230 773,454 292,776 37.9 417,157 696,448 268,617 797,613 296.9
--------- ------- ------- ---- ------- ------- ------- ------- -----
Total cash and cash
equivalents 1,362,126 1,101,253 260,873 23.7 705,298 996,655 510,267 851,859 166.9
Investment
securities
available for sale 3,446,097 2,885,413 560,684 19.4 2,776,015 2,755,425 2,800,286 645,811 23.1
Investment
securities held to
maturity 89,216 90,653 (1,437) (1.6) 92,904 96,117 98,928 (9,712) (9.8)
------ ------ ------ ---- ------ ------ ------ ------ ----
Total investment
securities 3,535,313 2,976,066 559,247 18.8 2,868,919 2,851,542 2,899,214 636,099 21.9
Mortgage loans held
for sale 157,041 210,866 (53,825) (25.5) 229,653 192,545 166,247 (9,206) (5.5)
Loans, net of
unearned income 15,064,971 14,924,499 140,472 0.9 14,722,561 14,451,244 14,327,428 737,543 5.1
Allowance for loan
losses (144,719) (148,193) 3,474 (2.3) (147,452) (146,557) (138,378) (6,341) 4.6
-------- -------- ----- ---- -------- -------- -------- ------ ---
Loans, net 14,920,252 14,776,306 143,946 1.0 14,575,109 14,304,687 14,189,050 731,202 5.2
Loss share
receivable - 24,406 (24,406) (100.0) 29,224 33,564 39,878 (39,878) (100.0)
Premises and
equipment 306,373 308,932 (2,559) (0.8) 311,173 314,615 323,902 (17,529) (5.4)
Goodwill and other
intangibles 759,823 761,206 (1,383) (0.2) 763,387 768,235 765,655 (5,832) (0.8)
Other assets 618,262 629,531 (11,269) (1.8) 678,092 630,720 609,855 8,407 1.4
------- ------- ------- ---- ------- ------- ------- ----- ---
Total assets $21,659,190 $20,788,566 870,624 4.2 $20,160,855 $20,092,563 $19,504,068 2,155,122 11.0
=========== =========== ======= === =========== =========== =========== ========= ====
LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest-
bearing deposits $4,928,878 $4,787,485 141,393 3.0 $4,539,254 $4,484,024 $4,352,229 576,649 13.2
NOW accounts 3,314,281 2,904,835 409,446 14.1 2,985,284 2,960,562 2,974,176 340,105 11.4
Savings and money
market accounts 7,033,917 6,646,694 387,223 5.8 6,188,245 6,736,146 6,727,720 306,197 4.6
Certificates of
deposit 2,131,207 2,183,503 (52,296) (2.4) 2,149,244 2,079,834 2,124,623 6,584 0.3
--------- --------- ------- ---- --------- --------- --------- ----- ---
Total deposits 17,408,283 16,522,517 885,766 5.4 15,862,027 16,260,566 16,178,748 1,229,535 7.6
Short-term
borrowings 175,000 360,000 (185,000) (51.4) 477,620 195,000 110,000 65,000 59.1
Securities sold
under agreements
to repurchase 334,136 353,272 (19,136) (5.4) 288,017 303,238 216,617 117,519 54.3
Trust preferred
securities 120,110 120,110 0 - 120,110 120,110 120,110 0 -
Other long-term
debt 508,843 552,328 (43,485) (7.9) 567,326 478,814 220,337 288,506 130.9
Other liabilities 173,124 213,229 (40,105) (18.8) 208,158 186,926 159,421 13,703 8.6
------- ------- ------- ----- ------- ------- ------- ------ ---
Total liabilities 18,719,496 18,121,456 598,040 3.3 17,523,258 17,544,654 17,005,233 1,714,263 10.1
Total shareholders'
equity 2,939,694 2,667,110 272,584 10.2 2,637,597 2,547,909 2,498,835 440,859 17.6
--------- --------- ------- ---- --------- --------- --------- ------- ----
Total liabilities
and shareholders'
equity $21,659,190 $20,788,566 870,624 4.2 $20,160,855 $20,092,563 $19,504,068 2,155,122 11.0
=========== =========== ======= === =========== =========== =========== ========= ====
TABLE 4 Continued - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
AVERAGE BALANCES Linked Qtr Change Year/Year Change
----------------- ----------------
ASSETS 12/31/2016 9/30/2016 $ % 6/30/2016 3/31/2016 12/31/2015 $ %
---------- --------- --- --- --------- --------- ---------- --- ---
Cash and due from
banks $310,132 $299,445 10,687 3.6 $304,304 $292,476 $352,854 (42,722) (12.1)
Interest-bearing
deposits in other
banks 930,524 536,741 393,783 73.4 386,139 365,709 319,302 611,222 191.4
------- ------- ------- ---- ------- ------- ------- ------- -----
Total cash and cash
equivalents 1,240,656 836,186 404,470 48.4 690,443 658,185 672,156 568,500 84.6
Investment
securities
available for sale 3,192,040 2,825,030 367,010 13.0 2,823,292 2,797,320 2,829,825 362,215 12.8
Investment
securities held to
maturity 90,161 92,006 (1,845) (2.0) 94,609 97,391 100,113 (9,952) (9.9)
------ ------ ------ ---- ------ ------ ------- ------ ----
Total investment
securities 3,282,201 2,917,036 365,165 12.5 2,917,901 2,894,711 2,929,938 352,263 12.0
Mortgage loans held
for sale 226,565 219,369 7,196 3.3 211,468 160,873 169,616 56,949 33.6
Loans, net of
unearned income 14,912,350 14,802,199 110,151 0.7 14,570,945 14,354,410 14,185,150 727,200 5.1
Allowance for loan
losses (150,499) (149,101) (1,398) 0.9 (149,037) (141,393) (135,209) (15,290) 11.3
-------- -------- ------ --- -------- -------- -------- ------- ----
Loans, net 14,761,851 14,653,098 108,753 0.7 14,421,908 14,213,017 14,049,941 711,910 5.1
Loss share
receivable 20,456 27,694 (7,238) (26.1) 32,189 37,360 41,205 (20,749) (50.4)
Premises and
equipment 308,861 310,592 (1,731) (0.6) 313,862 322,086 329,604 (20,743) (6.3)
Goodwill and other
intangibles 760,003 762,196 (2,193) (0.3) 764,818 765,898 766,664 (6,661) (0.9)
Other assets 615,666 666,657 (50,991) (7.6) 651,328 609,181 592,042 23,624 4.0
