KCBD, NewsChannel 11 Lubbock |IBERIABANK Corporation Reports Record Quarterly Results
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LAFAYETTE, La., Oct. 20 /PRNewswire-FirstCall/ -- IBERIABANK Corporation (Nasdaq: IBKC), holding company of the 122-year-old IBERIABANK (www.iberiabank.com) and IBERIABANK fsb (www.IBERIABANKfsb.com), announced income available to common shareholders of $25 million for the quarter ended September 30, 2009, an increase of 194% compared to the second quarter of 2009 ('linked quarter basis"). Fully diluted earnings per share ("EPS") were $1.22 in the third quarter of 2009, an increase of 135% on a linked quarter basis. The third quarter 2009 results were influenced by a few significant items as described below.
Significant Influences on the Quarter Ended September 30, 2009
-- Capital and Common Stock Issuance. At September 30, 2009, the Company
reported a tangible common equity ratio of 9.59%, a Tier 1 leverage
ratio of 11.55% and a total risk based capital ratio of 16.83%. On
July 7, 2009, the Company issued and sold 4,427,500 shares of common
stock in an underwritten public equity offering for net proceeds of
approximately $165 million. During the third quarter of 2009, the
Company's market capitalization exceeded the $1 billion milestone. The
Company estimated the cost of carrying the excess equity capital was
$0.34 per share on an after-tax basis.
-- CapitalSouth Bank Acquisition. The Company acquired assets and assumed
liabilities associated with CapitalSouth Bank, a bank formerly
headquartered in Birmingham, Alabama, with 10 offices in the
metropolitan statistical areas ("MSAs") of Birmingham, Montgomery, and
Huntsville, Alabama and Jacksonville, Florida. The Company recorded a
$58 million pre-tax gain for this transaction under FAS141R in
accordance with generally accepted accounting principles. This gain
equated to $1.75 per fully diluted share on an after-tax basis. The
Company incurred one-time pre-tax acquisition-related costs of
$0.6 million, or $0.02 per share on an after-tax basis during the third
quarter of 2009. The majority of assets acquired in the CapitalSouth
transaction are covered under the FDIC loss sharing arrangement and
loan valuations incorporate estimated losses.
Management expects the CapitalSouth transaction to be accretive to
earnings and EPS of the Company over the next 5 years.
-- Asset Quality. Nonperforming Assets ("NPAs") were $151 million at
September 30, 2009, which included $97 million in CapitalSouth assets
covered under the FDIC loss sharing agreement ("covered assets").
Excluding the CapitalSouth transaction, NPAs were $54 million, down
$5 million, or 8%, on a linked quarter basis. The ratio of NPAs to
total assets was 2.34% at September 30, 2009, and 0.93% excluding
CapitalSouth, compared to 1.04% at June 30, 2009 and 0.81% one year
ago.
The Company reported net charge-offs totaling $23 million in the third
quarter of 2009, or 2.26% of average loans on an annualized basis
compared to $3 million, or 0.33% of average loans, in the second
quarter of 2009. The Company recorded a loan loss provision of
$25 million, compared to $8 million on a linked quarter basis. The
loan loss provision was elevated in the third quarter of 2009 primarily
due to the higher charge-offs. The Company's ratio of loan loss
reserves to total loans was 1.13% at September 30, 2009 and 1.24%
excluding CapitalSouth, compared to 1.21% at June 30, 2009. The cost
associated with the additional provision, after the impact of the net
charge-offs, was approximately $0.80 per share on an after-tax basis.
-- Strategic Hires. The Company continued its successful recruiting of
key talent during the third quarter of 2009. Recent additions include
a Chief Risk Officer, Senior Credit Officer with significant commercial
workout experience, Internal Audit Manager, Market Presidents for
Northeast Arkansas and Birmingham, Alabama, and Managing Director of
Brokerage, Trust, and Wealth Management. The Company also expanded its
commercial teams in Houston (now 15 team members), Mobile (now eight
team members), and Memphis (now nine team members). Mortgage teams
from the former Colonial Bank joined the Company in five markets in
Alabama and Georgia during the third quarter of 2009.
Balance Sheet and Yields
Total assets increased $762 million, or 13%, to $6.5 billion at September 30, 2009, and up $152 million, or 3%, excluding the acquisition of CapitalSouth. Since June 30, 2009, total loans increased $469 million, or 12%, and $116 million, or 3%, excluding CapitalSouth. Similarly, total deposits increased $603 million, or 14%, and $134 million, or 3%, excluding CapitalSouth, Total shareholders' equity increased $190 million, or 29%. Total investment securities increased $72 million, or 7%, to $1.1 billion.
As a percentage of total assets, the investment portfolio decreased from 18% at June 30, 2009 to 17% at September 30, 2009. At September 30, 2009, the portfolio had a modified duration of 2.8 years, unchanged compared to June 30, 2009. Based on projected prepayment speeds and other assumptions at September 30, 2009, the portfolio was expected to generate approximately $386 million in cash flows, or about 36% of the portfolio, over the next 15 months. The average yield on investment securities decreased 44 basis points on a linked quarter basis, to 4.03% in the third quarter of 2009. The Company held in its investment portfolio primarily government agency and municipal securities.
Period-End Loan Volumes ($ in Millions)
Loans IBERIABANK
-----------------------------------
12/31/08 3/31/09 6/30/09 9/30/09
-------- ------- ------- -------
Commercial $1,768 $1,806 $1,877 $2,194
Consumer 672 673 686 709
Mortgage 461 438 409 471
-------- ------- ------- -------
Total
Loans $2,901 $2,917 $2,972 $3,374
Growth 4% 1% 2% 14%
-------- ------- ------- -------
Loans IBERIABANK fsb
------------------------------------------
Since
12/31/08 3/31/09 6/30/09 9/30/09 Acq.
-------- ------- ------- ------- ----
Commercial $530 $536 $554 $621 39%
Consumer 239 233 234 236 -2%
Mortgage 74 72 69 68 1%
-------- ------- ------- ------- ----
Total
Loans $843 $841 $857 $925 23%
Growth 0% 0% 2% 8%
-------- ------- ------- -------
Period-end loans increased $469 million between June 30, 2009 and September 30, 2009, and increased $116 million, or 3%, excluding acquired CapitalSouth loans. Between the time of acquisition and October 16, 2009, CapitalSouth-related loans had decreased approximately $14 million, or 3%, which was consistent with the Company's expectations.
On a linked quarter basis, the yield on average total loans remained stable at 5.24%. Yields on mortgage and consumer loans declined 11 and nine basis points, respectively, on a linked quarter basis. Over this period, the yield on commercial loans increased eight basis points.
The Company's aggregate construction and land development ("C&D") loan exposure totaled $321 million, or 7.5% of total loans, and had three primary components.
First, the Company acquired $81 million in C&D loans associated with the CapitalSouth transaction. These loans are covered assets under the loss share agreement with the FDIC.
