Exhibit 99.1
FOR IMMEDIATE RELEASE
January 17, 2007
Contact:
Daryl G. Byrd, President and CEO (337) 521-4003
John R. Davis, Senior Executive Vice President (337) 521-4005
IBERIABANK Corporation Reports Fourth Quarter And Year-End Results
LAFAYETTE, LOUISIANA — IBERIABANK Corporation(NASDAQ: IBKC), the holding company of the 119-year-old IBERIABANK (http://www.iberiabank.com), announced earnings of $8.9 million for the quarter ended December 31, 2006, up 13% compared to the same period in 2005. The Company reported fully diluted earnings per share (“EPS”) of $0.87 for the fourth quarter of 2006, up 9% compared to $0.80 in the same quarter of 2005. The reported EPS of $0.87 includes merger-related costs and the cost of carrying merger-related financing totaling $0.04 per fully diluted share. Excluding these merger-related costs, the adjusted EPS figure rounds to $0.92, which approximates the consensus analyst estimate.
Highlights For The Quarter Ended December 31, 2006
| | • | | Loans. Average loans increased $115 million, or 5%, between the third and fourth quarters of 2006 (a “linked quarter basis.”) On a period-end basis, loans climbed $61 million, or 3%, between September 30, 2006 and December 31, 2006. The period-end balances were impacted due to the portfolio sales of $30.4 million in mortgage loans near the end of the fourth quarter. Over the last year, loans outstanding at period end increased $315 million, or 16%. |
| | • | | Deposits. Average deposits climbed $54 million, or 2%, between the third and fourth quarters of 2006. Period-end deposits increased $17 million, or 1%, between September 30, 2006 and December 31, 2006. Period-end deposits increased $180 million, or 8%, over the one-year time frame ended December 31, 2006. |
| | • | | Asset quality. Annualized net charge-offs equated to 0.02% of average loans in the fourth quarter of 2006, compared to 0.01% or 0.02% in each of the three preceding quarters in 2006. Total nonperforming assets (“NPAs”) declined to 0.16% of total assets at December 31, 2006, compared to 0.19% at September 30, 2006. |
| | • | | Branches. The Company opened a traditional branch office in the River Ranch neighborhood in Lafayette during the fourth quarter of 2006. In addition, two traditional branch offices are scheduled to open in a few weeks on Highland Road in Baton Rouge and in Covington, Louisiana. By the end of January 2007, a total of 12 new branch offices will have been opened under the Company’s branch expansion initiative. The estimated net after-tax cost of the branch expansion initiative was $0.06 per diluted share in the fourth quarter of 2006, compared to $0.05 per diluted share in the third quarter of 2006, and in line with prior estimates. |
| | • | | Acquisitions. The Company has received all regulatory approvals for the pending Pocahontas and Pulaski acquisitions and anticipates closing both transactions within the next three weeks. Branch and systems conversions associated with these transactions are scheduled to be completed within the next three months. |
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| | • | | Other. During the quarter just completed, the Company recorded a $3.9 million pre-tax negative loan loss provision as a result of improvements in Hurricane Katrina-related credits and the Company’s favorable asset quality position. Also during the fourth quarter of 2006, the Company recorded $3.9 million in losses on the sale of investments ($1.8 million), sale of mortgage loans ($1.1 million), and the retirement of short-term and long-term Federal Home Loan Bank (“FHLB”) debt ($1.0 million). As discussed later in this release, these actions were taken in anticipation of improving future earnings of the Company. |
Balance Sheet And Yields
Total assets climbed to $3.2 billion, deposits were $2.4 billion and loans were $2.2 billion at December 31, 2006; increases of 3%, 1%, and 3%, respectively, compared to September 30, 2006.
Total loan growth increased $61 million, or 3%, compared to September 30, 2006. During the period, commercial loans climbed $87 million, or 8%, residential mortgage loans decreased $41 million, or 9% due to a significant loan sale, and construction loans grew $7 million, or 18%. Construction loans accounted for only 2% of total loans and only 15% of total regulatory capital at December 31, 2006. Consumer loans increased $7 million, or 1%, during the fourth quarter. The reported yield on average loans decreased 25 basis points on a linked quarter basis, and was up one basis point excluding the accelerated loan discount recorded in the third quarter.
Average investment portfolio volume decreased $11 million on a linked quarter basis to $608 million. On a period-end basis, the investment portfolio declined further to $581 million at December 31, 2006. The investment portfolio equated to 18% of total assets, down from 19% at September 30, 2006. The Company’s investment portfolio shortened significantly during the quarter. At December 31, 2006, the portfolio had a modified duration of 2.6 years, compared to 3.1 years at September 30, 2006. The Company’s investment portfolio has very limited extension risk. At current projected speeds, the portfolio is expected to generate approximately $252 million in cash flows, or about 43% of the portfolio, over the next 24 months. The portfolio had an unrealized loss of approximately $5 million at December 31, 2006, compared to an unrealized loss of approximately $10 million at September 30, 2006 and a loss of $20 million at June 30, 2006. The average yield on investment securities increased 6 basis points on a linked quarter basis.
The Company continued to experience good deposit growth for the sixth consecutive quarter. Average deposits grew $54 million, or 2%, on a linked quarter basis. The cost of interest bearing liabilities in the fourth quarter of 2006 was 3.48%, an increase of 23 basis points on a linked quarter basis. The primary reasons for the elevated interest expense structure were a change in the mix of deposits and competitive pricing pressures. Average noninterest bearing deposits increased $8 million, or 2%, on a linked quarter basis.
Operating Results
Tax-equivalent net interest income decreased $1.4 million, and the tax-equivalent margin declined 34 basis points on a linked quarter basis, to 3.20% in the fourth quarter of 2006. As disclosed in the Company’s third quarter earnings release, tax-equivalent net interest income and margin were augmented in the third quarter of 2006 by two factors. First, the Company accelerated accretion of a loan discount resulted in a $1.4 million increase in net interest income and a 20 basis point margin benefit. Second, a change in the accounting method for Statement of Financial Accounting Standards 133, Accounting for Derivative Instruments and Hedging Activities (“SFAS 133”) resulted in $0.4 million decrease in net interest income and a five basis point margin detriment. Exclusive of these two factors, tax-equivalent net interest income decreased $0.4 million, or 2%, and the margin decreased 19 basis points on a linked quarter basis. The margin for the month of December 2006 was 3.22%.
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Reported And Adjusted Yields/Rates
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 1Q05 | | | 2Q05 | | | 3Q05 | | | 4Q05 | | | 1Q06 | | | 2Q06 | | | 3Q06 | | | 4Q06 | |
Reported Earning Asset Yield | | 5.39 | % | | 5.51 | % | | 5.61 | % | | 5.73 | % | | 5.86 | % | | 5.95 | % | | 6.35 | % | | 6.20 | % |
- Loan Discount Accretion | | — | | | — | | | — | | | — | | | — | | | — | | | -0.19 | % | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted Earning Asset Yield | | 5.39 | % | | 5.51 | % | | 5.61 | % | | 5.73 | % | | 5.86 | % | | 5.95 | % | | 6.16 | % | | 6.20 | % |
| | | | | | | | |
Reported Margin | | 3.56 | % | | 3.54 | % | | 3.47 | % | | 3.57 | % | | 3.53 | % | | 3.44 | % | | 3.54 | % | | 3.20 | % |
- Loan Discount Accretion | | — | | | — | | | — | | | — | | | — | | | — | | | -0.20 | % | | — | |
+ Net Cash Swaps (SFAS 133) | | — | | | — | | | — | | | — | | | — | | | — | | | 0.05 | % | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted Margin | | 3.56 | % | | 3.54 | % | | 3.47 | % | | 3.57 | % | | 3.53 | % | | 3.44 | % | | 3.39 | % | | 3.20 | % |
Noninterest income in the fourth quarter of 2006 decreased $2.6 million, or 36%, on a linked quarter basis due to a variety of factors. These factors included the impact of SFAS 133 and losses incurred on the sale of investments and loans.
