EX-99.1 2 dex991.htm PRESS RELEASE DATED JULY 20, 2005 Press Release dated July 20, 2005

Exhibit 99.1

 

LOGO

 

FOR IMMEDIATE RELEASE

July 20, 2005

 

Contact:

Daryl G. Byrd, President and CEO (337) 521-4003

John R. Davis, Senior Executive Vice President (337) 521-4005

 

IBERIABANK Corporation Reports Record Second Quarter Earnings

 

LAFAYETTE, LOUISIANA — IBERIABANK Corporation (NASDAQ: IBKC), the holding company of the 118-year-old IBERIABANK (http://www.iberiabank.com), announced earnings of $8.1 million for the quarter ended June 30, 2005, a 25% increase over the same period in 2004, and an 11% increase compared to the first quarter of 2005 (“linked quarter basis”). The Company earned $1.03 per diluted share for the quarter, up 17% from the same period in 2004, and up 9% on a linked quarter basis.

 

The acquisition of American Horizons Bancorp, Inc. (“American Horizons”) was completed on January 31, 2005. The financial results prior to this date were not influenced by the acquisition, the first quarter of 2005 had a partial impact of two months including one-time merger related charges of $0.4 million on an after-tax basis, or $0.06 per share, and the second quarter of 2005 had the full effect of the acquisition. Excluding the one-time merger related charges in the first quarter of 2005, the Company reported net income of $15.9 million for the six-month period ended June 30, 2005, up 22% compared to the six-month period ended June 30, 2004. On the same basis, fully diluted earnings per share (“EPS”) for the first six months of 2005 were $2.03, up 14% compared to the same period in 2004.

 

Additional Highlights For The Quarter Ended June 30, 2005

 

  •   Total assets were $2.7 billion at June 30, 2005, up 15% compared to one year ago. Similarly, compared to one year ago, total deposits were $2.0 billion, up 13% and total loans were $1.8 billion, up 20%. The Company experienced tempered loan growth due to portfolio management activities associated with the American Horizons acquisition and moderate internal growth.

 

  •   Tax-equivalent net interest margin was 3.54%, down two basis points compared to 3.56% in the first quarter of 2005. The yield on average earning assets climbed 12 basis points, and the cost of interest-bearing liabilities increased 17 basis points. Average non-interest bearing demand deposits increased 10% on a linked quarter basis.

 

  •   For the second quarter of 2005, return on average assets (“ROA”) was 1.20%, return on average equity (“ROE”) was 12.22% and return on average tangible equity was 20.26%.

 

  •   Nonperforming assets (“NPAs”) decreased by $0.4 million, or 6%, between March 31, 2005 and June 30, 2005. NPAs as a percentage of total assets were 0.27% at June 30, 2005 compared to 0.29% at March 31, 2005, and 0.21% one year ago. At June 30, 2005, coverage ratios of nonperforming loans and nonperforming assets were 354% and 339%, respectively. During the second quarter of 2005, the provision for loan losses covered net charge-offs by 1.0 times.

 

  •   During the second quarter of 2005, the Company recorded security losses of $33,000 and mortgage loan gains of $0.5 million. Comparable figures for the first quarter of 2005 were gains of $5,000 and $0.6 million, respectively. For the fourth quarter of 2004, the comparable figures were gains of $0.3 million and $0.7 million, respectively.

 

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  •   Tier 1 leverage ratio was 7.61% at June 30, 2005, down 43 basis points from 8.04% at March 31, 2005, and up 49 basis points compared to one year ago. At June 30, 2005, the Company’s Tier 1 risk-based capital ratio was 11.01%, and total risk-based capital ratio was 12.27%.

 

  •   On June 20, 2005, the Company declared a quarterly cash dividend of $0.30 per share, an increase of 15% compared to the same quarter last year. Over the last twelve quarters, the Company has increased the quarterly cash dividend by 67%. The dividend payout ratio was 27.8% in the second quarter of 2005, compared to 29.4% in the first quarter of 2005 (27.8% excluding the one-time merger related charges associated with American Horizons).

 

  •   The Company completed a 175,000-share repurchase program on May 4, 2005, at an average cost of $59.04 per share. On May 4, 2005, the Company commenced a new share repurchase program totaling 300,000 shares. During the second quarter of 2005, the Company purchased 167,758 shares at an average cost of $59.03 per share under this program.

 

Daryl G. Byrd, President and CEO of IBERIABANK Corporation, remarked, “The American Horizons’ assimilation process in north Louisiana continues to progress very well.” Byrd commented, “Our north Louisiana franchise continued to expand with the recent naming of Mark Evans as President of the Shreveport market. Mark joined us from AmSouth Bank, where he was Commercial Sales Manager responsible for North and Central Louisiana, East Texas and South Arkansas.”

