Exhibit 99.1
FOR IMMEDIATE RELEASE
July 21, 2009
Contact:
Daryl G. Byrd, President and CEO (337) 521-4003
John R. Davis, Senior Executive Vice President (337) 521-4005
IBERIABANK Corporation Reports Second Quarter 2009 Results
LAFAYETTE, LOUISIANA – IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 122-year-old IBERIABANK (www.iberiabank.com) and IBERIABANKfsb (www.IBERIABANKfsb.com), announced income available to common shareholders of $8.5 million for the quarter ended June 30, 2009 and fully diluted earnings per share (“EPS”) of $0.52. The second quarter 2009 results were influenced by a few significant items as described below.
“Challenges in the financial services industry continue unabated. I am proud of the leadership position we serve in these unprecedented times,” said Daryl G. Byrd, President and Chief Executive Officer of the Company. “As one of the first banks in the country to pay back our government’s investment in our Company through the TARP preferred stock and warrants, one of the first to have completed a large FDIC acquisition in this cycle, and one of the only banks to have completed a qualified equity offering, we occupy a unique position in our industry.”
Byrd continued, “Our continued balance sheet strength, profitability, and core funding provide our shareholders shelter from the inclement banking environment. We demonstrated an ability to raise substantial sums of capital consistently over the last two years, a period in which many banks could not raise capital at any price. This is a testament to the dynamic characteristics and strength of our Company and investors’ recognition of the unparalleled opportunities before us.”
Significant Influences on the Quarter Ended June 30, 2009
| | • | | Common Stock Issuance and Capital. At June 30, 2009, the Company reported a tangible common equity ratio of 7.44%, a Tier 1 leverage ratio of 9.24% and a total risk based capital ratio of 13.54%. On December 16, 2008, the Company completed an underwritten public equity offering of 2,875,000 shares of common stock at $40.00 per share with net proceeds of approximately $110 million. |
On July 7, 2009, the Company issued and sold 4,427,500 shares of common stock in a second underwritten public equity offering for net proceeds of approximately $165 million. This equity offering was completed after the end of the second quarter of 2009. As a result, the reported financial condition of our Company in this release does not take into account the impact of the most-recent equity offering. Assuming the common stock issuance was included in the capital position at quarter-end, the pro forma tangible common equity ratio would have been 10.10%, the Tier 1 leverage ratio would have been 11.97% and the total risk based capital ratio would have been 17.37% on a pro forma basis on June 30, 2009.
1
| | • | | TARP Redemption and Repurchase. On March 31, 2009, the Company redeemed the $90 million in outstanding shares of the Company’s preferred stock issued to, and held by, the Department of the Treasury under the Troubled Assets Relief Program Capital Purchase Program, or TARP. The Company paid a cash dividend on the preferred stock of $1.1 million on an after-tax basis in the first quarter of 2009, or $0.07 per share. Upon redemption of the preferred stock, the Company incurred in the first quarter of 2009 a one-time $2.2 million accelerated deemed dividend to account for the difference between the amount at which the preferred stock sale had been initially recorded and its redemption price. |
On May 20, 2009, the Company repurchased the warrant to purchase 138,490 shares of the Company’s common stock held by to the Department of the Treasury for $1.2 million. That transaction had no impact on the Company’s results of operations.
| | • | | FDIC Insurance Premium Assessment Increase. The Company incurred a special FDIC deposit insurance premium assessment in the second quarter of 2009 that applied to all FDIC-insured financial institutions. The cost of this special assessment was $2.6 million on a pre-tax basis, or $0.11 per share on an after-tax basis. |
| | • | | Asset Quality. Nonperforming Assets (“NPAs”) were $59 million at June 30, 2009, up $6 million, or 12%, compared to March 31, 2009. The ratio of NPAs to total assets was 1.04% at June 30, 2009, compared to 0.95% at March 31, 2009 and 0.79% one year ago. |
Net charge-offs increased $0.9 million on a linked quarter basis to $3.1 million in the second quarter of 2009. The ratio of annualized net charge-offs to average loans increased from 0.24% to 0.33%, on a linked quarter basis. The Company recorded a loan loss provision of $7.8 million, an increase of $4.8 million, or 157% on a linked quarter basis. The loan loss provision was elevated in the second quarter of 2009 due to the higher charge-offs and an increase in the Company’s loan loss reserves, which increased from 1.11% of total loans at March 31, 2009 to 1.21% at June 30, 2009. The cost associated with the additional provision, after the impact of the net charge-offs, was approximately $0.19 per share on an after-tax basis.
| | • | | Asset Sale Gains/Losses. The investment portfolio totaled $1.0 billion at June 30, 2009, with an unrealized gain of approximately $16 million, compared to $26 million at March 31, 2009 and an unrealized loss of approximately $2 million one year ago. The Company realized $5.9 million in gains on the sale of securities in the second quarter of 2009 compared to an insignificant amount in the first quarter of 2009, or a difference of $0.24 per share on an after-tax basis. |
| | • | | Subsidiary Name Change. On May 4, 2009, Pulaski Bank and Trust Company changed its corporate title to IBERIABANKfsb. The Company believes the name change has provided the subsidiary’s operation expanded brand awareness and marketing efficiencies. The Company incurred a one-time pre-tax expense during the second quarter of $0.8 million associated with the name change, or $0.03 per share on an after-tax basis. |
2
Non-GAAP EPS Schedule (See Reconciliation of GAAP Net Income to Non-GAAP Net Income)
| | | | | | | |
| | | Fully Diluted EPS to
Common Shareholder | |
| | | 1Q09 | | 2Q09 | |
Fully Diluted EPS as Reported | | $ | 0.36 | | $ | 0.52 | |
Deemed Dividend - TARP Preferred Stock Issued 12/5/08 | | | 0.07 | | | — | |
Deemed Dividend - TARP Preferred Stock Redeemed 3/31/09 | | | 0.14 | | | — | |
Special FDIC Assessment | | | — | | | 0.11 | |
(Gain)/Loss on Sale of Investments | | | — | | | (0.24 | ) |
Pulaski Name Change Expenses | | | — | | | 0.03 | |
Impact of 12/16/08 Common Stock Issuance - 2,875,000 Shares | | | 0.08 | | | 0.11 | |
| | | | | | | |
| | $ | 0.65 | | $ | 0.53 | |
| | | | | | | |
Note - All Items have been adjusted using Marginal Tax Impact
Balance Sheet and Yields
Total assets increased $155 million, or 3%, to $5.7 billion at June 30, 2009. Since March 31, 2009, total loans increased $71 million, or 2%, total deposits increased $39 million, or 1%, and total shareholders’ equity increased $5 million, or 1%. Total investment securities remained stable at approximately $1.0 billion.
The investment portfolio remained unchanged at 18% of total assets at June 30, 2009, compared to March 31, 2009 and one year ago. At June 30, 2009, the portfolio had a modified duration of 2.8 years, compared to 2.4 years at March 31, 2009. Based on projected prepayment speeds and other assumptions at June 30, 2009, the portfolio was expected to generate approximately $433 million in cash flows, or about 42% of the portfolio, over the next 18 months. The average yield on investment securities decreased 14 basis points on a linked quarter basis, to 4.47% in the second quarter of 2009. The Company held in its investment portfolio primarily government agency and municipal securities.
Period-End Loan Volumes ($ in Millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | IBERIABANK | | | IBERIABANKfsb | |
Loans | | 9/30/08 | | | 12/31/08 | | | 3/31/09 | | | 6/30/09 | | | 9/30/08 | | | 12/31/08 | | | 3/31/09 | | | 6/30/09 | | | Since
Acq. | |
Commercial | | $ | 1,650 | | | $ | 1,768 | | | $ | 1,806 | | | $ | 1,877 | | | $ | 537 | | | $ | 530 | | | $ | 536 | | | $ | 554 | | | 24 | % |
Consumer | | | 667 | | | | 672 | | | | 673 | | | | 686 | | | | 237 | | | | 239 | | | | 233 | | | | 234 | | | -2 | % |
Mortgage | | | 473 | | | | 461 | | | | 438 | | | | 409 | | | | 65 | | | | 74 | | | | 72 | | | | 69 | | | 2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Loans | | $ | 2,790 | | | $ | 2,901 | | | $ | 2,917 | | | $ | 2,972 | | | $ | 839 | | | $ | 843 | | | $ | 841 | | | $ | 857 | | | 14 | % |
Growth | | | 2 | % | | | 4 | % | | | 1 | % | | | 2 | % | | | 3 | % | | | 0 | % | | | 0 | % | | | 2 | % | | | |
Period-end loans increased $71 million between March 31, 2009 and June 30, 2009, and average loans increased $45 million, or 1%, on a linked quarter basis. On this linked quarter basis, the yield on average total loans declined five basis points to 5.24%. Yields on commercial and mortgage loans remained stable on a linked quarter basis, while consumer loans decreased 15 basis points.
The IBERIABANKfsbbuilder construction portfolio continued to compress in the second quarter, as homes were sold, loans were paid down, and loans were moved into OREO. The total volume of this portfolio declined from $22 million at March 31, 2009 to $18 million at June 30, 2009, or down 19%. At June 30, 2009, the portfolio contained 52 completed houses ($9 million), only one house less than 100%
3
complete (not funded), 104 lot loans ($5 million), and only two development loans ($4 million). The average funded amount is approximately $182,000 per loan. At June 30, 2009, IBERIABANKfsb’s builder construction portfolio accounted for only 2.1% of IBERIABANKfsb’stotal loan portfolio and only 0.5% of the Company’s consolidated total loan portfolio.
