July 27, 2016 - 6:00 PM EDT
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IBERIABANK Corporation Reports Second Quarter Results

LAFAYETTE, La., July 27, 2016 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 129-year-old IBERIABANK (www.iberiabank.com), reported financial results for the second quarter ended June 30, 2016.  For the quarter, the Company reported income available to common shareholders of $50.0 million, or $1.21 fully diluted earnings per common share ("EPS").  On a non-GAAP basis, EPS excluding non-core revenues and non-core expenses ("Core EPS") in the second quarter of 2016 was $1.18 per common share (refer to press release supplemental tables for a reconciliation of GAAP to non-GAAP metrics).  Both EPS and Core EPS in the second quarter of 2016 were within management's guidance range and exceeded consensus analyst expectations.

Daryl G. Byrd, President and Chief Executive Officer, commented, "We are very pleased to report solid bottom-line financial performance in the second quarter and continued progress toward achieving our strategic goals. During the second quarter, our energy exposure declined materially. In addition, stabilization of credit conditions resulted in a lower provision on a linked quarter basis. We experienced strong loan growth and seasonably strong fee income expansion.  Good revenue growth combined with continued cost containment efforts resulted in improved operating leverage. During this quarter, we also bolstered our capital position through the completion of our second preferred stock offering and bought back common shares in conjunction with our recently authorized buyback program. We believe it was a very active and dynamic quarter."

Byrd continued, "As a result of these actions we saw tremendous momentum on multiple strategic fronts. This progress included hitting the 1.00% mark on return on average assets on an annualized basis, growing tangible book value per share by 3%, bringing the dividend payout ratio to 28%, attaining our non-GAAP core tangible efficiency goal of 60%, progressing on our energy-related loans, and continuing to strengthen our balance sheet. We believe our unique business model creates long-term shareholder value by generating high-quality client growth, while maintaining strong diversification and favorable financial performance. We believe these efforts were evident in our financial and operating results this quarter."

Highlights for the Second Quarter of 2016 and at June 30, 2016:

  • During the second quarter, the Company continued to reduce energy-related exposures as a result of reduced commitments, increased levels of loan pay-downs, and charge-offs of specific energy-related credits. Energy-related loans ("energy loans") decreased $70 million, or 10%, between March 31, 2016 and June 30, 2016, and at June 30, 2016, equated to 4.5% of total loans. At June 30, 2016, the Company had approximately $35 million in aggregate reserves for energy loans and unfunded commitments, a decrease of $4 million, or 10%, since March 31, 2016. At quarter-end, energy-related reserves equated to 5.3% of energy loans outstanding.
  • The Company's net interest margin declined three basis points on a linked quarter basis to 3.61%, which approximated management's expectations. The Company's cash margin declined seven basis points on a linked quarter basis.
  • On a linked quarter basis, the Company's revenues increased $10.4 million, or 5%, and non-GAAP core revenues increased $8.8 million, or 4%. Over the same period, expenses increased $2.1 million, or 1%, and non-GAAP core expenses increased $4.6 million, or 3%. The efficiency ratio improved from 63.3% to 61.3%, while non-GAAP core tangible efficiency ratio improved from 60.3% to 60.0% on a linked quarter basis.
  • Total loan growth was $271 million, or 2%, between March 31, 2016 and June 30, 2016. Legacy loan growth, which excludes all assets covered under FDIC loss share agreements and other non-covered acquired assets (collectively, "Acquired Assets"), increased $456 million, or 4% (16% annualized rate), on a period-end basis and $418 million, or 4% (15% annualized rate), on an average balance basis.
  • Total deposits decreased $399 million, or 2%, between quarter-ends, and increased $34 million, or less than 1%, on an average balance basis.  Non-interest-bearing deposits increased $55 million, or 1%, between quarter-ends and increased $76 million, or 2%, on an average balance basis.

 

Table A - Summary Financial Results


(Dollars in thousands, except per share data)















For the Three Months Ended



6/30/2016



3/31/2016


% Change


6/30/2015


% Change


GAAP BASIS:












Net income available to common shareholders

$        49,956



$        40,193


24.3


$        30,836


62.0


Earnings per common share - diluted

1.21



0.97


24.7


0.79


53.2














Average gross loans and leases

$ 14,570,945



$ 14,354,410


1.5


$ 13,297,724


9.6


Average total deposits

15,979,391



15,945,069


0.2


15,132,197


5.6


Net interest margin (TE)(1)

3.61

%


3.64

%



3.52

%















Total revenues

$      227,670



$      217,248


4.8


$      207,190


9.9


Total non-interest expense

139,504



137,452


1.5


153,209


(8.9)


Efficiency ratio (TE) (1)

61.3

%


63.3

%



73.9

%



Return on average assets

1.00



0.82




0.67




Return on average common equity

8.05



6.59




5.54
















NON-GAAP BASIS (2):












Core revenues

$      225,881



$      217,052


4.1


$      205,924


9.7


Core non-interest expense

139,443



134,860


3.4


136,450


2.2


Core earnings per common share - diluted

1.18



1.01


16.8


1.05


12.4


Core tangible efficiency ratio (TE) (1) (4)

60.0

%


60.3

%



64.4

%



Core return on average assets

0.98



0.85




0.89




Core return on average tangible common equity (4)

11.64



10.26




11.14




Net interest margin (TE) - cash basis(1)(3)

3.41



3.48




3.29





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

(2)  See Table 12 and Table 13 for GAAP to Non-GAAP reconciliations.

(3)  See Table 11 for adjustments related to purchase discounts on acquired loans and related accretion and the impact of the FDIC indemnification asset.

(4)  Tangible calculations eliminate the effect of goodwill and acquisition related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable.

 

Operating Results

On a linked quarter basis, average loan volume (including the FDIC loss share receivable) increased $211 million, or 1%, and the associated tax-equivalent yield decreased two basis points.  Over that period, average legacy loans increased $418 million, or 4%, with a decrease in yield of two basis points, and average Acquired Assets (including the FDIC loss share receivable) decreased $207 million, or 7%, and the yield increased 17 basis points.  All other average earning assets, including investment securities, mortgage loans held for sale, and interest-bearing deposits in other institutions, increased a total of $70 million, or 2%.

On a linked quarter basis, average earning assets increased $282 million, or 2%, and the average earning asset yield decreased two basis points. Average interest-bearing liabilities increased $158 million, or 1%, and the cost of interest-bearing liabilities increased one basis point.  As a result, the net interest spread and margin each declined three basis points.  On a linked quarter basis, tax-equivalent net interest income increased $1.3 million, or 1%.

In the second quarter of 2016, non-interest income increased $9.1 million, or 16%, compared to the first quarter of 2016.  Non-core non-interest income totaled $1.8 million in the second quarter of 2016, as a result of gains on the sale of investment securities sold under favorable temporary market conditions.  Core non-interest income increased $7.5 million, or 13%, on a linked quarter basis.  The primary changes in core non-interest income on a linked quarter basis included:

  • Increased mortgage income of $6.1 million, or 30%; and
  • Increased title revenues of $1.4 million, or 29%.

In the second quarter of 2016, the Company originated $709 million in residential mortgage loans, up $193 million, or 37%, on a linked quarter basis.  Client loan refinancing opportunities accounted for approximately 16% of mortgage loan applications in the second quarter of 2016, compared to 23% on a linked quarter basis.  The Company sold $673 million in mortgage loans during the second quarter of 2016, up $185 million, or 38%, on a linked quarter basis.  Loans held for sale increased from $193 million at March 31, 2016, to $230 million at June 30, 2016.  The mortgage origination locked pipeline remained steady at $345 million between quarter-ends, and was up $16 million, or 5%, over the comparable period last year.  At July 22, 2016, the locked pipeline was $357 million, up slightly compared to June 30, 2016.  The improvement in mortgage income on a linked quarter basis was primarily the result of seasonal demand leading to higher volumes of mortgage loan originations and a stable mortgage locked pipeline.

Non-interest expense increased $2.1 million, or 1%, on a linked quarter basis, while non-core expense decreased $2.5 million and core expense increased $4.6 million, or 3%.  Core expense changes included the following on a linked-quarter basis:

  • Increased mortgage commission expenses of $2.7 million as a result of higher mortgage loan origination volumes;
  • Increased annual incentives expense of $1.7 million;
  • Increased other salaries and benefits expense of $0.3 million; and
  • Increased professional services expense of $0.6 million; partially offset by
  • Decreased travel and entertainment expenses of $0.4 million.

The Company's core tangible efficiency ratio in the second quarter of 2016 was 60.0%, down from 60.3% in the first quarter of 2016.  The Company continues to focus on expense containment and revenue enhancement strategies intended to further improve its targeted core tangible efficiency ratio.  

 

Table B - Summary Financial Condition Results

(Dollars in thousands, except per share data)

















As of and For the Three Months Ended



6/30/2016



3/31/2016



% Change


6/30/2015



% Change

PERIOD-END BALANCES:














Total loans and leases

$ 14,722,561



$ 14,451,244



1.9


$ 13,950,563



5.5


Legacy loans and leases

11,984,849



11,528,697



4.0


10,395,553



15.3


Total deposits

15,862,027



16,260,566



(2.5)


16,119,541



(1.6)















ASSET QUALITY RATIOS (LEGACY):














Past due loans to total loans (1)

1.18

%


1.18

%




0.78

%




Non-performing assets to total assets (2)

0.63



0.65





0.55





Classified assets to total assets (3)

2.09



2.21





0.84


















CAPITAL RATIOS:














Tangible common equity ratio (Non-GAAP) (4) (5)

9.00

%


8.83

%




8.68

%




Tier 1 leverage ratio

9.70



9.41





9.24





Total risk-based capital ratio

12.44



12.21





11.49


















PER COMMON SHARE DATA:














Book value

$          61.05



$          59.93



1.9


$          57.53



6.1


Tangible book value (4) (5)

42.53



41.38



2.8


39.00



9.1


Closing stock price

59.73



51.27



16.5


68.23



(12.5)


Cash dividends

0.34



0.34




0.34





(1)

Past due loans include non-accruing loans.

