Iberiabank (IBKC) 10-K 2014 FY Annual report

EXHIBIT 12

STATEMENTS: COMPUTATION OF RATIOS

The following is a computation of Non-GAAP financial ratios:

	Years Ended December 31,
(dollars in thousands)	2014			2013			2012			2011			2010
Net Interest Income	$	460,111		$	390,244		$	381,750		$	338,258		$	281,627
Effect of Tax Benefit on Interest Income		8,609			9,452			9,659			8,178			7,778
Net Interest Income (TE) (1)		468,720			399,696			391,409			346,436			289,405
Non-interest Income		173,628			168,958			175,997			131,859			133,890
Effect of Tax Benefit on Noninterest Income		2,947			1,964			1,981			1,775			1,669
Non-interest Income (TE)(1)		176,575			170,922			177,978			133,634			135,559
Total Revenues (TE)(1)	$	645,295		$	570,618		$	569,387		$	480,070		$	424,964
Total Non-interest Expense	$	474,479		$	473,085		$	432,185		$	373,731		$	304,249
Less Intangible Amortization Expense		(5,807	)		(4,720	)		(5,150	)		(5,121	)		(4,935	)
Tangible Operating Expense(2)	$	468,672		$	468,365		$	427,035		$	368,610		$	299,314
Net income	$	105,450		$	65,103		$	76,395		$	53,538		$	48,826
Effect of Intangible Amortization, net of tax		3,775			3,068			3,348			3,328			3,208
Cash earnings	$	109,225		$	68,171		$	79,743		$	56,866		$	52,034
Net Income per Common Share- Diluted	$	3.30		$	2.20		$	2.59		$	1.87		$	1.88
Effect of Intangible Amortizaton per diluted share, net of tax		0.12			0.10			0.11			0.11			0.13
Cash Earnings per Share- Diluted	$	3.42		$	2.30		$	2.70		$	1.98		$	2.01
Return on Average Common Equity		6.17	%		4.26	%		5.05	%		3.77	%		3.91	%
Effect of Intangibles (2)		2.88			1.94			2.16			1.53			1.36
Return on Average Tangible Common Equity(2)		9.05	%		6.20	%		7.21	%		5.30	%		5.27	%
Efficiency Ratio		74.9	%		84.6	%		77.5	%		79.5	%		73.2	%
Effect of Tax Benefit Related to Tax Exempt Income		(1.4	)		(1.7	)		(1.6	)		(1.7	)		(1.6	)
Efficiency Ratio (TE)(1)		73.5	%		82.9	%		75.9			77.8	%		71.6	%
Effect of Amortization of Intangibles		(0.9	)		(0.8	)		(1.0	)		(1.1	)		(1.2	)
Tangible Efficiency Ratio (TE)(1) (2)		72.6	%		82.1	%		74.9	%		76.7	%		70.4	%

⁽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.

STATEMENTS: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	Years Ended December 31,
(dollars in thousands)	2014		2013		2012		2011		2010
Net income	$	105,450	$	65,103	$	76,395	$	53,538	$	48,826
Income tax expense		34,750		15,869		28,496		16,981		19,991
Income before income tax expense	$	140,200	$	80,972	$	104,891	$	70,519	$	68,817
Fixed charges
Interest on short-term and other borrowings	$	11,614	$	11,107	$	14,086	$	11,515	$	18,987
Fixed charges excluding interest on deposits		11,614		11,107		14,086		11,515		18,987
Interest on deposits		33,090		35,846		49,364		70,554		95,757
Fixed charges including interest on deposits	$	44,704	$	46,953	$	63,450	$	82,069	$	114,744
Preferred stock dividends		—		—		—		—		—
Fixed charges including preferred stock dividends	$	44,704	$	46,953	$	63,450	$	82,069	$	114,744
Earnings for ratio computations(1)
Excluding interest on deposits	$	151,814	$	92,079	$	118,977	$	82,034	$	87,804
Including interest on deposits	$	184,904	$	127,925	$	168,341	$	152,588	$	183,561
Ratio of earnings to fixed charges(2)
Excluding interest on deposits		13.07		8.29		8.45		7.12		4.62
Including interest on deposits		4.14		2.72		2.65		1.86		1.60
Ratio of earnings to fixed charges and preferred dividends(2)
Excluding interest on deposits		13.07		8.29		8.45		7.12		4.62
Including interest on deposits		4.14		2.72		2.65		1.86		1.60

⁽¹⁾ Earnings are the sum of income before income tax expense and fixed charges.

⁽²⁾  For the purposes of calculating the ratio of earning to fixed charges, fixed charges are the sum of interest and debt expenses, excluding interest on deposits, and, in the second alternative, fixed charges are the sum of interest and debt expenses including interest on deposits.