 

Total shareholders’ equity decreased $2 million, or 1%, compared to March 31, 2005, and increased nearly $60 million, or 29% compared to one year ago. At June 30, 2005 the Company’s equity-to-assets ratio was 9.74%, essentially unchanged compared to 9.73% at March 31, 2005 and up 105 basis points from 8.69% one year ago. Book value per share at June 30, 2005 was $35.00, up $0.45 per share or 1% compared to March 31, 2005 and up 18% compared to one year ago. Tangible book value per share increased 1% compared to March 31, 2005 and 9% compared to one year ago.

 

Loans And Deposits

 

Total loans remained essentially unchanged between March 31, 2005 and June 30, 2005. The Company regularly undergoes a credit portfolio review process, particularly as new credits are added in acquisitions. As a result of the portfolio management process undertaken after completion of the American Horizons acquisition and a few anticipated pay downs, loan growth was tempered during the quarter. The Company’s commercial loan pipeline remains extremely strong. In the quarter ended June 30, 2005, the yield on the commercial loan portfolio climbed 23 basis points on a linked quarter basis to 5.66%.

 

Residential mortgage loans increased $10 million, or 2% compared to March 31, 2005. The average yield on mortgage loans decreased two basis points on a linked quarter basis. Residential loans are comprised of construction loans, private banking mortgages, and retail permanent mortgage loans. Construction loans totaled $27 million, down 5% compared to March 31, 2005, and down 17% since year-end 2004. Private banking mortgages increased $12 million, or 9%, during the quarter. At June 30, 2005, the private banking mortgage portfolio had a weighted average coupon of 5.25% and a weighted average maturity of 16.4 years.

 

The volume of mortgage loan originations totaled $67 million in the second quarter of 2005, up 33% compared to the first quarter of 2005. The pipeline of mortgage loans in process at June 30, 2005 was $67 million compared to $60 million at March 31, 2005. During the second quarter of 2005, the Company sold into the secondary market $7 million in residential mortgage loans recently released from construction that were held in the loan portfolio compared to $13 million in the first quarter of 2005. These

 

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loan sales were part of the Company’s stated plans to sell into the secondary market recently originated, mortgage production, including permanent mortgage loans coming out of construction. Loan sale gains were approximately equal on a linked quarter basis at $0.5 million.

 

The Company experienced strong deposit growth in the first quarter of 2005, followed by a leveling off in the second quarter of 2005. The Company’s cost of average interest-bearing deposits increased 17 basis points on a linked quarter basis. The yield on average NOW accounts edged up 9 basis points, savings and money market products increased 28 basis points and the yield on average CDs increased 18 basis points.

 

Investment Portfolio And Funding

 

The investment portfolio totaled $580 million at June 30, 2005, a decline of $20 million or 3% compared to March 31, 2005. As a percentage of assets, the investment portfolio declined from 25% at June 30, 2004 to 22% at March 31, 2005, and 21% at June 30, 2005. The book yield on the investment portfolio remained unchanged on a linked quarter basis. Bond premium amortization was unchanged at $0.6 million in the second quarter of 2005, compared to the first quarter of 2005. Given general mortgage refinancing levels and anticipated prepayment speeds, management estimates premium amortization in the third quarter of 2005 may be at levels similar to the last three quarters.

 

The Company’s investment portfolio compressed and shortened significantly during the quarter. At June 30, 2005, the portfolio had a modified duration of 3.1 years compared to 3.5 years at March 31, 2005 and 3.6 years at December 31, 2004. The Company’s investment portfolio has very limited extension risk. Based on modeling at June 30, 2005, a parallel and instantaneous 300 basis point increase in interest rates would extend the portfolio by only 0.6 years. At current projected speeds, the portfolio is expected to generate approximately $146 million in cash flows over the next 18 months. The portfolio had an unrealized loss of $0.5 million at June 30, 2005 compared to $5.5 million at March 31, 2005, and an unrealized gain of $2.1 million at year-end 2004.

 

The Company regularly reviews the influence of interest rates on the Company’s profitability and earnings growth prospects. Asset/liability management modeling at June 30, 2005 indicated the Company’s interest rate risk position is fairly balanced. A 100 basis point instantaneous and parallel upward shift in interest rates would be estimated to increase net interest income over 12 months by 0.4%. Similarly, a 100 basis point decrease in interest rates would be expected to increase net interest income by 1.1%. The influence of a flattening yield curve, using the forward curve as a guide, would have an anticipated positive impact on net interest income of 0.7% compared to the base case scenario of no change in interest rates.

