For the three months ended | For the years ended December 31, | ||||||||||||||||||||||||||
GAAP | Non-GAAP Core | GAAP | Non-GAAP Core | ||||||||||||||||||||||||
4Q19 | 3Q19 | 4Q19 | 3Q19 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Diluted Earnings Per Common Share | $ | 1.48 | $ | 1.82 | $ | 1.59 | $ | 1.82 | $ | 6.92 | $ | 6.46 | $ | 7.01 | $ | 6.69 | |||||||||||
Return on Average Assets | 1.03 | % | 1.26 | % | 1.10 | % | 1.26 | % | 1.22 | % | 1.25 | % | 1.24 | % | 1.30 | % | |||||||||||
Return on Average Common Equity | 7.58 | % | 9.46 | % | 8.13 | % | 9.46 | % | 9.22 | % | 9.63 | % | 9.33 | % | 9.97 | % | |||||||||||
Return on Average Tangible Common Equity | N/A | N/A | 12.39 | % | 14.48 | % | N/A | N/A | 14.35 | % | 16.01 | % | |||||||||||||||
Efficiency Ratio | 61.8 | % | 55.2 | % | 58.0 | % | 55.2 | % | 55.8 | % | 62.0 | % | 55.0 | % | 55.9 | % | |||||||||||
Tangible Efficiency Ratio (TE) | N/A | N/A | 56.2 | % | 53.4 | % | N/A | N/A | 53.2 | % | 53.7 | % |
• | Total loan growth of $345.0 million on a linked quarter basis, or 6% annualized. Total loan growth on a year-to-date basis was $1.5 billion, or 7%. The Company continues to see good loan growth throughout its footprint. |
• | Total deposits increased $242.1 million compared to the prior quarter, or 4% annualized. Total deposit growth on a year-to-date basis was $1.5 billion, or 6%. In the fourth quarter, the Company paid off short-term borrowings of $275.0 million and reduced its balance of brokered deposits by $362.2 million. |
• | The investment portfolio decreased $306.8 million to $4.1 billion as a result of normal cash flow activity. At December 31, 2019, investment securities were 13% of total assets, down from 16% at December 31, 2018. |
• | Non-interest income decreased $4.3 million, or 7%, on a linked quarter basis. The decrease was primarily driven by a $2.1 million decrease in mortgage income and the third quarter $3.2 million gain on sale of non-mortgage loans. In the fourth quarter of 2019, the Company recorded $4.3 million in swap income, a record quarter. |
• | On a year-to-date basis, non-interest income was up $81.8 million, or 54%, primarily from lower losses on sales of securities during the year and a $16.6 million increase in mortgage income. |
• | The locked mortgage pipeline at January 21, 2020 was $214.4 million, up 53% from the similar period a year ago. The Company continues to see strength in its mortgage originations. |
• | Non-interest expense increased $9.1 million, or 5%, on a linked quarter basis, primarily as a result of a $9.9 million increase in professional services and a $3.7 million increase in salaries and employee benefits expense, partially offset by a $1.6 million decrease in credit and other loan-related expense. |
• | Non-interest expense included $16.5 million in merger-related expense, of which $11.3 million was considered non-core and $5.2 million core. Core merger-related expense included $2.5 million in benefits, $2.4 million in compensation, and $0.3 million in marketing. Total core non-interest expense decreased $2.3 million, or 1%, on a linked quarter basis. |
• | For the full-year 2019, non-interest expense decreased $40.1 million, or 6%, primarily as a result of branch closure and merger-related expense in 2018. On a core basis, non-interest expense was down $5.5 million, or 1%. |
• | The Company's reported and cash net interest margins were down 23 and 16 basis points from the prior quarter at 3.21% and 3.08%, respectively. For the full-year 2019, net interest margin was 3.45% on a reported basis, and 3.28% on a cash basis. |
• | Provision for credit losses totaled $8.2 million, compared to $9.0 million in the prior quarter. Asset quality measures remain strong and continue to improve. |
• | Net charge-offs to average loans on an annualized basis decreased three basis points to 0.11% compared to the prior quarter. Non-performing assets to total assets were 0.54% compared to 0.58% in the prior quarter. |
• | Capital ratios remain strong and grew during the quarter. There were no share repurchases in the fourth quarter of 2019 due to the pending merger with First Horizon National Corporation. |
• | The Company will adopt CECL as of January 1, 2020 and expects to have an allowance for expected credit losses to loans of 0.90% to 1.05%. The final CECL allowance coverage ratio will depend on finalization of the methods and assumptions (including economic forecasts) used to derive the estimate of expected credit losses. |
2019 Guidance | Actual | Results | |
Average Earning Assets | $28.7B ~ $29.0B | $28.8B | a |
Consolidated Loan Growth % | 6.50% ~ 7.25% | 6.67% | a |
Consolidated Deposit Growth % | 6.50% ~ 7.25% | 6.13% | r |
Provision Expense | $38MM ~ $43MM | $42MM | a |
Non-Interest Income (Non-GAAP Core) | $230MM ~ $235MM | $235MM | a |
Non-Interest Expense (Non-GAAP Core) | $667MM ~ $673MM | $674MM | r |
Net Interest Margin | 3.43% ~ 3.47% | 3.45% | a |
Tax Rate (Non-GAAP Core) | 23.5% ~ 24.0% | 23.7% | a |
Preferred Dividend and Unrestricted Shares | $16.0MM ~ $17.0MM | $16.2MM | a |
Share Repurchase Activity | $235MM ~ $240MM | $205MM | r |
Credit Quality | Stable | Improved | a |
• | Deposit Growth: Consolidated deposit growth was slightly under guidance due to a reduction in brokered deposit balances of $362.2 million during the fourth quarter of 2019. Excluding this reduction, deposit growth would have been above the 2019 guidance range. |
• | Core Non-Interest Expense: Slightly above the guidance range. However, excluding the $5.2 million of certain merger-related core expense, total core non-interest expense would have been at the bottom end of the guidance range. |
• | Share Repurchases: There were no share repurchases in the fourth quarter of 2019 due to the pending merger with First Horizon National Corporation. |
Table A - Summary Financial Results | ||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||
12/31/2019 | 9/30/2019 | % Change | 12/31/2018 | % Change | ||||||||||||||
GAAP BASIS: | ||||||||||||||||||
Income available to common shareholders | $ | 78,120 | $ | 96,251 | (18.8 | ) | $ | 129,090 | (39.5 | ) | ||||||||
Earnings per common share - diluted | 1.48 | 1.82 | (18.7 | ) | 2.32 | (36.2 | ) | |||||||||||
Average loans and leases, net of unearned income | $ | 23,830,962 | $ | 23,522,892 | 1.3 | $ | 22,364,188 | 6.6 | ||||||||||
Average total deposits | 25,227,462 | 24,588,346 | 2.6 | 23,484,576 | 7.4 | |||||||||||||
Net interest margin (TE) (1) | 3.21 | % | 3.44 | % | 3.81 | % | ||||||||||||
Total revenues | $ | 293,842 | $ | 313,007 | (6.1 | ) | $ | 265,990 | 10.5 | |||||||||
Total non-interest expense | 181,723 | 172,662 | 5.2 | 168,989 | 7.5 | |||||||||||||
Efficiency ratio | 61.8 | % | 55.2 | % | 63.5 | % | ||||||||||||
Return on average assets | 1.03 | 1.26 | 1.70 | |||||||||||||||
Return on average common equity | 7.58 | 9.46 | 13.38 | |||||||||||||||
NON-GAAP BASIS (2): | ||||||||||||||||||
Core revenues | $ | 293,828 | $ | 313,007 | (6.1 | ) | $ | 316,249 | (7.1 | ) | ||||||||
Core non-interest expense | 170,380 | 172,662 | (1.3 | ) | 166,379 | 2.4 | ||||||||||||
Core earnings per common share - diluted | 1.59 | 1.82 | (12.6 | ) | 1.86 | (14.5 | ) | |||||||||||
Core tangible efficiency ratio (TE) (1) (3) | 56.2 | % | 53.4 | % | 50.7 | % | ||||||||||||
Core return on average assets | 1.10 | 1.26 | 1.37 | |||||||||||||||
Core return on average common equity | 8.13 | 9.46 | 10.75 | |||||||||||||||
Core return on average tangible common equity | 12.39 | 14.48 | 16.98 | |||||||||||||||
Net interest margin (TE) - cash basis (1) | 3.08 | 3.24 | 3.52 | |||||||||||||||
(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21%. | ||||||||||||||||||
(2) See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations. | ||||||||||||||||||
(3) Tangible calculations eliminate the effect of goodwill and acquisition-related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable. |
Table B - Summary Financial Condition Results | ||||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
As of and For the Three Months Ended | ||||||||||||||||||||
12/31/2019 | 9/30/2019 | % Change | 12/31/2018 | % Change | ||||||||||||||||
PERIOD-END BALANCES: | ||||||||||||||||||||
Total loans and leases, net of unearned income | $ | 24,021,499 | $ | 23,676,537 | 1.5 | $ | 22,519,815 | 6.7 | ||||||||||||
Total deposits | 25,219,349 | 24,977,285 | 1.0 | 23,763,431 | 6.1 | |||||||||||||||
ASSET QUALITY RATIOS: | ||||||||||||||||||||
Loans 30-89 days past due and still accruing as a percentage of total loans (1) | 0.28 | % | 0.23 | % | 0.25 | % | ||||||||||||||
