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IBERIABANK Corporation Reports Third Quarter Results

LAFAYETTE, La., Oct. 21, 2015 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 128-year-old IBERIABANK (www.iberiabank.com), reported operating results for the third quarter ended September 30, 2015.  For the quarter, the Company reported income available to common shareholders of $42.5 million, or $1.03 fully diluted earnings per common share ("EPS").  In the third quarter of 2015, the Company incurred non-operating expenses net of non-operating revenue equal to $2.3 million on a pre-tax basis, or $0.04 per share on an after-tax basis.  Excluding non-operating items, EPS in the third quarter of 2015 was $1.07 per common share on a non-GAAP operating basis (refer to press release supplemental table.) The $1.07 operating EPS results in the third quarter of 2015 was a record for the Company.

Daryl G. Byrd, President and Chief Executive Officer, commented, "We continue to work diligently to improve our operating results while maintaining the favorable level of high-quality growth that we delivered consistently over the last 16 years.  Our results in the third quarter of 2015 continued to show progress in that regard.  We achieved 15% annualized loan growth, our operating EPS improved on a linked-quarter basis, our reported margin met our guidance and the cash margin gained two basis points, our asset quality ratios improved, and we strengthened our capital position. Year-to-date, we have aggressively engaged in a 'risk-off' trade by reducing energy, indirect automobile, and certain market credit exposure by $361 million which suppressed near-term earnings but will benefit our profitability in 2016 and thereafter.  We continue to work assertively to add to our expense savings and revenue enhancement initiatives as we strive to achieve our goals for this year and next year."

Byrd continued, "Based on the sustained low interest rate environment and our current expectations and assumptions, our guidance range for operating EPS for the fourth quarter of 2015 is in the range of $1.10 to $1.15 per share, which would equate to a 12% to 13% increase in full-year 2015 operating EPS compared to the prior year.  We estimate that each 25-basis point increase in the Federal Funds rate would positively influence our quarterly after-tax EPS by six cents per common share."

Highlights for the third quarter of 2015 and at September 30, 2015:


  • In addition to record operating EPS, the Company achieved record levels of commercial loan pipeline, mortgage origination volume, title income, and retail brokerage revenues in the third quarter of 2015.
  • On a linked quarter basis, operating revenues increased $4.5 million, or 2%, while operating expenses increased $4.0 million, or 3%.  Operating expenses were impacted by the timing of the Georgia Commerce acquisition. Georgia Commerce had three months of operating expenses in the third quarter of 2015, compared to one month of operating expenses in the second quarter of 2015.
  • The net interest margin decreased two basis points on a linked quarter basis to 3.50%, which was consistent with management's expectations.  The Company's cash margin improved two basis points on a linked quarter basis.
  • Energy-related loans declined $68 million, or 9%, between June 30, 2015 and September 30, 2015, and equated to 5.1% of total loans at September 30, 2015.  At September 30, 2015, the Company had accrued approximately $19 million in aggregate reserves for energy-related loans and unfunded commitments.  The Company continues to forecast little or no losses on the exploration and production or midstream energy loans outstanding (which constituted 64% of energy loans outstanding at September 30, 2015) and manageable losses in the service company portfolio.
  • Total loan growth was $166 million, or 1%, between June 30, 2015 and September 30, 2015.  Despite a $109 million decline in energy-related and indirect automobile loans between quarter-ends, legacy loan growth, which excludes all assets covered under FDIC loss share agreements and other non-covered acquired assets (collectively, "Acquired Assets"), increased $384 million, or 4% (15% annualized rate).
  • Total deposits increased $184 million, or 1%, between quarter-ends, which included non-interest-bearing deposit growth of $226 million, or 5% (22% annualized basis).
  • On August 5, 2015, the Company further strengthened its capital position through the sale of perpetual preferred stock with gross proceeds equal to approximately $80 million.

Table A - Summary Financial Results

(Dollars in thousands, except per share data)













For the Three Months Ended


9/30/2015



6/30/2015


% Change


9/30/2014(1)


% Change

Net income

$        42,475



$        30,836


37.7


$         30,893


37.5

Earnings per common share - diluted

1.03



0.79


30.4


0.92


12.0












Average gross loans and leases

$ 14,009,601



$ 13,297,724


5.4


$  11,009,833


27.2

Average total deposits

16,369,564



15,132,197


8.2


12,222,997


33.9

Net interest margin (TE) (2)

3.50

%


3.52

%



3.49

%













OPERATING BASIS (NON-GAAP) (3):











Total revenues

$      210,374



$      205,924


2.2


$       168,281


25.0

Total non-interest expense

140,497



136,450


3.0


113,716


23.6

Earnings per common share - diluted

1.07



1.05


1.9


1.04


2.9

Tangible efficiency ratio (TE) (2)

64.8

%


64.4

%



65.6

%


Return on average assets

0.89



0.89




0.89



Return on average tangible common equity

11.18



11.14




11.29



Net interest margin (TE) - cash basis (4)

3.31



3.29




3.36














(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015, and errors in mortgage income during the third quarter of 2014, as previously disclosed.

(2)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%.

(3)

See Table 11 and Table 12 for GAAP to Non-GAAP reconciliations.

(4)

See Table 10 for adjustments related to purchase discounts on acquired loans and related accretion and the impact of the FDIC indemnification asset.

Operating Results

On a linked quarter basis, average loan volume (including the FDIC loss share receivable) increased $703 million, or 5%, and the associated yield declined two basis points.  Over that period, average legacy loans increased $424 million, or 4%, with an increase in yield of two basis points, and acquired loans (including the FDIC loss share receivable) increased $279 million, or 9%, and the yield declined 23 basis points due to the mix of lower yielding loans recently acquired.  All other average earning assets, including investment securities, mortgage loans held for sale, and interest-bearing deposits in other institutions, increased a total of $320 million, or 10%.

On a linked quarter basis, average earning assets increased $1.0 billion, or 6%, and the average earning asset yield decreased one basis point. Average interest-bearing liabilities increased $602 million, or 5%, and the cost of interest-bearing liabilities increased one basis point.  As a result, the net interest spread and net interest margin each decreased two basis points.  On a linked quarter basis, tax-equivalent net interest income increased $10 million, or 7%, as average earning assets increased significantly and the net interest margin decreased slightly.

In the third quarter of 2015, non-interest income decreased $4.0 million, or 7%, compared to the second quarter of 2015.  Non-operating income totaled $2.2 million in the third quarter of 2015, primarily due to a $1.9 million gain on the sale/leaseback of a building.  Operating non-interest income decreased $5.0 million, or 8%, on a linked quarter basis.  The primary changes in operating non-interest income on a linked quarter basis were:

  • Decreased mortgage income of $4.5 million, or 18%; and
  • Decreased energy capital markets income of $2.4 million, or 77%; partially offset by
  • Increased service charge income of $1.2 million, or 12%;
  • Increased retail brokerage commissions of $0.7 million, or 31%;
  • Increased title revenues of $0.5 million, or 8%; and
  • Increased credit card fee income of $0.4 million, or 19%.

In the third quarter of 2015, the Company originated $720 million in residential mortgage loans, up $20 million, or 3%, on a linked quarter basis.  Client loan refinancing opportunities accounted for approximately 19% of mortgage loan applications in the third quarter of 2015, down compared to 22% in the second quarter of 2015.  The Company sold $726 million in mortgage loans during the third quarter of 2015, up $63 million, or 10%, on a linked quarter basis.  Loans held for sale declined from $221 million at June 30, 2015, to $202 million at September 30, 2015.  The mortgage origination locked pipeline decreased $46 million, or 14%, between June 30, 2015, and September 30, 2015, to $283 million at quarter-end.  At October 16, 2015, the locked pipeline was $289 million, up $6 million, or 2%, compared to September 30, 2015.  The mortgage loan origination business primarily focuses on retail mortgage loans originated by the Company.

Assets under management at IBERIA Wealth Advisors ("IWA") were $1.4 billion at September 30, 2015, down 1% compared to June 30, 2015.  Revenues for IWA decreased 2% on a linked quarter basis, and were up 19% compared to the third quarter of 2014.  IBERIA Financial Services revenues increased 31% on a linked quarter basis, and were up 21% compared to the third quarter of 2014.  IBERIA Capital Partners ("ICP") revenues decreased 77% on a linked quarter basis, and were down 74% compared to the third quarter of 2014.

Non-interest expense decreased $8.2 million, or 5%, on a linked quarter basis, while operating expense increased $4.0 million, or 3%.  Operating expense changes included the following on a linked-quarter basis:

  • Increased compensation and benefit costs of $2.0 million, or 3%, primarily due to:
      • Increased personnel expenses of $1.2 million attributable to Georgia Commerce associates for two additional months in the third quarter of 2015; and
      • Increased medical/hospitalization expenses of $0.8 million;
  • Increased occupancy and equipment expense of $0.7 million, or 4%;
  • Increased professional services of $0.7 million, or 17%; and
  • Increased provision for unfunded commitment of $0.9 million.

