IBERIABANK Corporation Reports Second Quarter Results
LAFAYETTE, La., July 20, 2018 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 131-year-old IBERIABANK (www.iberiabank.com), reported financial results for the second quarter ended June 30, 2018. For the quarter, the Company reported net income available to common shareholders of $74.2 million, or $1.30 diluted earnings per common share ("EPS"). On a non-GAAP basis, EPS excluding non-core revenues and non-core expenses ("Core EPS") in the second quarter of 2018 was $1.71 per common share, compared to $1.10 in the year-ago period, an increase of 55% (refer to press release supplemental tables for a reconciliation of GAAP to non-GAAP metrics).
Daryl G. Byrd, President and Chief Executive Officer, commented, "Our strong financial performance this quarter is the result of solid franchise momentum, growth in loans and deposits, and a pickup in our fee income businesses. Building upon the client growth we have achieved, and managing expenses remain our fundamental objectives and key to successfully achieving earnings expectations for 2018 and beyond.
We are proud of our diversified franchise, and we have the right team and platforms in place to drive outstanding client growth amongst favorable economic conditions. We remain laser-focused on delivering sustainable, profitable returns for our shareholders, and we believe that our 2018 financial performance will position us to achieve or exceed our 2020 Strategic Goals," Byrd continued.
Highlights for the second quarter of 2018 and at June 30, 2018:
On a linked quarter basis, both GAAP and Core EPS significantly improved, driven by increases in loan interest income as a result of higher loan yields and a seasonal improvement in our fee income businesses in the second quarter. Merger-related expenses, branch closure expenses and an adjustment to provisional tax amounts comprised the majority of the variance between GAAP and Core EPS. Return metrics and efficiency ratios significantly improved in the current quarter primarily as a result of revenue growth.
| For the three months ended |
|||||||||||||
| GAAP |
Non-GAAP Core |
||||||||||||
| 2Q18 |
1Q18 |
2Q18 |
1Q18 |
||||||||||
| Earnings Per Common Share |
$ |
1.30 |
$ |
1.10 |
$ |
1.71 |
$ |
1.37 |
|||||
| Return on Average Assets |
1.01 |
% |
0.92 |
% |
1.32 |
% |
1.13 |
% |
|||||
| Return on Average Common Equity |
7.87 |
% |
6.79 |
% |
10.30 |
% |
8.45 |
% |
|||||
| Return on Average Tangible Common Equity |
N/A |
N/A |
16.70 |
% |
13.83 |
% |
|||||||
| Efficiency Ratio |
63.5 |
% |
67.9 |
% |
56.6 |
% |
61.1 |
% |
|||||
| Tangible Efficiency Ratio (TE) |
N/A |
N/A |
54.3 |
% |
58.8 |
% |
|||||||
- Revenue growth and cost containment relative to the linked quarter produced positive operating leverage multiples of 3.8 on a GAAP basis and 5.4 on a Core basis.
- The Company's reported and cash net interest margins improved 9 and 7 basis points on a linked quarter basis, to 3.76% and 3.49%, respectively, primarily driven by $7.4 million (or $0.10 impact to EPS after-tax, 11 basis points impact to reported net interest margin) of higher recoveries and incremental accelerated accretion on acquired loans, as well as rising short-term interest rates.
- Non-interest income in 2Q18 increased $9.4 million, or 21%, on a linked quarter basis, primarily as a result of seasonal growth in the Company's fee income businesses, including increases in mortgage income and title revenue.
- Non-interest expense increased $8.6 million on a linked quarter basis, primarily due to increased salary and employee benefits expenses and branch closure expenses. 2Q18 non-interest expense included $14.3 million in pre-tax merger-related expense ($0.20 impact to EPS after-tax), compared to $16.2 million ($0.23 impact to EPS after-tax) in 1Q18.
- Total loan growth was $369.7 million, or 1.7% (6.8% annualized rate), in 2Q18.
- Total deposits increased $459.3 million, or 2.0% (8.0% annualized rate), in 2Q18.
- Credit metrics remain stable. Net charge-offs were $11.7 million, of which $4.2 million was covered by specific reserves recorded in prior periods.
- Income tax expense was impacted by a $6.6 million (or $0.12 impact to EPS) write-down of deferred tax assets associated with the finalization of the accounting for the Sabadell acquisition and the related impact of the Tax Cuts and Jobs Act (the "Tax Act") on those adjustments.
- Integration and assimilation of both Sabadell and Gibraltar remain on track and performing in-line with original expectations.
- On May 10, 2018, the Board of Directors of the Company authorized the repurchase of up to 1,137,500 shares of the Company's common stock. During 2Q18, the Company repurchased 400,000 common shares at a weighted average price of $76.67 per common share.
| Table A - Summary Financial Results |
||||||||||||||||||
| (Dollars in thousands, except per share data) |
||||||||||||||||||
| For the Three Months Ended |
||||||||||||||||||
| 6/30/2018 |
3/31/2018 |
% Change |
6/30/2017 |
% Change |
||||||||||||||
| GAAP BASIS: |
||||||||||||||||||
| Income available to common shareholders |
$ |
74,175 |
$ |
60,023 |
23.6 |
$ |
51,069 |
45.2 |
||||||||||
| Earnings per common share - diluted |
1.30 |
1.10 |
18.2 |
0.99 |
31.3 |
|||||||||||||
| Average loans and leases, net of unearned income |
$ |
21,830,720 |
$ |
20,181,390 |
8.2 |
$ |
15,284,007 |
42.8 |
||||||||||
| Average total deposits |
23,155,871 |
21,777,634 |
6.3 |
17,160,848 |
34.9 |
|||||||||||||
| Net interest margin (TE) (1) |
3.76 |
% |
3.67 |
% |
3.71 |
% |
||||||||||||
| Total revenues (2) |
$ |
310,053 |
$ |
277,455 |
11.7 |
$ |
237,481 |
30.6 |
||||||||||
| Total non-interest expense (2) |
196,877 |
188,296 |
4.6 |
145,380 |
35.4 |
|||||||||||||
| Efficiency ratio (2) |
63.5 |
% |
67.9 |
% |
61.2 |
% |
||||||||||||
| Return on average assets |
1.01 |
0.92 |
0.96 |
|||||||||||||||
| Return on average common equity |
7.87 |
6.79 |
6.08 |
|||||||||||||||
| NON-GAAP BASIS (3): |
||||||||||||||||||
| Core revenues (2) |
$ |
310,050 |
$ |
277,514 |
11.7 |
$ |
237,422 |
30.6 |
||||||||||
| Core non-interest expense (2) |
175,445 |
169,457 |
3.5 |
139,242 |
26.0 |
|||||||||||||
| Core earnings per common share - diluted |
1.71 |
1.37 |
24.8 |
1.10 |
55.5 |
|||||||||||||
| Core tangible efficiency ratio (TE) (1) (2) (4) |
54.3 |
% |
58.8 |
% |
57.2 |
% |
||||||||||||
| Core return on average assets |
1.32 |
1.13 |
1.06 |
|||||||||||||||
| Core return on average common equity |
10.30 |
8.45 |
6.75 |
|||||||||||||||
| Core return on average tangible common equity |
16.70 |
13.83 |
8.86 |
|||||||||||||||
| Net interest margin (TE) - cash basis (1) |
3.49 |
3.42 |
3.45 |
|||||||||||||||
| (1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017. |
||||||||||||||||||
| (2) Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. The adoption resulted in a reduction of non-interest income and non-interest expense of approximately $2.1 million and had no impact on net income. |
||||||||||||||||||
| (3) See Table 9 and Table 10 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. |
Operating Results
The Company's reported and cash net interest margins increased 9 and 7 basis points on a linked quarter basis, to 3.76% and 3.49%, respectively, primarily as a result of increased recoveries and discount accretion on the acquired loan portfolio, as well as rising short-term interest rates. Absent the non-recurring items associated with the acquired loan portfolio, margin would have been essentially flat with the linked quarter, due to a combination of lower yields on loans acquired from Gibraltar and increased deposit costs.
Net interest income increased $23.2 million, or 10%, on a linked quarter basis. Average loans increased $1.6 billion, or 8%, and the associated taxable-equivalent yield increased 19 basis points. All other average earning assets decreased by $20.2 million from the linked quarter. The yield on total earning assets was 20 basis points higher at 4.46% compared to 4.26% in the linked quarter.
Average interest-bearing deposits increased $860.9 million, or 6%, and the average cost of interest-bearing deposits rose 15 basis points to 89 basis points on a linked quarter basis. Total average interest-bearing liabilities increased by $918.7 million, or 5%, while the average cost of interest-bearing liabilities rose 16 basis points to 102 basis points. The total cost of interest-bearing liabilities rose primarily due to an upward repricing of indexed deposits, promotional deposit pricing, and increases in the average rate paid on short-term and long-term FHLB advances. The total cost of funding in 2Q18 was 75 basis points, compared to 63 basis points in 1Q18.
The Company's provision for loan losses decreased 5% to $7.6 million and covered net charge-offs in 2Q18 by 65% compared to 186% in 1Q18. The overall decline in provision was mainly attributable to recoveries on acquired loans that reduced the required ALLL for that portfolio. Net charge-offs totaled $11.7 million in 2Q18, compared to $4.3 million in 1Q18, due primarily to the charge-off of one large legacy loan, which was specifically reserved for in a prior period, as well as lower legacy recoveries. Annualized net charge-offs remain at relatively low levels, equating to 21 basis points of average loans in 2Q18.
In 2Q18, non-interest income increased $9.4 million compared to 1Q18, primarily as a result of seasonal growth in the Company's fee income businesses, including an increase of $4.1 million in mortgage income and an increase of $1.8 million in title revenue. In addition, trust department income increased by $0.8 million, or 24%, over 1Q18.
Non-interest expense increased $8.6 million on a linked quarter basis, primarily due to increased salary and employee benefits expenses and branch closure expenses. During 2Q18, non-interest expense included $14.3 million in merger and conversion-related expenses, $1.8 million in compensation-related expenses, and $5.4 million in branch closure and other impairment expenses that are considered non-core items by management.
Excluding these items, core non-interest expense increased $6.0 million, or 4%, primarily driven by an increase of $1.5 million in occupancy and equipment expenses attributable to the recently acquired Gibraltar locations, an increase of $1.3 million in the accrual for mortgage loan repurchase reserves and an increase of $1.0 million in CDI amortization resulting from the full-quarter impact of the Gibraltar acquisition.
On a linked quarter basis, the efficiency ratio improved to 63.5% from 67.9%, while the non-GAAP core tangible efficiency ratio improved to 54.3% from 58.8%. The Company continues to focus on cost containment and revenue enhancement efforts to deliver positive operating leverage in 2018. Refer to Table A for a summary of financial results on both a GAAP and non-GAAP basis.
