Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - IBERIABANK CORP | d572947d8k.htm |
| EX-99.1 - EX-99.1 - IBERIABANK CORP | d572947dex991.htm |
 2Q13 Earnings Conference Call
Supplemental Presentation
2Q13 Earnings Conference Call
Supplemental Presentation
July 23, 2013
July 23, 2013
Exhibit 99.2 |
 Safe Harbor Language
To
the
extent
that
statements
in
this
presentation
and
the
accompanying
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
level
of
market
volatility,
our
ability
to
execute
our
growth
strategy,
including
the
availability
of
future
FDIC-assisted
failed
bank
opportunities,
unanticipated
losses
related
to
the
integration
of,
and
refinements
to
purchase
accounting
adjustments
for,
acquired
businesses
and
assets
and
assumed
liabilities
in
these
transactions,
adjustments
of
fair
values
of
acquired
assets
and
assumed
liabilities
and
of
deferred
taxes
in
acquisitions,
actual
results
deviating
from
the
Company’s
current
estimates
and
assumptions
of
timing
and
amounts
of
cash
flows,
credit
risk
of
our
customers,
effects
of
the
on-going
correction
in
residential
real
estate
prices
and
reduced
levels
of
home
sales,
sufficiency
of
our
allowance
for
loan
losses,
changes
in
interest
rates,
access
to
funding
sources,
reliance
on
the
services
of
executive
management,
competition
for
loans,
deposits
and
investment
dollars,
reputational
risk
and
social
factors,
changes
in
government
regulations
and
legislation,
increases
in
FDIC
insurance
assessments,
geographic
concentration
of
our
markets
and
economic
conditions
in
these
markets,
rapid
changes
in
the
financial
services
industry,
dependence
on
our
operational,
technological,
and
organizational
systems
or
infrastructure
and
those
of
third-party
providers
of
those
services,
hurricanes
and
other
adverse
weather
events,
the
modest
trading
volume
of
our
common
sock,
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,
subsequent
Quarterly
Reports
on
Form
10-Q,
and
other
filings
with
the
Securities
and
Exchange
Commission
(the
“SEC”),
available
at
the
SEC’s
website,
http://www.sec.gov,
and
the
Company’s
website,
http://www.iberiabank.com,
under
the
heading
“Investor
Information.”
All
information
in
this
presentation
and
the
accompanying
press
release
is
as
of
the
date
of
this
release.
The
Company
undertakes
no
duty
to
update
any
forward-looking
statement
to
conform
to
the
statement
to
actual
results
or
changes
in
the
Company’s
expectations.
Certain
tabular
presentations
may
not
reconcile
because
of
rounding.
2
2 |
 3
•
Operating EPS of $0.80 driven by higher net interest margin, relatively flat
operating expenses and balanced organic loan and core deposit growth
•
Organic loan growth:
•
Core deposit growth:
•
Deployed
$335
million
in
excess
liquidity
through
increased
loan
originations
•
16 basis point net interest margin increase
•
Tax equivalent net interest income increased $4 million or 4% offsetting a $241
million or 2% decline in average earning assets
•
$2 million loan loss provision -
$3 million provision on legacy portfolio offset by $1
million recovery on the non covered acquired portfolio
Introductory Comments
Second Quarter 2013 –
Summary Comments
$394 million since March 31, 2013 (+21% annualized)
$1.7 billion since year-end 2011 (+18% annualized)
$66 million since March 31, 2012 (+3% annualized)
$1.7 billion since year-end 2011 (+16% annualized)
12 bps due to deployment of excess liquidity into loans
5 bps due to decline in deposit costs |
 4
Financial Overview
Financial Overview
Performance Metrics –
Yields and Costs
•
Investment yield unchanged
at 1.92%
•
Net covered loan yield
declined 24 bps due to
lower income and higher
covered loan balances;
decline in non-covered loan
yield of 4 bps
•
Average noninterest bearing
deposits up $72 million
(15% annualized)
•
Margin improved 16 bps to
3.39%;
•
12 bps due to deployment of
low yielding excess liquidity
into higher yielding loans
•
Interest bearing deposit costs
declined 5 bps
3/31/2013
6/30/2013
Investment Securities
1.92%
1.92%
(0)
bps
Covered Loans & Loss Share Receivable
5.35%
5.11%
(24)
bps
Noncovered Loans
4.44%
4.40%
(4)
bps
Loans & Loss Share Receivable
4.36%
4.35%
(1)
bps
Mortgage Loans Held For Sale
2.97%
3.17%
20
bps
Other Earning Assets
0.52%
0.87%
35
bps
Total Earning Assets
3.70%
3.80%
10
bps
Interest Bearing Deposits
0.47%
0.42%
(5)
bps
Short-Term Borrowings
0.19%
0.16%
(3)
bps
Long-Term Borrowings
3.16%
3.39%
23
bps
Total Interest Bearing Liabilities
0.58%
0.51%
(7)
bps
Net Interest Spread
3.12%
3.29%
17
bps
Net Interest Margin
3.23%
3.39%
16
bps
(1)
Earning asset yields are shown on a fully taxable equivalent basis.
