LAFAYETTE, La., July 21 /PRNewswire-FirstCall/ -- IBERIABANK Corporation , holding company of the 123-year-old IBERIABANK (http://www.iberiabank.com/) and IBERIABANK fsb (http://www.iberiabankfsb.com/), reported improved asset quality ratios, capital strength, and earnings results for the quarter ended June 30, 2010. The Company's levels of nonperforming assets, loans past due 30 days or more, classified assets, and commercial loan watch list each improved between March 31, 2010 and June 30, 2010. At quarter-end, the Company possessed one of the strongest regulatory capital ratios for bank holding companies with assets in excess of $5 billion. For the second quarter of 2010, the Company reported income available to common shareholders of $9 million and fully diluted earnings per share ("EPS") of $0.33.
Daryl G. Byrd, President and Chief Executive Officer, commented, "Our formidable balance sheet, as measured by asset quality, capital position, and liquidity is among the strongest in the industry. We have avoided many of the adverse issues that have plagued our industry by limiting lending concentrations and maintaining conservative underwriting. We are very proud of our heritage, dating back to 1887, as the second oldest and second largest bank based in Louisiana." Byrd continued, "Our second quarter results included significant costs incurred in association with strategic investments in our growth businesses. We are very pleased with the progress made in developing these businesses, and we anticipate favorable returns on these investments over time. Our earnings were also negatively affected by FDIC loss share accounting which requires the deferral of income recognition in the near-term. While this impact was negative in the second quarter, we expect it will be very positive in the long-term."
Byrd continued, "We are deeply disappointed in the tragic ecological and economic impacts of the Deepwater Horizon disaster in the Gulf of Mexico. We remain hopeful that the current efforts to cap the well and address the damage are completed quickly and in a thorough manner. We believe our financial exposure to this event remains extremely small, but we continue to be concerned about the near-term and long-term effects on the citizens and economy of the Gulf region."
Operating Results Summary
Diluted net income to common shareholders in the second quarter of 2010 totaled $9 million, down 32% compared to the first quarter of 2010 ("linked quarter basis"), and up 5% compared to the same quarter last year. Fully diluted earnings per share ("EPS") were $0.33 in the second quarter of 2010, a decrease of 44% on a linked quarter basis, and a decrease of 37% compared to the same quarter last year. For the second quarter of 2010, return on average assets ("ROA") was 0.34%, return on average common equity ("ROE") was 2.73%, and return on average tangible common equity was 3.73%.
One-Time Acquisition-Related Costs. During the second quarter of 2010, the Company completed the branch and operating system conversions for Orion Bank and Century Bank. In the first quarter of 2010, the Company recorded a $4 million pre-tax gain ($0.11 per share on an after-tax basis) related to additional FDIC settlement items. No gain was recorded in the second quarter of 2010. The Company incurred one-time pre-tax acquisition-related costs of $2 million, or $0.07 per share on an after-tax basis, in the first quarter of 2010, and $4 million, or $0.08 per share, in the second quarter of 2010.
Excess Cash and Margin. The Company held $543 million in excess cash on average in the first quarter of 2010, compared to $1.1 billion in the second quarter of 2010. The Company's tax-equivalent net interest margin ("margin") declined 11 basis points on a linked quarter basis to 3.05% in the second quarter of 2010. The aggregate excess cash position suppressed the margin approximately 24 and 45 basis points in the first and second quarters of 2010, respectively. The Company estimated the excess cash reduced EPS by $0.18 and $0.29 in the first and second quarters of 2010, respectively.
Surplus Capital. On March 8, 2010, the Company issued and sold 5,973,207 shares of common stock in an underwritten public offering, with net proceeds of $329 million. The Company estimates EPS was suppressed due to the additional outstanding shares by $0.05 and $0.09 per share in the first and second quarters of 2010, respectively.
Loan Loss Provision and FDIC Loss Share Accounting. The Company was required under generally accepted accounting principles to establish homogeneous pools of loans with common characteristics. Loan pools in which expected credit losses and cash flows deteriorate relative to original estimates result in a current period impairment. This impairment increases the reserve for loan losses, FDIC loss share receivable, and loan loss provision expense. In contrast, the benefits related to pools in which expected credit losses and cash flows improve relative to original estimates are to be recognized in future periods through adjustments of associated yields over the remaining estimated lives of these pools or the loss share agreement, whichever is shorter.
Based on the Company's recent assessment of FDIC covered loans, the Company estimates projected losses in that portfolio improved by $113 million compared to original estimates. Although projected losses are better than initial estimates, the Company experienced deterioration in expected credit losses and cash flows on a small number of loan pools. Accordingly, the Company recorded a pre-tax provision expense of $6 million, or $0.15 per share, related to FDIC covered loans associated with those select loan pools. However, the benefits related to the majority of loan pools, which have improved expected losses and cash flows, will be recognized in future periods through yield adjustments.
Investments in Businesses. Given continued unprecedented recruiting and client development opportunities, the Company continued to invest in various business lines, infrastructure, and personnel in the second quarter of 2010. These strategic investments included commercial banking, wealth management, capital markets, branch offices, and support functions. The incremental estimated cost of these investments on a linked quarter basis was approximately $2 million, or $0.05 per share. The Company expects a significant long-term return on these investments.
Balance Sheet Summary
Total assets decreased $16 million, or less than 1% since March 31, 2010, to $10.4 billion at June 30, 2010. Over this period, total loans increased $21 million, or less than 1%, and total deposits increased $119 million, or 1%. Total shareholders' equity increased $6 million, or 1%, since March 31, 2010.
The majority of assets acquired in the three FDIC-assisted transactions completed in 2009 are covered under FDIC loss sharing arrangements ("covered assets"), and loan valuations incorporate estimated losses. As a result, a significant portion of the Company's nonperforming assets has minimum loss exposure. Total Nonperforming Assets ("NPAs") at June 30, 2010 were $792 million, which included $723 million in covered assets. Excluding the FDIC-assisted transactions, NPAs at June 30, 2010 were $69 million, or 0.91% of total assets, compared to 1.01% of assets at March 31, 2010 and 1.04% one year ago.
Loans
In the second quarter of 2010, total loans increased $21 million, or less than 1%. Excluding the FDIC-assisted transactions, loans increased $58 million, or 1%, over that period. Between the time of the acquisitions and June 30, 2010, Orion Bank and Century Bank-originated loans decreased approximately $141 million, or 10%, which was greater than the Company's expectations at closing.
The loan portfolio at June 30, 2010, was comprised of disparate components. Approximately 26% of the Company's $5.8 billion loan portfolio is comprised of assets covered under the FDIC's loss share agreements, which provide considerable protection against credit risk on those covered assets. The remaining $4.2 billion in loans at June 30, 2010, were associated with the Company's legacy franchise, and underwritten under the Company's guidelines.
Period-End Loan Volumes ($ in Millions) --------------------------------------- Loans 6/30/09 9/30/09 12/31/09 3/31/10 6/30/10 ------- ------- -------- ------- ------- Commercial $2,432 $2,556 $2,748 $2,825 $2,878 Consumer 920 923 914 912 929 Mortgage 477 467 452 441 430 --- --- --- --- --- Non-FDIC Loans $3,829 $3,946 $4,114 $4,178 $4,237 Covered Loans $- $353 $1,670 $1,561 $1,524 --- ---- ------ ------ ------ Total Loans $3,829 $4,298 $5,784 $5,739 $5,761 Non-FDIC Growth 2% 3% 4% 2% 1% --- --- --- --- ---
On a linked quarter basis, the yield on average total loans increased 65 basis points to 6.50%. Yields on mortgage, commercial, and consumer loans increased 148, 53, and 32 basis points, respectively, on a linked quarter basis. The increases in yields were driven primarily by FDIC loss share accounting.
