LAFAYETTE, La., Oct. 26, 2016 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 129-year-old IBERIABANK (www.iberiabank.com), reported financial results for the third quarter ended September 30, 2016.  For the quarter, the Company reported income available to common shareholders of $44.5 million, or $1.08 fully diluted earnings per common share ("EPS").  On a non-GAAP basis, EPS excluding non-core revenues and non-core expenses ("Core EPS") in the third quarter of 2016 was also $1.08 per common share (refer to press release supplemental tables for a reconciliation of GAAP to non-GAAP metrics).

Daryl G. Byrd, President and Chief Executive Officer, commented, "We continue to make great strides toward identifying and reducing our risk exposures and resolving our energy-related matters. The resolution process has generally progressed as we expected; however, the 'conveyor belt' on which these matters get resolved accelerated during the third quarter. That acceleration caused us to report higher levels of energy-related non-performing assets, interest accrual reversals, and net charge-offs than in prior quarters.  While these energy-related items and other notable expenses suppressed our financial results in the third quarter of 2016, we believe some of these items may diminish or reverse in future periods. We also believe this accelerated process has brought us to the point at which our energy concerns have crested."

Byrd continued, "Our top-line revenues in the third quarter benefited from good loan growth and exceptional deposit growth, while margin compression and lower mortgage income partially offset the benefits of favorable client growth.  The loan loss provision has likely crested as a result of the accelerated timing of energy-related asset resolution. Our stable tangible core efficiency ratio of 60% confirms our continued focus on cost control. We remain optimistic regarding our relative growth prospects, favorable risk position, and the competitive dynamics within the banking industry."

Highlights for the third quarter of 2016 and at September 30, 2016:

  • The Company continued to reduce energy-related exposures as energy-related loans ("energy loans") decreased $62 million, or 9%, between June 30, 2016 and September 30, 2016, and at September 30, 2016, equated to 4.0% of total loans. At September 30, 2016, the Company had approximately $29 million in reserves for energy loans and unfunded commitments (which equated to 4.9% of energy loans outstanding). Energy-related non-performing assets increased $93 million, or 153%, between quarter-ends as the problem asset resolution process continued.
  • The Company's reported and cash net interest margins declined eight and 10 basis points, respectively, on a linked quarter basis. The declines in the reported and cash margins were primarily the result of interest accrual reversals for loans moved to non-accrual status during the third quarter of 2016, accelerated bond premium amortization, and additional balance sheet liquidity.
  • On a linked quarter basis, the Company's revenues decreased $4.4 million, or 2%, and non-GAAP core revenues decreased $2.7 million, or 1%. Over the same period, GAAP expenses decreased $1.4 million, or 1%, and non-GAAP core expenses decreased $1.3 million, or 1%. The efficiency ratio increased from 61.3% to 61.9%, while the non-GAAP core tangible efficiency ratio increased from 60.0% to 60.1% on a linked quarter basis.
  • Total loan growth was $202 million, or 1%, between June 30, 2016 and September 30, 2016. Legacy loan growth, which excludes all assets covered under FDIC loss share agreements and other non-covered acquired assets (collectively, "Acquired Assets"), increased $429 million, or 4% (14% annualized rate), on a period-end basis and $446 million, or 4% (15% annualized rate), on an average balance basis.
  • Total deposits increased $660 million, or 4%, between quarter-ends, and increased $97 million, or 1%, on an average balance basis. Non-interest-bearing deposits increased $248 million, or 5%, between quarter-ends and increased $142 million, or 3%, on an average balance basis.

Table A - Summary Financial Results

(Dollars in thousands, except per share data)













For the Three Months Ended


9/30/2016



6/30/2016


% Change


9/30/2015


% Change

GAAP BASIS:











Net income available to common shareholders

$        44,478



$        49,956


(11.0)


$        42,475


4.7

Earnings per common share - diluted

1.08



1.21


(10.7)


1.03


4.9












Average gross loans and leases

$ 14,802,199



$ 14,570,945


1.6


$ 14,009,601


5.7

Average total deposits

16,076,742



15,979,391


0.6


16,369,564


(1.8)

Net interest margin (TE)(1)

3.53

%


3.61

%



3.50

%













Total revenues

$      223,238



$      227,670


(1.9)


$      212,595


5.0

Total non-interest expense

138,139



139,504


(1.0)


144,968


(4.7)

Efficiency ratio

61.9

%


61.3

%



68.2

%


Return on average assets

0.94



1.02




0.86



Return on average common equity

7.00



8.05




7.09














NON-GAAP BASIS (2):











Core revenues

$      223,226



$      225,881


(1.2)


$      210,374


6.1

Core non-interest expense

138,139



139,443


(0.9)


140,497


(1.7)

Core earnings per common share - diluted

1.08



1.18


(8.5)


1.07


0.9

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

60.1

%


60.0

%



64.8

%


Core return on average assets

0.94



1.00




0.89



Core return on average tangible common equity(4)

10.30



11.64




11.18



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

3.31



3.41




3.31














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

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

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

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

Operating Results

On a linked quarter basis, average loan volume (including the FDIC loss share receivable) increased $227 million, or 2%, and the associated tax-equivalent yield decreased four basis points.  Over that period, average legacy loans increased $446 million, or 4%, with a decrease in yield of three basis points, and average Acquired Assets (including the FDIC loss share receivable) decreased $219 million, or 8%, and the yield increased nine basis points.  All other average earning assets, including investment securities, mortgage loans held for sale, and interest-bearing deposits in other institutions, increased a net of $139 million, or 4%.

On a linked quarter basis, average earning assets increased $366 million, or 2%, and the average earning asset yield decreased eight basis points.  Average interest-bearing liabilities increased $153 million, or 1%, and the cost of interest-bearing liabilities increased three basis points.  As a result, the net interest spread declined 11 basis points and the net interest margin declined eight basis points.  On a linked quarter basis, tax-equivalent net interest income increased $0.7 million, or less than 1%.

In the third quarter of 2016, non-interest income decreased $5.1 million, or 8%, compared to the second quarter of 2016.  As a result of gains on the sale of investment securities in the second quarter of 2016, core non-interest income decreased $3.3 million, or 5%, on a linked quarter basis.  The primary changes in core non-interest income on a linked quarter basis included:

  • Decreased mortgage income of $4.2 million, or 16% (which included a $1.1 million negative fair value adjustment to move certain mortgage loans to held for investment); and
  • Decreased title revenues of $0.1 million, or 2%; partially offset by
  • Increased credit card income of $0.8 million; and
  • Increased treasury management income of $0.3 million.

In the third quarter of 2016, the Company originated $699 million in residential mortgage loans, down $10 million, or 1%, on a linked quarter basis.  Client loan refinancing opportunities accounted for approximately 26% of mortgage loan applications in the third quarter of 2016, compared to 16% on a linked quarter basis.  The Company sold $706 million in mortgage loans during the third quarter of 2016, up $33 million, or 5%, on a linked quarter basis.  Loans held for sale decreased from $230 million at June 30, 2016, to $211 million at September 30, 2016.  The mortgage origination locked pipeline was $282 million at September 30, 2016, down $63 million, or 18%, between quarter-ends, and was down slightly compared to one year ago.  At October 21, 2016, the locked pipeline was $283 million, up slightly compared to September 30, 2016.

Non-interest expense decreased $1.4 million, or 1%, on a linked quarter basis, while core expense decreased $1.3 million, or 1%.  Core expense changes included the following on a linked-quarter basis:

  • Increased health care costs of $1.3 million;
  • Increased professional services expense of $1.2 million;
  • Increased franchise and share tax of $0.7 million; and
  • Increased FDIC insurance premiums of $0.4 million; partially offset by
  • Decreased annual incentives expense of $1.7 million;
  • Decreased credit and loan-related expenses of $1.0 million;
  • Decreased payroll taxes of $1.0 million;
  • Decreased OREO expense of $0.8 million; and
  • Decreased mortgage commission expenses of $0.4 million.

The Company's core tangible efficiency ratio in the third quarter of 2016 was 60.1%, up slightly from 60.0% in the second quarter of 2016.  The Company continues to focus on expense containment and revenue enhancement strategies intended to further improve its targeted core tangible efficiency ratio.

The Company anticipates it will record a reduced income tax expense of approximately $6 million upon filing its 2015 tax return in the fourth quarter of 2016. The after-tax non-core EPS benefit of this lower tax expense is estimated to be approximately 15 cents per common share in the fourth quarter of 2016. 

Table B - Summary Financial Condition Results

(Dollars in thousands, except per share data)

















As of and For the Three Months Ended



9/30/2016



6/30/2016



% Change


9/30/2015



% Change

PERIOD-END BALANCES:














Total loans and leases

$ 14,924,499



$ 14,722,561



1.4


$ 14,117,019



5.7


Legacy loans and leases

12,413,370



11,984,849



3.6


10,779,258



15.2


Total deposits

16,522,517



15,862,027



4.2


16,303,065



1.3















ASSET QUALITY RATIOS (LEGACY):














Past due loans to total loans (1)

2.20

%


1.18

%




0.64

%




Non-performing assets to total assets (2)

1.33



0.63





0.43





Classified assets to total assets (3)

2.18



2.09





0.83


















CAPITAL RATIOS:














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

8.87

%


9.00

%




8.75

%




Tier 1 leverage ratio

9.70



9.70





9.33





Total risk-based capital ratio

12.47



12.46





12.15


















PER COMMON SHARE DATA:














Book value

$          61.71



$          61.05



1.1


$          58.49



5.5


Tangible book value (Non-GAAP) (4) (5)

43.26



42.53



1.7


39.95



8.3


Closing stock price

67.12



59.73



12.4


58.21



15.3


Cash dividends

0.36



0.34



5.9


0.34



5.9















(1)

Past due loans include non-accruing loans.