(2)

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

(3)

Classified assets consist of $364 million, $378 million and $131 million at June 30, 2016, March 31, 2016, and June 30, 2015, respectively.

(4)

See Table 12 and Table 13 for GAAP to Non-GAAP reconciliations.

(5)

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

 

Loans

Total loans increased $271 million, or 2%, between March 31, 2016, and June 30, 2016.  Over that period, Acquired Assets decreased $185 million, or 6%, and legacy loans increased $456 million, or 4% (16% annualized rate), including a decrease in total energy loans of $70 million, or 10%, and a decline in indirect automobile loans of $31 million, or 15%.  During the second quarter of 2016, legacy commercial loans increased $358 million, or 4% (which included $52 million in small business loan growth, up 5%, or 18% annualized rate), legacy consumer loans increased $34 million, or 1%, and legacy mortgage loans increased $64 million, or 9% (35% annualized rate).  Period-end loan growth during the second quarter of 2016 was strongest in the Memphis, New Orleans, Orlando, Southeast Florida, and Tampa markets.  Funded loan origination and renewal mix in the second quarter of 2016 was 36% fixed rate and 64% floating rate, and total loans outstanding (excluding non-accruals) were 44% fixed and 56% floating.  Commitments originated and/or renewed during the second quarter of 2016 were a record level of $1.6 billion (up 17% on a linked quarter basis).  Loans originated and/or renewed during the second quarter of 2016 totaled $1.0 billion (up 14% on a linked quarter basis).  At June 30, 2016, the Company's commercial loan pipeline was approximately $1.0 billion.

 

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


6/30/2016


3/31/2016


6/30/2015


$

%


Annualized


$

%


6/30/2016

3/31/2016

Legacy loans:

















Commercial

$   8,784,789


$   8,427,154


$   7,538,703


357,635

4.2


16.8 %


1,246,086

16.5


73.3 %

73.1 %

Residential mortgage

794,701


730,621


616,497


64,080

8.8


35.2 %


178,204

28.9


6.6 %

6.3 %

Consumer

2,405,359


2,370,922


2,240,353


34,437

1.5


6.0 %


165,006

7.4


20.1 %

20.6 %

Total legacy loans

11,984,849


11,528,697


10,395,553


456,152

4.0


16.0 %


1,589,296

15.3


100.0 %

100.0 %


















Acquired loans:

















Balance at beginning of period

2,922,547


3,136,908


2,978,592


(214,361)

(6.8)




(56,045)

(1.9)




Loans acquired during the period



801,126





(801,126)

(100.0)




Net paydown activity

(184,835)


(214,361)


(224,708)


29,526

(13.8)




39,873

(17.7)




Total acquired loans

2,737,712


2,922,547


3,555,010


(184,835)

(6.3)




(817,298)

(23.0)




Total loans

$ 14,722,561


$ 14,451,244


$ 13,950,563


271,317

1.9




771,998

5.5




 

Energy loans outstanding totaled $662 million at June 30, 2016, down $70 million, or 10%, compared to March 31, 2016, and equated to approximately 4.5% of total loans (down from 5.1% at March 31, 2016).  Energy-related commitments totaled $1.1 billion at June 30, 2016, down $144 million, or 12%, compared to March 31, 2016. Loans to exploration and production companies accounted for 49% of energy loans outstanding and 53% of energy loan commitments at June 30, 2016.  Midstream companies accounted for 19% of each energy loans and energy loan commitments, and service companies accounted for 32% of energy loans and 28% of energy loan commitments.  At June 30, 2016, $61 million in energy loans were on non-accrual status (compared to $46 million at March 31, 2016), and $3 million in energy loans were past due greater than 30 days at quarter-end.  At June 30, 2016,  approximately 37% of energy loans were classified and 47% were criticized, compared to 39% and 49%, respectively at March 31, 2016.  To date, the Company has experienced $8 million in energy-related charge-offs.  Additional information regarding the Company's energy loan and commitment exposure is provided in Table 8 of this press release and in the supplemental investor presentation.

At June 30, 2016, the Company's indirect automobile lending business had approximately $182 million in loans outstanding, down $31 million, or 15%, compared to March 31, 2016 (1.2% of total loans outstanding compared to 1.5% at March 31, 2016).

Deposits

Total deposits decreased $399 million, or 2%, between March 31, 2016 and June 30, 2016.  Over that period, non-interest-bearing deposits increased $55 million, or 1%, and equated to 29% of total deposits at June 30, 2016.  Similarly, NOW accounts increased $25 million, or  less than 1%, savings deposits increased $25 million, or 3%, and time deposits increased $69 million, or 3%. Between March 31, 2016 and June 30, 2016, money market accounts decreased $573 million, or 10%.  The decline in money market deposit balances was primarily the result of movement in a few large commercial client balances due to seasonal and specific deployment opportunities. Deposit growth during the second quarter of 2016 was strongest in the Tampa, Birmingham, and Baton Rouge markets.  

 

Table D - Period-End Deposits

(Dollars in thousands)








Linked Qtr Change


Year/Year Change


Mix


6/30/2016


3/31/2016


6/30/2015


$

%

Annualized


$

%


6/30/2016

3/31/2016

Non-interest-bearing

$   4,539,254


$   4,484,024


$   4,166,850


55,230

1.2

4.9 %


372,404

8.9


28.6 %

27.6 %

NOW accounts

2,985,284


2,960,562


2,623,697


24,722

0.8

3.3 %


361,587

13.8


18.8 %

18.2 %

Money market accounts

5,391,390


5,964,029


6,199,405


(572,639)

(9.6)

(38.4)%


(808,015)

(13.0)


34.0 %

36.7 %

Savings accounts

796,855


772,117


725,633


24,738

3.2

12.8 %


71,222

9.8


5.0 %

4.7 %

Time deposits

2,149,244


2,079,834


2,403,956


69,410

3.3

13.3 %


(254,712)

(10.6)


13.6 %

12.8 %

Total deposits

$ 15,862,027


$ 16,260,566


$ 16,119,541


(398,539)

(2.5)

(9.8)%


(257,514)

(1.6)


100.0 %

100.0 %

 

On an average balance and linked quarter basis, non-interest-bearing deposits increased $76 million, or 2%, and interest-bearing deposits decreased $41 million, or less than 1%.  The rate on average interest-bearing deposits in the second quarter of 2016 was 0.42%, unchanged on a linked quarter basis.

Other Assets And Funding

On an average balance and linked quarter basis, the investment portfolio was stable at $2.9 billion in the second quarter of 2016.  On a period-end basis, the investment portfolio equated to $2.9 billion, or 14% of total assets at June 30, 2016, unchanged compared to March 31, 2016.  The investment portfolio had an effective duration of 2.7 years at June 30, 2016, compared to 2.8 years at March 31, 2016.  The investment portfolio had a $52 million unrealized gain at June 30, 2016, up from $39 million at March 31, 2016.  The average yield on investment securities decreased seven basis points on a linked quarter basis, to 2.18% in the second quarter of 2016.  The Company holds in its investment portfolio primarily government agency securities.  Municipal securities comprised 11% of total investments at June 30, 2016.  The Company holds for investment no sovereign debt, equity securities, trust preferred securities, or derivative exposure to foreign counterparties.

On a linked quarter basis, average short-term borrowings (including repurchase agreements) increased $130 million, or 26%, and the cost of short-term borrowings increased three basis points.  At June 30, 2016, short-term borrowings (including repurchase agreements) increased $267 million, or 54%, compared to March 31, 2016.  On a linked quarter basis, average long-term debt increased $70 million, or 13%, and the cost of long-term debt decreased 11 basis points to 2.24%.  The cost of average interest-bearing liabilities was 0.50% in the second quarter of 2016, up one basis point on a linked quarter basis.

Asset Quality

Between March 31, 2016 and June 30, 2016, legacy non-performing assets ("NPAs") decreased $1 million, or 1%.  At June 30, 2016, NPAs included $8 million in former bank branches and related real estate, a decrease of 28% compared to March 31, 2016.  At June 30, 2016, legacy NPAs equated to 0.63% of total assets, down from 0.65% at March 31, 2016, and 0.59% of total assets excluding bank-related properties, unchanged from March 31, 2016.

Legacy loans past due 30 days or more (excluding non-accruing loans) increased $4 million, or 9%, and represented 0.39% of total legacy loans at June 30, 2016, compared to 0.37% at March 31, 2016.

Net charge-offs totaled $11.9 million in the second quarter of 2016, up $7.9 million compared to the first quarter of 2016.  Annualized net charge-offs equated to 0.33% of average loans in the second quarter of 2016, up 22 basis points on a linked quarter basis.  Energy loans accounted for approximately 65% of the net charge-offs incurred during the second quarter of 2016.  The energy-related net charge-offs were covered through specific reserves accrued in prior quarters.  The Company's provision for loan losses decreased $3.0 million, or 20%, on a linked quarter basis to $11.9 million.

Capital Position

At June 30, 2016, the Company reported a non-GAAP tangible common equity ratio of 9.00%, up 17 basis points compared to March 31, 2016, and the preliminary Tier 1 leverage ratio was 9.70%, up 29 basis points compared to March 31, 2016. The Company's preliminary calculation of its total risk-based capital ratio at June 30, 2016, was 12.44%, up 23 basis points compared to March 31, 2016.

At June 30, 2016, book value per common share was $61.05, up $1.12 per share, or 2%, compared to March 31, 2016. Tangible book value per common share was $42.53, up $1.15 per share, or 3%, compared to March 31, 2016.  Based on the closing stock price of the Company's common stock of $63.38 per share on July 27, 2016, this price equated to 1.04 times June 30, 2016 book value per common share and 1.49 times June 30, 2016 tangible book value per common share.

Cash Dividends On Common Stock.  On June 20, 2016, the Company declared a quarterly cash dividend of $0.34 per common share. This common dividend level equated to an annualized dividend rate of $1.36 per common share.  Based on the Company's closing common stock price on July 27, 2016, the indicated dividend yield was 2.15% per common share. The payment of dividends is at the discretion of the Board of Directors.

