Filed by IBERIABANK Corporation
Pursuant to Rule 425 under the Securities Act of 1933,
as amended
Subject Company: Florida Bank Group, Inc.
Old Florida Bancshares, Inc.
Commission File No: 000-53813
Commission File No: 000-25756
 MAKING THE MOST OF IT
November 2014 |
 Safe
Harbor And Legend 2
Statements contained in this presentation which are not historical facts and which pertain to future
operating results of IBERIABANK Corporation and its subsidiaries constitute
“forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements involve significant risks and
uncertainties. Actual results may differ materially from the results discussed in these
forward-looking statements. Factors that might cause such a difference include, but are not
limited to, those discussed in IBERIABANK Corporation’s periodic filings with the SEC.
In connection with the proposed mergers, IBERIABANK Corporation will file Registration Statements
on Form S-4 that will contain proxy statement / prospectuses. INVESTORS AND SECURITY
HOLDERS ARE URGED TO CAREFULLY READ THE PROXY STATEMENT/ PROSPECTUSES
REGARDING THE PROPOSED TRANSACTIONS WHEN THEY BECOME AVAILABLE, BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders may obtain a free
copy of the proxy statement / prospectuses and other documents containing information about
IBERIABANK Corporation, Florida Bank Group, Inc. and Old Florida Bancshares, Inc., without
charge, at the SEC’s website at http://www.sec.gov. Copies of the proxy statement / prospectuses
and the SEC filings that will be incorporated by reference in the proxy statement / prospectuses
may also be obtained for free from the IBERIABANK Corporation website, www.iberiabank.com, under
the heading “Investor Information”.
This communication is not a solicitation of any vote or approval, is not an offer to purchase shares
of Old Florida Bancshares, Inc. common stock or Florida Bank Group, Inc. common stock, nor is it
an offer to sell shares of IBERIABANK Corporation common stock which may be issued in the
proposed mergers with Florida Bank Group, Inc. and Old Florida Bancshares, Inc. The issuance of
IBERIABANK Corporation common stock in the proposed mergers with Florida Bank Group, Inc.
and Old Florida Bancshares, Inc. would have to be registered under the Securities Act of 1933, as
amended (the “Act”), and such IBERIABANK Corporation common stock would be offered only
by means of prospectuses complying with the Act. |
 INTRODUCTION
Summary
•
Headquartered in Lafayette, Louisiana
•
Since 1887 –
Oldest And Largest Louisiana-Based Bank
•
Diverse
US
Gulf
Coast
Presence
–
Texas
To
Florida
•
Pro Forma Assets Of Over $17 Billion
•
Pro Forma Market Capitalization Of Over $2.5 Billion
•
Strong Asset Quality Measures
•
Conservative And We Don’t Cut Corners
•
Limit Loan Concentrations
•
Asset Sensitive From An Interest Rate Risk Position
•
Large, Diverse Fee-Based Businesses
•
Completed Five FDIC-Assisted Transactions
•
Completed Five Live-Bank Transactions, With Two Pending
•
Executing Efficiency And Process Improvements
3 |
 INTRODUCTION
Our Growth Path
4
ASSET GROWTH
1887-2014
•
Six-Fold Growth
Compared To The
Banking Industry
•
Asset Growth Is A
Function Of Both
Internal
(“Organic”) Growth
And Acquisitions
•
Averaged One Or
Two Acquisitions
Per Year
•
We Are Very
Selective
Regarding Our
Acquisition Targets |
 INTRODUCTION
Results Compared To Peers
•
Very Difficult Period: Credit & Interest Rate Cycles, Bank Crisis,
Hurricanes •
Since Year-End 1999, We Have Outperformed Peers In Many Aspects
•
Peers Include Both All Publicly Traded U.S. Bank Holding Companies And
$10 To $30 Billion-Asset Publicly Traded Bank Holding Companies
5
Source: SNL Financial |
 INTRODUCTION
Strategic Goals And Executive Compensation
•
Key Long-Term Financial Goals
Through 2016 Are As Follows:
Return on Average Tangible Equity
of 13% To 17%
Tangible Efficiency Ratio Of 60% Or
Less
Asset Quality In The Top 10% Of
Our Peers
Double-Digit Percentage Growth In
Fully-Diluted Operating EPS
•
Company Continues To Focus On
Improving Operating Efficiency And
Profitability
6
STRATEGIC GOALS
EXECUTIVE COMP CHANGES
•
Executive Compensation
Programs Were Redesigned To
Align With Strategic Goals,
Profitability Focus, And
Shareholder Value Creation
•
Short-Term Incentive Programs
Place Greater Emphasis On Pre-
Established Performance
Objectives (As Opposed To
Discretionary Objectives)
•
Long-Term Incentive Programs
Place Greater Emphasis On
Performance-Based Metrics (As
Opposed To Time-Based Metrics) |
 PRIMARY FOCUS “
”
Things do not change, we do.