(2)

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

(3)

Classified assets consist of $398 million, $364 million and $133 million at September 30, 2016, June 30, 2016, and September 30, 2015, respectively.

(4)

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

(5)

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

Loans

Total loans increased $202 million, or 1%, between June 30, 2016, and September 30, 2016.  Over that period, Acquired Assets decreased $227 million, or 8%, and legacy loans increased $429 million, or 4% (14% annualized rate), including a decrease in total energy loans of $62 million, or 9%, and a decline in indirect automobile loans of $28 million, or 16%.  During the third quarter of 2016, legacy commercial loans increased $344 million, or 4% (which included $42 million in small business loan growth, up 4%, or 14% annualized rate), legacy consumer loans increased $49 million, or 2%, and legacy mortgage loans increased $45 million, or 6%.  Period-end loan growth during the third quarter of 2016 was strongest in the Atlanta, Birmingham, and Tampa markets.  Funded loan origination and renewal mix in the third quarter of 2016 was 35% fixed rate and 65% floating rate, and total loans outstanding (excluding non-accruals) were 44% fixed and 56% floating.   Commitments originated and/or renewed during the third quarter of 2016 were $1.4 billion (down 18% on a linked quarter basis).  Loans originated and/or renewed during the third quarter of 2016 totaled $1.0 billion (down 1% on a linked quarter basis).  At September 30, 2016, the Company's commercial loan pipeline was approximately $630 million.

Table C - Period-End Loans

(Dollars in thousands, except per share data)



















As of and For the Three Months Ended








Linked Qtr Change


Year/Year Change


Mix


9/30/2016


6/30/2016


9/30/2015


$

%


Annualized


$

%


9/30/2016

6/30/2016

Legacy loans:

















Commercial

$   9,119,234


$   8,784,789


$   7,815,161


334,445

3.8


15.2 %


1,304,073

16.7


73.4 %

73.3 %

Residential mortgage

840,082


794,701


660,543


45,381

5.7


22.8 %


179,539

27.2


6.8 %

6.6 %

Consumer

2,454,054


2,405,359


2,303,554


48,695

2.0


8.0 %


150,500

6.5


19.8 %

20.1 %

Total legacy loans

12,413,370


11,984,849


10,779,258


428,521

3.6


14.3 %


1,634,112

15.2


100.0 %

100.0 %


















Acquired loans:

















Balance at beginning of period

2,737,712


2,922,547


3,555,010


(184,835)

(6.3)




(817,298)

(23.0)




Loans acquired during the period










Net paydown activity

(226,583)


(184,835)


(217,249)


(41,748)

22.6




(9,334)

4.3




Total acquired loans

2,511,129


2,737,712


3,337,761


(226,583)

(8.3)




(826,632)

(24.8)




Total loans

$ 14,924,499


$ 14,722,561


$ 14,117,019


201,938

1.4




807,480

5.7




Energy loans outstanding totaled $600 million at September 30, 2016, down $62 million, or 9%, compared to June 30, 2016, and equated to approximately 4.0% of total loans (down from 4.5% at June 30, 2016).  Energy-related commitments totaled $1.0 billion at September 30, 2016, down $64 million, or 6%, compared to June 30, 2016. Loans to exploration and production companies accounted for 50% of energy loans outstanding and 54% of energy loan commitments at September 30, 2016.  Midstream companies accounted for 19% of energy loans and 20% of energy loan commitments, and service companies accounted for 31% of energy loans and 26% of energy loan commitments.  At September 30, 2016, $154 million in energy loans were on non-accrual status (compared to $61 million at June 30, 2016), and no energy loans (excluding non-accruing loans) were past due greater than 30 days at quarter-end.  At September 30, 2016,  approximately 42% of energy loans were classified and 53% were criticized, compared to 37% and 47%, respectively at June 30, 2016.  To date, the Company has experienced $15 million in energy-related charge-offs.  Additional information regarding the Company's energy loan and commitment exposure is provided in Table 8 of this press release and in the supplemental investor presentation.

At September 30, 2016, the Company's indirect automobile lending business had approximately $154 million in loans outstanding, down $28 million, or 16%, compared to June 30, 2016 (1.0% of total loans outstanding compared to 1.2% at June 30, 2016).

Deposits

Total deposits increased $660 million, or 4%, between June 30, 2016 and September 30, 2016.  Over that period, non-interest-bearing deposits increased $248 million, or 5%, and equated to 29% of total deposits at September 30, 2016.  NOW accounts decreased $80 million, or 3%, savings deposits edged up $2 million, or less than 1%, and time deposits increased $34 million, or 2%. Between June 30, 2016 and September 30, 2016, money market accounts increased $457 million, or 8%. Deposit growth during the third quarter of 2016 was strongest in the Houston, Orlando, Tampa, New Orleans, and Mobile markets.

Table D - Period-End Deposits

(Dollars in thousands)








Linked Qtr Change


Year/Year Change


Mix


9/30/2016


6/30/2016


9/30/2015


$

%

Annualized


$

%


9/30/2016

6/30/2016

Non-interest-bearing

$   4,787,485


$   4,539,254


$   4,392,808


248,231

5.5

21.9 %


394,677

9.0


29.0 %

28.6 %

NOW accounts

2,904,835


2,985,284


2,635,021


(80,449)

(2.7)

(10.8)%


269,814

10.2


17.6 %

18.8 %

Money market accounts

5,847,913


5,391,390


6,274,428


456,523

8.5

33.9 %


(426,515)

(6.8)


35.4 %

34.0 %

Savings accounts

798,781


796,855


725,435


1,926

0.2

1.0 %


73,346

10.1


4.8 %

5.0 %

Time deposits

2,183,503


2,149,244


2,275,373


34,259

1.6

6.4 %


(91,870)

(4.0)


13.2 %

13.6 %

Total deposits

$ 16,522,517


$ 15,862,027


$ 16,303,065


660,490

4.2

16.7 %


219,452

1.3


100.0 %

100.0 %

On an average balance and linked quarter basis, non-interest-bearing deposits increased $142 million, or 3%, and interest-bearing deposits decreased $44 million, or less than 1%.  The rate on average interest-bearing deposits in the third quarter of 2016 was 0.44%, up two basis points on a linked quarter basis.

Other Assets And Funding

On an average balance and linked quarter basis, the investment portfolio decreased $26 million, or 1%, to $2.8 billion in the third quarter of 2016.  On a period-end basis, the investment portfolio equated to $3.0 billion, or 14% of total assets at September 30, 2016, up $107 million, or 4%, compared to June 30, 2016.  The investment portfolio had an effective duration of 3.0 years at September 30, 2016, compared to 2.7 years at June 30, 2016.  The investment portfolio had a $42 million unrealized gain at September 30, 2016, down from $52 million at June 30, 2016.  The average yield on investment securities decreased nine basis points on a linked quarter basis, to 2.09% in the third quarter of 2016.  Accelerated bond premium amortization totaled approximately $0.7 million and caused a five-basis point decline in the investment portfolio yield. The Company holds in its investment portfolio primarily government agency securities.  Municipal securities comprised 10% of total investments at September 30, 2016.  The Company holds for investment no sovereign debt, equity securities, trust preferred securities, or derivative exposure to foreign counterparties.

On a linked quarter basis, average short-term borrowings (including repurchase agreements) increased $108 million, or 17%, and the cost of short-term borrowings decreased two basis points.  At September 30, 2016, short-term borrowings (including repurchase agreements) decreased $52 million, or 7%, compared to June 30, 2016.  On a linked quarter basis, average long-term debt increased $89 million, or 15%, and the cost of long-term debt decreased 18 basis points to 2.06%.  The cost of average interest-bearing liabilities was 0.53% in the third quarter of 2016, up three basis points on a linked quarter basis.

Asset Quality

Net charge-offs totaled $10.2 million in the third quarter of 2016, down $1.7 million, or 14%, compared to the second quarter of 2016.  Annualized net charge-offs equated to 0.27% of average loans in the third quarter of 2016, a six-basis point improvement on a linked quarter basis. Energy loans accounted for approximately 68% of the net charge-offs incurred during the third quarter of 2016. The Company's provision for loan losses increased $0.6 million, or 5%, on a linked quarter basis to $12.5 million. The provision for loan losses covered net charge-offs in the third quarter of 2016 by 122% compared to 100% in the second quarter of 2016. The Company's reserve for unfunded commitments, which is included in credit and loan related expense in non-interest expense, declined $1.8 million during the third quarter of 2016 to $12.0 million at September 30, 2016 ($1.0 million of which were energy-related).

Aggregate loans past due 30 to 89 days decreased $9 million, or 15%, and equated to 0.34% of total loans at September 30, 2016, compared to 0.40% at June 30, 2016.

Primarily as a result of an acceleration in the resolution of troubled energy loans, non-performing assets ("NPAs") increased $126 million, or 62%, to $328 million at September 30, 2016. Acquired NPAs declined $7 million, or 8%, while legacy NPAs, which include energy and non-energy loans, increased $134 million, or 122%, and equated to 1.33% of total assets. Energy-related NPAs (which are included in legacy loans) increased by $93 million, or 153%, and accounted for 74% of the increase in the Company's total NPAs during the third quarter of 2016.  At September 30, 2016, non-energy-related legacy NPAs increased $41 million, or 83%, and equated to 0.51% of total assets, up from 0.29% at June 30, 2016.