 

Asset Quality

 

Asset quality statistics remained outstanding at June 30, 2005 compared to peer levels. The Company believes that it uses a conservative definition of NPAs. The Company considers NPAs to include nonaccruing loans, accruing loans more than 90 days past due, foreclosed assets, and Other Real Estate Owned. NPAs amounted to $7.4 million at June 30, 2005, down $0.4 million compared to March 31, 2005. NPAs equated to 0.27% of total assets compared to 0.25% of total assets at year-end 2004. The allowance for loan losses was 1.37%, unchanged compared to March 31, 2005. The Company’s reserve coverage of NPAs was 339% at June 30, 2005 up from 320% at March 31, 2005. Loans past due 30 days or more (including nonaccruing loans) represented 0.82% of total loans at June 30, 2005 compared to 0.79% at March 31, 2005.

 

The ratio of net charge-offs to average loans was 0.14% in the second quarter of 2005 compared to 0.13% in the first quarter of 2005. The Company’s provision for loan losses was $630,000 in the second quarter of 2005, down slightly from $650,000 in the first quarter of 2005. The provision covered net charge-offs 1.0 times in the second quarter of 2005 compared to 1.1 times in the first quarter of 2005.

 

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Operating Results

 

Total tax-equivalent revenues increased $1.4 million, or 5%, on a linked quarter basis. Tax-equivalent net interest income increased $0.7 million, or 3%, between the two linked quarters. The Company’s tax-equivalent net interest margin declined two basis points on a linked quarter basis.

 

Noninterest income in the second quarter of 2005 increased $0.7 million, or 11% on a linked quarter basis. Service charge income on deposit accounts increased approximately $0.5 million, or 17%, on a linked quarter basis, primarily due to the American Horizons acquisition and an increase in NSF fee structure. The Company recorded a $0.2 million gain from the merger of Pulse and Discover networks in the first quarter of 2005. Management estimates nonrecurring items during the second quarter of 2005 had a net favorable impact of approximately $0.1 million on a pre-tax basis.

 

Noninterest expenses increased $0.4 million, or 2% on a linked quarter basis. Excluding one-time merger-related costs, the comparable figures were $1.0 million and 7%, respectively. The Company’s tax-equivalent tangible efficiency ratio (a measure of a bank’s operating efficiency) decreased from 55.6% in the first quarter of 2005 to 54.1% in the second quarter of 2005. Excluding one-time merger related costs, the tangible efficiency ratio in the first quarter of 2005 was 53.3%.

 

Management confirmed today that, exclusive of one-time merger related costs associated with the acquisition of American Horizons and the impact of potential costs associated with changes in accounting rules, the 2005 EPS comfort range for the Company remains $4.05 to $4.15 per fully diluted share. This EPS comfort range is based on management’s current information, estimates and assumptions. One fundamental assumption is the projected continuing flattening of the yield curve in 2005 as presented in current forward interest rate curves.

 

Based on a closing stock price on July 20, 2005 of $67.00 per share, the Company’s common stock traded at a price-to-earnings ratio of 16.5 times current average analyst estimates of $4.06 per fully diluted EPS for 2005, and 14.8 times average EPS estimates of $4.53 for 2006. In addition, the Company’s stock traded at 1.91 times June 30, 2005 book value per share of $35.00. On June 20, 2005, the Company declared a quarterly cash dividend of $0.30 per share, payable to shareholders of record as of June 30, 2005. This dividend level represented a 15% increase over the same period last year and equated to an annualized dividend rate of $1.20 per share and an indicated dividend yield of 1.79%.

 

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 21, 2005, beginning at 9:00 a.m. Central Time by dialing 1-877-209-0397. The confirmation code for the call is 784971. A replay of the call will be available until midnight Central Time on July 28, 2005 by dialing 1-800-475-6701. The confirmation code for the replay is 784971.

 

IBERIABANK Corporation is one of the oldest financial institutions with continuous operations in the State of Louisiana and soon to be the second largest Louisiana-based bank holding company. The Company operates 41 offices located in New Orleans, Baton Rouge, Shreveport, Northeast Louisiana, and the Acadiana region of Louisiana. Information regarding the Company can be obtained by visiting the Company’s website at www.iberiabank.com. The Company’s common stock trades on NASDAQ under the symbol “IBKC” and the Company’s market capitalization is approximately $505 million.

 

This press release contains financial information determined by methods other than in accordance with GAAP. The Company’s management uses these non-GAAP 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

 

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tax-exempt. 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.

 

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. Factors that may cause actual results to differ materially from these forward-looking statements include, but are not limited to, changes in market and economic conditions, including current forward interest rate curves; changes in interest rates, deposit flows, loan demand and real estate values; competitive pressures; changes in accounting principles, policies or guidelines; changes in the Company’s loan or investment portfolio; legislative or regulatory changes; changes in monetary or fiscal policies; military or terrorist activities; litigation costs and expenses; and other economic, competitive, governmental, regulatory and technological factors affecting the Company’s business activities and prospects. Factors affecting IBERIABANK Corporation are discussed in the Company’s periodic and other filings with the Securities and Exchange Commission, available at the SEC’s website, www.sec.gov, and the Company’s website, www.iberiabank.com.

