Exhibit 99.1
FOR IMMEDIATE RELEASE
April 25, 2007
Contact:
Daryl G. Byrd, President and CEO (337) 521-4003
John R. Davis, Senior Executive Vice President (337) 521-4005
IBERIABANK Corporation Reports First Quarter 2007 Results
LAFAYETTE, LOUISIANA — IBERIABANK Corporation(NASDAQ: IBKC), the holding company of the 120-year-old IBERIABANK (http://www.iberiabank.com), announced earnings of $9.2 million for the quarter ended March 31, 2007, up 14% compared to the same period in 2006. The Company reported fully diluted earnings per share (“EPS”) of $0.76 for the first quarter of 2007, down 7% compared to $0.81 in the same quarter of 2006. The reported EPS of $0.76 included one-time merger related costs and the impact of recent accounting changes, which management has consistently excluded from its annual EPS guidance. The Company incurred in the first quarter of 2007 merger-related costs totaling $1.3 million on a pre-tax basis and the cost of carrying merger-related financing, the aggregate negative impact of which was $0.08 per fully diluted share on an after-tax basis. In addition, the Company incurred $0.3 million in pre-tax expense associated with SFAS 133 and SFAS 123R, or $0.02 per share on an after-tax basis. Excluding these merger-related costs and changes in accounting treatment, the adjusted EPS figure was $0.86. The consensus analyst EPS estimate for the first quarter of 2007 for the Company was $0.87 as reported by First Call.
The Company’s results were significantly affected by five primary factors. First, the acquisition of Pulaski Investment Corporation, the $500 million holding company for Pulaski Bank and Trust Company based in Little Rock, Arkansas (“Pulaski”), which was completed after the close of business on January 31, 2007. The following morning, the Company completed the acquisition of Pocahontas Bancorp, Inc. (“Pocahontas”), the holding company for First Community Bank based in Jonesboro, Arkansas (“First Community”) with total assets of approximately $723 million. The financial results for the first quarter of 2007 incorporate the impact of these acquisitions for only two months. Second, limited anticipated synergistic benefits were realized during the first quarter, due to the timing of the conversions of branch and operating systems. The conversion of Pulaski’s operating systems and branches was completed on March 18, 2007. The system and branch operating conversion for First Community was completed on April 22, 2007. While anticipated aggregate acquisition cost savings are consistent with initial estimates, the phasing in of the savings resulted in a significant drag on earnings during the first quarter. Third, the Company incurred one-time merger related costs in the first quarter of 2007. As stated above these merger related costs had a negative $0.08 impact on EPS on an after tax basis. Fourth, the first quarter of 2007 had two less calendar days than the preceding quarter. The incremental impact of two less calendar days decreased pre-tax revenues approximately $0.2 million, or about a $0.02 after-tax negative EPS impact. Finally, the acquisition of Pulaski introduced significant seasonal influences to the Company’s earnings stream during the first quarter of 2007 associated with two business units—mortgage banking and title insurance.
The following table provides a non-GAAP reconciliation of net income and fully diluted earnings per share adjusting for the one-time merger related costs that were incurred in the most recent three quarters and the estimated financial impact of the acquisitions. Management believes this non-GAAP table provides a useful measure of operating earnings trends due to the nonrecurring nature of the one-time merger related costs.
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| | | | | | | | |
Non-GAAP Pro Forma Net Income And EPS | | 4Q 2006 | | | 1Q 2007 | |
(After-tax; Dollars in thousands) | | | | | | | | |
Net Income Excluding Acquisitions (Legacy IBKC) | | $ | 9,024 | | | $ | 8,503 | |
One-Time Merger Related Costs | | | (109 | ) | | | (873 | ) |
Estimated Pulaski/Pocahontas Net Income Impact | | | — | | | | 1,525 | |
| | | | | | | | |
Net Income As Reported | | $ | 8,915 | | | $ | 9,155 | |
| | |
(After-tax; Per share basis) | | | | | | | | |
EPS Excluding Acquisitions (Legacy IBKC) | | $ | 0.91 | | | $ | 0.86 | |
Fully Diluted EPS As Reported | | $ | 0.87 | | | $ | 0.76 | |
| | | | | | | | |
Highlights For The Quarter Ended March 31, 2007
| | • | | Loans. Average loans increased $545 million, or 25%, between the fourth quarter of 2006 and first quarter of 2007 (a “linked quarter basis.”) On a period-end basis, loans increased $801 million, or 36%, between December 31, 2006 and March 31, 2007. |
| | • | | Deposits. Average deposits climbed $699 million, or 29%, on a linked quarter basis. Period-end deposits increased $1.1 billion, or 44%, between December 31, 2006 and March 31, 2007. |
| | • | | Asset Quality. Annualized net charge-offs equated to 0.03% of average loans in the first quarter of 2007, compared to 0.01% or 0.02% in each of the four preceding quarters in 2006. Total nonperforming assets (“NPAs”) increased to 0.42% of total assets at March 31, 2007, compared to 0.16% at December 31, 2006. Excluding the acquisitions that were completed during the first quarter of 2007, the NPA ratio was 0.18%, or an increase of 2 basis points. |
| | • | | Branches. The Company opened traditional branch offices in Covington, Louisiana and Highland Road in Baton Rouge, Louisiana during the first quarter of 2007. A total of 12 new branch offices have been opened under the Company’s branch expansion initiative. The estimated net after-tax cost of the branch expansion initiative was $0.05 per diluted share in the first quarter of 2007, compared to $0.06 per diluted share in the fourth quarter of 2006, and in line with prior estimates. Total loans in these branches were $38 million at March 31, 2007, up 15% compared to year-end 2006. Similarly, aggregate deposits in these branches totaled $60 million at March 31, 2007, up 27% compared to year-end 2006. |
Balance Sheet And Yields
Total assets climbed to $4.6 billion, loans were $3.0 billion, deposits were $3.5 billion, and shareholders’ equity was $472 million at March 31, 2007; increases of 43%, 36%, 44%, and 48%, respectively, compared to December 31, 2006.
Total loan growth increased $801 million, or 36%, compared to year-end 2006. Excluding the acquisitions, the comparable figures were $37 million, or 2%, growth since year-end 2006. On this organic growth basis, commercial loans climbed $18 million, or 1%, consumer loans increased $5 million, or 1%, residential mortgage loans increased $14 million, or 3%. The loan mix remained relatively unchanged after the acquisitions. The Company’s loans-to-deposits ratio declined from 92.2% at year-end 2006 to 86.9% at March 31, 2007.