The Company's tangible efficiency ratio in the third quarter of 2015 was 64.8%, stable on a linked quarter basis due primarily to seasonal factors.  The Company continues to work expense savings and revenue enhancement initiatives intended to achieve the targeted tangible efficiency ratio of 60% by 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



9/30/2015


6/30/2015


% Change


9/30/2014 (1)


% Change

PERIOD-END BALANCES:














Total loans and leases

$ 14,117,019



$ 13,950,563



1.2


$    11,080,887



27.4


Legacy loans and leases

10,779,258



10,395,553



3.7


9,179,942



17.4


Total deposits

16,303,065



16,119,541



1.1


12,377,691



31.7















ASSET QUALITY RATIOS (LEGACY):














Past due loans to total loans(2)

0.64

%


0.78

%




0.55

%




Non-performing assets to total assets(3)

0.43



0.55





0.46





Classified assets to total assets(4)

0.83



0.84





0.65


















CAPITAL RATIOS:














Tangible common equity ratio (Non-GAAP) (5)

8.75

%


8.68

%




8.45

%




Tier 1 leverage ratio

9.33



9.24





9.21





Total risk-based capital ratio

12.15



11.49





12.40


















PER COMMON SHARE DATA:














Book value

$          58.49



$          57.53



1.7


$             54.30



7.7


Tangible book value (6)

39.95



39.00



2.4


37.81



5.7


Closing stock price

58.21



68.23



(14.7)


62.51



(6.9)


Cash dividends

0.34



0.34




0.34

















(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015, and errors in mortgage income during the third quarter of 2014, as previously disclosed.

(2)

Past due loans include non-accruing loans.

(3)

Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets.

(4)

Classified assets consist of $133 million, $131 million and $88 million at September 30, 2015, June 30, 2015 and September 30, 2014, respectively.

(5)

See Table 12 for the GAAP to Non-GAAP reconciliation.

(6)

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 $166 million, or 1%, between June 30, 2015, and September 30, 2015.  Over that period, the acquired loan portfolio decreased $217 million, or 6%, and legacy loans increased $384 million, or 4% (15% annualized rate), including a decline in energy-related loans of $68 million, or 9%, and a decline in indirect automobile loans of $41 million, or 13%. During the third quarter, legacy commercial loans increased $276 million, or 4% (which included $67 million in small business loan growth, up 7%, or 28% annualized rate), legacy consumer loans increased $63 million, or 3% (11% annualized rate), and legacy mortgage loans increased $44 million, or 7% (28% annualized rate).  Period-end legacy loan growth during the third quarter of 2015 was strongest in the Orlando, Atlanta, Tampa, New Orleans, and Sarasota markets.  Funded loan origination and renewal mix in the third quarter of 2015 was 52% fixed rate and 48% floating rate, and total loans outstanding (excluding non-accruals) were 47% fixed and 53% floating.  Loans and commitments originated and/or renewed during the third quarter of 2015 totaled $1.3 billion (down 8% on a linked quarter basis).

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


9/30/2015


6/30/2015


9/30/2014


$

%


Annualized


$

%


9/30/2015

6/30/2015

Legacy loans:

















Commercial

$   7,815,161


$   7,538,703


$   6,621,485


276,458

3.7 %


14.7 %


1,193,676

18.0 %


73 %

73 %

Residential mortgage

660,543


616,497


497,075


44,046

7.1 %


28.6 %


163,468

32.9 %


6 %

6 %

Consumer

2,303,554


2,240,353


2,061,382


63,201

2.8 %


11.3 %


242,172

11.7 %


21 %

21 %

Total legacy loans

10,779,258


10,395,553


9,179,942


383,705

3.7 %


14.8 %


1,599,316

17.4 %


100 %

100 %


















Acquired loans:

















Balance at beginning of period

3,555,010


2,978,592


2,067,537


576,418

19.4 %




$  1,487,473

71.9




Loans acquired during the period


801,126



(801,126)

(100.0)%




0.0




Net paydown activity

(217,249)


(224,708)


(166,592)


7,459

(3.3)%




(50,657)

30.4




Total acquired loans

3,337,761


3,555,010


1,900,945


(217,249)

(6.1)%




1,436,816

7.6




Total loans

$ 14,117,019


$ 13,950,563


$ 11,080,887


166,456

1.2 %




$  3,036,132

27.4




Energy-related loans outstanding totaled $719 million at September 30, 2015, down $68 million, or 9%, compared to June 30, 2015, and equated to approximately 5.1% of total loans.  Loans to exploration and production companies accounted for 47% of energy loans outstanding and 55% of energy commitments at September 30, 2015.  Midstream companies accounted for 17% of energy loans and 14% of energy commitments, and service companies accounted for 36% of energy loans and 31% of energy commitments.  At September 30, 2015, $4.9 million in energy loans were on non-accrual status and $477,000 was past due greater than 30 days at quarter-end.  The Company's outlook regarding the energy portfolio remains consistent with prior expectations.  Additional information regarding the Company's energy loan and commitment exposure is provided in the supplemental investor presentation.

In January 2015, the Company announced it was exiting the indirect automobile lending business, a service the Company has successfully provided to select automobile dealers in the Company's footprint for 20 years.  The Company concluded compliance risk associated with the indirect automobile lending business in general had become unbalanced relative to potential returns generated by the business on a risk-adjusted basis.  At September 30, 2015, the Company's indirect automobile lending business had approximately $282 million in loans outstanding, down $41 million, or 13%, compared to June 30, 2015 (2.0% of total loans outstanding compared to 2.3% at June 30, 2015).  Year-to-date, indirect loans declined $115 million, or 29%.

Deposits

Total deposits increased $184 million, or 1%, from June 30, 2015 to September 30, 2015.  Non-interest-bearing deposits increased $226 million, or 5% (22% annualized basis), and equated to 27% of total deposits at September 30, 2015.  NOW accounts increased $11 million, or less than 1%, while money market account volume increased $75 million, or 1% (5% annualized basis), between June 30, 2015 and September 30, 2015.  Time deposits decreased $129 million, or 5%, between quarter-ends.  Period-end deposit growth during the third quarter of 2015 was strongest in the Florida Keys, Baton Rouge, New Orleans, Atlanta, and Orlando markets.


Table D - Period-End Deposits

(Dollars in thousands)








Linked Qtr Change (1)


Year/Year Change (1)


Mix


9/30/2015


6/30/2015


9/30/2014


$

%

Annualized


$

%


9/30/2015

6/30/2015

Non-interest-bearing

$   4,392,808


$   4,166,850


$   3,157,453


225,958

5.4

21.7


1,235,355

39.1


27 %

26 %

NOW accounts

2,635,021


2,623,697


2,194,803


11,324

0.4

1.7


440,218

20.1


16 %

16 %

Money market accounts

6,274,428


6,199,405


4,346,173


75,023

1.2

4.8


1,928,255

44.4


38 %

38 %

Savings accounts

725,435


725,633


575,337


(198)

(0.0)

(0.1)


150,098

26.1


5 %

5 %

Time deposits

2,275,373


2,403,956


2,103,925


(128,583)

(5.3)

(21.4)


171,448

8.1


14 %

15 %

Total deposits

$ 16,303,065


$ 16,119,541


$ 12,377,691


183,524

1.1

4.6


3,925,374

31.7


100 %

100 %

















(1) Growth includes the impact of acquisitions.


On an average balance and linked quarter basis, non-interest-bearing deposits increased $332 million, or 8%, and interest-bearing deposits increased $905 million, or 8%.  The rate on average interest-bearing deposits in the third quarter of 2015 was 0.43%, an increase of one basis point on a linked quarter basis.

Other Assets And Funding

On a linked quarter basis, the investment portfolio increased $229 million, or 9%, to $2.7 billion on average in the third quarter of 2015.  On a period-end basis, the investment portfolio equated to $2.9 billion, or 15% of total assets at September 30, 2015, compared to 13% at June 30, 2015.  The investment portfolio had an effective duration of 3.1 years at September 30, 2015, compared to 3.2 years at June 30, 2015.  The investment portfolio had a $28 million unrealized gain at September 30, 2015.  The average yield on investment securities increased eight basis points on a linked quarter basis to 2.16% in the third quarter of 2015.  The Company holds in its investment portfolio primarily government agency securities.  Municipal securities comprised only 8.3% of total investments at September 30, 2015.  The Company holds for investment no sovereign debt, equity securities, trust preferred securities, or derivative exposure to foreign counterparties.

The Company continued to significantly reduce its short-term and long-term debt borrowings.  On a linked quarter basis, average short-term borrowings (including repurchase agreements) decreased $199 million, or 43%, and the cost of short-term borrowings declined two basis points.  At September 30, 2015, short-term borrowings (including repurchase agreements) declined $590 million, or 73%, compared to $813 million one year prior.  On a linked quarter basis, average long-term debt decreased $104 million, or 23%, and the cost of long-term debt increased 45 basis points to 2.99%.  The cost of average interest-bearing liabilities was 0.50% in the third quarter of 2015, up one basis point on a linked quarter basis.

Asset Quality

Between June 30, 2015 and September 30, 2015, legacy non-performing assets ("NPAs") decreased $16 million, or 19%.  At September 30, 2015, NPAs included $8 million in former bank branches and related real estate, a decrease of $4 million compared to June 30, 2015.  At September 30, 2015, legacy NPAs equated to 0.43% of total assets, down from 0.55% at June 30, 2015, and 0.38% of total assets excluding bank-related properties.  Legacy loans past due 30 days or more (excluding non-accruing loans) decreased $1.3 million, or 7%, and represented 0.16% of total legacy loans at September 30, 2015, compared to 0.18% at June 30, 2015.

