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): January 28, 2015
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
Registrants 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 January 28, 2015, the Registrant disclosed that it anticipates continued franchise improvement in 2015. Based on the assumptions in its current forecasts, its recent quarterly results, and projected economic conditions, the Registrant expects its operating earnings per share for the full year of 2015 to be in the range of $4.45 to $4.50 per share. The Registrant also disclosed that its estimated impact of the forward interest rate curve accounts for approximately 22 cents of the increase in earnings per share during the year.
The Companys operating EPS guidance for full year 2015 was based on the following significant assumptions:
| Recent forward interest rate curve projections; |
| Completion of the currently pending acquisitions in the first half of 2015; |
| No significant change in credit quality; |
| No significant changes to the preliminary purchase accounting marks assumed on the Companys most recently completed acquisitions; |
| No significant cash flow or credit quality changes on acquired assets; |
| Mortgage, title insurance, and capital markets projections continuing to reflect the current environment and expectations. |
On January 28, 2015, the Registrant announced its results of operations for the three and twelve months ended December 31, 2014. Copies of the related press release and supplemental materials are attached as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and are incorporated by reference herein.
Item 9.01 | Financial Statements and Exhibits |
(d) | Exhibits. |
Exhibit 99.1Press Release reporting fourth quarter and year end results, dated January 28, 2015, issued by the Registrant.
Exhibit 99.2Supplemental Materials to conference call. Furnished pursuant to Items 2.02 and 7.01 as part of this Current Report on Form 8-K and is 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: January 29, 2015 | By: | /s/ Daryl G. Byrd | ||||
Daryl G. Byrd | ||||||
President and Chief Executive Officer |
EXHIBIT INDEX
Exhibit |
||
99.1 | Press Release reporting fourth quarter and yearly results dated January 28, 2015, issued by the Registrant. | |
99.2 | Supplemental Materials to conference call. |
Exhibit 99.1
FOR IMMEDIATE RELEASE
January 28, 2015
Contact:
Daryl G. Byrd, President and CEO (337) 521-4003
John R. Davis, Senior Executive Vice President (337) 521-4005
IBERIABANK Corporation Reports Fourth Quarter Results
LAFAYETTE, LOUISIANA IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 127-year-old IBERIABANK (www.iberiabank.com), reported operating results for the fourth quarter ended December 31, 2014. For the quarter, the Company reported income available to common shareholders of $35.9 million, or $1.07 per fully diluted earnings per share (EPS). In the fourth quarter of 2014, the Company incurred non-operating income net of costs equal to $2.8 million on a pre-tax basis, or $0.02 per share on an after-tax basis. Excluding non-operating items, EPS in the fourth quarter of 2014 was $1.05 per share on a non-GAAP operating basis (refer to press release supplemental table.)
Daryl G. Byrd, President and Chief Executive Officer, commented, We are pleased with the financial progress we achieved in the fourth quarter and full year of 2014. For the fourth quarter of 2014, we experienced 21% annualized growth in quarter-end legacy loans combined with a net interest margin increase of four basis points, both of which were above our expectations. In fact, our legacy loan growth in the fourth quarter of 2014 was the second strongest in our Companys history. In addition, our asset quality measures improved, and we beat our tangible operating efficiency target for the quarter. For the full year 2014, we expanded our average assets by $1.6 billion, or 13%, experienced a 13 basis point improvement in net interest margin, enhanced our asset quality and operating efficiency, and increased operating EPS by 20%. We anticipate continued franchise improvement in 2015 as well. Based on the assumptions in our current forecasts, our recent quarterly results, and projected economic conditions, we expect our operating EPS for the full year of 2015 will be in the range of $4.45 to $4.50 per share, or a 19% to 21% increase compared to our 2014 operating EPS. The estimated impact of the forward interest rate curve accounts for approximately 22 cents of the increase in EPS during the year.
Byrd continued, Our efforts to expand our client base in a balanced manner and diversify our geographic mix showed great promise as well in the fourth quarter and full year of 2014. Since year-end 2013, our commercial loans grew 14%, consumer loans increased 25%, and mortgage loans climbed 84%. Of the 21 geographic commercial banking markets we serve, we experienced year-end loan growth in 18 markets and deposit growth in 17 markets, so our growth has been broad-based. During 2014, we entered the Dallas market and greatly expanded our presence in the Acadiana region in Louisiana. We also announced agreements to join forces with exceptional partners based in Tampa, Orlando, and Atlanta.
Highlights for the fourth quarter of 2014 and December 31, 2014:
| During the fourth quarter of 2014, the Company announced the signing of definitive agreements to acquire by merger Florida Bank Group, Inc. (Florida Bank Group) based in Tampa, Florida, Old Florida Bancshares, Inc. (Old Florida) based in Orlando, Florida, and Georgia Commerce Bancshares, Inc. (Georgia Commerce) based in Atlanta, Georgia. At December 31, 2014, the three pending acquisitions had total assets of $3.0 billion, gross loans of $2.1 billion, and total deposits of $2.5 billion. The Company anticipates closing the transactions in the first and second quarters of 2015, subject to customary closing conditions, including the receipt of regulatory and shareholder approvals. |
1
| The Companys tangible operating efficiency ratio was 65.9% in the fourth quarter of 2014, up slightly compared to the third quarter of 2014 and better than managements forecast. |
| On a linked quarter basis, operating non-interest income increased $0.2 million, or less than 1%, in the fourth quarter of 2014. Mortgage income decreased $0.6 million, or 4%, capital markets income decreased $1.0 million, or 36%, and credit card income increased $0.8 million, or 30%, on a linked quarter basis. |
| Total loan growth was $360 million, or 3%, between quarter-ends, while legacy loan growth, which excludes all assets covered under FDIC loss share agreements and other non-covered acquired assets (collectively, Acquired Assets), increased $489 million, or 5%, between quarter-ends (21% annualized rate). The loan growth was spread between small business (12%), consumer (22%), and commercial (66%). |
| Total deposits increased $143 million, or 1%, between quarter-ends. Core deposits, which excludes time deposits, increased $131 million, or 1% (5% annualized rate). Non-interest-bearing deposits increased $38 million, or 1%, between quarter-ends (5% on an annualized basis). |
| The Companys legacy asset quality remained strong in the fourth quarter of 2014. At December 31, 2014, and excluding Acquired Assets, nonperforming assets (NPAs) equated to 0.41% of total assets, loans past due 30 days or more equated to 0.68% of total loans, and classified assets equated to 0.43% of total assets. At year-end 2014, only a single energy-related loan, totaling approximately $30,000, was past due more than 30 days, and the Company experienced no energy-related charge-offs in 2014. |
| Net charge-offs totaled $1.8 million in the fourth quarter of 2014, or an annualized 0.06% of average loans. Over the past 12 quarters, net charge-offs averaged 0.05% of average loans. The Company recorded a $6.5 million loan loss provision in the fourth quarter of 2014, compared to $5.7 million in the third quarter of 2014. |
| The net interest margin increased four basis points on a linked quarter basis to 3.53%, which was above the previously disclosed guidance range of 3.45%, to 3.50% for the fourth quarter of 2014. |
During the Companys year-end financial statement close process, certain accounting entries recorded in the second and third quarters of 2014 related to the Companys mortgage banking operation were determined to be incorrect. The errors reduced the mortgage income line in the income statement by $4.4 million in the second quarter of 2014 and increased mortgage income by $1.5 million in the third quarter of 2014. The Company implemented changes to internal processes to reduce the likelihood of similar errors occurring in future periods. The financial information throughout this press release has been adjusted to reflect the correction of those entries. These adjustments had no impact on the financial results in the fourth quarter of 2014 or the full year 2014.
2
Table A - Summary Financial Results
For the Quarter Ended: | Linked Quarter | |||||||||||||||
Selected Financial Data |
12/31/2013 | 9/30/2014 | 12/31/2014 | % Change | ||||||||||||
Net Income ($ in thousands) |
$ | 25,604 | $ | 30,892 | $ | 35,936 | 16% | |||||||||
Per Share Data: |
||||||||||||||||
Fully Diluted Earnings |
$ | 0.86 | $ | 0.92 | $ | 1.07 | 16% | |||||||||
Operating Earnings (Non-GAAP) |
0.87 | 1.04 | 1.05 | 1% | ||||||||||||
Pre-provision Operating Earnings (Non-GAAP) |
0.97 | 1.15 | 1.17 | 2% | ||||||||||||
Tangible Book Value |
37.17 | 37.83 | 39.11 | 3% |
As of and for the Quarter Ended: | Linked Quarter | |||||||||||||||
Basis Point | ||||||||||||||||
Key Ratios |
12/31/2013 | 9/30/2014 | 12/31/2014 | Change | ||||||||||||
Return on Average Assets |
0.77 | % | 0.79 | % | 0.91 | % | 12 bps | |||||||||
Return on Average Common Equity |
6.62 | % | 6.78 | % | 7.78 | % | 100 bps | |||||||||
Return on Average Tangible Common Equity (Non-GAAP) |
9.43 | % | 10.10 | % | 11.46 | % | 136 bps | |||||||||
Net Interest Margin (TE) (1) |
3.52 | % | 3.49 | % | 3.53 | % | 4 bps | |||||||||
Tangible Operating Efficiency Ratio (TE) (Non-GAAP) (1) |
69.9 | % | 65.7 | % | 65.9 | % | 15 bps | |||||||||
Tangible Common Equity Ratio (Non-GAAP) |
8.55 | % | 8.45 | % | 8.60 | % | 15 bps | |||||||||
Tier 1 Leverage Ratio |
9.70 | % | 9.21 | % | 9.36 | % | 15 bps | |||||||||
Tier 1 Common Ratio (Non-GAAP) |
10.55 | % | 10.32 | % | 10.32 | % | (0) bps | |||||||||
Total Risk Based Capital Ratio |
12.82 | % | 12.40 | % | 12.30 | % | (10) bps | |||||||||
Net Charge-Offs to Average Loans (2) |
0.07 | % | 0.09 | % | 0.06 | % | (3) bps | |||||||||
Non-performing Assets to Total Assets (2) |
0.61 | % | 0.46 | % | 0.41 | % | (5) bps |
For the Quarter Ended: | ||||||||||||
GAAP | Non-GAAP | |||||||||||
Adjusted Selected Key Ratios |
12/31/2014 | Adjustments (3) | 12/31/2014 | |||||||||
Return on Average Assets |
0.91 | % | (0.02 | %) | 0.89 | % | ||||||
Return on Average Common Equity |
7.78 | % | (0.20 | %) | 7.58 | % | ||||||
Return on Average Tangible Common Equity (Non-GAAP) |
11.46 | % | (0.29 | %) | 11.17 | % | ||||||
Tangible Efficiency Ratio (TE)(1) (Non-GAAP) |
67.5 | % | (1.6 | %) | 65.9 | % |
(1) | Fully taxable equivalent basis. |
(2) | Excluding FDIC Covered Assets and Acquired Assets. |
(3) | Adjusted results exclude the income statement impact of the non-operating items included in Table 11, 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 increased $154 million, or 1%, as average loans increased $262 million, or 2%, average indemnification asset (IA) declined $26 million, or 23%, average investment securities increased $97 million, or 5%, and other earning assets decreased $178 million, or 24%. Also on a linked quarter basis, the average earning asset yield increased five basis points, and the cost of interest-bearing liabilities increased two basis points. As a result, the net interest spread increased three basis points, and the net interest margin increased four basis points. Tax-equivalent net interest income increased $3 million, or 2%, as average earning assets and the net interest margin increased on a linked quarter basis.
3
Table B - Quarterly Average Yields/Cost (1)
For Quarter Ended: | Linked Quarter | |||||||||||||||
Basis Point | ||||||||||||||||
12/31/2013 | 9/30/2014 | 12/31/2014 | Change | |||||||||||||
Investment Securities |
2.21 | % | 2.20 | % | 2.24 | % | 4 bps | |||||||||
Covered Loans, net of loss share receivable |
3.43 | % | 3.07 | % | 3.57 | % | 50 bps | |||||||||
Legacy Loans, net |
4.09 | % | 3.97 | % | 3.94 | % | (3) bps | |||||||||
Non-Covered Acquired Loans, net |
8.71 | % | 6.63 | % | 6.94 | % | 31 bps | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Loans & Loss Share Receivable |
4.33 | % | 4.31 | % | 4.32 | % | 1 bps | |||||||||
Mortgage Loans Held For Sale |
4.06 | % | 3.90 | % | 3.95 | % | 5 bps | |||||||||
Other Earning Assets |
0.94 | % | 0.60 | % | 0.80 | % | 20 bps | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Earning Assets |
3.87 | % | 3.83 | % | 3.88 | % | 5 bps | |||||||||
Interest-bearing Deposits |
0.39 | % | 0.39 | % | 0.41 | % | 2 bps | |||||||||
Short-Term Borrowings |
0.15 | % | 0.17 | % | 0.19 | % | 2 bps | |||||||||
Long-Term Borrowings |
3.37 | % | 2.75 | % | 2.73 | % | (2) bps | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Interest-bearing Liabilities |
0.47 | % | 0.46 | % | 0.48 | % | 2 bps | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Interest Spread |
3.40 | % | 3.38 | % | 3.41 | % | 3 bps | |||||||||
Net Interest Margin |
3.52 | % | 3.49 | % | 3.53 | % | 4 bps |
(1) | Earning asset yields are shown on a fully taxable-equivalent basis. |
During the fourth quarter, the legacy loan yield declined three basis points, while the non-covered acquired loan yield increased 31 basis points and the net covered loan yield (net of IA amortization) increased 50 basis points. The average covered loan volume declined $96 million, or 17%, average non-covered acquired loans declined $62 million, or 4%, and average legacy loans increased $420 million, or 5%. As a result of changes in volumes and yields, the associated net covered income declined slightly on a linked quarter basis. Changes in volumes and yields were influenced by the transfer from covered to non-covered acquired categories of loans associated with the former CapitalSouth loan portfolio as non-single family residential FDIC loss share coverage expired.
On a period-end basis, the IA declined $25 million, or 26%, from $95 million at September 30, 2014, to $70 million at December 31, 2014. The portion of the IA collectible from the FDIC decreased $9 million, or 30%. The portion of the IA collectible from other real estate owned (OREO) and customers declined $16 million, or 25%.
Aggregate non-interest income was stable on a linked quarter basis. Excluding non-operating items, operating non-interest income increased $0.2 million, or less than 1%. The primary changes in operating non-interest income on a linked quarter basis were:
| Increased credit card fee income of $0.8 million, or 30%; and |
| Increased corporate-owned life insurance income of $1.0 million (most of which was offset by an increase in benefit expense included in non-interest expense); partially offset by |
| Decreased capital markets revenue of $1.0 million, or 36%; and |
| Decreased mortgage income of $0.6 million, or 4%. |
Mortgage income was negatively impacted by $0.6 million lower market value adjustments (a negative $1.1 million adjustment in the fourth quarter of 2014 compared to a $0.5 million negative adjustment in the third quarter of 2014.) The Company experienced unseasonably strong production and sales volumes, as well as favorable pricing dynamics in the fourth quarter of 2014. Mortgage commission and production incentives expense (which is included in non-interest expense) increased $0.1 million, or 3%, on a linked quarter basis.
4
In the fourth quarter of 2014, the Company originated $459 million in residential mortgage loans, up $3 million, or 1%, on a linked quarter basis. Client loan refinancing opportunities accounted for approximately 36% of mortgage loan applications in the fourth quarter of 2014, compared to 25% in the third quarter of 2014. The Company sold $464 million in mortgage loans during the fourth quarter of 2014, down $24 million, or 5%, on a linked quarter basis. The mortgage origination locked pipeline and loans held for sale decreased $33 million, or 19% between September 30, 2014, and December 31, 2014. At January 23, 2015, the locked pipeline was $200 million, up $63 million, or 46%, compared to December 31, 2014. The mortgage loan origination business primarily focuses on retail mortgage loans originated by the Company.
Assets under management at IBERIA Wealth Advisors (IWA) were $1.4 billion at December 31, 2014, up 11% compared to September 30, 2014. Revenues for IWA increased 8% on a linked quarter basis, and were up 13% compared to the fourth quarter of 2013. IBERIA Financial Services revenues decreased 13% on a linked quarter basis, and were up 2% compared to the fourth quarter of 2013. The rapid decline in energy prices in the latter half of the fourth quarter of 2014 caused a significant reduction in capital markets activities at IBERIA Capital Partners (ICP), partially offset by improved trading and research income. As a result, ICP experienced a $1.0 million, or 36%, decline in revenues on a linked quarter basis.
Non-interest expense decreased $1.0 million, or 1%, on a linked quarter basis, while operating expense increased $2.2 million, or 2%. Operating expense changes included the following on a linked-quarter basis:
| Increased equity compensation expense of $1.2 million due to share price increase; |
| Increased corporate-owned life insurance expense of $0.7 million; |
| Increased marketing and business development expense of $0.5 million; and |
| Increased legal and professional services expense of $0.6 million; partially offset by |
| Decreased provision for unfunded commitments of $1.1 million; |
| Decreased other credit/loan related expenses of $1.0 million; and |
| Decreased payroll tax expense of $0.5 million. |
Through the fourth quarter of 2014, the Company essentially completed its targeted run-rate expense savings of $10.7 million. The Company continues to review its operating metrics for future opportunities to improve revenues and reduce expenses.
During the fourth quarter of 2014, the Company realized $2.9 million in tax benefits primarily a result of amending previously filed tax returns for federal and state tax credits not previously claimed. Absent this benefit, the Companys effective tax rate was 28.1% in the fourth quarter of 2014, a slight increase compared to the third quarter of 2014. The Company considered the tax benefit to be of a non-operating nature.
Loans
Total loans increased $360 million, or 3%, between September 30, 2014, and December 31, 2014. The loan portfolio covered under FDIC loss share protection at December 31, 2014, decreased $80 million, or 15%, compared to September 30, 2014. Excluding covered and Acquired Assets, total loans increased $489 million, or 5% (21% annualized rate), during the fourth quarter. Legacy commercial loans increased $381 million, or 6% (which included $56 million in business banking loan growth, up 7%, or 28% annualized rate), legacy consumer loans increased $77 million, or 4%, and legacy mortgage loans increased $31 million, or 6%, during the quarter. Period-end legacy loan growth during the fourth quarter of 2014 was strongest in the Houston, New Orleans, Birmingham, Lafayette, and Dallas markets. Funded loan origination and renewal mix in the fourth quarter of 2014 was 36% fixed rate and 64% floating rate, and total loans outstanding (excluding nonaccruals) were 48% fixed and 52% floating. Loans and commitments originated and/or renewed during the fourth quarter of 2014 totaled $1.2 billion (up 1% on a linked quarter basis).