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Period-End Loan Volumes And Mix ($ in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans | | 12/31/06 | | 3/31/07 | | | 12/31/06 | | | 3/31/07 | |
| | | IBKC Legacy | | IBKC Legacy | | | Acquired Entities | | | Total Reported | | | IBKC Legacy | | | IBKC Legacy | | | Acquired Entities | | | Total Reported | |
Commercial | | $ | 1,211,099 | | $ | 1,229,238 | | | $ | 459,119 | | | $ | 1,688,357 | | | 54 | % | | 54 | % | | 60 | % | | 55 | % |
Consumer | | | 546,033 | | | 551,469 | | | | 225,603 | | | | 777,072 | | | 25 | % | | 24 | % | | 30 | % | | 26 | % |
Mortgage | | | 476,870 | | | 490,670 | | | | 79,027 | | | | 569,697 | | | 21 | % | | 22 | % | | 10 | % | | 19 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Loans | | $ | 2,234,002 | | $ | 2,271,377 | | | $ | 763,749 | | | $ | 3,035,126 | | | 100 | % | | 100 | % | | 100 | % | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Growth | | | | | | 2 | % | | | 34 | % | | | 36 | % | | | | | | | | | | | | |
Construction loans accounted for only 2% of total loans at March 31, 2007, unchanged compared to year-end 2006. The reported yield on average loans increased 23 basis points on a linked quarter basis to 6.82%. Excluding the impact of the acquisitions, the average loan yield in the first quarter was 6.60%, up 14 basis points on a linked quarter basis.
Average investment portfolio volume increased $141 million, or 23%, on a linked quarter basis to $759 million at March 31, 2007. The investment portfolio equated to 19% of total assets at March 31, 2007, compared to 18% at December 31, 2006. The Company’s investment portfolio lengthened during the quarter. At March 31, 2007, the portfolio had a modified duration of 2.9 years, compared to 2.6 years at December 31, 2006. The Company’s investment portfolio had very limited extension risk. At current projected speeds and other assumptions, the portfolio is expected to generate approximately $348 million in cash flows, or about 41% of the portfolio, over the next 24 months. The portfolio had an unrealized loss of approximately $3 million at March 31, 2007, compared to an unrealized loss of approximately $5 million at December 31, 2006 and a loss of approximately $10 million at March 31, 2006. The average yield on investment securities increased 23 basis points on a linked quarter basis. The average earning asset yield, excluding the acquisitions, increased 16 basis points on a linked quarter basis to 6.35% in the first quarter of 2007.
Period-End Deposit Volumes And Mix ($ in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | 12/31/06 | | 3/31/07 | | | 12/31/06 | | | 3/31/07 | |
| | | IBKC Legacy | | IBKC Legacy | | | Acquired Entities | | | Total Reported | | | IBKC Legacy | | | IBKC Legacy | | | Acquired Entities | | | Total Reported | |
Noninterest | | $ | 354,961 | | $ | 359,407 | | | $ | 111,360 | | | $ | 470,767 | | | 15 | % | | 14 | % | | 11 | % | | 14 | % |
NOW Accounts | | | 628,541 | | | 656,664 | | | | 197,250 | | | | 853,914 | | | 26 | % | | 27 | % | | 19 | % | | 24 | % |
Savings/MMkt | | | 588,202 | | | 597,368 | | | | 172,171 | | | | 769,539 | | | 24 | % | | 24 | % | | 17 | % | | 22 | % |
Time Deposits | | | 850,878 | | | 852,674 | | | | 545,300 | | | | 1,397,974 | | | 35 | % | | 35 | % | | 53 | % | | 40 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Loans | | $ | 2,422,582 | | $ | 2,466,113 | | | $ | 1,026,081 | | | $ | 3,492,194 | | | 100 | % | | 100 | % | | 100 | % | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Growth | | | | | | 2 | % | | | 42 | % | | | 44 | % | | | | | | | | | | | | |
Total deposits increased $1.1 billion, or 44%, compared to year-end 2006. Excluding the acquisitions, the comparable figures were $44 million growth, or 2%, since year-end 2006. On this organic growth basis, noninterest bearing deposits increased $4 million, or 1%, and interest bearing deposits increased $39 million, or 2%. The deposit mix changed slightly since year-end, due to the mix of deposits acquired in association with the acquisitions. The cost of interest bearing liabilities in the first quarter of 2007 was 3.72%, an increase of 24 basis points on a linked quarter basis. Excluding the acquisitions, the cost of interest bearing liabilities was 3.57% in the first quarter of 2007, up nine basis points on a linked quarter basis.
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Operating Results
Tax-equivalent net interest income increased $5.3 million, or 23% on a linked quarter basis. The tax-equivalent margin declined five basis points on a linked quarter basis, to 3.15% in the first quarter of 2007. Excluding the acquisitions, the margin improved five basis points on a linked quarter basis to 3.25% in the first quarter of 2007.
Average Yields/Cost (Taxable Equivalent Basis)
| | | | | | | | | | | | | | | |
| | | 4Q06 | | | First Quarter 2007 | |
| | | IBKC Legacy | | | IBKC Legacy | | | Pulaski | | | Pocahontas | | | Total Consolidated | |
Earning Asset Yield | | 6.20 | % | | 6.35 | % | | 7.12 | % | | 6.64 | % | | 6.44 | % |
Interest Bearing Liability Cost | | 3.48 | % | | 3.57 | % | | 4.32 | % | | 3.89 | % | | 3.72 | % |
| | | | | | | | | | | | | | | |
Net Interest Spread | | 2.72 | % | | 2.78 | % | | 2.80 | % | | 2.75 | % | | 2.72 | % |
| | | | | |
Net Interest Margin | | 3.20 | % | | 3.25 | % | | 3.31 | % | | 2.83 | % | | 3.15 | % |
Noninterest income in the first quarter of 2007 increased $9.6 million, or 206%, on a linked quarter basis due primarily to the acquisitions and losses incurred in the fourth quarter of 2006 on the sale of investments and loans. The Pulaski acquisition included significant mortgage and title insurance operations. Excluding the acquisitions and the losses incurred in the fourth quarter of 2006, noninterest income improved $0.7 million, or 10%, on a linked quarter basis. The Company received proceeds of a bank owned life insurance policy that accounted for the majority of the increase.
Noninterest expense in the first quarter of 2007 increased $10.5 million, or 55%, on a linked quarter basis due primarily to the acquisitions. The Company incurred $1.3 million in one-time merger related costs during the first quarter of 2007 (the majority of which is accounted for in the line item “Other Noninterest Expense”), compared to $0.2 million in the fourth quarter of 2006. Excluding one-time merger related costs and the acquisitions, noninterest expense increased $1.8 million, or 10%, on a linked quarter basis. On this basis, employee compensation accounted for one-half of the increase, and the remainder was due to increased hospitalization costs, FICA tax restart, and other benefit costs. The Company has significantly accelerated cost savings efforts since completion of the acquisition conversions, the synergistic benefits of which will materialize in the second quarter of 2007 and beyond.
