IBERIABANK Corporation Reports Third Quarter Results
LAFAYETTE, La., Oct. 19, 2018 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 131-year-old IBERIABANK (www.iberiabank.com), reported financial results for the third quarter ended September 30, 2018. For the quarter, the Company reported net income available to common shareholders of $97.9 million, or $1.73 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 2018 was $1.74 per common share, compared to $1.00 in the year-ago period, an increase of 74% (refer to press release supplemental tables for a reconciliation of GAAP to non-GAAP metrics). Excluding quarters where we had bargain purchase gains, Core EPS
was a record in the third quarter of 2018.
Daryl G. Byrd, President and Chief Executive Officer, commented, "We are pleased to report another quarter of solid financial performance driven by loan growth, increased revenues, and a reduced expense base. Today, we are providing initial financial guidance for 2019. Our focus on delivering sustainable, profitable returns to our shareholders is reflected in our guidance as we continue to work toward achieving our 2020 Strategic Goals, which we expect to attain in 2019."
Highlights for the third quarter of 2018 and at September 30, 2018:
For the three months ended |
|||||||||||||
GAAP |
Non-GAAP Core |
||||||||||||
3Q18 |
2Q18 |
3Q18 |
2Q18 |
||||||||||
Earnings Per Common Share |
$ |
1.73 |
$ |
1.30 |
$ |
1.74 |
$ |
1.71 |
|||||
Return on Average Assets |
1.34 |
% |
1.01 |
% |
1.35 |
% |
1.32 |
% |
|||||
Return on Average Common Equity |
10.21 |
% |
7.87 |
% |
10.27 |
% |
10.30 |
% |
|||||
Return on Average Tangible Common Equity |
N/A |
N/A |
16.34 |
% |
16.70 |
% |
|||||||
Efficiency Ratio |
54.2 |
% |
63.5 |
% |
54.0 |
% |
56.6 |
% |
|||||
Tangible Efficiency Ratio (TE) |
N/A |
N/A |
52.0 |
% |
54.3 |
% |
|||||||
- On a linked quarter basis, both GAAP and Core EPS improved driven by loan growth, margin stability and expense reduction.
- Revenue growth and declining expense produced positive operating leverage in the quarter.
- Solid returns in 3Q18 allowed the company to achieve previously announced 2020 Strategic Goals for the second consecutive quarter.
- The Company's reported and cash net interest margins declined 2 basis points on a linked quarter basis, to 3.74% and 3.47%, respectively.
- Non-interest expense declined $27.5 million on a linked quarter basis. On a core basis, non-interest expense decreased $6.8 million.
- Total loan growth was $268.1 million, or 5% annualized.
- Total deposits decreased $237.0 million, or -4% annualized. As of September, 30, 2018, total non-interest bearing deposits represented 28% of total deposits. Third quarter deposits were significantly influenced by several large commercial deposit outflows, which were expected.
- Credit metrics remained stable. Classified assets are down 20% from the same time a year ago.
- As previously announced, during 3Q18 the Company closed 22 retail branches and expects to realize $2 million in operating expense savings per quarter.
- During 3Q18, the Company repurchased 363,210 common shares at a weighted average price of $83.63 per common share.
- The Company announced a third quarter cash dividend equal to $0.39 per common share, a 3% increase compared to the common dividend declared in June 2018.
- On October 19, 2018, the Company announced a fourth quarter cash dividend equal to $0.41 per common share, payable on January 25, 2019, to shareholders of record on December 31, 2018. This equates to a 5% increase to the third quarter common dividend. This announcement marks the third common dividend increase in 2018.
4Q18 Special Items
In connection with filing its 2017 income tax returns, the Company anticipates recognizing a non-core, permanent net income tax benefit of approximately $55 million in the fourth quarter of 2018. This anticipated benefit is based on the repricing of its current and deferred income tax position associated with the Tax Cuts and Jobs Act of 2017 following the filing of the Company's remaining state income tax returns and the receipt of written consent from the IRS on a tax accounting method change. The Company expects these items to be finalized in the fourth quarter of 2018.
2019 Financial Guidance
The Company is providing initial financial guidance for 2019 as listed below:
2019 Guidance |
|
Average Earning Assets |
$28.6B ~ $28.9B |
Consolidated Loan Growth |
5% ~ 7% |
Consolidated Deposit Growth |
5% ~ 7% |
Provision Expense |
$35MM ~ $49MM |
Non-Interest Income (Core Basis) |
$215MM ~ $225MM |
Non-Interest Expense (Core Basis) |
$685MM ~ $700MM |
Net Interest Margin |
3.60% ~ 3.70% |
Tax Rate |
22.5% ~ 23.5% |
Preferred Dividend & Unrestricted Shares |
$12.5 ~ $13.5 |
Share Repurchase Activity |
$135MM ~ $150MM |
Credit Quality |
Stable |
- Guidance includes two interest rate increases in 2019.
- Impact of deployment alternatives related to the $55 million non-core permanent tax in 2018 are not included in the guidance at this time. Once received, management and the Board of Directors will evaluate deployment alternatives, which may include increased dividends, additional share repurchases, and/or balance sheet management strategies.
Table A - Summary Financial Results |
||||||||||||||||||
(Dollars in thousands, except per share data) |
||||||||||||||||||
For the Three Months Ended |
||||||||||||||||||
9/30/2018 |
6/30/2018 |
% Change |
9/30/2017 |
% Change |
||||||||||||||
GAAP BASIS: |
||||||||||||||||||
Income available to common shareholders |
$ |
97,866 |
$ |
74,175 |
31.9 |
$ |
26,046 |
275.7 |
||||||||||
Earnings per common share - diluted |
1.73 |
1.30 |
33.1 |
0.49 |
253.1 |
|||||||||||||
Average loans and leases, net of unearned income |
$ |
22,162,373 |
$ |
21,830,720 |
1.5 |
$ |
18,341,154 |
20.8 |
||||||||||
Average total deposits |
23,241,529 |
23,155,871 |
0.4 |
19,785,328 |
17.5 |
|||||||||||||
Net interest margin (TE) (1) |
3.74 |
% |
3.76 |
% |
3.64 |
% |
||||||||||||
Total revenues (2) |
$ |
312,312 |
$ |
310,053 |
0.7 |
$ |
267,726 |
16.7 |
||||||||||
Total non-interest expense (2) |
169,349 |
196,877 |
(14.0) |
200,762 |
(15.6) |
|||||||||||||
Efficiency ratio (2) |
54.2 |
% |
63.5 |
% |
75.0 |
% |
||||||||||||
Return on average assets |
1.34 |
1.01 |
0.45 |
|||||||||||||||
Return on average common equity |
10.21 |
7.87 |
2.92 |
|||||||||||||||
NON-GAAP BASIS (3): |
||||||||||||||||||
Core revenues (2) |
$ |
312,311 |
$ |
310,050 |
0.7 |
$ |
267,968 |
16.5 |
||||||||||
Core non-interest expense (2) |
168,649 |
175,445 |
(3.9) |
161,462 |
4.5 |
|||||||||||||
Core earnings per common share - diluted |
1.74 |
1.71 |
1.8 |
1.00 |
74.0 |
|||||||||||||
Core tangible efficiency ratio (TE) (1) (2) (4) |
52.0 |
% |
54.3 |
% |
57.9 |
% |
||||||||||||
Core return on average assets |
1.35 |
1.32 |
0.87 |
|||||||||||||||
Core return on average common equity |
10.27 |
10.30 |
5.99 |
|||||||||||||||
Core return on average tangible common equity |
16.34 |
16.70 |
8.95 |
|||||||||||||||
Net interest margin (TE) - cash basis (1) |
3.47 |
3.49 |
3.30 |
|||||||||||||||
(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017. |
||||||||||||||||||
(2) Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. The adoption resulted in a reduction of non-interest income and non-interest expense of approximately $2.2 million and had no impact on net income. |
||||||||||||||||||
(3) See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations. |
||||||||||||||||||
(4) Tangible calculations eliminate the effect of goodwill and acquisition-related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable. |
Operating Results
The Company's reported and cash net interest margins declined 2 basis points on a linked quarter basis, to 3.74% and 3.47%, respectively. The Company realized $1.1 million less in recoveries on acquired impaired loans compared to 2Q18.
Net interest income increased $3.1 million, or 1%, on a linked quarter basis. Average loans increased $331.7 million, or 6% annualized, and the associated taxable-equivalent yield increased 11 basis points. All other average earning assets decreased by $52.1 million from the linked quarter. The yield on total earning assets was 11 basis points higher at 4.57% compared to 4.46% in the linked quarter.
Average interest-bearing deposits increased $197.2 million, or 5% annualized, and the average cost of interest-bearing deposits rose 17 basis points to 106 basis points on a linked quarter basis. Total average interest-bearing liabilities increased by $355.3 million, or 8% annualized, and the average cost of interest-bearing liabilities rose 18 basis points to 120 basis points. The total cost of interest-bearing liabilities rose primarily due to an upward repricing of deposits, brokered wholesale CD issuances, and increases in the average rate paid on short-term and long-term FHLB advances. The total cost of funding in 3Q18 was 89 basis points, compared to 75 basis points in 2Q18.
The Company's provision for loan losses increased to $11.1 million on a linked quarter basis and covered net charge-offs in 3Q18 by 124%. The overall increase in provision was mainly attributable to a $741.7 million increase in legacy loans.
In 3Q18, non-interest income decreased $0.9 million, or 2%, compared to 2Q18 primarily as a result of seasonal declines in the Company's fee income businesses. Non-interest income on a linked quarter basis included a decrease of $1.0 million in mortgage income, a decrease of $0.6 million in title revenue, and a decrease of $0.5 million in ATM/debit card fee income. These decreases were offset by an increase of $1.1 million in client derivative activity and $0.6 million in service charges on deposit accounts.
Non-interest expense decreased $27.5 million, or 14%, on a linked quarter basis, primarily due to decreased merger and conversion-related expenses and reduced salaries and employee benefits expenses. During 3Q18, non-interest expense included $3.3 million in branch closure and other impairment expenses, a $2.7 million gain on the early termination of loss share agreements, $1.1 million in compensation-related expenses, and $1.0 million in merger and conversion-related expenses that are considered non-core items by management.
Excluding these items, core non-interest expense decreased $6.8 million, or 4%, primarily driven by decreases of $1.4 million in salary and employee benefits expenses, $1.4 million in occupancy and equipment expenses, $1.3 million in the accrual for mortgage loan repurchase reserves, $1.3 million in professional services expenses, and $0.8 million in marketing and business development expenses.
Branch closure expenses were partially offset by gains on sales of branches previously closed and gains on the termination of loss share agreements acquired in the Sabadell United Bank acquisition and made up the majority of the variance between GAAP and Core EPS.
On a linked quarter basis, the efficiency ratio improved to 54.2% from 63.5%, while the non-GAAP core tangible efficiency ratio improved to 52.0% from 54.3%. The Company continues to focus on cost containment and revenue enhancement efforts to deliver positive operating leverage. Refer to Table A for a summary of financial results on both a GAAP and non-GAAP basis.