Commercial real estate ("CRE") loans equated to 43% of total loans, though a significant portion of the total CRE portfolio is covered under the loss share agreements with the FDIC. In addition, much of the acquired CRE portfolio was purchased from the FDIC at substantial discounts that are expected to offset much of the remaining credit exposure and servicing costs. Finally, a portion of the CRE portfolio is comprised of legacy CRE loans, underwritten under the Company's guidelines. At June 30, 2010, the average loan size in the legacy CRE portfolio was approximately $627,000, and loans past due 30 days or more (including nonaccruing loans) equated to 2.79% of the CRE loans outstanding (2.79% at March 31, 2010). Approximately 63% of the legacy CRE portfolio was based in southern Louisiana, 22% in northern Louisiana, and 15% in other markets. At June 30, 2010, many of the local markets in southern Louisiana remained economically healthy compared to the national economy. Excluding construction-related credits and FDIC-assisted loans, at June 30, 2010, approximately 47% of the Company's CRE portfolio was owner-occupied and 53% was non-owner occupied. Non-owner occupied CRE loans equated to 74% of total risk based capital at June 30, 2010.
At June 30, 2010, approximately 18% of the Company's direct consumer loan portfolio (net of discounts) was covered under the FDIC loss share agreements. The remaining legacy consumer portfolio maintained favorable asset quality. The average credit score of the legacy consumer loan portfolio was 718, and loans past due 30 days or more were 0.81% of consumer loans at June 30, 2010 (an improvement compared to 1.32% March 31, 2010). Legacy home equity loans totaled $330 million at June 30, 2010, with 0.82% past due 30 days or more (1.45% at March 31, 2010). Legacy home equity lines of credit totaled $199 million, with 0.80% past due 30 days or more (1.14% at March 31, 2010). Annualized net charge-offs in this portfolio were 0.58% of total consumer loans in the second quarter of 2010 (0.47% in the first quarter of 2010). The weighted average loan-to-value at origination for this portfolio over the last three years was approximately 68%.
The indirect automobile portfolio totaled $269 million at June 30, 2010, up 3% compared to the portfolio at March 31, 2010. This portfolio equated to 5% of total loans and had 0.78% in loans past due 30 days or more (including nonaccruing loans) at June 30, 2010 (an improvement from 1.01% at March 31, 2010). Annualized net charge-offs in the indirect loan portfolio equated to approximately 0.15% of average loans in the second quarter of 2010 (an improvement from 0.31% in the first quarter of 2010). Approximately 87% of the indirect automobile portfolio was to borrowers in the Acadiana region of Louisiana, which currently experiences a relatively favorable unemployment rate (5.6% in May 2010, the 23rd lowest unemployment rate of 372 MSAs in the United States).
Deposits
During the second quarter of 2010, total deposits increased $119 million, or 1%, and $51 million, or 1%, excluding the FDIC transactions. Between the time of the acquisitions and July 16, 2010, Orion Bank and Century Bank-originated deposits, excluding brokered deposits, increased approximately $368 million, or 18%, which was more favorable than the Company's expectations at closing.
Period-End Deposit Volumes ($ in Millions) ------------------------------------------ Deposits 6/30/09 9/30/09 12/31/09 3/31/10 6/30/10 ------- ------- -------- ------- ------- Noninterest $576 $629 $875 $825 $821 NOW Accounts 948 959 1,352 1,407 1,333 Savings/MMkt 1,128 1,327 2,252 2,571 2,808 Time Deposits 1,521 1,860 3,077 3,153 3,112 ----- ----- ----- ----- ----- Total Deposits $4,173 $4,774 $7,556 $7,956 $8,074 Growth 1% 14% 58% 5% 1% --- --- --- --- ---
Noninterest bearing deposits totaled $820 million at June 30, 2010, down $5 million, or 1%, compared to March 31, 2010. Excluding the FDIC-assisted transactions, noninterest bearing deposits increased $12 million, or 8%, over this period. On a linked quarter basis, average noninterest bearing deposits decreased $6 million, or 1%, and interest-bearing deposits increased $252 million, or 4%. The rate on average interest bearing deposits in the second quarter of 2010 was 1.46%, an increase of 10 basis points on a linked quarter basis, similar to a nine basis point increase in the cost of average interest bearing liabilities. The Company had only $15 million in short-term borrowings at June 30, 2010, or approximately 0.2% of total liabilities.
Asset Quality
The Company's credit quality statistics were significantly affected by the FDIC-assisted acquisitions. However, the loss share arrangements with the FDIC and discounts on the assets acquired are expected to provide substantial protection against loss on those assets. Under the loss share agreements in connection with the FDIC-assisted acquisitions, the FDIC will cover 80% of the losses on the disposition of loans and OREO up to $970 million, or $776 million (the Company will cover the remaining $194 million amount). In addition, the FDIC will cover 95% of losses that exceed that $970 million threshold level. The Company estimates its maximum loss exposure would have been approximately $297 million, assuming all loans experience 100% losses with no recoveries, over the loss share period. The Company received a discount of approximately $500 million on the purchase of assets in the transactions.
Excluding the FDIC-assisted transactions, NPAs and loans past due 30 days or more decreased during the second quarter of 2010 at the Company. The legacy Company had troubled debt restructurings at June 30, 2010, totaling $8 million, compared to $7 million at March 31, 2010.
Summary Asset Quality Statistics ($ thousands) IBERIABANK ---------- 4Q09* 1Q10* 2Q10* ----- ----- ----- Nonaccruals $11,899 $30,054 $25,512 OREO & Foreclosed 4,000 4,012 5,037 90+ Days Past Due 3,193 1,852 3,229 ----- ----- ----- Nonperforming Assets $19,092 $35,918 $33,778 NPAs/Assets 0.38% 0.64% 0.58% NPAs/(Loans + OREO) 0.61% 1.13% 1.04% LLR/Loans 1.10% 1.38% 1.36% Net Charge-Offs/ Loans 0.04% 0.08% 0.65% ---- ---- ---- ($ thousands) IBERIABANK fsb -------------- 4Q09 1Q10 2Q10 ---- ---- ---- Nonaccruals $27,947 $24,570 $22,537 OREO & Foreclosed 11,281 11,436 10,177 90+ Days Past Due 1,767 1,316 2,416 ----- ----- ----- Nonperforming Assets $40,996 $37,322 $35,130 NPAs/Assets 2.68% 2.27% 2.11% NPAs/(Loans + OREO) 4.03% 3.64% 3.49% LLR/Loans 2.12% 1.98% 2.04% Net Charge-Offs/ Loans 0.78% 1.41% 0.31% ---- ---- ---- ($ thousands) IBERIABANK Corp. ---------------- 4Q09* 1Q10* 2Q10* ----- ----- ----- Nonaccruals $39,847 $54,624 $48,049 OREO & Foreclosed 15,281 15,448 15,214 90+ Days Past Due 4,960 3,168 5,645 ----- ----- ----- Nonperforming Assets $60,088 $73,240 $68,908 NPAs/Assets 0.91% 1.01% 0.91% NPAs/(Loans + OREO) 1.45% 1.75% 1.62% LLR/Loans 1.36% 1.53% 1.52% Net Charge-Offs/ Loans 0.22% 0.41% 0.57% ---- ---- ---- * Excludes the impact of all FDIC-assisted acquisitions
The FDIC-assisted transactions accounted for $723 million, or 91% of the Company's $792 million in total NPAs at June 30, 2010, and the legacy IBERIABANK Corporation franchise accounted for the remaining $69 million in NPAs. Excluding the FDIC-assisted transactions, NPAs equated to 0.91% of total assets at June 30, 2010, compared to 1.01% at March 31, 2010. On this same basis, total loans past due 30 days or more (including nonaccruing loans) represented 1.90% of total loans at June 30, 2010, an improvement of 14 basis points, compared to 2.04% of total loans at March 31, 2010.