Income tax expense was impacted by a $6.6 million write-down of deferred tax assets associated with the finalization of the accounting for the Sabadell acquisition and the related adjustment to provisional amounts recorded upon enactment of the Tax Act, resulting in an effective tax rate of 28.8% for 2Q18, compared to 21.6% in 1Q18.
| Table B - Summary Financial Condition Results |
|||||||||||||||||||||
| (Dollars in thousands, except per share data) |
|||||||||||||||||||||
| As of and For the Three Months Ended |
|||||||||||||||||||||
| 6/30/2018 |
3/31/2018 |
% Change |
6/30/2017 |
% Change |
|||||||||||||||||
| PERIOD-END BALANCES: |
|||||||||||||||||||||
| Total loans and leases, net of unearned income |
$ |
22,075,783 |
$ |
21,706,090 |
1.7 |
$ |
15,556,016 |
41.9 |
|||||||||||||
| Total deposits |
23,430,458 |
22,971,192 |
2.0 |
16,853,116 |
39.0 |
||||||||||||||||
| ASSET QUALITY RATIOS: |
|||||||||||||||||||||
| Loans 30-89 days past due and still accruing as a percentage of total loans (1) |
0.20 |
% |
0.36 |
% |
0.33 |
% |
|||||||||||||||
| Loans 90 days or more past due and still accruing as a percentage of total loans (1) |
0.04 |
0.04 |
0.01 |
||||||||||||||||||
| Non-performing assets to total assets (1)(2) |
0.54 |
0.64 |
0.91 |
||||||||||||||||||
| Classified assets to total assets (3) |
1.26 |
1.40 |
1.78 |
||||||||||||||||||
| CAPITAL RATIOS: |
|||||||||||||||||||||
| Tangible common equity ratio (Non-GAAP) (4) (5) |
8.56 |
% |
8.66 |
% |
12.45 |
% |
|||||||||||||||
| Tier 1 leverage ratio (6) |
9.55 |
9.97 |
13.19 |
||||||||||||||||||
| Total risk-based capital ratio (6) |
12.37 |
12.48 |
16.74 |
||||||||||||||||||
| PER COMMON SHARE DATA: |
|||||||||||||||||||||
| Book value |
$ |
67.06 |
$ |
66.38 |
1.0 |
$ |
66.08 |
1.5 |
|||||||||||||
| Tangible book value (Non-GAAP) (4) (5) |
43.75 |
42.91 |
2.0 |
51.33 |
(14.8) |
||||||||||||||||
| Closing stock price |
75.80 |
78.00 |
(2.8) |
81.50 |
(7.0) |
||||||||||||||||
| Cash dividends |
0.38 |
0.38 |
— |
0.36 |
5.6 |
||||||||||||||||
| (1) |
Past due and non-accrual loan amounts 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. |
||||||||||||||||||||
| (2) |
Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets. Refer to Table 5 for further detail. |
||||||||||||||||||||
| (3) |
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. Classified assets were $379 million, $412 million and $387 million at June 30, 2018, March 31, 2018, and June 30, 2017, respectively. |
||||||||||||||||||||
| (4) |
See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations. |
||||||||||||||||||||
| (5) |
Tangible calculations eliminate the effect of goodwill and acquisition-related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable. |
||||||||||||||||||||
| (6) |
Regulatory capital ratios as of June 30, 2018 are preliminary. |
||||||||||||||||||||
Loans and Other Assets
Total loans increased $369.7 million, or 2%, to $22.1 billion at June 30, 2018. Period-end loan growth during 2Q18 was strongest in the Energy Group (reserve-based lending), the Corporate Asset Finance division (equipment financing business), and the New Orleans, Birmingham and Atlanta markets. The Company believes it is well-positioned for diversified loan growth based on our strategic presence in the South Florida, Atlanta and Texas markets, as well as other significant MSAs in the Southeastern United States.
| Table C - Period-End Loans |
|||||||||||||||||||||||||||||
| (Dollars in thousands) |
|||||||||||||||||||||||||||||
| As of and For the Three Months Ended |
|||||||||||||||||||||||||||||
| Linked Qtr Change |
Year/Year Change |
Mix |
|||||||||||||||||||||||||||
| 6/30/2018 |
3/31/2018 |
6/30/2017 |
$ |
% |
Annualized |
$ |
% |
6/30/2018 |
3/31/2018 |
||||||||||||||||||||
| Legacy loans: |
|||||||||||||||||||||||||||||
| Commercial(1) |
$ |
11,500,907 |
$ |
11,094,464 |
$ |
10,055,791 |
406,443 |
3.7 |
14.7 |
% |
1,445,116 |
14.4 |
73.7 |
% |
74.4 |
% |
|||||||||||||
| Residential mortgage |
1,534,294 |
1,280,580 |
970,961 |
253,714 |
19.8 |
79.5 |
% |
563,333 |
58.0 |
9.8 |
% |
8.6 |
% |
||||||||||||||||
| Consumer |
2,574,834 |
2,538,878 |
2,466,658 |
35,956 |
1.4 |
5.7 |
% |
108,176 |
4.4 |
16.5 |
% |
17.0 |
% |
||||||||||||||||
| Total legacy loans |
15,610,035 |
14,913,922 |
13,493,410 |
696,113 |
4.7 |
18.7 |
% |
2,116,625 |
15.7 |
100.0 |
% |
100.0 |
% |
||||||||||||||||
| Acquired loans: |
|||||||||||||||||||||||||||||
| Balance at beginning of period |
6,792,168 |
5,595,030 |
2,208,758 |
1,197,138 |
21.4 |
4,583,410 |
207.5 |
||||||||||||||||||||||
| Loans acquired during the period |
— |
1,465,319 |
— |
(1,465,319) |
N/M |
— |
— |
||||||||||||||||||||||
| Net paydown activity |
(326,420) |
(268,181) |
(146,152) |
(58,239) |
21.7 |
(180,268) |
123.3 |
||||||||||||||||||||||
| Total acquired loans |
6,465,748 |
6,792,168 |
2,062,606 |
(326,420) |
(4.8) |
4,403,142 |
213.5 |
||||||||||||||||||||||
| Total loans |
$ |
22,075,783 |
$ |
21,706,090 |
$ |
15,556,016 |
369,693 |
1.7 |
6,519,767 |
41.9 |
|||||||||||||||||||
| (1) Includes equipment financing leases. |
|||||||||||||||||||||||||||||
| N/M= not meaningful |
On an average balance and linked quarter basis, the investment portfolio increased $80.9 million, or 2%, in 2Q18, to $4.9 billion, mainly due to purchases of additional investment securities, partially offset by unfavorable market valuation on available-for-sale securities. Approximately 95% of the Company's investment portfolio is in available-for-sale securities, which experience unrealized losses as interest rates rise. On a period-end basis, the investment portfolio equated to $4.9 billion, or 16% of total assets, at June 30, 2018. The investment portfolio had an effective duration of 3.9 years at June 30, 2018, down from 4.2 years at March 31, 2018, and a $151.4 million unrealized loss at June 30, 2018, up from $129.9 million at March 31, 2018. The average yield on investment securities increased 4 basis points to 2.42% in 2Q18. The Company holds in its investment portfolio primarily government agency securities. Municipal securities comprised 9% of total investments at June 30, 2018.
Deposits and Funding
Total deposits increased $459.3 million, or 2%, to $23.4 billion at June 30, 2018. Deposit growth during 2Q18 was strongest in the Energy Group (reserve-based lending), the Dade, Florida market, and the Virtual Bank division (digital banking).
| Table D - Period-End Deposits |
||||||||||||||||||||||||||||
| (Dollars in thousands) |
||||||||||||||||||||||||||||
| Linked Qtr Change |
Year/Year Change |
Mix |
||||||||||||||||||||||||||
| 6/30/2018 |
3/31/2018 |
6/30/2017 |
$ |
% |
Annualized |
$ |
% |
6/30/2018 |
3/31/2018 |
|||||||||||||||||||
| Non-interest-bearing |
$ |
6,814,441 |
$ |
6,595,495 |
$ |
5,020,195 |
218,946 |
3.3 |
13.2 |
% |
1,794,246 |
35.7 |
29.1 |
% |
28.7 |
% |
||||||||||||
| NOW accounts |
4,453,152 |
4,500,181 |
3,089,482 |
(47,029) |
(1.0) |
(4.0) |
% |
1,363,670 |
44.1 |
19.0 |
% |
19.6 |
% |
|||||||||||||||
| Money market accounts |
8,467,906 |
8,271,969 |
6,017,654 |
195,937 |
2.4 |
9.6 |
% |
2,450,252 |
40.7 |
36.1 |
% |
36.0 |
% |
|||||||||||||||
| Savings accounts |
850,425 |
874,741 |
797,859 |
(24,316) |
(2.8) |
(11.2) |
% |
52,566 |
6.6 |
3.6 |
% |
3.8 |
% |
|||||||||||||||
| Time deposits |
2,844,534 |
2,728,806 |
1,927,926 |
115,728 |
4.2 |
16.8 |
% |
916,608 |
47.5 |
12.2 |
% |
11.9 |
% |
|||||||||||||||
| Total deposits |
$ |
23,430,458 |
$ |
22,971,192 |
$ |
16,853,116 |
459,266 |
2.0 |
8.0 |
% |
6,577,342 |
39.0 |
100.0 |
% |
100.0 |
% |
||||||||||||
Asset Quality
Non-performing assets ("NPAs") to total assets were 54 basis points in 2Q18, compared to 64 basis points in 1Q18 and 91 basis points in 2Q17, a 41% year-over-year decrease. Accruing loans past due 30 to 89 days equated to 0.20% of total loans at June 30, 2018, compared to 0.36% at March 31, 2018.
Net charge-offs totaled $11.7 million in 2Q18, compared to $4.3 million in 1Q18, due primarily to the charge-off of one large legacy loan in 2Q18, which was specifically reserved for in a prior period, compared to one large legacy loan recovery in 1Q18. Annualized net charge-offs equated to 21 basis points of average loans in 2Q18, a 12 basis points increase on a linked quarter basis, but remain at historically low levels.
Refer to Table 5 - Loans and Asset Quality Data for further information.
Capital Position
At June 30, 2018, the Company reported a non-GAAP tangible common equity ratio of 8.56%, down 10 basis points compared to March 31, 2018, and the preliminary Tier 1 leverage ratio was 9.55%, down 42 basis points compared to March 31, 2018. The Company's preliminary calculation of its total risk-based capital ratio at June 30, 2018, was 12.37%, down 11 basis points compared to March 31, 2018.
At June 30, 2018, book value per common share was $67.06, up $0.68 per share, compared to March 31, 2018. Tangible book value per common share was $43.75, up $0.84 per share, compared to March 31, 2018. Based on the closing stock price of the Company's common stock of $78.50 per share on July 19, 2018, this price equated to 1.17 times June 30, 2018 book value per common share and 1.79 times June 30, 2018 tangible book value per common share.
Dividends On Capital Stock. The declaration of dividends is at the discretion of the Board of Directors. The following details the recent dividend declarations:
Common Stock. On June 19, 2018, the Company declared a quarterly cash dividend of $0.38 per common share, consistent with the common dividend declared in March 2018. The dividend is payable on July 27, 2018, to shareholders of record as of June 29, 2018.
Preferred Stock. On June 19, 2018, the Company declared a quarterly cash dividend of $0.4125 per depositary share of Series C Preferred Stock that is payable on August 1, 2018. On July 6, 2018, the Company declared a semi-annual cash dividend of $0.8281 per depositary share of Series B Preferred Stock that is payable on August 1, 2018.
Common Stock Repurchase Program. On May 10, 2018, the Board of Directors of the Company authorized the repurchase of up to 1,137,500 shares of the Company's common stock. This repurchase authorization equates to approximately 2% of total shares outstanding. Stock repurchases under this program will be made from time to time, on the open market or in privately negotiated transactions, at the discretion of the management of the Company. The timing of these repurchases will depend on market conditions and other requirements. The Company currently anticipates the share repurchase program will extend over a two-year time frame. During 2Q18, the Company repurchased 400,000 common shares, at a weighted average price of $76.67 per common share, of which 335,000 were repurchased under a prior Board-authorized plan. At June 30, 2018, there were approximately 1,073,500 remaining shares that may be repurchased under the plan authorized by the Board on May 10, 2018.
IBERIABANK Corporation
IBERIABANK Corporation is a regional financial holding company with offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, South Carolina, North Carolina, and New York offering commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, mortgage, and title insurance services.
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 also trade on the NASDAQ Global Select Market under the symbols "IBKCP" and "IBKCO", respectively. The Company's common stock market capitalization was approximately $4.4 billion, based on the NASDAQ Global Select Market closing stock price on July 19, 2018.
The following 10 investment firms currently provide equity research coverage on the Company:
- Bank of America Merrill Lynch
- FIG Partners, LLC
- Hovde Group, LLC
- Jefferies & Co., Inc.
- Keefe, Bruyette & Woods, Inc.
- Piper Jaffray & Co.
- Raymond James & Associates, Inc.