5
Table C - Period-End Loans ($ in Millions)
Period-End Balances ($ Millions) | ||||||||||||||||||||||||||||||||
% Change (1) | Mix | |||||||||||||||||||||||||||||||
12/31/13 | 9/30/14 | 12/31/14 | Year/Year | Qtr/Qtr | Annualized | 9/30/14 | 12/31/14 | |||||||||||||||||||||||||
Commercial |
$ | 6,041 | $ | 6,622 | $ | 7,002 | 16 | % | 6 | % | 23 | % | 60 | % | 61 | % | ||||||||||||||||
Consumer |
1,833 | 2,061 | 2,139 | 17 | % | 4 | % | 15 | % | 19 | % | 19 | % | |||||||||||||||||||
Mortgage |
414 | 497 | 528 | 27 | % | 6 | % | 25 | % | 4 | % | 4 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Legacy Loans |
$ | 8,288 | $ | 9,180 | $ | 9,669 | 17 | % | 5 | % | 21 | % | 83 | % | 84 | % | ||||||||||||||||
Acquired Loans |
484 | 1,377 | 1,328 | 174 | % | -4 | % | -14 | % | 12 | % | 12 | % | |||||||||||||||||||
Covered Loans |
720 | 524 | 444 | -38 | % | -15 | % | -61 | % | 5 | % | 4 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Loans |
$ | 9,492 | $ | 11,081 | $ | 11,441 | 21 | % | 3 | % | 13 | % | 100 | % | 100 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Year over Year growth includes the impact of acquisitions. |
Energy-related loans outstanding totaled $881 million at December 31, 2014, up $41 million, or 5%, compared to September 30, 2014, and equated to approximately 7.7% of total loans. The Company expects energy-related loans to be less than 6.5% of total loans outstanding upon completion of the previously mentioned pending acquisitions. Exploration and production accounted for 52% of energy loans outstanding and 56% of energy commitments at year-end 2014. Midstream companies accounted for 17% of energy loans and commitments, and service company loans accounted for 31% of energy loans and 27% of energy commitments. Additional information regarding the Companys energy loan and commitment exposure is provided in the supplemental investor presentation.
In January 2015, the Company announced it will exit the indirect automobile lending business, a service the Company has successfully provided to select automobile dealers in the Companys footprint for 20 years. The Company concluded compliance risk associated with the indirect automobile lending business in general had become unbalanced relative to potential returns generated by the business on a risk-adjusted basis. At December 31, 2014, the Companys indirect automobile lending business had approximately $397 million in loans outstanding (3.5% of total loans outstanding) with 12 full-time equivalent employees. Based on current amortization rates and expected maturities, the vast majority of loan relationships will be exited within four years.
Deposits
Total deposits increased $143 million, or 1%, from September 30, 2014 to December 31, 2014. Non-interest-bearing deposits increased $38 million, or 1%, and equated to 26% of total deposits at December 31, 2014. NOW accounts increased $268 million, or 12%, while money market and savings account volume decreased $176 million, or 4%, between September 30, 2014 and December 31, 2014. Time deposits increased $12 million, or 1% between quarter-ends. Period-end deposit growth during the fourth quarter of 2014 was strongest in the Lafayette, Northwest Arkansas, Huntsville, Dallas, and Naples markets.
6
Table D - Period-End Deposits ($ in Millions)
Period-End Balances ($ Millions) | ||||||||||||||||||||||||||||||||
% Change (1) | Mix | |||||||||||||||||||||||||||||||
12/31/13 | 9/30/14 | 12/31/14 | Year/Year | Qtr/Qtr | Annualized | 9/30/14 | 12/31/14 | |||||||||||||||||||||||||
Non-interest |
$ | 2,576 | $ | 3,157 | $ | 3,195 | 24 | % | 1 | % | 5 | % | 25 | % | 26 | % | ||||||||||||||||
NOW Accounts |
2,283 | 2,195 | 2,463 | 8 | % | 12 | % | 49 | % | 18 | % | 19 | % | |||||||||||||||||||
Savings/MMkt |
4,167 | 4,922 | 4,746 | 14 | % | -4 | % | -14 | % | 40 | % | 38 | % | |||||||||||||||||||
Time Deposits |
1,711 | 2,104 | 2,116 | 24 | % | 1 | % | 2 | % | 17 | % | 17 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Deposits |
$ | 10,737 | $ | 12,378 | $ | 12,521 | 17 | % | 1 | % | 5 | % | 100 | % | 100 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Year over Year growth includes the impact of acquisitions. |
On an average balance and linked quarter basis, non-interest-bearing deposits increased $171 million, or 6%, and interest-bearing deposits increased $120 million, or 1%. The rate on average interest-bearing deposits in the fourth quarter of 2014 was 0.41%, an increase of two basis points on a linked quarter basis.
Other Assets And Funding
Excess liquidity averaged $354 million in the fourth quarter of 2014, down $136 million, or 28%, on a linked quarter basis. The investment portfolio increased $93 million, or 4%, to $2.3 billion on average in the fourth quarter of 2014. On a period-end basis, the investment portfolio equated to $2.3 billion, or 14% of total assets at December 31, 2014, unchanged compared to September 30, 2014. The investment portfolio had an effective duration of 2.9 years at December 31, 2014, compared to 3.2 years at September 30, 2014. The investment portfolio had a $13.3 million unrealized gain at December 31, 2014. The average yield on investment securities increased four basis points on a linked quarter basis to 2.24% in the fourth quarter of 2014. The Company holds in its investment portfolio primarily government agency securities. Municipal securities comprised only 7% of total investments at December 31, 2014. The Company holds for investment no sovereign debt, corporate debt or equity securities, trust preferred securities, or derivative exposure to foreign counterparties.
On a linked quarter basis, average short-term debt decreased $206 million, or 22%, and the cost of short-term debt increased two basis points. Average long-term debt increased $36 million, or 10%, and the cost of debt decreased two basis points to 2.73%. The cost of average interest-bearing liabilities was 0.48% in the fourth quarter of 2014, an increase of two basis points on a linked quarter basis.
Asset Quality
Legacy assets consist of assets originated by the Company and not acquired. To provide additional consistency and transparency for financial reporting of Acquired Assets, the Company divides Acquired Assets into these distinct categories:
1) | Acquired Assets that no longer provide FDIC loss share coverage beginning January 1, 2015; |
2) | Acquired Assets that are scheduled to lose FDIC loss share coverage over the next 12 months; |
3) | Acquired Assets that will continue to be covered under FDIC loss share coverage beyond the next 12 months; |
4) | Acquired Assets not covered under FDIC loss share agreements using SOP accounting treatment (in accordance with ASC Topic 310-30); and |
5) | Acquired Assets not covered under FDIC loss share agreements not using SOP accounting treatment. |
Between September 30, 2014 and December 31, 2014, legacy NPAs decreased $5 million, or 7%, due in part to $1 million in former bank branches and related land that were sold out of OREO during the fourth quarter of 2014. At December 31, 2014, those bank-related properties in OREO totaled $12 million, or 20% of total legacy NPAs. Legacy NPAs equated to 0.41% of total assets at December 31, 2014, and 0.33% of total assets excluding bank-related properties.
7
Loans past due 30 days or more (including non-accruing loans) increased $15 million, or 29%, and represented 0.68% of total loans at December 31, 2014, compared to 0.55% at September 30, 2014. The increase in past due loans was primarily associated with three specific loan relationships that were past due less than 60 days at year-end 2014. The two largest of these three loans were past due as a result of their maturities and were renewed subsequent to year-end. The third largest of these loans was brought current subsequent to year-end. None of the three loan relationships was impacted by the decline in energy commodity prices.
Table E Legacy Asset Quality Summary
Excludes the impact of all Acquired Assets (FDIC-assisted acquisitions and other acquisitions, impaired and not impaired)
For Quarter Ended: | % or Basis Point Change | |||||||||||||||||||
($ thousands) | 12/31/2013 | 9/30/2014 | 12/31/2014 | Year/Year | Qtr/Qtr | |||||||||||||||
Non-performing Assets |
$ | 73,034 | $ | 61,542 | $ | 56,967 | -22 | % | -7 | % | ||||||||||
Note: NPAs excluding Former Bank Properties |
63,828 | 48,808 | 45,411 | -29 | % | -7 | % | |||||||||||||
Past Due Loans |
66,153 | 50,505 | 65,291 | -1 | % | 29 | % | |||||||||||||
Classified Assets |
82,199 | 67,462 | 59,663 | -27 | % | -12 | % | |||||||||||||
Non-performing Assets/Assets |
0.61 | % | 0.46 | % | 0.41 | % | (20 | ) bps | (5 | ) bps | ||||||||||
NPAs/(Loans + OREO) |
0.88 | % | 0.67 | % | 0.59 | % | (29 | ) bps | (8 | ) bps | ||||||||||
Classified Assets/Total Assets |
0.69 | % | 0.50 | % | 0.43 | % | (26 | ) bps | (7 | ) bps | ||||||||||
(Past Dues & Non-accruals)/Loans |
0.80 | % | 0.55 | % | 0.68 | % | (12 | ) bps | 13 | bps | ||||||||||
Provision For Loan Losses |
$ | 4,621 | $ | 4,022 | $ | 4,021 | -13 | % | 0 | % | ||||||||||
Net Charge-Offs/(Recoveries) |
1,366 | 2,131 | 1,538 | 13 | % | -28 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Provision Less Net Charge-Offs |
$ | 3,255 | $ | 1,891 | $ | 2,483 | -24 | % | 31 | % | ||||||||||
Net Charge-Offs/Average Loans |
0.07 | % | 0.09 | % | 0.06 | % | (1 | ) bps | (3 | ) bps | ||||||||||
Allowance For Loan Losses/Loans |
0.81 | % | 0.79 | % | 0.79 | % | (2 | ) bps | (0 | ) bps | ||||||||||
Allowance for Credit Losses to Total Loans |
0.95 | % | 0.92 | % | 0.91 | % | (4 | ) bps | (1 | ) bps |
Table F provides a breakdown of Acquired Assets under the other five categories pertaining to Acquired Assets and the asset quality performance measures associated with Acquired Assets in each category.
8
Table F Acquired Assets By Portfolio Type (1)
All FDIC-assisted acquisitions and other acquired loans (impaired and not impaired)
Acquired FDIC Covered Assets | Acquired Non-Covered Assets | Total Acquired Assets |
||||||||||||||||||||||
Non SFR (Losing Loss Share Coverage as of January 1, 2015) |
Non SFR (Losing Loss Share Coverage within 12 months) |
SFR (Losing Loss Share Coverage 10 years from Acquisition) |
SOP Assets (2) | Non-SOP Assets (2) | ||||||||||||||||||||
($ thousands) | ||||||||||||||||||||||||
Loans, net |
$ | 174,711 | $ | 22,485 | $ | 247,348 | $ | 422,607 | $ | 905,179 | $ | 1,772,330 | ||||||||||||
Other Real Estate Owned |
9,596 | 3,639 | 10,461 | 9,007 | | 32,703 | ||||||||||||||||||
Allowance for Loan Losses |
(29,771 | ) | (1,710 | ) | (13,283 | ) | (8,830 | ) | (363 | ) | (53,957 | ) | ||||||||||||
Non-accrual loans |
$ | 36,755 | $ | 2,939 | $ | 46,137 | $ | 47,019 | $ | 1,866 | $ | 134,716 | ||||||||||||
Foreclosed assets |
825 | | | 44 | | 869 | ||||||||||||||||||
Other real estate owned |
8,771 | 3,639 | 10,462 | 8,963 | | 31,835 | ||||||||||||||||||
Accruing Loans More Than 90 Days Past Due |
| | 368 | | 586 | 954 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Non-performing Assets |
46,351 | 6,578 | 56,967 | 56,026 | 2,452 | 168,374 | ||||||||||||||||||
Total Past Due Loans |
$ | 40,629 | $ | 2,966 | $ | 48,793 | $ | 58,319 | $ | 6,537 | $ | 157,244 | ||||||||||||
Non-performing Assets to Total Loans and OREO |
25.15 | % | 25.18 | % | 22.10 | % | 12.98 | % | 0.27 | % | 9.33 | % | ||||||||||||
Past Due and Non-accrual Loans to Loans |
23.25 | % | 13.19 | % | 19.73 | % | 13.80 | % | 0.72 | % | 8.87 | % | ||||||||||||
Provision For Loan Losses |
$ | 974 | $ | 450 | $ | 182 | $ | (286 | ) | $ | 1,154 | $ | 2,474 | |||||||||||
Net Charge-Offs/(Recoveries) |
11 | | | (11 | ) | 217 | 217 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Provision Less Net Charge-Offs |
$ | 963 | $ | 450 | $ | 182 | $ | (275 | ) | $ | 937 | $ | 2,257 | |||||||||||
Net Charge-Offs to Average Loans |
0.08 | % | 0.00 | % | 0.00 | % | -0.03 | % | 0.29 | % | 0.05 | % | ||||||||||||
Allowance for Loan Losses to Loans |
17.04 | % | 7.61 | % | 5.37 | % | 2.09 | % | 0.04 | % | 3.04 | % | ||||||||||||
Allowance for Credit Losses to Total Loans |
17.04 | % | 7.61 | % | 5.37 | % | 2.09 | % | 0.04 | % | 3.04 | % | ||||||||||||
Indemnification asset collectible from the FDIC and OREO |
$ | | $ | | $ | 11,007 | $ | | $ | | $ | 11,007 |
(1) | Amounts in this table are presented gross of discounts unless otherwise noted. |
(2) | The classification of assets acquired from Teche and First Private as SOP or Non-SOP assets is preliminary and subject to change. At December 31, 2014, Teche loans of $33.9 million and $565.5 million are included in SOP and Non-SOP assets, respectively. First Private loans of $264.2 million have been included as Non-SOP loans at December 31, 2014. |
Capital Position
The Company maintains favorable capital strength. At December 31, 2014, the Company reported a tangible common equity ratio of 8.60%, up 15 basis points compared to September 30, 2014. At December 31, 2014, the Companys preliminary Tier 1 leverage ratio was 9.36%, up 15 basis points compared to September 30, 2014. The Companys preliminary total risk-based capital ratio at December 31, 2014, was 12.30%, down 10 basis points compared to September 30, 2014.
Commencing in the first quarter of 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. At year-end 2014, the Company experienced the expiration of FDIC loss share protection on non-single family loans associated with three FDIC-assisted transactions. The expiration of FDIC loss share coverage on those assets resulted in increased risk weighting associated with those assets. The influence of the phase-out of Tier 1 treatment on trust preferred securities and the scheduled expiration of certain FDIC loss share coverage is estimated to reduce the Companys Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk based capital ratio by approximately 36, 54, and 12 basis points, respectively, beginning in 2015.
At December 31, 2014, book value per share was $55.39, up $1.07 per share, or 2%, compared to September 30, 2014. Tangible book value per share was $39.11, up $1.28 per share, or 3%, compared to September 30, 2014. Based on the closing stock price of the Companys common stock of $55.36 per share on January 28, 2015, this price equated to 1.00 times December 31, 2014 book value and 1.42 times December 31, 2014 tangible book value per share.
9
On December 15, 2014, 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 2.46%.
IBERIABANK Corporation
The Company is a financial holding company with 280 combined offices, including 188 bank branch offices and three loan production offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, and Florida, 23 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 57 locations in 10 states. The Company has eight locations with representatives of IBERIA Wealth Advisors in five states, and one IBERIA Capital Partners, L.L.C. office in New Orleans.
The Companys common stock trades on the NASDAQ Global Select Market under the symbol IBKC. The Companys market capitalization was approximately $1.9 billion, based on the NASDAQ Global Select Market closing stock price on January 28, 2015.
The following 12 investment firms currently provide equity research coverage on the Company:
| Bank of America Merrill Lynch |
| FIG Partners, LLC |
| Hovde Group, LLC |
| Jefferies & Co., Inc. |
| Keefe, Bruyette & Woods, Inc. |
| Raymond James & Associates, Inc. |
| Robert W. Baird & Company |
| Sandler ONeill + Partners, L.P. |
| 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 Thursday, January 29, 2015, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 3712071. A replay of the call will be available until midnight Central Time on February 6, 2015 by dialing 1-877-344-7529. The confirmation code for the replay is 10058635. The Company has prepared a PowerPoint presentation that supplements information contained in this press release. The PowerPoint presentation may be accessed on the Companys 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 Companys management uses these non-GAAP financial measures in their analysis of the Companys 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 in managements opinion can distort period-to-period comparisons of the Companys performance. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of
10
these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Companys 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.