Capital Position

At September 30, 2016, the Company reported a non-GAAP tangible common equity ratio of 8.87%, down 13 basis points compared to June 30, 2016, and the preliminary Tier 1 leverage ratio was 9.70%, unchanged compared to June 30, 2016. The Company's preliminary calculation of its total risk-based capital ratio at September 30, 2016, was 12.47%, up one basis point compared to June 30, 2016.

At September 30, 2016, book value per common share was $61.71, up $0.66 per share, or 1%, compared to June 30, 2016. Tangible book value per common share was $43.26, up $0.73 per share, or 2%, compared to June 30, 2016.  Based on the closing stock price of the Company's common stock of $69.95 per share on October 26, 2016, this price equated to 1.13 times September 30, 2016 book value per common share and 1.62 times September 30, 2016 tangible book value per common share.

Cash Dividends On Common Stock.  On September 12, 2016, the Company declared a quarterly cash dividend of $0.36 per common share, a 6% increase on a linked quarter basis. This common dividend level equated to an annualized dividend rate of $1.44 per common share.  Based on the Company's closing common stock price on October 26, 2016, the indicated dividend yield was 2.06% per common share. The payment of dividends is at the discretion of the Board of Directors.

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

Series C Preferred Stock.  On May 9, 2016, the Company sold 2.3 million depositary shares, each representing a 1/400th interest in a share of non-cumulative perpetual preferred stock. The Series C preferred stock has an initial coupon equal to 6.60% for a period of 10 years, and thereafter floats at a rate of LIBOR plus 492 basis points. The Company raised approximately $57.5 million in gross proceeds from the transaction.  On September 12, 2016, the Company declared a quarterly cash dividend of $0.41 per depositary share that is payable on November 1, 2016.

Common Stock Repurchase Program.  On May 4, 2016, the Board of Directors of the Company authorized the repurchase of up to 950,000 shares of the Company's common stock. The Company did not repurchase common shares under the authorized program during the third quarter of 2016.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with 304 combined offices, including 199 bank branch offices and three loan production offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, and Georgia, 24 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 69 locations in 10 states.  The Company has eight locations with representatives of IBERIA Wealth Advisors in four states, and one IBERIA Capital Partners L.L.C. office in New Orleans.

The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC". The Company's Series B Preferred Stock and Series C Preferred Stock trade on the NASDAQ Global Select Market under the symbols "IBKCP" and "IBKCO", respectively.  The Company's common stock market capitalization was approximately $2.9 billion, based on the NASDAQ Global Select Market closing stock price on October 26, 2016.

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

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

Conference Call

In association with this earnings release, the Company will host a live conference call to discuss the financial results for the quarter just completed. The telephone conference call will be held on Thursday, October 27, 2016, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 9650180.  A replay of the call will be available until midnight Central Time on November 3, 2016 by dialing 1-877-344-7529. The confirmation code for the replay is 10093373.  The Company has prepared a PowerPoint presentation that supplements information contained in this press release.  The PowerPoint presentation may be accessed on the Company's web site, www.iberiabank.com, under "Investor Relations" and then "Financial Information" and "Presentations."

Non-GAAP Financial Measures

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

Caution About Forward-Looking Statements

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

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

Table 1 - IBERIABANK CORPORATION

FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per share data)

















As of and For the Three Months Ended

INCOME DATA:

9/30/2016



6/30/2016



% Change


9/30/2015



% Change


Net interest income

$  163,417



$  162,753



0.4


$ 155,117



5.4


Net interest income (TE) (1)

165,795



165,085



0.4


157,302



5.4


Total revenues

223,238



227,670



(1.9)


212,595



5.0


Provision for loan losses

12,484



11,866



5.2


5,062



146.6


Non-interest expense

138,139



139,504



(1.0)


144,968



(4.7)


Net income available to common shareholders

44,478



49,956



(11.0)


42,475



4.7















PER COMMON SHARE DATA:













Earnings available to common shareholders - basic

$        1.08



$        1.21



(10.7)


$       1.04



3.8


Earnings available to common shareholders - diluted

1.08



1.21



(10.7)


1.03



4.9


Core earnings (Non-GAAP) (2)

1.08



1.18



(8.5)


1.07



0.9


Book value

61.71



61.05



1.1


58.49



5.5


Tangible book value (Non-GAAP)(2) (3)

43.26



42.53



1.7


39.95



8.3


Closing stock price

67.12



59.73



12.4


58.21



15.3


Cash dividends

0.36



0.34



5.9


0.34



5.9















KEY RATIOS AND OTHER DATA (6):














Net interest margin (TE) (1)

3.53

%


3.61

%




3.50

%




Efficiency ratio

61.9



61.3





68.2





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

60.1



60.0





64.8





Return on average assets

0.94



1.02





0.86





Return on average common equity

7.00



8.05





7.09





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

10.30



11.64





11.18





Effective tax rate

33.8



33.4





32.1





Full-time equivalent employees

3,129



3,122





3,214


















CAPITAL RATIOS:














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

8.87

%


9.00

%




8.75

%




Tangible common equity to risk-weighted assets (3)

10.17



10.14





10.02





Tier 1 leverage ratio (4)

9.70



9.70





9.33





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

10.13



10.07





10.08





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

10.07



9.99





9.92





Tier 1 capital (transitional) (4)

10.89



10.84





10.73





Total risk-based capital ratio(4)

12.47



12.46





12.15





Common stock dividend payout ratio

33.3



28.0





32.9





Classified assets to Tier 1 capital

26.1



25.1





17.5


















ASSET QUALITY RATIOS (LEGACY):














Non-performing assets to total assets (5)

1.33

%


0.63

%




0.43

%




Allowance for loan losses to loans

0.88



0.89





0.80





Net charge-offs to average loans (annualized)

0.33



0.38





0.09





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

1.96



0.92





0.65


















(1)

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

(2)

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

(3)

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

(4)

Capital ratios as of September 30, 2016 are estimated.

(5)

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

(6)

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

 

Table 2 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except per share data)


















For the Three Months Ended






Linked Qtr Change








Year/Year Change


9/30/2016


6/30/2016


$

%


3/31/2016


12/31/2015


9/30/2015


$

%

Interest income

$ 180,504


$ 178,694


1,810

1.0


$ 176,936


$ 176,651


$ 171,077


9,427

5.5

Interest expense

17,087


15,941


1,146

7.2


15,533


15,491


15,960


1,127

7.1

  Net interest income

163,417


162,753


664

0.4


161,403


161,160


155,117


8,300

5.4

Provision for loan losses

12,484


11,866


618

5.2


14,905


11,711


5,062


7,422

146.6

  Net interest income after provision for
  loan losses

150,933


150,887


46


146,498


149,449


150,055


878

0.6

Mortgage income

21,807


25,991


(4,184)

(16.1)


19,940


16,765


20,628


1,179

5.7

Service charges on deposit accounts

11,066


10,940


126

1.2


10,951


11,431


11,342


(276)

(2.4)

Title revenue

6,001


6,135


(134)

(2.2)


4,745


5,435


6,627


(626)

(9.4)

Broker commissions

3,797


3,712


85

2.3


3,823


4,130


3,839


(42)

(1.1)

ATM/debit card fee income

3,483


3,650


(167)

(4.6)


3,503


3,569


3,562


(79)

(2.2)

Income from bank owned life insurance

1,305


1,411


(106)

(7.5)


1,202


1,096


1,093


212

19.4

Gain on sale of available-for-sale securities

12


1,789


(1,777)

(99.3)


196


6


280


(268)

(95.7)

Other non-interest income

12,350


11,289


1,061

9.4


11,485


10,071


10,107


2,243

22.2

  Total non-interest income

59,821


64,917


(5,096)

(7.9)


55,845


52,503


57,478


2,343

4.1

Salaries and employee benefits

85,028


85,105


(77)

(0.1)


80,742


83,455


82,416


2,612

3.2

Occupancy and equipment

16,526


16,813


(287)

(1.7)


16,907


16,928


17,987


(1,461)

(8.1)

Amortization of acquisition intangibles

2,106


2,109


(3)

(0.1)


2,113


1,795


2,338


(232)

(9.9)

Other non-interest expense

34,479


35,477


(998)

(2.8)


37,690


36,797


42,227


(7,748)

(18.3)

  Total non-interest expense

138,139


139,504


(1,365)

(1.0)


137,452


138,975


144,968


(6,829)

(4.7)

Income before income taxes

72,615


76,300


(3,685)

(4.8)


64,891


62,977


62,565


10,050

16.1

Income tax expense

24,547


25,490


(943)

(3.7)


22,122


18,570


20,090


4,457

22.2

  Net income

48,068


50,810


(2,742)

(5.4)


42,769


44,407


42,475


5,593

13.2

Preferred stock dividends

(3,590)


(854)


(2,736)

(320.4)


(2,576)




(3,590)

N/M

Net income available to common shareholders

$   44,478


$   49,956


(5,478)

(11.0)


$   40,193


$   44,407


$   42,475


2,003

4.7

















Income available to common shareholders - basic

$   44,478


$   49,956


(5,478)

(11.0)


$   40,193


$   44,407


$   42,475


2,003

4.7

Earnings allocated to unvested restricted stock

(462)


(540)


78

(14.4)


(460)


(505)


(492)


30

(6.1)

Income allocated to common shareholders

$   44,016


$   49,416


(5,400)

(10.9)