Second, IBERIABANK fsb acquired a builder construction portfolio in association with the Pulaski and Pocahontas transactions in Arkansas in 2007. This builder portfolio continued to compress in the third quarter of 2009. The total volume of this portfolio declined from $18 million at June 30, 2009, to $13 million at September 30, 2009, or down 28%. At September 30, 2009, IBERIABANK fsb's builder construction portfolio accounted for only 1.4% of IBERIABANK fsb's total loan portfolio and only 0.3% of the Company's consolidated total loan portfolio.
Third, at September 30, 2009, IBERIABANK had $226 million in construction and land development loans, of which approximately 81% is located in south Louisiana. At that date, approximately 82% of this portfolio was funded (compared to 80% at June 30, 2009), and approximately 76% was comprised of completed houses by dollar amount (74% at June 30, 2009). At September 30, 2009, only 1.53% of this portfolio was past due 30 days or more (1.75% at June 30, 2009).
The Company's commercial real estate ("CRE") loan portfolio, excluding the IBERIABANK fsb builder construction portfolio and the CapitalSouth loan portfolio, primarily is comprised of credits in the Company's banking markets. At September 30, 2009, the average loan size in the CRE portfolio was approximately $560,000, and loans past due 30 days or more (including nonaccruing loans) equated to 1.81% of the CRE loans outstanding (1.74% at June 30, 2009). Approximately 60% of the CRE portfolio was based in southern Louisiana, 14% in northern Louisiana, and 25% in IBERIABANK fsb's markets. At September 30, 2009, many of the local markets in southern Louisiana remained economically healthy compared to the national economy. Excluding construction-related credits and CapitalSouth loans, at September 30, 2009, approximately 44% of the Company's CRE portfolio was owner-occupied and 56% non-owner occupied. Non-owner occupied CRE loans equated to 116% of total risk based capital at September 30, 2009.
At September 30, 2009, the Company's consumer loan portfolio maintained favorable asset quality. Based on an evaluation of the consumer loan portfolio at September 30, 2009, the average credit score of the portfolio was 717. Loans past due 30 days or more in this portfolio were 1.82% at September 30, 2009 (compared to 1.44% at June 30, 2009). Home equity loans totaled $354 million, with 1.11% past due 30 days or more (0.91% at June 30, 2009). Home equity lines of credit totaled $196 million, with 0.62% past due 30 days or more (0.52% at June 30, 2009). Approximately 66% of the Company's total home equity portfolio was in Louisiana, 20% in Arkansas, and 7% in Oklahoma. Annualized net charge-offs in this portfolio were 1.13% of loans in the third quarter of 2009 (0.07% in the second quarter of 2009). The weighted average loan-to-value at origination for this portfolio over the last three years was 69%. Total consumer real estate loan production in the third quarter of 2009 was 652 loans (down 1.7% on a linked quarter basis) totaling $44 million (down 3% on a linked quarter basis), had an average credit score of 768, and an average loan-to-value of 69%.
The indirect automobile portfolio totaled $268 million at September 30, 2009, up 2% compared to June 30, 2009. This portfolio had 1.05% in loans past due 30 days or more (including nonaccruing loans) at September 30, 2009 (1.08% at June 30, 2009). Annualized net charge-offs equated to approximately 0.45% of average loans in the third quarter of 2009 (0.42% in the second quarter of 2009). Approximately 87% of the indirect automobile portfolio was in the Acadiana region of Louisiana, which currently experiences a relatively favorable unemployment rate.
At September 30, 2009, approximately 61% of the Company's loan portfolio had fixed interest rates. Eliminating fixed rate loans that mature within a one-year time frame reduces this percentage to 57%. Approximately 77% of the Company's time deposit base reprices within the next 12 months. The rapid decline in short-term interest rates, balance sheet mix changes, and the Company's excess liquidity position have caused the Company's interest rate risk position to become more asset sensitive over time. The Company's interest rate risk modeling at September 30, 2009, indicated the Company is modestly asset sensitive over a 12-month time frame. A 100 basis point instantaneous and parallel upward shift in interest rates is estimated to increase net interest income over 12 months by approximately 3.9%. Similarly, a 100 basis point decrease in interest rates is expected to increase net interest income by approximately 0.5%.
Period-End Deposit Volumes ($ in Millions)
Deposits IBERIABANK
-----------------------------------
12/31/08 3/31/09 6/30/09 9/30/09
-------- ------- ------- -------
Noninterest $465 $452 $451 $501
NOW
Accounts 615 747 750 764
Savings/MMkt 755 851 888 1,048
Time
Deposits 1,006 1,009 1,014 1,358
-------- ------- ------- -------
Total
Deposits $2,842 $3,059 $3,103 $3,671
Growth 5% 8% 1% 18%
-------- ------- ------- -------
Deposits IBERIABANK fsb
------------------------------------------
Since
12/31/08 3/31/09 6/30/09 9/30/09 Acq.
-------- ------- ------- ------- -----
Noninterest $156 $129 $126 $128 33%
NOW
Accounts 206 205 198 195 1%
Savings/MMkt 199 220 240 279 58%
Time
Deposits 593 520 507 504 -7%
-------- ------- ------- ------- -----
Total
Deposits $1,154 $1,074 $1,071 $1,105 10%
Growth -5% -7% 0% 3%
-------- ------- ------- -------
Total deposits increased $603 million, or 14%, between June 30, 2009 and September 30, 2009, and $134 million, or 3% excluding CapitalSouth. Between the time of the acquisition and October 16, 2009, CapitalSouth-related deposits declined $60 million, or 11%, consistent with the Company's expectations. Between June 30 and September 30, 2009, deposits at IBERIABANK increased $568 million, or 18%, and $99 million, or 3% excluding CapitalSouth. Deposits at IBERIABANK fsb increased $34 million, or 3% over this same period.
On a linked quarter basis, average noninterest bearing deposits increased $12 million, or 2%, and interest-bearing deposits increased $301 million, or 8%. The rate on average interest bearing deposits in the third quarter of 2009 was 1.79%, a decrease of 11 basis points on a linked quarter basis, compared to a 16 basis point decline in the cost of average interest bearing liabilities. The Company had only $15 million in short-term borrowings at September 30, 2009, or approximately 0.3% of total liabilities.