Table B - Summary Financial Condition Results |
|||||||||||||||||||||
(Dollars in thousands, except per share data) |
|||||||||||||||||||||
As of and For the Three Months Ended |
|||||||||||||||||||||
9/30/2018 |
6/30/2018 |
% Change |
9/30/2017 |
% Change |
|||||||||||||||||
PERIOD-END BALANCES: |
|||||||||||||||||||||
Total loans and leases, net of unearned income |
$ |
22,343,906 |
$ |
22,075,783 |
1.2 |
$ |
19,795,085 |
12.9 |
|||||||||||||
Total deposits |
23,193,446 |
23,430,458 |
(1.0) |
21,334,271 |
8.7 |
||||||||||||||||
ASSET QUALITY RATIOS: |
|||||||||||||||||||||
Loans 30-89 days past due and still accruing as a percentage of total loans (1) |
0.32 |
% |
0.20 |
% |
0.29 |
% |
|||||||||||||||
Loans 90 days or more past due and still accruing as a percentage of total loans (1) |
0.06 |
0.04 |
0.01 |
||||||||||||||||||
Non-performing assets to total assets (1)(2) |
0.63 |
0.54 |
0.63 |
||||||||||||||||||
Classified assets to total assets (3) |
1.09 |
1.26 |
1.47 |
||||||||||||||||||
CAPITAL RATIOS: |
|||||||||||||||||||||
Tangible common equity ratio (Non-GAAP) (4) (5) |
8.69 |
% |
8.56 |
% |
8.68 |
% |
|||||||||||||||
Tier 1 leverage ratio (6) |
9.65 |
9.54 |
10.17 |
||||||||||||||||||
Total risk-based capital ratio (6) |
12.42 |
12.37 |
12.78 |
||||||||||||||||||
PER COMMON SHARE DATA: |
|||||||||||||||||||||
Book value |
$ |
68.03 |
$ |
67.06 |
1.4 |
$ |
66.74 |
1.9 |
|||||||||||||
Tangible book value (Non-GAAP) (4) (5) |
44.72 |
43.75 |
2.2 |
43.04 |
3.9 |
||||||||||||||||
Closing stock price |
81.35 |
75.80 |
7.3 |
82.15 |
(1.0) |
||||||||||||||||
Cash dividends |
0.39 |
0.38 |
2.6 |
0.37 |
5.4 |
||||||||||||||||
(1) |
Past due and non-accrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans. |
||||||||||||||||||||
(2) |
Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets. Refer to Table 5 for further detail. |
||||||||||||||||||||
(3) |
Classified assets include commercial loans rated substandard or worse and non-performing mortgage and consumer loans and include acquired impaired loans accounted for under ASC 310-30. Classified assets were $328 million, $379 million and $410 million at September 30, 2018, June 30, 2018, and September 30, 2017, respectively. |
||||||||||||||||||||
(4) |
See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations. |
||||||||||||||||||||
(5) |
Tangible calculations eliminate the effect of goodwill and acquisition-related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable. |
||||||||||||||||||||
(6) |
Regulatory capital ratios as of September 30, 2018 are preliminary. |
||||||||||||||||||||
Loans and Other Assets
Total loans increased $268.1 million, or 5% annualized, to $22.3 billion at September 30, 2018. Period-end loan growth during 3Q18 was strongest in the Energy Group (reserve-based lending), South Florida Commercial, Corporate Asset Finance Group (equipment financing business), and the Birmingham, Tampa and Dallas markets. The Company believes it is well-positioned for diversified loan growth based on our strategic presence in significant MSAs in the Southeastern United States.
Table C - Period-End Loans |
||||||||||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||||||||
As of and For the Three Months Ended |
||||||||||||||||||||||||||||||
Linked Qtr Change |
Year/Year Change |
Mix |
||||||||||||||||||||||||||||
9/30/2018 |
6/30/2018 |
9/30/2017 |
$ |
% |
Annualized |
$ |
% |
9/30/2018 |
6/30/2018 |
|||||||||||||||||||||
Legacy loans: |
||||||||||||||||||||||||||||||
Commercial(1) |
$ |
11,971,771 |
$ |
11,500,907 |
$ |
10,295,455 |
470,864 |
4.1 |
16.2 |
% |
1,676,316 |
16.3 |
73.2 |
% |
73.7 |
% |
||||||||||||||
Residential mortgage |
1,836,119 |
1,534,294 |
1,040,990 |
301,825 |
19.7 |
78.0 |
% |
795,129 |
76.4 |
11.2 |
% |
9.8 |
% |
|||||||||||||||||
Consumer |
2,543,872 |
2,574,834 |
2,496,701 |
(30,962) |
(1.2) |
(4.8) |
% |
47,171 |
1.9 |
15.6 |
% |
16.5 |
% |
|||||||||||||||||
Total legacy loans |
16,351,762 |
15,610,035 |
13,833,146 |
741,727 |
4.8 |
18.9 |
% |
2,518,616 |
18.2 |
100.0 |
% |
100.0 |
% |
|||||||||||||||||
Acquired loans: |
||||||||||||||||||||||||||||||
Balance at beginning of period |
6,465,748 |
6,792,168 |
2,062,606 |
(326,420) |
(4.8) |
4,403,142 |
213.5 |
|||||||||||||||||||||||
Loans acquired during the period |
— |
— |
4,026,020 |
— |
— |
(4,026,020) |
N/M |
|||||||||||||||||||||||
Net paydown activity |
(473,604) |
(326,420) |
(126,687) |
(147,184) |
45.1 |
(346,917) |
273.8 |
|||||||||||||||||||||||
Total acquired loans |
5,992,144 |
6,465,748 |
5,961,939 |
(473,604) |
(7.3) |
30,205 |
0.5 |
|||||||||||||||||||||||
Total loans |
$ |
22,343,906 |
$ |
22,075,783 |
$ |
19,795,085 |
268,123 |
1.2 |
2,548,821 |
12.9 |
||||||||||||||||||||
(1) Includes equipment financing leases. |
|||||||||||||||||||||||||||||
N/M= not meaningful |
On an average balance and linked quarter basis, the investment portfolio increased $37.9 million, or 3% annualized, to $4.9 billion, mainly due to purchases of additional investment securities. Approximately 96% of the Company's investment portfolio is in available-for-sale securities, which experience unrealized losses as interest rates rise. On a period-end basis, the investment portfolio equated to $4.8 billion, or 16% of total assets at September 30, 2018. The investment portfolio had an effective duration of 4.0 years at September 30, 2018, up from 3.9 years at June 30, 2018, and a $181.1 million unrealized loss at September 30, 2018, up from an $151.4 million loss at June 30, 2018. The average yield on investment securities increased 1 basis point to 2.43% in 3Q18. The Company holds in its investment portfolio primarily government agency securities. Municipal securities comprised 8% of total investments at September 30, 2018.
Deposits and Funding
Total deposits decreased $237.0 million, or 1%, to $23.2 billion at September 30, 2018. Deposit growth during 3Q18 was strongest in the Dallas, Baton Rouge and New York markets. Third quarter deposits were significantly influenced by several large commercial deposit outflows, which were expected. During the quarter, the Company had continued growth in its number of deposit
accounts, and expects positive deposit trends to resume moving forward. Periodic lumpy inflows and outflows are not unusual given the commercial nature of our franchise.
Table D - Period-End Deposits |
||||||||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||||||
Linked Qtr Change |
Year/Year Change |
Mix |
||||||||||||||||||||||||||
9/30/2018 |
6/30/2018 |
9/30/2017 |
$ |
% |
Annualized |
$ |
% |
9/30/2018 |
6/30/2018 |
|||||||||||||||||||
Non-interest-bearing |
$ |
6,544,926 |
$ |
6,814,441 |
$ |
5,963,943 |
(269,515) |
(4.0) |
(15.9) |
% |
580,983 |
9.7 |
28.2 |
% |
29.1 |
% |
||||||||||||
NOW accounts |
4,247,533 |
4,453,152 |
3,547,761 |
(205,619) |
(4.6) |
(18.3) |
% |
699,772 |
19.7 |
18.3 |
% |
19.0 |
% |
|||||||||||||||
Money market accounts |
8,338,682 |
8,467,906 |
8,321,755 |
(129,224) |
(1.5) |
(6.0) |
% |
16,927 |
0.2 |
36.0 |
% |
36.1 |
% |
|||||||||||||||
Savings accounts |
820,354 |
850,425 |
843,662 |
(30,071) |
(3.5) |
(13.9) |
% |
(23,308) |
(2.8) |
3.5 |
% |
3.6 |
% |
|||||||||||||||
Time deposits |
3,241,951 |
2,844,534 |
2,657,150 |
397,417 |
14.0 |
55.5 |
% |
584,801 |
22.0 |
14.0 |
% |
12.2 |
% |
|||||||||||||||
Total deposits |
$ |
23,193,446 |
$ |
23,430,458 |
$ |
21,334,271 |
(237,012) |
(1.0) |
(4.0) |
% |
1,859,175 |
8.7 |
100.0 |
% |
100.0 |
% |
||||||||||||
Asset Quality
Credit quality remains stable and reflects strength in the economy. On a linked quarter basis, classified assets decreased $51.6 million and were down $82.9 million, or 20%, from the same time a year ago. The Company's classified assets to total assets were 1.09% in 3Q18, down from 1.26% at 2Q18 and 1.47% at 3Q17.
Refer to Table 5 - Loans and Asset Quality Data for further information.
Capital Position
At September 30, 2018, the Company reported a non-GAAP tangible common equity ratio of 8.69%, up 13 basis points compared to June 30, 2018, and the preliminary Tier 1 leverage ratio was 9.65%, up 11 basis points compared to June 30, 2018. The Company's preliminary calculation of its total risk-based capital ratio at September 30, 2018, was 12.42%, up 5 basis points compared to June 30, 2018.
At September 30, 2018, book value per common share was $68.03, up $0.97 per share, compared to June 30, 2018. Tangible book value per common share was $44.72, up $0.97 per share, compared to June 30, 2018. Based on the closing stock price of the Company's common stock of $75.30 per share on October 18, 2018, this price equated to 1.11 times September 30, 2018 book value per common share and 1.68 times September 30, 2018 tangible book value per common share.
Dividends On Capital Stock. The declaration of dividends is at the discretion of the Board of Directors. The following details the recent dividend declarations:
Common Stock. On August 2, 2018, the Company declared a quarterly cash dividend of $0.39 per common share, a 3% increase compared to the common dividend declared in June 2018. The dividend is payable on October 26, 2018, to shareholders of record as of September 28, 2018.
On October 19, 2018, the Company announced a quarterly cash dividend equal to $0.41 per common share, payable on January 25, 2019, to shareholders of record on December 31, 2018. This equated to a 5% increase to the common dividend declared in August 2018. This announcement marks the third common dividend increase in 2018.
Preferred Stock. On July 6, 2018, the Company declared a semi-annual cash dividend of $0.8281 per depositary share of Series B Preferred Stock that was paid on August 1, 2018. On August 2, 2018, the Company declared a quarterly cash dividend of $0.4125 per depositary share of Series C Preferred Stock that is payable on November 1, 2018.
Common Stock Repurchase Program. On May 10, 2018, the Board of Directors authorized the repurchase of up to 1,137,500 shares of the Company's common stock. This repurchase authorization equated to approximately 2% of total common shares outstanding. Stock repurchases under this program will be made from time to time, on the open market or in privately negotiated transactions at the discretion of the management of the Company. The timing of these repurchases will depend on market conditions and other requirements. The Company anticipates executing an active quarterly share repurchase. During 3Q18, the Company repurchased 363,210 common shares, at a weighted average price of $83.63 per common share. At September 30, 2018, there were approximately 709,290 remaining shares that may be repurchased under the current Board-approved plan.
IBERIABANK Corporation
IBERIABANK Corporation is a financial holding company with locations in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, South Carolina, North Carolina, Mississippi, Missouri, and New York offering commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, mortgage, and title insurance services.
The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC". The Company's Series B Preferred Stock and Series C Preferred Stock also trade on the NASDAQ Global Select Market under the symbols "IBKCP" and "IBKCO", respectively. The Company's common stock market capitalization was approximately $4.2 billion, based on the NASDAQ Global Select Market closing stock price on October 18, 2018.
The following 10 investment firms currently provide equity research coverage on the Company:
- Bank of America Merrill Lynch
- FIG Partners, LLC
- Hovde Group, LLC
- Jefferies & Co., Inc.
- Keefe, Bruyette & Woods, Inc.
- Piper Jaffray & Co.
- Raymond James & Associates, Inc.
- Sandler O'Neill + Partners, L.P.
- Stephens, Inc.
- SunTrust Robinson-Humphrey
Conference Call
In association with this earnings release, the Company will host a live conference call to discuss the financial results for the quarter just completed. The telephone conference call will be held on Friday, October 19, 2018, beginning at 8:00 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 9041078. A replay of the call will be available until midnight Central Time on October 26, 2018 by dialing 1-877-344-7529. The confirmation code for the replay is 10124103. 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, debt repayment penalties, and gains, losses, and impairment charges on long-lived assets. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP disclosures are presented in the supplemental tables at the end of this release. Please refer to the supplemental tables for these reconciliations.
Caution About Forward-Looking Statements
This press release contains "forward-looking statements," which may include forecasts of our financial results and condition, expectations for our operations and businesses, and our assumptions for those forecasts and expectations. Do not place undue reliance on forward-looking statements. Due to various factors, actual results may differ materially from our forward-looking statements. Factors that could cause our actual results to differ materially from our forward-looking statements are described under "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Risk Factors" and "Regulation and Supervision" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, and in other documents subsequently filed by the Company with the Securities and Exchange Commission, available at the SEC's website, https://www.sec.gov, and the Company's website, https://www.iberiabank.com. To the extent that statements in this press release relate to future plans, objectives, financial results or performance by the Company, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are generally identified by use of words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology.
