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IBERIABANK Corporation Reports Second Quarter Results



            IBERIABANK Corporation Reports Second Quarter Results

PR Newswire

LAFAYETTE, La., July 23, 2013

LAFAYETTE, La., July 23, 2013 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ:
IBKC), holding company of the 126-year-old IBERIABANK (www.iberiabank.com),
reported operating results for the second quarter ended June 30, 2013.  For
the quarter, the Company reported income available to common shareholders of
$16 million, or $0.53 fully diluted earnings per share.  The Company incurred
costs to implement previously disclosed earnings improvement initiatives in
the second quarter of 2013 equal to $0.16 per share on an after-tax basis.  In
addition, as announced on April 15, 2013, the results for the second quarter
of 2013 were materially affected by increased costs related to the adoption of
a new accounting standard ($0.11 per share after-tax).  The negative impact of
these items on the second quarter of 2013 totaled $7 million on a pre-tax
basis, or $0.27 per share on an after-tax basis.  Excluding those items, EPS
in the second quarter of 2013 was $0.80 per share on a non-GAAP operating
basis excluding the adoption of the new accounting standard (refer to press
release supplemental table).

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

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

  o The net interest margin improved 16 basis points on a linked quarter basis
    to 3.39%. The primary drivers of the margin improvement were yield
    stability in the investment securities portfolio and loans net of the loss
    share receivable combined with an improved earning asset mix and a five
    basis point reduction in the cost of interest bearing deposits. Management
    stated continued comfort with the previously disclosed net interest margin
    guidance range of 3.30% to 3.35% through the fourth quarter of 2013.
  o The Company's profitability improvement initiatives are currently expected
    to achieve aggregate annual run-rate benefits of approximately $21
    million, of which 92% are targeted expense reductions. In the second
    quarter of 2013, implementation costs were $7 million, approximately $4
    million greater than initially projected, due primarily to higher branch
    closing costs than initially forecasted.  Implementation costs for the
    remainder of 2013 are projected to total less than $1 million, with
    approximately $9 million in aggregate pre-tax earnings improvements in the
    second half of 2013.  Full run-rate benefits are expected to be achieved
    by the first quarter of 2014, resulting in approximately $21 million of
    annual pre-tax earnings improvements in 2014 and beyond.
  o Gross loan growth was $394 million, or 5%, between quarter-ends (21%
    annualized rate), excluding loans and other assets covered under FDIC loss
    share agreements ("Covered Assets").
  o Total deposits decreased $45 million, or less than 1%, between
    quarter-ends.  Noninterest bearing deposits increased $84 million, or 4%
    (17% annualized rate), and time deposits decreased $110 million, or 5%,
    over the period.
  o The Company's legacy asset quality continued to be strong in the second
    quarter of 2013.  Nonperforming assets ("NPAs"), excluding Covered Assets
    and impaired loans acquired in acquisitions, equated to 0.86% of total
    assets at June 30, 2013, compared to 0.83% at March 31, 2013.  On that
    basis, loans past due 30 days or more equated to 1.18% of total loans at
    June 30, 2013, compared to 1.13% at March 31, 2013.  Classified assets
    excluding Covered Assets decreased $30 million, or 14%, during the second
    quarter, and decreased from 1.84% of total assets at March 31, 2013, to
    1.59% at June 30, 2013.
  o The Company recorded a $2 million loan loss provision in the second
    quarter of 2013, compared to a $3 million negative loan loss provision in
    the first quarter of 2013.  The provision increase was driven primarily by
    solid loan growth.  Net charge-offs totaled $1.1 million in the second
    quarter of 2013, or an annualized 0.05% of average loans, compared to
    0.06% of average loans in the first quarter of 2013, and 0.07% of average
    loans over the past six quarters.
  o Capital ratios remained strong. At June 30, 2013, the Company's tangible
    common equity ratio was 8.69%, tier 1 common ratio was 11.08%, and total
    risk based capital ratio was 13.45%.

Table A - Summary Financial Results

                         For the Quarter Ended:
Selected Financial Data  6/30/2012   3/31/2013         6/30/2013   % Change
Net Income ($ in         $           $                 $           2074%
thousands)                   12,560      717               15,590
Per Share Data:
                         $           $                 $          
Fully Diluted Earnings                  0.02                       2011%
                          0.43                          0.53
Operating Earnings       0.54        0.86              0.80        -7%
(Non-GAAP) ^(1)
Pre-provision Operating  0.73        0.66              0.73        10%
Earnings  (Non-GAAP)
Tangible Book Value      37.28       36.93             36.30       -2%
                         As of and for the Quarter Ended:          Basis Point
Key Ratios               6/30/2012   3/31/2013         6/30/2013   Change
Return on Average Assets 0.43%       0.02%             0.49%       47      bps
Return on Average Common 3.36%       0.19%             4.09%       390     bps
Equity
Return on Average
Tangible Common Equity   4.86%       0.55%             5.96%       541     bps
(Non-GAAP)
Net Interest Margin (TE) 3.59%       3.23%             3.39%       16      bps
^(2)
Tangible Efficiency
Ratio (TE)               78.2%       102.4%            81.9%       (2,051) bps
^(2)(Non-GAAP)
Tangible Common Equity   9.37%       8.75%             8.69%       (6)     bps
Ratio (Non-GAAP)
Tier 1 Leverage Ratio    10.42%      9.37%             9.59%       22      bps
Tier 1 Common Ratio      12.97%      11.39%            11.08%      (31)    bps
(Non-GAAP)
Total Risk Based Capital 15.54%      13.80%            13.45%      (35)    bps
Ratio
Net Charge-Offs to       0.07%       0.06%             0.05%       (1)     bps
Average Loans ^(3)
Nonperforming Assets to  0.84%       0.83%             0.86%       3       bps
Total Assets ^(3)
                         For the Quarter Ended:
                         GAAP                          Non GAAP
Adjusted Selected Key    6/30/2013   Adjustments^(4)   6/30/2013
Ratios
Return on Average Assets 0.49%       0.12%             0.61%
Return on Average Common 4.09%       0.85%             4.94%
Equity
Return on Average
Tangible Common Equity   5.96%       1.18%             7.14%
(Non-GAAP)
Net Interest Margin (TE) 3.39%       0.17%             3.56%
^(2)
Tangible Efficiency      81.9%       (2.8%)            79.1%
Ratio (TE)^(2)(Non-GAAP)
^(1)Excludes the impact of the adoption of the new accounting standard.
^(2)Fully taxable equivalent basis.
^(3)Excluding FDIC Covered Assets and acquired impaired loans.
^(4)Adjusted results exclude the income statement impact of the additional
amortization of the Company's  indemnification asset, net of tax where
applicable, without adjustment to any balance sheet accounts. 

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

Operating Results

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

Table B - Quarterly Average Yields/Cost ^(1)

                                  For Quarter Ended:               Basis Point
                                  6/30/2012   3/31/2013  6/30/2013 Change
Investment Securities             2.40%       1.92%      1.92%     (0)    bps
Covered Loans, net of loss share  7.44%       5.35%      5.11%     (24)   bps
receivable
Noncovered Loans                  4.68%       4.44%      4.40%     (4)    bps
Loans & Loss Share Receivable     4.80%       4.36%      4.35%     (1)    bps
Mortgage Loans Held For Sale      3.64%       2.97%      3.17%     20     bps
Other Earning Assets              0.84%       0.52%      0.87%     35     bps
  Total Earning Assets            4.20%       3.70%      3.80%     10     bps
Interest Bearing Deposits         0.65%       0.47%      0.42%     (5)    bps
Short-Term Borrowings             0.24%       0.19%      0.16%     (3)    bps
Long-Term Borrowings              3.07%       3.16%      3.39%     23     bps
  Total Interest Bearing          0.76%       0.58%      0.51%     (7)    bps
Liabilities
Net Interest Spread               3.45%       3.12%      3.29%     17     bps
Net Interest Margin               3.59%       3.23%      3.39%     16     bps
^(1) Earning asset yields are shown on a fully taxable
equivalent basis.