At June 30, 2009, IBERIABANK had $133 million in construction and land development loans, equal to approximately 4% of its total loans. Approximately 72% of this portfolio is located in south Louisiana, approximately 80% is funded (83% at March 31, 2009), and approximately 74% is comprised of completed houses by dollar amount (74% at March 31, 2009). At June 30, 2009, only 1.75% of this portfolio was past due 30 days or more (1.80% at March 31, 2009).
The Company’s commercial real estate (“CRE”) loan portfolio, excluding the IBERIABANKfsb builder portfolio, is comprised of credits primarily in the Company’s banking markets. At June 30, 2009, the average loan size in the CRE portfolio was approximately $580,000, and loans past due 30 days or more (including nonaccruing loans) equated to 1.74% of the CRE loans outstanding (1.39% at March 31, 2009). Approximately 59% of the CRE portfolio was based in southern Louisiana, 17% in northern Louisiana, and 24% in IBERIABANKfsb’s markets. At June 30, 2009, many of the local markets in southern Louisiana remained economically healthy. Excluding construction-related credits, at June 30, 2009, approximately 44% of the Company’s CRE portfolio was owner-occupied and 56% non-owner occupied. Non-owner occupied CRE loans equated to 150% of total risk based capital at June 30, 2009.
At June 30, 2009, the Company’s consumer loan portfolio maintained favorable asset quality. Based on a recent evaluation of the consumer loan portfolio, the average credit score of the portfolio was 717. Loans past due 30 days or more in this portfolio were 1.44% at June 30, 2009 (compared to 1.53% at March 31, 2009). Home equity loans totaled $350 million, with 0.91% past due 30 days or more (0.79% at March 31, 2009). Home equity lines of credit totaled $170 million, with 0.52% past due 30 days or more (0.86% at March 31, 2009). Approximately 66% of the Company’s total home equity portfolio is in Louisiana, 21% in Arkansas, and 8% in Oklahoma. Annualized net charge-offs in this portfolio were 0.07% of loans in the second quarter of 2009 (0.13% in the first quarter of 2009). The weighted average loan-to-value at origination for this portfolio over the last three years was 68%. Total consumer real estate loan production in the second quarter of 2009 was 663 loans (up 6% on a linked quarter basis) totaling $45 million (up 3% on a linked quarter basis), had an average credit score of 760, and an average loan-to-value of 69%.
The indirect automobile portfolio totaled $270 million at June 30, 2009, up 2% compared to March 31, 2009. This portfolio had 1.06% in loans past due 30 days or more (including nonaccruing loans) at June 30, 2009 (0.97% at March 31, 2009). Annualized net charge-offs equated to approximately 0.42% of average loans in the second quarter of 2009 (0.43% in the first quarter of 2009). Approximately 87% of the indirect automobile portfolio at year-end was in the Acadiana region of Louisiana, which currently experiences one of the lowest unemployment rates in the nation.
At June 30, 2009, approximately 61% of the Company’s loan portfolio had fixed interest rates. Eliminating fixed rate loans that mature within a one-year time frame reduces this percentage to 55%. Approximately 74% of the Company’s time deposit base reprices within the next 12 months. The rapid decline in short-term interest rates, balance sheet mix changes, and the Company’s excess liquidity position have caused the Company’s interest rate risk position to become more asset sensitive over time. The Company’s interest rate risk modeling at June 30, 2009, indicated the Company is modestly asset sensitive over a 12-month time frame. A 100 basis point instantaneous and parallel upward shift in interest rates is estimated to increase net interest income over 12 months by approximately 3.7%. Similarly, a 100 basis point decrease in interest rates is expected to decrease net interest income by approximately 2.8%.
4
Period-End Deposit Volumes ($ in Millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | IBERIABANK | | | IBERIABANKfsb | |
Deposits | | 9/30/08 | | | 12/31/08 | | | 3/31/09 | | | 6/30/09 | | | 9/30/08 | | | 12/31/08 | | | 3/31/09 | | | 6/30/09 | | | Since
Acq. | |
Noninterest | | $ | 394 | | | $ | 465 | | | $ | 452 | | | $ | 451 | | | $ | 180 | | | $ | 156 | | | $ | 129 | | | $ | 126 | | | 31 | % |
NOW Accounts | | | 596 | | | | 615 | | | | 747 | | | | 750 | | | | 187 | | | | 206 | | | | 205 | | | | 198 | | | 3 | % |
Savings/MMkt | | | 761 | | | | 755 | | | | 851 | | | | 888 | | | | 234 | | | | 199 | | | | 220 | | | | 240 | | | 36 | % |
Time Deposits | | | 964 | | | | 1,006 | | | | 1,009 | | | | 1,014 | | | | 619 | | | | 593 | | | | 520 | | | | 507 | | | -6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Deposits | | $ | 2,715 | | | $ | 2,842 | | | $ | 3,059 | | | $ | 3,103 | | | $ | 1,220 | | | $ | 1,154 | | | $ | 1,074 | | | $ | 1,071 | | | 7 | % |
Growth | | | -3 | % | | | 5 | % | | | 8 | % | | | 1 | % | | | -2 | % | | | -5 | % | | | -7 | % | | | 0 | % | | | |
Total average deposits increased $113 million, or 3%, on a linked quarter basis, and increased $39 million, or 1%, on a period-end basis between March 31, 2009 and June 30, 2009. On a period end basis, deposits at IBERIABANK increased $44 million, or 1%, while deposits at IBERIABANKfsbdecreased $3 million, or less than 1%.
On a linked quarter basis, average noninterest bearing deposits increased $16 million, or 3%, and interest-bearing deposits increased $97 million, or 3%. The rate on average interest bearing deposits in the second quarter of 2009 was 1.90%, a decrease of 19 basis points on a linked quarter basis, the same rate decline as average interest bearing liabilities. The Company had only $50 million in short-term borrowings at June 30, 2009, or approximately 1.0% of total funding sources.
Quarterly Average Yields/Cost (Taxable Equivalent Basis)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | IBERIABANK | | | IBERIABANKfsb | |
| | | 2Q08 | | | 3Q08 | | | 4Q08 | | | 1Q09 | | | 2Q09 | | | 2Q08 | | | 3Q08 | | | 4Q08 | | | 1Q09 | | | 2Q09 | |
Earning Asset Yield | | 5.73 | % | | 5.66 | % | | 5.60 | % | | 4.92 | % | | 4.91 | % | | 5.56 | % | | 5.43 | % | | 5.37 | % | | 5.41 | % | | 5.29 | % |
Cost Of Int-Bearing Liabs | | 2.93 | % | | 2.71 | % | | 2.43 | % | | 2.10 | % | | 1.97 | % | | 3.41 | % | | 3.26 | % | | 2.99 | % | | 2.55 | % | | 2.32 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Interest Spread | | 2.80 | % | | 2.96 | % | | 3.17 | % | | 2.82 | % | | 2.94 | % | | 2.15 | % | | 2.18 | % | | 2.37 | % | | 2.86 | % | | 2.97 | % |
Net Interest Margin | | 3.22 | % | | 3.36 | % | | 3.56 | % | | 3.15 | % | | 3.26 | % | | 2.48 | % | | 2.62 | % | | 2.78 | % | | 3.19 | % | | 3.28 | % |
Operating Results
Tax-equivalent net interest income increased $2.1 million, or 6% on a linked quarter basis. While average earning assets increased only $7 million (less than 1%), the tax-equivalent net interest margin improved 15 basis points on a linked quarter basis. The average earning asset yield edged up one basis point while interest bearing deposits and liabilities declined 19 basis points, resulting in a 20-basis point improvement in the net interest spread and a 15-basis point improvement in the net interest margin.
Aggregate noninterest income increased $8.3 million, or 35%, on a linked quarter basis. The fee income businesses exhibited significant noninterest revenue improvement during the second quarter of 2009. Gains on the sale of mortgage loans climbed $2.3 million on a linked quarter basis, or 27%, to $10.8 million. Title insurance income gained $0.7 million, or 17%, over that period to $5.2 million. Service charge income on deposit accounts and ATM fee income each improved approximately $0.2 million on a linked quarter basis. Partially offsetting the improvements in the seasonal businesses were declines in credit card income (down $0.3 million) and brokerage income (down $0.2 million).
5
The Company’s mortgage origination business continued to expand during the second quarter of 2009 due to elevated refinancing activity and increased purchase money transactions. The Company originated $515 million in mortgage loans during the second quarter of 2009, up $96 million, or 23%, on a linked quarter basis. Client loan refinancing opportunities accounted for approximately 57% of mortgage loan originations in the second quarter of 2009 compared to 63% in the first quarter of 2009. The Company sold $507 million in mortgage loans during this period, up $107 million, or 27%, compared to the first quarter of 2009. Sales margins remained favorable throughout the first half of 2009. Gains on sales of mortgage loans totaled $10.8 million in the second quarter of 2009, up 27% on a linked quarter basis. The mortgage pipeline was approximately $100 million during the first three weeks of July 2009. In recent weeks, loan refinancing accounted for approximately 30% of mortgage activity.