Basis Point
Change
For Quarter Ended: |
 5
Financial Overview
Non-Interest Income Trends
•
Gains on sale of investments decreased $2.4 million or 102%
•
Mortgage loan income declined $1.2 million or 6%
•
Title insurance income increased $0.7 million, or 13%
•
Increased brokerage commissions of $0.3 million or 9%
•
Deposit service charge income increased $0.3 million, or 5%,
from 1Q13
2Q13 originations up 23% from 1Q13
Refinancings were 31% of production,
down from 40% in 1Q13
Sales up 11% in 2Q13 and up 27% over
2Q13
$18 million in 2Q13 revenues (down 6%)
due to pipeline valuations
Margins declined slightly; Small buyback
costs
Pipeline of $265 million at quarter-end
and $270 million on July 12 (+6%)
Noninterest Income ($000s)
2Q12
3Q12
4Q12
1Q13
2Q13
$ Change
% Change
Service Charges on Deposit Accounts
6,625
$
6,952
$
7,295
$
6,797
$
7,106
$
309
$
5%
ATM / Debit Card Fee Income
2,166
2,377
2,412
2,183
2,357
174
8%
BOLI Proceeds and CSV Income
905
916
909
939
901
(38)
-4%
Mortgage Income
18,185
23,215
22,935
18,931
17,708
(1,223)
-6%
Gain (Loss) on Sale of Investments, Net
901
41
(4)
2,359
(57)
(2,416)
-102%
Title Revenue
5,339
5,623
5,492
5,021
5,696
675
13%
Broker Commissions
3,102
3,092
4,192
3,534
3,863
329
9%
Other Noninterest Income
4,471
4,337
4,928
4,727
4,915
188
4%
Noninterest income excluding non-operating income
41,694
46,553
48,158
44,491
42,489
(2,002)
-5%
Non-operating income
-
-
2,196
-
-
-
-
Total Noninterest Income
41,694
$
46,553
$
50,354
$
44,491
$
42,489
$
(2,002)
$
-5%
2Q13 vs. 1Q13
th |
 6
Financial Overview
Non-Interest Expense
•
Noninterest expenses excluding non-operating items
flat as compared to 1Q13
•
Total expenses down $28 million, or 19%, in 2Q13
•
Occupancy and branch closure costs up $5 million
•
No merger-related costs incurred, down $0.2 million
from 1Q13
Linked quarter increases/(decreases) of:
Mortgage commissions
1.8
$
mil.