Loans Past Due Loans Past Due 30 Days Or More And Nonaccruing Loans As % Of Loans Outstanding By Entity: 3/31/09 6/30/09 9/30/09 12/31/09 3/31/10 6/30/10 ---------- ------- ------- ------- -------- ------- ------- IBERIABANK (Ex- FDIC Covered Assets) 30+ days past due 0.31% 0.33% 0.32% 0.58% 0.67% 0.81% Non-accrual 0.54% 0.47% 0.45% 0.38% 0.94% 0.78% ---- ---- ---- ---- ---- ---- Total Past Due 0.85% 0.80% 0.77% 0.96% 1.61% 1.59% IBERIABANK fsb 30+ days past due 1.85% 1.73% 1.09% 1.12% 0.88% 0.60% Non-accrual 2.12% 1.68% 2.45% 2.78% 2.42% 2.26% ---- ---- ---- ---- ---- ---- Total Past Due 3.97% 3.41% 3.54% 3.90% 3.30% 2.86% Consolidated (Ex-FDIC Covered Assets) 30+ days past due 0.65% 0.64% 0.50% 0.72% 0.73% 0.77% Non-accrual 0.90% 0.74% 0.92% 0.97% 1.31% 1.13% ---- ---- ---- ---- ---- ---- Total Past Due 1.55% 1.38% 1.42% 1.69% 2.04% 1.90% -------------- ---- ---- ---- ---- ---- ---- CapitalSouth Only 30+ days past due 7.62% 7.59% 10.01% 9.78% Non-accrual 24.64% 29.68% 23.97% 26.19% ----- ----- ----- ----- Total Past Due 32.26% 37.27% 33.98% 35.97% Orion Only 30+ days past due 16.54% 8.56% 12.49% Non-accrual 57.58% 59.86% 41.73% ----- ----- ----- Total Past Due 74.12% 68.42% 54.22% Century Only 30+ days past due 10.52% 10.81% 11.79% Non-accrual 53.50% 43.73% 45.10% ----- ----- ----- Total Past Due 64.02% 54.54% 56.89% Consolidated With FDIC Covered Assets 30+ days past due 1.08% 4.37% 3.09% 3.69% Non-accrual 2.87% 15.45% 14.23% 11.32% ---- ----- ----- ----- Total Past Due 3.95% 19.82% 17.32% 15.01% -------------- ---- ----- ----- -----
At June 30, 2010, the allowance for loan losses was 1.67%, up compared to 1.11% at March 31, 2010. In accordance with generally accepted accounting principles, the assets acquired in the FDIC-assisted transactions were marked to market at consummation, including estimated loan impairment. Excluding the acquired loans, the Company's ratio of loan loss reserves to loans decreased from 1.53% at March 31, 2010 to 1.52% at June 30, 2010. On June 8, 2010, the Company issued a press release outlining the Company's limited exposure to the Deepwater Horizon oil spill disaster. To date, the Company has recorded no special reserves or incurred any charge-offs associated with the loans described in that press release.
The Company reported net charge-offs of $6 million in the second quarter of 2010, compared to $5 million in the first quarter of 2010. The ratio of net charge-offs to average loans was 0.44% in the second quarter of 2010, compared to 0.36% in the first quarter of 2010. The Company recorded a $13 million loan loss provision in the second quarter of 2010, similar to the level recorded in the first quarter of 2010 and covered net charge-offs by 2.1 times. Management considers the loan loss reserve adequate to absorb credit losses inherent in the loan portfolio at June 30, 2010.
Investments
Total investment securities increased $209 million, or 14%, to $1.7 billion during the second quarter of 2010. As a percentage of total assets, the investment portfolio increased from 15% at March 31, 2010 to 17% at June 30, 2010. The investment portfolio had a modified duration of 2.7 years at June 30, 2010, compared to 2.8 years at March 31, 2010. The unrealized gain in the investment portfolio increased $18 million, or 86%, from $20 million at March 31, 2010 to $38 million at June 30, 2010. Based on projected prepayment speeds and other assumptions at June 30, 2010, the portfolio was expected to generate approximately $732 million in cash flows, or about 43% of the portfolio, over the next 18 months. The average yield on investment securities decreased 16 basis points on a linked quarter basis, to 3.23% in the second quarter of 2010. The Company holds in its investment portfolio primarily government agency and municipal securities.
Capital Position
The Company maintains strong capital ratios compared to peers. The equity-to-assets ratio was 12.51% at June 30, 2010, compared to 12.43% at March 31, 2010. At June 30, 2010, the Company reported a tangible common equity ratio of 10.28%, compared to 10.19% at March 31, 2010 and 7.44% one year ago. The Company's Tier 1 leverage ratio was 11.15%, compared to 11.64% at March 31, 2010 and 9.24% one year ago. The Company's total risk based capital ratio was 21.72%, compared to 19.82% at March 31, 2010 and 13.54% one year ago. The Company's tangible common equity to risk weighted assets ratio was 18.60%, compared to 16.99% at March 31, 2010, and 9.76% one year ago.
Regulatory Capital Ratios At June 30, 2010 Well IBERIABANK Capital Ratio Capitalized IBERIABANK IBERIABANK fsb Corporation ------------- ----------- ---------- -------------- ----------- Tier 1 Leverage 5.00% 7.71% 9.64% 11.15% Tier 1 Risk Based 6.00% 15.04% 12.41% 20.02% Total Risk Based 10.00% 16.88% 13.65% 21.72% ---------- ----- ----- ----- -----
At June 30, 2010, book value per share was $48.31, up $0.02, compared to March 31, 2010, and up 17% compared to one year ago. Tangible book value per share improved $0.11 over that period to $38.71, and up 54% compared to one year ago.
On June 21, 2010, the Company declared a quarterly cash dividend of $0.34 per share. This dividend level equated to an annualized dividend rate of $1.36 per share and an indicated dividend yield of 2.74%, based on the closing stock price of the Company's common stock on July 21, 2010 of $49.68 per share. This price equated to 1.03 times June 30, 2010 book value per share of $48.31 and 1.28 times tangible book value per share of $38.71.
Interest Rate Risk Position
The Company's interest rate risk modeling at June 30, 2010 indicated the Company is asset sensitive over a 12-month time frame. A 100 basis point instantaneous and parallel upward shift in interest rates is estimated to increase net interest income over 12 months by approximately 10.0%. Similarly, a 100 basis point decrease in interest rates is expected to decrease net interest income by approximately 1.6%. At June 30, 2010, approximately 51% of the Company's loan portfolio had fixed interest rates. Eliminating fixed rate loans that mature within a one-year time frame reduces this percentage to 48%. Approximately 70% of the Company's time deposit base will re-price within 12 months from June 30, 2010.
Operating Results
The Company's average excess liquidity position increased from approximately $543 million to $1.1 billion on a linked quarter basis, and placed increasing pressure on the yield on earning assets. The average earning asset yield decreased seven basis points, while the cost of interest bearing deposits and liabilities increased 10 and nine basis points, respectively. As a result, the net interest spread and margin declined 15 and 11 basis points, respectively, on a linked quarter basis. Tax-equivalent net interest income increased $2 million, or 2% on a linked quarter basis, as average earning assets increased $391 million, or 4%, on a linked quarter basis.