Loans 90 days or more past due and still accruing as a percentage of total loans (1) | 0.01 | 0.02 | 0.01 | |||||||||||||||||
Non-performing assets to total assets (1)(2) | 0.54 | 0.58 | 0.55 | |||||||||||||||||
Classified assets to total assets (3) | 0.84 | 0.89 | 0.98 | |||||||||||||||||
CAPITAL RATIOS: | ||||||||||||||||||||
Tangible common equity ratio (Non-GAAP) (4) (5) | 9.24 | % | 9.05 | % | 8.84 | % | ||||||||||||||
Tier 1 leverage ratio (6) | 9.90 | 9.78 | 9.63 | |||||||||||||||||
Total risk-based capital ratio (6) | 12.43 | 12.34 | 12.33 | |||||||||||||||||
PER COMMON SHARE DATA: | ||||||||||||||||||||
Book value | $ | 78.37 | $ | 77.58 | 1.0 | $ | 71.61 | 9.4 | ||||||||||||
Tangible book value (Non-GAAP) (4) (5) | 53.63 | 52.68 | 1.8 | 47.61 | 12.6 | |||||||||||||||
Closing stock price | 74.83 | 75.54 | (0.9 | ) | 64.28 | 16.4 | ||||||||||||||
Cash dividends | 0.45 | 0.45 | — | 0.41 | 9.8 | |||||||||||||||
(1) | Past due and non-accrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans. | |||||||||||||||||||
(2) | Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets. Refer to Table 5 for further detail. | |||||||||||||||||||
(3) | Classified assets include loans rated substandard or worse, non-performing mortgage and consumer loans, and OREO and foreclosed property and include acquired impaired loans accounted for under ASC 310-30. Classified assets were $265 million, $283 million and $302 million at December 31, 2019, September 30, 2019, and December 31, 2018, respectively. | |||||||||||||||||||
(4) | See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations. | |||||||||||||||||||
(5) | Tangible calculations eliminate the effect of goodwill and acquisition-related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable. | |||||||||||||||||||
(6) | Regulatory capital ratios as of December 31, 2019 are preliminary. |
Table C - Period-End Loans and Leases | |||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
As of and For the Three Months Ended | |||||||||||||||||||||||||||||
Linked Qtr Change | Year/Year Change | Mix | |||||||||||||||||||||||||||
12/31/2019 | 9/30/2019 | 12/31/2018 | $ | % | Annualized | $ | % | 12/31/2019 | 9/30/2019 | ||||||||||||||||||||
Commercial loans and leases | $ | 16,611,633 | $ | 16,299,881 | $ | 15,125,322 | 311,752 | 1.9 | 7.6 | % | 1,486,311 | 9.8 | 69.2 | % | 68.9 | % | |||||||||||||
Residential mortgage loans | 4,739,075 | 4,649,745 | 4,359,156 | 89,330 | 1.9 | 7.6 | % | 379,919 | 8.7 | 19.7 | % | 19.6 | % | ||||||||||||||||
Consumer and other loans | 2,670,791 | 2,726,911 | 3,035,337 | (56,120 | ) | (2.1 | ) | (8.2 | )% | (364,546 | ) | (12.0 | ) | 11.1 | % | 11.5 | % | ||||||||||||
Total loans and leases | $ | 24,021,499 | $ | 23,676,537 | $ | 22,519,815 | 344,962 | 1.5 | 5.8 | % | 1,501,684 | 6.7 | 100.0 | % | 100.0 | % |
Table D - Period-End Deposits | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Linked Qtr Change | Year/Year Change | Mix | ||||||||||||||||||||||||||
12/31/2019 | 9/30/2019 | 12/31/2018 | $ | % | Annualized | $ | % | 12/31/2019 | 9/30/2019 | |||||||||||||||||||
Non-interest-bearing | $ | 6,319,806 | $ | 6,518,783 | $ | 6,542,490 | (198,977 | ) | (3.1 | ) | (12.1 | )% | (222,684 | ) | (3.4 | ) | 25.1 | % | 26.1 | % | ||||||||
NOW accounts | 4,821,252 | 4,503,353 | 4,514,113 | 317,899 | 7.1 | 28.0 | % | 307,139 | 6.8 | 19.1 | % | 18.0 | % | |||||||||||||||
Money market accounts | 9,121,283 | 8,654,605 | 8,237,291 | 466,678 | 5.4 | 21.4 | % | 883,992 | 10.7 | 36.2 | % | 34.7 | % | |||||||||||||||
Savings accounts | 683,366 | 671,156 | 828,914 | 12,210 | 1.8 | 7.2 | % | (145,548 | ) | (17.6 | ) | 2.7 | % | 2.7 | % | |||||||||||||
Time deposits | 4,273,642 | 4,629,388 | 3,640,623 | (355,746 | ) | (7.7 | ) | (30.5 | )% | 633,019 | 17.4 | 16.9 | % | 18.5 | % | |||||||||||||
Total deposits | $ | 25,219,349 | $ | 24,977,285 | $ | 23,763,431 | 242,064 | 1.0 | 3.8 | % | 1,455,918 | 6.1 | 100.0 | % | 100.0 | % |
• | Bank of America Merrill Lynch |
• | Janney Montgomery Scott, LLC |
• | Hovde Group, LLC |
• | Jefferies & Co., Inc. |
• | Keefe, Bruyette & Woods, Inc. |
• | Raymond James & Associates, Inc. |
• | Piper Sandler |
• | Stephens, Inc. |
• | SunTrust Robinson-Humphrey |
Table 1 - IBERIABANK CORPORATION | |||||||||||||||||||||
FINANCIAL HIGHLIGHTS | |||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||
As of and For the Three Months Ended | |||||||||||||||||||||
INCOME DATA: | 12/31/2019 | 9/30/2019 | % Change | 12/31/2018 | % Change | ||||||||||||||||
Net interest income | $ | 234,490 | $ | 249,333 | (6.0 | ) | $ | 265,021 | (11.5 | ) | |||||||||||
Net interest income (TE) (1) | 235,858 | 250,653 | (5.9 | ) | 266,448 | (11.5 | ) | ||||||||||||||
Total revenues | 293,842 | 313,007 | (6.1 | ) | 265,990 | 10.5 | |||||||||||||||
Provision for credit losses | 8,153 | 8,986 | (9.3 | ) | 13,094 | (37.7 | ) | ||||||||||||||
Non-interest expense | 181,723 | 172,662 | 5.2 | 168,989 | 7.5 | ||||||||||||||||
Net income available to common shareholders | 78,120 | 96,251 | (18.8 | ) | 129,090 | (39.5 | ) | ||||||||||||||
PER COMMON SHARE DATA: | |||||||||||||||||||||
Earnings available to common shareholders - basic | $ | 1.49 | $ | 1.83 | (18.6 | ) | $ | 2.33 | (36.1 | ) | |||||||||||
Earnings available to common shareholders - diluted | 1.48 | 1.82 | (18.7 | ) | 2.32 | (36.2 | ) | ||||||||||||||
Core earnings (Non-GAAP) (2) | 1.59 | 1.82 | (12.6 | ) | 1.86 | (14.5 | ) | ||||||||||||||
Book value | 78.37 | 77.58 | 1.0 | 71.61 | 9.4 | ||||||||||||||||
Tangible book value (Non-GAAP) (2) (3) | 53.63 | 52.68 | 1.8 | 47.61 | 12.6 | ||||||||||||||||
Closing stock price | 74.83 | 75.54 | (0.9 | ) | 64.28 | 16.4 | |||||||||||||||
Cash dividends | 0.45 | 0.45 | — | 0.41 | 9.8 | ||||||||||||||||
KEY RATIOS AND OTHER DATA (6): | |||||||||||||||||||||
Net interest margin (TE) (1) | 3.21 | % | 3.44 | % | 3.81 | % | |||||||||||||||
Efficiency ratio | 61.8 | 55.2 | 63.5 | ||||||||||||||||||
Core tangible efficiency ratio (TE) (Non-GAAP) (1) (2) (3) | 56.2 | 53.4 | 50.7 | ||||||||||||||||||
Return on average assets | 1.03 | 1.26 | 1.70 | ||||||||||||||||||
Return on average common equity | 7.58 | 9.46 | 13.38 | ||||||||||||||||||
Core return on average tangible common equity (Non-GAAP) (2)(3) | 12.39 | 14.48 | 16.98 | ||||||||||||||||||
Effective tax rate | 20.6 | 24.0 | (55.0 | ) | |||||||||||||||||
Full-time equivalent employees | 3,401 | 3,397 | 3,403 | ||||||||||||||||||
CAPITAL RATIOS: | |||||||||||||||||||||
Tangible common equity ratio (Non-GAAP) (2) (3) | 9.24 | % | 9.05 | % | 8.84 | % | |||||||||||||||
Tangible common equity to risk-weighted assets (3) | 10.59 | 10.51 | 10.43 | ||||||||||||||||||
Tier 1 leverage ratio (4) | 9.90 | 9.78 | 9.63 | ||||||||||||||||||
Common equity Tier 1 (CET 1) ratio (4) | 10.52 | 10.41 | 10.72 | ||||||||||||||||||
Tier 1 capital ratio (4) | 11.38 | 11.28 | 11.25 | ||||||||||||||||||
Total risk-based capital ratio (4) | 12.43 | 12.34 | 12.33 | ||||||||||||||||||
Common stock dividend payout ratio | 30.2 | 24.4 | 17.8 | ||||||||||||||||||
Classified assets to Tier 1 capital (7) | 8.8 | 9.6 | 10.7 | ||||||||||||||||||
ASSET QUALITY RATIOS: | |||||||||||||||||||||
Non-performing assets to total assets (5) | 0.54 | % | 0.58 | % | 0.55 | % | |||||||||||||||
ALLL to total loans and leases | 0.61 | 0.62 | 0.62 | ||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.11 | 0.14 | 0.14 | ||||||||||||||||||
Non-performing assets to total loans and OREO (5) | 0.71 | 0.78 | 0.75 | ||||||||||||||||||
(1) | Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21%. | ||||||||||||||||||||
(2) | See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations. | ||||||||||||||||||||
(3) | Tangible calculations eliminate the effect of goodwill and acquisition-related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable. | ||||||||||||||||||||
(4) | Regulatory capital ratios as of December 31, 2019 are preliminary. | ||||||||||||||||||||
(5) | Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets. For purposes of this table, past due and non-accrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans. | ||||||||||||||||||||
(6) | All ratios are calculated on an annualized basis for the periods indicated. | ||||||||||||||||||||
(7) | Classified assets include loans rated substandard or worse, non-performing mortgage and consumer loans, and OREO and foreclosed property and include acquired impaired loans accounted for under ASC 310-30. |