 

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IBERIABANK CORPORATION

FINANCIAL HIGHLIGHTS

 

    

For The Quarter Ended

June 30,

     For The Quarter Ended
March 31,
  
     2005
     2004
     % Change
     2005
     % Change
  

Income Data (in thousands):

                                     

Net Interest Income

    $ 21,275     $ 18,121     17 %   $ 20,549     4 %

Net Interest Income (TE) (1)

      22,080       18,802     17 %     21,336     3 %

Net Income

      8,128       6,487     25 %     7,300     11 %

Per Share Data:

                                     

Net Income - Basic

    $ 1.10     $ 0.96     15 %   $ 1.02     8 %

Net Income - Diluted

      1.03       0.88     17 %     0.94     9 %

Book Value

      35.00       29.74     18 %     34.55     1 %

Tangible Book Value (2)

      21.54       19.74     9 %     21.25     1 %

Cash Dividends

      0.30       0.26     15 %     0.28     7 %

Number of Shares Outstanding:

                                     

Basic Shares (Average)

      7,387,134       6,784,770     9 %     7,191,083     3 %

Diluted Shares (Average)

      7,888,533       7,339,858     7 %     7,739,962     2 %

Book Value Shares (Period End) (5)

      7,537,963       6,870,080     10 %     7,685,918     (2 )%

Key Ratios: (3)

                                     

Return on Average Assets

      1.20 %     1.12 %           1.13 %      

Return on Average Equity

      12.22 %     12.42 %           11.75 %      

Return on Average Tangible Equity (2)

      20.26 %     18.90 %           18.70 %      

Net Interest Margin (TE) (1)

      3.54 %     3.54 %           3.56 %      

Efficiency Ratio

      57.3 %     58.5 %           58.9 %      

Tangible Efficiency Ratio (TE) (1) (2)

      54.1 %     55.5 %           55.6 %      

Average Loans to Average Deposits

      90.4 %     84.5 %           91.4 %      

Nonperforming Assets to Total Assets (4)

      0.27 %     0.21 %           0.29 %      

Allowance for Loan Losses to Loans

      1.37 %     1.29 %           1.37 %      

Net Charge-offs to Average Loans

      0.14 %     0.11 %           0.13 %      

Average Equity to Average Total Assets

      9.80 %     9.01 %           9.59 %      

Tier 1 Leverage Ratio

      7.61 %     7.12 %           8.04 %      

Dividend Payout Ratio

      27.8 %     27.5 %           29.4 %      

 

(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%.
(2) Tangible calculations eliminate the effect of goodwill and acquisition related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable.
(3) All ratios are calculated on an annualized basis for the period indicated.
(4) Nonperforming assets consist of nonaccruing loans, accruing loans 90 days or more past due and repossessed assets.
(5) Shares used for book value purposes exclude shares held in treasury and unreleased shares held by the Employee Stock Ownership Plan at the end of the period.

IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

 

BALANCE SHEET (End of Period)

 

     June 30,
    

March 31,

2005

    

December 31,

2004

  
     2005
     2004
     % Change
      

ASSETS

                                       

Cash and Due From Banks

    $ 48,514     $ 46,360     4.6 %   $ 50,020     $ 33,927  

Interest-bearing Deposits in Banks

      13,615       15,070     (9.7 )%     14,059       19,325  
    
 
 
 
 

Total Cash and Equivalents

      62,129       61,430     1.1 %     64,079       53,252  

Investment Securities Available for Sale

      548,972       544,839     0.8 %     566,921       526,933  

Investment Securities Held to Maturity

      31,226       44,841     (30.4 )%     32,782       40,022  
    
 
 
 
 

Total Investment Securities

      580,198       589,680     (1.6 )%     599,703       566,955  

Mortgage Loans Held for Sale

      16,546       6,273     163.8 %     10,846       8,109  

Loans, Net of Unearned Income

      1,830,070       1,529,362     19.7 %     1,833,997       1,650,626  

Allowance for Loan Losses

      (25,102 )     (19,683 )   27.5 %     (25,091 )     (20,116 )
    
 
 
 
 

Loans, net

      1,804,968       1,509,679     19.6 %     1,808,906       1,630,510  

Premises and Equipment

      47,548       36,728     29.5 %     47,769       39,557  

Goodwill and Acquisition Intangibles

      101,436       68,665     47.7 %     102,202       68,310  

Mortgage Servicing Rights

      133       224     (40.8 )%     153       176  

Other Assets

      95,748       79,091     21.1 %     96,355       81,733  
    
 
 
 
 

Total Assets

    $ 2,708,706     $ 2,351,770     15.2 %   $ 2,730,013     $ 2,448,602  
    
 
 
 
 

LIABILITIES AND SHAREHOLDERS’ EQUITY

                                       