-
Henry David Thoreau
7 |
 QUARTERLY EFFICIENCY RATIOS
PRIMARY FOCUS
Operating Efficiency Initiative
•
In Early 2013, Projected
Pre-Tax Savings Of $21
Million On An
Annualized Run-Rate
Basis, Or $0.46 Per
Share After-Tax
Annually
•
During 2013, Achieved
More Than $24 Million
Annualized Pre-Tax
Run-Rate Savings
•
In 2014, Another
Initiative Is Projected To
Achieve An Additional
$10.7 Million In Run-
Rate Savings: Through
3Q14, 85% Of Savings
Achieved
8 |
 PRIMARY FOCUS
Optimize Client Distribution Points
•
Enhanced Mobile
Banking And
Technological
Enhancements
9
•
Opened Two
Branches In 2Q14
And One Branch In
3Q14
•
Closed Three
Branches In 2Q14
•
Adding Two
Additional Branch
Openings By Year-
End 2014
•
Added 14 Branches
From Three
Acquisitions, Net Of
Consolidations, In
The First Half Of
2014 |
 FDIC & NON-FDIC LOAN TRENDS
PRIMARY FOCUS
Continue FDIC Loan Resolution
•
Through The Third Quarter
Of 2014, FDIC-Covered
Loans Declined $270
Million, Or 29%
•
The FDIC Loss Share
Receivable Declined $67
Million, Or 42%
•
Certain FDIC Loss Share
Programs Will Begin To
Expire In 2014
•
To Date, Credit Results
Were Substantially Better
Than We Expected
10 |
 COMMERCIAL COMMITMENT TRENDS
PRIMARY FOCUS
Grow High-Quality Client Base
•
Aggregate Year-To-Date
Loan Growth Of $1.6 Billion,
Or 17%, Through Third
Quarter Of 2014
•
Legacy Loan Growth Was
$892 million, Or 11% (14%
Annualized), Through Third
Quarter Of 2014
•
Notable Strength In:
Houston
Birmingham
New Orleans
Baton Rouge
Memphis
•
Unfunded Commitments And
Unused Lines Grew $241
Million, Or 8% Since Year-
End 2014
11
---------------------------Year
Ends ------------------------------ |
 PRIMARY FOCUS
Execute Small Business & Retail Initiatives
•
In 2012, We Launched A
Restructuring Of The Small
Business Lending Process
•
Additional Bankers Were Added In
2013 To Increase Small Business
Loan Volume
•
We Host A Small Business
Website, Titled “Small Business
Insights”
At www.iberiabank.biz
•
Gaining Retail Branch Efficiency
•
In 2013, Deployed 23 Cash Teller
Recyclers (Gaining Speed Of
Transactions And Efficiencies)
•
Digital Banking Services Through
Mobile Apps For iPhone, Android,
And Our New iPad App
•
Recently Added Mobile Deposit
Capture Service –
Allows Clients
To Make Deposits By Scanning
Checks Quickly And Easily On
Their Smartphones
SMALL BUSINESS
RETAIL BANKING
12 |
 PRIMARY FOCUS
Revenue Growth From Fee Income Businesses
13
Full Year
2013 vs.
2012
3Q
2014 vs.
3Q 2013
IBERIA Capital Partners
+63%
+64%
IBERIA Wealth Advisors
+26%
-3%
IBERIA Financial Services
-7%
+12%
Treasury Management
+31%
+22%
IBERIABANK Mortgage Company
-18%
-16%
Lenders Title Company
-2%
+2% |
 STOCK PRICE TREND SINCE
YEAR-END 2012
PRIMARY FOCUS
Improve Shareholder Returns
•
After Many Poor Years, 2013 Was
An Outstanding Year For Many
Bank Stocks
•
In 1Q14, Adjustment In FDIC Loss
Share Accounting Resulted In A
Near-Term Negative Impact To
Share Price
•
In 2Q14, Subsequent Efficiency
Improvements Resulted In
Rebound In Market Price
•
From Year-End 2012 Through
October 29, 2014, Our Total
Shareholder Return Was 43%.
Since Year-End 1999, Our
Annualized Total Return was 15%
14
Indexed results through October 29, 2014
Source: Bloomberg |
 L
O
N
G
-
T
E
R
M
P
E
R
S
P
E
C
T
I
V
E
“
”
15
Our favorite holding period is forever.
-
Warren Buffett |
 Data indexed at December 31, 1999
Organic loan growth excludes the impact of loan runoff on the FDIC
covered loan portfolio. LOAN GROWTH
1999 -
September 2014
LONG-TERM PERSPECTIVE
Loan Growth Compared To Industry
•
Between 2007 And
2012, We Tripled
Our Total Loans
•
Since 1999, Our
Organic Loan
Growth Was Four
Times Higher Than
The Banking Industry
•
Average Loans Up
13% In 2013 Versus
2012
•
Pending Florida
Bank Group And Old
Florida Bancshares
Acquisitions Will Add
Approximately $1.4
Billion in Total Loans
16
Source: Federal Reserve Board |
 AVERAGE LOAN YIELD
1996 -
September 2014
LONG-TERM PERSPECTIVE
Loan Yield Trends Compared To Industry
•
Loan Yield Was
Consistent With
Industry Until 2010
•
Higher Yield After
That Period Due, In
Part, To FDIC Loss
Share Asset Yields
•
Favorable Loan
Yield Trend In The
Second Half Of
2013
17
Source: SNL Financial |
 CORE DEPOSIT GROWTH
1999 -
September 2014
Core Deposit Growth Compared To Industry
LONG-TERM PERSPECTIVE
•
Between 2007 And
2012, We Tripled Our
Total Deposits
•
Five-Fold Growth In
Organic Core Deposits
Versus Industry
•
Average Total Deposits
Up 10% In 2013 Versus
2012
•
Strong Average Non-
Interest Bearing Deposit
Growth (Up 29%)
•
Pending Florida Bank
Group And Old Florida
Bancshares Acquisitions
Will Add Approximately
$1.4 Billion in Core
Deposits
18
Source: Federal Reserve Board |
 AVERAGE COST OF DEPOSITS
1996 -
September 2014
LONG-TERM PERSPECTIVE
Deposit Cost Trends Compared To Industry
•
Our Deposit Costs
Have Generally
Kept Pace With
Industry Deposit
Cost Structure
•
In 2013, We Were
Approximately On
Par With Industry
•
Part Of Cost
Reduction Was
Due To Favorable
Deposit Mix
Improvement
(More Non-interest
Bearing Deposits)
19
Source: SNL Financial |
 Loans By State
Deposits By State
LONG-TERM PERSPECTIVE
Geographic Diversification
•
Prior To 2007, 100% Of Loans And Deposits In Louisiana, Nearly All Of
Which Were Concentrated In Four Markets
•
On A Pro Forma Basis Louisiana Loans and Deposits Will Account For
Approximately 43% and 46, Of Total Franchise, Respectively
•
Pro Forma Of Pending Acquisitions Florida Will Account For 20% Of
Total Loans And 27% Of Total Deposits
•
Provides Significant Client Geographic Diversification
20
IBERIABANK loan and deposit information pro forma giving effect to pending acquisitions
of Florida Bank Group, Inc. and Old Florida Bancshares, Inc.