Severance expense
1.6
Litigation
0.2
FHLB debt extinguishment
(2.3)
OREO expense
(0.6)
Occupancy expense
(0.5)
0.2
$
Noninterest Expense ($000s)
2Q12
3Q12
4Q12
1Q13
2Q13
$ Change
% Change
Mortgage Commissions
5,612
$
6,006
$
5,747
$
4,327
$
6,127
$
1,800
$
42%
Hospitalization Expense
3,404
3,773
4,005
4,407
3,994
(413)
-9%
Other Salaries and Benefits
48,011
49,270
50,675
53,668
53,694
26
0%
Salaries and Employee Benefits
57,028
$
59,049
$
60,426
$
62,402
$
63,815
$
1,413
$
2%
Credit/Loan Related
4,835
4,846
4,386
3,739
4,168
429
11%
Occupancy and Equipment
12,852
13,500
14,413
14,774
14,321
(453)
-3%
Amortization of Acquisition Intangibles
1,289
1,287
1,285
1,183
1,181
(2)
0%
All Other Noninterest Expense
27,105
26,611
30,328
28,050
26,681
(1,369)
-5%
Nonint. Exp. (Ex-Non-Operating Exp.)
103,109
$
105,293
$
110,838
$
110,148
$
110,166
$
18
$
0%
Severance
1,053
712
370
97
1,670
1,573
1616%
Occupancy and Branch Closure Costs
2,743
284
711
375
4,925
4,550
1214%
Impairment of Indemnification Asset
-
-
-
31,813
-
(31,813)
-100%
Debt Prepayment
-
-
-
2,307
-
(2,307)
-100%
Termination of Debit Card Rewards Program
-
-
-
-
450
450
100%
Consulting and Professional
1,661
574
339
-
150
150
100%
Merger-Related Expenses
456
2,985
1,183
157
-
(157)
-100%
Total Noninterest Expense
109,022
$
109,848
$
113,441
$
144,898
$
117,361
$
(27,536)
$
-19%
Tangible Efficiency Ratio - excl Nonop Exp
74.4%
71.2%
72.5%
76.0%
74.2%
2Q13 vs. 1Q13 |
 7
Financial Overview
Non-Operating Items
•
Amortization of indemnification asset of $5.0 million in 2Q13 ($0.11 EPS)
•
Branch closure expense of $4.9 million in 2Q13 ($0.11 EPS)
•
2Q13 Severance expense of $1.7 million ($0.04 EPS)
(1)
Per share amounts may not appear to foot due to rounding
(2)
After-tax amounts estimated based on a 35% marginal tax rate
(3)
Includes the impact of the adoption of ASU 2012-06 in the three-month periods ending June 30,
2013 and March 31, 2013 (4)
Adjustments represent additonal amortization on the Company's loss share receivable due to the
adoption of ASU 2012-06 for the three month-periods ending June 30, 2013 and March 31,
2013. The amounts included above represents the incremental amortization as calculated using the yield on the covered portfolio for the three month period ending
December 31, 2012. The Company expects the additional amortization (calculated on the same basis
as the amount above) over the next four quarters to be as follows: RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES (1)
(dollars in thousands) |
 8
Financial Overview
Performance Metrics –
Quarterly Trends
•
Average earning
assets down $241
million (-2%)
•
T/E net interest
income up $4
million (+4%)
•
Provision of $2
million:
•
Net charge-offs:
$1.1 million (0.05%
annualized rate)
•
Non covered
acquired loan loss
provision reversal:
$1.5 million
•
All other
provision: $3.3
million
6/30/2012
9/30/2012
12/31/2012
3/31/2013
6/30/2013
Net Income ($ in thousands)
12,560
$
21,234
$
23,208
$
717
$
15,590
$
2074%
Per Share Data:
Fully Diluted Earnings
0.43
$
0.73
$
0.79
$
0.02
$
0.53
$
2011%
Operating Earnings (Non-GAAP)
(1)
0.54
0.83
0.80
0.86
0.80
-7%
Pre-provision Operating Earnings (Non-GAAP)
0.73
0.92
0.91
0.66
0.73
10%
Tangible Book Value
37.28
37.07
37.34
36.93
36.30
-2%
Key Ratios:
Return on Average Assets
0.43%
0.69%
0.73%
0.02%
0.49%
46
bps
Return on Average Common Equity
3.36%
5.56%
6.02%
0.19%
4.09%
390
bps
Return on Average Tangible Common Equity (Non-GAAP)
4.86%
7.91%
8.62%
0.55%
5.96%
541
bps
Net Interest Margin (TE)
(2)
3.59%
3.58%
3.55%
3.23%
3.39%
16
bps
Tangible Efficiency Ratio (TE)
(2)
(Non-GAAP)
78.2%
74.3%
73.2%
102.4%
81.9%
(2,051)
bps
Tangible Common Equity Ratio (Non-GAAP)
9.37%
9.01%
8.66%
8.75%
8.69%
(6)
bps
Tier 1 Leverage Ratio
10.42%
10.01%
9.70%
9.37%
9.59%
22
bps
Tier 1 Common Ratio (Non-GAAP)
12.97%
12.04%
11.74%
11.39%
11.08%
(31)
bps
Total Risk Based Capital Ratio
15.54%
14.54%
14.19%
13.80%
13.45%
(35)
bps
Net Charge-Offs to Average Loans
(3)
0.07%
0.11%
0.01%
0.06%
0.05%
(1)
bps
Nonperforming Assets to Total Assets
(3)
0.84%
0.81%
0.85%
0.83%
0.86%
3
bps
(1)
Excludes the impact of the adoption of the new accounting standard.