Assumptions Regarding Projected Earnings in Future Periods
The Companys operating EPS guidance for full year 2015 was based on the following significant assumptions:
| Recent forward interest rate curve projections; |
| Completion of the currently pending acquisitions in the first half of 2015; |
| No significant change in credit quality; |
| No significant changes to the preliminary purchase accounting marks assumed on the Companys most recently completed acquisitions; |
| No significant cash flow or credit quality changes on Acquired Assets; |
| Mortgage, title insurance, and capital markets projections continue to reflect the current environment and expectations. |
Caution About Forward-Looking Statements
This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. In general, forward-looking statements usually use words such as may, believe, expect, anticipate, intend, will, should, plan, estimate, predict, continue and potential or the negative of these terms or other comparable terminology, including statements related to the expected timing of the closing of the proposed mergers, the expected returns and other benefits of the proposed mergers to shareholders, expected improvement in operating efficiency resulting from the proposed mergers with Georgia Commerce Bancshares, Inc., Old Florida Bancshares, Inc. and Florida Bank Group, Inc., estimated expense reductions resulting from the transactions and the timing of achievement of such reductions, the impact on and timing of the recovery of the impact on tangible book value, and the effect of the mergers on the Companys capital ratios. Forward-looking statements represent managements beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements, and there can be no assurances that: the proposed mergers will close when expected, the expected returns and other benefits of the proposed mergers to shareholders will be achieved, the expected operating efficiencies will result, estimated expense reductions resulting from the transactions will occur as and when expected, the impact on tangible book value will be recovered or as expected or that the effect on the Companys capital ratios will be as expected. Factors that could cause or contribute to such differences include, but are not limited to, the possibility that expected benefits may not materialize in the time frames expected or at all, or may be more costly to achieve; that the merger transactions may not be timely completed, if at all; that prior to completion of the merger transactions or thereafter, the parties respective businesses may not perform as expected due to transaction-related uncertainties or other factors; that the parties are unable to implement successful integration strategies; that the required regulatory, shareholder, or other closing conditions are not satisfied in a timely manner, or at all; reputational risks and the reaction of the parties customers to the merger transactions; diversion of management time to merger-related issues; and other factors and risk influences contained in the cautionary language included under the headings Managements Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors in the Companys Form 10-K for the fiscal year ended December 31, 2013, and Form 10-Qs for the quarters ended March 31, 2014, June 30, 2014, and September 30, 2014, and other documents subsequently filed by the Company with the SEC. Consequently, no forward-looking statement can be guaranteed. Neither the Company, Georgia Commerce Bancshares, Inc., Old Florida Bancshares, Inc., nor Florida Bank Group, Inc. undertakes any obligation to update or revise any forward-looking statements, whether as a result of new
11
information, future events or otherwise. For any forward-looking statements made in this press release or any related documents, the Company, Georgia Commerce Bancshares, Inc., Old Florida Bancshares, Inc. and Florida Bank Group, Inc. claim protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
This communication is being made in respect of the proposed merger transactions involving the Company, Georgia Commerce Bancshares, Inc. and Old Florida Bancshares, Inc. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed merger with Georgia Commerce Bancshares, Inc., the Company will file with the SEC a registration statement on Form S-4 that will include a proxy statement/prospectus for the shareholders of Georgia Commerce Bancshares, Inc. The Company has filed a registration statement on Form S-4 that includes a proxy statement/prospectus for the shareholders of Old Florida Bancshares, Inc. The Company also plans to file other documents with the SEC regarding the pending merger transactions with Georgia Commerce Bancshares, Inc., Florida Bank Group, Inc. and Old Florida Bancshares, Inc. Georgia Commerce Bancshares, Inc. will mail the final proxy statement/prospectus to its shareholders. Old Florida Bancshares, Inc. has mailed its final proxy statement/prospectus to its shareholders. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS ARE URGED TO READ THE RELEVANT PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION AND ANY OTHER RELEVANT DOCUMENTS CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTIONS. The proxy statement/prospectuses, as well as other filings containing information about the Company, Georgia Commerce Bancshares, Inc., Old Florida Bancshares, Inc. and Florida Bank Group, Inc., will be available without charge, at the SECs Internet site (http://www.sec.gov). Copies of the proxy statement/prospectuses and the filings with the SEC that will be incorporated by reference in the proxy statement/prospectuses can also be obtained, when available, without charge, from the Companys website (http://www.iberiabank.com), under the heading Investor Information.
The Company, Georgia Commerce Bancshares, Inc. and Old Florida Bancshares, Inc., and certain of their respective directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of Georgia Commerce Bancshares, Inc. and Old Florida Bancshares, Inc. in respect of the proposed merger transactions. Information regarding the directors and executive officers of the Company is set forth in the definitive proxy statement for the Companys 2014 annual meeting of shareholders, as filed with the SEC on April 7, 2014, and in Forms 3, 4 and 5 filed with the SEC by its officers and directors. Information regarding the directors and executive officers of Georgia Commerce Bancshares, Inc. who may be deemed participants in the solicitation of the shareholders of Georgia Commerce Bancshares, Inc. in connection with the proposed transaction will be included in the proxy statement/prospectus for the Georgia Commerce Bancshares, Inc. special meeting of shareholders, which will be filed by the Company with the SEC. Information regarding the directors and executive officers of Old Florida Bancshares, Inc. who may be deemed to be participants in the solicitation of shareholders of Old Florida Bancshares, Inc. in connection with the proposed transaction is included in the proxy statement/prospectus for the Old Florida Bancshares, Inc. special meeting of shareholders, which was filed with the SEC. Additional information regarding the interests of such participants will be included in the proxy statement/prospectuses and other relevant documents regarding the proposed merger transactions filed with the SEC when they become available.
12
Table 1 - IBERIABANK CORPORATION
FINANCIAL HIGHLIGHTS
For The Quarter Ended December 31, |
For The Quarter Ended September 30, |
|||||||||||||||||||
2014 | 2013 | % Change |
2014 | % Change |
||||||||||||||||
Income Data (in thousands): |
||||||||||||||||||||
Net Interest Income |
$ | 124,680 | $ | 103,438 | 21 | % | $ | 121,751 | 2 | % | ||||||||||
Net Interest Income (TE) (1) |
126,735 | 105,709 | 20 | % | 123,885 | 2 | % | |||||||||||||
Net Income |
35,936 | 25,604 | 40 | % | 30,892 | 16 | % | |||||||||||||
Earnings Available to Common Shareholders- Basic |
35,936 | 25,604 | 40 | % | 30,892 | 16 | % | |||||||||||||
Earnings Available to Common Shareholders- Diluted |
35,406 | 25,148 | 41 | % | 30,427 | 16 | % | |||||||||||||
Per Share Data: |
||||||||||||||||||||
Earnings Available to Common Shareholders - Basic |
$ | 1.08 | $ | 0.86 | 25 | % | $ | 0.93 | 16 | % | ||||||||||
Earnings Available to Common Shareholders - Diluted |
1.07 | 0.86 | 25 | % | 0.92 | 16 | % | |||||||||||||
Operating Earnings (Non-GAAP) |
1.05 | 0.87 | 21 | % | 1.04 | 1 | % | |||||||||||||
Book Value |
55.39 | 51.40 | 8 | % | 54.32 | 2 | % | |||||||||||||
Tangible Book Value (2) |
39.11 | 37.17 | 5 | % | 37.83 | 3 | % | |||||||||||||
Cash Dividends |
0.34 | 0.34 | | 0.34 | | |||||||||||||||
Closing Stock Price |
64.85 | 62.85 | 3 | % | 62.51 | 4 | % | |||||||||||||
Key Ratios: (3) |
||||||||||||||||||||
Operating Ratios: |
||||||||||||||||||||
Return on Average Assets |
0.91 | % | 0.77 | % | 0.79 | % | ||||||||||||||
Return on Average Common Equity |
7.78 | % | 6.62 | % | 6.78 | % | ||||||||||||||
Return on Average Tangible Common Equity (2) |
11.46 | % | 9.43 | % | 10.10 | % | ||||||||||||||
Net Interest Margin (TE) (1) |
3.53 | % | 3.52 | % | 3.49 | % | ||||||||||||||
Efficiency Ratio |
69.5 | % | 72.2 | % | 71.3 | % | ||||||||||||||
Tangible Operating Efficiency Ratio (TE) (Non-GAAP) (1) (2) |
65.9 | % | 69.9 | % | 65.7 | % | ||||||||||||||
Full-time Equivalent Employees |
2,757 | 2,576 | 2,703 | |||||||||||||||||
Capital Ratios: |
||||||||||||||||||||
Tangible Common Equity Ratio (Non-GAAP) |
8.60 | % | 8.55 | % | 8.45 | % | ||||||||||||||
Tangible Common Equity to Risk-Weighted Assets |
10.38 | % | 10.39 | % | 10.32 | % | ||||||||||||||
Tier 1 Leverage Ratio |
9.36 | % | 9.70 | % | 9.21 | % | ||||||||||||||
Tier 1 Capital Ratio |
11.18 | % | 11.57 | % | 11.21 | % | ||||||||||||||
Total Risk Based Capital Ratio |
12.30 | % | 12.82 | % | 12.40 | % | ||||||||||||||
Common Stock Dividend Payout Ratio |
31.7 | % | 39.6 | % | 36.8 | % | ||||||||||||||
Asset Quality Ratios: |
||||||||||||||||||||
Excluding FDIC Covered Assets and Acquired Assets |
||||||||||||||||||||
Non-performing Assets to Total Assets (4) |
0.41 | % | 0.61 | % | 0.46 | % | ||||||||||||||
Allowance for Loan Losses to Loans |
0.79 | % | 0.81 | % | 0.79 | % | ||||||||||||||
Net Charge-offs to Average Loans |
0.06 | % | 0.07 | % | 0.09 | % | ||||||||||||||
Non-performing Assets to Total Loans and OREO (4) |
0.59 | % | 0.88 | % | 0.67 | % |
For The Quarter Ended | For The Quarter Ended | |||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | |||||||||||||||||
2014 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||
Balance Sheet Summary (in thousands): | End of Period | Average | Average | Average | Average | |||||||||||||||
Excess Liquidity (5) |
$ | 296,101 | $ | 353,716 | $ | 489,221 | $ | 237,712 | $ | 114,621 | ||||||||||
Total Investment Securities |
2,275,813 | 2,261,569 | 2,168,345 | 2,120,988 | 2,116,166 | |||||||||||||||
Loans, Net of Unearned Income |
11,441,044 | 11,271,752 | 11,009,833 | 9,998,533 | 9,551,351 | |||||||||||||||
Loans, Net of Unearned Income, Excluding Covered Assets and Acquired Assets |
9,668,714 | 9,438,869 | 9,019,127 | 8,643,859 | 8,324,676 | |||||||||||||||
Total Assets |
15,758,605 | 15,615,024 | 15,476,910 | 14,041,848 | 13,362,918 | |||||||||||||||
Total Deposits |
12,520,525 | 12,514,479 | 12,222,997 | 11,071,698 | 10,816,122 | |||||||||||||||
Total Shareholders Equity |
1,852,849 | 1,831,933 | 1,806,813 | 1,632,330 | 1,557,006 |
(1) | Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%. |
(2) | Tangible calculations eliminate the effect of goodwill and acquisition related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable. |
(3) | All ratios are calculated on an annualized basis for the period indicated. |
(4) | Nonperforming assets consist of nonaccruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets. |
(5) | 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.
13
Table 2 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands)
BALANCE SHEET (End of Period) |
December 31, | September 30, | ||||||||||||||||||
2014 | 2013 | % Change | 2014 | % Change | ||||||||||||||||
ASSETS |
||||||||||||||||||||
Cash and Due From Banks |
$ | 251,994 | $ | 238,672 | 5.6 | % | $ | 257,147 | (2.0 | %) | ||||||||||
Interest-bearing Deposits in Banks |
296,101 | 152,724 | 93.9 | % | 410,860 | (27.9 | %) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Cash and Equivalents |
548,095 | 391,396 | 40.0 | % | 668,007 | (18.0 | %) | |||||||||||||
Investment Securities Available for Sale |
2,158,853 | 1,936,797 | 11.5 | % | 2,103,828 | 2.6 | % | |||||||||||||
Investment Securities Held to Maturity |
116,960 | 154,109 | (24.1 | %) | 120,520 | (3.0 | %) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Investment Securities |
2,275,813 | 2,090,906 | 8.8 | % | 2,224,348 | 2.3 | % | |||||||||||||
Mortgage Loans Held for Sale |
140,072 | 128,442 | 9.1 | % | 148,530 | (5.7 | %) | |||||||||||||
Loans, Net of Unearned Income |
11,441,044 | 9,492,019 | 20.5 | % | 11,080,887 | 3.3 | % | |||||||||||||
Allowance for Loan Losses |
(130,131 | ) | (143,074 | ) | (9.0 | %) | (134,540 | ) | (3.3 | %) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loans, Net |
11,310,913 | 9,348,945 | 21.0 | % | 10,946,347 | 3.3 | % | |||||||||||||
Loss Share Receivable |
69,627 | 162,312 | (57.1 | %) | 94,712 | (26.5 | %) | |||||||||||||
Premises and Equipment |
307,159 | 287,510 | 6.8 | % | 307,868 | (0.2 | %) | |||||||||||||
Goodwill and Other Intangibles |
548,131 | 425,442 | 28.8 | % | 553,669 | (1.0 | %) | |||||||||||||
Other Assets |
558,795 | 530,597 | 5.3 | % | 571,670 | (2.3 | %) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Assets |
$ | 15,758,605 | $ | 13,365,550 | 17.9 | % | $ | 15,515,151 | 1.6 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||||||||||
Noninterest-bearing Deposits |
$ | 3,195,430 | $ | 2,575,939 | 24.0 | % | $ | 3,157,453 | 1.2 | % | ||||||||||
NOW Accounts |
2,462,841 | 2,283,490 | 7.9 | % | 2,194,803 | 12.2 | % | |||||||||||||
Savings and Money Market Accounts |
4,746,017 | 4,166,979 | 13.9 | % | 4,921,510 | (3.6 | %) | |||||||||||||
Certificates of Deposit |
2,116,237 | 1,710,592 | 23.7 | % | 2,103,925 | 0.6 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Deposits |
12,520,525 | 10,737,000 | 16.6 | % | 12,377,691 | 1.2 | % | |||||||||||||
Short-term Borrowings |
603,000 | 375,000 | 60.8 | % | 553,000 | 9.0 | % | |||||||||||||
Securities Sold Under Agreements to Repurchase |
242,742 | 305,344 | (20.5 | %) | 259,783 | (6.6 | %) | |||||||||||||
Trust Preferred Securities |
111,862 | 111,862 | | 111,862 | | |||||||||||||||
Other Long-term Debt |
291,392 | 168,837 | 72.6 | % | 243,707 | 19.6 | % | |||||||||||||
Other Liabilities |
136,235 | 136,528 | (0.2 | %) | 152,733 | (10.8 | %) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Liabilities |
13,905,756 | 11,834,571 | 17.5 | % | 13,698,776 | 1.5 | % | |||||||||||||
Total Shareholders Equity |
1,852,849 | 1,530,979 | 21.0 | % | 1,816,375 | 2.0 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Liabilities and Shareholders Equity |
$ | 15,758,605 | $ | 13,365,550 | 17.9 | % | $ | 15,515,151 | 1.6 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
BALANCE SHEET (Average) |
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
2014 | 2014 | 2014 | 2014 | 2013 | ||||||||||||||||
ASSETS |
||||||||||||||||||||
Cash and Due From Banks |
$ | 239,377 | $ | 229,556 | $ | 237,631 | $ | 234,924 | $ | 225,527 | ||||||||||
Interest-bearing Deposits in Banks |
353,716 | 489,221 | 237,712 | 114,621 | 204,970 | |||||||||||||||
Investment Securities |
2,261,569 | 2,168,345 | 2,120,988 | 2,116,166 | 2,131,804 | |||||||||||||||
Mortgage Loans Held for Sale |
121,438 | 163,510 | 140,096 | 96,019 | 112,499 | |||||||||||||||
Loans, Net of Unearned Income |
11,271,752 | 11,009,833 | 9,998,533 | 9,551,351 | 9,172,490 | |||||||||||||||