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

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

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

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

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

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

  o Decreased gains on the sale of investment securities equal to $2.4
    million;
  o Decreased mortgage income of $1.2 million, or 6%; partially offset by
  o Increased title revenue of $0.7 million, or 13%;
  o Increased brokerage commissions of $0.3 million, or 9%; and
  o Increased deposit service charge income of $0.3 million, or 5%.

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

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

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

  o Decreased IA impairment of $31.8 million;
  o Decreased FHLB debt extinguishment of $2.3 million; and
  o Decreased merger and conversion-related expense of $0.2 million; partially
    offset by
  o Increased branch closure cost of $4.6 million;
  o Increased severance expense of $1.6 million; and
  o Increased litigation expenses of $0.2 million.

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

  o Increased mortgage commissions of $1.8 million, or 42%, due to higher
    mortgage loan production;
  o Decreased occupancy and equipment expense of $0.5 million, or 3%, due to
    branch closures; and
  o Decreased OREO expenses of $0.6 million, or 62%;

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

Loans

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

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

           Period-End Balances ($
           Millions)
                                    % Change                      Mix
           6/30/12 3/31/13 6/30/13  Year/Year Qtr/Qtr Annualized  3/31/13 6/30/13
Commercial $       $       $        21%       5%      21%         64%     66%
           4,841   5,555   5,843
Consumer   1,470   1,735   1,791    22%       3%      13%         20%     20%
Mortgage   236     301     351      49%       16%     66%         3%      4%
Non-FDIC   $       $       $        22%       5%      21%         87%     90%
Loans      6,547   7,591   7,985
Covered    1,190   1,004   918      -23%      -9%     -34%        13%     10%
Assets
Total      $       $       $        15%       4%      14%         100%    100%
Loans      7,737   8,595   8,903

 

Deposits

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

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

             Period-End Balances ($
             Millions)
                                      % Change                      Mix
             6/30/12 3/31/13 6/30/13  Year/Year Qtr/Qtr Annualized  3/31/13 6/30/13
Noninterest  $       $       $        24%       4%      17%         19%     19%
             1,651   1,972   2,055
NOW Accounts 1,990   2,480   2,485    25%       0%      1%          23%     23%
Savings/MMkt 3,529   4,156   4,134    17%       -1%     -2%         39%     39%
Time         2,246   2,078   1,968    -12%      -5%     -21%        19%     19%
Deposits
Total        $       $       $        13%       0%      -2%         100%    100%
Deposits     9,416    10,686  10,642

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

Other Assets And Funding

The Company reduced its excess liquidity position in the second quarter of
2013.  Excess liquidity averaged $295 million in the second quarter of 2013,
down $335 million, or 53%, on a linked quarter basis.  The excess liquidity
was used to fund strong loan growth while the investment portfolio remained
stable at $2.1 billion on average in the second quarter of 2013.  On a
period-end basis, the investment portfolio equated to $2.1 billion, or 16% of
total assets at June 30, 2013, down slightly compared to 17% at March 31,
2013.  The investment portfolio had a modified duration of 3.9 years at June
30, 2013, up compared to 3.1 years at March 31, 2013.  The lengthening
duration of the investment portfolio was the result of anticipated slowing
prepayment speeds as interest rates increased near the end of the second
quarter of 2013. At current prepayment speeds, the investment portfolio is
projected to cash flow approximately $537 million over the next 18 months, or
26% of the total investment portfolio.  The Company estimates that a potential
increase in interest rates of 100 and 200 basis points at June 30, 2013 would
extend the duration of the investment portfolio by 0.6 and 0.7 years,
respectively.  The unrealized gain in the portfolio decreased from a $40
million unrealized gain at March 31, 2013, to an $8 million unrealized loss at
June 30, 2013.  The average yield on investment securities held steady on a
linked quarter basis at 1.92% in the second quarter of 2013.  The Company
holds in its investment portfolio primarily government agency securities. 
Municipal securities comprised only 10% of total investments at June 30,
2013.  The Company holds no sovereign debt or derivative exposure to foreign
counterparties.

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

Asset Quality

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

Table E - Asset Quality Summary
Excludes the impact of all FDIC-assisted acquisitions and acquired impaired
loans

                          For Quarter Ended:             % or Basis Point
                                                         Change
     ($ thousands)        6/30/2012 3/31/2013 6/30/2013  Year/Year  Qtr/Qtr
Nonperforming Assets      $         $         $          15%        4%
                          86,501    96,001    99,567
Past Due Loans            84,653    85,399    93,872     11%        10%
Classified Assets         200,872   213,589   183,414    -9%        -14%
Nonperforming             0.84%     0.83%     0.86%      2     bps  3      bps 
Assets/Assets
NPAs/(Loans + OREO)       1.33%     1.27%     1.24%      (9)   bps  (3)    bps 
Classified Assets/Total   1.94%     1.84%     1.59%      (35)  bps  (25)   bps 
Assets
(Past Dues &              1.30%     1.13%     1.18%      (12)  bps  5      bps 
Nonaccruals)/Loans
Provision For Loan        $         $         $          -22%       -185%
Losses                     4,271    (3,941)    3,344
Net                       1,102     1,170     1,029      -7%        -12%
Charge-Offs/(Recoveries)
Provision Less Net        $         $         $          27%        -145%
Charge-Offs                3,169    (5,111)    2,315
Net Charge-Offs/Average   0.07%     0.06%     0.05%      (2)        (1)
Loans
Allowance For Loan        1.23%     0.99%     0.84%      (39)       (15)
Losses/Loans
Allowance for Credit      1.23%     0.99%     0.97%      (26)       (2)
Losses to Total Loans

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

Capital Position

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

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

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

On June 3, 2013, the Company declared a quarterly cash dividend of $0.34 per
share. This dividend level equated to an annualized dividend rate of $1.36 per
share and an indicated dividend yield of 2.32%.

IBERIABANK Corporation

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

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

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

  o FIG Partners, LLC
  o Jefferies & Co., Inc.
  o Keefe, Bruyette & Woods
  o Merion Capital Group
  o Oppenheimer & Co., Inc.
  o Raymond James & Associates, Inc.
  o Robert W. Baird & Company
  o Stephens, Inc.
  o Sterne, Agee & Leach
  o SunTrust Robinson-Humphrey
  o Wunderlich Securities

Conference Call

In association with this earnings release, the Company will host a live
conference call to discuss the financial results for the quarter just
completed. The telephone conference call will be held on Wednesday, July 24,
2013, beginning at 8:00 a.m. Central Time by dialing 1-800-762-4758. The
confirmation code for the call is 297018.  A replay of the call will be
available until midnight Central Time on July 31, 2013 by dialing
1-800-475-6701. The confirmation code for the replay is 297018.  The Company
has prepared a PowerPoint presentation that supplements information contained
in this press release.  The PowerPoint presentation may be accessed on the
Company's web site, www.iberiabank.com, under "Investor Relations" and then
"Presentations."