Net income in the first quarter of 2007 totaled $9.2 million, up from $8.0 million, or 14%, compared to one year ago and up 3% on a linked quarter basis. Return on average assets (“ROA”) was 0.91% for the first quarter of 2007. Similarly, return on average equity (“ROE”) was 8.88%, and return on average tangible equity was 16.40%.
Seasonal Influence On Quarterly Operating Results
The acquisition of Pulaski Mortgage Company and Lenders Title Company, Pulaski subsidiaries, introduced a seasonal influence to the Company’s operating results. Historically, these businesses experienced minimal earnings in the first and fourth quarters in the calendar year, with a dramatic spike in the second quarter of the calendar year (and to a lesser degree in the third quarter). Based on current projections and pipeline statistics, the Company anticipates an increase in pre-tax income in the second quarter of 2007 of approximately $1.0 million, or $0.05 per fully diluted share on an after-tax basis, associated with underlying seasonal nature of these two businesses.
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Acquisition Update
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 March 31, 2007, the Company reported $1.3 million in pre-tax one-time merger related costs ($0.07 per fully diluted share on an after-tax basis). In addition, the Company recorded carrying costs associated with trust preferred and equity financing issued in advance of the Pulaski acquisition equal to $0.01 per fully diluted share (on an after-tax basis) during the quarter ended March 31, 2007. The Company anticipates the balance of projected one-time merger related costs will be incurred in the second quarter of 2007. A portion of the remaining merger-related costs will be capitalized.
Estimated revenue enhancements and cost savings projected to result from the acquisitions are expected to remain close to management’s initial projections, though the timing of these benefits will be later than initially expected. As a result of delays in the acquisition funding and the approval process, the anticipated closing and conversion dates were later than initially projected. This, in combination with management’s deliberate effort to ensure minimal client disruption and a coordinated conversion process, has resulted in the recognition of synergistic benefits at a slower pace than originally projected. Expected synergies are projected to be fully realized by the fourth quarter of 2007 and to be on pace with original projections. Based on actions specifically identified, examples of projected annualized pre-tax financial improvements include $5.8 million in personnel-related savings, $0.7 million in savings on terminated contracts, $1.7 million in revenue improvements, and other benefits. The Company estimates a minimum positive impact of $0.22 on 2007 EPS, primarily in the two final quarters of the year.
The operating system and branch conversions for Pulaski were completed over the weekend of March 17-18, 2007. Similarly, the operating system and branch conversions for First Community were completed over the weekend of April 21-22, 2007. The two entities were merged on April 22, 2007. The combined financial institution is a federal stock savings bank headquartered in Little Rock, Arkansas and operating under the corporate title of “Pulaski Bank and Trust Company.”
Lenders Title Company, formerly a subsidiary of Pulaski Bank and Trust Company, became a direct subsidiary of IBERIABANK Corporation on April 19, 2007. United Title of Louisiana, Inc. was acquired by IBERIABANK Corporation on April 2, 2007. Terms of the acquisition were not disclosed. United Title, with 10 offices in Louisiana, will become a subsidiary of Lenders Title Company.
EPS Expectations For 2007
On October 17, 2006, the Company stated its expectations for the full year 2007 EPS to be in the range of $4.00 to $4.15, excluding the impact of merger-related costs (including the additional cost of carrying financing incurred in advance of completion of the acquisitions), and changes in accounting treatment. As a result of delayed synergistic benefits of the acquisitions and a detailed review of financial information after completion of the acquisitions, the Company modified its current full year 2007 earnings expectations to be $3.85 to $3.90 per fully diluted share, excluding merger-related costs and changes in accounting treatment.
The EPS comfort ranges provided today are based on management’s current information, estimates and assumptions. Major assumptions are the projected shape of the yield curve in 2007 as indicated in forward interest rate curves and the synergistic benefits of the recent acquisitions.
Asset Quality
The Company believes that its asset quality continues to be very strong. The Company reported net charge-offs totaling $196,000 in the first quarter of 2007 compared to $85,000 in the fourth quarter of
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2006 and $76,000 in the third quarter of 2006. The ratio of net charge-offs to average loans was 0.03% in the first quarter of 2007, compared to 0.01% or 0.02% in each the preceding four quarters of 2006.
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 $19.3 million at March 31, 2007 equal to 0.42% of total assets compared to $5.0 million, and 0.16% of total assets, at December 31, 2006. The acquired entities accounted for $13.5 million of the $14.3 million increase in NPAs during the first quarter of 2007. Loans past due 30 days or more (including nonaccruing loans) represented 1.16% of total loans, up compared to 0.37% at year-end 2006. Various segments of the Company’s loan portfolio demonstrated low levels of loans past due 30 days or more, including indirect automobile (0.66% of loans), consumer (0.71%), business banking (0.05%), mortgage (1.40%), and commercial (1.84%).
In the first quarter of 2007, the Company recorded a provision for loan losses totaling $0.2 million, compared to a $3.9 million negative provision during the fourth quarter of 2006 and a $2.4 million negative provision in the third quarter of 2006. The allowance for loan losses was 1.28% at March 31, 2007, compared to 1.34% at December 31, 2006 and 1.56% at September 30, 2006. Loan loss reserve coverage of nonperforming loans and nonperforming assets at March 31, 2007 was 2.4 times and 2.0 times, respectively. The Company folded all remaining loan loss reserves associated with Katrina-related credits into the Company’s general loan loss reserves at year-end 2006.
Capital Position
In October 2006, the Company issued $15 million in trust preferred securities. The following month, the Company 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 purpose of the trust preferred securities offering and the private placement was to provide funding for the pending Pulaski acquisition which was completed on February 1, 2007. The Company considers the carrying costs associated with these financings in advance of completion of the acquisitions to be merger-related costs. The issuance of the trust preferred securities and common equity negatively impacted first quarter 2007 EPS by approximately $0.01 on an after-tax basis.
Average shareholders’ equity increased $120 million, or 40%, on a linked quarter basis. At December 31, 2006, the Company’s equity-to-assets ratio was 10.31% compared to 9.98% at year-end 2006 and 9.00% at September 30, 2006. Book value per share increased $5.58, or 18%, during the quarter to $36.65 at March 31, 2007. Tangible book value per share decreased $4.18, or 20%, during the quarter to $17.25.
Tier 1 leverage ratio was 7.80% at March 31, 2007 compared to 9.01% at December 31, 2006 (which was after the trust preferred and equity issuances were completed, but before the acquisitions were completed), and 7.63% at September 30, 2006 (which was prior to the trust preferred and equity issuances).
