0001193125-13-299805.txt : 20130724 0001193125-13-299805.hdr.sgml : 20130724 20130724090156 ACCESSION NUMBER: 0001193125-13-299805 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 33 CONFORMED PERIOD OF REPORT: 20130723 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20130724 DATE AS OF CHANGE: 20130724 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IBERIABANK CORP CENTRAL INDEX KEY: 0000933141 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 721280718 STATE OF INCORPORATION: LA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25756 FILM NUMBER: 13982639 BUSINESS ADDRESS: STREET 1: 200 WEST CONGRESS STREET CITY: LAFAYETTE STATE: LA ZIP: 70501 BUSINESS PHONE: 337-521-4788 MAIL ADDRESS: STREET 1: 200 WEST CONGRESS STREET CITY: LAFAYETTE STATE: LA ZIP: 70501 FORMER COMPANY: FORMER CONFORMED NAME: ISB FINANCIAL CORP/LA DATE OF NAME CHANGE: 19941123 8-K 1 d572947d8k.htm FORM 8-K Form 8-K

 

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 23, 2013

 

 

IBERIABANK CORPORATION

(Exact name of Registrant as Specified in Charter)

 

 

 

Louisiana   0-25756   72-1280718

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

200 West Congress Street, Lafayette, Louisiana 70501

(Address of Principal Executive Offices)

(337) 521-4003

Registrant’s telephone number, including area code

NOT APPLICABLE

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.02 Results of Operations and Financial Condition

 

Item 7.01 Regulation FD Disclosure

On July 23, 2013, the Registrant announced its results of operations for the three and six months ended June 30, 2013. Copies of the related press release and supplemental materials are attached as Exhibits 99.1 and 99.2 to this Current Report on Form 8-K and are incorporated by reference herein.

 

Item 9.01 Financial Statements and Exhibits

 

(d)   Exhibits. The exhibits listed in the exhibit index are furnished pursuant to Items 2.02 and 7.01 as part of this Current Report on Form 8-K and are not to be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

    IBERIABANK CORPORATION
DATE: July 23, 2013     By:   /s/ Daryl G. Byrd
      Daryl G. Byrd
      President and Chief Executive Officer


EXHIBIT INDEX

 

Exhibit Number

    
99.1    Press Release reporting second quarter results dated July 23, 2013, issued by the Registrant.
99.2    Supplemental Materials to conference call.
EX-99.1 2 d572947dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

FOR IMMEDIATE RELEASE

July 23, 2013

Contact:

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

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

IBERIABANK Corporation Reports Second Quarter Results

LAFAYETTE, LOUISIANA — IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 126-year-old IBERIABANK (www.iberiabank.com), reported operating results for the second quarter ended June 30, 2013. For the quarter, the Company reported income available to common shareholders of $16 million, or $0.53 fully diluted earnings per share. The Company incurred costs to implement previously disclosed earnings improvement initiatives in the second quarter of 2013 equal to $0.16 per share on an after-tax basis. In addition, as announced on April 15, 2013, the results for the second quarter of 2013 were materially affected by increased costs related to the adoption of a new accounting standard ($0.11 per share after-tax). The negative impact of these items on the second quarter of 2013 totaled $7 million on a pre-tax basis, or $0.27 per share on an after-tax basis. Excluding those items, EPS in the second quarter of 2013 was $0.80 per share on a non-GAAP operating basis excluding the adoption of the new accounting standard (refer to press release supplemental table).

Daryl G. Byrd, President and Chief Executive Officer, commented, “The results for the second quarter were generally consistent with our expectations. We experienced the strongest quarterly organic loan growth in our Company’s history. Noninterest bearing deposit volumes continued to climb. Our net interest margin in the second quarter showed significant improvement as expected. Our asset quality and capital position remained stellar. Targeted cost savings are being achieved, though results this quarter were masked by $4 million in one-time branch closure costs that were beyond our expectations. While we originated the third highest quarterly mortgage loan production in our Company’s history, mortgage income was negatively affected by the rapid rise in interest rates and reduced pipeline valuations. Overall, we believe we remain on track to achieve the guidance we projected for the investment community last quarter.”

Highlights for the Second Quarter of 2013 and June 30, 2013:

 

   

The net interest margin improved 16 basis points on a linked quarter basis to 3.39%. The primary drivers of the margin improvement were yield stability in the investment securities portfolio and loans net of the loss share receivable combined with an improved earning asset mix and a five basis point reduction in the cost of interest bearing deposits. Management stated continued comfort with the previously disclosed net interest margin guidance range of 3.30% to 3.35% through the fourth quarter of 2013.

 

   

The Company’s profitability improvement initiatives are currently expected to achieve aggregate annual run-rate benefits of approximately $21 million, of which 92% are targeted expense reductions. In the second quarter of 2013, implementation costs were $7 million, approximately $4 million greater than initially projected, due primarily to higher branch closing costs than initially forecasted. Implementation costs for the remainder of 2013 are projected to total less than $1 million, with approximately $9 million in aggregate pre-tax earnings improvements in the second half of 2013. Full run-rate benefits are expected to be achieved by the first quarter of 2014, resulting in approximately $21 million of annual pre-tax earnings improvements in 2014 and beyond.

 

1


   

Gross loan growth was $394 million, or 5%, between quarter-ends (21% annualized rate), excluding loans and other assets covered under FDIC loss share agreements (“Covered Assets”).

 

   

Total deposits decreased $45 million, or less than 1%, between quarter-ends. Noninterest bearing deposits increased $84 million, or 4% (17% annualized rate), and time deposits decreased $110 million, or 5%, over the period.

 

   

The Company’s legacy asset quality continued to be strong in the second quarter of 2013. Nonperforming assets (“NPAs”), excluding Covered Assets and impaired loans acquired in acquisitions, equated to 0.86% of total assets at June 30, 2013, compared to 0.83% at March 31, 2013. On that basis, loans past due 30 days or more equated to 1.18% of total loans at June 30, 2013, compared to 1.13% at March 31, 2013. Classified assets excluding Covered Assets decreased $30 million, or 14%, during the second quarter, and decreased from 1.84% of total assets at March 31, 2013, to 1.59% at June 30, 2013.

 

   

The Company recorded a $2 million loan loss provision in the second quarter of 2013, compared to a $3 million negative loan loss provision in the first quarter of 2013. The provision increase was driven primarily by solid loan growth. Net charge-offs totaled $1.1 million in the second quarter of 2013, or an annualized 0.05% of average loans, compared to 0.06% of average loans in the first quarter of 2013, and 0.07% of average loans over the past six quarters.

 

   

Capital ratios remained strong. At June 30, 2013, the Company’s tangible common equity ratio was 8.69%, tier 1 common ratio was 11.08%, and total risk based capital ratio was 13.45%.

 

2


Table A—Summary Financial Results

 

     For the Quarter Ended:  

Selected Financial Data

   6/30/2012      3/31/2013      6/30/2013      % Change  

Net Income ($ in thousands)

   $ 12,560       $ 717       $ 15,590         2074

Per Share Data:

           

Fully Diluted Earnings

   $ 0.43       $ 0.02       $ 0.53         2011

Operating Earnings (Non-GAAP) (1)

     0.54         0.86         0.80         -7

Pre-provision Operating Earnings (Non-GAAP)

     0.73         0.66         0.73         10

Tangible Book Value

     37.28         36.93         36.30         -2

 

    As of and for the Quarter
Ended:
    Basis Point  

Key Ratios

  6/30/2012     3/31/2013     6/30/2013     Change  

Return on Average Assets

    0.43     0.02     0.49     47  bps   

Return on Average Common Equity

    3.36     0.19     4.09     390  bps   

Return on Average Tangible Common Equity
(Non-GAAP)

    4.86     0.55     5.96     541  bps   

Net Interest Margin (TE) (2)

    3.59     3.23     3.39     16  bps   

Tangible Efficiency Ratio (TE) (2) (Non-GAAP)

    78.2     102.4     81.9     (2,051) bps   

Tangible Common Equity Ratio (Non-GAAP)

    9.37     8.75     8.69     (6) bps   

Tier 1 Leverage Ratio

    10.42     9.37     9.59     22  bps   

Tier 1 Common Ratio (Non-GAAP)

    12.97     11.39     11.08     (31) bps   

Total Risk Based Capital Ratio

    15.54     13.80     13.45     (35) bps   

Net Charge-Offs to Average Loans (3)

    0.07     0.06     0.05     (1) bps   

Nonperforming Assets to Total Assets (3)

    0.84     0.83     0.86     3  bps   

 

     For the Quarter Ended:  

Adjusted Selected Key Ratios

   GAAP
6/30/2013
    Adjustments  (4)     Non GAAP
6/30/2013
 

Return on Average Assets

     0.49     0.12     0.61 %

Return on Average Common Equity

     4.09     0.85     4.94 %

Return on Average Tangible Common Equity (Non-GAAP)

     5.96     1.18     7.14 %

Net Interest Margin (TE) (2)

     3.39     0.17     3.56 %

Tangible Efficiency Ratio (TE)(2) (Non-GAAP)

     81.9     (2.8 %)      79.1 %

 

(1) 

Excludes the impact of the adoption of the new accounting standard.

(2) 

Fully taxable equivalent basis.

(3) 

Excluding FDIC Covered Assets and acquired impaired loans.

(4) 

Adjusted results exclude the income statement impact of the additional amortization of the Company’s indemnification asset, net of tax where applicable, without adjustment to any balance sheet accounts

Refer to press release supplemental table for a reconciliation of GAAP and non-GAAP measures.

Operating Results

On a linked quarter basis, average earning assets decreased $241 million, or 2%, as average loans and the FDIC receivable increased $89 million, or 1%, average investment securities increased $17 million, or 1%, and other earning assets declined $340 million, or 50%. Also on a linked quarter basis, the average earning asset yield increased 10 basis points, and the cost of interest bearing liabilities decreased seven basis points. As a result, the tax-equivalent net interest margin improved 16 basis points. Tax-equivalent net interest income increased $3.5 million, or 4%, as the improvement in deposit costs and earning asset yields more than offset the decline in average earning assets on a linked quarter basis.

 

3


Table B—Quarterly Average Yields/Cost (1)

 

     For Quarter Ended:     Basis Point  
     6/30/2012     3/31/2013     6/30/2013     Change  

Investment Securities

     2.40     1.92     1.92     (0) bps   

Covered Loans, net of loss share receivable

     7.44     5.35     5.11     (24) bps   

Noncovered Loans

     4.68     4.44     4.40     (4) bps   
  

 

 

   

 

 

   

 

 

   

 

 

 

Loans & Loss Share Receivable

     4.80     4.36     4.35     (1) bps   

Mortgage Loans Held For Sale

     3.64     2.97     3.17     20  bps   

Other Earning Assets

     0.84     0.52     0.87     35  bps   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Earning Assets

     4.20     3.70     3.80     10  bps   

Interest Bearing Deposits

     0.65     0.47     0.42     (5) bps   

Short-Term Borrowings

     0.24     0.19     0.16     (3) bps   

Long-Term Borrowings

     3.07     3.16     3.39     23 bps   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Interest Bearing Liabilities

     0.76     0.58     0.51     (7) bps   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Interest Spread

     3.45     3.12     3.29     17  bps   

Net Interest Margin

     3.59     3.23     3.39     16  bps   

 

(1)

Earning asset yields are shown on a fully taxable equivalent basis.

The average investment yield was unchanged during the second quarter of 2013 as cash flows from maturing investments were reinvested at higher market rates. During the second quarter of 2013, the Company deployed, on average, approximately $335 million in excess liquidity to fund loan growth.

The covered loan yield (net of loss share receivable amortization) decreased 24 basis points due primarily to lower income and higher balances on the covered loan portfolio. The non-covered loan yield declined four basis points primarily due to four and eight basis point declines in the commercial and consumer loan portfolio yields, respectively.

For the third quarter of 2013, the Company projects the prospective yield on the covered loan portfolio net of the FDIC Indemnification Asset (“IA”) to approximate 4.70% and 5.06% for the full year 2013. The average balance of the net covered loan portfolio is projected to decline approximately $102 million, based on current FDIC loss share accounting assumptions and estimates. Net income on the covered loan portfolio is projected to decline from approximately $12 million in the second quarter of 2013 to approximately $10 million in the third quarter of 2013.

The IA declined $43 million, or 15%, from $284 million at March 31, 2013 to $241 million at June 30, 2013. The portion of the IA collectible from the FDIC decreased $39 million, or 31%, while the collectible portion from OREO and customers declined $3 million, or 2%.