|
 Summary Trends
LONG-TERM PERSPECTIVE
•
Doubled In Size Between
1999 And The Time Of
Hurricane Katrina
•
Four-Fold Increase In
Size Post-Katrina
•
More Geographic And
Client Diversification
•
Expansion Into
Significant Growth
Markets
•
Paid Quarterly Cash
Dividends For 76
Consecutive Quarters
Pre-Historic
Era
Hurricane
Katrina Era
Recent Time
Period
21
* trailing twelve months
Total Loans
$0.8
billion
$1.9
billion
$11.1
billion
Total Deposits
$1.1
$2.2
$12.4
Total Assets
$1.4
$2.9
$15.5
Market Capitalization
$86
million
$487
million
$2.1
billion
Mortgage Loan Production
< $50 million
$235
million
$1.6
billion *
Locations
43
44
278
MSAs Served
3
5
25
Associates (full-time equivalent)
535
686
2,703
Advisory Boards
None
5
13
Shareholders of Record
1,140
1,700
2,890
Analyst Coverage
2
10
11
Top 3 Shareholders
23.0%
14.0%
16.0%
Period-End Share Price
11.00
$
51.01
$
62.51
$
Tangible Book Value Per Share
9.95
$
17.07
$
37.41
$
Price to Tangible BVS
1.11
times
2.99
times
1.67
times
Operating Earnings Per Share
1.28
$
2.24
$
3.61
$
*
Annual Dividends Per Share
0.53
$
1.00
$
1.36
$
Dividend Payout Ratio
41%
45%
38%
Year-End
1999
Year-End
2005
September 30,
2014 |
 PLANTING SEEDS
The difference between
ordinary and extraordinary is
that little extra.
-
Jimmy Johnson
“
”
22 |
 PLANTING SEEDS
IBERIABANK Mortgage Company
Overall Industry Changes:
What We Are Doing:
QUARTERLY MORTGAGE LOAN ORIGINATION GROWTH
(% Change Since 1Q 2008)
23
Source: Mortgage Bankers Association 3Q14
•
Mortgage Market Is Smaller
From The Peak
•
Fewer Players
•
Regulatory Risk And Burden
Is Increasing
•
GSE Reform On The
Horizon
•
Digital And Internet Impact
•
Recruiting And Retaining
Experienced High Performing
Originators
•
Working Closer With
Branches
•
Improving Efficiency In
Processes And Staffing |
 PLANTING SEEDS
IBERIA Capital Partners
ICP REVENUES AND EQUITY
RESEARCH COVERAGE
•
ICP Started in 4Q10
•
In 2013, ICP
Launched Coverage
On 39 Energy-
Related; By Year-
End, ICP Had
Research Coverage
On 100 Companies
•
In 2013, Completed
23 Equity And Fixed
Income Investment
Banking
Transactions
•
ICP Turned
Profitable in 2013
24 |
 SMALL BUSINESS LOAN VOLUME TRENDS
PLANTING SEEDS
Small Business Initiative
•
Economy Is Improving,
Leading To An Increase In
Small Business Loan
Demand
•
Hired Additional Business
Bankers
•
Trained And Focused
Branch Managers On
Serving And Calling On
Small Businesses
•
Built Out Underwriting
Platform
•
Favorable Loan Growth
25
Acquired approximately $250
million in small business loans
from Teche in 2Q14 |
 THE RIGHT
PARTNERS
“
”
Few men have the virtue to
withstand the highest bidder.
-
George Washington
26 |
 Florida Bank Group, Inc.