Total assets $21,216,259 $20,392,828 823,431 4.0 $20,003,917 $19,661,311 $19,551,166 1,665,093 8.5
=========== =========== ======= === =========== =========== =========== ========= ===
LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest-
bearing deposits $4,869,095 $4,605,447 263,648 5.7 $4,463,928 $4,388,259 $4,459,980 409,115 9.2
NOW accounts 2,981,967 2,936,130 45,837 1.6 2,911,510 2,859,940 2,720,128 261,839 9.6
Savings and money
market accounts 6,869,614 6,359,006 510,608 8.0 6,486,242 6,598,838 6,899,090 (29,476) (0.4)
Certificates of
deposit 2,172,967 2,176,159 (3,192) (0.1) 2,117,711 2,098,032 2,213,557 (40,590) (1.8)
--------- --------- ------ ---- --------- --------- --------- ------- ----
Total deposits 16,893,643 16,076,742 816,901 5.1 15,979,391 15,945,069 16,292,755 600,888 3.7
Short-term
borrowings 260,730 430,332 (169,602) (39.4) 358,837 277,374 16,109 244,621 1,518.5
Securities sold
under agreements
to repurchase 342,953 302,119 40,834 13.5 265,465 217,296 224,255 118,698 52.9
Trust preferred
securities 120,110 120,110 - - 120,110 120,110 120,110 - -
Other long-term
debt 544,353 562,598 (18,245) (3.2) 473,195 403,393 220,913 323,440 146.4
Other liabilities 300,768 239,911 60,857 25.4 203,050 167,810 186,382 114,386 61.4
------- ------- ------ ---- ------- ------- ------- ------- ----
Total liabilities 18,462,557 17,731,812 730,745 4.1 17,400,048 17,131,052 17,060,524 1,402,033 8.2
Total shareholders'
equity 2,753,702 2,661,016 92,686 3.5 2,603,869 2,530,259 2,490,642 263,060 10.6
Total liabilities
and shareholders'
equity $21,216,259 $20,392,828 823,431 4.0 $20,003,917 $19,661,311 $19,551,166 1,665,093 8.5
=========== =========== ======= === =========== =========== =========== ========= ===
Table 5 - IBERIABANK CORPORATION
TOTAL LOANS AND ASSET QUALITY DATA
(Dollars in thousands)
Linked Qtr Change Year/Year Change
----------------- ----------------
LOANS 12/31/2016 9/30/2016 $ % 6/30/2016 3/31/2016 12/31/2015 $ %
---------- --------- --- --- --------- --------- ---------- --- ---
Commercial loans:
Real estate $6,802,266 $6,681,215 121,051 1.8 $6,472,001 $6,230,628 $6,073,511 728,755 12.0
Commercial and
Industrial 3,543,122 3,462,997 80,125 2.3 3,435,809 3,374,382 3,444,578 98,544 2.9
Energy-related
(Real Estate and
Commercial and
Industrial) (1) 561,193 599,641 (38,448) (6.4) 662,034 731,662 680,766 (119,573) (17.6)
------- ------- ---- -------- -----
Total commercial
loans 10,906,581 10,743,853 162,728 1.5 10,569,844 10,336,672 10,198,855 707,726 6.9
Residential
mortgage loans 1,267,400 1,270,530 (3,130) (0.2) 1,249,062 1,208,391 1,195,319 72,081 6.0
Consumer loans:
Home equity 2,155,926 2,151,130 4,796 0.2 2,129,812 2,091,514 2,066,167 89,759 4.3
Indirect
automobile 131,052 153,913 (22,861) (14.9) 182,223 213,179 246,298 (115,246) (46.8)
Automobile 147,662 152,972 (5,310) (3.5) 156,597 164,868 169,571 (21,909) (12.9)
Credit card 82,992 80,959 2,033 2.5 78,552 76,756 77,843 5,149 6.6
Other 373,358 371,142 2,216 0.6 356,471 359,864 373,375 (17) 0.0
------- ----- --- --- ---
Total consumer
loans 2,890,990 2,910,116 (19,126) (0.7) 2,903,655 2,906,181 2,933,254 (42,264) (1.4)
Total loans $15,064,971 $14,924,499 140,472 0.9 $14,722,561 $14,451,244 $14,327,428 737,543 5.1
=========== =========== ======= === =========== =========== =========== ======= ===
Allowance for
loan losses $(144,719) $(148,193) 3,474 (2.3) $(147,452) $(146,557) $(138,378) (6,341) 4.6
Loans, net 14,920,252 14,776,306 143,946 1.0 14,575,109 14,304,687 14,189,050 731,202 5.2
Reserve for
unfunded
commitments (11,241) (11,990) 749 (6.2) (13,826) (14,033) (14,145) 2,904 (20.5)
Allowance for
credit losses (155,960) (160,183) 4,223 (2.6) (161,278) (160,590) (152,523) (3,437) 2.3
ASSET QUALITY DATA
Non-accrual
loans (2) $228,501 $235,521 (7,020) (3.0) $101,738 $98,588 $56,349 172,152 305.5
Other real estate
owned and
foreclosed
assets 21,199 22,085 (886) (4.0) 27,220 31,411 34,131 (12,932) (37.9)
Accruing loans
more than 90
days past due
(2) 1,386 5,233 (3,847) (73.5) 751 385 915 471 51.5
Total non-
performing
assets $251,086 $262,839 (11,753) (4.5) $129,709 $130,384 $91,395 159,691 174.7
======== ======== ======= ==== ======== ======== ======= ======= =====
Loans 30-89 days
past due $28,869 $45,125 (16,256) (36.0) $50,592 $49,071 $25,176 3,693 14.7
Non-performing
assets to total
assets 1.16% 1.26% 0.64% 0.65% 0.47%
Non-performing
assets to total
loans and OREO 1.66 1.76 0.88 0.90 0.64
Allowance for
loan losses to
non-performing
loans (3) 63.0 61.6 143.9 148.1 241.6
Allowance for
loan losses to
non-performing
assets 57.6 56.4 113.7 112.4 151.4
Allowance for
loan losses to
total loans 0.96 0.99 1.00 1.01 0.97
Quarter-to-date
charge-offs $9,785 $11,500 (1,715) (14.9) $12,994 $5,560 $4,277 5,508 128.8
Quarter-to-date
recoveries (2,135) (1,277) (858) 67.2 (1,071) (1,551) (1,358) (777) 57.2
Quarter-to-date
net charge-offs $7,650 $10,223 (2,573) (25.2) $11,923 $4,009 $2,919 4,731 162.1
====== ======= ====== ===== ======= ====== ====== ===== =====
Net charge-offs
to average loans
(annualized) 0.21% 0.28% 0.33% 0.11% 0.08%
(1) For
purposes
of this
table,
energy-
related
loans
generally
include
loans with
specific
NAICS
codes that
relate to
the Oil
and Gas
E&P,
Services
or
Midstream
industries.