Non-GAAP Financial Measures

This press release contains financial information determined by methods other
than in accordance with GAAP. The Company's management uses these non-GAAP
financial measures in their analysis of the Company's performance. These
measures typically adjust GAAP performance measures to exclude the effects of
the amortization of intangibles and include the tax benefit associated with
revenue items that are tax-exempt, as well as adjust income available to
common shareholders for certain significant activities or transactions that
are infrequent in nature. Since the presentation of these GAAP performance
measures and their impact differ between companies, management believes
presentations of these non-GAAP financial measures provide useful supplemental
information that is essential to a proper understanding of the operating
results of the Company's core businesses. These non-GAAP disclosures should
not be viewed as a substitute for operating results determined in accordance
with GAAP, nor are they necessarily comparable to non-GAAP performance
measures that may be presented by other companies.  Reconciliations of GAAP to
non-GAAP disclosures are included as tables at the end of this release.  Refer
to press release supplemental table for this reconciliation.

Forward Looking Statements

To the extent that statements in this press release and the accompanying
PowerPoint presentation relate to future plans, objectives, financial results
or performance of IBERIABANK Corporation, these statements are deemed to be
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements, which are based on
management's current information, estimates and assumptions and the current
economic environment, are generally identified by the use of the words "plan",
"believe", "expect", "intend", "anticipate", "estimate", "project" or similar
expressions. IBERIABANK Corporation's actual strategies and results in future
periods may differ materially from those currently expected due to various
risks and uncertainties.

Actual results could differ materially because of factors such as the level of
market volatility, our ability to execute our growth strategy, including the
availability of future FDIC-assisted failed bank opportunities, unanticipated
losses related to the integration of, and refinements to purchase accounting
adjustments for, acquired businesses and assets and assumed liabilities in
these transactions, adjustments of fair values of acquired assets and assumed
liabilities and of deferred taxes in acquisitions, actual results deviating
from the Company's current estimates and assumptions of timing and amounts of
cash flows, credit risk of our customers, effects of the on-going correction
in residential real estate prices and reduced levels of home sales,
sufficiency of our allowance for loan losses, changes in interest rates,
access to funding sources, reliance on the services of executive management,
competition for loans, deposits and investment dollars, reputational risk and
social factors, changes in government regulations and legislation, increases
in FDIC insurance assessments, geographic concentration of our markets and
economic conditions in these markets, rapid changes in the financial services
industry, dependence on our operational, technological, and organizational
systems or infrastructure and those of third-party providers of those
services, hurricanes and other adverse weather events, the modest trading
volume of our common stock, and valuation of intangible assets.  These and
other factors that may cause actual results to differ materially from these
forward-looking statements are discussed in the Company's Annual Report on
Form 10-K, subsequent Quarterly Reports on Form 10-Q, and other filings with
the Securities and Exchange Commission (the "SEC"), available at the SEC's
website, http://www.sec.gov, and at the Company's website,
http://www.iberiabank.com, under the heading "Investor Information."  All
information in this release and the accompanying PowerPoint presentation is as
of the date of this release.  The Company undertakes no duty to update any
forward-looking statement to conform the statement to actual results or
changes in the Company's expectations. Certain tabular presentations may not
reconcile because of rounding.

 

 Table 1 - IBERIABANK CORPORATION
 FINANCIAL HIGHLIGHTS
                        For The Quarter Ended               For The Quarter
                                                           Ended 
                        June 30,                            March 31, 
                       2013         2012         % Change  2013       % Change
Income Data (in
thousands):
                       $            $                      $        
 Net Interest Income        96,482               4%                   4%
                                     93,172                 92,871
 Net Interest Income   98,878       95,593       3%        95,335     4%
 (TE)^   (1)
 Net Income            15,590       12,560       24%       717        2074%
 Earnings Available
 to Common             15,590       12,560       24%       717        2074%
 Shareholders- Basic
 Earnings Available
 to Common             15,297       12,320       24%       697        2094%
 Shareholders-
 Diluted
Per Share Data:
 Earnings Available    $            $                      $        
 to Common                                       24%                  2067%
 Shareholders - Basic  0.53         0.43                        0.02
 Earnings Available
 to Common             0.53         0.43         24%       0.02       2088%
 Shareholders -
 Diluted
 Operating Earnings    0.80         0.54         48%       0.86       (7%)
 (Non-GAAP) ^(2)
 Book Value            50.65        50.68        (0%)      51.33      (1%)
 Tangible Book Value   36.30        37.28        (3%)      36.93      (2%)
 ^(3)
 Cash Dividends        0.34         0.34         -         0.34       -
 Closing Stock Price   53.61        50.45        6%        50.02      7%
Key Ratios: ^(4)
 Operating Ratios:
 Return on Average     0.49%        0.43%                  0.02%
 Assets
 Return on Average     4.09%        3.36%                  0.19%
 Common Equity
 Return on Average
 Tangible Common       5.96%        4.86%                  0.55%
 Equity ^(3)
 Net Interest Margin   3.39%        3.59%                  3.23%
 (TE) ^ (1)
 Efficiency Ratio      84.4%        80.8%                  105.5%
 Tangible Efficiency
 Ratio  (TE)  ^(1)     81.9%        78.2%                  102.4%
 (3)
 Full-time Equivalent  2,611        2,574                  2,718
 Employees
 Capital Ratios:
 Tangible Common
 Equity Ratio          8.69%        9.37%                  8.75%
 (Non-GAAP)
 Tangible Common
 Equity to             11.03%       13.24%                 11.64%
 Risk-Weighted Assets
 Tier 1 Leverage       9.59%        10.42%                 9.37%
 Ratio
 Tier 1 Capital Ratio  12.19%       14.27%                 12.54%
 Total Risk Based      13.45%       15.54%                 13.80%
 Capital Ratio
 Common Stock
 Dividend Payout       64.8%        79.9%                  N/M
 Ratio
 Asset Quality Ratios:
 Excluding FDIC
 Covered Assets and
 acquired impaired
 loans
 Nonperforming Assets  0.86%        0.84%                  0.83%
 to Total Assets ^(5)
 Allowance for Loan    0.84%        1.23%                  0.99%
 Losses to Loans
 Net Charge-offs to    0.05%        0.07%                  0.06%
 Average Loans 
 Nonperforming Assets
 to Total Loans and    1.25%        1.33%                  1.27%
 OREO ^(5)

                  For The Quarter Ended     For The Quarter Ended 
                  June 30,                  March 31,    December    September
                                                        31,         30, 
                 2013         2013         2013         2012        2012
Balance Sheet    End of
Summary (in      Period       Average      Average      Average     Average
thousands):
 Excess          $            $            $            $           $        
 Liquidity ^(6)     120,451                                                  
                               294,544      629,406     432,752     238,203
 Total
 Investment      2,075,298    2,096,166    2,096,229    1,957,542   2,005,975
 Securities
 Loans, Net of
 Unearned        8,903,037    8,748,476    8,543,538    8,384,218   8,016,829
 Income
 Loans, Net of
 Unearned
 Income,         7, 938,120   7,753,497    7,454,309    7,212,648   6,810,490
 Excluding
 Covered Loans
 and SOP 03-3
 Total Assets    12,823,503   12,881,551   13,075,008   12,692,665  12,182,554
 Total Deposits  10,641,718   10,638,478   10,703,883   10,315,944  9,705,957
 Total
 Shareholders'   1,504,761    1,528,606    1,531,068    1,533,561   1,519,338
 Equity

     Fully taxable equivalent (TE) calculations include the tax benefit
^(1) associated with related income sources that are tax-exempt using a
     marginal tax rate of 35%.
^(2) Excludes the impact of the adoption of the new accounting standard.
     Tangible calculations eliminate the effect of goodwill and acquisition
^(3) related intangible assets and the corresponding amortization expense on a
     tax-effected basis where applicable.
^(4) All ratios are calculated on an annualized basis for the period
     indicated.
     Nonperforming assets consist of nonaccruing loans, accruing loans 90 days
^(5) or more past due and other real estate owned, including repossessed
     assets.
     Excess Liquidity includes interest-bearing deposits in banks and fed
^(6) funds sold, but excludes liquidity sources and uses from off-balance
     sheet arrangements.
N/M - Comparison of the information presented is not meaningful given the
periods presented.