Quarterly Average Yields/Cost (Taxable Equivalent Basis) -------------------------------------------------------- 2Q09 3Q09 4Q09 1Q10 2Q10 ---- ---- ---- ---- ---- Earning Asset Yield 4.99% 4.67% 4.64% 4.45% 4.38% Cost Of Int- Bearing Liabs 2.12% 1.96% 1.74% 1.47% 1.56% ---- ---- ---- ---- ---- Net Interest Spread 2.87% 2.70% 2.90% 2.97% 2.82% Net Interest Margin 3.17% 3.03% 3.13% 3.16% 3.05% ---- ---- ---- ---- ----
Aggregate noninterest income increased $2 million, or 8%, on a linked quarter basis. The primary changes on a linked quarter basis were a $4 million gain recognized on completion of the Orion Bank and Century Bank transactions in the first quarter of 2010, compared to none in the second quarter of 2010, and a $3 million increase in gains on the sale of mortgage loans on a linked quarter basis.
The Company's mortgage origination business experienced substantial strength in the second quarter of 2010. The Company originated $442 million in mortgage loans during the second quarter of 2010, up $147 million, or 50%, on a linked quarter basis. Client loan refinancing opportunities accounted for approximately 27% of mortgage loan applications in the second quarter of 2010, and approximately 40% in July 2010. The Company sold $400 million in mortgage loans during this period, up $113 million, or 39%, compared to the first quarter of 2010. Sales margins improved on a linked quarter basis. Gains on the sale of mortgage loans totaled $11 million in the second quarter of 2010, an increase of $3 million, or 44%, on a linked quarter basis. The mortgage pipeline was approximately $158 million at June 30, 2010, and has since risen to approximately $197 million at July 16, 2010.
Noninterest expense increased $9 million, or 13%, on a linked quarter basis. In aggregate, one-time merger-related costs totaled $4 million in the second quarter of 2010, compared to $2 million in the first quarter, or an increase of $2 million. Salaries and benefits expense increased $4 million, or 11%, on a linked quarter basis (this category includes mortgage commission expense). Other significant increases were in occupancy and equipment, computer service expense, and OREO expense. The combined tangible efficiency ratio of the Company's bank subsidiaries was approximately 60.3% in the second quarter of 2010.
IBERIABANK Corporation
IBERIABANK Corporation is a multi-bank financial holding company with 214 combined offices, including 134 bank branch offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, and Florida, 26 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 54 locations in 12 states.
The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC." The Company's market capitalization was approximately $1.3 billion, based on the NASDAQ closing stock price on July 21, 2010.
The following twelve investment firms currently provide equity research coverage on IBERIABANK Corporation:
-- B. Riley & Company -- FIG Partners, LLC -- Howe Barnes Hoefer & Arnett, Inc. -- Keefe, Bruyette & Woods -- Raymond James & Associates, Inc. -- Robert W. Baird & Company -- Soleil Securities Corporation/Tenner Investment Research -- Stephens, Inc. -- Sterne, Agee & Leach -- Stifel Nicolaus & Company -- SunTrust Robinson-Humphrey -- Wunderlich Securities Conference Call
In association with this earnings release, the Company will host a live conference call to discuss the financial results for the quarter just completed. The telephone conference call will be held on Thursday, July 22, 2010, beginning at 8:30 a.m. Central Time by dialing 1-800-398-9397. The confirmation code for the call is 165113. A replay of the call will be available until midnight Central Time on July 29, 2010 by dialing 1-800-475-6701. The confirmation code for the replay is 165113. 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, http://www.iberiabank.com/, under "Investor Relations" and then "Presentations."
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with GAAP. The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or nonrecurring transactions. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP disclosures are included as tables at the end of this release.
Forward Looking Statements
To the extent that statements in this press release relate to future plans, objectives, financial results or performance of IBERIABANK Corporation, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which are based on management's current information, estimates and assumptions and the current economic environment, are generally identified by the use of the words "plan", "believe", "expect", "intend", "anticipate", "estimate", "project" or similar expressions. IBERIABANK Corporation's actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties.
Actual results could differ materially because of factors such as the current level of market volatility and our ability to execute our growth strategy, including the availability of future FDIC-assisted failed bank opportunities, unanticipated losses related to the integration of, and accounting for, acquired businesses and assets and assumed liabilities in FDIC-assisted transactions, adjustments of fair values of acquired assets and assumed liabilities and of deferred taxes in FDIC-assisted acquisitions, credit risk of our customers, effects of the on-going correction in residential real estate prices and reduced levels of home sales, sufficiency of our allowance for loan losses, changes in interest rates, access to funding sources, reliance on the services of executive management, competition for loans, deposits and investment dollars, reputational risk and social factors, changes in government regulations and legislation, increases in FDIC insurance assessments, geographic concentration of our markets and economic conditions in these markets, rapid changes in the financial services industry, dependence on our operational, technological, and organizational infrastructure, hurricanes and other adverse weather events, the volatility and low trading volume of our common stock, and valuation of intangible assets. These and other factors that may cause actual results to differ materially from these forward-looking statements are discussed in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission, available at the SEC's website, http://www.sec.gov/, and the Company's website, http://www.iberiabank.com/. All information in this release is as of the date of this release. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