(2) The
allowance
for loan
losses
includes
impairment
reserves
attributable
to
acquired
impaired
loans.
(3) For
purposes
of this
table,
non-
accrual
and past
due loans
exclude
acquired
impaired
loans
accounted
for under
ASC 310-
30 that
are
currently
accruing
income.
(4) Non-
performing
loans
consist of
non-
accruing
loans and
accruing
loans 90
days or
more past
due.
Table 6 - IBERIABANK CORPORATION
LEGACY LOANS AND LEGACY ASSET QUALITY DATA
(Dollars in thousands)
Linked Qtr Change Year/Year Change
----------------- ----------------
LEGACY LOANS 12/31/2016 9/30/2016 $ % 6/30/2016 3/31/2016 12/31/2015 $ %
---------- --------- --- --- --------- --------- ---------- --- ---
Commercial loans:
Real estate $5,623,314 $5,419,483 203,831 3.8 $5,097,689 $4,771,690 $4,504,062 1,119,252 24.8
Commercial and
Industrial 3,194,796 3,101,472 93,324 3.0 3,027,590 2,926,686 2,952,102 242,694 8.2
Energy-related
(Real Estate and
Commercial and
Industrial) (1) 559,289 598,279 (38,990) (6.5) 659,510 728,778 677,177 (117,888) (17.4)
Total commercial
loans 9,377,399 9,119,234 258,165 2.8 8,784,789 8,427,154 8,133,341 1,244,058 15.3
Residential
mortgage loans 854,216 840,082 14,134 1.7 794,701 730,621 694,023 160,193 23.1
Consumer loans:
Home equity 1,783,421 1,755,295 28,126 1.6 1,695,113 1,625,812 1,575,643 207,778 13.2
Indirect
automobile 131,048 153,904 (22,856) (14.9) 182,199 213,141 246,214 (115,166) (46.8)
Automobile 138,638 143,355 (4,717) (3.3) 146,394 153,732 157,579 (18,941) (12.0)
Credit card 82,524 80,452 2,072 2.6 78,044 76,247 77,261 5,263 6.8
Other 327,678 321,048 6,630 2.1 303,609 301,990 306,459 21,219 6.9
Total consumer
loans 2,463,309 2,454,054 9,255 0.4 2,405,359 2,370,922 2,363,156 100,153 4.2
Total loans $12,694,924 $12,413,370 281,554 2.3 $11,984,849 $11,528,697 $11,190,520 1,504,404 13.4
=========== =========== ======= === =========== =========== =========== ========= ====
-
Allowance for
loan losses $(105,569) $(108,889) 3,320 (3.0) $(106,861) $(105,574) $(93,808) (11,761) 12.5
Loans, net 12,589,355 12,304,481 284,874 2.3 11,877,988 11,423,123 11,096,712 1,492,643 13.5
Reserve for
unfunded
commitments (11,241) (11,990) 749 (6.2) (13,826) (14,033) (14,145) 2,904 (20.5)
Allowance for
credit losses (116,810) (120,879) 4,069 (3.4) (120,687) (119,607) (107,953) (8,857) 8.2
ASSET QUALITY DATA
Non-accrual loans $221,543 $227,122 (5,579) (2.5) $95,096 $93,429 $50,928 170,615 335.0
Other real estate
owned and
foreclosed
assets 9,264 11,538 (2,274) (19.7) 14,478 17,662 16,491 (7,227) (43.8)
Accruing loans
more than 90
days past due 1,104 4,936 (3,832) (77.6) 353 125 624 480 76.9
Total non-
performing
assets $231,911 $243,596 (11,685) (4.8) $109,927 $111,216 $68,043 163,868 240.8
======== ======== ======= ==== ======== ======== ======= ======= =====
Loans 30-89 days
past due $24,902 $41,157 (16,255) (39.5) $45,906 $42,454 $20,109 4,793 23.8
Non-performing
assets to total
assets 1.20% 1.33% 0.63% 0.65% 0.42%
Non-performing
assets to total
loans and OREO 1.83 1.96 0.92 0.96 0.61
Allowance for
loan losses to
non-performing
loans (2) 47.4 46.9 112.0 112.9 182.0
Allowance for
loan losses to
non-performing
assets 45.5 44.7 97.2 94.9 137.9
Allowance for
loan losses to
total loans 0.83 0.88 0.89 0.92 0.84
Quarter-to-date
charge-offs $9,496 $11,201 (1,705) (15.2) $11,969 $5,389 $3,705 5,791 156.3
Quarter-to-date
recoveries (1,910) (1,102) (808) 73.3 (775) (1,247) (1,145) (765) 66.8
Quarter-to-date
net charge-offs $7,586 $10,099 (2,513) (24.9) $11,194 $4,142 $2,560 5,026 196.3
====== ======= ====== ===== ======= ====== ====== ===== =====
Net charge-offs
to average loans
(annualized) 0.24% 0.33% 0.38% 0.15% 0.09%
(1) For
purposes
of this
table,
energy-
related
loans
generally
include
loans with
specific
NAICS
codes that
relate to
the Oil
and Gas
E&P,
Services
or
Midstream
industries.
(2) Non-
performing
loans
consist of
non-
accruing
loans and
accruing
loans 90
days or
more past
due.