 

 

Table 2 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands except per share data)
BALANCE SHEET (End  June 30,                             March 31,
of Period)
                    2013        2012        % Change     2013         % Change
ASSETS
Cash and Due From   $           $                        $          
Banks                  227,114              16.0%           183,158   24.0%
                                195,719
Interest-bearing    120,451     404,327     (70.2%)      443,358      (72.8%)
Deposits in Banks
   Total Cash and   347,565     600,046     (42.1%)      626,516      (44.5%)
Equivalents
Investment
Securities          1,912,058   1,812,746   5.5%         1,951,548    (2.0%)
Available for Sale
Investment
Securities Held to  163,240     188,399     (13.4%)      198,442      (17.7%)
Maturity
   Total Investment 2,075,298   2,001,145   3.7%         2,149,990    (3.5%)
Securities
Mortgage Loans Held 162,031     180,569     (10.3%)      188,037      (13.8%)
for Sale
Loans, Net of       8,903,037   7,736,512   15.1%        8,594,975    3.6%
Unearned Income
Allowance for Loan  (162,903)   (187,285)   (13.0%)      (189,725)    (14.1%)
Losses
   Loans, Net       8,740,134   7,549,227   15.8%        8,405,250    4.0%
Loss Share          241,040     469,923     (48.7%)      284,471      (15.3%)
Receivable
Premises and        296,988     291,718     1.8%         304,353      (2.4%)
Equipment
Goodwill and Other  427,581     395,919     8.0%         428,522      (0.2%)
Intangibles
Other Assets        532,866     632,571     (15.8%)      564,060      (5.5%)
                    $           $                        $      
   Total Assets     12,823,503              5.8%          12,951,199  (1.0%)
                                12,121,118
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Noninterest-bearing $           $                        $          
Deposits            2,055,333               24.5%        1,971,809    4.2%
                                1,651,154
NOW Accounts        2,484,824   1,989,876   24.9%        2,480,305    0.2%
Savings and Money   4,133,770   3,529,060   17.1%        4,155,973    (0.5%)
Market Accounts
Certificates of     1,967,791   2,245,830   (12.4%)      2,078,180    (5.3%)
Deposit
   Total Deposits   10,641,718  9,415,920   13.0%        10,686,267   (0.4%)
Short-term          -           405,000     (1)          -            -
Borrowings
Securities Sold
Under Agreements to 289,377     235,768     22.7%        294,156      (1.6%)
Repurchase
Trust Preferred     111,862     111,862     0.0%         111,862      0.0%
Securities
Other Long-term     171,623     306,036     (43.9%)      211,184      (18.7%)
Debt
Other Liabilities   104,162     151,492     (31.2%)      123,660      (15.8%)
   Total            11,318,742  10,626,078  6.5%         11,427,129   (0.9%)
Liabilities
Total Shareholders' 1,504,761   1,495,040   0.7%         1,524,070    (1.3%)
Equity
   Total                        $        
Liabilities and     $                       5.8%         $            (1.0%)
Shareholders'       12,823,503  12,121,118                12,951,199
Equity
BALANCE SHEET       June 30,    March 31,   December     September    June 30,
(Average)                                   31,          30,
                    2013        2013        2012         2012         2012
ASSETS
                                $           $                         $        
Cash and Due From   $                                    $                     
Banks                  219,344  220,746                     192,891            
                                             212,404                   188,260
Interest-bearing    294,544     629,406     432,752      236,653      294,171
Deposits in Banks
Investment          2,096,166   2,096,229   1,957,542    2,005,975    2,048,001
Securities
Mortgage Loans Held 170,620     178,387     212,432      182,543      135,273
for Sale
Loans, Net of       8,748,476   8,543,538   8,384,218    8,016,829    7,592,677
Unearned Income
Allowance for Loan  (183,783)   (245,384)   (196,634)    (180,798)    (173,023)
Losses
Loss Share          268,700     384,319     411,328      448,746      508,443
Receivable
Other Assets        1,267,484   1,267,767   1,278,623    1,279,715    1,223,299
                                $           $                         $        
   Total Assets     $                                    $                     
                    12,881,551  13,075,008   12,692,665   12,182,554     
                                                                      11,817,101
LIABILITIES AND
SHAREHOLDERS'
EQUITY
                                $           $                         $        
Noninterest-bearing $                                    $                     
Deposits            2,010,263   1,937,890     1,928,361  1,773,302         
                                                                      1,640,327
NOW Accounts        2,488,721   2,464,922   2,207,032    2,023,769    1,985,248
Savings and Money   4,113,671   4,170,123   3,935,675    3,701,947    3,524,641
Market Accounts
Certificates of     2,025,823   2,130,948   2,244,876    2,206,939    2,313,176
Deposit
   Total Deposits   10,638,478  10,703,883  10,315,944   9,705,957    9,463,392
Short-term          77          500         9,239        121,957      27,857
Borrowings
Securities Sold
Under Agreements to 294,712     292,448     262,027      245,486      245,401
Repurchase
Trust Preferred     111,862     111,862     111,862      113,905      111,862
Securities
Long-term Debt      181,884     300,071     312,190      324,923      313,451
Other Liabilities   125,932     135,176     147,842      150,988      151,036
   Total            11,352,945  11,543,940  11,159,104   10,663,216   10,312,999
Liabilities
Total Shareholders' 1,528,606   1,531,068   1,533,561    1,519,338    1,504,102
Equity
   Total                        $           $                         $        
Liabilities and     $                                    $                     
Shareholders'       12,881,551  13,075,008  12,692,665    12,182,554     
Equity                                                                11,817,101

 