Allowance for Loan Losses |
(134,177 | ) | (133,443 | ) | (132,049 | ) | (139,726 | ) | (148,030 | ) | ||||||||||
Loss Share Receivable |
85,733 | 111,383 | 131,375 | 154,634 | 188,932 | |||||||||||||||
Other Assets |
1,415,616 | 1,438,505 | 1,307,562 | 1,234,930 | 1,226,979 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Assets |
$ | 15,615,024 | $ | 15,476,910 | $ | 14,041,848 | $ | 13,362,918 | $ | 13,115,171 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||||||||||
Non-interest-bearing Deposits |
$ | 3,228,773 | $ | 3,057,513 | $ | 2,748,468 | $ | 2,623,075 | $ | 2,572,599 | ||||||||||
NOW Accounts |
2,271,836 | 2,228,378 | 2,229,264 | 2,230,745 | 2,145,036 | |||||||||||||||
Savings and Money Market Accounts |
4,908,247 | 4,877,051 | 4,372,855 | 4,296,360 | 4,329,985 | |||||||||||||||
Certificates of Deposit |
2,105,623 | 2,060,055 | 1,721,111 | 1,665,943 | 1,787,643 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Deposits |
12,514,479 | 12,222,997 | 11,071,698 | 10,816,122 | 10,835,263 | |||||||||||||||
Short-term Borrowings |
449,190 | 627,192 | 632,778 | 285,383 | 49,946 | |||||||||||||||
Securities Sold Under Agreements to Repurchase |
264,194 | 292,677 | 274,681 | 299,106 | 285,745 | |||||||||||||||
Trust Preferred Securities |
111,862 | 111,862 | 111,862 | 111,862 | 111,862 | |||||||||||||||
Long-term Debt |
283,548 | 247,108 | 192,845 | 168,367 | 169,063 | |||||||||||||||
Other Liabilities |
159,818 | 168,262 | 125,654 | 125,072 | 128,249 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Liabilities |
13,783,091 | 13,670,098 | 12,409,518 | 11,805,912 | 11,580,128 | |||||||||||||||
Total Shareholders Equity |
1,831,933 | 1,806,813 | 1,632,330 | 1,557,006 | 1,535,043 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Liabilities and Shareholders Equity |
$ | 15,615,024 | $ | 15,476,910 | $ | 14,041,848 | $ | 13,362,918 | $ | 13,115,171 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Table 3 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands except per share data)
For The Three Months Ended | ||||||||||||||||||||
INCOME STATEMENT |
December 31, | September 30, | ||||||||||||||||||
2014 | 2013 | % Change | 2014 | % Change | ||||||||||||||||
Interest Income |
$ | 137,276 | $ | 114,092 | 20.3 | % | $ | 133,793 | 2.6 | % | ||||||||||
Interest Expense |
12,596 | 10,654 | 18.2 | % | 12,042 | 4.6 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Interest Income |
124,680 | 103,438 | 20.5 | % | 121,751 | 2.4 | % | |||||||||||||
Provision for Loan Losses |
6,495 | 4,700 | 38.2 | % | 5,714 | 13.7 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Interest Income After Provision for Loan Losses |
118,185 | 98,738 | 19.7 | % | 116,037 | 1.9 | % | |||||||||||||
Service Charges |
10,153 | 7,455 | 36.2 | % | 10,205 | (0.5 | %) | |||||||||||||
ATM / Debit Card Fee Income |
3,331 | 2,493 | 33.6 | % | 3,287 | 1.3 | % | |||||||||||||
BOLI Proceeds and Cash Surrender Value Income |
1,050 | 900 | 16.7 | % | 1,047 | 0.4 | % | |||||||||||||
Mortgage Income |
13,646 | 12,356 | 10.4 | % | 14,263 | (4.3 | %) | |||||||||||||
Gain (Loss) on Sale of Investments, Net |
164 | 19 | 778.3 | % | 582 | (71.9 | %) | |||||||||||||
Title Revenue |
5,486 | 4,327 | 26.8 | % | 5,577 | (1.6 | %) | |||||||||||||
Broker Commissions |
3,960 | 4,986 | (20.6 | %) | 5,297 | (25.2 | %) | |||||||||||||
Other Non-interest Income |
9,282 | 6,179 | 50.2 | % | 6,854 | 35.4 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Non-interest Income |
47,072 | 38,715 | 21.6 | % | 47,112 | (0.1 | %) | |||||||||||||
Salaries and Employee Benefits |
65,445 | 59,403 | 10.2 | % | 64,934 | 0.8 | % | |||||||||||||
Occupancy and Equipment |
14,594 | 13,986 | 4.3 | % | 14,883 | (1.9 | %) | |||||||||||||
Amortization of Acquisition Intangibles |
1,618 | 1,177 | 37.5 | % | 1,623 | (0.3 | %) | |||||||||||||
Other Non-interest Expense |
37,725 | 28,108 | 34.2 | % | 38,920 | (3.1 | %) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Non-interest Expense |
119,382 | 102,674 | 16.3 | % | 120,360 | (0.8 | %) | |||||||||||||
Income Before Income Taxes |
45,875 | 34,779 | 31.9 | % | 42,789 | 7.2 | % | |||||||||||||
Income Tax Expense |
9,939 | 9,175 | 8.3 | % | 11,897 | (16.5 | %) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Income |
$ | 35,936 | $ | 25,604 | 40.4 | % | $ | 30,892 | 16.3 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Preferred Stock Dividends |
| | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Earnings Available to Common Shareholders - Basic |
35,936 | 25,604 | 40.4 | % | 30,892 | 16.3 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Earnings Allocated to Unvested Restricted Stock |
(530 | ) | (456 | ) | 16.3 | % | (465 | ) | 13.9 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Earnings Available to Common Shareholders - Diluted |
$ | 35,406 | $ | 25,148 | 40.8 | % | $ | 30,427 | 16.4 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Earnings Per Share, Diluted |
$ | 1.07 | $ | 0.86 | 24.9 | % | $ | 0.92 | 16.3 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Impact of Non-Operating Items (Non-GAAP) |
$ | (0.02 | ) | $ | 0.01 | (533.0 | %) | $ | 0.12 | (120.8 | %) | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Earnings Per Share, Diluted, Excluding Non-operating Items (Non-GAAP) |
$ | 1.05 | $ | 0.87 | 21.0 | % | $ | 1.04 | 0.9 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
NUMBER OF SHARES OUTSTANDING |
||||||||||||||||||||
Basic Shares - All Classes (Average) |
33,332,691 | 29,673,358 | 12.3 | % | 33,309,881 | 0.1 | % | |||||||||||||
Diluted Shares - Common Shareholders (Average) |
32,947,152 | 29,236,174 | 12.7 | % | 32,926,969 | 0.1 | % | |||||||||||||
Book Value Shares (Period End) (1) |
33,453,404 | 29,786,544 | 12.3 | % | 33,440,859 | 0.0 | % | |||||||||||||
2014 | 2013 | |||||||||||||||||||
INCOME STATEMENT |
Fourth | Third | Second | First | Fourth | |||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
Interest Income |
$ | 137,276 | $ | 133,793 | $ | 119,514 | $ | 114,232 | $ | 114,092 | ||||||||||
Interest Expense |
12,596 | 12,042 | 10,241 | 9,824 | 10,654 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Interest Income |
124,680 | 121,751 | 109,273 | 104,408 | 103,438 | |||||||||||||||
Provision for Loan Losses |
6,495 | 5,714 | 4,748 | 2,103 | 4,700 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Interest Income After Provision for Loan Losses |
118,185 | 116,037 | 104,525 | 102,305 | 98,738 | |||||||||||||||
Total Non-interest Income |
47,072 | 47,112 | 43,761 | 35,681 | 38,715 | |||||||||||||||
Total Non-interest Expense |
119,382 | 120,360 | 127,309 | 107,428 | 102,674 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income Before Income Taxes |
45,876 | 42,789 | 20,977 | 30,558 | 34,779 | |||||||||||||||
Income Tax Expense |
9,939 | 11,897 | 4,749 | 8,163 | 9,175 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Income |
$ | 35,936 | $ | 30,892 | $ | 16,227 | $ | 22,395 | $ | 25,604 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Preferred Stock Dividends |
| | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Earnings Available to Common Shareholders - Basic |
35,936 | 30,892 | 16,227 | 22,395 | 25,604 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Earnings Allocated to Unvested Restricted Stock |
(530 | ) | (465 | ) | (258 | ) | (405 | ) | (456 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Earnings Available to Common Shareholders - Diluted |
$ | 35,406 | $ | 30,427 | $ | 15,969 | $ | 21,990 | $ | 25,148 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Earnings Per Share, Basic |
$ | 1.08 | $ | 0.93 | $ | 0.53 | $ | 0.75 | $ | 0.86 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Earnings Per Share, Diluted |
$ | 1.07 | $ | 0.92 | $ | 0.53 | $ | 0.75 | $ | 0.86 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Book Value Per Common Share |
$ | 55.39 | $ | 54.32 | $ | 53.79 | $ | 52.04 | $ | 51.40 | ||||||||||
Tangible Book Value Per Common Share |
$ | 39.11 | $ | 37.83 | $ | 37.30 | $ | 37.59 | $ | 37.17 | ||||||||||
Return on Average Assets |
0.91 | % | 0.79 | % | 0.46 | % | 0.68 | % | 0.77 | % | ||||||||||
Return on Average Common Equity |
7.78 | % | 6.78 | % | 3.99 | % | 5.83 | % | 6.62 | % | ||||||||||
Return on Average Tangible Common Equity |
11.46 | % | 10.10 | % | 5.88 | % | 8.36 | % | 9.43 | % |
(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 Year Ended | ||||||||||||
INCOME STATEMENT |
December 31, | |||||||||||
2014 | 2013 | % Change | ||||||||||
Interest Income |
$ | 504,815 | $ | 437,197 | 15.5 | % | ||||||
Interest Expense |
44,704 | 46,953 | (4.8 | %) | ||||||||
|
|
|
|
|
|
|||||||
Net Interest Income |
460,111 | 390,244 | 17.9 | % | ||||||||
Provision for Loan Losses |
19,060 | 5,145 | N/M | |||||||||
|
|
|
|
|
|
|||||||
Net Interest Income After Provision for Loan Losses |
441,051 | 385,099 | 14.5 | % | ||||||||
Service Charges |
35,573 | 28,871 | 23.2 | % | ||||||||
ATM / Debit Card Fee Income |
12,023 | 9,510 | 26.4 | % | ||||||||
BOLI Proceeds and Cash Surrender Value Income |
5,473 | 3,647 | 50.1 | % | ||||||||
Mortgage Income |
51,797 | 64,197 | (19.3 | %) | ||||||||
Gain on Sale of Investments, net |
773 | 2,334 | (66.9 | %) | ||||||||
Title Revenue |
20,492 | 20,526 | (0.2 | %) | ||||||||
Broker Commissions |
18,783 | 16,333 | 15.0 | % | ||||||||
Other Non-interest Income |
28,714 | 23,540 | 22.0 | % | ||||||||
|
|
|
|
|
|
|||||||
Total Non-interest Income |
173,628 | 168,958 | 2.8 | % | ||||||||
Salaries and Employee Benefits |
259,086 | 244,981 | 5.8 | % | ||||||||
Occupancy and Equipment |
59,571 | 58,037 | 2.6 | % | ||||||||
Amortization of Acquisition Intangibles |
5,807 | 4,720 | 23.0 | % | ||||||||
Other Non-interest Expense |
150,015 | 165,347 | (9.3 | %) | ||||||||
|
|
|
|
|
|
|||||||
Total Non-interest Expense |
474,479 | 473,085 | 0.3 | % | ||||||||
Income Before Income Taxes |
140,200 | 80,972 | 73.1 | % | ||||||||
Income Tax Expense |
34,750 | 15,869 | (119.0 | %) | ||||||||
|
|
|
|
|
|
|||||||
Net Income |
$ | 105,450 | $ | 65,103 | 62.0 | % | ||||||
|
|
|
|
|
|
|||||||
Preferred Stock Dividends |
| | | |||||||||
|
|
|
|
|
|
|||||||
Earnings Available to Common Shareholders - Basic |
$ | 105,450 | $ | 65,103 | 62.0 | % | ||||||
|
|
|
|
|
|
|||||||
Earnings Allocated to Unvested Restricted Stock |
(1,685 | ) | (1,209 | ) | 39.4 | % | ||||||
|
|
|
|
|
|
|||||||
Earnings Available to Common Shareholders - Diluted |
103,765 | 63,894 | 62.4 | % | ||||||||
|
|
|
|
|
|
|||||||
Earnings Per Share, diluted |
$ | 3.30 | $ | 2.20 | 50.2 | % | ||||||
|
|
|
|
|
|
Table 5 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands)
LOANS |
December 31, | September 30, | ||||||||||||||||||
2014 | 2013 | % Change | 2014 | % Change | ||||||||||||||||
Residential Mortgage Loans |
$ | 1,080,297 | $ | 586,532 | 84.2 | % | $ | 1,062,779 | 1.6 | % | ||||||||||
Commercial Loans: |
||||||||||||||||||||
Real Estate |
4,405,133 | 3,867,305 | 13.9 | % | 4,281,704 | 2.9 | % | |||||||||||||
Business |
3,408,949 | 2,996,113 | 13.8 | % | 3,225,691 | 5.7 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Commercial Loans |
7,814,082 | 6,863,418 | 13.9 | % | 7,507,395 | 4.1 | % | |||||||||||||
Consumer Loans: |
||||||||||||||||||||
Indirect Automobile |
397,158 | 375,236 | 5.8 | % | 394,691 | 0.6 | % | |||||||||||||
Home Equity |
1,601,105 | 1,291,792 | 23.9 | % | 1,567,415 | 2.1 | % | |||||||||||||
Automobile |
149,901 | 92,784 | 61.6 | % | 140,287 | 6.9 | % | |||||||||||||
Credit Card Loans |
73,393 | 64,321 | 14.1 | % | 69,352 | 5.8 | % | |||||||||||||
Other |
325,108 | 217,936 | 49.2 | % | 338,969 | (4.1 | %) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Consumer Loans |
2,546,665 | 2,042,069 | 24.7 | % | 2,510,713 | 1.4 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Loans |
11,441,044 | 9,492,019 | 20.5 | % | 11,080,887 | 3.3 | % | |||||||||||||
|
|
|
|
|||||||||||||||||
Allowance for Loan Losses |
(130,131 | ) | (143,074 | ) | (134,540 | ) | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Loans, Net |
$ | 11,310,913 | $ | 9,348,945 | $ | 10,946,347 | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Reserve for Unfunded Commitments |
(11,801 | ) | (11,147 | ) | 5.9 | % | (12,099 | ) | (2.5 | %) | ||||||||||
Allowance for Credit Losses |
(141,932 | ) | (154,221 | ) | (8.0 | %) | (146,639 | ) | (3.2 | %) | ||||||||||
ASSET QUALITY DATA (1) |
December 31, | September 30, | ||||||||||||||||||
2014 | 2013 | % Change | 2014 | % Change | ||||||||||||||||
Non-accrual Loans |
$ | 169,686 | $ | 270,428 | (37.3 | %) | $ | 195,680 | (13.3 | %) | ||||||||||
Foreclosed Assets |
905 | 1,421 | (36.3 | %) | 1,035 | (12.5 | %) | |||||||||||||
Other Real Estate Owned |
53,042 | 97,752 | (45.7 | %) | 62,351 | (14.9 | %) | |||||||||||||
Accruing Loans More Than 90 Days Past Due |
1,708 | 2,194 | (22.2 | %) | 190 | N/M | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Non-performing Assets |
$ | 225,341 | $ | 371,795 | (39.4 | %) | $ | 259,256 | (13.1 | %) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loans 30-89 Days Past Due |
$ | 51,141 | $ | 40,918 | 25.0 | % | $ | 23,784 | 115.0 | % | ||||||||||
Non-performing Assets to Total Assets |
1.43 | % | 2.78 | % | (48.6 | %) | 1.67 | % | (14.3 | %) | ||||||||||
Non-performing Assets to Total Loans and OREO |
1.96 | % | 3.88 | % | (49.4 | %) | 2.32 | % | (15.7 | %) | ||||||||||
Allowance for Loan Losses to Non-performing Loans (2) |
75.9 | % | 52.5 | % | 44.7 | % | 68.8 | % | 10.4 | % | ||||||||||
Allowance for Loan Losses to Non-performing Assets |
57.7 | % | 38.5 | % | 50.1 | % | 51.9 | % | 11.2 | % | ||||||||||
Allowance for Loan Losses to Total Loans |
1.14 | % | 1.51 | % | (24.5 | %) | 1.21 | % | (6.3 | %) | ||||||||||
Allowance for Credit Losses to Non-performing Loans (2) |
82.8 | % | 56.6 | % | 46.4 | % | 74.9 | % | 10.6 | % | ||||||||||
Allowance for Credit Losses to Non-performing Assets |
63.0 | % | 41.5 | % | 51.8 | % | 56.6 | % | 11.4 | % | ||||||||||
Allowance for Credit Losses to Total Loans |
1.24 | % | 1.62 | % | (23.6 | %) | 1.32 | % | (6.3 | %) | ||||||||||
Year to Date Charge-offs |
$ | 11,983 | $ | 10,845 | 10.5 | % | $ | 8,571 | N/M | |||||||||||
Year to Date Recoveries |
(6,396 | ) | (6,887 | ) | (7.1 | %) | (4,739 | ) | N/M | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Year to Date Net Charge-offs |
$ | 5,587 | $ | 3,958 | 41.1 | % | $ | 3,832 | N/M | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Quarter to Date Net Charge-offs |
$ | 1,755 | $ | 1,373 | 27.8 | % | $ | 2,207 | (20.5 | %) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Quarter to Date Net Charge-offs to Average Loans (Annualized) |
0.06 | % | 0.06 | % | 3.9 | % | 0.08 | % | (22.4 | %) | ||||||||||
Year to Date Net Charge-offs to Average Loans |
0.05 | % | 0.04 | % | 19.5 | % | 0.05 | % | 1.9 | % |
(1) | For purposes of this table, non-performing assets include all loans meeting non-performing asset criteria, including assets acquired in FDIC-assisted transactions. |
(2) | Non-performing loans consist of non-accruing 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)
LOANS (Excluding Covered Assets and Acquired Assets) (1) |
December 31, | September 30, | ||||||||||||||||||
2014 | 2013 | % Change | 2014 | % Change | ||||||||||||||||
Residential Mortgage Loans |
$ | 527,694 | $ | 414,372 | 27.3 | % | $ | 497,075 | 6.2 | % | ||||||||||
Commercial Loans: |
||||||||||||||||||||
Real Estate |
3,718,058 | 3,134,904 | 18.6 | % | 3,527,612 | 5.4 | % | |||||||||||||
Business |
3,284,140 | 2,906,051 | 13.0 | % | 3,093,873 | 6.1 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Commercial Loans |
7,002,198 | 6,040,955 | 15.9 | % | 6,621,485 | 5.7 | % | |||||||||||||
Consumer Loans: |
||||||||||||||||||||
Indirect Automobile |
396,766 | 373,383 | 6.3 | % | 394,078 | 0.7 | % | |||||||||||||
Home Equity |