(2)
Fully taxable equivalent basis.
(3)
Excluding FDIC Covered Assets and acquired impaired loans.
%/Basis Point
Change
For Quarter Ended: |
 9
Interest Rate Risk
Quarterly Re-pricing Schedule
•
$1.7 Billion in time deposits re-price over next 12 months at weighted average
0.68% rate •
During 2Q13, new and re-priced time deposits were booked at an average cost of
0.32% •
In 2Q13, retention rate of time deposits was 83% with average reduction in
rate of 25 basis points $ in millions
Note: Amounts exclude re-pricing of assets and liabilities from prior
quarters Excludes FDIC loans and receivable, non-accrual loans and market value
adjustments 3Q13
4Q13
1Q14
2Q14
3Q14
Cash Equivalents
Balance
162.2
$
-
$
-
$
-
$
-
$
Rate
1.28%
0.00%
0.00%
0.00%
0.00%
Investments
Balance
101.5
$
85.1
$
82.9
$
83.2
$
83.7
$
Rate
2.83%
2.79%
2.59%
2.84%
3.04%
Fixed Rate Loans
Balance
337.2
$
247.7
$
237.0
$
233.6
$
207.6
$
Rate
5.30%
5.15%
5.12%
5.09%
5.08%
Variable Rate Loans
Balance
3,736.7
$
16.7
$
16.8
$
24.1
$
4.0
$
Rate
3.34%
4.30%
4.46%
4.61%
4.68%
Held for Sale Loans
Balance
162.0
$
-
$
-
$
-
$
-
$
Rate
2.85%
0.00%
0.00%
0.00%
0.00%
Time Deposits
Balance
609.4
$
419.9
$
374.1
$
250.7
$
79.8
$
Rate
0.52%
0.76%
0.85%
0.66%
0.84%
Repos
Balance
289.4
$
-
$
-
$
-
$
-
$
Rate
0.15%
0.00%
0.00%
0.00%
0.00%
Borrowed Funds
Balance
135.0
$
1.0
$
0.8
$
1.6
$
8.8
$
Rate
3.47%
4.20%
3.92%
4.15%
4.51% |
 10
Interest Rate Risk
Simulations
Source: Bancware model, as of June 30, 2013
* Assumes instantaneous and parallel shift in interest rates based on static
balance sheet •
Asset sensitive from an interest rate risk position
•
The degree of asset sensitivity is a function of the reaction of
competitors to changes in deposit pricing
•
Forward curve has a slightly positive impact over 12 months
Base
Blue
Forward
Change In:
-200 bp*
-100 bp*
Case
+100 bp*
+200 bp*
Chip
Curve
Net Interest
Income
-4.4%
-1.7%
0.0%
3.3%
6.8%
0.1%
0.9%
Economic
Value of
Equity
-15.5%
-13.5%
0.0%
4.7%
8.3%
0.0%
0.0% |
 11
Operating Improvement Initiative
Composition of Expected Benefits –
Updated for 2Q13
Expense Initiatives
Compensation
Branch closures
Other reductions
Branch closings
Closing 11 branch offices
(+2 branches from 1Q13)
Contracts
Consumer products
IT Maintenance
Consulting
Marketing & Technology
Telephone
Other Items
Business travel
Occupancy expense
Professional services
Revenue Enhancements
Loan related fee income
Mortgage mandatory delivery
Increased origination activity
Service fees
$ in millions
$20.8 million pre-tax net benefit
realized in 2014 and beyond
40% of initiatives, representing
34% of total benefits, were
completed through June 2013
Salary & Benefits
40%
Branch Closings
18%
Contracts
13%
Marketing & Technology
7%
Other Expense
13%
Total Expense
92%
Revenue Enhancements
8%
100% |
 12
Operating Improvement Initiative
Timing
of Expected Net Benefits
$ in thousands
$20.8 million annual pre-tax earnings run-rate improvement by 1Q14