Due to significant unrealized gains in the Company’s investment portfolio and management’s expectations of higher long-term interest rates, the Company previously disclosed its intent to sell selected investment securities which would likely generate realized gains on the sale of those instruments. During the second quarter of 2009, the Company recorded investment security sales (net of purchases) totaling approximately $62 million in market value resulting in realized gains of $5.9 million.
Noninterest expense increased $6.0 million, or 14%, on a linked quarter basis. The primary drivers of the increase in expense were the special FDIC insurance assessment ($2.4 million), base compensation (up $1.1 million), mortgage commissions (up $0.7 million, or 32%), and share tax, credit-related, marketing and business development, hospitalization, and ATM expenses (each up approximately $0.2 to $0.4 million). Partially offsetting these increases were expense reductions in credit card expenses, OREO costs, and payroll tax expense on a linked quarter basis. In aggregate, the combined tangible efficiency ratio of the bank subsidiaries was approximately 62.5% in the second quarter of 2009 (64% in the first quarter of 2009).
Basic net income to common shareholders in the second quarter of 2009 totaled $8.5 million, up 46% on a linked quarter basis. Return on average assets (“ROA”) was 0.61% for the second quarter of 2009, return on average common equity (“ROE”) was 5.11%, and return on average tangible common equity was 8.75%.
Asset Quality
The Company experienced a modest decline in credit quality during the second quarter of 2009 and continued reduction of the builder construction portfolio at the IBERIABANKfsb franchise.
Summary Asset Quality Statistics
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | IBERIABANK | | | IBERIABANKfsb | | | IBERIABANK Corp. | |
($thousands) | | Q408 | | | Q109 | | | Q209 | | | Q408 | | | Q109 | | | Q209 | | | Q408 | | | Q109 | | | Q209 | |
Nonaccruals | | $ | 6,487 | | | $ | 15,883 | | | $ | 14,110 | | | $ | 21,337 | | | $ | 17,867 | | | $ | 14,409 | | | $ | 27,825 | | | $ | 33,750 | | | $ | 28,519 | |
OREO & Foreclosed | | | 2,167 | | | | 1,692 | | | | 1,199 | | | | 14,146 | | | | 14,336 | | | | 16,153 | | | | 16,312 | | | | 16,028 | | | | 17,352 | |
90+ Days Past Due | | | 1,309 | | | | 1,655 | | | | 3,596 | | | | 1,172 | | | | 1,297 | | | | 9,663 | | | | 2,481 | | | | 2,952 | | | | 13,259 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Nonperforming Assets | | $ | 9,962 | | | $ | 19,230 | | | $ | 18,905 | | | $ | 36,655 | | | $ | 33,500 | | | $ | 40,225 | | | $ | 46,618 | | | $ | 52,730 | | | $ | 59,130 | |
NPAs/Assets | | | 0.26 | % | | | 0.48 | % | | | 0.45 | % | | | 2.42 | % | | | 2.31 | % | | | 2.78 | % | | | 0.83 | % | | | 0.95 | % | | | 1.04 | % |
NPAs/(Loans + OREO) | | | 0.34 | % | | | 0.66 | % | | | 0.64 | % | | | 4.28 | % | | | 3.92 | % | | | 4.60 | % | | | 1.24 | % | | | 1.40 | % | | | 1.54 | % |
LLR/Loans | | | 0.92 | % | | | 0.96 | % | | | 1.01 | % | | | 1.68 | % | | | 1.64 | % | | | 1.89 | % | | | 1.09 | % | | | 1.11 | % | | | 1.21 | % |
Net Charge-Offs/Loans | | | 0.11 | % | | | 0.15 | % | | | 0.08 | % | | | 1.93 | % | | | 0.58 | % | | | 1.22 | % | | | 0.53 | % | | | 0.24 | % | | | 0.33 | % |
NPAs increased $6 million, or 12%, to $59 million at June 30, 2009, or 1.04% of total assets, compared to 0.95% at March 31, 2009. IBERIABANKfsb accounted for 68% of total NPAs at June 30, 2009. Loans past due 30 days or more (including nonaccruing loans) represented 1.38% of total loans at June 30, 2009, down 17 basis points, compared to 1.55% of total loans at March 31, 2009.
6
Loans Past Due
Loans Past Due 30 Days Or More And Nonaccruing Loans As % Of Loans Outstanding
| | | | | | | | | | | | | | | | | | | | | |
By Entity: | | 12/31/07 | | | 3/31/08 | | | 6/30/08 | | | 9/30/08 | | | 12/31/08 | | | 3/31/09 | | | 6/30/09 | |
IBERIABANK | | | | | | | | | | | | | | | | | | | | | |
30+ days past due | | 0.45 | % | | 0.42 | % | | 0.32 | % | | 0.28 | % | | 0.69 | % | | 0.31 | % | | 0.33 | % |
Non-accrual | | 0.14 | % | | 0.17 | % | | 0.23 | % | | 0.21 | % | | 0.22 | % | | 0.54 | % | | 0.47 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Past Due | | 0.58 | % | | 0.59 | % | | 0.55 | % | | 0.49 | % | | 0.92 | % | | 0.85 | % | | 0.80 | % |
IBERIABANKfsb | | | | | | | | | | | | | | | | | | | | | |
30+ days past due | | 1.08 | % | | 1.45 | % | | 1.06 | % | | 1.29 | % | | 1.57 | % | | 1.85 | % | | 1.73 | % |
Non-accrual | | 3.85 | % | | 3.54 | % | | 2.82 | % | | 2.42 | % | | 2.53 | % | | 2.12 | % | | 1.68 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Past Due | | 4.93 | % | | 4.99 | % | | 3.88 | % | | 3.71 | % | | 4.10 | % | | 3.97 | % | | 3.41 | % |
Consolidated | | | | | | | | | | | | | | | | | | | | | |
30+ days past due | | 0.61 | % | | 0.68 | % | | 0.51 | % | | 0.52 | % | | 0.89 | % | | 0.65 | % | | 0.64 | % |
Non-accrual | | 1.05 | % | | 1.01 | % | | 0.87 | % | | 0.72 | % | | 0.74 | % | | 0.90 | % | | 0.74 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Past Due | | 1.66 | % | | 1.69 | % | | 1.38 | % | | 1.24 | % | | 1.63 | % | | 1.55 | % | | 1.38 | % |
At June 30, 2009, the allowance for loan losses was 1.21%, up from 1.11% at March 31, 2009. Loan loss reserve coverage of nonperforming loans and nonperforming assets at June 30, 2009 were 1.1 and 0.8 times, respectively, similar to the comparable ratios at March 31, 2009.
The Company reported net charge-offs of $3.1 million in the second quarter of 2009, up $0.9 million, or 39%, on a linked quarter basis. The ratio of net charge-offs to average loans was 0.33% in the second quarter of 2009, compared to 0.24% in the first quarter of 2009. The Company recorded a $7.8 million loan loss provision in the second quarter of 2009, up $4.8 million, or 157% from the $3.0 million provision in the first quarter of 2009. Management considers the loan loss reserve adequate to absorb credit losses inherent in the loan portfolio.
Capital Position
The Company maintains strong capital ratios compared to peers. The equity-to-assets ratio was 11.58% at June 30, 2009, compared to 11.82% at March 31, 2009 and 9.57% one year ago. At June 30, 2009, the Company reported a tangible common equity ratio of 7.44%, compared to 7.51% at March 31, 2009. At that time, the Company’s Tier 1 leverage ratio was 9.24%, compared to 9.16% at March 31, 2009 and 7.25% one year ago. The Company’s total risk based capital ratio was 13.54% compared to 13.58% at March 31, 2009 and 10.39% one year ago.
In July 2009, the Company issued and sold 4,427,500 shares of common stock, including the 15% over-allotment option for 577,500 shares, for net proceeds of approximately $165 million in a public underwritten equity offering. The public offering was oversubscribed with aggregate orders totaling approximately $1.6 billion. Shares were sold in the offering at a price of $39.00 per share.
7
Regulatory Capital Ratios
At June 30, 2009
| | | | | | | | | | | | | | | |
Capital Ratio | | Well
Capitalized | | | IBERIABANK | | | IBERIABANK fsb | | | IBERIABANK
Corporation | | | IBERIABANK
Corporation* | |
Tier 1 Leverage | | 5.00 | % | | 7.47 | % | | 9.39 | % | | 9.24 | % | | 11.97 | % |
Tier 1 Risk Based | | 6.00 | % | | 9.54 | % | | 12.54 | % | | 11.83 | % | | 15.66 | % |
Total Risk Based | | 10.00 | % | | 11.31 | % | | 13.78 | % | | 13.54 | % | | 17.37 | % |
| * | Proforma basis assumes July stock sale completed on June 30, 2009. |
At June 30, 2009, book value per share was $41.13, up $0.15, or less than 1%, compared to March 31, 2009 and up 4% compared to one year ago. Tangible book value per share improved $0.30, or 1%, over that period to $25.12, and up 30% compared to one year ago.
On June 16, 2009, the Company declared a quarterly cash dividend of $0.34 per share. This dividend level equated to an annualized dividend rate of $1.36 per share and an indicated dividend yield of 3.30%, based on the closing stock price of the Company’s common stock on July 21, 2009 of $41.20 per share. Based on that closing stock price, the Company’s common stock traded at a price-to-earnings ratio of 22.5 times the current First Call average consensus analyst estimate of $1.83 per fully diluted EPS for 2009. This price equated to 1.00 times June 30, 2009 book value per share of $41.13 and 1.64 times tangible book value per share of $25.12.