Net charge-offs totaled $2.5 million in the third quarter of 2015, down $1.3 million, or 35%, compared to the second quarter of 2015.  Annualized net charge-offs equated to 0.07% of the average loans in the third quarter of 2015, down four basis points on a linked quarter basis.  The Company's provision for loan losses decreased $3.7 million, or 42%, on a linked quarter basis to $5.1 million.

Capital Position

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 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 ($77 million net proceeds) from the transaction.

At September 30, 2015, the Company reported a tangible common equity ratio of 8.75%, up seven basis points compared to June 30, 2015, and the preliminary Tier 1 leverage ratio was 9.33%, up nine basis points compared to June 30, 2015. The Company's preliminary total risk-based capital ratio at September 30, 2015, was 12.15%, up 66 basis points compared to June 30, 2015.

At September 30, 2015, book value per common share was $58.49, up $0.96 per share, or 2%, compared to June 30, 2015. Tangible book value per common share was $39.95, up $0.95 per share, or 2%, compared to June 30, 2015.  Based on the closing stock price of the Company's common stock of $58.30 per share on October 21, 2015, this price equated to 1.00 times September 30, 2015 book value and 1.46 times September 30, 2015 tangible book value per common share.

On September 14, 2015, the Company declared a quarterly cash dividend of $0.34 per common share. This dividend level equated to an annualized dividend rate of $1.36 per common share.  Based on the Company's closing common stock price on October 21, 2015, the indicated dividend yield was 2.33% per common share.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with 326 combined offices, including 223 bank branch offices and three loan production offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, and Georgia, 22 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 five 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 market capitalization was approximately $2.4 billion, based on the NASDAQ Global Select Market closing stock price on October 21, 2015.

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.
  • 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 22, 2015, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 0317551.  A replay of the call will be available until midnight Central Time on October 30, 2015 by dialing 1-877-344-7529. The confirmation code for the replay is 10074233.  The Company has prepared a PowerPoint presentation that supplements information contained in this press release.  The PowerPoint presentation may be accessed on the Company's web site, www.iberiabank.com, under "Investor Relations" and then "Presentations."

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with GAAP. The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that in management's opinion can distort period-to-period comparisons of the Company's performance. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.  Reconciliations of GAAP to non-GAAP disclosures are included as tables at the end of this release.  Refer to press release supplemental table for this reconciliation.

Assumptions Regarding Projected Earnings in Future Periods

The Company's operating EPS guidance for the fourth quarter of 2015 was based on the following significant assumptions:

  • Recent forward interest rate curve projections;
  • Achievement of targeted synergies associated with recently completed acquisitions;
  • No significant changes in credit quality;
  • No significant changes to the preliminary purchase accounting marks assumed on the Company's most recently completed acquisitions;
  • No significant cash flow or credit quality changes on acquired assets;
  • Mortgage, title insurance, and capital markets projections continue to reflect the current environment and expectations; and
  • The declaration of cash dividends on preferred stock commencing in the first quarter of 2016.

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, 2014, 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, 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, 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, changes in government regulations and legislation, increases in FDIC insurance assessments, geographic concentration of our markets, economic or business conditions in our markets or nationally, 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 in this discussion 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:

9/30/2015


6/30/2015


% Change


9/30/2014 (1)

% Change


Net interest income

$ 155,117



$ 145,677



6.5


$ 121,751



27.4


Net interest income (TE)(2)

157,302



147,673



6.5


123,885



27.0


Total revenues

212,595



207,190



2.6


168,863



25.9


Provision for loan losses

5,062



8,790



(42.4)


5,714



(11.4)


Non-interest expense

144,968



153,209



(5.4)


120,112



20.7


Net income

42,475



30,836



37.7


30,893



37.5















PER COMMON SHARE DATA:














Earnings available to common shareholders - basic

$       1.04



$       0.79



31.6


$       0.93



11.8


Earnings available to common shareholders - diluted

1.03



0.79



30.4


0.92



12.0


Operating earnings (Non-GAAP) (3)

1.07



1.05



1.9


1.04



2.9


Book value

58.49



57.53



1.7


54.30



7.7


Tangible book value (4)

39.95



39.00



2.4


37.81



5.7


Closing stock price

58.21



68.23



(14.7)


62.51



(6.9)


Cash dividends

0.34



0.34




0.34

















KEY RATIOS AND OTHER DATA (7):










Net interest margin (TE)(2)

3.50

%


3.52

%




3.49

%




Efficiency ratio

68.2



73.9





71.1





Tangible operating efficiency ratio (TE) (Non-GAAP) (2) (3) (4)

64.8



64.4





65.6





Return on average assets

0.86



0.67





0.79





Return on average common equity

7.09



5.54





6.79





Return on average operating tangible common equity (Non-GAAP) (3)(4)

11.18



11.14





11.29





Effective tax rate

32.1



31.8





28.2





Full-time equivalent employees

3,214



3,215





2,703


















CAPITAL RATIOS:














Tangible common equity ratio (Non-GAAP) (3) (4)

8.75

%


8.68

%




8.45

%




Tangible common equity to risk-weighted assets(4)

10.02



9.90





10.31





Tier 1 leverage ratio

9.33



9.24





9.21





Common equity Tier 1 (CET 1) (transitional) (5)

10.08



9.97





N/A





Common equity Tier 1 (CET 1) (fully phased-in) (5)

10.08



9.71





N/A





Tier 1 capital (transitional) (5)

10.73



10.07





11.21





Total risk-based capital ratio (5)

12.15



11.49





12.40





Common stock dividend payout ratio

32.9



45.3





36.8





Classified assets to Tier 1 capital

17.5



20.0





21.3


















ASSET QUALITY RATIOS (LEGACY):










Non-performing assets to total assets(6)

0.43

%


0.55

%




0.46

%




Allowance for loan losses to loans

0.80



0.81





0.79





Net charge-offs to average loans (annualized)

0.09



0.14





0.09





Non-performing assets to total loans and OREO (6)

0.65



0.83





0.67


















(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015, and errors in mortgage income during the third quarter of 2014, as previously disclosed.

(2)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%.

(3)

See Table 11 and Table 12 for the 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)

Capital ratios as of September 30, 2015 are estimated.

(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.

(7)

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


9/30/2015


6/30/2015


$

%


3/31/2015


12/31/2014 (1)


9/30/2014 (1)


$

%

Interest income

$ 171,077


$ 160,545


10,532

6.6


$ 138,585


$          137,276


$       133,793


37,284

27.9

Interest expense

15,960


14,868


1,092

7.3


12,781


12,596


12,042


3,918

32.5

Net interest income

155,117


145,677


9,440

6.5


125,804


124,680


121,751


33,366

27.4

Provision for loan losses

5,062


8,790


(3,728)

(42.4)


5,345


6,495


5,714


(652)

(11.4)

Net interest income after provision for loan losses

150,055


136,887


13,168

9.6


120,459


118,185


116,037


34,018

29.3

Mortgage income

20,730


25,246


(4,516)

(17.9)


18,023


13,646


14,263


6,467

45.3

Service charges on deposit accounts

11,342


10,162


1,180

11.6


9,262


10,153


10,205


1,137

11.1

Title revenue

6,627


6,146


481

7.8


4,629


5,486


5,577


1,050

18.8

Broker commissions

3,839


5,461


(1,622)

(29.7)


4,162


3,960


5,297


(1,458)

(27.5)

ATM/debit card fee income

3,562


3,583


(21)

(0.6)


3,275


3,331


3,287


275

8.4

Income from bank owned life insurance

1,093


1,075


18

1.7


1,092


1,050


1,047


46

4.4

Gain on sale of available-for-sale securities

280


903


(623)

(69.0)


386


162


582


(302)

(51.9)

Other non-interest income

10,005


8,937


1,068

12.0


8,070


9,284


6,854


3,151

46.0

Total non-interest income

57,478


61,513


(4,035)

(6.6)


48,899


47,072


47,112


10,366

22.0

Salaries and employee benefits

82,416


84,019


(1,603)

(1.9)


72,696


65,445


64,934


17,482

26.9

Occupancy and equipment

17,987


17,366


621

3.6


16,260


14,594


14,883


3,104

20.9

Amortization of acquisition intangibles

2,338


2,155


183

8.5


1,523


1,618


1,623


715

44.1

Other non-interest expense

42,227


49,669


(7,442)

(15.0)


42,674


37,478


38,672


3,555

9.2

Total non-interest expense

144,968


153,209


(8,241)

(5.4)


133,153


119,135


120,112


24,856

20.7

Income before income taxes

62,565


45,191


17,374

38.4


36,205


46,122


43,037


19,528

45.4

Income tax expense

20,090


14,355


5,735

40.0


11,079


10,186


12,144


7,946

65.4

Net income

$   42,475


$   30,836


11,639

37.7


$   25,126


$            35,936


$         30,893


11,582

37.5

















Income available to common shareholders - basic

$   42,475


$   30,836


11,639

37.7


$   25,126


$            35,936


$         30,893


11,582

37.5

Earnings allocated to unvested restricted stock

(492)