92% expense reductions
8% revenue improvements
Aggregate
anticipated
$8.0
million
pre-tax
implementation
costs
–
up
from
$3.9
million in 1Q13
91% or $7.0 million of total implementation costs were incurred in 2Q13
Net benefit of $3.8 million in 2013
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2013
2014
2015
Actual
Estimated
Estimated
Estimated
Estimated
Estimated
Estimated
Estimated
Estimated
Estimated
Estimated
Expense Reductions
:
Branch closings
$585
$749
$951
$951
$951
$951
$951
$951
$2,286
$3,806
$3,806
Contracts
$229
$359
$490
$645
$645
$645
$645
645
1,078
2,580
2,580
Marketing & Technology
$63
$190
$236
$236
$236
$236
$236
236
490
945
945
Other expense
$436
$1,048
$1,196
$896
$896
$896
$896
$896
2,680
3,583
3,583
Salary & benefits
$1,056
$1,628
$2,018
$2,078
$2,078
$2,078
$2,078
2,078
4,702
8,310
8,310
$2,369
$3,974
$4,892
$4,806
$4,806
$4,806
$4,806
$4,806
$11,235
$19,224
$19,224
Revenue improvements
-
213
389
389
389
389
389
389
601
1,555
1,555
Total earnings enhancement
$2,369
$4,186
$5,280
$5,195
$5,195
$5,195
$5,195
$5,195
$11,836
$20,779
$20,779
Implementation cost
(7,037)
(1,000)
-
-
-
-
-
-
(8,036)
-
-
Net Benefit
($4,667)
$3,187
$5,280
$5,195
$5,195
$5,195
$5,195
$5,195
$3,800
$20,779
$20,779
Impact to Full Year
Quarterly Impact: |
 13
Asset Quality
Non-Performing Assets Trends
$ in thousands |
 14
Asset Quality
Legacy Portfolio
Asset Quality Summary
(Excludes FDIC covered assets and acquired impaired loans)
•
NPAs equated to 0.86%
of total assets, up 3 bps
compared to 1Q13
•
$183 million in classified
assets (-14% from
1Q13)
•
$108 million special
mention loans (-3% from
1Q13)
•
Net charge-offs of $1.0
million or an annualized
rate of 0.05% of
average loans
•
$3.3 million provision for
legacy franchise in
2Q13
($ thousands)
6/30/2012
3/31/2013
6/30/2013
Nonaccrual Loans
66,545
$
66,659
$
71,556
$
8%
7%
OREO
18,681
26,515
25,893
39%
-2%
Accruing Loans 90+ Days Past Due
1,275
2,827
2,118
66%
-25%
Nonperforming Assets
86,501
96,001
99,567
15%
4%
Past Due Loans
84,653
85,398
93,872
11%
10%
Classified Loans
200,872
213,589
183,414
-9%
-14%
Nonperforming Assets/Assets
0.84%
0.83%
0.86%
2
bps
3
bps
NPAs/(Loans + OREO)
1.33%
1.27%
1.25%
(8)
bps
(2)
bps
Classified Assets/Total Assets
1.94%
1.84%
1.59%
(35)
bps
(25)
bps
(Past Dues & Nonaccruals)/Loans
1.30%
1.13%
1.18%
(12)
bps
5
bps
Provision For Loan Losses
4,271
$
(3,941)
$
3,344
$
-22%
-185%
Net Charge-Offs/(Recoveries)
1,102
1,170
1,029
-7%
-12%
Provision Less Net Charge-Offs
3,169
$
(5,111)
$
2,315
$
-27%
-145%
Net Charge-Offs/Average Loans
0.07%
0.06%
0.05%
(2)
bps
(1)
bps
Allowance For Loan Losses/Loans
1.23%
0.99%
0.84%
(39)
bps
(15)
bps
Allowance For Credit Losses/Loans
1.23%
0.99%
0.97%
(26)
bps
(2)
bps
For Quarter Ended:
% or Basis Point Change
Year/Year
Qtr/Qtr |
 15
Asset Quality
Total Portfolio Trends
($thousands)
Nonaccruals
625,938
$
463,075
$
409,775
$
-35%
-12%
OREO & Foreclosed
129,917
131,836
129,607
0%
-2%
90+ Days Past Due