IBERIABANK Corporation
IBERIABANK Corporation is a multi-bank financial holding company with 152 combined offices, including 90 bank branch offices in Louisiana, Arkansas, Tennessee, and Alabama, one loan production office in Texas, 26 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 35 locations in eight states. The Company’s common stock trades on the NASDAQ Global Select Market under the symbol “IBKC” and the Company’s market capitalization is approximately $847 million, based on the closing stock price on July 21, 2009.
The following eleven investment firms currently provide equity research coverage on IBERIABANK Corporation:
| | • | | Howe Barnes Hoefer & Arnett, Inc. |
| | • | | Keefe, Bruyette & Woods |
| | • | | Robert W. Baird & Company |
| | • | | Soleil Securities Corporation/Tenner Investment Research |
| | • | | Stifel Nicolaus & Company |
| | • | | SunTrust Robinson-Humphrey |
8
Conference Call
In association with this earnings release, the Company will host a live conference call to discuss the financial results for the quarter just completed. The telephone conference call will be held on Wednesday, July 22, 2009, beginning at 8:00 a.m. Central Time by dialing 1-800-230-1093. The confirmation code for the call is 106885. A replay of the call will be available until midnight Central Time on July 29, 2009 by dialing 1-800-475-6701. The confirmation code for the replay is 106885. The Company has prepared a PowerPoint presentation that supplements information contained in this press release. The PowerPoint presentation may be accessed on the Company’s web site,www.iberiabank.com, under “Investor Relations” and then “Presentations.”
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with GAAP. The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or nonrecurring transactions. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP disclosures are included as tables at the end of this release.
Forward Looking Statements
To the extent that statements in this press release relate to future plans, objectives, financial results or performance of IBERIABANK Corporation, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which are based on management’s current information, estimates and assumptions and the current economic environment, are generally identified by the use of the words “plan”, “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project” or similar expressions. IBERIABANK Corporation’s actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties.
Actual results could differ materially because of factors such as the current level of market volatility and our ability to execute our growth strategy, risks relating to the integration of acquired companies that have previously been operated separately, credit risk of our customers, effects of the on-going correction in residential real estate prices and reduced levels of home sales, sufficiency of our allowance for loan losses, changes in interest rates, access to funding sources, reliance on the services of executive management, competition for loans, deposits and investment dollars, reputational risk and social factors, changes in government regulations and legislation, increases in FDIC insurance assessments, geographic concentration of our markets, rapid changes in the financial services industry, dependence on our operational, technological, and organizational infrastructure, hurricanes and other adverse weather events, the volatility of our common stock, and valuation of intangible assets. These and other factors that may cause actual results to differ materially from these forward-looking statements are discussed in the Company’s Annual Report on Form 10-K and other filings with the Securities and Exchange Commission, available at the SEC’s website,www.sec.gov, and the Company’s website,www.iberiabank.com. All information in this release is as of the date of this release. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
9
IBERIABANK CORPORATION
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | |
| | | For The Quarter Ended
June 30, | | | For The Quarter Ended
March 31, | |
| | | 2009 | | | 2008 | | | % Change | | | 2009 | | | % Change | |
Income Data (in thousands): | | | | | | | | | | | | | | | | | | |
Net Interest Income | | $ | 38,276 | | | $ | 32,473 | | | 18 | % | | $ | 36,287 | | | 5 | % |
Net Interest Income (TE) (1) | | | 39,694 | | | | 33,692 | | | 18 | % | | | 37,623 | | | 6 | % |
Net Income | | | 8,474 | | | | 9,526 | | | (11 | %) | | | 9,145 | | | (7 | %) |
Earnings Available to Common Shareholders- Basic | | | 8,474 | | | | 9,526 | | | (11 | %) | | | 5,795 | | | 46 | % |
Earnings Available to Common Shareholders- Diluted | | | 8,224 | | | | 9,254 | | | (11 | %) | | | 5,626 | | | 46 | % |
Per Share Data: | | | | | | | | | | | | | | | | | | |
Earnings Available to Common Shareholders - Basic | | $ | 0.53 | | | $ | 0.74 | | | (29 | %) | | $ | 0.36 | | | 45 | % |
Earnings Available to Common Shareholders - Diluted | | | 0.52 | | | | 0.72 | | | (28 | %) | | | 0.36 | | | 46 | % |
Book Value Per Common Share | | | 41.13 | | | | 39.49 | | | 4 | % | | | 40.98 | | | 0 | % |
Tangible Book Value Per Common Share (2) | | | 25.12 | | | | 19.27 | | | 30 | % | | | 24.82 | | | 1 | % |
Cash Dividends | | | 0.34 | | | | 0.34 | | | — | | | | 0.34 | | | — | |
Number of Shares Outstanding: | | | | | | | | | | | | | | | | | | |
Basic Shares (Average) | | | 16,044,634 | | | | 12,876,274 | | | 25 | % | | | 15,928,634 | | | 1 | % |
Diluted Shares (Average) | | | 15,793,002 | | | | 12,782,639 | | | 24 | % | | | 15,728,518 | | | 0 | % |
Book Value Shares (Period End)(3) | | | 16,140,608 | | | | 12,903,682 | | | 25 | % | | | 16,022,718 | | | 1 | % |
Key Ratios:(4) | | | | | | | | | | | | | | | | | | |
Return on Average Assets | | | 0.61 | % | | | 0.73 | % | | | | | | 0.67 | % | | | |
Return on Average Common Equity | | | 5.11 | % | | | 7.45 | % | | | | | | 3.59 | % | | | |
Return on Average Tangible Common Equity(2) | | | 8.75 | % | | | 15.70 | % | | | | | | 6.35 | % | | | |
Net Interest Margin (TE)(1) | | | 3.17 | % | | | 2.87 | % | | | | | | 3.02 | % | | | |
Efficiency Ratio | | | 70.9 | % | | | 73.0 | % | | | | | | 73.0 | % | | | |
Tangible Efficiency Ratio (TE)(1) (2) | | | 68.2 | % | | | 69.9 | % | | | | | | 69.9 | % | | | |
Average Loans to Average Deposits | | | 91.7 | % | | | 88.4 | % | | | | | | 93.2 | % | | | |
Nonperforming Assets to Total Assets(5) | | | 1.04 | % | | | 0.79 | % | | | | | | 0.95 | % | | | |
Allowance for Loan Losses to Loans | | | 1.21 | % | | | 1.12 | % | | | | | | 1.11 | % | | | |
Net Charge-offs to Average Loans | | | 0.33 | % | | | 0.11 | % | | | | | | 0.24 | % | | | |
Average Equity to Average Total Assets | | | 11.86 | % | | | 9.85 | % | | | | | | 13.35 | % | | | |
Tier 1 Leverage Ratio | | | 9.24 | % | | | 7.25 | % | | | | | | 9.16 | % | | | |
Common Stock Dividend Payout Ratio | | | 64.8 | % | | | 46.1 | % | | | | | | 94.0 | % | | | |
Tangible Common Equity Ratio | | | 7.44 | % | | | 4.92 | % | | | | | | 7.51 | % | | | |
Tangible Common Equity to Risk-Weighted Assets | | | 9.76 | % | | | 6.48 | % | | | | | | 9.78 | % | | | |
| (1) | Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%. |
| (2) | Tangible calculations eliminate the effect of goodwill and acquisition related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable. |
| (3) | Shares used for book value purposes exclude shares held in treasury at the end of the period. |
| (4) | All ratios are calculated on an annualized basis for the period indicated. |
| (5) | Nonperforming assets consist of nonaccruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets. |