The Company recorded a $2 million loan loss provision in the second quarter of 2013, with net charge-offs of $1 million, or 0.05% of average loans on an annualized basis.

Aggregate noninterest income decreased $2 million, or 5%, on a linked quarter basis. The primary changes in noninterest income on a linked quarter basis were:

 

   

Decreased gains on the sale of investment securities equal to $2.4 million;

 

4


   

Decreased mortgage income of $1.2 million, or 6%; partially offset by

 

   

Increased title revenue of $0.7 million, or 13%;

 

   

Increased brokerage commissions of $0.3 million, or 9%; and

 

   

Increased deposit service charge income of $0.3 million, or 5%.

The $1.2 million decline in mortgage income was the result of lower net valuations of derivatives and mortgage loans held for sale due primarily to the changing interest rate environment. Assets under management at IBERIA Wealth Advisors were $1.1 billion at June 30, 2013.

In the second quarter of 2013, the Company originated $672 million in residential mortgage loans, up $126 million, or 23%, on a linked quarter basis (up $81 million, or 14%, compared to the same quarter last year). The increase in origination volume was consistent with historical seasonal trends. Client loan refinancing opportunities accounted for approximately 31% of mortgage loan applications in the second quarter of 2013, compared to 40% in the first quarter of 2013, and approximately 17% between June 30, 2013, and July 12, 2013. The Company sold $684 million in mortgage loans during the second quarter of 2013, up $68 million, or 11%, on a linked quarter basis. Margins on the sale of mortgage loans declined slightly on a linked quarter basis. The mortgage origination pipeline was approximately $265 million at June 30, 2013, compared to $281 million at March 31, 2013, and was approximately $270 million at July 12, 2013. Mortgage loan repurchases and make-whole payments were approximately $0.3 million in the second quarter of 2013, up slightly compared to the first quarter of 2013.

Noninterest expense decreased $27.5 million, or 19%, on a linked quarter basis. Non-operating expenses declined $28.0 million on a linked quarter basis, comprised of the following changes:

 

   

Decreased IA impairment of $31.8 million;

 

   

Decreased FHLB debt extinguishment of $2.3 million; and

 

   

Decreased merger and conversion-related expense of $0.2 million; partially offset by

 

   

Increased branch closure cost of $4.6 million;

 

   

Increased severance expense of $1.6 million; and

 

   

Increased litigation expenses of $0.2 million.

Excluding the aforementioned non-operating expenses, total expenses were essentially unchanged at $110 million in the second quarter of 2013. Operating expense changes on a linked quarter basis included:

 

   

Increased mortgage commissions of $1.8 million, or 42%, due to higher mortgage loan production;

 

   

Decreased occupancy and equipment expense of $0.5 million, or 3%, due to branch closures; and

 

   

Decreased OREO expenses of $0.6 million, or 62%;

On a linked quarter basis, total headcount at the Company declined by 107 associates on a full-time equivalent basis, or 4%.

Loans

Total loans increased $308 million, or 4%, between March 31, 2013 and June 30, 2013. The loan portfolio associated with FDIC-assisted acquisitions decreased $86 million, or 9%, compared to March 31, 2013. Excluding loans associated with FDIC-assisted transactions, total loans increased $394 million, or 5% (21% annualized rate). Legacy commercial loans increased $288 million, or 5% (which includes $61 million in business banking loan growth, up 9%, or 36% annualized rate), legacy consumer loans increased $56 million, or 3%, and legacy mortgage loans increased $50 million, or 16%, during the quarter. Loan origination and renewal growth during the second quarter of 2013 were strongest in the Houston, New Orleans, Lafayette, Birmingham, and Baton Rouge markets. Loan origination mix in the second quarter of 2013 was 50% fixed rate and 50% floating rate. Loans and commitments originated and/or renewed during the second quarter of 2013 totaled $1.2 billion (up 41% on a linked quarter basis). Energy-related loans outstanding totaled $662 million at June 30, 2013, up $30 million, or 5% compared to March 31, 2013, and equal to approximately 7% of total loans. The Company had no student loans outstanding at June 30, 2013.

 

5


Table C—Period-End Loans ($ in Millions)

 

     Period-End Balances ($ Millions)      % Change     Mix  
     6/30/12      3/31/13      6/30/13      Year/Year     Qtr/Qtr     Annualized     3/31/13     6/30/13  

Commercial

   $ 4,841       $ 5,555       $ 5,843         21     5     21     64     66

Consumer

     1,470         1,735         1,791         22     3     13     20     20

Mortgage

     236         301         351         49     16     66     3     4
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-FDIC Loans

   $ 6,547       $ 7,591       $ 7,985         22     5     21     87     90

Covered Assets

     1,190         1,004         918         -23     -9     -34     13     10
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Loans

   $ 7,737       $ 8,595       $ 8,903         15     4     14     100     100
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Deposits

Total deposits decreased $45 million, or less than 1%, from March 31, 2013 to June 30, 2013. Noninterest bearing deposits increased $84 million, or 4%, and equated to 19% of total deposits at June 30, 2013. NOW accounts increased $5 million, or less than 1%, and money market and savings account volume decreased $22 million, or 1%, at June 30, 2013. Time deposits declined $110 million, or 5% between quarter-ends, including $13 million of wholesale time deposits. Period-end deposit growth during the second quarter of 2013 was strongest in the Houston, Birmingham, and Memphis markets.

Table D—Period-End Deposits ($ in Millions)

 

     Period-End Balances ($ Millions)      % Change     Mix  
     6/30/12      3/31/13      6/30/13      Year/Year     Qtr/Qtr     Annualized     3/31/13     6/30/13  

Noninterest

   $ 1,651       $ 1,972       $ 2,055         24     4     17     19     19

NOW Accounts

     1,990         2,480         2,485         25     0     1     23     23

Savings/MMkt

     3,529         4,156         4,134         17     -1     -2     39     39

Time Deposits

     2,246         2,078         1,968         -12     -5     -21     19     19
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Deposits

   $ 9,416       $ 10,686       $ 10,642         13     0     -2     100     100
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

On an average balance and linked quarter basis, noninterest-bearing deposits increased $72 million, or 4% (15% annualized rate), and interest-bearing deposits decreased $138 million, or 2%. The rate on average interest-bearing deposits in the second quarter of 2013 was 0.42%, a decrease of five basis points on a linked quarter basis. Approximately $1.7 billion in time deposits are scheduled to re-price over the next 12 months at a weighted average cost of 0.68%. An additional $0.2 billion in time deposits are scheduled to re-price the following 12 months at a weighted average cost of 1.04%. During the second quarter of 2013, new and re-priced time deposits were booked at an average cost of 0.32%. The Company experienced a time deposit retention rate of 83% in the second quarter of 2013 with an average 25 basis point reduction in rate.

Other Assets And Funding

The Company reduced its excess liquidity position in the second quarter of 2013. Excess liquidity averaged $295 million in the second quarter of 2013, down $335 million, or 53%, on a linked quarter basis. The excess liquidity was used to fund strong loan growth while the investment portfolio remained stable at $2.1 billion on average in the second quarter of 2013. On a period-end basis, the investment portfolio equated to $2.1 billion, or 16% of total assets

 

6


at June 30, 2013, down slightly compared to 17% at March 31, 2013. The investment portfolio had a modified duration of 3.9 years at June 30, 2013, up compared to 3.1 years at March 31, 2013. The lengthening duration of the investment portfolio was the result of anticipated slowing prepayment speeds as interest rates increased near the end of the second quarter of 2013. At current prepayment speeds, the investment portfolio is projected to cash flow approximately $537 million over the next 18 months, or 26% of the total investment portfolio. The Company estimates that a potential increase in interest rates of 100 and 200 basis points at June 30, 2013 would extend the duration of the investment portfolio by 0.6 and 0.7 years, respectively. The unrealized gain in the portfolio decreased from a $40 million unrealized gain at March 31, 2013, to an $8 million unrealized loss at June 30, 2013. The average yield on investment securities held steady on a linked quarter basis at 1.92% in the second quarter of 2013. The Company holds in its investment portfolio primarily government agency securities. Municipal securities comprised only 10% of total investments at June 30, 2013. The Company holds no sovereign debt or derivative exposure to foreign counterparties.

The Company paid off $90 million in long-term FHLB borrowings near the end of the first quarter of 2013. On a linked quarter basis, average long-term debt decreased $118 million, or 29%, and the cost of debt increased 23 basis points to 3.39%. The cost of average interest bearing liabilities was 0.51% in the second quarter of 2013, a decrease of seven basis points on a linked quarter basis. For the month of June 2013, the average cost of interest bearing liabilities was 0.49%.

Asset Quality

Excluding $444 million in NPAs which were Covered Assets or acquired impaired loans, NPAs at June 30, 2013 were $100 million, up $4 million, or 4%, compared to March 31, 2013. NPAs equated to 0.86% of total assets at June 30, 2013, compared to 0.83% of total assets at March 31, 2013. Loans past due 30 days or more (including nonaccruing loans) increased $8 million, or 10%, and represented 1.18% of total loans at June 30, 2013, up compared to 1.13% at March 31, 2013. Classified assets declined $30 million, or 14%, during the second quarter of 2013.

Table E - Asset Quality Summary

Excludes the impact of all FDIC-assisted acquisitions and acquired impaired loans

 

     For Quarter Ended:     % or Basis Point Change  
($ thousands)    6/30/2012     3/31/2013     6/30/2013     Year/Year     Qtr/Qtr  

Nonperforming Assets

   $ 86,501      $ 96,001      $ 99,567        15     4

Past Due Loans

     84,653        85,399        93,872        11     10

Classified Assets

     200,872        213,589        183,414        -9     -14

Nonperforming Assets/Assets

     0.84     0.83     0.86     bps      bps 

NPAs/(Loans + OREO)

     1.33     1.27     1.25     (8)  bps      (2)  bps 

Classified Assets/Total Assets

     1.94     1.84     1.59     (35)  bps      (25)  bps 

(Past Dues & Nonaccruals)/Loans

     1.30     1.13     1.18     (12)  bps      bps 

Provision For Loan Losses

   $ 4,271      $ (3,941)      $ 3,344        -22     -185

Net Charge-Offs/(Recoveries)

     1,102        1,170        1,029        -7     -12
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Provision Less Net Charge-Offs

   $ 3,169      $ (5,111)      $ 2,315        27     -145

Net Charge-Offs/Average Loans

     0.07     0.06     0.05     (2)        (1)   

Allowance For Loan Losses/Loans

     1.23     0.99     0.84     (39)        (15)   

Allowance for Credit Losses to Total Loans

     1.23     0.99     0.97     (26)        (2)   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Excluding Covered Assets and acquired impaired loans, troubled debt restructurings at June 30, 2013, totaled $10 million, or 0.13% of total loans (compared to 0.25% of total loans at March 31, 2013). All but $2 million of the Company’s troubled debt restructurings were included in NPAs at June 30, 2013.

 

7


Capital Position

The Company maintains favorable capital strength. At June 30, 2013, the Company reported a tangible common equity ratio of 8.69%, down six basis points compared to March 31, 2013. At June 30, 2013, the Company’s preliminary Tier 1 leverage ratio was 9.59%, up 22 basis points compared to March 31, 2013. The Company’s preliminary total risk-based capital ratio at June 30, 2013 was 13.45%, down 35 basis points compared to March 31, 2013. The decline in the risk-based capital ratio was due in part to the deployment of excess liquidity that carried a 0% risk weighting into loans that carried a higher risk weighting.

On October 26, 2011, the Company announced a share repurchase program totaling 900,000 shares of common stock. No shares were repurchased under this program during the second quarter of 2013. A total of 46,692 shares remain under the currently authorized share repurchase program.

At June 30, 2013, book value per share was $50.65, down $0.68 per share compared to March 31, 2013. Tangible book value per share was $36.30, down $0.63 per share compared to March 31, 2013. Based on the closing stock price of the Company’s common stock of $58.73 per share on July 23, 2013, this price equated to 1.16 times June 30, 2013 book value and 1.62 times June 30, 2013 tangible book value per share.

On June 3, 2013, 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 2.32%.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with 278 combined offices, including 180 bank branch offices and three LPOs in Louisiana, Arkansas, Tennessee, Alabama, Texas, and Florida, 21 title insurance offices in Arkansas and Louisiana, mortgage representatives in 65 locations in 12 states, eight locations with representatives of IBERIA Wealth Advisors in four states, and one IBERIA Capital Partners, L.L.C. office in New Orleans.

