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IBERIABANK Corporation Reports Second Quarter Results

LAFAYETTE, La., July 19, 2019 /PRNewswire/ -- IBERIABANK Corporation (IBKC), holding company of the 132-year-old IBERIABANK (www.iberiabank.com), reported financial results for the second quarter ended June 30, 2019. For the quarter, the Company reported net income available to common shareholders of $100.6 million, or $1.86 diluted earnings per common share ("EPS"). On a non-GAAP basis, EPS excluding non-core revenues and non-core expenses ("Core EPS") in the second quarter of 2019 was $1.87 per common share, compared to $1.71 in the year-ago period, an increase of 9% (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 reported very strong financial results in the second quarter driven by solid increases in revenues, strong loan growth, a stable net interest margin and improvements in our non-interest income fee businesses.  Looking to the second half of 2019, we remain confident in our ability to navigate through an ever-changing economic environment and deliver solid results."

Highlights for the second quarter of 2019 and at June 30, 2019:


For the three months ended


GAAP


Non-GAAP Core


2Q19

1Q19


2Q19

1Q19

Diluted Earnings Per Common Share

$

1.86


$

1.75



$

1.87


$

1.72


Return on Average Assets

1.30

%

1.32

%


1.31

%

1.29

%

Return on Average Common Equity

10.05

%

9.85

%


10.13

%

9.66

%

Return on Average Tangible Common Equity

N/A


N/A



15.58

%

15.03

%

Efficiency Ratio

54.0

%

52.4

%


53.8

%

53.2

%

Tangible Efficiency Ratio (TE)

N/A


N/A



52.0

%

51.3

%

 

  • Strong 2Q19 for both GAAP and Core EPS, improving 6% and 9%, respectively, on a linked quarter basis.
  • Total revenue grew $11.2 million, or 4%, on a linked quarter basis, primarily as a result of strong loan growth and improvements in non-interest income.
  • Solid growth in non-interest income on a GAAP basis, increasing $6.3 million, or 12%, from 1Q19:
  • Total loan growth of $387.0 million on a linked quarter basis, or 7% annualized, primarily driven by growth in corporate asset finance, energy, and mortgage.
  • The Company's reported and cash net interest margins decreased 2 and 5 basis points on a linked quarter basis, to 3.57% and 3.37%, respectively. The Company realized $7.2 million in recoveries.
  • Credit metrics remained strong and stable. No signs of deterioration in the loan portfolio.
  • During 2Q19, the Company repurchased 1.76 million common shares at a weighted average price of $76.59 per common share.
  • On April 4, 2019, the Company issued and sold 4.0 million depositary shares, each representing 1/400th interest in a share of non-cumulative perpetual preferred stock. The Series D preferred stock has an initial coupon equal to 6.100% for a period of five years, and thereafter floats at a rate of LIBOR plus 385.9 basis points. The Company raised approximately $100.0 million in gross proceeds from the transaction.

Recent Events:

  • On July 17, 2019, the Company announced a third quarter cash dividend equal to $0.45 per common share payable on October 25, 2019. This represents a 5% increase in the quarterly dividend.
  • Also on July 17, 2019, the Company announced the completion of its November 2018 share repurchase program for 2.765 million shares of IBERIABANK Corporation common stock. Additionally, the Company announced the commencement of a new share repurchase program of up to 1.6 million shares, or approximately 3% of outstanding common shares.

 

Table A - Summary Financial Results

(Dollars in thousands, except per share data)













For the Three Months Ended


6/30/2019



3/31/2019


% Change


6/30/2018


% Change

GAAP BASIS:











Income available to common shareholders

$

100,649




$

96,533



4.3



$

74,175



35.7


Earnings per common share - diluted

1.86




1.75



6.3



1.30



43.1













Average loans and leases, net of unearned income

$

23,120,689




$

22,599,686



2.3



$

21,830,720



5.9


Average total deposits

24,102,704




23,678,400



1.8



23,155,871



4.1


Net interest margin (TE) (1)

3.57


%


3.59


%



3.76


%













Total revenues

$

314,164




$

302,993



3.7



$

310,053



1.3


Total non-interest expense

169,618




158,753



6.8



196,776



(13.8)


Efficiency ratio

54.0


%


52.4


%



63.5


%


Return on average assets

1.30




1.32





1.01




Return on average common equity

10.05




9.85





7.87















NON-GAAP BASIS (2):











Core revenues

$

315,176




$

302,993



4.0



$

310,050



1.7


Core non-interest expense

169,543




161,239



5.2



175,344



(3.3)


Core earnings per common share - diluted

1.87




1.72



8.7



1.71



9.4


Core tangible efficiency ratio (TE) (1) (3)

52.0


%


51.3


%



54.3


%


Core return on average assets

1.31




1.29





1.32




Core return on average common equity

10.13




9.66





10.30




Core return on average tangible common equity

15.58




15.03





16.70




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

3.37




3.42





3.49















(1)  Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21%.

(2)  See Table 9 and Table 10 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.