THE RIGHT PARTNERS
27
•
Announced October 3, 2014
•
In market and new-market acquisition of a Florida-based
commercial bank based in Tampa, Florida
•
As of September 30, 2014:
•
Total Loans:
$324 million
•
Total Assets:
$518 million
•
Total Deposits:
$393 million
•
Total Equity:
$37 million common stock and $25
million in convertible preferred equity
•
Combination cash and common stock with aggregate cash
consideration not to exceed 50% of total consideration
•
$7.81 in cash per Florida Bank Group common share, and
•
Fixed exchange ratio of 0.149 of a share of IBKC common
stock for each Florida Bank Group share within price collars
and
floating
exchange
ratios
outside
of
the
collars
(1)
,
•
$87 million
(1)
for common stock outstanding based on IBKC
closing price of $62.61 on October 2, 2014
•
$17.14
per
Florida
Bank
Group
share
outstanding
(1)
•
$3.5 million in cash liquidation value of options
•
Neutral to 2015 EPS and accretive thereafter
•
Slightly dilutive to TVBS (less than 1%)
•
IRR in excess of 20%
Shareholders’
With All Other
Equity
Adjustments
(2)
•
Price / Total Book:
142%
126%
•
Price / Tangible Book:
142%
126%
Adds 13 branches in Florida – eight offices in Tampa, three in
Jacksonville, one in Sarasota and one in Tallahassee
(1)
If the weighted average trading price of IBERIABANK common stock were to go below $56.79 per share, or
to exceed $76.83 per share, over a specified period, the value of the common stock portion of the
transaction would become fixed and the exchange ratio would float
(2)
Assumes the impact of cash liquidation for options, reversal of $23.4 million of deferred tax asset
valuation allowance, credit loss assumptions, interest rate adjustments and fair value marks to
facilities |
 Notes:
(1)
The agreement provides for a fixed exchange ratio with pricing collars that fix the
value received by Old Florida’s shareholders if the weighted average
trading
price
of
IBERIABANK
Corporation’s
common
stock
were
to
decline
below
$57.31
per
share,
or
exceed
$70.05
per
share,
over
a
specified
period
(2)
Assumes
common
and
preferred
converted
shares
and
no
exercise
of
options
outstanding
(3)
Assumes all stock options outstanding are cashed out at consummation
•
Announced October 27, 2014
•
New-market acquisition of an Orlando, Florida-based
commercial bank
•
Adds
14
offices
in
Florida
–
12
offices
in
Orlando
and
two
offices north of Tampa
As of September 30, 2014:
•
Total Loans:
$1.1 billion
•
Total Assets:
$1.4 billion
•
Total Deposits:
$1.2 billion
•
Total Equity:
$146
million
total
shareholders’
equity
•
Tax-free, stock-for-stock exchange
•
Fixed exchange ratio of 0.34 share of IBKC common stock
for each Old Florida Bancshares, Inc. share within collars and
floating
exchange
rations
outside
of
collars
(1)
•
$238
million
for
total
equity
(2)
outstanding
based
on
IBKC’s
closing price of $64.13 on October 23, 2014
•
$21.80
per
Old
Florida
common
share
outstanding
(2)
•
Estimated $21 million in cash liquidation value of all options
outstanding
(3)
•
Approximately 2% accretive to EPS in 2016 and 3% accretive
in 2017
•
TBVS dilution of approximately 2% at consummation
•
TBVS breakeven in less than four years
•
IRR in excess of 20%
THE RIGHT PARTNERS
28
Old Florida
Bancshares, Inc.
Shareholders’
Aggregate Value
Equity
(2)
Including Options
(3)
•
Price / Total Book:
163%
178%
•
Price / Tangible Book:
170%
185% |
 THIRD QUARTER 2014
We cannot direct the wind,
but
we
can
adjust
the
sails.
-
Bertha Calloway
“
”
29 |
 SEASONAL INFLUENCES
Quarterly Organic Loan Growth
30
•
First quarter of each year tends to exhibit
slower loan growth than other quarters
•
3Q14 organic loan growth of $348 million,
down $34 million, or 10%, compared to
2Q14 growth |
 THIRD
QUARTER
2014
–
OVERVIEW
Non-Performing Asset Trends
31
NPA determination based on regulatory guidance for Acquired portfolios
3Q14 includes $13 million of bank-related properties reclassified to OREO
|
 THIRD
QUARTER
2014
–
OVERVIEW
Non-Interest Bearing Deposits
32
% of Total Deposits
•
$110 million of
incremental non-
interest-bearing
deposit growth or
+4% (+14%
annualized) in
3Q14
•
Top 3Q14 non-
interest-bearing
deposit growth
markets include
Houston, Baton
Rouge, New
Orleans,
Birmingham and
Sarasota
$ in billions
Non-interest-bearing deposits at period-end
|
 SEASONAL INFLUENCES
Mortgage Income
33
•
Mortgage 3Q14 Non-Interest Income of $12.8
million is $5.1 million lower than 2Q14 driven by
•
$7.0 million lower market value adjustment
gains (-$4.5 million recognized in 3Q14
versus +$2.5 million in 2Q14)
•
$1.8 million higher gains on increased sales
volume (+24%) and higher sales margins
(+6%)
•
$62,000 higher servicing income
•
Loan originations were up $20 million in 3Q14 to
$456 million from $436 million in 2Q14 (+5%)
•
The Pipeline plus Loans HFS at September 30th
was 11% lower than at June 30, 2014 |
 SEASONAL INFLUENCES
Capital Markets And Wealth Management
34
•
ICP revenues of
$2.7 million, or -9%,
compared to 2Q14
•
IWA revenues of
$1.5 million, or -4%,
compared to 2Q14
•
IFS revenues of $2.6
million, or +4%,
compared to 2Q14
•
ICP currently
provides research
coverage on 77
public energy
companies
•
IWA assets under
management
increased $5 million
to $1.2 billion on
September 30, 2014 |
 Summary
IBERIABANK Corporation
35
•
Longevity and Experience
•
Economically Vibrant Legacy Markets
•
Diversified Markets and Revenues
•
Multiple Growth Engines (Organic and M&A)
•
Disciplined, Yet Opportunistic
•
Exceptional Asset Quality
•
Outsized FDIC Loss Share Protection
•
Tremendous Capital Strength
•
Funded By Stable Core Deposits
•
Asset-Sensitive (Interest Rate Risk Position)
•
Unique Business Model
•
Favorable Risk/Return Trade-Off |
 |
 APPENDIX
I skate where the puck is going
to be, not where it has been.