8,270
5,697
4,126
-50%
-28%
Nonperforming Assets
764,126
$
600,608
$
543,508
$
-29%
-10%
NPAs/Assets
6.30%
4.63%
4.24%
(206)
bps
(39)
bps
NPAs/(Loans + OREO)
9.71%
6.87%
6.02%
(369)
bps
(85)
bps
LLR/Loans
2.42%
2.21%
1.83%
(59)
bps
(38)
bps
ACL/Loans
2.42%
2.21%
1.95%
(47)
bps
(26)
bps
Net Charge-Offs/Loans
0.06%
0.06%
0.05%
(1)
bps
(1)
bps
Past Dues:
30-89 Days Past Due
46,391
$
33,227
$
35,204
$
-24%
6%
90+ days Past Due
8,270
5,697
4,126
-50%
-28%
Nonaccual Loans
625,938
463,075
409,775
-35%
-12%
Total 30+ Past Dues
680,599
$
501,999
$
449,105
$
-34%
-11%
% Loans
8.80%
5.84%
5.04%
(376)
(80)
Total Portfolio
2Q12
1Q13
2Q13
% or Basis Point Change
Year/Year
Qtr/Qtr |
 16
Markets
Loan Growth
Organic Loan Growth
$ in millions
*
Organic
loan
growth
excludes
the
outstanding
balance
of
loans
acquired
in
non-covered
transactions
(e.g.,
OMNI,
Cameron,
and Florida Gulf) at the date of the acquisition in the respective acquisition
periods 2nd Quarter 2013:
•
$394 million, or
+5% (+21%
annualized)
Since YE 2011:
•
$1.7 billion, or
+28% (+19%
annualized)
Since YE 2009:
•
$2.8 billion, or
+69% (+20%
annualized)
•
The FDIC
covered loan
portfolio declined
45%, or $752
million (13%
annualized rate) |
 17
Markets
Net Loan Growth By State –
2Q13
$ in millions
Excludes covered loan portfolio |
 18
Markets
Quarterly Organic Loan Growth
*Organic loan growth excludes the outstanding balance of loans acquired in
all transactions at the date of the acquisition in the respective acquisition periods
•
First quarter of each year tends
to exhibit slower loan growth
than other quarters |
 19
Markets
Loan Originations 2Q13 –Top Markets
$ in millions
•
$1.2 billion in total
funded loans and
unfunded loan
commitments
originated in 2Q13
•
Significant growth in
Houston, New
Orleans, Lafayette,
Birmingham and Baton
Rouge
•
Continued growth in
other markets in which
we have invested
heavily
Loan commitments and originations include renewals |
 20
Excludes acquired deposits
Organic Deposit Growth
•
Core deposit growth
of $66 million, or
+0.08% (+3%
annualized)
•
Decrease of $45
million, or -0.4% in
2Q13 (-2%
Annualized)
•
$84 million (4%)
growth in NIB deposits
for 2Q13
•
$110 million (5%)
decline in time
deposits in 2Q13
Total Deposit Growth
Markets
Organic Deposit Growth
$ in millions
2nd Quarter 2013: |
 21
Markets
Non-Interest Bearing Deposit Accounts
•
Strong account growth in
high-focus markets |
 22
Markets
Noninterest Bearing Deposits
% of Total Deposits
•
Since 2010, total
noninterest bearing
deposits have
increased $1.2 billion
or +134% (+54%
annualized rate)
•
Strong growth in 2Q13;
+$84 million on a
linked quarter basis
(17% annualized rate)
•
Top 2Q13 noninterest
bearing deposit growth
markets include
Houston, New Orleans,
Birmingham, and
Baton Rouge
Noninterest bearing deposits at period-end |
 23
Markets
2Q13 Highlights
•
Loan pricing and structure remain competitive for target commercial and
business banking clients.