Quarterly Average Yields/Cost (Taxable Equivalent Basis)
IBERIABANK IBERIABANK fsb
-------------------------------- ------------------------------
3Q08 4Q08 1Q09 2Q09 3Q09 3Q08 4Q08 1Q09 2Q09 3Q09
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Earning
Asset
Yield 5.66% 5.60% 4.92% 4.91% 4.65% 5.43% 5.37% 5.41% 5.29% 4.79%
Cost
Of
Int-
Bearing
Liabs 2.71% 2.43% 2.10% 1.97% 1.84% 3.26% 2.99% 2.55% 2.32% 2.13%
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Net
Interest
Spread 2.96% 3.17% 2.82% 2.94% 2.81% 2.18% 2.37% 2.86% 2.97% 2.66%
Net
Interest
Margin 3.36% 3.56% 3.15% 3.26% 3.09% 2.62% 2.78% 3.19% 3.28% 2.97%
==== ==== ==== ==== ==== ==== ==== ==== ==== ====
Operating Results
Tax-equivalent net interest income increased $2.6 million, or 7% on a linked quarter basis. While average earning assets increased $538 million (up 11%), the tax-equivalent net interest margin declined 14 basis points on a linked quarter basis. The average earning asset yield decreased 32 basis points as a result of the increase in the Company's excess liquidity position to approximately $250 million at September 30, 2009. The excess liquidity reduced the net interest margin by 13 basis points in the third quarter compared to the second quarter of 2009. Interest bearing deposits and liabilities declined 11 and 16 basis points, respectively. The net interest spread and margin declined 17 and 14 basis points, respectively. Excluding the CapitalSouth transaction, the Company's net interest margin declined 15 basis points to 3.02%.
Aggregate noninterest income increased $49 million, or 154%, on a linked quarter basis. The primary changes on a linked quarter basis were (1) a $58 million gain on completion of the CapitalSouth acquisition in the third quarter, (2) a $6 million decrease in gain on the sale of investment securities, and (3) seasonal declines in the fee income businesses during the third quarter of 2009. Title insurance revenues declined $0.6 million, or 11%, over that period to $4.6 million. Service charge income on deposit accounts and broker commissions improved approximately $0.5 million and $0.3 million, respectively, on a linked quarter basis.
The Company's mortgage origination business experienced some seasonal slowing during the third quarter of 2009 as refinancing activity declined. The Company originated $302 million in mortgage loans during the third quarter of 2009, down $213 million, or 41%, on a linked quarter basis. Client loan refinancing opportunities accounted for approximately 27% of mortgage loan originations in the third quarter of 2009, compared to 57% in the second quarter of 2009. The Company sold $340 million in mortgage loans during this period, down $167 million, or 33%, compared to the second quarter of 2009. Sales margins remained favorable throughout 2009. Gains on the sale of mortgage loans totaled $7.3 million in the third quarter of 2009, a decrease of $3.5 million, or 33%, on a linked quarter basis. Despite seasonal declines in the third quarter of 2009, the results were the Company's third highest quarterly revenue results. The mortgage pipeline was approximately $130 million during the third week of October 2009. In recent weeks, loan refinancing accounted for approximately one-third of mortgage activity.
Noninterest expense increased $4.7 million, or 9%, on a linked quarter basis. The primary drivers of the increase in expense were compensation, OREO expenses, and acquisition-related costs. Partially offsetting these increases was a reduction in FDIC deposit insurance premium assessments. In aggregate, the combined tangible efficiency ratio of the bank subsidiaries was approximately 33.7% in the third quarter of 2009 (62.5% in the second quarter of 2009).
Basic net income to common shareholders in the third quarter of 2009 totaled $25 million, up 194% on a linked quarter basis. Return on average assets ("ROA") was 1.62% for the third quarter of 2009, return on average common equity ("ROE") was 11.77%, and return on average tangible common equity was 17.26%.
Asset Quality
The Company's credit quality statistics were significantly affected by the CapitalSouth acquisition, though the loss share arrangement with the FDIC and discounts on the assets should provide substantial protection against loss on those assets. Under the loss share agreement, the FDIC will cover 80% of the losses on the disposition of loans and OREO up to $135 million, or $108 million (the Company would cover the remaining $27 million amount). In addition, the FDIC will cover 95% of losses that exceed that $135 million threshold level. The Company estimates its maximum loss exposure will be approximately $45 million, assuming all loans experience 100% losses with no recoveries, over the loss share period. The Company received a discount of approximately $80 million on the purchase of assets in the transaction.
Excluding the CapitalSouth transaction, NPAs declined at both IBERIABANK and IBERIABANK fsb, and loans past due 30 days or more remained fairly stable. The Company's criticized assets totaled $108 million at September 30, 2009, excluding the CapitalSouth transaction.
Summary Asset Quality Statistics
($thousands) IBERIABANK IBERIABANK fsb
--------------------------- -----------------
2Q09 3Q09* 3Q09 2Q09 3Q09
------- ------- -------- ------- -------
Nonaccruals $14,110 $13,600 $100,649 $14,409 $22,655
OREO & Foreclosed 1,199 2,277 11,872 16,153 11,192
90+ Days Past Due 3,596 1,999 2,047 9,663 2,651
------- ------- -------- ------- -------
Nonperforming
Assets $18,905 $17,877 $114,568 $40,225 $36,498
NPAs/Assets 0.45% 0.42% 2.34% 2.78% 2.43%
NPAs/(Loans + OREO) 0.64% 0.59% 3.38% 4.60% 3.90%
LLR/Loans 1.01% 1.05% 0.94% 1.89% 1.86%
Net
Charge-Offs/Loans 0.08% 1.21% 1.13% 1.22% 6.16%
------- ------- -------- ------- -------
($thousands) IBERIABANK Corp.
---------------------------
2Q09 3Q09* 3Q09
------- ------- --------
Nonaccruals $28,519 $36,256 $123,304
OREO & Foreclosed 17,352 13,469 23,065
90+ Days Past Due 13,259 4,650 4,698
------- ------- --------
Nonperforming
Assets $59,130 $54,375 $151,066
NPAs/Assets 1.04% 0.93% 2.34%
NPAs/(Loans + OREO) 1.54% 1.38% 3.50%
LLR/Loans 1.21% 1.25% 1.13%
Net
Charge-Offs/Loans 0.33% 2.38% 2.26%
------- ------- --------
* Excludes the impact of CapitalSouth acquisition.
NPAs totaled $151 million at September 30, 2009, or 2.34% of total assets, compared to 1.04% at June 30, 2009. The CapitalSouth acquisition accounted for $97 million of the NPAs, and the legacy IBERIABANK Corporation franchise accounted for $54 million, or 0.93% of legacy assets (down 8% compared to June 30, 2009). IBERIABANK fsb accounted for $36 million in NPAs, or 2.43% of that entity's assets at September 30, 2009, and down 9% compared to June 30, 2009. Finally, excluding CapitalSouth, IBERIABANK had $18 million in NPAs, or 0.42% of that entity's assets at September 30, 2009, and down 5% compared to June 30, 2009.
Excluding CapitalSouth, total loans past due 30 days or more (including nonaccruing loans) represented 1.42% of total loans at September 30, 2009, up four basis points, compared to 1.38% of total loans at June 30, 2009.