37
-
Wayne Gretzky |
 APPENDIX
Performance Metrics –
Quarterly Trends
38
•
Average earning
assets up $1.3
billion (+10%)
•
T/E net interest
income up $12
million (+11%)
•
Provision for loan
losses of $6 million:
•
Legacy net charge-
offs: $2.1 million
(0.09% annualized
rate)
•
Covered and
acquired net charge
offs: $0.1 million
(0.02% annualized
rate)
•
Legacy provision for
loan losses: $4.0
million
9/30/2013
12/31/2013
3/31/2014
6/30/2014
9/30/2014
Net Income ($ in thousands)
23,192
$
25,604
$
22,395
$
18,548
$
29,744
$
60%
Per Share Data:
Fully Diluted Earnings
0.78
$
0.86
$
0.75
$
0.60
$
0.89
$
48%
Operating Earnings (Non-GAAP)
0.83
0.87
0.73
0.96
1.00
4%
Pre-provision Operating Earnings (Non-GAAP)
0.89
0.97
0.78
1.06
1.11
5%
Tangible Book Value
37.00
37.17
37.59
37.41
37.91
1%
Key Ratios:
Return on Average Assets
0.71%
0.77%
0.68%
0.53%
0.76%
23
bps
Return on Average Common Equity
6.08%
6.62%
5.83%
4.56%
6.52%
196
bps
Return on Average Tangible Common Equity (Non-GAAP)
8.74%
9.43%
8.36%
6.62%
9.68%
306
bps
Net Interest Margin (TE)
(1)
3.37%
3.52%
3.54%
3.48%
3.47%
(1)
bps
Tangible Operating Efficiency Ratio (TE)
(1)
(Non-GAAP)
73.0%
69.9%
73.6%
68.3%
66.4%
(182)
bps
Tangible Common Equity Ratio (Non-GAAP)
8.64%
8.55%
8.61%
8.46%
8.47%
1
bps
Tier 1 Leverage Ratio
9.65%
9.70%
9.61%
10.03%
9.22%
(81)
bps
Tier 1 Common Ratio (Non-GAAP)
10.95%
10.55%
10.44%
10.33%
10.34%
1
bps
Total Risk Based Capital Ratio
13.28%
12.82%
12.69%
12.43%
12.42%
(1)
bps
Net Charge-Offs to Average Loans
(2)
0.02%
0.07%
0.05%
0.04%
0.09%
5
bps
Non-performing Assets to Total Assets
(2)
0.66%
0.61%
0.49%
0.53%
0.46%
(7)
bps
(1)
Fully taxable equivalent basis.
(2)
Excluding FDIC Covered Assets and Acquired Assets.
For Quarter Ended:
Linked Quarter
%/Basis Point
Change |
 APPENDIX
Financial Summary –
3Q14
39
•
Reported EPS of $0.89 and non-GAAP operating EPS of $1.00
•
Tax equivalent net interest income increased $12.0 million, or 11% from 2Q14, while
average earning assets increased $1.3 billion, or 10%
•
Branch and systems conversion of First Private Bank completed over the weekend of
September 6-7, 2014
•
Legacy loan growth:
•
Legacy deposit growth:
•
Net
interest
margin
decreased
one
basis
point
to
3.47%
from
June
30,
2014,
due
mainly
to
a
one
basis
point increase in the yield on earning assets offset by a three basis point
increase in cost of funds -- within previously disclosed guidance
range of 3.45% to 3.50% •
Operating tangible efficiency ratio improved from 68.3% to 66.4%
•
Tax-equivalent operating revenues increased $9.1 million, or 6%, on a linked
quarter basis while operating expenses increased $3.4 million, or 3%,
resulting in improved operating leverage $348 million since June 30, 2014
(+16% annualized), including $146 million of Commercial and $202 million of
Small Business and Consumer
Growth in the loan portfolio was balanced with 58% Retail and Small
Business and 42% Commercial
$397 million since June 30, 2014 (+13% annualized)
$110 million increase in non-interest bearing deposits (+14%
annualized) |
 APPENDIX
Non-Interest Income –
3Q14 Components
40
•
Operating non-interest income
decreased $2.9 million, or -6%,
on a linked quarter basis |
 •
Deposit service charge income increased $2.0 million or 24%
•
ATM/Debit card fee income increased $0.4 million or 12%
•
Title revenue increased $0.3 million, or 6%
•
Mortgage income decreased $5.1 million or 29%
•
Decreased broker commissions income of $0.2 million or -3%
•
Gains on sale of investments increased $0.6 million
APPENDIX
Non-Interest Income Trends
41
3Q14 originations up 5% from 2Q14
Refinancings were 25% of production, up from
13% in 2Q14
Sales up 24% in 3Q14
Margins 6% higher in 3Q14
Pipeline of $170 million at quarter-end, down
6% as compared to June 30, 2014. At
October 10, 2014, the locked pipeline was
$194 million or +8% over September 30, 2014
Non-interest Income ($000s)
3Q13
4Q13
1Q14
2Q14
3Q14
$ Change
% Change
Service Charges on Deposit Accounts
7,512
$
7,455
$
7,012
$
8,203
$
10,205
$
2,002
$
24%
ATM / Debit Card Fee Income
2,476
2,493
2,467
2,937
3,287
350
12%
BOLI Proceeds and CSV Income
908
900
934
934
1,047
113
12%
Mortgage Income
15,202
12,356
10,133
17,957
12,814
(5,143)
-29%
Title Revenue
5,482
4,327
4,167
5,262
5,577
315
6%
Broker Commissions
3,950
4,986
4,048
5,479
5,297
(182)
-3%
Other Noninterest Income
7,720
6,179
5,129
7,182
6,854
(328)
-5%
Noninterest income excluding non-operating income
43,250
38,696
33,890
47,954
45,081
(2,873)
-6%
Gain (Loss) on Sale of Investments, Net
13
19
19
8
582
574
6797%