The Company recorded adjustments as a result of revising its method of accounting under SFAS 133 for interest rate swaps associated with trust preferred securities. In the third quarter of 2006, the Company recorded a gain on derivative swaps of $0.9 million and net cash settlements on swaps totaling $0.4 million, or a positive impact on noninterest income of $1.3 million due to SFAS 133. By comparison, the SFAS 133 impact on noninterest income was a positive $0.1 million in the fourth quarter of 2006.
Late in the fourth quarter of 2006, the Company sold $51.5 million in investment securities and $30.4 million in mortgage loans and prepaid FHLB debt totaling $11.4 million. In association with the investment sale, the Company recorded a $1.8 million pre-tax loss on the sale of the securities, or $0.12 per diluted share on an after-tax basis. The investment securities sold had a weighted average life of 3.6 years and a weighted average yield of 4.15%. Similar sales of investment securities were recorded in the second quarter of 2006 totaling $42 million with a reported $1.4 million loss, or $0.09 per diluted share on an after-tax basis, and in the third quarter of 2006 investment sales totaling $16 million with a reported loss of $0.9 million, or $0.06 per fully diluted share on an after-tax basis.
The Company entered into an agreement to sell a $30.4 million mortgage loan portfolio and recorded a $1.1 million pre-tax loss on the sale of the loans, or $0.07 per diluted share on an after-tax basis. These loans had a weighted average life of 27.5 years and a weighted average yield of 4.57%. Exclusive of the loan portfolio sales, the Company’s recurring residential mortgage loan production sale gains increased 37% on a linked quarter basis, to $0.6 million. The volume of mortgage loan originations totaled $64 million in the fourth quarter of 2006, down 10% compared to the third quarter of 2006. Under its recurring secondary market sale programs, the Company sold into the secondary market during the fourth quarter of 2006 $52 million in residential mortgage loans, up 24% on a linked quarter basis. Unlike many competitors, the Company does not originate and portfolio exotic retail mortgage products, such as negative amortization and option ARMs.
Noninterest income improved $0.6 million, or 8%, on a linked quarter basis exclusive of SFAS 133, the sale of investments and the mortgage loan portfolio sale mentioned above. During this period, service charges on deposit accounts and ATM/debit cards improved slightly, while brokerage and annuity sales increased $0.4 million, or 41%.
Noninterest expenses decreased $0.6 million, or 3% on a linked quarter basis. Occupancy and equipment expense remained flat, despite the addition of new branches. A reduction in shares tax offset higher advertising and business development costs during the fourth quarter of 2006.
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During the fourth quarter, the Company incurred costs on the retirement of FHLB advances. The Company paid off $11.4 million of FHLB advances and recorded a $1.0 million associated pre-tax expense, equal to $0.06 per diluted share on an after-tax basis. The FHLB advances had a weighted average life of 4.5 years and a yield of 6.74%, compared to overnight funding costs of 5.33%. The expense incurred in the retirement of debt in the fourth quarter of 2006 is accounted for in the line item “Other Expense.”
The Company incurred $0.2 million in pre-tax merger-related costs during the fourth quarter of 2006, which is accounted for in the line item “Other Expense”, and approximated the level incurred in the third quarter of 2006.
Salaries and benefit costs declined $1.9 million, or 17% on a linked quarter basis. A decreased bonus accrual for the quarter accounted for a significant portion of the lower compensation costs. Since June 1, 2005, the Company recruited 71 strategic hires, up 12 on a linked quarter basis [59 last time]. Since that time, the Company has opened, staffed, and trained associates for 12 new banking facilities and two mortgage LPOs in Shreveport and Denham Springs. Also during this period, the Company consolidated three bank branch offices [Kaliste Saloom, 19th Street, Washington Plaza] and three mortgage LPO offices [Alexandria, Mandeville, Houma}.
Net income in the fourth quarter of 2006 totaled $8.9 million, up from $7.9 million compared to one year ago and down 10% on a linked quarter basis. Return on average assets (“ROA”) was 1.12% for the fourth quarter of 2006. Similarly, return on average equity (“ROE”) was 11.86%, and return on average tangible equity was 18.15%.
Pending Acquisitions
On July 27, 2006, the Company announced an agreement to acquire Pocahontas Bancorp, Inc. of Jonesboro, Arkansas with total assets of $733 million on September 30, 2006. The Pocahontas transaction is a stock-for-stock exchange. Approximately two weeks later, the Company announced an agreement to acquire Pulaski Investment Corporation of Little Rock, Arkansas with total assets of $493 million on September 30, 2006.
At the times the pending acquisitions were announced, the Company anticipated aggregate one-time merger related costs of $18 million, on a pre-tax basis, in association with the two acquisitions. In the quarter ended September 30, 2006, the Company reported $225,000 in pre-tax one-time merger related costs. In addition, the Company recorded aggregate pre-tax one-time merger related costs of $168,000 ($0.01 per fully diluted share after-tax) and carrying costs associated with trust preferred and equity financing issued in advance of the Pulaski acquisition equal to $0.03 per fully diluted share (on an after-tax basis) during the quarter ended December 31, 2006. The Company anticipates the balance of projected one-time merger related costs and carrying costs of pre-acquisition financing will be incurred in the first and second quarters of 2007. A significant portion of the merger-related costs will be capitalized.
Of the aggregate $18 million in one-time merger related costs, the Company estimated $8 million in severance-related costs, personnel contract payments and employee retention payments, $1 million in miscellaneous write-offs, $5 million in legal, accounting, printing, financing and similar fees, $1 million in technology related expenditures and $3 million in other costs.
A proxy statement was distributed to Pocahontas shareholders and a special meeting of shareholders is set for February 1, 2007 in Jonesboro, Arkansas. Pending shareholder approval, the acquisition is expected to be completed at the close of business on February 1, 2007. An information statement was distributed to Pulaski shareholders and a special meeting of shareholders is set for January 29, 2007. The acquisition is expected to be completed within the next three weeks. Operating systems and branch conversions are expected to be completed over the next three months.