Operating Results

Net interest income increased $4.9 million, or 2%, on a linked quarter basis. Average loans increased $521.0 million, or 9% annualized, and the associated taxable-equivalent yield increased 5 basis points. On a linked quarter basis, the yield on total earning assets was 2 basis points higher at 4.70% compared to 4.68% in the prior quarter. The increase in loan yield was primarily driven by higher recoveries in the acquired loan portfolio.

Average interest-bearing deposits increased $253.4 million, or 6% annualized, and the cost of interest-bearing deposits rose 10 basis points to 1.50% on a linked quarter basis. Total average interest-bearing liabilities increased by $100.6 million, or 2% annualized, and the cost of interest-bearing liabilities rose 8 basis points to 1.61%. The total cost of funding in the second quarter of 2019 was 1.22%, compared to 1.17% in the prior quarter. The increase in cost of funds was primarily due to brokered wholesale CD issuances and promotional activity in customer time deposits, as well as an upward repricing of certain variable rate deposits. The increase in cost of funds resulted in a decrease in the reported and cash net interest margins of 2 and 5 basis points to 3.57% and 3.37%, respectively.

The provision for credit losses totaled $10.8 million, compared to $13.8 million in the prior quarter. Asset quality measures remained strong and stable. Net charge-offs to average loans on an annualized basis were 0.14% compared to 0.13% in the prior quarter.  Non-performing assets to total assets were 0.60% compared to 0.58% in the prior quarter. On a linked quarter basis, the allowance for loan and lease losses to total loans and leases increased slightly to 0.63% compared to 0.62% in the prior quarter and covered 92% of non-performing loans.

Non-interest income increased $6.3 million, or 12%, on a linked quarter basis. Excluding $1.0 million in losses on the sale of available-for-sale securities, core non-interest income increased $7.3 million, or 14% from the first quarter.  The increases were primarily driven by a $6.6 million increase in mortgage income and a $1.7 million increase in title revenue. These increases were partially offset by a decrease of $1.7 million in customer swap income.

Non-interest expense increased $10.9 million, or 7%, compared to the linked quarter, primarily driven by a $5.1 million increase in salaries and employee benefits expenses (including commissions), a $1.8 million increase in professional services expenses, and a $1.3 million increase in credit and other loan related expenses.

The effective tax rate increased from 23.3% in the first quarter of 2019 to 24.1% in the second quarter of 2019, resulting in an increase in income tax expense of $1.8 million when compared to the prior quarter.

On a linked quarter basis, the efficiency ratio increased to 54.0% from 52.4%, primarily due to an increase in salaries and employee benefits expenses, while the non-GAAP core tangible efficiency ratio increased to 52.0% compared to 51.3%. The Company continues to focus on cost containment and revenue enhancement efforts to deliver positive operating leverage in 2019. Refer to Table A for a summary of financial results on both a GAAP and non-GAAP basis.

Table B - Summary Financial Condition Results

(Dollars in thousands, except per share data)

















As of and For the Three Months Ended



6/30/2019


3/31/2019


% Change


6/30/2018


% Change

PERIOD-END BALANCES:














Total loans and leases, net of unearned income

$

23,355,311




$

22,968,295




1.7



$

22,075,783




5.8



Total deposits

24,295,331




24,092,062




0.8



23,430,458




3.7
















ASSET QUALITY RATIOS:














Loans 30-89 days past due and still accruing as a percentage of total loans (1)

0.18

%



0.20

%





0.20

%





Loans 90 days or more past due and still accruing as a percentage of total loans (1)

0.00




0.02






0.04






Non-performing assets to total assets (1)(2)

0.60




0.58






0.54






Classified assets to total assets (3)

0.97




1.01






1.33



















CAPITAL RATIOS:














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

8.97

%



9.01

%





8.56

%





Tier 1 leverage ratio (6)

9.71




9.67






9.54






Total risk-based capital ratio (6)

12.34




12.33






12.37



















PER COMMON SHARE DATA:














Book value

$

75.93




$

73.50




3.3



$

67.06




13.2



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

51.20




49.48




3.5



43.75




17.0



Closing stock price

75.85




71.71




5.8



75.80




0.1



Cash dividends

0.43




0.43






0.38




13.2
















(1)

Past due and non-accrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans.

(2)

Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets. Refer to Table 5 for further detail.

(3)

Classified assets include loans rated substandard or worse, non-performing mortgage and consumer loans, and OREO and foreclosed property and include acquired impaired loans accounted for under ASC 310-30. Classified assets were $306 million, $315 million and $401 million at June 30, 2019, March 31, 2019, and June 30, 2018, respectively.

(4)

See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations.

(5)

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

(6)

Regulatory capital ratios as of June 30, 2019 are preliminary.


Loans and Other Assets

On a linked quarter basis, total loans increased $387.0 million, or 7% annualized, to $23.4 billion at June 30, 2019. Period-end loan growth during the second quarter of 2019 was strongest in the Energy Group (reserve-based and midstream lending), the Corporate Asset Finance Group (equipment financing and leasing business), and the New Orleans and Dallas markets. The Company believes it is well-positioned for diversified loan growth based on our strategic presence in significant MSAs in the Southeastern United States.