IBERIABANK CORPORATION FINANCIAL HIGHLIGHTS For The Quarter Ended June 30, -------- 2010 2009 % Change ---- ---- -------- Income Data (in thousands): Net Interest Income $70,139 $38,276 83% Net Interest Income (TE)(1) 72,730 39,694 83% Net Income 8,840 8,474 4% Earnings Available to Common Shareholders- Basic 8,840 8,474 4% Earnings Available to Common Shareholders- Diluted 8,651 8,224 5% Per Share Data: Earnings Available to Common Shareholders -Basic $0.33 $0.53 (38%) Earnings Available to Common Shareholders -Diluted 0.33 0.52 (37%) Book Value Per Common Share 48.31 41.13 17% Tangible Book Value Per Common Share (2) 38.71 25.12 54% Cash Dividends 0.34 0.34 - Number of Shares Outstanding: Basic Shares (Average) 26,804,334 16,044,634 67% Diluted Shares (Average) 26,506,308 15,793,002 68% Book Value Shares (Period End) (3) 26,865,543 16,140,608 66% Key Ratios: (4) Return on Average Assets 0.34% 0.61% Return on Average Common Equity 2.73% 5.11% Return on Average Tangible Common Equity (2) 3.73% 8.75% Net Interest Margin (TE) (1) 3.05% 3.17% Efficiency Ratio 75.1% 70.9% Tangible Efficiency Ratio (TE) (1) (2) 71.8% 68.2% Average Loans to Average Deposits 70.6% 91.7% Nonperforming Assets to Total Assets (5) 7.63% 1.04% Allowance for Loan Losses to Loans 1.67% 1.21% Net Charge-offs to Average Loans 0.44% 0.33% Average Equity to Average Total Assets 12.56% 11.86% Tier 1 Leverage Ratio 11.15% 9.24% Common Stock Dividend Payout Ratio 103.3% 64.8% Tangible Common Equity Ratio 10.28% 7.44% Tangible Common Equity to Risk- Weighted Assets 18.60% 9.76% For The Quarter Ended March 31, --------- 2010 % Change ---- -------- Income Data (in thousands): Net Interest Income $69,206 1% Net Interest Income (TE)(1) 71,039 2% Net Income 13,004 (32%) Earnings Available to Common Shareholders- Basic 13,004 (32%) Earnings Available to Common Shareholders- Diluted 12,752 (32%) Per Share Data: Earnings Available to Common Shareholders - Basic $0.60 (45%) Earnings Available to Common Shareholders - Diluted 0.59 (44%) Book Value Per Common Share 48.29 0% Tangible Book Value Per Common Share (2) 38.60 0% Cash Dividends 0.34 - Number of Shares Outstanding: Basic Shares (Average) 21,928,397 22% Diluted Shares (Average) 21,690,564 22% Book Value Shares (Period End) (3) 26,753,464 0% Key Ratios: (4) Return on Average Assets 0.53% Return on Average Common Equity 4.98% Return on Average Tangible Common Equity (2) 6.94% Net Interest Margin (TE) (1) 3.16% Efficiency Ratio 68.7% Tangible Efficiency Ratio (TE) (1) (2) 66.1% Average Loans to Average Deposits 74.4% Nonperforming Assets to Total Assets (5) 8.91% Allowance for Loan Losses to Loans 1.11% Net Charge-offs to Average Loans 0.36% Average Equity to Average Total Assets 10.72% Tier 1 Leverage Ratio 11.64% Common Stock Dividend Payout Ratio 69.9% Tangible Common Equity Ratio 10.19% Tangible Common Equity to Risk-Weighted Assets 16.99% (1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%. (2) Tangible calculations eliminate the effect of goodwill and acquisition related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable. (3) Shares used for book value purposes exclude shares held in treasury at the end of the period. (4) All ratios are calculated on an annualized basis for the period indicated. (5) Nonperforming assets consist of nonaccruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets. IBERIABANK CORPORATION CONDENSED CONSOLIDATED FINANCIAL INFORMATION (dollars in thousands except per share data) BALANCE SHEET (End of Period) June 30, ------------------------------ -------- 2010 2009 % Change ---- ---- -------- ASSETS ------ Cash and Due From Banks $93,531 $149,863 (37.6%) Interest-bearing Deposits in Banks 1,031,205 41,482 2385.9% --------- ------ ------ Total Cash and Equivalents 1,124,736 191,345 487.8% Investment Securities Available for Sale 1,441,994 916,883 57.3% Investment Securities Held to Maturity 305,629 106,505 187.0% ------- ------- ----- Total Investment Securities 1,747,623 1,023,388 70.8% Mortgage Loans Held for Sale 114,914 90,109 27.5% Loans, Net of Unearned Income 5,760,550 3,829,326 50.4% Allowance for Loan Losses (96,000) (46,329) 107.2% ------- ------- ----- Loans, net 5,664,550 3,782,997 49.7% Loss Share Receivable 822,858 100.0% Premises and Equipment 195,454 130,558 49.7% Goodwill and Other Intangibles 257,875 258,437 (0.2%) Mortgage Servicing Rights 235 207 13.4% Other Assets 448,219 225,571 98.7% Total Assets $10,376,464 $5,702,612 82.0% =========== ========== ==== LIABILITIES AND SHAREHOLDERS' EQUITY --------------------- Noninterest-bearing Deposits $820,254 $576,042 42.4% Interest-bearing Deposits 7,253,657 3,596,853 101.7% Total Deposits 8,073,911 4,172,895 93.5% Short-term Borrowings 15,000 50,000 (70.0%) Securities Sold Under Agreements to Repurchase 184,969 206,964 (10.6%) Long-term Debt 586,130 538,161 8.9% Other Liabilities 218,625 74,018 195.4% ----- Total Liabilities 9,078,635 5,042,038 80.1% Total Shareholders' Equity 1,297,829 660,574 96.5% ---- Total Liabilities and Shareholders' Equity $10,376,464 $5,702,612 82.0% =========== ========== ==== For The Three Months Ended INCOME STATEMENT June 30, ---------------- -------- 2010 2009 % Change ---- ---- -------- Interest Income $101,217 $60,974 66.0% Interest Expense 31,078 22,698 36.9% ------ ------ ---- Net Interest Income 70,139 38,276 83.2% Provision for Loan Losses 12,899 7,783 65.7% ------ ----- ---- Net Interest Income After Provision for Loan Losses 57,240 30,493 87.7% Service Charges 6,376 5,479 16.4% ATM /Debit Card Fee Income 2,557 1,963 30.2% BOLI Proceeds and Cash Surrender Value Income 717 720 (0.4%) Gain on Acquisition - - - Gain on Sale of Loans, net 10,625 10,808 (1.7%) Gain (Loss) on Sale of Investments, net 60 5,879 (99.0%) Title Revenue 4,813 5,232 (8.0%) Broker Commissions 1,671 1,000 67.0% Other Noninterest Income 3,885 949 309.4% ----- --- ----- Total Noninterest Income 30,704 32,030 (4.1%) Salaries and Employee Benefits 39,578 26,652 48.5% Occupancy and Equipment 8,121 5,781 40.5% Amortization of Acquisition Intangibles 1,269 622 104.2% Other Noninterest Expense 26,807 16,759 60.0% ------ ------ ---- Total Noninterest Expense 75,775 49,814 52.1% Income Before Income Taxes 12,169 12,709 (4.2%) Income Taxes 3,329 4,235 (21.4%) ----- ----- ------- Net Income $8,840 $8,474 4.3% ====== ====== === Preferred Stock Dividends - - - === Earnings Available to Common Shareholders - Basic 8,840 8,474 4.3% ===== ===== === Earnings Allocated to Unvested Restricted Stock (189) (250) (24.6%) ======= Earnings Available to Common Shareholders - Diluted 8,651 8,224 5.2% ===== ===== === Earnings Per Share, diluted $0.33 $0.52 (37.3%) ===== ===== ======= BALANCE SHEET (End of Period) March 31, December 31, -------- 2010 2009 ---- ---- ASSETS ------ Cash and Due From Banks $95,849 $94,674 Interest- bearing Deposits in Banks 892,369 80,723 ------- ------ Total Cash and Equivalents 988,218 175,397 Investment Securities Available for Sale 1,301,185 1,320,476 Investment Securities Held to Maturity 237,551 260,361 ------- ------- Total Investment Securities 1,538,736 1,580,837 Mortgage Loans Held for Sale 74,225 66,945 Loans, Net