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EPS Expectations For 2006 And 2007
On October 17, 2006, the Company stated its expectations for the full year 2006 EPS to be in the range of $3.57 to $3.62, excluding merger-related costs (including the additional cost of carrying financing incurred in advance of completion of the acquisitions), the cost of adoption of SFAS 123R, and other changes in accounting treatment (such as the change in accounting for derivative instruments in the third quarter of 2006). As indicated in the table below, the Company’s results for 2006 were within the range of previously disclosed guidance.
| | | | | | | | | | | | | | | | | |
| | | 2006 | |
| | | 1Q06 | | 2Q06 | | 3Q06 | | | 4Q06 | | Year | |
Reported EPS | | $ | 0.81 | | $ | 0.89 | | $ | 0.99 | | | $ | 0.87 | | $ | 3.57 | |
+ Merger-Related Expense | | | — | | | — | | | 0.01 | | | | 0.01 | | | 0.03 | |
+ Impact of Trust Preferred | | | — | | | — | | | — | | | | 0.01 | | | 0.01 | |
+ Impact of Private Placement | | | — | | | — | | | — | | | | 0.02 | | | 0.02 | |
+ SFAS 133 Expense/(Income) | | | — | | | — | | | (0.06 | ) | | | 0.00 | | | (0.05 | ) |
+ Stock Option Expense | | | 0.00 | | | 0.00 | | | 0.00 | | | | 0.01 | | | 0.02 | |
| | | | | | | | | | | | | | | | | |
EPS - Guidance Basis | | $ | 0.82 | | $ | 0.89 | | $ | 0.95 | | | $ | 0.93 | | $ | 3.59 | |
Calculations for totals do not sum due to rounding and the impact of
weighted average diluted shares outstanding in the quarterly calculations.
Similarly, the Company stated at the time, a 2007 EPS comfort range of $4.00 to $4.15, excluding the impact of one-time merger-related costs and any changes in accounting treatment. The Company today reaffirmed those expectations for 2007.
The EPS comfort ranges provided today are based on management’s current information, estimates and assumptions. A major assumption is the projected shape of the yield curve in 2006 and 2007 as indicated in forward interest rate curves.
Asset Quality
The Company believes that its asset quality continues to be exceptional. The Company reported net charge-offs totaling $85,000 in the fourth quarter of 2006 compared to $76,000 in the third quarter of 2006. The ratio of net charge-offs to average loans was 0.02% in the fourth quarter, compared to 0.01% or 0.02% in each the preceding three quarters of 2006, and 0.13% one year ago.
The Company believes that it uses a conservative definition of nonperforming assets (“NPAs”.) The Company considers NPAs to include nonaccruing loans, accruing loans more than 90 days past due, foreclosed assets, and other real estate owned. NPAs amounted to $5.0 million at December 31, 2006, equal to 0.16% of total assets compared to $6.0 million, and 0.19% of total assets, at September 30, 2006. Loans past due 30 days or more (including nonaccruing loans) represented 0.37% of total loans, down compared to 0.41% at September 30, 2006. Various segments of the Company’s loan portfolio demonstrated remarkably low levels of loans past due 30 days or more, including indirect automobile (0.90% of loans), consumer (0.76%), business banking (0.58%), mortgage (0.28%), and commercial (0.19%).
As a result of the continued strong asset quality of the loan portfolio and improvements in outstanding credits in the Hurricane Katrina affected areas, the Company recorded a $3.9 million negative
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provision during the fourth quarter of 2006. By comparison, the Company incurred a $2.4 million negative provision in the third quarter of 2006. The allowance for loan losses was 1.34% at December 31, 2006, compared to 1.56% at September 30, 2006 and 1.98% one year ago. Loan loss reserve coverage of nonperforming loans and nonperforming assets at December 31, 2006 was 10 times and six times, respectively. The Company has folded all remaining loan loss reserves associated with Katrina-related credits into the Company’s general loan loss reserves. On a prospective basis, the Company will no longer segregate Katrina-related credits or reserves.
Capital Position
The Company raised $15 million through a trust preferred securities offering which closed on October 31, 2006. The trust preferred securities qualify as Tier I capital for regulatory purposes and bear an interest rate equal to three-month LIBOR plus a specified percentage. The securities are redeemable by IBERIABANK Corporation in whole or in part after five years, or earlier under certain circumstances. The issuance of the trust preferred securities negatively impacted fourth quarter 2006 pre-tax earnings by $180,000, or $0.01 per fully diluted share on an after-tax basis.
In November 2006, the Company also issued and sold in a private placement to certain institutional and other accredited investors 576,923 shares of common stock, for a total purchase price of $30 million. The sale of common equity negatively impacted fourth quarter 2006 EPS by $0.02 on an after-tax basis. The purpose of the trust preferred securities offering and the private placement was to provide funding for the cash portion of the pending Pulaski acquisition. The Company considers the carrying costs associated with these financings in advance of completion of the acquisitions to be merger-related costs.
Average shareholders’ equity increased $24 million, or 9%, on a linked quarter basis. At December 31, 2006, the Company’s equity-to-assets ratio was 9.98%, compared to 9.00% at September 30, 2006, and 9.24% one year ago. Book value per share increased $2.17, or 7%, during the quarter to $31.07 at December 31, 2006. Similarly, tangible book value per share increased $2.81, or 15%, during the quarter to $21.43.
Tier 1 leverage ratio was 9.01% at December 31, 2006, up 138 basis points compared to 7.63% at September 30, 2006, and 7.65% one year ago. At December 31, 2006, the Company’s Tier 1 risk-based capital ratio was 11.81%, and its total risk-based capital ratio was 13.06%. The elevated capital ratios were the result of receipt of a portion of the acquisition financing in advance of completion of the acquisitions. No shares were purchased by the Company during the fourth quarter of 2006. Approximately 17,000 shares remain to be purchased under the repurchase program authorized on May 4, 2005.
On December 11, 2006, the Company declared a quarterly cash dividend of $0.32 per share, an increase of 14% compared to the same quarter last year. This dividend level equated to an annualized dividend rate of $1.28 per share and an indicated dividend yield of 2.27%. The dividend payout ratio was 36.9% in the fourth quarter of 2006, up compared to 31.4% in the third quarter of 2006.
Based on a closing stock price of $55.95 per share on January 17, 2007, the Company’s common stock traded at a price-to-earnings ratio of 14.0 times current consensus analyst estimates of $3.99 per fully diluted EPS for 2007 and 12.1 times the average analyst 2008 estimate of $4.62. This price also equates to 1.80 times December 31, 2006 book value per share of $31.07.
IBERIABANK Corporation is one of the oldest financial institutions with continuous operations in the State of Louisiana and the second largest Louisiana-based bank holding company. The Company operates 49 offices located in New Orleans, Baton Rouge, Shreveport, Northeast Louisiana, LaPlace, Houma, and the Acadiana and Northshore regions of Louisiana. The Company’s common stock trades on the Nasdaq Global Market under the symbol “IBKC” and the Company’s market capitalization is approximately $580 million.
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The following investment firms currently provide equity research coverage on IBERIABANK Corporation:
| | • | | FTN Midwest Securities Corp. |
| | • | | Keefe, Bruyette & Woods |
| | • | | Stifel Nicolaus & Company |
| | • | | SunTrust Robinson-Humphrey |
In association with this earnings release, the Company will host a live conference call to discuss the financial results for the quarter just completed. The telephone conference call will be held on Thursday, January 18, 2007, beginning at 8:00 a.m. Central Time by dialing 1-877-553-5275. The confirmation code for the call is 857714. A replay of the call will be available until midnight Central Time on January 25, 2007 by dialing 1-800-475-6701. The confirmation code for the replay is 857714.
This press release contains financial information determined by methods other than in accordance with GAAP. The Company’s management uses these non-GAAP 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. 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.