Table C - Period-End Loans

(Dollars in thousands)



















As of and For the Three Months Ended








Linked Qtr Change


Year/Year Change


Mix


6/30/2019


3/31/2019


6/30/2018


$

%


Annualized


$

%


6/30/2019

3/31/2019

Commercial loans and leases

$

15,980,029



$

15,628,158



$

14,804,720



351,871


2.3



9.0

%


1,175,309


7.9



68.5

%

68.1

%

Residential mortgage loans

4,538,194



4,415,267



4,124,538



122,927


2.8



11.2

%


413,656


10.0



19.4

%

19.2

%

Consumer and other loans

2,837,088



2,924,870



3,146,525



(87,782)


(3.0)



(12.0)

%


(309,437)


(9.8)



12.1

%

12.7

%

Total loans and leases

$

23,355,311



$

22,968,295



$

22,075,783



387,016


1.7



6.8

%


1,279,528


5.8



100.0

%

100.0

%

On an average balance and linked quarter basis, the investment portfolio decreased $173.1 million, or 14% annualized, to $4.8 billion, primarily due to sales of available-for-sale securities. On a period-end basis, investment securities were $4.6 billion, or 15% of total assets. At June 30, 2019, approximately 96% of the investment portfolio was in available-for-sale securities, which experience unrealized gains as interest rates fall. The investment portfolio had an effective duration of 2.6 years at June 30, 2019, down from 3.0 years at March 31, 2019, and a $58.4 million unrealized gain at June 30, 2019, up from a $6.0 million unrealized loss at March 31, 2019. The average yield on investment securities decreased 7 basis points to 2.83% in the second quarter of 2019. The investment portfolio primarily consists of government agency securities. Municipal securities comprised 7% of total investments at June 30, 2019.

Deposits and Funding

Total deposits increased $203.3 million, or 3% annualized, to $24.3 billion at June 30, 2019.

Table D - Period-End Deposits

(Dollars in thousands)








Linked Qtr Change


Year/Year Change


Mix


6/30/2019


3/31/2019


6/30/2018


$

%

Annualized


$

%


6/30/2019

3/31/2019

Non-interest-bearing

$

6,474,394



$

6,448,613



$

6,814,441



25,781


0.4


1.6

%


(340,047)


(5.0)



26.6

%

26.8

%

NOW accounts

4,610,577



4,452,966



4,453,152



157,611


3.5


14.2

%


157,425


3.5



19.0

%

18.5

%

Money market accounts

8,192,752



8,348,509



8,467,906



(155,757)


(1.9)


(7.5)

%


(275,154)


(3.2)



33.7

%

34.6

%

Savings accounts

702,711



770,754



850,425



(68,043)


(8.8)


(35.4)

%


(147,714)


(17.4)



2.9

%

3.2

%

Time deposits

4,314,897



4,071,220



2,844,534



243,677


6.0


24.0

%


1,470,363


51.7



17.8

%

16.9

%

Total deposits

$

24,295,331



$

24,092,062



$

23,430,458



203,269


0.8


3.4

%


864,873


3.7



100.0

%

100.0

%


Asset Quality

Credit quality remained strong and stable. Classified assets decreased $10.8 million, or 3%, from March 31, 2019 and were 0.97% of total assets, compared to 1.01% in the prior quarter and 1.33% in the prior year. Non-performing assets to total assets were 0.60% at June 30, 2019, compared to 0.58% in the prior quarter. Loans 30-89 days past due and still accruing decreased $2.3 million, or 5%, compared to the prior quarter and represented 0.18% of total loans and leases, compared to 0.20% in the prior quarter. As a percentage of average loans and leases, annualized net charge-offs were 0.14%, up 1 basis point compared to the prior quarter.

The allowance for loan and lease losses was $146.4 million, up $3.4 million compared to the prior quarter. As of June 30, 2019, the allowance for loan and lease losses was 0.63% of total loans and leases, up 1 basis point compared to March 31, 2019.

Refer to Table 5 - Loans and Asset Quality Data for further information.

Capital Position

At June 30, 2019, the non-GAAP tangible common equity ratio was 8.97%, down 4 basis points compared to March 31, 2019, and the preliminary Tier 1 leverage ratio was 9.71%, up 4 basis points compared to March 31, 2019. The preliminary calculation of the total risk-based capital ratio at June 30, 2019, was 12.34%, up 1 basis point compared to March 31, 2019.

At June 30, 2019, book value per common share was $75.93, up $2.43 per share, compared to March 31, 2019. Tangible book value per common share was $51.20, up $1.72 per share, compared to March 31, 2019. Based on the closing stock price of the Company's common stock of $75.27 per share on July 18, 2019, this price equated to 0.99 times June 30, 2019 book value per common share and 1.47 times June 30, 2019 tangible book value per common share.