1,290,976 | 1,101,227 | 17.2 | % | 1,229,998 | 5.0 | % | |||||||||||||
Automobile |
134,014 | 92,171 | 45.4 | % | 123,446 | 8.6 | % | |||||||||||||
Credit Card Loans |
72,745 | 63,642 | 14.3 | % | 68,731 | 5.8 | % | |||||||||||||
Other |
244,321 | 202,571 | 20.6 | % | 245,129 | (0.3 | %) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Consumer Loans |
2,138,822 | 1,832,994 | 16.7 | % | 2,061,382 | 3.8 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Loans |
9,668,714 | 8,288,321 | 16.7 | % | 9,179,942 | 5.3 | % | |||||||||||||
|
|
|
|
|||||||||||||||||
Allowance for Loan Losses |
(76,174 | ) | (67,343 | ) | (72,537 | ) | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Loans, Net |
$ | 9,592,540 | $ | 8,220,978 | $ | 9,107,405 | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Reserve for Unfunded Commitments |
(11,801 | ) | (11,147 | ) | 5.9 | % | (12,099 | ) | (2.5 | %) | ||||||||||
Allowance for Credit Losses |
(87,975 | ) | (78,490 | ) | 12.1 | % | (84,636 | ) | 3.9 | % |
ASSET QUALITY DATA (Excluding Covered Assets and Acquired Assets)(1) |
December 31, | September 30, | ||||||||||||||||||
2014 | 2013 | % Change | 2014 | % Change | ||||||||||||||||
Non-accrual Loans |
$ | 34,970 | $ | 43,687 | (20.0 | %) | $ | 38,060 | (8.1 | %) | ||||||||||
Foreclosed Assets |
36 | 48 | (25.1 | %) | 19 | 89.6 | % | |||||||||||||
Other Real Estate Owned |
21,207 | 28,224 | (24.9 | %) | 23,459 | (9.6 | %) | |||||||||||||
Accruing Loans More Than 90 Days Past Due |
754 | 1,075 | (29.9 | %) | 4 | N/M | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Non-performing Assets |
$ | 56,967 | $ | 73,034 | (22.0 | %) | $ | 61,542 | (7.4 | %) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loans 30-89 Days Past Due |
$ | 29,567 | $ | 21,391 | 38.2 | % | $ | 12,441 | 137.7 | % | ||||||||||
Troubled Debt Restructurings (2) |
3,639 | 19,877 | (81.7 | %) | 3,421 | 6.3 | % | |||||||||||||
Current Troubled Debt Restructurings (3) |
1,430 | 1,376 | 3.9 | % | 1,093 | 30.8 | % | |||||||||||||
Non-performing Assets to Total Assets |
0.41 | % | 0.61 | % | (32.9 | %) | 0.46 | % | (10.1 | %) | ||||||||||
Non-performing Assets to Total Loans and OREO |
0.59 | % | 0.88 | % | (33.1 | %) | 0.67 | % | (12.1 | %) | ||||||||||
Allowance for Loan Losses to Non-performing Loans (4) |
213.2 | % | 150.4 | % | 41.7 | % | 190.6 | % | 11.9 | % | ||||||||||
Allowance for Loan Losses to Non-performing Assets |
133.7 | % | 92.2 | % | 45.0 | % | 117.9 | % | 13.4 | % | ||||||||||
Allowance for Loan Losses to Total Loans |
0.79 | % | 0.81 | % | (3.0 | %) | 0.79 | % | (0.3 | %) | ||||||||||
Allowance for Credit Losses to Non-performing Loans (1) (4) |
246.3 | % | 175.3 | % | 40.4 | % | 222.3 | % | 10.8 | % | ||||||||||
Allowance for Credit Losses to Non-performing Assets (1) |
154.4 | % | 107.5 | % | 43.7 | % | 137.5 | % | 12.3 | % | ||||||||||
Allowance for Credit Losses to Total Loans (1) |
0.91 | % | 0.95 | % | (3.9 | %) | 0.92 | % | (1.3 | %) | ||||||||||
Year to Date Charge-offs |
$ | 11,312 | $ | 10,687 | 5.8 | % | $ | 8,242 | N/M | |||||||||||
Year to Date Recoveries |
(5,870 | ) | (6,819 | ) | (13.9 | %) | (4,338 | ) | N/M | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Year to Date Net Charge-offs (Recoveries) |
$ | 5,442 | $ | 3,868 | 40.7 | % | $ | 3,904 | N/M | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Quarter to Date Net Charge-offs (Recoveries) |
$ | 1,538 | $ | 1,366 | 12.6 | % | $ | 2,131 | (27.9 | %) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Quarter to Date Net Charge-offs to Average Loans (Annualized) |
0.06 | % | 0.07 | % | (6.7 | %) | 0.09 | % | (31.1 | %) | ||||||||||
Year to Date Net Charge-offs to Average Loans |
0.06 | % | 0.05 | % | 19.2 | % | 0.06 | % | (2.0 | %) |
(1) | For purposes of this table, loans and non-performing assets exclude all assets acquired. |
(2) | Troubled debt restructurings meeting past due and non-accruing criteria are included in loans past due and non-accrual loans above. |
(3) | Current troubled debt restructurings are defined as troubled debt restructurings not past due or on non-accrual status for the respective periods. |
(4) | Non-performing 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 6A - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands)
LOANS (Covered Assets and Acquired Assets Only) (1) |
December 31, | September 30, | ||||||||||||||||||
2014 | 2013 | % Change | 2014 | % Change | ||||||||||||||||
Residential Mortgage Loans |
$ | 552,603 | $ | 172,160 | 221.0 | % | $ | 565,704 | (2.3 | %) | ||||||||||
Commercial Loans: |
||||||||||||||||||||
Real Estate |
687,075 | 732,401 | (6.2 | %) | 754,092 | (8.9 | %) | |||||||||||||
Business |
124,809 | 90,062 | 38.6 | % | 131,818 | (5.3 | %) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Commercial Loans |
811,884 | 822,463 | (1.3 | %) | 885,910 | (8.4 | %) | |||||||||||||
Consumer Loans: |
||||||||||||||||||||
Indirect Automobile |
392 | 1,853 | (78.8 | %) | 613 | (36.0 | %) | |||||||||||||
Home Equity |
310,129 | 190,565 | 62.7 | % | 337,417 | (8.1 | %) | |||||||||||||
Automobile |
15,887 | 613 | 2491.5 | % | 16,841 | (5.7 | %) | |||||||||||||
Credit Card Loans |
648 | 679 | (4.5 | %) | 621 | 4.4 | % | |||||||||||||
Other |
80,787 | 15,365 | 425.8 | % | 93,840 | (13.9 | %) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Consumer Loans |
407,843 | 209,075 | 95.1 | % | 449,331 | (9.2 | %) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Loans Receivable |
1,772,330 | 1,203,698 | 47.2 | % | 1,900,945 | (6.8 | %) | |||||||||||||
|
|
|
|
|||||||||||||||||
Allowance for Loan Losses |
(53,957 | ) | (75,731 | ) | (62,003 | ) | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Loans, Net |
$ | 1,718,373 | $ | 1,127,967 | $ | 1,838,941 | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
ASSET QUALITY DATA (Covered Assets and Acquired Assets Only) (1) |
December 31, | September 30, | ||||||||||||||||||
2014 | 2013 | % Change | 2014 | % Change | ||||||||||||||||
Non-accrual Loans |
$ | 134,716 | $ | 226,741 | (40.6 | %) | $ | 157,620 | (14.5 | %) | ||||||||||
Foreclosed Assets |
869 | 1,372 | (36.7 | %) | 1,016 | (14.5 | %) | |||||||||||||
Other Real Estate Owned |
31,835 | 69,528 | (54.2 | %) | 38,892 | (18.1 | %) | |||||||||||||
Accruing Loans More Than 90 Days Past Due |
954 | 1,119 | (14.8 | %) | 186 | 413.1 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Non-performing Assets |
$ | 168,374 | $ | 298,760 | (43.6 | %) | $ | 197,714 | (14.8 | %) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loans 30-89 Days Past Due |
$ | 21,574 | $ | 19,527 | 10.5 | % | $ | 11,343 | 90.2 | % | ||||||||||
Non-performing Assets to Total Assets |
9.11 | % | 21.27 | % | (57.2 | %) | 9.84 | % | (7.4 | %) | ||||||||||
Non-performing Assets to Total Loans and OREO |
9.33 | % | 23.44 | % | (60.2 | %) | 10.19 | % | (8.4 | %) | ||||||||||
Allowance for Loan Losses to Non-performing Loans (2) |
39.8 | % | 33.2 | % | 19.7 | % | 39.3 | % | 1.2 | % | ||||||||||
Allowance for Loan Losses to Non-performing Assets |
32.0 | % | 25.3 | % | 26.4 | % | 31.4 | % | 2.2 | % | ||||||||||
Allowance for Loan Losses to Total Loans |
3.04 | % | 6.29 | % | (51.6 | %) | 3.26 | % | (6.7 | %) | ||||||||||
Year to Date Charge-offs |
$ | 671 | $ | 158 | N/M | $ | 329 | N/M | ||||||||||||
Year to Date Recoveries |
(526 | ) | (68 | ) | N/M | (401 | ) | N/M | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Year to Date Net Charge-offs (Recoveries) |
145 | 90 | 60.6 | % | (72 | ) | N/M | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Quarter to Date Net Charge-offs (Recoveries) |
217 | 7 | N/M | 76 | N/M | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Quarter to Date Net Charge-offs to Average Loans (Annualized) |
0.05 | % | 0.00 | % | N/M | 0.02 | % | N/M | ||||||||||||
Year to Date Net Charge-offs to Average Loans |
0.01 | % | 0.01 | % | (39.4 | %) | -0.01 | % | N/M |
(1) | For purposes of this table, acquired loans and non-performing assets are presented only. Non-performing assets include all loans meeting nonperforming asset criteria. |
(2) | Non-performing loans consist of non-accruing loans and accruing loans 90 days or more past due. |
N/M - Comparison of the information presented is not meaningful given the periods presented
19
Table 7 - Non-Covered and Net Covered Loan Portfolio Volumes And Yields ($ in Millions)
As Reported (US GAAP)
4Q 2013 | 1Q 2014 | 2Q 2014 | 3Q 2014 | 4Q 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income | Average Balance |
Yield | Income | Average Balance |
Yield | Income | Average Balance |
Yield | Income | Average Balance |
Yield | Income | Average Balance |
Yield | ||||||||||||||||||||||||||||||||||||||||||||||
Legacy Loans, net |
$ | 82.3 | $ | 7,923 | 4.09 | % | $ | 84.2 | $ | 8,325 | 4.06 | % | $ | 87.9 | $ | 8,644 | 4.04 | % | $ | 91.1 | $ | 9,019 | 3.97 | % | $ | 94.5 | $ | 9,439 | 3.94 | % | ||||||||||||||||||||||||||||||
Acquired Loans, net |
11.1 | 498 | 8.71 | % | 11.0 | 535 | 8.23 | % | 12.6 | 730 | 6.86 | % | 24.1 | 1,432 | 6.63 | % | 24.1 | 1,370 | 6.94 | % | ||||||||||||||||||||||||||||||||||||||||
Covered Loans, net |
37.2 | 751 | 19.46 | % | 25.9 | 691 | 15.00 | % | 23.0 | 625 | 14.70 | % | 30.2 | 559 | 21.64 | % | 18.1 | 463 | 15.29 | % | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
FDIC Indemnification Asset |
(29.1 | ) | 189 | -60.36 | % | (19.3 | ) | 155 | -49.83 | % | (17.0 | ) | 131 | -51.22 | % | (25.1 | ) | 111 | -88.25 | % | (13.2 | ) | 86 | -60.36 | % | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Covered Loans, net of Indemnification Asset Amortization |
$ | 8.0 | $ | 940 | 3.43 | % | $ | 6.7 | $ | 846 | 3.18 | % | $ | 6.0 | $ | 756 | 3.16 | % | $ | 5.1 | $ | 670 | 3.07 | % | $ | 4.9 | $ | 549 | 3.57 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Adjustments |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4Q 2013 | 1Q 2014 | 2Q 2014 | 3Q 2014 | 4Q 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income | Average Balance |
Yield | Income | Average Balance |
Yield | Income | Average Balance |
Yield | Income | Average Balance |
Yield | Income | Average Balance |
Yield | ||||||||||||||||||||||||||||||||||||||||||||||
Legacy Loans, net |
$ | | $ | | 0.00 | % | $ | | $ | | 0.00 | % | $ | | $ | | 0.00 | % | $ | | $ | | 0.00 | % | $ | | $ | | 0.00 | % | ||||||||||||||||||||||||||||||
Acquired Loans, net |
(3.7 | ) | 70 | -3.59 | % | (4.2 | ) | 65 | -3.79 | % | (2.9 | ) | 67 | -2.03 | % | (6.4 | ) | 72 | -1.97 | % | (6.5 | ) | 67 | -2.06 | % | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Covered Loans, net |
(27.5 | ) | 123 | -15.20 | % | (17.5 | ) | 106 | -10.82 | % | (13.7 | ) | 95 | -9.58 | % | (22.8 | ) | 84 | -17.07 | % | (12.8 | ) | 74 | -10.72 | % | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
FDIC Indemnification Asset |
29.1 | (189 | ) | 60.36 | % | 19.3 | (155 | ) | 49.83 | % | 17.0 | (131 | ) | 51.22 | % | 25.1 | (111 | ) | 88.25 | % | 13.2 | (86 | ) | 60.36 | % | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Covered Loans, net of Indemnification Asset Amortization |
$ | 1.6 | $ | (66 | ) | 0.83 | % | $ | 1.7 | $ | (48 | ) | 1.01 | % | $ | 3.3 | $ | (37 | ) | 1.96 | % | $ | 2.3 | $ | (27 | ) | 1.50 | % | $ | 0.4 | $ | (12 | ) | 1.00 | % | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
As Adjusted (Cash Yield, Non-GAAP) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4Q 2013 | 1Q 2014 | 2Q 2014 | 3Q 2014 | 4Q 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income | Average Balance |
Yield | Income | Average Balance |
Yield | Income | Average Balance |
Yield | Income | Average Balance |
Yield | Income | Average Balance |
Yield | ||||||||||||||||||||||||||||||||||||||||||||||
Legacy Loans, net |
$ | 82.3 | $ | 7,923 | 4.09 | % | $ | 84.2 | $ | 8,325 | 4.06 | % | $ | 87.9 | $ | 8,644 | 4.04 | % | $ | 91.1 | $ | 9,019 | 3.97 | % | $ | 94.5 | $ | 9,439 | 3.94 | % | ||||||||||||||||||||||||||||||
Acquired Loans, net |
7.4 | 568 | 5.12 | % | 6.7 | 600 | 4.45 | % | 9.7 | 797 | 4.83 | % | 17.6 | 1,504 | 4.66 | % | 17.6 | 1,436 | 4.88 | % | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Covered Loans, net |
9.7 | 874 | 4.26 | % | 8.4 | 798 | 4.18 | % | 9.3 | 719 | 5.13 | % | 7.4 | 642 | 4.57 | % | 5.3 | 537 | 4.57 | % | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
FDIC Indemnification Asset |
| | 0.00 | % | 0.0 | | 0.00 | % | 0.0 | | 0.00 | % | | (0 | ) | 0.00 | % | | | 0.00 | % | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Covered Loans, net of Indemnification Asset Amortization |
$ | 9.7 | $ | 874 | 4.26 | % | $ | 8.4 | $ | 798 | 4.18 | % | $ | 9.3 | $ | 719 | 5.13 | % | $ | 7.4 | $ | 642 | 4.57 | % | $ | 5.3 | $ | 537 | 4.57 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 8 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Taxable Equivalent Basis
(dollars in thousands)
For The Quarter Ended | ||||||||||||||||||||||||||||
December 31, 2014 | September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
Interest | Average Balance |
Average Yield/Rate (%) |
Average Balance |
Average Yield/Rate (%) |
Average Balance |
Average Yield/Rate (%) |
||||||||||||||||||||||
ASSETS |
||||||||||||||||||||||||||||
Earning Assets: |
||||||||||||||||||||||||||||
Loans Receivable: |
||||||||||||||||||||||||||||
Mortgage Loans |
$ | 13,094 | $ | 1,069,555 | 4.90 | % | $ | 1,104,692 | 4.82 | % | $ | 570,480 | 6.12 | % | ||||||||||||||
Commercial Loans (TE) (1) |
89,574 | 7,656,992 | 4.65 | % | 7,467,598 | 5.24 | % | 6,570,033 | 5.57 | % | ||||||||||||||||||
Consumer and Other Loans |
33,994 | 2,545,205 | 5.30 | % | 2,437,544 | 5.47 | % | 2,031,977 | 5.82 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Loans |
136,662 | 11,271,752 | 4.82 | % | 11,009,834 | 5.25 | % | 9,172,490 | 5.66 | % | ||||||||||||||||||
Loss Share Receivable |
(13,224 | ) | 85,733 | -60.36 | % | 111,383 | -88.25 | % | 188,932 | -60.36 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Loans and Loss Share Receivable |
123,438 | 11,357,485 | 4.32 | % | 11,121,217 | 4.31 | % | 9,361,422 | 4.33 | % | ||||||||||||||||||
Mortgage Loans Held for Sale |
1,200 | 121,438 | 3.95 | % | 163,510 | 3.90 | % | 112,499 | 4.06 | % | ||||||||||||||||||
Investment Securities (TE) (1)(2) |
11,766 | 2,234,236 | 2.24 | % | 2,137,736 | 2.20 | % | 2,129,679 | 2.21 | % | ||||||||||||||||||
Other Earning Assets |
872 | 431,603 | 0.80 | % | 567,895 | 0.60 | % | 250,295 | 0.94 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Earning Assets |
137,276 | 14,144,762 | 3.88 | % | 13,990,358 | 3.83 | % | 11,853,895 | 3.87 | % | ||||||||||||||||||
Allowance for Loan Losses |
(134,177 | ) | (133,443 | ) | (148,030 | ) | ||||||||||||||||||||||
Non-earning Assets |
1,604,439 | 1,619,995 | 1,409,306 | |||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
Total Assets |
$ | 15,615,024 | $ | 15,476,910 | $ | 13,115,171 | ||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||||||||||||||||||
Interest-bearing liabilities |
||||||||||||||||||||||||||||
Deposits: |
||||||||||||||||||||||||||||
NOW Accounts |
$ | 1,526 | $ | 2,271,836 | 0.27 | % | $ | 2,228,378 | 0.28 | % | $ | 2,145,036 | 0.32 | % | ||||||||||||||
Savings and Money Market Accounts |
3,695 | 4,908,247 | 0.30 | % | 4,877,051 | 0.29 | % | 4,329,985 | 0.26 | % | ||||||||||||||||||
Certificates of Deposit |
4,272 | 2,105,623 | 0.80 | % | 2,060,055 | 0.77 | % | 1,787,643 | 0.79 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Interest-bearing Deposits |
9,493 | 9,285,706 | 0.41 | % | 9,165,484 | 0.39 | % | 8,262,664 | 0.39 | % | ||||||||||||||||||
Short-term Borrowings |
342 | 713,384 | 0.19 | % | 919,869 | 0.17 | % | 335,691 | 0.15 | % | ||||||||||||||||||
Long-term Debt |
2,761 | 395,410 | 2.73 | % | 358,970 | 2.75 | % | 280,925 | 3.37 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Interest-bearing Liabilities |
12,596 | 10,394,500 | 0.48 | % | 10,444,323 | 0.46 | % | 8,879,280 | 0.47 | % | ||||||||||||||||||