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 our ability to execute our growth strategy, risks relating to the integration of acquired companies that have previously been operated separately, credit risk of our customers, sufficiency of our allowance for loan losses, changes in interest rates, reliance on the services of executive management, competition for loans, deposits and investment dollars, changes in government regulations and legislation, geographic concentration of our markets, rapid changes in the financial services industry, and hurricanes and other adverse weather events. 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,www.sec.gov, and the Company’s website,www.iberiabank.com. All information in this release is as of January 17, 2007. 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.
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In connection with each of the proposed mergers, IBERIABANK Corporation has filed a Registration Statement on Form S-4 that contains a proxy statement/prospectus. INVESTORS AND SECURITY HOLDERS ARE URGED TO CAREFULLY READ THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION, BECAUSE IT CONTAINS IMPORTANT INFORMATION. Investors and security holders may obtain a free copy of the proxy statement/prospectus and other documents containing information about IBERIABANK, Pulaski, and Pocahontas without charge, at the SEC’s web site at HTTP://www.sec.gov. Copies of the proxy statement/prospectus and the SEC filings that are incorporated by reference in the proxy statement/prospectus may also be obtained for free by directing a request to: Investor Relations-12thFloor, IBERIABANK Corporation, 200 West Congress Street, Lafayette, LA, 70501, Phone: (337) 521-4788, Fax: (337) 521-4021 or to Dwayne Powell, President and CEO, Pocahontas Bancorp, Inc., 1700 East Highland Drive, Jonesboro, AR 72401, Phone: (870) 802-1700, Fax: (870) 802-5945 or to Robert C. Magee, President, Pulaski Investment Corporation, 5800 “R” Street, Little Rock, AR 72207, Phone: (501) 661-7729, Fax: (501) 661-7861.
This press release may be deemed to be solicitation material in respect to the proposed acquisitions by IBERIABANK Corporation of Pulaski Investment Corporation and Pocahontas Bancorp, Inc.
This communication is not an offer to purchase shares of Pulaski or Pocahontas common stock, nor is it an offer to sell shares of IBERIABANK Corporation common stock which may be issued in any proposed merger with Pulaski or Pocahontas. Any issuance of IBERIABANK Corporation common stock in any proposed merger with Pulaski or Pocahontas would have to be registered under the Securities Act of 1933, as amended and such IBERIABANK Corporation common stock would be offered only by means of a prospectus complying with the Act.
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IBERIABANK CORPORATION
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | |
| | | For The Quarter Ended December 31, | | | For The Quarter Ended September 30, | |
| | | 2006 | | | 2005 | | | % Change | | | 2006 | | | % Change | |
Income Data (in thousands): | | | | | | | | | | | | | | | | | | |
Net Interest Income | | $ | 22,421 | | | $ | 21,933 | | | 2 | % | | $ | 23,926 | | | (6 | )% |
Net Interest Income (TE) (1) | | | 23,390 | | | | 22,795 | | | 3 | % | | | 24,810 | | | (6 | )% |
Net Income | | | 8,915 | | | | 7,913 | | | 13 | % | | | 9,879 | | | (10 | )% |
| | | | | |
Per Share Data: | | | | | | | | | | | | | | | | | | |
Net Income - Basic | | $ | 0.93 | | | $ | 0.86 | | | 8 | % | | $ | 1.06 | | | (12 | )% |
Net Income - Diluted | | | 0.87 | | | | 0.80 | | | 9 | % | | | 0.99 | | | (12 | )% |
| | | | | |
Book Value | | | 31.07 | | | | 27.60 | | | 13 | % | | | 28.90 | | | 7 | % |
Tangible Book Value(2) | | | 21.43 | | | | 17.07 | | | 26 | % | | | 18.62 | | | 15 | % |
Cash Dividends | | | 0.32 | | | | 0.28 | | | 14 | % | | | 0.32 | | | — | |
| | | | | |
Number of Shares Outstanding: | | | | | | | | | | | | | | | | | | |
Basic Shares (Average) | | | 9,618,665 | | | | 9,219,266 | | | 4 | % | | | 9,337,060 | | | 3 | % |
Diluted Shares (Average) | | | 10,214,019 | | | | 9,857,989 | | | 4 | % | | | 9,932,163 | | | 3 | % |
Book Value Shares (Period End)(3) | | | 10,286,431 | | | | 9,548,812 | | | 8 | % | | | 9,697,731 | | | 6 | % |
| | | | | |
Key Ratios:(4) | | | | | | | | | | | | | | | | | | |
Return on Average Assets | | | 1.12 | % | | | 1.13 | % | | | | | | 1.30 | % | | | |
Return on Average Equity | | | 11.86 | % | | | 12.03 | % | | | | | | 14.30 | % | | | |
Return on Average Tangible Equity(2) | | | 18.15 | % | | | 20.07 | % | | | | | | 22.90 | % | | | |
Net Interest Margin (TE)(1) | | | 3.20 | % | | | 3.57 | % | | | | | | 3.54 | % | | | |
Efficiency Ratio | | | 70.0 | % | | | 59.2 | % | | | | | | 62.8 | % | | | |
Tangible Efficiency Ratio (TE)(1) (2) | | | 66.0 | % | | | 56.0 | % | | | | | | 59.7 | % | | | |
Average Loans to Average Deposits | | | 91.6 | % | | | 87.5 | % | | | | | | 88.8 | % | | | |
Nonperforming Assets to Total Assets(5) | | | 0.16 | % | | | 0.21 | % | | | | | | 0.19 | % | | | |
Allowance for Loan Losses to Loans | | | 1.34 | % | | | 1.98 | % | | | | | | 1.56 | % | | | |
Net Charge-offs to Average Loans | | | 0.02 | % | | | 0.13 | % | | | | | | 0.01 | % | | | |
Average Equity to Average Total Assets | | | 9.47 | % | | | 9.40 | % | | | | | | 9.07 | % | | | |
Tier 1 Leverage Ratio | | | 9.01 | % | | | 7.65 | % | | | | | | 7.63 | % | | | |
Dividend Payout Ratio | | | 36.9 | % | | | 33.8 | % | | | | | | 31.4 | % | | | |
| (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 repossessed assets. |
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands except per share data)