Noninterest-bearing Deposits

    $ 264,439     $ 216,111     22.4 %   $ 265,278     $ 218,859  

Interest-bearing Deposits

      1,760,201       1,576,580     11.6 %     1,766,457       1,554,630  
    
 
 
 
 

Total Deposits

      2,024,640       1,792,691     12.9 %     2,031,735       1,773,489  

Short-term Borrowings

      119,500       139,000     (14.0 )%     92,000       192,000  

Securities Sold Under Agreements to Repurchase

      41,850       48,128     (13.0 )%     77,706       44,453  

Long-term Debt

      243,652       155,500     56.7 %     239,555       206,089  

Other Liabilities

      15,256       12,142     25.6 %     23,470       12,409  
    
 
 
 
 

Total Liabilities

      2,444,898       2,147,461     13.9 %     2,464,466       2,228,440  

Total Shareholders’ Equity

      263,808       204,309     29.1 %     265,547       220,162  
    
 
 
 
 

Total Liabilities and Shareholders’ Equity

    $ 2,708,706     $ 2,351,770     15.2 %   $ 2,730,013     $ 2,448,602  
    
 
 
 
 

 

INCOME STATEMENT

 

    

For The Three Months Ended

June 30,

    

For The Six Months Ended

June 30,

  
     2005
    2004
    % Change
     2005
    2004
    % Change
  

Interest Income

    $ 33,549    $ 26,194    28.1 %   $ 65,002    $ 51,594    26.0 %

Interest Expense

      12,274      8,073    52.0 %     23,179      15,509    49.5 %
    
  
  
 
  
  

Net Interest Income

      21,275      18,121    17.4 %     41,823      36,085    15.9 %

Provision for Loan Losses

      630      705    (10.6 )%     1,280      1,759    (27.2 )%
    
  
  
 
  
  

Net Interest Income After Provision for Loan Losses

      20,645      17,416    18.5 %     40,543      34,326    18.1 %

Service Charges

      3,684      3,043    21.1 %     6,824      5,949    14.7 %

ATM / Debit Card Fee Income

      692      519    33.4 %     1,300      951    36.7 %

BOLI Cash Surrender Value Income

      505      389    29.8 %     961      766    25.4 %

Gain on Sale of Loans, net

      549      605    (9.2 )%     1,107      1,467    (24.5 )%

Other Gains (Losses)

      182      361    (49.6 )%     223      514    (56.5 )%

Other Noninterest Income

      1,133      912    24.3 %     2,412      1,734    39.1 %
    
  
  
 
  
  

Total Noninterest Income

      6,745      5,829    15.7 %     12,827      11,381    12.7 %

Salaries and Employee Benefits

      8,233      7,521    9.5 %     16,472      14,634    12.6 %

Occupancy and Equipment

      2,034      1,713    18.8 %     3,923      3,414    14.9 %

Amortization of Acquisition Intangibles

      316      234    35.0 %     601      452    32.9 %

Other Noninterest Expense

      5,464      4,550    20.1 %     10,727      8,728    22.9 %
    
  
  
 
  
  

Total Noninterest Expense

      16,047      14,018    14.5 %     31,723      27,228    16.5 %

Income Before Income Taxes

      11,343      9,227    22.9 %     21,647      18,479    17.1 %

Income Taxes

      3,215      2,740    17.3 %     6,219      5,501    13.1 %
    
  
  
 
  
  

Net Income

    $ 8,128    $ 6,487    25.3 %   $ 15,428    $ 12,978    18.9 %
    
  
  
 
  
  

Earnings Per Share, diluted

    $ 1.03    $ 0.88    16.6 %   $ 1.97    $ 1.78    10.9 %
    
  
  
 
  
  

IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

 

BALANCE SHEET (Average)

 

     For The Quarter Ended
  
     June 30,
2005
     March 31,
2005
     December 31,
2004
     September 30,
2004
    

June 30,

2004

  

ASSETS

                                         

Cash and Due From Banks

    $ 47,205     $ 47,632     $ 39,343     $ 39,467     $ 59,721  

Interest-bearing Deposits in Banks

      16,326       21,648       22,207       12,921       16,295  

Investment Securities

      590,950       575,846       574,843       599,601       586,466  

Mortgage Loans Held for Sale

      12,436       10,360       12,209       8,488       9,375  

Loans, Net of Unearned Income

      1,836,362       1,771,488       1,627,276       1,566,672       1,496,990  

Allowance for Loan Losses

      (25,104 )     (23,142 )     (19,994 )     (19,722 )     (19,509 )

Other Assets

      245,529       223,067       189,576       188,034       180,308  
    
 
 
 
 

Total Assets

    $ 2,723,704     $ 2,626,899     $ 2,445,460     $ 2,395,461     $ 2,329,646  
    
 
 
 
 

LIABILITIES AND SHAREHOLDERS’ EQUITY

                                         