Non-interest-bearing Demand Deposits |
3,228,773 | 3,057,513 | 2,572,599 | |||||||||||||||||||||||||
Non-interest-bearing Liabilities |
159,818 | 168,261 | 128,249 | |||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
Total Liabilities |
13,783,091 | 13,670,097 | 11,580,128 | |||||||||||||||||||||||||
Shareholders Equity |
1,831,933 | 1,806,813 | 1,535,043 | |||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
Total Liabilities and Shareholders Equity |
$ | 15,615,024 | $ | 15,476,910 | $ | 13,115,171 | ||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
Net Interest Spread |
$ | 124,680 | 3.41 | % | $ | 121,751 | 3.38 | % | $ | 103,438 | 3.40 | % | ||||||||||||||||
Tax-equivalent Benefit |
2,055 | 0.06 | % | 2,134 | 0.06 | % | 2,271 | 0.08 | % | |||||||||||||||||||
Net Interest Income (TE) / Net Interest Margin (TE) (1) |
$ | 126,735 | 3.53 | % | $ | 123,885 | 3.49 | % | $ | 105,709 | 3.52 | % |
(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 Year Ended | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Average | Average | Average | Average | |||||||||||||||||||||
Interest | Balance | Yield/Rate (%) | Interest | Balance | Yield/Rate (%) | |||||||||||||||||||
ASSETS |
||||||||||||||||||||||||
Earning Assets: |
||||||||||||||||||||||||
Loans Receivable: |
||||||||||||||||||||||||
Mortgage Loans |
$ | 44,563 | $ | 869,510 | 5.13 | % | $ | 30,598 | $ | 520,872 | 5.87 | % | ||||||||||||
Commercial Loans (TE) (1) |
359,801 | 7,284,247 | 4.95 | % | 350,451 | 6,386,364 | 5.50 | % | ||||||||||||||||
Consumer and Other Loans |
122,342 | 2,310,339 | 5.30 | % | 107,887 | 1,954,766 | 5.52 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Loans |
526,706 | 10,464,096 | 5.04 | % | 488,936 | 8,862,002 | 5.53 | % | ||||||||||||||||
Loss Share Receivable |
(74,617 | ) | 120,567 | -61.04 | % | (97,849 | ) | 266,856 | -36.16 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Loans and Loss Share Receivable |
452,089 | 10,584,663 | 4.29 | % | 391,087 | 9,128,858 | 4.31 | % | ||||||||||||||||
Mortgage Loans Held for Sale |
5,153 | 130,425 | 3.95 | % | 5,108 | 144,961 | 3.52 | % | ||||||||||||||||
Investment Securities (TE) (1)(2) |
44,677 | 2,148,963 | 2.23 | % | 38,230 | 2,081,523 | 2.01 | % | ||||||||||||||||
Other Earning Assets |
2,896 | 371,490 | 0.78 | % | 2,772 | 380,050 | 0.73 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Earning Assets |
504,815 | 13,235,541 | 3.85 | % | 437,197 | 11,735,392 | 3.78 | % | ||||||||||||||||
Allowance for Loan Losses |
(134,830 | ) | (184,217 | ) | ||||||||||||||||||||
Non-earning Assets |
1,531,974 | 1,452,813 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total Assets |
$ | 14,632,685 | $ | 13,003,988 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||||||||||||||
Interest-bearing liabilities |
||||||||||||||||||||||||
Deposits: |
||||||||||||||||||||||||
NOW Accounts |
$ | 6,006 | $ | 2,240,137 | 0.27 | % | $ | 7,557 | $ | 2,337,831 | 0.32 | % | ||||||||||||
Savings and Money Market Accounts |
12,803 | 4,616,026 | 0.28 | % | 11,685 | 4,207,343 | 0.28 | % | ||||||||||||||||
Certificates of Deposit |
14,281 | 1,889,858 | 0.76 | % | 16,604 | 1,964,702 | 0.85 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Interest-bearing Deposits |
33,090 | 8,746,021 | 0.38 | % | 35,846 | 8,509,876 | 0.42 | % | ||||||||||||||||
Short-term Borrowings |
1,364 | 782,033 | 0.17 | % | 490 | 303,352 | 0.16 | % | ||||||||||||||||
Long-term Debt |
10,250 | 335,211 | 3.02 | % | 10,617 | 316,775 | 3.31 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Interest-bearing Liabilities |
44,704 | 9,863,265 | 0.45 | % | 46,953 | 9,130,003 | 0.51 | % | ||||||||||||||||
Non-interest-bearing Demand Deposits |
2,916,509 | 2,216,959 | ||||||||||||||||||||||
Non-interest-bearing Liabilities |
144,861 | 129,833 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total Liabilities |
12,924,635 | 11,476,795 | ||||||||||||||||||||||
Shareholders Equity |
1,708,050 | 1,527,193 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total Liabilities and Shareholders Equity |
$ | 14,632,685 | $ | 13,003,988 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net Interest Spread |
$ | 460,111 | 3.40 | % | $ | 390,244 | 3.26 | % | ||||||||||||||||
Tax-equivalent Benefit |
8,609 | 0.06 | % | 9,452 | 0.08 | % | ||||||||||||||||||
Net Interest Income (TE) / Net Interest Margin (TE) (1) |
$ | 468,720 | 3.51 | % | $ | 399,696 | 3.38 | % |
(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)
For The Quarter Ended | ||||||||||||
December 31, 2014 | September 30, 2014 | December 31, 2013 | ||||||||||
Net Interest Income (GAAP) |
$ | 124,680 | $ | 121,751 | $ | 103,438 | ||||||
Effect of Tax Benefit on Interest Income |
2,055 | 2,134 | 2,271 | |||||||||
|
|
|
|
|
|
|||||||
Net Interest Income (TE) (Non-GAAP) (1) |
126,735 | 123,885 | 105,709 | |||||||||
|
|
|
|
|
|
|||||||
Non-interest Income (GAAP) |
47,072 | 47,112 | 38,715 | |||||||||
Effect of Tax Benefit on Non-interest Income |
566 | 564 | 485 | |||||||||
|
|
|
|
|
|
|||||||
Non-interest Income (TE) (Non-GAAP) (1) |
47,638 | 47,676 | 39,200 | |||||||||
|
|
|
|
|
|
|||||||
Taxable Equivalent Revenues (Non-GAAP) (1) |
174,373 | 171,561 | 144,909 | |||||||||
|
|
|
|
|
|
|||||||
Securities Gains and other non-interest income |
(374 | ) | (582 | ) | (19 | ) | ||||||
|
|
|
|
|
|
|||||||
Taxable Equivalent Operating Revenues (Non-GAAP) (1) |
$ | 173,999 | $ | 170,979 | $ | 144,890 | ||||||
|
|
|
|
|
|
|||||||
Total Non-interest Expense (GAAP) |
$ | 119,382 | $ | 120,360 | $ | 102,674 | ||||||
Less Intangible Amortization Expense |
(1,618 | ) | (1,623 | ) | (1,177 | ) | ||||||
|
|
|
|
|
|
|||||||
Tangible Non-interest Expense (Non-GAAP) (2) |
117,764 | 118,737 | 101,497 | |||||||||
|
|
|
|
|
|
|||||||
Merger-related expenses |
1,955 | 1,752 | 566 | |||||||||
Severance expenses |
139 | 1,226 | 216 | |||||||||
(Gain) Loss on sale of long-lived assets, net of impairment |
1,078 | 4,213 | (225 | ) | ||||||||
(Reversal of) Provision for FDIC clawback liability |
| (797 | ) | | ||||||||
Other non-operating non-interest expense |
2 | 1 | (311 | ) | ||||||||
|
|
|
|
|
|
|||||||
Tangible Operating Non-interest Expense (Non-GAAP) (2) |
$ | 114,590 | $ | 112,342 | $ | 101,251 | ||||||
|
|
|
|
|
|
|||||||
Return on Average Common Equity (GAAP) |
7.78 | % | 6.78 | % | 6.62 | % | ||||||
Effect of Intangibles (2) |
3.68 | % | 3.32 | % | 2.81 | % | ||||||
Effect of Non Operating Revenues and Expenses |
(0.29 | %) | 1.19 | % | 0.05 | % | ||||||
|
|
|
|
|
|
|||||||
Operating Return on Average Tangible Common Equity (Non-GAAP) (2) |
11.17 | % | 11.29 | % | 9.47 | % | ||||||
|
|
|
|
|
|
|||||||
Efficiency Ratio (GAAP) |
69.5 | % | 71.3 | % | 72.2 | % | ||||||
Effect of Tax Benefit Related to Tax-exempt Income |
(1.0 | %) | (1.1 | %) | (1.3 | %) | ||||||
|
|
|
|
|
|
|||||||
Efficiency Ratio (TE) (Non-GAAP) (1) |
68.5 | % | 70.2 | % | 70.9 | % | ||||||
Effect of Amortization of Intangibles |
(0.9 | %) | (0.9 | %) | (0.8 | %) | ||||||
Effect of Non-operating Items |
(1.7 | %) | (3.6 | %) | (0.2 | %) | ||||||
|
|
|
|
|
|
|||||||
Tangible Operating Efficiency Ratio (TE)(Non-GAAP) (1) (2) |
65.9 | % | 65.7 | % | 69.9 | % | ||||||
|
|
|
|
|
|
(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 | ||||||||||||||||||||||||||||||||||||
December 31, 2014 | September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||
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) |
$ | 45,875 | $ | 35,936 | $ | 1.07 | $ | 42,789 | $ | 30,892 | $ | 0.92 | $ | 34,779 | $ | 25,604 | $ | 0.86 | ||||||||||||||||||
Non-interest income adjustments |
||||||||||||||||||||||||||||||||||||
Gain on sale of investments and other non-interest income |
(374 | ) | (243 | ) | (0.01 | ) | (582 | ) | (378 | ) | (0.01 | ) | (19 | ) | (12 | ) | (0.00 | ) | ||||||||||||||||||
Non-interest expense adjustments |
||||||||||||||||||||||||||||||||||||
Merger-related expenses |
1,955 | 1,496 | 0.04 | 1,752 | 1,139 | 0.04 | 566 | 368 | 0.01 | |||||||||||||||||||||||||||
Severance expenses |
139 | 91 | 0.00 | 1,226 | 797 | 0.02 | 216 | 141 | 0.00 | |||||||||||||||||||||||||||
(Gain) Loss on sale of long-lived assets, net of impairment |
1,078 | 701 | 0.02 | 4,213 | 2,738 | 0.08 | (225 | ) | (146 | ) | (0.00 | ) | ||||||||||||||||||||||||
(Reversal of) Provision for FDIC clawback liability |
| | | (797 | ) | (518 | ) | (0.02 | ) | | | | ||||||||||||||||||||||||
Other non-operating non-interest expense |
2 | 1 | (0.00 | ) | 1 | 1 | (0.00 | ) | (311 | ) | (202 | ) | (0.01 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total non-interest expense adjustments |
3,174 | 2,289 | 0.07 | 6,394 | 4,156 | 0.12 | 246 | 161 | 0.01 | |||||||||||||||||||||||||||
Income tax benefits |
| (2,959 | ) | (0.09 | ) | | | | | | | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Operating earnings (Non-GAAP) |
48,675 | 35,023 | 1.05 | 48,602 | 34,671 | 1.04 | 35,006 | 25,753 | 0.87 | |||||||||||||||||||||||||||
Covered and acquired (reversal of) provision for loan losses |
2,474 | 1,608 | 0.05 | 1,692 | 1,100 | 0.03 | 79 | 51 | 0.00 | |||||||||||||||||||||||||||
Other provision for loan losses |
4,021 | 2,614 | 0.08 | 4,022 | 2,614 | 0.08 | 4,621 | 3,004 | 0.10 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Pre-provision operating earnings (Non-GAAP) |
$ | 55,170 | $ | 39,245 | $ | 1.17 | $ | 54,316 | $ | 38,385 | $ | 1.15 | $ | 39,706 | $ | 28,808 | $ | 0.97 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Per share amounts may not appear to foot due to rounding. |
(2) | After-tax amounts estimated based on a 35% marginal tax rate. |
Table 12 - IBERIABANK CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1)
(dollars in thousands)
For The Year Ended | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Dollar Amount | Dollar Amount | |||||||||||||||||||||||
Pre-tax | After-tax (2) | Per share | Pre-tax | After-tax (2) | Per share | |||||||||||||||||||
Net Income (Loss) (GAAP) |
$ | 140,200 | $ | 105,450 | $ | 3.30 | $ | 80,972 | $ | 65,103 | $ | 2.20 | ||||||||||||
Non-interest income adjustments |
||||||||||||||||||||||||
Gain on sale of investments and other non-interest income |
(2,757 | ) | (2,319 | ) | (0.07 | ) | (2,334 | ) | (1,517 | ) | (0.05 | ) | ||||||||||||
Non-interest expense adjustments |
||||||||||||||||||||||||
Merger-related expenses |
15,093 | 10,104 | 0.32 | 783 | 509 | 0.02 | ||||||||||||||||||
Severance expenses |
6,951 | 4,518 | 0.14 | 2,538 | 1,649 | 0.05 | ||||||||||||||||||
(Gain) Loss on sale of long-lived assets, net of impairment |
7,073 | 4,597 | 0.14 | 37,183 | 24,169 | 0.81 | ||||||||||||||||||
(Reversal of) Provision for FDIC clawback liability |
(797 | ) | (518 | ) | (0.02 | ) | 797 | 518 | 0.02 | |||||||||||||||
Debt prepayment |
| | | 2,307 | 1,500 | 0.05 | ||||||||||||||||||
Other non-operating non-interest expense |
200 | 130 | 0.01 | 934 | 608 | 0.03 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total non-interest expense adjustments |
28,520 | 18,831 | 0.59 | 44,542 | 28,952 | 0.97 | ||||||||||||||||||
Income tax benefits |
| (2,959 | ) | (0.09 | ) | | | | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating earnings (Non-GAAP) |
165,963 | 119,004 | 3.73 | 123,180 | 92,538 | 3.12 | ||||||||||||||||||
Covered and acquired (reversal of) provision for loan losses |
6,018 | 3,912 | 0.12 | (786 | ) | (511 | ) | (0.02 | ) | |||||||||||||||
Other (reversal of) provision for loan losses |
13,042 | 8,477 | 0.27 | 5,932 | 3,856 | 0.13 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Pre-provision operating earnings (Non-GAAP) |
$ | 185,023 | $ | 131,392 | $ | 4.12 | $ | 128,326 | $ | 95,883 | $ | 3.23 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Per share amounts may not appear to foot due to rounding. |
(2) | After-tax amounts estimated based on a 35% marginal tax rate. |
![]() MAKING
THE MOST OF IT 4Q14 Earnings Conference Call
Supplemental Presentation
January 28, 2015
Exhibit 99.2 |
![]() Safe
Harbor And Legend 2
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 managements 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.
The
Companys
actual
strategies,
results
and
financial
condition
in
future
periods
may
differ
materially
from
those
currently
expected
due
to
various
risks
and
uncertainties. Forward-looking statements are subject to numerous assumptions,
risks and uncertainties that change over time and could cause actual results
or financial condition to differ materially from those expressed in or
implied by such statements. Consequently, no forward-looking statement can be guaranteed.
In connection with the proposed mergers, IBERIABANK Corporation has filed or 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 SUCH DOCUMENTS WILL CONTAIN
IMPORTANT INFORMATION. Investors and security holders may obtain a free copy of the proxy
statement / prospectuses (when they are available) and other documents containing
information about the pending transactions with Florida Bank Group, Inc.,
Old Florida Bancshares, Inc. and Georgia Commerce Bancshares, Inc., without
charge, at the SECs 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 common stock of
Old Florida Bancshares, Inc. or Georgia Commerce Bancshares, Inc., nor is it an offer to sell shares of
IBERIABANK Corporation common stock which may be issued in the proposed
mergers. The issuance of IBERIABANK
Corporation
common
stock
in
any
proposed
merger
would
have
to
be
registered
under
the
Securities Act of 1933, as amended, and such IBERIABANK Corporation common stock
would be offered only by means of a prospectus complying with the Act.
|
![]() 3
Reported EPS of $1.07 (up $0.15 from 3Q14) and non-GAAP operating EPS of $1.05
(up $0.01 from 3Q14)
Tax
equivalent
net
interest
income
increased
$2.8
million,
or
2%
from
3Q14,
while
average
earning assets increased $154 million, or 1%
Announced three acquisitions; Florida Bank Group, Inc., Old Florida Bancshares,
Inc., and Georgia Commerce Bancshares, Inc.
Legacy loan growth:
Legacy deposit growth:
Net interest margin increased four bps to 3.53%, which exceeded previously
disclosed guidance range of 3.45% to 3.50%
Tangible operating efficiency ratio increased to 65.9% in 4Q14 from 65.7% in
3Q14
Tax-equivalent operating revenues up $3 million or +2% (+7% annualized)
$2.9 million income tax benefit resulting in a $0.09 per share increase in
non-operating EPS $489 million since September 30, 2014 (+21%
annualized), including $324 million of Commercial and $165 million of Small
Business and Consumer Growth in the loan portfolio was 34% Retail and Small
Business and 66% Commercial
Overview
Introductory
Comments
Fourth
Quarter
2014
$143 million since September 30, 2014 (+5% annualized)
$38 million increase in non-interest bearing deposits (+5% annualized)
|
![]() 4
Successfully completed and converted three acquisitions. Synergies better
than expected and deposit attrition less than expected.
Loan growth in 18 of 21 markets and deposit growth in 17 of 21 markets.
Average
asset
growth
of
$1.6
billion
in
2014,
up
13%
compared
to
2013.
Between year-end 2013 and 2014, improvement in nearly all asset quality
metrics. Strategic goal is top quartile performance throughout the
planning period.
Net interest margin improved 13 basis points in 2014 to 3.51%, which exceeded
previously disclosed guidance range of 3.45% to 3.50%.
Tax equivalent operating revenues increased $74 million, or 13% compared to
2013.
Operating expenses increased $17 million, or 4%, compared to 2013, resulting in
positive operating leverage of 4.5 times.
Tangible operating efficiency ratio improved 600 basis points, from 74.6% in 2013
to 68.5% in 2014. The ratio improved further to 65.9% in 4Q14.
Strategic goal is below 60% by 4Q16.
Operating return on average tangible common equity of 9.94% in 2014, compared to
8.48% in 2013, and 11.17% in 4Q14 (11.46% on a reported basis.)
Strategic goal is 13.00% to 17.00% by 4Q16.