The Company’s common stock trades on the NASDAQ Global Select Market under the symbol “IBKC.” The Company’s market capitalization was approximately $1.7 billion, based on the NASDAQ closing stock price on July 23, 2013.

The following 11 investment firms currently provide equity research coverage on IBERIABANK Corporation:

 

   

FIG Partners, LLC

 

   

Jefferies & Co., Inc.

 

   

Keefe, Bruyette & Woods

 

   

Merion Capital Group

 

   

Oppenheimer & Co., Inc.

 

   

Raymond James & Associates, Inc.

 

   

Robert W. Baird & Company

 

   

Stephens, Inc.

 

   

Sterne, Agee & Leach

 

   

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 Wednesday, July 24, 2013, beginning at 8:00 a.m. Central Time by dialing 1-800-762-4758. The confirmation code for the call is 297018. A replay of the call will be available until midnight Central Time on July 31, 2013 by dialing 1-800-475-6701.

 

8


The confirmation code for the replay is 297018. The Company has prepared a PowerPoint presentation that supplements information contained in this press release. The PowerPoint presentation may be accessed on the Company’s web site, www.iberiabank.com, under “Investor Relations” and then “Presentations.”

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with GAAP. The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that are infrequent in nature. 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. Refer to press release supplemental table for this reconciliation.

Forward Looking Statements

To the extent that statements in this press release and the accompanying PowerPoint presentation 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 level of market volatility, 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 refinements to purchase accounting adjustments for, acquired businesses and assets and assumed liabilities in these transactions, adjustments of fair values of acquired assets and assumed liabilities and of deferred taxes in acquisitions, actual results deviating from the Company’s current estimates and assumptions of timing and amounts of cash flows, 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 systems or infrastructure and those of third-party providers of those services, hurricanes and other adverse weather events, the modest 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, subsequent Quarterly Reports on Form 10-Q, and other filings with the Securities and Exchange Commission (the “SEC”), available at the SEC’s website, http://www.sec.gov, and at the Company’s website, http://www.iberiabank.com, under the heading “Investor Information.” All information in this release and the accompanying PowerPoint presentation 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. Certain tabular presentations may not reconcile because of rounding.

 

9


Table 1—IBERIABANK CORPORATION

FINANCIAL HIGHLIGHTS

 

     For The Quarter Ended
June 30,
    For The Quarter  Ended
March 31,
 
     2013     2012     % Change     2013     % Change  

Income Data (in thousands):

          

Net Interest Income

   $ 96,482      $ 93,172        4   $ 92,871        4

Net Interest Income (TE) (1)

     98,878        95,593        3     95,335        4

Net Income

     15,590        12,560        24     717        2074

Earnings Available to Common Shareholders—Basic

     15,590        12,560        24     717        2074

Earnings Available to Common Shareholders—Diluted

     15,297        12,320        24     697        2094

Per Share Data:

          

Earnings Available to Common Shareholders—Basic

   $ 0.53      $ 0.43        24   $ 0.02        2067

Earnings Available to Common Shareholders—Diluted

     0.53        0.43        24     0.02        2088

Operating Earnings (Non-GAAP) (2)

     0.80        0.54        48     0.86        (7 %) 

Book Value

     50.65        50.68        (0 %)      51.33        (1 %) 

Tangible Book Value (3)

     36.30        37.28        (3 %)      36.93        (2 %) 

Cash Dividends

     0.34        0.34        —          0.34        —     

Closing Stock Price

     53.61        50.45        6     50.02        7

Key Ratios: (4)

          

Operating Ratios:

          

Return on Average Assets

     0.49     0.43       0.02  

Return on Average Common Equity

     4.09     3.36       0.19  

Return on Average Tangible Common Equity (3)

     5.96     4.86       0.55  

Net Interest Margin (TE) (1)

     3.39     3.59       3.23  

Efficiency Ratio

     84.4     80.8       105.5  

Tangible Efficiency Ratio (TE) (1) (3)

     81.9     78.2       102.4  

Full-time Equivalent Employees

     2,611        2,574          2,718     

Capital Ratios:

          

Tangible Common Equity Ratio (Non-GAAP)

     8.69     9.37       8.75  

Tangible Common Equity to Risk-Weighted Assets

     11.03     13.24       11.64  

Tier 1 Leverage Ratio

     9.59     10.42       9.37  

Tier 1 Capital Ratio

     12.19     14.27       12.54  

Total Risk Based Capital Ratio

     13.45     15.54       13.80  

Common Stock Dividend Payout Ratio

     64.8     79.9       N/M     

Asset Quality Ratios:

          

Excluding FDIC Covered Assets and acquired impaired loans

          

Nonperforming Assets to Total Assets (5)

     0.86     0.84       0.83  

Allowance for Loan Losses to Loans

     0.84     1.23       0.99  

Net Charge-offs to Average Loans

     0.05     0.07       0.06  

Nonperforming Assets to Total Loans and OREO (5)

     1.25     1.33       1.27  

 

    For The Quarter Ended     For The Quarter Ended  
    June 30,     March 31,     December 31,     September 30,  
    2013     2013     2013     2012     2012  
    End of Period     Average     Average     Average     Average  

Balance Sheet Summary (in thousands):

         

Excess Liquidity (6)

  $ 120,451      $ 294,544      $ 629,406      $ 432,752      $ 238,203   

Total Investment Securities

    2,075,298        2,096,166        2,096,229        1,957,542        2,005,975   

Loans, Net of Unearned Income

    8,903,037        8,748,476        8,543,538        8,384,218        8,016,829   

Loans, Net of Unearned Income, Excluding Covered Loans and SOP 03-3

    7,938,120        7,753,497        7,454,309        7,212,648        6,810,490   

Total Assets

    12,823,503        12,881,551        13,075,008        12,692,665        12,182,554   

Total Deposits

    10,641,718        10,638,478        10,703,883        10,315,944        9,705,957   

Total Shareholders’ Equity

    1,504,761        1,528,606        1,531,068        1,533,561        1,519,338   

 

(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) 

Excludes the impact of the adoption of the new accounting standard.

(3) 

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

(4) 

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.

(6) 

Excess Liquidity includes interest-bearing deposits in banks and fed funds sold, but excludes liquidity sources and uses from off-balance sheet arrangements.

N/M - Comparison of the information presented is not meaningful given the periods presented.


Table 2—IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

 

      June 30,     March 31,  

BALANCE SHEET (End of Period)

   2013     2012     % Change     2013     % Change  

ASSETS

          

Cash and Due From Banks

   $ 227,114      $ 195,719        16.0   $ 183,158        24.0

Interest-bearing Deposits in Banks

     120,451        404,327        (70.2 %)      443,358        (72.8 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Cash and Equivalents

     347,565        600,046        (42.1 %)      626,516        (44.5 %) 

Investment Securities Available for Sale

     1,912,058        1,812,746        5.5     1,951,548        (2.0 %) 

Investment Securities Held to Maturity

     163,240        188,399        (13.4 %)      198,442        (17.7 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Investment Securities

     2,075,298        2,001,145        3.7     2,149,990        (3.5 %) 

Mortgage Loans Held for Sale

     162,031        180,569        (10.3 %)      188,037        (13.8 %) 

Loans, Net of Unearned Income

     8,903,037        7,736,512        15.1     8,594,975        3.6

Allowance for Loan Losses

     (162,903     (187,285     (13.0 %)      (189,725     (14.1 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loans, Net

     8,740,134        7,549,227        15.8     8,405,250        4.0

Loss Share Receivable

     241,040        469,923        (48.7 %)      284,471        (15.3 %) 

Premises and Equipment

     296,988        291,718        1.8     304,353        (2.4 %) 

Goodwill and Other Intangibles

     427,581        395,919        8.0     428,522        (0.2 %) 

Other Assets

     532,866        632,571        (15.8 %)      564,060        (5.5 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Assets

   $ 12,823,503      $ 12,121,118        5.8   $ 12,951,199        (1.0 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

          

Noninterest-bearing Deposits

   $ 2,055,333      $ 1,651,154        24.5   $ 1,971,809        4.2

NOW Accounts

     2,484,824        1,989,876        24.9     2,480,305        0.2

Savings and Money Market Accounts

     4,133,770        3,529,060        17.1     4,155,973        (0.5 %) 

Certificates of Deposit

     1,967,791        2,245,830        (12.4 %)      2,078,180        (5.3 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Deposits

     10,641,718        9,415,920        13.0     10,686,267        (0.4 %) 

Short-term Borrowings

     —          405,000        (1     —          —     

Securities Sold Under Agreements to Repurchase

     289,377        235,768        22.7     294,156        (1.6 %) 

Trust Preferred Securities

     111,862        111,862        0.0     111,862        0.0

Other Long-term Debt

     171,623        306,036        (43.9 %)      211,184        (18.7 %) 

Other Liabilities

     104,162        151,492        (31.2 %)      123,660        (15.8 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Liabilities

     11,318,742        10,626,078        6.5     11,427,129        (0.9 %) 

Total Shareholders’ Equity

     1,504,761        1,495,040        0.7     1,524,070        (1.3 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Liabilities and Shareholders’ Equity

   $ 12,823,503      $ 12,121,118        5.8   $ 12,951,199        (1.0 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

BALANCE SHEET (Average)

   June 30,
2013
    March 31,
2013
    December 31,
2012
    September 30,
2012
    June 30,
2012
 

ASSETS

          

Cash and Due From Banks

   $ 219,344      $ 220,746      $ 212,404      $ 192,891      $ 188,260   

Interest-bearing Deposits in Banks

     294,544        629,406        432,752        236,653        294,171   

Investment Securities

     2,096,166        2,096,229        1,957,542        2,005,975        2,048,001   

Mortgage Loans Held for Sale

     170,620        178,387        212,432        182,543        135,273   

Loans, Net of Unearned Income

     8,748,476        8,543,538        8,384,218        8,016,829        7,592,677   

Allowance for Loan Losses

     (183,783     (245,384     (196,634     (180,798     (173,023

Loss Share Receivable

     268,700        384,319        411,328        448,746        508,443   

Other Assets

     1,267,484        1,267,767        1,278,623        1,279,715        1,223,299   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Assets

   $ 12,881,551      $ 13,075,008      $ 12,692,665      $ 12,182,554      $ 11,817,101   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

          

Noninterest-bearing Deposits

   $ 2,010,263      $ 1,937,890      $ 1,928,361      $ 1,773,302      $ 1,640,327   

NOW Accounts

     2,488,721        2,464,922        2,207,032        2,023,769        1,985,248   

Savings and Money Market Accounts

     4,113,671        4,170,123        3,935,675        3,701,947        3,524,641   

Certificates of Deposit

     2,025,823        2,130,948        2,244,876        2,206,939        2,313,176   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Deposits

     10,638,478        10,703,883        10,315,944        9,705,957        9,463,392   

Short-term Borrowings

     77        500        9,239        121,957        27,857   

Securities Sold Under Agreements to Repurchase

     294,712        292,448        262,027        245,486        245,401   

Trust Preferred Securities

     111,862        111,862        111,862        113,905        111,862   

Long-term Debt

     181,884        300,071        312,190        324,923        313,451   

Other Liabilities

     125,932        135,176        147,842        150,988        151,036   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Liabilities

     11,352,945        11,543,940        11,159,104        10,663,216        10,312,999   

Total Shareholders’ Equity

     1,528,606        1,531,068        1,533,561        1,519,338        1,504,102   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Liabilities and Shareholders’ Equity

   $ 12,881,551      $ 13,075,008      $ 12,692,665      $ 12,182,554      $ 11,817,101   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 


Table 3—IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

 

     For The Three Months Ended  
      June 30,     March 31,  

INCOME STATEMENT

   2013     2012     % Change     2013     % Change  

Interest Income

   $ 108,177      $ 109,283        (1.0 %)    $ 106,416        1.7

Interest Expense

     11,695        16,111        (27.4 %)      13,545        (13.7 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Interest Income

     96,482        93,172        3.6     92,871        3.9

(Reversal of) Provision for Loan Losses

     1,807        8,895        (79.7 %)      (3,377     (153.5 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Interest Income After (Reversal of ) Provision for Loan Losses

     94,675        84,277        12.3     96,248        (1.6 %) 

Service Charges

     7,106        6,625        7.3     6,797        4.5

ATM / Debit Card Fee Income

     2,357        2,166        8.8     2,183        8.0

BOLI Proceeds and Cash Surrender Value Income

     901        905        (0.4 %)      939        (4.1 %) 

Mortgage Income

     17,708        18,185        (2.6 %)      18,931        (6.5 %) 

Gain (Loss) on Sale of Investments, Net

     (57     901        (106.4 %)      2,359        (102.4 %) 