•
Houston, New Orleans, Acadiana, Birmingham and Baton Rouge showed
strong commercial loan originations
•
Loans and commitments originated during 2Q13 of $1.2 billion with 50% fixed
rate and 50% floating rate
•
Commercial loans originated and funded in 2Q13 totaled $499 million with a
mix of 35% fixed and 65% floating ($826 in commercial loan commitments
during the quarter)
•
Strong commercial pipeline of $738 million at quarter-end
•
Small business loan originations, including lines of credit, grew $87 million or
13% in 2Q13 (50% annualized)
•
Period-end core deposit growth of $66 million, with non-interest bearing
deposits up $84 million ($72 million linked quarter growth on an
average
balance basis) |
 24
Retail and Small Business
2Q13 Progress
•
Completed closure and consolidation of 3 branches in the second quarter of 2013, as
planned, with another 10 branches to be closed in the third quarter.
•
Balanced loan growth with Small Business, Consumer and Mortgage accounting for 46%
of total bank-wide loan growth:
•
Small Business of $61 million
•
Indirect of $10 million
•
Direct Consumer and Mortgage of $108 million
•
Small Business account growth decreased 5% on a linked quarter basis and
increased 16% from 2Q12
•
Consumer accounts growth decreased 7% on a linked quarter basis and up 38%
from 2Q12
•
Continued emphasis on branch efficiency, productivity and enhanced digital
delivery, with Retail staffing mid July down 7.8% from end of first qtr,
with staff costs down 6.7%. FTEs and staff costs to decline further in 3rd
qtr with branch closures. •
Continued investment with the addition of 4 new business bankers
during the 2nd quarter
•
Checking account growth in new accounts remains strong, with account openings off
slightly from prior quarter: |
 25
Wealth And Capital Markets
2Q13 Progress
•
ICP/IWA revenues
of $3.0 million (up
3% compared to
1Q13 and up 46%
from 2Q12)
•
ICP currently
provides research
coverage on 72
public energy
companies
•
IWA assets under
management
increased 1%, to
$1.1 billion at June
30, 2013 |
 Appendix
26 |
 27
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
$0
$200
$400
$600
$800
$1,000
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Projected Average Loan Balances and Net Yields
Projected Average Balance
Projected Net Yield
Appendix
Expected Amortization Comparison |
 28
Appendix
Expected Amortization Comparison
$(30.00)
$(25.00)
$(20.00)
$(15.00)
$(10.00)
$(5.00)
$-
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Millions
Indemnification Asset Expected Amortization ($ in Millions)
Current Method
Legacy Method |
 29
Appendix
FDIC Covered Loan Portfolio Roll Forward
Average
Income /
Expense
Average
Yield
Average
Income /
Expense
Average
Yield
Average
Income /
Expense
Average
Yield
Average
Income /
Expense
Average
Yield
Covered Loans
1,153,954
55,400
18.878%