(355)


(137)

38.6


(344)


(523)


(462)


(30)

6.5

Income available to common shareholders - diluted

$   41,983


$   30,481


11,502

37.7


$   24,782


$            35,413


$         30,431


11,552

38.0

















Earnings per common share - basic

$       1.04


$       0.79


0.25

31.6


$       0.75


$                1.08


$             0.93


0.11

11.8

















Earnings per common share - diluted

$       1.03


$       0.79


0.24

30.4


$       0.75


$                1.07


$             0.92


0.11

12.0

Impact of non-operating items (Non-GAAP)(2)

0.04


0.26


(0.22)

(84.6)


0.20


(0.02)


0.12


(0.08)

(66.7)

Earnings per share - diluted, excluding non-operating items (Non-GAAP)(2)

$       1.07


$       1.05


0.02

1.9


$       0.95


$                1.05


$             1.04


0.03

2.9

















NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
















Weighted average common shares outstanding - basic

40,995


39,015


1,980

5.1


33,659


33,333


33,310


7,685

23.1

Weighted average common shares outstanding - diluted

40,614


38,667


1,947

5.0


33,235


32,947


32,927


7,687

23.3

Book value shares (period end)(3)

41,129


41,117


12

0.0


38,178


33,453


33,441


7,688

23.0

















(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015, and errors in mortgage income during the third quarter of 2014, as previously disclosed.

(2)

See Table 11 for GAAP to Non-GAAP reconciliation.

(3)

Shares used for book value purposes exclude shares held in treasury at the end of December 31, 2014 and September 30, 2014.

 


Table 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except per share data)











For the Nine Months Ended



9/30/2015


9/30/2014 (1)


$ Change


% Change


Interest income

$  470,207


$       367,539


102,668


27.9


Interest expense

43,609


32,107


11,502


35.8


Net interest income

426,598


335,432


91,166


27.2


Provision for loan losses

19,197


12,565


6,632


52.8


Net interest income after provision for loan losses

407,401


322,867


84,534


26.2


Mortgage income

63,999


38,150


25,849


67.8


Service charges on deposit accounts

30,766


25,421


5,345


21.0


Title revenue

17,402


15,007


2,395


16.0


Broker commissions

13,462


14,823


(1,361)


(9.2)


ATM/debit card fee income

10,420


8,691


1,729


19.9


Income from bank owned life insurance

3,260


4,423


(1,163)


(26.3)


Gain on sale of available-for-sale securities

1,569


609


960


157.6


Other non-interest income

27,012


19,430


7,582


39.0


Total non-interest income

167,890


126,554


41,336


32.7


Salaries and employee benefits

239,131


193,641


45,490


23.5


Occupancy and equipment

51,613


44,977


6,636


14.8


Amortization of acquisition intangibles

6,016


4,189


1,827


43.6


Other non-interest expense

134,570


111,672


22,898


20.5


Total non-interest expense

431,330


354,479


76,851


21.7


Income before income taxes

143,961


94,942


49,019


51.6


Income tax expense

45,524


25,497


20,027


78.5


Net income

$    98,437


$         69,445


28,992


41.7











Income available to common shareholders - basic

$    98,437


$         69,445


28,992


41.7


Earnings allocated to unvested restricted stock

(1,171)


(1,114)


(57)


5.1


Income available to common shareholders - diluted

$    97,266


$         68,331


28,935


42.3











Earnings per common share - basic

$        2.60


$             2.22


0.38


17.1











Earnings per common share - diluted

$        2.59


$             2.21


0.38


17.2


Impact of non-operating items (Non-GAAP)(2)

0.48


0.46


0.02


4.3


Earnings per share - diluted, excluding non-operating items (Non-GAAP)(2)

$        3.07


$             2.67


0.40


15.0











NUMBER OF COMMON SHARES OUTSTANDING (in thousands)









Weighted average common shares outstanding - basic

37,917


31,316


6,601


21.1


Weighted average common shares outstanding - diluted

37,532


30,923


6,609


21.4


Book value shares (period end) 

41,129


33,441


7,688


23.0











(1)

Certain balances and amounts for the nine months ended September 30, 2014 have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015, and errors in mortgage income during the nine months ended September 30, 2014, as previously disclosed.


(2)

See Table 11 for GAAP to Non-GAAP reconciliation.


 


TABLE 4 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)


PERIOD-END BALANCES


Linked Qtr Change








Year/Year Change

ASSETS

9/30/2015


6/30/2015


$


%


3/31/2015


12/31/2014 (1)


9/30/2014 (1)


$


%

Cash and due from banks

$      370,657


$      300,257


70,400


23.4


$      268,241


$          251,994


$       257,147


113,510


44.1

Interest-bearing deposits in other banks

311,615


591,018


(279,403)


(47.3)


696,000


296,101


410,860


(99,245)


(24.2)

Total cash and cash equivalents

682,272


891,275


(209,003)


(23.4)


964,241


548,095


668,007


14,265


2.1

Investment securities available for sale

2,827,805


2,413,158


414,647


17.2


2,342,613


2,158,853


2,103,828


723,977


34.4

Investment securities held to maturity

98,330


101,475


(3,145)


(3.1)


113,442


116,960


120,520


(22,190)


(18.4)

Total investment securities

2,926,135


2,514,633


411,502


16.4


2,456,055


2,275,813


2,224,348


701,787


31.6

Mortgage loans held for sale

202,168


220,765


(18,597)


(8.4)


215,044


140,072


148,530


53,638


36.1

Loans, net of unearned income

14,117,019


13,950,563


166,456


1.2


12,873,461


11,441,044


11,080,887


3,036,132


27.4

Allowance for loan losses

(130,254)


(128,149)


(2,105)


1.6


(128,313)


(130,131)


(134,540)


4,286


(3.2)

Loans, net

13,986,765


13,822,414


164,351


1.2


12,745,148


11,310,913


10,946,347


3,040,418


27.8

Loss share receivable

43,443


50,452


(7,009)


(13.9)


60,972


69,627


94,712


(51,269)


(54.1)

Premises and equipment

333,273


342,949


(9,676)


(2.8)


337,201


307,159


307,868


25,405


8.3

Goodwill and other intangibles

766,589


765,813


776


0.1


672,337


548,130


553,668


212,921


38.5

Other assets

593,580


630,627


(37,047)


(5.9)


600,764


558,095


570,969


22,611


4.0

Total assets

$ 19,534,225


$ 19,238,928


295,297


1.5


$ 18,051,762


$     15,757,904


$  15,514,449


4,019,776


25.9



















LIABILITIES AND SHAREHOLDERS' EQUITY













Non-interest-bearing deposits

$   4,392,808


$   4,166,850


225,958


5.4


$   3,860,820


$       3,195,430


$    3,157,453


1,235,355


39.1

NOW accounts

2,635,021


2,623,697


11,324


0.4


2,729,791


2,462,841


2,194,803


440,218


20.1

Savings and money market accounts

6,999,863


6,925,038


74,825


1.1


5,796,443


4,746,017


4,921,510


2,078,353


42.2

Certificates of deposit

2,275,373


2,403,956


(128,583)


(5.3)


2,277,970


2,116,237


2,103,925


171,448


8.1

Total deposits

16,303,065


16,119,541


183,524


1.1


14,665,024


12,520,525


12,377,691


3,925,374


31.7

Short-term borrowings

10,000


59,300


(49,300)


(83.1)


352,300


603,000


553,000


(543,000)


(98.2)

Securities sold under agreements to repurchase

212,460


209,004


3,456


1.7


252,602


242,742


259,783


(47,323)


(18.2)

Trust preferred securities

120,110


120,110




111,862


111,862


111,862


8,248


7.4

Other long-term debt

221,863


222,202


(339)


(0.2)


349,027


291,392


243,707


(21,844)


(9.0)

Other liabilities

183,526


143,487


40,039


27.9


153,617


136,235


152,732


30,794


20.2

Total liabilities

17,051,024


16,873,644


177,380


1.1


15,884,432


13,905,756


13,698,775


3,352,249


24.5

Total shareholders' equity

2,483,201


2,365,284


117,917


5.0


2,167,330


1,852,148


1,815,674


667,527


36.8

Total liabilities and shareholders' equity

$ 19,534,225


$ 19,238,928


295,297


1.5


$ 18,051,762


$     15,757,904


$  15,514,449


4,019,776


25.9





































AVERAGE BALANCES


Linked Qtr Change








Year/Year Change

ASSETS

9/30/2015


6/30/2015


$


%


3/31/2015


12/31/2014 (1)


9/30/2014 (1)


$


%

Cash and due from banks

$      327,370


$      263,844


63,526


24.1


$      243,566


$          239,377


$       229,556


97,814


42.6

Interest-bearing deposits in other banks

682,764


582,032


100,732


17.3


324,150


353,716


489,221


193,543


39.6

Total cash and cash equivalents

1,010,134


845,876


164,258


19.4


567,716


593,093


718,777


291,357


40.5

Investment securities available for sale

2,660,423


2,417,002


243,421


10.1


2,223,344


2,142,981


2,046,170


614,253


30.0

Investment securities held to maturity

99,864


106,871


(7,007)