of Unearned Income 5,739,322 5,784,365 Allowance for Loan Losses (63,875) (55,768) ------- ------- Loans, net 5,675,447 5,728,597 Loss Share Receivable 917,246 1,034,734 Premises and Equipment 142,961 137,426 Goodwill and Other Intangibles 259,144 260,144 Mortgage Servicing Rights 234 229 Other Assets 796,104 716,093 Total Assets $10,392,315 $9,700,402 =========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY ------------- Noninterest- bearing Deposits $825,486 $874,885 Interest- bearing Deposits 7,129,397 6,681,263 --------- --------- Total Deposits 7,954,883 7,556,148 Short- term Borrowings 25,000 90,000 Securities Sold Under Agreements to Repurchase 178,740 173,351 Long-term Debt 738,315 745,864 Other Liabilities 203,464 180,824 ------- ------- Total Liabilities 9,100,402 8,746,187 Total Shareholders' Equity 1,291,913 954,215 Total Liabilities and Shareholders' Equity $10,392,315 $9,700,402 =========== ========== For The Six Months Ended INCOME STATEMENT June 30, ---------- -------- 2010 2009 ---- ---- Interest Income $198,837 $121,295 Interest Expense 59,492 46,732 ------ ------ Net Interest Income 139,345 74,563 Provision for Loan Losses 26,100 10,815 ------ ------ Net Interest Income After Provision for Loan Losses 113,245 63,748 Service Charges 12,277 10,751 ATM / Debit Card Fee Income 4,882 3,677 BOLI Proceeds and Cash Surrender Value Income 1,426 1,433 Gain on Acquisition 3,781 - Gain on Sale of Loans, net 17,999 19,338 Gain (Loss) on Sale of Investments, net 983 5,882 Title Revenue 8,516 9,711 Broker Commissions 2,883 2,215 Other Noninterest Income 6,310 2,752 ----- ----- Total Noninterest Income 59,057 55,759 Salaries and Employee Benefits 75,390 50,879 Occupancy and Equipment 15,714 11,413 Amortization of Acquisition Intangibles 2,279 1,243 Other Noninterest Expense 49,392 30,071 ------ ------ Total Noninterest Expense 142,775 93,606 Income Before Income Taxes 29,527 25,901 Income Taxes 7,684 8,282 ----- ----- Net Income $21,843 $17,619 ======= ======= Preferred Stock Dividends (3,350) Earnings Available to Common Shareholders -Basic 21,843 14,269 ====== ====== Earnings Allocated to Unvested Restricted Stock (443) (414) Earnings Available to Common Shareholders -Diluted 21,400 13,855 ====== ====== Earnings Per Share, diluted $0.88 $0.88 ===== ===== IBERIABANK CORPORATION CONDENSED CONSOLIDATED FINANCIAL INFORMATION (dollars in thousands except per share data) For The Quarter Ended --------------------- BALANCE SHEET (Average) June 30, March 31, December 31, ----------------------- 2010 2010 2009 ---- ---- ---- ASSETS ------ Cash and Due From Banks $95,822 $92,145 $75,435 Interest-bearing Deposits in Banks 1,007,124 387,929 305,371 Investment Securities 1,617,372 1,569,301 1,327,579 Mortgage Loans Held for Sale 82,502 50,810 58,785 Loans, Net of Unearned Income 5,616,203 5,737,876 5,070,584 Allowance for Loan Losses (63,115) (55,133) (49,442) Loss Share Receivable 914,437 1,033,377 590,804 Other Assets 1,050,169 1,054,224 787,488 --------- --------- ------- Total Assets $10,320,514 $9,870,529 $8,166,604 =========== ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY --------------------- Noninterest-bearing Deposits $818,985 $824,959 $749,262 Interest-bearing Deposits 7,138,919 6,887,249 5,424,348 --------- --------- --------- Total Deposits 7,957,904 7,712,208 6,173,610 Short-term Borrowings 17,967 32,769 31,054 Securities Sold Under Agreements to Repurchase 176,357 168,303 188,339 Long-term Debt 639,923 736,458 681,789 Other Liabilities 231,875 162,675 174,133 ------- ------- ------- Total Liabilities 9,024,026 8,812,413 7,248,925 Total Shareholders' Equity 1,296,488 1,058,116 917,679 --------- --------- ------- Total Liabilities and Shareholders' Equity $10,320,514 $9,870,529 $8,166,604 =========== ========== ========== 2010 2009 ---- ---- Second First Fourth INCOME STATEMENT Quarter Quarter Quarter ---------------- ------- ------- ------- Interest Income $101,217 $97,620 $85,538 Interest Expense 31,078 28,414 27,982 ------ ------ ------ Net Interest Income 70,139 69,206 57,556 Provision for Loan Losses 12,899 13,201 9,260 ------ ------ ----- Net Interest Income After Provision for Loan Losses 57,240 56,005 48,296 Total Noninterest Income 30,704 28,353 196,353 Total Noninterest Expense 75,775 67,000 75,114 ------ ------ ------ Income Before Income Taxes 12,169 17,358 169,535 Income Taxes 3,329 4,354 60,633 ----- ----- ------ Net Income $8,840 $13,004 $108,902 ====== ======= ======== Preferred Stock Dividends - - - === === === Earnings Available to Common Shareholders - Basic $8,840 $13,004 $108,902 ====== ======= ======== Earnings Allocated to Unvested Restricted Stock (189) (252) (2,717) Earnings Available to Common Shareholders - Diluted $8,651 $12,752 $106,185 ====== ======= ======== Earnings Per Share, basic $0.33 $0.60 $5.27 ===== ===== ===== Earnings Per Share, diluted $0.33 $0.59 $5.23 ===== ===== ===== Book Value Per Share $48.31 $48.29 $46.04 ====== ====== ====== Return on Average Assets 0.34% 0.53% 5.29% Return on Average Common Equity 2.73% 4.98% 46.93% Return on Average Tangible Common Equity 3.73% 6.94% 66.25% For The Quarter Ended --------------------- BALANCE SHEET (Average) September 30, June 30, ----------------------- 2009 2009 ---- ---- ASSETS ------ Cash and Due From Banks $59,975 $78,939 Interest-bearing Deposits in Banks 299,591 61,115 Investment Securities 1,074,896 1,033,274 Mortgage Loans Held for Sale 60,350 89,298 Loans, Net of Unearned Income 4,049,351 3,788,273 Allowance for Loan Losses (45,711) (42,970) Loss Share Receivable 38,784 - Other Assets 592,455 585,001 ------- ------- Total Assets $6,129,691 $5,592,930 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY ----------------------------- Noninterest-bearing Deposits $583,229 $570,298 Interest-bearing Deposits 3,864,927 3,558,739 --------- --------- Total Deposits 4,448,156 4,129,037 Short-term Borrowings 2,174 22,489 Securities Sold Under Agreements to Repurchase 210,115 149,664 Long-term Debt 536,877 541,557 Other Liabilities 94,189 86,804 ------ ------ Total Liabilities 5,291,511 4,929,551 Total Shareholders' Equity 838,180 663,379 ------- ------- Total Liabilities and Shareholders' Equity $6,129,691 $5,592,930 ========== ========== 2009 ---- Third Second INCOME STATEMENT Quarter Quarter ---------------- ------- ------- Interest Income $63,554 $60,974 Interest Expense 22,888 22,698 ------ ------ Net Interest Income 40,666 38,276 Provision for Loan Losses 25,295 7,783 ------ ----- Net Interest Income After Provision for Loan Losses 15,371 30,493 Total Noninterest Income 80,874 32,030 Total Noninterest Expense 54,540 49,814 ------ ------ Income Before Income Taxes 41,705 12,709 Income Taxes 16,976 4,235 ------ ----- Net Income $24,729 $8,474 ======= ====== Preferred Stock Dividends - - === === Earnings