Loans Past Due
Loans Past Due 30 Days Or More And Nonaccruing Loans As % Of
Loans Outstanding
By Entity: 6/30/08 9/30/08 12/31/08 3/31/09 6/30/09 9/30/09
------------------------------------------------------------------------
IBERIABANK
30+ days
past due 0.32% 0.28% 0.69% 0.31% 0.33% 0.32%
Non-accrual 0.23% 0.21% 0.22% 0.54% 0.47% 0.45%
-------------------------------------------------------
Total Past
Due 0.55% 0.49% 0.92% 0.85% 0.80% 0.77%
IBERIABANK fsb
30+ days
past due 1.06% 1.29% 1.57% 1.85% 1.73% 1.09%
Non-accrual 2.82% 2.42% 2.53% 2.12% 1.68% 2.45%
-------------------------------------------------------
Total Past
Due 3.88% 3.71% 4.10% 3.97% 3.41% 3.54%
Consolidated
(Ex-CapitalSouth)
30+ days
past due 0.51% 0.52% 0.89% 0.65% 0.64% 0.50%
Non-accrual 0.87% 0.72% 0.74% 0.90% 0.74% 0.92%
-------------------------------------------------------
Total Past
Due 1.38% 1.24% 1.63% 1.55% 1.38% 1.42%
-------------------------------------------------------
CapitalSouth
Only
30+ days
past due 7.62%
Non-accrual 24.64%
------
Total Past
Due 32.26%
Consolidated With
CapitalSouth
30+ days
past due 1.08%
Non-accrual 2.87%
------
Total Past
Due 3.95%
------
At September 30, 2009, the allowance for loan losses was 1.13%, down compared to 1.21% at June 30, 2009. In accordance with generally accepted accounting principles, the assets acquired in the CapitalSouth transaction were marked to market at consummation, including estimated impairment. As a result, no loan loss reserves are expected on these loans at this time. Excluding the acquired loans, the Company's ratio of loan loss reserves to loans increased from 1.21% at June 30, 2009 to 1.24% at September 30, 2009.
The Company reported net charge-offs of $23 million in the third quarter of 2009, compared to $3 million in the second quarter of 2009. The ratio of net charge-offs to average loans was 2.26% in the third quarter of 2009, compared to 0.33% in the second quarter of 2009. The Company recorded a $25 million loan loss provision in the third quarter of 2009, compared to $8 million in the second quarter of 2009. The elevated charge-offs were primarily due to valuations on recent appraisals of collateral securing certain loans, the Company's credit portfolio management process, general economic conditions, and other third quarter factors. Management considers the loan loss reserve adequate to absorb credit losses inherent in the loan portfolio at September 30, 2009.
Capital Position
The Company maintains strong capital ratios compared to peers. The equity-to-assets ratio was 13.15% at September 30, 2009, compared to 11.58% at June 30, 2009 and 9.69% one year ago. At September 30, 2009, the Company reported a tangible common equity ratio of 9.59%, compared to 7.44% at June 30, 2009. The Company's Tier 1 leverage ratio was 11.55%, compared to 9.24% at June 30, 2009 and 7.29% one year ago. The Company's total risk based capital ratio was 16.83%, compared to 13.54% at June 30, 2009 and 11.07% one year ago. The Company's tangible common equity to risk weighted assets ratio was 13.38%, compared to 9.76% at June 30, 2009, and 6.48% one year ago.
In July 2009, the Company issued and sold 4,427,500 shares of common stock for net proceeds of approximately $165 million in a public underwritten equity offering. The public offering was oversubscribed with aggregate orders totaling approximately $1.6 billion. Shares were sold in the offering at a price of $39.00 per share.
Regulatory Capital Ratios
At September 30, 2009
Well IBERIABANK IBERIABANK
Capital Ratio Capitalized IBERIABANK fsb Corporation
-----------------------------------------------------------------------
Tier 1 Leverage 5.00% 7.93% 10.31% 11.55%
Tier 1 Risk Based 6.00% 10.53% 13.63% 15.17%
Total Risk Based 10.00% 12.21% 14.87% 16.83%
At September 30, 2009, book value per share was $41.41, up $0.28, or 1%, compared to June 30, 2009, and up 4% compared to one year ago. Tangible book value per share improved $3.76, or 15%, over that period to $28.88, and up 45% compared to one year ago.
On September 21, 2009, the Company declared a quarterly cash dividend of $0.34 per share. This dividend level equated to an annualized dividend rate of $1.36 per share and an indicated dividend yield of 3.03%, based on the closing stock price of the Company's common stock on October 20, 2009 of $44.85 per share. Based on that closing stock price, the Company's common stock traded at a price-to-earnings ratio of 19.2 times the current First Call average consensus analyst estimate of $2.34 per fully diluted EPS for 2010. This price equated to 1.08 times September 30, 2009 book value per share of $41.41 and 1.55 times tangible book value per share of $28.88.
IBERIABANK Corporation
IBERIABANK Corporation is a multi-bank financial holding company with 170 combined offices, including 101 bank branch offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, and Florida, 26 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 43 locations in eleven states. The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC" and the Company's market capitalization is approximately $925 million, based on the closing stock price on October 20, 2009.
The following twelve investment firms currently provide equity research coverage on IBERIABANK Corporation:
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 Wednesday, October 21, 2009, beginning at 8:00 a.m. Central Time by dialing 1-800-230-1092. The confirmation code for the call is 116438. A replay of the call will be available until midnight Central Time on October 28, 2009 by dialing 1-800-475-6701. The confirmation code for the replay is 116438. 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 nonrecurring transactions. 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.
Forward Looking Statements
To the extent that statements in this press release relate to future plans, objectives, financial results or performance of IBERIABANK Corporation, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which are based on management's current information, estimates and assumptions and the current economic environment, are generally identified by the use of the words "plan", "believe", "expect", "intend", "anticipate", "estimate", "project" or similar expressions. IBERIABANK Corporation's actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties.