Table 7 - IBERIABANK CORPORATION
ACQUIRED LOANS AND ACQUIRED ASSET QUALITY DATA
(Dollars in thousands)
Linked Qtr Change Year/Year Change
----------------- ----------------
ACQUIRED LOANS 12/31/2016 9/30/2016 $ % 6/30/2016 3/31/2016 12/31/2015 $ %
---------- --------- --- --- --------- --------- ---------- --- ---
Commercial loans:
Real estate $1,178,952 $1,261,732 (82,780) (6.6) $1,374,312 $1,458,938 $1,569,449 (390,497) (24.9)
Commercial and
Industrial 348,326 361,525 (13,199) (3.7) 408,219 447,696 492,476 (144,150) (29.3)
Energy-related
(Real Estate
and Commercial
and Industrial)
(1) 1,904 1,362 542 39.8 2,524 2,884 3,589 (1,685) (46.9)
----- --- ---- ------ -----
Total commercial
loans 1,529,182 1,624,619 (95,437) (5.9) 1,785,055 1,909,518 2,065,514 (536,332) (26.0)
Residential
mortgage loans 413,184 430,448 (17,264) (4.0) 454,361 477,770 501,296 (88,112) (17.6)
Consumer loans:
Home equity 372,505 395,835 (23,330) (5.9) 434,699 465,702 490,524 (118,019) (24.1)
Indirect
automobile 4 9 (5) (55.6) 24 38 84 (80) (95.2)
Automobile 9,024 9,617 (593) (6.2) 10,203 11,136 11,992 (2,968) (24.7)
Credit card 468 507 (39) (7.7) 508 509 582 (114) (19.6)
Other 45,680 50,094 (4,414) (8.8) 52,862 57,874 66,916 (21,236) (31.7)
------ ------ ---- ------- -----
Total consumer
loans 427,681 456,062 (28,381) (6.2) 498,296 535,259 570,098 (142,417) (25.0)
Total loans $2,370,047 $2,511,129 (141,082) (5.6) $2,737,712 $2,922,547 $3,136,908 (766,861) (24.4)
========== ========== ======== ==== ========== ========== ========== ======== =====
Allowance for
loan losses (2) $(39,150) $(39,304) 154 (0.4) $(40,591) $(40,983) $(44,570) 5,420 (12.2)
Loans, net 2,330,897 2,471,825 (140,928) (5.7) 2,697,121 2,881,564 3,092,338 (761,441) (24.6)
ACQUIRED ASSET QUALITY DATA (3)
Non-accrual
loans $6,958 $8,399 (1,441) (17.2) $6,642 $5,159 $5,421 1,537 28.4
Other real
estate owned
and foreclosed
assets 11,935 10,547 1,388 13.2 12,742 13,749 17,640 (5,705) (32.3)
Accruing loans
more than 90
days past due 282 297 (15) (5.1) 398 260 291 (9) (3.1)
Total non-
performing
assets $19,175 $19,243 (68) (0.4) $19,782 $19,168 $23,352 (4,177) (17.9)
======= ======= === ==== ======= ======= ======= ====== =====
Loans 30-89 days
past due $3,967 $3,968 (1) - $4,686 $6,617 $5,067 (1,100) (21.7)
Non-performing
assets to total
assets 0.81% 0.76% 0.72% 0.65% 0.73%
Non-performing
assets to total
loans and OREO 0.81 0.76 0.72 0.65 0.74
Allowance for
loan losses to
non-performing
loans 540.7 452.0 576.6 756.3 780.3
Allowance for
loan losses to
non-performing
assets 204.2 204.3 205.2 213.8 190.9
Allowance for
loan losses to
total loans 1.65 1.57 1.48 1.40 1.42
Quarter-to-
date charge-
offs $289 $299 (10) (3.3) $1,025 $171 $572 (283) (49.5)
Quarter-to-
date recoveries (225) (175) (50) 28.6 (296) (304) (213) (12) 5.6
Quarter-to-
date net
charge-offs/
(recoveries) $64 $124 (60) (48.4) $729 $(133) $359 (295) (82.2)
=== ==== === ===== ==== ===== ==== ==== =====
Net charge-
offs/
(recoveries) to
average loans
(annualized) 0.01% 0.02% 0.10% (0.02%) 0.04%
(1) For purposes
of this
table,
energy-
related
loans
generally
include
loans with
specific
NAICS codes
that relate
to the Oil
and Gas E&P,
Services or
Midstream
industries.
(2) The allowance
for loan
losses
includes
impairment
reserves
attributable
to acquired
impaired
loans.
(3) Acquired non-
performing
loans
exclude
acquired
impaired
loans, even
if
contractually
past due or
if the
Company does
not expect
to receive
payment in
full, as the
Company is
currently
accreting
interest
income over
the expected
life of the
loans.
Table 8 - IBERIABANK CORPORATION
ENERGY-RELATED LOANS AND ASSET QUALITY DATA
(Dollars in thousands)
Linked Qtr Change Year/Year Change
----------------- ----------------
ENERGY-RELATED LOANS: (1) 12/31/2016 9/30/2016 $ % 6/30/2016 3/31/2016 12/31/2015 $ %
---------- --------- --- --- --------- --------- ---------- --- ---
E&P $290,711 $301,223 (10,512) (3.5) $328,066 $369,725 $314,381 (23,670) (7.5)
Midstream 90,120 110,821 (20,701) (18.7) 123,687 130,556 116,623 (26,503) (22.7)
Service 180,362 187,597 (7,235) (3.9) 210,281 231,381 249,762 (69,400) (27.8)
Total energy-related loans $561,193 $599,641 (38,448) (6.4) $662,034 $731,662 $680,766 (119,573) (17.6)
======== ======== ======= ==== ======== ======== ======== ======== =====
ENERGY-RELATED COMMITMENTS:
E&P $545,061 $545,383 (322) (0.1) $572,267 $677,258 $717,109 (172,048) (24.0)
Midstream 182,998 198,618 (15,620) (7.9) 201,555 206,504 204,326 (21,328) (10.4)
Service 241,740 261,450 (19,710) (7.5) 295,591 329,282 369,751 (128,011) (34.6)
Total energy-related
commitments $969,799 $1,005,451 (35,652) (3.5) $1,069,413 $1,213,044 $1,291,186 (321,387) (24.9)
======== ========== ======= ==== ========== ========== ========== ======== =====
Total loans net of unearned
income $15,064,971 $14,924,499 140,472 0.9 $14,722,561 $14,451,244 $14,327,428 737,543 5.1
Energy outstandings as a %
of total loans 3.7% 4.0% 4.5% 5.1% 4.8%
Energy commitments as a %
of total commitments 4.8% 5.1% 5.4% 6.3% 6.8%
Allowance for loan losses $(22,524) $(28,215) 5,691 (20.2) $(33,040) $(38,495) $(23,987) 1,463 (6.1)
Reserve for unfunded
commitments (1,003) (953) (50) 5.2 (2,223) (903) (2,666) 1,663 (62.4)
Allowance for credit losses (23,527) (29,168) 5,641 (19.3) (35,263) (39,398) (26,653) 3,126 (11.7)
- -
ASSET QUALITY DATA - -
Non-accrual loans $150,329 $153,620 (3,291) (2.1) $60,814 $46,223 $8,449 141,880 1,679.3
Other real estate owned and
foreclosed assets - - - - - - - - -
Accruing loans more than 90
days past due - - - - - - - - -
Total non-performing assets $150,329 $153,620 (3,291) (2.1) $60,814 $46,223 $8,449 141,880 1,679.3
======== ======== ====== ==== ======= ======= ====== ======= =======
Loans 30-89 days past due $1,526 $ - 1,526 100 $3,055 $ - $15 1,511 10,073.3
Non-performing assets to
total energy-related
loans and OREO 26.79% 25.62% 9.19% 6.32% 1.24%
Allowance for loan losses
to non-performing loans
(2) 15.0 18.4 54.3 83.3 283.9
Allowance for loan losses
to non-performing assets 15.0 18.4 54.3 83.3 283.9
Allowance for loan losses
to total energy-related
loans 4.01 4.71 4.99 5.26 3.52
Quarter-to-date charge-offs $2,321 $6,957 $7,715 $ - $ -
Quarter-to-date recoveries (840) - - - -
Quarter-to-date net
charge-offs $1,481 $6,957 $7,715 $ - $ -
====== ====== ====== ================= =================
Net charge-offs to average
loans (annualized) 1.02% 4.39% 4.44% 0.00% 0.00%
(1) For
purposes
of this
table,
energy-
related
loans
generally
include
loans with
specific
NAICS
codes that
relate to
the Oil
and Gas
E&P,
Services
or
Midstream
industries.