Title Revenue

     5,696        5,339        6.7     5,021        13.4

Broker Commissions

     3,863        3,102        24.5     3,534        9.3

Other Noninterest Income

     4,915        4,471        10.0     4,727        4.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Noninterest Income

     42,489        41,694        1.9     44,491        (4.5 %) 

Salaries and Employee Benefits

     63,815        58,121        9.8     62,529        2.1

Occupancy and Equipment

     14,283        12,908        10.7     15,195        (6.0 %) 

Amortization of Acquisition Intangibles

     1,181        1,289        (8.3 %)      1,183        (0.2 %) 

Other Noninterest Expense

     38,082        36,704        3.8     65,991        (42.3 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Noninterest Expense

     117,361        109,022        7.6     144,898        (19.0 %) 

Income (Loss) Before Income Taxes

     19,803        16,949        16.8     (4,159     (576.2 %) 

Income Taxes

     4,213        4,389        (4.0 %)      (4,876     (186.4 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income

   $ 15,590      $ 12,560        24.1   $ 717        2073.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Preferred Stock Dividends

     —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Available to Common Shareholders—Basic

     15,590        12,560        24.1     717        2073.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Allocated to Unvested Restricted Stock

     (293     (240     21.9     (20     1378.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Available to Common Shareholders—Diluted

     15,297        12,320        24.2     697        2093.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Per Share, Diluted

   $ 0.53      $ 0.43        23.7   $ 0.02        2086.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Impact of Non-Operating Expenses and New Accounting Standard (Non-GAAP)

   $ 0.27      $ 0.11        147.9   $ 0.84        (67.8 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Per Share, Diluted, Excluding Non-operating Expenses (Non-GAAP)

   $ 0.80      $ 0.54        48.4   $ 0.86        (7.1 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NUMBER OF SHARES OUTSTANDING

          

Basic Shares—All Classes (Average)

     29,610,315        29,463,811        0.5     29,502,711        0.4

Diluted Shares—Common Shareholders (Average)

     29,066,906        28,950,806        0.4     28,979,168        0.3

Book Value Shares (Period End) (1)

     29,710,058        29,497,008        0.7     29,691,781        0.1

 

     2013     2012  

INCOME STATEMENT

   Second
Quarter
    First
Quarter
    Fourth
Quarter
    Third
Quarter
    Second
Quarter
 

Interest Income

   $ 108,177      $ 106,416      $ 114,779      $ 111,951      $ 109,283   

Interest Expense

     11,695        13,545        14,789        15,225        16,111   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Interest Income

     96,482        92,871        99,990        96,726        93,172   

(Reversal of) Provision for Credit Losses

     1,807        (3,377     4,866        4,053        8,895   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Interest Income After (Reversal of) Provision for Loan Losses

     94,675        96,248        95,124        92,673        84,277   

Total Noninterest Income

     42,489        44,491        50,354        46,553        41,694   

Total Noninterest Expense

     117,361        144,898        113,441        109,848        109,022   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (Loss) Before Income Taxes

     19,803        (4,159     32,037        29,378        16,949   

Income Taxes

     4,213        (4,876     8,829        8,144        4,389   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income

   $ 15,590      $ 717      $ 23,208      $ 21,234      $ 12,560   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Preferred Stock Dividends

     —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Available to Common Shareholders—Basic

     15,590        717        23,208        21,234        12,560   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Allocated to Unvested Restricted Stock

     (293     (20     (428     (406     (240
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Available to Common Shareholders—Diluted

   $ 15,297      $ 697      $ 22,780      $ 20,828      $ 12,320   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Per Share, Basic

   $ 0.53      $ 0.02      $ 0.79      $ 0.73      $ 0.43   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Per Share, Diluted

   $ 0.53      $ 0.02      $ 0.79      $ 0.73      $ 0.43   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Book Value Per Common Share

   $ 50.65      $ 51.33      $ 51.88      $ 51.44      $ 50.68   

Tangible Book Value Per Common Share

   $ 36.30      $ 36.93      $ 37.34      $ 37.07      $ 37.28   

Return on Average Assets

     0.49     0.02     0.73     0.69     0.43

Return on Average Common Equity

     4.09     0.19     6.02     5.56     3.36

Return on Average Tangible Common Equity

     5.96     0.55     8.62     7.91     4.86

 

(1) Shares used for book value purposes exclude shares held in treasury at the end of the period.


Table 4—IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

 

     For The Six Months Ended  
      June 30,  

INCOME STATEMENT

   2013     2012     % Change  

Interest Income

   $ 214,593      $ 218,470        (1.8 %) 

Interest Expense

     25,239        33,436        (24.5 %) 
  

 

 

   

 

 

   

 

 

 

Net Interest Income

     189,354        185,034        2.3

(Reversal of) Provision for Loan Losses

     (1,569     11,752        (113.4 %) 
  

 

 

   

 

 

   

 

 

 

Net Interest Income After Provision for Loan Losses

     190,923        173,282        10.2

Service Charges

     13,903        12,606        10.3

ATM / Debit Card Fee Income

     4,541        4,189        8.4

BOLI Proceeds and Cash Surrender Value Income

     1,840        1,855        (0.8 %) 

Mortgage Income

     36,639        31,903        14.8

Gain on Sale of Investments, net

     2,302        3,737        (38.4 %) 

Title Revenue

     10,717        9,872        8.6

Broker Commissions

     7,397        6,162        20.0

Other Noninterest Income

     9,641        8,766        10.0
  

 

 

   

 

 

   

 

 

 

Total Noninterest Income

     86,980        79,090        10.0

Salaries and Employee Benefits

     126,344        112,940        11.9

Occupancy and Equipment

     29,478        25,627        15.0

Amortization of Acquisition Intangibles

     2,364        2,579        (8.3 %) 

Other Noninterest Expense

     104,073        67,750        53.6
  

 

 

   

 

 

   

 

 

 

Total Noninterest Expense

     262,259        208,896        25.5

Income Before Income Taxes

     15,644        43,477        (64.0 %) 

Income Taxes

     (663     11,523        (105.8 %) 
  

 

 

   

 

 

   

 

 

 

Net Income

   $ 16,307      $ 31,953        (49.0 %) 
  

 

 

   

 

 

   

 

 

 

Preferred Stock Dividends

     —          —          —     
  

 

 

   

 

 

   

 

 

 

Earnings Available to Common Shareholders—Basic

     16,307        31,953        (49.0 %) 
  

 

 

   

 

 

   

 

 

 

Earnings Allocated to Unvested Restricted Stock

     (313     (607     (48.5 %) 
  

 

 

   

 

 

   

 

 

 

Earnings Available to Common Shareholders—Diluted

     15,994        31,346        (49.0 %) 
  

 

 

   

 

 

   

 

 

 

Earnings Per Share, diluted

   $ 0.55      $ 1.08        (49.1 %) 
  

 

 

   

 

 

   

 

 

 


Table 5—IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

 

     June 30,     March 31,  

LOANS

  2013     2012     % Change     2013     % Change  

Residential Mortgage Loans:

    518,496        418,789        23.8     478,617        8.3

Commercial Loans:

         

Real Estate

    3,744,238        3,313,863        13.0     3,587,692        4.4

Business

    2,687,920        2,306,160        16.6     2,621,644        2.5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Commercial Loans

    6,432,158        5,620,023        14.5     6,209,336        3.6

Consumer Loans:

         

Indirect Automobile

    351,631        309,855        13.5     342,117        2.8

Home Equity

    1,278,823        1,159,899        10.3     1,261,171        1.4

Automobile

    76,427        49,411        54.7     66,240        15.4

Credit Card Loans

    53,026        46,519        14.0     51,642        2.7

Other

    192,476        132,016        45.8     185,852        3.6
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Consumer Loans

    1,952,383        1,697,700        15.0     1,907,022        2.4
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Loans

    8,903,037        7,736,512        15.1     8,594,975        3.6
     

 

 

     

 

 

 

Allowance for Loan Losses

    (162,903     (187,285       (189,725  
 

 

 

   

 

 

     

 

 

   

Loans, Net

  $ 8,740,134      $ 7,549,227        $ 8,405,250     
 

 

 

   

 

 

     

 

 

   

Reserve for Unfunded Commitments (1)

    (10,342     —          100.0     —          100.0

Allowance for Credit Losses

    (173,246     (187,285     (7.5 %)      (189,725     (8.7 %) 
     June 30,     March 31,  

ASSET QUALITY DATA (2)

  2013     2012     % Change     2013     % Change  

Nonaccrual Loans

  $ 409,775      $ 625,938        (34.5 %)    $ 463,075        (11.5 %) 

Foreclosed Assets

    1,647        455        262.2     1,375        19.8

Other Real Estate Owned

    127,960        129,463        (1.2 %)      130,461        (1.9 %) 

Accruing Loans More Than 90 Days Past Due

    4,126        8,270        (50.1 %)      5,697        (27.6 %) 
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Nonperforming Assets

  $ 543,508      $ 764,126        (28.9 %)    $ 600,608        (9.5 %) 
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loans 30-89 Days Past Due

  $ 35,204      $ 46,391        (24.1 %)    $ 33,227        5.9

Nonperforming Assets to Total Assets

    4.24     6.30     (32.8 %)      4.63     (8.5 %) 

Nonperforming Assets to Total Loans and OREO

    6.02     9.71     (38.1 %)      6.87     (12.4 %) 

Allowance for Loan Losses to Nonperforming Loans (3)

    39.4     29.5     33.3     40.6     (2.9 %) 

Allowance for Loan Losses to Nonperforming Assets

    30.0     24.5     22.3     31.6     (5.3 %) 

Allowance for Loan Losses to Total Loans

    1.83     2.42     (24.4 %)      2.21     (17.1 %) 

Allowance for Credit Losses to Nonperforming Loans (1) (3)

    41.9     29.5     41.7     40.6     3.2

Allowance for Credit Losses to Nonperforming Assets (1)

    31.9     24.5     30.1     31.6     0.9

Allowance for Credit Losses to Total Loans (1)

    1.95     2.42     (19.6 %)      2.21     (11.8 %) 

Year to Date Charge-offs

  $ 4,375      $ 4,627        (5.5 %)    $ 2,103        N/M   

Year to Date Recoveries

    (2,029     (1,815     11.7     (893     N/M   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Year to Date Net Charge-offs (Recoveries)

  $ 2,346      $ 2,812        (16.6 %)    $ 1,210        N/M   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Quarter to Date Net Charge-offs (Recoveries)

  $ 1,136      $ 1,118        1.7   $ 1,210        (6.1 %) 
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Quarter to Date Net Charge-offs to Average Loans (Annualized)

    0.05     0.06     (12.0 %)      0.06     (9.3 %) 

 

(1) 

During the second quarter of 2013, the Company segregated its allowance for credit losses into an allowance for loan losses and a reserve for unfunded commitments, which is included in other liabilities on its balance sheet.

(2) 

For purposes of this table, nonperforming assets include all loans meeting nonperforming asset criteria, including assets acquired in FDIC-assisted transactions.

(3) 

Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due.

N/M - Comparison of the information presented is not meaningful given the periods presented.