$   39,733


$   43,902


$   41,983


2,033

4.8

















Earnings per common share - basic

$       1.08


$       1.21


(0.13)

(10.7)


$       0.98


$       1.08


$       1.04


0.04

3.8

















Earnings per common share - diluted

1.08


1.21


(0.13)

(10.7)


0.97


1.08


1.03


0.05

4.9

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


(0.03)


0.03

(100.0)


0.04


0.03


0.04


(0.04)

(100.0)

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

$       1.08


$       1.18


(0.10)

(8.5)


$       1.01


$       1.11


$       1.07


0.01

0.9

















NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
















Weighted average common shares outstanding - basic

41,052


41,232


(180)

(0.4)


41,186


40,996


40,995


57

0.1

Weighted average common shares outstanding - diluted

40,811


40,908


(97)

(0.2)


40,765


40,597


40,614


197

0.5

Book value shares (period end) 

41,082


41,039


43

0.1


41,232


41,140


41,129


(47)

(0.1)

















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

















N/M = not meaningful















 

Table 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except per share data)









For the Nine Months Ended


9/30/2016


9/30/2015


$ Change

% Change

Interest income

$ 536,134


$ 470,207


65,927

14.0

Interest expense

48,561


43,609


4,952

11.4

  Net interest income

487,573


426,598


60,975

14.3

Provision for loan losses

39,255


19,197


20,058

104.5

  Net interest income after provision for loan losses

448,318


407,401


40,917

10.0

Mortgage income

67,738


63,897


3,841

6.0

Service charges on deposit accounts

32,957


30,766


2,191

7.1

Title revenue

16,881


17,402


(521)

(3.0)

Broker commissions

11,332


13,462


(2,130)

(15.8)

ATM/debit card fee income

10,636


10,420


216

2.1

Income from bank owned life insurance

3,918


3,260


658

20.2

Gain on sale of available-for-sale securities

1,997


1,569


428

27.3

Other non-interest income

35,124


27,114


8,010

29.5

Total non-interest income

180,583


167,890


12,693

7.6

Salaries and employee benefits

250,875


239,131


11,744

4.9

Occupancy and equipment

50,246


51,613


(1,367)

(2.6)

Amortization of acquisition intangibles

6,328


6,016


312

5.2

Other non-interest expense

107,646


134,570


(26,924)

(20.0)

Total non-interest expense

415,095


431,330


(16,235)

(3.8)

Income before income taxes

213,806


143,961


69,845

48.5

Income tax expense

72,159


45,524


26,635

58.5

Net income

141,647


98,437


43,210

43.9

Preferred stock dividends

(7,020)



(7,020)

N/M

Net income available to common shareholders

$ 134,627


$   98,437


36,190

36.8








Income available to common shareholders - basic

$ 134,627


$   98,437


36,190

36.8

Earnings allocated to unvested restricted stock

(1,464)


(1,171)


(293)

25.0

Income allocated to common shareholders

$ 133,163


$   97,266


35,897

36.9








Earnings per common share - basic

$       3.27


$       2.60


0.67

25.8








Earnings per common share - diluted

3.26


2.59


0.67

25.9

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

0.01


0.48


(0.47)

(97.9)

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

$       3.27


$       3.07


0.20

6.5








NUMBER OF COMMON SHARES OUTSTANDING (in thousands)







Weighted average common shares outstanding - basic

41,156


37,917


3,239

8.5

Weighted average common shares outstanding - diluted

40,818


37,532


3,286

8.8

Book value shares (period end) 

41,082


41,129


(47)

(0.1)








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








N/M = not meaningful







 

TABLE 4 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)



















PERIOD-END BALANCES





Linked Qtr Change








Year/Year Change

ASSETS

9/30/2016


6/30/2016


$


%


3/31/2016


12/31/2015


9/30/2015


$


%

Cash and due from banks

$      327,799


$      288,141


39,658


13.8


$      300,207


$      241,650


$      370,657


(42,858)


(11.6)

Interest-bearing deposits in other banks

773,454


417,157


356,297


85.4


696,448


268,617


311,615


461,839


148.2

Total cash and cash equivalents

1,101,253


705,298


395,955


56.1


996,655


510,267


682,272


418,981


61.4

Investment securities available for sale

2,885,413


2,776,015


109,398


3.9


2,755,425


2,800,286


2,827,805


57,608


2.0

Investment securities held to maturity

90,653


92,904


(2,251)


(2.4)


96,117


98,928


98,330


(7,677)


(7.8)

Total investment securities

2,976,066


2,868,919


107,147


3.7


2,851,542


2,899,214


2,926,135


49,931


1.7

Mortgage loans held for sale

210,866


229,653


(18,787)


(8.2)


192,545


166,247


202,168


8,698


4.3

Loans, net of unearned income

14,924,499


14,722,561


201,938


1.4


14,451,244


14,327,428


14,117,019


807,480


5.7

Allowance for loan losses

(148,193)


(147,452)


(741)


0.5


(146,557)


(138,378)


(130,254)


(17,939)


13.8

Loans, net

14,776,306


14,575,109


201,197


1.4


14,304,687


14,189,050


13,986,765


789,541


5.6

Loss share receivable

24,406


29,224


(4,818)


(16.5)


33,564


39,878


43,443


(19,037)


(43.8)

Premises and equipment

308,932


311,173


(2,241)


(0.7)


314,615


323,902


333,273


(24,341)


(7.3)

Goodwill and other intangibles

761,206


763,387


(2,181)


(0.3)


768,235


765,655


766,589


(5,383)


(0.7)

Other assets

629,531


678,092


(48,561)


(7.2)


630,720


609,855


593,580


35,951


6.1

Total assets

$ 20,788,566


$ 20,160,855


627,711


3.1


$ 20,092,563


$ 19,504,068


$ 19,534,225


1,254,341


6.4



















LIABILITIES AND SHAREHOLDERS' EQUITY















Non-interest-bearing deposits

$   4,787,485


$   4,539,254


248,231


5.5


$   4,484,024


$   4,352,229


$   4,392,808


394,677


9.0

NOW accounts

2,904,835


2,985,284


(80,449)


(2.7)


2,960,562


2,974,176


2,635,021


269,814


10.2

Savings and money market accounts

6,646,694


6,188,245


458,449


7.4


6,736,146


6,727,720


6,999,863


(353,169)


(5.0)

Certificates of deposit

2,183,503


2,149,244


34,259


1.6


2,079,834


2,124,623


2,275,373


(91,870)


(4.0)

Total deposits

16,522,517


15,862,027


660,490


4.2


16,260,566


16,178,748


16,303,065


219,452


1.3

Short-term borrowings

360,000


477,620


(117,620)


(24.6)


195,000


110,000


10,000


350,000


3,500.0

Securities sold under agreements to repurchase

353,272


288,017


65,255


22.7


303,238


216,617


212,460


140,812


66.3

Trust preferred securities

120,110


120,110




120,110


120,110


120,110



Other long-term debt

552,328


567,326


(14,998)


(2.6)


478,814


220,337


221,863


330,465


149.0

Other liabilities

213,229


208,158


5,071


2.4


186,926


159,421


183,526


29,703


16.2

Total liabilities

18,121,456


17,523,258


598,198


3.4


17,544,654


17,005,233


17,051,024


1,070,432


6.3

Total shareholders' equity

2,667,110


2,637,597


29,513


1.1


2,547,909


2,498,835


2,483,201


183,909


7.4

Total liabilities and shareholders' equity

$ 20,788,566


$ 20,160,855


627,711


3.1


$ 20,092,563


$ 19,504,068


$ 19,534,225


1,254,341


6.4

 

TABLE 4 Continued - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)



















AVERAGE BALANCES





Linked Qtr Change








Year/Year Change

ASSETS

9/30/2016


6/30/2016


$


%


3/31/2016


12/31/2015


9/30/2015


$


%

Cash and due from banks

$      299,445


$      304,304


(4,859)


(1.6)


$      292,476


$      352,854


$      327,370


(27,925)


(8.5)

Interest-bearing deposits in other banks

536,741


386,139


150,602


39.0


365,709


319,302


682,764


(146,023)


(21.4)

Total cash and cash equivalents

836,186


690,443


145,743


21.1


658,185


672,156


1,010,134


(173,948)


(17.2)

Investment securities available for sale

2,825,030


2,823,292


1,738


0.1


2,797,320


2,829,825


2,660,423


164,607


6.2

Investment securities held to maturity

92,006


94,609


(2,603)


(2.8)


97,391


100,113


99,864


(7,858)


(7.9)

Total investment securities

2,917,036


2,917,901


(865)


0.0


2,894,711


2,929,938


2,760,287


156,749


5.7

Mortgage loans held for sale

219,369


211,468


7,901


3.7


160,873


169,616


200,895


18,474


9.2

Loans, net of unearned income

14,802,199


14,570,945


231,254


1.6


14,354,410


14,185,150


14,009,601


792,598


5.7

Allowance for loan losses

(149,101)


(149,037)


(64)


0.0


(141,393)


(135,209)


(130,367)


(18,734)


14.4

Loans, net

14,653,098


14,421,908


231,190


1.6


14,213,017


14,049,941


13,879,234


773,864


5.6

Loss share receivable

27,694


32,189


(4,495)


(14.0)


37,360


41,205


47,190


(19,496)


(41.3)

Premises and equipment

310,592


313,862


(3,270)


(1.0)


322,086


329,604


339,860


(29,268)


(8.6)

Goodwill and other intangibles

762,196


764,818


(2,622)


(0.3)


765,898


766,664


766,712


(4,516)


(0.6)