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands except per share data)
| | | | | | | | | | | | | | | | | | | |
| | | June 30, | | | March 31,
2009 | | | December 31,
2008 | |
BALANCE SHEET (End of Period) | | 2009 | | | 2008 | | | % Change | | | |
ASSETS | | | | | | | | | | | | | | | | | | | |
Cash and Due From Banks | | $ | 149,863 | | | $ | 197,133 | | | (24.0 | %) | | $ | 88,010 | | | $ | 159,716 | |
Interest-bearing Deposits in Banks | | | 41,482 | | | | 42,713 | | | (2.9 | %) | | | 75,351 | | | | 186,149 | |
| | | | | | | | | | | | | | | | | | | |
Total Cash and Equivalents | | | 191,345 | | | | 239,846 | | | (20.2 | %) | | | 163,361 | | | | 345,865 | |
Investment Securities Available for Sale | | | 916,883 | | | | 888,934 | | | 3.1 | % | | | 929,131 | | | | 828,743 | |
Investment Securities Held to Maturity | | | 106,505 | | | | 56,903 | | | 87.2 | % | | | 88,832 | | | | 60,733 | |
| | | | | | | | | | | | | | | | | | | |
Total Investment Securities | | | 1,023,388 | | | | 945,837 | | | 8.2 | % | | | 1,017,963 | | | | 889,476 | |
Mortgage Loans Held for Sale | | | 90,109 | | | | 76,189 | | | 18.3 | % | | | 81,077 | | | | 63,503 | |
Loans, Net of Unearned Income | | | 3,829,326 | | | | 3,540,546 | | | 8.2 | % | | | 3,757,959 | | | | 3,744,402 | |
Allowance for Loan Losses | | | (46,329 | ) | | | (39,753 | ) | | 16.5 | % | | | (41,662 | ) | | | (40,872 | ) |
| | | | | | | | | | | | | | | | | | | |
Loans, net | | | 3,782,997 | | | | 3,500,793 | | | 8.1 | % | | | 3,716,297 | | | | 3,703,530 | |
Premises and Equipment | | | 130,558 | | | | 134,344 | | | (2.8 | %) | | | 131,235 | | | | 131,404 | |
Goodwill and Other Intangibles | | | 258,437 | | | | 260,937 | | | (1.0 | %) | | | 259,060 | | | | 259,683 | |
Mortgage Servicing Rights | | | 207 | | | | 18 | | | 1050.8 | % | | | 241 | | | | 188 | |
Other Assets | | | 225,586 | | | | 165,915 | | | 36.0 | % | | | 178,839 | | | | 189,577 | |
| | | | | | | | | | | | | | | | | | | |
Total Assets | | $ | 5,702,627 | | | $ | 5,323,879 | | | 7.1 | % | | $ | 5,548,073 | | | $ | 5,583,226 | |
| | | | | | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing Deposits | | $ | 576,042 | | | $ | 519,516 | | | 10.9 | % | | $ | 580,607 | | | $ | 620,637 | |
Interest-bearing Deposits | | | 3,596,853 | | | | 3,517,105 | | | 2.3 | % | | | 3,552,873 | | | | 3,375,179 | |
| | | | | | | | | | | | | | | | | | | |
Total Deposits | | | 4,172,895 | | | | 4,036,621 | | | 3.4 | % | | | 4,133,480 | | | | 3,995,816 | |
Short-term Borrowings | | | 50,000 | | | | 7,000 | | | 614.3 | % | | | — | | | | 58,000 | |
Securities Sold Under Agreements to Repurchase | | | 206,964 | | | | 114,481 | | | 80.8 | % | | | 142,149 | | | | 150,213 | |
Long-term Debt | | | 538,161 | | | | 569,710 | | | (5.5 | %) | | | 544,138 | | | | 568,479 | |
Other Liabilities | | | 74,033 | | | | 86,533 | | | (14.4 | %) | | | 72,720 | | | | 76,510 | |
| | | | | | | | | | | | | | | | | | | |
Total Liabilities | | | 5,042,053 | | | | 4,814,345 | | | 4.7 | % | | | 4,892,487 | | | | 4,849,018 | |
Total Shareholders’ Equity | | | 660,574 | | | | 509,534 | | | 29.6 | % | | | 655,586 | | | | 734,208 | |
| | | | | | | | | | | | | | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 5,702,627 | | | $ | 5,323,879 | | | 7.1 | % | | $ | 5,548,073 | | | $ | 5,583,226 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | For The Three Months Ended
June 30, | | | For The Six Months Ended
June 30, | |
INCOME STATEMENT | | 2009 | | | 2008 | | | % Change | | | 2009 | | | 2008 | | | % Change | |
Interest Income | | $ | 60,974 | | | $ | 65,120 | | | (6.4 | %) | | $ | 121,295 | | | $ | 132,430 | | | (8.4 | %) |
Interest Expense | | | 22,698 | | | | 32,647 | | | (30.5 | %) | | | 46,732 | | | | 67,131 | | | (30.4 | %) |
| | | | | | | | | | | | | | | | | | | | | | |
Net Interest Income | | | 38,276 | | | | 32,473 | | | 17.9 | % | | | 74,563 | | | | 65,299 | | | 14.2 | % |
Provision for Loan Losses | | | 7,783 | | | | 1,537 | | | 406.5 | % | | | 10,815 | | | | 4,231 | | | 155.6 | % |
| | | | | | | | | | | | | | | | | | | | | | |
Net Interest Income After Provision for Loan Losses | | | 30,493 | | | | 30,936 | | | (1.4 | %) | | | 63,748 | | | | 61,068 | | | 4.4 | % |
Service Charges | | | 5,479 | | | | 5,935 | | | (7.7 | %) | | | 10,751 | | | | 11,049 | | | (2.7 | %) |
ATM / Debit Card Fee Income | | | 1,963 | | | | 1,608 | | | 22.1 | % | | | 3,677 | | | | 3,015 | | | 22.0 | % |
BOLI Proceeds and Cash Surrender Value Income | | | 720 | | | | 767 | | | (6.1 | %) | | | 1,433 | | | | 1,509 | | | (5.0 | %) |
Gain on Sale of Loans, net | | | 10,808 | | | | 4,690 | | | 130.5 | % | | | 19,338 | | | | 16,037 | | | 20.6 | % |
Gain on Sale of Investments, net | | | 5,879 | | | | 482 | | | 1118.9 | % | | | 5,882 | | | | 605 | | | 872.9 | % |
Title Revenue | | | 5,232 | | | | 5,472 | | | (4.4 | %) | | | 9,711 | | | | 9,981 | | | (2.7 | %) |
Broker Commissions | | | 1,000 | | | | 1,682 | | | (40.5 | %) | | | 2,215 | | | | 2,972 | | | (25.5 | %) |
Other Noninterest Income | | | 949 | | | | 2,047 | | | (53.6 | %) | | | 2,752 | | | | 3,801 | | | (27.6 | %) |
| | | | | | | | | | | | | | | | | | | | | | |
Total Noninterest Income | | | 32,030 | | | | 22,683 | | | 41.2 | % | | | 55,759 | | | | 48,969 | | | 13.9 | % |
Salaries and Employee Benefits | | | 26,652 | | | | 22,393 | | | 19.0 | % | | | 50,879 | | | | 43,311 | | | 17.5 | % |
Occupancy and Equipment | | | 5,781 | | | | 5,617 | | | 2.9 | % | | | 11,413 | | | | 10,948 | | | 4.2 | % |
Amortization of Acquisition Intangibles | | | 622 | | | | 575 | | | 8.1 | % | | | 1,243 | | | | 1,150 | | | 8.1 | % |
Other Noninterest Expense | | | 16,759 | | | | 11,697 | | | 43.3 | % | | | 30,071 | | | | 21,670 | | | 38.8 | % |
| | | | | | | | | | | | | | | | | | | | | | |
Total Noninterest Expense | | | 49,814 | | | | 40,282 | | | 23.7 | % | | | 93,606 | | | | 77,079 | | | 21.4 | % |
Income Before Income Taxes | | | 12,709 | | | | 13,337 | | | (4.7 | %) | | | 25,901 | | | | 32,958 | | | (21.4 | %) |
Income Taxes | | | 4,235 | | | | 3,811 | | | (11.1 | %) | | | 8,282 | | | | 10,077 | | | (17.8 | %) |
| | | | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 8,474 | | | $ | 9,526 | | | (11.0 | %) | | $ | 17,619 | | | $ | 22,881 | | | (23.0 | %) |
| | | | | | | | | | | | | | | | | | | | | | |
Preferred Stock Dividends | | | — | | | | — | | | 0.0 | % | | | (3,350 | ) | | | — | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | |
Earnings Available to Common Shareholders - Basic | | | 8,474 | | | | 9,526 | | | (11.0 | %) | | | 14,269 | | | | 22,881 | | | (37.6 | %) |
| | | | | | | | | | | | | | | | | | | | | | |
Earnings Allocated to Unvested Restricted Stock | | | (250 | ) | | | (272 | ) | | (8.3 | %) | | | (414 | ) | | | (661 | ) | | (37.4 | %) |
| | | | | | | | | | | | | | | | | | | | | | |
Earnings Available to Common Shareholders - Diluted | | | 8,224 | | | | 9,254 | | | (11.1 | %) | | | 13,855 | | | | 22,220 | | | (37.6 | %) |
| | | | | | | | | | | | | | | | | | | | | | |
Earnings Per Share, diluted | | $ | 0.52 | | | $ | 0.72 | | | (28.1 | %) | | $ | 0.88 | | | $ | 1.74 | | | (49.6 | %) |
| | | | | | | | | | | | | | | | | | | | | | |
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands except per share data)
| | | | | | | | | | | | | | | | | | | | |
| | | For The Quarter Ended | |
BALANCE SHEET (Average) | | June 30,
2009 | | | March 31,
2009 | | | December 31,
2008 | | | September 30,
2008 | | | June 30,
2008 | |
ASSETS | | | | | | | | | | | | | | | | | | | | |
Cash and Due From Banks | | $ | 78,939 | | | $ | 78,204 | | | $ | 77,896 | | | $ | 80,104 | | | $ | 84,252 | |
