IBERIABANK Corporation Reports Third Quarter Results
LAFAYETTE, La., Oct. 26, 2016 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 129-year-old IBERIABANK (www.iberiabank.com), reported financial results for the third quarter ended September 30, 2016. For the quarter, the Company reported income available to common shareholders of $44.5 million, or $1.08 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 third quarter of 2016 was also $1.08 per common share (refer to press release supplemental tables for a reconciliation of GAAP to non-GAAP metrics).
Daryl G. Byrd, President and Chief Executive Officer, commented, "We continue to make great strides toward identifying and reducing our risk exposures and resolving our energy-related matters. The resolution process has generally progressed as we expected; however, the 'conveyor belt' on which these matters get resolved accelerated during the third quarter. That acceleration caused us to report higher levels of energy-related non-performing assets, interest accrual reversals, and net charge-offs than in prior quarters. While these energy-related items and other notable expenses suppressed our financial results in the third quarter of 2016, we believe some of these items may diminish or reverse in future periods. We also believe this accelerated process has brought us to the point at which our energy concerns have crested."
Byrd continued, "Our top-line revenues in the third quarter benefited from good loan growth and exceptional deposit growth, while margin compression and lower mortgage income partially offset the benefits of favorable client growth. The loan loss provision has likely crested as a result of the accelerated timing of energy-related asset resolution. Our stable tangible core efficiency ratio of 60% confirms our continued focus on cost control. We remain optimistic regarding our relative growth prospects, favorable risk position, and the competitive dynamics within the banking industry."
Highlights for the third quarter of 2016 and at September 30, 2016:
- The Company continued to reduce energy-related exposures as energy-related loans ("energy loans") decreased $62 million, or 9%, between June 30, 2016 and September 30, 2016, and at September 30, 2016, equated to 4.0% of total loans. At September 30, 2016, the Company had approximately $29 million in reserves for energy loans and unfunded commitments (which equated to 4.9% of energy loans outstanding). Energy-related non-performing assets increased $93 million, or 153%, between quarter-ends as the problem asset resolution process continued.
- The Company's reported and cash net interest margins declined eight and 10 basis points, respectively, on a linked quarter basis. The declines in the reported and cash margins were primarily the result of interest accrual reversals for loans moved to non-accrual status during the third quarter of 2016, accelerated bond premium amortization, and additional balance sheet liquidity.
- On a linked quarter basis, the Company's revenues decreased $4.4 million, or 2%, and non-GAAP core revenues decreased $2.7 million, or 1%. Over the same period, GAAP expenses decreased $1.4 million, or 1%, and non-GAAP core expenses decreased $1.3 million, or 1%. The efficiency ratio increased from 61.3% to 61.9%, while the non-GAAP core tangible efficiency ratio increased from 60.0% to 60.1% on a linked quarter basis.
- Total loan growth was $202 million, or 1%, between June 30, 2016 and September 30, 2016. Legacy loan growth, which excludes all assets covered under FDIC loss share agreements and other non-covered acquired assets (collectively, "Acquired Assets"), increased $429 million, or 4% (14% annualized rate), on a period-end basis and $446 million, or 4% (15% annualized rate), on an average balance basis.
- Total deposits increased $660 million, or 4%, between quarter-ends, and increased $97 million, or 1%, on an average balance basis. Non-interest-bearing deposits increased $248 million, or 5%, between quarter-ends and increased $142 million, or 3%, on an average balance basis.
| Table A - Summary Financial Results |
||||||||||
| (Dollars in thousands, except per share data) |
||||||||||
| For the Three Months Ended |
||||||||||
| 9/30/2016 |
6/30/2016 |
% Change |
9/30/2015 |
% Change |
||||||
| GAAP BASIS: |
||||||||||
| Net income available to common shareholders |
$ 44,478 |
$ 49,956 |
(11.0) |
$ 42,475 |
4.7 |
|||||
| Earnings per common share - diluted |
1.08 |
1.21 |
(10.7) |
1.03 |
4.9 |
|||||
| Average gross loans and leases |
$ 14,802,199 |
$ 14,570,945 |
1.6 |
$ 14,009,601 |
5.7 |
|||||
| Average total deposits |
16,076,742 |
15,979,391 |
0.6 |
16,369,564 |
(1.8) |
|||||
| Net interest margin (TE)(1) |
3.53 |
% |
3.61 |
% |
3.50 |
% |
||||
| Total revenues |
$ 223,238 |
$ 227,670 |
(1.9) |
$ 212,595 |
5.0 |
|||||
| Total non-interest expense |
138,139 |
139,504 |
(1.0) |
144,968 |
(4.7) |
|||||
| Efficiency ratio |
61.9 |
% |
61.3 |
% |
68.2 |
% |
||||
| Return on average assets |
0.94 |
1.02 |
0.86 |
|||||||
| Return on average common equity |
7.00 |
8.05 |
7.09 |
|||||||
| NON-GAAP BASIS (2): |
||||||||||
| Core revenues |
$ 223,226 |
$ 225,881 |
(1.2) |
$ 210,374 |
6.1 |
|||||
| Core non-interest expense |
138,139 |
139,443 |
(0.9) |
140,497 |
(1.7) |
|||||
| Core earnings per common share - diluted |
1.08 |
1.18 |
(8.5) |
1.07 |
0.9 |
|||||
| Core tangible efficiency ratio (TE) (1) (4) |
60.1 |
% |
60.0 |
% |
64.8 |
% |
||||
| Core return on average assets |
0.94 |
1.00 |
0.89 |
|||||||
| Core return on average tangible common equity(4) |
10.30 |
11.64 |
11.18 |
|||||||
| Net interest margin (TE) - cash basis(1)(3) |
3.31 |
3.41 |
3.31 |
|||||||
| (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 $227 million, or 2%, and the associated tax-equivalent yield decreased four basis points. Over that period, average legacy loans increased $446 million, or 4%, with a decrease in yield of three basis points, and average Acquired Assets (including the FDIC loss share receivable) decreased $219 million, or 8%, and the yield increased nine 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 $139 million, or 4%.
On a linked quarter basis, average earning assets increased $366 million, or 2%, and the average earning asset yield decreased eight basis points. Average interest-bearing liabilities increased $153 million, or 1%, and the cost of interest-bearing liabilities increased three basis points. As a result, the net interest spread declined 11 basis points and the net interest margin declined eight basis points. On a linked quarter basis, tax-equivalent net interest income increased $0.7 million, or less than 1%.
In the third quarter of 2016, non-interest income decreased $5.1 million, or 8%, compared to the second quarter of 2016. As a result of gains on the sale of investment securities in the second quarter of 2016, core non-interest income decreased $3.3 million, or 5%, on a linked quarter basis. The primary changes in core non-interest income on a linked quarter basis included:
- Decreased mortgage income of $4.2 million, or 16% (which included a $1.1 million negative fair value adjustment to move certain mortgage loans to held for investment); and
- Decreased title revenues of $0.1 million, or 2%; partially offset by
- Increased credit card income of $0.8 million; and
- Increased treasury management income of $0.3 million.
In the third quarter of 2016, the Company originated $699 million in residential mortgage loans, down $10 million, or 1%, on a linked quarter basis. Client loan refinancing opportunities accounted for approximately 26% of mortgage loan applications in the third quarter of 2016, compared to 16% on a linked quarter basis. The Company sold $706 million in mortgage loans during the third quarter of 2016, up $33 million, or 5%, on a linked quarter basis. Loans held for sale decreased from $230 million at June 30, 2016, to $211 million at September 30, 2016. The mortgage origination locked pipeline was $282 million at September 30, 2016, down $63 million, or 18%, between quarter-ends, and was down slightly compared to one year ago. At October 21, 2016, the locked pipeline was $283 million, up slightly compared to September 30, 2016.
Non-interest expense decreased $1.4 million, or 1%, on a linked quarter basis, while core expense decreased $1.3 million, or 1%. Core expense changes included the following on a linked-quarter basis:
- Increased health care costs of $1.3 million;
- Increased professional services expense of $1.2 million;
- Increased franchise and share tax of $0.7 million; and
- Increased FDIC insurance premiums of $0.4 million; partially offset by
- Decreased annual incentives expense of $1.7 million;
- Decreased credit and loan-related expenses of $1.0 million;
- Decreased payroll taxes of $1.0 million;
- Decreased OREO expense of $0.8 million; and
- Decreased mortgage commission expenses of $0.4 million.
The Company's core tangible efficiency ratio in the third quarter of 2016 was 60.1%, up slightly from 60.0% in the second quarter of 2016. The Company continues to focus on expense containment and revenue enhancement strategies intended to further improve its targeted core tangible efficiency ratio.
The Company anticipates it will record a reduced income tax expense of approximately $6 million upon filing its 2015 tax return in the fourth quarter of 2016. The after-tax non-core EPS benefit of this lower tax expense is estimated to be approximately 15 cents per common share in the fourth quarter of 2016.
| Table B - Summary Financial Condition Results |
|||||||||||||
| (Dollars in thousands, except per share data) |
|||||||||||||
| As of and For the Three Months Ended |
|||||||||||||
| 9/30/2016 |
6/30/2016 |
% Change |
9/30/2015 |
% Change |
|||||||||
| PERIOD-END BALANCES: |
|||||||||||||
| Total loans and leases |
$ 14,924,499 |
$ 14,722,561 |
1.4 |
$ 14,117,019 |
5.7 |
||||||||
| Legacy loans and leases |
12,413,370 |
11,984,849 |
3.6 |
10,779,258 |
15.2 |
||||||||
| Total deposits |
16,522,517 |
15,862,027 |
4.2 |
16,303,065 |
1.3 |
||||||||
| ASSET QUALITY RATIOS (LEGACY): |
|||||||||||||
| Past due loans to total loans (1) |
2.20 |
% |
1.18 |
% |
0.64 |
% |
|||||||
| Non-performing assets to total assets (2) |
1.33 |
0.63 |
0.43 |
||||||||||
| Classified assets to total assets (3) |
2.18 |
2.09 |
0.83 |
||||||||||
| CAPITAL RATIOS: |
|||||||||||||
| Tangible common equity ratio (Non-GAAP) (4) (5) |
8.87 |
% |
9.00 |
% |
8.75 |
% |
|||||||
| Tier 1 leverage ratio |
9.70 |
9.70 |
9.33 |
||||||||||
| Total risk-based capital ratio |
12.47 |
12.46 |
12.15 |
||||||||||
| PER COMMON SHARE DATA: |
|||||||||||||
| Book value |
$ 61.71 |
$ 61.05 |
1.1 |
$ 58.49 |
5.5 |
||||||||
| Tangible book value (Non-GAAP) (4) (5) |
43.26 |
42.53 |
1.7 |
39.95 |
8.3 |
||||||||
| Closing stock price |
67.12 |
59.73 |
12.4 |
58.21 |
15.3 |
||||||||
| Cash dividends |
0.36 |
0.34 |
5.9 |
0.34 |
5.9 |
||||||||
| (1) |
Past due loans include non-accruing 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. |
||||||||||||
| (3) |
Classified assets consist of $398 million, $364 million and $133 million at September 30, 2016, June 30, 2016, and September 30, 2015, respectively. |
||||||||||||
| (4) |
See Table 12 and Table 13 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. |
||||||||||||
Loans
Total loans increased $202 million, or 1%, between June 30, 2016, and September 30, 2016. Over that period, Acquired Assets decreased $227 million, or 8%, and legacy loans increased $429 million, or 4% (14% annualized rate), including a decrease in total energy loans of $62 million, or 9%, and a decline in indirect automobile loans of $28 million, or 16%. During the third quarter of 2016, legacy commercial loans increased $344 million, or 4% (which included $42 million in small business loan growth, up 4%, or 14% annualized rate), legacy consumer loans increased $49 million, or 2%, and legacy mortgage loans increased $45 million, or 6%. Period-end loan growth during the third quarter of 2016 was strongest in the Atlanta, Birmingham, and Tampa markets. Funded loan origination and renewal mix in the third quarter of 2016 was 35% fixed rate and 65% floating rate, and total loans outstanding (excluding non-accruals) were 44% fixed and 56% floating. Commitments originated and/or renewed during the third quarter of 2016 were $1.4 billion (down 18% on a linked quarter basis). Loans originated and/or renewed during the third quarter of 2016 totaled $1.0 billion (down 1% on a linked quarter basis). At September 30, 2016, the Company's commercial loan pipeline was approximately $630 million.