On May 4, 2005, the Board of Directors of the Company authorized the repurchase of up to 375,000 shares (after adjusting for the five-for-four stock split in August 2005) Approximately 17,000 shares remain to be purchased as authorized under that repurchase program. To date, shares purchased under that program had a weighted average price of $51.50 on a split-adjusted basis.
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Historical Share Repurchase Program Summary
| | | | | | | | | | | | | | | | |
| | | Date | | Months
to
Complete | | Authorized Volume | | Average Cost |
Repurchase Program | | Announced | | Completed | | | Pre-Split | | Post-Split | | Pre-Split | | Post-Split |
Feb. 2000 Program | | 2/17/00 | | 12/11/00 | | 10 | | 300,000 | | 375,000 | | $ | 17.87 | | $ | 14.30 |
Dec. 2000 Program | | 12/21/00 | | 12/17/01 | | 12 | | 300,000 | | 375,000 | | $ | 28.05 | | $ | 22.44 |
Dec. 2001 Program | | 12/18/01 | | 12/2/02 | | 11 | | 300,000 | | 375,000 | | $ | 37.77 | | $ | 30.22 |
Nov. 2002 Program | | 11/18/02 | | 9/2/03 | | 9 | | 130,000 | | 162,500 | | $ | 43.87 | | $ | 35.10 |
Sep. 2003 Program | | 9/17/03 | | 6/24/04 | | 9 | | 300,000 | | 375,000 | | $ | 58.05 | | $ | 46.44 |
Jun. 2004 Program | | 6/25/04 | | 5/4/05 | | 10 | | 175,000 | | 281,750 | | $ | 59.04 | | $ | 47.23 |
May 2005 Program | | 5/4/05 | | — | | — | | 286,360 | | 357,950 | | $ | 64.38 | | $ | 51.50 |
Remaining To Be Completed | | | | | | | | 13,640 | | 17,050 | | | | | | |
| | | | | | | | | | | | | | | | |
Current Authorized Program | | | | | | | | 300,000 | | 375,000 | | | | | | |
| | | | | | | | | | | | | | | | |
Grand Total | | | | | | | | 1,791,360 | | 2,239,200 | | $ | 42.98 | | $ | 34.38 |
On April 25, 2007, the Board of Directors of the Company authorized a new share repurchase program upon completion of the prior program. The new program authorizes the repurchase of up to 300,000 shares of the Company’s outstanding common stock, or approximately 2.3% of total shares outstanding. Stock repurchases under this new program will be made from time to time, on the open market or in privately negotiated transactions, at the discretion of the management of the Company. The timing of these repurchases will depend on market conditions and other requirements. The Company currently anticipates the new share repurchase program shall be completed within approximately one year.
On March 21, 2007, 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 2.44%, based on the closing stock price of the Company on April 25, 2007 of $52.44 per share. Based on that closing stock price, the Company’s common stock traded at a price-to-earnings ratio of 13.5 times current consensus analyst estimates of $3.89 per fully diluted EPS for 2007 and 11.7 times the average analyst 2008 estimate of $4.49. This price also equates to 1.43 times March 31, 2007 book value per share of $36.65.
IBERIABANK Corporation is a multi-bank financial holding company with 81 bank branch offices in Louisiana, Arkansas, Tennessee, and Oklahoma, 28 mortgage offices in eight states, and 32 title insurance offices in Arkansas and Louisiana. The Company’s common stock trades on the Nasdaq Global Market under the symbol “IBKC” and the Company’s market capitalization is approximately $675 million.
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 |
| | • | | Howe Barnes Hoefer & Arnett, Inc. |
| | • | | Robert W. Baird & Company |
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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, April 26, 2007, beginning at 8:00 a.m. Central Time by dialing 1-888-428-4480. The confirmation code for the call is 868072. A replay of the call will be available until midnight Central Time on May 3, 2007 by dialing 1-800-475-6701. The confirmation code for the replay is 868072.
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 April 25, 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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IBERIABANK CORPORATION
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | |
| | | For The Quarter Ended March 31, | | | For The Quarter Ended December 31, | |
| | | 2007 | | | 2006 | | | % Change | | | 2006 | | | % Change | |
Income Data (in thousands): | | | | | | | | | | | | | | | | | | |
Net Interest Income | | $ | 27,610 | | | $ | 22,420 | | | 23 | % | | $ | 22,421 | | | 23 | % |
Net Interest Income (TE)(1) | | | 28,719 | | | | 23,279 | | | 23 | % | | | 23,390 | | | 23 | % |
Net Income | | | 9,155 | | | | 8,046 | | | 14 | % | | | 8,915 | | | 3 | % |
| | | | | |
Per Share Data: | | | | | | | | | | | | | | | | | | |
Net Income—Basic | | $ | 0.79 | | | $ | 0.87 | | | (9 | %) | | $ | 0.93 | | | (15 | %) |
Net Income—Diluted | | | 0.76 | | | | 0.81 | | | (7 | %) | | | 0.87 | | | (13 | %) |
Book Value | | | 36.65 | | | | 27.70 | | | 32 | % | | | 31.07 | | | 18 | % |
Tangible Book Value(2) | | | 17.25 | | | | 17.35 | | | (1 | %) | | | 21.43 | | | (20 | %) |
Cash Dividends | | | 0.32 | | | | 0.28 | | | 14 | % | | | 0.32 | | | — | |
| | | | | |
Number of Shares Outstanding: | | | | | | | | | | | | | | | | | | |
Basic Shares (Average) | | | 11,556,653 | | | | 9,292,156 | | | 24 | % | | | 9,618,665 | | | 20 | % |