Table 6—IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

 

      June 30,     March 31,  

LOANS (Ex-Covered Assets and Acquired Impaired Loans) (1)

   2013     2012     % Change     2013     % Change  

Residential Mortgage Loans:

     350,458        235,221        49.0     300,555        16.6

Commercial Loans:

          

Real Estate

     3,184,515        2,626,391        21.3     2,970,535        7.2

Business

     2,615,495        2,179,919        20.0     2,531,272        3.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Commercial Loans

     5,800,010        4,806,310        20.7     5,501,807        5.4

Consumer Loans:

          

Indirect Automobile

     351,586        309,757        13.5     342,067        2.8

Home Equity

     1,118,594        937,299        19.3     1,088,685        2.7

Automobile

     76,269        49,402        54.4     66,237        15.1

Credit Card Loans

     52,243        45,693        14.3     50,823        2.8

Other

     188,960        123,034        53.6     182,600        3.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Consumer Loans

     1,787,652        1,465,185        22.0     1,730,412        3.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Loans

     7,938,120        6,506,716        22.0     7,532,774        5.4
      

 

 

     

 

 

 

Allowance for Loan Losses

     (66,481     (79,999       (74,217  
  

 

 

   

 

 

     

 

 

   

Loans, Net

   $ 7,871,639      $ 6,426,717        $ 7,458,557     
  

 

 

   

 

 

     

 

 

   

Reserve for Unfunded Commitments (2)

     (10,342     —          100.0     —          100.0

Allowance for Credit Losses

     (76,823     (79,999     (4.0 %)      (74,217     3.5

ASSET QUALITY DATA (Ex-Covered Assets and Acquired

Impaired Loans) (1)

   June 30,     March 31,  
   2013     2012     % Change     2013     % Change  

Nonaccrual Loans

   $ 71,556      $ 66,545        7.5   $ 66,659        7.3

Foreclosed Assets

     32        —          100.0     48        (32.5 %) 

Other Real Estate Owned

     25,861        18,681        38.4     26,467        (2.3 %) 

Accruing Loans More Than 90 Days Past Due

     2,118        1,275        66.2     2,827        (25.1 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Nonperforming Assets

   $ 99,567      $ 86,501        15.1   $ 96,001        3.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loans 30-89 Days Past Due

   $ 20,198      $ 16,833        20.0   $ 15,912        26.9

Troubled Debt Restructurings (3)

     10,425        22,630        (53.9 %)      18,508        (43.7 %) 

Current Troubled Debt Restructurings (4)

     1,813        669        171.0     2,124        (14.6 %) 

Nonperforming Assets to Total Assets

     0.86     0.84     2.9     0.83     3.8

Nonperforming Assets to Total Loans and OREO

     1.25     1.33     (5.7 %)      1.27     (1.6 %) 

Allowance for Loan Losses to Nonperforming Loans (5)

     90.2     118.0     (23.5 %)      106.8     (15.5 %) 

Allowance for Loan Losses to Nonperforming Assets

     66.8     92.5     (27.8 %)      77.3     (13.6 %) 

Allowance for Loan Losses to Total Loans

     0.84     1.23     (31.9 %)      0.99     (15.0 %) 

Allowance for Credit Losses to Nonperforming Loans (2) (5)

     104.3     118.0     (11.6 %)      106.8     (2.4 %) 

Allowance for Credit Losses to Nonperforming Assets (2) (5)

     77.2     92.5     (16.6 %)      77.3     (0.2 %) 

Allowance for Credit Losses to Total Loans (2) (5)

     0.97     1.23     (21.3 %)      0.99     (1.8 %) 

Year to Date Charge-offs

   $ 4,227      $ 4,237        (0.2 %)    $ 2,063        N/M   

Year to Date Recoveries

     (2,028     (1,796     13.0     (893     N/M   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Year to Date Net Charge-offs (Recoveries)

   $ 2,199      $ 2,441        (9.9 %)    $ 1,170        N/M   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Quarter to Date Net Charge-offs (Recoveries)

   $ 1,029      $ 1,102        (6.7 %)    $ 1,170        (12.1 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Quarter to Date Net Charge-offs to Average Loans (Annualized)

     0.05     0.07     (23.1 %)      0.06     (16.4 %) 

 

(1) 

For purposes of this table, nonperforming assets include all loans meeting nonperforming asset criteria, excluding assets acquired in FDIC-assisted transactions and acquired impaired loans.

(2) 

During the second quarter of 2013, the Company segregated its allowance for credit losses into an allowance for loan losses and a reserve for unfunded commitments, which is included in other liabilities on its balance sheet.

(3) 

Troubled debt restructurings meeting past due and nonaccruing criteria are included in loans past due and nonaccrual loans above.

(4) 

Current troubled debt restructurings are defined as troubled debt restructurings not past due or on nonaccrual status for the respective periods.

(5) 

Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due.

N/M—Comparison of the information presented is not meaningful given the periods presented.

 

 


Table 7—Non-Covered and Net Covered Loan Portfolio Volumes And Yields ($ in Millions)

 

     2Q 2012     3Q 2012     4Q 2012     1Q 2013     2Q 2013  
     Average
Balance
     Yield     Average
Balance
     Yield     Average
Balance
     Yield     Average
Balance
     Yield     Average
Balance
     Yield  

Non Covered Loans

   $ 6,374         4.68   $ 6,863         4.55   $ 7,272         4.52   $ 7,504         4.44   $ 7,794         4.40

FDIC Covered Loans

   $ 1,219         16.66   $ 1,154         18.88   $ 1,112         17.53   $ 1,039         16.05   $ 955         12.62
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Covered Loans, net of Indemnification Asset Amortization

   $ 1,727         7.44   $ 1,603         7.60   $ 1,523         7.68   $ 1,424         5.35   $ 1,223         5.11
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 


Table 8—IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

Taxable Equivalent Basis

(dollars in thousands)

 

     For The Quarter Ended  
     June 30, 2013     March 31, 2013     June 30, 2012  
     Interest     Average
Balance
    Average
Yield/Rate (%)
    Average
Balance
    Average
Yield/Rate (%)
    Average
Balance
    Average
Yield/Rate (%)
 

ASSETS

              

Earning Assets:

              

Loans Receivable:

              

Mortgage Loans

     7,526      $ 494,531        6.09   $ 472,112        6.32   $ 446,189        7.42

Commercial Loans (TE) (1)

     81,049        6,321,599        5.17     6,205,785        5.80     5,510,619        6.65

Consumer and Other Loans

     26,667        1,932,346        5.54     1,865,641        5.91     1,635,869        6.25
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Loans

     115,242        8,748,476        5.30     8,543,538        5.85     7,592,677        6.61

Loss Share Receivable

     (18,130     268,700        -26.69     384,319        -28.83     508,443        -22.16
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Loans and Loss Share Receivable

     97,112        9,017,176        4.35     8,927,857        4.36     8,101,120        4.80

Mortgage Loans Held for Sale

     1,351        170,620        3.17     178,387        2.97     135,273        3.64

Investment Securities (TE) (1)(2)

     8,978        2,059,502        1.92     2,042,275        1.92     1,992,933        2.40

Other Earning Assets

     736        338,668        0.87     678,917        0.52     348,267        0.84
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Earning Assets

     108,177        11,585,966        3.80     11,827,436        3.70     10,577,593        4.20

Allowance for Loan Losses

       (183,783       (245,384       (173,023  

Nonearning Assets

       1,479,368          1,492,956          1,412,531     
    

 

 

     

 

 

     

 

 

   

Total Assets

     $ 12,881,551        $ 13,075,008        $ 11,817,101     
    

 

 

     

 

 

     

 

 

   

LIABILITIES AND SHAREHOLDERS’ EQUITY

              

Interest-bearing liabilities

              

Deposits:

              

NOW Accounts

     1,983      $ 2,488,721        0.32   $ 2,464,922        0.32   $ 1,985,248        0.38

Savings and Money Market Accounts

     2,705        4,113,671        0.26     4,170,123        0.35     3,524,641        0.48

Certificates of Deposit

     4,372        2,025,823        0.87     2,130,948        0.89     2,313,176        1.14
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Interest-bearing Deposits

     9,060        8,628,215        0.42     8,765,993        0.47     7,823,065        0.65

Short-term Borrowings

     121        294,789        0.16     292,948        0.19     273,258        0.24

Long-term Debt

     2,514        293,746        3.39     411,933        3.16     425,313        3.07
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Interest-bearing Liabilities

     11,695        9,216,750        0.51     9,470,874        0.58     8,521,636        0.76

Noninterest-bearing Demand Deposits

       2,010,263          1,937,890          1,640,327     

Noninterest-bearing Liabilities

       125,932          135,176          151,036     
    

 

 

     

 

 

     

 

 

   

Total Liabilities

       11,352,945          11,543,940          10,312,999     

Shareholders’ Equity

       1,528,606          1,531,068          1,504,102     
    

 

 

     

 

 

     

 

 

   

Total Liabilities and Shareholders’ Equity

     $ 12,881,551        $ 13,075,008        $ 11,817,101     
    

 

 

     

 

 

     

 

 

   

Net Interest Spread

     $ 96,482        3.29   $ 92,871        3.12   $ 93,172        3.45

Tax-equivalent Benefit

       2,396        0.08     2,464        0.08     2,421        0.09

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

     $ 98,878        3.39   $ 95,335        3.23   $ 95,593        3.59

 

(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.


Table 9—IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

Taxable Equivalent Basis

(dollars in thousands)

 

     For The Six Months Ended  
     June 30, 2013     June 30, 2012  
     Interest     Average
Balance
    Average
Yield/Rate (%)
    Interest     Average
Balance
    Average
Yield/Rate (%)
 

ASSETS

            

Earning Assets:

            

Loans Receivable:

            

Mortgage Loans

     14,984      $ 483,383        6.20     16,737      $ 458,309        7.31

Commercial Loans (TE) (1)

     169,485        6,264,012        5.48     182,281        5,436,569        6.73

Consumer and Other Loans

     53,839        1,899,178        5.72     49,791        1,592,055        6.29
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Loans

     238,308        8,646,573        5.57     248,809        7,486,933        6.67

Loss Share Receivable

     (45,831     326,190        -27.95     (56,411     541,110        -20.62
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Loans and Loss Share Receivable

     192,477        8,972,763        4.35     192,398        8,028,043        4.84

Mortgage Loans Held for Sale

     2,676        174,482        3.07     2,281        126,230        3.61

Investment Securities (TE) (1)(2)

     17,838        2,050,935        1.92     22,391        1,990,068        2.45

Other Earning Assets

     1,602        507,853        0.64     1,400        366,562        0.77
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Earning Assets

     214,593        11,706,033        3.75     218,470        10,510,903        4.23

Allowance for Loan Losses

       (214,414         (179,487  

Nonearning Assets

       1,486,126            1,421,175     
    

 

 

       

 

 

   

Total Assets

     $ 12,977,745          $ 11,752,591     
    

 

 

       

 

 

   

LIABILITIES AND SHAREHOLDERS’ EQUITY

            

Interest-bearing liabilities

            

Deposits:

            

NOW Accounts

     3,927      $ 2,476,888        0.32     3,799      $ 1,954,809        0.39

Savings and Money Market Accounts

     6,261        4,141,741        0.30     8,585        3,502,857        0.49

Certificates of Deposit

     9,026        2,078,095        0.88     14,225        2,379,092        1.20
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Interest-bearing Deposits

     19,214        8,696,724        0.45     26,609        7,836,758        0.68

Short-term Borrowings

     262        293,874        0.18     309        248,662        0.25

Long-term Debt

     5,763        352,513        3.25     6,518        430,822        2.99
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Interest-bearing Liabilities

     25,239        9,343,111        0.54     33,436        8,516,242        0.79

Noninterest-bearing Demand Deposits

       1,974,276            1,585,416     

Noninterest-bearing Liabilities

       130,528            150,491     
    

 

 

       

 

 

   

Total Liabilities

       11,447,915            10,252,149     

Shareholders’ Equity

       1,529,830            1,500,442     
    

 

 

       

 

 

   

Total Liabilities and Shareholders’ Equity

     $ 12,977,745          $ 11,752,591     
    

 

 

       

 

 

   

Net Interest Spread

     $ 189,354        3.20     $ 185,034        3.44

Tax-equivalent Benefit

       4,860        0.08       4,793        0.09

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

     $ 194,214        3.31     $ 189,827        3.59

 

(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.