| Table C - Period-End Loans |
||||||||||||||||
| (Dollars in thousands, except per share data) |
||||||||||||||||
| As of and For the Three Months Ended |
||||||||||||||||
| Linked Qtr Change |
Year/Year Change |
Mix |
||||||||||||||
| 9/30/2016 |
6/30/2016 |
9/30/2015 |
$ |
% |
Annualized |
$ |
% |
9/30/2016 |
6/30/2016 |
|||||||
| Legacy loans: |
||||||||||||||||
| Commercial |
$ 9,119,234 |
$ 8,784,789 |
$ 7,815,161 |
334,445 |
3.8 |
15.2 % |
1,304,073 |
16.7 |
73.4 % |
73.3 % |
||||||
| Residential mortgage |
840,082 |
794,701 |
660,543 |
45,381 |
5.7 |
22.8 % |
179,539 |
27.2 |
6.8 % |
6.6 % |
||||||
| Consumer |
2,454,054 |
2,405,359 |
2,303,554 |
48,695 |
2.0 |
8.0 % |
150,500 |
6.5 |
19.8 % |
20.1 % |
||||||
| Total legacy loans |
12,413,370 |
11,984,849 |
10,779,258 |
428,521 |
3.6 |
14.3 % |
1,634,112 |
15.2 |
100.0 % |
100.0 % |
||||||
| Acquired loans: |
||||||||||||||||
| Balance at beginning of period |
2,737,712 |
2,922,547 |
3,555,010 |
(184,835) |
(6.3) |
(817,298) |
(23.0) |
|||||||||
| Loans acquired during the period |
— |
— |
— |
— |
— |
— |
— |
|||||||||
| Net paydown activity |
(226,583) |
(184,835) |
(217,249) |
(41,748) |
22.6 |
(9,334) |
4.3 |
|||||||||
| Total acquired loans |
2,511,129 |
2,737,712 |
3,337,761 |
(226,583) |
(8.3) |
(826,632) |
(24.8) |
|||||||||
| Total loans |
$ 14,924,499 |
$ 14,722,561 |
$ 14,117,019 |
201,938 |
1.4 |
807,480 |
5.7 |
|||||||||
Energy loans outstanding totaled $600 million at September 30, 2016, down $62 million, or 9%, compared to June 30, 2016, and equated to approximately 4.0% of total loans (down from 4.5% at June 30, 2016). Energy-related commitments totaled $1.0 billion at September 30, 2016, down $64 million, or 6%, compared to June 30, 2016. Loans to exploration and production companies accounted for 50% of energy loans outstanding and 54% of energy loan commitments at September 30, 2016. Midstream companies accounted for 19% of energy loans and 20% of energy loan commitments, and service companies accounted for 31% of energy loans and 26% of energy loan commitments. At September 30, 2016, $154 million in energy loans were on non-accrual status (compared to $61 million at June 30, 2016), and no energy loans (excluding non-accruing loans) were past due greater than 30 days at quarter-end. At September 30, 2016, approximately 42% of energy loans were classified and 53% were criticized, compared to 37% and 47%, respectively at June 30, 2016. To date, the Company has experienced $15 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 September 30, 2016, the Company's indirect automobile lending business had approximately $154 million in loans outstanding, down $28 million, or 16%, compared to June 30, 2016 (1.0% of total loans outstanding compared to 1.2% at June 30, 2016).
Deposits
Total deposits increased $660 million, or 4%, between June 30, 2016 and September 30, 2016. Over that period, non-interest-bearing deposits increased $248 million, or 5%, and equated to 29% of total deposits at September 30, 2016. NOW accounts decreased $80 million, or 3%, savings deposits edged up $2 million, or less than 1%, and time deposits increased $34 million, or 2%. Between June 30, 2016 and September 30, 2016, money market accounts increased $457 million, or 8%. Deposit growth during the third quarter of 2016 was strongest in the Houston, Orlando, Tampa, New Orleans, and Mobile markets.
| Table D - Period-End Deposits |
|||||||||||||||
| (Dollars in thousands) |
|||||||||||||||
| Linked Qtr Change |
Year/Year Change |
Mix |
|||||||||||||
| 9/30/2016 |
6/30/2016 |
9/30/2015 |
$ |
% |
Annualized |
$ |
% |
9/30/2016 |
6/30/2016 |
||||||
| Non-interest-bearing |
$ 4,787,485 |
$ 4,539,254 |
$ 4,392,808 |
248,231 |
5.5 |
21.9 % |
394,677 |
9.0 |
29.0 % |
28.6 % |
|||||
| NOW accounts |
2,904,835 |
2,985,284 |
2,635,021 |
(80,449) |
(2.7) |
(10.8)% |
269,814 |
10.2 |
17.6 % |
18.8 % |
|||||
| Money market accounts |
5,847,913 |
5,391,390 |
6,274,428 |
456,523 |
8.5 |
33.9 % |
(426,515) |
(6.8) |
35.4 % |
34.0 % |
|||||
| Savings accounts |
798,781 |
796,855 |
725,435 |
1,926 |
0.2 |
1.0 % |
73,346 |
10.1 |
4.8 % |
5.0 % |
|||||
| Time deposits |
2,183,503 |
2,149,244 |
2,275,373 |
34,259 |
1.6 |
6.4 % |
(91,870) |
(4.0) |
13.2 % |
13.6 % |
|||||
| Total deposits |
$ 16,522,517 |
$ 15,862,027 |
$ 16,303,065 |
660,490 |
4.2 |
16.7 % |
219,452 |
1.3 |
100.0 % |
100.0 % |
|||||
On an average balance and linked quarter basis, non-interest-bearing deposits increased $142 million, or 3%, and interest-bearing deposits decreased $44 million, or less than 1%. The rate on average interest-bearing deposits in the third quarter of 2016 was 0.44%, up two basis points on a linked quarter basis.
Other Assets And Funding
On an average balance and linked quarter basis, the investment portfolio decreased $26 million, or 1%, to $2.8 billion in the third quarter of 2016. On a period-end basis, the investment portfolio equated to $3.0 billion, or 14% of total assets at September 30, 2016, up $107 million, or 4%, compared to June 30, 2016. The investment portfolio had an effective duration of 3.0 years at September 30, 2016, compared to 2.7 years at June 30, 2016. The investment portfolio had a $42 million unrealized gain at September 30, 2016, down from $52 million at June 30, 2016. The average yield on investment securities decreased nine basis points on a linked quarter basis, to 2.09% in the third quarter of 2016. Accelerated bond premium amortization totaled approximately $0.7 million and caused a five-basis point decline in the investment portfolio yield. The Company holds in its investment portfolio primarily government agency securities. Municipal securities comprised 10% of total investments at September 30, 2016. The Company holds for investment no sovereign debt, equity securities, trust preferred securities, or derivative exposure to foreign counterparties.
On a linked quarter basis, average short-term borrowings (including repurchase agreements) increased $108 million, or 17%, and the cost of short-term borrowings decreased two basis points. At September 30, 2016, short-term borrowings (including repurchase agreements) decreased $52 million, or 7%, compared to June 30, 2016. On a linked quarter basis, average long-term debt increased $89 million, or 15%, and the cost of long-term debt decreased 18 basis points to 2.06%. The cost of average interest-bearing liabilities was 0.53% in the third quarter of 2016, up three basis points on a linked quarter basis.
Asset Quality
Net charge-offs totaled $10.2 million in the third quarter of 2016, down $1.7 million, or 14%, compared to the second quarter of 2016. Annualized net charge-offs equated to 0.27% of average loans in the third quarter of 2016, a six-basis point improvement on a linked quarter basis. Energy loans accounted for approximately 68% of the net charge-offs incurred during the third quarter of 2016. The Company's provision for loan losses increased $0.6 million, or 5%, on a linked quarter basis to $12.5 million. The provision for loan losses covered net charge-offs in the third quarter of 2016 by 122% compared to 100% in the second quarter of 2016. The Company's reserve for unfunded commitments, which is included in credit and loan related expense in non-interest expense, declined $1.8 million during the third quarter of 2016 to $12.0 million at September 30, 2016 ($1.0 million of which were energy-related).
Aggregate loans past due 30 to 89 days decreased $9 million, or 15%, and equated to 0.34% of total loans at September 30, 2016, compared to 0.40% at June 30, 2016.
Primarily as a result of an acceleration in the resolution of troubled energy loans, non-performing assets ("NPAs") increased $126 million, or 62%, to $328 million at September 30, 2016. Acquired NPAs declined $7 million, or 8%, while legacy NPAs, which include energy and non-energy loans, increased $134 million, or 122%, and equated to 1.33% of total assets. Energy-related NPAs (which are included in legacy loans) increased by $93 million, or 153%, and accounted for 74% of the increase in the Company's total NPAs during the third quarter of 2016. At September 30, 2016, non-energy-related legacy NPAs increased $41 million, or 83%, and equated to 0.51% of total assets, up from 0.29% at June 30, 2016.
Capital Position
At September 30, 2016, the Company reported a non-GAAP tangible common equity ratio of 8.87%, down 13 basis points compared to June 30, 2016, and the preliminary Tier 1 leverage ratio was 9.70%, unchanged compared to June 30, 2016. The Company's preliminary calculation of its total risk-based capital ratio at September 30, 2016, was 12.47%, up one basis point compared to June 30, 2016.
At September 30, 2016, book value per common share was $61.71, up $0.66 per share, or 1%, compared to June 30, 2016. Tangible book value per common share was $43.26, up $0.73 per share, or 2%, compared to June 30, 2016. Based on the closing stock price of the Company's common stock of $69.95 per share on October 26, 2016, this price equated to 1.13 times September 30, 2016 book value per common share and 1.62 times September 30, 2016 tangible book value per common share.
Cash Dividends On Common Stock. On September 12, 2016, the Company declared a quarterly cash dividend of $0.36 per common share, a 6% increase on a linked quarter basis. 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 October 26, 2016, the indicated dividend yield was 2.06% per common share. The payment of dividends is at the discretion of the Board of Directors.
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 July 5, 2016, the Company declared a semi-annual cash dividend of $0.828 per depositary share that was payable on August 1, 2016.
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 September 12, 2016, the Company declared a quarterly cash dividend of $0.41 per depositary share that is payable on November 1, 2016.
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 third quarter of 2016.
IBERIABANK Corporation
IBERIABANK Corporation is a financial holding company with 304 combined offices, including 199 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 69 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 $2.9 billion, based on the NASDAQ Global Select Market closing stock price on October 26, 2016.