(6.6)


115,188


118,588


122,175


(22,311)


(18.3)

Total investment securities

2,760,287


2,523,873


236,414


9.4


2,338,532


2,261,569


2,168,345


591,942


27.3

Mortgage loans held for sale

200,895


202,691


(1,796)


(0.9)


133,304


121,438


163,510


37,385


22.9

Loans, net of unearned income

14,009,601


13,297,724


711,877


5.4


11,563,946


11,271,752


11,009,833


2,999,768


27.2

Allowance for loan losses

(130,367)


(129,069)


(1,298)


1.0


(128,519)


(134,177)


(133,443)


3,076


(2.3)

Loans, net

13,879,234


13,168,655


710,579


5.4


11,435,427


11,137,575


10,876,390


3,002,844


27.6

Loss share receivable

47,190


55,751


(8,561)


(1.5)


66,165


85,733


111,383


(64,193)


(57.6)

Premises and equipment

339,860


341,829


(1,969)


(0.6)


311,158


308,223


307,804


32,056


10.4

Goodwill and other intangibles

766,712


708,085


58,627


8.3


555,565


552,888


553,148


213,564


38.6

Other assets

599,758


598,526


1,232


0.2


549,746


553,804


576,851


22,907


4.0

Total assets

$ 19,604,070


$ 18,445,286


1,158,784


6.3


$ 15,957,613


$     15,614,323


$  15,476,208


4,127,862


26.7



















LIABILITIES AND SHAREHOLDERS' EQUITY













Non-interest-bearing deposits

$   4,265,912


$   3,933,468


332,444


8.5


$   3,312,357


$       3,228,773


$    3,057,513


1,208,399


39.5

NOW accounts

2,655,069


2,639,140


15,929


0.6


2,464,760


2,271,836


2,228,378


426,691


19.1

Savings and money market accounts

7,104,789


6,228,052


876,737


14.1


4,834,244


4,908,247


4,877,051


2,227,738


45.7

Certificates of deposit

2,343,794


2,331,537


12,257


0.5


2,150,447


2,105,623


2,060,055


283,739


13.8

Total deposits

16,369,564


15,132,197


1,237,367


8.2


12,761,808


12,514,479


12,222,997


4,146,567


33.9

Short-term borrowings

41,033


225,437


(184,404)


(81.8)


483,413


449,190


627,192


(586,159)


(93.5)

Securities sold under agreements to repurchase

221,217


236,305


(15,088)


(6.4)


263,645


264,194


292,677


(71,460)


(24.4)

Trust preferred securities

120,110


114,581


5,529


4.8


111,862


111,862


111,862


8,248


7.4

Other long-term debt

222,906


332,167


(109,261)


(32.9)


311,633


283,548


247,108


(24,202)


(9.8)

Other liabilities

206,030


172,473


33,557


19.5


135,477


159,818


168,262


37,768


22.4

Total liabilities

17,180,860


16,213,160


967,700


6.0


14,067,838


13,783,091


13,670,098


3,510,762


25.7

Total shareholders' equity

2,423,210


2,232,126


191,084


8.6


1,889,775


1,831,232


1,806,110


617,100


34.2

Total liabilities and shareholders' equity

$ 19,604,070


$ 18,445,286


1,158,784


6.3


$ 15,957,613


$     15,614,323


$  15,476,208


4,127,862


26.7



















(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015, and errors in mortgage income during the third quarter of 2014, as previously disclosed.

 


Table 5 - IBERIABANK CORPORATION

TOTAL LOANS AND ASSET QUALITY DATA

(Dollars in thousands)




















Linked Qtr Change








Year/Year Change

LOANS

9/30/2015


6/30/2015


$


%


3/31/2015


12/31/2014


9/30/2014


$


%

Commercial loans:


















Real estate

$   5,979,751


$   5,853,751


126,000


2.2


$   5,122,946


$   4,361,779


$   4,235,327


1,744,424


41.2

Commercial and Industrial

3,302,971


3,216,906


86,065


2.7


2,967,306


2,571,695


2,432,245


870,726


35.8

Energy-related (Real Estate and Commercial and Industrial)(1)

719,456


787,568


(68,112)


(8.6)


819,411


880,608


839,823


(120,367)


(14.3)

Total commercial loans

10,002,178


9,858,225


143,953


1.5


8,909,663


7,814,082


7,507,395


2,494,783


33.2



















Residential mortgage loans

1,189,941


1,169,608


20,333


1.7


1,164,286


1,080,297


1,062,779


127,162


12.0



















Consumer loans:


















Home equity

2,015,687


1,971,073


44,614


2.3


1,858,088


1,601,105


1,567,415


448,272


28.6

Indirect automobile

281,649


322,958


(41,309)


(12.8)


367,349


397,158


394,691


(113,042)


(28.6)

Automobile

172,947


173,924


(977)


(0.6)


160,518


149,901


140,287


32,660


23.3

Credit card

77,284


74,314


2,970


4.0


72,711


73,393


69,352


7,932


11.4

Other

377,333


380,461


(3,128)


(0.8)


340,846


325,108


338,968


38,365


11.3

Total consumer loans

2,924,900


2,922,730


2,170


0.1


2,799,512


2,546,665


2,510,713


414,187


16.5

Total loans

$ 14,117,019


$ 13,950,563


166,456


1.2


$ 12,873,461


$ 11,441,044


$ 11,080,887


3,036,132


27.4



















Allowance for loan losses

$    (130,254)


$    (128,149)


(2,105)


1.6


$    (128,313)


$    (130,131)


$    (134,540)


4,286


(3.2)

Loans, net

13,986,765


13,822,414


164,351


1.2


12,745,148


11,310,913


10,946,347


3,040,418


27.8



















Reserve for unfunded commitments

(14,525)


(13,244)


(1,281)


9.7


(12,849)


(11,801)


(12,099)


(2,426)


20.1

Allowance for credit losses

(144,779)


(141,393)


(3,386)


2.4


(141,162)


(141,932)


(146,639)


1,860


(1.3)



















ASSET QUALITY DATA (2)














Non-accrual loans

$      165,022


$      192,385


(27,363)


(14.2)


$      195,371


$      169,686


$      195,680


(30,658)


(15.7)

Other real estate owned and foreclosed assets

40,450


49,929


(9,479)


(19.0)


53,194


53,947


63,386


(22,936)


(36.2)

Accruing loans more than 90 days past due

2,994


4,607


(1,613)


(35.0)


5,642


1,708


190


2,804


N/M

Total non-performing assets

$      208,466


$      246,921


(38,455)


(15.6)


$      254,207


$      225,341


$      259,256


(50,790)


(19.6)





































Loans 30-89 days past due

$        25,306


$        39,005


(13,699)


(35.1)


$        32,835


$        51,141


$        23,784


1,522


6.4



















Non-performing assets to total assets

1.07 %


1.28 %






1.41 %


1.43 %


1.67 %




Non-performing assets to total loans and OREO

1.47


1.76






1.97


1.96


2.32





Allowance for loan losses to non-performing loans (3)

77.5


65.1






63.8


75.9


68.8





Allowance for loan losses to non-performing assets

62.5


51.9






50.5


57.7


51.9





Allowance for loan losses to total loans

0.92


0.92






1.00


1.14


1.21



























































Quarter-to-date charge-offs

$          5,245


$          4,808


437


9.1


$          2,972


$          3,413


$          3,261


1,984


60.8

Quarter-to-date recoveries

(2,790)


(1,034)


(1,756)


169.8


(1,237)


(1,658)


(1,053)


(1,737)


165.0

Quarter-to-date net charge-offs

$          2,455


$          3,774


(1,319)


(34.9)


$          1,735


$          1,755


$          2,208


247


11.2



















Net charge-offs to average loans (annualized)

0.07 %


0.11 %






0.06 %


0.06 %


0.08 %






















(1)

For purposes of this table, energy-related loans generally include loans with specific NAICS codes that relate to the Oil and Gas E&P, Services, or Midstream industries.

(2)

For purposes of this table, non-performing assets include all loans meeting non-performing asset criteria, including assets acquired in FDIC-assisted transactions.

(3)

Non-performing loans consist of non-accruing loans and accruing loans 90 days or more past due.



N/M - Comparison of the information presented is not meaningful given the periods presented.