Table 3 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands except per share data)
                   For The Three Months Ended
INCOME STATEMENT   June 30,                             March 31,
                   2013         2012         % Change   2013         % Change
Interest Income    $            $            (1.0%)     $            1.7%
                   108,177      109,283                 106,416
Interest Expense   11,695       16,111       (27.4%)    13,545       (13.7%)
   Net Interest    96,482       93,172       3.6%       92,871       3.9%
Income
(Reversal of)
Provision for Loan 1,807        8,895        (79.7%)    (3,377)      (153.5%)
Losses
   Net Interest
Income After
(Reversal of )     94,675       84,277       12.3%      96,248       (1.6%)
Provision for Loan
Losses
Service Charges    7,106        6,625        7.3%       6,797        4.5%
ATM / Debit Card   2,357        2,166        8.8%       2,183        8.0%
Fee Income
BOLI Proceeds and
Cash Surrender     901          905          (0.4%)     939          (4.1%)
Value Income
Mortgage Income    17,708       18,185       (2.6%)     18,931       (6.5%)
Gain (Loss) on
Sale of            (57)         901          (106.4%)   2,359        (102.4%)
Investments, Net
Title Revenue      5,696        5,339        6.7%       5,021        13.4%
Broker Commissions 3,863        3,102        24.5%      3,534        9.3%
Other Noninterest  4,915        4,471        10.0%      4,727        4.0%
Income
   Total           42,489       41,694       1.9%       44,491       (4.5%)
Noninterest Income
Salaries and       63,815       58,121       9.8%       62,529       2.1%
Employee Benefits
Occupancy and      14,283       12,908       10.7%      15,195       (6.0%)
Equipment
Amortization of
Acquisition        1,181        1,289        (8.3%)     1,183        (0.2%)
Intangibles
Other Noninterest  38,082       36,704       3.8%       65,991       (42.3%)
Expense
   Total
Noninterest        117,361      109,022      7.6%       144,898      (19.0%)
Expense
   Income (Loss)
Before Income      19,803       16,949       16.8%      (4,159)      (576.2%)
Taxes
Income Taxes       4,213        4,389        (4.0%)     (4,876)      (186.4%)
   Net Income      $            $            24.1%      $            2073.1%
                   15,590       12,560                    717
   Preferred Stock -            -            -          -            -
Dividends
   Earnings
Available to
Common             15,590       12,560       24.1%      717          2073.8%
Shareholders -
Basic
   Earnings
Allocated to       (293)        (240)        21.9%      (20)         1378.8%
Unvested
Restricted Stock
   Earnings
Available to
Common             15,297       12,320       24.2%      697          2093.5%
Shareholders -
Diluted 
Earnings Per       $            $            23.7%      $            2086.9%
Share, Diluted       0.53            0.43                0.02
Impact of
Non-Operating
Expenses and New   $            $            147.9%     $            (67.8%)
Accounting           0.27            0.11                0.84
Standard
(Non-GAAP)
Earnings Per
Share, Diluted,
Excluding          $            $            48.4%      $            (7.1%)
Non-operating        0.80            0.54                0.86
Expenses
(Non-GAAP)
NUMBER OF SHARES
OUTSTANDING
Basic Shares - All 29,610,315   29,463,811   0.5%       29,502,711   0.4%
Classes  (Average)
Diluted Shares -
Common             29,066,906   28,950,806   0.4%       28,979,168   0.3%
Shareholders
(Average)
Book Value Shares  29,710,058   29,497,008   0.7%       29,691,781   0.1%
(Period End) ^ (1)
                   2013                      2012
INCOME STATEMENT   Second       First        Fourth     Third        Second
                   Quarter      Quarter      Quarter    Quarter      Quarter
                   $            $            $          $            $    
Interest Income    108,177      106,416                 111,951      109,283
                                              114,779
Interest Expense   11,695       13,545       14,789     15,225       16,111
   Net Interest    96,482       92,871       99,990     96,726       93,172
Income
(Reversal of)
Provision for      1,807        (3,377)      4,866      4,053        8,895
Credit Losses
   Net Interest
Income After
(Reversal of)      94,675       96,248       95,124     92,673       84,277
Provision for Loan
Losses
Total Noninterest  42,489       44,491       50,354     46,553       41,694
Income
Total Noninterest  117,361      144,898      113,441    109,848      109,022
Expense
   Income (Loss)
Before Income      19,803       (4,159)      32,037     29,378       16,949
Taxes
Income Taxes       4,213        (4,876)      8,829      8,144        4,389
                   $            $            $          $            $      
   Net Income      15,590             717                21,234       12,560
                                             23,208
   Preferred Stock -            -            -          -            -
Dividends
   Earnings
Available to
Common             15,590       717          23,208     21,234       12,560
Shareholders -
Basic
   Earnings
Allocated to       (293)        (20)         (428)      (406)        (240)
Unvested
Restricted Stock
   Earnings
Available to       $            $            $          $            $      
Common             15,297             697                20,828       12,320
Shareholders -                               22,780
Diluted
Earnings Per       $            $            $          $            $        
Share, Basic         0.53            0.02                0.73           0.43
                                             0.79
Earnings Per       $            $            $          $            $        
Share, Diluted       0.53            0.02                0.73           0.43
                                             0.79
Book Value Per     $            $            $          $            $        
Common Share       50.65          51.33                  51.44        50.68
                                             51.88
Tangible Book      $            $            $          $            $        
Value Per Common   36.30          36.93                  37.07        37.28
Share                                        37.34
Return on Average  0.49%        0.02%        0.73%      0.69%        0.43%
Assets
Return on Average  4.09%        0.19%        6.02%      5.56%        3.36%
Common Equity
Return on Average
Tangible Common    5.96%        0.55%        8.62%      7.91%        4.86%
Equity
(1) Shares used for book value purposes exclude shares held in
treasury at the end of the period.  

Table 4 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands except per share data)
                                 For The Six Months Ended
INCOME STATEMENT                 June 30,
                                 2013              2012               % Change
Interest Income                  $       214,593   $         218,470  (1.8%)
Interest Expense                 25,239            33,436             (24.5%)
   Net Interest Income           189,354           185,034            2.3%
(Reversal of) Provision for Loan (1,569)           11,752             (113.4%)
Losses
   Net Interest Income After     190,923           173,282            10.2%
Provision for Loan Losses
Service Charges                  13,903            12,606             10.3%
ATM / Debit Card Fee Income      4,541             4,189              8.4%
BOLI Proceeds and Cash Surrender 1,840             1,855              (0.8%)
Value Income
Mortgage Income                  36,639            31,903             14.8%
Gain on Sale of Investments, net 2,302             3,737              (38.4%)
Title Revenue                    10,717            9,872              8.6%
Broker Commissions               7,397             6,162              20.0%
Other Noninterest Income         9,641             8,766              10.0%
   Total Noninterest Income      86,980            79,090             10.0%
Salaries and Employee Benefits   126,344           112,940            11.9%
Occupancy and Equipment          29,478            25,627             15.0%
Amortization of Acquisition      2,364             2,579              (8.3%)
Intangibles
Other Noninterest Expense        104,073           67,750             53.6%
   Total Noninterest Expense     262,259           208,896            25.5%
   Income Before Income Taxes    15,644            43,477             (64.0%)
Income Taxes                     (663)             11,523             (105.8%)
   Net Income                    $         16,307  $                  (49.0%)
                                                   31,953
   Preferred Stock Dividends     -                 -                  -
   Earnings Available to Common  16,307            31,953             (49.0%)
Shareholders - Basic
   Earnings Allocated to         (313)             (607)              (48.5%)
Unvested Restricted Stock
   Earnings Available to Common  15,994            31,346             (49.0%)
Shareholders - Diluted
Earnings Per Share, diluted      $                 $                  (49.1%)
                                 0.55               1.08

 