| | | | | | | | | | | | | | | |
| | | December 31, | | | September 30, 2006 | |
| | | 2006 | | | 2005 | | | % Change | | |
BALANCE SHEET (End of Period) | | | | | | | | | | | | | | | |
ASSETS | | | | | | | | | | | | | | | |
Cash and Due From Banks | | $ | 51,078 | | | $ | 66,697 | | | (23.4 | )% | | $ | 58,516 | |
Interest-bearing Deposits in Banks | | | 33,827 | | | | 60,103 | | | (43.7 | )% | | | 12,550 | |
| | | | | | | | | | | | | | | |
Total Cash and Equivalents | | | 84,905 | | | | 126,800 | | | (33.0 | )% | | | 71,066 | |
Investment Securities Available for Sale | | | 558,832 | | | | 543,495 | | | 2.8 | % | | | 576,634 | |
Investment Securities Held to Maturity | | | 22,520 | | | | 29,087 | | | (22.6 | )% | | | 24,023 | |
| | | | | | | | | | | | | | | |
Total Investment Securities | | | 581,352 | | | | 572,582 | | | 1.5 | % | | | 600,657 | |
Mortgage Loans Held for Sale | | | 54,273 | | | | 10,515 | | | 416.2 | % | | | 20,055 | |
Loans, Net of Unearned Income | | | 2,234,002 | | | | 1,918,516 | | | 16.4 | % | | | 2,173,484 | |
Allowance for Loan Losses | | | (29,922 | ) | | | (38,082 | ) | | (21.4 | )% | | | (33,954 | ) |
| | | | | | | | | | | | | | | |
Loans, net | | | 2,204,080 | | | | 1,880,434 | | | 17.2 | % | | | 2,139,530 | |
Premises and Equipment | | | 71,007 | | | | 55,010 | | | 29.1 | % | | | 68,231 | |
Goodwill and Acquisition Intangibles | | | 99,070 | | | | 100,576 | | | (1.5 | )% | | | 99,727 | |
Mortgage Servicing Rights | | | 42 | | | | 96 | | | (55.9 | )% | | | 53 | |
Other Assets | | | 108,317 | | | | 106,579 | | | 1.6 | % | | | 112,945 | |
| | | | | | | | | | | | | | | |
Total Assets | | $ | 3,203,046 | | | $ | 2,852,592 | | | 12.3 | % | | $ | 3,112,264 | |
| | | | | | | | | | | | | | | |
| | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | |
Noninterest-bearing Deposits | | $ | 354,961 | | | $ | 350,065 | | | 1.4 | % | | $ | 348,023 | |
Interest-bearing Deposits | | | 2,067,621 | | | | 1,892,891 | | | 9.2 | % | | �� | 2,057,814 | |
| | | | | | | | | | | | | | | |
Total Deposits | | | 2,422,582 | | | | 2,242,956 | | | 8.0 | % | | | 2,405,837 | |
Short-term Borrowings | | | 100,000 | | | | 745 | | | 13315.3 | % | | | 80,500 | |
Securities Sold Under Agreements to Repurchase | | | 102,605 | | | | 68,104 | | | 50.7 | % | | | 88,827 | |
Long-term Debt | | | 236,997 | | | | 250,212 | | | (5.3 | )% | | | 234,265 | |
Other Liabilities | | | 21,311 | | | | 27,006 | | | (21.1 | )% | | | 22,576 | |
| | | | | | | | | | | | | | | |
Total Liabilities | | | 2,883,495 | | | | 2,589,023 | | | 11.4 | % | | | 2,832,005 | |
Total Shareholders’ Equity | | | 319,551 | | | | 263,569 | | | 21.2 | % | | | 280,259 | |
| | | | | | | | | | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 3,203,046 | | | $ | 2,852,592 | | | 12.3 | % | | $ | 3,112,264 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | For The Three Months Ended December 31, | | | For The Twelve Months Ended December 31, | |
| | | 2006 | | | 2005 | | % Change | | | 2006 | | | 2005 | | % Change | |
INCOME STATEMENT | | | | | | | | | | | | | | | | | | | | |
Interest Income | | $ | 44,266 | | | $ | 35,735 | | 23.9 | % | | $ | 165,292 | | | $ | 135,248 | | 22.2 | % |
Interest Expense | | | 21,845 | | | | 13,802 | | 58.3 | % | | | 73,770 | | | | 50,450 | | 46.2 | % |
| | | | | | | | | | | | | | | | | | | | |
Net Interest Income | | | 22,421 | | | | 21,933 | | 2.2 | % | | | 91,522 | | | | 84,798 | | 7.9 | % |
Provision for Loan Losses | | | (3,947 | ) | | | 625 | | (731.5 | )% | | | (7,803 | ) | | | 17,069 | | (145.7 | )% |
| | | | | | | | | | | | | | | | | | | | |
Net Interest Income After Provision for Loan Losses | | | 26,368 | | | | 21,308 | | 23.7 | % | | | 99,325 | | | | 67,729 | | 46.6 | % |
Service Charges | | | 3,498 | | | | 3,027 | | 15.6 | % | | | 13,167 | | | | 13,427 | | (1.9 | )% |
ATM / Debit Card Fee Income | | | 913 | | | | 776 | | 17.6 | % | | | 3,429 | | | | 2,709 | | 26.6 | % |
BOLI Cash Surrender Value Income | | | 537 | | | | 508 | | 5.6 | % | | | 2,085 | | | | 1,979 | | 5.3 | % |
Gain (Loss) on Sale of Loans, net | | | (460 | ) | | | 526 | | (187.5 | )% | | | 745 | | | | 2,497 | | (70.2 | )% |
Other Gains (Losses) | | | (1,814 | ) | | | 553 | | (428.1 | )% | | | (3,984 | ) | | | 787 | | (606.5 | )% |
Derivative Gains (Losses) on Swaps | | | (75 | ) | | | — | | — | | | | 803 | | | | — | | — | |
Net Cash Settlements on Swaps | | | 153 | | | | — | | — | | | | 527 | | | | — | | — | |
Other Noninterest Income | | | 1,899 | | | | 1,284 | | 47.9 | % | | | 6,678 | | | | 4,742 | | 40.8 | % |
| | | | | | | | | | | | | | | | | | | | |
Total Noninterest Income | | | 4,651 | | | | 6,674 | | (30.3 | )% | | | 23,450 | | | | 26,141 | | (10.3 | )% |
Salaries and Employee Benefits | | | 9,536 | | | | 9,507 | | 0.3 | % | | | 40,023 | | | | 33,973 | | 17.8 | % |
Occupancy and Equipment | | | 2,400 | | | | 2,252 | | 6.6 | % | | | 9,445 | | | | 8,319 | | 13.5 | % |
Amortization of Acquisition Intangibles | | | 269 | | | | 299 | | (9.9 | )% | | | 1,118 | | | | 1,207 | | (7.4 | )% |
Other Noninterest Expense | | | 6,755 | | | | 4,885 | | 38.3 | % | | | 22,541 | | | | 20,939 | | 7.7 | % |
| | | | | | | | | | | | | | | | | | | | |
Total Noninterest Expense | | | 18,960 | | | | 16,943 | | 11.9 | % | | | 73,127 | | | | 64,438 | | 13.5 | % |
Income Before Income Taxes | | | 12,059 | | | | 11,039 | | 9.2 | % | | | 49,648 | | | | 29,432 | | 68.7 | % |
Income Taxes | | | 3,144 | | | | 3,126 | | 0.6 | % | | | 13,953 | | | | 7,432 | | 87.7 | % |
| | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 8,915 | | | $ | 7,913 | | 12.7 | % | | $ | 35,695 | | | $ | 22,000 | | 62.3 | % |