 


Table 6 - IBERIABANK CORPORATION

LEGACY LOANS AND LEGACY ASSET QUALITY DATA

(Dollars in thousands)
























Linked Qtr Change








Year/Year Change

LEGACY LOANS

9/30/2015


6/30/2015


$


%


3/31/2015


12/31/2014


9/30/2014


$


%

Commercial loans:


















Real estate

$   4,321,723


$   4,105,592


216,131


5.3


$ 3,845,551


$ 3,676,811


$ 3,483,785


837,938


24.1

Commercial and Industrial

2,779,503


2,650,799


128,704


4.9


2,496,258


2,452,521


2,305,749


473,754


20.5

Energy-related (Real Estate and Commercial and Industrial)(1)

713,935


782,312


(68,377)


(8.7)


815,281


872,866


831,951


(118,016)


(14.2)

Total commercial loans

7,815,161


7,538,703


276,458


3.7


7,157,090


7,002,198


6,621,485


1,193,676


18.0



















Residential mortgage loans

660,543


616,497


44,046


7.1


553,815


527,694


497,075


163,468


32.9



















Consumer loans:


















Home equity

1,488,796


1,399,005


89,791


6.4


1,335,390


1,290,976


1,229,998


258,798


21.0

Indirect automobile

281,522


322,767


(41,245)


(12.8)


367,077


396,766


394,078


(112,556)


(28.6)

Automobile

159,928


159,778


150


0.1


145,084


134,014


123,445


36,483


29.6

Credit card

76,716


73,726


2,990


4.1


72,164


72,745


68,731


7,985


11.6

Other

296,592


285,077


11,515


4.0


264,249


244,321


245,130


51,462


21.0

Total consumer loans

2,303,554


2,240,353


63,201


2.8


2,183,964


2,138,822


2,061,382


242,172


11.7

Total loans

$ 10,779,258


$ 10,395,553


383,705


3.7


$ 9,894,869


$ 9,668,714


$ 9,179,942


1,599,316


17.4



















Allowance for loan losses

$      (86,400)


$      (83,723)


(2,677)


3.2


$    (78,773)


$    (76,174)


$    (73,073)


(13,327)


18.2

Loans, net

10,692,858


10,311,830


381,028


3.7


9,816,096


9,592,540


9,106,869


1,585,989


17.4



















Reserve for unfunded commitments

(14,525)


(13,244)


(1,281)


9.7


(12,849)


(11,801)


(12,099)


(2,426)


20.1

Allowance for credit losses

(100,925)


(96,967)


(3,958)


4.1


(91,622)


(87,975)


(85,172)


(15,753)


18.5



















ASSET QUALITY DATA (2)















Non-accrual loans

$        51,274


$        62,739


(11,465)


(18.3)


$      60,064


$      34,970


$      38,060


13,214


34.7

Other real estate owned and foreclosed assets

17,062


20,028


(2,966)


(14.8)


21,654


21,244


23,478


(6,416)


(27.3)

Accruing loans more than 90 days past due

1,521


3,584


(2,063)


(57.6)


239


754


4


1,517


N/M

Total non-performing assets

$        69,857


$        86,351


(16,494)


(19.1)


$      81,957


$      56,968


$      61,542


8,315


13.5



















Loans 30-89 days past due

$        15,718


$        14,985


733


4.9


17,606


$      29,567


$      12,441


3,277


26.3



















Non-performing assets to total assets

0.43 %


0.55 %






0.55 %


0.41 %


0.46 %





Non-performing assets to total loans and OREO

0.65


0.83






0.83


0.59


0.67





Allowance for loan losses to non-performing loans (3)

163.7


126.2






130.6


213.2


190.6





Allowance for loan losses to non-performing assets

123.7


97.0






96.1


133.7


117.9





Allowance for loan losses to total loans

0.80


0.81






0.80


0.79


0.79























Quarter-to-date charge-offs

$          4,958


$          4,446


512


11.5


$        2,669


$        3,070


$        3,045


1,913


62.8

Quarter-to-date recoveries

(2,524)


(941)


(1,583)


168.2


(1,091)


(1,532)


(914)


(1,610)


176.1

Quarter-to-date net charge-offs

$          2,434


$          3,505


(1,071)


(30.6)


1,578


$        1,538


$        2,131


303


14.2

Net charge-offs to average loans (annualized)

0.09 %


0.14 %






0.06 %


0.06 %


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, including assets acquired in FDIC-assisted transactions.

(3)

Non-performing loans consist of non-accruing loans and accruing loans 90 days or more past due.



N/M - Comparison of the information presented is not meaningful given the periods presented.

 


Table 7 - IBERIABANK CORPORATION

ACQUIRED LOANS AND ACQUIRED ASSET QUALITY DATA

(Dollars in thousands)
























Linked Qtr Change








Year/Year Change

ACQUIRED LOANS(1)

9/30/2015


6/30/2015


$


%


3/31/2015


12/31/2014


9/30/2014


$


%

Commercial loans:


















Real estate

$ 1,658,028


$ 1,748,159


(90,131)


(5.2)


$ 1,277,395


$    684,968


$    751,542


906,486


120.6

Commercial and Industrial

523,468


566,107


(42,639)


(7.5)


471,048


119,174


126,496


396,972


313.8

Energy-related (Real Estate and Commercial and Industrial)(2)

5,521


5,256


265


5.0


4,130


7,742


7,872


(2,351)


(29.9)

Total commercial loans

2,187,017


2,319,522


(132,505)


(5.7)


1,752,573


811,884


885,910


1,301,107


146.9



















Residential mortgage loans

529,398


553,111


(23,713)


(4.3)


610,471


552,603


565,704


(36,306)


(6.4)



















Consumer loans:


















Home equity

526,891


572,068


(45,177)


(7.9)


522,698


310,129


337,417


189,474


56.2

Indirect automobile

127


191


(64)


(33.5)


272


392


613


(486)


(79.3)

Automobile

13,019


14,146


(1,127)


(8.0)


15,434


15,887


16,842


(3,823)


(22.7)

Credit card

568


588


(20)


(3.4)


547


648


621


(53)


(8.5)

Other

80,741


95,384


(14,643)


(15.4)


76,597


80,787


93,838


(13,097)


(14.0)

Total consumer loans

621,346


682,377


(61,031)


(8.9)


615,548


407,843


449,331


172,015


38.3

Total loans

$ 3,337,761


$ 3,555,010


(217,249)


(6.1)


$ 2,978,592


$ 1,772,330


$ 1,900,945


1,436,816


75.6



















Allowance for loan losses

$    (43,854)


$   (44,426)


572


(1.3)


$   (49,540)


$   (53,957)


$   (61,467)


17,613


(28.7)

Loans, net

3,293,907


3,510,584


(216,677)


(6.2)


2,929,052


1,718,373


1,839,478


1,454,429


79.1



















ACQUIRED ASSET QUALITY DATA (1)

















Non-accrual loans

$    113,748


$    129,646


(15,898)


(12.3)


$    135,307


$    134,716


$    157,620


(43,872)


(27.8)

Other real estate owned and foreclosed assets

23,388


29,901


(6,513)


(21.8)


31,540


32,703


39,908


(16,520)


(41.4)

Accruing loans more than 90 days past due

1,473


1,023


450


44.0


5,403


954


186


1,287


691.9

Total non-performing assets

$    138,609


$    160,570


(21,961)


(13.7)


$    172,250


$    168,373


$    197,714


(59,105)


(29.9)



















Loans 30-89 days past due

$        9,588


$      24,020


(14,432)


(60.1)


$      15,229


$      21,574


$      11,343


(1,755)


(15.5)



















Non-performing assets to total assets

4.07 %


4.42 %






5.64 %


9.11 %


9.83 %





Non-performing assets to total loans and OREO

4.12


4.48






5.72


9.33


10.19





Allowance for loan losses to non-performing loans (3)

38.1


34.0






35.2


39.8


39.0





Allowance for loan losses to non-performing assets

31.6


27.7






28.8


32.1


31.1





Allowance for loan losses to total loans

1.31


1.25






1.66


3.04


3.23









































Quarter-to-date charge-offs

$          287


$          362


(75)


(20.7)


$          303


$          343


$          216


71


32.9

Quarter-to-date recoveries

(266)


(93)


(173)


186.0


(146)


(126)


(139)


(127)


91.4

Quarter-to-date net charge-offs

$            21


$          269


(248)


(92.2)


$          157


$          217


$            77


(56)


(72.7)



















Net charge-offs to average loans (annualized)

—%


0.03 %






0.03 %


0.05 %


0.01 %























(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)

Non-performing loans consist of non-accruing loans and accruing loans 90 days or more past due.

 


TABLE 8 - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)











For the Three Months Ended



9/30/2015


6/30/2015

Basis Point Change

ASSETS

Average
Balance

Interest
Income/Expense

Yield/Rate


Average
Balance

Interest
Income/Expense

Yield/Rate

Yield/Rate

Earning assets:









Commercial loans

$   9,915,593

$          110,282

4.41 %


$   9,277,141

$          103,272

4.46 %

(5)

Residential mortgage loans

1,180,725

13,156

4.46


1,187,166

14,379

4.84

(38)

Consumer loans

2,913,283

36,477

4.97


2,833,417

35,684

5.05

(8)

Total loans

14,009,601

159,915

4.53


13,297,724

153,335

4.62

(9)

Loss share receivable

47,190

(5,600)

(46.43)


55,751

(7,398)

(52.50)

607

Total loans and loss share receivable

14,056,791

154,315

4.36


13,353,475

145,937

4.38

(2)

Mortgage loans held for sale

200,895

1,847

3.68


202,691

1,380

2.72

96

Investment securities (2)

2,697,617

13,729

2.16


2,469,050

12,191

2.08

8

Other earning assets

756,277

1,186

0.62


663,071

1,037

0.63

(1)

Total earning assets

17,711,580

171,077

3.86


16,688,287

160,545

3.87

(1)

Allowance for loan losses

(130,367)




(129,069)




Non-earning assets

2,022,857




1,886,068




Total assets

$ 19,604,070




$ 18,445,286













LIABILITIES AND SHAREHOLDERS' EQUITY






Interest-bearing liabilities:









