LAFAYETTE, La., April 20 /PRNewswire-FirstCall/ -- IBERIABANK Corporation , holding company of the 123-year-old IBERIABANK (http://www.iberiabank.com/) and IBERIABANK fsb (http://www.iberiabankfsb.com/), announced income available to common shareholders of $13 million for the quarter ended March 31, 2010, a decrease of 88% compared to the fourth quarter of 2009 ("linked quarter basis"), and an increase of 127% compared to the same quarter last year. Fully diluted earnings per share ("EPS") were $0.59 in the first quarter of 2010, a decrease of 89% on a linked quarter basis compared to the fourth quarter of 2009, and an increase of 64% compared to the same quarter last year. According to First Call, the consensus analyst EPS estimate for the Company for the first quarter of 2010 was $0.65.
Daryl G. Byrd, President and Chief Executive Officer commented, "The assimilation of our FDIC-assisted acquisitions continues to progress on target. Client reaction at the failed bank franchises since the acquisitions has been very favorable, and we experienced exceptional deposit growth in our legacy franchise during the first quarter as well." Byrd continued, "We have made substantial investments over the last two years in our new markets, strategic initiatives, infrastructure support, and balance sheet strength to capitalize on what we believe are once-in-a-lifetime opportunities. These investments have required near-term costs, but we believe our efforts will result in significant long-term benefits for our shareholders as these opportunities continue to be achieved."
Significant Influences on the Quarter Ended March 31, 2010 ---------------------------------------------------------- -- Orion Bank and Century Bank Acquisitions. The Company completed its FDIC-assisted acquisitions of selected assets and assumptions of selected liabilities associated with Orion Bank and Century Bank, FSB in the fourth quarter of 2009. During that quarter, the Company recorded a $170 million pre- tax gain for the acquisitions under FAS141R and incurred one- time pre-tax acquisition-related costs of $8 million, or $0.25 per share on an after-tax basis. -------------------------------------------------------------- In the first quarter of 2010, the Company recorded a $4 million pre-tax gain ($0.11 per share on an after-tax basis) related to additional FDIC settlement items and incurred one-time pre- tax acquisition-related costs of $2 million, or $0.07 per share on an after-tax basis. --Capital Strength. On March 8, 2010, the Company issued and sold 5,973,207 shares of common stock in an underwritten public offering at a price of $57.75 per share for net proceeds of $329 million. At March 31, 2010, the Company reported a tangible common equity ratio of 10.19%, a Tier 1 leverage ratio of 11.64%, and a total risk based capital ratio of 19.82%. At March 31, 2010, the Company had one of the highest capital ratios for publicly traded bank holding companies with assets in excess of $5 billion. ---------------------------------------------------------------- -- Asset Quality. The majority of assets acquired in the three FDIC-assisted transactions in 2009 are covered under FDIC loss sharing arrangements, and loan valuations incorporate estimated losses. As a result, a significant portion of the Company's nonperforming assets have minimum loss exposure. Total Nonperforming Assets ("NPAs") at March 31, 2010 were $926 million which included $853 million in NPAs covered under the FDIC loss sharing agreements ("covered assets"). Excluding the FDIC-assisted transactions, NPAs at March 31, 2010 were $73 million, or 1.01% of total assets, compared to 0.91% at year- end 2009 and 0.95% one year ago. ---------------------------------------------------------------- The Company reported net charge-offs totaling $5 million in the first quarter of 2010, or 0.36% of average loans on an annualized basis. On a similar basis, this figure compared to $2 million, or 0.18% of average loans, in the fourth quarter of 2009. The Company recorded a loan loss provision of $13 million, up 43% compared to $9 million on a linked quarter basis. The loan loss provision was elevated in the first quarter of 2010 primarily due to (1) two previously disclosed commercial relationships and (2) $8 million in additional reserves in excess of net charge-offs in the first quarter of 2010. The ratio of loan loss reserves to total loans was 1.11% at March 31, 2010, compared to 0.96% at December 31, 2009. Excluding the FDIC-assisted transactions, the loan loss reserve ratio was 1.53% at March 31, 2010, compared to 1.36% at December 31, 2009. -- Net Interest Margin and Liquidity. The Company's tax- equivalent net interest margin ("margin") improved one basis point on a linked quarter basis to 3.16% in the first quarter of 2010. The Company reported an average excess liquidity position during the first quarter of 2010 of approximately $543 million due to FDIC loan pay-downs and charge-offs, deposit growth, and proceeds of the equity offering. On a period-end basis, excess cash increased from $342 million at year-end 2009 to $1.1 billion at March 31, 2010. The aggregate excess cash position suppressed the margin approximately 33 basis points in the first quarter of 2010. ---------------------------------------------------------------- Balance Sheet and Yields
Total assets increased $692 million, or 7% since year-end 2009, to $10.4 billion at March 31, 2010. Total shareholders' equity increased $338 million, or 35%, since December 31, 2009. The Company's market capitalization was $1.6 billion at March 31, 2010, up 43% compared to year-end 2009.
Investments
Total investment securities decreased $42 million, or 3%, to $1.5 billion during the first quarter of 2010. As a percentage of total assets, the investment portfolio decreased from 16% at December 31, 2009 to 15% at March 31, 2010. The investment portfolio had a modified duration of 2.8 years at March 31, 2010, unchanged compared to year-end 2009. Based on projected prepayment speeds and other assumptions at March 31, 2010, the portfolio was expected to generate approximately $330 million in cash flows, or about 22% of the portfolio, over the next nine months. The average yield on investment securities decreased 43 basis points on a linked quarter basis, to 3.39% in the first quarter of 2010. The Company holds in its investment portfolio primarily government agency and municipal securities.
Loans
Since December 31, 2009, total loans decreased $45 million, or less than 1%. Excluding the FDIC-assisted transactions, loans increased $62 million, or 1%, over that period. Between the time of the acquisitions and March 31, 2010, Orion Bank and Century Bank-originated loans decreased approximately $122 million, or 9%, which was greater than the Company's expectations at closing.
The loan portfolio at March 31, 2010, was comprised of disparate components. Approximately 27% of the Company's $5.7 billion loan portfolio is comprised of assets covered under the FDIC's loss share agreements, which provide considerable protection against credit risk on those covered assets. The remaining, $4.2 billion in loans at March 31, 2010, were associated with the Company's legacy franchise, which were underwritten under the Company's guidelines.