| | | | | | | | | | | | | | | | | | | | |
Earnings Per Share, diluted | | $ | 0.87 | | | $ | 0.80 | | 8.7 | % | | $ | 3.57 | | | $ | 2.24 | | 59.3 | % |
| | | | | | | | | | | | | | | | | | | | |
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands except per share data)
| | | | | | | | | | | | | | | | | | | | |
| | | For The Quarter Ended | |
| | | December 31, 2006 | | | September 30, 2006 | | | June 30, 2006 | | | March 31, 2006 | | | December 31, 2005 | |
BALANCE SHEET (Average) | | | | | | | | | | | | | | | | | | | | |
ASSETS | | | | | | | | | | | | | | | | | | | | |
Cash and Due From Banks | | $ | 49,304 | | | $ | 49,863 | | | $ | 53,353 | | | $ | 59,721 | | | $ | 60,488 | |
Interest-bearing Deposits in Banks | | | 18,661 | | | | 11,415 | | | | 44,704 | | | | 53,684 | | | | 29,371 | |
Investment Securities | | | 608,489 | | | | 619,057 | | | | 648,391 | | | | 616,041 | | | | 560,583 | |
Mortgage Loans Held for Sale | | | 22,398 | | | | 17,166 | | | | 11,691 | | | | 9,566 | | | | 12,987 | |
Loans, Net of Unearned Income | | | 2,204,048 | | | | 2,089,350 | | | | 1,989,875 | | | | 1,931,788 | | | | 1,895,970 | |
Allowance for Loan Losses | | | (33,899 | ) | | | (35,642 | ) | | | (38,581 | ) | | | (38,214 | ) | | | (38,070 | ) |
Other Assets | | | 279,359 | | | | 271,198 | | | | 263,180 | | | | 254,909 | | | | 256,076 | |
| | | | | | | | | | | | | | | | | | | | |
Total Assets | | $ | 3,148,360 | | | $ | 3,022,407 | | | $ | 2,972,613 | | | $ | 2,887,495 | | | $ | 2,777,405 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing Deposits | | $ | 342,374 | | | $ | 334,453 | | | $ | 331,272 | | | $ | 336,616 | | | $ | 334,840 | |
Interest-bearing Deposits | | | 2,064,653 | | | | 2,018,469 | | | | 2,029,683 | | | | 1,947,889 | | | | 1,831,262 | |
| | | | | | | | | | | | | | | | | | | | |
Total Deposits | | | 2,407,027 | | | | 2,352,922 | | | | 2,360,955 | | | | 2,284,505 | | | | 2,166,102 | |
Short-term Borrowings | | | 77,978 | | | | 43,101 | | | | 3,399 | | | | 751 | | | | 16,913 | |
Securities Sold Under Agreements to Repurchase | | | 98,216 | | | | 96,942 | | | | 76,440 | | | | 66,371 | | | | 59,654 | |
Long-term Debt | | | 243,573 | | | | 238,058 | | | | 243,462 | | | | 247,235 | | | | 255,047 | |
Other Liabilities | | | 23,296 | | | | 17,240 | | | | 19,117 | | | | 20,543 | | | | 18,624 | |
| | | | | | | | | | | | | | | | | | | | |
Total Liabilities | | | 2,850,090 | | | | 2,748,263 | | | | 2,703,373 | | | | 2,619,405 | | | | 2,516,340 | |
Total Shareholders’ Equity | | | 298,270 | | | | 274,144 | | | | 269,240 | | | | 268,090 | | | | 261,065 | |
| | | | | | | | | | | | | | | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 3,148,360 | | | $ | 3,022,407 | | | $ | 2,972,613 | | | $ | 2,887,495 | | | $ | 2,777,405 | |
| | | | | | | | | | | | | | | | | | | | |
| | |
| | | 2006 | | | 2005 | |
| | | Fourth Quarter | | | Third Quarter | | | Second Quarter | | | First Quarter | | | Fourth Quarter | |
INCOME STATEMENT | | | | | | | | | | | | | | | | | | | | |
Interest Income | | $ | 44,266 | | | $ | 43,645 | | | $ | 39,893 | | | $ | 37,488 | | | $ | 35,735 | |
Interest Expense | | | 21,845 | | | | 19,719 | | | | 17,138 | | | | 15,068 | | | | 13,802 | |
| | | | | | | | | | | | | | | | | | | | |
Net Interest Income | | | 22,421 | | | | 23,926 | | | | 22,755 | | | | 22,420 | | | | 21,933 | |
Provision for Loan Losses | | | (3,947 | ) | | | (2,389 | ) | | | (1,902 | ) | | | 435 | | | | 625 | |
| | | | | | | | | | | | | | | | | | | | |
Net Interest Income After Provision for Loan Losses | | | 26,368 | | | | 26,315 | | | | 24,657 | | | | 21,985 | | | | 21,308 | |
Total Noninterest Income | | | 4,651 | | | | 7,275 | | | | 5,258 | | | | 6,266 | | | | 6,674 | |
Total Noninterest Expense | | | 18,960 | | | | 19,591 | | | | 17,462 | | | | 17,114 | | | | 16,943 | |
| | | | | | | | | | | | | | | | | | | | |
Income Before Income Taxes | | | 12,059 | | | | 13,999 | | | | 12,453 | | | | 11,137 | | | | 11,039 | |
Income Taxes | | | 3,144 | | | | 4,120 | | | | 3,598 | | | | 3,091 | | | | 3,126 | |
| | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 8,915 | | | $ | 9,879 | | | $ | 8,855 | | | $ | 8,046 | | | $ | 7,913 | |
| | | | | | | | | | | | | | | | | | | | |
Earnings Per Share, basic | | $ | 0.93 | | | $ | 1.06 | | | $ | 0.95 | | | $ | 0.87 | | | $ | 0.86 | |
| | | | | | | | | | | | | | | | | | | | |
Earnings Per Share, diluted | | $ | 0.87 | | | $ | 0.99 | | | $ | 0.89 | | | $ | 0.81 | | | $ | 0.80 | |
| | | | | | | | | | | | | | | | | | | | |
Book Value Per Share | | $ | 31.07 | | | $ | 28.90 | | | $ | 27.56 | | | $ | 27.70 | | | $ | 27.60 | |
| | | | | | | | | | | | | | | | | | | | |
Return on Average Assets | | | 1.12 | % | | | 1.30 | % | | | 1.19 | % | | | 1.13 | % | | | 1.13 | % |
Return on Average Equity | | | 11.86 | % | | | 14.30 | % | | | 13.19 | % | | | 12.17 | % | | | 12.03 | % |
Return on Average Tangible Equity | | | 18.15 | % | | | 22.90 | % | | | 21.44 | % | | | 19.92 | % | | | 20.07 | % |
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands)
| | | | | | | | | | | | | | | |
| | | December 31, | | | September 30, 2006 | |
| | 2006 | | | 2005 | | | % Change | | |
LOANS RECEIVABLE | | | | | | | | | | | | | | | |
Residential Mortgage Loans: | | | | | | | | | | | | | | | |
Residential 1-4 Family | | $ | 431,585 | | | $ | 430,111 | | | 0.3 | % | | $ | 472,499 | |
Construction | | | 45,285 | | | | 30,611 | | | 47.9 | % | | | 38,336 | |
| | | | | | | | | | | | | | | |
Total Residential Mortgage Loans | | | 476,870 | | | | 460,722 | | | 3.5 | % | | | 510,835 | |
Commercial Loans: | | | | | | | | | | | | | | | |