Series B Preferred Stock.  On August 5, 2015, the Company sold 3.2 million depositary shares, each representing a 1/400th interest in a share of non-cumulative perpetual preferred stock. The Series B preferred stock has an initial coupon equal to 6.625% for a period of 10 years, and thereafter floats at a rate of LIBOR plus 426.2 basis points. The Company raised approximately $80 million in gross proceeds from the transaction.  On July 5, 2016, the Company declared a semi-annual cash dividend of $0.828 per depositary share that is payable on August 1, 2016.

Series C Preferred Stock.  On May 9, 2016, the Company sold 2.3 million depositary shares, each representing a 1/400th interest in a share of non-cumulative perpetual preferred stock. The Series C preferred stock has an initial coupon equal to 6.60% for a period of 10 years, and thereafter floats at a rate of LIBOR plus 492 basis points. The Company raised approximately $57.5 million in gross proceeds from the transaction.  On June 27, 2016, the Company declared a quarterly cash dividend of $0.37 per depositary share that is payable on August 1, 2016.

Common Stock Repurchase Program.  On May 4, 2016, the Board of Directors of the Company authorized the repurchase of up to 950,000 shares of the Company's common stock. During the second quarter of 2016, the Company repurchased 202,506 common shares at a weighted average price of $57.61 per common share.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with 299 combined offices, including 199 bank branch offices and three loan production offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, and Georgia, 24 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 64 locations in 10 states.  The Company has eight locations with representatives of IBERIA Wealth Advisors in four states, and one IBERIA Capital Partners L.L.C. office in New Orleans.

The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC". The Company's Series B Preferred Stock and Series C Preferred Stock trade on the NASDAQ Global Select Market under the symbols "IBKCP" and "IBKCO", respectively.  The Company's common stock market capitalization was approximately $2.6 billion, based on the NASDAQ Global Select Market closing stock price on July 27, 2016.

The following 12 investment firms currently provide equity research coverage on the Company:

  • Bank of America Merrill Lynch
  • FBR & Co.
  • FIG Partners, LLC
  • Hovde Group, LLC
  • Jefferies & Co., Inc.
  • Keefe, Bruyette & Woods, Inc.
  • Piper Jaffray & Co.
  • Raymond James & Associates, Inc.
  • Robert W. Baird & Company
  • Sandler O'Neill + Partners, L.P.
  • Stephens, Inc.
  • SunTrust Robinson-Humphrey

Conference Call

In association with this earnings release, the Company will host a live conference call to discuss the financial results for the quarter just completed. The telephone conference call will be held on Thursday, July 28, 2016, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 8824131.  A replay of the call will be available until midnight Central Time on August 4, 2016 by dialing 1-877-344-7529. The confirmation code for the replay is 10089124.  The Company has prepared a PowerPoint presentation that supplements information contained in this press release.  The PowerPoint presentation may be accessed on the Company's web site, www.iberiabank.com, under "Investor Relations" and then "Financial Information" and "Presentations."

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with GAAP. The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. Non-GAAP measures in this press release include but are not limited to descriptions such as core, tangible, and pre-tax pre-provision. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that in management's opinion can distort period-to-period comparisons of the Company's performance. Transactions that are typically excluded from non-GAAP performance measures include realized and unrealized gains/losses on former bank owned real estate, realized gains/losses on securities, income tax gains/losses, merger related charges and recoveries, litigation charges and recoveries, and debt repayment penalties. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.  Reconciliations of GAAP to non-GAAP disclosures are presented in the supplemental tables at the end of this release.  Please refer to the supplemental tables for these reconciliations.

Caution About Forward-Looking Statements

This press release contains "forward-looking statements," which may include forecasts of our financial results and condition, expectations for our operations and businesses, and our assumptions for those forecasts and expectations. Do not place undue reliance on forward-looking statements. Due to various factors, actual results may differ materially from our forward-looking statements. Factors that could cause our actual results to differ materially from our forward-looking statements are described under "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Risk Factors" and "Regulation and Supervision" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, and in other documents subsequently filed by the Company with the Securities and Exchange Commission, available at the SEC's website, http://www.sec.gov, and the Company's website, http://www.iberiabank.com. To the extent that statements in this press release relate to future plans, objectives, financial results or performance by the Company, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are generally identified by use of words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology.

Forward-looking statements represent management's beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance.  Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements.  Factors that could cause or contribute to such differences include, but are not limited to: the level of market volatility, our ability to execute our growth strategy, including the availability of future bank acquisition opportunities, our ability to execute on our revenue and efficiency improvement initiatives, unanticipated losses related to the completion and integration of mergers and acquisitions, refinements to purchase accounting adjustments for acquired businesses and assets and assumed liabilities in these transactions, adjustments of fair values of acquired assets and assumed liabilities and of deferred taxes in acquisitions, actual results deviating from the Company's current estimates and assumptions of timing and amounts of cash flows, utilization of non-GAAP financial measures, credit risk of our customers, resolution of assets subject to loss share agreements with the FDIC within the coverage periods, effects of the on-going correction in residential real estate prices and levels of home sales, our ability to satisfy new capital and liquidity standards such as those imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act and those adopted by the Basel Committee on Banking Supervision and federal banking regulators, sufficiency of our allowance for loan losses, changes in interest rates, access to funding sources, reliance on the services of executive management, competition for loans, deposits and investment dollars, competition from competitors with greater financial resources than the Company, reputational risk and social factors, compliance with laws and regulations, increases in FDIC insurance assessments, geographic concentration of our markets, economic and business conditions in our markets or nationally, including the impact of volatility of oil and gas prices, rapid changes in the financial services industry, significant litigation, cyber-security risks including dependence on our operational, technological, and organizational systems and infrastructure and those of third party providers of those services, hurricanes and other adverse weather events, and valuation of intangible assets. All information is as of the date of this press release. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.  

 

Table 1 - IBERIABANK CORPORATION


FINANCIAL HIGHLIGHTS


(Dollars in thousands, except per share data)



















As of and For the Three Months Ended


INCOME DATA:

6/30/2016



3/31/2016



% Change


6/30/2015



% Change



Net interest income

$  162,753



$  161,403



0.8


$  145,677



11.7



Net interest income (TE) (1)

165,085



163,764



0.8


147,673



11.8



Total revenues

227,670



217,248



4.8


207,190



9.9



Provision for loan losses

11,866



14,905



(20.4)


8,790



35.0



Non-interest expense

139,504



137,452



1.5


153,209



(8.9)



Net income available to common shareholders

49,956



40,193



24.3


30,836



62.0

















PER COMMON SHARE DATA:














Earnings available to common shareholders - basic

$        1.21



$        0.98



23.5


$        0.79



53.2



Earnings available to common shareholders - diluted

1.21



0.97



24.7


0.79



53.2



Core earnings (Non-GAAP) (2)

1.18



1.01



16.8


1.05



12.4



Book value

61.05



59.93



1.9


57.53



6.1



Tangible book value(2)(3)

42.53



41.38



2.8


39.00



9.1



Closing stock price

59.73



51.27



16.5


68.23



(12.5)



Cash dividends

0.34



0.34




0.34



















KEY RATIOS AND OTHER DATA (6):















Net interest margin (TE) (1)

3.61

%


3.64

%




3.52

%





Efficiency ratio

61.3



63.3





73.9






Core tangible efficiency ratio (TE) (Non-GAAP) (1) (2) (3)

60.0



60.3





64.4






Return on average assets

1.00



0.82





0.67






Return on average common equity

8.05



6.59





5.54






Core return on average tangible common equity (Non-GAAP) (2)(3)

11.64



10.26





11.14






Effective tax rate

33.4



34.1





31.8






Full-time equivalent employees

3,122



3,112





3,215




















CAPITAL RATIOS:















Tangible common equity ratio (Non-GAAP)(2) (3)

9.00

%


8.83

%




8.68

%





Tangible common equity to risk-weighted assets (3)

10.14



10.14





9.89






Tier 1 leverage ratio (4)

9.70



9.41





9.24






Common equity Tier 1 (CET 1) (transitional) (4)

10.06



10.11





9.97






Common equity Tier 1 (CET 1) (fully phased-in) (4)

9.99



10.02





9.71






Tier 1 capital (transitional) (4)

10.83



10.56





10.06






Total risk-based capital ratio(4)

12.44



12.21





11.49






Common stock dividend payout ratio

28.0



34.9





45.3






Classified assets to Tier 1 capital

25.1



28.4





20.0




















ASSET QUALITY RATIOS (LEGACY):















Non-performing assets to total assets (5)

0.63

%


0.65

%




0.55

%





Allowance for loan losses to loans

0.89



0.92





0.81






Net charge-offs to average loans (annualized)

0.38



0.15





0.14






Non-performing assets to total loans and OREO (5)

0.92



0.96





0.83







(1)

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

(2)

See Table 12 and Table 13 for GAAP to Non-GAAP reconciliations.

(3)

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

(4)

Capital ratios as of June 30, 2016 are estimated.

(5)

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

(6)

All ratios are calculated on an annualized basis for the periods indicated.