Other assets

666,657


651,328


15,329


2.4


609,181


592,042


599,758


66,899


11.2

Total assets

$ 20,392,828


$ 20,003,917


388,911


1.9


$ 19,661,311


$ 19,551,166


$ 19,604,070


788,758


4.0



















LIABILITIES AND SHAREHOLDERS' EQUITY















Non-interest-bearing deposits

$   4,605,447


$   4,463,928


141,519


3.2


$   4,388,259


$   4,459,980


$   4,265,912


339,535


8.0

NOW accounts

2,936,130


2,911,510


24,620


0.8


2,859,940


2,720,128


2,655,069


281,061


10.6

Savings and money market accounts

6,359,006


6,486,242


(127,236)


(2.0)


6,598,838


6,899,090


7,104,789


(745,783)


(10.5)

Certificates of deposit

2,176,159


2,117,711


58,448


2.8


2,098,032


2,213,557


2,343,794


(167,635)


(7.2)

Total deposits

16,076,742


15,979,391


97,351


0.6


15,945,069


16,292,755


16,369,564


(292,822)


(1.8)

Short-term borrowings

430,332


358,837


71,495


19.9


277,374


16,109


41,033


389,299


948.7

Securities sold under agreements to repurchase

302,119


265,465


36,654


13.8


217,296


224,255


221,217


80,902


36.6

Trust preferred securities

120,110


120,110




120,110


120,110


120,110



Other long-term debt

562,598


473,195


89,403


18.9


403,393


220,913


222,906


339,692


152.4

Other liabilities

239,911


203,050


36,861


18.2


167,810


186,382


206,030


33,881


16.4

Total liabilities

17,731,812


17,400,048


331,764


1.9


17,131,052


17,060,524


17,180,860


550,952


3.2

Total shareholders' equity

2,661,016


2,603,869


57,147


2.2


2,530,259


2,490,642


2,423,210


237,806


9.8

Total liabilities and shareholders' equity

$ 20,392,828


$ 20,003,917


388,911


1.9


$ 19,661,311


$ 19,551,166


$ 19,604,070


788,758


4.0

 

Table 5 - IBERIABANK CORPORATION

TOTAL LOANS AND ASSET QUALITY DATA

(Dollars in thousands)
























Linked Qtr Change








Year/Year Change

LOANS

9/30/2016


6/30/2016


$


%


3/31/2016


12/31/2015


9/30/2015


$


%

Commercial loans:


















  Real estate

$   6,681,215


$   6,472,001


209,214


3.2


$   6,230,628


$   6,073,511


$   5,979,751


701,464


11.7

  Commercial and Industrial

3,462,997


3,435,809


27,188


0.8


3,374,382


3,444,578


3,302,971


160,026


4.8

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

599,641


662,034


(62,393)


(9.4)


731,662


680,766


719,456


(119,815)


(16.7)

      Total commercial loans

10,743,853


10,569,844


174,009


1.6


10,336,672


10,198,855


10,002,178


741,675


7.4



















Residential mortgage loans

1,270,530


1,249,062


21,468


1.7


1,208,391


1,195,319


1,189,941


80,589


6.8



















Consumer loans:


















  Home equity

2,151,130


2,129,812


21,318


1.0


2,091,514


2,066,167


2,015,687


135,443


6.7

  Indirect automobile

153,913


182,223


(28,310)


(15.5)


213,179


246,298


281,649


(127,736)


(45.4)

  Automobile

152,972


156,597


(3,625)


(2.3)


164,868


169,571


172,947


(19,975)


(11.5)

  Credit card

80,959


78,552


2,407


3.1


76,756


77,843


77,284


3,675


4.8

  Other

371,142


356,471


14,671


4.1


359,864


373,375


377,333


(6,191)


(1.6)

      Total consumer loans

2,910,116


2,903,655


6,461


0.2


2,906,181


2,933,254


2,924,900


(14,784)


(0.5)

      Total loans

$ 14,924,499


$ 14,722,561


201,938


1.4


$ 14,451,244


$ 14,327,428


$ 14,117,019


807,480


5.7



















Allowance for loan losses

$    (148,193)


$    (147,452)


(741)


0.5


$    (146,557)


$    (138,378)


$    (130,254)


(17,939)


13.8

  Loans, net

14,776,306


14,575,109


201,197


1.4


14,304,687


14,189,050


13,986,765


789,541


5.6



















Reserve for unfunded commitments

(11,990)


(13,826)


1,836


(13.3)


(14,033)


(14,145)


(14,525)


2,535


(17.5)

Allowance for credit losses

(160,183)


(161,278)


1,095


(0.7)


(160,590)


(152,523)


(144,779)


(15,404)


10.6



















ASSET QUALITY DATA (2)

















Non-accrual loans (3)

$      300,978


$      173,312


127,666


73.7


$      182,757


$      154,425


$      165,022


135,956


82.4

Other real estate owned and foreclosed assets

22,085


27,220


(5,135)


(18.9)


31,411


34,131


40,450


(18,365)


(45.4)

Accruing loans more than 90 days past due

5,233


1,580


3,653


231.2


1,068


1,970


2,994


2,239


74.8

Total non-performing assets

$      328,296


$      202,112


126,184


62.4


$      215,236


$      190,526


$      208,466


119,830


57.5





































Loans 30-89 days past due

$        50,181


$        58,852


(8,671)


(14.7)


$        59,074


$        35,579


$        25,306


24,875


98.3



















Non-performing assets to total assets

1.58 %


1.00 %






1.07 %


0.98 %


1.07 %





Non-performing assets to total loans and OREO

2.20


1.37






1.49


1.33


1.47





Allowance for loan losses to non-performing loans (4)

48.4


84.3






79.7


88.5


77.5





Allowance for loan losses to non-performing assets

45.1


73.0






68.1


72.6


62.5





Allowance for loan losses to total loans

0.99


1.00






1.01


0.97


0.92























Quarter-to-date charge-offs

$       11,500


$       12,994


(1,494)


(11.5)


$         5,560


$         4,277


$         5,245


6,255


119.3

Quarter-to-date recoveries

(1,277)


(1,071)


(206)


19.2


(1,551)


(1,358)


(2,790)


1,513


(54.2)

Quarter-to-date net charge-offs

$        10,223


$        11,923


(1,700)


(14.3)


$          4,009


$          2,919


$          2,455


7,768


316.4



















Net charge-offs to average loans (annualized)

0.27 %


0.33 %






0.11 %


0.08 %


0.07 %























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

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

(3) For purposes of this table, non-accrual loans may include acquired loans accounted for under ASC 310-30 that are currently accruing income.

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

 

Table 6 - IBERIABANK CORPORATION

LEGACY LOANS AND LEGACY ASSET QUALITY DATA

(Dollars in thousands)
























Linked Qtr Change








Year/Year Change

LEGACY LOANS

9/30/2016


6/30/2016


$


%


3/31/2016


12/31/2015


9/30/2015


$


%

Commercial loans:


















  Real estate

$   5,419,483


$   5,097,689


321,794


6.3


$   4,771,690


$   4,504,062


$   4,321,723


1,097,760


25.4

  Commercial and Industrial

3,101,472


3,027,590


73,882


2.4


2,926,686


2,952,102


2,779,503


321,969


11.6

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

598,279


659,510


(61,231)


(9.3)


728,778


677,177


713,935


(115,656)


(16.2)

      Total commercial loans

9,119,234


8,784,789


334,445


3.8


8,427,154


8,133,341


7,815,161


1,304,073


16.7



















Residential mortgage loans

840,082


794,701


45,381


5.7


730,621


694,023


660,543


179,539


27.2



















Consumer loans:


















  Home equity

1,755,295


1,695,113


60,182


3.6


1,625,812


1,575,643


1,488,796


266,499


17.9

  Indirect automobile

153,904


182,199


(28,295)


(15.5)


213,141


246,214


281,522


(127,618)


(45.3)

  Automobile

143,355


146,394


(3,039)


(2.1)


153,732


157,579


159,928


(16,573)


(10.4)

  Credit card

80,452


78,044


2,408


3.1


76,247


77,261


76,716


3,736


4.9

  Other

321,048


303,609


17,439


5.7


301,990


306,459


296,592


24,456


8.2

      Total consumer loans

2,454,054


2,405,359


48,695


2.0


2,370,922


2,363,156


2,303,554


150,500


6.5

      Total loans

$ 12,413,370


$ 11,984,849


428,521


3.6


$ 11,528,697


$ 11,190,520


$ 10,779,258


1,634,112


15.2



















Allowance for loan losses

$    (108,889)


$    (106,861)


(2,028)


1.9


$    (105,574)


$      (93,808)


$      (86,400)


(22,489)


26.0

  Loans, net

12,304,481


11,877,988


426,493


3.6


11,423,123


11,096,712


10,692,858


1,611,623


15.1



















Reserve for unfunded commitments

(11,990)


(13,826)


1,836


(13.3)


(14,033)


(14,145)


(14,525)


2,535


(17.5)

Allowance for credit losses

(120,879)


(120,687)


(192)


0.2


(119,607)


(107,953)


(100,925)


(19,954)


19.8



















ASSET QUALITY DATA (2)

















Non-accrual loans

$      227,122


$        95,096


132,026


138.8


$        93,429


$        50,928


$        51,274


175,848


343.0

Other real estate owned and foreclosed assets

11,538


14,478


(2,940)


(20.3)


17,662


16,491


17,062


(5,524)


(32.4)