Real Estate | | | 750,051 | | | | 545,868 | | | 37.4 | % | | | 680,300 | |
Business | | | 461,048 | | | | 376,966 | | | 22.3 | % | | | 443,743 | |
| | | | | | | | | | | | | | | |
Total Commercial Loans | | | 1,211,099 | | | | 922,834 | | | 31.2 | % | | | 1,124,043 | |
Consumer Loans: | | | | | | | | | | | | | | | |
Indirect Automobile | | | 228,301 | | | | 229,646 | | | (0.6 | )% | | | 227,315 | |
Home Equity | | | 233,885 | | | | 230,363 | | | 1.5 | % | | | 233,304 | |
Automobile | | | 24,179 | | | | 23,372 | | | 3.5 | % | | | 23,795 | |
Credit Card Loans | | | 8,829 | | | | 8,433 | | | 4.7 | % | | | 8,387 | |
Other | | | 50,839 | | | | 43,146 | | | 17.8 | % | | | 45,805 | |
| | | | | | | | | | | | | | | |
Total Consumer Loans | | | 546,033 | | | | 534,960 | | | 2.1 | % | | | 538,606 | |
| | | | | | | | | | | | | | | |
Total Loans Receivable | | | 2,234,002 | | | | 1,918,516 | | | 16.4 | % | | | 2,173,484 | |
| | | | | | | | | | | | | | | |
Allowance for Loan Losses | | | (29,922 | ) | | | (38,082 | ) | | | | | | (33,954 | ) |
| | | | | | | | | | | | | | | |
Loans Receivable, Net | | $ | 2,204,080 | | | $ | 1,880,434 | | | | | | $ | 2,139,530 | |
| | | | | | | | | | | | | | | |
| | |
| | | December 31, | | | September 30, 2006 | |
| | | 2006 | | | 2005 | | | % Change | | |
ASSET QUALITY DATA | | | | | | | | | | | | | | | |
Nonaccrual Loans | | $ | 2,701 | | | $ | 4,773 | | | (43.4 | )% | | $ | 2,904 | |
Foreclosed Assets | | | 8 | | | | 54 | | | (85.6 | )% | | | 24 | |
Other Real Estate Owned | | | 2,000 | | | | 203 | | | 886.2 | % | | | 1,153 | |
Accruing Loans More Than 90 Days Past Due | | | 310 | | | | 1,003 | | | (69.1 | )% | | | 1,873 | |
| | | | | | | | | | | | | | | |
Total Nonperforming Assets(1) | | $ | 5,019 | | | $ | 6,033 | | | (16.8 | )% | | $ | 5,954 | |
| | | | | | | | | | | | | | | |
Nonperforming Assets to Total Assets(1) | | | 0.16 | % | | | 0.21 | % | | (25.9 | )% | | | 0.19 | % |
Nonperforming Assets to Total Loans and OREO (1) | | | 0.22 | % | | | 0.31 | % | | (28.6 | )% | | | 0.27 | % |
Allowance for Loan Losses to Nonperforming Loans(1) | | | 993.7 | % | | | 659.3 | % | | 50.7 | % | | | 710.8 | % |
Allowance for Loan Losses to Nonperforming Assets(1) | | | 596.2 | % | | | 631.3 | % | | (5.6 | )% | | | 570.3 | % |
Allowance for Loan Losses to Total Loans | | | 1.34 | % | | | 1.98 | % | | (32.5 | )% | | | 1.56 | % |
Year to Date Charge-offs | | $ | 2,621 | | | $ | 5,541 | | | (52.7 | )% | | $ | 2,031 | |
Year to Date Recoveries | | $ | 2,264 | | | $ | 1,895 | | | 19.5 | % | | $ | 1,759 | |
| (1) | Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due. Nonperforming assets consist of nonperforming loans and repossessed assets. |
| | | | | | | | | | | | |
| | | December 31, | | | September 30, 2006 |
| | | 2006 | | 2005 | | % Change | | |
DEPOSITS | | | | | | | | | | | | |
Noninterest-bearing Demand Accounts | | $ | 354,961 | | $ | 350,065 | | 1.4 | % | | $ | 348,023 |
NOW Accounts | | | 628,541 | | | 575,379 | | 9.2 | % | | | 632,273 |
Savings and Money Market Accounts | | | 588,202 | | | 554,731 | | 6.0 | % | | | 613,938 |
Certificates of Deposit | | | 850,878 | | | 762,781 | | 11.5 | % | | | 811,603 |
| | | | | | | | | | | | |
Total Deposits | | $ | 2,422,582 | | $ | 2,242,956 | | 8.0 | % | | $ | 2,405,837 |
| | | | | | | | | | | | |
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Taxable Equivalent Basis
(dollars in thousands)
| | | | | | | | | | | | | | |
| | | For The Quarter Ended | |
| | | December 31, 2006 | | | December 31, 2005 | |
| | | Average
Balance | | | Average Yield/Rate (%) | | | Average Balance | | | Average Yield/Rate (%) | |
ASSETS | | | | | | | | | | | | | | |
Earning Assets: | | | | | | | | | | | | | | |
Loans Receivable: | | | | | | | | | | | | | | |
Mortgage Loans | | $ | 510,751 | | | 5.69 | % | | $ | 453,196 | | | 5.42 | % |
Commercial Loans (TE)(1) | | | 1,151,288 | | | 6.62 | % | | | 899,754 | | | 6.03 | % |
Consumer and Other Loans | | | 542,009 | | | 7.34 | % | | | 543,020 | | | 6.95 | % |
| | | | | | | | | | | | | | |
Total Loans | | | 2,204,048 | | | 6.58 | % | | | 1,895,970 | | | 6.14 | % |
Mortgage Loans Held for Sale | | | 22,398 | | | 6.46 | % | | | 12,987 | | | 5.83 | % |
Investment Securities (TE)(1)(2) | | | 618,482 | | | 4.88 | % | | | 565,195 | | | 4.48 | % |
Other Earning Assets | | | 42,285 | | | 4.99 | % | | | 54,402 | | | 4.17 | % |
| | | | | | | | | | | | | | |
Total Earning Assets | | | 2,887,213 | | | 6.20 | % | | | 2,528,554 | | | 5.73 | % |
Allowance for Loan Losses | | | (33,899 | ) | | | | | | (38,070 | ) | | | |
Nonearning Assets | | | 295,046 | | | | | | | 286,921 | | | | |
| | | | | | | | | | | | | | |
Total Assets | | $ | 3,148,360 | | | | | | $ | 2,777,405 | | | | |
| | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | |
Interest-bearing Liabilities: | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | |
NOW Accounts | | $ | 616,664 | | | 2.65 | % | | $ | 557,462 | | | 1.81 | % |
Savings and Money Market Accounts | | | 611,171 | | | 2.52 | % | | | 525,439 | | | 1.50 | % |
Certificates of Deposit | | | 836,818 | | | 4.22 | % | | | 748,361 | | | 3.22 | % |
| | | | | | | | | | | | | | |
Total Interest-bearing Deposits | | | 2,064,653 | | | 3.25 | % | | | 1,831,262 | | | 2.29 | % |
Short-term Borrowings | | | 176,194 | | | 4.03 | % | | | 76,567 | | | 2.13 | % |
Long-term Debt | | | 243,573 | | | 5.04 | % | | | 255,047 | | | 4.28 | % |
| | | | | | | | | | | | | | |
Total Interest-bearing Liabilities | | | 2,484,420 | | | 3.48 | % | | | 2,162,876 | | | 2.52 | % |
Noninterest-bearing Demand Deposits | | | 342,374 | | | | | | | 334,840 | | | | |