Actual results could differ materially because of factors such as the current level of market volatility and our ability to execute our growth strategy, risks relating to the integration of acquired companies that have previously been operated separately, credit risk of our customers, effects of the on-going correction in residential real estate prices and reduced levels of home sales, 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, reputational risk and social factors, changes in government regulations and legislation, increases in FDIC insurance assessments, geographic concentration of our markets, rapid changes in the financial services industry, dependence on our operational, technological, and organizational infrastructure, hurricanes and other adverse weather events, the volatility of our common stock, and valuation of intangible assets. These and other factors that may cause actual results to differ materially from these forward-looking statements are discussed in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission, available at the SEC's website, www.sec.gov, and the Company's website, www.iberiabank.com. All information in this release is as of the date of this release. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
IBERIABANK CORPORATION
FINANCIAL HIGHLIGHTS
For The Quarter Ended For The Quarter Ended
September 30, June 30,
----------------------------- ---------------------
2009 2008 % Change 2009 % Change
--------------------------------------------------------------------------
Income Data (in
thousands):
Net Interest
Income $40,666 $35,178 16% $38,276 6%
Net Interest
Income (TE)(1) 42,292 36,412 16% 39,694 7%
Net Income 24,952 8,755 185% 8,474 194%
Earnings Available
to Common
Shareholders-Basic 24,952 8,755 185% 8,474 194%
Earnings Available
to Common
Shareholders-
Diluted 24,344 8,509 186% 8,224 196%
Per Share Data:
Earnings Available
to Common
Shareholders -
Basic $1.23 $0.68 82% $0.53 134%
Earnings Available
to Common
Shareholders -
Diluted 1.22 0.66 85% 0.52 135%
Book Value Per
Common Share 41.41 39.96 4% 41.13 1%
Tangible Book
Value Per
Common Share(2) 28.88 19.89 45% 25.12 15%
Cash Dividends 0.34 0.34 - 0.34 -
Number of Shares
Outstanding:
Basic Shares
(Average) 20,253,317 12,937,738 57% 16,044,634 26%
Diluted Shares
(Average) 19,944,420 12,867,132 55% 15,793,002 26%
Book Value
Shares
(Period
End)(3) 20,623,541 12,977,196 59% 16,140,608 28%
Key Ratios:(4)
Return on Average
Assets 1.62% 0.66% 0.61%
Return on Average
Common Equity 11.77% 6.77% 5.11%
Return on Average
Tangible Common
Equity (2) 17.26% 14.31% 8.75%
Net Interest Margin
(TE)(1) 3.03% 3.01% 3.17%
Efficiency Ratio 44.7% 75.5% 70.9%
Tangible Efficiency
Ratio (TE)(1)(2) 43.5% 72.4% 68.2%
Average Loans to
Average Deposits 91.0% 90.4% 91.7%
Nonperforming
Assets to Total
Assets(5) 2.34% 0.81% 1.04%
Allowance for Loan
Losses to Loans 1.13% 1.09% 1.21%
Net Charge-offs to
Average Loans 2.26% 0.26% 0.33%
Average Equity to
Average Total
Assets 13.69% 9.74% 11.86%
Tier 1 Leverage
Ratio 11.55% 7.29% 9.24%
Common Stock Dividend
Payout Ratio 28.1% 50.4% 64.8%
Tangible Common
Equity Ratio 9.59% 4.92% 7.44%
Tangible Common
Equity to
Risk-Weighted
Assets 13.38% 6.48% 9.76%
(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) Tangible calculations eliminate the effect of goodwill and
acquisition related intangible assets and the corresponding
amortization expense on a tax-effected basis where applicable.
(3) Shares used for book value purposes exclude shares held in treasury
at the end of the period.
(4) All ratios are calculated on an annualized basis for the period
indicated.
(5) Nonperforming assets consist of nonaccruing loans, accruing loans 90
days or more past due and other real estate owned, including
repossessed assets.
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands except per share data)
BALANCE SHEET (End
of Period) September 30,
------------------ ---------------------------- June 30, December 31,
2009 2008 % Change 2009 2008
------- -------- -------- -------- ------------
ASSETS
------
Cash and Due From
Banks $86,659 $206,984 (58.1%) $149,863 $159,716
Interest-bearing
Deposits in
Banks 253,902 40,529 526.5% 41,482 186,149
---------- ---------- ----- ---------- ----------
Total Cash and
Equivalents 340,561 247,513 37.6% 191,345 345,865
Investment
Securities
Available for
Sale 1,024,868 842,432 21.7% 916,883 828,743
Investment
Securities
Held to Maturity 70,951 56,713 25.1% 106,505 60,733
---------- ---------- ----- ---------- ----------
Total
Investment
Securities 1,095,819 899,145 21.9% 1,023,388 889,476
Mortgage Loans
Held for Sale 52,796 61,419 (14.0%) 90,109 63,503
Loans, Net of
Unearned Income 4,298,845 3,629,372 18.4% 3,829,326 3,744,402
Allowance for
Loan Losses (48,787) (39,551) 23.4% (46,329) (40,872)
---------- ---------- ----- ---------- ----------
Loans, net 4,250,058 3,589,821 18.4% 3,782,997 3,703,530
Loss Share
Receivable 86,955 - 100.0% - -
Premises and
Equipment 130,453 131,762 (1.0%) 130,558 131,404
Goodwill and
Other
Intangibles 258,186 260,369 (0.8%) 258,437 259,683
Mortgage Servicing
Rights 219 72 204.5% 207 188
Other Assets 251,473 161,228 56.0% 225,586 189,577
---------- ---------- ----- ---------- ----------
Total Assets $6,466,520 $5,351,329 20.8% $5,702,627 $5,583,226
========== ========== ===== ========== ==========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
---------------
Noninterest-bearing
Deposits $628,804 $573,836 9.6% $576,042 $620,637
Interest-bearing
Deposits 4,146,933 3,361,088 23.4% 3,596,853 3,375,179
---------- ---------- ----- ---------- ----------
Total
Deposits 4,775,737 3,934,924 21.4% 4,172,895 3,995,816
Short-term
Borrowings 15,000 126,000 (88.1%) 50,000 58,000
Securities
Sold Under
Agreements
to Repurchase 193,234 119,973 61.1% 206,964 150,213
Long-term Debt 526,106 563,862 (6.7%) 538,161 568,479
Other Liabilities 105,862 88,040 20.2% 74,033 76,510
---------- ---------- ----- ---------- ----------
Total
Liabilities 5,615,939 4,832,799 16.2% 5,042,053 4,849,018
Total Shareholders'
Equity 850,581 518,530 64.0% 660,574 734,208
---------- ---------- ----- ---------- ----------
Total
Liabilities and
Shareholders'