Diluted Shares (Average) | | | 12,084,051 | | | | 9,884,303 | | | 22 | % | | | 10,214,019 | | | 18 | % |
Book Value Shares (Period End)(3) | | | 12,886,128 | | | | 9,692,824 | | | 33 | % | | | 10,286,431 | | | 25 | % |
| | | | | |
Key Ratios:(4) | | | | | | | | | | | | | | | | | | |
Return on Average Assets | | | 0.91 | % | | | 1.13 | % | | | | | | 1.12 | % | | | |
Return on Average Equity | | | 8.88 | % | | | 12.17 | % | | | | | | 11.86 | % | | | |
Return on Average Tangible Equity (2) | | | 16.40 | % | | | 19.92 | % | | | | | | 18.15 | % | | | |
Net Interest Margin (TE)(1) | | | 3.15 | % | | | 3.53 | % | | | | | | 3.20 | % | | | |
Efficiency Ratio | | | 70.5 | % | | | 59.7 | % | | | | | | 70.0 | % | | | |
Tangible Efficiency Ratio (TE) (1) (2) | | | 66.2 | % | | | 56.4 | % | | | | | | 66.0 | % | | | |
Average Loans to Average Deposits | | | 88.5 | % | | | 84.6 | % | | | | | | 91.6 | % | | | |
Nonperforming Assets to Total Assets(5) | | | 0.42 | % | | | 0.23 | % | | | | | | 0.16 | % | | | |
Allowance for Loan Losses to Loans | | | 1.28 | % | | | 1.97 | % | | | | | | 1.34 | % | | | |
Net Charge-offs to Average Loans | | | 0.03 | % | | | 0.02 | % | | | | | | 0.02 | % | | | |
Average Equity to Average Total Assets | | | 10.26 | % | | | 9.28 | % | | | | | | 9.47 | % | | | |
Tier 1 Leverage Ratio | | | 7.80 | % | | | 7.59 | % | | | | | | 9.01 | % | | | |
Dividend Payout Ratio | | | 45.0 | % | | | 33.7 | % | | | | | | 36.9 | % | | | |
(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. |
(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)
| | | | | | | | | | | | | | | |
| | | March 31, | | | December 31, 2006 | |
BALANCE SHEET (End of Period) | | 2007 | | | 2006 | | | % Change | | |
ASSETS | | | | | | | | | | | | | | | |
Cash and Due From Banks | | $ | 128,688 | | | $ | 50,981 | | | 152.4 | % | | $ | 51,078 | |
Interest-bearing Deposits in Banks | | | 19,315 | | | | 19,012 | | | 1.6 | % | | | 33,827 | |
| | | | | | | | | | | | | | | |
Total Cash and Equivalents | | | 148,003 | | | | 69,993 | | | 111.5 | % | | | 84,905 | |
Investment Securities Available for Sale | | | 778,997 | | | | 640,445 | | | 21.6 | % | | | 558,832 | |
Investment Securities Held to Maturity | | | 61,751 | | | | 28,479 | | | 116.8 | % | | | 22,520 | |
| | | | | | | | | | | | | | | |
Total Investment Securities | | | 840,748 | | | | 668,924 | | | 25.7 | % | | | 581,352 | |
Mortgage Loans Held for Sale | | | 84,125 | | | | 13,057 | | | 544.3 | % | | | 54,273 | |
Loans, Net of Unearned Income | | | 3,035,126 | | | | 1,955,961 | | | 55.2 | % | | | 2,234,002 | |
Allowance for Loan Losses | | | (38,711 | ) | | | (38,438 | ) | | 0.7 | % | | | (29,922 | ) |
| | | | | | | | | | | | | | | |
Loans, net | | | 2,996,415 | | | | 1,917,523 | | | 56.3 | % | | | 2,204,080 | |
Premises and Equipment | | | 123,487 | | | | 57,961 | | | 113.1 | % | | | 71,007 | |
Goodwill and Other Intangibles | | | 253,526 | | | | 100,286 | | | 152.8 | % | | | 99,070 | |
Mortgage Servicing Rights | | | 34 | | | | 80 | | | (58.1 | %) | | | 42 | |
Other Assets | | | 135,488 | | | | 98,529 | | | 37.5 | % | | | 108,307 | |
| | | | | | | | | | | | | | | |
Total Assets | | $ | 4,581,826 | | | $ | 2,926,353 | | | 56.6 | % | | $ | 3,203,036 | |
| | | | | | | | | | | | | | | |
| | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | |
Noninterest-bearing Deposits | | $ | 470,767 | | | $ | 330,264 | | | 42.5 | % | | $ | 354,961 | |
Interest-bearing Deposits | | | 3,021,327 | | | | 1,995,794 | | | 51.4 | % | | | 2,067,621 | |
| | | | | | | | | | | | | | | |
Total Deposits | | | 3,492,094 | | | | 2,326,058 | | | 50.1 | % | | | 2,422,582 | |
Short-term Borrowings | | | 127,839 | | | | 745 | | | 17066.1 | % | | | 100,000 | |
Securities Sold Under Agreements to Repurchase | | | 122,258 | | | | 68,274 | | | 79.1 | % | | | 102,605 | |
Long-term Debt | | | 335,417 | | | | 243,962 | | | 37.5 | % | | | 236,997 | |
Other Liabilities | | | 31,946 | | | | 18,818 | | | 69.8 | % | | | 21,301 | |
| | | | | | | | | | | | | | | |
Total Liabilities | | | 4,109,554 | | | | 2,657,857 | | | 54.6 | % | | | 2,883,485 | |
Total Shareholders’ Equity | | | 472,272 | | | | 268,496 | | | 75.9 | % | | | 319,551 | |
| | | | | | | | | | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 4,581,826 | | | $ | 2,926,353 | | | 56.6 | % | | $ | 3,203,036 | |
| | | | | | | | | | | | | | | |
| | |
INCOME STATEMENT | | For The Three Months Ended March 31, | | | | |
| | | 2007 | | | 2006 | | | % Change | | | | |
Interest Income | | $ | 57,224 | | | $ | 37,488 | | | 52.6 | % | | | | |
Interest Expense | | | 29,614 | | | | 15,068 | | | 96.5 | % | | | | |
| | | | | | | | | | | | | | | |
Net Interest Income | | | 27,610 | | | | 22,420 | | | 23.1 | % | | | | |
Provision for Loan Losses | | | 211 | | | | 435 | | | (51.4 | %) | | | | |
| | | | | | | | | | | | | | | |
Net Interest Income After Provision for Loan Losses | | | 27,399 | | | | 21,985 | | | 24.6 | % | | | | |
Service Charges | | | 4,021 | | | | 3,001 | | | 34.0 | % | | | | |
ATM / Debit Card Fee Income | | | 961 | | | | 800 | | | 20.1 | % | | | | |
BOLI Proceeds and Cash Surrender Value Income | | | 1,496 | | | | 509 | | | 194.1 | % | | | | |
Gain (Loss) on Sale of Loans, net | | | 2,473 | | | | 393 | | | 529.5 | % | | | | |