Period-End Loan Volumes ($ in Millions) --------------------------------------- Loans IBERIABANK ---------- 3/31/09 6/30/09 9/30/09 12/31/09 3/31/10 ------- ------- ------- -------- ------- Commercial $1,806 $1,877 $1,935 $2,045 $2,103 Consumer 673 686 687 680 685 Mortgage 438 409 399 385 375 --- --- --- --- --- Non-FDIC Loans $2,917 $2,972 $3,021 $3,110 $3,163 Covered Loans $353 $1,670 $1,561 ---- ------ ------ Total Loans $3,374 $4,780 $4,724 Non-FDIC Growth 1% 2% 14% 3% 2% --- --- --- --- --- Loans IBERIABANK fsb -------------- Since 3/31/09 6/30/09 9/30/09 12/31/09 3/31/10 Acq. ------- ------- ------- -------- ------- ---- Commercial $536 $554 $621 $704 $722 62% Consumer 233 234 236 234 228 -5% Mortgage 72 69 68 68 65 -3% --- --- --- --- --- --- Non-FDIC Loans $841 $857 $925 $1,006 $1,015 35% Covered Loans Total Loans Non-FDIC Growth 0% 2% 8% 9% 1% --- --- --- --- ---
On a linked quarter basis, the yield on average total loans increased 29 basis points to 5.85%. Yields on mortgage and consumer loans increased 72 and 67 basis points, respectively, on a linked quarter basis. Over this period, the yield on commercial loans increased eight basis points.
Commercial real estate ("CRE") loans equated to 43% of total loans, though a significant portion of the total CRE portfolio is covered under the loss share agreements with the FDIC. In addition, much of the acquired CRE portfolio was purchased at substantial discounts from the FDIC that are expected to offset much of the remaining credit exposure and servicing costs. Finally, a portion of the CRE portfolio is comprised of legacy CRE loans, underwritten under the Company's guidelines. At March 31, 2010, the average loan size in the legacy CRE portfolio was approximately $607,000, and loans past due 30 days or more (including nonaccruing loans) equated to 2.79% of the CRE loans outstanding (1.72% at December 31, 2009). The majority of the increase in CRE loans past due figure was related to two previously disclosed commercial relationships. Approximately 61% of the legacy CRE portfolio was based in southern Louisiana, 14% in northern Louisiana, and 25% in other markets. At March 31, 2010, many of the local markets in southern Louisiana remained economically healthy compared to the national economy. Excluding construction-related credits and FDIC-assisted loans, at March 31, 2010, approximately 46% of the Company's CRE portfolio was owner-occupied and 54% was non-owner occupied. Non-owner occupied CRE loans equated to 76% of total risk based capital at March 31, 2010.
At March 31, 2010, approximately 13% of the Company's direct consumer loan portfolio (net of discounts) was covered under the FDIC loss share agreements. The remaining legacy consumer portfolio maintained favorable asset quality. The average credit score of the legacy consumer loan portfolio was 719, and loans past due 30 days or more were 1.32% at March 31, 2010 (unchanged compared to December 31, 2009). Legacy home equity loans totaled $336 million at March 31, 2010, with 1.45% past due 30 days or more (1.38% at December 31, 2009). Legacy home equity lines of credit totaled $190 million, with 1.14% past due 30 days or more (0.98% at December 31, 2009). Annualized net charge-offs in this portfolio were 0.47% of loans in the first quarter of 2010 (0.66% in the fourth quarter of 2009). The weighted average loan-to-value at origination for this portfolio over the last three years was approximately 68%.
The indirect automobile portfolio totaled $260 million at March 31, 2010, up less than 1% compared to December 31, 2009. This portfolio equated to 5% of total loans and had 1.01% in loans past due 30 days or more (including nonaccruing loans) at March 31, 2010 (an improvement from 1.19% at December 31, 2009). Annualized net charge-offs in the indirect loan portfolio equated to approximately 0.31% of average loans in the first quarter of 2010 (an improvement from 0.45% in the fourth quarter of 2009). Approximately 87% of the indirect automobile portfolio was in the Acadiana region of Louisiana, which currently experiences a relatively favorable unemployment rate (5.5% in February 2010, the 10th lowest unemployment rate of 372 MSAs in the United States).
Deposits
During the first quarter of 2010, total deposits surged $399 million, or 5%, and $274 million, or 6% excluding the FDIC transactions. Between the time of the acquisitions and April 19, 2010, Orion Bank and Century Bank-originated deposits, excluding brokered deposits, increased approximately $274 million, or 13%, which was more favorable than the Company's expectations at closing.
Period-End Deposit Volumes ($ in Millions) ------------------------------------------ Deposits IBERIABANK ---------- 3/31/09 6/30/09 9/30/09 12/31/09 3/31/10 ------- ------- ------- -------- ------- Noninterest $452 $451 $501 $832 $798 NOW Accounts 747 750 764 1,038 1,088 Savings/MMkt 851 888 1,048 1,948 2,198 Time Deposits 1,009 1,014 1,356 2,589 2,608 ----- ----- ----- ----- ----- Total Deposits $3,059 $3,103 $3,669 $6,407 $6,692 Growth 8% 1% 18% 75% 4% --- --- --- --- --- Deposits IBERIABANK fsb -------------- Since 3/31/09 6/30/09 9/30/09 12/31/09 3/31/10 Acq. ------- ------- ------- -------- ------- ---- Noninterest $129 $126 $128 $153 $146 52% NOW Accounts 205 198 195 203 200 4% Savings/MMkt 220 240 279 305 371 110% Time Deposits 520 507 504 488 545 1% --- --- --- --- --- --- Total Deposits $1,074 $1,071 $1,105 $1,149 $1,263 26% Growth -7% 0% 3% 4% 10% --- --- --- --- ---
Between December 31, 2009 and March 31, 2010, deposits at IBERIABANK increased $285 million, or 4%, and $160 million, or 5% excluding Orion Bank and Century Bank. Deposits at IBERIABANK fsb increased $114 million, or 10% over this same period.
Noninterest bearing deposits totaled $945 million at March 31, 2010, down $41 million, or 4%, compared to December 31, 2009. Excluding the FDIC-assisted transactions, noninterest bearing deposits decreased $44 million, or 6%, over this period. On a linked quarter basis, average noninterest bearing deposits increased $135 million, or 17%, and interest-bearing deposits increased $1.4 billion, or 26%. The rate on average interest bearing deposits in the first quarter of 2010 was 1.38%, a decrease of 37 basis points on a linked quarter basis, compared to a 28 basis point decline in the cost of average interest bearing liabilities. The Company had only $25 million in short-term borrowings at March 31, 2010, or approximately 0.3% of total liabilities.
Interest Rate Risk Position
The Company's interest rate risk modeling at March 31, 2010 including the Orion Bank and Century Bank acquisitions indicated the Company is asset sensitive over a 12-month time frame. A 100 basis point instantaneous and parallel upward shift in interest rates is estimated to increase net interest income over 12 months by approximately 7.7%. Similarly, a 100 basis point decrease in interest rates is expected to decrease net interest income by approximately 1.3%. At March 31, 2010, approximately 52% of the Company's loan portfolio had fixed interest rates. Eliminating fixed rate loans that mature within a one-year time frame reduces this percentage to 47%. Approximately 69% of the Company's time deposit base will re-price within 12 months from March 31, 2010.