Table 2 - IBERIABANK CORPORATION | |||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED INCOME STATEMENTS | |||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||
Linked Qtr Change | Year/Year Change | ||||||||||||||||||||||||||||
12/31/2019 | 9/30/2019 | $ | % | 6/30/2019 | 3/31/2019 | 12/31/2018 | $ | % | |||||||||||||||||||||
Interest income | $ | 314,779 | $ | 333,178 | (18,399 | ) | (5.5 | ) | $ | 335,967 | $ | 326,084 | $ | 330,196 | (15,417 | ) | (4.7 | ) | |||||||||||
Interest expense | 80,289 | 83,845 | (3,556 | ) | (4.2 | ) | 80,628 | 75,600 | 65,175 | 15,114 | 23.2 | ||||||||||||||||||
Net interest income | 234,490 | 249,333 | (14,843 | ) | (6.0 | ) | 255,339 | 250,484 | 265,021 | (30,531 | ) | (11.5 | ) | ||||||||||||||||
Provision for credit losses | 8,153 | 8,986 | (833 | ) | (9.3 | ) | 10,755 | 13,763 | 13,094 | (4,941 | ) | (37.7 | ) | ||||||||||||||||
Net interest income after provision for credit losses | 226,337 | 240,347 | (14,010 | ) | (5.8 | ) | 244,584 | 236,721 | 251,927 | (25,590 | ) | (10.2 | ) | ||||||||||||||||
Mortgage income | 15,305 | 17,432 | (2,127 | ) | (12.2 | ) | 18,444 | 11,849 | 10,379 | 4,926 | 47.5 | ||||||||||||||||||
Service charges on deposit accounts | 12,970 | 13,209 | (239 | ) | (1.8 | ) | 12,847 | 12,810 | 13,425 | (455 | ) | (3.4 | ) | ||||||||||||||||
Title revenue | 6,638 | 7,170 | (532 | ) | (7.4 | ) | 6,895 | 5,225 | 5,996 | 642 | 10.7 | ||||||||||||||||||
Broker commissions | 2,483 | 1,800 | 683 | 37.9 | 2,044 | 1,953 | 1,951 | 532 | 27.3 | ||||||||||||||||||||
ATM/debit card fee income | 3,309 | 2,948 | 361 | 12.2 | 3,032 | 2,582 | 2,267 | 1,042 | 46.0 | ||||||||||||||||||||
Income from bank owned life insurance | 1,887 | 1,760 | 127 | 7.2 | 1,750 | 1,797 | 2,023 | (136 | ) | (6.7 | ) | ||||||||||||||||||
Gain (loss) on sale of available-for-sale securities | 8 | 27 | (19 | ) | (70.4 | ) | (1,014 | ) | — | (49,844 | ) | 49,852 | NM | ||||||||||||||||
Trust department income | 4,222 | 4,281 | (59 | ) | (1.4 | ) | 4,388 | 4,167 | 4,319 | (97 | ) | (2.2 | ) | ||||||||||||||||
Other non-interest income | 12,530 | 15,047 | (2,517 | ) | (16.7 | ) | 10,439 | 12,126 | 10,453 | 2,077 | 19.9 | ||||||||||||||||||
Total non-interest income | 59,352 | 63,674 | (4,322 | ) | (6.8 | ) | 58,825 | 52,509 | 969 | 58,383 | NM | ||||||||||||||||||
Salaries and employee benefits | 106,941 | 103,257 | 3,684 | 3.6 | 103,375 | 98,296 | 101,551 | 5,390 | 5.3 | ||||||||||||||||||||
Occupancy and equipment | 20,894 | 21,316 | (422 | ) | (2.0 | ) | 18,999 | 18,564 | 18,379 | 2,515 | 13.7 | ||||||||||||||||||
Amortization of acquisition intangibles | 4,259 | 4,410 | (151 | ) | (3.4 | ) | 4,786 | 5,009 | 5,083 | (824 | ) | (16.2 | ) | ||||||||||||||||
Computer services expense | 9,930 | 9,638 | 292 | 3.0 | 9,383 | 9,157 | 8,942 | 988 | 11.0 | ||||||||||||||||||||
Professional services | 16,267 | 6,323 | 9,944 | 157.3 | 6,244 | 4,450 | 8,628 | 7,639 | 88.5 | ||||||||||||||||||||
Credit and other loan-related expense | 2,916 | 4,532 | (1,616 | ) | (35.7 | ) | 4,141 | 2,859 | 4,776 | (1,860 | ) | (38.9 | ) | ||||||||||||||||
Other non-interest expense | 20,516 | 23,186 | (2,670 | ) | (11.5 | ) | 22,690 | 20,418 | 21,630 | (1,114 | ) | (5.2 | ) | ||||||||||||||||
Total non-interest expense | 181,723 | 172,662 | 9,061 | 5.2 | 169,618 | 158,753 | 168,989 | 12,734 | 7.5 | ||||||||||||||||||||
Income before income taxes | 103,966 | 131,359 | (27,393 | ) | (20.9 | ) | 133,791 | 130,477 | 83,907 | 20,059 | 23.9 | ||||||||||||||||||
Income tax expense (benefit) | 21,390 | 31,509 | (10,119 | ) | (32.1 | ) | 32,193 | 30,346 | (46,132 | ) | 67,522 | 146.4 | |||||||||||||||||
Net income | 82,576 | 99,850 | (17,274 | ) | (17.3 | ) | 101,598 | 100,131 | 130,039 | (47,463 | ) | (36.5 | ) | ||||||||||||||||
Less: Preferred stock dividends | 4,456 | 3,599 | 857 | 23.8 | 949 | 3,598 | 949 | 3,507 | 369.5 | ||||||||||||||||||||
Net income available to common shareholders | $ | 78,120 | $ | 96,251 | (18,131 | ) | (18.8 | ) | $ | 100,649 | $ | 96,533 | $ | 129,090 | (50,970 | ) | (39.5 | ) | |||||||||||
Income available to common shareholders - basic | $ | 78,120 | $ | 96,251 | (18,131 | ) | (18.8 | ) | $ | 100,649 | $ | 96,533 | $ | 129,090 | (50,970 | ) | (39.5 | ) | |||||||||||
Less: Earnings allocated to unvested restricted stock | 752 | 874 | (122 | ) | (14.0 | ) | 999 | 933 | 1,214 | (462 | ) | (38.1 | ) | ||||||||||||||||
Earnings allocated to common shareholders | $ | 77,368 | $ | 95,377 | (18,009 | ) | (18.9 | ) | $ | 99,650 | $ | 95,600 | $ | 127,876 | (50,508 | ) | (39.5 | ) | |||||||||||
Earnings per common share - basic | $ | 1.49 | $ | 1.83 | (0.34 | ) | (18.6 | ) | $ | 1.87 | $ | 1.76 | $ | 2.33 | (0.84 | ) | (36.1 | ) | |||||||||||
Earnings per common share - diluted | 1.48 | 1.82 | (0.34 | ) | (18.7 | ) | 1.86 | 1.75 | 2.32 | (0.84 | ) | (36.2 | ) | ||||||||||||||||
Impact of non-core items (Non-GAAP) (1) | 0.11 | — | 0.11 | 100.0 | 0.01 | (0.03 | ) | (0.46 | ) | 0.57 | 123.9 | ||||||||||||||||||
Earnings per share - diluted, excluding non-core items (Non-GAAP)(1) | $ | 1.59 | $ | 1.82 | (0.23 | ) | (12.6 | ) | $ | 1.87 | $ | 1.72 | $ | 1.86 | (0.27 | ) | (14.5 | ) | |||||||||||
NUMBER OF COMMON SHARES OUTSTANDING (in thousands) | |||||||||||||||||||||||||||||
Weighted average common shares outstanding - basic | 51,835 | 51,984 | (149 | ) | (0.3 | ) | 53,345 | 54,177 | 54,892 | (3,057 | ) | (5.6 | ) | ||||||||||||||||
Weighted average common shares outstanding - diluted | 52,142 | 52,292 | (150 | ) | (0.3 | ) | 53,674 | 54,539 | 55,215 | (3,073 | ) | (5.6 | ) | ||||||||||||||||
Book value shares (period end) | 52,420 | 52,266 | 154 | 0.3 | 52,805 | 54,551 | 54,796 | (2,376 | ) | (4.3 | ) | ||||||||||||||||||
(1) See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations. | |||||||||||||||||||||||||||||
NM - not meaningful |
Table 3 - IBERIABANK CORPORATION | ||||||||||||
CONDENSED CONSOLIDATED INCOME STATEMENTS | ||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||
For the Years Ended | ||||||||||||
Change | ||||||||||||
12/31/2019 | 12/31/2018 | $ | % | |||||||||
Interest income | $ | 1,310,008 | $ | 1,221,629 | 88,379 | 7.2 | ||||||
Interest expense | 320,362 | 208,381 | 111,981 | 53.7 | ||||||||
Net interest income | 989,646 | 1,013,248 | (23,602 | ) | (2.3 | ) | ||||||
Provision for credit losses | 41,657 | 40,385 | 1,272 | 3.1 | ||||||||
Net interest income after provision for credit losses | 947,989 | 972,863 | (24,874 | ) | (2.6 | ) | ||||||
Mortgage income | 63,030 | 46,424 | 16,606 | 35.8 | ||||||||
Service charges on deposit accounts | 51,836 | 52,803 | (967 | ) | (1.8 | ) | ||||||
Title revenue | 25,928 | 24,149 | 1,779 | 7.4 | ||||||||
Broker commissions | 8,280 | 9,195 | (915 | ) | (10.0 | ) | ||||||
ATM/debit card fee income | 11,871 | 10,295 | 1,576 | 15.3 | ||||||||
Income from bank owned life insurance | 7,194 | 6,310 | 884 | 14.0 | ||||||||
Loss on sale of available-for-sale securities | (979 | ) | (49,900 | ) | 48,921 | NM | ||||||
Trust department income | 17,058 | 15,981 | 1,077 | 6.7 | ||||||||
Other non-interest income | 50,142 | 37,305 | 12,837 | 34.4 | ||||||||
Total non-interest income | 234,360 | 152,562 | 81,798 | 53.6 | ||||||||
Salaries and employee benefits | 411,869 | 414,741 | (2,872 | ) | (0.7 | ) | ||||||
Occupancy and equipment | 79,773 | 77,246 | 2,527 | 3.3 | ||||||||
Amortization of acquisition intangibles | 18,464 | 21,678 | (3,214 | ) | (14.8 | ) | ||||||
Computer services expense | 38,108 | 39,680 | (1,572 | ) | (4.0 | ) | ||||||
Professional services | 33,284 | 28,698 | 4,586 | 16.0 | ||||||||
Credit and other loan-related expense | 14,448 | 19,088 | (4,640 | ) | (24.3 | ) | ||||||
Other non-interest expense | 86,810 | 121,767 | (34,957 | ) | (28.7 | ) | ||||||
Total non-interest expense | 682,756 | 722,898 | (40,142 | ) | (5.6 | ) | ||||||
Income before income taxes | 499,593 | 402,527 | 97,066 | 24.1 | ||||||||
Income tax expense | 115,438 | 32,278 | 83,160 | 257.6 | ||||||||
Net income | 384,155 | 370,249 | 13,906 | 3.8 | ||||||||
Less: Preferred stock dividends | 12,602 | 9,095 | 3,507 | 38.6 | ||||||||
Net income available to common shareholders | $ | 371,553 | $ | 361,154 | 10,399 | 2.9 | ||||||
Income available to common shareholders - basic | $ | 371,553 | $ | 361,154 | 10,399 | 2.9 | ||||||
Less: Earnings allocated to unvested restricted stock | 3,559 | 3,583 | (24 | ) | (0.7 | ) | ||||||
Earnings allocated to common shareholders | $ | 367,994 | $ | 357,571 | 10,423 | 2.9 | ||||||
Earnings per common share - basic | $ | 6.97 | $ | 6.50 | 0.47 | 7.2 | ||||||
Earnings per common share - diluted | 6.92 | 6.46 | 0.46 | 7.1 | ||||||||