Table 10 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(dollars in thousands, except per share data)

 

     For The Quarter Ended  
     June 30, 2013     March 31, 2013     June 30, 2012  

Net Interest Income (GAAP)

   $ 96,482      $ 92,871      $ 93,172   

Effect of Tax Benefit on Interest Income

     2,396        2,464        2,421   
  

 

 

   

 

 

   

 

 

 

Net Interest Income (TE) (Non-GAAP) (1)

     98,878        95,335        95,593   
  

 

 

   

 

 

   

 

 

 

Noninterest Income (GAAP)

     42,489        44,491        41,694   

Effect of Tax Benefit on Noninterest Income

     485        506        487   
  

 

 

   

 

 

   

 

 

 

Noninterest Income (TE) (Non-GAAP) (1)

     42,974        44,997        42,181   
  

 

 

   

 

 

   

 

 

 

Taxable Equivalent Revenues (Non-GAAP) (1)

     141,852        140,332        137,774   
  

 

 

   

 

 

   

 

 

 

Securities Losses (Gains)

     57        (2,359     (901

Impact of New Accounting Standard

     4,967        5,453        —     

Other noninterest income

     —          —          —     
  

 

 

   

 

 

   

 

 

 

Taxable Equivalent Operating Revenues (Non-GAAP) (1)

   $ 146,876      $ 143,426      $ 136,873   
  

 

 

   

 

 

   

 

 

 

Total Noninterest Expense (GAAP)

   $ 117,361      $ 144,898      $ 109,022   

Less Intangible Amortization Expense

     (1,181     (1,183     (1,289
  

 

 

   

 

 

   

 

 

 

Tangible Noninterest Expense (Non-GAAP) (2)

     116,180        143,715        107,733   
  

 

 

   

 

 

   

 

 

 

Merger-related expenses

     —          157        456   

Severance expenses

     1,670        97        1,053   

Occupancy expenses and branch closure expenses

     4,925        375        2,743   

Impairment of indemnification asset

     —          31,813        —     

Debt prepayment

     —          2,307        —     

Termination of debit card rewards program

     450        —          —     

Professional expenses and litigation settlements

     150        —          1,661   
  

 

 

   

 

 

   

 

 

 

Tangible Operating Noninterest Expense (Non-GAAP) (2)

   $ 108,985      $ 108,966      $ 101,820   
  

 

 

   

 

 

   

 

 

 

Return on Average Common Equity (GAAP)

     4.09     0.19     3.36

Effect of Intangibles (2)

     1.87     0.36     1.50

Effect of Non Operating Revenues and Expenses

     2.88     9.04     1.19
  

 

 

   

 

 

   

 

 

 

Operating Return on Average Tangible Common Equity (Non-GAAP) (2)

     8.85     9.59     6.05
  

 

 

   

 

 

   

 

 

 

Efficiency Ratio (GAAP)

     84.5     105.5     80.8

Effect of Tax Benefit Related to Tax Exempt Income

     (1.8 %)      (2.2 %)      (1.7 %) 
  

 

 

   

 

 

   

 

 

 

Efficiency Ratio (TE) (Non-GAAP) (1) 

     82.7     103.3     79.1

Effect of Amortization of Intangibles

     (0.8 %)      (0.8 %)      (0.9 %) 

Effect of Non-Operating Items and New Accounting Standard

     (7.7 %)      (26.5 %)      (3.8 %) 
  

 

 

   

 

 

   

 

 

 

Tangible Operating Efficiency Ratio (TE)(Non-GAAP) (1) (2)

     74.2     76.0     74.4
  

 

 

   

 

 

   

 

 

 

 

(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.


Table 11—IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1)

(dollars in thousands)

 

     For The Quarter Ended  
     June 30, 2013     March 31, 2013     June 30, 2012  
     Dollar Amount           Dollar Amount           Dollar Amount        
     Pre-tax     After-tax (2)     Per
share
    Pre-tax     After-tax (2)     Per
share
    Pre-tax     After-tax (2)     Per
share
 

Net Income (Loss) (GAAP)

   $ 19,803      $ 15,590      $ 0.53      $ (4,159   $ 717      $ 0.02      $ 16,949      $ 12,560      $ 0.43   

Noninterest income adjustments

                  

Loss (Gain) on sale of investments

     57        37        0.00        (2,359     (1,533     (0.05     (901     (586     (0.02

Other noninterest income

     —          —          —          —          —          —          —          —          —     

Noninterest expense adjustments

                  

Merger-related expenses

     —          —          —          157        102        0.00        456        296        0.01   

Severance expenses

     1,670        1,086        0.04        97        63        0.00        1,053        685        0.02   

Impairment of indemnification asset

     —          —          —          31,813        20,678        0.70        —          —          —     

Debt prepayment

     —          —          —          2,307        1,500        0.05        —          —          —     

Occupancy expenses and branch closure expenses

     4,925        3,201        0.11        375        244        0.01        2,743        1,783        0.06   

Termination of debit card rewards program

     450        293        0.01        —          —          —          —          —          —     

Professional expenses and litigation settlements

     150        97        0.00        —          —          —          1,661        1,080        0.04   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating earnings (Non-GAAP) (3)

     27,055        20,304        0.69        28,231        21,771        0.74        21,961        15,818        0.54   

Covered and acquired impaired (reversal of) provision for loan losses

     (1,537     (999     (0.03     565        367        0.01        4,624        3,006        0.10   

Other (reversal of) provision for loan losses

     3,344        2,174        0.07        (3,941     (2,562     (0.09     4,271        2,776        0.09   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Pre-provision operating earnings (Non-GAAP) (3)

   $ 28,862      $ 21,479      $ 0.73      $ 24,855      $ 19,576      $ 0.66      $ 30,856      $ 21,600      $ 0.73   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income (Loss) (GAAP)

   $ 19,803      $ 15,590      $ 0.53      $ (4,159   $ 717      $ 0.02      $ 16,949      $ 12,560      $ 0.43   

Impact of adoption of new accounting standard (4)

     4,967        3,228        0.11        5,453        3,544        0.12        —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings less impact of new accounting standard (Non-GAAP)

   $ 24,770      $ 18,818      $ 0.64      $ 1,294      $ 4,262      $ 0.14      $ 16,949      $ 12,560      $ 0.43   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating earnings including the impact of the adoption of new accounting standard (Non-GAAP)

   $ 27,055      $ 20,304      $ 0.69      $ 28,231      $ 21,771      $ 0.74      $ 21,961      $ 15,818      $ 0.54   

Impact of adoption of new accounting standard (4)

     4,967        3,228        0.11        5,453        3,544        0.12        —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating earnings less impact of new accounting standard (Non-GAAP)

   $ 32,022      $ 23,532      $ 0.80      $ 33,684      $ 25,315      $ 0.86      $ 21,961      $ 15,818      $ 0.54   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Per share amounts may not appear to foot due to rounding
(2) After-tax amounts estimated based on a 35% marginal tax rate
(3) Includes the impact of the adoption of ASU 2012-06 in the three-month periods ending June 30, 2013 and March 31, 2013
(4) Adjustments represent additonal amortization on the Company’s loss share receivable due to the adoption of ASU 2012-06 for the three month-periods ending June 30, 2013 and March 31, 2013. The amounts included above represents the incremental amortization as calculated using the yield on the covered portfolio for the three month period ending December 31, 2012. The Company expects the additional amortization (calculated on the same basis as the amount above) over the next four quarters to be as follows:

 

Quarter Ended

   Pre-tax Amount      After-tax Amount (2)      Per Share  (5)  

9/30/2013

   $ 5,085       $ 3,305       $ 0.11   

12/31/2013

     4,017         2,611         0.09   

3/31/2014

     3,315         2,155         0.07   

6/30/2014

     2,541         1,652         0.06   

 

(5) Per share amounts have been calculated using a sharecount that is consistent with the fully diluted sharecount for the quarter ended June 30, 2013
EX-99.2 3 d572947dex992.htm EX-99.2 EX-99.2
2Q13 Earnings Conference Call
Supplemental Presentation
2Q13 Earnings Conference Call
Supplemental Presentation
July 23, 2013
July 23, 2013
Exhibit 99.2


Safe Harbor Language
To
the
extent
that
statements
in
this
presentation
and
the
accompanying
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
level
of
market
volatility,
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
refinements
to
purchase
accounting
adjustments
for,
acquired
businesses
and
assets
and
assumed
liabilities
in
these
transactions,
adjustments
of
fair
values
of
acquired
assets
and
assumed
liabilities
and
of
deferred
taxes
in
acquisitions,
actual
results
deviating
from
the
Company’s
current
estimates
and
assumptions
of
timing
and
amounts
of
cash
flows,
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
systems
or
infrastructure
and
those
of
third-party
providers
of
those
services,
hurricanes
and
other
adverse
weather
events,
the
modest
trading
volume
of
our
common
sock,
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,
subsequent
Quarterly
Reports
on
Form
10-Q,
and
other
filings
with
the
Securities
and
Exchange
Commission
(the
“SEC”),
available
at
the
SEC’s
website,
http://www.sec.gov,
and
the
Company’s
website,
http://www.iberiabank.com,
under
the
heading
“Investor
Information.”
All
information
in
this
presentation
and
the
accompanying
press
release
is
as
of
the
date
of
this
release.
The
Company
undertakes
no
duty
to
update
any
forward-looking
statement
to
conform
to
the
statement
to
actual
results
or
changes
in
the
Company’s
expectations.
Certain
tabular
presentations
may
not
reconcile
because
of
rounding.
2
2


3
Operating EPS of $0.80 driven by higher net interest margin, relatively flat operating
expenses and balanced organic loan and core deposit growth
Organic loan growth:
Core deposit growth:
Deployed
$335
million
in
excess
liquidity
through
increased
loan
originations
16 basis point net interest margin increase
Tax equivalent net interest income increased $4 million or 4% offsetting a $241 million
or 2% decline in average earning assets
$2 million loan loss provision -
$3 million provision on legacy portfolio offset by $1
million recovery on the non covered acquired portfolio
Introductory Comments
Second Quarter 2013 –
Summary Comments
$394 million since March 31, 2013 (+21% annualized)
$1.7 billion since year-end 2011 (+18% annualized)
$66 million since March 31, 2012 (+3% annualized)
$1.7 billion since year-end 2011 (+16% annualized)
12 bps due to deployment of excess liquidity into loans
5 bps due to decline in deposit costs


4
Financial Overview
Financial Overview
Performance Metrics –
Yields and Costs
Investment yield unchanged
at 1.92%
Net covered loan yield
declined 24 bps due to
lower income and higher
covered loan balances;
decline in non-covered loan
yield of 4 bps
Average noninterest bearing
deposits up $72 million
(15% annualized)
Margin improved 16 bps to
3.39%;
12 bps due to deployment of
low yielding excess liquidity
into higher yielding loans
Interest bearing deposit costs
declined 5 bps
3/31/2013
6/30/2013
Investment Securities
1.92%
1.92%
(0)
         
bps
Covered Loans & Loss Share Receivable
5.35%
5.11%
(24)
      
bps
Noncovered Loans
4.44%
4.40%
(4)
         
bps
Loans & Loss Share Receivable
4.36%
4.35%
(1)
         
bps
Mortgage Loans Held For Sale
2.97%
3.17%
20
        
bps
Other Earning Assets
0.52%
0.87%
35
        
bps
  Total Earning Assets
3.70%
3.80%
10
        
bps
Interest Bearing Deposits
0.47%
0.42%
(5)
         
bps
Short-Term Borrowings
0.19%
0.16%
(3)
         
bps
Long-Term Borrowings
3.16%
3.39%
23
        
bps
  Total Interest Bearing Liabilities
0.58%
0.51%
(7)
         
bps
Net Interest Spread
3.12%
3.29%
17
        
bps
Net Interest Margin
3.23%
3.39%
16
        
bps
(1)
Earning asset yields are shown on a fully taxable equivalent basis.
Basis Point
Change
For Quarter Ended:


5
Financial Overview
Non-Interest Income Trends
Gains on sale of investments decreased $2.4 million or 102%
Mortgage loan income declined $1.2 million or  6%
Title insurance income increased $0.7 million, or 13%
Increased brokerage commissions of $0.3 million or 9%
Deposit service charge income increased $0.3 million, or 5%,
from 1Q13
2Q13 originations up 23% from 1Q13
Refinancings were 31% of production,
down from 40% in 1Q13
Sales up 11% in 2Q13 and up 27% over
2Q13
$18 million in 2Q13 revenues (down 6%)
due to pipeline valuations
Margins declined slightly; Small buyback
costs
Pipeline of $265 million at quarter-end
and $270 million on July 12    (+6%)
Noninterest Income ($000s)
2Q12
3Q12
4Q12
1Q13
2Q13
$ Change
% Change
Service Charges on Deposit Accounts
6,625
$   
6,952
$   
7,295
$   
6,797
$   
7,106
$   
309
$        
5%
ATM / Debit Card Fee Income
2,166
     
2,377
     
2,412
     
2,183
     
2,357
     
174
          
8%
BOLI Proceeds and CSV Income
905
         
916
        
909
        
939
        
901
        
(38)
           
-4%
Mortgage Income
18,185
   
23,215
   
22,935
   
18,931
   
17,708
   
(1,223)
      
-6%
Gain (Loss) on Sale of Investments, Net
901
         
41
          
(4)
           
2,359
     
(57)
         
(2,416)
      
-102%
Title Revenue
5,339
     
5,623
     
5,492
     
5,021
     
5,696
     
675
          
13%
Broker Commissions
3,102
     
3,092
     
4,192
     
3,534
     
3,863
     
329
          
9%
Other Noninterest Income
4,471
     
4,337
     
4,928
     
4,727
     
4,915
     
188
          
4%
Noninterest income excluding non-operating income
41,694
   
46,553
   
48,158
   
44,491
   
42,489
   
(2,002)
      
-5%
Non-operating income
-
          
-
         
2,196
     
-
         
-
         
-
                
-
Total Noninterest Income
41,694
46,553
$
50,354
$
44,491
$
42,489
$
(2,002)
$    
-5%
2Q13 vs. 1Q13
th