Forward-looking statements represent management's beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. All information is as of the date of this press release. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.
Table 1 - IBERIABANK CORPORATION |
|||||||||||||||||||||
FINANCIAL HIGHLIGHTS |
|||||||||||||||||||||
(Dollars in thousands, except per share data) |
|||||||||||||||||||||
As of and For the Three Months Ended |
|||||||||||||||||||||
INCOME DATA: |
9/30/2018 |
6/30/2018 |
% Change |
9/30/2017 |
% Change |
||||||||||||||||
Net interest income |
$ |
259,225 |
$ |
256,113 |
1.2 |
$ |
216,883 |
19.5 |
|||||||||||||
Net interest income (TE) (1) |
260,727 |
257,562 |
1.2 |
219,463 |
18.8 |
||||||||||||||||
Total revenues (2) |
312,312 |
310,053 |
0.7 |
267,726 |
16.7 |
||||||||||||||||
Provision for loan losses |
11,097 |
7,595 |
46.1 |
18,514 |
(40.1) |
||||||||||||||||
Non-interest expense (2) |
169,349 |
196,877 |
(14.0) |
200,762 |
(15.6) |
||||||||||||||||
Net income available to common shareholders |
97,866 |
74,175 |
31.9 |
26,046 |
275.7 |
||||||||||||||||
PER COMMON SHARE DATA: |
|||||||||||||||||||||
Earnings available to common shareholders - basic |
$ |
1.74 |
$ |
1.31 |
32.8 |
$ |
0.49 |
255.1 |
|||||||||||||
Earnings available to common shareholders - diluted |
1.73 |
1.30 |
33.1 |
0.49 |
253.1 |
||||||||||||||||
Core earnings (Non-GAAP) (3) |
1.74 |
1.71 |
1.8 |
1.00 |
74.0 |
||||||||||||||||
Book value |
68.03 |
67.06 |
1.4 |
66.74 |
1.9 |
||||||||||||||||
Tangible book value (Non-GAAP) (3) (4) |
44.72 |
43.75 |
2.2 |
43.04 |
3.9 |
||||||||||||||||
Closing stock price |
81.35 |
75.80 |
7.3 |
82.15 |
(1.0) |
||||||||||||||||
Cash dividends |
0.39 |
0.38 |
2.6 |
0.37 |
5.4 |
||||||||||||||||
KEY RATIOS AND OTHER DATA (7): |
|||||||||||||||||||||
Net interest margin (TE) (1) |
3.74 |
% |
3.76 |
% |
3.64 |
% |
|||||||||||||||
Efficiency ratio (2) |
54.2 |
63.5 |
75.0 |
||||||||||||||||||
Core tangible efficiency ratio (TE) (Non-GAAP) (1) (2) (3) (4) |
52.0 |
54.3 |
57.9 |
||||||||||||||||||
Return on average assets |
1.34 |
1.01 |
0.45 |
||||||||||||||||||
Return on average common equity |
10.21 |
7.87 |
2.92 |
||||||||||||||||||
Core return on average tangible common equity (Non-GAAP) (3)(4) |
16.34 |
16.70 |
8.95 |
||||||||||||||||||
Effective tax rate |
23.1 |
28.8 |
38.8 |
||||||||||||||||||
Full-time equivalent employees |
3,429 |
3,543 |
3,646 |
||||||||||||||||||
CAPITAL RATIOS: |
|||||||||||||||||||||
Tangible common equity ratio (Non-GAAP) (3) (4) |
8.69 |
% |
8.56 |
% |
8.68 |
% |
|||||||||||||||
Tangible common equity to risk-weighted assets (4) |
10.17 |
10.18 |
10.56 |
||||||||||||||||||
Tier 1 leverage ratio (5) |
9.65 |
9.54 |
10.17 |
||||||||||||||||||
Common equity Tier 1 (CET 1) ratio (5) |
10.79 |
10.72 |
10.93 |
||||||||||||||||||
Tier 1 capital ratio (5) |
11.33 |
11.27 |
11.53 |
||||||||||||||||||
Total risk-based capital ratio (5) |
12.42 |
12.37 |
12.78 |
||||||||||||||||||
Common stock dividend payout ratio |
21.8 |
28.9 |
76.5 |
||||||||||||||||||
Classified assets to Tier 1 capital (8) |
11.7 |
13.9 |
16.2 |
||||||||||||||||||
ASSET QUALITY RATIOS: |
|||||||||||||||||||||
Non-performing assets to total assets (6) |
0.63 |
% |
0.54 |
% |
0.63 |
% |
|||||||||||||||
ALLL to total loans and leases |
0.61 |
0.62 |
0.69 |
||||||||||||||||||
Net charge-offs to average loans (annualized) |
0.16 |
0.21 |
0.62 |
||||||||||||||||||
Non-performing assets to total loans and OREO (6) |
0.84 |
0.74 |
0.89 |
||||||||||||||||||
(1) |
Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017. |
||||||||||||||||||||
(2) |
Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. The adoption resulted in a reduction of non-interest income and non-interest expense of approximately $2.2 million and had no impact on net income. |
||||||||||||||||||||
(3) |
See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations. |
||||||||||||||||||||
(4) |
Tangible calculations eliminate the effect of goodwill and acquisition-related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable. |
||||||||||||||||||||
(5) |
Regulatory capital ratios as of September 30, 2018 are preliminary. |
||||||||||||||||||||
(6) |
Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets. For purposes of this table, past due and non-accrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans. |
||||||||||||||||||||
(7) |
All ratios are calculated on an annualized basis for the periods indicated. |
||||||||||||||||||||
(8) |
Classified assets include commercial loans rated substandard or worse and non-performing mortgage and consumer loans and include acquired impaired loans accounted for under ASC 310-30. |
||||||||||||||||||||
Table 2 - IBERIABANK CORPORATION |
|||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED INCOME STATEMENTS |
|||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) |
|||||||||||||||||||||||||||||
For the Three Months Ended |
|||||||||||||||||||||||||||||
Linked Qtr |
Year/Year |
||||||||||||||||||||||||||||
9/30/2018 |
6/30/2018 |
$ |
% |
3/31/2018 |
12/31/2017 |
9/30/2017 |
$ |
% |
|||||||||||||||||||||
Interest income |
$ |
317,067 |
$ |
303,823 |
13,244 |
4.4 |
$ |
270,543 |
$ |
269,703 |
$ |
246,972 |
70,095 |
28.4 |
|||||||||||||||
Interest expense |
57,842 |
47,710 |
10,132 |
21.2 |
37,654 |
34,201 |
30,089 |
27,753 |
92.2 |
||||||||||||||||||||
Net interest income |
259,225 |
256,113 |
3,112 |
1.2 |
232,889 |
235,502 |
216,883 |
42,342 |
19.5 |
||||||||||||||||||||
Provision for loan losses |
11,097 |
7,595 |
3,502 |
46.1 |
7,986 |
14,393 |
18,514 |
(7,417) |
(40.1) |
||||||||||||||||||||
Net interest income after provision for loan losses |
248,128 |
248,518 |
(390) |
(0.2) |
224,903 |
221,109 |
198,369 |
49,759 |
25.1 |
||||||||||||||||||||
Mortgage income |
12,732 |
13,721 |
(989) |
(7.2) |
9,595 |
13,675 |
16,050 |
(3,318) |
(20.7) |
||||||||||||||||||||
Service charges on deposit accounts |
13,520 |
12,950 |
570 |
4.4 |
12,908 |
12,581 |
12,534 |
986 |
7.9 |
||||||||||||||||||||
Title revenue |
6,280 |
6,846 |
(566) |
(8.3) |
5,027 |
5,398 |
5,643 |
637 |
11.3 |
||||||||||||||||||||
Broker commissions(1) |
2,627 |
2,396 |
231 |
9.6 |
2,221 |
1,958 |
2,094 |
533 |
25.5 |
||||||||||||||||||||
ATM/debit card fee income(1) |
2,470 |
2,925 |
(455) |
(15.6) |
2,633 |
2,583 |
2,486 |
(16) |
(0.6) |
||||||||||||||||||||
Income from bank owned life insurance |
1,744 |
1,261 |
483 |
38.3 |
1,282 |
1,267 |
1,263 |
481 |
38.1 |
||||||||||||||||||||
Gain (loss) on sale of available-for-sale securities |
— |
3 |
(3) |
(100.0) |
(59) |
35 |
(242) |
242 |
100.0 |
||||||||||||||||||||
Trust department income |
3,993 |
4,243 |
(250) |
(5.9) |
3,426 |
3,081 |
2,686 |
1,307 |
48.7 |
||||||||||||||||||||
Other non-interest income(1) |
9,721 |
9,595 |
126 |
1.3 |
7,533 |
11,764 |
8,329 |
1,392 |
16.7 |
||||||||||||||||||||
Total non-interest income(1) |
53,087 |
53,940 |
(853) |
(1.6) |
44,566 |
52,342 |
50,843 |
2,244 |
4.4 |
||||||||||||||||||||
Salaries and employee benefits |
101,159 |
107,445 |
(6,286) |
(5.9) |
104,586 |
104,387 |
106,970 |
(5,811) |
(5.4) |
||||||||||||||||||||
Occupancy and equipment |
18,889 |
19,931 |
(1,042) |
(5.2) |
20,047 |
19,211 |
19,139 |
(250) |
(1.3) |
||||||||||||||||||||
Amortization of acquisition intangibles |
5,382 |
6,111 |
(729) |
(11.9) |
5,102 |
4,642 |
4,527 |
855 |
18.9 |
||||||||||||||||||||
Data processing(1) |
9,036 |
9,309 |
(273) |
(2.9) |
12,393 |
11,416 |
12,300 |
(3,264) |
(26.5) |
||||||||||||||||||||
Professional services |
5,519 |
7,160 |
(1,641) |
(22.9) |
7,391 |
9,441 |
22,550 |
(17,031) |
(75.5) |
||||||||||||||||||||
Credit and other loan related expense |
5,117 |
5,190 |
(73) |
(1.4) |
4,618 |
3,170 |
7,532 |
(2,415) |
(32.1) |
||||||||||||||||||||
Other non-interest expense(1) |
24,247 |
41,731 |
(17,484) |
(41.9) |
34,159 |
29,798 |
27,744 |
(3,497) |
(12.6) |
||||||||||||||||||||
Total non-interest expense(1) |
169,349 |
196,877 |
(27,528) |
(14.0) |
188,296 |
182,065 |
200,762 |
(31,413) |
(15.6) |
||||||||||||||||||||
Income before income taxes |
131,866 |
105,581 |
26,285 |
24.9 |
81,173 |
91,386 |
48,450 |
83,416 |
172.2 |
||||||||||||||||||||
Income tax expense |
30,401 |
30,457 |
(56) |
(0.2) |
17,552 |
81,108 |
18,806 |
11,595 |
61.7 |
||||||||||||||||||||
Net income |
101,465 |
75,124 |
26,341 |
35.1 |
63,621 |
10,278 |
29,644 |
71,821 |
242.3 |
||||||||||||||||||||
Less: Preferred stock dividends |
3,599 |
949 |
2,650 |
279.2 |
3,598 |
949 |
3,598 |
1 |
— |
||||||||||||||||||||
Net income available to common shareholders |
$ |
97,866 |
$ |
74,175 |
23,691 |
31.9 |
$ |
60,023 |
$ |
9,329 |
$ |
26,046 |
71,820 |
275.7 |
|||||||||||||||
Income available to common shareholders - basic |
$ |
97,866 |
$ |
74,175 |
23,691 |
31.9 |
$ |
60,023 |
$ |
9,329 |
$ |
26,046 |
71,820 |
275.7 |
|||||||||||||||
Less: Earnings allocated to unvested restricted stock |
908 |
767 |
141 |
18.4 |
639 |
101 |
283 |
625 |
220.8 |
||||||||||||||||||||
Earnings allocated to common shareholders |
$ |
96,958 |
$ |
73,408 |
23,550 |
32.1 |
$ |
59,384 |
$ |
9,228 |
$ |
25,763 |
71,195 |
276.3 |
|||||||||||||||
Earnings per common share - basic |
$ |
1.74 |
$ |
1.31 |
0.43 |
32.8 |
$ |
1.11 |
$ |
0.17 |
$ |