(2) Non-
performing
loans
consist of
non-
accruing
loans and
accruing
loans 90
days or
more past
due.
TABLE 9 - IBERIABANK CORPORATION
QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES
(Dollars in thousands)
For the Three Months Ended
--------------------------
12/31/2016 9/30/2016 Basis Point
Change
------
ASSETS Average Balance Interest Income/Expense Yield/Rate Average Balance Interest Income/Expense Yield/Rate Yield/Rate
--------------- ----------------------- ---------- --------------- ----------------------- ---------- ----------
Earning assets:
Commercial loans $10,759,264 $114,694 4.22% $10,646,874 $116,653 4.34% (12)
Residential
mortgage loans 1,267,413 14,038 4.43 1,254,665 13,718 4.37 6
Consumer loans 2,885,673 36,960 5.10 2,900,660 37,413 5.13 (3)
Total loans 14,912,350 165,692 4.41 14,802,199 167,784 4.50 (9)
Loss share
receivable 20,456 (3,539) (67.70) 27,694 (3,935) (55.61) (1,209)
Total loans and
loss share
receivable 14,932,806 162,153 4.31 14,829,893 163,849 4.39 (8)
Mortgage loans held
for sale 226,565 1,539 2.72 219,369 1,774 3.24 (52)
Investment
securities (2) 3,154,252 15,464 2.09 2,830,892 13,815 2.09 -
Other earning
assets 1,034,980 1,649 0.63 641,080 1,066 0.66 (3)
Total earning
assets 19,348,603 180,805 3.73 18,521,234 180,504 3.89 (16)
Allowance for loan
losses (150,499) (149,101)
Non-earning assets 2,018,155 2,020,695
Total assets $21,216,259 $20,392,828
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
NOW accounts $2,981,967 2,483 0.33 $2,936,130 2,313 0.31 2
Savings and money
market accounts 6,869,614 7,732 0.45 6,359,006 5,826 0.36 9
Certificates of
deposit 2,172,967 4,785 0.88 2,176,159 4,592 0.84 4
--------- ---- ----
Total interest-
bearing deposits
(3) 12,024,548 15,000 0.50 11,471,295 12,731 0.44 6
Short-term
borrowings 603,683 552 0.36 732,451 753 0.40 (4)
Long-term debt 664,463 3,588 2.11 682,708 3,603 2.06 5
------- ---- ----
Total interest-
bearing
liabilities 13,292,694 19,140 0.57 12,886,454 17,087 0.53 4
Non-interest-
bearing deposits 4,869,095 4,605,447
Non-interest-
bearing
liabilities 300,768 239,911
-------
Total liabilities 18,462,557 17,731,812
Total shareholders'
equity 2,753,702 2,661,016
Total liabilities
and shareholders'
equity $21,216,259 $20,392,828
=========== ===========
Net interest income/Net interest spread $161,665 3.16% $163,417 3.36% (20)
Tax-equivalent benefit 2,392 0.05 2,378 0.05 -
Net interest income (TE)/Net interest margin (TE) (1) $164,057 3.34% $165,795 3.53% (19)
======== ========
(1) Fully taxable
equivalent
(TE)
calculations
include the
tax benefit
associated
with related
income
sources that
are tax-
exempt using
a rate of
35%, which
approximates
the marginal
tax rate.
(2) Balances
exclude
unrealized
gain or loss
on
securities
available
for sale and
the impact
of trade
date
accounting.
(3) Total deposit
costs for
the three
months ended
December 31,
2016 and
September
30, 2016
total 0.35%
and 0.32%,
respectively.