Noninterest-bearing Deposits

    $ 267,004     $ 243,738     $ 223,921     $ 212,931     $ 208,417  

Interest-bearing Deposits

      1,763,875       1,693,723       1,556,184       1,556,492       1,563,058  
    
 
 
 
 

Total Deposits

      2,030,879       1,937,461       1,780,105       1,769,423       1,771,475  

Short-term Borrowings

      120,138       141,020       171,522       181,658       127,380  

Securities Sold Under Agreements to Repurchase

      51,805       50,550       51,240       45,891       42,271  

Long-term Debt

      240,637       228,035       206,317       175,032       155,710  

Other Liabilities

      13,430       17,943       18,194       13,596       22,793  
    
 
 
 
 

Total Liabilities

      2,456,889       2,375,009       2,227,378       2,185,600       2,119,629  

Total Shareholders’ Equity

      266,815       251,890       218,082       209,861       210,017  
    
 
 
 
 

Total Liabilities and Shareholders’ Equity

    $ 2,723,704     $ 2,626,899     $ 2,445,460     $ 2,395,461     $ 2,329,646  
    
 
 
 
 
INCOME STATEMENT  
     2005
     2004
  
     Second
Quarter
     First
Quarter
     Fourth
Quarter
     Third
Quarter
    

Second

Quarter

  

Interest Income

    $ 33,549     $ 31,454     $ 28,969     $ 28,047     $ 26,194  

Interest Expense

      12,274       10,905       9,657       8,816       8,073  
    
 
 
 
 

Net Interest Income

      21,275       20,549       19,312       19,231       18,121  

Provision for Loan Losses

      630       650       1,425       857       705  
    
 
 
 
 

Net Interest Income After Provision for Loan Losses

      20,645       19,899       17,887       18,374       17,416  

Total Noninterest Income

      6,745       6,081       5,979       5,857       5,829  

Total Noninterest Expense

      16,047       15,676       13,440       14,229       14,018  
    
 
 
 
 

Income Before Income Taxes

      11,343       10,304       10,426       10,002       9,227  

Income Taxes

      3,215       3,004       3,101       2,966       2,740  
    
 
 
 
 

Net Income

    $ 8,128     $ 7,300     $ 7,325     $ 7,036     $ 6,487  
    
 
 
 
 

Earnings Per Share, basic

    $ 1.10     $ 1.02     $ 1.09     $ 1.05     $ 0.96  
    
 
 
 
 

Earnings Per Share, diluted

    $ 1.03     $ 0.94     $ 1.01     $ 0.97     $ 0.88  
    
 
 
 
 

Book Value Per Share

    $ 35.00     $ 34.55     $ 32.03     $ 31.12     $ 29.74  
    
 
 
 
 

Return on Average Assets

      1.20 %     1.13 %     1.19 %     1.17 %     1.12 %

Return on Average Equity

      12.22 %     11.75 %     13.36 %     13.34 %     12.42 %

Return on Average Tangible Equity

      20.26 %     18.70 %     19.84 %     20.23 %     18.90 %

IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

 

LOANS RECEIVABLE

 

     June 30,
    

March 31,

2005

    

December 31,

2004

  
     2005
     2004
     % Change
      

Residential Mortgage Loans:

                                       

Residential 1-4 Family

    $ 407,726     $ 357,635     14.0 %   $ 396,480     $ 387,085  

Construction

      27,329       39,612     (31.0 )%     28,815       33,031  
    
 
 
 
 

Total Residential Mortgage Loans

      435,055       397,247     9.5 %     425,295       420,116  

Commercial Loans:

                                       

Real Estate

      516,377       372,084     38.8 %     531,601       419,427  

Business

      332,603       258,573     28.6 %     338,863       307,614  
    
 
 
 
 

Total Commercial Loans

      848,980       630,657     34.6 %     870,464       727,041  

Consumer Loans:

                                       

Indirect Automobile

      229,910       228,183     0.8 %     223,287       222,481  

Home Equity

      239,770       205,033     16.9 %     236,800       213,533  

Automobile

      23,711       22,673     4.6 %     25,321       20,064  

Credit Card Loans

      8,123       8,321     (2.4 )%     7,824       8,743  

Other

      44,521       37,248     19.5 %     45,006       38,648  
    
 
 
 
 

Total Consumer Loans

      546,035       501,458     8.9 %     538,238       503,469  
    
 
 
 
 

Total Loans Receivable

      1,830,070       1,529,362     19.7 %     1,833,997       1,650,626  
                    
               

Allowance for Loan Losses

      (25,102 )     (19,683 )           (25,091 )     (20,116 )
    
 
       
 

Loans Receivable, Net

    $ 1,804,968     $ 1,509,679           $ 1,808,906     $ 1,630,510  
    
 
       