0.49 |
1.25 |
255.1 |
|||||||||||||||
Earnings per common share - diluted |
1.73 |
1.30 |
0.43 |
33.1 |
1.10 |
0.17 |
0.49 |
1.24 |
253.1 |
||||||||||||||||||||
Impact of non-core items (Non-GAAP) (2) |
0.01 |
0.41 |
(0.40) |
(97.6) |
0.27 |
1.16 |
0.51 |
(0.50) |
(98.0) |
||||||||||||||||||||
Earnings per share - diluted, excluding non-core items (Non-GAAP) (2) |
$ |
1.74 |
$ |
1.71 |
0.03 |
1.8 |
$ |
1.37 |
$ |
1.33 |
$ |
1.00 |
0.74 |
74.0 |
|||||||||||||||
NUMBER OF COMMON SHARES OUTSTANDING (in thousands) |
|||||||||||||||||||||||||||||
Weighted average common shares outstanding - basic |
55,571 |
55,931 |
(360) |
(0.6) |
53,616 |
53,287 |
52,424 |
3,147 |
6.0 |
||||||||||||||||||||
Weighted average common shares outstanding - diluted |
55,945 |
56,287 |
(342) |
(0.6) |
53,967 |
53,621 |
52,770 |
3,175 |
6.0 |
||||||||||||||||||||
Book value shares (period end) |
56,007 |
56,390 |
(383) |
(0.7) |
56,779 |
53,872 |
53,864 |
2,143 |
4.0 |
||||||||||||||||||||
(1) Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. On average, the adoption resulted in a reduction of non-interest income and non-interest expense of approximately $2.3 million on a quarterly basis, and had no impact on net income. |
|||||||||||||||||||||||||||||
(2) See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations. |
Table 3 - IBERIABANK CORPORATION |
||||||||||||
CONDENSED CONSOLIDATED INCOME STATEMENTS |
||||||||||||
(Dollars in thousands, except per share data) |
||||||||||||
For the Nine Months Ended |
||||||||||||
Change |
||||||||||||
9/30/2018 |
9/30/2017 |
$ |
% |
|||||||||
Interest income |
$ |
891,433 |
$ |
644,080 |
247,353 |
38.4 |
||||||
Interest expense |
143,206 |
70,736 |
72,470 |
102.5 |
||||||||
Net interest income |
748,227 |
573,344 |
174,883 |
30.5 |
||||||||
Provision for loan losses |
26,678 |
36,718 |
(10,040) |
(27.3) |
||||||||
Net interest income after provision for loan losses |
721,549 |
536,626 |
184,923 |
34.5 |
||||||||
Mortgage income |
36,048 |
49,895 |
(13,847) |
(27.8) |
||||||||
Service charges on deposit accounts |
39,378 |
35,097 |
4,281 |
12.2 |
||||||||
Title revenue |
18,153 |
16,574 |
1,579 |
9.5 |
||||||||
Broker commissions (1) |
7,244 |
7,203 |
41 |
0.6 |
||||||||
ATM/debit card fee income (1) |
8,028 |
7,615 |
413 |
5.4 |
||||||||
Income from bank owned life insurance |
4,287 |
3,815 |
472 |
12.4 |
||||||||
(Loss) gain on sale of available-for-sale securities |
(56) |
(183) |
127 |
69.4 |
||||||||
Trust department income |
11,662 |
6,625 |
5,037 |
76.0 |
||||||||
Other non-interest income (1) |
26,849 |
23,164 |
3,685 |
15.9 |
||||||||
Total non-interest income (1) |
151,593 |
149,805 |
1,788 |
1.2 |
||||||||
Salaries and employee benefits |
313,190 |
275,140 |
38,050 |
13.8 |
||||||||
Occupancy and equipment |
58,867 |
51,452 |
7,415 |
14.4 |
||||||||
Amortization of acquisition intangibles |
16,595 |
7,948 |
8,647 |
108.8 |
||||||||
Data processing (1) |
30,738 |
25,374 |
5,364 |
21.1 |
||||||||
Professional services |
20,070 |
39,104 |
(19,034) |
(48.7) |
||||||||
Credit and other loan related expense |
14,925 |
15,838 |
(913) |
(5.8) |
||||||||
Other non-interest expense (1) |
100,137 |
70,082 |
30,055 |
42.9 |
||||||||
Total non-interest expense (1) |
554,522 |
484,938 |
69,584 |
14.3 |
||||||||
Income before income taxes |
318,620 |
201,493 |
117,127 |
58.1 |
||||||||
Income tax expense |
78,410 |
69,358 |
9,052 |
13.1 |
||||||||
Net income |
240,210 |
132,135 |
108,075 |
81.8 |
||||||||
Less: Preferred stock dividends |
8,146 |
8,146 |
— |
— |
||||||||
Net income available to common shareholders |
$ |
232,064 |
$ |
123,989 |
108,075 |
87.2 |
||||||
Income available to common shareholders - basic |
$ |
232,064 |
$ |
123,989 |
108,075 |
87.2 |
||||||
Less: Earnings allocated to unvested restricted stock |
2,341 |
1,052 |
1,289 |
122.5 |
||||||||
Earnings allocated to common shareholders |
$ |
229,723 |
$ |
122,937 |
106,786 |
86.9 |
||||||
Earnings per common share - basic |
$ |
4.17 |
$ |
2.47 |
1.70 |
68.8 |
||||||
Earnings per common share - diluted |
4.14 |
2.45 |
1.69 |
68.9 |
||||||||
Impact of non-core items (Non-GAAP) (2) |
0.69 |
0.68 |
0.01 |
1.5 |
||||||||
Earnings per share - diluted, excluding non-core items (Non-GAAP) (2) |
$ |
4.83 |
$ |
3.13 |
1.70 |
54.3 |
||||||
NUMBER OF COMMON SHARES OUTSTANDING (in thousands) |
||||||||||||
Weighted average common shares outstanding - basic |
55,047 |
49,749 |
5,298 |
10.6 |
||||||||
Weighted average common shares outstanding - diluted |
55,407 |
50,106 |
5,301 |
10.6 |
||||||||
Book value shares (period end) |
56,007 |
53,864 |
2,143 |
4.0 |
||||||||
(1) Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. The adoption resulted in a reduction of non-interest income and non-interest expense of approximately $6.6 million and had no impact on net income. |
||||||||||||
(2) See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations. |
TABLE 4 - IBERIABANK CORPORATION |
|||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||||||||||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||||||||||||||
PERIOD-END BALANCES |
Linked Qtr Change |
Year/Year Change |
|||||||||||||||||||||||||||||
ASSETS |
9/30/2018 |
6/30/2018 |
$ |
% |
3/31/2018 |
12/31/2017 |
9/30/2017 |
$ |
% |
||||||||||||||||||||||
Cash and due from banks |
$ |
291,083 |
$ |
299,268 |
(8,185) |
(2.7) |
$ |
253,527 |
$ |
319,156 |
$ |
298,173 |
(7,090) |
(2.4) |
|||||||||||||||||
Interest-bearing deposits in other banks |
184,852 |
428,120 |
(243,268) |
(56.8) |
310,565 |
306,568 |
583,043 |
(398,191) |
(68.3) |
||||||||||||||||||||||
Total cash and cash equivalents |
475,935 |
727,388 |
(251,453) |
(34.6) |
564,092 |
625,724 |
881,216 |
(405,281) |
(46.0) |
||||||||||||||||||||||
Investment securities available for sale |
4,634,124 |
4,650,915 |
(16,791) |
(0.4) |
4,542,486 |
4,590,062 |
4,736,339 |
(102,215) |
(2.2) |
||||||||||||||||||||||
Investment securities held to maturity |
213,561 |
221,030 |
(7,469) |
(3.4) |
224,241 |
227,318 |
175,906 |
37,655 |
21.4 |
||||||||||||||||||||||
Total investment securities |
4,847,685 |
4,871,945 |
(24,260) |
(0.5) |
4,766,727 |
4,817,380 |
4,912,245 |
(64,560) |
(1.3) |
||||||||||||||||||||||
Mortgage loans held for sale |
42,976 |
78,843 |
(35,867) |
(45.5) |
110,348 |
134,916 |
141,218 |
(98,242) |
(69.6) |
||||||||||||||||||||||
Loans and leases, net of unearned income |
22,343,906 |
22,075,783 |
268,123 |
1.2 |
21,706,090 |
20,078,181 |
19,795,085 |
2,548,821 |
12.9 |
||||||||||||||||||||||
Allowance for loan and lease losses |
(136,950) |
(136,576) |
(374) |
0.3 |
(144,527) |
(140,891) |
(136,628) |
(322) |
0.2 |
||||||||||||||||||||||
Loans and leases, net |
22,206,956 |
21,939,207 |
267,749 |
1.2 |
21,561,563 |
19,937,290 |
19,658,457 |
2,548,499 |
13.0 |
||||||||||||||||||||||
Premises and equipment, net |
304,605 |
326,213 |
(21,608) |
(6.6) |
329,454 |
331,413 |
330,800 |
(26,195) |
(7.9) |
||||||||||||||||||||||
Goodwill and other intangible assets |
1,313,478 |
1,320,664 |
(7,186) |
(0.5) |
1,338,573 |
1,277,464 |
1,281,479 |
31,999 |
2.5 |
||||||||||||||||||||||
Other assets |
926,752 |
861,902 |
64,850 |
7.5 |
801,880 |
779,942 |
771,220 |
155,532 |
20.2 |
||||||||||||||||||||||
Total assets |
$ |
30,118,387 |
$ |
30,126,162 |
(7,775) |
— |
$ |
29,472,637 |
$ |
27,904,129 |
$ |
27,976,635 |
2,141,752 |
7.7 |
|||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||||||||||||||||
Non-interest-bearing deposits |
$ |
6,544,926 |
$ |
6,814,441 |
(269,515) |
(4.0) |
$ |
6,595,495 |
$ |
6,209,925 |
$ |
5,963,943 |
580,983 |
9.7 |
|||||||||||||||||
NOW accounts |
4,247,533 |
4,453,152 |
(205,619) |
(4.6) |
4,500,181 |
4,348,939 |
3,547,761 |
699,772 |
19.7 |
||||||||||||||||||||||
Savings and money market accounts |
9,159,036 |
9,318,331 |
(159,295) |
(1.7) |
9,146,710 |
8,520,365 |
9,165,417 |
(6,381) |
(0.1) |
||||||||||||||||||||||
Time deposits |
3,241,951 |
2,844,534 |
397,417 |
14.0 |
2,728,806 |
2,387,488 |
2,657,150 |
584,801 |
22.0 |
||||||||||||||||||||||
Total deposits |
23,193,446 |
23,430,458 |
(237,012) |
(1.0) |
22,971,192 |
21,466,717 |
21,334,271 |
1,859,175 |
8.7 |
||||||||||||||||||||||
Short-term borrowings |
790,000 |
595,000 |
195,000 |
32.8 |
375,000 |
475,000 |
975,008 |
(185,008) |
(19.0) |
||||||||||||||||||||||
Securities sold under agreements to repurchase |
452,719 |
459,213 |
(6,494) |
(1.4) |
525,496 |
516,297 |
548,696 |
(95,977) |
(17.5) |
||||||||||||||||||||||
Trust preferred securities |
120,110 |
120,110 |
— |
— |
120,110 |
120,110 |
120,110 |
— |
— |
||||||||||||||||||||||
Other long-term debt |
1,346,700 |
1,318,504 |
28,196 |
2.1 |
1,329,192 |
1,375,725 |
1,007,474 |
339,226 |
33.7 |
||||||||||||||||||||||
Other liabilities |
273,051 |
289,468 |
(16,417) |
(5.7) |
250,740 |
253,489 |
264,302 |
8,749 |
3.3 |
||||||||||||||||||||||
Total liabilities |
26,176,026 |
26,212,753 |
(36,727) |
(0.1) |
25,571,730 |
24,207,338 |
24,249,861 |
1,926,165 |
7.9 |
||||||||||||||||||||||
Total shareholders' equity |
3,942,361 |
3,913,409 |
28,952 |
0.7 |
3,900,907 |
3,696,791 |
3,726,774 |
215,587 |
5.8 |
||||||||||||||||||||||
Total liabilities and shareholders' equity |
$ |
30,118,387 |
$ |
30,126,162 |
(7,775) |
— |
$ |
29,472,637 |