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 Thursday, October 27, 2016, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 9650180. A replay of the call will be available until midnight Central Time on November 3, 2016 by dialing 1-877-344-7529. The confirmation code for the replay is 10093373. 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 subject to loss share agreements with the FDIC within the coverage periods, effects of the on-going correction in residential real estate prices and levels of home sales, our ability to satisfy new capital and liquidity standards such as those imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act and those adopted by the Basel Committee on Banking Supervision and federal banking regulators, sufficiency of our allowance for loan losses, changes in interest rates, access to funding sources, reliance on the services of executive management, competition for loans, deposits and investment dollars, competition from competitors with greater financial resources than the Company, reputational risk and social factors, 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: |
9/30/2016 |
6/30/2016 |
% Change |
9/30/2015 |
% Change |
||||||||
| Net interest income |
$ 163,417 |
$ 162,753 |
0.4 |
$ 155,117 |
5.4 |
||||||||
| Net interest income (TE) (1) |
165,795 |
165,085 |
0.4 |
157,302 |
5.4 |
||||||||
| Total revenues |
223,238 |
227,670 |
(1.9) |
212,595 |
5.0 |
||||||||
| Provision for loan losses |
12,484 |
11,866 |
5.2 |
5,062 |
146.6 |
||||||||
| Non-interest expense |
138,139 |
139,504 |
(1.0) |
144,968 |
(4.7) |
||||||||
| Net income available to common shareholders |
44,478 |
49,956 |
(11.0) |
42,475 |
4.7 |
||||||||
| PER COMMON SHARE DATA: |
|||||||||||||
| Earnings available to common shareholders - basic |
$ 1.08 |
$ 1.21 |
(10.7) |
$ 1.04 |
3.8 |
||||||||
| Earnings available to common shareholders - diluted |
1.08 |
1.21 |
(10.7) |
1.03 |
4.9 |
||||||||
| Core earnings (Non-GAAP) (2) |
1.08 |
1.18 |
(8.5) |
1.07 |
0.9 |
||||||||
| Book value |
61.71 |
61.05 |
1.1 |
58.49 |
5.5 |
||||||||
| Tangible book value (Non-GAAP)(2) (3) |
43.26 |
42.53 |
1.7 |
39.95 |
8.3 |
||||||||
| Closing stock price |
67.12 |
59.73 |
12.4 |
58.21 |
15.3 |
||||||||
| Cash dividends |
0.36 |
0.34 |
5.9 |
0.34 |
5.9 |
||||||||
| KEY RATIOS AND OTHER DATA (6): |
|||||||||||||
| Net interest margin (TE) (1) |
3.53 |
% |
3.61 |
% |
3.50 |
% |
|||||||
| Efficiency ratio |
61.9 |
61.3 |
68.2 |
||||||||||
| Core tangible efficiency ratio (TE) (Non-GAAP) (1) (2) (3) |
60.1 |
60.0 |
64.8 |
||||||||||
| Return on average assets |
0.94 |
1.02 |
0.86 |
||||||||||
| Return on average common equity |
7.00 |
8.05 |
7.09 |
||||||||||
| Core return on average tangible common equity (Non-GAAP) (2)(3) |
10.30 |
11.64 |
11.18 |
||||||||||
| Effective tax rate |
33.8 |
33.4 |
32.1 |
||||||||||
| Full-time equivalent employees |
3,129 |
3,122 |
3,214 |
||||||||||
| CAPITAL RATIOS: |
|||||||||||||
| Tangible common equity ratio (Non-GAAP)(2) (3) |
8.87 |
% |
9.00 |
% |
8.75 |
% |
|||||||
| Tangible common equity to risk-weighted assets (3) |
10.17 |
10.14 |
10.02 |
||||||||||
| Tier 1 leverage ratio (4) |
9.70 |
9.70 |
9.33 |
||||||||||
| Common equity Tier 1 (CET 1) (transitional) (4) |
10.13 |
10.07 |
10.08 |
||||||||||
| Common equity Tier 1 (CET 1) (fully phased-in) (4) |
10.07 |
9.99 |
9.92 |
||||||||||
| Tier 1 capital (transitional) (4) |
10.89 |
10.84 |
10.73 |
||||||||||
| Total risk-based capital ratio(4) |
12.47 |
12.46 |
12.15 |
||||||||||
| Common stock dividend payout ratio |
33.3 |
28.0 |
32.9 |
||||||||||
| Classified assets to Tier 1 capital |
26.1 |
25.1 |
17.5 |
||||||||||
| ASSET QUALITY RATIOS (LEGACY): |
|||||||||||||
| Non-performing assets to total assets (5) |
1.33 |
% |
0.63 |
% |
0.43 |
% |
|||||||
| Allowance for loan losses to loans |
0.88 |
0.89 |
0.80 |
||||||||||
| Net charge-offs to average loans (annualized) |
0.33 |
0.38 |
0.09 |
||||||||||
| Non-performing assets to total loans and OREO (5) |
1.96 |
0.92 |
0.65 |
||||||||||
| (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) |
Capital ratios as of September 30, 2016 are estimated. |
||||||||||||
| (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. |
||||||||||||
| 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 |
||||||||||||||
| 9/30/2016 |
6/30/2016 |
$ |
% |
3/31/2016 |
12/31/2015 |
9/30/2015 |
$ |
% |
|||||||
| Interest income |
$ 180,504 |
$ 178,694 |
1,810 |
1.0 |
$ 176,936 |
$ 176,651 |
$ 171,077 |
9,427 |
5.5 |
||||||
| Interest expense |
17,087 |
15,941 |
1,146 |
7.2 |
15,533 |
15,491 |
15,960 |
1,127 |
7.1 |
||||||
| Net interest income |
163,417 |
162,753 |
664 |
0.4 |
161,403 |
161,160 |
155,117 |
8,300 |
5.4 |
||||||
| Provision for loan losses |
12,484 |
11,866 |
618 |
5.2 |
14,905 |
11,711 |
5,062 |
7,422 |
146.6 |
||||||
| Net interest income after provision for |
150,933 |
150,887 |
46 |
— |
146,498 |
149,449 |
150,055 |
878 |
0.6 |
||||||
| Mortgage income |
21,807 |
25,991 |
(4,184) |
(16.1) |
19,940 |
16,765 |
20,628 |
1,179 |
5.7 |
||||||
| Service charges on deposit accounts |
11,066 |
10,940 |
126 |
1.2 |
10,951 |
11,431 |
11,342 |
(276) |
(2.4) |
||||||
| Title revenue |
6,001 |
6,135 |
(134) |
(2.2) |
4,745 |
5,435 |
6,627 |
(626) |
(9.4) |
||||||
| Broker commissions |
3,797 |
3,712 |
85 |
2.3 |
3,823 |
4,130 |
3,839 |
(42) |
(1.1) |
||||||
| ATM/debit card fee income |
3,483 |
3,650 |
(167) |
(4.6) |
3,503 |
3,569 |
3,562 |
(79) |
(2.2) |
||||||
| Income from bank owned life insurance |
1,305 |
1,411 |
(106) |
(7.5) |
1,202 |
1,096 |
1,093 |
212 |
19.4 |
||||||
| Gain on sale of available-for-sale securities |
12 |
1,789 |
(1,777) |
(99.3) |
196 |
6 |
280 |
(268) |
(95.7) |
||||||
| Other non-interest income |
12,350 |
11,289 |
1,061 |
9.4 |
11,485 |
10,071 |
10,107 |
2,243 |
22.2 |
||||||
| Total non-interest income |
59,821 |
64,917 |
(5,096) |
(7.9) |
55,845 |
52,503 |
57,478 |
2,343 |
4.1 |
||||||
| Salaries and employee benefits |
85,028 |
85,105 |
(77) |
(0.1) |
80,742 |
83,455 |
82,416 |
2,612 |
3.2 |
||||||
| Occupancy and equipment |
16,526 |
16,813 |
(287) |
(1.7) |
16,907 |
16,928 |
17,987 |
(1,461) |
(8.1) |
||||||
| Amortization of acquisition intangibles |
2,106 |
2,109 |
(3) |
(0.1) |
2,113 |
1,795 |
2,338 |
(232) |
(9.9) |
||||||
| Other non-interest expense |
34,479 |
35,477 |
(998) |
(2.8) |
37,690 |
36,797 |
42,227 |
(7,748) |
(18.3) |
||||||
| Total non-interest expense |
138,139 |
139,504 |
(1,365) |
(1.0) |
137,452 |
138,975 |
144,968 |
(6,829) |
(4.7) |
||||||
| Income before income taxes |
72,615 |
76,300 |
(3,685) |
(4.8) |
64,891 |
62,977 |
62,565 |
10,050 |
16.1 |
||||||
| Income tax expense |
24,547 |
25,490 |
(943) |
(3.7) |
22,122 |
18,570 |
20,090 |
4,457 |
22.2 |
||||||
| Net income |
48,068 |
50,810 |
(2,742) |
(5.4) |
42,769 |
44,407 |
42,475 |
5,593 |
13.2 |
||||||
| Preferred stock dividends |
(3,590) |
(854) |
(2,736) |
(320.4) |
(2,576) |
— |
— |
(3,590) |
N/M |
||||||
| Net income available to common shareholders |
$ 44,478 |
$ 49,956 |
(5,478) |
(11.0) |
$ 40,193 |
$ 44,407 |
$ 42,475 |
2,003 |
4.7 |
||||||
| Income available to common shareholders - basic |
$ 44,478 |
$ 49,956 |
(5,478) |
(11.0) |
$ 40,193 |
$ 44,407 |
$ 42,475 |
2,003 |
4.7 |
||||||
| Earnings allocated to unvested restricted stock |
(462) |
(540) |
78 |
(14.4) |
(460) |
(505) |
(492) |
30 |
(6.1) |
||||||
| Income allocated to common shareholders |
$ 44,016 |
$ 49,416 |
(5,400) |
(10.9) |
$ 39,733 |
$ 43,902 |
$ 41,983 |
2,033 |
4.8 |
||||||
| Earnings per common share - basic |
$ 1.08 |
$ 1.21 |
(0.13) |
(10.7) |
$ 0.98 |
$ 1.08 |
$ 1.04 |
0.04 |
3.8 |
||||||
| Earnings per common share - diluted |
1.08 |
1.21 |
(0.13) |
(10.7) |
0.97 |
1.08 |
1.03 |
0.05 |
4.9 |
||||||
| Impact of non-core items (Non-GAAP) (1) |
— |
(0.03) |
0.03 |
(100.0) |
0.04 |
0.03 |
0.04 |
(0.04) |
(100.0) |
||||||
| Earnings per share - diluted, excluding non-core items (Non-GAAP) (1) |
$ 1.08 |
$ 1.18 |
(0.10) |
(8.5) |
$ 1.01 |
$ 1.11 |
$ 1.07 |
0.01 |
0.9 |
||||||
| NUMBER OF COMMON SHARES OUTSTANDING (in thousands) |
|||||||||||||||
| Weighted average common shares outstanding - basic |
41,052 |
41,232 |
(180) |
(0.4) |
41,186 |
40,996 |
40,995 |
57 |
0.1 |
||||||
| Weighted average common shares outstanding - diluted |
40,811 |
40,908 |
(97) |
(0.2) |
40,765 |
40,597 |
40,614 |
197 |
0.5 |
||||||
| Book value shares (period end) |
41,082 |
41,039 |
43 |
0.1 |
41,232 |
41,140 |
41,129 |
(47) |
(0.1) |
||||||
| (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 Nine Months Ended |
||||||
| 9/30/2016 |
9/30/2015 |
$ Change |
% Change |
|||
| Interest income |
$ 536,134 |
$ 470,207 |
65,927 |
14.0 |
||
| Interest expense |
48,561 |
43,609 |
4,952 |
11.4 |
||
| Net interest income |
487,573 |
426,598 |
60,975 |
14.3 |
||
| Provision for loan losses |
39,255 |
19,197 |
20,058 |
104.5 |
||
| Net interest income after provision for loan losses |
448,318 |
407,401 |
40,917 |
10.0 |
||
| Mortgage income |
67,738 |
63,897 |
3,841 |
6.0 |
||
| Service charges on deposit accounts |
32,957 |
30,766 |
2,191 |
7.1 |
||
| Title revenue |
16,881 |
17,402 |
(521) |