Title Revenue | | | 2,193 | | | | — | | | — | | | | | |
Broker commissions | | | 1,277 | | | | 942 | | | 35.5 | % | | | | |
Other Noninterest Income | | | 1,796 | | | | 621 | | | 189.4 | % | | | | |
| | | | | | | | | | | | | | | |
Total Noninterest Income | | | 14,217 | | | | 6,266 | | | 126.9 | % | | | | |
Salaries and Employee Benefits | | | 17,053 | | | | 9,571 | | | 78.2 | % | | | | |
Occupancy and Equipment | | | 3,935 | | | | 2,340 | | | 68.2 | % | | | | |
Amortization of Acquisition Intangibles | | | 536 | | | | 290 | | | 84.5 | % | | | | |
Other Noninterest Expense | | | 7,964 | | | | 4,913 | | | 62.1 | % | | | | |
| | | | | | | | | | | | | | | |
Total Noninterest Expense | | | 29,488 | | | | 17,114 | | | 72.3 | % | | | | |
Income Before Income Taxes | | | 12,128 | | | | 11,137 | | | 8.9 | % | | | | |
Income Taxes | | | 2,973 | | | | 3,091 | | | 3.8 | % | | | | |
| | | | | | | | | | | | | | | |
Net Income | | $ | 9,155 | | | $ | 8,046 | | | 13.8 | % | | | | |
| | | | | | | | | | | | | | | |
Earnings Per Share, diluted | | $ | 0.76 | | | $ | 0.81 | | | 6.9 | % | | | | |
| | | | | | | | | | | | | | | |
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands except per share data)
| | | | | | | | | | | | | | | | | | | | |
| | | For The Quarter Ended | |
BALANCE SHEET (Average) | | March 31,
2007 | | | December 31, 2006 | | | September 30, 2006 | | | June 30,
2006 | | | March 31,
2006 | |
ASSETS | | | | | | | | | | | | | | | | | | | | |
Cash and Due From Banks | | $ | 73,357 | | | $ | 49,304 | | | $ | 49,863 | | | $ | 53,353 | | | $ | 59,721 | |
Interest-bearing Deposits in Banks | | | 42,549 | | | | 18,661 | | | | 11,415 | | | | 44,704 | | | | 53,684 | |
Investment Securities | | | 755,780 | | | | 608,489 | | | | 619,057 | | | | 648,391 | | | | 616,041 | |
Mortgage Loans Held for Sale | | | 55,660 | | | | 22,398 | | | | 17,166 | | | | 11,691 | | | | 9,566 | |
Loans, Net of Unearned Income | | | 2,749,325 | | | | 2,204,048 | | | | 2,089,350 | | | | 1,989,875 | | | | 1,931,788 | |
Allowance for Loan Losses | | | (34,965 | ) | | | (33,899 | ) | | | (35,642 | ) | | | (38,581 | ) | | | (38,214 | ) |
Other Assets | | | 434,781 | | | | 279,359 | | | | 271,198 | | | | 263,180 | | | | 254,909 | |
| | | | | | | | | | | | | | | | | | | | |
Total Assets | | $ | 4,076,487 | | | $ | 3,148,360 | | | $ | 3,022,407 | | | $ | 2,972,613 | | | $ | 2,887,495 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing Deposits | | $ | 410,605 | | | $ | 342,374 | | | $ | 334,453 | | | $ | 331,272 | | | $ | 336,616 | |
Interest-bearing Deposits | | | 2,695,470 | | | | 2,064,653 | | | | 2,018,469 | | | | 2,029,683 | | | | 1,947,889 | |
| | | | | | | | | | | | | | | | | | | | |
Total Deposits | | | 3,106,075 | | | | 2,407,027 | | | | 2,352,922 | | | | 2,360,955 | | | | 2,284,505 | |
Short-term Borrowings | | | 113,537 | | | | 77,978 | | | | 43,101 | | | | 3,399 | | | | 751 | |
Securities Sold Under Agreements to Repurchase | | | 110,851 | | | | 98,216 | | | | 96,942 | | | | 76,440 | | | | 66,371 | |
Long-term Debt | | | 297,614 | | | | 243,573 | | | | 238,058 | | | | 243,462 | | | | 247,235 | |
Other Liabilities | | | 30,321 | | | | 23,296 | | | | 17,240 | | | | 19,117 | | | | 20,543 | |
| | | | | | | | | | | | | | | | | | | | |
Total Liabilities | | | 3,658,398 | | | | 2,850,090 | | | | 2,748,263 | | | | 2,703,373 | | | | 2,619,405 | |
Total Shareholders’ Equity | | | 418,089 | | | | 298,270 | | | | 274,144 | | | | 269,240 | | | | 268,090 | |
| | | | | | | | | | | | | | | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 4,076,487 | | | $ | 3,148,360 | | | $ | 3,022,407 | | | $ | 2,972,613 | | | $ | 2,887,495 | |
| | | | | | | | | | | | | | | | | | | | |
| | |
| | | 2007 | | | 2006 | |
INCOME STATEMENT | | First
Quarter | | | Fourth
Quarter | | | Third
Quarter | | | Second
Quarter | | | First
Quarter | |
Interest Income | | $ | 57,224 | | | $ | 44,266 | | | $ | 43,645 | | | $ | 39,893 | | | $ | 37,488 | |
Interest Expense | | | 29,614 | | | | 21,845 | | | | 19,719 | | | | 17,138 | | | | 15,068 | |
| | | | | | | | | | | | | | | | | | | | |
Net Interest Income | | | 27,610 | | | | 22,421 | | | | 23,926 | | | | 22,755 | | | | 22,420 | |
Provision for Loan Losses | | | 211 | | | | (3,947 | ) | | | (2,389 | ) | | | (1,902 | ) | | | 435 | |
| | | | | | | | | | | | | | | | | | | | |
Net Interest Income After Provision for Loan Losses | | | 27,399 | | | | 26,368 | | | | 26,315 | | | | 24,657 | | | | 21,985 | |
Total Noninterest Income | | | 14,217 | | | | 4,651 | | | | 7,275 | | | | 5,258 | | | | 6,266 | |
Total Noninterest Expense | | | 29,488 | | | | 18,960 | | | | 19,591 | | | | 17,462 | | | | 17,114 | |
| | | | | | | | | | | | | | | | | | | | |
Income Before Income Taxes | | | 12,128 | | | | 12,059 | | | | 13,999 | | | | 12,453 | | | | 11,137 | |
Income Taxes | | | 2,973 | | | | 3,144 | | | | 4,120 | | | | 3,598 | | | | 3,091 | |
| | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 9,155 | | | $ | 8,915 | | | $ | 9,879 | | | $ | 8,855 | | | $ | 8,046 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Earnings Per Share, basic | | $ | 0.79 | | | $ | 0.93 | | | $ | 1.06 | | | $ | 0.95 | | | $ | 0.87 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Earnings Per Share, diluted | | $ | 0.76 | | | $ | 0.87 | | | $ | 0.99 | | | $ | 0.89 | | | $ | 0.81 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Book Value Per Share | | $ | 36.65 | | | $ | 31.07 | | | $ | 28.90 | | | $ | 27.56 | | | $ | 27.70 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Return on Average Assets | | | 0.91 | % | | | 1.12 | % | | | 1.30 | % | | | 1.19 | % | | | 1.13 | % |
Return on Average Equity | | | 8.88 | % | | | 11.86 | % | | | 14.30 | % | | | 13.19 | % | | | 12.17 | % |
Return on Average Tangible Equity | | | 16.40 | % | | | 18.15 | % | | | 22.90 | % | | | 21.44 | % | | | 19.92 | % |
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands)
| | | | | | | | | | | | | | | |
| | | March 31, | | | December 31, 2006 | |
LOANS RECEIVABLE | | 2007 | | | 2006 | | | % Change | | |
Residential Mortgage Loans: | | | | | | | | | | | | | | | |
Residential 1-4 Family | | $ | 515,425 | | | $ | 433,260 | | | 19.0 | % | | $ | 431,585 | |
Construction | | $ | 54,272 | | | | 25,574 | | | 112.2 | % | | | 45,285 | |
| | | | | | | | | | | | | | | |
Total Residential Mortgage Loans | | | 569,697 | | | | 458,834 | | | 24.2 | % | | | 476,870 | |
Commercial Loans: | | | | | | | | | | | | | | | |
Real Estate | | | 1,163,296 | | | | 580,128 | | | 100.5 | % | | | 750,051 | |
Business | | | 525,061 | | | | 393,293 | | | 33.5 | % | | | 461,048 | |
| | | | | | | | | | | | | | | |
Total Commercial Loans | | | 1,688,357 | | | | 973,421 | | | 73.4 | % | | | 1,211,099 | |
Consumer Loans: | | | | | | | | | | | | | | | |
Indirect Automobile | | | 228,099 | | | | 227,742 | | | 0.2 | % | | | 228,301 | |
Home Equity | | | 395,645 | | | | 224,417 | | | 76.3 | % | | | 233,885 | |
Automobile | | | 32,719 | | | | 22,668 | | | 44.3 | % | | | 24,179 | |
Credit Card Loans | | | 47,411 | | | | 7,705 | | | 515.4 | % | | | 8,829 | |
Other | | | 73,198 | | | | 41,174 | | | 77.8 | % | | | 50,839 | |
| | | | | | | | | | | | | | | |
Total Consumer Loans | | | 777,072 | | | | 523,706 | | | 48.4 | % | | | 546,033 | |
| | | | | | | | | | | | | | | |
Total Loans Receivable | | | 3,035,126 | | | | 1,955,961 | | | 55.2 | % | | | 2,234,002 | |
| | | | | | | | | | | | | | | |
Allowance for Loan Losses | | | (38,711 | ) | | | (38,438 | ) | | | | | | (29,922 | ) |
| | | | | | | | | | | | | | | |
Loans Receivable, Net | | $ | 2,996,415 | | | $ | 1,917,523 | | | | | | $ | 2,204,080 | |
| | | | | | | | | | | | | | | |
| | |
| | | March 31, | | | December 31, 2006 | |
ASSET QUALITY DATA | | 2007 | | | 2006 | | | % Change | | |
Nonaccrual Loans | | $ | 15,556 | | | $ | 4,596 | | | 238.5 | % | | $ | 2,701 | |
Foreclosed Assets | | | 11 | | | | 95 | | | (88.4 | %) | | | 8 | |
Other Real Estate Owned | | | 3,340 | | | | 128 | | | 2503.6 | % | | | 2,000 | |
Accruing Loans More Than 90 Days Past Due | | | 395 | | | | 1,878 | | | (79.0 | %) | | | 310 | |
| | | | | | | | | | | | | | | |
Total Nonperforming Assets(1) | | $ | 19,302 | | | $ | 6,697 | | | 188.2 | % | | $ | 5,019 | |
| | | | | | | | | | | | | | | |
| | | | |
Nonperforming Assets to Total Assets(1) | | | 0.42 | % | | | 0.23 | % | | 84.1 | % | | | 0.16 | % |
Nonperforming Assets to Total Loans and OREO(1) | | | 0.64 | % | | | 0.34 | % | | 85.5 | % | | | 0.22 | % |
Allowance for Loan Losses to Nonperforming Loans(1) | | | 242.7 | % | | | 593.8 | % | | (59.1 | %) | | | 993.7 | % |
Allowance for Loan Losses to Nonperforming Assets(1) | | | 200.6 | % | | | 573.9 | % | | (65.1 | %) | | | 596.2 | % |
Allowance for Loan Losses to Total Loans | | | 1.28 | % | | | 1.97 | % | | (35.1 | %) | | | 1.34 | % |
Year to Date Charge-offs | | $ | 721 | | | $ | 716 | | | 0.8 | % | | $ | 2,621 | |
Year to Date Recoveries | | $ | (525 | ) | | $ | (637 | ) | | (17.5 | %) | | $ | (2,264 | ) |
| | | | | | | | | | | | | | | |
Year to Date Net Charge-offs | | $ | 196 | | | $ | 79 | | | 149.0 | % | | $ | 357 | |
| | | | | | | | | | | | | | | |
Quarter to Date Net Charge-offs | | $ | 196 | | | $ | 79 | | | 149.0 | % | | $ | 85 | |
| | | | | | | | | | | | | | | |
|
(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. | |
| | |
| | | March 31, | | | December 31, 2006 | |
DEPOSITS | | 2007 | | | 2006 | | | % Change | | |
Noninterest-bearing Demand Accounts | | $ | 470,767 | | | $ | 330,264 | | | 42.5 | % | | $ | 354,961 | |
NOW Accounts | | | 853,814 | | | | 637,408 | | | 34.0 | % | | | 628,541 | |
Savings and Money Market Accounts | | | 769,539 | | | | 573,490 | | | 34.2 | % | | | 588,202 | |
Certificates of Deposit | | | 1,397,974 | | | | 784,896 | | | 78.1 | % | | | 850,878 | |
| | | | | | | | | | | | | | | |
Total Deposits | | $ | 3,492,094 | | | $ | 2,326,058 | | | 50.1 | % | | $ | 2,422,582 | |
| | | | | | | | | | | | | | | |
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Taxable Equivalent Basis
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | For The Quarter Ended | |
| | | March 31, 2007 | | | December 31, 2006 | | | March 31, 2006 | |
| | | Average
Balance | | | Average
Yield/Rate (%) | | | Average
Balance | | | Average
Yield/Rate (%) | | | Average
Balance | | | Average
Yield/Rate (%) | |
ASSETS | | | | | | | | | | | | | | | | | | | | | |
Earning Assets: | | | | | | | | | | | | | | | | | | | | | |
Loans Receivable: | | | | | | | | | | | | | | | | | | | | | |