Dividends On Capital Stock. The declaration of dividends is at the discretion of the Board of Directors. The following details the recent dividend declarations:

Common Stock. On May 9, 2019, the Company announced a quarterly cash dividend of $0.43 per common share, consistent with the common dividend declared in March 2019. The dividend is payable on July 26, 2019 to shareholders of record as of June 28, 2019.  Additionally, on July 17, 2019 the Company announced a third quarter dividend of $0.45 per common share payable on October 25, 2019 to shareholders of record as of September 30, 2019.

Preferred Stock. On July 3, 2019, the Company announced a semi-annual cash dividend of $0.8281 per depositary share of Series B Preferred Stock that is payable on August 1, 2019 to shareholders of record as of July 17, 2019. On July 3, 2019, the Company also announced a quarterly cash dividend of $0.4125 per depositary share of Series C Preferred Stock that is payable on August 1, 2019 to shareholders of record as of July 17, 2019.

On April 4, 2019, the Company issued and sold 4.0 million depositary shares, each representing a 1/400th ownership interest in a share of non-cumulative perpetual preferred stock. The Series D preferred stock has an initial coupon equal to 6.100% for a period of five years, and thereafter floats at a rate of LIBOR plus 385.9 basis points. The Company raised approximately $100.0 million in gross proceeds from the transaction.

Common Stock Repurchase Program. During the second quarter of 2019, the Company repurchased 1,759,849 common shares, at a weighted average price of $76.59 per common share. At June 30, 2019, the Company had approximately 117,230 remaining shares to be repurchased under the Board-approved plan. On July 17, 2019, the Company announced the completion of this plan. The Company's recently completed share repurchase program was announced on November 5, 2018 and completed on July 12, 2019. During that time, the Company purchased 2,765,000 shares of its common stock at a weighted average price of $75.52 per share. On July 17, 2019 the Board of Directors authorized a new repurchase plan of up to 1,600,000 shares of the Company's common stock. This repurchase authorization equated to approximately 3% of total common shares outstanding. Stock repurchases under this program will be made from time to time, on the open market or in privately negotiated transactions at the discretion of the management of the Company. The timing of these repurchases will depend on market conditions and other requirements. The Company currently anticipates the share repurchase program will extend over a two-year period, or earlier if the shares have been repurchased.

Updated 2019 Financial Guidance

Updated 2019 Guidance

Average Earning Assets

$28.6B ~ $28.8B

Consolidated Loan Growth

5% ~ 7%

Consolidated Deposit Growth

5% ~ 7%

Provision Expense

$41MM ~ $45MM

Non-Interest Income (Core Basis)

$222MM ~ $230MM

Non-Interest Expense (Core Basis)

$667MM ~ $677MM

Net Interest Margin

3.48% ~ 3.54%

Tax Rate

23.0% ~ 24.0%

Preferred Dividend

$17.0MM ~ $18.0MM

Share Repurchase Activity

$235MM ~ $240MM

Credit Quality

Stable

 

  • Updated guidance includes two interest rate cuts of 25 basis points; one each in July and September 2019

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with locations in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, South Carolina, North Carolina, Mississippi, Missouri, and New York offering commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, mortgage, and title insurance services.

The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC". The Company's Series B Preferred Stock, Series C Preferred Stock, and Series D Preferred Stock also trade on the NASDAQ Global Select Market under the symbols "IBKCP", "IBKCO", and "IBKCN", respectively. The Company's common stock market capitalization was approximately $4.0 billion, based on the closing stock price on July 18, 2019.

The following 10 investment firms currently provide equity research coverage on the Company:

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

Conference Call

In association with this earnings release, the Company will host a live conference call to discuss the financial results for the quarter just completed. The telephone conference call will be held on Friday, July 19, 2019, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 4057575. A replay of the call will be available until midnight Central Time on July 26, 2019, by dialing 1-877-344-7529. The confirmation code for the replay is 10131974. The Company has prepared a PowerPoint presentation that supplements information contained in this press release. The PowerPoint presentation may be accessed on the Company's web site, www.iberiabank.com, under "Investor Relations" and then "Financial Information" and "Presentations."

Non-GAAP Financial Measures

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

Caution About Forward-Looking Statements

This press release contains "forward-looking statements," which may include forecasts of our financial results and condition, expectations for our operations and businesses, and our assumptions for those forecasts and expectations. Do not place undue reliance on forward-looking statements. Due to various factors, actual results may differ materially from our forward-looking statements. Factors that could cause our actual results to differ materially from our forward-looking statements are described under "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Risk Factors" and "Regulation and Supervision" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, and in other documents subsequently filed by the Company with the Securities and Exchange Commission, available at the SEC's website, www.sec.gov, and the Company's website, www.iberiabank.com. To the extent that statements in this press release relate to future plans, objectives, financial results or performance by the Company, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are generally identified by use of words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology.