Table 5 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands)
LOANS                June 30,                            March 31,
                     2013         2012         % Change  2013         % Change
Residential          518,496      418,789      23.8%     478,617      8.3%
Mortgage Loans:
Commercial Loans:
   Real Estate       3,744,238    3,313,863    13.0%     3,587,692    4.4%
   Business          2,687,920    2,306,160    16.6%     2,621,644    2.5%
      Total          6,432,158    5,620,023    14.5%     6,209,336    3.6%
Commercial Loans
Consumer Loans:
   Indirect          351,631      309,855      13.5%     342,117      2.8%
Automobile
   Home Equity       1,278,823    1,159,899    10.3%     1,261,171    1.4%
   Automobile        76,427       49,411       54.7%     66,240       15.4%
   Credit Card       53,026       46,519       14.0%     51,642       2.7%
Loans
   Other             192,476      132,016      45.8%     185,852      3.6%
      Total          1,952,383    1,697,700    15.0%     1,907,022    2.4%
Consumer Loans
      Total Loans    8,903,037    7,736,512    15.1%     8,594,975    3.6%
Allowance for Loan   (162,903)    (187,285)              (189,725)
Losses
   Loans, Net        $            $                      $        
                     8,740,134    7,549,227              8,405,250
Reserve for
Unfunded             (10,342)     -            100.0%    -            100.0%
Commitments ^(1)
Allowance for        (173,246)    (187,285)    (7.5%)    (189,725)    (8.7%)
Credit Losses
ASSET QUALITY DATA   June 30,                            March 31,
^(2)
                     2013         2012         % Change  2013         % Change
Nonaccrual Loans     $            $            (34.5%)   $            (11.5%)
                     409,775       625,938                463,075
Foreclosed Assets    1,647        455          262.2%    1,375        19.8%
Other Real Estate    127,960      129,463      (1.2%)    130,461      (1.9%)
Owned
Accruing Loans More
Than 90 Days Past    4,126        8,270        (50.1%)   5,697        (27.6%)
Due 
Total Nonperforming  $            $            (28.9%)   $            (9.5%)
Assets               543,508       764,126                600,608
Loans 30-89 Days     $            $            (24.1%)   $            5.9%
Past Due             35,204          46,391                 33,227
Nonperforming
Assets to Total      4.24%        6.30%        (32.8%)   4.63%        (8.5%)
Assets 
Nonperforming
Assets to Total      6.02%        9.71%        (38.1%)   6.87%        (12.4%)
Loans and OREO^ 
Allowance for Loan
Losses to            39.4%        29.5%        33.3%     40.6%        (2.9%)
Nonperforming Loans
^(3)
Allowance for Loan
Losses to            30.0%        24.5%        22.3%     31.6%        (5.3%)
Nonperforming
Assets
Allowance for Loan
Losses to Total      1.83%        2.42%        (24.4%)   2.21%        (17.1%)
Loans
Allowance for
Credit Losses to     41.9%        29.5%        41.7%     40.6%        3.2%
Nonperforming Loans
^(1) (3)
Allowance for
Credit Losses to     31.9%        24.5%        30.1%     31.6%        0.9%
Nonperforming
Assets ^(1)
Allowance for
Credit Losses to     1.95%        2.42%        (19.6%)   2.21%        (11.8%)
Total Loans ^(1)
Year to Date         $            $            (5.5%)    $            N/M
Charge-offs          4,375              4,627                  2,103
Year to Date         (2,029)      (1,815)      11.7%     (893)        N/M
Recoveries
Year to Date Net     $            $                      $          
Charge-offs          2,346              2,812  (16.6%)         1,210  N/M
(Recoveries)
Quarter to Date Net  $            $                      $          
Charge-offs          1,136              1,118  1.7%            1,210  (6.1%)
(Recoveries)
Quarter to Date Net
Charge-offs to       0.05%        0.06%        (12.0%)   0.06%        (9.3%)
Average Loans
(Annualized)

^(1) During the second quarter of 2013, the Company segregated its allowance
for credit losses into an allowance for loan losses and a reserve for unfunded
commitments, which is included in other liabilities on its balance sheet.
^(2) For purposes of this table, nonperforming assets include all loans
meeting nonperforming asset criteria, including assets acquired in
FDIC-assisted transactions.
^(3) Nonperforming loans consist of nonaccruing loans and accruing loans 90
days or more past due.  
N/M - Comparison of the information presented is not meaningful given the
periods presented.

 

Table 6 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands)
LOANS (Ex-Covered
Assets and          June 30,                             March 31,
Acquired Impaired
Loans)^(1)
                    2013          2012         % Change  2013         % Change
Residential         350,458       235,221      49.0%     300,555      16.6%
Mortgage Loans:
Commercial Loans:
   Real Estate      3,184,515     2,626,391    21.3%     2,970,535    7.2%
   Business         2,615,495     2,179,919    20.0%     2,531,272    3.3%
      Total         5,800,010     4,806,310    20.7%     5,501,807    5.4%
Commercial Loans
Consumer Loans:
   Indirect         351,586       309,757      13.5%     342,067      2.8%
Automobile
   Home Equity      1,118,594     937,299      19.3%     1,088,685    2.7%
   Automobile       76,269        49,402       54.4%     66,237       15.1%
   Credit Card      52,243        45,693       14.3%     50,823       2.8%
Loans
   Other            188,960       123,034      53.6%     182,600      3.5%
      Total         1,787,652     1,465,185    22.0%     1,730,412    3.3%
Consumer Loans
      Total Loans   7,938,120     6,506,716    22.0%     7,532,774    5.4%
Allowance for Loan  (66,481)      (79,999)               (74,217)
Losses
   Loans, Net       $  7,871,639  $                      $        
                                  6,426,717              7,458,557
Reserve for
Unfunded            (10,342)      -            100.0%    -            100.0%
Commitments ^(2)
Allowance for       (76,823)      (79,999)     (4.0%)    (74,217)     3.5%
Credit Losses
ASSET QUALITY DATA
(Ex-Covered Assets
and Acquired        June 30,                             March 31,
Impaired Loans)
^(1)
                    2013          2012         % Change  2013         % Change
Nonaccrual Loans    $             $            7.5%      $            7.3%
                    71,556           66,545                 66,659
Foreclosed Assets   32            -            100.0%    48           (32.5%)
Other Real Estate   25,861        18,681       38.4%     26,467       (2.3%)
Owned
Accruing Loans
More Than 90 Days   2,118         1,275        66.2%     2,827        (25.1%)
Past Due 
Total               $             $                      $          
Nonperforming       99,567           86,501    15.1%        96,001    3.7%
Assets
Loans 30-89 Days    $             $            20.0%     $            26.9%
Past Due            20,198           16,833                 15,912
Troubled Debt
Restructurings      10,425        22,630       (53.9%)   18,508       (43.7%)
^(3)
Current Troubled
Debt                1,813         669          171.0%    2,124        (14.6%)
Restructurings
^(4)
Nonperforming
Assets to Total     0.86%         0.84%        2.9%      0.83%        3.8%
Assets 
Nonperforming
Assets to Total     1.25%         1.33%        (5.7%)    1.27%        (1.6%)
Loans and OREO^ 
Allowance for Loan
Losses to           90.2%         118.0%       (23.5%)   106.8%       (15.5%)
Nonperforming
Loans ^(5)
Allowance for Loan
Losses to           66.8%         92.5%        (27.8%)   77.3%        (13.6%)
Nonperforming
Assets
Allowance for Loan
Losses to Total     0.84%         1.23%        (31.9%)   0.99%        (15.0%)
Loans
Allowance for
Credit Losses to    104.3%        118.0%       (11.6%)   106.8%       (2.4%)
Nonperforming
Loans ^(2) (5)
Allowance for
Credit Losses to    77.2%         92.5%        (16.6%)   77.3%        (0.2%)
Nonperforming
Assets ^(2) (5)
Allowance for
Credit Losses to    0.97%         1.23%        (21.3%)   0.99%        (1.8%)
Total Loans ^(2)
(5)
Year to Date        $             $            (0.2%)    $            N/M
Charge-offs         4,227               4,237                  2,063
Year to Date        (2,028)       (1,796)      13.0%     (893)        N/M
Recoveries
Year to Date Net    $             $                      $          
Charge-offs         2,199               2,441  (9.9%)          1,170  N/M
(Recoveries)
Quarter to Date     $             $                      $          
Net Charge-offs     1,029               1,102  (6.7%)          1,170  (12.1%)
(Recoveries)
Quarter to Date
Net Charge-offs to  0.05%         0.07%        (23.1%)   0.06%        (16.4%)
Average Loans
(Annualized)

^(1) For purposes of this table, nonperforming assets include all loans
meeting nonperforming asset criteria, excluding assets acquired in
FDIC-assisted transactions and acquired impaired loans.
^(2) During the second quarter of 2013, the Company segregated its allowance
for credit losses into an allowance for loan losses and a reserve for unfunded
commitments, which is included in other liabilities on its balance sheet.
^(3) Troubled debt restructurings meeting past due and nonaccruing criteria
are included in loans past due and nonaccrual loans above.
^(4) Current troubled debt restructurings are defined as troubled debt
restructurings not past due or on nonaccrual status for the respective
periods.
^(5) Nonperforming loans consist of nonaccruing loans and accruing loans 90
days or more past due.  
N/M - Comparison of the information presented is not meaningful given the
periods presented.