(3.0) |
||
| Broker commissions |
11,332 |
13,462 |
(2,130) |
(15.8) |
||
| ATM/debit card fee income |
10,636 |
10,420 |
216 |
2.1 |
||
| Income from bank owned life insurance |
3,918 |
3,260 |
658 |
20.2 |
||
| Gain on sale of available-for-sale securities |
1,997 |
1,569 |
428 |
27.3 |
||
| Other non-interest income |
35,124 |
27,114 |
8,010 |
29.5 |
||
| Total non-interest income |
180,583 |
167,890 |
12,693 |
7.6 |
||
| Salaries and employee benefits |
250,875 |
239,131 |
11,744 |
4.9 |
||
| Occupancy and equipment |
50,246 |
51,613 |
(1,367) |
(2.6) |
||
| Amortization of acquisition intangibles |
6,328 |
6,016 |
312 |
5.2 |
||
| Other non-interest expense |
107,646 |
134,570 |
(26,924) |
(20.0) |
||
| Total non-interest expense |
415,095 |
431,330 |
(16,235) |
(3.8) |
||
| Income before income taxes |
213,806 |
143,961 |
69,845 |
48.5 |
||
| Income tax expense |
72,159 |
45,524 |
26,635 |
58.5 |
||
| Net income |
141,647 |
98,437 |
43,210 |
43.9 |
||
| Preferred stock dividends |
(7,020) |
— |
(7,020) |
N/M |
||
| Net income available to common shareholders |
$ 134,627 |
$ 98,437 |
36,190 |
36.8 |
||
| Income available to common shareholders - basic |
$ 134,627 |
$ 98,437 |
36,190 |
36.8 |
||
| Earnings allocated to unvested restricted stock |
(1,464) |
(1,171) |
(293) |
25.0 |
||
| Income allocated to common shareholders |
$ 133,163 |
$ 97,266 |
35,897 |
36.9 |
||
| Earnings per common share - basic |
$ 3.27 |
$ 2.60 |
0.67 |
25.8 |
||
| Earnings per common share - diluted |
3.26 |
2.59 |
0.67 |
25.9 |
||
| Impact of non-core items (Non-GAAP) (1) |
0.01 |
0.48 |
(0.47) |
(97.9) |
||
| Earnings per share - diluted, excluding non-core items (Non-GAAP) (1) |
$ 3.27 |
$ 3.07 |
0.20 |
6.5 |
||
| NUMBER OF COMMON SHARES OUTSTANDING (in thousands) |
||||||
| Weighted average common shares outstanding - basic |
41,156 |
37,917 |
3,239 |
8.5 |
||
| Weighted average common shares outstanding - diluted |
40,818 |
37,532 |
3,286 |
8.8 |
||
| Book value shares (period end) |
41,082 |
41,129 |
(47) |
(0.1) |
||
| (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 |
9/30/2016 |
6/30/2016 |
$ |
% |
3/31/2016 |
12/31/2015 |
9/30/2015 |
$ |
% |
||||||||
| Cash and due from banks |
$ 327,799 |
$ 288,141 |
39,658 |
13.8 |
$ 300,207 |
$ 241,650 |
$ 370,657 |
(42,858) |
(11.6) |
||||||||
| Interest-bearing deposits in other banks |
773,454 |
417,157 |
356,297 |
85.4 |
696,448 |
268,617 |
311,615 |
461,839 |
148.2 |
||||||||
| Total cash and cash equivalents |
1,101,253 |
705,298 |
395,955 |
56.1 |
996,655 |
510,267 |
682,272 |
418,981 |
61.4 |
||||||||
| Investment securities available for sale |
2,885,413 |
2,776,015 |
109,398 |
3.9 |
2,755,425 |
2,800,286 |
2,827,805 |
57,608 |
2.0 |
||||||||
| Investment securities held to maturity |
90,653 |
92,904 |
(2,251) |
(2.4) |
96,117 |
98,928 |
98,330 |
(7,677) |
(7.8) |
||||||||
| Total investment securities |
2,976,066 |
2,868,919 |
107,147 |
3.7 |
2,851,542 |
2,899,214 |
2,926,135 |
49,931 |
1.7 |
||||||||
| Mortgage loans held for sale |
210,866 |
229,653 |
(18,787) |
(8.2) |
192,545 |
166,247 |
202,168 |
8,698 |
4.3 |
||||||||
| Loans, net of unearned income |
14,924,499 |
14,722,561 |
201,938 |
1.4 |
14,451,244 |
14,327,428 |
14,117,019 |
807,480 |
5.7 |
||||||||
| Allowance for loan losses |
(148,193) |
(147,452) |
(741) |
0.5 |
(146,557) |
(138,378) |
(130,254) |
(17,939) |
13.8 |
||||||||
| Loans, net |
14,776,306 |
14,575,109 |
201,197 |
1.4 |
14,304,687 |
14,189,050 |
13,986,765 |
789,541 |
5.6 |
||||||||
| Loss share receivable |
24,406 |
29,224 |
(4,818) |
(16.5) |
33,564 |
39,878 |
43,443 |
(19,037) |
(43.8) |
||||||||
| Premises and equipment |
308,932 |
311,173 |
(2,241) |
(0.7) |
314,615 |
323,902 |
333,273 |
(24,341) |
(7.3) |
||||||||
| Goodwill and other intangibles |
761,206 |
763,387 |
(2,181) |
(0.3) |
768,235 |
765,655 |
766,589 |
(5,383) |
(0.7) |
||||||||
| Other assets |
629,531 |
678,092 |
(48,561) |
(7.2) |
630,720 |
609,855 |
593,580 |
35,951 |
6.1 |
||||||||
| Total assets |
$ 20,788,566 |
$ 20,160,855 |
627,711 |
3.1 |
$ 20,092,563 |
$ 19,504,068 |
$ 19,534,225 |
1,254,341 |
6.4 |
||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||
| Non-interest-bearing deposits |
$ 4,787,485 |
$ 4,539,254 |
248,231 |
5.5 |
$ 4,484,024 |
$ 4,352,229 |
$ 4,392,808 |
394,677 |
9.0 |
||||||||
| NOW accounts |
2,904,835 |
2,985,284 |
(80,449) |
(2.7) |
2,960,562 |
2,974,176 |
2,635,021 |
269,814 |
10.2 |
||||||||
| Savings and money market accounts |
6,646,694 |
6,188,245 |
458,449 |
7.4 |
6,736,146 |
6,727,720 |
6,999,863 |
(353,169) |
(5.0) |
||||||||
| Certificates of deposit |
2,183,503 |
2,149,244 |
34,259 |
1.6 |
2,079,834 |
2,124,623 |
2,275,373 |
(91,870) |
(4.0) |
||||||||
| Total deposits |
16,522,517 |
15,862,027 |
660,490 |
4.2 |
16,260,566 |
16,178,748 |
16,303,065 |
219,452 |
1.3 |
||||||||
| Short-term borrowings |
360,000 |
477,620 |
(117,620) |
(24.6) |
195,000 |
110,000 |
10,000 |
350,000 |
3,500.0 |
||||||||
| Securities sold under agreements to repurchase |
353,272 |
288,017 |
65,255 |
22.7 |
303,238 |
216,617 |
212,460 |
140,812 |
66.3 |
||||||||
| Trust preferred securities |
120,110 |
120,110 |
— |
— |
120,110 |
120,110 |
120,110 |
— |
— |
||||||||
| Other long-term debt |
552,328 |
567,326 |
(14,998) |
(2.6) |
478,814 |
220,337 |
221,863 |
330,465 |
149.0 |
||||||||
| Other liabilities |
213,229 |
208,158 |
5,071 |
2.4 |
186,926 |
159,421 |
183,526 |
29,703 |
16.2 |
||||||||
| Total liabilities |
18,121,456 |
17,523,258 |
598,198 |
3.4 |
17,544,654 |
17,005,233 |
17,051,024 |
1,070,432 |
6.3 |
||||||||
| Total shareholders' equity |
2,667,110 |
2,637,597 |
29,513 |
1.1 |
2,547,909 |
2,498,835 |
2,483,201 |
183,909 |
7.4 |
||||||||
| Total liabilities and shareholders' equity |
$ 20,788,566 |
$ 20,160,855 |
627,711 |
3.1 |
$ 20,092,563 |
$ 19,504,068 |
$ 19,534,225 |
1,254,341 |
6.4 |
||||||||
| TABLE 4 Continued - IBERIABANK CORPORATION |
|||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||||||||||||
| (Dollars in thousands) |
|||||||||||||||||
| AVERAGE BALANCES |
Linked Qtr Change |
Year/Year Change |
|||||||||||||||
| ASSETS |
9/30/2016 |
6/30/2016 |
$ |
% |
3/31/2016 |
12/31/2015 |
9/30/2015 |
$ |
% |
||||||||
| Cash and due from banks |
$ 299,445 |
$ 304,304 |
(4,859) |
(1.6) |
$ 292,476 |
$ 352,854 |
$ 327,370 |
(27,925) |
(8.5) |
||||||||
| Interest-bearing deposits in other banks |
536,741 |
386,139 |
150,602 |
39.0 |
365,709 |
319,302 |
682,764 |
(146,023) |
(21.4) |
||||||||
| Total cash and cash equivalents |
836,186 |
690,443 |
145,743 |
21.1 |
658,185 |
672,156 |
1,010,134 |
(173,948) |
(17.2) |
||||||||
| Investment securities available for sale |
2,825,030 |
2,823,292 |
1,738 |
0.1 |
2,797,320 |
2,829,825 |
2,660,423 |
164,607 |
6.2 |
||||||||
| Investment securities held to maturity |
92,006 |
94,609 |
(2,603) |
(2.8) |
97,391 |
100,113 |
99,864 |
(7,858) |
(7.9) |
||||||||
| Total investment securities |
2,917,036 |
2,917,901 |
(865) |
0.0 |
2,894,711 |
2,929,938 |
2,760,287 |
156,749 |
5.7 |
||||||||
| Mortgage loans held for sale |
219,369 |
211,468 |
7,901 |
3.7 |
160,873 |
169,616 |
200,895 |
18,474 |
9.2 |
||||||||
| Loans, net of unearned income |
14,802,199 |
14,570,945 |
231,254 |
1.6 |
14,354,410 |
14,185,150 |
14,009,601 |
792,598 |
5.7 |
||||||||
| Allowance for loan losses |
(149,101) |
(149,037) |
(64) |
0.0 |
(141,393) |
(135,209) |
(130,367) |
(18,734) |
14.4 |
||||||||
| Loans, net |
14,653,098 |
14,421,908 |
231,190 |
1.6 |
14,213,017 |
14,049,941 |
13,879,234 |
773,864 |
5.6 |
||||||||
| Loss share receivable |
27,694 |
32,189 |
(4,495) |
(14.0) |
37,360 |
41,205 |
47,190 |
(19,496) |
(41.3) |
||||||||
| Premises and equipment |
310,592 |
313,862 |
(3,270) |
(1.0) |
322,086 |
329,604 |
339,860 |
(29,268) |
(8.6) |
||||||||
| Goodwill and other intangibles |
762,196 |
764,818 |
(2,622) |
(0.3) |
765,898 |
766,664 |
766,712 |
(4,516) |
(0.6) |
||||||||
| Other assets |
666,657 |
651,328 |
15,329 |
2.4 |
609,181 |
592,042 |
599,758 |
66,899 |
11.2 |
||||||||
| Total assets |
$ 20,392,828 |
$ 20,003,917 |
388,911 |
1.9 |
$ 19,661,311 |
$ 19,551,166 |
$ 19,604,070 |
788,758 |
4.0 |
||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||
| Non-interest-bearing deposits |
$ 4,605,447 |
$ 4,463,928 |
141,519 |
3.2 |
$ 4,388,259 |
$ 4,459,980 |
$ 4,265,912 |
339,535 |
8.0 |
||||||||
| NOW accounts |
2,936,130 |
2,911,510 |
24,620 |
0.8 |
2,859,940 |
2,720,128 |
2,655,069 |
281,061 |
10.6 |
||||||||
| Savings and money market accounts |
6,359,006 |
6,486,242 |
(127,236) |
(2.0) |
6,598,838 |
6,899,090 |
7,104,789 |
(745,783) |
(10.5) |
||||||||
| Certificates of deposit |
2,176,159 |
2,117,711 |
58,448 |
2.8 |
2,098,032 |
2,213,557 |
2,343,794 |
(167,635) |
(7.2) |
||||||||
| Total deposits |
16,076,742 |
15,979,391 |
97,351 |
0.6 |
15,945,069 |
16,292,755 |
16,369,564 |
(292,822) |
(1.8) |
||||||||
| Short-term borrowings |
430,332 |
358,837 |
71,495 |
19.9 |
277,374 |
16,109 |
41,033 |
389,299 |
948.7 |
||||||||
| Securities sold under agreements to repurchase |
302,119 |
265,465 |
36,654 |
13.8 |
217,296 |
224,255 |
221,217 |
80,902 |
36.6 |
||||||||
| Trust preferred securities |