 

Table 2 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except per share data)


















For the Three Months Ended






Linked Qtr Change








Year/Year Change


6/30/2016


3/31/2016


$

%


12/31/2015


9/30/2015


6/30/2015


$

%

Interest income

$ 178,694


$ 176,936


1,758

1.0


$ 176,651


$ 171,077


$ 160,545


18,149

11.3

Interest expense

15,941


15,533


408

2.6


15,491


15,960


14,868


1,073

7.2

Net interest income

162,753


161,403


1,350

0.8


161,160


155,117


145,677


17,076

11.7

Provision for loan losses

11,866


14,905


(3,039)

(20.4)


11,711


5,062


8,790


3,076

35.0

Net interest income after provision for loan losses

150,887


146,498


4,389

3.0


149,449


150,055


136,887


14,000

10.2

Mortgage income

25,991


19,940


6,051

30.3


16,765


20,628


25,246


745

3.0

Service charges on deposit accounts

10,940


10,951


(11)

(0.1)


11,431


11,342


10,162


778

7.7

Title revenue

6,135


4,745


1,390

29.3


5,435


6,627


6,146


(11)

(0.2)

Broker commissions

3,712


3,823


(111)

(2.9)


4,130


3,839


5,461


(1,749)

(32.0)

ATM/debit card fee income

3,650


3,503


147

4.2


3,569


3,562


3,583


67

1.9

Income from bank owned life insurance

1,411


1,202


209

17.4


1,096


1,093


1,075


336

31.3

Gain on sale of available-for-sale securities

1,789


196


1,593

812.8


6


280


903


886

98.1

Other non-interest income

11,289


11,485


(196)

(1.7)


10,071


10,107


8,937


2,352

26.3

Total non-interest income

64,917


55,845


9,072

16.2


52,503


57,478


61,513


3,404

5.5

Salaries and employee benefits

85,105


80,742


4,363

5.4


83,455


82,416


84,019


1,086

1.3

Occupancy and equipment

16,813


16,907


(94)

(0.6)


16,928


17,987


17,366


(553)

(3.2)

Amortization of acquisition intangibles

2,109


2,113


(4)

(0.2)


1,795


2,338


2,155


(46)

(2.1)

Other non-interest expense

35,477


37,690


(2,213)

(5.9)


36,797


42,227


49,669


(14,192)

(28.6)

Total non-interest expense

139,504


137,452


2,052

1.5


138,975


144,968


153,209


(13,705)

(8.9)

Income before income taxes

76,300


64,891


11,409

17.6


62,977


62,565


45,191


31,109

68.8

Income tax expense

25,490


22,122


3,368

15.2


18,570


20,090


14,355


11,135

77.6

Net income

50,810


42,769


8,041

18.8


44,407


42,475


30,836


19,974

64.8

Preferred stock dividends

854


2,576


(1,722)

(66.8)





854

Net income available to common shareholders

$   49,956


$   40,193


9,763

24.3


$   44,407


$   42,475


$   30,836


19,120

62.0

















Income available to common shareholders - basic

$   49,956


$   40,193


9,763

24.3


$   44,407


$   42,475


$   30,836


19,120

62.0

Earnings allocated to unvested restricted stock

(540)


(460)


(80)

17.4


(505)


(492)


(355)


(185)

52.1

Income allocated to common shareholders

$   49,416


$   39,733


9,683

24.4


$   43,902


$   41,983


$   30,481


18,935

62.1

















Earnings per common share - basic

$       1.21


$       0.98


0.23

23.5


$       1.08


$       1.04


$       0.79


0.42

53.2

















Earnings per common share - diluted

1.21


0.97


0.24

24.7


1.08


1.03


0.79


0.42

53.2

Impact of non-core items (Non-GAAP) (1)

(0.03)


0.04


(0.07)

(175.0)


0.03


0.04


0.26


(0.29)

(111.5)

Earnings per share - diluted, excluding non-core items (Non-GAAP) (1)

$       1.18


$       1.01


0.17

16.8


$       1.11


$       1.07


$       1.05


0.13

12.4

















NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
















Weighted average common shares outstanding - basic

41,232


41,186


46

0.1


40,996


40,995


39,015


2,217

5.7

Weighted average common shares outstanding - diluted

40,908


40,765


143

0.4


40,597


40,614


38,667


2,241

5.8

Book value shares (period end) 

41,039


41,232


(193)

(0.5)


41,140


41,129


41,117


(78)

(0.2)


(1)  See Table 12 and Table 13 for GAAP to Non-GAAP reconciliations.

 

Table 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except per share data)









For the Six Months Ended


6/30/2016


6/30/2015


$ Change

% Change

Interest income

$ 355,630


$ 299,130


56,500

18.9

Interest expense

31,474


27,649


3,825

13.8

Net interest income

324,156


271,481


52,675

19.4

Provision for loan losses

26,771


14,135


12,636

89.4

Net interest income after provision for loan losses

297,385


257,346


40,039

15.6

Mortgage income

45,931


43,269


2,662

6.2

Service charges on deposit accounts

21,891


19,424


2,467

12.7

Title revenue

10,880


10,775


105

1.0

Broker commissions

7,535


9,623


(2,088)

(21.7)

ATM/debit card fee income

7,153


6,858


295

4.3

Income from bank owned life insurance

2,613


2,167


446

20.6

Gain on sale of available-for-sale securities

1,985


1,289


696

54.0

Other non-interest income

22,774


17,007


5,767

33.9

Total non-interest income

120,762


110,412


10,350

9.4

Salaries and employee benefits

165,847


156,715


9,132

5.8

Occupancy and equipment

33,720


33,626


94

0.3

Amortization of acquisition intangibles

4,222


3,678


544

14.8

Other non-interest expense

73,167


92,343


(19,176)

(20.8)

Total non-interest expense

276,956


286,362


(9,406)

(3.3)

Income before income taxes

141,191


81,396


59,795

73.5

Income tax expense

47,612


25,434


22,178

87.2

Net income

93,579


55,962


37,617

67.2

Preferred stock dividends

3,430



3,430

Net income available to common shareholders

$   90,149


$   55,962


34,187

61.1








Income available to common shareholders - basic

$   90,149


$   55,962


34,187

61.1

Earnings allocated to unvested restricted stock

(1,003)


(675)


(328)

48.6

Income allocated to common shareholders

$   89,146


$   55,287


33,859

61.2








Earnings per common share - basic

$       2.19


$       1.54


0.65

42.2








Earnings per common share - diluted

$       2.18


$       1.54


0.64

41.6

Impact of non-core items (Non-GAAP) (1)

0.01


0.46


(0.45)

(97.8)

Earnings per share - diluted, excluding non-core items (Non-GAAP) (1)

$       2.19


$       2.00


0.19

9.5








NUMBER OF COMMON SHARES OUTSTANDING (in thousands)







Weighted average common shares outstanding - basic

41,209


36,352


4,857

13.4

Weighted average common shares outstanding - diluted

40,836


35,966


4,870

13.5

Book value shares (period end) 

41,039


41,117


(78)

(0.2)


(1)  See Table 12 and Table 13 for GAAP to Non-GAAP reconciliations.

 

TABLE 4 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)



















PERIOD-END BALANCES





Linked Qtr Change








Year/Year Change

ASSETS

6/30/2016


3/31/2016


$


%


12/31/2015


9/30/2015


6/30/2015


$


%

Cash and due from banks

$      288,141


$      300,207


(12,066)


(4.0)


$      241,650


$      370,657


$      300,257


(12,116)


(4.0)

Interest-bearing deposits in other banks

417,157


696,448


(279,291)


(40.1)


268,617


311,615


591,018


(173,861)


(29.4)

Total cash and cash equivalents

705,298


996,655


(291,357)


(29.2)


510,267


682,272


891,275


(185,977)


(20.9)

Investment securities available for sale

2,776,015


2,755,425


20,590


0.7


2,800,286


2,827,805


2,413,158


362,857


15.0

Investment securities held to maturity

92,904


96,117


(3,213)


(3.3)


98,928


98,330


101,475


(8,571)


(8.4)

Total investment securities

2,868,919


2,851,542


17,377


0.6


2,899,214


2,926,135


2,514,633


354,286


14.1

Mortgage loans held for sale

229,653


192,545


37,108


19.3


166,247


202,168


220,765


8,888


4.0

Loans, net of unearned income

14,722,561


14,451,244


271,317


1.9


14,327,428


14,117,019


13,950,563


771,998


5.5

Allowance for loan losses

(147,452)


(146,557)


(895)


0.6


(138,378)


(130,254)


(128,149)


(19,303)


15.1

Loans, net

14,575,109


14,304,687


270,422


1.9


14,189,050


13,986,765


13,822,414


752,695


5.4

Loss share receivable

29,224


33,564


(4,340)


(12.9)


39,878


43,443


50,452


(21,228)


(42.1)

Premises and equipment

311,173


314,615


(3,442)


(1.1)


323,902


333,273


342,949


(31,776)


(9.3)

Goodwill and other intangibles

763,387


768,235


(4,848)


(0.6)


765,655


766,589


765,813


(2,426)


(0.3)

Other assets

678,092


630,720


47,372


7.5


609,855


593,580


630,627


47,465


7.5

Total assets

$ 20,160,855


$ 20,092,563


68,292


0.3


$ 19,504,068


$ 19,534,225


$ 19,238,928


921,927


4.8



















LIABILITIES AND SHAREHOLDERS' EQUITY













Non-interest-bearing deposits

$   4,539,254


$   4,484,024


55,230


1.2


$   4,352,229


$   4,392,808


$   4,166,850


372,404


8.9

NOW accounts

2,985,284


2,960,562


24,722


0.8


2,974,176


2,635,021


2,623,697


361,587


13.8

Savings and money market accounts

6,188,245


6,736,146


(547,901)


(8.1)


6,727,720


6,999,863


6,925,038


(736,793)


(10.6)

Certificates of deposit

2,149,244


2,079,834


69,410


3.3


2,124,623


2,275,373


2,403,956


(254,712)


(10.6)

Total deposits

15,862,027


16,260,566


(398,539)


(2.5)


16,178,748


16,303,065


16,119,541


(257,514)


(1.6)

Short-term borrowings

477,620


195,000


282,620


144.9


110,000


10,000


59,300


418,320


705.4

Securities sold under agreements to repurchase

288,017


303,238


(15,221)


(5.0)


216,617


212,460


209,004


79,013


37.8

Trust preferred securities

120,110


120,110




120,110


120,110


120,110



Other long-term debt

567,326


478,814


88,512


18.5


220,337


221,863


222,202


345,124


155.3

Other liabilities

208,158


186,926


21,232


11.4


159,421


183,526


143,487


64,671


45.1

Total liabilities

17,523,258


17,544,654


(21,396)


(0.1)


17,005,233


17,051,024


16,873,644


649,614


3.8

Total shareholders' equity

2,637,597


2,547,909


89,688


3.5


2,498,835


2,483,201


2,365,284


272,313


11.5

Total liabilities and shareholders' equity

$ 20,160,855


$ 20,092,563


68,292


0.3


$ 19,504,068


$ 19,534,225


$ 19,238,928


921,927


4.8

 

TABLE 4 Continued - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)



