TABLE 9 Continued - IBERIABANK CORPORATION
QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES
(Dollars in thousands)
For the Three Months Ended
--------------------------
6/30/2016 3/31/2016 12/31/2015
--------- --------- ----------
ASSETS Average Balance Interest Income/Expense Yield/Rate Average Balance Interest Income/Expense Yield/Rate Average Balance Interest Income/Expense Yield/Rate
--------------- ----------------------- ---------- --------------- ----------------------- ---------- --------------- ----------------------- ----------
Earning assets:
Commercial loans $10,458,822 $114,588 4.39% $10,250,555 $113,417 4.43% $10,062,680 $114,153 4.50%
Residential
mortgage loans 1,221,254 13,781 4.51 1,202,692 13,429 4.47 1,193,488 12,819 4.30
Consumer loans 2,890,869 37,200 5.18 2,901,163 37,145 5.15 2,928,982 36,553 4.95
------ ------ ------
Total loans 14,570,945 165,569 4.55 14,354,410 163,991 4.58 14,185,150 163,525 4.57
Loss share
receivable 32,189 (4,163) (51.16) 37,360 (4,386) (46.44) 41,205 (4,490) (42.63)
------ ------ ------
Total loans and
loss share
receivable 14,603,134 161,406 4.43 14,391,770 159,605 4.45 14,226,355 159,035 4.44
Mortgage loans held
for sale 211,468 1,850 3.50 160,873 1,401 3.48 169,616 1,422 3.35
Investment
securities (2) 2,856,805 14,663 2.18 2,866,974 15,212 2.25 2,901,388 15,149 2.21
Other earning
assets 483,597 775 0.64 453,737 718 0.64 390,571 1,045 1.06
--- --- -----
Total earning
assets 18,155,004 178,694 3.97 17,873,354 176,936 3.99 17,687,930 176,651 3.99
Allowance for loan
losses (149,037) (141,393) (135,209)
Non-earning assets 1,997,950 1,929,350 1,998,445
Total assets $20,003,917 $19,661,311 $19,551,166
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
NOW accounts $2,911,510 2,080 0.29 $2,859,940 1,940 0.27 $2,720,128 1,861 0.27
Savings and money
market accounts 6,486,242 5,527 0.34 6,598,838 5,640 0.34 6,899,090 6,172 0.35
Certificates of
deposit 2,117,711 4,309 0.82 2,098,032 4,354 0.83 2,213,557 4,727 0.85
----- ----- -----
Total interest-
bearing deposits
(3) 11,515,463 11,916 0.42 11,556,810 11,934 0.42 11,832,775 12,760 0.43
Short-term
borrowings 624,302 662 0.42 494,670 485 0.39 240,365 98 0.16
Long-term debt 593,305 3,363 2.24 523,503 3,114 2.35 341,022 2,633 3.02
----- ----- -----
Total interest-
bearing
liabilities 12,733,070 15,941 0.50 12,574,983 15,533 0.49 12,414,162 15,491 0.49
Non-interest-
bearing deposits 4,463,928 4,388,259 4,459,980
Non-interest-
bearing
liabilities 203,050 167,810 186,382
Total liabilities 17,400,048 17,131,052 17,060,524
Total shareholders'
equity 2,603,869 2,530,259 2,490,642
Total liabilities
and shareholders'
equity $20,003,917 $19,661,311 $19,551,166
=========== =========== ===========
Net interest income/Net interest spread $162,753 3.47% $161,403 3.50% $161,160 3.50%
Tax-equivalent benefit 2,332 0.05% 2,361 0.05% 2,384 0.05%
Net interest income (TE)/Net interest margin (TE) (1) $165,085 3.61% $163,764 3.64% $163,544 3.64%
======== ======== ========
(1) Fully taxable
equivalent
(TE)
calculations
include the
tax benefit
associated
with related
income
sources that
are tax-
exempt using
a rate of
35%, which
approximates
the marginal
tax rate.
(2) Balances
exclude
unrealized
gain or loss
on
securities
available
for sale and
the impact
of trade
date
accounting.
(3) Total deposit
costs for
the three
months ended
June 30,
2016, March
31, 2016 and
December 31,
2015 total
0.30%, 0.30%
and 0.31%,
respectively.
TABLE 10 - IBERIABANK CORPORATION
YEAR-TO-DATE AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES
(Dollars in thousands)
For the Years Ended
-------------------
12/31/2016 12/31/2015 Basis Point Change
---------- ---------- ------------------
ASSETS Average Balance Interest Income/Expense Yield/Rate Average Balance Interest Income/Expense Yield/Rate Yield/Rate
--------------- ----------------------- ---------- --------------- ----------------------- ---------- ----------
Earning assets:
Commercial loans $10,529,830 $459,352 4.34% $9,292,251 $411,351 4.42% (8)
Residential
mortgage loans 1,236,640 54,966 4.44 1,165,524 53,948 4.63 (19)
Consumer loans 2,894,584 148,718 5.14 2,815,554 141,667 5.03 11
--------- ------- -------
Total loans 14,661,054 663,036 4.51 13,273,329 606,966 4.57 (6)
Loss share
receivable 29,396 (16,023) (53.62) 52,494 (23,500) (44.15) (947)
------ ------- -------
Total loans and
loss share
receivable 14,690,450 647,013 4.39 13,325,823 583,466 4.38 1
Mortgage loans held
for sale 204,669 6,564 3.21 176,793 6,164 3.49 (28)
Investment
securities (2) 2,927,588 59,154 2.15 2,595,806 53,165 2.17 (2)
Other earning
assets 654,357 4,208 0.64 553,629 4,063 0.73 (9)
------- ----- -----
Total earning
assets 18,477,064 716,939 3.89 16,652,051 646,858 3.90 (1)
Allowance for loan
losses (147,520) (130,808)
Non-earning assets 1,991,690 1,881,463
Total assets $20,321,234 $18,402,706
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
NOW accounts $2,922,587 8,816 0.30 $2,620,570 6,903 0.26 4
Savings and money
market accounts 6,578,622 24,725 0.38 6,274,498 21,063 0.34 4
Certificates of
deposit 2,141,399 18,040 0.84 2,260,237 19,137 0.85 (1)
--------- ------ ------
Total interest-
bearing deposits
(3) 11,642,608 51,581 0.44 11,155,305 47,103 0.42 2
Short-term
borrowings 614,073 2,452 0.39 426,011 797 0.18 21
Long-term debt 616,309 13,668 2.18 388,220 11,200 2.85 (67)
------- ------ ------
Total interest-
bearing
liabilities 12,872,990 67,701 0.52 11,969,536 59,100 0.49 3
Non-interest-
bearing deposits 4,582,533 3,996,821
Non-interest-
bearing
liabilities 228,117 175,315
Total liabilities 17,683,640 16,141,672
Total shareholders'
equity 2,637,594 2,261,034
Total liabilities
and shareholders'
equity $20,321,234 $18,402,706
=========== ===========
Net interest income/Net interest spread $649,238 3.37% $587,758 3.41% (4)
Tax-equivalent benefit 9,463 0.05 8,604 0.05 -
Net interest income (TE)/Net interest margin (TE) (1) $658,701 3.53% $596,362 3.55% (2)
======== ========
(1) Fully taxable
equivalent
(TE)
calculations
include the
tax benefit
associated
with related
income
sources that
are tax-
exempt using
a rate of
35%, which
approximates
the marginal
tax rate.
(2) Balances
exclude
unrealized
gain or loss
on
securities
available
for sale and
the impact
of trade
date
accounting.
(3) Total deposit
costs for
the years
ended
December 30,
2016 and
2015 total
0.32% and
0.31%,
respectively
.