- 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, July 20, 2018, beginning at 8:00 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 2301786. A replay of the call will be available until midnight Central Time on July 27, 2018 by dialing 1-877-344-7529. The confirmation code for the replay is 10121508. 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, 2017, 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. 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: |
6/30/2018 |
3/31/2018 |
% Change |
6/30/2017 |
% Change |
||||||||||||||||
| Net interest income |
$ |
256,113 |
$ |
232,889 |
10.0 |
$ |
183,643 |
39.5 |
|||||||||||||
| Net interest income (TE) (1) |
257,562 |
234,353 |
9.9 |
186,131 |
38.4 |
||||||||||||||||
| Total revenues (2) |
310,053 |
277,455 |
11.7 |
237,481 |
30.6 |
||||||||||||||||
| Provision for loan losses |
7,595 |
7,986 |
(4.9) |
12,050 |
(37.0) |
||||||||||||||||
| Non-interest expense (2) |
196,877 |
188,296 |
4.6 |
145,380 |
35.4 |
||||||||||||||||
| Net income available to common shareholders |
74,175 |
60,023 |
23.6 |
51,069 |
45.2 |
||||||||||||||||
| PER COMMON SHARE DATA: |
|||||||||||||||||||||
| Earnings available to common shareholders - basic |
$ |
1.31 |
$ |
1.11 |
18.0 |
$ |
1.00 |
31.0 |
|||||||||||||
| Earnings available to common shareholders - diluted |
1.30 |
1.10 |
18.2 |
0.99 |
31.3 |
||||||||||||||||
| Core earnings (Non-GAAP) (3) |
1.71 |
1.37 |
24.8 |
1.10 |
55.5 |
||||||||||||||||
| Book value |
67.06 |
66.38 |
1.0 |
66.08 |
1.5 |
||||||||||||||||
| Tangible book value (Non-GAAP) (3) (4) |
43.75 |
42.91 |
2.0 |
51.33 |
(14.8) |
||||||||||||||||
| Closing stock price |
75.80 |
78.00 |
(2.8) |
81.50 |
(7.0) |
||||||||||||||||
| Cash dividends |
0.38 |
0.38 |
— |
0.36 |
5.6 |
||||||||||||||||
| KEY RATIOS AND OTHER DATA (7): |
|||||||||||||||||||||
| Net interest margin (TE) (1) |
3.76 |
% |
3.67 |
% |
3.71 |
% |
|||||||||||||||
| Efficiency ratio (2) |
63.5 |
67.9 |
61.2 |
||||||||||||||||||
| Core tangible efficiency ratio (TE) (Non-GAAP) (1) (2) (3) (4) |
54.3 |
58.8 |
57.2 |
||||||||||||||||||
| Return on average assets |
1.01 |
0.92 |
0.96 |
||||||||||||||||||
| Return on average common equity |
7.87 |
6.79 |
6.08 |
||||||||||||||||||
| Core return on average tangible common equity (Non-GAAP) (3)(4) |
16.70 |
13.83 |
8.86 |
||||||||||||||||||
| Effective tax rate |
28.8 |
21.6 |
35.0 |
||||||||||||||||||
| Full-time equivalent employees |
3,543 |
3,726 |
3,190 |
||||||||||||||||||
| CAPITAL RATIOS: |
|||||||||||||||||||||
| Tangible common equity ratio (Non-GAAP) (3) (4) |
8.56 |
% |
8.66 |
% |
12.45 |
% |
|||||||||||||||
| Tangible common equity to risk-weighted assets (4) |
10.18 |
10.27 |
14.32 |
||||||||||||||||||
| Tier 1 leverage ratio (5) |
9.55 |
9.97 |
13.19 |
||||||||||||||||||
| Common equity Tier 1 (CET 1) ratio (5) |
10.72 |
10.77 |
14.52 |
||||||||||||||||||
| Tier 1 capital ratio (5) |
11.27 |
11.32 |
15.24 |
||||||||||||||||||
| Total risk-based capital ratio (5) |
12.37 |
12.48 |
16.74 |
||||||||||||||||||
| Common stock dividend payout ratio |
28.9 |
36.0 |
36.2 |
||||||||||||||||||
| Classified assets to Tier 1 capital (8) |
13.9 |
15.3 |
13.9 |
||||||||||||||||||
| ASSET QUALITY RATIOS: |
|||||||||||||||||||||
| Non-performing assets to total assets (6) |
0.54 |
% |
0.64 |
% |
0.91 |
% |
|||||||||||||||
| ALLL to loans and leases |
0.62 |
0.67 |
0.94 |
||||||||||||||||||
| Net charge-offs to average loans (annualized) |
0.21 |
0.09 |
0.29 |
||||||||||||||||||
| Non-performing assets to total loans and OREO (6) |
0.74 |
0.87 |
1.27 |
||||||||||||||||||
| (1) |
Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017. |
||||||||||||||||||||
| (2) |
Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. The adoption resulted in a reduction of non-interest income and non-interest expense of approximately $2.1 million and had no impact on net income. |
||||||||||||||||||||
| (3) |
See Table 9 and Table 10 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 June 30, 2018 are preliminary. |
||||||||||||||||||||
| (6) |
Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets. For purposes of this table, past due and non-accrual loan amounts 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. |
||||||||||||||||||||
| (7) |
All ratios are calculated on an annualized basis for the periods indicated. |
||||||||||||||||||||
| (8) |
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 |
||||||||||||||||||||||||||||
| 6/30/2018 |
3/31/2018 |
$ |
% |
12/31/2017 |
9/30/2017 |
6/30/2017 |
$ |
% |
|||||||||||||||||||||
| Interest income |
$ |
303,823 |
$ |
270,543 |
33,280 |
12.3 |
$ |
269,703 |
$ |
246,972 |
$ |
204,575 |
99,248 |
48.5 |
|||||||||||||||
| Interest expense |
47,710 |
37,654 |
10,056 |
26.7 |
34,201 |
30,089 |
20,932 |
26,778 |
127.9 |
||||||||||||||||||||
| Net interest income |
256,113 |
232,889 |
23,224 |
10.0 |
235,502 |
216,883 |
183,643 |
72,470 |
39.5 |
||||||||||||||||||||
| Provision for loan losses |
7,595 |
7,986 |
(391) |
(4.9) |
14,393 |
18,514 |
12,050 |
(4,455) |
(37.0) |
||||||||||||||||||||
| Net interest income after provision for loan losses |
248,518 |
224,903 |
23,615 |
10.5 |
221,109 |
198,369 |
171,593 |
76,925 |
44.8 |
||||||||||||||||||||
| Mortgage income |
13,721 |
9,595 |
4,126 |
43.0 |
13,675 |
16,050 |
19,730 |
(6,009) |
(30.5) |
||||||||||||||||||||
| Service charges on deposit accounts |
12,950 |
12,908 |
42 |
0.3 |
12,581 |
12,534 |
11,410 |
1,540 |
13.5 |
||||||||||||||||||||
| Title revenue |
6,846 |
5,027 |
1,819 |
36.2 |
5,398 |
5,643 |
6,190 |
656 |
10.6 |
||||||||||||||||||||
| Broker commissions(1) |
2,396 |
2,221 |
175 |
7.9 |
1,958 |
2,094 |
2,562 |
(166) |
(6.5) |
||||||||||||||||||||
| ATM/debit card fee income(1) |
2,925 |
2,633 |
292 |
11.1 |
2,583 |
2,486 |
2,646 |
279 |
10.5 |
||||||||||||||||||||
| Income from bank owned life insurance |
1,261 |
1,282 |
(21) |
(1.6) |
1,267 |
1,263 |
1,241 |
20 |
1.6 |
||||||||||||||||||||
| Gain (loss) on sale of available-for-sale securities |
3 |
(59) |
62 |
105.1 |
35 |
(242) |
59 |
(56) |
(94.9) |
||||||||||||||||||||
| Trust department income |
4,243 |
3,426 |
817 |
23.8 |
3,081 |
2,686 |
2,026 |
2,217 |
109.4 |
||||||||||||||||||||
| Other non-interest income(1) |
9,595 |
7,533 |
2,062 |
27.4 |
11,764 |
8,329 |
7,974 |
1,621 |
20.3 |
||||||||||||||||||||
| Total non-interest income(1) |
53,940 |
44,566 |
9,374 |
21.0 |
52,342 |
50,843 |
53,838 |
102 |
0.2 |
||||||||||||||||||||
| Salaries and employee benefits |
107,445 |
104,586 |
2,859 |
2.7 |
104,387 |
106,970 |
86,317 |
21,128 |
24.5 |
||||||||||||||||||||
| Occupancy and equipment |
19,931 |
20,047 |
(116) |
(0.6) |
19,211 |
19,139 |
16,292 |
3,639 |
22.3 |
||||||||||||||||||||
| Amortization of acquisition intangibles |
6,111 |
5,102 |
1,009 |
19.8 |
4,642 |
4,527 |
1,651 |
4,460 |
270.1 |
||||||||||||||||||||
| Data processing(1) |
9,309 |
12,393 |
(3,084) |
(24.9) |
11,416 |
12,300 |
6,713 |
2,596 |
38.7 |
||||||||||||||||||||
| Professional services |
7,160 |
7,391 |
(231) |
(3.1) |
9,441 |
22,550 |
11,219 |
(4,059) |
(36.2) |
||||||||||||||||||||
| Credit and other loan related expense |
5,190 |
4,618 |
572 |
12.4 |
3,170 |
7,532 |
3,780 |
1,410 |
37.3 |
||||||||||||||||||||
| Other non-interest expense(1) |
41,731 |
34,159 |
7,572 |
22.2 |
29,798 |
27,744 |
19,408 |
22,323 |
115.0 |
||||||||||||||||||||
| Total non-interest expense(1) |
196,877 |
188,296 |
8,581 |
4.6 |
182,065 |
200,762 |
145,380 |
51,497 |
35.4 |
||||||||||||||||||||
| Income before income taxes |
105,581 |
81,173 |
24,408 |
30.1 |
91,386 |
48,450 |
80,051 |
25,530 |
31.9 |
||||||||||||||||||||
| Income tax expense |
30,457 |
17,552 |
12,905 |
73.5 |
81,108 |
18,806 |
28,033 |
2,424 |
8.6 |
||||||||||||||||||||
| Net income |
75,124 |
63,621 |
11,503 |
18.1 |
10,278 |
29,644 |
52,018 |
23,106 |
44.4 |
||||||||||||||||||||
| Less: Preferred stock dividends |
949 |
3,598 |
(2,649) |
(73.6) |
949 |
3,598 |
949 |
— |
— |
||||||||||||||||||||
| Net income available to common shareholders |
$ |
74,175 |
$ |
60,023 |
14,152 |
23.6 |
$ |
9,329 |
$ |
26,046 |
$ |
51,069 |
23,106 |
45.2 |
|||||||||||||||
| Income available to common shareholders - basic |
$ |
74,175 |
$ |
60,023 |
14,152 |
23.6 |
$ |
9,329 |
$ |
26,046 |
$ |
51,069 |
23,106 |
45.2 |
|||||||||||||||
| Less: Earnings allocated to unvested restricted stock |
767 |
639 |
128 |
20.0 |
101 |
283 |
361 |
406 |
112.5 |
||||||||||||||||||||
| Earnings allocated to common shareholders |
$ |
73,408 |
$ |
59,384 |
14,024 |
23.6 |
$ |
9,228 |
$ |
25,763 |
$ |
50,708 |
22,700 |
44.8 |
|||||||||||||||
| Earnings per common share - basic |
$ |
1.31 |
$ |
1.11 |
0.20 |
18.0 |
$ |
0.17 |
$ |
0.49 |
$ |
1.00 |
0.31 |
31.0 |
|||||||||||||||
| Earnings per common share - diluted |
1.30 |
1.10 |
0.20 |
18.2 |
0.17 |
0.49 |
0.99 |
0.31 |
31.3 |
||||||||||||||||||||
| Impact of non-core items (Non-GAAP) (2) |
0.41 |
0.27 |
0.14 |
51.9 |
1.16 |
0.51 |
0.11 |
0.30 |
272.7 |
||||||||||||||||||||
| Earnings per share - diluted, excluding non-core items (Non-GAAP) (2) |
$ |
1.71 |
$ |
1.37 |
0.34 |
24.8 |
$ |
1.33 |
$ |
1.00 |
$ |
1.10 |
0.61 |
55.5 |
|||||||||||||||