AVERAGE BALANCES





Linked Qtr Change








Year/Year Change

ASSETS

6/30/2016


3/31/2016


$


%


12/31/2015


9/30/2015


6/30/2015


$


%

Cash and due from banks

$      304,304


$      292,476


11,828


4.0


$      352,854


$      327,370


$      263,844


40,460


15.3

Interest-bearing deposits in other banks

386,139


365,709


20,430


5.6


319,302


682,764


582,032


(195,893)


(33.7)

Total cash and cash equivalents

690,443


658,185


32,258


4.9


672,156


1,010,134


845,876


(155,433)


(18.4)

Investment securities available for sale

2,823,292


2,797,320


25,972


0.9


2,829,825


2,660,423


2,417,002


406,290


16.8

Investment securities held to maturity

94,609


97,391


(2,782)


(2.9)


100,113


99,864


106,871


(12,262)


(11.5)

Total investment securities

2,917,901


2,894,711


23,190


0.8


2,929,938


2,760,287


2,523,873


394,028


15.6

Mortgage loans held for sale

211,468


160,873


50,595


31.5


169,616


200,895


202,691


8,777


4.3

Loans, net of unearned income

14,570,945


14,354,410


216,535


1.5


14,185,150


14,009,601


13,297,724


1,273,221


9.6

Allowance for loan losses

(149,037)


(141,393)


(7,644)


5.4


(135,209)


(130,367)


(129,069)


(19,968)


15.5

Loans, net

14,421,908


14,213,017


208,891


1.5


14,049,941


13,879,234


13,168,655


1,253,253


9.5

Loss share receivable

32,189


37,360


(5,171)


(13.8)


41,205


47,190


55,751


(23,562)


(42.3)

Premises and equipment

313,862


322,086


(8,224)


(2.6)


329,604


339,860


341,829


(27,967)


(8.2)

Goodwill and other intangibles

764,818


765,898


(1,080)


(0.1)


766,664


766,712


708,085


56,733


8.0

Other assets

651,328


609,181


42,147


6.9


592,042


599,758


598,526


52,802


8.8

Total assets

$ 20,003,917


$ 19,661,311


342,606


1.7


$ 19,551,166


$ 19,604,070


$ 18,445,286


1,558,631


8.5



















LIABILITIES AND SHAREHOLDERS' EQUITY















Non-interest-bearing deposits

$   4,463,928


$   4,388,259


75,669


1.7


$   4,459,980


$   4,265,912


$   3,933,468


530,460


13.5

NOW accounts

2,911,510


2,859,940


51,570


1.8


2,720,128


2,655,069


2,639,140


272,370


10.3

Savings and money market accounts

6,486,242


6,598,838


(112,596)


(1.7)


6,899,090


7,104,789


6,228,052


258,190


4.1

Certificates of deposit

2,117,711


2,098,032


19,679


0.9


2,213,557


2,343,794


2,331,537


(213,826)


(9.2)

Total deposits

15,979,391


15,945,069


34,322


0.2


16,292,755


16,369,564


15,132,197


847,194


5.6

Short-term borrowings

358,837


277,374


81,463


29.4


16,109


41,033


225,437


133,400


59.2

Securities sold under agreements to repurchase

265,465


217,296


48,169


22.2


224,255


221,217


236,305


29,160


12.3

Trust preferred securities

120,110


120,110




120,110


120,110


114,581


5,529


4.8

Other long-term debt

473,195


403,393


69,802


17.3


220,913


222,906


332,167


141,028


42.5

Other liabilities

203,050


167,810


35,240


21.0


186,382


206,030


172,473


30,577


17.7

Total liabilities

17,400,048


17,131,052


268,996


1.6


17,060,524


17,180,860


16,213,160


1,186,888


7.3

Total shareholders' equity

2,603,869


2,530,259


73,610


2.9


2,490,642


2,423,210


2,232,126


371,743


16.7

Total liabilities and shareholders' equity

$ 20,003,917


$ 19,661,311


342,606


1.7


$ 19,551,166


$ 19,604,070


$ 18,445,286


1,558,631


8.5

 

Table 5 - IBERIABANK CORPORATION

TOTAL LOANS AND ASSET QUALITY DATA

(Dollars in thousands)
























Linked Qtr Change








Year/Year Change

LOANS

6/30/2016


3/31/2016


$


%


12/31/2015


9/30/2015


6/30/2015


$


%

Commercial loans:


















Real estate

$   6,472,001


$   6,230,628


241,373


3.9


$   6,073,511


$   5,979,751


$   5,853,751


618,250


10.6

Commercial and Industrial

3,435,809


3,374,382


61,427


1.8


3,444,578


3,302,971


3,216,906


218,903


6.8

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

662,034


731,662


(69,628)


(9.5)


680,766


719,456


787,568


(125,534)


(15.9)

  Total commercial loans

10,569,844


10,336,672


233,172


2.3


10,198,855


10,002,178


9,858,225


711,619


7.2



















Residential mortgage loans

1,249,062


1,208,391


40,671


3.4


1,195,319


1,189,941


1,169,608


79,454


6.8



















Consumer loans:


















Home equity

2,129,812


2,091,514


38,298


1.8


2,066,167


2,015,687


1,971,073


158,739


8.1

Indirect automobile

182,223


213,179


(30,956)


(14.5)


246,298


281,649


322,958


(140,735)


(43.6)

Automobile

156,597


164,868


(8,271)


(5.0)


169,571


172,947


173,924


(17,327)


(10.0)

Credit card

78,552


76,756


1,796


2.3


77,843


77,284


74,314


4,238


5.7

Other

356,471


359,864


(3,393)


(0.9)


373,375


377,333


380,461


(23,990)


(6.3)

  Total consumer loans

2,903,655


2,906,181


(2,526)


(0.1)


2,933,254


2,924,900


2,922,730


(19,075)


(0.7)

  Total loans

$ 14,722,561


$ 14,451,244


271,317


1.9


$ 14,327,428


$ 14,117,019


$ 13,950,563


771,998


5.5



















Allowance for loan losses

$    (147,452)


$    (146,557)


(895)


0.6


$    (138,378)


$    (130,254)


$     (128,149)


(19,303)


15.1

Loans, net

14,575,109


14,304,687


270,422


1.9


14,189,050


13,986,765


13,822,414


752,695


5.4



















Reserve for unfunded commitments

(13,826)


(14,033)


207


(1.5)


(14,145)


(14,525)


(13,244)


(582)


4.4

Allowance for credit losses

(161,278)


(160,590)


(688)


0.4


(152,523)


(144,779)


(141,393)


(19,885)


14.1



















ASSET QUALITY DATA (2)

















Non-accrual loans

$      173,312


$      182,757


(9,445)


(5.2)


$      154,425


$      165,022


$      192,385


(19,073)


(9.9)

Other real estate owned and foreclosed assets

27,220


31,411


(4,191)


(13.3)


34,131


40,450


49,929


(22,709)


(45.5)

Accruing loans more than 90 days past due

1,580


1,068


512


47.9


1,970


2,994


4,607


(3,027)


(65.7)

Total non-performing assets

$      202,112


$      215,236


(13,124)


(6.1)


$      190,526


$      208,466


$      246,921


(44,809)


(18.1)





































Loans 30-89 days past due

$        58,852


$        59,074


(222)


(0.4)


$        35,579


$        25,306


$        39,005


19,847


50.9



















Non-performing assets to total assets

1.00 %


1.07 %






0.98 %


1.07 %


1.28 %





Non-performing assets to total loans and OREO

1.37


1.49






1.33


1.47


1.76





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

84.3


79.7






88.5


77.5


65.1





Allowance for loan losses to non-performing assets

73.0


68.1






72.6


62.5


51.9





Allowance for loan losses to total loans

1.00


1.01






0.97


0.92


0.92























Quarter-to-date charge-offs

$       12,994


$         5,560


7,434


133.7


$         4,277


$         5,245


$         4,808


8,186


170.3

Quarter-to-date recoveries

(1,071)


(1,551)


480


(30.9)


(1,358)


(2,790)


(1,034)


(37)


3.6

Quarter-to-date net charge-offs

$        11,923


$          4,009


7,914


197.4


$          2,919


$          2,455


$          3,774


8,149


215.9



















Net charge-offs to average loans (annualized)

0.33 %


0.11 %






0.08 %


0.07 %


0.11 %






(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.

 

Table 6 - IBERIABANK CORPORATION

LEGACY LOANS AND LEGACY ASSET QUALITY DATA

(Dollars in thousands)
























Linked Qtr Change








Year/Year Change

LEGACY LOANS

6/30/2016


3/31/2016


$


%


12/31/2015


9/30/2015


6/30/2015


$


%

Commercial loans:


















Real estate

$   5,097,689


$   4,771,690


325,999


6.8


$   4,504,062


$   4,321,723


$   4,105,592


992,097


24.2

Commercial and Industrial

3,027,590


2,926,686


100,904


3.4


2,952,102


2,779,503


2,650,799


376,791


14.2

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

659,510


728,778


(69,268)


(9.5)


677,177


713,935


782,312


(122,802)


(15.7)

  Total commercial loans

8,784,789


8,427,154


357,635


4.2


8,133,341


7,815,161


7,538,703


1,246,086


16.5



















Residential mortgage loans

794,701


730,621


64,080


8.8


694,023


660,543


616,497


178,204


28.9



















Consumer loans:


















Home equity

1,695,113


1,625,812


69,301


4.3


1,575,643


1,488,796


1,399,005


296,108


21.2

Indirect automobile

182,199


213,141


(30,942)


(14.5)


246,214


281,522


322,767


(140,568)


(43.6)

Automobile

146,394


153,732


(7,338)


(4.8)


157,579


159,928


159,778


(13,384)


(8.4)

Credit card

78,044


76,247


1,797


2.4


77,261


76,716


73,726


4,318


5.9

Other

303,609


301,990


1,619


0.5


306,459


296,592


285,077


18,532


6.5

  Total consumer loans

2,405,359


2,370,922


34,437


1.5


2,363,156


2,303,554


2,240,353


165,006


7.4

  Total loans

$ 11,984,849


$ 11,528,697


456,152


4.0


$ 11,190,520


$ 10,779,258


$ 10,395,553


1,589,296


15.3



















Allowance for loan losses

$    (106,861)


$    (105,574)