Forward-looking statements represent management's beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. All information is as of the date of this press release. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

Table 1 - IBERIABANK CORPORATION

FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per share data)

















As of and For the Three Months Ended

INCOME DATA:

6/30/2019


3/31/2019


% Change


6/30/2018


% Change


Net interest income

$

255,339




$

250,484




1.9



$

256,113




(0.3)



Net interest income (TE) (1)

256,677




251,833




1.9



257,562




(0.3)



Total revenues

314,164




302,993




3.7



310,053




1.3



Provision for credit losses

10,755




13,763




(21.9)



7,696




39.7



Non-interest expense

169,618




158,753




6.8



196,776




(13.8)



Net income available to common shareholders

100,649




96,533




4.3



74,175




35.7
















PER COMMON SHARE DATA:














Earnings available to common shareholders - basic

$

1.87




$

1.76




6.3



$

1.31




42.7



Earnings available to common shareholders - diluted

1.86




1.75




6.3



1.30




43.1



Core earnings (Non-GAAP) (2)

1.87




1.72




8.7



1.71




9.4



Book value

75.93




73.50




3.3



67.06




13.2



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

51.20




49.48




3.5



43.75




17.0



Closing stock price

75.85




71.71




5.8



75.80




0.1



Cash dividends

0.43




0.43






0.38




13.2
















KEY RATIOS AND OTHER DATA (6):










Net interest margin (TE) (1)

3.57

%



3.59

%





3.76

%





Efficiency ratio

54.0




52.4






63.5






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

52.0




51.3






54.3






Return on average assets

1.30




1.32






1.01






Return on average common equity

10.05




9.85






7.87






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

15.58




15.03






16.70






Effective tax rate

24.1




23.3






28.8






Full-time equivalent employees

3,418




3,384






3,543



















CAPITAL RATIOS:














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

8.97

%



9.01

%





8.56

%





Tangible common equity to risk-weighted assets (3)

10.45




10.60






10.18






Tier 1 leverage ratio (4)

9.71




9.67






9.54






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

10.38




10.73






10.72






Tier 1 capital ratio (4)

11.26




11.24






11.27






Total risk-based capital ratio (4)

12.34




12.33






12.37






Common stock dividend payout ratio

22.6




24.3






28.9






Classified assets to Tier 1 capital (7)

10.4




11.0






14.7



















ASSET QUALITY RATIOS:










Non-performing assets to total assets (5)

0.60

%



0.58

%





0.54

%





ALLL to total loans and leases

0.63




0.62






0.62






Net charge-offs to average loans (annualized)

0.14




0.13






0.21






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

0.80




0.79






0.74



















(1)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21%.

(2)

See Table 9 and Table 10 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)

Regulatory capital ratios as of June 30, 2019 are preliminary.

(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. For purposes of this table, past due and non-accrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans.

(6)

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

(7)

Classified assets include loans rated substandard or worse, non-performing mortgage and consumer loans, and OREO and foreclosed property and include acquired impaired loans accounted for under ASC 310-30.

 

Table 2 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except per share data)


















For the Three Months Ended






Linked Qtr

Change








Year/Year Change


6/30/2019


3/31/2019


$

%


12/31/2018


9/30/2018


6/30/2018


$

%

Interest income

$

335,967



$

326,084



9,883


3.0



$

330,196



$

317,067



$

303,823



32,144


10.6


Interest expense

80,628



75,600



5,028


6.7



65,175



57,842



47,710



32,918


69.0


Net interest income

255,339



250,484



4,855


1.9



265,021



259,225



256,113



(774)


(0.3)


Provision for credit losses

10,755



13,763



(3,008)


(21.9)



13,094



11,384



7,696



3,059


39.7


Net interest income after provision for credit losses

244,584



236,721



7,863


3.3



251,927



247,841



248,417



(3,833)


(1.5)


Mortgage income

18,444



11,849



6,595


55.7



10,379



12,729



13,721



4,723


34.4


Service charges on deposit accounts

12,847



12,810



37


0.3



13,425



13,520



12,950



(103)


(0.8)


Title revenue

6,895



5,225



1,670


32.0



5,996



6,280



6,846



49


0.7


Broker commissions

2,044



1,953



91


4.7



1,951



2,627



2,396



(352)


(14.7)


ATM/debit card fee income

3,032



2,582



450


17.4



2,267



2,470



2,925



107


3.7


Income from bank owned life insurance

1,750



1,797



(47)


(2.6)



2,023



1,744



1,261



489


38.8


(Loss) gain on sale of available-for-sale securities

(1,014)





(1,014)


(100.0)



(49,844)





3



(1,017)


(33,900.0)


Trust department income

4,388



4,167



221


5.3



4,319



3,993



4,243



145


3.4


Other non-interest income

10,439



12,126



(1,687)


(13.9)



10,453



9,724



9,595



844


8.8


Total non-interest income

58,825



52,509



6,316


12.0



969



53,087



53,940



4,885


9.1


Salaries and employee benefits

103,375



98,296



5,079


5.2



101,551



101,159



107,445



(4,070)