| NUMBER OF COMMON SHARES OUTSTANDING (in thousands) |
|||||||||||||||||||||||||||||
| Weighted average common shares outstanding - basic |
55,931 |
53,616 |
2,315 |
4.3 |
53,287 |
52,424 |
50,630 |
5,301 |
10.5 |
||||||||||||||||||||
| Weighted average common shares outstanding - diluted |
56,287 |
53,967 |
2,320 |
4.3 |
53,621 |
52,770 |
50,984 |
5,303 |
10.4 |
||||||||||||||||||||
| Book value shares (period end) |
56,390 |
56,779 |
(389) |
(0.7) |
53,872 |
53,864 |
51,015 |
5,375 |
10.5 |
||||||||||||||||||||
| (1) Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. On average, the adoption resulted in a reduction of non-interest income and non-interest expense of approximately $2.3 million on a quarterly basis, and had no impact on net income. |
|||||||||||||||||||||||||||||
| (2) See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations. |
|||||||||||||||||||||||||||||
| Table 3 - IBERIABANK CORPORATION |
||||||||||||
| CONDENSED CONSOLIDATED INCOME STATEMENTS |
||||||||||||
| (Dollars in thousands, except per share data) |
||||||||||||
| For the Six Months Ended |
||||||||||||
| Change |
||||||||||||
| 6/30/2018 |
6/30/2017 |
$ |
% |
|||||||||
| Interest income |
$ |
574,366 |
$ |
397,108 |
177,258 |
44.6 |
||||||
| Interest expense |
85,364 |
40,647 |
44,717 |
110.0 |
||||||||
| Net interest income |
489,002 |
356,461 |
132,541 |
37.2 |
||||||||
| Provision for loan losses |
15,581 |
18,204 |
(2,623) |
(14.4) |
||||||||
| Net interest income after provision for loan losses |
473,421 |
338,257 |
135,164 |
40.0 |
||||||||
| Mortgage income |
23,316 |
33,845 |
(10,529) |
(31.1) |
||||||||
| Service charges on deposit accounts |
25,858 |
22,563 |
3,295 |
14.6 |
||||||||
| Title revenue |
11,873 |
10,931 |
942 |
8.6 |
||||||||
| Broker commissions (1) |
4,617 |
5,109 |
(492) |
(9.6) |
||||||||
| ATM/debit card fee income (1) |
5,558 |
5,129 |
429 |
8.4 |
||||||||
| Income from bank owned life insurance |
2,543 |
2,552 |
(9) |
(0.4) |
||||||||
| (Loss) gain on sale of available-for-sale securities |
(56) |
59 |
(115) |
(194.9) |
||||||||
| Trust department income |
7,669 |
3,939 |
3,730 |
94.7 |
||||||||
| Other non-interest income (1) |
17,128 |
14,835 |
2,293 |
15.5 |
||||||||
| Total non-interest income (1) |
98,506 |
98,962 |
(456) |
(0.5) |
||||||||
| Salaries and employee benefits |
212,031 |
168,170 |
43,861 |
26.1 |
||||||||
| Occupancy and equipment |
39,978 |
32,313 |
7,665 |
23.7 |
||||||||
| Amortization of acquisition intangibles |
11,213 |
3,421 |
7,792 |
227.8 |
||||||||
| Data processing (1) |
21,702 |
13,074 |
8,628 |
66.0 |
||||||||
| Professional services |
14,551 |
16,553 |
(2,002) |
(12.1) |
||||||||
| Credit and other loan related expense |
9,808 |
8,306 |
1,502 |
18.1 |
||||||||
| Other non-interest expense (1) |
75,890 |
42,339 |
33,551 |
79.2 |
||||||||
| Total non-interest expense (1) |
385,173 |
284,176 |
100,997 |
35.5 |
||||||||
| Income before income taxes |
186,754 |
153,043 |
33,711 |
22.0 |
||||||||
| Income tax expense |
48,009 |
50,552 |
(2,543) |
(5.0) |
||||||||
| Net income |
138,745 |
102,491 |
36,254 |
35.4 |
||||||||
| Less: Preferred stock dividends |
4,547 |
4,548 |
(1) |
— |
||||||||
| Net income available to common shareholders |
$ |
134,198 |
$ |
97,943 |
36,255 |
37.0 |
||||||
| Income available to common shareholders - basic |
$ |
134,198 |
$ |
97,943 |
36,255 |
37.0 |
||||||
| Less: Earnings allocated to unvested restricted stock |
1,409 |
707 |
702 |
99.3 |
||||||||
| Earnings allocated to common shareholders |
$ |
132,789 |
$ |
97,236 |
35,553 |
36.6 |
||||||
| Earnings per common share - basic |
$ |
2.42 |
$ |
2.01 |
0.41 |
20.4 |
||||||
| Earnings per common share - diluted |
2.41 |
1.99 |
0.42 |
21.1 |
||||||||
| Impact of non-core items (Non-GAAP) (2) |
0.68 |
0.14 |
0.54 |
385.7 |
||||||||
| Earnings per share - diluted, excluding non-core items (Non-GAAP) (2) |
$ |
3.09 |
$ |
2.13 |
0.96 |
45.1 |
||||||
| NUMBER OF COMMON SHARES OUTSTANDING (in thousands) |
||||||||||||
| Weighted average common shares outstanding - basic |
54,780 |
48,389 |
6,391 |
13.2 |
||||||||
| Weighted average common shares outstanding - diluted |
55,133 |
48,751 |
6,382 |
13.1 |
||||||||
| Book value shares (period end) |
56,390 |
51,015 |
5,375 |
10.5 |
||||||||
| (1) Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. The adoption resulted in a reduction of non-interest income and non-interest expense of approximately $4.4 million and had no impact on net income. |
||||||||||||
| (2) See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations. |
||||||||||||
| TABLE 4 - IBERIABANK CORPORATION |
|||||||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||||||||||||||||||||||||||
| (Dollars in thousands) |
|||||||||||||||||||||||||||||||
| PERIOD-END BALANCES |
Linked Qtr Change |
Year/Year Change |
|||||||||||||||||||||||||||||
| ASSETS |
6/30/2018 |
3/31/2018 |
$ |
% |
12/31/2017 |
9/30/2017 |
6/30/2017 |
$ |
% |
||||||||||||||||||||||
| Cash and due from banks |
$ |
299,268 |
$ |
253,527 |
45,741 |
18.0 |
$ |
319,156 |
$ |
298,173 |
$ |
301,910 |
(2,642) |
(0.9) |
|||||||||||||||||
| Interest-bearing deposits in other banks |
428,120 |
310,565 |
117,555 |
37.9 |
306,568 |
583,043 |
167,450 |
260,670 |
155.7 |
||||||||||||||||||||||
| Total cash and cash equivalents |
727,388 |
564,092 |
163,296 |
28.9 |
625,724 |
881,216 |
469,360 |
258,028 |
55.0 |
||||||||||||||||||||||
| Investment securities available for sale |
4,650,915 |
4,542,486 |
108,429 |
2.4 |
4,590,062 |
4,736,339 |
4,009,299 |
641,616 |
16.0 |
||||||||||||||||||||||
| Investment securities held to maturity |
221,030 |
224,241 |
(3,211) |
(1.4) |
227,318 |
175,906 |
84,517 |
136,513 |
161.5 |
||||||||||||||||||||||
| Total investment securities |
4,871,945 |
4,766,727 |
105,218 |
2.2 |
4,817,380 |
4,912,245 |
4,093,816 |
778,129 |
19.0 |
||||||||||||||||||||||
| Mortgage loans held for sale |
78,843 |
110,348 |
(31,505) |
(28.6) |
134,916 |
141,218 |
140,959 |
(62,116) |
(44.1) |
||||||||||||||||||||||
| Loans and leases, net of unearned income |
22,075,783 |
21,706,090 |
369,693 |
1.7 |
20,078,181 |
19,795,085 |
15,556,016 |
6,519,767 |
41.9 |
||||||||||||||||||||||
| Allowance for loan and lease losses |
(136,576) |
(144,527) |
7,951 |
(5.5) |
(140,891) |
(136,628) |
(146,225) |
9,649 |
(6.6) |
||||||||||||||||||||||
| Loans and leases, net |
21,939,207 |
21,561,563 |
377,644 |
1.8 |
19,937,290 |
19,658,457 |
15,409,791 |
6,529,416 |
42.4 |
||||||||||||||||||||||
| Premises and equipment, net |
326,213 |
329,454 |
(3,241) |
(1.0) |
331,413 |
330,800 |
318,167 |
8,046 |
2.5 |
||||||||||||||||||||||
| Goodwill and other intangible assets |
1,320,664 |
1,338,573 |
(17,909) |
(1.3) |
1,277,464 |
1,281,479 |
757,025 |
563,639 |
74.5 |
||||||||||||||||||||||
| Other assets |
861,902 |
801,880 |
60,022 |
7.5 |
779,942 |
771,220 |
601,609 |
260,293 |
43.3 |
||||||||||||||||||||||
| Total assets |
$ |
30,126,162 |
$ |
29,472,637 |
653,525 |
2.2 |
$ |
27,904,129 |
$ |
27,976,635 |
$ |
21,790,727 |
8,335,435 |
38.3 |
|||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||||||||||||||||
| Non-interest-bearing deposits |
$ |
6,814,441 |
$ |
6,595,495 |
218,946 |
3.3 |
$ |
6,209,925 |
$ |
5,963,943 |
$ |
5,020,195 |
1,794,246 |
35.7 |
|||||||||||||||||
| NOW accounts |
4,453,152 |
4,500,181 |
(47,029) |
(1.0) |
4,348,939 |
3,547,761 |
3,089,482 |
1,363,670 |
44.1 |
||||||||||||||||||||||
| Savings and money market accounts |
9,318,331 |
9,146,710 |
171,621 |
1.9 |
8,520,365 |
9,165,417 |
6,815,513 |
2,502,818 |
36.7 |
||||||||||||||||||||||
| Certificates of deposit |
2,844,534 |
2,728,806 |
115,728 |
4.2 |
2,387,488 |
2,657,150 |
1,927,926 |
916,608 |
47.5 |
||||||||||||||||||||||
| Total deposits |
23,430,458 |
22,971,192 |
459,266 |
2.0 |
21,466,717 |
21,334,271 |
16,853,116 |
6,577,342 |
39.0 |
||||||||||||||||||||||
| Short-term borrowings |
595,000 |
375,000 |
220,000 |
58.7 |
475,000 |
975,008 |
250,000 |
345,000 |
138.0 |
||||||||||||||||||||||
| Securities sold under agreements to repurchase |
459,213 |
525,496 |
(66,283) |
(12.6) |
516,297 |
548,696 |
333,935 |
125,278 |
37.5 |
||||||||||||||||||||||
| Trust preferred securities |
120,110 |
120,110 |
— |
— |
120,110 |
120,110 |
120,110 |
— |
— |
||||||||||||||||||||||
| Other long-term debt |
1,318,504 |
1,329,192 |
(10,688) |
(0.8) |
1,375,725 |
1,007,474 |
547,133 |
771,371 |
141.0 |
||||||||||||||||||||||
| Other liabilities |
289,468 |
250,740 |
38,728 |
15.4 |
253,489 |
264,302 |
183,191 |
106,277 |
58.0 |
||||||||||||||||||||||
| Total liabilities |
26,212,753 |
25,571,730 |
641,023 |
2.5 |
24,207,338 |
24,249,861 |
18,287,485 |
7,925,268 |
43.3 |
||||||||||||||||||||||
| Total shareholders' equity |
3,913,409 |
3,900,907 |
12,502 |
0.3 |
3,696,791 |
3,726,774 |
3,503,242 |
410,167 |
11.7 |
||||||||||||||||||||||
| Total liabilities and shareholders' equity |
$ |
30,126,162 |
$ |
29,472,637 |
653,525 |
2.2 |
$ |
27,904,129 |
$ |
27,976,635 |
$ |
21,790,727 |
8,335,435 |
38.3 |
|||||||||||||||||
| TABLE 4 Continued - IBERIABANK CORPORATION |
|||||||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||||||||||||||||||||||||||
| (Dollars in thousands) |
|||||||||||||||||||||||||||||||