Quarterly Average Yields/Cost (Taxable Equivalent Basis) -------------------------------------------------------- IBERIABANK ---------- 1Q09 2Q09 3Q09 4Q09 1Q10 ---- ---- ---- ---- ---- Earning Asset Yield 4.92% 4.91% 4.65% 4.64% 4.36% Cost Of Int- Bearing Liabs 2.10% 1.97% 1.84% 1.77% 1.39% ---- ---- ---- ---- ---- Net Interest Spread 2.82% 2.94% 2.81% 2.87% 2.97% Net Interest Margin 3.15% 3.26% 3.09% 3.15% 3.17% ---- ---- ---- ---- ---- IBERIABANK fsb -------------- 1Q09 2Q09 3Q09 4Q09 1Q10 ---- ---- ---- ---- ---- Earning Asset Yield 5.41% 5.29% 4.79% 4.89% 4.93% Cost Of Int- Bearing Liabs 2.55% 2.32% 2.13% 1.95% 1.87% ---- ---- ---- ---- ---- Net Interest Spread 2.86% 2.97% 2.66% 2.94% 3.06% Net Interest Margin 3.19% 3.28% 2.97% 3.26% 3.33% ---- ---- ---- ---- ---- Operating Results
Tax-equivalent net interest income increased $12 million, or 19% on a linked quarter basis. Average earning assets increased $1.5 billion (up 21%) and the tax-equivalent net interest spread and margin improved eight and one basis points, respectively, on a linked quarter basis. The average earning asset yield decreased 19 basis points. The Company's excess liquidity position increased from approximately $342 million at December 31, 2009, to $1.1 billion at March 31, 2010 ($172 million in Fed Funds Sold and $892 million in interest bearing cash). The cost of interest bearing deposits and liabilities declined 37 and 28 basis points, respectively.
Aggregate noninterest income decreased $168 million, or 86%, on a linked quarter basis. The primary changes on a linked quarter basis were (1) a $170 million gain recognized on completion of the Orion Bank and Century Bank acquisitions in the fourth quarter of 2009 compared to $4 million in the first quarter of 2010, and (2) a $1 million decline in gains on the sale of mortgage loans on a linked quarter basis.
The Company's mortgage origination business experienced seasonal softness in the first half of the first quarter of 2010. The Company originated $295 million in mortgage loans during the first quarter of 2010, down $56 million, or 16%, on a linked quarter basis. Client loan refinancing opportunities accounted for approximately 27% of mortgage loan originations in the first quarter of 2010, compared to 30% in the fourth quarter of 2009. The Company sold $287 million in mortgage loans during this period, down $48 million, or 14%, compared to the fourth quarter of 2009. Sales margins improved on a linked quarter basis. Gains on the sale of mortgage loans totaled $7 million in the first quarter of 2010, a decrease of $1 million, or 13%, on a linked quarter basis. The mortgage pipeline was approximately $143 million at March 31, 2010, and has since risen to approximately $169 million at April 16, 2010. In recent weeks, loan refinancings accounted for approximately 29% of mortgage activity.
Noninterest expense decreased $8 million, or 11%, on a linked quarter basis. A substantial portion of the decrease was associated with a $10 million goodwill impairment charge in the fourth quarter of 2009. Salaries and benefits expense increased $2 million, or 4%, on a linked quarter basis. Increases in base compensation, payroll taxes, and hospitalization (resulting primarily from a larger employee base after the acquisitions and recruit additions) were partially offset by reductions in contract/temporary labor expense, bonus accruals, mortgage commissions, and merger-related compensation expenses. All other expenses except the goodwill impairment declined $2 million on a linked quarter basis. In aggregate, one-time merger-related costs (included in some of the previously described expense categories) totaled $2 million in the first quarter of 2010, compared to $8 million in the fourth quarter. The combined tangible efficiency ratio of the Company's bank subsidiaries was approximately 52.1% in the first quarter of 2010.
Diluted net income to common shareholders in the first quarter of 2010 totaled $13 million, down 88% on a linked quarter basis, and up 127% compared to the same quarter last year. Return on average assets ("ROA") was 0.53% for the first quarter of 2009, return on average common equity ("ROE") was 4.98%, and return on average tangible common equity was 6.94%.
Asset Quality
The Company's credit quality statistics were significantly affected by the FDIC-assisted acquisitions, though the loss share arrangements with the FDIC and discounts on the assets acquired are expected to provide substantial protection against loss on those assets. Under the loss share agreements, the FDIC will cover 80% of the losses on the disposition of loans and OREO up to $970 million, or $776 million (the Company would cover the remaining $194 million amount). In addition, the FDIC will cover 95% of losses that exceed that $970 million threshold level. The Company estimates its maximum loss exposure will be approximately $297 million, assuming all loans experience 100% losses with no recoveries, over the loss share period. The Company received a discount of approximately $500 million on the purchase of assets in the transactions.
Excluding the FDIC-assisted transactions, NPAs and loans past due 30 days or more increased marginally during the first quarter of 2010 at the Company. The legacy Company had no troubled debt restructurings at March 31, 2010, totaling $7 million.
Summary Asset Quality Statistics -------------------------------- ($thousands) IBERIABANK ---------- 3Q09* 4Q09** 1Q10** ----- ------ ------ Nonaccruals $13,600 $11,899 $30,054 OREO & Foreclosed 2,277 4,000 4,012 90+ Days Past Due 1,999 3,193 1,852 ----- ----- ----- Nonperforming Assets $17,877 $19,092 $35,918 NPAs/Assets 0.42% 0.38% 0.64% NPAs/(Loans + OREO) 0.59% 0.61% 1.13% LLR/Loans 1.05% 1.10% 1.38% Net Charge-Offs/ Loans 1.21% 0.04% 0.08% ---- ---- ---- ($thousands) IBERIABANK fsb -------------- 3Q09 4Q09 1Q10 ---- ---- ---- Nonaccruals $22,655 $27,947 $24,570 OREO & Foreclosed 11,192 11,281 11,436 90+ Days Past Due 2,651 1,767 1,316 ----- ----- ----- Nonperforming Assets $36,498 $40,996 $37,322 NPAs/Assets 2.43% 2.68% 2.27% NPAs/(Loans + OREO) 3.90% 4.03% 3.64% LLR/Loans 1.86% 2.12% 1.98% Net Charge-Offs/ Loans 6.16% 0.78% 1.41% ---- ---- ---- ($thousands) IBERIABANK Corp. ---------------- 3Q09* 4Q09** 1Q10** ----- ------ ------ Nonaccruals $36,256 39,847 $54,624 OREO & Foreclosed 13,469 15,281 15,448 90+ Days Past Due 4,650 $4,960 3,168 ----- ------ ----- Nonperforming Assets $54,375 60087.703 $73,240 NPAs/Assets 0.93% 0.91% 1.01% NPAs/(Loans + OREO) 1.38% 1.45% 1.75% LLR/Loans 1.25% 1.36% 1.53% Net Charge-Offs/ Loans 2.38% 0.22% 0.41% ---- ---- ---- * Excludes the impact of the CapitalSouth acquisition ** Excludes the impact of all FDIC-assisted acquisitions
The FDIC-assisted transactions accounted for $853 million, or 92% of the Company's $926 million in total NPAs at March 31, 2010, and the legacy IBERIABANK Corporation franchise accounted for the remaining $73 million in NPAs. Excluding the FDIC-assisted transactions, NPAs equated to 1.01% of total assets at March 31, 2010, compared to 0.91% at December 31, 2009. On this same basis, total loans past due 30 days or more (including nonaccruing loans) represented 2.04% of total loans at March 31, 2010, up 35 basis points, compared to 1.69% of total loans at December 31, 2009.