(3.8)


Occupancy and equipment

18,999



18,564



435


2.3



18,379



18,889



19,931



(932)


(4.7)


Amortization of acquisition intangibles

4,786



5,009



(223)


(4.5)



5,083



5,382



6,111



(1,325)


(21.7)


Computer services expense

9,383



9,157



226


2.5



8,942



9,036



9,309



74


0.8


Professional services

6,244



4,450



1,794


40.3



8,628



5,519



7,160



(916)


(12.8)


Credit and other loan related expense

4,141



2,859



1,282


44.8



4,776



4,830



5,089



(948)


(18.6)


Other non-interest expense

22,690



20,418



2,272


11.1



21,630



24,247



41,731



(19,041)


(45.6)


Total non-interest expense

169,618



158,753



10,865


6.8



168,989



169,062



196,776



(27,158)


(13.8)


Income before income taxes

133,791



130,477



3,314


2.5



83,907



131,866



105,581



28,210


26.7


Income tax expense (benefit)

32,193



30,346



1,847


6.1



(46,132)



30,401



30,457



1,736


5.7


Net income

101,598



100,131



1,467


1.5



130,039



101,465



75,124



26,474


35.2


Less: Preferred stock dividends

949



3,598



(2,649)


(73.6)



949



3,599



949





Net income available to common shareholders

$

100,649



$

96,533



4,116


4.3



$

129,090



$

97,866



$

74,175



26,474


35.7


















Income available to common shareholders - basic

$

100,649



$

96,533



4,116


4.3



$

129,090



$

97,866



$

74,175



26,474


35.7


Less: Earnings allocated to unvested restricted stock

999



933



66


7.1



1,214



908



767



232


30.2


Earnings allocated to common shareholders

$

99,650



$

95,600



4,050


4.2



$

127,876



$

96,958



$

73,408



26,242


35.7


















Earnings per common share - basic

$

1.87



$

1.76



0.11


6.3



$

2.33



$

1.74



$

1.31



0.56


42.7


















Earnings per common share - diluted

1.86



1.75



0.11


6.3



2.32



1.73



1.30



0.56


43.1


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

0.01



(0.03)



0.04


133.3



(0.46)



0.01



0.41



(0.40)


(97.6)


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

$

1.87



$

1.72



0.15


8.7



$

1.86



$

1.74



$

1.71



0.16


9.4


















NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
















Weighted average common shares outstanding - basic

53,345



54,177



(832)


(1.5)



54,892



55,571



55,931



(2,586)


(4.6)


Weighted average common shares outstanding - diluted

53,674



54,539



(865)


(1.6)



55,215



55,945



56,287



(2,613)


(4.6)


Book value shares (period end)

52,805



54,551



(1,746)


(3.2)



54,796



56,007



56,390



(3,585)


(6.4)


















(1)  See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations.

 

Table 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except per share data)









For the Six Months Ended






Change


6/30/2019


6/30/2018


$

%

Interest income

$

662,051



$

574,366



87,685


15.3


Interest expense

156,228



85,364



70,864


83.0


Net interest income

505,823



489,002



16,821


3.4


Provision for credit losses

24,518



15,907



8,611


54.1


Net interest income after provision for credit losses

481,305



473,095



8,210


1.7


Mortgage income

30,293



23,316



6,977


29.9


Service charges on deposit accounts

25,657



25,858



(201)


(0.8)


Title revenue

12,120



11,873



247


2.1


Broker commissions

3,997



4,617



(620)


(13.4)


ATM/debit card fee income

5,614



5,558



56


1.0


Income from bank owned life insurance

3,547



2,543



1,004


39.5


(Loss) gain on sale of available-for-sale securities

(1,014)



(56)



(958)


(1,710.7)


Trust department income

8,555



7,669



886


11.6


Other non-interest income

22,565



17,128



5,437


31.7


Total non-interest income

111,334



98,506



12,828


13.0


Salaries and employee benefits

201,671



212,031



(10,360)


(4.9)


Occupancy and equipment

37,563



39,978



(2,415)


(6.0)


Amortization of acquisition intangibles

9,795



11,213



(1,418)


(12.6)


Computer services expense

18,540



21,702



(3,162)


(14.6)


Professional services

10,694



14,551



(3,857)


(26.5)


Credit and other loan related expense

7,000



9,482



(2,482)


(26.2)


Other non-interest expense

43,108



75,890



(32,782)


(43.2)


Total non-interest expense

328,371



384,847



(56,476)


(14.7)


Income before income taxes

264,268



186,754



77,514


41.5


Income tax expense

62,539



48,009



14,530


30.3


Net income

201,729



138,745



62,984


45.4


Less: Preferred stock dividends

4,547



4,547





Net income available to common shareholders

$

197,182



$

134,198



62,984


46.9









Income available to common shareholders - basic

$

197,182



$

134,198



62,984


46.9


Less: Earnings allocated to unvested restricted stock

1,931



1,409



522


37.0


Earnings allocated to common shareholders

$

195,251



$

132,789



62,462


47.0









Earnings per common share - basic

$

3.63



$

2.42



1.21


50.0









Earnings per common share - diluted

3.61



2.41



1.20


49.8


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

(0.01)



0.68



(0.69)


(101.5)


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

$

3.60



$

3.09



0.51


16.5









NUMBER OF COMMON SHARES OUTSTANDING (in thousands)







Weighted average common shares outstanding - basic

53,758



54,780



(1,022)


(1.9)


Weighted average common shares outstanding - diluted

54,104



55,133



(1,029)


(1.9)


Book value shares (period end)

52,805



56,390



(3,585)


(6.4)



(1) See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations.