Accruing loans more than 90 days past due

4,936


353


4,583


1,298.3


125


624


1,521


3,415


224.5

Total non-performing assets

$      243,596


$      109,927


133,669


121.6


$      111,216


$        68,043


$        69,857


173,739


248.7



















Loans 30-89 days past due

$        41,157


$        45,906


(4,749)


(10.3)


$        42,454


$        20,109


$        15,718


25,439


161.8



















Non-performing assets to total assets

1.33 %


0.63 %






0.65 %


0.42 %


0.43 %





Non-performing assets to total loans and OREO

1.96


0.92






0.96


0.61


0.65





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

46.9


112.0






112.9


182.0


163.7





Allowance for loan losses to non-performing assets

44.7


97.2






94.9


137.9


123.7





Allowance for loan losses to total loans

0.88


0.89






0.92


0.84


0.80























Quarter-to-date charge-offs

$        11,201


$        11,969


(768)


(6.4)


$          5,389


$          3,705


$          4,958


6,243


125.9

Quarter-to-date recoveries

(1,102)


(775)


(327)


42.2


(1,247)


(1,145)


(2,524)


1,422


(56.3)

Quarter-to-date net charge-offs

$        10,099


$        11,194


(1,095)


(9.8)


$          4,142


$          2,560


$          2,434


7,665


314.9

Net charge-offs to average loans (annualized)

0.33 %


0.38 %






0.15 %


0.09 %


0.09 %























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

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

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

 

Table 7 - IBERIABANK CORPORATION

ACQUIRED LOANS AND ACQUIRED ASSET QUALITY DATA

(Dollars in thousands)
























Linked Qtr Change








Year/Year Change

ACQUIRED LOANS(1)

9/30/2016


6/30/2016


$


%


3/31/2016


12/31/2015


9/30/2015


$


%

Commercial loans:


















  Real estate

$ 1,261,732


$ 1,374,312


(112,580)


(8.2)


$ 1,458,938


$ 1,569,449


$ 1,658,028


(396,296)


(23.9)

  Commercial and Industrial

361,525


408,219


(46,694)


(11.4)


447,696


492,476


523,468


(161,943)


(30.9)

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

1,362


2,524


(1,162)


(46.0)


2,884


3,589


5,521


(4,159)


(75.3)

      Total commercial loans

1,624,619


1,785,055


(160,436)


(9.0)


1,909,518


2,065,514


2,187,017


(562,398)


(25.7)



















Residential mortgage loans

430,448


454,361


(23,913)


(5.3)


477,770


501,296


529,398


(98,950)


(18.7)



















Consumer loans:


















  Home equity

395,835


434,699


(38,864)


(8.9)


465,702


490,524


526,891


(131,056)


(24.9)

  Indirect automobile

9


24


(15)


(62.5)


38


84


127


(118)


(92.9)

  Automobile

9,617


10,203


(586)


(5.7)


11,136


11,992


13,019


(3,402)


(26.1)

  Credit card

507


508


(1)


(0.2)


509


582


568


(61)


(10.7)

  Other

50,094


52,862


(2,768)


(5.2)


57,874


66,916


80,741


(30,647)


(38.0)

      Total consumer loans

456,062


498,296


(42,234)


(8.5)


535,259


570,098


621,346


(165,284)


(26.6)

      Total loans

$ 2,511,129


$ 2,737,712


(226,583)


(8.3)


$ 2,922,547


$ 3,136,908


$ 3,337,761


(826,632)


(24.8)



















Allowance for loan losses

$    (39,304)


$    (40,591)


1,287


(3.2)


$    (40,983)


$    (44,570)


$    (43,854)


4,550


(10.4)

  Loans, net

2,471,825


2,697,121


(225,296)


(8.4)


2,881,564


3,092,338


3,293,907


(822,082)


(25.0)



















ACQUIRED ASSET QUALITY DATA (1) (3)
















Non-accrual loans (4)

$      73,856


$      78,216


(4,360)


(5.6)


$      89,328


$    103,497


$    113,748


(39,892)


(35.1)

Other real estate owned and foreclosed assets

10,547


12,742


(2,195)


(17.2)


13,749


17,640


23,388


(12,841)


(54.9)

Accruing loans more than 90 days past due

297


1,227


(930)


(75.8)


943


1,346


1,473


(1,176)


(79.8)

Total non-performing assets

$      84,700


$      92,185


(7,485)


(8.1)


$    104,020


$    122,483


$    138,609


(53,909)


(38.9)



















Loans 30-89 days past due

$        9,024


$      12,946


(3,922)


(30.3)


$      16,620


$      15,470


$        9,588


(564)


(5.9)



















Non-performing assets to total assets

3.36 %


3.35 %






3.50 %


3.84 %


4.07 %





Non-performing assets to total loans and OREO

3.36


3.35






3.54


3.88


4.12





Allowance for loan losses to non-performing loans

53.0


51.1






45.4


42.5


38.1





Allowance for loan losses to non-performing assets

46.4


44.0






39.4


36.4


31.6





Allowance for loan losses to total loans

1.57


1.48






1.40


1.42


1.31























Quarter-to-date charge-offs

$           299


$        1,025


(726)


(70.8)


$           171


$           572


$           287


12


4.2

Quarter-to-date recoveries

(175)


(296)


121


(40.9)


(304)


(213)


(266)


91


(34.2)

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

$           124


$           729


(605)


(83.0)


$         (133)


$           359


$             21


103


490.5



















Net charge-offs/(recoveries) to average loans

0.02 %


0.10 %






(0.02)%


0.04 %


0.00%























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

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

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

(4) For purposes of this table, non-accrual loans may include acquired loans accounted for under ASC 310-30 that are currently accruing income.

 

Table 8 - IBERIABANK CORPORATION

ENERGY-RELATED LOANS AND ASSET QUALITY DATA

(Dollars in thousands)





































ENERGY-RELATED





Linked Qtr Change








Year/Year Change

LOANS (1)

9/30/2016


6/30/2016


$


%


3/31/2016


12/31/2015


9/30/2015


$


%

E&P

$      301,223


$      328,066


(26,843)


(8.2)


$      369,725


$      314,381


$      335,837


(34,614)


(10.3)

Midstream

110,821


123,687


(12,866)


(10.4)


130,556


116,623


122,863


(12,042)


(9.8)

Service

187,597


210,281


(22,684)


(10.8)


231,381


249,762


260,756


(73,159)


(28.1)

Total energy-related loans

$      599,641


$      662,034


(62,393)


(9.4)


$      731,662


$      680,766


$      719,456


(119,815)


(16.7)



















E&P

$      545,383


$      572,267


(26,884)


(4.7)


$      677,258


$      717,109


$      753,505


(208,122)


(27.6)

Midstream

198,618


201,555


(2,937)


(1.5)


206,504


204,326


200,893


(2,275)


(1.1)

Service

261,450


295,591


(34,141)


(11.6)


329,282


369,751


422,324


(160,874)


(38.1)

Total energy-related commitments

$   1,005,451


$   1,069,413


(63,962)


(6.0)


$   1,213,044


$   1,291,186


$   1,376,722


(371,271)


(27.0)



















Total loans

$ 14,924,499


$ 14,722,561


201,938


1.4


$ 14,451,244


$ 14,327,428


$ 14,117,019


807,480


5.7

Energy outstandings as a % of total loans

4.0 %


4.5 %






5.1 %


4.8 %


5.1 %





Energy commitments as a % of total commitments

5.1 %


5.4 %






6.3 %


6.8 %


7.4 %























Allowance for loan losses

$      (28,215)


$      (33,040)


4,825


(14.6)


$      (38,495)


$      (23,987)


$      (15,335)


(12,880)


84.0

Reserve for unfunded commitments

(953)


(2,223)


1,270


(57.1)


(903)


(2,666)


$        (3,633)


2,680


(73.8)

Allowance for credit losses

(29,168)


(35,263)


6,095


(17.3)


(39,398)


(26,653)


(18,968)


(10,200)


53.8



















 ASSET QUALITY DATA (2)

















Non-accrual loans

$      153,620


$        60,814


92,806


152.6


$        46,223


$          8,449


$          4,870


148,750


3,054.4

Other real estate owned and foreclosed assets









Accruing loans more than 90 days past due









Total non-performing assets

$      153,620


$        60,814


92,806


152.6


$        46,223


$          8,449


$          4,870


148,750


3,054.4



















Loans 30-89 days past due

$               —


$          3,055


(3,055)


100.0


$               —


$               15


$             477


(477)


100.0



















Non-performing assets to total energy-related loans and OREO

25.62 %


9.19 %






6.32 %


1.24 %


0.68 %





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

18.4


54.3






83.3


283.9


314.9





Allowance for loan losses to non-performing assets

18.4


54.3






83.3


283.9


314.9





Allowance for loan losses to total energy-related loans

4.71


4.99






5.26


3.52


2.13























Quarter-to-date charge-offs

$          6,957


$          7,715






$               —


$               —


$               —





Quarter-to-date recoveries













Quarter-to-date net charge-offs

$          6,957


$          7,715






$               —


$               —


$               —





Net charge-offs to average loans (annualized)

4.39 %


4.44 %






0.00%


0.00%


0.00%























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



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

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

 

TABLE 9 - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)












For the Three Months Ended


9/30/2016


6/30/2016


Basis Point Change

ASSETS

Average Balance

Interest Income/Expense

Yield/Rate


Average Balance

Interest Income/Expense

Yield/Rate


Yield/Rate

Earning assets:










  Commercial loans

$ 10,646,874

$           116,653

4.34 %


$ 10,458,822

$           114,588

4.39 %


(5)