| AVERAGE BALANCES |
Linked Qtr Change |
Year/Year Change |
|||||||||||||||||||||||||||||
| ASSETS |
6/30/2018 |
3/31/2018 |
$ |
% |
12/31/2017 |
9/30/2017 |
6/30/2017 |
$ |
% |
||||||||||||||||||||||
| Cash and due from banks |
$ |
296,907 |
$ |
308,319 |
(11,412) |
(3.7) |
$ |
307,328 |
$ |
277,968 |
$ |
277,047 |
19,860 |
7.2 |
|||||||||||||||||
| Interest-bearing deposits in other banks |
392,906 |
486,298 |
(93,392) |
(19.2) |
538,733 |
615,445 |
555,431 |
(162,525) |
(29.3) |
||||||||||||||||||||||
| Total cash and cash equivalents |
689,813 |
794,617 |
(104,804) |
(13.2) |
846,061 |
893,413 |
832,478 |
(142,665) |
(17.1) |
||||||||||||||||||||||
| Investment securities available for sale |
4,629,177 |
4,544,836 |
84,341 |
1.9 |
4,674,496 |
4,593,798 |
3,970,021 |
659,156 |
16.6 |
||||||||||||||||||||||
| Investment securities held to maturity |
222,764 |
226,229 |
(3,465) |
(1.5) |
191,067 |
114,895 |
85,516 |
137,248 |
160.5 |
||||||||||||||||||||||
| Total investment securities |
4,851,941 |
4,771,065 |
80,876 |
1.7 |
4,865,563 |
4,708,693 |
4,055,537 |
796,404 |
19.6 |
||||||||||||||||||||||
| Mortgage loans held for sale |
72,917 |
109,027 |
(36,110) |
(33.1) |
126,216 |
132,309 |
145,274 |
(72,357) |
(49.8) |
||||||||||||||||||||||
| Loans and leases, net of unearned income |
21,830,720 |
20,181,390 |
1,649,330 |
8.2 |
19,941,500 |
18,341,154 |
15,284,007 |
6,546,713 |
42.8 |
||||||||||||||||||||||
| Allowance for loan and lease losses |
(145,565) |
(144,295) |
(1,270) |
0.9 |
(138,927) |
(147,046) |
(146,448) |
883 |
(0.6) |
||||||||||||||||||||||
| Loans and leases, net |
21,685,155 |
20,037,095 |
1,648,060 |
8.2 |
19,802,573 |
18,194,108 |
15,137,559 |
6,547,596 |
43.3 |
||||||||||||||||||||||
| Premises and equipment, net |
327,686 |
331,640 |
(3,954) |
(1.2) |
329,957 |
327,917 |
309,622 |
18,064 |
5.8 |
||||||||||||||||||||||
| Goodwill and other intangible assets |
1,338,420 |
1,281,598 |
56,822 |
4.4 |
1,277,293 |
1,047,355 |
757,528 |
580,892 |
76.7 |
||||||||||||||||||||||
| Other assets |
804,920 |
807,177 |
(2,257) |
(0.3) |
787,400 |
793,126 |
605,539 |
199,381 |
32.9 |
||||||||||||||||||||||
| Total assets |
$ |
29,770,852 |
$ |
28,132,219 |
1,638,633 |
5.8 |
$ |
28,035,063 |
$ |
26,096,921 |
$ |
21,843,537 |
7,927,315 |
36.3 |
|||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||||||||||||||||
| Non-interest-bearing deposits |
$ |
6,795,878 |
$ |
6,278,507 |
517,371 |
8.2 |
$ |
6,176,347 |
$ |
5,601,071 |
$ |
4,992,598 |
1,803,280 |
36.1 |
|||||||||||||||||
| NOW accounts |
4,494,064 |
4,363,557 |
130,507 |
3.0 |
3,987,908 |
3,203,657 |
3,124,243 |
1,369,821 |
43.8 |
||||||||||||||||||||||
| Savings and money market accounts |
9,146,302 |
8,664,085 |
482,217 |
5.6 |
8,769,464 |
8,566,873 |
7,079,773 |
2,066,529 |
29.2 |
||||||||||||||||||||||
| Certificates of deposit |
2,719,627 |
2,471,485 |
248,142 |
10.0 |
2,444,403 |
2,413,727 |
1,964,234 |
755,393 |
38.5 |
||||||||||||||||||||||
| Total deposits |
23,155,871 |
21,777,634 |
1,378,237 |
6.3 |
21,378,122 |
19,785,328 |
17,160,848 |
5,995,023 |
34.9 |
||||||||||||||||||||||
| Short-term borrowings |
609,965 |
506,056 |
103,909 |
20.5 |
729,111 |
1,180,165 |
38,320 |
571,645 |
1,491.8 |
||||||||||||||||||||||
| Securities sold under agreements to repurchase |
427,508 |
477,862 |
(50,354) |
(10.5) |
494,757 |
439,077 |
314,090 |
113,418 |
36.1 |
||||||||||||||||||||||
| Trust preferred securities |
120,110 |
120,110 |
— |
— |
120,110 |
120,110 |
120,110 |
— |
— |
||||||||||||||||||||||
| Other long-term debt |
1,261,515 |
1,257,213 |
4,302 |
0.3 |
1,300,114 |
622,655 |
508,522 |
752,993 |
148.1 |
||||||||||||||||||||||
| Other liabilities |
281,820 |
275,869 |
5,951 |
2.2 |
264,790 |
273,163 |
200,673 |
81,147 |
40.4 |
||||||||||||||||||||||
| Total liabilities |
25,856,789 |
24,414,744 |
1,442,045 |
5.9 |
24,287,004 |
22,420,498 |
18,342,563 |
7,514,226 |
41.0 |
||||||||||||||||||||||
| Total shareholders' equity |
3,914,063 |
3,717,475 |
196,588 |
5.3 |
3,748,059 |
3,676,423 |
3,500,974 |
413,089 |
11.8 |
||||||||||||||||||||||
| Total liabilities and shareholders' equity |
$ |
29,770,852 |
$ |
28,132,219 |
1,638,633 |
5.8 |
$ |
28,035,063 |
$ |
26,096,921 |
$ |
21,843,537 |
7,927,315 |
36.3 |
|||||||||||||||||
| Table 5 - IBERIABANK CORPORATION |
|||||||||||||||||||||||||||||||
| LOANS AND ASSET QUALITY DATA |
|||||||||||||||||||||||||||||||
| (Dollars in thousands) |
|||||||||||||||||||||||||||||||
| Linked Qtr Change |
Year/Year Change |
||||||||||||||||||||||||||||||
| LOANS |
6/30/2018 |
3/31/2018 |
$ |
% |
12/31/2017 |
9/30/2017 |
6/30/2017 |
$ |
% |
||||||||||||||||||||||
| Commercial loans and leases: |
|||||||||||||||||||||||||||||||
| Real estate- construction |
$ |
1,183,367 |
$ |
1,199,625 |
(16,258) |
(1.4) |
$ |
1,240,396 |
$ |
1,298,282 |
$ |
1,100,504 |
82,863 |
7.5 |
|||||||||||||||||
| Real estate- owner-occupied (1) |
2,641,824 |
2,612,244 |
29,580 |
1.1 |
2,529,885 |
2,448,826 |
2,242,275 |
399,549 |
17.8 |
||||||||||||||||||||||
| Real estate- non-owner occupied |
5,467,113 |
5,437,082 |
30,031 |
0.6 |
5,167,949 |
5,020,778 |
3,839,777 |
1,627,336 |
42.4 |
||||||||||||||||||||||
| Commercial and industrial (6) |
5,512,416 |
5,325,682 |
186,734 |
3.5 |
5,135,067 |
5,016,437 |
4,195,096 |
1,317,320 |
31.4 |
||||||||||||||||||||||
| Total commercial loans and leases |
14,804,720 |
14,574,633 |
230,087 |
1.6 |
14,073,297 |
13,784,323 |
11,377,652 |
3,427,068 |
30.1 |
||||||||||||||||||||||
| Residential mortgage loans |
4,124,538 |
3,971,067 |
153,471 |
3.9 |
3,056,352 |
3,024,970 |
1,346,467 |
2,778,071 |
206.3 |
||||||||||||||||||||||
| Consumer loans: |
|||||||||||||||||||||||||||||||
| Home equity |
2,410,617 |
2,421,186 |
(10,569) |
(0.4) |
2,292,275 |
2,320,233 |
2,158,948 |
251,669 |
11.7 |
||||||||||||||||||||||
| Other |
735,908 |
739,204 |
(3,296) |
(0.4) |
656,257 |
665,559 |
672,949 |
62,959 |
9.4 |
||||||||||||||||||||||
| Total consumer loans |
3,146,525 |
3,160,390 |
(13,865) |
(0.4) |
2,948,532 |
2,985,792 |
2,831,897 |
314,628 |
11.1 |
||||||||||||||||||||||
| Total loans and leases |
$ |
22,075,783 |
$ |
21,706,090 |
369,693 |
1.7 |
$ |
20,078,181 |
$ |
19,795,085 |
$ |
15,556,016 |
6,519,767 |
41.9 |
|||||||||||||||||
| Allowance for loan and lease losses (2) |
$ |
(136,576) |
$ |
(144,527) |
7,951 |
(5.5) |
$ |
(140,891) |
$ |
(136,628) |
$ |
(146,225) |
9,649 |
(6.6) |
|||||||||||||||||
| Loans and leases, net |
21,939,207 |
21,561,563 |
377,644 |
1.8 |
19,937,290 |
19,658,457 |
15,409,791 |
6,529,416 |
42.4 |
||||||||||||||||||||||
| Reserve for unfunded commitments |
(14,433) |
(13,432) |
(1,001) |
7.5 |
(13,208) |
(21,032) |
(10,462) |
(3,971) |
38.0 |
||||||||||||||||||||||
| Allowance for credit losses |
(151,009) |
(157,959) |
6,950 |
(4.4) |
(154,099) |
(157,660) |
(156,687) |
5,678 |
(3.6) |
||||||||||||||||||||||
| ASSET QUALITY DATA |
|||||||||||||||||||||||||||||||
| Non-accrual loans (3) |
$ |
131,155 |
$ |
153,975 |
(22,820) |
(14.8) |
$ |
145,388 |
$ |
145,491 |
$ |
177,942 |
(46,787) |
(26.3) |
|||||||||||||||||
| Other real estate owned and foreclosed assets |
22,267 |
27,117 |
(4,850) |
(17.9) |
26,533 |
28,338 |
19,718 |
2,549 |
12.9 |
||||||||||||||||||||||
| Accruing loans more than 90 days past due (3) |
9,314 |
8,288 |
1,026 |
12.4 |
6,900 |
2,190 |
802 |
8,512 |
1,061.3 |
||||||||||||||||||||||
| Total non-performing assets (3)(4) |
$ |
162,736 |
$ |
189,380 |
(26,644) |
(14.1) |
$ |
178,821 |
$ |
176,019 |
$ |
198,462 |
(35,726) |
(18.0) |
|||||||||||||||||
| Loans 30-89 days past due (3) |
$ |
43,159 |
$ |
78,293 |
(35,134) |
(44.9) |
$ |
61,717 |
$ |
58,327 |
$ |
50,871 |
(7,712) |
(15.2) |
|||||||||||||||||
| Non-performing assets to total assets (3)(4) |
0.54 |
% |
0.64 |
% |
0.64 |
% |
0.63 |
% |
0.91 |
% |
|||||||||||||||||||||
| Non-performing assets to total loans and OREO (3)(4) |
0.74 |
0.87 |
0.89 |
0.89 |
1.27 |
||||||||||||||||||||||||||
| ALLL to non-performing loans (3)(5) |
97.2 |
89.1 |
92.5 |
92.5 |
81.8 |
||||||||||||||||||||||||||
| ALLL to non-performing assets (3)(4) |
83.9 |
76.3 |
78.8 |
77.6 |
73.7 |
||||||||||||||||||||||||||
| ALLL to total loans |
0.62 |
0.67 |
0.70 |
0.69 |
0.94 |
||||||||||||||||||||||||||
| Quarter-to-date charge-offs |
$ |
13,618 |
$ |
9,116 |
4,502 |
49.4 |
$ |
12,526 |
$ |
30,460 |
$ |
12,189 |
1,429 |
11.7 |
|||||||||||||||||
| Quarter-to-date recoveries |
(1,968) |
(4,813) |
2,845 |
(59.1) |
(2,425) |
(1,644) |
(1,289) |
(679) |
52.7 |
||||||||||||||||||||||
| Quarter-to-date net charge-offs |
$ |
11,650 |
$ |
4,303 |
7,347 |
170.7 |
$ |
10,101 |
$ |
28,816 |
$ |
10,900 |
750 |
6.9 |
|||||||||||||||||
| Net charge-offs to average loans (annualized) |
0.21 |
% |
0.09 |
% |
0.20 |
% |
0.62 |
% |
0.29 |
% |
|||||||||||||||||||||
| (1) Real estate- owner-occupied is defined as loans with a "1E1" Call Report Code (loans secured by owner-occupied non-farm non-residential properties). |
|||||||||||||||||||||||||||||||
| (2) The allowance for loan and lease losses includes impairment reserves attributable to acquired impaired loans. |
|||||||||||||||||||||||||||||||
| (3) For purposes of this table, past due and non-accrual loan amounts 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. |