Loans Past Due Loans Past Due 30 Days Or More And Nonaccruing Loans As % Of Loans Outstanding By Entity: 12/31/08 3/31/09 6/30/09 9/30/09 12/31/09 3/31/10 ---------- -------- ------- ------- ------- -------- ------- IBERIABANK (Ex-FDIC Covered Assets) 30+ days past due 0.69% 0.31% 0.33% 0.32% 0.58% 0.67% Non-accrual 0.22% 0.54% 0.47% 0.45% 0.38% 0.94% ---- ---- ---- ---- ---- ---- Total Past Due 0.92% 0.85% 0.80% 0.77% 0.96% 1.61% IBERIABANK fsb 30+ days past due 1.57% 1.85% 1.73% 1.09% 1.12% 0.88% Non-accrual 2.53% 2.12% 1.68% 2.45% 2.78% 2.42% ---- ---- ---- ---- ---- ---- Total Past Due 4.10% 3.97% 3.41% 3.54% 3.90% 3.30% Consolidated (Ex-FDIC Covered Assets) 30+ days past due 0.89% 0.65% 0.64% 0.50% 0.72% 0.73% Non-accrual 0.74% 0.90% 0.74% 0.92% 0.97% 1.31% ---- ---- ---- ---- ---- ---- Total Past Due 1.63% 1.55% 1.38% 1.42% 1.69% 2.04% ---------- ---- ---- ---- ---- ---- ---- CapitalSouth Only 30+ days past due 7.62% 7.59% 10.01% Non-accrual 24.64% 29.68% 23.97% ----- ----- ----- Total Past Due 32.26% 37.27% 33.98% Orion Only 30+ days past due 16.54% 8.56% Non-accrual 57.58% 59.86% ----- ----- Total Past Due 74.12% 68.42% Century Only 30+ days past due 10.52% 10.81% Non-accrual 53.50% 43.73% ----- ----- Total Past Due 64.02% 54.54% Consolidated With FDIC Covered Assets 30+ days past due 1.08% 4.37% 3.09% Non-accrual 2.87% 15.45% 14.23% ---- ----- ----- Total Past Due 3.95% 19.82% 17.32% ---------- ---- ----- -----
At March 31, 2010, the allowance for loan losses was 1.11%, up compared to 0.96% at December 31, 2009. In accordance with generally accepted accounting principles, the assets acquired in the FDIC-assisted transactions were marked to market at consummation, including estimated loan impairment. Excluding the acquired loans, the Company's ratio of loan loss reserves to loans increased from 1.25% at September 30, 2009, to 1.36% at December 31, 2009, and to 1.53% at March 31, 2010.
The Company reported net charge-offs of $5 million in the first quarter of 2010, compared to $2 million in the fourth quarter of 2009. The ratio of net charge-offs to average loans was 0.36% in the first quarter of 2010, compared to 0.18% in the fourth quarter of 2009. The elevated charge-offs in the first quarter were primarily due to valuations on appraisals of collateral securing various loans. The Company recorded a $13 million loan loss provision in the first quarter of 2010, compared to $9 million in the fourth quarter of 2009 and covered net charge-offs by 2.6 times. Management considers the loan loss reserve adequate to absorb credit losses inherent in the loan portfolio at March 31, 2010.
Capital Position
The Company maintains strong capital ratios compared to peers. The equity-to-assets ratio was 12.43% at March 31, 2010, compared to 9.84% at December 31, 2009. At March 31, 2010, the Company reported a tangible common equity ratio of 10.19%, compared to 7.35% at December 31, 2009 and 7.51% one year ago. The Company's Tier 1 leverage ratio was 11.64%, compared to 9.90% at December 31, 2009 and 9.16% one year ago. The Company's total risk based capital ratio was 19.82%, compared to 13.50% at December 31, 2009 and 13.58% one year ago. The Company's tangible common equity to risk weighted assets ratio was 16.99%, compared to 11.81% at December 31, 2009, and 9.78% one year ago.
On March 8, 2010, the Company issued and sold 5,973,207 shares of common stock for net proceeds of approximately $329 million in a public underwritten equity offering. Shares were sold in the offering at a price of $57.75 per share. At the time of the transaction's pricing, the offer price was a 0.3% discount to the last trading price. The shares were sold at a price that was 2% below the Company's 52-week high trading price. The Company's closing stock price on April 20, 2010 was $62.62 per share, or approximately 8% above the closing price of the offering.
Preliminary Regulatory Capital Ratios At March 31, 2010 Well IBERIABANK Capital Ratio Capitalized IBERIABANK IBERIABANK fsb Corporation ------------------------------------------------------------------------- Tier 1 Leverage 5.00% 6.97% 9.61% 11.64% Tier 1 Risk Based 6.00% 12.11% 12.31% 18.36% Total Risk Based 10.00% 13.57% 13.55% 19.82%
At March 31, 2010, book value per share was $48.29, up $2.25, or 5%, compared to December 31, 2009, and up 18% compared to one year ago. Tangible book value per share improved $5.07, or 15%, over that period to $38.60, and up 56% compared to one year ago.
On March 15, 2010, 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 2.17%, based on the closing stock price of the Company's common stock on April 20, 2010 of $62.62 per share. This price equated to 1.30 times March 31, 2010 book value per share of $48.29 and 1.62 times tangible book value per share of $38.60.
IBERIABANK Corporation
IBERIABANK Corporation is a multi-bank financial holding company with 210 combined offices, including 136 bank branch offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, and Florida, 26 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 48 locations in 12 states. During the first quarter of 2010, the Company opened banking offices in Deer Park in the Houston MSA and on Metairie Road in New Orleans, and a mortgage office in Fort Myers, Florida.