6
Financial Overview
Non-Interest Expense
Noninterest expenses excluding non-operating items
flat as compared to 1Q13
Total expenses down $28 million, or 19%, in 2Q13
Occupancy and branch closure costs up $5 million
No merger-related costs incurred, down $0.2 million
from 1Q13
Linked quarter increases/(decreases) of:
Mortgage commissions
1.8
$  
mil.
Severance expense
1.6
    
Litigation
0.2
    
FHLB debt extinguishment
(2.3)
   
OREO expense
(0.6)
   
Occupancy expense
(0.5)
   
0.2
$  
Noninterest Expense ($000s)
2Q12
3Q12
4Q12
1Q13
2Q13
$ Change
% Change
Mortgage Commissions
5,612
$      
6,006
$      
5,747
$      
4,327
$      
6,127
$      
1,800
$      
42%
Hospitalization Expense
3,404
        
3,773
        
4,005
        
4,407
        
3,994
        
(413)
          
-9%
Other Salaries and Benefits
48,011
      
49,270
      
50,675
      
53,668
      
53,694
      
26
             
0%
Salaries and Employee Benefits
57,028
$   
59,049
$   
60,426
$   
62,402
$   
63,815
$   
1,413
$      
2%
Credit/Loan Related
4,835
        
4,846
        
4,386
        
3,739
        
4,168
        
429
           
11%
Occupancy and Equipment
12,852
      
13,500
      
14,413
      
14,774
      
14,321
      
(453)
          
-3%
Amortization of Acquisition Intangibles
1,289
        
1,287
        
1,285
        
1,183
        
1,181
        
(2)
              
0%
All Other Noninterest Expense
27,105
      
26,611
      
30,328
      
28,050
      
26,681
      
(1,369)
       
-5%
Nonint. Exp. (Ex-Non-Operating Exp.)
103,109
105,293
110,838
110,148
110,166
18
$           
0%
Severance
1,053
        
712
           
370
           
97
             
1,670
        
1,573
        
1616%
Occupancy and Branch Closure Costs
2,743
        
284
           
711
           
375
           
4,925
        
4,550
        
1214%
Impairment of Indemnification Asset
-
            
-
            
-
            
31,813
      
-
            
(31,813)
    
-100%
Debt Prepayment
-
            
-
            
-
            
2,307
        
-
            
(2,307)
       
-100%
Termination of Debit Card Rewards Program
-
            
-
            
-
            
-
            
450
           
450
           
100%
Consulting and Professional
1,661
        
574
           
339
           
-
            
150
           
150
           
100%
Merger-Related Expenses
456
           
2,985
        
1,183
        
157
           
-
            
(157)
          
-100%
Total Noninterest Expense
109,022
109,848
113,441
144,898
117,361
(27,536)
$  
-19%
Tangible Efficiency Ratio - excl Nonop Exp
74.4%
71.2%
72.5%
76.0%
74.2%
2Q13 vs. 1Q13


7
Financial Overview
Non-Operating Items
Amortization of indemnification asset of $5.0 million in 2Q13 ($0.11 EPS)
Branch closure expense of $4.9 million in 2Q13 ($0.11 EPS)
2Q13 Severance expense of $1.7 million ($0.04 EPS)
(1)
Per share amounts may not appear to foot due to rounding
(2)
After-tax amounts estimated based on a 35% marginal tax rate
(3)
Includes the impact of the adoption of ASU 2012-06 in the three-month periods ending June 30, 2013 and March 31, 2013
(4)
Adjustments represent additonal amortization on the Company's loss share receivable due to the adoption of ASU 2012-06 for the three month-periods ending June 30, 2013 and
March 31, 2013.  The amounts  included above represents the incremental amortization as calculated using the yield on the covered portfolio for the three month period ending
December 31, 2012. The Company expects the additional  amortization (calculated on the same basis as the amount above) over the next four quarters to be as follows:
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(1)
(dollars in thousands)


8
Financial Overview
Performance Metrics –
Quarterly Trends
Average earning
assets down $241
million (-2%)
T/E net interest
income up $4
million (+4%)
Provision of $2
million:
Net charge-offs:
$1.1 million (0.05%
annualized rate)
Non covered
acquired loan loss
provision reversal:
$1.5 million
All other
provision: $3.3
million
6/30/2012
9/30/2012
12/31/2012
3/31/2013
6/30/2013
Net Income ($ in thousands)
12,560
21,234
23,208
$   
717
$       
15,590
2074%
Per Share Data:
Fully Diluted Earnings
0.43
$      
0.73
$      
0.79
$        
0.02
$      
0.53
$      
2011%
Operating Earnings (Non-GAAP)
(1)
0.54
0.83
0.80
0.86
0.80
-7%
Pre-provision Operating Earnings  (Non-GAAP)
0.73
0.92
0.91
0.66
0.73
10%
Tangible Book Value
37.28
37.07
37.34
36.93
36.30
-2%
Key Ratios:
Return on Average Assets
0.43%
0.69%
0.73%
0.02%
0.49%
46
bps
Return on Average Common Equity
3.36%
5.56%
6.02%
0.19%
4.09%
390
bps
Return on Average Tangible Common Equity (Non-GAAP)
4.86%
7.91%
8.62%
0.55%
5.96%
541
bps
Net Interest Margin (TE)
(2)
3.59%
3.58%
3.55%
3.23%
3.39%
16
bps
Tangible Efficiency Ratio (TE)
(2)
(Non-GAAP)
78.2%
74.3%
73.2%
102.4%
81.9%
(2,051)
bps
Tangible Common Equity Ratio (Non-GAAP)
9.37%
9.01%
8.66%
8.75%
8.69%
(6)
bps
Tier 1 Leverage Ratio
10.42%
10.01%
9.70%
9.37%
9.59%
22
bps
Tier 1 Common Ratio (Non-GAAP)
12.97%
12.04%
11.74%
11.39%
11.08%
(31)
bps
Total Risk Based Capital Ratio
15.54%
14.54%
14.19%
13.80%
13.45%
(35)
bps
Net Charge-Offs to Average Loans
(3)
0.07%
0.11%
0.01%
0.06%
0.05%
(1)
bps
Nonperforming Assets to Total Assets
(3)
0.84%
0.81%
0.85%
0.83%
0.86%
3
bps
(1)
Excludes the impact of the adoption of the new accounting standard.
(2)
Fully taxable equivalent basis.
(3)
Excluding FDIC Covered Assets and acquired impaired loans.
%/Basis Point
Change
For Quarter Ended:


9
Interest Rate Risk
Quarterly Re-pricing Schedule
$1.7 Billion in time deposits re-price over next 12 months at weighted average 0.68% rate
During 2Q13, new and re-priced time deposits were booked at an average cost of 0.32%
In 2Q13, retention rate of  time deposits was 83% with average reduction in rate of 25 basis points
$ in millions
Note:  Amounts exclude re-pricing of assets and liabilities from prior quarters
Excludes FDIC loans and receivable, non-accrual loans and market value adjustments
3Q13
4Q13
1Q14
2Q14
3Q14
Cash Equivalents
Balance
162.2
$      
-
$         
-
$         
-
$         
-
$         
Rate
1.28%
0.00%
0.00%
0.00%
0.00%
Investments
Balance
101.5
$      
85.1
$       
82.9
$       
83.2
$       
83.7
$       
Rate
2.83%
2.79%
2.59%
2.84%
3.04%
Fixed Rate Loans
Balance
337.2
$      
247.7
$      
237.0
$      
233.6
$      
207.6
$      
Rate
5.30%
5.15%
5.12%
5.09%
5.08%
Variable Rate Loans
Balance
3,736.7
$   
16.7
$       
16.8
$       
24.1
$       
4.0
$         
Rate
3.34%
4.30%
4.46%
4.61%
4.68%
Held for Sale Loans
Balance
162.0
$      
-
$         
-
$         
-
$         
-
$         
Rate
2.85%
0.00%
0.00%
0.00%
0.00%
Time Deposits
Balance
609.4
$      
419.9
$      
374.1
$      
250.7
$      
79.8
$       
Rate
0.52%
0.76%
0.85%
0.66%
0.84%
Repos
Balance
289.4
$      
-
$         
-
$         
-
$         
-
$         
Rate
0.15%
0.00%
0.00%
0.00%
0.00%
Borrowed Funds
Balance
135.0
$      
1.0
$         
0.8
$         
1.6
$         
8.8
$         
Rate
3.47%
4.20%
3.92%
4.15%
4.51%


10
Interest Rate Risk
Simulations
Source: Bancware model, as of June 30, 2013
* Assumes instantaneous and parallel shift in interest rates based on static balance sheet
Asset sensitive from an interest rate risk position
The degree of asset sensitivity is a function of the reaction of
competitors to changes in deposit pricing
Forward curve has a slightly positive impact over 12 months
Base
Blue
Forward
Change In:
-200 bp*
-100 bp*
Case
+100 bp*
+200 bp*
Chip
Curve
Net Interest
Income
-4.4%
-1.7%
0.0%
3.3%
6.8%
0.1%
0.9%
Economic
Value of
Equity
-15.5%
-13.5%
0.0%
4.7%
8.3%
0.0%
0.0%


11
Operating Improvement Initiative
Composition of Expected Benefits –
Updated for 2Q13
Expense Initiatives
Compensation
Branch closures
Other reductions
Branch closings
Closing 11 branch offices 
(+2 branches from 1Q13)
Contracts
Consumer products
IT Maintenance
Consulting
Marketing & Technology
Telephone
Other Items
Business travel
Occupancy expense
Professional services
Revenue Enhancements
Loan related fee income
Mortgage mandatory delivery
Increased origination activity
Service fees
$ in millions
$20.8 million pre-tax net benefit
realized in 2014 and beyond
40% of initiatives, representing
34% of total benefits, were
completed through June 2013
Salary & Benefits
40%
Branch Closings
18%
Contracts
13%
Marketing & Technology
7%
Other Expense
13%
  Total Expense
92%
Revenue Enhancements
8%
100%


12
Operating Improvement Initiative
Timing
of Expected Net Benefits
$ in thousands
$20.8 million annual pre-tax earnings run-rate improvement by 1Q14
92% expense reductions
8% revenue improvements
Aggregate
anticipated
$8.0
million
pre-tax
implementation
costs
up
from
$3.9
million in 1Q13
91% or $7.0 million of total implementation costs were incurred in 2Q13
Net benefit of $3.8 million in 2013
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2013
2014
2015
Actual
Estimated
Estimated
Estimated
Estimated
Estimated
Estimated
Estimated
Estimated
Estimated
Estimated
Expense Reductions
:
Branch closings
$585
$749
$951
$951
$951
$951
$951
$951
$2,286
$3,806
$3,806
Contracts
$229
$359
$490
$645
$645
$645
$645
645
1,078
2,580
2,580
Marketing & Technology
$63
$190
$236
$236
$236
$236
$236
236
490
945
945
Other expense
$436
$1,048
$1,196
$896
$896
$896
$896
$896
2,680
3,583
3,583
Salary & benefits
$1,056
$1,628
$2,018
$2,078
$2,078
$2,078
$2,078
2,078
4,702
8,310
8,310
$2,369
$3,974
$4,892
$4,806
$4,806
$4,806
$4,806
$4,806
$11,235
$19,224
$19,224
Revenue improvements
-
213
389
389
389
389
389
389
601
1,555
1,555
Total earnings enhancement
$2,369
$4,186
$5,280
$5,195
$5,195
$5,195
$5,195
$5,195
$11,836
$20,779
$20,779
Implementation cost
(7,037)
(1,000)
-
-
-
-
-
-
(8,036)
-
-
Net Benefit
($4,667)
$3,187
$5,280
$5,195
$5,195
$5,195
$5,195
$5,195
$3,800
$20,779
$20,779
Impact to Full Year
Quarterly Impact:


13
Asset Quality
Non-Performing Assets Trends
$ in thousands


14
Asset Quality
Legacy Portfolio
Asset Quality Summary
(Excludes FDIC covered assets and acquired impaired loans)
NPAs equated to 0.86%
of total assets, up 3 bps
compared to 1Q13
$183 million in classified
assets (-14% from
1Q13)
$108 million special
mention loans (-3% from
1Q13)
Net charge-offs of $1.0
million or an annualized
rate of 0.05% of
average loans
$3.3 million provision for
legacy franchise in
2Q13
     ($ thousands)
6/30/2012
3/31/2013
6/30/2013
Nonaccrual Loans
66,545
$     
66,659
$     
71,556
$     
8%
7%
OREO
18,681
       