 

TABLE 4 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)
















PERIOD-END BALANCES




Linked Qtr Change








Year/Year Change

ASSETS

6/30/2019


3/31/2019


$


%


12/31/2018


9/30/2018


6/30/2018


$


%

Cash and due from banks

$

289,502



$

280,680



8,822



3.1



$

294,186



$

291,083



$

299,268



(9,766)



(3.3)


Interest-bearing deposits in other banks

499,813



391,217



108,596



27.8



396,267



184,852



428,120



71,693



16.7


Total cash and cash equivalents

789,315



671,897



117,418



17.5



690,453



475,935



727,388



61,927



8.5


Investment securities available for sale

4,455,308



4,873,778



(418,470)



(8.6)



4,783,579



4,634,124



4,650,915



(195,607)



(4.2)


Investment securities held to maturity

192,917



198,958



(6,041)



(3.0)



207,446



213,561



221,030



(28,113)



(12.7)


Total investment securities

4,648,225



5,072,736



(424,511)



(8.4)



4,991,025



4,847,685



4,871,945



(223,720)



(4.6)


Mortgage loans held for sale

187,987



128,451



59,536



46.3



107,734



42,976



78,843



109,144



138.4


Loans and leases, net of unearned income

23,355,311



22,968,295



387,016



1.7



22,519,815



22,343,906



22,075,783



1,279,528



5.8


Allowance for loan and lease losses

(146,386)



(142,966)



(3,420)



2.4



(140,571)



(136,950)



(136,576)



(9,810)



7.2


Loans and leases, net

23,208,925



22,825,329



383,596



1.7



22,379,244



22,206,956



21,939,207



1,269,718



5.8


Premises and equipment, net

295,897



297,342



(1,445)



(0.5)



300,507



304,605



326,213



(30,316)



(9.3)


Goodwill and other intangible assets

1,317,151



1,319,992



(2,841)



(0.2)



1,324,269



1,313,478



1,320,664



(3,513)



(0.3)


Other assets

999,032



944,442



54,590



5.8



1,039,783



926,752



861,902



137,130



15.9


Total assets

$

31,446,532



$

31,260,189



186,343



0.6



$

30,833,015



$

30,118,387



$

30,126,162



1,320,370



4.4




















LIABILITIES AND SHAREHOLDERS' EQUITY













Non-interest-bearing deposits

$

6,474,394



$

6,448,613



25,781



0.4



$

6,542,490



$

6,544,926



$

6,814,441



(340,047)



(5.0)


NOW accounts

4,610,577



4,452,966



157,611



3.5



4,514,113



4,247,533



4,453,152



157,425



3.5


Savings and money market accounts

8,895,463



9,119,263



(223,800)



(2.5)



9,066,205



9,159,036



9,318,331



(422,868)



(4.5)


Time deposits

4,314,897



4,071,220



243,677



6.0



3,640,623



3,241,951



2,844,534



1,470,363



51.7


Total deposits

24,295,331



24,092,062



203,269



0.8



23,763,431



23,193,446



23,430,458



864,873



3.7


Short-term borrowings

813,000



845,000



(32,000)



(3.8)



1,167,000



790,000



595,000



218,000



36.6


Securities sold under agreements to repurchase

184,507



261,131



(76,624)



(29.3)



315,882



452,719



459,213



(274,706)



(59.8)


Trust preferred securities

120,110



120,110







120,110



120,110



120,110






Other long-term debt

1,254,649



1,355,345



(100,696)



(7.4)



1,046,041



1,346,700



1,318,504



(63,855)



(4.8)


Other liabilities

540,935



444,710



96,225



21.6



364,274



273,051



289,468



251,467



86.9


Total liabilities

27,208,532



27,118,358



90,174



0.3



26,776,738



26,176,026



26,212,753



995,779



3.8


Total shareholders' equity

4,238,000



4,141,831



96,169



2.3



4,056,277



3,942,361



3,913,409



324,591



8.3


Total liabilities and shareholders' equity

$

31,446,532



$

31,260,189



186,343



0.6



$

30,833,015



$

30,118,387



$

30,126,162



1,320,370



4.4


 

TABLE 4 Continued - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)



















AVERAGE BALANCES


Linked Qtr Change








Year/Year Change

ASSETS

6/30/2019


3/31/2019


$


%


12/31/2018


9/30/2018


6/30/2018


$


%

Cash and due from banks

$

275,917



$

291,659



(15,742)