Mortgage Loans | | $ | 538,731 | | | 5.84 | % | | $ | 510,751 | | | 5.69 | % | | $ | 461,280 | | | 5.43 | % |
Commercial Loans (TE)(1) | | | 1,515,524 | | | 6.45 | % | | | 1,151,288 | | | 6.64 | % | | | 941,036 | | | 6.30 | % |
Consumer and Other Loans | | | 695,070 | | | 8.41 | % | | | 542,009 | | | 7.34 | % | | | 529,472 | | | 7.03 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Loans | | | 2,749,325 | | | 6.82 | % | | | 2,204,048 | | | 6.59 | % | | | 1,931,788 | | | 6.29 | % |
Mortgage Loans Held for Sale | | | 55,660 | | | 6.07 | % | | | 22,398 | | | 6.46 | % | | | 9,566 | | | 6.39 | % |
Investment Securities (TE)(1)(2) | | | 759,401 | | | 5.12 | % | | | 618,482 | | | 4.89 | % | | | 620,103 | | | 4.59 | % |
Other Earning Assets | | | 73,192 | | | 5.91 | % | | | 42,285 | | | 4.99 | % | | | 74,420 | | | 4.48 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Earning Assets | | | 3,637,578 | | | 6.44 | % | | | 2,887,213 | | | 6.20 | % | | | 2,635,877 | | | 5.84 | % |
Allowance for Loan Losses | | | (34,965 | ) | | | | | | (33,899 | ) | | | | | | (38,214 | ) | | | |
Nonearning Assets | | | 473,874 | | | | | | | 295,046 | | | | | | | 289,832 | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Total Assets | | $ | 4,076,487 | | | | | | $ | 3,148,360 | | | | | | $ | 2,887,495 | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing Liabilities: | | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | | | | | | |
NOW Accounts | | $ | 786,518 | | | 2.70 | % | | $ | 616,664 | | | 2.65 | % | | $ | 611,586 | | | 2.15 | % |
Savings and Money Market Accounts | | $ | 701,912 | | | 2.73 | % | | | 611,171 | | | 2.52 | % | | | 561,394 | | | 1.64 | % |
Certificates of Deposit | | $ | 1,207,040 | | | 4.53 | % | | | 836,818 | | | 4.22 | % | | | 774,909 | | | 3.43 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Interest-bearing Deposits | | | 2,695,470 | | | 3.53 | % | | | 2,064,653 | | | 3.25 | % | | | 1,947,889 | | | 2.51 | % |
Short-term Borrowings | | | 224,388 | | | 4.12 | % | | | 176,194 | | | 4.03 | % | | | 67,122 | | | 1.86 | % |
Long-term Debt | | | 297,614 | | | 5.20 | % | | | 243,573 | | | 5.04 | % | | | 247,235 | | | 4.34 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Interest-bearing Liabilities | | | 3,217,472 | | | 3.72 | % | | | 2,484,420 | | | 3.48 | % | | | 2,262,246 | | | 2.69 | % |
Noninterest-bearing Demand Deposits | | | 410,605 | | | | | | | 342,374 | | | | | | | 336,616 | | | | |
Noninterest-bearing Liabilities | | | 30,321 | | | | | | | 23,296 | | | | | | | 20,543 | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Total Liabilities | | | 3,658,398 | | | | | | | 2,850,090 | | | | | | | 2,619,405 | | | | |
Shareholders’ Equity | | | 418,089 | | | | | | | 298,270 | | | | | | | 268,090 | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 4,076,487 | | | | | | $ | 3,148,360 | | | | | | $ | 2,887,495 | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net Interest Spread | | $ | 27,610 | | | 2.72 | % | | $ | 22,421 | | | 2.72 | % | | $ | 22,420 | | | 3.15 | % |
Tax-equivalent Benefit | | | 1,109 | | | 0.12 | % | | | 969 | | | 0.13 | % | | | 859 | | | 0.13 | % |
Net Interest Income (TE) / Net Interest Margin (TE)(1) | | $ | 28,719 | | | 3.15 | % | | $ | 23,390 | | | 3.20 | % | | $ | 23,279 | | | 3.53 | % |
(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 | |
| | | 3/31/2007 | | | 12/31/2006 | | | 3/31/2006 | |
Net Interest Income | | $ | 27,610 | | | $ | 22,421 | | | $ | 22,420 | |
Effect of Tax Benefit on Interest Income | | | 1,109 | | | | 969 | | | | 859 | |
| | | | | | | | | | | | |
Net Interest Income (TE)(1) | | | 28,719 | | | | 23,390 | | | | 23,279 | |
| | | | | | | | | | | | |
Noninterest Income | | | 14,217 | | | | 4,651 | | | | 6,266 | |
Effect of Tax Benefit on Noninterest Income | | | 805 | | | | 289 | | | | 274 | |
| | | | | | | | | | | | |
Noninterest Income (TE)(1) | | | 15,022 | | | | 4,940 | | | | 6,540 | |
| | | | | | | | | | | | |
Total Revenues (TE)(1) | | $ | 43,741 | | | $ | 28,330 | | | $ | 29,819 | |
| | | | | | | | | | | | |
| | | |
Total Noninterest Expense | | $ | 29,488 | | | $ | 18,960 | | | $ | 17,114 | |
Less Intangible Amortization Expense | | | (536 | ) | | | (269 | ) | | | (290 | ) |
| | | | | | | | | | | | |
Tangible Operating Expense(2) | | $ | 28,952 | | | $ | 18,691 | | | $ | 16,824 | |
| | | | | | | | | | | | |
| | | |
Return on Average Equity | | | 8.88 | % | | | 11.86 | % | | | 12.17 | % |
Effect of Intangibles(2) | | | 7.52 | % | | | 6.29 | % | | | 7.75 | % |
| | | | | | | | | | | | |
Return on Average Tangible Equity(2) | | | 16.40 | % | | | 18.15 | % | | | 19.92 | % |
| | | | | | | | | | | | |
| | | |
Efficiency Ratio | | | 70.5 | % | | | 70.0 | % | | | 59.7 | % |
Effect of Tax Benefit Related to Tax Exempt Income | | | (3.1 | %) | | | (3.1 | %) | | | (2.3 | %) |
| | | | | | | | | | | | |
Efficiency Ratio (TE)(1) | | | 67.4 | % | | | 66.9 | % | | | 57.4 | % |
Effect of Amortization of Intangibles | | | (1.2 | %) | | | (0.9 | %) | | | (1.0 | %) |
| | | | | | | | | | | | |
Tangible Efficiency Ratio (TE)(1) (2) | | | 66.2 | % | | | 66.0 | % | | | 56.4 | % |
| | | | | | | | | | | | |
(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. |