Interest-bearing Deposits in Banks | | | 61,115 | | | | 130,584 | | | | 106,618 | | | | 155,620 | | | | 147,111 | |
Investment Securities | | | 1,033,274 | | | | 995,766 | | | | 889,983 | | | | 918,932 | | | | 896,585 | |
Mortgage Loans Held for Sale | | | 89,298 | | | | 81,910 | | | | 44,841 | | | | 62,443 | | | | 73,610 | |
Loans, Net of Unearned Income | | | 3,788,273 | | | | 3,743,032 | | | | 3,662,020 | | | | 3,597,935 | | | | 3,487,918 | |
Allowance for Loan Losses | | | (42,970 | ) | | | (40,711 | ) | | | (39,640 | ) | | | (39,825 | ) | | | (39,531 | ) |
Other Assets | | | 585,016 | | | | 583,373 | | | | 583,147 | | | | 508,770 | | | | 569,602 | |
| | | | | | | | | | | | | | | | | | | | |
Total Assets | | $ | 5,592,945 | | | $ | 5,572,158 | | | $ | 5,324,865 | | | $ | 5,283,979 | | | $ | 5,219,547 | |
| | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing Deposits | | $ | 570,298 | | | $ | 554,269 | | | $ | 575,738 | | | $ | 535,210 | | | $ | 482,838 | |
Interest-bearing Deposits | | | 3,558,739 | | | | 3,461,866 | | | | 3,388,765 | | | | 3,446,247 | | | | 3,462,042 | |
| | | | | | | | | | | | | | | | | | | | |
Total Deposits | | | 4,129,037 | | | | 4,016,135 | | | | 3,964,503 | | | | 3,981,457 | | | | 3,944,880 | |
Short-term Borrowings | | | 22,489 | | | | 45,760 | | | | 32,367 | | | | 52,279 | | | | 15,160 | |
Securities Sold Under Agreements to Repurchase | | | 149,664 | | | | 141,186 | | | | 138,763 | | | | 125,287 | | | | 114,636 | |
Long-term Debt | | | 541,557 | | | | 552,838 | | | | 567,562 | | | | 568,624 | | | | 573,563 | |
Other Liabilities | | | 86,819 | | | | 72,430 | | | | 51,473 | | | | 41,832 | | | | 57,259 | |
| | | | | | | | | | | | | | | | | | | | |
Total Liabilities | | | 4,929,566 | | | | 4,828,349 | | | | 4,754,668 | | | | 4,769,479 | | | | 4,705,498 | |
Total Shareholders’ Equity | | | 663,379 | | | | 743,809 | | | | 570,197 | | | | 514,500 | | | | 514,049 | |
| | | | | | | | | | | | | | | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 5,592,945 | | | $ | 5,572,158 | | | $ | 5,324,865 | | | $ | 5,283,979 | | | $ | 5,219,547 | |
| | | | | | | | | | | | | | | | | | | | |
| | |
| | | 2009 | | | 2008 | |
INCOME STATEMENT | | Second
Quarter | | | First
Quarter | | | Fourth
Quarter | | | Third
Quarter | | | Second
Quarter | |
Interest Income | | $ | 60,974 | | | $ | 60,321 | | | $ | 65,074 | | | $ | 66,323 | | | $ | 65,120 | |
Interest Expense | | | 22,698 | | | | 24,034 | | | | 27,907 | | | | 31,145 | | | | 32,647 | |
| | | | | | | | | | | | | | | | | | | | |
Net Interest Income | | | 38,276 | | | | 36,287 | | | | 37,167 | | | | 35,178 | | | | 32,473 | |
Provision for Loan Losses | | | 7,783 | | | | 3,032 | | | | 6,206 | | | | 2,131 | | | | 1,537 | |
| | | | | | | | | | | | | | | | | | | | |
Net Interest Income After Provision for Loan Losses | | | 30,493 | | | | 33,255 | | | | 30,961 | | | | 33,047 | | | | 30,936 | |
Total Noninterest Income | | | 32,030 | | | | 23,730 | | | | 20,388 | | | | 22,575 | | | | 22,683 | |
Total Noninterest Expense | | | 49,814 | | | | 43,792 | | | | 40,552 | | | | 43,595 | | | | 40,282 | |
| | | | | | | | | | | | | | | | | | | | |
Income Before Income Taxes | | | 12,709 | | | | 13,193 | | | | 10,797 | | | | 12,027 | | | | 13,337 | |
Income Taxes | | | 4,235 | | | | 4,048 | | | | 2,521 | | | | 3,272 | | | | 3,811 | |
| | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 8,474 | | | $ | 9,145 | | | $ | 8,276 | | | $ | 8,755 | | | $ | 9,526 | |
| | | | | | | | | | | | | | | | | | | | |
Preferred Stock Dividends | | | — | | | | (3,350 | ) | | | (348 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Earnings Available to Common Shareholders - Basic | | $ | 8,474 | | | $ | 5,795 | | | $ | 7,928 | | | $ | 8,755 | | | $ | 9,526 | |
| | | | | | | | | | | | | | | | | | | | |
Earnings Allocated to Unvested Restricted Stock | | | (250 | ) | | | (169 | ) | | | (212 | ) | | | (246 | ) | | | (272 | ) |
| | | | | | | | | | | | | | | | | | | | |
Earnings Available to Common Shareholders - Diluted | | $ | 8,225 | | | $ | 5,626 | | | $ | 7,716 | | | $ | 8,509 | | | $ | 9,254 | |
| | | | | | | | | | | | | | | | | | | | |
Earnings Per Share, basic | | $ | 0.53 | | | $ | 0.36 | | | $ | 0.58 | | | $ | 0.68 | | | $ | 0.74 | |
| | | | | | | | | | | | | | | | | | | | |
Earnings Per Share, diluted | | $ | 0.52 | | | $ | 0.36 | | | $ | 0.57 | | | $ | 0.66 | | | $ | 0.72 | |
| | | | | | | | | | | | | | | | | | | | |
Book Value Per Share | | $ | 41.13 | | | $ | 40.98 | | | $ | 40.53 | | | $ | 39.96 | | | $ | 39.49 | |
| | | | | | | | | | | | | | | | | | | | |
Return on Average Assets | | | 0.61 | % | | | 0.67 | % | | | 0.62 | % | | | 0.66 | % | | | 0.73 | % |
Return on Average Common Equity | | | 5.11 | % | | | 3.59 | % | | | 5.80 | % | | | 6.77 | % | | | 7.45 | % |
Return on Average Tangible Common Equity | | | 8.75 | % | | | 6.35 | % | | | 11.74 | % | | | 14.31 | % | | | 15.70 | % |
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | |
| | | June 30, | | | March 31,
2009 | | | December 31,
2008 | |
LOANS RECEIVABLE | | 2009 | | | 2008 | | | % Change | | | |
Residential Mortgage Loans: | | | | | | | | | | | | | | | | | | | |
Residential 1-4 Family | | $ | 453,807 | | | $ | 500,329 | | | (9.3 | %) | | $ | 476,899 | | | $ | 498,740 | |
Construction/ Owner Occupied | | | 23,768 | | | | 57,998 | | | (59.0 | %) | | | 32,665 | | | | 36,693 | |
| | | | | | | | | | | | | | | | | | | |
Total Residential Mortgage Loans | | | 477,575 | | | | 558,327 | | | (14.5 | %) | | | 509,564 | | | | 535,433 | |
Commercial Loans: | | | | | | | | | | | | | | | | | | | |
Real Estate | | | 1,584,791 | | | | 1,449,844 | | | 9.3 | % | | | 1,551,790 | | | | 1,522,965 | |
Business | | | 847,017 | | | | 659,854 | | | 28.4 | % | | | 790,027 | | | | 775,625 | |
| | | | | | | | | | | | | | | | | | | |
Total Commercial Loans | | | 2,431,808 | | | | 2,109,698 | | | 15.3 | % | | | 2,341,817 | | | | 2,298,590 | |
Consumer Loans: | | | | | | | | | | | | | | | | | | | |
Indirect Automobile | | | 270,188 | | | | 248,172 | | | 8.9 | % | | | 264,019 | | | | 265,722 | |
Home Equity | | | 507,619 | | | | 473,876 | | | 7.1 | % | | | 503,979 | | | | 501,036 | |
Automobile | | | 29,685 | | | | 30,146 | | | (1.5 | %) | | | 28,141 | | | | 28,464 | |
Credit Card Loans | | | 40,403 | | | | 32,578 | | | 24.0 | % | | | 38,259 | | | | 38,014 | |
Other | | | 72,048 | | | | 87,749 | | | (17.9 | %) | | | 72,180 | | | | 77,143 | |
| | | | | | | | | | | | | | | | | | | |
Total Consumer Loans | | | 919,943 | | | | 872,521 | | | 5.4 | % | | | 906,578 | | | | 910,379 | |
| | | | | | | | | | | | | | | | | | | |
Total Loans Receivable | | | 3,829,326 | | | | 3,540,546 | | | 8.2 | % | | | 3,757,959 | | | | 3,744,402 | |
| | | | | | | | | | | | | | | | | | | |
Allowance for Loan Losses | | | (46,329 | ) | | | (39,753 | ) | | | | | | (41,662 | ) | | | (40,872 | ) |
| | | | | | | | | | | | | | | | | | | |
Loans Receivable, Net | | $ | 3,782,997 | | | $ | 3,500,793 | | | | | | $ | 3,716,297 | | | $ | 3,703,530 | |
| | | | | | | | | | | | | | | | | | | |
| | | |
| | | June 30, | | | March 31,
2009 | | | December 31,
2008 | |
ASSET QUALITY DATA | | 2009 | | | 2008 | | | % Change | | | |
Nonaccrual Loans | | $ | 28,519 | | | $ | 30,829 | | | (7.5 | %) | | $ | 33,750 | | | $ | 27,825 | |
Foreclosed Assets | | | 19 | | | | 52 | | | (64.0 | %) | | | 9 | | | | 38 | |
Other Real Estate Owned | | | 17,333 | | | | 9,660 | | | 79.4 | % | | | 16,019 | | | | 16,274 | |
Accruing Loans More Than 90 Days Past Due | | | 13,259 | | | | 1,367 | | | 869.8 | % | | | 2,952 | | | | 2,481 | |
| | | | | | | | | | | | | | | | | | | |
Total Nonperforming Assets | | $ | 59,130 | | | $ | 41,908 | | | 41.1 | % | | $ | 52,730 | | | $ | 46,618 | |