Impact of non-core items (Non-GAAP) (1) | 0.09 | 0.23 | (0.14 | ) | (60.9 | ) | ||||||
Earnings per share - diluted, excluding non-core items (Non-GAAP) (1) | $ | 7.01 | $ | 6.69 | 0.32 | 4.8 | ||||||
NUMBER OF COMMON SHARES OUTSTANDING (in thousands) | ||||||||||||
Weighted average common shares outstanding - basic | 52,826 | 55,008 | (2,182 | ) | (4.0 | ) | ||||||
Weighted average common shares outstanding - diluted | 53,153 | 55,360 | (2,207 | ) | (4.0 | ) | ||||||
Book value shares (period end) | 52,420 | 54,796 | (2,376 | ) | (4.3 | ) | ||||||
(1) See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations. | ||||||||||||
NM - not meaningful |
TABLE 4 - IBERIABANK CORPORATION | |||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
PERIOD-END BALANCES | Linked Qtr Change | Year/Year Change | |||||||||||||||||||||||||||||
ASSETS | 12/31/2019 | 9/30/2019 | $ | % | 6/30/2019 | 3/31/2019 | 12/31/2018 | $ | % | ||||||||||||||||||||||
Cash and due from banks | $ | 289,794 | $ | 353,346 | (63,552 | ) | (18.0 | ) | $ | 289,502 | $ | 280,680 | $ | 294,186 | (4,392 | ) | (1.5 | ) | |||||||||||||
Interest-bearing deposits in other banks | 604,929 | 577,587 | 27,342 | 4.7 | 499,813 | 391,217 | 396,267 | 208,662 | 52.7 | ||||||||||||||||||||||
Total cash and cash equivalents | 894,723 | 930,933 | (36,210 | ) | (3.9 | ) | 789,315 | 671,897 | 690,453 | 204,270 | 29.6 | ||||||||||||||||||||
Investment securities available for sale | 3,933,360 | 4,238,082 | (304,722 | ) | (7.2 | ) | 4,455,308 | 4,873,778 | 4,783,579 | (850,219 | ) | (17.8 | ) | ||||||||||||||||||
Investment securities held to maturity | 182,961 | 185,007 | (2,046 | ) | (1.1 | ) | 192,917 | 198,958 | 207,446 | (24,485 | ) | (11.8 | ) | ||||||||||||||||||
Total investment securities | 4,116,321 | 4,423,089 | (306,768 | ) | (6.9 | ) | 4,648,225 | 5,072,736 | 4,991,025 | (874,704 | ) | (17.5 | ) | ||||||||||||||||||
Mortgage loans held for sale | 213,357 | 255,276 | (41,919 | ) | (16.4 | ) | 187,987 | 128,451 | 107,734 | 105,623 | 98.0 | ||||||||||||||||||||
Loans and leases, net of unearned income | 24,021,499 | 23,676,537 | 344,962 | 1.5 | 23,355,311 | 22,968,295 | 22,519,815 | 1,501,684 | 6.7 | ||||||||||||||||||||||
Allowance for loan and lease losses | (146,588 | ) | (146,235 | ) | 353 | 0.2 | (146,386 | ) | (142,966 | ) | (140,571 | ) | 6,017 | 4.3 | |||||||||||||||||
Loans and leases, net | 23,874,911 | 23,530,302 | 344,609 | 1.5 | 23,208,925 | 22,825,329 | 22,379,244 | 1,495,667 | 6.7 | ||||||||||||||||||||||
Premises and equipment, net | 296,688 | 298,309 | (1,621 | ) | (0.5 | ) | 295,897 | 297,342 | 300,507 | (3,819 | ) | (1.3 | ) | ||||||||||||||||||
Goodwill and other intangible assets | 1,312,701 | 1,314,676 | (1,975 | ) | (0.2 | ) | 1,317,151 | 1,319,992 | 1,324,269 | (11,568 | ) | (0.9 | ) | ||||||||||||||||||
Other assets | 1,004,749 | 982,013 | 22,736 | 2.3 | 999,032 | 944,442 | 1,039,783 | (35,034 | ) | (3.4 | ) | ||||||||||||||||||||
Total assets | $ | 31,713,450 | $ | 31,734,598 | (21,148 | ) | (0.1 | ) | $ | 31,446,532 | $ | 31,260,189 | $ | 30,833,015 | 880,435 | 2.9 | |||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||
Non-interest-bearing deposits | $ | 6,319,806 | $ | 6,518,783 | (198,977 | ) | (3.1 | ) | $ | 6,474,394 | $ | 6,448,613 | $ | 6,542,490 | (222,684 | ) | (3.4 | ) | |||||||||||||
NOW accounts | 4,821,252 | 4,503,353 | 317,899 | 7.1 | 4,610,577 | 4,452,966 | 4,514,113 | 307,139 | 6.8 | ||||||||||||||||||||||
Savings and money market accounts | 9,804,649 | 9,325,761 | 478,888 | 5.1 | 8,895,463 | 9,119,263 | 9,066,205 | 738,444 | 8.1 | ||||||||||||||||||||||
Time deposits | 4,273,642 | 4,629,388 | (355,746 | ) | (7.7 | ) | 4,314,897 | 4,071,220 | 3,640,623 | 633,019 | 17.4 | ||||||||||||||||||||
Total deposits | 25,219,349 | 24,977,285 | 242,064 | 1.0 | 24,295,331 | 24,092,062 | 23,763,431 | 1,455,918 | 6.1 | ||||||||||||||||||||||
Short-term borrowings | — | 275,000 | (275,000 | ) | (100.0 | ) | 813,000 | 845,000 | 1,167,000 | (1,167,000 | ) | (100.0 | ) | ||||||||||||||||||
Securities sold under agreements to repurchase | 204,208 | 223,049 | (18,841 | ) | (8.4 | ) | 184,507 | 261,131 | 315,882 | (111,674 | ) | (35.4 | ) | ||||||||||||||||||
Trust preferred securities | 120,110 | 120,110 | — | — | 120,110 | 120,110 | 120,110 | — | — | ||||||||||||||||||||||
Other long-term debt | 1,223,577 | 1,274,092 | (50,515 | ) | (4.0 | ) | 1,254,649 | 1,355,345 | 1,046,041 | 177,536 | 17.0 | ||||||||||||||||||||
Other liabilities | 609,472 | 581,762 | 27,710 | 4.8 | 540,935 | 444,710 | 364,274 | 245,198 | 67.3 | ||||||||||||||||||||||
Total liabilities | 27,376,716 | 27,451,298 | (74,582 | ) | (0.3 | ) | 27,208,532 | 27,118,358 | 26,776,738 | 599,978 | 2.2 | ||||||||||||||||||||
Total shareholders' equity | 4,336,734 | 4,283,300 | 53,434 | 1.2 | 4,238,000 | 4,141,831 | 4,056,277 | 280,457 | 6.9 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 31,713,450 | $ | 31,734,598 | (21,148 | ) | (0.1 | ) | $ | 31,446,532 | $ | 31,260,189 | $ | 30,833,015 | 880,435 | 2.9 |
TABLE 4 Continued - IBERIABANK CORPORATION | |||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
AVERAGE BALANCES | Linked Qtr Change | Year/Year Change | |||||||||||||||||||||||||||||
ASSETS | 12/31/2019 | 9/30/2019 | $ | % | 6/30/2019 | 3/31/2019 | 12/31/2018 | $ | % | ||||||||||||||||||||||
Cash and due from banks | $ | 294,487 | $ | 272,273 | 22,214 | 8.2 | $ | 275,917 | $ | 291,659 | $ | 281,509 | 12,978 | 4.6 | |||||||||||||||||
Interest-bearing deposits in other banks | 756,223 | 531,665 | 224,558 | 42.2 | 436,948 | 332,638 | 385,619 | 370,604 | 96.1 | ||||||||||||||||||||||
Total cash and cash equivalents | 1,050,710 | 803,938 | 246,772 | 30.7 | 712,865 | 624,297 | 667,128 | 383,582 | 57.5 | ||||||||||||||||||||||
Investment securities available for sale | 4,095,950 | 4,365,558 | (269,608 | ) | (6.2 | ) | 4,650,757 | 4,816,855 | 4,567,564 | (471,614 | ) | (10.3 | ) | ||||||||||||||||||
Investment securities held to maturity | 184,272 | 189,400 | (5,128 | ) | (2.7 | ) | 195,639 | 202,601 | 211,333 | (27,061 | ) | (12.8 | ) | ||||||||||||||||||
Total investment securities | 4,280,222 | 4,554,958 | (274,736 | ) | (6.0 | ) | 4,846,396 | 5,019,456 | 4,778,897 | (498,675 | ) | (10.4 | ) | ||||||||||||||||||
Mortgage loans held for sale | 239,346 | 209,778 | 29,568 | 14.1 | 159,931 | 95,588 | 63,033 | 176,313 | 279.7 | ||||||||||||||||||||||
Loans and leases, net of unearned income | 23,830,962 | 23,522,892 | 308,070 | 1.3 | 23,120,689 | 22,599,686 | 22,364,188 | 1,466,774 | 6.6 | ||||||||||||||||||||||
Allowance for loan and lease losses | (147,641 | ) | (148,203 | ) | 562 | (0.4 | ) | (145,854 | ) | (140,915 | ) | (138,675 | ) | (8,966 | ) | 6.5 | |||||||||||||||
Loans and leases, net | 23,683,321 | 23,374,689 | 308,632 | 1.3 | 22,974,835 | 22,458,771 | 22,225,513 | 1,457,808 | 6.6 | ||||||||||||||||||||||
Premises and equipment, net | 299,607 | 298,055 | 1,552 | 0.5 | 298,119 | 299,741 | 302,956 | (3,349 | ) | (1.1 | ) | ||||||||||||||||||||
Goodwill and other intangible assets | 1,313,169 | 1,315,359 | (2,190 | ) | (0.2 | ) | 1,318,182 | 1,322,288 | 1,318,200 | (5,031 | ) | (0.4 | ) | ||||||||||||||||||
Other assets | 971,873 | 997,514 | (25,641 | ) | (2.6 | ) | 961,494 | 1,013,359 | 977,740 | (5,867 | ) | (0.6 | ) | ||||||||||||||||||
Total assets | $ | 31,838,248 | $ | 31,554,291 | 283,957 | 0.9 | $ | 31,271,822 | $ | 30,833,500 | $ | 30,333,467 | 1,504,781 | 5.0 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||
Non-interest-bearing deposits | $ | 6,501,529 | $ | 6,425,026 | 76,503 | 1.2 | $ | 6,442,217 | $ | 6,271,313 | $ | 6,646,071 | (144,542 | ) | (2.2 | ) | |||||||||||||||
NOW accounts | 4,526,694 | 4,451,579 | 75,115 | 1.7 | 4,488,691 | 4,458,634 | 4,212,304 | 314,390 | 7.5 | ||||||||||||||||||||||
Savings and money market accounts | 9,708,541 | 9,188,186 | 520,355 | 5.7 | 9,014,822 | 9,089,099 | 9,169,184 | 539,357 | 5.9 | ||||||||||||||||||||||
Time deposits | 4,490,698 | 4,523,555 | (32,857 | ) | (0.7 | ) | 4,156,974 | 3,859,354 | 3,457,017 | 1,033,681 | 29.9 | ||||||||||||||||||||
Total deposits | 25,227,462 | 24,588,346 | 639,116 | 2.6 | 24,102,704 | 23,678,400 | 23,484,576 | 1,742,886 | 7.4 | ||||||||||||||||||||||
Short-term borrowings | 118,557 | 606,739 | (488,182 | ) | (80.5 | ) | 782,516 | 859,576 | 602,593 | (484,036 | ) | (80.3 | ) | ||||||||||||||||||
Securities sold under agreements to repurchase | 207,478 | 187,305 | 20,173 | 10.8 | 214,090 | 291,643 | 386,563 | (179,085 | ) | (46.3 | ) | ||||||||||||||||||||