|||||||||||||||||||||||||||||||
| (4) Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets. |
|||||||||||||||||||||||||||||||
| (5) Non-performing loans consist of non-accruing loans and accruing loans 90 days or more past due. |
|||||||||||||||||||||||||||||||
| (6) Includes equipment financing leases. |
| TABLE 6 - IBERIABANK CORPORATION |
|||||||||||||||||||
| QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES |
|||||||||||||||||||
| (Dollars in thousands) |
|||||||||||||||||||
| For the Three Months Ended |
|||||||||||||||||||
| 6/30/2018 |
3/31/2018 |
Basis Point |
|||||||||||||||||
| ASSETS |
Average |
Interest |
Yield/Rate |
Average |
Interest |
Yield/Rate |
Yield/Rate |
||||||||||||
| Earning assets: |
|||||||||||||||||||
| Commercial loans and leases |
$ |
14,631,985 |
$ |
178,830 |
4.92 |
% |
$ |
14,087,635 |
$ |
164,660 |
4.76 |
% |
16 |
||||||
| Residential mortgage loans |
4,041,259 |
47,215 |
4.67 |
3,151,775 |
34,494 |
4.38 |
29 |
||||||||||||
| Consumer loans |
3,157,476 |
44,431 |
5.64 |
2,941,980 |
38,915 |
5.36 |
28 |
||||||||||||
| Total loans and leases |
21,830,720 |
270,476 |
4.98 |
20,181,390 |
238,069 |
4.79 |
19 |
||||||||||||
| Mortgage loans held for sale |
72,917 |
836 |
4.59 |
109,027 |
1,154 |
4.23 |
36 |
||||||||||||
| Investment securities (2) |
4,958,769 |
29,325 |
2.42 |
4,843,448 |
28,094 |
2.38 |
4 |
||||||||||||
| Other earning assets |
580,477 |
3,186 |
2.20 |
679,902 |
3,226 |
1.92 |
28 |
||||||||||||
| Total earning assets |
27,442,883 |
303,823 |
4.46 |
25,813,767 |
270,543 |
4.26 |
20 |
||||||||||||
| Allowance for loan and lease losses |
(145,565) |
(144,295) |
|||||||||||||||||
| Non-earning assets |
2,473,534 |
2,462,747 |
|||||||||||||||||
| Total assets |
$ |
29,770,852 |
$ |
28,132,219 |
|||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||||
| Interest-bearing liabilities: |
|||||||||||||||||||
| NOW accounts |
$ |
4,494,064 |
$ |
8,620 |
0.77 |
% |
$ |
4,363,557 |
$ |
7,081 |
0.66 |
% |
11 |
||||||
| Savings and money market accounts |
9,146,302 |
18,434 |
0.81 |
8,664,085 |
14,579 |
0.68 |
13 |
||||||||||||
| Certificates of deposit |
2,719,627 |
9,105 |
1.34 |
2,471,485 |
6,584 |
1.08 |
26 |
||||||||||||
| Total interest-bearing deposits (3) |
16,359,993 |
36,159 |
0.89 |
15,499,127 |
28,244 |
0.74 |
15 |
||||||||||||
| Short-term borrowings |
1,037,473 |
3,327 |
1.29 |
983,918 |
2,524 |
1.04 |
25 |
||||||||||||
| Long-term debt |
1,381,625 |
8,224 |
2.39 |
1,377,323 |
6,886 |
2.03 |
36 |
||||||||||||
| Total interest-bearing liabilities |
18,779,091 |
47,710 |
1.02 |
17,860,368 |
37,654 |
0.86 |
16 |
||||||||||||
| Non-interest-bearing deposits |
6,795,878 |
6,278,507 |
|||||||||||||||||
| Non-interest-bearing liabilities |
281,820 |
275,869 |
|||||||||||||||||
| Total liabilities |
25,856,789 |
24,414,744 |
|||||||||||||||||
| Total shareholders' equity |
3,914,063 |
3,717,475 |
|||||||||||||||||
| Total liabilities and shareholders' equity |
$ |
29,770,852 |
$ |
28,132,219 |
|||||||||||||||
| Net interest income/Net interest spread |
$ |
256,113 |
3.44 |
% |
$ |
232,889 |
3.40 |
% |
4 |
||||||||||
| Taxable equivalent benefit |
1,449 |
0.02 |
1,464 |
0.02 |
— |
||||||||||||||
| Net interest income (TE)/Net interest margin (TE) (1) |
$ |
257,562 |
3.76 |
% |
$ |
234,353 |
3.67 |
% |
9 |
||||||||||
| (1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017. |
|||||||||||||||||||
| (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, 2018 and March 31, 2018 were 0.63% and 0.53%, respectively. |
| TABLE 6 Continued - IBERIABANK CORPORATION |
|||||||||||||||||||||||||||
| QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES |
|||||||||||||||||||||||||||
| (Dollars in thousands) |
|||||||||||||||||||||||||||
| For the Three Months Ended |
|||||||||||||||||||||||||||
| 12/31/2017 |
9/30/2017 |
6/30/2017 |
|||||||||||||||||||||||||
| ASSETS |
Average |
Interest |
Yield/Rate |
Average |
Interest |
Yield/Rate |
Average |
Interest |
Yield/Rate |
||||||||||||||||||
| Earning assets: |
|||||||||||||||||||||||||||
| Commercial loans and leases |
$ |
13,964,340 |
$ |
163,974 |
4.70 |
% |
$ |
12,951,243 |
$ |
146,003 |
4.52 |
% |
$ |
11,136,842 |
$ |
127,301 |
4.64 |
% |
|||||||||
| Residential mortgage loans |
3,049,947 |
35,007 |
4.59 |
2,464,348 |
28,645 |
4.65 |
1,319,207 |
14,345 |
4.35 |
||||||||||||||||||
| Consumer loans |
2,927,213 |
38,836 |
5.26 |
2,925,563 |
42,240 |
5.73 |
2,827,958 |
37,620 |
5.34 |
||||||||||||||||||
| Total loans and leases |
19,941,500 |
237,817 |
4.77 |
18,341,154 |
216,888 |
4.73 |
15,284,007 |
179,266 |
4.74 |
||||||||||||||||||
| Mortgage loans held for sale |
126,216 |
1,251 |
3.96 |
132,309 |
1,209 |
3.66 |
145,274 |
1,248 |
3.44 |
||||||||||||||||||
| Investment securities (2) |
4,893,538 |
27,714 |
2.37 |
4,709,526 |
26,246 |
2.32 |
4,029,491 |
22,306 |
2.32 |
||||||||||||||||||
| Other earning assets |
725,042 |
2,921 |
1.60 |
789,223 |
2,629 |
1.32 |
650,083 |
1,755 |
1.08 |
||||||||||||||||||
| Total earning assets |
25,686,296 |
269,703 |
4.22 |
23,972,212 |
246,972 |
4.14 |
20,108,855 |
204,575 |
4.13 |
||||||||||||||||||
| Allowance for loan and lease losses |
(138,927) |
(147,046) |
(146,448) |
||||||||||||||||||||||||
| Non-earning assets |
2,487,694 |
2,271,755 |
1,881,130 |
||||||||||||||||||||||||
| Total assets |
$ |
28,035,063 |
$ |
26,096,921 |
$ |
21,843,537 |
|||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||||||||||||
| Interest-bearing liabilities: |
|||||||||||||||||||||||||||
| NOW accounts |
$ |
3,987,908 |
$ |
5,404 |
0.54 |
% |
$ |
3,203,657 |
$ |
4,384 |
0.54 |
% |
$ |
3,124,243 |
$ |
3,507 |
0.45 |
% |
|||||||||
| Savings and money market accounts |
8,769,464 |
13,345 |
0.60 |
8,566,873 |
11,650 |
0.54 |
7,079,773 |
9,029 |
0.51 |
||||||||||||||||||
| Certificates of deposit |
2,444,403 |
6,115 |
0.99 |
2,413,727 |
5,766 |
0.95 |
1,964,234 |
4,576 |
0.93 |
||||||||||||||||||
| Total interest-bearing deposits (3) |
15,201,775 |
24,864 |
0.65 |
14,184,257 |
21,800 |
0.61 |
12,168,250 |
17,112 |
0.56 |
||||||||||||||||||
| Short-term borrowings |
1,223,868 |
2,901 |
0.94 |
1,619,242 |
4,152 |
1.02 |
352,410 |
227 |
0.26 |
||||||||||||||||||
| Long-term debt |
1,420,224 |
6,436 |
1.80 |
742,765 |
4,137 |
2.21 |
628,632 |
3,593 |
2.29 |
||||||||||||||||||
| Total interest-bearing liabilities |
17,845,867 |
34,201 |
0.76 |
16,546,264 |
30,089 |
0.72 |
13,149,292 |
20,932 |
0.64 |
||||||||||||||||||
| Non-interest-bearing deposits |
6,176,347 |
5,601,071 |
4,992,598 |
||||||||||||||||||||||||
| Non-interest-bearing liabilities |
264,790 |
273,163 |
200,673 |
||||||||||||||||||||||||
| Total liabilities |
24,287,004 |
22,420,498 |
18,342,563 |
||||||||||||||||||||||||
| Total shareholders' equity |
3,748,059 |
3,676,423 |
3,500,974 |
||||||||||||||||||||||||
| Total liabilities and shareholders' equity |
$ |
28,035,063 |
$ |
26,096,921 |
$ |
21,843,537 |
|||||||||||||||||||||
| Net interest income/Net interest spread |
$ |
235,502 |
3.46 |
% |
$ |
216,883 |
3.42 |
% |
$ |
183,643 |
3.49 |
% |
|||||||||||||||
| Taxable equivalent benefit |
2,812 |
0.04 |
2,585 |
0.04 |
2,488 |
0.05 |
|||||||||||||||||||||
| Net interest income (TE)/Net interest margin (TE) (1) |
$ |
238,314 |
3.69 |
% |
$ |
219,468 |
3.64 |
% |
$ |
186,131 |
3.71 |
% |
|||||||||||||||
| (1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 35% for 2017 and a rate of 21% for 2018. |
||||||||||||||||||||||||||
| (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, 2017, September 30, 2017, and June 30, 2017 were 0.46%, 0.44% and 0.40%, respectively. |
| TABLE 7 - IBERIABANK CORPORATION |
|||||||||||||||||||
| YEAR-TO-DATE AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES |
|||||||||||||||||||
| (Dollars in thousands) |
|||||||||||||||||||
| For the Six Months Ended |
|||||||||||||||||||
| 6/30/2018 |
6/30/2017 |
Basis Point |
|||||||||||||||||
| ASSETS |
Average |
Interest |
Yield/Rate |
Average |
Interest |
Yield/Rate |
Yield/Rate |
||||||||||||
| Earning assets: |
|||||||||||||||||||
| Commercial loans and leases |
$ |
14,361,314 |
$ |
343,490 |
4.84 |
% |
$ |
11,027,883 |
$ |
246,906 |
4.57 |
% |
27 |
||||||
| Residential mortgage loans |
3,598,974 |
81,709 |
4.54 |
1,296,266 |
27,193 |
4.20 |
34 |
||||||||||||
| Consumer loans |
3,050,324 |
83,346 |
5.51 |
2,841,390 |
74,143 |
5.26 |
25 |
||||||||||||
| Total loans and leases |
21,010,612 |
508,545 |
4.89 |
15,165,539 |
348,242 |
4.67 |
22 |
||||||||||||
| Mortgage loans held for sale |
90,873 |
1,990 |
4.38 |
160,309 |
2,219 |
2.77 |
161 |
||||||||||||
| Investment securities (2) |
4,901,427 |
57,419 |
2.40 |
3,886,106 |
42,234 |
2.28 |
12 |
||||||||||||
| Other earning assets |
629,915 |
6,412 |
2.05 |
885,278 |
4,413 |
1.01 |
104 |
||||||||||||
| Total earning assets |
26,632,827 |
574,366 |
4.36 |
20,097,232 |
397,108 |
4.03 |
33 |
||||||||||||
| Allowance for loan and lease losses |
(144,934) |
(145,890) |
|||||||||||||||||
| Non-earning assets |
2,468,169 |
1,901,127 |
|||||||||||||||||
| Total assets |
$ |
28,956,062 |
$ |
21,852,469 |
|||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||||
| Interest-bearing liabilities: |