| | | | | | | | | | | | | | | | | | | |
Nonperforming Assets to Total Assets | | | 1.04 | % | | | 0.79 | % | | 31.6 | % | | | 0.95 | % | | | 0.83 | % |
Nonperforming Assets to Total Loans and OREO | | | 1.54 | % | | | 1.18 | % | | 30.2 | % | | | 1.40 | % | | | 1.24 | % |
Allowance for Loan Losses to Nonperforming Loans(1) | | | 110.9 | % | | | 123.5 | % | | (10.2 | %) | | | 113.5 | % | | | 134.9 | % |
Allowance for Loan Losses to Nonperforming Assets | | | 78.4 | % | | | 94.9 | % | | (17.4 | %) | | | 79.0 | % | | | 87.7 | % |
Allowance for Loan Losses to Total Loans | | | 1.21 | % | | | 1.12 | % | | 7.8 | % | | | 1.11 | % | | | 1.09 | % |
Year to Date Charge-offs | | $ | 6,426 | | | $ | 4,158 | | | 54.6 | % | | $ | 2,765 | | | $ | 12,882 | |
Year to Date Recoveries | | | (1,068 | ) | | | (1,395 | ) | | (23.4 | %) | | | (523 | ) | | $ | (2,900 | ) |
| | | | | | | | | | | | | | | | | | | |
Year to Date Net Charge-offs | | $ | 5,358 | | | $ | 2,763 | | | 93.9 | % | | $ | 2,242 | | | $ | 9,982 | |
| | | | | | | | | | | | | | | | | | | |
Quarter to Date Net Charge-offs | | $ | 3,116 | | | $ | 985 | | | 216.3 | % | | $ | 2,242 | | | $ | 4,885 | |
| | | | | | | | | | | | | | | | | | | |
| |
(1) Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due. | | | | | |
| | | |
| | | June 30, | | | March 31,
2009 | | | December 31,
2008 | |
DEPOSITS | | 2009 | | | 2008 | | | % Change | | | |
Noninterest-bearing Demand Accounts | | $ | 576,042 | | | $ | 519,516 | | | 10.9 | % | | $ | 580,607 | | | $ | 620,637 | |
NOW Accounts | | | 947,963 | | | | 817,474 | | | 16.0 | % | | | 952,298 | | | | 821,649 | |
Savings and Money Market Accounts | | | 1,127,996 | | | | 1,038,965 | | | 8.6 | % | | | 1,070,520 | | | | 954,408 | |
Certificates of Deposit | | | 1,520,894 | | | | 1,660,666 | | | (8.4 | %) | | | 1,530,055 | | | | 1,599,122 | |
| | | | | | | | | | | | | | | | | | | |
Total Deposits | | $ | 4,172,895 | | | $ | 4,036,621 | | | 3.4 | % | | $ | 4,133,480 | | | $ | 3,995,816 | |
| | | | | | | | | | | | | | | | | | | |
IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Taxable Equivalent Basis
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | For The Quarter Ended | |
| | | June 30, 2009 | | | March 31, 2009 | | | June 30, 2008 | |
| | | Average
Balance | | | Average
Yield/Rate (%) | | | Average
Balance | | | Average
Yield/Rate (%) | | | Average
Balance | | | Average
Yield/Rate (%) | |
ASSETS | | | | | | | | | | | | | | | | | | | | | |
Earning Assets: | | | | | | | | | | | | | | | | | | | | | |
Loans Receivable: | | | | | | | | | | | | | | | | | | | | | |
Mortgage Loans | | $ | 492,293 | | | 5.65 | % | | $ | 521,180 | | | 5.64 | % | | $ | 563,072 | | | 5.87 | % |
Commercial Loans (TE)(1) | | | 2,383,784 | | | 4.68 | % | | | 2,315,732 | | | 4.68 | % | | | 2,075,062 | | | 5.64 | % |
Consumer and Other Loans | | | 912,196 | | | 6.49 | % | | | 906,120 | | | 6.64 | % | | | 849,784 | | | 7.07 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Loans | | | 3,788,273 | | | 5.24 | % | | | 3,743,032 | | | 5.29 | % | | | 3,487,918 | | | 6.03 | % |
Mortgage Loans Held for Sale | | | 89,298 | | | 4.74 | % | | | 81,910 | | | 4.80 | % | | | 73,610 | | | 5.80 | % |
Investment Securities (TE)(1)(2) | | | 1,006,051 | | | 4.47 | % | | | 968,163 | | | 4.61 | % | | | 879,303 | | | 5.07 | % |
Other Earning Assets | | | 95,880 | | | 0.82 | % | | | 179,580 | | | 0.51 | % | | | 212,866 | | | 2.51 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Earning Assets | | | 4,979,502 | | | 4.99 | % | | | 4,972,685 | | | 4.98 | % | | | 4,653,697 | | | 5.68 | % |
Allowance for Loan Losses | | | (42,970 | ) | | | | | | (40,711 | ) | | | | | | (39,531 | ) | | | |
Nonearning Assets | | | 656,413 | | | | | | | 640,184 | | | | | | | 605,381 | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Total Assets | | $ | 5,592,945 | | | | | | $ | 5,572,158 | | | | | | $ | 5,219,547 | | | | |
| | | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing Liabilities: | | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | | | | | | |
NOW Accounts | | $ | 947,363 | | | 0.86 | % | | $ | 910,272 | | | 0.90 | % | | $ | 825,951 | | | 1.47 | % |
Savings and Money Market Accounts | | | 1,101,165 | | | 1.43 | % | | | 1,006,998 | | | 1.55 | % | | | 969,223 | | | 2.32 | % |
Certificates of Deposit | | | 1,510,211 | | | 2.88 | % | | | 1,544,596 | | | 3.15 | % | | | 1,666,868 | | | 4.16 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Interest-bearing Deposits | | | 3,558,739 | | | 1.90 | % | | | 3,461,866 | | | 2.09 | % | | | 3,462,042 | | | 3.00 | % |
Short-term Borrowings | | | 172,153 | | | 0.71 | % | | | 186,946 | | | 0.83 | % | | | 129,796 | | | 1.53 | % |
Long-term Debt | | | 541,557 | | | 4.07 | % | | | 552,838 | | | 4.20 | % | | | 573,563 | | | 4.33 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Interest-bearing Liabilities | | | 4,272,449 | | | 2.12 | % | | | 4,201,650 | | | 2.31 | % | | | 4,165,401 | | | 3.14 | % |
Noninterest-bearing Demand Deposits | | | 570,298 | | | | | | | 554,269 | | | | | | | 482,838 | | | | |
Noninterest-bearing Liabilities | | | 86,819 | | | | | | | 72,430 | | | | | | | 57,259 | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Total Liabilities | | | 4,929,566 | | | | | | | 4,828,349 | | | | | | | 4,705,498 | | | | |
Shareholders’ Equity | | | 663,379 | | | | | | | 743,809 | | | | | | | 514,049 | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 5,592,945 | | | | | | $ | 5,572,158 | | | | | | $ | 5,219,547 | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Net Interest Spread | | $ | 38,276 | | | 2.87 | % | | $ | 36,287 | | | 2.66 | % | | $ | 32,473 | | | 2.54 | % |
Tax-equivalent Benefit | | | 1,418 | | | 0.11 | % | | | 1,336 | | | 0.11 | % | | | 1,219 | | | 0.10 | % |
Net Interest Income (TE) / Net Interest Margin (TE)(1) | | $ | 39,694 | | | 3.17 | % | | $ | 37,623 | | | 3.02 | % | | $ | 33,692 | | | 2.87 | % |
| (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 Year Ended | |
| | | June 30, 2009 | | | June 30, 2008 | |
| | | Average
Balance | | | Average
Yield/Rate (%) | | | Average
Balance | | | Average
Yield/Rate (%) | |
ASSETS | | | | | | | | | | | | | | |
Earning Assets: | | | | | | | | | | | | | | |
Loans Receivable: | | | | | | | | | | | | | | |
Mortgage Loans | | $ | 506,657 | | | 5.65 | % | | $ | 569,084 | | | 5.91 | % |
Commercial Loans (TE)(1) | | | 2,349,945 | | | 4.68 | % | | | 2,037,489 | | | 5.93 | % |
Consumer and Other Loans | | | 909,175 | | | 6.56 | % | | | 834,017 | | | 7.36 | % |
| | | | | | | | | | | | | | |
Total Loans | | | 3,765,777 | | | 5.26 | % | | | 3,440,590 | | | 6.27 | % |
Mortgage Loans Held for Sale | | | 85,624 | | | 4.76 | % | | | 65,525 | | | 5.69 | % |
Investment Securities (TE)(1)(2) | | | 987,211 | | | 4.54 | % | | | 850,167 | | | 5.12 | % |
Other Earning Assets | | | 137,500 | | | 0.62 | % | | | 186,409 | | | 3.02 | % |
| | | | | | | | | | | | | | |
Total Earning Assets | | | 4,976,112 | | | 4.98 | % | | | 4,542,691 | | | 5.92 | % |
Allowance for Loan Losses | | | (41,847 | ) | | | | | | (38,537 | ) | | | |
Nonearning Assets | | | 648,344 | | | | | | | 602,375 | | | | |
| | | | | | | | | | | | | | |
Total Assets | | $ | 5,582,609 | | | | | | $ | 5,106,529 | | | | |
| | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | |
Interest-bearing Liabilities: | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | |
NOW Accounts | | $ | 928,920 | | | 0.88 | % | | $ | 837,615 | | | 1.68 | % |
Savings and Money Market Accounts | | | 1,054,342 | | | 1.48 | % | | | 875,557 | | | 2.34 | % |
Certificates of Deposit | | | 1,527,308 | | | 3.02 | % | | | 1,588,101 | | | 4.34 | % |