 
ASSET QUALITY DATA                                       
     June 30,
    

March 31,

2005

    

December 31,

2004

  
     2005
     2004
     % Change
      

Nonaccrual Loans

    $ 6,558     $ 3,284     99.7 %   $ 6,663     $ 4,455  

Foreclosed Assets

      60       21     188.3 %     39       9  

Other Real Estate Owned

      240       317     (24.3 )%     258       483  

Accruing Loans More Than 90 Days Past Due

      540       1,336     (59.6 )%     887       1,209  
    
 
 
 
 

Total Nonperforming Assets (1)

    $ 7,398     $ 4,958     49.2 %   $ 7,847     $ 6,156  
    
 
 
 
 

Nonperforming Assets to Total Assets (1)

      0.27 %     0.21 %   29.6 %     0.29 %     0.25 %

Nonperforming Assets to Total Loans + OREO (1)

      0.40 %     0.32 %   24.7 %     0.43 %     0.37 %

Allowance for Loan Losses to Nonperforming Loans (1)

      353.6 %     426.0 %   (17.0 )%     332.3 %     355.2 %

Allowance for Loan Losses to Nonperforming Assets (1)

      339.3 %     397.0 %   (14.5 )%     319.8 %     326.8 %

Allowance for Loan Losses to Total Loans

      1.37 %     1.29 %   6.6 %     1.37 %     1.22 %

Year to Date Charge-offs

    $ 2,036     $ 1,330     53.1 %   $ 983     $ 4,112  

Year to Date Recoveries

    $ 849     $ 438     93.9 %   $ 415     $ 1,370  
(1) Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due. Nonperforming assets consist of nonperforming loans and repossessed assets.

 

DEPOSITS

 

     June 30,
    

March 31,

2005

   

December 31,

2004

     2005
    2004
    % Change
       

Noninterest-bearing Demand Accounts

    $ 264,439    $ 216,111    22.4 %   $ 265,278    $ 218,859

NOW Accounts

      546,859      535,615    2.1 %     583,083      532,584

Savings and Money Market Accounts

      483,057      410,427    17.7 %     450,933      393,772

Certificates of Deposit

      730,285      630,538    15.8 %     732,441      628,274
    
  
  
 
  

Total Deposits

    $ 2,024,640    $ 1,792,691    12.9 %   $ 2,031,735    $ 1,773,489
    
  
  
 
  

IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

Taxable Equivalent Basis

(dollars in thousands)

 

     For The Quarter Ended
  
     June 30, 2005
     June 30, 2004
  
     Average
Balance
     Average
Yield/Rate (%)
     Average
Balance
     Average
Yield/Rate (%)
  

ASSETS

                             

Earning Assets:

                             

Loans Receivable:

                             

Mortgage Loans

    $ 432,901     5.32 %   $ 388,581     5.48 %

Commercial Loans (TE) (1)

      863,027     5.66 %     614,934     4.68 %

Consumer and Other Loans

      540,434     6.75 %     493,475     6.52 %
    
       
     

Total Loans

      1,836,362     5.90 %     1,496,990     5.50 %

Mortgage Loans Held for Sale

      12,436     5.51 %     9,375     5.52 %

Investment Securities (TE) (1)(2)

      592,947     4.43 %     579,011     4.12 %

Other Earning Assets

      43,509     3.66 %     37,250     1.90 %
    
       
     

Total Earning Assets

      2,485,254     5.51 %     2,122,626     5.06 %

Allowance for Loan Losses

      (25,104 )           (19,509 )      

Nonearning Assets

      263,554             226,529        
    
       
     

Total Assets

    $ 2,723,704           $ 2,329,646        
    
       
     

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

Interest-bearing Liabilities:

                             

Deposits:

                             

NOW Accounts

    $ 559,752     1.57 %   $ 524,380     1.01 %

Savings and Money Market Accounts

      472,989     1.20 %     406,582     0.80 %

Certificates of Deposit

      731,134     2.79 %     632,096     2.40 %
    
       
     

Total Interest-bearing Deposits

      1,763,875     1.97 %     1,563,058     1.52 %

Short-term Borrowings

      171,943     2.42 %     169,651     1.14 %

Long-term Debt

      240,637     4.18 %     155,710     4.30 %
    
       
     

Total Interest-bearing Liabilities

      2,176,455     2.25 %     1,888,419     1.71 %

Noninterest-bearing Demand Deposits

      267,004             208,417        

Noninterest-bearing Liabilities

      13,430             22,793        
    
       
     

Total Liabilities

      2,456,889             2,119,629        

Shareholders’ Equity

      266,815             210,017        
    
       
     

Total Liabilities and Shareholders’ Equity

    $ 2,723,704           $ 2,329,646        
    
       
     