Trust preferred securities | 120,110 | 120,110 | — | — | 120,110 | 120,110 | 120,110 | — | — | ||||||||||||||||||||||
Other long-term debt | 1,265,077 | 1,240,382 | 24,695 | 2.0 | 1,345,575 | 1,343,752 | 1,308,086 | (43,009 | ) | (3.3 | ) | ||||||||||||||||||||
Other liabilities | 582,643 | 545,838 | 36,805 | 6.7 | 463,803 | 434,516 | 470,501 | 112,142 | 23.8 | ||||||||||||||||||||||
Total liabilities | 27,521,327 | 27,288,720 | 232,607 | 0.9 | 27,028,798 | 26,727,997 | 26,372,429 | 1,148,898 | 4.4 | ||||||||||||||||||||||
Total shareholders' equity | 4,316,921 | 4,265,571 | 51,350 | 1.2 | 4,243,024 | 4,105,503 | 3,961,038 | 355,883 | 9.0 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 31,838,248 | $ | 31,554,291 | 283,957 | 0.9 | $ | 31,271,822 | $ | 30,833,500 | $ | 30,333,467 | 1,504,781 | 5.0 |
Table 5 - IBERIABANK CORPORATION | |||||||||||||||||||||||||||||||
LOANS AND ASSET QUALITY DATA | |||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
Linked Qtr Change | Year/Year Change | ||||||||||||||||||||||||||||||
LOANS | 12/31/2019 | 9/30/2019 | $ | % | 6/30/2019 | 3/31/2019 | 12/31/2018 | $ | % | ||||||||||||||||||||||
Commercial loans and leases: | |||||||||||||||||||||||||||||||
Real estate- construction | $ | 1,321,663 | $ | 1,330,014 | (8,351 | ) | (0.6 | ) | $ | 1,342,984 | $ | 1,219,647 | $ | 1,196,366 | 125,297 | 10.5 | |||||||||||||||
Real estate- owner-occupied (1) | 2,475,326 | 2,468,061 | 7,265 | 0.3 | 2,373,143 | 2,408,079 | 2,395,822 | 79,504 | 3.3 | ||||||||||||||||||||||
Real estate- non-owner occupied | 6,267,106 | 6,011,681 | 255,425 | 4.2 | 6,102,143 | 6,147,864 | 5,796,117 | 470,989 | 8.1 | ||||||||||||||||||||||
Commercial and industrial (6) | 6,547,538 | 6,490,125 | 57,413 | 0.9 | 6,161,759 | 5,852,568 | 5,737,017 | 810,521 | 14.1 | ||||||||||||||||||||||
Total commercial loans and leases | 16,611,633 | 16,299,881 | 311,752 | 1.9 | 15,980,029 | 15,628,158 | 15,125,322 | 1,486,311 | 9.8 | ||||||||||||||||||||||
Residential mortgage loans | 4,739,075 | 4,649,745 | 89,330 | 1.9 | 4,538,194 | 4,415,267 | 4,359,156 | 379,919 | 8.7 | ||||||||||||||||||||||
Consumer and other loans: | |||||||||||||||||||||||||||||||
Home equity | 1,987,336 | 2,053,588 | (66,252 | ) | (3.2 | ) | 2,147,897 | 2,220,648 | 2,304,694 | (317,358 | ) | (13.8 | ) | ||||||||||||||||||
Other | 683,455 | 673,323 | 10,132 | 1.5 | 689,191 | 704,222 | 730,643 | (47,188 | ) | (6.5 | ) | ||||||||||||||||||||
Total consumer and other loans | 2,670,791 | 2,726,911 | (56,120 | ) | (2.1 | ) | 2,837,088 | 2,924,870 | 3,035,337 | (364,546 | ) | (12.0 | ) | ||||||||||||||||||
Total loans and leases | $ | 24,021,499 | $ | 23,676,537 | 344,962 | 1.5 | $ | 23,355,311 | $ | 22,968,295 | $ | 22,519,815 | 1,501,684 | 6.7 | |||||||||||||||||
Allowance for loan and lease losses (2) | $ | (146,588 | ) | $ | (146,235 | ) | 353 | 0.2 | $ | (146,386 | ) | $ | (142,966 | ) | $ | (140,571 | ) | 6,017 | 4.3 | ||||||||||||
Loans and leases, net | 23,874,911 | 23,530,302 | 344,609 | 1.5 | 23,208,925 | 22,825,329 | 22,379,244 | 1,495,667 | 6.7 | ||||||||||||||||||||||
Reserve for unfunded commitments | (16,637 | ) | (16,144 | ) | 493 | 3.1 | (15,281 | ) | (15,981 | ) | (14,830 | ) | 1,807 | 12.2 | |||||||||||||||||
Allowance for credit losses | (163,225 | ) | (162,379 | ) | 846 | 0.5 | (161,667 | ) | (158,947 | ) | (155,401 | ) | 7,824 | 5.0 | |||||||||||||||||
ASSET QUALITY DATA | |||||||||||||||||||||||||||||||
Non-accrual loans (3) | $ | 138,905 | $ | 153,113 | (14,208 | ) | (9.3 | ) | $ | 158,992 | $ | 148,056 | $ | 137,184 | 1,721 | 1.3 | |||||||||||||||
Other real estate owned and foreclosed assets | 27,985 | 27,075 | 910 | 3.4 | 28,106 | 30,606 | 30,394 | (2,409 | ) | (7.9 | ) | ||||||||||||||||||||
Accruing loans more than 90 days past due (3) | 3,257 | 4,790 | (1,533 | ) | (32.0 | ) | 851 | 4,111 | 2,128 | 1,129 | 53.1 | ||||||||||||||||||||
Total non-performing assets (3)(4) | $ | 170,147 | $ | 184,978 | (14,831 | ) | (8.0 | ) | $ | 187,949 | $ | 182,773 | $ | 169,706 | 441 | 0.3 | |||||||||||||||
Loans 30-89 days past due (3) | $ | 68,204 | $ | 54,618 | 13,586 | 24.9 | $ | 43,021 | $ | 45,334 | $ | 57,332 | 10,872 | 19.0 | |||||||||||||||||
Non-performing assets to total assets (3)(4) | 0.54 | % | 0.58 | % | 0.60 | % | 0.58 | % | 0.55 | % | |||||||||||||||||||||
Non-performing assets to total loans and OREO (3)(4) | 0.71 | 0.78 | 0.80 | 0.79 | 0.75 | ||||||||||||||||||||||||||
ALLL to non-performing loans (3)(5) | 103.1 | 92.6 | 91.6 | 94.0 | 100.9 | ||||||||||||||||||||||||||
ALLL to non-performing assets (3)(4) | 86.2 | 79.1 | 77.9 | 78.2 | 82.8 |
ALLL to total loans and leases | 0.61 | 0.62 | 0.63 | 0.62 | 0.62 | ||||||||||||||||||||||||||
Quarter-to-date charge-offs | $ | 8,398 | $ | 10,777 | (2,379 | ) | (22.1 | ) | $ | 10,275 | $ | 8,918 | $ | 10,806 | (2,408 | ) | (22.3 | ) | |||||||||||||
Quarter-to-date recoveries | (1,683 | ) | (2,336 | ) | (653 | ) | (28.0 | ) | (2,218 | ) | (1,586 | ) | (3,097 | ) | (1,414 | ) | (45.7 | ) | |||||||||||||
Quarter-to-date net charge-offs | $ | 6,715 | $ | 8,441 | (1,726 | ) | (20.4 | ) | $ | 8,057 | $ | 7,332 | $ | 7,709 | (994 | ) | (12.9 | ) | |||||||||||||
Net charge-offs to average loans (annualized) | 0.11 | % | 0.14 | % | 0.14 | % | 0.13 | % | 0.14 | % | |||||||||||||||||||||
(1) Real estate- owner-occupied is defined as loans with a "1E1" call report code (loans secured by owner-occupied non-farm non-residential properties). | |||||||||||||||||||||||||||||||
(2) The allowance for loan and lease losses includes impairment reserves attributable to acquired impaired loans. | |||||||||||||||||||||||||||||||
(3) For purposes of this table, past due and non-accrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans. | |||||||||||||||||||||||||||||||
(4) Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets. | |||||||||||||||||||||||||||||||
(5) Non-performing loans consist of non-accruing loans and accruing loans 90 days or more past due. | |||||||||||||||||||||||||||||||
(6) Includes equipment financing leases. |
TABLE 6 - IBERIABANK CORPORATION | |||||||||||||||||||
QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||
12/31/2019 | 9/30/2019 | Basis Point Change | |||||||||||||||||
ASSETS | Average Balance | Interest Income/Expense | Yield/Rate (TE)(1) | Average Balance | Interest Income/Expense | Yield/Rate (TE)(1) | Yield/Rate (TE)(1) | ||||||||||||
Earning assets: | |||||||||||||||||||
Commercial loans and leases | $ | 16,441,658 | $ | 195,487 | 4.74 | % | $ | 16,155,962 | $ | 205,350 | 5.06 | % | (32) | ||||||
Residential mortgage loans | 4,706,745 | 50,879 | 4.32 | 4,588,549 | 50,939 | 4.44 | (12) | ||||||||||||
Consumer and other loans | 2,682,559 | 36,198 | 5.35 | 2,778,381 | 40,501 | 5.78 | (43) | ||||||||||||
Total loans and leases | 23,830,962 | 282,564 | 4.73 | 23,522,892 | 296,790 | 5.03 | (30) | ||||||||||||
Mortgage loans held for sale | 239,346 | 2,132 | 3.56 | 209,778 | 1,936 | 3.69 | (13) | ||||||||||||
Investment securities (2) | 4,218,720 | 25,926 | 2.51 | 4,493,789 | 29,932 | 2.71 | (20) | ||||||||||||
Other earning assets | 937,076 | 4,157 | 1.76 | 733,305 | 4,520 | 2.44 | (68) | ||||||||||||
Total earning assets | 29,226,104 | 314,779 | 4.30 | 28,959,764 | 333,178 | 4.59 | (29) | ||||||||||||
Allowance for loan and lease losses | (147,641 | ) | (148,203) | ||||||||||||||||
Non-earning assets | 2,759,785 | 2,742,730 | |||||||||||||||||
Total assets | $ | 31,838,248 | $ | 31,554,291 | |||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
NOW accounts | $ | 4,526,694 | $ | 10,091 | 0.88 | % | $ | 4,451,579 | $ | 11,305 | 1.01 | % | (13) | ||||||
Savings and money market accounts | 9,708,541 | 34,422 | 1.41 | 9,188,186 | 32,959 | 1.42 | (1) | ||||||||||||
Time deposits | 4,490,698 | 25,860 | 2.28 | 4,523,555 | 26,489 | 2.32 | (4) | ||||||||||||
Total interest-bearing deposits (3) | 18,725,933 | 70,373 | 1.49 | 18,163,320 | 70,753 | 1.55 | (6) | ||||||||||||
Short-term borrowings | 326,035 | 946 | 1.15 | 794,044 | 3,880 | 1.94 | (79) | ||||||||||||
Long-term debt | 1,385,187 | 8,970 | 2.57 | 1,360,492 | 9,212 | 2.69 | (12) | ||||||||||||
Total interest-bearing liabilities | 20,437,155 | 80,289 | 1.56 | 20,317,856 | 83,845 | 1.64 | (8) | ||||||||||||
Non-interest-bearing deposits | 6,501,529 | 6,425,026 | |||||||||||||||||
Non-interest-bearing liabilities | 582,643 | 545,838 | |||||||||||||||||
Total liabilities | 27,521,327 | 27,288,720 | |||||||||||||||||
Total shareholders' equity | 4,316,921 | 4,265,571 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 31,838,248 | $ | 31,554,291 | |||||||||||||||