|||||||||||||||||||
| NOW accounts |
$ |
4,429,171 |
$ |
15,701 |
0.71 |
% |
$ |
3,181,347 |
$ |
6,597 |
0.42 |
% |
29 |
||||||
| Savings and money market accounts |
8,906,526 |
33,013 |
0.75 |
7,145,295 |
17,358 |
0.49 |
26 |
||||||||||||
| Certificates of deposit |
2,596,241 |
15,689 |
1.22 |
2,023,661 |
9,214 |
0.92 |
30 |
||||||||||||
| Total interest-bearing deposits (3) |
15,931,938 |
64,403 |
0.82 |
12,350,303 |
33,169 |
0.54 |
28 |
||||||||||||
| Short-term borrowings |
1,010,843 |
5,851 |
1.17 |
381,407 |
504 |
0.27 |
90 |
||||||||||||
| Long-term debt |
1,379,487 |
15,110 |
2.21 |
623,591 |
6,974 |
2.26 |
(5) |
||||||||||||
| Total interest-bearing liabilities |
18,322,268 |
85,364 |
0.94 |
13,355,301 |
40,647 |
0.62 |
32 |
||||||||||||
| Non-interest-bearing deposits |
6,538,622 |
4,984,815 |
|||||||||||||||||
| Non-interest-bearing liabilities |
278,861 |
211,274 |
|||||||||||||||||
| Total liabilities |
25,139,751 |
18,551,390 |
|||||||||||||||||
| Total shareholders' equity |
3,816,311 |
3,301,079 |
|||||||||||||||||
| Total liabilities and shareholders' equity |
$ |
28,956,062 |
$ |
21,852,469 |
|||||||||||||||
| Net interest income/Net interest spread |
$ |
489,002 |
3.42 |
% |
$ |
356,461 |
3.41 |
% |
1 |
||||||||||
| Tax-equivalent benefit |
2,910 |
0.02 |
4,974 |
0.05 |
(3) |
||||||||||||||
| Net interest income (TE)/Net interest margin (TE) (1) |
$ |
491,912 |
3.72 |
% |
$ |
361,435 |
3.62 |
% |
10 |
||||||||||
| (1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017. |
|||||||||||||||||||
| (2) Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting. |
|||||||||||||||||||
| (3) Total deposit costs for the six months ended June 30, 2018 and 2017 were 0.58% and 0.39%, respectively. |
| Table 8 - IBERIABANK CORPORATION |
||||||||||||||||||||||||||||||||||||||||||||
| LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS |
||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) |
||||||||||||||||||||||||||||||||||||||||||||
| For the Three Months Ended |
||||||||||||||||||||||||||||||||||||||||||||
| 6/30/2018 |
3/31/2018 |
12/31/2017 |
9/30/2017 |
6/30/2017 |
||||||||||||||||||||||||||||||||||||||||
| AS REPORTED (US GAAP) |
Income |
Average |
Yield |
Income |
Average |
Yield |
Income |
Average |
Yield |
Income |
Average |
Yield |
Income |
Average |
Yield |
|||||||||||||||||||||||||||||
| Legacy loans, net |
$ |
179 |
$ |
15,217 |
4.73 |
% |
$ |
166 |
$ |
14,556 |
4.61 |
% |
$ |
157 |
$ |
14,235 |
4.39 |
% |
$ |
148 |
$ |
13,638 |
4.29 |
% |
$ |
140 |
$ |
13,150 |
4.27 |
% |
||||||||||||||
| Acquired loans |
91 |
6,614 |
5.51 |
72 |
5,625 |
5.20 |
81 |
5,706 |
5.61 |
69 |
4,703 |
5.86 |
39 |
2,134 |
7.40 |
|||||||||||||||||||||||||||||
| Total loans |
$ |
270 |
$ |
21,831 |
4.97 |
% |
$ |
238 |
$ |
20,181 |
4.77 |
% |
$ |
238 |
$ |
19,941 |
4.74 |
% |
$ |
217 |
$ |
18,341 |
4.70 |
% |
$ |
179 |
$ |
15,284 |
4.70 |
% |
||||||||||||||
| 6/30/2018 |
3/31/2018 |
12/31/2017 |
9/30/2017 |
6/30/2017 |
||||||||||||||||||||||||||||||||||||||||
| ADJUSTMENTS |
Income |
Average |
Yield |
Income |
Average |
Yield |
Income |
Average |
Yield |
Income |
Average |
Yield |
Income |
Average |
Yield |
|||||||||||||||||||||||||||||
| Legacy loans, net |
$ |
— |
$ |
— |
0.00 |
% |
$ |
— |
$ |
— |
0.00 |
% |
$ |
— |
$ |
— |
0.00 |
% |
$ |
— |
$ |
— |
0.00 |
% |
$ |
— |
$ |
— |
0.00 |
% |
||||||||||||||
| Acquired loans |
(16) |
142 |
(1.12) |
(15) |
142 |
(1.16) |
(21) |
161 |
(1.60) |
(20) |
120 |
(1.76) |
(12) |
72 |
(2.46) |
|||||||||||||||||||||||||||||
| Total loans |
$ |
(16) |
$ |
142 |
(0.34) |
% |
$ |
(15) |
$ |
142 |
(0.32) |
% |
$ |
(21) |
$ |
161 |
(0.46) |
% |
$ |
(20) |
$ |
120 |
(0.45) |
% |
$ |
(12) |
$ |
72 |
(0.34) |
% |
||||||||||||||
| 6/30/2018 |
3/31/2018 |
12/31/2017 |
9/30/2017 |
6/30/2017 |
||||||||||||||||||||||||||||||||||||||||
| AS ADJUSTED (CASH YIELD, NON-GAAP) |
Income |
Average |
Yield |
Income |
Average |
Yield |
Income |
Average |
Yield |
Income |
Average |
Yield |
Income |
Average |
Yield |
|||||||||||||||||||||||||||||
| Legacy loans, net |
$ |
179 |
$ |
15,217 |
4.73 |
% |
$ |
166 |
$ |
14,556 |
4.61 |
% |
$ |
157 |
$ |
14,235 |
4.39 |
% |
$ |
148 |
$ |
13,638 |
4.29 |
% |
$ |
140 |
$ |
13,150 |
4.27 |
% |
||||||||||||||
| Acquired loans |
75 |
6,756 |
4.39 |
57 |
5,767 |
4.04 |
60 |
5,867 |
4.01 |
49 |
4,823 |
4.10 |
27 |
2,206 |
4.94 |
|||||||||||||||||||||||||||||
| Total loans |
$ |
254 |
$ |
21,973 |
4.63 |
% |
$ |
223 |
$ |
20,323 |
4.45 |
% |
$ |
217 |
$ |
20,102 |
4.28 |
% |
$ |
197 |
$ |
18,461 |
4.25 |
% |
$ |
167 |
$ |
15,356 |
4.36 |
% |
||||||||||||||
| Table 9 - IBERIABANK CORPORATION |
|||||||||||||||||||||||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) |
|||||||||||||||||||||||||||||||||||
| For the Three Months Ended |
|||||||||||||||||||||||||||||||||||
| 6/30/2018 |
3/31/2018 |
12/31/2017 |
|||||||||||||||||||||||||||||||||
| Pre-tax |
After-tax |
Per share (2) |
Pre-tax |
After-tax |
Per share (2) |
Pre-tax |
After-tax |
Per share (2) |
|||||||||||||||||||||||||||
| Net income |
$ |
105,581 |
$ |
75,124 |
$ |
1.32 |
$ |
81,173 |
$ |
63,621 |
$ |
1.17 |
$ |
91,386 |
$ |
10,278 |
$ |
0.19 |
|||||||||||||||||
| Less: Preferred stock dividends |
— |
949 |
0.02 |
— |
3,598 |
0.07 |
— |
949 |
0.02 |
||||||||||||||||||||||||||
| Income available to common shareholders (GAAP) |
$ |
105,581 |
$ |
74,175 |
$ |
1.30 |
$ |
81,173 |
$ |
60,023 |
$ |
1.10 |
$ |
91,386 |
$ |
9,329 |
$ |
0.17 |
|||||||||||||||||
| Non-interest income adjustments (1)(3): |
|||||||||||||||||||||||||||||||||||
| (Gain) loss on sale of investments and other non-interest income |
(3) |
(2) |
— |
59 |
44 |
— |
(35) |
(22) |
— |
||||||||||||||||||||||||||
| Non-interest expense adjustments (1)(3): |
|||||||||||||||||||||||||||||||||||
| Merger-related expense |
14,333 |
11,012 |
0.20 |
16,227 |
12,517 |
0.23 |
11,373 |
8,487 |
0.16 |
||||||||||||||||||||||||||
| Compensation-related expense |
1,781 |
1,354 |
0.02 |
1,221 |
928 |
0.02 |
1,457 |
947 |
0.01 |
||||||||||||||||||||||||||
| Impairment of long-lived assets, net of (gain) loss on sale |
5,413 |
4,114 |
0.07 |
2,074 |
1,576 |
0.03 |
3,177 |
2,065 |
0.04 |
||||||||||||||||||||||||||
| Litigation expense |
— |
— |
— |
— |
— |
— |
— |
1,228 |
0.02 |
||||||||||||||||||||||||||
| Other non-core non-interest expense |
(95) |
(72) |
— |
(683) |
(520) |
(0.01) |
467 |
358 |
0.01 |
||||||||||||||||||||||||||
| Total non-interest expense adjustments |
21,432 |
16,408 |
0.29 |
18,839 |
14,501 |
0.27 |
16,474 |
13,085 |
0.24 |
||||||||||||||||||||||||||
| Income tax expense (benefit) - provisional impact of TCJA (4) |
— |
6,572 |
0.12 |
— |
— |
— |
— |
51,023 |
0.94 |
||||||||||||||||||||||||||
| Income tax expense (benefit) - other |
— |
— |
— |
— |
173 |
— |
— |
(1,237) |
(0.02) |
||||||||||||||||||||||||||
| Core earnings (Non-GAAP) |
127,010 |
97,153 |
1.71 |
100,071 |
74,741 |
1.37 |
107,825 |
72,178 |
1.33 |
||||||||||||||||||||||||||
| Provision for loan losses (1) |
7,595 |
5,772 |
7,986 |
6,069 |
14,393 |
9,355 |
|||||||||||||||||||||||||||||
| Pre-provision earnings, as adjusted (Non-GAAP) (3) |
$ |
134,605 |
$ |
102,925 |
$ |
108,057 |
$ |
80,810 |
$ |
122,218 |
$ |
81,533 |
|||||||||||||||||||||||
| For the Three Months Ended |
|||||||||||||||||||||||||||||||||||
| 9/30/2017 |
6/30/2017 |
||||||||||||||||||||||||||||||||||
| Pre-tax |
After-tax |
Per share (2) |
Pre-tax |
After-tax |
Per share (2) |
||||||||||||||||||||||||||||||
| Net income |
$ |
48,450 |
$ |
29,644 |
$ |
0.56 |
$ |
80,051 |
$ |
52,018 |
$ |
1.01 |
|||||||||||||||||||||||
| Less: Preferred stock dividends |
— |
3,598 |
0.07 |
— |
949 |
0.02 |
|||||||||||||||||||||||||||||
| Income available to common shareholders (GAAP) |
$ |
48,450 |
$ |
26,046 |
$ |
0.49 |
$ |
80,051 |
$ |
51,069 |
$ |
0.99 |
|||||||||||||||||||||||
| Non-interest income adjustments (1)(3): |
|||||||||||||||||||||||||||||||||||
| (Gain) loss on sale of investments and other non-interest income |
242 |
157 |
— |
(59) |
(38) |
— |
|||||||||||||||||||||||||||||
| Non-interest expense adjustments (1)(3): |
|||||||||||||||||||||||||||||||||||
| Merger-related expense |
28,478 |
19,255 |
0.36 |
1,066 |
789 |
0.02 |
|||||||||||||||||||||||||||||
| Compensation-related expense |
1,092 |
710 |
0.02 |
378 |
246 |
— |
|||||||||||||||||||||||||||||
| Impairment of long-lived assets, net of (gain) loss on sale |
3,661 |
2,380 |
0.04 |
(1,306) |
(849) |
(0.02) |
|||||||||||||||||||||||||||||
| Litigation expense |
5,692 |
4,696 |
0.09 |
6,000 |
5,481 |
0.11 |
|||||||||||||||||||||||||||||
| Other non-core non-interest expense |
377 |
245 |
— |
— |
— |
— |
|||||||||||||||||||||||||||||
| Total non-interest expense adjustments |
39,300 |
27,286 |
0.51 |
6,138 |
5,667 |
0.11 |
|||||||||||||||||||||||||||||
| Core earnings (Non-GAAP) |
87,992 |
53,489 |
1.00 |
86,130 |
56,698 |
1.10 |
|||||||||||||||||||||||||||||
| Provision for loan losses (1) |
18,514 |
12,034 |
12,050 |
7,833 |
|||||||||||||||||||||||||||||||
| Pre-provision earnings, as adjusted (Non-GAAP) (3) |
$ |
106,506 |
$ |
65,523 |
$ |
98,180 |
$ |
64,531 |
|||||||||||||||||||||||||||