Net Earning Assets

    $ 308,799           $ 234,207        

Net Interest Spread

    $ 21,275     3.26 %   $ 18,121     3.35 %

Tax-equivalent Benefit

    $ 805     0.13 %   $ 681     0.13 %

Net Interest Income (TE) / Net Interest Margin (TE) (1)

    $ 22,080     3.54 %   $ 18,802     3.54 %
(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, 2005
     June 30, 2004
  
     Average
Balance
     Average
Yield/Rate (%)
     Average
Balance
     Average
Yield/Rate (%)
  

ASSETS

                             

Earning Assets:

                             

Loans Receivable:

                             

Mortgage Loans

    $ 428,447     5.33 %   $ 387,225     5.54 %

Commercial Loans (TE) (1)

      843,998     5.55 %     592,425     4.76 %

Consumer and Other Loans

      531,659     6.71 %     483,421     6.63 %
    
       
     

Total Loans

      1,804,104     5.84 %     1,463,071     5.58 %

Mortgage Loans Held for Sale

      11,404     5.22 %     10,434     4.99 %

Investment Securities (TE) (1)(2)

      581,311     4.43 %     541,370     4.22 %

Other Earning Assets

      46,073     3.35 %     38,320     1.86 %
    
       
     

Total Earning Assets

      2,442,892     5.45 %     2,053,195     5.15 %

Allowance for Loan Losses

      (24,128 )           (19,115 )      

Nonearning Assets

      256,805             221,449        
    
       
     

Total Assets

    $ 2,675,569           $ 2,255,529        
    
       
     

LIABILITIES AND SHAREHOLDERS’ EQUITY

                             

Interest-bearing Liabilities:

                             

Deposits:

                             

NOW Accounts

    $ 567,564     1.52 %   $ 500,915     0.98 %

Savings and Money Market Accounts

      447,688     1.07 %     396,037     0.76 %

Certificates of Deposit

      713,741     2.70 %     623,467     2.35 %
    
       
     

Total Interest-bearing Deposits

      1,728,993     1.89 %     1,520,419     1.49 %

Short-term Borrowings

      181,703     2.24 %     151,622     1.14 %

Long-term Debt

      234,370     4.18 %     155,907     4.30 %
    
       
     

Total Interest-bearing Liabilities

      2,145,066     2.17 %     1,827,948     1.70 %

Noninterest-bearing Demand Deposits

      255,436             199,243        

Noninterest-bearing Liabilities

      15,673             20,974        
    
       
     

Total Liabilities

      2,416,175             2,048,165        

Shareholders’ Equity

      259,394             207,364        
    
       
     

Total Liabilities and Shareholders’ Equity

    $ 2,675,569           $ 2,255,529        
    
       
     

Net Earning Assets

    $ 297,826           $ 225,247        

Net Interest Spread

    $ 41,823     3.28 %   $ 36,085     3.45 %

Tax-equivalent Benefit

    $ 1,592     0.13 %   $ 1,364     0.13 %

Net Interest Income (TE) / Net Interest Margin (TE) (1)

    $ 43,415     3.55 %   $ 37,449     3.64 %
(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 TABLE

(dollars in thousands)

 

     For The Three Months Ended
  
     6/30/2005
     3/31/2005
     6/30/2004
  

Net Interest Income

    $ 21,275     $ 20,549     $ 18,121  

Effect of Tax Benefit on Interest Income

      805       787       681  
    
 
 

Net Interest Income (TE) (1)

      22,080       21,336       18,802  
    
 
 

Noninterest Income

      6,745       6,081       5,829  

Effect of Tax Benefit on Noninterest Income

      272       246       209  
    
 
 

Noninterest Income (TE) (1)

      7,017       6,327       6,038  
    
 
 

Total Revenues (TE) (1)

    $ 29,097     $ 27,663     $ 24,840  
    
 
 

Total Noninterest Expense

    $ 16,047     $ 15,676     $ 14,018  

Less Intangible Amortization Expense

      (316 )     (284 )     (234 )
    
 
 

Tangible Operating Expense (2)

    $ 15,731     $ 15,392     $ 13,784  
    
 
 

Return on Average Equity

      12.22 %     11.75 %     12.42 %

Effect of Intangibles (2)

      8.04 %     6.95 %     6.48 %
    
 
 

Return on Average Tangible Equity (2)

      20.26 %     18.70 %     18.90 %
    
 
 

Efficiency Ratio

      57.3 %     58.9 %     58.5 %

Effect of Tax Benefit Related to Tax Exempt Income

      (2.1 )%     (2.2 )%     (2.1 )%
    
 
 

Efficiency Ratio (TE) (1)

      55.2 %     56.7 %     56.4 %

Effect of Amortization of Intangibles

      (1.1 )%     (1.1 )%     (0.9 )%
    
 
 

Tangible Efficiency Ratio (TE) (1) (2)

      54.1 %     55.6 %     55.5 %
    
 
 
(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.