Net interest income/Net interest spread | $ | 234,490 | 2.74 | % | $ | 249,333 | 2.95 | % | (21) | ||||||||||
Taxable equivalent benefit | 1,368 | 0.02 | 1,320 | 0.02 | — | ||||||||||||||
Net interest income (TE)/Net interest margin (TE) (1) | $ | 235,858 | 3.21 | % | $ | 250,653 | 3.44 | % | (23) | ||||||||||
(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21%. | |||||||||||||||||||
(2) Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting. | |||||||||||||||||||
(3) Total deposit costs for the three months ended December 31, 2019 and September 30, 2019 were 1.11% and 1.14%, respectively. |
TABLE 6 Continued - IBERIABANK CORPORATION | ||||||||||||||||||||||||||
QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||
6/30/2019 | 3/31/2019 | 12/31/2018 | ||||||||||||||||||||||||
ASSETS | Average Balance | Interest Income/Expense | Yield/Rate (TE)(1) | Average Balance | Interest Income/Expense | Yield/Rate (TE)(1) | Average Balance | Interest Income/Expense | Yield/Rate (TE)(1) | |||||||||||||||||
Earning assets: | ||||||||||||||||||||||||||
Commercial loans and leases | $ | 15,766,423 | $ | 205,093 | 5.24 | % | $ | 15,253,655 | $ | 194,510 | 5.19 | % | $ | 14,978,169 | $ | 196,881 | 5.24 | % | ||||||||
Residential mortgage loans | 4,482,150 | 49,388 | 4.41 | 4,385,634 | 47,829 | 4.36 | 4,345,811 | 53,836 | 4.96 | |||||||||||||||||
Consumer and other loans | 2,872,116 | 42,205 | 5.89 | 2,960,397 | 42,540 | 5.83 | 3,040,208 | 44,275 | 5.78 | |||||||||||||||||
Total loans and leases | 23,120,689 | 296,686 | 5.16 | 22,599,686 | 284,879 | 5.11 | 22,364,188 | 294,992 | 5.26 | |||||||||||||||||
Mortgage loans held for sale | 159,931 | 1,588 | 3.97 | 95,588 | 1,054 | 4.41 | 63,033 | 721 | 4.58 | |||||||||||||||||
Investment securities (2) | 4,853,858 | 33,803 | 2.83 | 5,052,922 | 36,125 | 2.90 | 4,782,844 | 30,559 | 2.61 | |||||||||||||||||
Other earning assets | 639,232 | 3,890 | 2.44 | 533,745 | 4,026 | 3.06 | 581,673 | 3,924 | 2.68 | |||||||||||||||||
Total earning assets | 28,773,710 | 335,967 | 4.70 | 28,281,941 | 326,084 | 4.68 | 27,791,738 | 330,196 | 4.74 | |||||||||||||||||
Allowance for loan and lease losses | (145,854) | (140,915) | (138,675) | |||||||||||||||||||||||
Non-earning assets | 2,643,966 | 2,692,474 | 2,680,404 | |||||||||||||||||||||||
Total assets | $ | 31,271,822 | $ | 30,833,500 | $ | 30,333,467 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||
NOW accounts | $ | 4,488,691 | $ | 11,623 | 1.04 | % | $ | 4,458,634 | $ | 11,396 | 1.04 | % | $ | 4,212,304 | $ | 9,420 | 0.89 | % | ||||||||
Savings and money market accounts | 9,014,822 | 30,845 | 1.37 | 9,089,099 | 28,762 | 1.28 | 9,169,184 | 26,062 | 1.13 | |||||||||||||||||
Time deposits | 4,156,974 | 23,398 | 2.26 | 3,859,354 | 20,077 | 2.11 | 3,457,017 | 16,666 | 1.91 | |||||||||||||||||
Total interest-bearing deposits (3) | 17,660,487 | 65,866 | 1.50 | 17,407,087 | 60,235 | 1.40 | 16,838,505 | 52,148 | 1.23 | |||||||||||||||||
Short-term borrowings | 996,606 | 5,197 | 2.09 | 1,151,219 | 5,716 | 2.01 | 989,156 | 4,104 | 1.65 | |||||||||||||||||
Long-term debt | 1,465,685 | 9,565 | 2.62 | 1,463,862 | 9,649 | 2.67 | 1,428,196 | 8,923 | 2.48 | |||||||||||||||||
Total interest-bearing liabilities | 20,122,778 | 80,628 | 1.61 | 20,022,168 | 75,600 | 1.53 | 19,255,857 | 65,175 | 1.34 | |||||||||||||||||
Non-interest-bearing deposits | 6,442,217 | 6,271,313 | 6,646,071 | |||||||||||||||||||||||
Non-interest-bearing liabilities | 463,803 | 434,516 | 470,501 | |||||||||||||||||||||||
Total liabilities | 27,028,798 | 26,727,997 | 26,372,429 | |||||||||||||||||||||||
Total shareholders' equity | 4,243,024 | 4,105,503 | 3,961,038 | |||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 31,271,822 | $ | 30,833,500 | $ | 30,333,467 | ||||||||||||||||||||
Net interest income/Net interest spread | $ | 255,339 | 3.09 | % | $ | 250,484 | 3.15 | % | $ | 265,021 | 3.40 | % | ||||||||||||||
Taxable equivalent benefit | 1,338 | 0.02 | 1,349 | 0.02 | 1,427 | 0.02 | ||||||||||||||||||||
Net interest income (TE)/Net interest margin (TE) (1) | $ | 256,677 | 3.57 | % | $ | 251,833 | 3.59 | % | $ | 266,448 | 3.81 | % | ||||||||||||||
(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21%. | ||||||||||||||||||||||||||
(2) Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting. | ||||||||||||||||||||||||||
(3) Total deposit costs for the three months ended June 30, 2019, March 31, 2019, and December 31, 2018, were 1.10%, 1.03% and 0.88%, respectively. |
TABLE 7 - IBERIABANK CORPORATION | |||||||||||||||||||
YEAR-TO-DATE AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
For the Years Ended | |||||||||||||||||||
12/31/2019 | 12/31/2018 | Basis Point Change | |||||||||||||||||
ASSETS | Average Balance | Interest Income/Expense | Yield/Rate (TE)(1) | Average Balance | Interest Income/Expense | Yield/Rate (TE)(1) | Yield/Rate (TE)(1) | ||||||||||||
Earning assets: | |||||||||||||||||||
Commercial loans and leases | $ | 15,908,368 | $ | 800,440 | 5.05 | % | $ | 14,633,814 | $ | 731,385 | 5.02 | % | 3 | ||||||
Residential mortgage loans | 4,541,780 | 199,035 | 4.38 | 3,946,390 | 183,690 | 4.65 | (27) | ||||||||||||
Consumer and other loans | 2,822,479 | 161,444 | 5.72 | 3,061,891 | 171,587 | 5.60 | 12 | ||||||||||||
Total loans and leases | 23,272,627 | 1,160,919 | 5.00 | 21,642,095 | 1,086,662 | 5.04 | (4) | ||||||||||||
Mortgage loans held for sale | 176,647 | 6,710 | 3.80 | 83,087 | 3,748 | 4.51 | (71) | ||||||||||||
Investment securities (2) | 4,652,096 | 125,786 | 2.75 | 4,900,457 | 117,771 | 2.46 | 29 | ||||||||||||
Other earning assets | 712,006 | 16,593 | 2.33 | 573,949 | 13,448 | 2.34 | (1) | ||||||||||||
Total earning assets | 28,813,376 | 1,310,008 | 4.57 | 27,199,588 | 1,221,629 | 4.51 | 6 | ||||||||||||
Allowance for loan and lease losses | (145,679 | ) | (141,880) | ||||||||||||||||
Non-earning assets | 2,710,171 | 2,520,318 | |||||||||||||||||
Total assets | $ | 31,377,868 | $ | 29,578,026 | |||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
NOW accounts | $ | 4,481,504 | $ | 44,415 | 0.99 | % | $ | 4,341,041 | $ | 33,962 | 0.78 | % | 21 | ||||||
Savings and money market accounts | 9,251,689 | 126,988 | 1.37 | 9,056,182 | 82,151 | 0.91 | 46 | ||||||||||||
Time deposits | 4,260,104 | 95,824 | 2.25 | 2,920,817 | 44,839 | 1.54 | 71 | ||||||||||||
Total interest-bearing deposits (3) | 17,993,297 | 267,227 | 1.49 | 16,318,040 | 160,952 | 0.99 | 50 | ||||||||||||
Short-term borrowings | 814,653 | 15,739 | 1.93 | 1,052,088 | 14,682 | 1.40 | 53 | ||||||||||||
Long-term debt | 1,418,431 | 37,396 | 2.64 | 1,392,148 | 32,747 | 2.35 | 29 | ||||||||||||
Total interest-bearing liabilities | 20,226,381 | 320,362 | 1.58 | 18,762,276 | 208,381 | 1.11 | 47 | ||||||||||||
Non-interest-bearing deposits | 6,410,693 | 6,602,434 | |||||||||||||||||
Non-interest-bearing liabilities | 507,213 | 330,588 | |||||||||||||||||
Total liabilities | 27,144,287 | 25,695,298 | |||||||||||||||||
Total shareholders' equity | 4,233,581 | 3,882,728 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 31,377,868 | $ | 29,578,026 | |||||||||||||||
Net interest income/Net interest spread | $ | 989,646 | 2.99 | % | $ | 1,013,248 | 3.40 | % | (41) | ||||||||||
Tax-equivalent benefit | 5,517 | 0.02 | 5,760 | 0.02 | — | ||||||||||||||
Net interest income (TE)/Net interest margin (TE) (1) | $ | 995,163 | 3.45 | % | $ | 1,019,008 | 3.75 | % | (30) | ||||||||||
(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21%. | |||||||||||||||||||
(2) Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting. | |||||||||||||||||||
(3) Total deposit costs for the years ended December 31, 2019 and 2018 were 1.10% and 0.70%, respectively. |
Table 8 - IBERIABANK CORPORATION | ||||||||||||||||||||||||||||||||||||||||||||
LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 9/30/2019 | 6/30/2019 | 3/31/2019 | 12/31/2018 | ||||||||||||||||||||||||||||||||||||||||
AS REPORTED (US GAAP) | Income | Average Balance | Yield | Income | Average Balance | Yield | Income | Average Balance | Yield | Income | Average Balance | Yield | Income | Average Balance | Yield | |||||||||||||||||||||||||||||
Legacy loans and leases, net | $ | 225 | $ | 19,374 | 4.60 | % | $ | 229 | $ | 18,721 | 4.86 | % | $ | 225 | $ | 17,984 | 5.00 | % | $ | 213 | $ | 17,192 | 5.02 | % | $ | 209 | $ | 16,616 | 4.99 | % | ||||||||||||||
Acquired loans | 58 | 4,457 | 5.18 | 68 | 4,802 | 5.62 | 72 | 5,137 | 5.64 | 72 | 5,408 | 5.35 | 86 | 5,748 | 5.97 | |||||||||||||||||||||||||||||