NOW accounts

$   2,655,069

1,725

0.26


$   2,639,140

1,765

0.27

(1)

Savings and money market accounts

7,104,789

6,459

0.36


6,228,052

5,058

0.33

3

Certificates of deposit

2,343,794

5,040

0.85


2,331,537

4,959

0.85

Total interest-bearing deposits(3)

12,103,652

13,224

0.43


11,198,729

11,782

0.42

1

Short-term borrowings

262,250

116

0.17


461,742

220

0.19

(2)

Long-term debt

343,016

2,620

2.99


446,748

2,866

2.54

45

Total interest-bearing liabilities

12,708,918

15,960

0.50


12,107,219

14,868

0.49

1

Non-interest-bearing deposits

4,265,912




3,933,468




Non-interest-bearing liabilities

206,030




172,473




Total liabilities

17,180,860




16,213,160




Total shareholders' equity

2,423,210




2,232,126




Total liabilities and shareholders' equity

$ 19,604,070




$ 18,445,286













Net interest income/Net interest spread


$          155,117

3.36 %



$          145,677

3.38 %

(2)

Tax-equivalent benefit


2,185

0.05



1,996

0.05

Net interest income (TE)/Net interest margin (TE) (1)


$          157,302

3.50 %



$          147,673

3.52 %

(2)










(1)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%.

(2)

Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting.

(3)

Total deposit costs for the three months ended September 30, 2015 and June 30, 2015 total 0.32% and 0.31%, respectively.














For the Three Months Ended


3/31/2015


12/31/2014

9/30/2014

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

$   7,882,782

$            83,645

4.31 %


$   7,656,992

$            89,574

4.65 %


$          7,467,597

$             98,562

5.24 %

Residential mortgage loans

1,099,518

13,594

4.95


1,069,555

13,094

4.90


1,104,692

13,321

4.82

Consumer loans

2,581,646

32,952

5.18


2,545,205

33,994

5.30


2,437,544

33,589

5.47

Total loans

11,563,946

130,191

4.56


11,271,752

136,662

4.82


11,009,833

145,472

5.25

Loss share receivable

66,165

(6,013)

(36.35)


85,733

(13,224)

(60.36)


111,383

(25,120)

(88.25)

Total loans and loss share receivable

11,630,111

124,178

4.32


11,357,485

123,438

4.32


11,121,216

120,352

4.30

Mortgage loans held for sale

133,304

1,515

4.55


121,439

1,200

3.95


163,510

1,594

3.90

Investment securities (2)

2,307,525

12,097

2.22


2,234,235

11,766

2.24


2,137,735

10,994

2.20

Other earning assets

402,499

795

0.80


431,603

872

0.80


567,897

853

0.60

Total earning assets

14,473,439

138,585

3.90


14,144,762

137,276

3.88


13,990,358

133,793

3.83

Allowance for loan losses

(128,519)




(134,177)




(133,443)



Non-earning assets

1,612,693




1,603,738




1,619,293



Total assets

$ 15,957,613




$ 15,614,323




$        15,476,208















LIABILITIES AND SHAREHOLDERS' EQUITY












Interest-bearing liabilities:












NOW accounts

$   2,464,760

1,552

0.26


$   2,271,836

1,526

0.27


$          2,228,378

1,546

0.28

Savings and money market accounts

4,834,244

3,375

0.28


4,908,247

3,694

0.30


4,877,051

3,588

0.29

Certificates of deposit

2,150,447

4,411

0.83


2,105,623

4,272

0.80


2,060,055

3,983

0.77

Total interest-bearing deposits(3)

9,449,451

9,338

0.40


9,285,706

9,492

0.41


9,165,484

9,117

0.39

Short-term borrowings

747,058

363

0.19


713,384

342

0.19


919,869

406

0.17

Long-term debt

423,495

3,080

2.91


395,410

2,762

2.73


358,970

2,519

2.75

Total interest-bearing liabilities

10,620,004

12,781

0.49


10,394,500

12,596

0.48


10,444,323

12,042

0.46

Non-interest-bearing deposits

3,312,357




3,228,773




3,057,513



Non-interest-bearing liabilities

135,477




159,818




168,262



Total liabilities

14,067,838




13,783,091




13,670,098



Total shareholders' equity

1,889,775




1,831,232




1,806,110




$ 15,957,613




$ 15,614,323




$        15,476,208















Net interest income/Net interest spread


$          125,804

3.41 %



$          124,680

3.40 %



$           121,751

3.37 %

Tax-equivalent benefit


2,040

0.06



2,055

0.06



2,134

0.06

Net interest income (TE)/Net interest margin (TE) (1)


$          127,844

3.54 %



$          126,735

3.53 %



$           123,885

3.49 %













(1)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%.

(2)

Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting.

(3)

Total deposit costs for the three months ended March 31, 2015, December 31, 2014 and September 30, 2014 total 0.30% for each three month period.

 


TABLE 9 - IBERIABANK CORPORATION

YEAR-TO-DATE AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)











For the Nine Months Ended



9/30/2015


9/30/2014

Basis Point Change

ASSETS

Average Balance

Interest Income/Expense

Yield/Rate


Average Balance

Interest Income/Expense

Yield/Rate

Yield/Rate

Earning assets:









Commercial loans

$   9,032,618

$          297,199

4.40 %


$   7,158,634

$          270,227

5.05 %

(65)

Residential mortgage loans

1,156,101

41,129

4.74


802,095

31,469

5.23

(49)

Consumer loans

2,777,330

105,113

5.06


2,231,190

88,348

5.29

(23)

Total loans

12,966,049

443,441

4.57


10,191,919

390,044

5.12

(55)

Loss share receivable

56,299

(19,011)

(44.53)


132,306

(61,393)

(61.19)

1,666

Total loans and loss share receivable

13,022,348

424,430

4.36


10,324,225

328,651

4.27

9

Mortgage loans held for sale

179,211

4,742

3.53


133,455

3,953

3.95

(42)

Investment securities (2)

2,492,826

38,017

2.15


2,120,226

32,911

2.22

(7)

Other earning assets

608,578

3,018

0.66


351,232

2,024

0.77

(11)

Total earning assets

16,302,963

470,207

3.87


12,929,138

367,539

3.83

4

Allowance for loan losses

(129,325)




(135,050)




Non-earning assets

1,842,042




1,506,864




Total assets

$ 18,015,680




$ 14,300,952













LIABILITIES AND SHAREHOLDERS' EQUITY









Interest-bearing liabilities:









NOW accounts

$   2,587,020

5,042

0.26


$   2,229,454

4,480

0.27

(1)

Savings and money market accounts

6,064,012

14,892

0.33


4,517,549

9,108

0.27

6

Certificates of deposit

2,275,968

14,410

0.85


1,817,146

10,009

0.74

11

Total interest-bearing deposits(3)

10,927,000

34,344

0.42


8,564,149

23,597

0.37

5

Short-term borrowings

488,574

699

0.19


805,167

1,022

0.17

2

Long-term debt

404,125

8,566

2.80


314,924

7,488

3.14

(34)

Total interest-bearing liabilities

11,819,699

43,609

0.49


9,684,240

32,107

0.44

5

Non-interest-bearing deposits

3,840,738




2,811,276




Non-interest-bearing liabilities

171,585




139,821




Total liabilities

15,832,022




12,635,337




Total shareholders' equity

2,183,658




1,665,615





$ 18,015,680




$ 14,300,952













Net interest income/Net interest spread


$          426,598

3.38 %



$          335,432

3.39 %

(1)

Tax-equivalent benefit


6,221

0.05



6,554

0.07

(2)

Net interest income (TE)/Net interest margin (TE) (1)


$          432,819

3.52 %



$          341,986

3.51 %

1










(1)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%.

(2)

Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting.

(3)

Total deposit costs for the nine months ended September 30, 2015 and 2014 total 0.31% and 0.28%, respectively.

 

Table 10 - IBERIABANK CORPORATION

LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS

(Dollars in millions)






















For the Three Months Ended


9/30/2015


6/30/2015


3/31/2015


12/31/2014


9/30/2014

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

$   105

$ 10,571

3.90 %


$     99

$ 10,147

3.88 %


$     94

$   9,734

3.90 %


$     95

$   9,439

3.94 %


$     91

$   9,019

3.97 %

Acquired loans (1)

49

3,486

5.59


47

3,206

5.82


30

1,896

6.34


29

1,919

5.97


29

2,102

5.49

Total loans

$   154

$ 14,057

4.36 %


$   146

$ 13,353

4.38 %


$   124

$ 11,630

4.32 %


$   124

$ 11,358

4.32 %


$   120

$ 11,121

4.30 %






















9/30/2015


6/30/2015


3/31/2015


12/31/2014


9/30/2014

ADJUSTMENTS

Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield

Legacy loans, net

$     —

$        —

—%


$     —

$        —

—%


$     —

$        —

—%


$     —

$        —

—%


$     —

$        —

—%

Acquired loans (1)

(8)

92

(0.90)


(9)

85

(1.23)


(9)

67

(2.00)


(6)

55

(1.38)


(4)

44

(0.88)

Total loans

$     (8)

$        92

(0.24)%


$     (9)

$        85

(0.30)%


$     (9)

$        67

(0.33)%


$     (6)

$        55

(0.23)%


$     (4)

$        44

(0.16)%






















9/30/2015


6/30/2015


3/31/2015


12/31/2014


9/30/2014

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

$   105

$ 10,571

3.90 %


$     99

$ 10,147

3.88 %


$     94

$   9,734

3.90 %


$     95

$   9,439

3.94 %


$     91

$   9,019

3.97 %

Acquired loans (1)

41

3,578

4.69


38

3,291

4.58


21

1,963

4.28


23

1,974

4.59


25

2,146

4.61

Total loans

$   146

$ 14,149

4.12 %


$   137

$ 13,438

4.08 %


$   115

$ 11,697

3.99 %


$   118

$ 11,413

4.09 %


$   116

$ 11,165

4.13 %





















(1) Acquired loans include the impact of the FDIC Indemnification Asset.