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 April 20, 2010.
The following twelve investment firms currently provide equity research coverage on IBERIABANK Corporation:
-- B. Riley & Company -- FIG Partners, LLC -- Howe Barnes Hoefer & Arnett, Inc. -- Keefe, Bruyette & Woods -- Raymond James & Associates, Inc. -- Robert W. Baird & Company -- Soleil Securities Corporation/Tenner Investment Research -- Stephens, Inc. -- Sterne, Agee & Leach -- Stifel Nicolaus & Company -- SunTrust Robinson-Humphrey -- Wunderlich Securities Conference Call
In association with this earnings release, the Company will host a live conference call to discuss the financial results for the quarter just completed. The telephone conference call will be held on Wednesday, April 21, 2010, beginning at 9:30 a.m. Central Time by dialing 1-800-288-9626. The confirmation code for the call is 152557. A replay of the call will be available until midnight Central Time on April 28, 2010 by dialing 1-800-475-6701. The confirmation code for the replay is 152557. 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, http://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 nonrecurring transactions. 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.
Forward Looking Statements
To the extent that statements in this press release relate to future plans, objectives, financial results or performance of IBERIABANK Corporation, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which are based on management's current information, estimates and assumptions and the current economic environment, are generally identified by the use of the words "plan", "believe", "expect", "intend", "anticipate", "estimate", "project" or similar expressions. IBERIABANK Corporation's actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties.
Actual results could differ materially because of factors such as the current level of market volatility and our ability to execute our growth strategy, including the availability of future FDIC-assisted failed bank opportunities, unanticipated losses related to the integration of acquired businesses and assets and assumed liabilities in FDIC-assisted transactions, adjustments of fair values of acquired assets and assumed liabilities and of deferred taxes in FDIC-assisted acquisitions, 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 infrastructure, hurricanes and other adverse weather events, the volatility and low 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 and other filings with the Securities and Exchange Commission, available at the SEC's website, http://www.sec.gov/, and the Company's website, http://www.iberiabank.com/. All information in this release 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.
IBERIABANK CORPORATION FINANCIAL HIGHLIGHTS For The Quarter Ended March 31, --------- 2010 2009 % Change ---- ---- -------- Income Data (in thousands): Net Interest Income $69,206 $36,287 91% Net Interest Income (TE) (1) 71,039 37,623 89% Net Income 13,004 9,145 42% Earnings Available to Common Shareholders- Basic 13,004 5,795 124% Earnings Available to Common Shareholders- Diluted 12,752 5,626 127% Per Share Data: Earnings Available to Common Shareholders -Basic $0.60 $0.36 66% Earnings Available to Common Shareholders -Diluted 0.59 0.36 64% Book Value Per Common Share 48.29 40.98 18% Tangible Book Value Per Common Share(2) 38.60 24.82 56% Cash Dividends 0.34 0.34 - Number of Shares Outstanding: Basic Shares (Average) 21,928,397 15,928,634 38% Diluted Shares (Average) 21,690,564 15,728,518 38% Book Value Shares (Period End) (3) 26,753,464 16,022,718 67% Key Ratios: (4) Return on Average Assets 0.53% 0.67% Return on Average Common Equity 4.98% 3.59% Return on Average Tangible Common Equity (2) 6.94% 6.35% Net Interest Margin (TE) (1) 3.16% 3.02% Efficiency Ratio 68.7% 73.0% Tangible Efficiency Ratio (TE) (1) (2) 66.1% 69.9% Average Loans to Average Deposits 74.4% 93.2% Nonperforming Assets to Total Assets (5) 8.91% 0.95% Allowance for Loan Losses to Loans 1.11% 1.11% Net Charge-offs to Average Loans 0.36% 0.24% Average Equity to Average Total Assets 10.72% 13.35% Tier 1 Leverage Ratio 11.64% 9.16% Common Stock Dividend Payout Ratio 69.9% 94.0% Tangible Common Equity Ratio 10.19% 7.51% Tangible Common Equity to Risk-Weighted Assets 16.99% 9.78% For The Quarter Ended December 31, ------------ % 2009 Change ---- ------- Income Data (in thousands): Net Interest Income $57,556 20% Net Interest Income (TE) (1) 59,452 19% Net Income 108,902 (88%) Earnings Available to Common Shareholders- Basic 108,902 (88%) Earnings Available to Common Shareholders- Diluted 106,185 (88%) Per Share Data: Earnings Available to Common Shareholders -Basic $5.27 (89%) Earnings Available to Common Shareholders -Diluted 5.23 (89%) Book Value Per Common Share 46.04 5% Tangible Book Value Per Common Share (2) 33.53 15% Cash Dividends 0.34 - Number of Shares Outstanding: Basic Shares (Average) 20,617,155 6% Diluted Shares (Average) 20,301,703 7% Book Value Shares (Period End) (3) 20,797,218 29% Key Ratios: (4) Return on Average Assets 5.29% Return on Average Common Equity 46.94% Return on Average Tangible Common Equity (2) 66.26% Net Interest Margin (TE) (1) 3.15% Efficiency Ratio 29.6% Tangible Efficiency Ratio (TE) (1) (2) 28.9% Average Loans to Average Deposits 82.1% Nonperforming Assets to Total Assets (5) 10.43% Allowance for Loan Losses to Loans 0.96% Net Charge-offs to Average Loans 0.18% Average Equity to Average Total Assets 11.24% Tier 1 Leverage Ratio 9.90% Common Stock Dividend Payout Ratio 6.5% Tangible Common Equity Ratio 7.35% Tangible Common Equity to Risk-Weighted Assets 11.81% (1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%. (2) Tangible calculations eliminate the effect of goodwill and acquisition related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable. (3) Shares used for book value purposes exclude shares held in treasury at the end of