Total loans and leases | $ | 283 | $ | 23,831 | 4.71 | % | $ | 297 | $ | 23,523 | 5.01 | % | $ | 297 | $ | 23,121 | 5.14 | % | $ | 285 | $ | 22,600 | 5.10 | % | $ | 295 | $ | 22,364 | 5.24 | % | ||||||||||||||
12/31/2019 | 9/30/2019 | 6/30/2019 | 3/31/2019 | 12/31/2018 | ||||||||||||||||||||||||||||||||||||||||
ADJUSTMENTS | Income | Average Balance | Yield | Income | Average Balance | Yield | Income | Average Balance | Yield | Income | Average Balance | Yield | Income | Average Balance | Yield | |||||||||||||||||||||||||||||
Legacy loans and leases, net | $ | — | $ | — | — | % | $ | — | $ | — | — | % | $ | — | $ | — | — | % | $ | — | $ | — | — | % | $ | — | $ | — | — | % | ||||||||||||||
Acquired loans | (9 | ) | 97 | (0.90 | ) | (14 | ) | 111 | (1.24 | ) | (14 | ) | 124 | (1.15 | ) | (11 | ) | 136 | (0.92 | ) | (19 | ) | 144 | (1.46 | ) | |||||||||||||||||||
Total loans and leases | $ | (9 | ) | $ | 97 | (0.17 | )% | $ | (14 | ) | $ | 111 | (0.25 | )% | $ | (14 | ) | $ | 124 | (0.25 | )% | $ | (11 | ) | $ | 136 | (0.22 | )% | $ | (19 | ) | $ | 144 | (0.38 | )% | |||||||||
12/31/2019 | 9/30/2019 | 6/30/2019 | 3/31/2019 | 12/31/2018 | ||||||||||||||||||||||||||||||||||||||||
AS ADJUSTED (CASH YIELD, NON-GAAP) | Income | Average Balance | Yield | Income | Average Balance | Yield | Income | Average Balance | Yield | Income | Average Balance | Yield | Income | Average Balance | Yield | |||||||||||||||||||||||||||||
Legacy loans and leases, net | $ | 225 | $ | 19,374 | 4.60 | % | $ | 229 | $ | 18,721 | 4.86 | % | $ | 225 | $ | 17,984 | 5.00 | % | $ | 213 | $ | 17,192 | 5.02 | % | $ | 209 | $ | 16,616 | 4.99 | % | ||||||||||||||
Acquired loans | 49 | 4,554 | 4.28 | 54 | 4,913 | 4.38 | 58 | 5,261 | 4.49 | 61 | 5,544 | 4.43 | 67 | 5,892 | 4.51 | |||||||||||||||||||||||||||||
Total loans and leases | $ | 274 | $ | 23,928 | 4.54 | % | $ | 283 | $ | 23,634 | 4.76 | % | $ | 283 | $ | 23,245 | 4.89 | % | $ | 274 | $ | 22,736 | 4.88 | % | $ | 276 | $ | 22,508 | 4.86 | % |
Table 9 - IBERIABANK CORPORATION | |||||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||||
12/31/2019 | 9/30/2019 | 6/30/2019 | |||||||||||||||||||||||||||||||||
Pre-tax | After-tax | Per share(2) | Pre-tax | After-tax | Per share(2) | Pre-tax | After-tax | Per share(2) | |||||||||||||||||||||||||||
Net income | $ | 103,966 | $ | 82,576 | $ | 1.57 | $ | 131,359 | $ | 99,850 | $ | 1.89 | $ | 133,791 | $ | 101,598 | $ | 1.88 | |||||||||||||||||
Less: Preferred stock dividends | — | 4,456 | 0.09 | — | 3,599 | 0.07 | — | 949 | 0.02 | ||||||||||||||||||||||||||
Income available to common shareholders (GAAP) | $ | 103,966 | $ | 78,120 | $ | 1.48 | $ | 131,359 | $ | 96,251 | $ | 1.82 | $ | 133,791 | $ | 100,649 | $ | 1.86 | |||||||||||||||||
Non-interest income adjustments (1)(3): | |||||||||||||||||||||||||||||||||||
(Gain) loss on sale of investments | (14 | ) | (11 | ) | — | — | — | — | 1,012 | 769 | 0.01 | ||||||||||||||||||||||||
Non-interest expense adjustments (1)(3): | |||||||||||||||||||||||||||||||||||
Merger-related expense | 11,321 | 10,828 | 0.21 | — | — | — | (10 | ) | (7 | ) | — | ||||||||||||||||||||||||
Impairment of long-lived assets, net of (gain) loss on sale | 30 | 23 | — | — | — | — | (22 | ) | (17 | ) | — | ||||||||||||||||||||||||
Other non-core non-interest expense | (8 | ) | (6 | ) | — | — | — | — | 107 | 81 | — | ||||||||||||||||||||||||
Total non-interest expense adjustments | 11,343 | 10,845 | 0.21 | — | — | — | 75 | 57 | — | ||||||||||||||||||||||||||
Income tax benefit - other | — | (5,209 | ) | (0.10 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||
Core earnings (Non-GAAP) | 115,295 | 83,745 | 1.59 | 131,359 | 96,251 | 1.82 | 134,878 | 101,475 | 1.87 | ||||||||||||||||||||||||||
Provision for credit losses(1) | 8,153 | 6,196 | 8,986 | 6,829 | 10,755 | 8,174 | |||||||||||||||||||||||||||||
Pre-provision earnings, as adjusted (Non-GAAP) (3) | $ | 123,448 | $ | 89,941 | $ | 140,345 | $ | 103,080 | $ | 145,633 | $ | 109,649 | |||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||||
3/31/2019 | 12/31/2018 | ||||||||||||||||||||||||||||||||||
Pre-tax | After-tax | Per share(2) | Pre-tax | After-tax | Per share(2) | ||||||||||||||||||||||||||||||
Net income | $ | 130,477 | $ | 100,131 | $ | 1.82 | $ | 83,907 | $ | 130,039 | $ | 2.34 | |||||||||||||||||||||||
Less: Preferred stock dividends | — | 3,598 | 0.07 | — | 949 | 0.02 | |||||||||||||||||||||||||||||
Income available to common shareholders (GAAP) | $ | 130,477 | $ | 96,533 | $ | 1.75 | $ | 83,907 | $ | 129,090 | $ | 2.32 | |||||||||||||||||||||||
Non-interest income adjustments (1)(3): | |||||||||||||||||||||||||||||||||||
(Gain) loss on sale of investments | — | — | — | 49,844 | 37,882 | 0.68 | |||||||||||||||||||||||||||||
Other non-core non-interest income | — | — | — | 415 | 316 | — | |||||||||||||||||||||||||||||
Total non-interest income adjustments | — | — | — | 50,259 | 38,198 | 0.68 | |||||||||||||||||||||||||||||
Non-interest expense adjustments (1)(3): | |||||||||||||||||||||||||||||||||||
Merger-related expense | (334 | ) | (254 | ) | — | (238 | ) | (353 | ) | — | |||||||||||||||||||||||||
Compensation-related expense | (9 | ) | (7 | ) | — | 184 | 140 | — |
Impairment of long-lived assets, net of (gain) loss on sale | 986 | 749 | 0.01 | 64 | 49 | — | |||||||||||||||||||||||||||||
Other non-core non-interest expense | (3,129 | ) | (2,378 | ) | (0.04 | ) | 2,600 | 1,976 | 0.04 | ||||||||||||||||||||||||||
Total non-interest expense adjustments | (2,486 | ) | (1,890 | ) | (0.03 | ) | 2,610 | 1,812 | 0.04 | ||||||||||||||||||||||||||
Income tax benefit - impact of the Tax Cuts and Jobs Act | — | — | — | — | (65,317 | ) | (1.18 | ) | |||||||||||||||||||||||||||
Core earnings (Non-GAAP) | 127,991 | 94,643 | 1.72 | 136,776 | 103,783 | 1.86 | |||||||||||||||||||||||||||||
Provision for credit losses (1) | 13,763 | 10,460 | 13,094 | 9,951 | |||||||||||||||||||||||||||||||
Pre-provision earnings, as adjusted (Non-GAAP) (3) | $ | 141,754 | $ | 105,103 | $ | 149,870 | $ | 113,734 | |||||||||||||||||||||||||||
(1) Excluding preferred stock dividends and merger-related expense, after-tax amounts are calculated using a tax rate of 24%, which approximates the marginal tax rate. | |||||||||||||||||||||||||||||||||||
(2) Diluted per share amounts may not appear to foot due to rounding. | |||||||||||||||||||||||||||||||||||
(3) Adjustments to GAAP results include certain significant activities or transactions that, in management's opinion, can distort period-to-period comparisons of the Company's performance. These adjustments include, but are not limited to, realized gains or losses on the sale of investment securities, merger-related expenses, realized or unrealized gains or losses on former bank-owned real estate, and gains, losses, and impairment charges on long-lived assets. |
For the Year Ended | |||||||||||||||||||||||
12/31/2019 | 12/31/2018 | ||||||||||||||||||||||
Pre-tax | After-tax | Per share (2) | Pre-tax | After-tax | Per share (2) | ||||||||||||||||||
Net income | $ | 499,593 | $ | 384,155 | $ | 7.16 | $ | 402,527 | $ | 370,249 | $ | 6.63 | |||||||||||
Less: Preferred stock dividends | — | 12,602 | 0.24 | — | 9,095 | 0.17 | |||||||||||||||||
Income available to common shareholders (GAAP) | $ | 499,593 | $ | 371,553 | $ | 6.92 | $ | 402,527 | $ | 361,154 | $ | 6.46 | |||||||||||
Non-interest income adjustments (1)(3): | |||||||||||||||||||||||
Loss on sale of investments | 998 | 758 | 0.01 | 49,899 | 37,923 | 0.68 | |||||||||||||||||
Other non-core non-interest income | — | — | — | 415 | 316 | — | |||||||||||||||||
Total non-interest income adjustments | 998 | 758 | 0.01 | 50,314 | 38,239 | 0.68 | |||||||||||||||||
Non-interest expense adjustments (1)(3): | |||||||||||||||||||||||
Merger-related expense | 10,977 | 10,567 | 0.20 | 31,295 | 23,919 | 0.44 | |||||||||||||||||
Compensation-related expense | (9 | ) | (7 | ) | — | 4,290 | 3,261 | 0.05 | |||||||||||||||
Impairment of long-lived assets, net of (gain) loss on sale | 994 | 755 | 0.01 | 10,837 | 8,236 | 0.15 | |||||||||||||||||
Gain on early termination of loss share agreements | — | — | — | (2,708 | ) | (2,058 | ) | (0.04 | ) | ||||||||||||||
Other non-core non-interest expense | (3,030 | ) | (2,303 | ) | (0.04 | ) | (133 | ) | (102 | ) | 0.01 | ||||||||||||
Total non-interest expense adjustments | 8,932 | 9,012 | 0.17 | 43,581 | 33,256 | 0.61 | |||||||||||||||||
Income tax benefit - impact of the Tax Cuts and Jobs Act | — | — | — | — | (58,745 | ) | (1.06 | ) | |||||||||||||||
Income tax expense (benefit) - other | — | (5,209 | ) | (0.09 | ) | — | 173 | — | |||||||||||||||