Equity $6,466,520 $5,351,329 20.8% $5,702,627 $5,583,226
========== ========== ===== ========== ==========
For The Three Months Ended
INCOME STATEMENT September 30,
---------------- ---------------------------
2009 2008 % Change
------- ------- --------
Interest Income $63,554 $66,323 (4.2%)
Interest Expense 22,888 31,145 (26.5%)
------- ------- ------
Net Interest Income 40,666 35,178 15.6%
Provision for Loan Losses 25,295 2,131 1087.2%
------- ------- ------
Net Interest Income After Provision
for Loan Losses 15,371 33,047 (53.5%)
Service Charges 5,983 6,124 (2.3%)
ATM / Debit Card Fee Income 1,958 2,001 (2.2%)
BOLI Proceeds and Cash Surrender
Value Income 729 778 (6.3%)
Gain on Acquisition 57,831 - 100.0%
Gain on Sale of Loans, net 7,264 4,966 46.3%
Gain (Loss) on Sale of Investments, net (25) 8 (414.9%)
Title Revenue 4,638 5,215 (11.1%)
Broker Commissions 1,329 1,399 (5.0%)
Other Noninterest Income 1,527 2,084 (26.7%)
------- ------- ------
Total Noninterest Income 81,234 22,575 259.8%
Salaries and Employee Benefits 29,161 23,297 25.2%
Occupancy and Equipment 5,856 6,644 (11.9%)
Amortization of Acquisition Intangibles 627 575 9.1%
Other Noninterest Expense 18,896 13,079 44.5%
------- ------- ------
Total Noninterest Expense 54,540 43,595 25.1%
Income Before Income Taxes 42,065 12,027 (249.7%)
Income Taxes 17,113 3,272 (423.1%)
------- ------- ------
Net Income $24,952 $8,755 (185.0%)
======= ======= ======
Preferred Stock Dividends - - 0.0%
------- ------- ======
Earnings Available to Common
Shareholders - Basic 24,952 8,755 (185.0%)
======= ======= ======
Earnings Allocated to Unvested
Restricted Stock (608) (246) 147.1%
------- ------- =====
Earnings Available to Common
Shareholders - Diluted 24,344 8,509 186.1%
======= ======= ======
Earnings Per Share, diluted $1.22 $0.66 84.6%
======= ======= ======
For The Nine Months Ended
INCOME STATEMENT September 30,
---------------- ---------------------------
2009 2008 % Change
------- ------- --------
Interest Income $184,849 $198,753 (7.0%)
Interest Expense 69,620 98,276 (29.2%)
------- ------- ------
Net Interest Income 115,229 100,477 14.7%
Provision for Loan Losses 36,110 6,362 467.6%
------- ------- ------
Net Interest Income After Provision
for Loan Losses 79,119 94,115 (15.9%)
Service Charges 16,734 17,173 (2.6%)
ATM / Debit Card Fee Income 5,635 5,016 12.3%
BOLI Proceeds and Cash Surrender
Value Income 2,163 2,287 (5.4%)
Gain on Acquisition 57,831 - 100.0%
Gain on Sale of Loans, net 26,602 21,003 26.7%
Gain (Loss) on Sale of Investments, net 5,857 612 856.3%
Title Revenue 14,349 15,196 (5.6%)
Broker Commissions 3,544 4,372 (18.9%)
Other Noninterest Income 4,278 5,886 (27.3%)
------- ------- ------
Total Noninterest Income 136,993 71,545 91.5%
Salaries and Employee Benefits 80,041 66,609 20.2%
Occupancy and Equipment 17,269 17,592 (1.8%)
Amortization of Acquisition Intangibles 1,870 1,725 8.4%
Other Noninterest Expense 48,965 34,749 40.9%
------- ------- ------
Total Noninterest Expense 148,145 120,675 22.8%
Income Before Income Taxes 67,967 44,985 51.1%
Income Taxes 25,396 13,349 90.2%
------- ------- ------
Net Income $42,571 $31,636 34.6%
======= ======= ======
Preferred Stock Dividends (3,350) - 100.0%
------- ------- ======
Earnings Available to Common
Shareholders - Basic 39,221 31,636 24.0%
======= ======= ======
Earnings Allocated to Unvested
Restricted Stock (1,035) (905) 14.4%
------- ------- ======
Earnings Available to Common
Shareholders - Diluted 38,186 30,731 24.3%
======= ======= ======
Earnings Per Share, diluted $2.22 $2.40 (7.7%)
======= ======= ======
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands except per share data)
For The Quarter Ended
---------------------------------------------------------
September June March December September
BALANCE SHEET 30, 30, 31, 31, 30,
(Average) 2009 2009 2009 2008 2008
------------- --------- ------- ------- ------- ---------
ASSETS
------
Cash and Due
From Banks $66,376 $78,939 $78,204 $77,896 $80,104
Interest-bearing
Deposits in
Banks 293,087 61,115 130,584 106,618 155,620
Investment
Securities 1,074,896 1,033,274 995,766 889,983 918,932
Mortgage Loans
Held for Sale 60,350 89,298 81,910 44,841 62,443
Loans, Net
of Unearned
Income 4,043,680 3,788,273 3,743,032 3,662,020 3,597,935
Allowance for
Loan Losses (45,711) (42,970) (40,711) (39,640) (39,825)
Loss Share
Receivable 38,771 - - - -
Other Assets 592,602 585,016 583,373 583,147 508,770
---------- ---------- ---------- ---------- ----------
Total
Assets $6,124,051 $5,592,945 $5,572,158 $5,324,865 $5,283,979
========== ========== ========== ========== ==========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
---------------
Noninterest-
bearing
Deposits $582,619 $570,298 $554,269 $575,738 $535,210
Interest-
bearing
Deposits 3,859,935 3,558,739 3,461,866 3,388,765 3,446,247
---------- ---------- ---------- ---------- ----------
Total
Deposits 4,442,554 4,129,037 4,016,135 3,964,503 3,981,457
Short-term
Borrowings 2,174 22,489 45,760 32,367 52,279
Securities
Sold Under
Agreements
to Repurchase 210,109 149,664 141,186 138,763 125,287
Long-term Debt 536,559 541,557 552,838 567,562 568,624
Other
Liabilities 94,470 86,819 72,430 51,473 41,832
---------- ---------- ---------- ---------- ----------
Total
Liabilities 5,285,866 4,929,566 4,828,349 4,754,668 4,769,479
Total
Shareholders'
Equity 838,185 663,379 743,809 570,197 514,500
---------- ---------- ---------- ---------- ----------
Total
Liabilities and
Shareholders'
Equity $6,124,051 $5,592,945 $5,572,158 $5,324,865 $5,283,979
========== ========== ========== ========== ==========
2009 2008
------------------------- ----------------
Third Second First Fourth Third
INCOME STATEMENT Quarter Quarter Quarter Quarter Quarter
---------------- ------- ------- ------- ------- -------
Interest Income $63,554 $60,974 $60,321 $65,074 $66,323
Interest Expense 22,888 22,698 24,034 27,907 31,145
------- ------ ------ ------ ------
Net Interest Income 40,666 38,276 36,287 37,167 35,178
Provision for Loan Losses 25,295 7,783 3,032 6,206 2,131
------- ------ ------ ------ ------
Net Interest Income After
Provision for Loan Losses 15,371 30,493 33,255 30,961 33,047
Total Noninterest Income 81,234 32,030 23,730 20,388 22,575