(1,287)


1.2


$      (93,808)


$      (86,400)


$      (83,723)


(23,138)


27.6

Loans, net

11,877,988


11,423,123


454,865


4.0


11,096,712


10,692,858


10,311,830


1,566,158


15.2



















Reserve for unfunded commitments

(13,826)


(14,033)


207


(1.5)


(14,145)


(14,525)


(13,244)


(582)


4.4

Allowance for credit losses

(120,687)


(119,607)


(1,080)


0.9


(107,953)


(100,925)


(96,967)


(23,720)


24.5



















ASSET QUALITY DATA (2)

















Non-accrual loans

$        95,096


$        93,429


1,667


1.8


$        50,928


$        51,274


$        62,739


32,357


51.6

Other real estate owned and foreclosed assets

14,478


17,662


(3,184)


(18.0)


16,491


17,062


20,028


(5,550)


(27.7)

Accruing loans more than 90 days past due

353


125


228


182.4


624


1,521


3,584


(3,231)


(90.2)

Total non-performing assets

$      109,927


$      111,216


(1,289)


(1.2)


$        68,043


$        69,857


$        86,351


23,576


27.3



















Loans 30-89 days past due

$        45,906


$        42,454


3,452


8.1


$        20,109


$        15,718


$        14,985


30,921


206.3



















Non-performing assets to total assets

0.63 %


0.65 %






0.42 %


0.43 %


0.55 %





Non-performing assets to total loans and OREO

0.92


0.96






0.61


0.65


0.83





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

112.0


112.9






182.0


163.7


126.2





Allowance for loan losses to non-performing assets

97.2


94.9






137.9


123.7


97.0





Allowance for loan losses to total loans

0.89


0.92






0.84


0.80


0.81























Quarter-to-date charge-offs

$        11,969


$          5,389


6,580


122.1


$          3,705


$          4,958


$          4,446


7,523


169.2

Quarter-to-date recoveries

(775)


(1,247)


472


(37.9)


(1,145)


(2,524)


(941)


166


(17.6)

Quarter-to-date net charge-offs

$        11,194


$          4,142


7,052


170.3


$          2,560


$          2,434


$          3,505


7,689


219.4

Net charge-offs to average loans (annualized)

0.38 %


0.15 %






0.09 %


0.09 %


0.14 %






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

(2) For purposes of this table, non-performing assets include all loans meeting non-performing asset criteria.

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

 

Table 7 - IBERIABANK CORPORATION

ACQUIRED LOANS AND ACQUIRED ASSET QUALITY DATA

(Dollars in thousands)
























Linked Qtr Change








Year/Year Change

ACQUIRED LOANS(1)

6/30/2016


3/31/2016


$


%


12/31/2015


9/30/2015


6/30/2015


$


%

Commercial loans:


















Real estate

$ 1,374,312


$ 1,458,938


(84,626)


(5.8)


$ 1,569,449


$ 1,658,028


$ 1,748,159


(373,847)


(21.4)

Commercial and Industrial

408,219


447,696


(39,477)


(8.8)


492,476


523,468


566,107


(157,888)


(27.9)

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

2,524


2,884


(360)


(12.5)


3,589


5,521


5,256


(2,732)


(52.0)

  Total commercial loans

1,785,055


1,909,518


(124,463)


(6.5)


2,065,514


2,187,017


2,319,522


(534,467)


(23.0)



















Residential mortgage loans

454,361


477,770


(23,409)


(4.9)


501,296


529,398


553,111


(98,750)


(17.9)



















Consumer loans:


















Home equity

434,699


465,702


(31,003)


(6.7)


490,524


526,891


572,068


(137,369)


(24.0)

Indirect automobile

24


38


(14)


(36.8)


84


127


191


(167)


(87.4)

Automobile

10,203


11,136


(933)


(8.4)


11,992


13,019


14,146


(3,943)


(27.9)

Credit card

508


509


(1)


(0.2)


582


568


588


(80)


(13.6)

Other

52,862


57,874


(5,012)


(8.7)


66,916


80,741


95,384


(42,522)


(44.6)

  Total consumer loans

498,296


535,259


(36,963)


(6.9)


570,098


621,346


682,377


(184,081)


(27.0)

  Total loans

$ 2,737,712


$ 2,922,547


(184,835)


(6.3)


$ 3,136,908


$ 3,337,761


$ 3,555,010


(817,298)


(23.0)



















Allowance for loan losses

$    (40,591)


$    (40,983)


392


(1.0)


$    (44,570)


$    (43,854)


$    (44,426)


3,835


(8.6)

Loans, net

2,697,121


2,881,564


(184,443)


(6.4)


3,092,338


3,293,907


3,510,584


(813,463)


(23.2)



















ACQUIRED ASSET QUALITY DATA (1) (3)
















Non-accrual loans

$      78,216


$      89,328


(11,112)


(12.4)


$    103,497


$    113,748


$    129,646


(51,430)


(39.7)

Other real estate owned and foreclosed assets

12,742


13,749


(1,007)


(7.3)


17,640


23,388


29,901


(17,159)


(57.4)

Accruing loans more than 90 days past due

1,227


943


284


30.1


1,346


1,473


1,023


204


19.9

Total non-performing assets

$      92,185


$    104,020


(11,835)


(11.4)


$    122,483


$    138,609


$    160,570


(68,385)


(42.6)



















Loans 30-89 days past due

$      12,946


$      16,620


(3,674)


(22.1)


$      15,470


$        9,588


$      24,020


(11,074)


(46.1)



















Non-performing assets to total assets

3.35 %


3.50 %






3.84 %


4.07 %


4.42 %





Non-performing assets to total loans and OREO

3.35


3.54






3.88


4.12


4.48





Allowance for loan losses to non-performing loans

51.1


45.4






42.5


38.1


34.0





Allowance for loan losses to non-performing assets

44.0


39.4






36.4


31.6


27.7





Allowance for loan losses to total loans

1.48


1.40






1.42


1.31


1.25























Quarter-to-date charge-offs

$        1,025


$           171


854


499.4


$           572


$           287


$           362


663


183.1

Quarter-to-date recoveries

(296)


(304)


8


(2.6)


(213)


(266)


(93)


(203)


218.3

Quarter-to-date net charge-offs/(recoveries)

$           729


$         (133)


862


(648.1)


$           359


$             21


$           269


460


171.0



















Net charge-offs/(recoveries) to average loans (annualized)

0.10 %


(0.02)%






0.04 %


0.00%


0.03 %






(1) For purposes of this table, acquired loans and acquired non-performing assets are presented only. Non-performing assets include all loans meeting non-performing asset criteria.

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

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

 

Table 8 - IBERIABANK CORPORATION

ENERGY-RELATED LOANS AND ASSET QUALITY DATA

(Dollars in thousands)
























Linked Qtr Change








Year/Year Change

ENERGY-RELATED LOANS (1)

6/30/2016


3/31/2016


$


%


12/31/2015


9/30/2015


6/30/2015


$


%

E&P

$      328,066


$      369,725


(41,659)


(11.3)


$      314,381


$      335,837


$      380,462


(52,396)


(13.8)

Midstream

123,687


130,556


(6,869)


(5.3)


116,623


122,863


143,985


(20,298)


(14.1)

Service

210,281


231,381


(21,100)


(9.1)


249,762


260,756


263,121


(52,840)


(20.1)

Total loans

$      662,034


$      731,662


(69,628)


(9.5)


$      680,766


$      719,456


$      787,568


(125,534)


(15.9)



















E&P

$      572,267


$      677,258


(104,991)


(15.5)


$      717,109


$      753,505


$      800,035


(227,768)


(28.5)

Midstream

201,555


206,504


(4,949)


(2.4)


204,326


200,893


244,086


(42,531)


(17.4)

Service

295,591


329,282


(33,691)


(10.2)


369,751


422,324


454,708


(159,117)


(35.0)

Total commitments

$   1,069,413


$   1,213,044


(143,631)


(11.8)


$   1,291,186


$   1,376,722


$   1,498,829


(429,416)


(28.7)



















Total loans

$ 14,722,561


$ 14,451,244


271,317


1.9


$ 14,327,428


$ 14,117,019


$ 13,950,563


771,998


5.5

Energy outstandings as a % of total loans

4.5 %


5.1 %






4.8 %


5.1 %


5.6 %





Energy commitments as a % of total commitments

5.4 %


6.3 %






6.8 %


7.4 %


8.1 %























Allowance for loan losses

$      (33,040)


$      (38,495)


5,455


(14.2)


$      (23,987)


$      (15,335)


$      (12,177)


(20,863)


171.3

Reserve for unfunded commitments

(2,223)


(903)


(1,320)


146.2


(2,666)


(3,633)


(2,905)


682


(23.5)

Allowance for credit losses

(35,263)


(39,398)


4,135


(10.5)


(26,653)


(18,968)


(15,082)


(20,181)


133.8



















 ASSET QUALITY DATA (2)

















Non-accrual loans

$        60,814


$        46,233


14,581


31.5


$          8,449


$          4,870


$          1,329


59,485


N/M

Other real estate owned and foreclosed assets









Accruing loans more than 90 days past due







3,434


(3,434)


(100.0)

Total non-performing assets

$        60,814


$        46,233


14,581


31.5


$          8,449


$          4,870


$          4,763


56,051


N/M



















Loans 30-89 days past due

$          3,055


$               —


3,055


100.0


$               15


$             477


$               —


3,055


100.0



















Non-performing assets to total loans and OREO

9.19 %


6.32 %






1.24 %


0.68 %


0.60 %





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

54.3


83.3






283.9


314.9


255.7





Allowance for loan losses to non-performing assets

54.3


83.3






283.9


314.9


255.7





Allowance for loan losses to total loans

4.99


5.26






3.52


2.13


1.55























Quarter-to-date charge-offs

$          7,715


$               —






$               —


$               —


$               —





Quarter-to-date recoveries













Quarter-to-date net charge-offs

$          7,715


$               —






$               —


$               —


$               —





Net charge-offs to average loans (annualized)

4.44 %


0.00%






0.00%


0.00%


0.00%








(1) For purposes of this table, energy-related loans generally include loans with specific NAICS codes.