26,515
       
25,893
       
39%
-2%
Accruing Loans 90+ Days Past Due
1,275
         
2,827
         
2,118
         
66%
-25%
Nonperforming Assets
86,501
       
96,001
       
99,567
       
15%
4%
Past Due Loans
84,653
       
85,398
       
93,872
       
11%
10%
Classified Loans
200,872
     
213,589
     
183,414
     
-9%
-14%
Nonperforming Assets/Assets
0.84%
0.83%
0.86%
2
        
bps
3
        
bps
NPAs/(Loans + OREO)
1.33%
1.27%
1.25%
(8)
       
bps
(2)
       
bps
Classified Assets/Total Assets
1.94%
1.84%
1.59%
(35)
     
bps
(25)
     
bps
(Past Dues & Nonaccruals)/Loans
1.30%
1.13%
1.18%
(12)
     
bps
5
        
bps
Provision For Loan Losses
4,271
$       
(3,941)
$      
3,344
$       
-22%
-185%
Net Charge-Offs/(Recoveries)
1,102
         
1,170
         
1,029
         
-7%
-12%
Provision Less Net Charge-Offs
3,169
$       
(5,111)
$      
2,315
$       
-27%
-145%
Net Charge-Offs/Average Loans
0.07%
0.06%
0.05%
(2)
       
bps
(1)
       
bps
Allowance For Loan Losses/Loans
1.23%
0.99%
0.84%
(39)
     
bps
(15)
     
bps
Allowance For Credit Losses/Loans
1.23%
0.99%
0.97%
(26)
     
bps
(2)
       
bps
For Quarter Ended:
% or Basis Point Change
Year/Year
Qtr/Qtr


15
Asset Quality
Total Portfolio Trends
     ($thousands)
Nonaccruals
625,938
463,075
409,775
-35%
-12%
OREO & Foreclosed
129,917
   
131,836
   
129,607
   
0%
-2%
90+ Days Past Due
8,270
      
5,697
      
4,126
      
-50%
-28%
  Nonperforming Assets
764,126
600,608
543,508
-29%
-10%
NPAs/Assets
6.30%
4.63%
4.24%
(206)
          
bps
(39)
            
bps
NPAs/(Loans + OREO)
9.71%
6.87%
6.02%
(369)
          
bps
(85)
            
bps
LLR/Loans
2.42%
2.21%
1.83%
(59)
            
bps
(38)
            
bps
ACL/Loans
2.42%
2.21%
1.95%
(47)
            
bps
(26)
            
bps
Net Charge-Offs/Loans
0.06%
0.06%
0.05%
(1)
              
bps
(1)
              
bps
Past Dues:
30-89 Days Past Due
46,391
$   
33,227
$   
35,204
$   
-24%
6%
90+ days Past Due
8,270
      
5,697
      
4,126
      
-50%
-28%
Nonaccual Loans
625,938
   
463,075
   
409,775
   
-35%
-12%
Total 30+ Past Dues
680,599
501,999
449,105
-34%
-11%
% Loans
8.80%
5.84%
5.04%
(376)
          
(80)
            
Total Portfolio
2Q12
1Q13
2Q13
% or Basis Point Change
Year/Year
Qtr/Qtr


16
Markets
Loan Growth
Organic Loan Growth
$ in millions
*
Organic
loan
growth
excludes
the
outstanding
balance
of
loans
acquired
in
non-covered
transactions
(e.g.,
OMNI,
Cameron,
and Florida Gulf) at the date of the acquisition in the respective acquisition periods
2nd Quarter 2013:
$394 million, or
+5% (+21%
annualized)
Since YE 2011:
$1.7 billion, or
+28% (+19%
annualized)
Since YE 2009:
$2.8 billion, or
+69% (+20%
annualized)
The FDIC
covered loan
portfolio declined
45%, or $752
million (13%
annualized rate)


17
Markets
Net Loan Growth By State –
2Q13
$ in millions
Excludes covered loan portfolio


18
Markets
Quarterly Organic Loan Growth
*Organic loan growth excludes the outstanding balance of  loans acquired in all transactions at the date of the acquisition in the respective acquisition periods
First quarter of each year tends
to exhibit slower loan growth
than other quarters


19
Markets
Loan Originations 2Q13 –Top Markets
$ in millions
$1.2 billion in total
funded loans and
unfunded loan
commitments
originated in 2Q13
Significant growth in
Houston, New
Orleans, Lafayette,
Birmingham and Baton
Rouge
Continued growth in
other markets in which
we have invested
heavily
Loan commitments and originations include renewals


20
Excludes acquired deposits
Organic Deposit Growth
Core deposit growth
of $66 million, or
+0.08% (+3%
annualized)
Decrease of $45
million, or -0.4% in
2Q13 (-2%
Annualized)
$84 million (4%)
growth in NIB deposits
for 2Q13
$110 million (5%)
decline in time
deposits in 2Q13
Total Deposit Growth
Markets
Organic Deposit Growth
$ in millions
2nd Quarter 2013:


21
Markets
Non-Interest Bearing Deposit Accounts
Strong account growth in
high-focus markets


22
Markets
Noninterest Bearing Deposits
% of Total Deposits
Since 2010, total
noninterest bearing
deposits have
increased $1.2 billion
or +134% (+54%
annualized rate)
Strong growth in 2Q13;
+$84 million on a
linked quarter basis
(17% annualized rate)
Top 2Q13 noninterest
bearing deposit growth
markets include
Houston, New Orleans,
Birmingham, and
Baton Rouge
Noninterest bearing deposits at period-end


23
Markets
2Q13 Highlights
Loan pricing and structure remain competitive for target commercial and
business banking clients.
Houston, New Orleans, Acadiana, Birmingham and Baton Rouge showed
strong commercial loan originations
Loans and commitments originated during 2Q13 of $1.2 billion with 50% fixed
rate and 50% floating rate
Commercial loans originated and funded in 2Q13 totaled $499 million with a
mix of 35% fixed and 65% floating ($826 in commercial loan commitments
during the quarter)
Strong commercial pipeline of $738 million at quarter-end
Small business loan originations, including lines of credit, grew $87 million or
13% in 2Q13 (50% annualized)
Period-end core deposit growth of $66 million, with non-interest bearing
deposits up $84 million ($72 million linked quarter growth on an
average
balance basis)


24
Retail and Small Business
2Q13 Progress
Completed closure and consolidation of 3 branches in the second quarter of 2013, as
planned, with another 10 branches to be closed in the third quarter.
Balanced loan growth with Small Business, Consumer and Mortgage accounting for 46%
of total bank-wide loan growth:
Small Business of $61 million
Indirect of $10 million
Direct Consumer and Mortgage of $108 million
Small Business account growth decreased 5% on a linked quarter basis and
increased 16% from 2Q12
Consumer accounts growth decreased 7% on a linked quarter basis and up 38%
from 2Q12
Continued emphasis on branch efficiency, productivity and enhanced digital delivery,
with Retail staffing mid July down 7.8% from end of first qtr, with staff costs down 6.7%.
FTEs and staff costs to decline further in 3rd qtr with branch closures.
Continued investment with the addition of 4 new business bankers
during the 2nd quarter
Checking account growth in new accounts remains strong, with account openings off
slightly from prior quarter:


25
Wealth And Capital Markets
2Q13 Progress
ICP/IWA revenues
of $3.0 million (up
3% compared to
1Q13 and up 46%
from 2Q12)
ICP currently
provides research
coverage on 72
public energy
companies
IWA assets under
management
increased 1%, to
$1.1 billion at June
30, 2013


Appendix
26


27
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
$0
$200
$400
$600
$800
$1,000
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Projected Average Loan Balances and Net Yields
Projected Average Balance
Projected Net Yield
Appendix
Expected Amortization Comparison


28
Appendix
Expected Amortization Comparison
$(30.00)
$(25.00)
$(20.00)
$(15.00)
$(10.00)
$(5.00)
$-
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Millions
Indemnification Asset Expected Amortization ($ in Millions)
Current Method
Legacy Method


29
Appendix
FDIC Covered Loan Portfolio Roll Forward
Average
Income /
Expense
Average
Yield
Average
Income /
Expense
Average
Yield
Average
Income /
Expense
Average
Yield
Average
Income /
Expense
Average
Yield
Covered Loans
1,153,954
55,400
18.878%
1,112,153
49,550
17.528%
1,039,469
41,607
16.047%
954,555
30,324
12.619%
Mortgage Loans
169,580
5,306
12.517%
155,989
5,318
13.636%
180,902
4,398
9.724%
170,420
4,135
9.706%
Indirect Automobile
(0)
-
0.000%
(0)
-
0.000%
(0)
-
0.000%
-
-
0.000%
Credit Card
853
14
6.746%
860
14
6.664%
824
13
6.565%
789
14
7.147%
Consumer
149,877
5,282
14.020%
148,001
5,308
14.267%
130,960
3,509
10.867%
126,164
2,594
8.248%
Line Of Credit-Consumer Loans
72,598
3,462
18.971%
69,910
3,661
20.831%
41,802
3,200
31.044%
40,543
2,967
29.355%
Commercial & Business Banking
761,048
41,335
21.257%
737,394
35,250
18.706%
684,981
30,487
17.803%
616,642
20,613
13.224%
Loans in Process
(3)
-
0.000%
(1)
-
0.000%
(1)
-
0.000%
(3)
-
0.000%
Overdrafts
0
-
0.000%
0
-
0.000%
0
-
0.000%
0
-
0.000%
FDIC Loss Share Receivable
448,746
(33,488)
-29.201%
411,328
(28,201)
-26.828%
384,319
(27,702)
-28.832%
268,700
(18,130)
-26.692%
Net Covered Loan Portfolio
1,602,700
21,912
7.596%
1,523,481
21,349
7.678%
1,423,788
13,905
5.351%
1,223,255
12,194
5.110%
Average
Income /
Expense
Average
Yield
Average
Income /
Expense
Average
Yield
Average
Income /
Expense
Average
Yield
Average
Income /
Expense
Average
Yield
Covered Loans
1,153,954
55,400
18.878%
1,112,153
49,550
17.528%
1,039,469
41,607
16.047%
954,555
30,324
12.619%
CapitalSouth Bank
169,584
6,480
15.034%
150,872
6,737
17.537%
138,793
4,109
11.855%
131,981
3,610
10.852%
Orion Bank
651,176
35,154
21.221%
641,252
29,720
18.235%
597,706
25,287
16.960%
548,977
17,685
12.789%
Century Bank
244,874
8,047
12.967%
232,967
7,137
12.108%
219,726
6,401
11.703%
199,836
4,943
9.869%
Sterling Bank
88,322
5,718
25.371%
87,063
5,956
26.806%
83,245
5,810
27.941%
73,762
4,087
21.956%
FDIC Loss Share Receivable
448,746
(33,488)
-29.201%
411,328
(28,201)
-26.828%
384,319
(27,702)
-28.832%
268,700
(18,130)
-26.692%
CapitalSouth Bank
40,443
(3,213)
-31.088%
35,811
(3,431)
-37.492%
29,301
(2,388)
-32.596%
18,955
(2,347)
-48.987%
Orion Bank
271,457
(22,983)
-33.130%
251,749
(17,944)
-27.892%
235,594
(17,330)
-29.423%
164,219
(10,492)
-25.277%
Century Bank
101,167
(3,875)
-14.987%
92,076
(3,200)
-13.601%
90,384
(4,100)
-18.146%
65,145
(3,105)
-18.857%
Sterling Bank
35,680
(3,417)
-37.472%
31,691
(3,625)
-44.761%
29,040
(3,884)
-53.502%
20,382
(2,185)
-42.404%
Net Covered Loan Portfolio
1,153,954
21,912
7.596%
1,112,153
21,349
7.678%
1,039,469
13,905
5.351%
954,555
12,194
5.110%
CapitalSouth Bank
169,584
3,267
7.706%
150,872
3,305
8.764%
138,793
1,721
4.961%
131,981
1,262
3.826%
Orion Bank
651,176
12,171
7.477%
641,252
11,776
7.345%
597,706
7,958
5.326%
548,977
7,192
5.240%
Century Bank
244,874
4,173
6.816%
232,967
3,937
6.760%
219,726
2,301
4.188%
199,836
1,837
3.678%
Sterling Bank
88,322
2,301
10.420%
87,063
2,331
10.709%
83,245
1,925
9.252%
73,762
1,903
10.317%
2Q2013
3Q2012
4Q2012
1Q2013
2Q2013
3Q2012
4Q2012
1Q2013
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