120,110 |
120,110 |
— |
— |
120,110 |
120,110 |
120,110 |
— |
— |
||||||||
| Other long-term debt |
562,598 |
473,195 |
89,403 |
18.9 |
403,393 |
220,913 |
222,906 |
339,692 |
152.4 |
||||||||
| Other liabilities |
239,911 |
203,050 |
36,861 |
18.2 |
167,810 |
186,382 |
206,030 |
33,881 |
16.4 |
||||||||
| Total liabilities |
17,731,812 |
17,400,048 |
331,764 |
1.9 |
17,131,052 |
17,060,524 |
17,180,860 |
550,952 |
3.2 |
||||||||
| Total shareholders' equity |
2,661,016 |
2,603,869 |
57,147 |
2.2 |
2,530,259 |
2,490,642 |
2,423,210 |
237,806 |
9.8 |
||||||||
| Total liabilities and shareholders' equity |
$ 20,392,828 |
$ 20,003,917 |
388,911 |
1.9 |
$ 19,661,311 |
$ 19,551,166 |
$ 19,604,070 |
788,758 |
4.0 |
||||||||
| Table 5 - IBERIABANK CORPORATION |
|||||||||||||||||
| TOTAL LOANS AND ASSET QUALITY DATA |
|||||||||||||||||
| (Dollars in thousands) |
|||||||||||||||||
| Linked Qtr Change |
Year/Year Change |
||||||||||||||||
| LOANS |
9/30/2016 |
6/30/2016 |
$ |
% |
3/31/2016 |
12/31/2015 |
9/30/2015 |
$ |
% |
||||||||
| Commercial loans: |
|||||||||||||||||
| Real estate |
$ 6,681,215 |
$ 6,472,001 |
209,214 |
3.2 |
$ 6,230,628 |
$ 6,073,511 |
$ 5,979,751 |
701,464 |
11.7 |
||||||||
| Commercial and Industrial |
3,462,997 |
3,435,809 |
27,188 |
0.8 |
3,374,382 |
3,444,578 |
3,302,971 |
160,026 |
4.8 |
||||||||
| Energy-related (Real Estate and Commercial and Industrial) (1) |
599,641 |
662,034 |
(62,393) |
(9.4) |
731,662 |
680,766 |
719,456 |
(119,815) |
(16.7) |
||||||||
| Total commercial loans |
10,743,853 |
10,569,844 |
174,009 |
1.6 |
10,336,672 |
10,198,855 |
10,002,178 |
741,675 |
7.4 |
||||||||
| Residential mortgage loans |
1,270,530 |
1,249,062 |
21,468 |
1.7 |
1,208,391 |
1,195,319 |
1,189,941 |
80,589 |
6.8 |
||||||||
| Consumer loans: |
|||||||||||||||||
| Home equity |
2,151,130 |
2,129,812 |
21,318 |
1.0 |
2,091,514 |
2,066,167 |
2,015,687 |
135,443 |
6.7 |
||||||||
| Indirect automobile |
153,913 |
182,223 |
(28,310) |
(15.5) |
213,179 |
246,298 |
281,649 |
(127,736) |
(45.4) |
||||||||
| Automobile |
152,972 |
156,597 |
(3,625) |
(2.3) |
164,868 |
169,571 |
172,947 |
(19,975) |
(11.5) |
||||||||
| Credit card |
80,959 |
78,552 |
2,407 |
3.1 |
76,756 |
77,843 |
77,284 |
3,675 |
4.8 |
||||||||
| Other |
371,142 |
356,471 |
14,671 |
4.1 |
359,864 |
373,375 |
377,333 |
(6,191) |
(1.6) |
||||||||
| Total consumer loans |
2,910,116 |
2,903,655 |
6,461 |
0.2 |
2,906,181 |
2,933,254 |
2,924,900 |
(14,784) |
(0.5) |
||||||||
| Total loans |
$ 14,924,499 |
$ 14,722,561 |
201,938 |
1.4 |
$ 14,451,244 |
$ 14,327,428 |
$ 14,117,019 |
807,480 |
5.7 |
||||||||
| Allowance for loan losses |
$ (148,193) |
$ (147,452) |
(741) |
0.5 |
$ (146,557) |
$ (138,378) |
$ (130,254) |
(17,939) |
13.8 |
||||||||
| Loans, net |
14,776,306 |
14,575,109 |
201,197 |
1.4 |
14,304,687 |
14,189,050 |
13,986,765 |
789,541 |
5.6 |
||||||||
| Reserve for unfunded commitments |
(11,990) |
(13,826) |
1,836 |
(13.3) |
(14,033) |
(14,145) |
(14,525) |
2,535 |
(17.5) |
||||||||
| Allowance for credit losses |
(160,183) |
(161,278) |
1,095 |
(0.7) |
(160,590) |
(152,523) |
(144,779) |
(15,404) |
10.6 |
||||||||
| ASSET QUALITY DATA (2) |
|||||||||||||||||
| Non-accrual loans (3) |
$ 300,978 |
$ 173,312 |
127,666 |
73.7 |
$ 182,757 |
$ 154,425 |
$ 165,022 |
135,956 |
82.4 |
||||||||
| Other real estate owned and foreclosed assets |
22,085 |
27,220 |
(5,135) |
(18.9) |
31,411 |
34,131 |
40,450 |
(18,365) |
(45.4) |
||||||||
| Accruing loans more than 90 days past due |
5,233 |
1,580 |
3,653 |
231.2 |
1,068 |
1,970 |
2,994 |
2,239 |
74.8 |
||||||||
| Total non-performing assets |
$ 328,296 |
$ 202,112 |
126,184 |
62.4 |
$ 215,236 |
$ 190,526 |
$ 208,466 |
119,830 |
57.5 |
||||||||
| Loans 30-89 days past due |
$ 50,181 |
$ 58,852 |
(8,671) |
(14.7) |
$ 59,074 |
$ 35,579 |
$ 25,306 |
24,875 |
98.3 |
||||||||
| Non-performing assets to total assets |
1.58 % |
1.00 % |
1.07 % |
0.98 % |
1.07 % |
||||||||||||
| Non-performing assets to total loans and OREO |
2.20 |
1.37 |
1.49 |
1.33 |
1.47 |
||||||||||||
| Allowance for loan losses to non-performing loans (4) |
48.4 |
84.3 |
79.7 |
88.5 |
77.5 |
||||||||||||
| Allowance for loan losses to non-performing assets |
45.1 |
73.0 |
68.1 |
72.6 |
62.5 |
||||||||||||
| Allowance for loan losses to total loans |
0.99 |
1.00 |
1.01 |
0.97 |
0.92 |
||||||||||||
| Quarter-to-date charge-offs |
$ 11,500 |
$ 12,994 |
(1,494) |
(11.5) |
$ 5,560 |
$ 4,277 |
$ 5,245 |
6,255 |
119.3 |
||||||||
| Quarter-to-date recoveries |
(1,277) |
(1,071) |
(206) |
19.2 |
(1,551) |
(1,358) |
(2,790) |
1,513 |
(54.2) |
||||||||
| Quarter-to-date net charge-offs |
$ 10,223 |
$ 11,923 |
(1,700) |
(14.3) |
$ 4,009 |
$ 2,919 |
$ 2,455 |
7,768 |
316.4 |
||||||||
| Net charge-offs to average loans (annualized) |
0.27 % |
0.33 % |
0.11 % |
0.08 % |
0.07 % |
||||||||||||
| (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) For purposes of this table, non-performing assets include all loans meeting non-performing asset criteria, including assets acquired in FDIC-assisted transactions. |
|||||||||||||||||
| (3) For purposes of this table, non-accrual loans may include acquired 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 |
9/30/2016 |
6/30/2016 |
$ |
% |
3/31/2016 |
12/31/2015 |
9/30/2015 |
$ |
% |
||||||||
| Commercial loans: |
|||||||||||||||||
| Real estate |
$ 5,419,483 |
$ 5,097,689 |
321,794 |
6.3 |
$ 4,771,690 |
$ 4,504,062 |
$ 4,321,723 |
1,097,760 |
25.4 |
||||||||
| Commercial and Industrial |
3,101,472 |
3,027,590 |
73,882 |
2.4 |
2,926,686 |
2,952,102 |
2,779,503 |
321,969 |
11.6 |
||||||||
| Energy-related (Real Estate and Commercial and Industrial) (1) |
598,279 |
659,510 |
(61,231) |
(9.3) |
728,778 |
677,177 |
713,935 |
(115,656) |
(16.2) |
||||||||
| Total commercial loans |
9,119,234 |
8,784,789 |
334,445 |
3.8 |
8,427,154 |
8,133,341 |
7,815,161 |
1,304,073 |
16.7 |
||||||||
| Residential mortgage loans |
840,082 |
794,701 |
45,381 |
5.7 |
730,621 |
694,023 |
660,543 |
179,539 |
27.2 |
||||||||
| Consumer loans: |
|||||||||||||||||
| Home equity |
1,755,295 |
1,695,113 |
60,182 |
3.6 |
1,625,812 |
1,575,643 |
1,488,796 |
266,499 |
17.9 |
||||||||
| Indirect automobile |
153,904 |
182,199 |
(28,295) |
(15.5) |
213,141 |
246,214 |
281,522 |
(127,618) |
(45.3) |
||||||||
| Automobile |
143,355 |
146,394 |
(3,039) |
(2.1) |
153,732 |
157,579 |
159,928 |
(16,573) |
(10.4) |
||||||||
| Credit card |
80,452 |
78,044 |
2,408 |
3.1 |
76,247 |
77,261 |
76,716 |
3,736 |
4.9 |
||||||||
| Other |
321,048 |
303,609 |
17,439 |
5.7 |
301,990 |
306,459 |
296,592 |
24,456 |
8.2 |
||||||||
| Total consumer loans |
2,454,054 |
2,405,359 |
48,695 |
2.0 |
2,370,922 |
2,363,156 |
2,303,554 |
150,500 |
6.5 |
||||||||
| Total loans |
$ 12,413,370 |
$ 11,984,849 |
428,521 |
3.6 |
$ 11,528,697 |
$ 11,190,520 |
$ 10,779,258 |
1,634,112 |
15.2 |
||||||||
| Allowance for loan losses |
$ (108,889) |
$ (106,861) |
(2,028) |
1.9 |
$ (105,574) |
$ (93,808) |
$ (86,400) |
(22,489) |
26.0 |
||||||||
| Loans, net |
12,304,481 |
11,877,988 |
426,493 |
3.6 |
11,423,123 |
11,096,712 |
10,692,858 |
1,611,623 |
15.1 |
||||||||
| Reserve for unfunded commitments |
(11,990) |
(13,826) |
1,836 |
(13.3) |
(14,033) |
(14,145) |
(14,525) |
2,535 |
(17.5) |
||||||||
| Allowance for credit losses |
(120,879) |
(120,687) |
(192) |
0.2 |
(119,607) |
(107,953) |
(100,925) |
(19,954) |
19.8 |
||||||||
| ASSET QUALITY DATA (2) |
|||||||||||||||||
| Non-accrual loans |
$ 227,122 |
$ 95,096 |
132,026 |
138.8 |
$ 93,429 |
$ 50,928 |
$ 51,274 |
175,848 |
343.0 |
||||||||
| Other real estate owned and foreclosed assets |
11,538 |
14,478 |
(2,940) |
(20.3) |
17,662 |
16,491 |
17,062 |
(5,524) |
(32.4) |
||||||||
| Accruing loans more than 90 days past due |
4,936 |
353 |
4,583 |
1,298.3 |
125 |
624 |
1,521 |
3,415 |
224.5 |
||||||||
| Total non-performing assets |
$ 243,596 |
$ 109,927 |
133,669 |
121.6 |
$ 111,216 |
$ 68,043 |
$ 69,857 |
173,739 |
248.7 |
||||||||
| Loans 30-89 days past due |
$ 41,157 |
$ 45,906 |
(4,749) |
(10.3) |
$ 42,454 |
$ 20,109 |
$ 15,718 |
25,439 |
161.8 |
||||||||
| Non-performing assets to total assets |
1.33 % |
0.63 % |
0.65 % |
0.42 % |
0.43 % |
||||||||||||
| Non-performing assets to total loans and OREO |
1.96 |
0.92 |
0.96 |
0.61 |
0.65 |
||||||||||||
| Allowance for loan losses to non-performing loans (3) |
46.9 |
112.0 |
112.9 |
182.0 |
163.7 |
||||||||||||
| Allowance for loan losses to non-performing assets |
44.7 |
97.2 |
94.9 |
137.9 |
123.7 |
||||||||||||
| Allowance for loan losses to total loans |
0.88 |
0.89 |
0.92 |
0.84 |
0.80 |
||||||||||||
| Quarter-to-date charge-offs |
$ 11,201 |
$ 11,969 |
(768) |
(6.4) |
$ 5,389 |
$ 3,705 |
$ 4,958 |
6,243 |
125.9 |
||||||||
| Quarter-to-date recoveries |
(1,102) |
(775) |
(327) |
42.2 |
(1,247) |
(1,145) |
(2,524) |
1,422 |
(56.3) |
||||||||
| Quarter-to-date net charge-offs |
$ 10,099 |
$ 11,194 |
(1,095) |
(9.8) |
$ 4,142 |
$ 2,560 |
$ 2,434 |
7,665 |
314.9 |
||||||||
| Net charge-offs to average loans (annualized) |
0.33 % |
0.38 % |
0.15 % |
0.09 % |
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) For purposes of this table, non-performing assets include all loans meeting non-performing asset criteria. |