Total Noninterest Expense 54,540 49,814 43,792 40,552 43,595
------- ------ ------ ------ ------
Income Before Income
Taxes 42,065 12,709 13,193 10,797 12,027
Income Taxes 17,113 4,235 4,048 2,521 3,272
------- ------ ------ ------ ------
Net Income $24,952 $8,474 $9,145 $8,276 $8,755
======= ====== ====== ====== ======
Preferred Stock Dividends - - (3,350) (348) -
======= ====== ====== ====== ======
Earnings Available to
Common Shareholders -
Basic $24,952 $8,474 $5,795 $7,928 $8,755
======= ====== ====== ====== ======
Earnings Allocated to
Unvested Restricted
Stock (608) (250) (169) (212) (246)
---- ---- ---- ---- ----
Earnings Available to
Common Shareholders -
Diluted $24,344 $8,224 $5,626 $7,716 $8,509
======= ====== ====== ====== ======
Earnings Per Share, basic $1.23 $0.53 $0.36 $0.58 $0.68
======= ====== ====== ====== ======
Earnings Per Share, diluted $1.22 $0.52 $0.36 $0.57 $0.66
======= ====== ====== ====== ======
Book Value Per Share $41.41 $41.13 $40.98 $40.53 $39.96
======= ====== ====== ====== ======
Return on Average Assets 1.62% 0.61% 0.67% 0.62% 0.66%
Return on Average Common
Equity 11.77% 5.11% 3.59% 5.80% 6.77%
Return on Average Tangible
Common Equity 17.26% 8.75% 6.35% 11.74% 14.31%
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands)
LOANS
RECEIVABLE September 30,
----------- ----------------------------- June 30, December 31,
2009 2008 % Change 2009 2008
---------- -------- -------- ---------- ------------
Residential
Mortgage
Loans:
Residential 1-4
Family $519,601 $490,732 5.9% $453,807 $498,740
Construction/
Owner Occupied 19,737 46,555 (57.6%) 23,768 36,693
---------- ---------- ---- ---------- ----------
Total
Residential
Mortgage
Loans 539,338 537,287 0.4% 477,575 535,433
Commercial
Loans:
Real Estate 1,808,787 1,500,380 20.6% 1,584,791 1,522,965
Business 1,005,862 686,898 46.4% 847,017 775,625
---------- ---------- ---- ---------- ----------
Total
Commercial
Loans 2,814,649 2,187,278 28.7% 2,431,808 2,298,590
Consumer Loans:
Indirect
Automobile 267,801 262,715 1.9% 270,188 265,722
Home Equity 525,721 493,917 6.4% 507,619 501,036
Automobile 30,782 29,738 3.5% 29,685 28,464
Credit Card
Loans 42,527 35,845 18.6% 40,403 38,014
Other 78,027 82,592 (5.5%) 72,048 77,143
---------- ---------- ---- ---------- ----------
Total
Consumer
Loans 944,858 904,807 4.4% 919,943 910,379
---------- ---------- ---- ---------- ----------
Total Loans
Receivable 4,298,845 3,629,372 18.4% 3,829,326 3,744,402
====
Allowance for
Loan Losses (48,787) (39,551) (46,329) (40,872)
---------- ---------- ---------- ----------
Loans
Receivable,
Net $4,250,058 $3,589,821 $3,782,997 $3,703,530
========== ========== ========== ==========
ASSET QUALITY
DATA September 30,
------------- ---------------------------- June 30, December 31,
2009 2008 % Change 2009 2008
-------- ------ -------- -------- ------------
Nonaccrual
Loans $123,304 $26,081 372.8% $28,519 $27,825
Foreclosed
Assets 55 61 (9.4%) 19 38
Other Real
Estate Owned 23,009 12,383 85.8% 17,333 16,274
Accruing Loans
More Than 90
Days Past Due 4,698 4,895 (4.0%) 13,259 2,481
-------- ------- ----- ------- -------
Total Nonperforming
Assets $151,066 $43,420 247.9% $59,130 $46,618
======== ======= ===== ======= =======
Nonperforming
Assets to Total
Assets 2.34% 0.81% 187.8% 1.04% 0.83%
Nonperforming
Assets to
Total Loans
and OREO 3.50% 1.19% 193.2% 1.54% 1.24%
Allowance for
Loan Losses
to
Nonperforming
Loans (1) 38.1% 127.7% (70.1%) 110.9% 134.9%
Allowance for
Loan Losses to
Nonperforming
Assets 32.3% 91.1% (64.5%) 78.4% 87.7%
Allowance for
Loan Losses
to Total Loans 1.13% 1.09% 4.1% 1.21% 1.09%
Year to Date
Charge-offs $29,890 $7,336 307.5% $6,426 $12,882
Year to Date
Recoveries (1,549) (2,239) (30.8%) (1,068) $(2,900)
-------- ------- ----- ------- -------
Year to Date
Net Charge-
offs $28,341 $5,097 456.1% $5,358 $9,982
======== ======= ===== ======= =======
Quarter to
Date Net
Charge-offs $22,984 $2,333 885.0% $3,116 $4,885
======== ======= ===== ======= =======
(1) Nonperforming loans consist of nonaccruing loans and accruing loans 90
days or more past due.
DEPOSITS September 30,
-------- ------------------------------ June 30, December 31,
2009 2008 % Change 2009 2008
---------- --------- -------- ---------- ------------
Noninterest-
bearing Demand
Accounts $628,804 $573,836 9.6% $576,042 $620,637
NOW Accounts 959,041 783,182 22.5% 947,963 821,649
Savings and
Money Market
Accounts 1,326,202 995,238 33.3% 1,127,996 954,408
Certificates of
Deposit 1,861,690 1,582,668 17.6% 1,520,894 1,599,122
---------- ---------- ---- ---------- ----------
Total
Deposits $4,775,737 $3,934,924 21.4% $4,172,895 $3,995,816
========== ========== ==== ========== ==========
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Taxable Equivalent Basis
(dollars in thousands)
For The Quarter Ended
----------------------------------------------
September 30, 2009 June 30, 2009
----------------------- ----------------------
Average Average Average Average
Balance Yield/Rate (%) Balance Yield/Rate (%)
------- -------------- ------- --------------
ASSETS
------
Earning Assets:
Loans Receivable:
Mortgage Loans $502,727 5.54% $492,293 5.65%
Commercial Loans
(TE)(1) 2,606,294 4.76% 2,383,784 4.68%
Consumer and Other
Loans 934,659 6.40% 912,196 6.49%
---------- ---- ---------- ----
Total Loans 4,043,680 5.24% 3,788,273 5.24%
Mortgage Loans
Held for Sale 60,350 4.72% 89,298 4.74%
Investment
Securities (TE)
(1)(2) 1,040,276 4.03% 1,006,051 4.47%
Other Earning
Assets 373,383 0.32% 95,880 0.82%
---------- ---- ---------- ----
Total Earning
Assets 5,517,689 4.67% 4,979,502 4.99%
Allowance for
Loan Losses (45,711) (42,970)
Nonearning Assets 652,073 656,413
---------- ----------
Total Assets $6,124,051 $5,592,945
========== ==========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
---------------
Interest-bearing
Liabilities:
Deposits:
NOW Accounts $945,046 0.77% $947,363 0.86%
Savings and
Money Market
Accounts 1,221,506 1.31% 1,101,165 1.43%
Certificates of
Deposit 1,693,383 2.70% 1,510,211 2.88%
---------- ---- ---------- ----
Total
Interest-
bearing
Deposits 3,859,935 1.79% 3,558,739 1.90%
Short-term
Borrowings 212,283 0.68% 172,153 0.71%