(2) For purposes of this table, non-performing assets include all loans meeting non-performing asset criteria.

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


N/M = not meaningful

 

TABLE 9 - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)












For the Three Months Ended


6/30/2016


3/31/2016


Basis Point Change

ASSETS

Average Balance

Interest Income/ Expense

Yield/Rate


Average Balance

Interest Income/ Expense

Yield/Rate


Yield/Rate

Earning assets:










Commercial loans (TE) (1)

$ 10,458,822

$                114,588

4.39 %


$ 10,250,555

$             113,417

4.43 %


(4)

Residential mortgage loans

1,221,254

13,781

4.51


1,202,692

13,429

4.47


4

Consumer loans

2,890,869

37,200

5.18


2,901,163

37,145

5.15


3

  Total loans (TE) (1)

14,570,945

165,569

4.55


14,354,410

163,991

4.58


(3)

Loss share receivable

32,189

(4,163)

(51.16)


37,360

(4,386)

(46.44)


(472)

  Total loans and loss share receivable

14,603,134

161,406

4.43


14,391,770

159,605

4.45


(2)

Mortgage loans held for sale

211,468

1,850

3.50


160,873

1,401

3.48


2

Investment securities (2)

2,856,805

14,663

2.18


2,866,974

15,212

2.25


(7)

Other earning assets

483,597

775

0.64


453,737

718

0.64


Total earning assets

18,155,004

178,694

3.97


17,873,354

176,936

3.99


(2)

Allowance for loan losses

(149,037)




(141,393)





Non-earning assets

1,997,950




1,929,350





Total assets

$ 20,003,917




$ 19,661,311















LIABILITIES AND SHAREHOLDERS' EQUITY









Interest-bearing liabilities:










NOW accounts

$   2,911,510

$                    2,080

0.29


$   2,859,940

$                 1,940

0.27


2

Savings and money market accounts

6,486,242

5,527

0.34


6,598,838

5,640

0.34


Certificates of deposit

2,117,711

4,309

0.82


2,098,032

4,354

0.83


(1)

Total interest-bearing deposits (3)

11,515,463

11,916

0.42


11,556,810

11,934

0.42


Short-term borrowings

624,302

662

0.42


494,670

485

0.39


3

Long-term debt

593,305

3,363

2.24


523,503

3,114

2.35


(11)

  Total interest-bearing liabilities

12,733,070

15,941

0.50


12,574,983

15,533

0.49


1

Non-interest-bearing deposits

4,463,928




4,388,259





Non-interest-bearing liabilities

203,050




167,810





Total liabilities

17,400,048




17,131,052





Total shareholders' equity

2,603,869




2,530,259





Total liabilities and shareholders' equity

$ 20,003,917




$ 19,661,311















Net interest income/Net interest spread


$                162,753

3.47 %



$             161,403

3.50 %


(3)

Tax-equivalent benefit


2,332

0.05



2,361

0.05


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


$                165,085

3.61 %



$             163,764

3.64 %


(3)


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

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

(3) Total deposit costs for the three months ended June 30, 2016 and March 31, 2016 total 0.30% for both periods.

 

TABLE 9 Continued - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)














For the Three Months Ended


12/31/2015


9/30/2015


6/30/2015

ASSETS

Average Balance

Interest Income/ Expense

Yield/Rate


Average Balance

Interest Income/ Expense

Yield/Rate


Average Balance

Interest Income/ Expense

Yield/Rate

Earning assets:












Commercial loans (TE)(1)

$ 10,062,680

$             114,153

4.50%


$          9,915,593

$             110,282

4.41 %


$          9,277,141

$             103,272

4.46 %

Residential mortgage loans

1,193,488

12,819

4.30


1,180,725

13,156

4.46


1,187,166

14,379

4.84

Consumer loans

2,928,982

36,553

4.95


2,913,283

36,477

4.97


2,833,417

35,684

5.05

  Total loans (TE) (1)

14,185,150

163,525

4.57


14,009,601

159,915

4.53


13,297,724

153,335

4.62

Loss share receivable

41,205

(4,490)

(42.63)


47,190

(5,600)

(46.43)


55,751

(7,398)

(52.50)

  Total loans and loss share receivable

14,226,355

159,035

4.44


14,056,791

154,315

4.36


13,353,475

145,937

4.38

Mortgage loans held for sale

169,616

1,422

3.35


200,895

1,847

3.68


202,691

1,380

2.72

Investment securities (2)

2,901,388

15,149

2.21


2,697,617

13,729

2.16


2,469,050

12,191

2.08

Other earning assets

390,571

1,045

1.06


756,277

1,186

0.62


663,071

1,037

0.63

Total earning assets

17,687,930

176,651

3.99


17,711,580

171,077

3.86


16,688,287

160,545

3.87

Allowance for loan losses

(135,209)




(130,367)




(129,069)



Non-earning assets

1,998,445




2,022,857




1,886,068



Total assets

$ 19,551,166




$        19,604,070




$        18,445,286















LIABILITIES AND SHAREHOLDERS' EQUITY











Interest-bearing liabilities:












NOW accounts

$   2,720,128

1,861

0.27


$          2,655,069

1,725

0.26


$          2,639,140

1,765

0.27

Savings and money market accounts

6,899,090

6,172

0.35


7,104,789

6,459

0.36


6,228,052

5,058

0.33

Certificates of deposit

2,213,557

4,727

0.85


2,343,794

5,040

0.85


2,331,537

4,959

0.85

Total interest-bearing deposits (3)

11,832,775

12,760

0.43


12,103,652

13,224

0.43


11,198,729

11,782

0.42

Short-term borrowings

240,365

98

0.16


262,250

116

0.17


461,742

220

0.19

Long-term debt

341,022

2,633

3.02


343,016

2,620

2.99


446,748

2,866

2.54

  Total interest-bearing liabilities

12,414,162

15,491

0.49


12,708,918

15,960

0.50


12,107,219

14,868

0.49

Non-interest-bearing deposits

4,459,980




4,265,912




3,933,468



Non-interest-bearing liabilities

186,382




206,030




172,473



Total liabilities

17,060,524




17,180,860




16,213,160



Total shareholders' equity

2,490,642




2,423,210




2,232,126



Total liabilities and shareholders' equity

$ 19,551,166




$        19,604,070




$        18,445,286















Net interest income/Net interest spread


$             161,160

3.50 %



$             155,117

3.36 %



$             145,677

3.38 %

Tax-equivalent benefit


2,384

0.05



2,185

0.05



1,996

0.05

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


$             163,544

3.64 %



$             157,302

3.50 %



$             147,673

3.52 %


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

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

(3) Total deposit costs for the three months ended December 31, 2015, September 30, 2015, and June 30, 2015 total 0.31%, 0.32% and 0.31%, respectively.

 

TABLE 10 - IBERIABANK CORPORATION

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

(Dollars in thousands)












For the Six Months Ended


6/30/2016


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 (TE) (1)

$        10,354,688

$            228,005

4.41 %


$          8,583,814

$            186,916

4.39 %


2

Residential mortgage loans

1,211,973

27,210

4.49


1,143,584

27,974

4.89


(40)

Consumer loans

2,896,016

74,345

5.16


2,708,227

68,636

5.11


5

Total loans (TE) (1)

14,462,677

329,560

4.57


12,435,625

283,526

4.59


(2)

Loss share receivable

34,775

(8,549)

(48.63)


60,929

(13,411)

(43.78)


(485)

Total loans and loss share receivable

14,497,452

321,011

4.44


12,496,554

270,115

4.36


8

Mortgage loans held for sale

186,170

3,251

3.49


168,189

2,895

3.44


5

Investment securities (2)

2,861,890

29,875

2.21


2,388,733

24,287

2.15


6

Other earning assets

468,667

1,493

0.64


533,505

1,833

0.69


(5)

Total earning assets

18,014,179

355,630

3.98


15,586,981

299,130

3.88


10

Allowance for loan losses

(145,215)




(128,795)





Non-earning assets

1,963,650




1,750,135





Total assets

$        19,832,614




$        17,208,321















LIABILITIES AND SHAREHOLDERS' EQUITY









Interest-bearing liabilities:










NOW accounts

$          2,885,726

$                4,021

0.28


$          2,552,431

$                3,317

0.26


2

Savings and money market accounts

6,542,540

11,166

0.34


5,534,999

8,432

0.31


3

Certificates of deposit

2,107,871

8,663

0.83


2,241,492

9,371

0.84


(1)

Total interest-bearing deposits (3)

11,536,137

23,850

0.42


10,328,922

21,120

0.41


1

Short-term borrowings

559,486

1,147

0.41


603,612

583

0.19


22

Long-term debt

558,404

6,477

2.29


435,186

5,946

2.72


(43)

Total interest-bearing liabilities

12,654,027

31,474

0.50


11,367,720

27,649

0.49


1

Non-interest-bearing deposits

4,426,093




3,624,628





Non-interest-bearing liabilities

185,430




154,077





Total liabilities

17,265,550




15,146,425





Total shareholders' equity

2,567,064




2,061,896





Total liabilities and shareholders' equity

$        19,832,614




$        17,208,321















Net interest income/Net interest spread


$            324,156

3.48 %



$            271,481

3.39 %


9

Tax-equivalent benefit


4,692

0.05



4,036

0.05


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


$            328,848

3.63 %



$            275,517

3.53 %


10


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

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

(3) Total deposit costs for the six months ended June 30, 2016 and 2015 total 0.30% and 0.31%, respectively.