|||||||||||||||||
| (3) 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(1) |
9/30/2016 |
6/30/2016 |
$ |
% |
3/31/2016 |
12/31/2015 |
9/30/2015 |
$ |
% |
||||||||
| Commercial loans: |
|||||||||||||||||
| Real estate |
$ 1,261,732 |
$ 1,374,312 |
(112,580) |
(8.2) |
$ 1,458,938 |
$ 1,569,449 |
$ 1,658,028 |
(396,296) |
(23.9) |
||||||||
| Commercial and Industrial |
361,525 |
408,219 |
(46,694) |
(11.4) |
447,696 |
492,476 |
523,468 |
(161,943) |
(30.9) |
||||||||
| Energy-related (Real Estate and Commercial and Industrial)(2) |
1,362 |
2,524 |
(1,162) |
(46.0) |
2,884 |
3,589 |
5,521 |
(4,159) |
(75.3) |
||||||||
| Total commercial loans |
1,624,619 |
1,785,055 |
(160,436) |
(9.0) |
1,909,518 |
2,065,514 |
2,187,017 |
(562,398) |
(25.7) |
||||||||
| Residential mortgage loans |
430,448 |
454,361 |
(23,913) |
(5.3) |
477,770 |
501,296 |
529,398 |
(98,950) |
(18.7) |
||||||||
| Consumer loans: |
|||||||||||||||||
| Home equity |
395,835 |
434,699 |
(38,864) |
(8.9) |
465,702 |
490,524 |
526,891 |
(131,056) |
(24.9) |
||||||||
| Indirect automobile |
9 |
24 |
(15) |
(62.5) |
38 |
84 |
127 |
(118) |
(92.9) |
||||||||
| Automobile |
9,617 |
10,203 |
(586) |
(5.7) |
11,136 |
11,992 |
13,019 |
(3,402) |
(26.1) |
||||||||
| Credit card |
507 |
508 |
(1) |
(0.2) |
509 |
582 |
568 |
(61) |
(10.7) |
||||||||
| Other |
50,094 |
52,862 |
(2,768) |
(5.2) |
57,874 |
66,916 |
80,741 |
(30,647) |
(38.0) |
||||||||
| Total consumer loans |
456,062 |
498,296 |
(42,234) |
(8.5) |
535,259 |
570,098 |
621,346 |
(165,284) |
(26.6) |
||||||||
| Total loans |
$ 2,511,129 |
$ 2,737,712 |
(226,583) |
(8.3) |
$ 2,922,547 |
$ 3,136,908 |
$ 3,337,761 |
(826,632) |
(24.8) |
||||||||
| Allowance for loan losses |
$ (39,304) |
$ (40,591) |
1,287 |
(3.2) |
$ (40,983) |
$ (44,570) |
$ (43,854) |
4,550 |
(10.4) |
||||||||
| Loans, net |
2,471,825 |
2,697,121 |
(225,296) |
(8.4) |
2,881,564 |
3,092,338 |
3,293,907 |
(822,082) |
(25.0) |
||||||||
| ACQUIRED ASSET QUALITY DATA (1) (3) |
|||||||||||||||||
| Non-accrual loans (4) |
$ 73,856 |
$ 78,216 |
(4,360) |
(5.6) |
$ 89,328 |
$ 103,497 |
$ 113,748 |
(39,892) |
(35.1) |
||||||||
| Other real estate owned and foreclosed assets |
10,547 |
12,742 |
(2,195) |
(17.2) |
13,749 |
17,640 |
23,388 |
(12,841) |
(54.9) |
||||||||
| Accruing loans more than 90 days past due |
297 |
1,227 |
(930) |
(75.8) |
943 |
1,346 |
1,473 |
(1,176) |
(79.8) |
||||||||
| Total non-performing assets |
$ 84,700 |
$ 92,185 |
(7,485) |
(8.1) |
$ 104,020 |
$ 122,483 |
$ 138,609 |
(53,909) |
(38.9) |
||||||||
| Loans 30-89 days past due |
$ 9,024 |
$ 12,946 |
(3,922) |
(30.3) |
$ 16,620 |
$ 15,470 |
$ 9,588 |
(564) |
(5.9) |
||||||||
| Non-performing assets to total assets |
3.36 % |
3.35 % |
3.50 % |
3.84 % |
4.07 % |
||||||||||||
| Non-performing assets to total loans and OREO |
3.36 |
3.35 |
3.54 |
3.88 |
4.12 |
||||||||||||
| Allowance for loan losses to non-performing loans |
53.0 |
51.1 |
45.4 |
42.5 |
38.1 |
||||||||||||
| Allowance for loan losses to non-performing assets |
46.4 |
44.0 |
39.4 |
36.4 |
31.6 |
||||||||||||
| Allowance for loan losses to total loans |
1.57 |
1.48 |
1.40 |
1.42 |
1.31 |
||||||||||||
| Quarter-to-date charge-offs |
$ 299 |
$ 1,025 |
(726) |
(70.8) |
$ 171 |
$ 572 |
$ 287 |
12 |
4.2 |
||||||||
| Quarter-to-date recoveries |
(175) |
(296) |
121 |
(40.9) |
(304) |
(213) |
(266) |
91 |
(34.2) |
||||||||
| Quarter-to-date net charge-offs/(recoveries) |
$ 124 |
$ 729 |
(605) |
(83.0) |
$ (133) |
$ 359 |
$ 21 |
103 |
490.5 |
||||||||
| Net charge-offs/(recoveries) to average loans |
0.02 % |
0.10 % |
(0.02)% |
0.04 % |
0.00% |
||||||||||||
| (1) For purposes of this table, acquired loans and acquired non-performing assets are presented only. Non-performing assets include all loans meeting non-performing asset criteria. |
|||||||||||||||||
| (2) 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. |
|||||||||||||||||
| (3) For purposes of this table, non-performing assets include all loans meeting non-performing asset criteria, including assets acquired in FDIC-assisted transactions. |
|||||||||||||||||
| (4) For purposes of this table, non-accrual loans may include acquired loans accounted for under ASC 310-30 that are currently accruing income. |
|||||||||||||||||
| Table 8 - IBERIABANK CORPORATION |
|||||||||||||||||
| ENERGY-RELATED LOANS AND ASSET QUALITY DATA |
|||||||||||||||||
| (Dollars in thousands) |
|||||||||||||||||
| ENERGY-RELATED |
Linked Qtr Change |
Year/Year Change |
|||||||||||||||
| LOANS (1) |
9/30/2016 |
6/30/2016 |
$ |
% |
3/31/2016 |
12/31/2015 |
9/30/2015 |
$ |
% |
||||||||
| E&P |
$ 301,223 |
$ 328,066 |
(26,843) |
(8.2) |
$ 369,725 |
$ 314,381 |
$ 335,837 |
(34,614) |
(10.3) |
||||||||
| Midstream |
110,821 |
123,687 |
(12,866) |
(10.4) |
130,556 |
116,623 |
122,863 |
(12,042) |
(9.8) |
||||||||
| Service |
187,597 |
210,281 |
(22,684) |
(10.8) |
231,381 |
249,762 |
260,756 |
(73,159) |
(28.1) |
||||||||
| Total energy-related loans |
$ 599,641 |
$ 662,034 |
(62,393) |
(9.4) |
$ 731,662 |
$ 680,766 |
$ 719,456 |
(119,815) |
(16.7) |
||||||||
| E&P |
$ 545,383 |
$ 572,267 |
(26,884) |
(4.7) |
$ 677,258 |
$ 717,109 |
$ 753,505 |
(208,122) |
(27.6) |
||||||||
| Midstream |
198,618 |
201,555 |
(2,937) |
(1.5) |
206,504 |
204,326 |
200,893 |
(2,275) |
(1.1) |
||||||||
| Service |
261,450 |
295,591 |
(34,141) |
(11.6) |
329,282 |
369,751 |
422,324 |
(160,874) |
(38.1) |
||||||||
| Total energy-related commitments |
$ 1,005,451 |
$ 1,069,413 |
(63,962) |
(6.0) |
$ 1,213,044 |
$ 1,291,186 |
$ 1,376,722 |
(371,271) |
(27.0) |
||||||||
| Total loans |
$ 14,924,499 |
$ 14,722,561 |
201,938 |
1.4 |
$ 14,451,244 |
$ 14,327,428 |
$ 14,117,019 |
807,480 |
5.7 |
||||||||
| Energy outstandings as a % of total loans |
4.0 % |
4.5 % |
5.1 % |
4.8 % |
5.1 % |
||||||||||||
| Energy commitments as a % of total commitments |
5.1 % |
5.4 % |
6.3 % |
6.8 % |
7.4 % |
||||||||||||
| Allowance for loan losses |
$ (28,215) |
$ (33,040) |
4,825 |
(14.6) |
$ (38,495) |
$ (23,987) |
$ (15,335) |
(12,880) |
84.0 |
||||||||
| Reserve for unfunded commitments |
(953) |
(2,223) |
1,270 |
(57.1) |
(903) |
(2,666) |
$ (3,633) |
2,680 |
(73.8) |
||||||||
| Allowance for credit losses |
(29,168) |
(35,263) |
6,095 |
(17.3) |
(39,398) |
(26,653) |
(18,968) |
(10,200) |
53.8 |
||||||||
| ASSET QUALITY DATA (2) |
|||||||||||||||||
| Non-accrual loans |
$ 153,620 |
$ 60,814 |
92,806 |
152.6 |
$ 46,223 |
$ 8,449 |
$ 4,870 |
148,750 |
3,054.4 |
||||||||
| Other real estate owned and foreclosed assets |
— |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||
| Accruing loans more than 90 days past due |
— |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||
| Total non-performing assets |
$ 153,620 |
$ 60,814 |
92,806 |
152.6 |
$ 46,223 |
$ 8,449 |
$ 4,870 |
148,750 |
3,054.4 |
||||||||
| Loans 30-89 days past due |
$ — |
$ 3,055 |
(3,055) |
100.0 |
$ — |
$ 15 |
$ 477 |
(477) |
100.0 |
||||||||
| Non-performing assets to total energy-related loans and OREO |
25.62 % |
9.19 % |
6.32 % |
1.24 % |
0.68 % |
||||||||||||
| Allowance for loan losses to non-performing loans (3) |
18.4 |
54.3 |
83.3 |
283.9 |
314.9 |
||||||||||||
| Allowance for loan losses to non-performing assets |
18.4 |
54.3 |
83.3 |
283.9 |
314.9 |
||||||||||||
| Allowance for loan losses to total energy-related loans |
4.71 |
4.99 |
5.26 |
3.52 |
2.13 |
||||||||||||
| Quarter-to-date charge-offs |
$ 6,957 |
$ 7,715 |
$ — |
$ — |
$ — |
||||||||||||
| Quarter-to-date recoveries |
— |
— |
— |
— |
— |
||||||||||||
| Quarter-to-date net charge-offs |
$ 6,957 |
$ 7,715 |
$ — |
$ — |
$ — |
||||||||||||
| Net charge-offs to average loans (annualized) |
4.39 % |
4.44 % |
0.00% |
0.00% |
0.00% |
||||||||||||
| (1) For purposes of this table, energy-related loans generally include loans with specific NAICS codes. |
|||||||||||||||||
| (2) For purposes of this table, non-performing assets include all loans meeting non-performing asset criteria. |
|||||||||||||||||
| (3) 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 |
|||||||||
| 9/30/2016 |
6/30/2016 |
Basis Point Change |
|||||||
| ASSETS |
Average Balance |
Interest Income/Expense |
Yield/Rate |
Average Balance |
Interest Income/Expense |
Yield/Rate |
Yield/Rate |
||
| Earning assets: |
|||||||||
| Commercial loans |
$ 10,646,874 |
$ 116,653 |
4.34 % |
$ 10,458,822 |
$ 114,588 |
4.39 % |
(5) |
||
| Residential mortgage loans |
1,254,665 |
13,718 |
4.37 |
1,221,254 |
13,781 |
4.51 |
(14) |
||
| Consumer loans |
2,900,660 |
37,413 |
5.13 |
2,890,869 |
37,200 |
5.18 |
(5) |
||
| Total loans |
14,802,199 |
167,784 |
4.50 |
14,570,945 |
165,569 |
4.55 |
(5) |
||
| Loss share receivable |
27,694 |
(3,935) |
(55.61) |
32,189 |
(4,163) |
(51.16) |
(445) |
||
| Total loans and loss share receivable |
14,829,893 |
163,849 |
4.39 |
14,603,134 |
161,406 |
4.43 |
(4) |
||
| Mortgage loans held for sale |
219,369 |
1,774 |
3.24 |
211,468 |
1,850 |
3.50 |
(26) |
||
| Investment securities (2) |
2,830,892 |
13,815 |
2.09 |
2,856,805 |
14,663 |
2.18 |
(9) |
||
| Other earning assets |
641,080 |
1,066 |
0.66 |
483,597 |