 

Table 7 - Non-Covered and Net Covered Loan Portfolio Volumes And
Yields ($ in Millions)
                2Q 2012        3Q 2012        4Q 2012        1Q 2013        2Q 2013
                Average Yield  Average Yield  Average Yield  Average Yield  Average Yield
                Balance        Balance        Balance        Balance        Balance
Non Covered     $       4.68%  $       4.55%  $       4.52%  $       4.44%  $       4.40%
Loans           6,374          6,863          7,272          7,504          7,794
FDIC Covered    $       16.66% $       18.88% $       17.53% $       16.05% $       12.62%
Loans           1,219          1,154          1,112          1,039           955
Covered Loans,
net of          $              $              $              $              $  
Indemnification 1,727   7.44%  1,603   7.60%  1,523   7.68%  1,424   5.35%  1,223   5.11%
Asset
Amortization

Table 8 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Taxable Equivalent Basis
(dollars in thousands)
                     For The Quarter Ended
                     June 30, 2013                       March 31, 2013           June 30, 2012
                                Average      Average     Average      Average     Average      Average 
                     Interest   Balance      Yield/Rate  Balance      Yield/Rate  Balance      Yield/Rate
                                             (%)                      (%)                      (%)
ASSETS
Earning  Assets:
Loans Receivable: 
Mortgage Loans       7,526      $            6.09%       $            6.32%       $            7.42%
                                 494,531                  472,112                  446,189
Commercial Loans     81,049     6,321,599    5.17%       6,205,785    5.80%       5,510,619    6.65%
(TE) ^(1)
Consumer and Other   26,667     1,932,346    5.54%       1,865,641    5.91%       1,635,869    6.25%
Loans
Total Loans          115,242    8,748,476    5.30%       8,543,538    5.85%       7,592,677    6.61%
Loss Share           (18,130)   268,700      -26.69%     384,319      -28.83%     508,443      -22.16%
Receivable
       Total Loans
and Loss Share       97,112     9,017,176    4.35%       8,927,857    4.36%       8,101,120    4.80%
Receivable
Mortgage Loans Held  1,351      170,620      3.17%       178,387      2.97%       135,273      3.64%
for Sale
Investment 
Securities (TE)      8,978      2,059,502    1.92%       2,042,275    1.92%       1,992,933    2.40%
^(1)(2)
Other  Earning       736        338,668      0.87%       678,917      0.52%       348,267      0.84%
Assets
Total  Earning       108,177    11,585,966   3.80%       11,827,436   3.70%       10,577,593   4.20%
Assets
 Allowance for Loan             (183,783)                (245,384)                (173,023)
Losses 
Nonearning Assets               1,479,368                1,492,956                1,412,531
Total Assets                    $                        $                        $  
                                 12,881,551               13,075,008               11,817,101
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-bearing
liabilities
   Deposits:
      NOW Accounts   1,983      $            0.32%       $            0.32%       $            0.38%
                                2,488,721                2,464,922                1,985,248
      Savings and
Money Market         2,705      4,113,671    0.26%       4,170,123    0.35%       3,524,641    0.48%
Accounts
      Certificates   4,372      2,025,823    0.87%       2,130,948    0.89%       2,313,176    1.14%
of Deposit
         Total
Interest-bearing     9,060      8,628,215    0.42%       8,765,993    0.47%       7,823,065    0.65%
Deposits
   Short-term        121        294,789      0.16%       292,948      0.19%       273,258      0.24%
Borrowings
   Long-term Debt    2,514      293,746      3.39%       411,933      3.16%       425,313      3.07%
         Total
Interest-bearing     11,695     9,216,750    0.51%       9,470,874    0.58%       8,521,636    0.76%
Liabilities
Noninterest-bearing             2,010,263                1,937,890                1,640,327
Demand Deposits
Noninterest-bearing             125,932                  135,176                  151,036
Liabilities
         Total                  11,352,945               11,543,940               10,312,999
Liabilities
Shareholders'                   1,528,606                1,531,068                1,504,102
Equity
         Total
Liabilities and                 $                        $                        $  
Shareholders'                    12,881,551               13,075,008               11,817,101
Equity
Net Interest Spread             $            3.29%       $            3.12%       $            3.45%
                                 96,482                   92,871                   93,172
Tax-equivalent                  2,396        0.08%       2,464        0.08%       2,421        0.09%
Benefit
Net Interest Income             $                        $                        $          
(TE) / Net Interest              98,878      3.39%        95,335      3.23%        95,593      3.59%
Margin (TE) ^(1)
^(1)  Fully taxable equivalent (TE) calculations include the tax benefit associated with
related income sources that are tax-exempt using a marginal tax rate of 35%.
^(2)  Balances exclude unrealized gain or loss on securities
available for sale and impact of trade date accounting.

 

Table 9 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Taxable Equivalent Basis
(dollars in thousands)
                     For The Six Months Ended
                                June 30,                June 30, 2012
                                2013
                                Average     Average                Average      Average 
                     Interest   Balance     Yield/Rate  Interest   Balance      Yield/Rate
                                            (%)                                 (%)
ASSETS
Earning  Assets:
Loans Receivable: 
Mortgage Loans       14,984     $           6.20%       16,737     $            7.31%
                                  483,383                           458,309
Commercial Loans     169,485    6,264,012   5.48%       182,281    5,436,569    6.73%
(TE) ^(1)
Consumer and Other   53,839     1,899,178   5.72%       49,791     1,592,055    6.29%
Loans
Total Loans          238,308    8,646,573   5.57%       248,809    7,486,933    6.67%
Loss Share           (45,831)   326,190     -27.95%     (56,411)   541,110      -20.62%
Receivable
       Total Loans
and Loss Share       192,477    8,972,763   4.35%       192,398    8,028,043    4.84%
Receivable
Mortgage Loans Held  2,676      174,482     3.07%       2,281      126,230      3.61%
for Sale
Investment 
Securities (TE)      17,838     2,050,935   1.92%       22,391     1,990,068    2.45%
^(1)(2)
Other  Earning       1,602      507,853     0.64%       1,400      366,562      0.77%
Assets
Total  Earning       214,593    11,706,033  3.75%       218,470    10,510,903   4.23%
Assets
 Allowance for Loan             (214,414)                          (179,487)
Losses 
Nonearning Assets               1,486,126                          1,421,175
Total Assets                    $                                  $  
                                12,977,745                          11,752,591
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-bearing
liabilities
   Deposits:
      NOW Accounts   3,927      $           0.32%       3,799      $            0.39%
                                 2,476,888                         1,954,809
      Savings and
Money Market         6,261      4,141,741   0.30%       8,585      3,502,857    0.49%
Accounts
      Certificates   9,026      2,078,095   0.88%       14,225     2,379,092    1.20%
of Deposit
         Total
Interest-bearing     19,214     8,696,724   0.45%       26,609     7,836,758    0.68%
Deposits
   Short-term        262        293,874     0.18%       309        248,662      0.25%
Borrowings
   Long-term Debt    5,763      352,513     3.25%       6,518      430,822      2.99%
         Total
Interest-bearing     25,239     9,343,111   0.54%       33,436     8,516,242    0.79%
Liabilities
Noninterest-bearing             1,974,276                          1,585,416
Demand Deposits
Noninterest-bearing             130,528                            150,491
Liabilities
         Total                  11,447,915                         10,252,149
Liabilities
Shareholders'                   1,529,830                          1,500,442
Equity
         Total
Liabilities and                 $                                  $  
Shareholders'                   12,977,745                          11,752,591
Equity
Net Interest Spread             $           3.20%                  $            3.44%
                                  189,354                           185,034
Tax-equivalent                  4,860       0.08%                  4,793        0.09%
Benefit
Net Interest Income             $                                  $        
(TE) / Net Interest               194,214   3.31%                   189,827     3.59%
Margin (TE) ^(1)
^(1)  Fully taxable equivalent (TE) calculations include the tax benefit associated with
related income sources that are tax-exempt using a marginal tax rate of 35%.
^(2)  Balances exclude unrealized gain or loss on securities
available for sale and impact of trade date accounting.