 

Table 11 - IBERIABANK CORPORATION

LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS

(Dollars in millions)






















For the Three Months Ended


6/30/2016


3/31/2016


12/31/2015


9/30/2015


6/30/2015

AS REPORTED (US GAAP)

Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield

Legacy loans, net

$   118

$ 11,737

4.00 %


$   115

$ 11,319

4.02 %


$   109

$ 10,949

3.92 %


$   105

$ 10,571

3.90 %


$     99

$ 10,147

3.88 %

Acquired loans (1)

43

2,866

6.01


45

3,073

5.84


50

3,277

5.97


49

3,486

5.59


47

3,206

5.82

Total loans

$   161

$ 14,603

4.45 %


$   160

$ 14,392

4.46 %


$   159

$ 14,226

4.44 %


$   154

$ 14,057

4.36 %


$   146

$ 13,353

4.38 %






















6/30/2016


3/31/2016


12/31/2015


9/30/2015


6/30/2015

ADJUSTMENTS

Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield

Legacy loans, net

$     —

$        —

0.00%


$     —

$        —

0.00%


$     —

$        —

0.00%


$     —

$        —

0.00%


$     —

$        —

0.00%

Acquired loans (1)

(9)

84

(1.33)


(7)

86

(1.04)


(11)

87

(1.41)


(8)

92

(0.90)


(9)

85

(1.23)

Total loans

$     (9)

$        84

(0.26)%


$     (7)

$        86

(0.21)%


$   (11)

$        87

(0.33)%


$     (8)

$        92

(0.24)%


$     (9)

$        85

(0.30)%






















6/30/2016


3/31/2016


12/31/2015


9/30/2015


6/30/2015

AS ADJUSTED (CASH YIELD, NON-GAAP)

Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield

Legacy loans, net

$   118

$ 11,737

4.00 %


$   115

$ 11,319

4.02 %


$   109

$ 10,949

3.92 %


$   105

$ 10,571

3.90 %


$     99

$ 10,147

3.88 %

Acquired loans (1)

34

2,950

4.68


38

3,159

4.80


39

3,364

4.56


41

3,578

4.69


38

3,291

4.58

Total loans

$   152

$ 14,687

4.19 %


$   153

$ 14,478

4.25 %


$   148

$ 14,313

4.11 %


$   146

$ 14,149

4.12 %


$   137

$ 13,438

4.08 %


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

 

Table 12 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)




















For the Three Months Ended


6/30/2016


3/31/2016


12/31/2015


Pre-tax


After-tax (1)


Per share (2)


Pre-tax


After-tax (1)


Per share (2)


Pre-tax


After-tax (1)


Per share (2)

Net income available to common shareholders (GAAP)

$   76,300


$      49,956


$            1.21


$   64,891


$      40,193


$            0.97


$ 62,977


$      44,407


$            1.08



















Non-interest income adjustments:


















Gain on sale of investments and other non-interest income

(1,789)


(1,163)


(0.03)


(196)


(127)



(157)


(102)




















Non-interest expense adjustments:


















Merger-related expense




3


2



(166)


(108)


Severance expense

140


91



454


295


0.01


1,842


1,197


0.03

Impairment of long-lived assets, net of (gain) loss on sale

(1,256)


(816)


(0.02)


1,044


679


0.01


3,396


2,207


0.05

Other non-core non-interest expense

1,177


765


0.02


1,091


709


0.02


(208)


(135)


Total non-interest expense adjustments

61


40



2,592


1,685


0.04


4,864


3,161


0.08

Income tax benefits








(2,041)


(0.05)

Core earnings (Non-GAAP)

74,572


48,833


1.18


67,287


41,751


1.01


67,684


45,425


1.11

Provision for loan losses

11,866


7,712


0.19


14,905


9,688


0.24


11,711


7,612


0.19

Core pre-provision earnings (Non-GAAP)

$   86,438


$      56,545


$            1.37


$   82,192


$      51,439


$            1.25


$ 79,395


$      53,037


$            1.30




















For the Three Months Ended








9/30/2015


6/30/2015








Pre-tax


After-tax (1)


Per share (2)


Pre-tax


After-tax (1)


Per share (2)







Net income available to common shareholders (GAAP)

$   62,565


$      42,475


$            1.03


$   45,191


$      30,836


$            0.79

























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)

























Non-interest expense adjustments:


















Merger-related expense

2,212


1,438


0.04


12,732


8,392


0.22







Severance expense

304


198



406


264


0.01







Impairment of long-lived assets, net of (gain) loss on sale

1,713


1,113


0.03


1,571


1,021


0.03







Other non-core non-interest expense

242


157



2,050


1,333


0.03







Total non-interest expense adjustments

4,471


2,906


0.07


16,759


11,010


0.29







Income tax benefits












Core earnings (Non-GAAP)

64,815


43,937


1.07


60,684


41,023


1.05







Provision for loan losses

5,062


3,291


0.08


8,790


5,713


0.15







Core pre-provision earnings (Non-GAAP)

$   69,877


$      47,228


$            1.15


$   69,474


$      46,736


$            1.20












































For the Six Months Ended








6/30/2016


6/30/2015








Pre-tax


After-tax (1)


Per share (2)


Pre-tax


After-tax (1)


Per share (2)







Net income available to common shareholders (GAAP)

$ 141,191


$      90,149


$            2.18


$   81,396


$      55,962


$            1.54

























Non-interest income adjustments:


















Gain on sale of investments and other non-interest income

(1,985)


(1,290)


(0.03)


(1,655)


(1,075)


(0.03)

























Non-interest expense adjustments:


















Merger-related expense

3


2



22,028


14,531


0.40







Severance expense

594


386


0.01


447


291


0.01







Impairment of long-lived assets, net of (gain) loss on sale

(212)


(137)


(0.01)


2,150


1,397


0.04







Other non-core non-interest expense

2,268


1,474


0.04


2,500


1,625


0.05







Total non-interest expense adjustments

2,653


1,725


0.04


27,125


17,844


0.50







Income tax benefits












Core earnings (Non-GAAP)

141,859


90,584


2.19


106,866


72,731


2.00







Provision for loan losses

26,771


17,400


0.43


14,135


9,188


0.26







Core pre-provision earnings (Non-GAAP)

$ 168,630


$    107,984


$            2.62


$ 121,001


$      81,919


$            2.26








(1) After-tax amounts calculated using a tax rate of 35%, which approximates the marginal tax rate.

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

 

Table 13 - IBERIABANK CORPORATION


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES


(Dollars in thousands)














For the Three Months Ended



6/30/2016


3/31/2016


12/31/2015


9/30/2015


6/30/2015


Net interest income (GAAP)

$      162,753


$      161,403


$      161,160


$      155,117


$      145,677


Add: Effect of tax benefit on interest income

2,332


2,361


2,384


2,185


1,996


Net interest income (TE) (Non-GAAP) (1)

165,085


163,764


163,544


157,302


147,673













Non-interest income (GAAP)

64,917


55,845


52,503


57,478


61,513


Add: Effect of tax benefit on non-interest income

760


647


590


589


579


Non-interest income (TE) (Non-GAAP) (1)

65,677


56,492


53,093


58,067


62,092


Taxable equivalent revenues (Non-GAAP) (1)

230,762


220,256


216,637


215,369


209,765


Securities gains and other non-interest income

(1,789)


(196)


(157)


(2,221)


(1,266)


Core taxable equivalent revenues (Non-GAAP)(1)

$      228,973


$      220,060


$      216,480


$      213,148


$      208,499













Total non-interest expense (GAAP)

$      139,504


$      137,452


$      138,975


$      144,968


$      153,209


Less: Intangible amortization expense

2,109


2,113


1,795


2,338


2,155


Tangible non-interest expense (Non-GAAP) (2)

137,395


135,339


137,180


142,630


151,054


Less: Merger-related expense


3


(166)


2,212


12,732


Severance expense

140


454


1,842


304


406


(Gain) Loss on sale of long-lived assets, net of impairment

(1,256)


1,044


3,396


1,713


1,571


Other non-core non-interest expense

1,177


1,091


(208)


242


2,050


Core tangible non-interest expense (Non-GAAP) (2)

$      137,334


$      132,747


$      132,316


$      138,159


$      134,295













Return on average assets (GAAP)

1.00 %


0.82 %


0.90 %


0.86 %


0.67 %


Effect of non-core revenues and expenses

(0.02)


0.03


0.02


0.03


0.22


Core return on average assets (Non-GAAP)

0.98 %


0.85 %


0.92 %


0.89 %


0.89 %













Efficiency ratio (GAAP)

61.3 %


63.3 %


65.0 %


68.2 %


73.9 %


Effect of tax benefit related to tax-exempt income

(0.8)


(0.9)


(0.8)


(0.9)


(0.9)


Efficiency ratio (TE) (Non-GAAP) (1)

60.5 %


62.4 %


64.2 %


67.3 %


73.0 %


Effect of amortization of intangibles

(0.9)


(1.0)


(0.8)


(1.1)


(1.0)


Effect of non-core items

0.4


(1.1)


(2.3)


(1.4)


(7.6)


Core tangible efficiency ratio (TE) (Non-GAAP) (1) (2)

60.0 %


60.3 %


61.1 %


64.8 %


64.4 %













Return on average common equity (GAAP)

8.05 %


6.59 %


7.30 %


7.09 %


5.54 %


Effect of intangibles (2)

3.85


3.30


3.65


3.73


2.93


Effect of non-core revenues and expenses

(0.26)


0.37


0.25


0.36


2.67


Core return on average tangible common equity (Non-GAAP) (2)

11.64 %


10.26 %


11.20 %


11.18 %


11.14 %













Total shareholders' equity (GAAP)

$   2,637,597


$   2,547,909


$   2,498,835


$   2,483,201


$   2,365,284


Less:  Goodwill and other intangibles

759,966


764,730


761,871


762,500


761,809


Preferred stock

132,098


76,812


76,812


77,463



Tangible common equity (Non-GAAP) (2)

$   1,745,533


$   1,706,367


$   1,660,152


$   1,643,238


$   1,603,475













Total assets (GAAP)

$ 20,160,855


$ 20,092,563


$ 19,504,068


$ 19,534,225


$ 19,238,928


Less:  Goodwill and other intangibles

759,966


764,730


761,871


762,500


761,809


Tangible assets (Non-GAAP) (2)

$ 19,400,889


$ 19,327,833


$ 18,742,197


$ 18,771,725


$ 18,477,119


Tangible common equity ratio (Non-GAAP) (2)

9.00 %


8.83 %


8.86 %


8.75 %


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 35%, which approximates the marginal tax rate.

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

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/iberiabank-corporation-reports-second-quarter-results-300305200.html

SOURCE IBERIABANK Corporation


Source: PR Newswire (July 27, 2016 - 6:00 PM EDT)

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