Other Non-operating income
-
-
1,772
1
-
(1)
-100%
Total Non-interest Income
43,263
$
38,715
$
35,681
$
47,963
$
45,663
$
(2,300)
$
-5%
3Q14 vs. 2Q14 |
 APPENDIX
Non-Interest Expense –3Q14 Components
42
•
Non-operating
non-interest
expense of $6.4
million before-tax,
or $4.2 million
after-tax or $0.12
per share
•
Operating non-
interest expense
increased $3.4
million, or 3%, on
a linked-quarter
basis
•
$1.7 million of the
operating
expense increase
was due to the
full quarter impact
of Teche and
First Private |
 APPENDIX
Non-Interest Expense Trends
43
Linked quarter increases/decreases of:
Salary and benefits expense
$0.4 mil
Credit/Loan related expense
1.5
Hospitalization expense
1.0
Other Incentives
(1.6)
Increased due to the timing and consummation of Teche and
First Private added approximately $1.7 million in operating
expenses in 3Q14
•
Non-interest expenses excluding non-operating items up
$3.4 million, or 3%, as compared to 2Q14
•
Total expenses down $7.3 million, or -6%, in 3Q14
•
Severance expense down $4.2 million, mostly related to
Teche acquisition
•
Impairment of long-lived assets up $3.0 million
•
Merger-related expense decreased $8.7 million
•
Operating Tangible Efficiency Ratio of 66.4%, down 190 bps
Non-interest Expense ($000s)
3Q13
4Q13
1Q14
2Q14
3Q14
$ Change
% Change
Mortgage Commissions
4,238
$
3,169
$
2,215
$
3,481
$
3,912
$
431
$
12%
Hospitalization Expense
4,303
3,899
3,944
3,661
4,611
950
26%
Other Salaries and Benefits
50,140
52,108
53,582
55,921
54,898
(1,023)
-2%
Salaries and Employee Benefits
58,681
$
59,176
$
59,741
$
63,063
$
63,421
$
358
$
1%
Credit/Loan Related
5,248
2,776
3,560
3,093
4,569
1,476
48%
Occupancy and Equipment
13,863
13,971
13,775
13,918
14,580
662
5%
Amortization of Acquisition Intangibles
1,179
1,177
1,218
1,244
1,493
249
20%
All Other Non-interest Expense
26,933
25,328
27,328
28,913
29,602
689
2%
Nonint. Exp. (Ex-Non-Operating Exp.)
105,904
$
102,428
$
105,622
$
110,231
$
113,666
$
3,435
$
3%
Severance
554
216
119
5,466
1,226
(4,240)
-78%
Occupancy and Branch Closure Costs
594
-
17
14
-
(14)
-100%
Storm-related expenses
-
-
184
4
1
(3)
-78%
Impairment of Long-lived Assets, net of gains on sales
977
(225)
541
1,241
4,213
2,972
239%
Provision for FDIC clawback liability
667
-
-
-
(797)
(797)
100%
Debt Prepayment
-
-
-
-
-
-
0%
Termination of Debit Card Rewards Program
-
(311)
(22)
-
-
-
0%
Consulting and Professional
(630)
-
-
-
-
-
0%
Merger-Related Expenses
85
566
967
10,419
1,752
(8,667)
-83%
Total Non-interest Expense
108,152
$
102,674
$
107,428
$
127,375
$
120,060
$
(7,315)
$
-6%
Tangible Efficiency Ratio - excl Nonop-Exp
73.0%
69.9%
73.6%
68.3%
66.4%
3Q14 vs. 2Q14 |
 APPENDIX
Legacy Credit Portfolio
44
Asset Quality Summary
(Excludes FDIC covered assets and all acquired loans)
•
NPAs equated to
0.46% of total assets,
down 7 bps compared
to 2Q14. Includes
$13 million of bank-
related properties
•
$67 million in
classified assets
(down $0.3 million
from 2Q14)
•
Legacy net charge-
offs of $2.1 million, or
an annualized rate of
0.09% of average
loans
•
$4 million provision
for legacy franchise in
3Q14
($ thousands)
9/30/2013
6/30/2014
9/30/2014
Non-accrual Loans
43,838
$
34,187
$
38,060
$
-13%
11%
OREO
30,607
34,794
23,477
-23%
-33%
Accruing Loans 90+ Days Past Due
1,418
20
4
-100%
-78%
Non-performing Assets
75,863
69,001
61,542
-19%
-11%
Note: NPAs excluding Former Bank Properties
65,345
50,415
48,808
-25%
-3%
Past Due Loans
57,662
48,189
50,505
-12%
5%
Classified Loans
78,059
67,796
67,462
-14%
0%
Non-performing Assets/Assets
0.66%
0.53%
0.46%
(20)
bps
(7)
bps
NPAs/(Loans + OREO)
0.98%
0.78%
0.67%
(31)
bps
(11)
bps
Classified Assets/Total Assets
0.66%
0.52%
0.50%
(16)
bps
(2)
bps
(Past Dues & Nonaccruals)/Loans
0.75%
0.55%
0.55%
(20)
bps
0
bps
Provision For Loan Losses
2,868
$
3,004
$
4,022
$
40%
34%
Net Charge-Offs/(Recoveries)
303
759
2,131
604%
181%
Provision Less Net Charge-Offs
2,565
$
2,245
$
1,891
$
-26%
-16%
Net Charge-Offs/Average Loans
0.02%
0.04%
0.09%
7
bps
5
bps
Allowance For Loan Losses/Loans
0.83%
0.80%
0.79%
(4)
bps
(1)
bps
Allowance For Credit Losses/Loans
0.99%
0.93%
0.92%
(7)
bps
(1)
bps
For Quarter Ended:
% or Basis Point Change
Year/Year
Qtr/Qtr |
 APPENDIX
Capital Ratios
45
•
The decline in Tier 1 leverage ratio in 3Q14 was due to the manner in which the
leverage ratio is calculated using capital in the numerator at
period-end and average total assets in the denominator
•
Commencing in 2015, the Company will experience a 50% phase-out of Tier 1
capital treatment for its trust preferred securities with no commensurate