Noninterest-bearing Liabilities | | | 23,296 | | | | | | | 18,624 | | | | |
| | | | | | | | | | | | | | |
Total Liabilities | | | 2,850,090 | | | | | | | 2,516,340 | | | | |
Shareholders’ Equity | | | 298,270 | | | | | | | 261,065 | | | | |
| | | | | | | | | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 3,148,360 | | | | | | $ | 2,777,405 | | | | |
| | | | | | | | | | | | | | |
Net Interest Spread | | $ | 22,421 | | | 2.72 | % | | $ | 21,933 | | | 3.21 | % |
Tax-equivalent Benefit | | | 969 | | | 0.13 | % | | | 862 | | | 0.13 | % |
Net Interest Income (TE) / Net Interest Margin (TE)(1) | | $ | 23,390 | | | 3.20 | % | | $ | 22,795 | | | 3.57 | % |
| (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
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Taxable Equivalent Basis
(dollars in thousands)
| | | | | | | | | | | | | | |
| | | For The Twelve Months Ended | |
| | | December 31, 2006 | | | December 31, 2005 | |
| | | Average
Balance | | | Average
Yield/Rate (%) | | | Average
Balance | | | Average
Yield/Rate (%) | |
ASSETS | | | | | | | | | | | | | | |
Earning Assets: | | | | | | | | | | | | | | |
Loans Receivable: | | | | | | | | | | | | | | |
Mortgage Loans | | $ | 485,642 | | | 5.56 | % | | $ | 438,515 | | | 5.37 | % |
Commercial Loans (TE)(1) | | | 1,034,492 | | | 6.65 | % | | | 862,799 | | | 5.74 | % |
Consumer and Other Loans | | | 534,475 | | | 7.19 | % | | | 538,761 | | | 6.81 | % |
| | | | | | | | | | | | | | |
Total Loans | | | 2,054,609 | | | 6.53 | % | | | 1,840,075 | | | 5.96 | % |
Mortgage Loans Held for Sale | | | 15,246 | | | 6.51 | % | | | 12,866 | | | 5.51 | % |
Investment Securities (TE)(1)(2) | | | 633,270 | | | 4.75 | % | | | 574,832 | | | 4.44 | % |
Other Earning Assets | | | 53,268 | | | 4.83 | % | | | 49,773 | | | 3.73 | % |
| | | | | | | | | | | | | | |
Total Earning Assets | | | 2,756,393 | | | 6.09 | % | | | 2,477,546 | | | 5.56 | % |
Allowance for Loan Losses | | | (36,570 | ) | | | | | | (27,908 | ) | | | |
Nonearning Assets | | | 288,651 | | | | | | | 267,425 | | | | |
| | | | | | | | | | | | | | |
Total Assets | | $ | 3,008,474 | | | | | | $ | 2,717,063 | | | | |
| | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | |
Interest-bearing Liabilities: | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | |
NOW Accounts | | $ | 623,211 | | | 2.48 | % | | $ | 558,705 | | | 1.65 | % |
Savings and Money Market Accounts | | | 589,137 | | | 2.05 | % | | | 480,836 | | | 1.28 | % |
Certificates of Deposit | | | 803,154 | | | 3.81 | % | | | 727,666 | | | 2.91 | % |
| | | | | | | | | | | | | | |
Total Interest-bearing Deposits | | | 2,015,502 | | | 2.88 | % | | | 1,767,207 | | | 2.07 | % |
Short-term Borrowings | | | 116,165 | | | 3.32 | % | | | 143,100 | | | 2.34 | % |
Long-term Debt | | | 243,058 | | | 4.77 | % | | | 245,561 | | | 4.20 | % |
| | | | | | | | | | | | | | |
Total Interest-bearing Liabilities | | | 2,374,725 | | | 3.10 | % | | | 2,155,868 | | | 2.33 | % |
Noninterest-bearing Demand Deposits | | | 336,190 | | | | | | | 283,396 | | | | |
Noninterest-bearing Liabilities | | | 20,049 | | | | | | | 16,170 | | | | |
| | | | | | | | | | | | | | |
Total Liabilities | | | 2,730,964 | | | | | | | 2,455,434 | | | | |
Shareholders’ Equity | | | 277,510 | | | | | | | 261,629 | | | | |
| | | | | | | | | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 3,008,474 | | | | | | $ | 2,717,063 | | | | |
| | | | | | | | | | | | | | |
Net Interest Spread | | $ | 91,522 | | | 2.99 | % | | $ | 84,798 | | | 3.23 | % |
Tax-equivalent Benefit | | | 3,544 | | | 0.13 | % | | | 3,283 | | | 0.13 | % |
Net Interest Income (TE) / Net Interest Margin (TE)(1) | | $ | 95,066 | | | 3.42 | % | | $ | 88,081 | | | 3.54 | % |
| (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 TABLE
(dollars in thousands)
| | | | | | | | | | | | |
| | | For The Three Months Ended | |
| | | 12/31/2006 | | | 9/30/2006 | | | 12/31/2005 | |
Net Interest Income | | $ | 22,421 | | | $ | 23,926 | | | $ | 21,933 | |
Effect of Tax Benefit on Interest Income | | | 969 | | | | 884 | | | | 862 | |
| | | | | | | | | | | | |
Net Interest Income (TE)(1) | | | 23,390 | | | | 24,810 | | | | 22,795 | |
| | | | | | | | | | | | |
Noninterest Income | | | 4,651 | | | | 7,275 | | | | 6,674 | |
Effect of Tax Benefit on Noninterest Income | | | 289 | | | | 282 | | | | 274 | |
| | | | | | | | | | | | |
Noninterest Income (TE)(1) | | | 4,940 | | | | 7,557 | | | | 6,948 | |
| | | | | | | | | | | | |
Total Revenues (TE)(1) | | $ | 28,330 | | | $ | 32,367 | | | $ | 29,743 | |
| | | | | | | | | | | | |
Total Noninterest Expense | | $ | 18,960 | | | $ | 19,591 | | | $ | 16,943 | |
Less Intangible Amortization Expense | | | (269 | ) | | | (276 | ) | | | (299 | ) |
| | | | | | | | | | | | |
Tangible Operating Expense(2) | | $ | 18,691 | | | $ | 19,315 | | | $ | 16,644 | |
| | | | | | | | | | | | |
Return on Average Equity | | | 11.86 | % | | | 14.30 | % | | | 12.03 | % |
Effect of Intangibles(2) | | | 6.29 | % | | | 8.60 | % | | | 8.04 | % |
| | | | | | | | | | | | |
Return on Average Tangible Equity(2) | | | 18.15 | % | | | 22.90 | % | | | 20.07 | % |
| | | | | | | | | | | | |
Efficiency Ratio | | | 70.0 | % | | | 62.8 | % | | | 59.2 | % |
Effect of Tax Benefit Related to Tax Exempt Income | | | (3.1 | )% | | | (2.3 | )% | | | (2.2 | )% |
| | | | | | | | | | | | |
Efficiency Ratio (TE)(1) | | | 66.9 | % | | | 60.5 | % | | | 57.0 | % |
Effect of Amortization of Intangibles | | | (0.9 | )% | | | (0.8 | )% | | | (1.0 | )% |
| | | | | | | | | | | | |
Tangible Efficiency Ratio (TE)(1) (2) | | | 66.0 | % | | | 59.7 | % | | | 56.0 | % |
| | | | | | | | | | | | |
| (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. |