| (1) Excluding preferred stock dividends, merger-related expense, and litigation expense, after-tax amounts are calculated using a tax rate of 24% in 2018 and 35% in 2017, which approximates the marginal tax rate. |
|||||||||||||||||||||||||||||||||||
| (2) Diluted per share amounts may not appear to foot due to rounding. |
|||||||||||||||||||||||||||||||||||
| (3) Adjustments to GAAP results include certain significant activities or transactions that, in management's opinion, can distort period-to-period comparisons of the Company's performance. These adjustments include, but are not limited to, realized and unrealized gains or losses on former bank-owned real estate, realized gains or losses on the sale of investment securities, merger-related expenses, litigation charges and recoveries, debt prepayment penalties, and gains, losses, and impairment charges on long-lived assets. |
|||||||||||||||||||||||||||||||||||
| (4) Estimated net impact of the Tax Cuts and Jobs Act ("TCJA") enacted on December 22, 2017 is subject to refinement in future periods as further information becomes available. |
| For the Six Months Ended |
|||||||||||||||||||||||
| 6/30/2018 |
6/30/2017 |
||||||||||||||||||||||
| Pre-tax |
After-tax |
Per share (2) |
Pre-tax |
After-tax |
Per share (2) |
||||||||||||||||||
| Net income |
$ |
186,754 |
$ |
138,745 |
$ |
2.49 |
$ |
153,043 |
$ |
102,491 |
$ |
2.08 |
|||||||||||
| Less: Preferred stock dividends |
— |
4,547 |
0.08 |
— |
4,548 |
0.09 |
|||||||||||||||||
| Income available to common shareholders (GAAP) |
$ |
186,754 |
$ |
134,198 |
$ |
2.41 |
$ |
153,043 |
$ |
97,943 |
$ |
1.99 |
|||||||||||
| Non-interest income adjustments (1)(3): |
|||||||||||||||||||||||
| (Gain) loss on sale of investments and other non-interest income |
56 |
42 |
— |
(59) |
(38) |
— |
|||||||||||||||||
| Non-interest expense adjustments (1)(3): |
|||||||||||||||||||||||
| Merger-related expense |
30,560 |
23,529 |
0.43 |
1,120 |
824 |
0.02 |
|||||||||||||||||
| Compensation-related expense |
3,002 |
2,282 |
0.04 |
476 |
309 |
0.01 |
|||||||||||||||||
| Impairment of long-lived assets, net of (gain) loss on sale |
7,487 |
5,690 |
0.10 |
123 |
80 |
— |
|||||||||||||||||
| Litigation expense |
— |
— |
— |
6,000 |
5,481 |
0.11 |
|||||||||||||||||
| Other non-core non-interest expense |
(778) |
(592) |
(0.01) |
— |
— |
— |
|||||||||||||||||
| Total non-interest expense adjustments |
40,271 |
30,909 |
0.56 |
7,719 |
6,694 |
0.14 |
|||||||||||||||||
| Income tax expense (benefit) - provisional impact of TCJA (4) |
— |
6,572 |
0.12 |
— |
— |
— |
|||||||||||||||||
| Income tax expense (benefit) - other |
— |
173 |
— |
— |
— |
— |
|||||||||||||||||
| Core earnings (Non-GAAP) |
227,081 |
171,894 |
3.09 |
160,703 |
104,599 |
2.13 |
|||||||||||||||||
| Provision for loan losses (1) |
15,581 |
11,841 |
18,204 |
11,833 |
|||||||||||||||||||
| Pre-provision earnings, as adjusted (Non-GAAP) (3) |
$ |
242,662 |
$ |
183,735 |
$ |
178,907 |
$ |
116,432 |
|||||||||||||||
| (1) Excluding preferred stock dividends, merger-related expense, and litigation expense, after-tax amounts are calculated using a tax rate of 24% in 2018 and 35% in 2017, which approximates the marginal tax rate. |
|||||||||||||||||||||||||||||
| (2) Diluted per share amounts may not appear to foot due to rounding. |
|||||||||||||||||||||||||||||
| (3) Adjustments to GAAP results include certain significant activities or transactions that, in management's opinion, can distort period-to-period comparisons of the Company's performance. These adjustments include, but are not limited to, realized and unrealized gains or losses on former bank-owned real estate, realized gains or losses on the sale of investment securities, merger-related expenses, litigation charges and recoveries, debt prepayment penalties, and gains, losses, and impairment charges on long-lived assets. |
|||||||||||||||||||||||||||||
| (4) Estimated net impact of the Tax Cuts and Jobs Act ("TCJA") enacted on December 22, 2017 is subject to refinement in future periods as further information becomes available. |
| Table 10 - IBERIABANK CORPORATION |
|||||||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||||||||
| (Dollars in thousands) |
|||||||||||||||||||
| For the Three Months Ended |
|||||||||||||||||||
| 6/30/2018 |
3/31/2018 |
12/31/2017 |
9/30/2017 |
6/30/2017 |
|||||||||||||||
| Net interest income (GAAP) |
$ |
256,113 |
$ |
232,889 |
$ |
235,502 |
$ |
216,883 |
$ |
183,643 |
|||||||||
| Taxable equivalent benefit |
1,449 |
1,464 |
2,812 |
2,585 |
2,488 |
||||||||||||||
| Net interest income (TE) (Non-GAAP) (1) |
257,562 |
234,353 |
238,314 |
219,468 |
186,131 |
||||||||||||||
| Non-interest income (GAAP) (3) |
53,940 |
44,566 |
52,342 |
50,843 |
53,838 |
||||||||||||||
| Taxable equivalent benefit |
336 |
341 |
683 |
680 |
668 |
||||||||||||||
| Non-interest income (TE) (Non-GAAP) (1) (3) |
54,276 |
44,907 |
53,025 |
51,523 |
54,506 |
||||||||||||||
| Taxable equivalent revenues (Non-GAAP) (1) (3) |
311,838 |
279,260 |
291,339 |
270,991 |
240,637 |
||||||||||||||
| Securities (gains) losses and other non-interest income |
(3) |
59 |
(35) |
242 |
(59) |
||||||||||||||
| Core taxable equivalent revenues (Non-GAAP) (1) (3) |
$ |
311,835 |
$ |
279,319 |
$ |
291,304 |
$ |
271,233 |
$ |
240,578 |
|||||||||
| Total non-interest expense (GAAP) (3) |
$ |
196,877 |
$ |
188,296 |
$ |
182,065 |
$ |
200,762 |
$ |
145,380 |
|||||||||
| Less: Intangible amortization expense |
6,111 |
5,102 |
4,642 |
4,527 |
1,651 |
||||||||||||||
| Tangible non-interest expense (Non-GAAP) (2) (3) |
190,766 |
183,194 |
177,423 |
196,235 |
143,729 |
||||||||||||||
| Less: Merger-related expense |
14,333 |
16,227 |
11,373 |
28,478 |
1,066 |
||||||||||||||
| Compensation-related expense |
1,781 |
1,221 |
1,457 |
1,092 |
378 |
||||||||||||||
| Impairment of long-lived assets, net of (gain) loss on sale |
5,413 |
2,074 |
3,177 |
3,661 |
(1,306) |
||||||||||||||
| Litigation expense |
— |
— |
— |
5,692 |
6,000 |
||||||||||||||
| Other non-core non-interest expense |
(95) |
(683) |
467 |
377 |
— |
||||||||||||||
| Core tangible non-interest expense (Non-GAAP) (2) (3) |
$ |
169,334 |
$ |
164,355 |
$ |
160,949 |
$ |
156,935 |
$ |
137,591 |
|||||||||
| Return on average assets (GAAP) |
1.01 |
% |
0.92 |
% |
0.15 |
% |
0.45 |
% |
0.96 |
% |
|||||||||
| Effect of non-core revenues and expenses |
0.31 |
0.21 |
0.88 |
0.42 |
0.10 |
||||||||||||||
| Core return on average assets (Non-GAAP) |
1.32 |
% |
1.13 |
% |
1.03 |
% |
0.87 |
% |
1.06 |
% |
|||||||||
| Efficiency ratio (GAAP) (3) |
63.5 |
% |
67.9 |
% |
63.3 |
% |
75.0 |
% |
61.2 |
% |
|||||||||
| Effect of tax benefit related to tax-exempt income (3) |
(0.4) |
(0.5) |
(0.8) |
(1.0) |
(0.8) |
||||||||||||||
| Efficiency ratio (TE) (Non-GAAP) (1) (3) |
63.1 |
% |
67.4 |
% |
62.5 |
% |
74.0 |
% |
60.4 |
% |
|||||||||
| Effect of amortization of intangibles |
(1.9) |
(1.8) |
(1.6) |
(1.7) |
(0.7) |
||||||||||||||
| Effect of non-core items |
(6.9) |
(6.8) |
(5.6) |
(14.4) |
(2.5) |
||||||||||||||
| Core tangible efficiency ratio (TE) (Non-GAAP) (1) (2) (3) |
54.3 |
% |
58.8 |
% |
55.3 |
% |
57.9 |
% |
57.2 |
% |
|||||||||
| Return on average common equity (GAAP) |
7.87 |
% |
6.79 |
% |
1.02 |
% |
2.92 |
% |
6.08 |
% |
|||||||||
| Effect of non-core revenues and expenses |
2.43 |
1.66 |
6.90 |
3.07 |
0.67 |
||||||||||||||
| Core return on average common equity (Non-GAAP) |
10.30 |
% |
8.45 |
% |
7.92 |
% |
5.99 |
% |
6.75 |
% |
|||||||||
| Effect of intangibles (2) |
6.40 |
5.38 |
4.81 |
2.96 |
2.11 |
||||||||||||||
| Core return on average tangible common equity (Non-GAAP) (2) |
16.70 |
% |
13.83 |
% |
12.73 |
% |
8.95 |
% |
8.86 |
% |
|||||||||
| Total shareholders' equity (GAAP) |
$ |
3,913,409 |
$ |
3,900,907 |
$ |
3,696,791 |
$ |
3,726,774 |
$ |
3,503,242 |
|||||||||
| Less: Goodwill and other intangibles |
1,314,165 |
1,332,672 |
1,271,807 |
1,276,241 |
752,336 |
||||||||||||||
| Preferred stock |
132,097 |
132,097 |
132,097 |
132,097 |
132,097 |
||||||||||||||
| Tangible common equity (Non-GAAP) (2) |
$ |
2,467,147 |
$ |
2,436,138 |
$ |
2,292,887 |
$ |
2,318,436 |
$ |
2,618,809 |
|||||||||
| Total assets (GAAP) |
$ |
30,126,162 |
$ |
29,472,637 |
$ |
27,904,129 |
$ |
27,976,635 |
$ |
21,790,727 |
|||||||||
| Less: Goodwill and other intangibles |
1,314,165 |
1,332,672 |
1,271,807 |
1,276,241 |
752,336 |
||||||||||||||
| Tangible assets (Non-GAAP) (2) |
$ |
28,811,997 |
$ |
28,139,965 |
$ |
26,632,322 |
$ |
26,700,394 |
$ |
21,038,391 |
|||||||||
| Tangible common equity ratio (Non-GAAP) (2) |
8.56 |
% |
8.66 |
% |
8.61 |
% |
8.68 |
% |
12.45 |
% |
|||||||||
| (1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017. |
|||||||||||||||||||
| (2) Tangible calculations eliminate the effect of goodwill and acquisition-related intangibles and the corresponding amortization expense on a tax-effected basis where applicable. |
|||||||||||||||||||
| (3) Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. On average, the adoption resulted in a reduction of non-interest income and non-interest expense of approximately $2.3 million on a quarterly basis, and had no impact on net income. |
SOURCE IBERIABANK Corporation
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