(5.4)



$

281,509



$

279,918



$

296,907



(20,990)



(7.1)


Interest-bearing deposits in other banks

436,948



332,638



104,310



31.4



385,619



259,455



392,906



44,042



11.2


Total cash and cash equivalents

712,865



624,297



88,568



14.2



667,128



539,373



689,813



23,052



3.3


Investment securities available for sale

4,650,757



4,816,855



(166,098)



(3.4)



4,567,564



4,673,454



4,629,177



21,580



0.5


Investment securities held to maturity

195,639



202,601



(6,962)



(3.4)



211,333



216,419



222,764



(27,125)



(12.2)


Total investment securities

4,846,396



5,019,456



(173,060)



(3.4)



4,778,897



4,889,873



4,851,941



(5,545)



(0.1)


Mortgage loans held for sale

159,931



95,588



64,343



67.3



63,033



87,823



72,917



87,014



119.3


Loans and leases, net of unearned income

23,120,689



22,599,686



521,003



2.3



22,364,188



22,162,373



21,830,720



1,289,969



5.9


Allowance for loan and lease losses

(145,854)



(140,915)



(4,939)



3.5



(138,675)



(139,075)



(145,565)



(289)



0.2


Loans and leases, net

22,974,835



22,458,771



516,064



2.3



22,225,513



22,023,298



21,685,155



1,289,680



5.9


Premises and equipment, net

298,119



299,741



(1,622)



(0.5)



302,956



315,259



327,686



(29,567)



(9.0)


Goodwill and other intangible assets

1,318,182



1,322,288



(4,106)



(0.3)



1,318,200



1,316,527



1,338,420



(20,238)



(1.5)


Other assets

961,494



1,013,359



(51,865)



(5.1)



977,740



874,078



804,920



156,574



19.5


Total assets

$

31,271,822



$

30,833,500



438,322



1.4



$

30,333,467



$

30,046,231



$

29,770,852



1,500,970



5.0




















LIABILITIES AND SHAREHOLDERS' EQUITY













Non-interest-bearing deposits

$

6,442,217



$

6,271,313



170,904



2.7



$

6,646,071



$

6,684,343



$

6,795,878



(353,661)



(5.2)


NOW accounts

4,488,691



4,458,634



30,057



0.7



4,212,304



4,296,392



4,494,064



(5,373)



(0.1)


Savings and money market accounts

9,014,822



9,089,099



(74,277)



(0.8)



9,169,184



9,237,614



9,146,302



(131,480)



(1.4)


Time deposits

4,156,974



3,859,354



297,620



7.7



3,457,017



3,023,180



2,719,627



1,437,347



52.9


Total deposits

24,102,704



23,678,400



424,304



1.8



23,484,576



23,241,529



23,155,871



946,833



4.1


Short-term borrowings

782,516



859,576



(77,060)



(9.0)



602,593



820,087



609,965



172,551



28.3


Securities sold under agreements to repurchase

214,090



291,643



(77,553)



(26.6)



386,563



376,078



427,508



(213,418)



(49.9)


Trust preferred securities

120,110



120,110







120,110



120,110



120,110






Other long-term debt

1,345,575



1,343,752



1,823



0.1



1,308,086



1,260,900



1,261,515



84,060



6.7


Other liabilities

463,803



434,516



29,287



6.7



470,501



292,445



281,820



181,983



64.6


Total liabilities

27,028,798



26,727,997



300,801



1.1



26,372,429



26,111,149



25,856,789



1,172,009



4.5


Total shareholders' equity

4,243,024



4,105,503



137,521



3.3



3,961,038



3,935,082



3,914,063



328,961



8.4


Total liabilities and shareholders' equity

$

31,271,822



$

30,833,500



438,322



1.4



$

30,333,467



$

30,046,231



$

29,770,852



1,500,970



5.0


 

...

Table 5 - IBERIABANK CORPORATION

LOANS AND ASSET QUALITY DATA

(Dollars in thousands)














Linked Qtr Change








Year/Year Change

LOANS

6/30/2019


3/31/2019


$


%


12/31/2018


9/30/2018


6/30/2018


$


%

Commercial loans and leases:


















Real estate- construction

$

1,342,984



$

1,219,647



123,337



10.1



$

1,196,366



$

1,127,988



$

1,183,367



159,617



13.5


Real estate- owner-occupied (1)

2,373,143



2,408,079



(34,936)



(1.5)



2,395,822



2,458,964



2,455,685



(82,542)



(3.4)


Real estate- non-owner occupied

6,102,143



6,147,864



(45,721)



(0.7)



5,796,117



5,794,931



5,653,252



448,891



7.9


Commercial and industrial (6)

6,161,759



5,852,568



309,191



5.3



5,737,017



5,581,040



5,512,416



649,343



11.8


Total commercial loans and leases

15,980,029



15,628,158



351,871



2.3



15,125,322



14,962,923