the period. (4) All ratios are calculated on an annualized basis for the period indicated. (5) Nonperforming assets consist of nonaccruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets. IBERIABANK CORPORATION CONDENSED CONSOLIDATED FINANCIAL INFORMATION (dollars in thousands except per share data) BALANCE SHEET (End of Period) March 31, ----------- ----------------- December 31, % 2010 2009 Change 2009 ---- ---- ------- ---- ASSETS ------ Cash and Due From Banks $95,849 $88,010 8.9% $94,674 Interest- bearing Deposits in Banks 892,369 75,351 1084.3% 80,723 ------- ------ ------ ------ Total Cash and Equivalents 988,218 163,361 504.9% 175,397 Investment Securities Available for Sale 1,301,185 929,131 40.0% 1,320,476 Investment Securities Held to Maturity 237,551 88,832 167.4% 260,361 ------- ------ ----- ------- Total Investment Securities 1,538,736 1,017,963 51.2% 1,580,837 Mortgage Loans Held for Sale 74,225 81,077 (8.5%) 66,945 Loans, Net of Unearned Income 5,739,322 3,757,959 52.7% 5,784,365 Allowance for Loan Losses (63,875) (41,662) 53.3% (55,768) ------- ------- ---- ------- Loans, net 5,675,447 3,716,297 52.7% 5,728,597 Loss Share Receivable 917,246 - 100.0% 1,034,734 Premises and Equipment 142,961 131,235 8.9% 137,426 Goodwill and Other Intangibles 259,144 259,060 0.0% 260,144 Mortgage Servicing Rights 234 241 (3.0%) 229 Other Assets 796,104 178,839 345.2% 716,093 ------- ------- ----- ------- Total Assets $10,392,315 $5,548,073 87.3% $9,700,402 =========== ========== ==== ========== LIABILITIES AND SHAREHOLDERS' EQUITY -------------- Noninterest- bearing Deposits $944,657 $580,607 62.7% $985,253 Interest- bearing Deposits 7,010,226 3,552,873 97.3% 6,570,895 --------- --------- ---- --------- Total Deposits 7,954,883 4,133,480 92.5% 7,556,148 Short-term Borrowings 25,000 - 100.0% 90,000 Securities Sold Under Agreements to Repurchase 178,740 142,149 25.7% 173,351 Long-term Debt 738,315 544,138 35.7% 745,864 Other Liabilities 203,464 72,720 179.8% 180,824 ------- ------ ----- ------- Total Liabilities 9,100,402 4,892,487 86.0% 8,746,187 Total Shareholders' Equity 1,291,913 655,586 97.1% 954,215 --------- ------- ---- ------- Total Liabilities and Shareholders' Equity $10,392,315 $5,548,073 87.3% $9,700,402 =========== ========== ==== ========== For The Three Months Ended INCOME STATEMENT March 31, ---------- --------- % 2010 2009 Change ---- ---- ------- Interest Income $97,620 $60,321 61.8% Interest Expense 28,414 24,034 18.2% ------ ------ ---- Net Interest Income 69,206 36,287 90.7% Provision for Loan Losses 13,201 3,032 335.3% ------ ----- ----- Net Interest Income After Provision for Loan Losses 56,005 33,255 68.4% Service Charges 5,901 5,272 11.9% ATM /Debit Card Fee Income 2,325 1,714 35.7% BOLI Proceeds and Cash Surrender Value Income 709 713 (0.6%) Gain on Acquisition 3,781 - 100.0% Gain on Sale of Loans, net 7,373 8,529 (13.6%) Gain (Loss) on Sale of Investments, net 922 3 29226.0% Title Revenue 3,703 4,479 (17.3%) Broker Commissions 1,212 1,214 (0.2%) Other Noninterest Income 2,427 1,806 34.4% ----- ----- ---- Total Noninterest Income 28,353 23,730 19.5% Salaries and Employee Benefits 35,831 24,228 47.9% Occupancy and Equipment 7,593 5,632 34.8% Amortization of Acquisition Intangibles 1,010 622 62.5% Other Noninterest Expense 22,566 13,310 69.5% ------ ------ ---- Total Noninterest Expense 67,000 43,792 53.0% Income Before Income Taxes 17,358 13,193 31.6% Income Taxes 4,354 4,048 7.6% ----- ----- --- Net Income $13,004 $9,145 42.2% ======= ====== ==== Preferred Stock Dividends - (3,350) (100.0%) --- ------ ======== Earnings Available to Common Shareholders -Basic 13,004 5,795 124.4% ====== ===== ===== Earnings Allocated to Unvested Restricted Stock (252) (169) 48.9% ---- ---- ==== Earnings Available to Common Shareholders -Diluted 12,752 5,626 126.7% ====== ===== ===== Earnings Per Share, diluted $0.59 $0.36 64.4% ===== ===== ==== IBERIABANK CORPORATION CONDENSED CONSOLIDATED FINANCIAL INFORMATION (dollars in thousands except per share data) For The Quarter Ended --------------------- BALANCE SHEET (Average) March 31, December 31, September 30, ----------------------- 2010 2009 2009 ---- ---- ---- ASSETS ------ Cash and Due From Banks $92,145 $75,435 $59,975 Interest-bearing Deposits in Banks 387,929 305,371 299,591 Investment Securities 1,569,301 1,327,579 1,074,896 Mortgage Loans Held for Sale 50,810 58,785 60,350 Loans, Net of Unearned Income 5,737,876 5,070,584 4,049,351 Allowance for Loan Losses (55,133) (49,442) (45,711) Loss Share Receivable 1,033,377 590,804 38,784 Other Assets 1,054,224 787,488 592,455 --------- ------- ------- Total Assets $9,870,529 $8,166,604 $6,129,691 ========== ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY ----------------------------- Noninterest-bearing Deposits $939,776 $804,918 $583,229 Interest-bearing Deposits 6,772,432 5,368,692 3,864,927 --------- --------- --------- Total Deposits 7,712,208 6,173,610 4,448,156 Short-term Borrowings 32,769 31,054 2,174 Securities Sold Under Agreements to Repurchase 168,303 188,339 210,115 Long-term Debt 736,458 681,789 536,877 Other Liabilities 162,675 174,133 94,189 ------- ------- ------ Total Liabilities 8,812,413 7,248,925 5,291,511 Total Shareholders' Equity 1,058,116 917,679 838,180 --------- ------- ------- Total Liabilities and Shareholders' Equity $9,870,529 $8,166,604 $6,129,691 ========== ========== ========== 2010 2009 ---- --------- First Fourth Third INCOME STATEMENT Quarter Quarter Quarter ---------------- ------- ------- ------- Interest Income $97,620 $85,538 $63,554 Interest Expense 28,414 27,982 22,888 ------ ------ ------ Net Interest Income 69,206 57,556 40,666 Provision for Loan Losses 13,201 9,260 25,295 ------ ----- ------ Net Interest Income After Provision for Loan Losses 56,005 48,296 15,371 Total Noninterest Income 28,353 196,353 80,874 Total Noninterest Expense 67,000 75,114 54,540 ------ ------ ------ Income Before Income