Reported EPS of $3.30 (up 50% from 2013) and non-GAAP operating EPS of $3.73
(up 20% from 2013). Strategic goal is double-digit percentage
growth year-over-year in operating EPS throughout the planning
period. Overview
Introductory
Comments
Year
of
2014 |
![]() 5
Overview
Non-Performing Assets Trends
$ in millions
NPA determination based on regulatory guidance for Acquired portfolios
4Q14 includes $12 million of Bank-related properties reclassified to OREO
No energy loans classified as
non-performing assets at
December 31, 2014 |
![]() 6
Overview
Allowance Coverage To NPAs
Legacy IBKC
4Q14 Allowance for
loan losses of $76.2
million
4Q14 Reserve for
unfunded lending
commitments of $11.8
million
Legacy NPAs of $57.0
million; including
approximately $12
million of OREO bank-
related properties
Excluding former bank-
related properties,
ACL/NPAs equals
193.7%
Excludes all covered and acquired assets |
![]() 7
Acquisitions
Update
HQ:
Tampa, Florida
Offices:
13 in Florida
Assets:
$571 million
Loans:
$319 million
Deposits:
$404 million
Collars:
$56.79 & $76.83
% Pro Forma IBKC: 3%
Merger Update:
Announced:
October 3
rd
Apps. Accepted*:
November 5
th
S-4 Effective:
December 8
th
Shareholder Vote:
January 13
th
Potential Closing:
1Q15
HQ:
Orlando, Florida
Offices:
14 in Florida
Assets:
$1.4 billion
Loans:
$1.1 billion
Deposits:
$1.2 billion
Collars:
$57.31 & $70.05
% Pro Forma IBKC: 7%
Merger Update:
Announced:
October 27
th
Apps. Accepted*:
November 26
th
S-4 Effective:
January 15
th
Shareholder Vote:
February 20
th
Potential Closing:
1Q15
HQ:
Atlanta, Georgia
Offices:
9 in Georgia
Assets:
$1.0 billion
Loans:
$746 million
Deposits:
$858 million
Collars:
$58.69 & $71.73
% Pro Forma IBKC: 5%
Merger Update:
Announced:
December 8
th
Apps. Accepted*:
December 23
rd
S-4 Effective:
TBD
Shareholder Vote:
TBD
Potential Closing:
2Q15
Old Florida Bancshares
Georgia Commerce
Florida Bank Group
Unaudited Balance Sheet Information as of December 31, 2014
*Dates applications were accepted by Federal Reserve Bank of Atlanta
|
![]() Financial Results
Non-Interest Income
4Q14 Components
Operating non-
interest income
increased $0.2
million, or less than
1%, on a linked
quarter basis
Non-operating
income of $0.4
million includes:
$0.2 million in
gains on sales of
investments
$0.2 million of
other non-
operating income
8 |
![]()
Mortgage 4Q14 Non-Interest Income of $13.6
million is $0.6 million lower than 3Q14 driven by
$0.6 million lower market value adjustment
gains (-$1.1million recognized in 4Q14 versus
-$0.5 million in 3Q14)
$0.7 million higher hedging costs ($3.2 million
in 4Q14 versus $2.5 million in 3Q14)
$0.7 million higher gains on lower sales
volume (-5%) and higher sales margins (+4%)
Loan originations were up $3 million in 4Q14 to
$459 million from $456 million in 3Q14 (+1%)
The pipeline plus loans held for sale at December
31
st
was 13% lower than at September 30, 2014
Financial Results
Mortgage Income
9 |
![]() Financial Results
Weekly Locked Mortgage Pipeline Trends
Significant pipeline
declines in winter
months
Seasonal rebound
commences at the
start of each year
through spring
months into early
summer
Increased
production due to a
combination of
favorable rate
environment and
improved recruiting
in key markets
Weekly locked
pipeline was $200
million at January
23, 2015, up 46%
since December
31, 2014
10 |
![]() 11
Operating non-
interest expense
increased $2.2
million, or 2%, on
a linked-quarter
basis
Non-operating
expense of $3.2
million includes:
$1.1 million in
impairment of
long-lived
assets
$2.1 million of
merger-related
expenses
Financial Results
Non-Interest Expense
4Q14 Components |
![]() ![]() 12
Capital
Results and Anticipated Changes
Increase in Tier 1
Leverage ratio from
3Q14 due to an increase
in net interest income in
4Q14
Estimated Future Impacts:
Anticipated 50% phase-
out of trust preferred
securities beginning in
2015
Expiration of loss share
coverage on three FDIC-
assisted transactions
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, on January 1, 2015, the Company experienced the expiration of FDIC
loss share protection on additional non-single family loans associated
with three FDICassisted transactions
Net risk weighted assets increased $347 million, 3%, from 3Q14 as a result of
organic loan growth,
investment
securities
purchases
and
a
shift
of
loans
out
of
the
covered
loan
portfolio
Q3 2014
Q4 2014
Well
Capitalized
Minimum
Tier 1 Leverage
9.21%
9.36%
15
bps
5.00%
Tier 1 Risk Based
11.20%
11.18%
(2)
bps
6.00%
Tier 1 Common Risk Based
10.32%
10.32%
(0)
bps
3.00%
Total Risk Based
12.40%
12.30%
(10)
bps
10.00%
Tangible Common Equity / Tangible Assets
8.45%
8.60%
15
bps
N/A
IBERIABANK Corporation Capital Ratios
Change
Estimated Impact on 4Q 2014 Capital Ratios
Phase out of Trust Preferred Securites (50% Phase Out)
(36)
bps
(43)
bps
-
bps
End
of
Loss
Share
-
certain
covered
assets
-
bps
(11)
bps
(12)
bps
Total Impact
(36)
bps
(54)
bps
(12)
bps
Total Risk Based
Tier 1 Risk Based
Tier 1 Leverage |
![]() Energy
13 |
![]() 14
Energy
Drilling Rig Count vs WTI Spot Price
Source: IBERIA Capital Partners, Bloomberg
Data as of January 28, 2015
Cycle B
-49% in 553 days
1,179 to 596
Cycle A
-75% in 574 days
2,713 to 686
Cycle F
-57% in 273 days
2,031 to 876
Today
-15% in 119 days
1,931 to 1,633
Cycle D
-43% in 266 days
1,293 to 738
Cycle C
-52% in 490 days
1,019 to 488 |
![]() 15
Energy
Energy Portfolio Risk Profile
Relative Risk
Midstream
E&P
Services
millions
Total Outstanding Loan Balances |
![]() 16
Oilfield Service
Oilfield Service Index
Trailing Twelve Month EBITDA
Source: IBERIA Capital Partners, Bloomberg
Data as of January 28, 2015
Aggregate EBITDA represents PHLX Oil Services Index, excluding Tidewater and Oil
States Cycle C
-47% over 7Qs
$9.4B to $5.0B
Cycle D
-31% over 6Qs
$9.8B to $6.7B
Cycle F
-30% over 6Qs
$36.6B to $25.6B
E |
![]() 17
Midstream
Composition of Midstream Portfolio -
4Q14
*Iberiabank less FDIC Oil and Gas Data |
![]() 18
Seasonal Influences |
![]() 19
Seasonal Influences
Quarterly Organic Loan Growth
First quarter of each year tends to exhibit
slower loan growth than other quarters due
to seasonal factors
4Q14 organic loan growth of $489 million,
+21% annualized growth
4Q14 quarterly organic loan growth was the
second strongest in company history |
![]() 20
Seasonal Influences
Capital Markets and Wealth Management
ICP revenues -36%
compared to 3Q14
IWA revenues +8%
compared to 3Q14
IFS revenues -13%
compared to 3Q14
$1.0 million decline in
revenues at ICP due to
lower investment
banking and capital
market activities
income as a result of
rapid decline in energy
prices during 4Q14
IWA assets under
management
increased $137 million
(+11%) to $1.4 billion
on December 31, 2014 |
![]() Seasonal Influences
Payroll Taxes and Retirement Contributions
Influenced by impact of Teche acquisition
completed in May 2014 and First Private
acquisition completed in June 2014
21 |
![]() Seasonal Influences
Checking NSF Related Charges
Influenced by impact of
Teche acquisition completed
in May 2014
22 |
![]() Appendix
23 |
![]() 24
Appendix
Performance Metrics
Quarterly Trends
Average earning
assets up $0.2
billion (+1%)
T/E net interest
income up $3
million (+2%)
Provision for loan
losses of $6 million:
Legacy net charge-
offs: $1.5 million
(0.06% annualized
rate)
Covered and
acquired net
charge-offs: $0.2
million (0.05%
annualized rate)
Legacy provision
for loan losses:
$4.0 million
12/31/2013
3/31/2014
6/30/2014
9/30/2014
12/31/2014
Net Income ($ in thousands)
25,604
$
22,395
$
16,227
$
30,892
$
35,936
$
16%
Per Share Data:
Fully Diluted Earnings
0.86
$
0.75
$
0.53
$
0.92
$
1.07
$
16%
Operating Earnings (Non-GAAP)
0.87
0.73
0.89
1.04
1.05
1%
Pre-provision Operating Earnings (Non-GAAP)
0.97
0.78
0.99
1.15
1.17
2%
Tangible Book Value
37.17
37.59
37.30
37.83
39.11
3%
Key Ratios:
Return on Average Assets
0.77%
0.68%
0.46%
0.79%
0.91%
12
bps
Return on Average Common Equity
6.62%
5.83%
3.99%
6.78%
7.78%
100
bps
Return on Average Tangible Common Equity (Non-GAAP)
9.43%
8.36%
5.88%
10.10%
11.46%
136
bps
Net Interest Margin (TE)
(1)
3.52%
3.54%
3.49%
3.49%
3.53%
4
bps
Tangible Operating Efficiency Ratio (TE)
(1)
(Non-GAAP)
69.9%
73.6%
69.9%
65.7%
65.9%
15
bps
Tangible Common Equity Ratio (Non-GAAP)
8.55%
8.61%
8.44%
8.45%
8.60%
15
bps
Tier 1 Leverage Ratio
9.70%
9.61%
10.00%
9.21%
9.36%
15
bps
Tier 1 Common Ratio (Non-GAAP)
10.55%
10.44%
10.30%
10.32%
10.32%
(0)
bps
Total Risk Based Capital Ratio
12.82%
12.69%
12.41%
12.40%
12.30%
(10)
bps
Net Charge-Offs to Average Loans
(2)
0.07%
0.05%
0.04%
0.09%
0.06%
(3)
bps
Non-performing Assets to Total Assets
(2)
0.61%
0.49%
0.53%
0.46%
0.41%
(5)
bps
(1)
Fully taxable equivalent basis.
(2)
Excluding FDIC Covered Assets and Acquired Assets.
Linked Quarter
%/Basis Point
Change
For Quarter Ended: |
![]() 25
Appendix
Performance Metrics
Yields and Costs
9/30/2014
12/31/2014
Investment Securities
2.20%
2.24%
4
bps
Covered Loans, net of loss share receivable
3.07%
3.57%
50
bps
Legacy Loans, net
3.97%
3.94%
(3)
bps
Non-Covered Acquired Loans, net
6.63%
6.94%
31
bps
Loans & Loss Share Receivable
4.31%
4.32%
1
bps
Mortgage Loans Held For Sale
3.90%
3.95%
5
bps
Other Earning Assets
0.60%
0.80%
20
bps
Total Earning Assets
3.83%
3.88%
5
bps
Interest-bearing Deposits
0.39%
0.41%
2
bps
Short-Term Borrowings
0.17%
0.19%
2
bps
Long-Term Borrowings
2.75%
2.73%
(2)
bps
Total Interest-bearing Liabilities
0.46%
0.48%
2
bps
Net Interest Spread
3.38%
3.41%
3
bps
Net Interest Margin
3.49%
3.53%
4
bps
(1)
Earning asset yields are shown on a fully taxable-equivalent basis.
For Quarter Ended:
Linked Quarter
Basis Point
Change |
![]() Appendix
Non-GAAP Cash Margin
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
4Q13
Average Balance
11,853,896
3,929
11,857,825
Income
103,438
(2,072)
101,366
Rate
3.52%
-0.03%
3.49%
1Q14
Average Balance
12,088,186
16,847
12,105,029
Income
104,408
(2,517)
101,890
Rate
3.54%
-0.09%
3.45%
2Q14
Average Balance
12,687,971
30,318
12,718,289
Income
109,273
392
109,665
Rate
3.49%
0.01%
3.50%
3Q14
Average Balance
13,990,358
44,149
14,034,507
Income
121,751
(4,170)
117,581
Rate
3.49%
-0.13%
3.36%
4Q14
Average Balance
14,144,762
54,669
14,199,431
Income
124,680
(6,076)
118,603
Rate
3.53%
-0.18%
3.35%
26 |
![]() 27
Appendix
Non-Interest Income Trends
Mortgage income decreased $0.6 million, or -4%
Capital markets revenue decreased $1.0 million, or -36%
Credit Card fee income increased $0.8 million, or +30%
Corporate owned life insurance income increased $1.0 million
due to valuation adjustments on investments (mostly offset by
an increase to non-interest expense)
4Q14 originations up 1% from 3Q14
Refinancings were 36% of production, up
from 25% in 3Q14
Sales decreased 5% in 4Q14
Margins 5% higher in 4Q14
Pipeline of $137 million at quarter-end,
down 19% as compared to September 30,
2014. At January 23, 2015, the locked
pipeline was $200 million or +46% over
December 31, 2014
3Q14 and 4Q14 includes full quarter of Teche and First Private results
Non-interest Income ($000s)
4Q13
1Q14
2Q14
3Q14
4Q14
$ Change
% Change
Service Charges on Deposit Accounts
7,455
$
7,012
$
8,203
$
10,205
$
10,153
$
(52)
$
-1%
ATM / Debit Card Fee Income
2,493
2,467
2,937
3,287
3,331
44
1%
BOLI Proceeds and CSV Income
900
934
934
1,047
1,050
3
0%
Mortgage Income
12,356
10,133
13,755
14,263
13,646
(617)
-4%
Title Revenue
4,327
4,167
5,262
5,577
5,486
(91)
-2%
Broker Commissions
4,986
4,048
5,479
5,297
3,960
(1,337)
-25%
Other Noninterest Income
6,179
5,129
7,182
6,854
9,071
2,217
32%
Noninterest income excluding non-operating income
38,696
33,890
43,752
46,530
46,697
167
0%
Gain (Loss) on Sale of Investments, Net
19
19
8
582
164
(418)
-72%
Other Non-operating income
-
1,772
1
-
211
211
100%
Total Non-interest Income
38,715
$
35,681
$
43,761
$
47,112
$
47,072
$
(40)
$
0%
4Q14 vs. 3Q14 |
![]() 28
Appendix
Non-Interest Expense Trends
Non-interest expenses excluding non-operating items up
$2.4 million, or 2%, as compared to 3Q14
Total expenses down $0.8 million, or -1%, in 4Q14
Severance expense down $1.1 million, mostly related to
Teche acquisition
Impairment of long-lived assets down $3.1 million
Merger-related expense increased $0.2 million
Tangible Operating Efficiency Ratio of 65.9%, up from
65.7% in 3Q14
3Q14 and 4Q14 includes full quarter of Teche and First Private results
Non-interest Expense ($000s)
4Q13
1Q14
2Q14
3Q14
4Q14
$ Change
% Change
Mortgage Commissions
3,169
$
2,215
$
3,481
$
3,912
$
4,045
$
133
$
3%
Hospitalization Expense
3,899
3,944
3,661
4,611
4,606
(5)
0%
Other Salaries and Benefits
52,108
53,582
55,921
54,898
56,784
1,886
3%
Salaries and Employee Benefits
59,176
$
59,741
$
63,063
$
63,421
$
65,435
$
2,013
$
3%
Credit/Loan Related
2,776
3,560
3,093
4,569
2,483
(2,086)
-46%
Occupancy and Equipment
13,971
13,775
13,918
14,580
14,526
(54)
0%
Amortization of Acquisition Intangibles
1,177
1,218
1,347
1,623
1,618
(5)
0%
All Other Non-interest Expense
25,328
27,328
28,744
29,771
32,146
2,375
8%
Nonint. Exp. (Ex-Non-Operating Exp.)
102,428
$
105,622
$
110,165
$
113,965
$
116,208
$
2,243
$
2%
Severance
216
119
5,466
1,226
139
(1,087)
-89%
Occupancy and Branch Closure Costs
-
17
14
-
-
-
100%
Storm-related expenses
-
184
4
1
2
1
143%
Impairment of Long-lived Assets, net of gains on sales
(225)
541
1,241
4,213
1,078
(3,135)
-74%
Provision for FDIC clawback liability
-
-
-
(797)
-
797
-100%
Debt Prepayment
-
-
-
-
-
-
100%
Termination of Debit Card Rewards Program
(311)
(22)
-
-
-
-
100%
Consulting and Professional
-
-
-
-
-
-
100%
Merger-Related Expenses
566
967
10,419
1,752
1,955
203
12%
Total Non-interest Expense
102,674
$
107,428
$
127,309
$
120,360
$
119,382
$
(978)
$
-1%
Tangible Efficiency Ratio - excl Nonop-Exp
69.9%
73.6%
69.9%
65.7%
65.9%
4Q14 vs. 3Q14
Linked quarter increases/decreases of:
Equity compensation expense
$1.2 mil
Corporate-owned life insurance expense
Marketing and business development
0.5
Legal and professional fees
0.6
Credit/Loan related expense
(2.1)
Decreased payroll tax expense
(0.5)
0.7 |
![]() 29
Appendix
Non-Operating Items (Non-GAAP)
Non-operating adjustments equal to $3.2 million pre-tax or $0.02 EPS after-tax:
4Q14 Merger related expense of $2.0 million pre-tax or $0.04 EPS after-tax
4Q14 Severance expense of $0.1 million pre-tax or less than $0.01 EPS after-tax
Net impairment expense of $1.1 million pre-tax or $0.02 EPS after-tax
Income tax benefits of ($3.0) million or ($0.09) after tax
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)
34,779
$
25,604
$
0.86
$
42,789
$
30,892
$
0.92
$
45,875
$
35,936
$
1.07
$
Non-interest income adjustments
Gain on sale of investments and other non-interest income
(19)
(12)
(0.00)
(582)
(378)
(0.01)
(374)
(243)
(0.01)
Non-interest expense adjustments
Merger-related expenses
566
368
0.01
1,752
1,139
0.04
1,955
1,496
0.04
Severance expenses
216
141
0.00
1,226
797
0.02
139
91
0.00
(Gain) Loss on sale of long-lived assets, net of impairment
(225)
(146)
(0.00)
4,213
2,738
0.08
1,078
701
0.02
(Reversal of) Provision for FDIC clawback liability
-
-
-
(797)
(518)
(0.02)
-
-
-
Other non-operating non-interest expense
(311)
(202)
(0.01)
1
1
(0.00)
2
1
(0.00)
Total non-interest expense adjustments
246
161
0.01
6,394
4,156
0.12
3,174
2,289
0.07
Income tax benefits
-
-
-
-
-
-
-
(2,959)
(0.09)
Operating
earnings
(Non-GAAP)
(3)
35,006
25,752
0.87
48,602
34,671
1.04
48,675
35,023
1.05
Covered and acquired impaired (reversal of) provision for loan losses
79
51
0.00
1,692
1,100
0.03
2,474
1,608
0.05
Other (reversal of) provision for loan losses
4,621
3,004
0.10
4,022
2,614
0.08
4,021
2,614
0.08
Pre-provision
operating
earnings
(Non-GAAP)
(3)
39,706
$
28,808
$
0.97
$
54,316
$
38,385
$
1.15
$
55,170
$
39,245
$
1.17
$
(1) Per share amounts may not appear to foot due to rounding.
(2) After-tax amounts estimated based on a 35% marginal tax rate.
RECONCILIATION
OF
NON-GAAP
FINANCIAL
MEASURES
(1)
(dollars in thousands)
For The Quarter Ended
December 31, 2013
September 30, 2014
December 31, 2014
Dollar Amount
Dollar Amount
Dollar Amount |
![]() 30
Appendix
Prior Period Adjustments
Purchase accounting adjustments represent adjustments to the fair values of
loans, mortgage servicing rights, and core deposit intangibles as recorded on the
acquisition date for the Teche transaction.