  Residential mortgage loans

1,254,665

13,718

4.37


1,221,254

13,781

4.51


(14)

  Consumer loans

2,900,660

37,413

5.13


2,890,869

37,200

5.18


(5)

      Total loans

14,802,199

167,784

4.50


14,570,945

165,569

4.55


(5)

  Loss share receivable

27,694

(3,935)

(55.61)


32,189

(4,163)

(51.16)


(445)

      Total loans and loss share receivable

14,829,893

163,849

4.39


14,603,134

161,406

4.43


(4)

Mortgage loans held for sale

219,369

1,774

3.24


211,468

1,850

3.50


(26)

Investment securities (2)

2,830,892

13,815

2.09


2,856,805

14,663

2.18


(9)

Other earning assets

641,080

1,066

0.66


483,597

775

0.64


2

  Total earning assets

18,521,234

180,504

3.89


18,155,004

178,694

3.97


(8)

Allowance for loan losses

(149,101)




(149,037)





Non-earning assets

2,020,695




1,997,950





      Total assets

$ 20,392,828




$ 20,003,917















LIABILITIES AND SHAREHOLDERS' EQUITY









Interest-bearing liabilities:










  NOW accounts

$   2,936,130

2,313

0.31


$   2,911,510

2,080

0.29


2

  Savings and money market accounts

6,359,006

5,826

0.36


6,486,242

5,527

0.34


2

  Certificates of deposit

2,176,159

4,592

0.84


2,117,711

4,309

0.82


2

  Total interest-bearing deposits (3)

11,471,295

12,731

0.44


11,515,463

11,916

0.42


2

  Short-term borrowings

732,451

753

0.40


624,302

662

0.42


(2)

  Long-term debt

682,708

3,603

2.06


593,305

3,363

2.24


(18)

      Total interest-bearing liabilities

12,886,454

17,087

0.53


12,733,070

15,941

0.50


3

Non-interest-bearing deposits

4,605,447




4,463,928





Non-interest-bearing liabilities

239,911




203,050





  Total liabilities

17,731,812




17,400,048





Total shareholders' equity

2,661,016




2,603,869





  Total liabilities and shareholders' equity

$ 20,392,828




$ 20,003,917















Net interest income/Net interest spread


$           163,417

3.36 %



$           162,753

3.47 %


(11)

Tax-equivalent benefit


2,378

0.05



2,332

0.05


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


$           165,795

3.53 %



$           165,085

3.61 %


(8)











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

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

(3) Total deposit costs for the three months ended September 30, 2016 and June 30, 2016 total 0.32% and 0.30%, respectively.

 

TABLE 9 Continued - IBERIABANK CORPORATION

QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES

(Dollars in thousands)














For the Three Months Ended


3/31/2016


12/31/2015


9/30/2015

ASSETS

Average Balance

Interest Income/Expense

Yield/Rate


Average Balance

Interest Income/Expense

Yield/Rate


Average Balance

Interest Income/Expense

Yield/Rate

Earning assets:












  Commercial loans

$ 10,250,555

$             113,417

4.43 %


$ 10,062,680

$             114,153

4.50 %


$   9,915,593

$             110,282

4.41 %

  Residential mortgage loans

1,202,692

13,429

4.47


1,193,488

12,819

4.30


1,180,725

13,156

4.46

  Consumer loans

2,901,163

37,145

5.15


2,928,982

36,553

4.95


2,913,283

36,477

4.97

    Total loans

14,354,410

163,991

4.58


14,185,150

163,525

4.57


14,009,601

159,915

4.53

  Loss share receivable

37,360

(4,386)

(46.44)


41,205

(4,490)

(42.63)


47,190

(5,600)

(46.43)

    Total loans and loss share receivable

14,391,770

159,605

4.45


14,226,355

159,035

4.44


14,056,791

154,315

4.36

Mortgage loans held for sale

160,873

1,401

3.48


169,616

1,422

3.35


200,895

1,847

3.68

Investment securities (2)

2,866,974

15,212

2.25


2,901,388

15,149

2.21


2,697,617

13,730

2.16

Other earning assets

453,737

718

0.64


390,571

1,045

1.06


756,277

1,185

0.62

  Total earning assets

17,873,354

176,936

3.99


17,687,930

176,651

3.99


17,711,580

171,077

3.86

Allowance for loan losses

(141,393)




(135,209)




(130,367)



Non-earning assets

1,929,350




1,998,445




2,022,857



    Total assets

$ 19,661,311




$ 19,551,166




$ 19,604,070















LIABILITIES AND SHAREHOLDERS' EQUITY











Interest-bearing liabilities:












  NOW accounts

$   2,859,940

1,940

0.27


$   2,720,128

1,861

0.27


$   2,655,069

1,725

0.26

  Savings and money market accounts

6,598,838

5,640

0.34


6,899,090

6,172

0.35


7,104,789

6,460

0.36

  Certificates of deposit

2,098,032

4,354

0.83


2,213,557

4,727

0.85


2,343,794

5,039

0.85

  Total interest-bearing deposits (3)

11,556,810

11,934

0.42


11,832,775

12,760

0.43


12,103,652

13,224

0.43

  Short-term borrowings

494,670

485

0.39


240,365

98

0.16


262,250

116

0.17

  Long-term debt

523,503

3,114

2.35


341,022

2,633

3.02


343,016

2,620

2.99

      Total interest-bearing liabilities

12,574,983

15,533

0.49


12,414,162

15,491

0.49


12,708,918

15,960

0.50

Non-interest-bearing deposits

4,388,259




4,459,980




4,265,912



Non-interest-bearing liabilities

167,810




186,382




206,030



  Total liabilities

17,131,052




17,060,524




17,180,860



Total shareholders' equity

2,530,259




2,490,642




2,423,210



  Total liabilities and shareholders' equity

$ 19,661,311




$ 19,551,166




$ 19,604,070















Net interest income/Net interest spread


$             161,403

3.50 %



$             161,160

3.50 %



$             155,117

3.36 %

Tax-equivalent benefit


2,361

0.05



2,384

0.05



2,185

0.05

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


$             163,764

3.64 %



$             163,544

3.64 %



$             157,302

3.50 %













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

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

(3) Total deposit costs for the three months ended March 31, 2016, December 31, 2015 and September 30, 2015 total 0.30%, 0.31% and 0.32%, respectively.

 

TABLE 10 - IBERIABANK CORPORATION

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

(Dollars in thousands)












For the Nine Months Ended


9/30/2016


9/30/2015


Basis Point Change

ASSETS

Average Balance

Interest Income/Expense

Yield/Rate


Average Balance

Interest Income/Expense

Yield/Rate


Yield/Rate

Earning assets:










Commercial loans

$ 10,452,794

$           344,658

4.39 %


$   9,032,618

$           297,199

4.40 %


(1)

Residential mortgage loans

1,226,307

40,928

4.45


1,156,101

41,129

4.74


(29)

Consumer loans

2,897,576

111,758

5.15


2,777,330

105,113

5.06


9

  Total loans

14,576,677

497,344

4.54


12,966,049

443,441

4.57


(3)

Loss share receivable

32,398

(12,484)

(50.63)


56,299

(19,011)

(44.53)


(610)

  Total loans and loss share receivable

14,609,075

484,860

4.42


13,022,348

424,430

4.36


6

Mortgage loans held for sale

197,317

5,025

3.40


179,211

4,742

3.53


(13)

Investment securities (2)

2,851,482

43,691

2.17


2,492,826

38,017

2.15


2

Other earning assets

526,557

2,558

0.65


608,578

3,018

0.66


(1)

  Total earning assets

18,184,431

536,134

3.95


16,302,963

470,207

3.87


8

Allowance for loan losses

(146,520)




(129,325)





Non-earning assets

1,982,804




1,842,042





Total assets

$ 20,020,715




$ 18,015,680















LIABILITIES AND SHAREHOLDERS' EQUITY








Interest-bearing liabilities:










NOW accounts

$   2,902,649

6,334

0.29


$   2,587,020

5,042

0.26


3

Savings and money market accounts

6,480,916

16,992

0.35


6,064,012

14,892

0.33


2

Certificates of deposit

2,130,800

13,255

0.83


2,275,968

14,410

0.85


(2)

Total interest-bearing deposits (3)

11,514,365

36,581

0.42


10,927,000

34,344

0.42


Short-term borrowings

617,562

1,900

0.40


488,574

699

0.19


21

Long-term debt

600,141

10,080

2.21


404,125

8,566

2.80


(59)

  Total interest-bearing liabilities

12,732,068

48,561

0.51


11,819,699

43,609

0.49


2

Non-interest-bearing deposits

4,486,314




3,840,738





Non-interest-bearing liabilities

203,723




171,585





  Total liabilities

17,422,105




15,832,022





Total shareholders' equity

2,598,610




2,183,658





Total liabilities and shareholders' equity

$ 20,020,715




$ 18,015,680















Net interest income/Net interest spread


$           487,573

3.44 %



$           426,598

3.38 %


6

Tax-equivalent benefit


7,071

0.05



6,221

0.05


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


$           494,644

3.59 %



$           432,819

3.52 %


7











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

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

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

 

Table 11 - IBERIABANK CORPORATION

LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS

(Dollars in millions)






















For the Three Months Ended


9/30/2016


6/30/2016


3/31/2016


12/31/2015


9/30/2015

AS REPORTED (US GAAP)

Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield

Legacy loans, net

$   123

$ 12,183

3.97 %


$   118

$ 11,737

4.00 %


$   115

$ 11,319

4.02 %


$   109

$ 10,949

3.92 %


$   105

$ 10,571

3.90 %

Acquired loans (1)

41

2,647

6.10


43

2,866

6.01


45

3,073

5.84


50

3,277

5.97


49

3,486

5.59

Total loans

$   164

$ 14,830

4.40 %


$   161

$ 14,603

4.45 %


$   160

$ 14,392

4.46 %


$   159

$ 14,226

4.44 %


$   154

$ 14,057

4.36 %






















9/30/2016


6/30/2016


3/31/2016


12/31/2015


9/30/2015

ADJUSTMENTS

Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield

Legacy loans, net

$     —

$        —

0.00%


$     —

$        —

0.00%


$     —

$        —

0.00%


$     —

$        —

0.00%


$     —

$        —

0.00%

Acquired loans (1)

(9)

76

1.49


(9)

84

(1.33)


(7)

86

(1.04)


(11)

87

(1.41)


(8)

92

(0.9)

Total loans

$     (9)

$        76

(0.27)%


$     (9)

$        84

(0.26)%


$     (7)

$        86

(0.21)%


$   (11)

$        87

(0.33)%


$     (8)

$        92

(0.24)%






















9/30/2016


6/30/2016


3/31/2016


12/31/2015


9/30/2015

AS ADJUSTED (CASH YIELD, NON-GAAP)

Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield


Income

Average Balance

Yield

Legacy loans, net

$   123

$ 12,183

3.97 %


$   118

$ 11,737

4.00 %


$   115

$ 11,319

4.02 %


$   109

$ 10,949

3.92 %


$   105

$ 10,571

3.90 %

Acquired loans (1)

32

2,723

4.61


34

2,950

4.68


38

3,159

4.80


39

3,364

4.56


41

3,578

4.69

Total loans

$   155

$ 14,906

4.13 %


$   152

$ 14,687

4.19 %


$   153

$ 14,478

4.25 %


$   148

$ 14,313

4.11 %


$   146

$ 14,149

4.12 %





















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

 

Table 12 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)




















For the Three Months Ended


9/30/2016


6/30/2016


3/31/2016


Pre-tax


After-tax(1)


Per share(2)


Pre-tax


After-tax(1)


Per share(2)


Pre-tax


After-tax(1)


Per share(2)

Net income available to common shareholders (GAAP)

$   72,615


$      44,478


$            1.08


$   76,300


$      49,956


$            1.21


$ 64,891


$      40,193


$            0.97



















Non-interest income adjustments:


















Gain on sale of investments and other non-interest income

(12)


(8)



(1,789)


(1,163)


(0.03)


(196)


(127)




















Non-interest expense adjustments:


















Merger-related expense







3


2


Severance expense




140


91



454


295


0.01

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




(1,256)


(816)


(0.02)


1,044


679


0.01

Other non-core non-interest expense




1,177


765


0.02


1,091


709


0.02

Total non-interest expense adjustments




61


40



2,592


1,685


0.04

Income tax benefits









Core earnings (Non-GAAP)

72,603


44,470


1.08


74,572


48,833


1.18


67,287


41,751


1.01

Provision for loan losses

12,484


8,115


0.20


11,866


7,712


0.19


14,905


9,688


0.24

Core pre-provision earnings (Non-GAAP)

$   85,087


$      52,585


$            1.28


$   86,438


$      56,545


$            1.37


$ 82,192


$      51,439


$            1.25




















For the Three Months Ended








12/31/2015


9/30/2015








Pre-tax


After-tax(1)


Per share(2)


Pre-tax


After-tax(1)


Per share(2)







Net income available to common shareholders (GAAP)

$   62,977


$      44,407


$            1.08


$   62,565


$      42,475


$            1.03

























Non-interest income adjustments:


















Gain on sale of investments and other non-interest income

(157)


(102)



(2,221)


(1,444)


(0.04)

























Non-interest expense adjustments:


















Merger-related expense

(166)


(108)



2,212


1,438


0.04







Severance expense

1,842


1,197


0.03


304


198








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

3,396


2,207


0.05


1,713


1,113


0.03







Other non-core non-interest expense

(208)


(135)



242


157








Total non-interest expense adjustments

4,864


3,161


0.08


4,471


2,906


0.07







Income tax benefits


(2,041)


(0.05)










Core earnings (Non-GAAP)

67,684


45,425


1.11


64,815


43,937


1.07







Provision for loan losses

11,711


7,612


0.19


5,062


3,291


0.08







Core pre-provision earnings (Non-GAAP)

$   79,395


$      53,037


$            1.30


$   69,877


$      47,228


$            1.15

























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

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





















For the Nine Months Ended








9/30/2016


9/30/2015








Pre-tax


After-tax(1)


Per share(2)


Pre-tax


After-tax(1)


Per share(2)







Net income available to common shareholders (GAAP)

$ 213,806


$    134,627


$            3.26


$ 143,961


$      98,437


$            2.59

























Non-interest income adjustments:


















Gain on sale of investments and other non-interest income

(1,997)


(1,298)


(0.03)


(3,876)


(2,519)


(0.07)

























Non-interest expense adjustments:


















Merger-related expense

3


2



24,240


15,969


0.42







Severance expense

594


386


0.01


751


489


0.01







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

(212)


(137)


(0.01)


3,863


2,510


0.07







Other non-core non-interest expense

2,268


1,474


0.04


2,742


1,782


0.05







Total non-interest expense adjustments

2,653


1,725


0.04


31,596


20,750


0.55







Income tax benefits












Core earnings (Non-GAAP)

214,462


135,054


3.27


171,681


116,668


3.07







Provision for loan losses

39,255


25,516


0.63


19,197


12,479


0.33







Core pre-provision earnings (Non-GAAP)

$ 253,717


$    160,570


$            3.90


$ 190,878


$    129,147


$            3.40

























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

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

 

Table 13 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)












For the Three Months Ended


9/30/2016


6/30/2016


3/31/2016


12/31/2015


9/30/2015

Net interest income (GAAP)

$      163,417


$      162,753


$      161,403


$      161,160


$      155,117

Add: Effect of tax benefit on interest income

2,378


2,332


2,361


2,384


2,185

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

165,795


165,085


163,764


163,544


157,302











Non-interest income (GAAP)

59,821


64,917


55,845


52,503


57,478

Add: Effect of tax benefit on non-interest income

703


760


647


590


589

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

60,524


65,677


56,492


53,093


58,067

Taxable equivalent revenues (Non-GAAP) (1)

226,319


230,762


220,256


216,637


215,369

Securities gains and other non-interest income

(12)


(1,789)


(196)


(157)


(2,221)

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

$      226,307


$      228,973


$      220,060


$      216,480


$      213,148











Total non-interest expense (GAAP)

$      138,139


$      139,504


$      137,452


$      138,975


$      144,968

Less: Intangible amortization expense

2,106


2,109


2,113


1,795


2,338

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

136,033


137,395


135,339


137,180


142,630

Less: Merger-related expense



3


(166)


2,212

Severance expense


140


454


1,842


304

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


(1,256)


1,044


3,396


1,713

Other non-core non-interest expense


1,177


1,091


(208)


242

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

$      136,033


$      137,334


$      132,747


$      132,316


$      138,159











Return on average assets (GAAP)

0.94 %


1.02 %


0.87 %


0.90 %


0.86 %

Effect of non-core revenues and expenses

0.00


(0.02)


0.03


0.02


0.03

Core return on average assets (Non-GAAP)

0.94 %


1.00 %


0.90 %


0.92 %


0.89 %











Efficiency ratio (GAAP)

61.9 %


61.3 %


63.3 %


65.0 %


68.2 %

Effect of tax benefit related to tax-exempt income

(0.9)


(0.8)


(0.9)


(0.8)


(0.9)

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

61.0 %


60.5 %


62.4 %


64.2 %


67.3 %

Effect of amortization of intangibles

(0.9)


(0.9)


(1.0)


(0.8)


(1.1)

Effect of non-core items

0.0


0.4


(1.1)


(2.3)


(1.4)

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

60.1 %


60.0 %


60.3 %


61.1 %


64.8 %











Return on average common equity (GAAP)

7.00 %


8.05 %


6.59 %


7.30 %


7.09 %

Effect of intangibles (2)

3.30


3.85


3.30


3.65


3.73

Effect of non-core revenues and expenses

0.00


(0.26)


0.37


0.25


0.36

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

10.30 %


11.64 %


10.26 %


11.20 %


11.18 %











Total shareholders' equity (GAAP)

$   2,667,110


$   2,637,597


$   2,547,909


$   2,498,835


$   2,483,201

Less:  Goodwill and other intangibles

757,856


759,966


764,730


761,871


762,500

Preferred stock

132,097


132,098


76,812


76,812


77,463

Tangible common equity (Non-GAAP) (2)

$   1,777,157


$   1,745,533


$   1,706,367


$   1,660,152


$   1,643,238











Total assets (GAAP)

$ 20,788,566


$ 20,160,855


$ 20,092,563


$ 19,504,068


$ 19,534,225

Less:  Goodwill and other intangibles

757,856


759,966


764,730


761,871


762,500

Tangible assets (Non-GAAP) (2)

$ 20,030,710


$ 19,400,889


$ 19,327,833


$ 18,742,197


$ 18,771,725

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

8.87 %


9.00 %


8.83 %


8.86 %


8.75 %











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

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

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/iberiabank-corporation-reports-third-quarter-results-300352125.html

SOURCE IBERIABANK Corporation

Copyright 2016 PR Newswire

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