 

Table 11 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)




















For the Three Months Ended


9/30/2015


6/30/2015


3/31/2015


Pre-tax


After-tax (2)


Per share (3)


Pre-tax


After-tax (2)


Per share (3)


Pre-tax


After-tax (2)


Per share (3)

Net income (GAAP)

$   62,565


$      42,475


$            1.03


$   45,191


$      30,836


$            0.79


$ 36,205


$      25,126


$            0.75



















Non-interest income adjustments:


















Gain on sale of investments and other non-interest income

(2,221)


(1,444)


(0.04)


(1,266)


(823)


(0.02)


(389)


(252)


(0.01)



















Non-interest expense adjustments:


















Merger-related expenses

2,212


1,438


0.04


12,732


8,392


0.22


9,296


6,139


0.18

Severance expenses

304


198


0.00


406


264


0.01


41


27


Loss on sale of long-lived assets, net of impairment

1,713


1,113


0.03


1,571


1,021


0.03


579


376


0.01

Other non-operating non-interest expense

242


157


0.00


2,050


1,333


0.03


450


292


0.01

Total non-interest expense adjustments

4,471


2,906


0.07


16,759


11,010


0.29


10,366


6,834


0.20

Income tax benefits

-


-


-


-


-


-


-


-


-

Operating earnings (non-GAAP)

64,815


43,937


1.07


60,684


41,023


1.05


46,182


31,708


0.95

Provision for loan losses

5,062


3,291


0.08


8,790


5,713


0.15


5,345


3,475


0.10

Pre-provision operating earnings (non-GAAP)

$   69,877


$      47,228


$            1.15


$   69,474


$      46,736


$            1.20


$ 51,527


$      35,183


$            1.05

 


For the Three Months Ended


12/31/2014 (1)


9/30/2014 (1)


Pre-tax


After-tax (2)


Per share (3)


Pre-tax


After-tax(2)


Per share (3)

Net income (GAAP)

$   46,122


$      35,936


$            1.07


$   43,037


$      30,893


$            0.92













Non-interest income adjustments:












Gain on sale of investments and other non-interest income

(374)


(243)


(0.01)


(582)


(378)


(0.01)













Non-interest expense adjustments:












Merger-related expenses

1,955


1,496


0.04


1,752


1,139


0.04

Severance expenses

139


91



1,214


789


0.02

Loss on sale of long-lived assets, net of impairment

1,078


701


0.02


4,229


2,749


0.08

Other non-operating non-interest expense

2


1



(799)


(520)


(0.02)

Total non-interest expense adjustments

3,174


2,289


0.07


6,396


4,157


0.12

Income tax benefits

-


(2,959)


(0.09)


-


-


-

Operating earnings (non-GAAP)

48,922


35,023


1.05


48,851


34,672


1.04

Provision for loan losses

6,495


4,222


0.11


5,714


3,714


0.11

Pre-provision operating earnings (non-GAAP)

$   55,417


$      39,245


$            1.17


$   54,565


$      38,386


$            1.15














For the Nine Months Ended


9/30/2015


9/30/2014 (1)


Pre-tax


After-tax (2)


Per share (3)


Pre-tax


After-tax (2)


Per share (3)

Net income (GAAP)

$ 143,961


$      98,437


$            2.59


$   94,942


$      69,445


$            2.21













Non-interest income adjustments:












Gain on sale of investments and other non-interest income

(3,876)


(2,519)


(0.07)


(2,382)


(2,076)


(0.06)













Non-interest expense adjustments:












Merger-related expenses

24,240


15,969


0.42


13,138


8,608


0.27

Severance expenses

751


489


0.01


6,812


4,427


0.14

Loss on sale of long-lived assets, net of impairment

3,863


2,510


0.07


5,994


3,896


0.12

Other non-operating non-interest expense

2,742


1,782


0.05


(599)


(389)


(0.01)

Total non-interest expense adjustments

31,596


20,750


0.55


25,345


16,542


0.52

Income tax benefits






Operating earnings (non-GAAP)

171,681


116,668


3.07


117,905


83,911


2.67

Provision for loan losses

19,197


12,479


0.33


12,565


8,167


0.26

Pre-provision operating earnings (non-GAAP)

$ 190,878


$    129,147


$            3.40


$ 130,470


$      92,078


$            2.93



(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015, and errors in mortgage income during the third quarter of 2014, as previously disclosed.

(2)

After-tax amounts computed using a marginal tax rate of 35%.

(3)

Diluted per share amounts may not appear to foot due to rounding.

 

Table 12 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)












For the Three Months Ended


9/30/2015


6/30/2015


3/31/2015


12/31/2014 (1)


9/30/2014 (1)

Net interest income (GAAP)

$ 155,117


$ 145,677


$ 125,804


$      124,680


$    121,751

Add: Effect of tax benefit on interest income

2,185


1,996


2,040


2,055


2,134

Net interest income (TE) (Non-GAAP) (2)

157,302


147,673


127,844


126,735


123,885











Non-interest income (GAAP)

57,478


61,513


48,899


47,072


47,112

Add: Effect of tax benefit on non-interest income

589


579


588


566


564

Non-interest income (TE) (Non-GAAP)(2)

58,067


62,092


49,487


47,638


47,676

Taxable equivalent revenues (Non-GAAP) (2)

215,369


209,765


177,331


174,373


171,561

Securities gains and other non-interest income

(2,221)


(1,266)


(389)


(374)


(582)

Taxable equivalent operating revenues (Non-GAAP) (2)

$ 213,148


$ 208,499


$ 176,942


$      173,999


$    170,979











Total non-interest expense (GAAP)

$ 144,968


$ 153,209


$ 133,153


$      119,135


$    120,112

Less: Intangible amortization expense

2,338


2,155


1,523


1,618


1,623

Tangible non-interest expense (Non-GAAP) (3)

142,630


151,054


131,630


117,517


118,489

Less: Merger-related expense

2,212


12,732


9,296


1,955


1,752

Severance expense

304


406


41


139


1,214

Loss on sale of long-lived assets, net of impairment

1,713


1,571


579


1,078


4,229

Other non-operating non-interest expense

242


2,050


450


2


(799)

Tangible operating non-interest expense (Non-GAAP) (3)

$ 138,159


$ 134,295


$ 121,264


$      114,343


$    112,093











Return on average assets (GAAP)

0.86 %


0.67 %


0.64 %


0.91 %


0.79 %

Effect of non-operating revenues and expenses

0.03


0.22


0.17


(0.02)


0.10

Operating return on average assets (Non-GAAP)

0.89 %


0.89 %


0.81 %


0.89 %


0.89 %











Efficiency ratio (GAAP)

68.2 %


73.9 %


76.2 %


69.4 %


71.1 %

Effect of tax benefit related to tax-exempt income

(0.9)


(0.9)


(1.1)


(1.1)


(1.1)

Efficiency ratio (TE) (Non-GAAP) (2)

67.3 %


73.0 %


75.1 %


68.3 %


70.0 %

Effect of amortization of intangibles

(1.1)


(1.0)


(0.9)


(0.9)


(0.9)

Effect of non-operating items

(1.4)


(7.6)


(5.7)


(1.7)


(3.5)

Tangible operating efficiency ratio (TE) (Non-GAAP)(2)(3)

64.8 %


64.4 %


68.5 %


65.7 %


65.6 %











Return on average common equity (GAAP)

7.09 %


5.54 %


5.39 %


7.79 %


6.79 %

Effect of intangibles (3)

3.73


2.93


2.53


3.67


3.32

Effect of non-operating revenues and expenses

0.36


2.67


2.00


(0.29)


1.18

Return on average operating tangible common equity (Non-GAAP)

11.18 %


11.14 %


9.92 %


11.17 %


11.29 %



(1)

Certain balances and amounts in prior periods have been restated for the effect of the adoption of ASU No. 2014-01 on January 1, 2015, and errors in mortgage income during the third quarter of 2014, as previously disclosed.

(2)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%.

(3)

Tangible calculations eliminate the effect of goodwill and acquisition-related intangibles and the corresponding amortization expense on a tax-effected basis where applicable.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/iberiabank-corporation-reports-third-quarter-results-300164267.html

SOURCE IBERIABANK Corporation


Source: PR Newswire (October 21, 2015 - 5:55 PM EDT)

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