Correction adjustments represent recognition of timing adjustments of
mortgage- related income amounts recorded in the second and third
quarters. $ in thousands, except per share data
As Reported
Updated
As Reported
Updated
Net Interest Income
108,979
$
294
$
0
$
109,273
$
121,041
$
710
$
(0)
$
121,751
$
Non-Interest Income
47,963
(13)
(4,189)
43,761
45,663
(38)
1,487
47,112
Non-Interest Expense
127,375
104
(170)
127,309
120,060
130
170
120,360
EPS,
Diluted -
GAAP
0.60
$
0.00
$
(0.08)
$
0.53
$
0.89
$
0.01
$
0.02
$
0.92
$
EPS,
Diluted
-
Operating
(Non-GAAP)
0.96
0.00
(0.07)
0.89
1.00
0.01
0.03
1.04
Book Value per Share
53.86
$
-
$
(0.09)
$
53.77
$
54.35
$
0.02
$
(0.05)
$
54.32
$
Tangible Book Value per Share
37.41
(0.04)
(0.07)
37.30
37.91
(0.03)
(0.05)
37.83
Return on Average Assets
0.53%
-
bps
(7)
bps
0.46%
0.76%
1
bps
2
bps
0.79%
Return on Average Common Equity
4.56%
3
bps
(60)
bps
3.99%
6.52%
8
bps
18
bps
6.78%
Return on Average Tangible Common Equity
6.62%
10
bps
(84)
bps
5.88%
9.68%
15
bps
27
bps
10.10%
Net Interest Margin (TE)
3.48%
1
bps
-
bps
3.49%
3.47%
2
bps
-
bps
3.49%
2Q 2014
3Q 2014
Correction
Correction
Purchase
Accounting
Adjustment
Purchase
Accounting
Adjustment |
![]() 31
Appendix
Market Highlights For 4Q14
Competitive pressure remains strong for high quality commercial and
business banking clients in terms of both pricing and structure
Houston, New Orleans, Birmingham, Baton Rouge, and Lafayette
showed strong commercial loan originations
Total commitments originated during 4Q14 of $1.2 billion with 32%
fixed rate and 68% floating rate
Commercial loans originated and funded in 4Q14 totaled $563 million
with a mix of 19% fixed and 81% floating ($808 million in commercial
loan commitments during the quarter)
Strong commercial pipeline in excess of $600 million at quarter-end
Legacy small business loan growth of $56 million, or +7%, on a linked-
quarter basis
Period-end core deposit increase of $131 million, with non-interest
bearing deposits up $38 million |
![]() 32
Appendix
Small Business and Retail
4Q14 Progress
Excludes acquired loans and deposits
Small Business loan growth of $56 million, or +7%, on a linked-quarter basis
Consumer Direct & Mortgage loan growth of $108 million, or +4%, on a linked
quarter basis
Credit Card loan growth of $4 million, or +6%, on a linked quarter basis
Checking account growth:
Small Business checking accounts increased 11% year-over-year
and a 1% on a linked quarter basis
Consumer checking accounts decreased 2% year-over-year and a
1% on a linked quarter basis, primarily due to expected attrition from
recently converted Teche portfolio
Continued focus on productivity and efficiency of the delivery network
opened one branch in 4Q14, did not close any branches in 4Q14
Acceptance and usage of digital delivery continues to increase among our
client base
Released Online Account Opening for Small Business Deposits
|
![]() 33
Appendix
Loan Growth And Mix Since Year-End 2008
December 31, 2008
$3.7 Billion
December 31, 2014
$11.4 Billion
Acquired loans, net of discount
+$4.0 billion
Acquired loan pay downs
($2.2 billion)
Legacy loan growth
+$5.9 billion
Total net growth
+$7.7 billion |
![]() 34
Appendix
Loan Growth
Legacy Loan Growth
$ in millions
4
Quarter
2014:
$489 million, or
+5% (+21%
annualized)
Since YE 2009:
$5.6 billion, or
+135% (+27%
annualized)
The FDIC
covered loan
portfolio declined
73%, or $1.2
billion (15%
annualized rate)
th |
![]() 35
Appendix
Loan Growth and Originations 4Q14
Top Markets
$ in millions
Loan commitments and originations include renewals
$ in millions
$489 million in legacy loan growth for 4Q14
Top 5 markets represent 74% of legacy growth
$1.2 billion in total funded and unfunded
loan commitments |
![]() 36
Appendix
Deposit Growth And Mix Since Year-End 2008
December 31, 2008
$4.0 Billion
December 31, 2014
$12.5 Billion
$8.5 billion growth in total
deposits or +213% (+36%
annualized) |
![]() 37
Excludes acquired deposits
Appendix
Deposit Growth
$ in millions
Increase of $143
million, or 1% in
4Q14 (+5%
Annualized)
$38 million (+1%)
growth in non-
interest bearing
deposits for 4Q14
Total Deposit Growth
Very strong
transaction account
growth in 4Q12 |
![]() Appendix
Non-Interest Bearing Deposits
% of Total
Deposits
$38 million of
incremental non-
interest-bearing
deposit growth or
+1% (+5%
annualized) in 4Q14
Top 4Q14 non-
interest-bearing
deposit growth
markets include:
Non-interest-bearing deposits at period-end
$ in billions
38
Houston,
Lafayette,
Sarasota
Naples, and
NE Arkansas |
![]() Appendix
Deposits Costs
Our deposit
costs declined
greater than
peers
A portion of the
lower costs were
due to improved
mix of deposits
Non-interest-
bearing deposits
grew from 11%
of total deposits
in 2010 to 26%
of total deposits
in 4Q14
39 |
![]() 40
Appendix
Legacy Portfolio
Asset Quality Summary
(Excludes FDIC covered assets and all acquired loans)
NPAs equated to
0.41% of total assets,
down 5 bps compared
to 3Q14. Includes $12
million of bank-related
properties
$60 million in classified
assets (down $7.8
million from 3Q14)
Legacy net charge-offs
of $1.5 million, or an
annualized rate of
0.06% of average
loans
Past due loans
increased $15 million,
or 29%, to 0.68% of
total loans at 4Q14.
Increase associated
with three specific loan
relationships that have
been brought current
since year-end
($ thousands)
12/31/2013
9/30/2014
12/31/2014
Non-accrual Loans
43,687
$
38,060
$
34,970
$
-20%
-8%
OREO
28,272
23,477
21,243
-25%
-10%
Accruing Loans 90+ Days Past Due
1,075
4
754
-30%
16808%
Non-performing Assets
73,034
61,542
56,967
-22%
-7%
Note: NPAs excluding Former Bank Properties
63,828
48,808
45,411
-29%
-7%
Past Due Loans
66,153
50,505
65,291
-1%
29%
Classified Loans
82,199
67,462
59,663
-27%
-12%
Non-performing Assets/Assets
0.61%
0.46%
0.41%
(20)
bps
(5)
bps
NPAs/(Loans + OREO)
0.88%
0.67%
0.59%
(29)
bps
(8)
bps
Classified Assets/Total Assets
0.69%
0.50%
0.43%
(26)
bps
(7)
bps
(Past Dues & Nonaccruals)/Loans
0.80%
0.55%
0.68%
(12)
bps
13
bps
Provision For Loan Losses
4,621
$
4,022
$
4,021
$
-13%
0%
Net Charge-Offs/(Recoveries)
1,366
2,131
1,538
13%
-28%
Provision Less Net Charge-Offs
3,255
$
1,891
$
2,483
$
-24%
31%
Net Charge-Offs/Average Loans
0.07%
0.09%
0.06%
(1)
bps
(3)
bps
Allowance For Loan Losses/Loans
0.81%
0.79%
0.79%
(2)
bps
(0)
bps
Allowance For Credit Losses/Loans
0.95%
0.92%
0.91%
(4)
bps
(1)
bps
% or Basis Point Change
Year/Year
Qtr/Qtr
For Quarter Ended: |
![]() 41
Appendix
Asset Quality Portfolio Trends
($thousands)
Non-accruals
270,428
$
195,680
$
169,686
$
-37%
-13%
OREO & Foreclosed
99,173
63,386
53,947
-46%
-15%
90+ Days Past Due
2,194
190
1,708
-22%
798%
Non-performing Assets
371,795
$
259,256
$
225,341
$
-39%
-13%
NPAs/Assets
2.78%
1.67%
1.43%
(135)
bps
(24)
bps
NPAs/(Loans + OREO)
3.88%
2.32%
1.96%
(192)
bps
(36)
bps
LLR/Loans
1.51%
1.21%
1.14%
(37)
bps
(8)
bps
ACL/Loans
1.62%
1.32%
1.24%
(38)
bps
(8)
bps
Net Charge-Offs/Loans
0.06%
0.08%
0.06%
0
bps
(2)
bps
Past Dues:
30-89 Days Past Due
40,918
$
17,508
$
51,141
$
25%
192%
90+ days Past Due
2,194
190
1,708
-22%
798%
Non-accual Loans
270,428
195,680
169,686
-37%
-13%
Total 30+ Past Dues
313,540
$
213,378
$
222,535
$
-29%
4%
% Loans
3.30%
1.93%
1.95%
(136)
bps
2
bps
3Q14
Total Portfolio
% or Basis Point Change
4Q14
Year/Year
Qtr/Qtr
4Q13 |
![]() 42
Appendix
Expected Quarterly Re-pricing Schedule
$ 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 1Q15
2Q15
3Q15
4Q15
1Q16
Cash Equivalents
Balance
356.2
$
-
$
-
$
-
$
-
$
Rate
0.82%
0.00%
0.00%
0.00%
0.00%
Investments
Balance
68.5
$
78.5
$
76.7
$
76.4
$
59.6
$
Rate
2.97%
2.92%
3.06%
3.14%
2.96%
Fixed Rate Loans
Balance
347.7
$
317.9
$
321.1
$
296.8
$
282.0
$
Rate
4.97%
5.01%
4.92%
4.91%
4.91%
Variable Rate Loans
Balance
5,241.7
$
60.4
$
48.5
$
44.2
$
19.6
$
Rate
3.24%
2.82%
3.77%
3.47%
3.33%
Held for Sale Loans
Balance
140.1
$
-
$
-
$
-
$
-
$
Rate
4.33%
0.00%
0.00%
0.00%
0.00%
Time Deposits
Balance
674.6
$
362.4
$
320.7
$
264.8
$
105.9
$
Rate
0.42%
0.64%
0.74%
0.70%
1.07%
Repos/ST Debt
Balance
522.7
$
290.0
$
20.0
$
10.0
$
-
$
Rate
0.15%
0.20%
0.27%
0.29%
0.00%
Borrowed Funds
Balance
122.3
$
10.5
$
3.7
$
2.3
$
2.3
$
Rate
3.24%
3.49%
3.94%
3.69%
3.73% |
![]() 43
Appendix
Interest Rate Risk Simulation
Source: Bancware model, as of December 31, 2014
* 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 positive impact over 12 months
Base
Blue
Forward
Change In:
-200 bp*
-100 bp*
Case
+100 bp*
+200 bp*
Chip
Curve
Net Interest
Income
-4.2%
-2.0%
0.0%
4.5%
9.1%
1.3%
1.1%
Economic
Value of
Equity
-7.1%
-12.2%
0.0%
8.6%
15.3%
-0.2%
-0.2% |
![]() Florida Bank Group, Inc.
Appendix
Announced October 3, 2014
In market and new-market acquisition of a Florida-based
commercial bank based in Tampa, Florida
Adds
13
branches
in
Florida
eight
offices
in
Tampa,
three
in
Jacksonville, one in Sarasota and one in Tallahassee
As of December 31, 2014:
Total Loans:
$319 million
Total Assets:
$571 million
Total Deposits:
$404 million
Total Equity:
$80 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%
(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 44
IBKC
Florida Bank Group |
![]()
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 December 31, 2014:
Total Loans:
$1.1 billion
Total Assets:
$1.4 billion
Total Deposits:
$1.2 billion
Total
Equity:
$160
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
ratios
outside
of
collars
(1)
$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%
Old Florida
Bancshares, Inc.
Shareholders
Aggregate Value
Equity
(2)
Including Options
(3)
45
Appendix
Price
/
Total
Book:
163%
178%
Price
/
Tangible
Book:
170%
185%
Notes:
(1)
The agreement provides for a fixed exchange ratio with pricing collars that fix the value received by Old
Floridas shareholders if the weighted average trading price of IBERIABANK
Corporations 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
$238
million
for
total
equity
(2)
outstanding
based
on
IBKCs
closing price of $64.13 on October 23,2014 |
![]() Georgia Commerce
Bancshares, Inc.
Announced December 8, 2014
New market acquisition of a Georgia-based commercial
bank headquartered in Atlanta, Georgia
Adds
nine
branches
in
Georgia
all
offices
are
in
the
Atlanta, MSA
As of December 31, 2014:
Total Loans:
$746 million
Total Assets:
$1,020 million
Total Deposits:
$858 million
Total Equity:
$104 million common stock
Tax-free, stock-for-stock exchange
Fixed exchange ratio of 0.6134 share of IBKC common
stock for each Georgia Commerce Bancshares, Inc. share
within collars and floating exchange ratios outside of
collars
(1)
$189 million for total equity
(2)
outstanding based on IBKCs
closing price of $65.21 on December 5, 2014
$40.00 per Georgia Commerce common share
outstanding
(2)
Estimated $6 million in cash liquidation value of all options
outstanding
(3)
Approximately 1.6% accretive to EPS in 2016 and 5%
accretive in 2017
TBVS dilution of approximately 1.8% at consummation
TBVS breakeven in approximately three and one-half years
IRR in excess of 20%
Shareholders
Aggregate Value
Equity
(2)
Including Options
(3)
Price / Total Book:
181%
186%
Price / Tangible Book:
196%
202%
(1)
The agreement provides for a fixed exchange ratio with pricing collars that fix the
value received by Georgia Commerces shareholders if the weighted average
trading price of IBERIABANK Corporations common stock were to decline
below $58.69 per share, or exceed $71.73 per share, over a specified period.
(2)
Assumes common shares and full exercise of outstanding warrants. No exercise of
stock options outstanding. (3)
Assumes all stock options outstanding are cashed out at consummation.
46
Appendix
Georgia Commerce |
![]() |
T?1].M/%?B#4K6=I-0O_LXNHS(#Y8C0B/@?=R"?
MK70CH,5QGAO1;VR^(GC/5KA(Q::B+)+=@^6;RHF#9';!:N@U[4ETK39;EOF8
M?*B]V8\`42DHJ[&S-\2WDUU L)I)CI4.GVDL*,F(UD,DF\@]S@+
M7=#I7+1^)$N/&NJ^'/LK*UG:V]VT^\8<2.RX`[8VUU(Z#G-`!1110`4444`1
M2_ZR+_?_`*&O'?CM>%M0TVR!RL<;S%>Q).!Q^!KV&7_61?[_`/0U\^_%J[^T
M^-[T`DK"J1#V.,_UKMR^'-6]#DQDK4_4QK?PWK,ME%J%GI]S);/RDD2[B><9
MXY[5-I?AS7==O?+AM+F210%:6<,H0?5OY5[_`.#++[#X4TFW(P4MES]2,_UK
M<``'`XK:>8R3=HJYE'`Q:3;9\V^,_"-SX7%E]HG687"'ZZ?$QOVB/V'6KB
MQAV)M_=IMVY]3\V,^U=CFN>\(:KIFK#6&TB'R5M]0FM;C]T(]\Z8#MQ][)[G
MDUT5,D****`"HKF"*Y@>&XC26)QAD=0P(]P:EHH0FM+%'3;.VL1+#9V\-O%D
M'9$@49QZ"KHZ5%'_`*^;ZC^534;[A:RL%%%%`Q"`>HHP/2EHH`BB^]+_`+_]
M!4M11?>E_P!_^@J6@`HHHH`*1_N-]#2TC_<;Z&@#G?%>EZ5J^CV4&NW'D6T=
MU;SQL91%F5(,GKE@!CO71CH,5Q?Q$\/WOB/0M*MM/$)D@U*TO&$S$#9%(&
M;&.IXZ5V@Z"@`HHHH`*0TM(:`&6W_'M%_N#^525';?\`'M%_N#^524`%%%%`
M!4-QPJX_OK_,5-4-S]U?]]?YB@"7TI",BG44`?,_C6S;1_&.HQ1#9MG\Z+''
MRL=P_6OHC1KU=1TFSO4(*SPK)Q[CFO(_CGIYBUFQOU7Y9XC$Q']Y3D?SKL/@
MY?\`VSP='"3E[21H[.=P_0X_"O3Q7[W#PJ'GX?]W7E`[P=*BG^]%_O_P!#
M4HZ5%/\`>B_W_P"AKS#T#`^(/AX^*O"=]HZ7`M6N=@$I7=MVNK?^RUX+K7/E1\8.TG:..W`Z5ZU\>Y;J'X6:T^G27$=WF$(;=RK_P"M3@$>
MV:\\^%&F_;O&MHQ4[+53,>.A'3]37HX#W(SJ>1P8OWI0@?0%C;):6<%O&/DA
M147Z`8J>@=**\YN^IW)65D%%%%`RKJW_`"#+O_KB_P#*J?A'_D4]%_Z\H/\`
MT6M7-6_Y!EW_`-<7_E5/PC_R*>B_]>4'_HM:`-:BBB@`HHHH`****`"BBB@`
MHHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`.>
M\&?\>VJ?]A.Z_P#1K5P'Q3\+ZRFLV>L:-J'C.YLY;DG4+'2=4\MD380GE1L0
MH&\#//(S7?\`@S_CVU3_`+"=U_Z-:N.^.FCR:]8Z186L]DUTTTC0V-Y,\,=P
MP3[VY0?F3[P!XX/<4`;/P@L]9L?"&S7VU-IVN9I(/[4N/.N1`6)C$K9(#!<9
M`[UOZWX6T'7;NWNM:T;3[^XM^(9;FW21HQG/!(..>>*P/A(3)X?O;A[NSN9K
MG4;B:7[%(9(8G9LM&KD#=MZ$@`$Y(KN10!Y9XJ\!>*=7\?:=XEM/$NFVW]F>
M37I^J:]I&DSPV^J:M8V4\P/E1W%PD;OSCY03D_A0
M!J45\^_%75KG0O'&E'3O$GBBWU*?5H4D-RS1Z2MNPR4Y41GCCC
%Q$
MNB,F;18E*KL/L>@SFNB7H.OXT`%%%%`!1110!#'_`*^;ZC^535#'_KYOJ/Y5
M-0`4444`%%%%`$47WI?]_P#H*EJ*+[TO^_\`T%2T`%%%%`!2/]QOH:6D?[C?
M0T`<[JGA^UU/7O#6K3W$D<^D/+)#&I&V0R0F-@>_`8GBNC'2N$\4:-?W_CCP
M%J%I`SV6FS737<@=1Y:O;LJ\$Y.6*]`:[L=!F@`HHHH`C;:>/6N;U;P7H>JZ
MPNJ7UDLMRHP
CZOX>^U
M^'8$@LC