$ |
27,904,129 |
$ |
27,976,635 |
2,141,752 |
7.7 |
|||||||||||||||||
TABLE 4 Continued - IBERIABANK CORPORATION |
|||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||||||||||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||||||||||||||
AVERAGE BALANCES |
Linked Qtr Change |
Year/Year Change |
|||||||||||||||||||||||||||||
ASSETS |
9/30/2018 |
6/30/2018 |
$ |
% |
3/31/2018 |
12/31/2017 |
9/30/2017 |
$ |
% |
||||||||||||||||||||||
Cash and due from banks |
$ |
279,918 |
$ |
296,907 |
(16,989) |
(5.7) |
$ |
308,319 |
$ |
307,328 |
$ |
277,968 |
1,950 |
0.7 |
|||||||||||||||||
Interest-bearing deposits in other banks |
259,455 |
392,906 |
(133,451) |
(34.0) |
486,298 |
538,733 |
615,445 |
(355,990) |
(57.8) |
||||||||||||||||||||||
Total cash and cash equivalents |
539,373 |
689,813 |
(150,440) |
(21.8) |
794,617 |
846,061 |
893,413 |
(354,040) |
(39.6) |
||||||||||||||||||||||
Investment securities available for sale |
4,673,454 |
4,629,177 |
44,277 |
1.0 |
4,544,836 |
4,674,496 |
4,593,798 |
79,656 |
1.7 |
||||||||||||||||||||||
Investment securities held to maturity |
216,419 |
222,764 |
(6,345) |
(2.8) |
226,229 |
191,067 |
114,895 |
101,524 |
88.4 |
||||||||||||||||||||||
Total investment securities |
4,889,873 |
4,851,941 |
37,932 |
0.8 |
4,771,065 |
4,865,563 |
4,708,693 |
181,180 |
3.8 |
||||||||||||||||||||||
Mortgage loans held for sale |
87,823 |
72,917 |
14,906 |
20.4 |
109,027 |
126,216 |
132,309 |
(44,486) |
(33.6) |
||||||||||||||||||||||
Loans and leases, net of unearned income |
22,162,373 |
21,830,720 |
331,653 |
1.5 |
20,181,390 |
19,941,500 |
18,341,154 |
3,821,219 |
20.8 |
||||||||||||||||||||||
Allowance for loan and lease losses |
(139,075) |
(145,565) |
6,490 |
(4.5) |
(144,295) |
(138,927) |
(147,046) |
7,971 |
(5.4) |
||||||||||||||||||||||
Loans and leases, net |
22,023,298 |
21,685,155 |
338,143 |
1.6 |
20,037,095 |
19,802,573 |
18,194,108 |
3,829,190 |
21.0 |
||||||||||||||||||||||
Premises and equipment, net |
315,259 |
327,686 |
(12,427) |
(3.8) |
331,640 |
329,957 |
327,917 |
(12,658) |
(3.9) |
||||||||||||||||||||||
Goodwill and other intangible assets |
1,316,527 |
1,338,420 |
(21,893) |
(1.6) |
1,281,598 |
1,277,293 |
1,047,355 |
269,172 |
25.7 |
||||||||||||||||||||||
Other assets |
874,078 |
804,920 |
69,158 |
8.6 |
807,177 |
787,400 |
793,126 |
80,952 |
10.2 |
||||||||||||||||||||||
Total assets |
$ |
30,046,231 |
$ |
29,770,852 |
275,379 |
0.9 |
$ |
28,132,219 |
$ |
28,035,063 |
$ |
26,096,921 |
3,949,310 |
15.1 |
|||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||||||||||||||||
Non-interest-bearing deposits |
$ |
6,684,343 |
$ |
6,795,878 |
(111,535) |
(1.6) |
$ |
6,278,507 |
$ |
6,176,347 |
$ |
5,601,071 |
1,083,272 |
19.3 |
|||||||||||||||||
NOW accounts |
4,296,392 |
4,494,064 |
(197,672) |
(4.4) |
4,363,557 |
3,987,908 |
3,203,657 |
1,092,735 |
34.1 |
||||||||||||||||||||||
Savings and money market accounts |
9,237,614 |
9,146,302 |
91,312 |
1.0 |
8,664,085 |
8,769,464 |
8,566,873 |
670,741 |
7.8 |
||||||||||||||||||||||
Time deposits |
3,023,180 |
2,719,627 |
303,553 |
11.2 |
2,471,485 |
2,444,403 |
2,413,727 |
609,453 |
25.2 |
||||||||||||||||||||||
Total deposits |
23,241,529 |
23,155,871 |
85,658 |
0.4 |
21,777,634 |
21,378,122 |
19,785,328 |
3,456,201 |
17.5 |
||||||||||||||||||||||
Short-term borrowings |
820,087 |
609,965 |
210,122 |
34.4 |
506,056 |
729,111 |
1,180,165 |
(360,078) |
(30.5) |
||||||||||||||||||||||
Securities sold under agreements to repurchase |
376,078 |
427,508 |
(51,430) |
(12.0) |
477,862 |
494,757 |
439,077 |
(62,999) |
(14.3) |
||||||||||||||||||||||
Trust preferred securities |
120,110 |
120,110 |
— |
— |
120,110 |
120,110 |
120,110 |
— |
— |
||||||||||||||||||||||
Other long-term debt |
1,260,900 |
1,261,515 |
(615) |
— |
1,257,213 |
1,300,114 |
622,655 |
638,245 |
102.5 |
||||||||||||||||||||||
Other liabilities |
292,445 |
281,820 |
10,625 |
3.8 |
275,869 |
264,790 |
273,163 |
19,282 |
7.1 |
||||||||||||||||||||||
Total liabilities |
26,111,149 |
25,856,789 |
254,360 |
1.0 |
24,414,744 |
24,287,004 |
22,420,498 |
3,690,651 |
16.5 |
||||||||||||||||||||||
Total shareholders' equity |
3,935,082 |
3,914,063 |
21,019 |
0.5 |
3,717,475 |
3,748,059 |
3,676,423 |
258,659 |
7.0 |
||||||||||||||||||||||
Total liabilities and shareholders' equity |
$ |
30,046,231 |
$ |
29,770,852 |
275,379 |
0.9 |
$ |
28,132,219 |
$ |
28,035,063 |
$ |
26,096,921 |
3,949,310 |
15.1 |
|||||||||||||||||
Table 5 - IBERIABANK CORPORATION |
|||||||||||||||||||||||||||||||
LOANS AND ASSET QUALITY DATA |
|||||||||||||||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||||||||||||||
Linked Qtr Change |
Year/Year Change |
||||||||||||||||||||||||||||||
LOANS |
9/30/2018 |
6/30/2018 |
$ |
% |
3/31/2018 |
12/31/2017 |
9/30/2017 |
$ |
% |
||||||||||||||||||||||
Commercial loans and leases: |
|||||||||||||||||||||||||||||||
Real estate- construction |
$ |
1,127,988 |
$ |
1,183,367 |
(55,379) |
(4.7) |
$ |
1,199,625 |
$ |
1,240,396 |
$ |
1,298,282 |
(170,294) |
(13.1) |
|||||||||||||||||
Real estate- owner-occupied (1) |
2,458,964 |
2,455,685 |
3,279 |
0.1 |
2,449,513 |
2,375,321 |
2,306,941 |
152,023 |
6.6 |
||||||||||||||||||||||
Real estate- non-owner occupied |
5,794,931 |
5,653,252 |
141,679 |
2.5 |
5,599,813 |
5,322,513 |
5,162,663 |
632,268 |
12.2 |
||||||||||||||||||||||
Commercial and industrial (6) |
5,581,040 |
5,512,416 |
68,624 |
1.2 |
5,325,682 |
5,135,067 |
5,016,437 |
564,603 |
11.3 |
||||||||||||||||||||||
Total commercial loans and leases |
14,962,923 |
14,804,720 |
158,203 |
1.1 |
14,574,633 |
14,073,297 |
13,784,323 |
1,178,600 |
8.6 |
||||||||||||||||||||||
Residential mortgage loans |
4,300,163 |
4,124,538 |
175,625 |
4.3 |
3,971,067 |
3,056,352 |
3,024,970 |
1,275,193 |
42.2 |
||||||||||||||||||||||
Consumer loans: |
|||||||||||||||||||||||||||||||
Home equity |
2,350,176 |
2,410,617 |
(60,441) |
(2.5) |
2,421,186 |
2,292,275 |
2,320,233 |
29,943 |
1.3 |
||||||||||||||||||||||
Other |
730,644 |
735,908 |
(5,264) |
(0.7) |
739,204 |
656,257 |
665,559 |
65,085 |
9.8 |
||||||||||||||||||||||
Total consumer loans |
3,080,820 |
3,146,525 |
(65,705) |
(2.1) |
3,160,390 |
2,948,532 |
2,985,792 |
95,028 |
3.2 |
||||||||||||||||||||||
Total loans and leases |
$ |
22,343,906 |
$ |
22,075,783 |
268,123 |
1.2 |
$ |
21,706,090 |
$ |
20,078,181 |
$ |
19,795,085 |
2,548,821 |
12.9 |
|||||||||||||||||
Allowance for loan and lease losses (2) |
$ |
(136,950) |
$ |
(136,576) |
(374) |
0.3 |
$ |
(144,527) |
$ |
(140,891) |
$ |
(136,628) |
(322) |
0.2 |
|||||||||||||||||
Loans and leases, net |
22,206,956 |
21,939,207 |
267,749 |
1.2 |
21,561,563 |
19,937,290 |
19,658,457 |
2,548,499 |
13.0 |
||||||||||||||||||||||
Reserve for unfunded commitments |
(14,721) |
(14,433) |
(288) |
2.0 |
(13,432) |
(13,208) |
(21,032) |
6,311 |
(30.0) |
||||||||||||||||||||||
Allowance for credit losses |
(151,671) |
(151,009) |
(662) |
0.4 |
(157,959) |
(154,099) |
(157,660) |
5,989 |
(3.8) |
||||||||||||||||||||||
ASSET QUALITY DATA |
|||||||||||||||||||||||||||||||
Non-accrual loans (3) |
$ |
143,595 |
$ |
131,155 |
12,440 |
9.5 |
$ |
153,975 |
$ |
145,388 |
$ |
145,491 |
(1,896) |
(1.3) |
|||||||||||||||||
Other real estate owned and foreclosed assets |
32,418 |
22,267 |
10,151 |
45.6 |
27,117 |
26,533 |
28,338 |
4,080 |
14.4 |
||||||||||||||||||||||
Accruing loans more than 90 days past due (3) |
12,452 |
9,314 |
3,138 |
33.7 |
8,288 |
6,900 |
2,190 |
10,262 |
468.6 |
||||||||||||||||||||||
Total non-performing assets (3)(4) |
$ |
188,465 |
$ |
162,736 |
25,729 |
15.8 |
$ |
189,380 |
$ |
178,821 |
$ |
176,019 |
12,446 |
7.1 |
|||||||||||||||||
Loans 30-89 days past due (3) |
$ |
70,624 |
$ |
43,159 |
27,465 |
63.6 |
$ |
78,293 |
$ |
61,717 |
$ |
58,327 |
12,297 |
21.1 |
|||||||||||||||||
Non-performing assets to total assets (3)(4) |
0.63 |
% |
0.54 |
% |
0.64 |
% |
0.64 |
% |
0.63 |
% |
|||||||||||||||||||||
Non-performing assets to total loans and OREO (3)(4) |
0.84 |
0.74 |
0.87 |
0.89 |
0.89 |
||||||||||||||||||||||||||
ALLL to non-performing loans (3)(5) |
87.8 |
97.2 |
89.1 |
92.5 |
92.5 |
||||||||||||||||||||||||||
ALLL to non-performing assets (3)(4) |
72.7 |
83.9 |
76.3 |
78.8 |
77.6 |
||||||||||||||||||||||||||
ALLL to total loans and leases |
0.61 |
0.62 |
0.67 |
0.70 |
0.69 |
||||||||||||||||||||||||||
Quarter-to-date charge-offs |
$ |
12,006 |
$ |
13,618 |
(1,612) |
(11.8) |
$ |
9,116 |
$ |
12,526 |
$ |
30,460 |
(18,454) |
(60.6) |
|||||||||||||||||
Quarter-to-date recoveries |
(3,049) |
(1,968) |
(1,081) |
54.9 |
(4,813) |
(2,425) |
(1,644) |
(1,405) |
85.5 |
||||||||||||||||||||||
Quarter-to-date net charge-offs |
$ |
8,957 |
$ |
11,650 |
(2,693) |
(23.1) |
$ |
4,303 |
$ |
10,101 |
$ |
28,816 |
(19,859) |
(68.9) |
|||||||||||||||||
Net charge-offs to average loans (annualized) |
0.16 |
% |
0.21 |
% |
0.09 |
% |
0.20 |
% |
0.62 |
% |
|||||||||||||||||||||
(1) Real estate- owner-occupied is defined as loans with a "1E1" Call Report Code (loans secured by owner-occupied non-farm non-residential properties). |
|||||||||||||||||||||||||||||||
(2) The allowance for loan and lease losses includes impairment reserves attributable to acquired impaired loans. |
|||||||||||||||||||||||||||||||