775 |
0.64 |
2 |
||
| Total earning assets |
18,521,234 |
180,504 |
3.89 |
18,155,004 |
178,694 |
3.97 |
(8) |
||
| Allowance for loan losses |
(149,101) |
(149,037) |
|||||||
| Non-earning assets |
2,020,695 |
1,997,950 |
|||||||
| Total assets |
$ 20,392,828 |
$ 20,003,917 |
|||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||
| Interest-bearing liabilities: |
|||||||||
| NOW accounts |
$ 2,936,130 |
2,313 |
0.31 |
$ 2,911,510 |
2,080 |
0.29 |
2 |
||
| Savings and money market accounts |
6,359,006 |
5,826 |
0.36 |
6,486,242 |
5,527 |
0.34 |
2 |
||
| Certificates of deposit |
2,176,159 |
4,592 |
0.84 |
2,117,711 |
4,309 |
0.82 |
2 |
||
| Total interest-bearing deposits (3) |
11,471,295 |
12,731 |
0.44 |
11,515,463 |
11,916 |
0.42 |
2 |
||
| Short-term borrowings |
732,451 |
753 |
0.40 |
624,302 |
662 |
0.42 |
(2) |
||
| Long-term debt |
682,708 |
3,603 |
2.06 |
593,305 |
3,363 |
2.24 |
(18) |
||
| Total interest-bearing liabilities |
12,886,454 |
17,087 |
0.53 |
12,733,070 |
15,941 |
0.50 |
3 |
||
| Non-interest-bearing deposits |
4,605,447 |
4,463,928 |
|||||||
| Non-interest-bearing liabilities |
239,911 |
203,050 |
|||||||
| Total liabilities |
17,731,812 |
17,400,048 |
|||||||
| Total shareholders' equity |
2,661,016 |
2,603,869 |
|||||||
| Total liabilities and shareholders' equity |
$ 20,392,828 |
$ 20,003,917 |
|||||||
| Net interest income/Net interest spread |
$ 163,417 |
3.36 % |
$ 162,753 |
3.47 % |
(11) |
||||
| Tax-equivalent benefit |
2,378 |
0.05 |
2,332 |
0.05 |
— |
||||
| Net interest income (TE)/Net interest margin (TE) (1) |
$ 165,795 |
3.53 % |
$ 165,085 |
3.61 % |
(8) |
||||
| (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 September 30, 2016 and June 30, 2016 total 0.32% and 0.30%, respectively. |
|||||||||
| TABLE 9 Continued - IBERIABANK CORPORATION |
|||||||||||
| QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES |
|||||||||||
| (Dollars in thousands) |
|||||||||||
| For the Three Months Ended |
|||||||||||
| 3/31/2016 |
12/31/2015 |
9/30/2015 |
|||||||||
| 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 |
$ 10,250,555 |
$ 113,417 |
4.43 % |
$ 10,062,680 |
$ 114,153 |
4.50 % |
$ 9,915,593 |
$ 110,282 |
4.41 % |
||
| Residential mortgage loans |
1,202,692 |
13,429 |
4.47 |
1,193,488 |
12,819 |
4.30 |
1,180,725 |
13,156 |
4.46 |
||
| Consumer loans |
2,901,163 |
37,145 |
5.15 |
2,928,982 |
36,553 |
4.95 |
2,913,283 |
36,477 |
4.97 |
||
| Total loans |
14,354,410 |
163,991 |
4.58 |
14,185,150 |
163,525 |
4.57 |
14,009,601 |
159,915 |
4.53 |
||
| Loss share receivable |
37,360 |
(4,386) |
(46.44) |
41,205 |
(4,490) |
(42.63) |
47,190 |
(5,600) |
(46.43) |
||
| Total loans and loss share receivable |
14,391,770 |
159,605 |
4.45 |
14,226,355 |
159,035 |
4.44 |
14,056,791 |
154,315 |
4.36 |
||
| Mortgage loans held for sale |
160,873 |
1,401 |
3.48 |
169,616 |
1,422 |
3.35 |
200,895 |
1,847 |
3.68 |
||
| Investment securities (2) |
2,866,974 |
15,212 |
2.25 |
2,901,388 |
15,149 |
2.21 |
2,697,617 |
13,730 |
2.16 |
||
| Other earning assets |
453,737 |
718 |
0.64 |
390,571 |
1,045 |
1.06 |
756,277 |
1,185 |
0.62 |
||
| Total earning assets |
17,873,354 |
176,936 |
3.99 |
17,687,930 |
176,651 |
3.99 |
17,711,580 |
171,077 |
3.86 |
||
| Allowance for loan losses |
(141,393) |
(135,209) |
(130,367) |
||||||||
| Non-earning assets |
1,929,350 |
1,998,445 |
2,022,857 |
||||||||
| Total assets |
$ 19,661,311 |
$ 19,551,166 |
$ 19,604,070 |
||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||
| Interest-bearing liabilities: |
|||||||||||
| NOW accounts |
$ 2,859,940 |
1,940 |
0.27 |
$ 2,720,128 |
1,861 |
0.27 |
$ 2,655,069 |
1,725 |
0.26 |
||
| Savings and money market accounts |
6,598,838 |
5,640 |
0.34 |
6,899,090 |
6,172 |
0.35 |
7,104,789 |
6,460 |
0.36 |
||
| Certificates of deposit |
2,098,032 |
4,354 |
0.83 |
2,213,557 |
4,727 |
0.85 |
2,343,794 |
5,039 |
0.85 |
||
| Total interest-bearing deposits (3) |
11,556,810 |
11,934 |
0.42 |
11,832,775 |
12,760 |
0.43 |
12,103,652 |
13,224 |
0.43 |
||
| Short-term borrowings |
494,670 |
485 |
0.39 |
240,365 |
98 |
0.16 |
262,250 |
116 |
0.17 |
||
| Long-term debt |
523,503 |
3,114 |
2.35 |
341,022 |
2,633 |
3.02 |
343,016 |
2,620 |
2.99 |
||
| Total interest-bearing liabilities |
12,574,983 |
15,533 |
0.49 |
12,414,162 |
15,491 |
0.49 |
12,708,918 |
15,960 |
0.50 |
||
| Non-interest-bearing deposits |
4,388,259 |
4,459,980 |
4,265,912 |
||||||||
| Non-interest-bearing liabilities |
167,810 |
186,382 |
206,030 |
||||||||
| Total liabilities |
17,131,052 |
17,060,524 |
17,180,860 |
||||||||
| Total shareholders' equity |
2,530,259 |
2,490,642 |
2,423,210 |
||||||||
| Total liabilities and shareholders' equity |
$ 19,661,311 |
$ 19,551,166 |
$ 19,604,070 |
||||||||
| Net interest income/Net interest spread |
$ 161,403 |
3.50 % |
$ 161,160 |
3.50 % |
$ 155,117 |
3.36 % |
|||||
| Tax-equivalent benefit |
2,361 |
0.05 |
2,384 |
0.05 |
2,185 |
0.05 |
|||||
| Net interest income (TE)/Net interest margin (TE) (1) |
$ 163,764 |
3.64 % |
$ 163,544 |
3.64 % |
$ 157,302 |
3.50 % |
|||||
| (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 March 31, 2016, December 31, 2015 and September 30, 2015 total 0.30%, 0.31% and 0.32%, respectively. |
|||||||||||
| TABLE 10 - IBERIABANK CORPORATION |
|||||||||
| YEAR-TO-DATE AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES |
|||||||||
| (Dollars in thousands) |
|||||||||
| For the Nine Months Ended |
|||||||||
| 9/30/2016 |
9/30/2015 |
Basis Point Change |
|||||||
| ASSETS |
Average Balance |
Interest Income/Expense |
Yield/Rate |
Average Balance |
Interest Income/Expense |
Yield/Rate |
Yield/Rate |
||
| Earning assets: |
|||||||||
| Commercial loans |
$ 10,452,794 |
$ 344,658 |
4.39 % |
$ 9,032,618 |
$ 297,199 |
4.40 % |
(1) |
||
| Residential mortgage loans |
1,226,307 |
40,928 |
4.45 |
1,156,101 |
41,129 |
4.74 |
(29) |
||
| Consumer loans |
2,897,576 |
111,758 |
5.15 |
2,777,330 |
105,113 |
5.06 |
9 |
||
| Total loans |
14,576,677 |
497,344 |
4.54 |
12,966,049 |
443,441 |
4.57 |
(3) |
||
| Loss share receivable |
32,398 |
(12,484) |
(50.63) |
56,299 |
(19,011) |
(44.53) |
(610) |
||
| Total loans and loss share receivable |
14,609,075 |
484,860 |
4.42 |
13,022,348 |
424,430 |
4.36 |
6 |
||
| Mortgage loans held for sale |
197,317 |
5,025 |
3.40 |
179,211 |
4,742 |
3.53 |
(13) |
||
| Investment securities (2) |
2,851,482 |
43,691 |
2.17 |
2,492,826 |
38,017 |
2.15 |
2 |
||
| Other earning assets |
526,557 |
2,558 |
0.65 |
608,578 |
3,018 |
0.66 |
(1) |
||
| Total earning assets |
18,184,431 |
536,134 |
3.95 |
16,302,963 |
470,207 |
3.87 |
8 |
||
| Allowance for loan losses |
(146,520) |
(129,325) |
|||||||
| Non-earning assets |
1,982,804 |
1,842,042 |
|||||||
| Total assets |
$ 20,020,715 |
$ 18,015,680 |
|||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||
| Interest-bearing liabilities: |
|||||||||
| NOW accounts |
$ 2,902,649 |
6,334 |
0.29 |
$ 2,587,020 |
5,042 |
0.26 |
3 |
||
| Savings and money market accounts |
6,480,916 |
16,992 |
0.35 |
6,064,012 |
14,892 |
0.33 |
2 |
||
| Certificates of deposit |
2,130,800 |
13,255 |
0.83 |
2,275,968 |
14,410 |
0.85 |
(2) |
||
| Total interest-bearing deposits (3) |
11,514,365 |
36,581 |
0.42 |
10,927,000 |
34,344 |
0.42 |
— |
||
| Short-term borrowings |
617,562 |
1,900 |
0.40 |
488,574 |
699 |
0.19 |
21 |
||
| Long-term debt |
600,141 |
10,080 |
2.21 |
404,125 |
8,566 |
2.80 |
(59) |
||
| Total interest-bearing liabilities |
12,732,068 |
48,561 |
0.51 |
11,819,699 |
43,609 |
0.49 |
2 |
||
| Non-interest-bearing deposits |
4,486,314 |
3,840,738 |
|||||||
| Non-interest-bearing liabilities |
203,723 |
171,585 |
|||||||
| Total liabilities |
17,422,105 |
15,832,022 |
|||||||
| Total shareholders' equity |
2,598,610 |
2,183,658 |
|||||||
| Total liabilities and shareholders' equity |
$ 20,020,715 |
$ 18,015,680 |
|||||||
| Net interest income/Net interest spread |
$ 487,573 |
3.44 % |
$ 426,598 |
3.38 % |
6 |
||||
| Tax-equivalent benefit |
7,071 |
0.05 |
6,221 |
0.05 |
— |
||||
| Net interest income (TE)/Net interest margin (TE) (1) |
$ 494,644 |
3.59 % |
$ 432,819 |
3.52 % |
7 |
||||
| (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 nine months ended September 30, 2016 and 2015 total 0.30% and 0.31%, respectively . |
|||||||||
| Table 11 - IBERIABANK CORPORATION |
|||||||||||||||||||
| LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS |
|||||||||||||||||||
| (Dollars in millions) |
|||||||||||||||||||
| For the Three Months Ended |
|||||||||||||||||||
| 9/30/2016 |
6/30/2016 |
3/31/2016 |
12/31/2015 |
9/30/2015 |
|||||||||||||||
| 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 |
$ 123 |
$ 12,183 |
3.97 % |
$ 118 |
$ 11,737 |
4.00 % |
$ 115 |
$ 11,319 |
4.02 % |
$ 109 |
$ 10,949 |
3.92 % |
$ 105 |
$ 10,571 |
3.90 % |
||||
| Acquired loans (1) |
41 |
2,647 |
6.10 |
43 |
2,866 |
6.01 |
45 |
3,073 |
5.84 |
50 |
3,277 |
5.97 |
49 |
3,486 |
5.59 |
||||
| Total loans |
$ 164 |
$ 14,830 |
4.40 % |
$ 161 |
$ 14,603 |
4.45 % |
$ 160 |
$ 14,392 |
4.46 % |
$ 159 |
$ 14,226 |
4.44 % |
$ 154 |
$ 14,057 |
4.36 % |
||||
| 9/30/2016 |
6/30/2016 |
3/31/2016 |
12/31/2015 |
9/30/2015 |
|||||||||||||||