Core earnings (Non-GAAP) | 509,523 | 376,114 | 7.01 | 496,422 | 374,077 | 6.69 | |||||||||||||||||
Provision for credit losses (1) | 41,657 | 31,659 | 40,385 | 30,692 | |||||||||||||||||||
Pre-provision earnings, as adjusted (Non-GAAP) (3) | $ | 551,180 | $ | 407,773 | $ | 536,807 | $ | 404,769 | |||||||||||||||
(1) Excluding preferred stock dividends and merger-related expense, after-tax amounts are calculated using a tax rate of 24% , which approximates the marginal tax rate. | |||||||||||||||||||||||
(2) Diluted per share amounts may not appear to foot due to rounding. | |||||||||||||||||||||||
(3) Adjustments to GAAP results include certain significant activities or transactions that, in management's opinion, can distort period-to-period comparisons of the Company's performance. These adjustments include, but are not limited to, realized gains or losses on the sale of investment securities, merger-related expenses, realized and unrealized gains or losses on former bank-owned real estate, and gains, losses, and impairment charges on long-lived assets. |
Table 10 - IBERIABANK CORPORATION | |||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||
12/31/2019 | 9/30/2019 | 6/30/2019 | 3/31/2019 | 12/31/2018 | |||||||||||||||
Net interest income (GAAP) | $ | 234,490 | $ | 249,333 | $ | 255,339 | $ | 250,484 | $ | 265,021 | |||||||||
Taxable equivalent benefit | 1,368 | 1,320 | 1,338 | 1,349 | 1,427 | ||||||||||||||
Net interest income (TE) (Non-GAAP) (1) | 235,858 | 250,653 | 256,677 | 251,833 | 266,448 | ||||||||||||||
Non-interest income (GAAP) | 59,352 | 63,674 | 58,825 | 52,509 | 969 | ||||||||||||||
Taxable equivalent benefit | 502 | 468 | 465 | 478 | 539 | ||||||||||||||
Non-interest income (TE) (Non-GAAP) (1) | 59,854 | 64,142 | 59,290 | 52,987 | 1,508 | ||||||||||||||
Taxable equivalent revenues (Non-GAAP) (1) | 295,712 | 314,795 | 315,967 | 304,820 | 267,956 | ||||||||||||||
Securities (gains) losses and other non-interest income | (14 | ) | — | 1,012 | — | 50,259 | |||||||||||||
Core taxable equivalent revenues (Non-GAAP) (1) | $ | 295,698 | $ | 314,795 | $ | 316,979 | $ | 304,820 | $ | 318,215 | |||||||||
Total non-interest expense (GAAP) | $ | 181,723 | $ | 172,662 | $ | 169,618 | $ | 158,753 | $ | 168,989 | |||||||||
Less: Intangible amortization expense | 4,259 | 4,410 | 4,786 | 5,009 | 5,083 | ||||||||||||||
Tangible non-interest expense (Non-GAAP) (2) | 177,464 | 168,252 | 164,832 | 153,744 | 163,906 | ||||||||||||||
Less: Merger-related expense | 11,321 | — | (10 | ) | (334 | ) | (238 | ) | |||||||||||
Compensation-related expense | — | — | — | (9 | ) | 184 | |||||||||||||
Impairment of long-lived assets, net of (gain) loss on sale | 30 | — | (22 | ) | 986 | 64 | |||||||||||||
Other non-core non-interest expense | (8 | ) | — | 107 | (3,129 | ) | 2,600 | ||||||||||||
Core tangible non-interest expense (Non-GAAP) (2) | $ | 166,121 | $ | 168,252 | $ | 164,757 | $ | 156,230 | $ | 161,296 | |||||||||
Return on average assets (GAAP) | 1.03 | % | 1.26 | % | 1.30 | % | 1.32 | % | 1.70 | % | |||||||||
Effect of non-core revenues and expenses | 0.07 | — | 0.01 | (0.03 | ) | (0.33 | ) | ||||||||||||
Core return on average assets (Non-GAAP) | 1.10 | % | 1.26 | % | 1.31 | % | 1.29 | % | 1.37 | % | |||||||||
Efficiency ratio (GAAP) | 61.8 | % | 55.2 | % | 54.0 | % | 52.4 | % | 63.5 | % | |||||||||
Effect of tax benefit related to tax-exempt income | (0.3 | ) | (0.3 | ) | (0.3 | ) | (0.3 | ) | (0.4 | ) | |||||||||
Efficiency ratio (TE) (Non-GAAP) (1) | 61.5 | % | 54.9 | % | 53.7 | % | 52.1 | % | 63.1 | % | |||||||||
Effect of amortization of intangibles | (1.5 | ) | (1.5 | ) | (1.5 | ) | (1.6 | ) | (1.9 | ) | |||||||||
Effect of non-core items | (3.8 | ) | — | (0.2 | ) | 0.8 | (10.5 | ) | |||||||||||
Core tangible efficiency ratio (TE) (Non-GAAP) (1) (2) | 56.2 | % | 53.4 | % | 52.0 | % | 51.3 | % | 50.7 | % | |||||||||
Return on average common equity (GAAP) | 7.58 | % | 9.46 | % | 10.05 | % | 9.85 | % | 13.38 | % | |||||||||
Effect of non-core revenues and expenses | 0.55 | — | 0.08 | (0.19 | ) | (2.63 | ) | ||||||||||||
Core return on average common equity (Non-GAAP) | 8.13 | % | 9.46 | % | 10.13 | % | 9.66 | % | 10.75 | % | |||||||||
Effect of intangibles (2) | 4.26 | 5.02 | 5.45 | 5.37 | 6.23 | ||||||||||||||
Core return on average tangible common equity (Non-GAAP)(2) | 12.39 | % | 14.48 | % | 15.58 | % | 15.03 | % | 16.98 | % | |||||||||
Total shareholders' equity (GAAP) | $ | 4,336,734 | $ | 4,283,300 | $ | 4,238,000 | $ | 4,141,831 | $ | 4,056,277 | |||||||||
Less: Goodwill and other intangibles | 1,297,095 | 1,301,348 | 1,305,752 | 1,310,458 | 1,315,462 | ||||||||||||||
Preferred stock | 228,485 | 228,485 | 228,485 | 132,097 | 132,097 | ||||||||||||||
Tangible common equity (Non-GAAP) (2) | $ | 2,811,154 | $ | 2,753,467 | $ | 2,703,763 | $ | 2,699,276 | $ | 2,608,718 | |||||||||
Total assets (GAAP) | $ | 31,713,450 | $ | 31,734,598 | $ | 31,446,532 | $ | 31,260,189 | $ | 30,833,015 | |||||||||
Less: Goodwill and other intangibles | 1,297,095 | 1,301,348 | 1,305,752 | 1,310,458 | 1,315,462 | ||||||||||||||
Tangible assets (Non-GAAP) (2) | $ | 30,416,355 | $ | 30,433,250 | $ | 30,140,780 | $ | 29,949,731 | $ | 29,517,553 | |||||||||
Tangible common equity ratio (Non-GAAP) (2) | 9.24 | % | 9.05 | % | 8.97 | % | 9.01 | % | 8.84 | % | |||||||||
(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21%. | |||||||||||||||||||
(2) Tangible calculations eliminate the effect of goodwill and acquisition-related intangibles and the corresponding amortization expense on a tax-effected basis where applicable. |
For the Years Ended | |||||||
12/31/2019 | 12/31/2018 | ||||||
Net interest income (GAAP) | $ | 989,646 | $ | 1,013,248 | |||
Taxable equivalent benefit | 5,375 | 5,760 | |||||
Net interest income (TE) (Non-GAAP) (1) | 995,021 | 1,019,008 | |||||
Non-interest income (GAAP) | 234,360 | 152,562 | |||||
Taxable equivalent benefit | 1,913 | 1,677 | |||||
Non-interest income (TE) (Non-GAAP) (1) | 236,273 | 154,239 | |||||
Taxable equivalent revenues (Non-GAAP) (1) | 1,231,294 | 1,173,247 | |||||
Securities losses and other non-interest income | 998 | 50,314 | |||||
Core taxable equivalent revenues (Non-GAAP) (1) | $ | 1,232,292 | $ | 1,223,561 | |||
Total non-interest expense (GAAP) | $ | 682,756 | $ | 722,898 | |||
Less: Intangible amortization expense | 18,464 | 21,678 | |||||
Tangible non-interest expense (Non-GAAP) (2) | 664,292 | 701,220 | |||||
Less: Merger-related expense | 10,977 | 31,295 | |||||
Compensation-related expense | (9 | ) | 4,290 | ||||
Impairment of long-lived assets, net of (gain) loss on sale | 994 | 10,837 | |||||
Gain on early termination of loss share agreements | — | (2,708 | ) | ||||
Other non-core non-interest expense | (3,030 | ) | (133 | ) | |||
Core tangible non-interest expense (Non-GAAP) (2) | $ | 655,360 | $ | 657,639 | |||
Return on average assets (GAAP) | 1.22 | % | 1.25 | % | |||
Effect of non-core revenues and expenses | 0.02 | 0.05 | |||||
Core return on average assets (Non-GAAP) | 1.24 | % | 1.30 | % | |||
Efficiency ratio (GAAP) | 55.8 | % | 62.0 | % | |||
Effect of tax benefit related to tax-exempt income | (0.3 | ) | (0.4 | ) | |||
Efficiency ratio (TE) (Non-GAAP) (1) | 55.5 | % | 61.6 | % | |||
Effect of amortization of intangibles | (1.5 | ) | (1.9 | ) | |||
Effect of non-core items | (0.8 | ) | (6.0 | ) | |||
Core tangible efficiency ratio (TE) (Non-GAAP) (1) (2) | 53.2 | % | 53.7 | % | |||
Return on average common equity (GAAP) | 9.22 | % | 9.63 | % | |||
Effect of non-core revenues and expenses | 0.11 | 0.34 | |||||
Core return on average common equity (Non-GAAP) | 9.33 | % | 9.97 | % | |||
Effect of intangibles (2) | 5.02 | 6.04 | |||||
Core return on average tangible common equity (Non-GAAP) (2) | 14.35 | % | 16.01 | % | |||
Total shareholders' equity (GAAP) | $ | 4,336,734 | $ | 4,056,277 | |||
Less: Goodwill and other intangibles | 1,297,095 | 1,315,462 | |||||
Preferred stock | 228,485 | 132,097 | |||||
Tangible common equity (Non-GAAP) (2) | $ | 2,811,154 | $ | 2,608,718 | |||
Total assets (GAAP) | $ | 31,713,450 | $ | 30,833,015 | |||
Less: Goodwill and other intangibles | 1,297,095 | 1,315,462 | |||||
Tangible assets (Non-GAAP) (2) | $ | 30,416,355 | $ | 29,517,553 | |||
Tangible common equity ratio (Non-GAAP) (2) | 9.24 | % | 8.84 | % | |||
(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21%. | |||||||
(2) Tangible calculations eliminate the effect of goodwill and acquisition-related intangibles and the corresponding amortization expense on a tax-effected basis where applicable. |