Table 11 - IBERIABANK CORPORATION
LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS
(Dollars in millions)
For the Three Months Ended
--------------------------
12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015
---------- --------- --------- --------- ----------
AS REPORTED (US GAAP) Income Average Balance Yield Income Average Balance Yield Income Average Balance Yield Income Average Balance Yield Income Average Balance Yield
------ --------------- ----- ------ --------------- ----- ------ --------------- ----- ------ --------------- ----- ------ --------------- -----
Legacy loans, net $125 $12,481 3.95% $123 $12,183 3.97% $118 $11,737 4.00% $115 $11,319 4.02% $109 $10,949 3.92%
Acquired loans (1) 37 2,452 5.93 41 2,647 6.10 43 2,866 6.01 45 3,073 5.84 50 3,277 5.97
Total loans $162 $14,933 4.27% $164 $14,830 4.35% $161 $14,603 4.39% $160 $14,392 4.41% $159 $14,226 4.39%
==== ======= ==== ==== ======= ==== ==== ======= ==== ==== ======= ==== ==== ======= ====
12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015
---------- --------- --------- --------- ----------
ADJUSTMENTS Income Average Balance Yield Income Average Balance Yield Income Average Balance Yield Income Average Balance Yield Income Average Balance Yield
------ --------------- ----- ------ --------------- ----- ------ --------------- ----- ------ --------------- ----- ------ --------------- -----
Legacy loans, net $ - $ - 0.00% $ - $ - 0.00% $ - $ - 0.00% $ - $ - 0.00% $ - $ - 0.00%
Acquired loans (1) (8) 73 (1.47) (9) 76 (1.49) (9) 84 (1.33) (7) 86 (1.04) (11) 87 (1.41)
Total loans $(8) $73 (0.24%) $(9) $76 (0.27%) $(9) 84 (0.26%) $(7) $86 (0.21%) $(11) $87 (0.33%)
=== === ====== === === ====== === === ====== === === ====== ==== === ======
12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015
---------- --------- --------- --------- ----------
AS ADJUSTED (CASH YIELD,
NON-GAAP) Income Average Balance Yield Income Average Balance Yield Income Average Balance Yield Income Average Balance Yield Income Average Balance Yield
------ --------------- ----- ------ --------------- ----- ------ --------------- ----- ------ --------------- ----- ------ --------------- -----
Legacy loans, net $125 $12,481 3.95% $123 $12,183 3.97% $118 $11,737 4.00% $115 $11,319 4.02% $109 $10,949 3.92%
Acquired loans (1) 29 2,525 4.46 32 2,723 4.61 34 2,950 4.68 38 3,159 4.80 39 3,364 4.56
Total loans $154 $15,006 4.03% $155 $14,906 4.08% $152 $14,687 4.13% $153 $14,478 4.20% $148 $14,313 4.06%
==== ======= ==== ==== ======= ==== ==== ======= ==== ==== ======= ==== ==== ======= ====
(1) Acquired loans include the impact of
the FDIC Indemnification Asset.
Table 12 - IBERIABANK CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
For the Three Months Ended
--------------------------
12/31/2016 9/30/2016 6/30/2016
---------- --------- ---------
Pre-tax After-tax (1) Per share (2) Pre-tax After-tax (1) Per share (2) Pre-tax After-tax (1) Per share (2)
------- ------------ ------------ ------- ------------ ------------ ------- ------------ ------------
Net income $58,164 $45,130 1.06 $72,615 $48,068 1.17 $76,300 $50,810 1.23
Preferred stock
dividends - (957) (0.02) - (3,590) (0.09) - (854) (0.02)
--- ---- ----- --- ------ ----- --- ---- -----
Income available
to common
shareholders
(GAAP) 58,164 44,173 1.04 72,615 44,478 1.08 76,300 49,956 1.21
Non-interest income adjustments:
Gain on sale of
investments and
other non-
interest income (5) (3) - (12) (8) - (1,789) (1,163) (0.03)
Non-interest expense adjustments:
Merger-related
expense - - - - - - - - -
Severance expense 188 122 - - - - 140 91 -
Impairment of
long-lived
assets, net of
(gain) loss on
sale (462) (300) (0.01) - - - (1,256) (816) (0.02)
Loss on early
termination of
loss share
agreements 17,798 11,569 0.28 - - - - - -
Other non-core
non-interest
expense 484 314 0.01 - - - 1,177 765 0.02
Total non-
interest expense
adjustments 18,008 11,705 0.28 - - - 61 40 -
Income tax
benefits - (6,836) (0.16) - - - - - -
--- ----- --- --- --- --- --- ---
Core earnings
(Non-GAAP) 76,167 49,039 1.16 72,603 44,470 1.08 74,572 48,833 1.18
Provision for loan
losses 5,169 3,360 0.08 12,484 8,115 0.20 11,866 7,712 0.19
Core pre-
provision
earnings (Non-
GAAP) $81,336 $52,399 $1.24 $85,087 $52,585 $1.28 $86,438 $56,545 $1.37
======= ======= ===== ======= ======= ===== ======= ======= =====
For the Three Months Ended
--------------------------
3/31/2016 12/31/2015
--------- ----------
Pre-tax After-tax (1) Per share (2) Pre-tax After-tax (1) Per share (2)
------- ------------ ------------ ------- ------------ ------------
Net income $64,891 $42,769 1.03 62,977 $44,407 1.08
Preferred stock
dividends - (2,576) (0.06) - - -
--- ------ ----- --- --- ---
Income available
to common
shareholders
(GAAP) 64,891 40,193 0.97 62,977 44,407 1.08
Non-interest income adjustments:
Gain on sale of
investments and
other non-
interest income (196) (127) - (157) (102) -
- - - -
Non-interest
expense
adjustments: - - - -
Merger-related
expense 3 2 - (166) (108) -
Severance expense 454 295 0.01 1,842 1,197 0.03
Impairment of
long-lived
assets, net of
(gain) loss on
sale 1,044 679 0.01 3,396 2,207 0.05
Other non-core
non-interest
expense 1,091 709 0.02 (208) (135) -
Total non-
interest expense
adjustments 2,592 1,685 0.04 4,864 3,161 0.08
Income tax
benefits - - - - (2,041) (0.05)
--- --- --- --- -----
Core earnings
(Non-GAAP) 67,287 41,751 1.01 67,684 45,425 1.11
Provision for loan
losses 14,905 9,688 0.24 11,711 7,612 0.19
Core pre-
provision
earnings (Non-
GAAP) $82,192 $51,439 $1.25 $79,395 $53,037 $1.30
======= ======= ===== ======= ======= =====
For the Years Ended
-------------------
12/31/2016 12/31/2015
---------- ----------
Pre-tax After-tax (1) Per share (2) Pre-tax After-tax (1) Per share (2)
------- ------------ ------------ ------- ------------ ------------
Net income $271,970 $186,777 $4.49 206,938 142,844 3.68
Preferred stock
dividends - (7,977) (0.19) - - -
--- ------ ----- --- --- ---
Income available
to common
shareholders
(GAAP) 271,970 178,800 4.30 206,938 142,844 3.68
Non-interest income adjustments:
Gain on sale of
investments and
other non-
interest income (2,002) (1,301) (0.03) (4,033) (2,621) (0.07)
Non-interest expense adjustments:
Merger-related
expense 3 2 - 24,074 15,861 0.41
Severance expense 782 508 0.01 2,593 1,686 0.04
Impairment of
long-lived
assets, net of
(gain) loss on
sale (674) (437) (0.01) 7,259 4,717 0.12
Loss on early
termination of
loss share
agreements 17,798 11,569 0.28 - - -
Debt prepayment - - - 1,262 820 0.02
Other non-core
non-interest
expense 2,752 1,788 0.04 1,272 827 0.02
Total non-
interest expense
adjustments 20,661 13,430 0.32 36,460 23,911 0.62
Income tax
benefits - (6,836) (0.16) - (2,041) (0.05)
Core earnings
(Non-GAAP) 290,629 184,093 4.43 239,365 162,093 4.18
Provision for loan
losses 44,424 28,875 0.71 30,908 20,090 0.52
Core pre-
provision
earnings (Non-
GAAP) $335,053 $212,968 $5.14 $270,273 $182,183 $4.70
======== ======== ===== ======== ======== =====
(1) After-tax
amounts,
excluding
preferred
stock
dividends,
are
calculated
using a tax
rate of 35%,
which
approximates
the marginal
tax rate.