| | | | | | | | | | | | | | |
Total Interest-bearing Deposits | | | 3,510,570 | | | 1.99 | % | | | 3,301,273 | | | 3.13 | % |
Short-term Borrowings | | | 179,508 | | | 0.77 | % | | | 236,229 | | | 2.68 | % |
Long-term Debt | | | 547,167 | | | 4.13 | % | | | 540,331 | | | 4.57 | % |
| | | | | | | | | | | | | | |
Total Interest-bearing Liabilities | | | 4,237,245 | | | 2.22 | % | | | 4,077,833 | | | 3.30 | % |
Noninterest-bearing Demand Deposits | | | 562,328 | | | | | | | 463,562 | | | | |
Noninterest-bearing Liabilities | | | 79,664 | | | | | | | 51,306 | | | | |
| | | | | | | | | | | | | | |
Total Liabilities | | | 4,879,237 | | | | | | | 4,592,701 | | | | |
Shareholders’ Equity | | | 703,372 | | | | | | | 513,828 | | | | |
| | | | | | | | | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 5,582,609 | | | | | | $ | 5,106,529 | | | | |
| | | | | | | | | | | | | | |
Net Interest Spread | | $ | 74,563 | | | 2.77 | % | | $ | 65,299 | | | 2.62 | % |
Tax-equivalent Benefit | | | 2,755 | | | 0.11 | % | | | 2,418 | | | 0.11 | % |
Net Interest Income (TE) / Net Interest Margin (TE)(1) | | $ | 77,318 | | | 3.10 | % | | $ | 67,717 | | | 2.95 | % |
| (1) | Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%. |
| (2) | Balances exclude unrealized gain or loss on securities available for sale and impact of trade date accounting. |
IBERIABANK CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(dollars in thousands)
| | | | | | | | | | | | |
| | | For The Three Months Ended | |
| | | 6/30/2009 | | | 3/31/2009 | | | 6/30/2008 | |
Net Interest Income | | $ | 38,276 | | | $ | 36,287 | | | $ | 32,473 | |
Effect of Tax Benefit on Interest Income | | | 1,418 | | | | 1,336 | | | | 1,219 | |
| | | | | | | | | | | | |
Net Interest Income (TE)(1) | | | 39,694 | | | | 37,623 | | | | 33,692 | |
| | | | | | | | | | | | |
Noninterest Income | | | 32,030 | | | | 23,730 | | | | 22,683 | |
Effect of Tax Benefit on Noninterest Income | | | 388 | | | | 384 | | | | 413 | |
| | | | | | | | | | | | |
Noninterest Income (TE)(1) | | | 32,418 | | | | 24,114 | | | | 23,096 | |
| | | | | | | | | | | | |
Total Revenues (TE)(1) | | $ | 72,112 | | | $ | 61,737 | | | $ | 56,788 | |
| | | | | | | | | | | | |
Total Noninterest Expense | | $ | 49,814 | | | $ | 43,792 | | | $ | 40,282 | |
Less Intangible Amortization Expense | | | (622 | ) | | | (622 | ) | | | (575 | ) |
| | | | | | | | | | | | |
Tangible Operating Expense(2) | | $ | 49,192 | | | $ | 43,170 | | | $ | 39,707 | |
| | | | | | | | | | | | |
Return on Average Common Equity | | | 5.11 | % | | | 3.59 | % | | | 7.45 | % |
Effect of Intangibles(2) | | | 3.64 | % | | | 2.76 | % | | | 8.25 | % |
| | | | | | | | | | | | |
Return on Average Tangible Common Equity(2) | | | 8.75 | % | | | 6.35 | % | | | 15.70 | % |
| | | | | | | | | | | | |
Efficiency Ratio | | | 70.9 | % | | | 73.0 | % | | | 73.0 | % |
Effect of Tax Benefit Related to Tax Exempt Income | | | (1.8 | %) | | | (2.1 | %) | | | (2.1 | %) |
| | | | | | | | | | | | |
Efficiency Ratio (TE)(1) | | | 69.1 | % | | | 70.9 | % | | | 70.9 | % |
Effect of Amortization of Intangibles | | | (0.9 | %) | | | (1.0 | %) | | | (1.0 | %) |
| | | | | | | | | | | | |
Tangible Efficiency Ratio (TE)(1) (2) | | | 68.2 | % | | | 69.9 | % | | | 69.9 | % |
| | | | | | | | | | | | |
| (1) | Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a marginal tax rate of 35%. |
| (2) | Tangible calculations eliminate the effect of goodwill and acquisition related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable. |
Reconciliation of GAAP Net Income to Non-GAAP Net Income
(In Thousands, Except Share and Per Share Data)
Non-GAAP net income, non-GAAP earnings per share and non-GAAP returns, representing net income and earnings per share determined in accordance with GAAP including the effects of the after-tax charges noted below, provide a meaningful comparison for effectively evaluating the Companies’ operating results.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the 1Q09 Ended | | | For the 2Q09 Ended | |
| | | GAAP | | | Adjustments | | | Non-GAAP | | | GAAP | | | Adjustments | | | Non-GAAP | |
Average Diluted Shares Outstanding | | | 15,728,518 | | | | | | | | | | | | 15,793,002 | | | | | | | | | |
Net Interest Income | | $ | 36,287 | | | | — | | | $ | 36,287 | | | $ | 38,276 | | | | — | | | $ | 38,276 | |
Provision for loan losses | | | 3,032 | | | | — | | | | 3,032 | | | | 7,783 | | | | — | | | | 7,783 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 33,255 | | | | | | | | 33,255 | | | | 30,493 | | | | | | | | 30,493 | |
Total Non-interest income | | | 23,730 | | | | 1 | 1 | | | 23,731 | | | | 32,030 | | | | (5,311 | )4 | | | 26,719 | |
Total Non-interest expense | | | 43,792 | | | | | | | | 43,792 | | | | 49,814 | | | | (2,918 | )5 | | | 46,896 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income Before Income Taxes | | | 13,193 | | | | 1 | | | | 13,194 | | | | 12,709 | | | | (2,393 | ) | | | 10,316 | |
Income Taxes | | | 4,048 | | | | (0 | )2 | | | 4,048 | | | | 4,235 | | | | (838 | )6 | | | 3,397 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 9,145 | | | $ | 1 | | | $ | 9,146 | | | $ | 8,474 | | | $ | (1,555 | ) | | $ | 6,919 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Preferred Stock Dividends Declared | | | (3,350 | ) | | | — | | | | (3,350 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income Available to Common Stockholders | | $ | 5,795 | | | $ | 1 | | | $ | 5,796 | | | $ | 8,474 | | | $ | (1,555 | ) | | $ | 6,919 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Undistributed and Distributed Earnings to Unvested restricted stock | | | (170 | ) | | | — | | | | (170 | ) | | | (254 | ) | | | 3 | | | | (251 | ) |
Undistributed Earnings reallocated to Unvested restricted stock | | | 1 | | | | — | | | | 1 | | | | 4 | | | | (1 | ) | | | 3 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Undistributed and Distributed Earnings to Common Shareholders | | $ | 5,626 | | | $ | 1 | | | $ | 5,627 | | | $ | 8,224 | | | $ | (1,553 | ) | | $ | 6,671 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Distributed and Undistributed Earnings Per Share, Diluted- two class method | | $ | 0.36 | | | $ | 0.00 | | | $ | 0.36 | | | $ | 0.52 | | | $ | (0.10 | ) | | $ | 0.42 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Impact of 12/16/2008 common stock issuance - 2,875,000 shares | | | | | | | | | | | 0.08 | 7 | | | | | | | | | | | 0.11 | |
Per share impact - TARP Deemed Dividend (Preferred Stock Dividends Declared) | | | | | | | | | | $ | 0.21 | 3 | | | | | | | | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-GAAP Adjusted EPS | | | | | | | | | | $ | 0.65 | | | | | | | | | | | $ | 0.53 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| 1 | Represents $3 loss on Sale of Investments and $2 Gain on sale of Fixed Assets |
| 2 | Represents 35% Marginal Tax Impact to Adjustments |
| 3 | Represents the TARP Deemed Dividend (Preferred Stock Dividends Declared) divided by diluted shares |
| 4 | Represents $5,879 Gain on Sale of Investments and $568 Loss on disposal of Fixed Assets |
| 5 | Represents $2,659 of FDIC Assessment and $260 of Name change expenses |
| 6 | Represents 35% Marginal Tax Impact to Adjustments plus the effect of Arkansas state tax to provision for loan losses |
| 7 | Undistributed and Distributed Earnings to Common Shareholders divided by 12,853,518 shares (15,728,518 - 2,875,000) = $0.44 EPS - $0.36 EPS = $.08 EPS |
| 8 | Undistributed and Distributed Earnings to Common Shareholders divided by 12,918,002 shares (15,793,002 - 2,875,000)= $0.63 EPS - $0.52 EPS = $.11 EPS |