1,112,153
49,550
17.528%
1,039,469
41,607
16.047%
954,555
30,324
12.619%
Mortgage Loans
169,580
5,306
12.517%
155,989
5,318
13.636%
180,902
4,398
9.724%
170,420
4,135
9.706%
Indirect Automobile
(0)
-
0.000%
(0)
-
0.000%
(0)
-
0.000%
-
-
0.000%
Credit Card
853
14
6.746%
860
14
6.664%
824
13
6.565%
789
14
7.147%
Consumer
149,877
5,282
14.020%
148,001
5,308
14.267%
130,960
3,509
10.867%
126,164
2,594
8.248%
Line Of Credit-Consumer Loans
72,598
3,462
18.971%
69,910
3,661
20.831%
41,802
3,200
31.044%
40,543
2,967
29.355%
Commercial & Business Banking
761,048
41,335
21.257%
737,394
35,250
18.706%
684,981
30,487
17.803%
616,642
20,613
13.224%
Loans in Process
(3)
-
0.000%
(1)
-
0.000%
(1)
-
0.000%
(3)
-
0.000%
Overdrafts
0
-
0.000%
0
-
0.000%
0
-
0.000%
0
-
0.000%
FDIC Loss Share Receivable
448,746
(33,488)
-29.201%
411,328
(28,201)
-26.828%
384,319
(27,702)
-28.832%
268,700
(18,130)
-26.692%
Net Covered Loan Portfolio
1,602,700
21,912
7.596%
1,523,481
21,349
7.678%
1,423,788
13,905
5.351%
1,223,255
12,194
5.110%
Average
Income /
Expense
Average
Yield
Average
Income /
Expense
Average
Yield
Average
Income /
Expense
Average
Yield
Average
Income /
Expense
Average
Yield
Covered Loans
1,153,954
55,400
18.878%
1,112,153
49,550
17.528%
1,039,469
41,607
16.047%
954,555
30,324
12.619%
CapitalSouth Bank
169,584
6,480
15.034%
150,872
6,737
17.537%
138,793
4,109
11.855%
131,981
3,610
10.852%
Orion Bank
651,176
35,154
21.221%
641,252
29,720
18.235%
597,706
25,287
16.960%
548,977
17,685
12.789%
Century Bank
244,874
8,047
12.967%
232,967
7,137
12.108%
219,726
6,401
11.703%
199,836
4,943
9.869%
Sterling Bank
88,322
5,718
25.371%
87,063
5,956
26.806%
83,245
5,810
27.941%
73,762
4,087
21.956%
FDIC Loss Share Receivable
448,746
(33,488)
-29.201%
411,328
(28,201)
-26.828%
384,319
(27,702)
-28.832%
268,700
(18,130)
-26.692%
CapitalSouth Bank
40,443
(3,213)
-31.088%
35,811
(3,431)
-37.492%
29,301
(2,388)
-32.596%
18,955
(2,347)
-48.987%
Orion Bank
271,457
(22,983)
-33.130%
251,749
(17,944)
-27.892%
235,594
(17,330)
-29.423%
164,219
(10,492)
-25.277%
Century Bank
101,167
(3,875)
-14.987%
92,076
(3,200)
-13.601%
90,384
(4,100)
-18.146%
65,145
(3,105)
-18.857%
Sterling Bank
35,680
(3,417)
-37.472%
31,691
(3,625)
-44.761%
29,040
(3,884)
-53.502%
20,382
(2,185)
-42.404%
Net Covered Loan Portfolio
1,153,954
21,912
7.596%
1,112,153
21,349
7.678%
1,039,469
13,905
5.351%
954,555
12,194
5.110%
CapitalSouth Bank
169,584
3,267
7.706%
150,872
3,305
8.764%
138,793
1,721
4.961%
131,981
1,262
3.826%
Orion Bank
651,176
12,171
7.477%
641,252
11,776
7.345%
597,706
7,958
5.326%
548,977
7,192
5.240%
Century Bank
244,874
4,173
6.816%
232,967
3,937
6.760%
219,726
2,301
4.188%
199,836
1,837
3.678%
Sterling Bank
88,322
2,301
10.420%
87,063
2,331
10.709%
83,245
1,925
9.252%
73,762
1,903
10.317%
2Q2013
3Q2012
4Q2012
1Q2013
2Q2013
3Q2012
4Q2012
1Q2013 |