Long-term Debt 536,559 3.76% 541,557 4.07%
---------- ---- ---------- ----
Total Interest-
bearing
Liabilities 4,608,777 1.96% 4,272,449 2.12%
Noninterest-bearing
Demand Deposits 582,619 570,298
Noninterest-bearing
Liabilities 94,470 86,819
---------- ----------
Total
Liabilities 5,285,866 4,929,566
Shareholders' Equity 838,185 663,379
---------- ----------
Total
Liabilities and
Shareholders'
Equity $6,124,051 $5,592,945
========== ==========
Net Interest
Spread $40,666 2.70% $38,276 2.87%
Tax-equivalent
Benefit 1,626 0.12% 1,418 0.11%
Net Interest Income
(TE) / Net Interest
Margin (TE)(1) $42,292 3.03% $39,694 3.17%
For The Quarter Ended
---------------------------
September 30, 2008
---------------------------
Average Average
Balance Yield/Rate (%)
--------- --------------
ASSETS
------
Earning Assets:
Loans Receivable:
Mortgage Loans $552,460 5.90%
Commercial Loans (TE) (1) 2,152,958 5.51%
Consumer and Other Loans 892,517 6.94%
---------- ----
Total Loans 3,597,935 5.93%
Mortgage Loans Held for Sale 62,443 6.14%
Investment Securities (TE) (1)(2) 918,477 4.99%
Other Earning Assets 196,254 2.21%
---------- ----
Total Earning Assets 4,775,109 5.60%
Allowance for Loan Losses (39,825)
Nonearning Assets 548,695
----------
Total Assets $5,283,979
==========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Interest-bearing Liabilities:
Deposits:
NOW Accounts $804,004 1.45%
Savings and Money Market Accounts 1,015,812 2.13%
Certificates of Deposit 1,626,431 3.83%
---------- ----
Total Interest-bearing
Deposits 3,446,247 2.77%
Short-term Borrowings 177,566 1.70%
Long-term Debt 568,624 4.39%
---------- ----
Total Interest-bearing
Liabilities 4,192,437 2.94%
Noninterest-bearing Demand Deposits 535,210
Noninterest-bearing Liabilities 41,832
----------
Total Liabilities 4,769,479
Shareholders' Equity 514,500
----------
Total Liabilities and
Shareholders' Equity $5,283,979
==========
Net Interest Spread $35,178 2.66%
Tax-equivalent Benefit 1,234 0.10%
Net Interest Income (TE) / Net Interest
Margin (TE)(1) $36,412 3.01%
(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 impact of trade date accounting.
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Taxable Equivalent Basis
(dollars in thousands)
For The Nine Months Ended
----------------------------------------------------
September 30, 2009 September 30, 2008
------------------------ ------------------------
Average Average Average Average
Balance Yield/Rate (%) Balance Yield/Rate (%)
------- -------------- ------- --------------
ASSETS
------
Earning Assets:
Loans Receivable:
Mortgage Loans $505,333 5.61% $563,502 5.91%
Commercial
Loans (TE)(1) 2,436,334 4.71% 2,076,260 5.78%
Consumer and
Other Loans 917,763 6.51% 853,660 7.22%
---------- ---- ---------- ----
Total Loans 3,859,430 5.25% 3,493,422 6.15%
Mortgage Loans
Held for Sale 77,107 4.76% 64,490 5.84%
Investment
Securities (TE)
(1)(2) 1,005,094 4.36% 873,103 5.08%
Other Earning
Assets 216,990 0.45% 189,715 2.74%
---------- ---- ---------- ----
Total Earning
Assets 5,158,621 4.87% 4,620,730 5.80%
Allowance for Loan
Losses (43,149) (38,969)
Nonearning Assets 649,605 584,815
---------- ----------
Total Assets $5,765,077 $5,166,576
========== ==========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
---------------
Interest-bearing
Liabilities:
Deposits:
NOW Accounts $934,354 0.84% $826,330 1.60%
Savings and
Money Market
Accounts 1,110,675 1.42% 922,650 2.26%
Certificates of
Deposit 1,583,276 2.90% 1,600,971 4.17%
---------- ---- ---------- ----
Total
Interest-
bearing
Deposits 3,628,305 1.92% 3,349,951 3.01%
Short-term
Borrowings 190,553 0.74% 216,532 2.41%
Long-term
Debt 543,592 4.01% 549,831 4.51%
---------- ---- ---------- ----
Total Interest-
bearing
Liabilities 4,362,450 2.13% 4,116,314 3.18%
Noninterest-
bearing Demand
Deposits 569,166 487,619
Noninterest-
bearing
Liabilities 84,654 48,590
---------- ----------
Total
Liabilities 5,016,270 4,652,523
Shareholders' Equity 748,807 514,053
---------- ----------
Total
Liabilities
and
Shareholders'
Equity $5,765,077 $5,166,576
=========== ==========
Net Interest Spread $115,230 2.74% $100,477 2.63%
Tax-equivalent Benefit 4,381 0.11% 3,652 0.10%
Net Interest Income
(TE) / Net Interest
Margin (TE)(1) $119,611 3.07% $104,129 2.97%
(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 impact of trade date accounting.
IBERIABANK CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(dollars in thousands)
For The Quarter Ended
---------------------------------
9/30/2009 6/30/2009 9/30/2008
--------- --------- ---------
Net Interest Income $40,666 $38,276 $35,178
Effect of Tax Benefit on
Interest Income 1,626 1,418 1,234
-------- ------- -------
Net Interest Income (TE)(1) 42,292 39,694 36,412
-------- ------- -------
Noninterest Income 81,234 32,030 22,575
Effect of Tax Benefit on
Noninterest Income 393 388 419
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Noninterest Income (TE)(1) 81,627 32,418 22,994
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Total Revenues (TE)(1) $123,919 $72,112 $59,406
======== ======= =======
Total Noninterest Expense $54,540 $49,814 $43,595
Less Intangible Amortization Expense (627) (622) (575)
-------- ------- -------
Tangible Operating Expense(2) $53,913 $49,192 $43,020
======== ======= =======
Return on Average Common Equity 11.77% 5.11% 6.77%
Effect of Intangibles(2) 5.49% 3.64% 7.54%
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Return on Average Tangible Common
Equity(2) 17.26% 8.75% 14.31%
======== ======= =======
Efficiency Ratio 44.7% 70.9% 75.5%
Effect of Tax Benefit Related to Tax
Exempt Income (0.7%) (1.8%) (2.1%)
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Efficiency Ratio (TE)(1) 44.0% 69.1% 73.4%
Effect of Amortization of Intangibles (0.5%) (0.9%) (1.0%)
-------- ------- -------
Tangible Efficiency Ratio (TE)(1)(2) 43.5% 68.2% 72.4%
======== ======= =======
(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) Tangible calculations eliminate the effect of goodwill and
acquisition related intangible assets and the corresponding
amortization expense on a tax-effected basis where applicable.
SOURCE IBERIABANK Corporation
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