| 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) |
(9) |
76 |
1.49 |
(9) |
84 |
(1.33) |
(7) |
86 |
(1.04) |
(11) |
87 |
(1.41) |
(8) |
92 |
(0.9) |
||||
| Total loans |
$ (9) |
$ 76 |
(0.27)% |
$ (9) |
$ 84 |
(0.26)% |
$ (7) |
$ 86 |
(0.21)% |
$ (11) |
$ 87 |
(0.33)% |
$ (8) |
$ 92 |
(0.24)% |
||||
| 9/30/2016 |
6/30/2016 |
3/31/2016 |
12/31/2015 |
9/30/2015 |
|||||||||||||||
| 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 |
$ 123 |
$ 12,183 |
3.97 % |
$ 118 |
$ 11,737 |
4.00 % |
$ 115 |
$ 11,319 |
4.02 % |
$ 109 |
$ 10,949 |
3.92 % |
$ 105 |
$ 10,571 |
3.90 % |
||||
| Acquired loans (1) |
32 |
2,723 |
4.61 |
34 |
2,950 |
4.68 |
38 |
3,159 |
4.80 |
39 |
3,364 |
4.56 |
41 |
3,578 |
4.69 |
||||
| Total loans |
$ 155 |
$ 14,906 |
4.13 % |
$ 152 |
$ 14,687 |
4.19 % |
$ 153 |
$ 14,478 |
4.25 % |
$ 148 |
$ 14,313 |
4.11 % |
$ 146 |
$ 14,149 |
4.12 % |
||||
| (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 |
|||||||||||||||||
| 9/30/2016 |
6/30/2016 |
3/31/2016 |
|||||||||||||||
| 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 available to common shareholders (GAAP) |
$ 72,615 |
$ 44,478 |
$ 1.08 |
$ 76,300 |
$ 49,956 |
$ 1.21 |
$ 64,891 |
$ 40,193 |
$ 0.97 |
||||||||
| Non-interest income adjustments: |
|||||||||||||||||
| Gain on sale of investments and other non-interest income |
(12) |
(8) |
— |
(1,789) |
(1,163) |
(0.03) |
(196) |
(127) |
— |
||||||||
| Non-interest expense adjustments: |
|||||||||||||||||
| Merger-related expense |
— |
— |
— |
— |
— |
— |
3 |
2 |
— |
||||||||
| Severance expense |
— |
— |
— |
140 |
91 |
— |
454 |
295 |
0.01 |
||||||||
| Impairment of long-lived assets, net of (gain) loss on sale |
— |
— |
— |
(1,256) |
(816) |
(0.02) |
1,044 |
679 |
0.01 |
||||||||
| Other non-core non-interest expense |
— |
— |
— |
1,177 |
765 |
0.02 |
1,091 |
709 |
0.02 |
||||||||
| Total non-interest expense adjustments |
— |
— |
— |
61 |
40 |
— |
2,592 |
1,685 |
0.04 |
||||||||
| Income tax benefits |
— |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||
| Core earnings (Non-GAAP) |
72,603 |
44,470 |
1.08 |
74,572 |
48,833 |
1.18 |
67,287 |
41,751 |
1.01 |
||||||||
| Provision for loan losses |
12,484 |
8,115 |
0.20 |
11,866 |
7,712 |
0.19 |
14,905 |
9,688 |
0.24 |
||||||||
| Core pre-provision earnings (Non-GAAP) |
$ 85,087 |
$ 52,585 |
$ 1.28 |
$ 86,438 |
$ 56,545 |
$ 1.37 |
$ 82,192 |
$ 51,439 |
$ 1.25 |
||||||||
| For the Three Months Ended |
|||||||||||||||||
| 12/31/2015 |
9/30/2015 |
||||||||||||||||
| Pre-tax |
After-tax(1) |
Per share(2) |
Pre-tax |
After-tax(1) |
Per share(2) |
||||||||||||
| Net income available to common shareholders (GAAP) |
$ 62,977 |
$ 44,407 |
$ 1.08 |
$ 62,565 |
$ 42,475 |
$ 1.03 |
|||||||||||
| Non-interest income adjustments: |
|||||||||||||||||
| Gain on sale of investments and other non-interest income |
(157) |
(102) |
— |
(2,221) |
(1,444) |
(0.04) |
|||||||||||
| Non-interest expense adjustments: |
|||||||||||||||||
| Merger-related expense |
(166) |
(108) |
— |
2,212 |
1,438 |
0.04 |
|||||||||||
| Severance expense |
1,842 |
1,197 |
0.03 |
304 |
198 |
— |
|||||||||||
| Impairment of long-lived assets, net of (gain) loss on sale |
3,396 |
2,207 |
0.05 |
1,713 |
1,113 |
0.03 |
|||||||||||
| Other non-core non-interest expense |
(208) |
(135) |
— |
242 |
157 |
— |
|||||||||||
| Total non-interest expense adjustments |
4,864 |
3,161 |
0.08 |
4,471 |
2,906 |
0.07 |
|||||||||||
| Income tax benefits |
— |
(2,041) |
(0.05) |
— |
— |
— |
|||||||||||
| Core earnings (Non-GAAP) |
67,684 |
45,425 |
1.11 |
64,815 |
43,937 |
1.07 |
|||||||||||
| Provision for loan losses |
11,711 |
7,612 |
0.19 |
5,062 |
3,291 |
0.08 |
|||||||||||
| Core pre-provision earnings (Non-GAAP) |
$ 79,395 |
$ 53,037 |
$ 1.30 |
$ 69,877 |
$ 47,228 |
$ 1.15 |
|||||||||||
| (1) After-tax amounts 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. |
|||||||||||||||||
| For the Nine Months Ended |
|||||||||||||||||
| 9/30/2016 |
9/30/2015 |
||||||||||||||||
| Pre-tax |
After-tax(1) |
Per share(2) |
Pre-tax |
After-tax(1) |
Per share(2) |
||||||||||||
| Net income available to common shareholders (GAAP) |
$ 213,806 |
$ 134,627 |
$ 3.26 |
$ 143,961 |
$ 98,437 |
$ 2.59 |
|||||||||||
| Non-interest income adjustments: |
|||||||||||||||||
| Gain on sale of investments and other non-interest income |
(1,997) |
(1,298) |
(0.03) |
(3,876) |
(2,519) |
(0.07) |
|||||||||||
| Non-interest expense adjustments: |
|||||||||||||||||
| Merger-related expense |
3 |
2 |
— |
24,240 |
15,969 |
0.42 |
|||||||||||
| Severance expense |
594 |
386 |
0.01 |
751 |
489 |
0.01 |
|||||||||||
| Impairment of long-lived assets, net of (gain) loss on sale |
(212) |
(137) |
(0.01) |
3,863 |
2,510 |
0.07 |
|||||||||||
| Other non-core non-interest expense |
2,268 |
1,474 |
0.04 |
2,742 |
1,782 |
0.05 |
|||||||||||
| Total non-interest expense adjustments |
2,653 |
1,725 |
0.04 |
31,596 |
20,750 |
0.55 |
|||||||||||
| Income tax benefits |
— |
— |
— |
— |
— |
— |
|||||||||||
| Core earnings (Non-GAAP) |
214,462 |
135,054 |
3.27 |
171,681 |
116,668 |
3.07 |
|||||||||||
| Provision for loan losses |
39,255 |
25,516 |
0.63 |
19,197 |
12,479 |
0.33 |
|||||||||||
| Core pre-provision earnings (Non-GAAP) |
$ 253,717 |
$ 160,570 |
$ 3.90 |
$ 190,878 |
$ 129,147 |
$ 3.40 |
|||||||||||
| (1) After-tax amounts 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 |
|||||||||
| 9/30/2016 |
6/30/2016 |
3/31/2016 |
12/31/2015 |
9/30/2015 |
|||||
| Net interest income (GAAP) |
$ 163,417 |
$ 162,753 |
$ 161,403 |
$ 161,160 |
$ 155,117 |
||||
| Add: Effect of tax benefit on interest income |
2,378 |
2,332 |
2,361 |
2,384 |
2,185 |
||||
| Net interest income (TE) (Non-GAAP) (1) |
165,795 |
165,085 |
163,764 |
163,544 |
157,302 |
||||
| Non-interest income (GAAP) |
59,821 |
64,917 |
55,845 |
52,503 |
57,478 |
||||
| Add: Effect of tax benefit on non-interest income |
703 |
760 |
647 |
590 |
589 |
||||
| Non-interest income (TE) (Non-GAAP) (1) |
60,524 |
65,677 |
56,492 |
53,093 |
58,067 |
||||
| Taxable equivalent revenues (Non-GAAP) (1) |
226,319 |
230,762 |
220,256 |
216,637 |
215,369 |
||||
| Securities gains and other non-interest income |
(12) |
(1,789) |
(196) |
(157) |
(2,221) |
||||
| Core taxable equivalent revenues (Non-GAAP)(1) |
$ 226,307 |
$ 228,973 |
$ 220,060 |
$ 216,480 |
$ 213,148 |
||||
| Total non-interest expense (GAAP) |
$ 138,139 |
$ 139,504 |
$ 137,452 |
$ 138,975 |
$ 144,968 |
||||
| Less: Intangible amortization expense |
2,106 |
2,109 |
2,113 |
1,795 |
2,338 |
||||
| Tangible non-interest expense (Non-GAAP) (2) |
136,033 |
137,395 |
135,339 |
137,180 |
142,630 |
||||
| Less: Merger-related expense |
— |
— |
3 |
(166) |
2,212 |
||||
| Severance expense |
— |
140 |
454 |
1,842 |
304 |
||||
| (Gain) Loss on sale of long-lived assets, net of impairment |
— |
(1,256) |
1,044 |
3,396 |
1,713 |
||||
| Other non-core non-interest expense |
— |
1,177 |
1,091 |
(208) |
242 |
||||
| Core tangible non-interest expense (Non-GAAP) (2) |
$ 136,033 |
$ 137,334 |
$ 132,747 |
$ 132,316 |
$ 138,159 |
||||
| Return on average assets (GAAP) |
0.94 % |
1.02 % |
0.87 % |
0.90 % |
0.86 % |
||||
| Effect of non-core revenues and expenses |
0.00 |
(0.02) |
0.03 |
0.02 |
0.03 |
||||
| Core return on average assets (Non-GAAP) |
0.94 % |
1.00 % |
0.90 % |
0.92 % |
0.89 % |
||||
| Efficiency ratio (GAAP) |
61.9 % |
61.3 % |
63.3 % |
65.0 % |
68.2 % |
||||
| Effect of tax benefit related to tax-exempt income |
(0.9) |
(0.8) |
(0.9) |
(0.8) |
(0.9) |
||||
| Efficiency ratio (TE) (Non-GAAP) (1) |
61.0 % |
60.5 % |
62.4 % |
64.2 % |
67.3 % |
||||
| Effect of amortization of intangibles |
(0.9) |
(0.9) |
(1.0) |
(0.8) |
(1.1) |
||||
| Effect of non-core items |
0.0 |
0.4 |
(1.1) |
(2.3) |
(1.4) |
||||
| Core tangible efficiency ratio (TE) (Non-GAAP) (1) (2) |
60.1 % |
60.0 % |
60.3 % |
61.1 % |
64.8 % |
||||
| Return on average common equity (GAAP) |
7.00 % |
8.05 % |
6.59 % |
7.30 % |
7.09 % |
||||
| Effect of intangibles (2) |
3.30 |
3.85 |
3.30 |
3.65 |
3.73 |
||||
| Effect of non-core revenues and expenses |
0.00 |
(0.26) |
0.37 |
0.25 |
0.36 |
||||
| Core return on average tangible common equity (Non-GAAP) (2) |
10.30 % |
11.64 % |
10.26 % |
11.20 % |
11.18 % |
||||
| Total shareholders' equity (GAAP) |
$ 2,667,110 |
$ 2,637,597 |
$ 2,547,909 |
$ 2,498,835 |
$ 2,483,201 |
||||
| Less: Goodwill and other intangibles |
757,856 |
759,966 |
764,730 |
761,871 |
762,500 |
||||
| Preferred stock |
132,097 |
132,098 |
76,812 |
76,812 |
77,463 |
||||
| Tangible common equity (Non-GAAP) (2) |
$ 1,777,157 |
$ 1,745,533 |
$ 1,706,367 |
$ 1,660,152 |
$ 1,643,238 |
||||
| Total assets (GAAP) |
$ 20,788,566 |
$ 20,160,855 |
$ 20,092,563 |
$ 19,504,068 |
$ 19,534,225 |
||||
| Less: Goodwill and other intangibles |
757,856 |
759,966 |
764,730 |
761,871 |
762,500 |
||||
| Tangible assets (Non-GAAP) (2) |
$ 20,030,710 |
$ 19,400,889 |
$ 19,327,833 |
$ 18,742,197 |
$ 18,771,725 |
||||
| Tangible common equity ratio (Non-GAAP) (2) |
8.87 % |
9.00 % |
8.83 % |
8.86 % |
8.75 % |
||||
| (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. |
|||||||||
SOURCE IBERIABANK Corporation
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