(2) Diluted per
share
amounts may
not appear
to foot due
to rounding.
Table 13 - IBERIABANK CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
For the Three Months Ended
--------------------------
12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015
---------- --------- --------- --------- ----------
Net interest income
(GAAP) $161,665 $163,417 $162,753 $161,403 $161,160
Add: Effect of tax
benefit on
interest income 2,392 2,378 2,332 2,361 2,384
Net interest income
(TE) (Non-GAAP)
(1) 164,057 165,795 165,085 163,764 163,544
------- ------- ------- ------- -------
Non-interest
income (GAAP) 53,238 59,821 64,917 55,845 52,503
Add: Effect of tax
benefit on non-
interest income 713 703 760 647 590
Non-interest
income (TE) (Non-
GAAP) (1) 53,951 60,524 65,677 56,492 53,093
------ ------ ------ ------ ------
Taxable equivalent
revenues (Non-
GAAP) (1) 218,008 226,319 230,762 220,256 216,637
Securities gains
and other non-
interest income (5) (12) (1,789) (196) (157)
Core taxable
equivalent
revenues (Non-
GAAP) (1) $218,003 $226,307 $228,973 $220,060 $216,480
======== ======== ======== ======== ========
Total non-interest
expense (GAAP) $151,570 $138,139 $139,504 $137,452 $138,975
Less: Intangible
amortization
expense 2,087 2,106 2,109 2,113 1,795
-----
Tangible non-
interest expense
(Non-GAAP) (2) 149,483 136,033 137,395 135,339 137,180
------- ------- ------- ------- -------
Less: Merger-
related expense - - - 3 (166)
Severance expense 188 - 140 454 1,842
(Gain) Loss on sale
of long-lived
assets, net of
impairment (462) - (1,256) 1,044 3,396
Loss on early
termination of
loss share
agreements 17,798 - - - -
Other non-core
non-interest
expense 484 - 1,177 1,091 (208)
--- ---
Core tangible non-
interest expense
(Non-GAAP) (2) $131,475 $136,033 $137,334 $132,747 $132,316
======== ======== ======== ======== ========
Return on average
assets (GAAP) 0.85% 0.94% 1.02% 0.87% 0.90%
Effect of non-core
revenues and
expenses 0.09 0.00 (0.02) 0.03 0.02
Core return on
average assets
(Non-GAAP) 0.94% 0.94% 1.00% 0.90% 0.92%
==== ==== ==== ==== ====
Efficiency ratio
(GAAP) 70.5% 61.9% 61.3% 63.3% 65.0%
Effect of tax
benefit related to
tax-exempt income (1.0) (0.9) (0.8) (0.9) (0.8)
---- ---- ---- ---- ----
Efficiency ratio
(TE) (Non-GAAP)
(1) 69.5% 61.0% 60.5% 62.4% 64.2%
Effect of
amortization of
intangibles (1.0) (0.9) (0.9) (1.0) (0.8)
Effect of non-core
items (8.2) - 0.4 (1.1) (2.3)
Core tangible
efficiency ratio
(TE) (Non-GAAP)
(1) (2) 60.3% 60.1% 60.0% 60.3% 61.1%
==== ==== ==== ==== ====
Return on average
common equity
(GAAP) 6.70% 7.00% 8.05% 6.59% 7.30%
Effect of
intangibles (2) 3.01 3.30 3.85 3.30 3.65
Effect of non-core
revenues and
expenses 1.04 - (0.26) 0.37 0.25
Core return on
average tangible
common equity
(Non-GAAP) (2) 10.75% 10.30% 11.64% 10.26% 11.20%
===== ===== ===== ===== =====
Total shareholders'
equity (GAAP) $2,939,694 $2,667,110 $2,637,597 $2,547,909 $2,498,835
Less: Goodwill and
other intangibles 755,765 757,856 759,966 764,730 761,871
Preferred stock 132,097 132,097 132,098 76,812 76,812
Tangible common
equity (Non-GAAP)
(2) $2,051,832 $1,777,157 $1,745,533 $1,706,367 $1,660,152
========== ========== ========== ========== ==========
Total assets (GAAP) $21,659,190 $20,788,566 $20,160,855 $20,092,563 $19,504,068
Less: Goodwill and
other intangibles 755,765 757,856 759,966 764,730 761,871
Tangible assets
(Non-GAAP) (2) $20,903,425 $20,030,710 $19,400,889 $19,327,833 $18,742,197
=========== =========== =========== =========== ===========
Tangible common
equity ratio (Non-
GAAP) (2) 9.82% 8.87% 9.00% 8.83% 8.86%
==== ==== ==== ==== ====
(1) Fully taxable
equivalent
(TE)
calculations
include the
tax benefit
associated
with related
income
sources that
are tax-
exempt using
a rate of
35%, which
approximates
the marginal
tax rate.
(2) Tangible
calculations
eliminate the
effect of
goodwill and
acquisition-
related
intangibles
and the
corresponding
amortization
expense on a
tax-effected
basis where
applicable.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/iberiabank-corporation-reports-fourth-quarter-results-300397952.html
SOURCE IBERIABANK Corporation