Taxes 17,358 169,535 41,705 Income Taxes 4,354 60,633 16,976 ----- ------ ------ Net Income $13,004 $108,902 $24,729 ======= ======== ======= Preferred Stock Dividends - - - === === === Earnings Available to Common Shareholders -Basic $13,004 $108,902 $24,729 ======= ======== ======= Earnings Allocated to Unvested Restricted Stock (252) (2,717) (603) ---- ------ ---- Earnings Available to Common Shareholders -Diluted $12,752 $106,185 $24,126 ======= ======== ======= Earnings Per Share, basic $0.60 $5.27 $1.22 ===== ===== ===== Earnings Per Share, diluted $0.59 $5.23 $1.21 ===== ===== ===== Book Value Per Share $48.29 $46.04 $41.41 ====== ====== ====== Return on Average Assets 0.53% 5.29% 1.60% Return on Average Common Equity 4.98% 46.94% 11.66% Return on Average Tangible Common Equity 6.94% 66.26% 17.10% For The Quarter Ended --------------------- BALANCE SHEET (Average) June 30, March 31, ----------------------- 2009 2009 ---- ---- ASSETS ------ Cash and Due From Banks $78,939 $78,204 Interest-bearing Deposits in Banks 61,115 130,584 Investment Securities 1,033,274 995,766 Mortgage Loans Held for Sale 89,298 81,910 Loans, Net of Unearned Income 3,788,273 3,743,032 Allowance for Loan Losses (42,970) (40,711) Loss Share Receivable - - Other Assets 585,016 583,373 ------- ------- Total Assets $5,592,945 $5,572,158 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ Noninterest-bearing Deposits $570,298 $554,269 Interest-bearing Deposits 3,558,739 3,461,866 --------- --------- Total Deposits 4,129,037 4,016,135 Short-term Borrowings 22,489 45,760 Securities Sold Under Agreements to Repurchase 149,664 141,186 Long-term Debt 541,557 552,838 Other Liabilities 86,819 72,430 ------ ------ Total Liabilities 4,929,566 4,828,349 Total Shareholders' Equity 663,379 743,809 ------- ------- Total Liabilities and Shareholders' Equity $5,592,945 $5,572,158 ========== ========== 2009 ---- Second First INCOME STATEMENT Quarter Quarter ---------------- ------- ------- Interest Income $60,974 $60,321 Interest Expense 22,698 24,034 ------ ------ Net Interest Income 38,276 36,287 Provision for Loan Losses 7,783 3,032 ----- ----- Net Interest Income After Provision for Loan Losses 30,493 33,255 Total Noninterest Income 32,030 23,730 Total Noninterest Expense 49,814 43,792 ------ ------ Income Before Income Taxes 12,709 13,193 Income Taxes 4,235 4,048 ----- ----- Net Income $8,474 $9,145 ====== ====== Preferred Stock Dividends - (3,350) === ====== Earnings Available to Common Shareholders -Basic $8,474 $5,795 ====== ====== Earnings Allocated to Unvested Restricted Stock (250) (169) ---- ---- Earnings Available to Common Shareholders -Diluted $8,224 $5,626 ====== ====== Earnings Per Share, basic $0.53 $0.36 ===== ===== Earnings Per Share, diluted $0.52 $0.36 ===== ===== Book Value Per Share $41.13 $40.98 ====== ====== Return on Average Assets 0.61% 0.67% Return on Average Common Equity 5.11% 3.59% Return on Average Tangible Common Equity 8.75% 6.35% IBERIABANK CORPORATION CONDENSED CONSOLIDATED FINANCIAL INFORMATION (dollars in thousands) LOANS RECEIVABLE March 31, December 31, ------------ --------- % 2010 2009 Change 2009 ---- ---- ------- ---- Residential Mortgage Loans: Residential 1-4 Family $953,584 $476,899 100.0% $975,395 Construction/ Owner Occupied 25,516 32,665 (21.9%) 32,857 ------ ------ ------- ------ Total Residential Mortgage Loans 979,100 509,564 92.1% 1,008,252 Commercial Loans: Real Estate 2,487,698 1,551,790 60.3% 2,499,843 Business 1,222,078 790,027 54.7% 1,218,014 --------- ------- ---- --------- Total Commercial Loans 3,709,776 2,341,817 58.4% 3,717,857 Consumer Loans: Indirect Automobile 260,470 264,019 (1.3%) 259,339 Home Equity 643,891 503,979 27.8% 649,821 Automobile 30,483 28,141 8.3% 30,552 Credit Card Loans 41,738 38,259 9.1% 44,561 Other 73,864 72,180 2.3% 73,983 ------ ------ --- ------ Total Consumer Loans 1,050,446 906,578 15.9% 1,058,256 --------- ------- ---- --------- Total Loans Receivable 5,739,322 3,757,959 52.7% 5,784,365 ==== Allowance for Loan Losses (63,875) (41,662) (55,768) ------- ------- ------- Loans Receivable, Net $5,675,447 $3,716,297 $5,728,597 ========== ========== ========== ASSET QUALITY DATA March 31, December 31, -------- --------- % 2010 2009 Change 2009 ---- ---- ------- ---- Nonaccrual Loans $816,718 $33,750 2319.9% $893,441 Foreclosed Assets 15 9 70.8% 35 Other Real Estate Owned 50,126 16,019 212.9% 74,056 Accruing Loans More Than 90 Days Past Due 59,575 2,952 1918.2% 43,952 ------ ----- ------ ------ Total Nonperforming Assets $926,434 $52,730 1656.9% $1,011,485 ======== ======= ====== ========== Nonperforming Assets to Total Assets 8.91% 0.95% 838.0% 10.43% Nonperforming Assets to Total Loans and OREO 16.0% 1.40% 1045.3% 17.27% Allowance for Loan Losses to Nonperforming Loans (1) 7.3% 113.5% (93.6%) 5.9% Allowance for Loan Losses to Nonperforming Assets 6.9% 79.0% (91.3%) 5.5% Allowance for Loan Losses to Total Loans 1.11% 1.11% 0.4% 0.96% Year to Date Charge- offs $6,809 $2,765 146.2% $33,267 Year to Date Recoveries (1,715) (523) 227.7% (2,646) ------ ---- ------ Year to Date Net Charge- offs $5,094 $2,242 127.2% $30,621 ====== ====== ===== ======= Quarter to Date Net Charge- offs $5,094 $2,242 127.2% $2,283 ====== ====== ===== ====== (1) Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due. DEPOSITS March 31, December 31, -------- ---------------------- % 2010 2009 Change 2009 ---- ---- ------- ---- Noninterest- bearing Demand Accounts $944,657 $580,607 62.7% $985,253 NOW Accounts 1,287,895 952,298 35.2% 1,241,241 Savings and Money Market Accounts 2,569,254 1,070,520 140.0% 2,253,065 Certificates of Deposit 3,153,077 1,530,055 106.1% 3,076,589 --------- --------- ----- --------- Total Deposits $7,954,883 $4,133,480 92.5% $7,556,148 ========== ========== ==== ========== IBERIABANK CORPORATION CONDENSED CONSOLIDATED FINANCIAL INFORMATION Taxable Equivalent Basis (dollars in thousands) For The Quarter Ended --------------------- March 31, 2010 -------------- Average Average Yield/Rate Balance (%) ------- ----------- ASSETS ------ Earning Assets: Loans Receivable: Mortgage Loans $992,178 5.78% Commercial Loans (TE) (1) 3,695,589 5.69% Consumer and Other Loans 1,050,109 6.49% --------- ---- Total Loans 5,737,876 5.85% Mortgage Loans Held for Sale 50,810 4.69% Investment Securities (TE) (1)(2) 1,541,471 3.39% Other Earning Assets 1,639,602 0.08% --------- ---- Total Earning Assets 8,969,759 4.45% Allowance for Loan Losses (55,133) Nonearning Assets 955,903 ------- Total Assets $9,870,529 ========== LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ Interest-bearing Liabilities: Deposits: NOW Accounts $1,279,441 0.82% Savings and Money Market Accounts 2,415,853 1.64% Certificates of Deposit 3,077,138 1.41% --------- ---- Total Interest-bearing Deposits 6,772,432 1.38% Short-term Borrowings 201,072 0.39% Long-term Debt 736,458 2.81% ------- ---- Total Interest-bearing Liabilities 7,709,962 1.49% Noninterest-bearing Demand Deposits 939,776 Noninterest-bearing Liabilities 162,675 ------- Total Liabilities 8,812,413 Shareholders' Equity 1,058,116 --------- Total Liabilities and Shareholders' Equity $9,870,529 ========== Net Interest Spread $69,206 2.95% Tax-equivalent Benefit 1,833 0.08% Net Interest Income (TE) /Net Interest Margin (TE)(1) $71,039 3.16% For The Quarter Ended --------------------- December 31, 2009 ----------------- Average Average Yield/ Balance Rate (%) ------- --------- ASSETS ------ Earning Assets: Loans Receivable: Mortgage Loans $875,454 5.06% Commercial Loans (TE) (1) 3,134,273 5.61% Consumer and Other Loans 1,060,857 5.82% --------- ---- Total Loans 5,070,584 5.56% Mortgage Loans Held for Sale 58,785 4.75% Investment Securities (TE) (1)(2) 1,265,385 3.82% Other Earning Assets 1,030,554 0.18% --------- ---- Total Earning Assets 7,425,308 4.64% Allowance for Loan Losses (49,442) Nonearning Assets 790,738 ------- Total Assets $8,166,604 ========== LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ Interest-bearing Liabilities: Deposits: NOW Accounts $1,083,574 0.76% Savings and Money Market Accounts 1,806,497 1.48% Certificates of Deposit 2,478,621 2.37% --------- ---- Total Interest-bearing Deposits 5,368,692 1.75% Short-term Borrowings 219,394 0.46% Long-term Debt 681,789 2.33% ------- ---- Total Interest-bearing Liabilities 6,269,875 1.77% Noninterest-bearing Demand Deposits 804,918 Noninterest-bearing Liabilities 174,132 ------- Total Liabilities 7,248,925 Shareholders' Equity 917,679 ------- Total Liabilities and Shareholders' Equity $8,166,604 ========== Net Interest Spread $57,556 2.87% Tax-equivalent Benefit 1,896 0.09% Net Interest Income (TE) /Net Interest Margin (TE)(1) $59,452 3.15% For The Quarter Ended --------------------- March 31, 2009 -------------- Average Average Yield/ Balance Rate (%) ------- --------- ASSETS ------ Earning Assets: Loans Receivable: Mortgage Loans $521,180 5.64% Commercial Loans (TE) (1) 2,315,732 4.68% Consumer and Other Loans 906,120 6.64% ------- ---- Total Loans 3,743,032 5.29% Mortgage Loans Held for Sale 81,910 4.80% Investment Securities (TE) (1)(2) 968,163 4.61% Other Earning Assets 179,580 0.51% ------- ---- Total Earning Assets 4,972,685 4.98% Allowance for Loan Losses (40,711) Nonearning Assets 640,184 ------- Total Assets $5,572,158 ========== LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ Interest-bearing Liabilities: Deposits: NOW Accounts $910,272 0.90% Savings and Money Market Accounts 1,006,998 1.55% Certificates of Deposit 1,544,596 3.15% --------- ---- Total Interest-bearing Deposits 3,461,866 2.09% Short-term Borrowings 186,946 0.83% Long-term Debt 552,838 4.20% ------- ---- Total Interest-bearing Liabilities 4,201,650 2.31% Noninterest-bearing Demand Deposits 554,269 Noninterest-bearing Liabilities 72,430 ------ Total Liabilities 4,828,349 Shareholders' Equity 743,809 ------- Total Liabilities and Shareholders' Equity $5,572,158 ========== Net Interest Spread $36,287 2.66% Tax-equivalent Benefit 1,336 0.11% Net Interest Income (TE) /Net Interest Margin (TE)(1) $37,623 3.02% (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. IBERIABANK CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (dollars in thousands) For The Quarter Ended --------------------- 3/31/2010 12/31/2009 3/31/2009 --------- ---------- --------- Net Interest Income $69,206 $57,556 $36,287 Effect of Tax Benefit on Interest Income 1,833 1,896 1,336 ----- ----- ----- Net Interest Income (TE)(1) 71,039 59,452 37,623 ------ ------ ------ Noninterest Income 28,353 196,353 23,730 Effect of Tax Benefit on Noninterest Income 382 393 384 --- --- --- Noninterest Income (TE) (1) 28,735 196,746 24,114 ------ ------- ------ Total Revenues (TE) (1) $99,774 $256,198 $61,737 ======= ======== ======= Total Noninterest Expense $67,000 $75,114 $43,792 Less Intangible Amortization Expense (1,010) (1,022) (622) ------ ------ ---- Tangible Operating Expense (2) $65,990 $74,092 $43,170 ======= ======= ======= Return on Average Common Equity 4.98% 46.94% 3.59% Effect of Intangibles (2) 1.96% 19.32% 2.76% ---- ----- ---- Return on Average Tangible Common Equity (2) 6.94% 66.26% 6.35% ==== ===== ==== Efficiency Ratio 68.7% 29.6% 73.0% Effect of Tax Benefit Related to Tax Exempt Income (1.5%) (0.3%) (2.1%) ------ ------ ------ Efficiency Ratio (TE) (1) 67.2% 29.3% 70.9% Effect of Amortization of Intangibles (1.1%) (0.4%) (1.0%) ------ ------ ------ Tangible Efficiency Ratio (TE) (1) (2) 66.1% 28.9% 69.9% ==== ==== ==== (1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%. (2) Tangible calculations eliminate the effect of goodwill and acquisition related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable.
IBERIABANK Corporation
CONTACT: Daryl G. Byrd, President and CEO, +1-337-521-4003, or John R.
Davis, Senior Executive Vice President, +1-337-521-4005, both of IBERIABANK
Corporation
Web Site: http://www.iberiabank.com/