Available to Common Shareholders -Basic $24,729 $8,474 ======= ====== Earnings Allocated to Unvested Restricted Stock (603) (250) Earnings Available to Common Shareholders -Diluted $24,126 $8,224 ======= ====== Earnings Per Share, basic $1.22 $0.53 ===== ===== Earnings Per Share, diluted $1.21 $0.52 ===== ===== Book Value Per Share $41.41 $41.13 ====== ====== Return on Average Assets 1.60% 0.61% Return on Average Common Equity 11.66% 5.11% Return on Average Tangible Common Equity 17.10% 8.75% IBERIABANK CORPORATION CONDENSED CONSOLIDATED FINANCIAL INFORMATION (dollars in thousands) LOANS RECEIVABLE June 30, ---------------- -------- 2010 2009 % Change ---- ---- -------- Residential Mortgage Loans: Residential 1-4 Family $767,502 $453,807 69.1% Construction/ Owner Occupied 23,251 23,768 (2.2%) ------ ------ ------ Total Residential Mortgage Loans 790,753 477,575 65.6% Commercial Loans: Real Estate 2,484,828 1,584,791 56.8% Business 1,348,217 847,017 59.2% --------- ------- ---- Total Commercial Loans 3,833,045 2,431,808 57.6% Consumer Loans: Indirect Automobile 268,936 270,188 (0.5%) Home Equity 722,272 507,619 42.3% Automobile 30,640 29,685 3.2% Credit Card Loans 42,301 40,403 4.7% Other 72,603 72,048 0.8% Total Consumer Loans 1,136,752 919,943 23.6% --------- ------- ---- Total Loans Receivable 5,760,550 3,829,326 50.4% ==== Allowance for Loan Losses (96,000) (46,329) ------- ------- Loans Receivable, Net $5,664,550 $3,782,997 ========== ========== ASSET QUALITY DATA June 30, ------------------ -------- 2010 2009 % Change ---- ---- -------- Nonaccrual Loans $652,359 $28,519 2103.2% Foreclosed Assets 12 19 (35.6%) Other Real Estate Owned 45,831 17,333 164.4% Accruing Loans More Than 90 Days Past Due 93,712 13,259 606.8% Total Nonperforming Assets $791,914 $59,130 1198.6% ======== ======= ====== Nonperforming Assets to Total Assets 7.63% 1.04% 613.7% Nonperforming Assets to Total Loans and OREO 13.6% 1.54% 760.3% Allowance for Loan Losses to Nonperforming Loans (1) 12.9% 110.9% (88.0%) Allowance for Loan Losses to Nonperforming Assets 12.1% 78.4% (84.0%) Allowance for Loan Losses to Total Loans 1.67% 1.21% 37.7% Year to Date Charge-offs $14,596 $6,426 127.1% Year to Date Recoveries (3,391) (1,068) 217.5% ------ ------ Year to Date Net Charge-offs $11,205 $5,358 109.1% ======= ====== ===== Quarter to Date Net Charge- offs $6,111 $3,116 96.1% ====== ====== ==== (1) Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due. DEPOSITS June 30, -------- -------- 2010 2009 % Change ---- ---- -------- Noninterest-bearing Demand Accounts $820,254 $576,042 42.4% NOW Accounts 1,333,120 947,963 40.6% Savings and Money Market Accounts 2,808,412 1,127,996 149.0% Certificates of Deposit 3,112,125 1,520,894 104.6% Total Deposits $8,073,911 $4,172,895 93.5% ========== ========== ==== LOANS RECEIVABLE March 31, December 31, ---------------- 2010 2009 ---- ---- Residential Mortgage Loans: Residential 1-4 Family $953,425 $975,395 Construction/ Owner Occupied 25,516 32,857 Total Residential Mortgage Loans 978,941 1,008,252 Commercial Loans: Real Estate 2,488,277 2,500,433 Business 1,221,563 1,217,326 Total Commercial Loans 3,709,840 3,717,759 Consumer Loans: Indirect Automobile 260,470 259,339 Home Equity 643,891 649,821 Automobile 30,483 30,552 Credit Card Loans 41,738 44,561 Other 73,959 74,081 Total Consumer Loans 1,050,541 1,058,354 Total Loans Receivable 5,739,322 5,784,365 Allowance for Loan Losses (63,875) (55,768) ------- ------- Loans Receivable, Net $5,675,447 $5,728,597 ========== ========== ASSET QUALITY DATA March 31, December 31, ------------------ 2010 2009 ---- ---- Nonaccrual Loans $816,718 $893,441 Foreclosed Assets 15 35 Other Real Estate Owned 50,126 74,056 Accruing Loans More Than 90 Days Past Due 59,575 43,952 Total Nonperforming Assets $926,434 $1,011,485 ======== ========== Nonperforming Assets to Total Assets 8.91% 10.43% Nonperforming Assets to Total Loans and OREO 16.00% 17.27% Allowance for Loan Losses to Nonperforming Loans (1) 7.3% 5.9% Allowance for Loan Losses to Nonperforming Assets 6.9% 5.5% Allowance for Loan Losses to Total Loans 1.11% 0.96% Year to Date Charge-offs $6,809 $33,267 Year to Date Recoveries (1,715) $(2,646) ------ ------- Year to Date Net Charge-offs $5,094 $30,621 ====== ======= Quarter to Date Net Charge-offs $5,094 $2,283 ====== ====== (1) Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due. DEPOSITS March 31, December 31, -------- 2010 2009 ---- ---- Noninterest-bearing Demand Accounts $825,486 $874,885 NOW Accounts 1,407,066 1,351,609 Savings and Money Market Accounts 2,569,254 2,253,065 Certificates of Deposit 3,153,077 3,076,589 Total Deposits $7,954,883 $7,556,148 ========== ========== IBERIABANK CORPORATION CONDENSED CONSOLIDATED FINANCIAL INFORMATION Taxable Equivalent Basis (dollars in thousands) For The Quarter Ended --------------------- June 30, 2010 ------------- Average Average Yield/Rate Balance (%) ------- ----------- ASSETS Earning Assets: Loans Receivable: Mortgage Loans $902,597 7.26% Commercial Loans (TE) (1) 3,644,349 6.22% Consumer and Other Loans 1,069,257 6.81% ---- Total Loans 5,616,203 6.50% Mortgage Loans Held for Sale 82,502 4.65% Investment Securities (TE) (1)(2) 1,573,403 3.23% Other Earning Assets 2,088,590 0.16% ---- Total Earning Assets 9,360,698 4.38% Allowance for Loan Losses (63,115) Nonearning Assets 1,022,931 Total Assets $10,320,514 =========== LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ Interest-bearing liabilities Deposits: NOW Accounts $1,347,510 0.74% Savings and Money Market Accounts 2,678,399 1.54% Certificates of Deposit 3,113,010 1.71% ---- Total Interest-bearing Deposits 7,138,919 1.46% Short-term Borrowings 194,324 0.40% Long-term Debt 639,923 3.01% ---- Total Interest-bearing Liabilities 7,973,166 1.56% Noninterest-bearing Demand Deposits 818,985 Noninterest-bearing Liabilities 231,875 Total Liabilities 9,024,026 Shareholders' Equity 1,296,488 Total Liabilities and Shareholders' Equity $10,320,514 =========== Net Interest Spread $70,139 2.82% Tax-equivalent Benefit 2,591 0.08% Net Interest Income (TE) /Net Interest Margin (TE) (1) $72,730 3.05% For The Quarter Ended --------------------- March 31, 2010 -------------- Average Average Yield/Rate Balance (%) ------- ----------- ASSETS Earning Assets: Loans Receivable: Mortgage Loans $992,178 5.78% Commercial Loans (TE) (1) 3,695,589 5.69% Consumer and Other Loans 1,050,109 6.49% ---- Total Loans 5,737,876 5.85% Mortgage Loans Held for Sale 50,810 4.69% Investment Securities (TE) (1)(2) 1,541,471 3.39% Other Earning Assets 1,639,602 0.08% ---- Total Earning Assets 8,969,759 4.45% Allowance for Loan Losses (55,133) Nonearning Assets 955,903 Total Assets $9,870,529 ========== LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ Interest-bearing liabilities Deposits: NOW Accounts $1,396,948 0.75% Savings and Money Market Accounts 2,413,163 1.64% Certificates of Deposit 3,077,138 1.41% ---- Total Interest-bearing Deposits 6,887,249 1.36% Short-term Borrowings 201,072 0.39% Long-term Debt 736,458 2.81% ---- Total Interest-bearing Liabilities 7,824,779 1.47% Noninterest-bearing Demand Deposits 824,959 Noninterest-bearing Liabilities 162,675 Total Liabilities 8,812,413 Shareholders' Equity 1,058,116 Total Liabilities and Shareholders' Equity $9,870,529 ========== Net Interest Spread $69,206 2.97% Tax-equivalent Benefit 1,833 0.08% Net Interest Income (TE) /Net Interest Margin (TE) (1) $71,039 3.16% For The Quarter Ended --------------------- June 30, 2009 ------------- Average Average Balance Yield/Rate (%) ------- -------------- ASSETS Earning Assets: Loans Receivable: Mortgage Loans $492,293 5.65% Commercial Loans (TE) (1) 2,383,784 4.68% Consumer and Other Loans 912,196 6.49% ---- Total Loans 3,788,273 5.24% Mortgage Loans Held for Sale 89,298 4.74% Investment Securities (TE) (1)(2) 1,006,051 4.47% Other Earning Assets 95,881 0.82% ---- Total Earning Assets 4,979,503 4.99% Allowance for Loan Losses (42,970) Nonearning Assets 656,397 Total Assets $5,592,930 ========== LIABILITIES AND SHAREHOLDERS' EQUITY ----------------------------- Interest-bearing liabilities Deposits: NOW Accounts $947,363 0.86% Savings and Money Market Accounts 1,101,165 1.43% Certificates of Deposit 1,510,211 2.88% ---- Total Interest-bearing Deposits 3,558,739 1.90% Short-term Borrowings 172,153 0.71% Long-term Debt 541,557 4.07% ---- Total Interest-bearing Liabilities 4,272,449 2.12% Noninterest-bearing Demand Deposits 570,298 Noninterest-bearing Liabilities 86,804 Total Liabilities 4,929,551 Shareholders' Equity 663,379 Total Liabilities and Shareholders' Equity $5,592,930 ========== Net Interest Spread $38,276 2.87% Tax-equivalent Benefit 1,418 0.11% Net Interest Income (TE) /Net Interest Margin (TE) (1) $39,694 3.17% (1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%. (2) Balances exclude unrealized gain or loss on securities available for sale and impact of trade date accounting. IBERIABANK CORPORATION CONDENSED CONSOLIDATED FINANCIAL INFORMATION Taxable Equivalent Basis (dollars in thousands) For The Six Months Ended ------------------------ June 30, 2010 ------------- Average Average Balance Yield/Rate (%) ------- -------------- ASSETS ------ Earning Assets: Loans Receivable: Mortgage Loans $947,300 6.49% Commercial Loans (TE) (1) 3,670,920 5.95% Consumer and Other Loans 1,059,835 6.65% ---- Total Loans 5,678,055 6.17% Mortgage Loans Held for Sale 66,744 4.66% Investment Securities (TE) (1)(2) 1,557,201 3.31% Other Earning Assets 1,870,318 0.13% ---- Total Earning Assets 9,172,318 4.41% Allowance for Loan Losses (59,022) Nonearning Assets 988,139 Total Assets $10,101,435 =========== LIABILITIES AND SHAREHOLDERS' EQUITY ----------------------------- Interest-bearing Liabilities Deposits: NOW Accounts $1,372,092 0.74% Savings and Money Market Accounts 2,540,867 1.59% Certificates of Deposit 3,096,390 1.56% ---- Total Interest-bearing Deposits 7,009,349 1.41% Short-term Borrowings 197,853 0.39% Long-term Debt 687,924 2.90% ---- Total Interest-bearing Liabilities 7,895,126 1.52% Noninterest-bearing Demand Deposits 821,956 Noninterest-bearing Liabilities 206,809 ------- Total Liabilities 8,923,891 Shareholders' Equity 1,177,544 Total Liabilities and Shareholders' Equity $10,101,435 =========== Net Interest Spread $139,345 2.89% Tax-equivalent Benefit 4,424 0.08% Net Interest Income (TE) / Net Interest Margin (TE) (1) $143,769 3.10% For The Six Months Ended ------------------------ June 30, 2009 ------------- Average Average Balance Yield/Rate (%) ------- -------------- ASSETS ------ Earning Assets: Loans Receivable: Mortgage Loans $506,657 5.65% Commercial Loans (TE) (1) 2,349,946 4.68% Consumer and Other Loans 909,175 6.56% ---- Total Loans 3,765,778 5.26% Mortgage Loans Held for Sale 85,624 4.76% Investment Securities (TE) (1)(2) 987,211 4.54% Other Earning Assets 137,499 0.62% ---- Total Earning Assets 4,976,112 4.98% Allowance for Loan Losses (41,847) Nonearning Assets 649,446 Total Assets $5,583,711 ========== LIABILITIES AND SHAREHOLDERS' EQUITY --------------------- Interest-bearing Liabilities Deposits: NOW Accounts $928,920 0.88% Savings and Money Market Accounts 1,054,342 1.48% Certificates of Deposit 1,527,308 3.02% ---- Total Interest-bearing Deposits 3,510,570 1.99% Short-term Borrowings 179,508 0.77% Long-term Debt 547,167 4.13% ---- Total Interest-bearing Liabilities 4,237,245 2.22% Noninterest-bearing Demand Deposits 562,328 Noninterest-bearing Liabilities 80,758 ------ Total Liabilities 4,880,331 Shareholders' Equity 703,380 Total Liabilities and Shareholders' Equity $5,583,711 ========== Net Interest Spread $74,563 2.77% Tax-equivalent Benefit 2,755 0.11% Net Interest Income (TE) /Net Interest Margin (TE) (1) $77,318 3.10% (1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%. (2) Balances exclude unrealized gain or loss on securities available for sale and impact of trade date accounting. IBERIABANK CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (dollars in thousands) For The Quarter Ended --------------------- 6/30/2010 3/31/2010 6/30/2009 --------- --------- --------- Net Interest Income $70,139 $69,206 $38,276 Effect of Tax Benefit on Interest Income 2,591 1,833 1,418 Net Interest Income (TE) (1) 72,730 71,039 39,694 ------ ------ ------ Noninterest Income 30,704 28,353 32,030 Effect of Tax Benefit on Noninterest Income 386 382 388 Noninterest Income (TE) (1) 31,090 28,735 32,418 ------ ------ ------ Total Revenues (TE) (1) $103,820 $99,774 $72,112 ======== ======= ======= Total Noninterest Expense $75,775 $67,000 $49,814 Less Intangible Amortization Expense (1,269) (1,010) (622) ------ ------ ---- Tangible Operating Expense (2) $74,506 $65,990 $49,192 ======= ======= ======= Return on Average Common Equity 2.73% 4.98% 5.11% Effect of Intangibles (2) 1.00% 1.96% 3.64% ---- ---- ---- Return on Average Tangible Common Equity (2) 3.73% 6.94% 8.75% ==== ==== ==== Efficiency Ratio 75.1% 68.7% 70.9% Effect of Tax Benefit Related to Tax Exempt Income (2.1%) (1.5%) (1.8%) ------ ------ ------ Efficiency Ratio (TE) (1) 73.0% 67.2% 69.1% Effect of Amortization of Intangibles (1.2%) (1.1%) (0.9%) ------ ------ ------ Tangible Efficiency Ratio (TE) (1) (2) 71.8% 66.1% 68.2% ==== ==== ==== (1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%. (2) Tangible calculations eliminate the effect of goodwill and acquisition related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable.
IBERIABANK Corporation
CONTACT: Daryl G. Byrd, President and CEO, +1-337-521-4003, or John R.
Davis, Senior Executive Vice President, +1-337-521-4005, both of IBERIABANK
Corporation
Web Site: http://www.iberiabank.com/