 

Table 10 - IBERIABANK CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(dollars in thousands, except per share data)
                                 For The Quarter Ended
                                 June 30, 2013  March 31, 2013   June 30, 2012
Net Interest Income (GAAP)       $              $                $            
                                 96,482                  92,871  93,172
Effect of Tax Benefit on         2,396          2,464            2,421
Interest Income
Net Interest Income (TE)         98,878         95,335           95,593
(Non-GAAP) ^(1)
Noninterest Income (GAAP)        42,489         44,491           41,694
Effect of Tax Benefit on         485            506              487
Noninterest Income
Noninterest Income (TE)          42,974         44,997           42,181
(Non-GAAP) ^(1)
Taxable Equivalent Revenues      141,852        140,332          137,774
(Non-GAAP) ^(1)
   Securities Losses (Gains)     57             (2,359)          (901)
   Impact of New Accounting      4,967          5,453            -
Standard
   Other noninterest income      -              -                -
Taxable Equivalent Operating     $              $                $          
Revenues (Non-GAAP) ^(1)         146,876               143,426   136,873
Total Noninterest Expense        $              $                $          
(GAAP)                           117,361               144,898   109,022
Less Intangible Amortization     (1,181)        (1,183)          (1,289)
Expense
Tangible Noninterest Expense     116,180        143,715          107,733
(Non-GAAP) ^(2)
Merger-related expenses          -              157              456
Severance expenses               1,670          97               1,053
Occupancy expenses and branch    4,925          375              2,743
closure expenses
Impairment of indemnification    -              31,813           -
asset
Debt prepayment                  -              2,307            -
Termination of debit card        450            -                -
rewards program
Professional expenses and        150            -                1,661
litigation settlements
Tangible Operating Noninterest   $              $                $          
Expense (Non-GAAP) ^(2)          108,985               108,966   101,820
Return on Average Common Equity  4.09%          0.19%            3.36%
(GAAP)
Effect of Intangibles ^(2)       1.87%          0.36%            1.50%
Effect of Non Operating          2.88%          9.04%            1.19%
Revenues and Expenses
Operating Return on Average
Tangible Common Equity           8.85%          9.59%            6.05%
(Non-GAAP) ^(2)
Efficiency Ratio (GAAP)          84.5%          105.5%           80.8%
    Effect of Tax Benefit        (1.8%)         (2.2%)           (1.7%)
Related to Tax Exempt Income
 Efficiency Ratio (TE)           82.7%          103.3%           79.1%
(Non-GAAP)  ^(1)  
    Effect of Amortization of    (0.8%)         (0.8%)           (0.9%)
Intangibles
    Effect of Non-Operating
Items and New Accounting         (7.7%)         (26.5%)          (3.8%)
Standard
Tangible Operating Efficiency    74.2%          76.0%            74.4%
Ratio (TE)(Non-GAAP) ^(1) (2)

     Fully taxable equivalent (TE) calculations include the tax benefit
^(1) associated with related income sources that are tax-exempt using a
     marginal tax rate of 35%.
     Tangible calculations eliminate the effect of goodwill and acquisition
^(2) related intangible assets and the corresponding amortization expense on a
     tax-effected basis where applicable.

 

Table 11 - IBERIABANK CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES^(1) 
(dollars in thousands)
                 For The Quarter Ended
                 June 30, 2013              March 31, 2013             June 30, 2012
                 Dollar Amount              Dollar Amount              Dollar Amount
                 Pre-tax  After-tax  Per    Pre-tax  After-tax  Per    Pre-tax  After-tax  Per
                          ^(2)      share            (2)       share            (2)       share 
                 $        $         $                $         $                          $    
Net Income                                  $                          $ 16,949 $              
(Loss) (GAAP)     19,803                    (4,159)  717       0.02             12,560    0.43
                           15,590   0.53
Noninterest
income
adjustments
Loss (Gain) on
sale of          57       37        0.00    (2,359)  (1,533)   (0.05)  (901)    (586)     (0.02)
investments
Other
noninterest      -        -         -       -        -         -       -        -         -
income
Noninterest
expense
adjustments
Merger-related   -        -         -       157      102       0.00    456      296       0.01
expenses
Severance        1,670    1,086     0.04    97       63        0.00    1,053    685       0.02
expenses
Impairment of
indemnification  -        -         -       31,813   20,678    0.70    -        -         -
asset
Debt prepayment  -        -         -       2,307    1,500     0.05    -        -         -
Occupancy
expenses and     4,925    3,201     0.11    375      244       0.01    2,743    1,783     0.06
branch closure
expenses
Termination of
debit card       450      293       0.01    -        -         -       -        -         -
rewards program
Professional
expenses and     150      97        0.00    -        -         -       1,661    1,080     0.04
litigation
settlements
Operating
earnings         27,055   20,304    0.69    28,231   21,771    0.74    21,961   15,818    0.54
(Non-GAAP) ^(3)
Covered and
acquired
impaired         (1,537)  (999)     (0.03)  565      367       0.01    4,624    3,006     0.10
(reversal of)
provision for
loan losses
Other (reversal
of) provision    3,344    2,174     0.07    (3,941)  (2,562)   (0.09)  4,271    2,776     0.09
for loan losses
Pre-provision    $        $         $                          $                          $    
operating                                   $ 24,855 $                 $ 30,856 $              
earnings          28,862                               19,576  0.66             21,600    0.73
(Non-GAAP) ^(3)            21,479   0.73
                 $        $         $                $         $                          $    
Net Income                                  $                          $ 16,949 $              
(Loss) (GAAP)     19,803                    (4,159)  717       0.02             12,560    0.43
                           15,590   0.53
Impact of
adoption of new  4,967    3,228     0.11    5,453    3,544     0.12    -        -         -
accounting
standard ^(4)
Earnings less             $         $    
impact of new    $                          $        $         $                $         $    
accounting                                  1,294        4,262         $ 16,949 12,560         
standard          24,770   18,818   0.64                       0.14                       0.43
(Non-GAAP)
Operating
earnings
including the    $        $         $                          $                          $    
impact of the                               $ 28,231 $                 $ 21,961 $              
adoption of new   27,055                               21,771  0.74             15,818    0.54
accounting                 20,304   0.69
standard
(Non-GAAP)
Impact of
adoption of new  4,967    3,228     0.11    5,453    3,544     0.12    -        -         -
accounting
standard ^(4)
Operating
earnings less    $        $         $                          $                          $    
impact of new                               $ 33,684 $                 $ 21,961 $              
accounting        32,022                               25,315  0.86             15,818    0.54
standard                   23,532   0.80
(Non-GAAP)

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

 Quarter Ended   Pre-tax Amount      After-tax Amount ^(2)    Per Share ^(5)
 9/30/2013       $                   $                        $              
                  5,085               3,305                   0.11
 12/31/2013      4,017               2,611                    0.09
 3/31/2014       3,315               2,155                    0.07
 6/30/2014       2,541               1,652                    0.06
 ^(5) Per share amounts have been calculated using a sharecount that is
 consistent with the fully diluted sharecount for the quarter ended June 30,
 2013

 

SOURCE IBERIABANK Corporation

Website: http://www.iberiabank.com
Contact: Daryl G. Byrd, President and CEO (337) 521-4003, or John R. Davis,
Senior Executive Vice President (337) 521-4005
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