(3) For purposes of this table, past due and non-accrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans. |
|||||||||||||||||||||||||||||||
(4) Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets. |
|||||||||||||||||||||||||||||||
(5) Non-performing loans consist of non-accruing loans and accruing loans 90 days or more past due. |
|||||||||||||||||||||||||||||||
(6) Includes equipment financing leases. |
TABLE 6 - IBERIABANK CORPORATION |
|||||||||||||||||||
QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES |
|||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||
For the Three Months Ended |
|||||||||||||||||||
9/30/2018 |
6/30/2018 |
Basis Point |
|||||||||||||||||
ASSETS |
Average |
Interest |
Yield/Rate |
Average |
Interest |
Yield/Rate |
Yield/Rate |
||||||||||||
Earning assets: |
|||||||||||||||||||
Commercial loans and leases |
$ |
14,825,572 |
$ |
191,014 |
5.13 |
% |
$ |
14,631,985 |
$ |
178,830 |
4.92 |
% |
21 |
||||||
Residential mortgage loans |
4,230,471 |
48,145 |
4.55 |
4,041,259 |
47,215 |
4.67 |
(12) |
||||||||||||
Consumer loans |
3,106,330 |
43,966 |
5.62 |
3,157,476 |
44,431 |
5.64 |
(2) |
||||||||||||
Total loans and leases |
22,162,373 |
283,125 |
5.09 |
21,830,720 |
270,476 |
4.98 |
11 |
||||||||||||
Mortgage loans held for sale |
87,823 |
1,037 |
4.72 |
72,917 |
836 |
4.59 |
13 |
||||||||||||
Investment securities (2) |
5,016,163 |
29,793 |
2.43 |
4,958,769 |
29,325 |
2.42 |
1 |
||||||||||||
Other earning assets |
456,120 |
3,112 |
2.71 |
580,477 |
3,186 |
2.20 |
51 |
||||||||||||
Total earning assets |
27,722,479 |
317,067 |
4.57 |
27,442,883 |
303,823 |
4.46 |
11 |
||||||||||||
Allowance for loan and lease losses |
(139,075) |
(145,565) |
|||||||||||||||||
Non-earning assets |
2,462,827 |
2,473,534 |
|||||||||||||||||
Total assets |
$ |
30,046,231 |
$ |
29,770,852 |
|||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||||
Interest-bearing liabilities: |
|||||||||||||||||||
NOW accounts |
$ |
4,296,392 |
$ |
8,841 |
0.82 |
% |
$ |
4,494,064 |
$ |
8,620 |
0.77 |
% |
5 |
||||||
Savings and money market accounts |
9,237,614 |
23,076 |
0.99 |
9,146,302 |
18,434 |
0.81 |
18 |
||||||||||||
Time deposits |
3,023,180 |
12,484 |
1.64 |
2,719,627 |
9,105 |
1.34 |
30 |
||||||||||||
Total interest-bearing deposits (3) |
16,557,186 |
44,401 |
1.06 |
16,359,993 |
36,159 |
0.89 |
17 |
||||||||||||
Short-term borrowings |
1,196,165 |
4,727 |
1.57 |
1,037,473 |
3,327 |
1.29 |
28 |
||||||||||||
Long-term debt |
1,381,010 |
8,714 |
2.50 |
1,381,625 |
8,224 |
2.39 |
11 |
||||||||||||
Total interest-bearing liabilities |
19,134,361 |
57,842 |
1.20 |
18,779,091 |
47,710 |
1.02 |
18 |
||||||||||||
Non-interest-bearing deposits |
6,684,343 |
6,795,878 |
|||||||||||||||||
Non-interest-bearing liabilities |
292,445 |
281,820 |
|||||||||||||||||
Total liabilities |
26,111,149 |
25,856,789 |
|||||||||||||||||
Total shareholders' equity |
3,935,082 |
3,914,063 |
|||||||||||||||||
Total liabilities and shareholders' equity |
$ |
30,046,231 |
$ |
29,770,852 |
|||||||||||||||
Net interest income/Net interest spread |
$ |
259,225 |
3.37 |
% |
$ |
256,113 |
3.44 |
% |
(7) |
||||||||||
Taxable equivalent benefit |
1,502 |
0.02 |
1,449 |
0.02 |
— |
||||||||||||||
Net interest income (TE)/Net interest margin (TE) (1) |
$ |
260,727 |
3.74 |
% |
$ |
257,562 |
3.76 |
% |
(2) |
||||||||||
(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017. |
|||||||||||||||||||
(2) Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting. |
|||||||||||||||||||
(3) Total deposit costs for the three months ended September 30, 2018 and June 30, 2018 were 0.76% and 0.63%, respectively. |
TABLE 6 Continued - IBERIABANK CORPORATION |
||||||||||||||||||||||||||
QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES |
||||||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||||
For the Three Months Ended |
||||||||||||||||||||||||||
3/31/2018 |
12/31/2017 |
9/30/2017 |
||||||||||||||||||||||||
ASSETS |
Average |
Interest |
Yield/Rate |
Average |
Interest |
Yield/Rate |
Average |
Interest |
Yield/Rate |
|||||||||||||||||
Earning assets: |
||||||||||||||||||||||||||
Commercial loans and leases |
$ |
14,087,635 |
$ |
164,660 |
4.76 |
% |
$ |
13,964,340 |
$ |
163,974 |
4.70 |
% |
$ |
12,951,243 |
$ |
146,003 |
4.52 |
% |
||||||||
Residential mortgage loans |
3,151,775 |
34,494 |
4.38 |
3,049,947 |
35,007 |
4.59 |
2,464,348 |
28,645 |
4.65 |
|||||||||||||||||
Consumer loans |
2,941,980 |
38,915 |
5.36 |
2,927,213 |
38,836 |
5.26 |
2,925,563 |
42,240 |
5.73 |
|||||||||||||||||
Total loans and leases |
20,181,390 |
238,069 |
4.79 |
19,941,500 |
237,817 |
4.77 |
18,341,154 |
216,888 |
4.73 |
|||||||||||||||||
Mortgage loans held for sale |
109,027 |
1,154 |
4.23 |
126,216 |
1,251 |
3.96 |
132,309 |
1,209 |
3.66 |
|||||||||||||||||
Investment securities (2) |
4,843,448 |
28,094 |
2.38 |
4,893,538 |
27,714 |
2.37 |
4,709,526 |
26,246 |
2.32 |
|||||||||||||||||
Other earning assets |
679,902 |
3,226 |
1.92 |
725,042 |
2,921 |
1.60 |
789,223 |
2,629 |
1.32 |
|||||||||||||||||
Total earning assets |
25,813,767 |
270,543 |
4.26 |
25,686,296 |
269,703 |
4.22 |
23,972,212 |
246,972 |
4.14 |
|||||||||||||||||
Allowance for loan and lease losses |
(144,295) |
(138,927) |
(147,046) |
|||||||||||||||||||||||
Non-earning assets |
2,462,747 |
2,487,694 |
2,271,755 |
|||||||||||||||||||||||
Total assets |
$ |
28,132,219 |
$ |
28,035,063 |
$ |
26,096,921 |
||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||||||||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||||||||
NOW accounts |
$ |
4,363,557 |
$ |
7,081 |
0.66 |
% |
$ |
3,987,908 |
$ |
5,404 |
0.54 |
% |
$ |
3,203,657 |
$ |
4,384 |
0.54 |
% |
||||||||
Savings and money market accounts |
8,664,085 |
14,579 |
0.68 |
8,769,464 |
13,345 |
0.60 |
8,566,873 |
11,650 |
0.54 |
|||||||||||||||||
Time deposits |
2,471,485 |
6,584 |
1.08 |
2,444,403 |
6,115 |
0.99 |
2,413,727 |
5,766 |
0.95 |
|||||||||||||||||
Total interest-bearing deposits (3) |
15,499,127 |
28,244 |
0.74 |
15,201,775 |
24,864 |
0.65 |
14,184,257 |
21,800 |
0.61 |
|||||||||||||||||
Short-term borrowings |
983,918 |
2,524 |
1.04 |
1,223,868 |
2,901 |
0.94 |
1,619,242 |
4,152 |
1.02 |
|||||||||||||||||
Long-term debt |
1,377,323 |
6,886 |
2.03 |
1,420,224 |
6,436 |
1.80 |
742,765 |
4,137 |
2.21 |
|||||||||||||||||
Total interest-bearing liabilities |
17,860,368 |
37,654 |
0.86 |
17,845,867 |
34,201 |
0.76 |
16,546,264 |
30,089 |
0.72 |
|||||||||||||||||
Non-interest-bearing deposits |
6,278,507 |
6,176,347 |
5,601,071 |
|||||||||||||||||||||||
Non-interest-bearing liabilities |
275,869 |
264,790 |
273,163 |
|||||||||||||||||||||||
Total liabilities |
24,414,744 |
24,287,004 |
22,420,498 |
|||||||||||||||||||||||
Total shareholders' equity |
3,717,475 |
3,748,059 |
3,676,423 |
|||||||||||||||||||||||
Total liabilities and shareholders' equity |
$ |
28,132,219 |
$ |
28,035,063 |
$ |
26,096,921 |
||||||||||||||||||||
Net interest income/Net interest spread |
$ |
232,889 |
3.40 |
% |
$ |
235,502 |
3.46 |
% |
$ |
216,883 |
3.42 |
% |
||||||||||||||
Taxable equivalent benefit |
1,464 |
0.02 |
2,808 |
0.04 |
2,580 |
0.04 |
||||||||||||||||||||
Net interest income (TE)/Net interest margin (TE) (1) |
$ |
234,353 |
3.67 |
% |
$ |
238,310 |
3.69 |
% |
$ |
219,463 |
3.64 |
% |
||||||||||||||
(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017. |
||||||||||||||||||||||||||
(2) Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting. |
||||||||||||||||||||||||||
(3) Total deposit costs for the three months ended March 31, 2018, December 31, 2017, and September 30, 2017, were 0.53%, 0.46% and 0.44%, respectively. |
TABLE 7 - IBERIABANK CORPORATION |
|||||||||||||||||||
YEAR-TO-DATE AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES |
|||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||
For the Nine Months Ended |
|||||||||||||||||||
9/30/2018 |
9/30/2017 |
Basis Point |
|||||||||||||||||
ASSETS |
Average |
Interest |
Yield/Rate |
Average |
Interest |
Yield/Rate |
Yield/Rate |
||||||||||||
Earning assets: |
|||||||||||||||||||
Commercial loans and leases |
$ |
14,517,767 |
$ |
534,504 |
4.94 |
% |
$ |
11,676,048 |
$ |
392,909 |
4.55 |
% |
39 |
||||||
Residential mortgage loans |
3,811,786 |
129,854 |
4.54 |
1,689,905 |
55,838 |
4.41 |
13 |
||||||||||||
Consumer loans |
3,069,198 |
127,312 |
5.55 |
2,869,756 |
116,383 |
5.42 |
13 |
||||||||||||
Total loans and leases |
21,398,751 |
791,670 |
4.96 |
16,235,709 |
565,130 |
4.69 |
27 |
||||||||||||
Mortgage loans held for sale |
89,845 |
3,027 |
4.49 |
150,873 |
3,429 |
3.03 |
146 |
||||||||||||
Investment securities (2) |
4,940,093 |
87,212 |
2.41 |
4,163,596 |
68,480 |
2.30 |
11 |
||||||||||||
Other earning assets |
571,346 |
9,524 |
2.23 |
852,908 |
7,041 |
1.11 |
112 |
||||||||||||
Total earning assets |
27,000,035 |
891,433 |
4.43 |
21,403,086 |
644,080 |
4.07 |
36 |
||||||||||||
Allowance for loan and lease losses |
(142,960) |
(146,280) |
|||||||||||||||||
Non-earning assets |
2,466,370 |
2,026,028 |
|||||||||||||||||
Total assets |
$ |
29,323,445 |
$ |
23,282,834 |
|||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||||
Interest-bearing liabilities: |
|||||||||||||||||||
NOW accounts |
$ |
4,384,425 |
$ |
24,542 |
0.75 |
% |
$ |