change in total regulatory capital
•
In addition, by year-end 2014, the Company will experience the expiration of
FDIC loss share protection on non-single family loans associated with
three FDIC–assisted transactions •
Change in Tier 1
Leverage ratio due to
estimated impact of
acquisitions on average
total assets used in
calculations
Estimated Future Impacts:
•
Anticipated 50% phase-
out of trust preferred
securities beginning in
2015
•
Expiration of loss share
coverage on three FDIC-
assisted transactions
Q2 2014
Q3 2014
Well
Capitalized
Minimum
Tier 1 Leverage
10.03%
9.22%
(81)
bps
5.00%
Tier 1 Risk Based
11.23%
11.23%
0
bps
6.00%
Tier 1 Common Risk Based
10.33%
10.34%
1
bps
3.00%
Total Risk Based
12.43%
12.42%
(1)
bps
10.00%
Tangible Common Equity / Tangible Assets
8.46%
8.47%
1
bps
N/A
IBERIABANK Corporation Capital Ratios
Change
Estimated Proforma Impact on 3Q 2014 Capital Ratios
Phase out of Trust Preferred Securites (50% Phase Out)
(36)
bps
(45)
bps
-
bps
End of Loss Share -
certain covered assets
-
bps
(14)
bps
(17)
bps
Total Impact
(36)
bps
(59)
bps
(17)
bps
Total Risk Based
Tier 1 Risk Based
Tier 1 Leverage |
  APPENDIX
Non-GAAP Cash Margin
46
•
Adjustments represent accounting
impacts of purchase discounts on
acquired loans and related accretion
as well as the I/A and related
amortization on the covered portfolio
Balances, as
Reported
Adjustments
As Adjusted
3Q13
Average Balance
11,674,648
(199,543.31)
11,475,104
Income
97,452
101
97,554
Rate
3.37%
-0.01%
3.35%
4Q13
Average Balance
11,853,895
(192,574.05)
11,661,322
Income
103,438
(2,061)
101,377
Rate
3.52%
-0.02%
3.49%
1Q14
Average Balance
12,088,182
(171,440.32)
11,916,741
Income
104,408
(2,517)
101,890
Rate
3.54%
-0.10%
3.44%
2Q14
Average Balance
12,693,217
(156,606)
12,536,611
Income
108,979
687
109,665
Rate
3.48%
0.01%
3.49%
3Q14
Average Balance
13,990,968
(157,213)
13,833,755
Income
121,041
(3,544)
117,497
Rate
3.47%
-0.12%
3.35% |
 APPENDIX
Loan Growth Since Year-End 2008
47
December 31, 2008
$3.7 Billion
September 30, 2014
$11.1 Billion
Acquired loans, net of discount
+$4.0 billion
Acquired loan pay downs
($2.1 billion)
Legacy loan growth
+$5.4 billion
Total net growth
+$7.3 billion |
 APPENDIX
Deposit Growth Since Year-End 2008
48
December
31,
2008
$4.0 Billion
•
$8.4 billion growth in total
deposits or +210% (+36%
annualized)
September
30,
2014
$12.4 Billion |
 APPENDIX
Small Business and Retail –
3Q14 Progress
49
•
Small Business loan growth of $87 million, or +12%, on a linked-quarter basis
•
Indirect loan growth of $3 million, or +1%, on a linked-quarter basis
•
Consumer Direct & Mortgage loan growth of $128 million, or +7%, on a linked
quarter basis
•
Credit Card loan growth of $3 million, or +5%, on a linked quarter basis
•
Checking account growth:
•
Small Business checking accounts increased 13% year-over-year and an
annualized 9% on a linked quarter basis
•
Consumer checking accounts increased slightly year-over-year but decreased
an annualized 6% on a linked quarter basis due to expected attrition from
recently converted Teche portfolio
•
Continued
focus
on
productivity
and
efficiency
of
the
delivery
network
–
opened
one
branch in 3Q14, did not close any branches in 3Q14, and two additional branch
openings targeted by year-end 2014
•
Acceptance and usage of digital delivery continues to increase among our client
base Excludes acquired loans and deposits |
 APPENDIX
Market Highlights For 3Q14
50
•
Competitive pressure remains strong for high quality commercial and business
banking clients in terms of both pricing and structure
•
Houston, New Orleans, Baton Rouge, Birmingham, and Huntsville showed
strong commercial loan originations
•
Total commitments originated during 3Q14 of $1.2 billion with 34% fixed rate
and 66% floating rate
•
Commercial loans originated and funded in 3Q14 totaled $445 million with a
mix of 23% fixed and 77% floating ($775 million in commercial loan
commitments during the quarter)
•
Strong commercial pipeline in excess of $629 million at quarter-end
•
Total Small Business loan growth of $66 million, or +6%, on a linked-quarter
basis
•
Period-end core deposit increase of $307 million, with non-interest bearing
deposits up $110 million (up $309 million linked quarter growth on an
average balance basis) –
mainly as a result of the Teche and First Private acquisitions
|
 APPENDIX
Weekly Locked Mortgage Pipeline Trends
51
•
Significant pipeline
declines in winter
months
•
Seasonal rebound
commences at the
start of each year
through spring
months into early
summer
•
Most recent decline