3,188,866 |
$ |
10,981 |
0.46 |
% |
29 |
||||||
Savings and money market accounts |
9,018,101 |
56,089 |
0.83 |
7,624,362 |
29,009 |
0.51 |
32 |
||||||||||||
Time deposits |
2,740,119 |
28,173 |
1.37 |
2,155,112 |
14,980 |
0.93 |
44 |
||||||||||||
Total interest-bearing deposits (3) |
16,142,645 |
108,804 |
0.90 |
12,968,340 |
54,970 |
0.57 |
33 |
||||||||||||
Short-term borrowings |
1,073,296 |
10,578 |
1.32 |
798,553 |
4,655 |
0.78 |
54 |
||||||||||||
Long-term debt |
1,380,000 |
23,824 |
2.31 |
663,752 |
11,111 |
2.24 |
7 |
||||||||||||
Total interest-bearing liabilities |
18,595,941 |
143,206 |
1.03 |
14,430,645 |
70,736 |
0.66 |
37 |
||||||||||||
Non-interest-bearing deposits |
6,587,729 |
5,192,491 |
|||||||||||||||||
Non-interest-bearing liabilities |
283,438 |
232,130 |
|||||||||||||||||
Total liabilities |
25,467,108 |
19,855,266 |
|||||||||||||||||
Total shareholders' equity |
3,856,337 |
3,427,568 |
|||||||||||||||||
Total liabilities and shareholders' equity |
$ |
29,323,445 |
$ |
23,282,834 |
|||||||||||||||
Net interest income/Net interest spread |
$ |
748,227 |
3.40 |
% |
$ |
573,344 |
3.41 |
% |
(1) |
||||||||||
Tax-equivalent benefit |
4,482 |
0.02 |
7,543 |
0.05 |
(3) |
||||||||||||||
Net interest income (TE)/Net interest margin (TE) (1) |
$ |
752,709 |
3.72 |
% |
$ |
580,887 |
3.63 |
% |
9 |
||||||||||
(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017. |
|||||||||||||||||||
(2) Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting. |
|||||||||||||||||||
(3) Total deposit costs for the nine months ended September 30, 2018 and 2017 were 0.64% and 0.40%, respectively. |
Table 8 - IBERIABANK CORPORATION |
||||||||||||||||||||||||||||||||||||||||||||
LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS |
||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) |
||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended |
||||||||||||||||||||||||||||||||||||||||||||
9/30/2018 |
6/30/2018 |
3/31/2018 |
12/31/2017 |
9/30/2017 |
||||||||||||||||||||||||||||||||||||||||
AS REPORTED (US GAAP) |
Income |
Average |
Yield |
Income |
Average |
Yield |
Income |
Average |
Yield |
Income |
Average |
Yield |
Income |
Average |
Yield |
|||||||||||||||||||||||||||||
Legacy loans, net |
$ |
193 |
$ |
15,957 |
4.80 |
% |
$ |
179 |
$ |
15,217 |
4.73 |
% |
$ |
166 |
$ |
14,556 |
4.61 |
% |
$ |
157 |
$ |
14,235 |
4.39 |
% |
$ |
148 |
$ |
13,638 |
4.29 |
% |
||||||||||||||
Acquired loans |
90 |
6,205 |
5.78 |
91 |
6,614 |
5.51 |
72 |
5,625 |
5.20 |
81 |
5,706 |
5.61 |
69 |
4,703 |
5.86 |
|||||||||||||||||||||||||||||
Total loans |
$ |
283 |
$ |
22,162 |
5.08 |
% |
$ |
270 |
$ |
21,831 |
4.97 |
% |
$ |
238 |
$ |
20,181 |
4.77 |
% |
$ |
238 |
$ |
19,941 |
4.74 |
% |
$ |
217 |
$ |
18,341 |
4.70 |
% |
||||||||||||||
9/30/2018 |
6/30/2018 |
3/31/2018 |
12/31/2017 |
9/30/2017 |
||||||||||||||||||||||||||||||||||||||||
ADJUSTMENTS |
Income |
Average |
Yield |
Income |
Average |
Yield |
Income |
Average |
Yield |
Income |
Average |
Yield |
Income |
Average |
Yield |
|||||||||||||||||||||||||||||
Legacy loans, net |
$ |
— |
$ |
— |
0.00 |
% |
$ |
— |
$ |
— |
0.00 |
% |
$ |
— |
$ |
— |
0.00 |
% |
$ |
— |
$ |
— |
0.00 |
% |
$ |
— |
$ |
— |
0.00 |
% |
||||||||||||||
Acquired loans |
(17) |
144 |
(1.23) |
(16) |
142 |
(1.12) |
(15) |
142 |
(1.16) |
(21) |
161 |
(1.60) |
(20) |
120 |
(1.76) |
|||||||||||||||||||||||||||||
Total loans |
$ |
(17) |
$ |
144 |
(0.35) |
% |
$ |
(16) |
$ |
142 |
(0.34) |
% |
$ |
(15) |
$ |
142 |
(0.32) |
% |
$ |
(21) |
$ |
161 |
(0.46) |
% |
$ |
(20) |
$ |
120 |
(0.45) |
% |
||||||||||||||
9/30/2018 |
6/30/2018 |
3/31/2018 |
12/31/2017 |
9/30/2017 |
||||||||||||||||||||||||||||||||||||||||
AS ADJUSTED (CASH YIELD, NON-GAAP) |
Income |
Average |
Yield |
Income |
Average |
Yield |
Income |
Average |
Yield |
Income |
Average |
Yield |
Income |
Average |
Yield |
|||||||||||||||||||||||||||||
Legacy loans, net |
$ |
193 |
$ |
15,957 |
4.80 |
% |
$ |
179 |
$ |
15,217 |
4.73 |
% |
$ |
166 |
$ |
14,556 |
4.61 |
% |
$ |
157 |
$ |
14,235 |
4.39 |
% |
$ |
148 |
$ |
13,638 |
4.29 |
% |
||||||||||||||
Acquired loans |
73 |
6,349 |
4.55 |
75 |
6,756 |
4.39 |
57 |
5,767 |
4.04 |
60 |
5,867 |
4.01 |
49 |
4,823 |
4.10 |
|||||||||||||||||||||||||||||
Total loans |
$ |
266 |
$ |
22,306 |
4.73 |
% |
$ |
254 |
$ |
21,973 |
4.63 |
% |
$ |
223 |
$ |
20,323 |
4.45 |
% |
$ |
217 |
$ |
20,102 |
4.28 |
% |
$ |
197 |
$ |
18,461 |
4.25 |
% |
||||||||||||||
Table 9 - IBERIABANK CORPORATION |
|||||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) |
|||||||||||||||||||||||||||||||||||
For the Three Months Ended |
|||||||||||||||||||||||||||||||||||
9/30/2018 |
6/30/2018 |
3/31/2018 |
|||||||||||||||||||||||||||||||||
Pre-tax |
After-tax |
Per share (2) |
Pre-tax |
After-tax |
Per share (2) |
Pre-tax |
After-tax |
Per share (2) |
|||||||||||||||||||||||||||
Net income |
$ |
131,866 |
$ |
101,465 |
$ |
1.79 |
$ |
105,581 |
$ |
75,124 |
$ |
1.32 |
$ |
81,173 |
$ |
63,621 |
$ |
1.17 |
|||||||||||||||||
Less: Preferred stock dividends |
— |
3,599 |
0.06 |
— |
949 |
0.02 |
— |
3,598 |
0.07 |
||||||||||||||||||||||||||
Income available to common shareholders (GAAP) |
$ |
131,866 |
$ |
97,866 |
$ |
1.73 |
$ |
105,581 |
$ |
74,175 |
$ |
1.30 |
$ |
81,173 |
$ |
60,023 |
$ |
1.10 |
|||||||||||||||||
Non-interest income adjustments (1)(3): |
|||||||||||||||||||||||||||||||||||
(Gain) loss on sale of investments and other non-interest income |
(1) |
(1) |
— |
(3) |
(2) |
— |
59 |
44 |
— |
||||||||||||||||||||||||||
Non-interest expense adjustments (1)(3): |
|||||||||||||||||||||||||||||||||||
Merger-related expense |
973 |
743 |
0.01 |
14,333 |
11,012 |
0.20 |
16,227 |
12,517 |
0.23 |
||||||||||||||||||||||||||
Compensation-related expense |
1,104 |
839 |
0.01 |
1,781 |
1,354 |
0.02 |
1,221 |
928 |
0.02 |
||||||||||||||||||||||||||
Impairment of long-lived assets, net of (gain) loss on sale |
3,286 |
2,497 |
0.05 |
5,413 |
4,114 |
0.07 |
2,074 |
1,576 |
0.03 |
||||||||||||||||||||||||||
Gain on early termination of loss share agreements |
(2,708) |
(2,058) |
(0.04) |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||
Other non-core non-interest expense |
(1,955) |
(1,486) |
(0.02) |
(95) |
(72) |
— |
(683) |
(520) |
(0.01) |
||||||||||||||||||||||||||
Total non-interest expense adjustments |
700 |
535 |
0.01 |
21,432 |
16,408 |
0.29 |
18,839 |
14,501 |
0.27 |
||||||||||||||||||||||||||
Income tax expense (benefit) - provisional impact of TCJA (4) |
— |
— |
— |
— |
6,572 |
0.12 |
— |
— |
— |
||||||||||||||||||||||||||
Income tax expense (benefit) - other |
— |
— |
— |
— |
— |
— |
— |
173 |
— |
||||||||||||||||||||||||||
Core earnings (Non-GAAP) |
132,565 |
98,400 |
1.74 |
127,010 |
97,153 |
1.71 |
100,071 |
74,741 |
1.37 |
||||||||||||||||||||||||||
Provision for loan losses (1) |
11,097 |
8,434 |
7,595 |
5,772 |
7,986 |
6,069 |
|||||||||||||||||||||||||||||
Pre-provision earnings, as adjusted (Non-GAAP) (3) |
$ |
143,662 |
$ |
106,834 |
$ |
134,605 |
$ |
102,925 |
$ |
108,057 |
$ |
80,810 |
|||||||||||||||||||||||
For the Three Months Ended |
|||||||||||||||||||||||||||||||||||
12/31/2017 |
9/30/2017 |
||||||||||||||||||||||||||||||||||
Pre-tax |
After-tax |
Per share (2) |
Pre-tax |
After-tax |
Per share (2) |
||||||||||||||||||||||||||||||
Net income |
$ |
91,386 |
$ |
10,278 |
$ |
0.19 |
$ |
48,450 |
$ |
29,644 |
$ |
0.56 |
|||||||||||||||||||||||
Less: Preferred stock dividends |
— |
949 |
0.02 |
— |
3,598 |
0.07 |
|||||||||||||||||||||||||||||
Income available to common shareholders (GAAP) |
$ |
91,386 |
$ |
9,329 |
$ |
0.17 |
$ |
48,450 |
$ |
26,046 |
$ |
0.49 |
|||||||||||||||||||||||
Non-interest income adjustments (1)(3): |
|||||||||||||||||||||||||||||||||||
(Gain) loss on sale of investments and other non-interest income |
(35) |
(22) |
— |
242 |
157 |
— |
|||||||||||||||||||||||||||||
Non-interest expense adjustments (1)(3): |
|||||||||||||||||||||||||||||||||||
Merger-related expense |
11,373 |
8,487 |
0.16 |
28,478 |
19,255 |
0.36 |
|||||||||||||||||||||||||||||
Compensation-related expense |
1,457 |
947 |
0.01 |
1,092 |
710 |
0.02 |
|||||||||||||||||||||||||||||
Impairment of long-lived assets, net of (gain) loss on sale |
3,177 |
2,065 |
0.04 |
3,661 |
2,380 |
0.04 |
|||||||||||||||||||||||||||||
Litigation expense |
— |
1,228 |
0.02 |
5,692 |
4,696 |
0.09 |
|||||||||||||||||||||||||||||
Other non-core non-interest expense |
467 |
358 |
0.01 |
377 |
245 |
— |
|||||||||||||||||||||||||||||
Total non-interest expense adjustments |
16,474 |
13,085 |
0.24 |
39,300 |
27,286 |
0.51 |
|||||||||||||||||||||||||||||
Income tax expense (benefit) - provisional impact of TCJA (4) |
— |
51,023 |
0.94 |
— |
— |
— |
|||||||||||||||||||||||||||||
Income tax expense (benefit) - other |
— |
(1,237) |
(0.02) |
— |
— |
— |
|||||||||||||||||||||||||||||
Core earnings (Non-GAAP) |
107,825 |
72,178 |
1.33 |
87,992 |
53,489 |
1.00 |
|||||||||||||||||||||||||||||
Provision for loan losses (1) |
14,393 |
9,355 |
18,514 |
12,034 |
|||||||||||||||||||||||||||||||
Pre-provision earnings, as adjusted (Non-GAAP) (3) |
$ |
122,218 |
$ |
81,533 |
$ |
106,506 |
$ |
65,523 |
|||||||||||||||||||||||||||