was 40% since
start of October
2013
•
2014 trending is
consistent with
prior years
•
Weekly locked
pipeline was $194
million at October
10, 2014, up 8%
since September
30, 2014 |
 APPENDIX
Payroll Taxes And Retirement Contributions
52
3Q14 includes full quarter of Teche and First Private results
|
 APPENDIX
Checking NSF-Related Charges
53
3Q14 includes full quarter of Teche and First Private results
|
 APPENDIX
Non-Operating Items (Non-GAAP)
54
For The Quarter Ended
September 30, 2013
June 30, 2014
September 30, 2014
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)
$ 30,549
$ 23,192
$ 0.78
$ 24,819
$ 18,548
$ 0.60
$ 40,930
$ 29,744
$ 0.89
Non-interest income adjustments
Gain on sale of investments and other non-interest income
(13)
(8)
(0.00)
(9)
(6)
(0.00)
(582)
(378)
(0.01)
Non-interest expense adjustments
Merger-related expenses
85
55
0.00
10,419
6,840
0.22
1,752
1,139
0.04
Severance expenses
554
360
0.01
5,466
3,553
0.11
1,226
797
0.02
(Gain) Loss on sale of long-lived assets, net of impairment
977
635
0.02
1,241
807
0.03
4,213
2,738
0.08
(Reversal of) Provision for FDIC clawback liability
667
434
0.01
-
-
-
(797)
(518)
(0.02)
Other non-operating non-interest expense
(36)
(23)
(0.00)
18
12
0.00
1
1
(0.00)
Operating
earnings
(Non-GAAP)
(3)
32,783
24,644
0.83
41,954
29,754
0.96
46,743
33,523
1.00
Covered and acquired impaired (reversal of) provision for loan losses
(854)
(555)
(0.02)
1,744
1,134
0.04
1,692
1,100
0.03
Other (reversal of) provision for loan losses
2,868
1,864
0.07
3,004
1,953
0.06
4,022
2,614
0.08
Pre-provision
operating
earnings
(Non-GAAP)
(3)
$ 34,797
$ 25,954
$ 0.89
$ 46,702
$ 32,841
$ 1.06
$ 52,457
$ 37,237
$ 1.11
(dollars in thousands)
Non-operating adjustments equal to $5.8 million pre-tax or $0.11 EPS after-tax:
•
3Q14 Merger related expense of $1.8 million pre-tax or $0.04 EPS after-tax
•
3Q14 Severance expense of $1.2 million pre-tax or $0.02 EPS after-tax
•
Net impairment expense of $4.2 million pre-tax or $0.08 EPS after-tax
(1) Per share amounts may not appear to foot due to rounding.
(2) After-tax amounts estimated based on a 35% marginal tax rate.
•
Reversal of provisioning for FDIC clawback liability of $0.7 million pre-tax or $0.02 after
tax RECONCILIATION
OF NON-GAAP FINANCIAL MEASURES
(1) |
 APPENDIX
Expected Quarterly Re-Pricing Schedule
55
Excludes FDIC loans and receivable, non-accrual loans and market value adjustments
$ in millions
Note: Amounts exclude re-pricing of assets and liabilities from prior
quarters 4Q14
1Q15
2Q15
3Q15
4Q15
Cash Equivalents
Balance
481.1
$
-
$
-
$
-
$
-
$
Rate
0.69%
0.00%
0.00%
0.00%
0.00%
Investments
Balance
68.6
$
60.9
$
77.1
$
84.1
$
82.9
$
Rate
3.02%
2.97%
2.92%
2.75%
2.82%
Fixed Rate Loans
Balance
200.2
$
145.0
$
158.9
$
177.3
$
150.6
$
Rate
4.94%
4.95%
5.05%
4.96%
4.91%
Variable Rate Loans
Balance
4,840.3
$
35.4
$
40.4
$
44.4
$
17.5
$
Rate
3.28%
3.02%
3.11%
3.54%
3.36%
Held for Sale Loans
Balance
148.5
$
-
$
-
$
-
$
-
$
Rate
3.52%
0.00%
0.00%
0.00%
0.00%
Time Deposits
Balance
702.8
$
314.2
$
321.9
$
256.4
$
104.6
$
Rate
0.38%
0.62%
0.70%
0.80%
0.84%
Repos/ST Debt
Balance
504.8
$
180.0
$
125.0
$
-
$
-
$
Rate
0.15%
0.19%
0.20%
0.00%
0.00%
Borrowed Funds
Balance
126.5
$
2.1
$
10.1
$
3.3
$
1.9
$
Rate
3.11%
3.20%
3.49%
3.95%
3.60% |
 APPENDIX
Interest Rate Simulation
56
•
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 positive impact over 12 months
Source: Bancware model, as of September 30, 2014
* Assumes instantaneous and parallel shift in interest rates based on static
balance sheet Base
Blue
Forward
Change In:
-200 bp*
-100 bp*
Case
+100 bp*
+200 bp*
Chip
Curve
Net Interest
Income
-4.6%
-2.0%
0.0%
4.9%
9.8%
1.1%
1.0%
Economic
Value of
Equity
-12.1%
-17.7%
0.0%
2.7%
7.8%
-0.1%
-0.1% |
 APPENDIX
Expected Amortization
57
Projected average balance includes the balance of the Indemnification Asset
$ in Millions
Q1 2013
Revenues
Amortization
41.6
$
30.3
$
$
13.9
$
Q2 2013
Q3 2013
Q4 2013
2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
2014
Q1 2015
(17.0)
(25.1)
$
$
$
$
11.9
(27.7)
(18.1)
$
(29.1)
(97.8)
$
(8.7)
(70.1)
$
Net covered Income
$
12.2
Balance
1,424
$
1,224
$
$
$
$
23.0
$
$
93.1
$
$
(22.9)
$
(4.0)
$
42.1
$
5.1
$
$
23.0
1,100
$
941
$
1,171
$
846
$
756
$
670
$
573
$
711
504
30.9
$
139.9
25.9
30.2
13.9
$
6.7
$
6.0
5.3
$
7.9
$
$
$
8.0
37.1
$
8.0
(19.3)
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
$0
$300
$600
$900
$1,200
$1,500
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Projected Average Balance
Projected Net Yield
$
$
$
$
Projected Average Balances and Net Yields |