(1) Excluding preferred stock dividends, merger-related expense, and litigation expense, after-tax amounts are calculated using a tax rate of 24% in 2018 and 35% in 2017, which approximates the marginal tax rate. |
|||||||||||||||||||||||||||||||||||
(2) Diluted per share amounts may not appear to foot due to rounding. |
|||||||||||||||||||||||||||||||||||
(3) Adjustments to GAAP results include certain significant activities or transactions that, in management's opinion, can distort period-to-period comparisons of the Company's performance. These adjustments include, but are not limited to, realized and unrealized gains or losses on former bank-owned real estate, realized gains or losses on the sale of investment securities, merger-related expenses, litigation charges and recoveries, debt prepayment penalties, and gains, losses, and impairment charges on long-lived assets. |
|||||||||||||||||||||||||||||||||||
(4) Estimated net impact of the Tax Cuts and Jobs Act ("TCJA") enacted on December 22, 2017 is subject to refinement in future periods as further information becomes available. |
For the Nine Months Ended |
||||||||||||||||||||||||
9/30/2018 |
9/30/2017 |
|||||||||||||||||||||||
Pre-tax |
After-tax |
Per share (2) |
Pre-tax |
After-tax |
Per share (2) |
|||||||||||||||||||
Net income |
$ |
318,620 |
$ |
240,210 |
$ |
4.29 |
$ |
201,493 |
$ |
132,135 |
$ |
2.61 |
||||||||||||
Less: Preferred stock dividends |
— |
8,146 |
0.15 |
— |
8,146 |
0.16 |
||||||||||||||||||
Income available to common shareholders (GAAP) |
$ |
318,620 |
$ |
232,064 |
$ |
4.14 |
$ |
201,493 |
$ |
123,989 |
$ |
2.45 |
||||||||||||
Non-interest income adjustments (1)(3): |
||||||||||||||||||||||||
(Gain) loss on sale of investments and other non-interest income |
55 |
41 |
— |
183 |
119 |
— |
||||||||||||||||||
Non-interest expense adjustments (1)(3): |
||||||||||||||||||||||||
Merger-related expense |
31,533 |
24,272 |
0.44 |
29,598 |
20,079 |
0.40 |
||||||||||||||||||
Compensation-related expense |
4,106 |
3,121 |
0.06 |
1,568 |
1,019 |
0.02 |
||||||||||||||||||
Impairment of long-lived assets, net of (gain) loss on sale |
10,773 |
8,187 |
0.15 |
3,784 |
2,460 |
0.05 |
||||||||||||||||||
Gain on early termination of loss share agreements |
(2,708) |
(2,058) |
(0.04) |
— |
— |
— |
||||||||||||||||||
Litigation expense |
— |
— |
— |
11,692 |
10,177 |
0.20 |
||||||||||||||||||
Other non-core non-interest expense |
(2,733) |
(2,078) |
(0.04) |
377 |
245 |
0.01 |
||||||||||||||||||
Total non-interest expense adjustments |
40,971 |
31,444 |
0.57 |
47,019 |
33,980 |
0.68 |
||||||||||||||||||
Income tax expense (benefit) - provisional impact of TCJA (4) |
— |
6,572 |
0.12 |
— |
— |
— |
||||||||||||||||||
Income tax expense (benefit) - other |
— |
173 |
— |
— |
— |
— |
||||||||||||||||||
Core earnings (Non-GAAP) |
359,646 |
270,294 |
4.83 |
248,695 |
158,088 |
3.13 |
||||||||||||||||||
Provision for loan losses (1) |
26,678 |
20,275 |
36,718 |
23,867 |
||||||||||||||||||||
Pre-provision earnings, as adjusted (Non-GAAP) (3) |
$ |
386,324 |
$ |
290,569 |
$ |
285,413 |
$ |
181,955 |
||||||||||||||||
(1) Excluding preferred stock dividends, merger-related expense, and litigation expense, after-tax amounts are calculated using a tax rate of 24% in 2018 and 35% in 2017, which approximates the marginal tax rate. |
|||||||||||||||||||||||||||||
(2) Diluted per share amounts may not appear to foot due to rounding. |
|||||||||||||||||||||||||||||
(3) Adjustments to GAAP results include certain significant activities or transactions that, in management's opinion, can distort period-to-period comparisons of the Company's performance. These adjustments include, but are not limited to, realized and unrealized gains or losses on former bank-owned real estate, realized gains or losses on the sale of investment securities, merger-related expenses, litigation charges and recoveries, debt prepayment penalties, and gains, losses, and impairment charges on long-lived assets. |
|||||||||||||||||||||||||||||
(4) Estimated net impact of the Tax Cuts and Jobs Act ("TCJA") enacted on December 22, 2017 is subject to refinement in future periods as further information becomes available. |
Table 10 - IBERIABANK CORPORATION |
|||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||
For the Three Months Ended |
|||||||||||||||||||
9/30/2018 |
6/30/2018 |
3/31/2018 |
12/31/2017 |
9/30/2017 |
|||||||||||||||
Net interest income (GAAP) |
$ |
259,225 |
$ |
256,113 |
$ |
232,889 |
$ |
235,502 |
$ |
216,883 |
|||||||||
Taxable equivalent benefit |
1,502 |
1,449 |
1,464 |
2,808 |
2,580 |
||||||||||||||
Net interest income (TE) (Non-GAAP) (1) |
260,727 |
257,562 |
234,353 |
238,310 |
219,463 |
||||||||||||||
Non-interest income (GAAP) (3) |
53,087 |
53,940 |
44,566 |
52,342 |
50,843 |
||||||||||||||
Taxable equivalent benefit |
463 |
336 |
341 |
683 |
680 |
||||||||||||||
Non-interest income (TE) (Non-GAAP) (1) (3) |
53,550 |
54,276 |
44,907 |
53,025 |
51,523 |
||||||||||||||
Taxable equivalent revenues (Non-GAAP) (1) (3) |
314,277 |
311,838 |
279,260 |
291,335 |
270,986 |
||||||||||||||
Securities (gains) losses and other non-interest income |
(1) |
(3) |
59 |
(35) |
242 |
||||||||||||||
Core taxable equivalent revenues (Non-GAAP) (1) (3) |
$ |
314,276 |
$ |
311,835 |
$ |
279,319 |
$ |
291,300 |
$ |
271,228 |
|||||||||
Total non-interest expense (GAAP) (3) |
$ |
169,349 |
$ |
196,877 |
$ |
188,296 |
$ |
182,065 |
$ |
200,762 |
|||||||||
Less: Intangible amortization expense |
5,382 |
6,111 |
5,102 |
4,642 |
4,527 |
||||||||||||||
Tangible non-interest expense (Non-GAAP) (2) (3) |
163,967 |
190,766 |
183,194 |
177,423 |
196,235 |
||||||||||||||
Less: Merger-related expense |
973 |
14,333 |
16,227 |
11,373 |
28,478 |
||||||||||||||
Compensation-related expense |
1,104 |
1,781 |
1,221 |
1,457 |
1,092 |
||||||||||||||
Impairment of long-lived assets, net of (gain) loss on sale |
3,286 |
5,413 |
2,074 |
3,177 |
3,661 |
||||||||||||||
Gain on early termination of loss share agreements |
(2,708) |
— |
— |
— |
— |
||||||||||||||
Litigation expense |
— |
— |
— |
— |
5,692 |
||||||||||||||
Other non-core non-interest expense |
(1,955) |
(95) |
(683) |
467 |
377 |
||||||||||||||
Core tangible non-interest expense (Non-GAAP) (2) (3) |
$ |
163,267 |
$ |
169,334 |
$ |
164,355 |
$ |
160,949 |
$ |
156,935 |
|||||||||
Return on average assets (GAAP) |
1.34 |
% |
1.01 |
% |
0.92 |
% |
0.15 |
% |
0.45 |
% |
|||||||||
Effect of non-core revenues and expenses |
0.01 |
0.31 |
0.21 |
0.88 |
0.42 |
||||||||||||||
Core return on average assets (Non-GAAP) |
1.35 |
% |
1.32 |
% |
1.13 |
% |
1.03 |
% |
0.87 |
% |
|||||||||
Efficiency ratio (GAAP) (3) |
54.2 |
% |
63.5 |
% |
67.9 |
% |
63.3 |
% |
75.0 |
% |
|||||||||
Effect of tax benefit related to tax-exempt income (3) |
(0.3) |
(0.4) |
(0.5) |
(0.8) |
(1.0) |
||||||||||||||
Efficiency ratio (TE) (Non-GAAP) (1) (3) |
53.9 |
% |
63.1 |
% |
67.4 |
% |
62.5 |
% |
74.0 |
% |
|||||||||
Effect of amortization of intangibles |
(1.7) |
(1.9) |
(1.8) |
(1.6) |
(1.7) |
||||||||||||||
Effect of non-core items |
(0.2) |
(6.9) |
(6.8) |
(5.6) |
(14.4) |
||||||||||||||
Core tangible efficiency ratio (TE) (Non-GAAP) (1) (2) (3) |
52.0 |
% |
54.3 |
% |
58.8 |
% |
55.3 |
% |
57.9 |
% |
|||||||||
Return on average common equity (GAAP) |
10.21 |
% |
7.87 |
% |
6.79 |
% |
1.02 |
% |
2.92 |
% |
|||||||||
Effect of non-core revenues and expenses |
0.06 |
2.43 |
1.66 |
6.90 |
3.07 |
||||||||||||||
Core return on average common equity (Non-GAAP) |
10.27 |
% |
10.30 |
% |
8.45 |
% |
7.92 |
% |
5.99 |
% |
|||||||||
Effect of intangibles (2) |
6.07 |
6.40 |
5.38 |
4.81 |
2.96 |
||||||||||||||
Core return on average tangible common equity (Non-GAAP) (2) |
16.34 |
% |
16.70 |
% |
13.83 |
% |
12.73 |
% |
8.95 |
% |
|||||||||
Total shareholders' equity (GAAP) |
$ |
3,942,361 |
$ |
3,913,409 |
$ |
3,900,907 |
$ |
3,696,791 |
$ |
3,726,774 |
|||||||||
Less: Goodwill and other intangibles |
1,305,915 |
1,314,165 |
1,332,672 |
1,271,807 |
1,276,241 |
||||||||||||||
Preferred stock |
132,097 |
132,097 |
132,097 |
132,097 |
132,097 |
||||||||||||||
Tangible common equity (Non-GAAP) (2) |
$ |
2,504,349 |
$ |
2,467,147 |
$ |
2,436,138 |
$ |
2,292,887 |
$ |
2,318,436 |
|||||||||
Total assets (GAAP) |
$ |
30,118,387 |
$ |
30,126,162 |
$ |
29,472,637 |
$ |
27,904,129 |
$ |
27,976,635 |
|||||||||
Less: Goodwill and other intangibles |
1,305,915 |
1,314,165 |
1,332,672 |
1,271,807 |
1,276,241 |
||||||||||||||
Tangible assets (Non-GAAP) (2) |
$ |
28,812,472 |
$ |
28,811,997 |
$ |
28,139,965 |
$ |
26,632,322 |
$ |
26,700,394 |
|||||||||
Tangible common equity ratio (Non-GAAP) (2) |
8.69 |
% |
8.56 |
% |
8.66 |
% |
8.61 |
% |
8.68 |
% |
|||||||||
(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017. |
|||||||||||||||||||
(2) Tangible calculations eliminate the effect of goodwill and acquisition-related intangibles and the corresponding amortization expense on a tax-effected basis where applicable. |
|||||||||||||||||||
(3) Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. On average, the adoption resulted in a reduction of non-interest income and non-interest expense of approximately $2.3 million on a quarterly basis, and had no impact on net income. |
SOURCE IBERIABANK Corporation
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