Exhibit 99.1

 

FOR IMMEDIATE RELEASE

October 22, 2013

Contact:

Daryl G. Byrd, President and CEO (337) 521-4003

John R. Davis, Senior Executive Vice President (337) 521-4005

IBERIABANK Corporation Reports Third Quarter Results

LAFAYETTE, LOUISIANA — IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 126-year-old IBERIABANK (www.iberiabank.com), reported operating results for the third quarter ended September 30, 2013. For the quarter, the Company reported income available to common shareholders of $23 million, or $0.78 fully diluted earnings per share. In the third quarter of 2013, the Company incurred costs to implement previously disclosed earnings improvement initiatives and other non-operating costs equal to $2.2 million on a pre-tax basis, or $0.05 per share on an after-tax basis. Excluding those items, EPS in the third quarter of 2013 was $0.83 per share on a non-GAAP operating basis, compared to $0.69 per share in the second quarter of 2013 (refer to press release supplemental table).

Daryl G. Byrd, President and Chief Executive Officer, commented, “During the third quarter of 2013, we experienced solid growth in loans and deposits and a fairly stable margin during the third quarter. The decline in mortgage activity in the third quarter was offset by excellent growth in other fee income products and services. We are very pleased with the progress we achieved in our profitability improvement initiative during the third quarter. Our enhanced efficiency efforts included closing or consolidating 10 bank branches and three mortgage locations as we fine-tune our distribution system. This is an ongoing, proactive effort and we anticipate additional expense savings and revenue enhancements to be realized over the next few quarters. We remain focused on achieving the EPS guidance we projected for the investment community and our shareholders.”

Highlights for the Third Quarter of 2013 and September 30, 2013:

 

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The net interest margin declined two basis points on a linked quarter basis to 3.37%. Management stated comfort with expectations for the net interest margin in the fourth quarter of 2013 to be near the upper-end of the previously disclosed guidance range of 3.30% to 3.35%.

 

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The Company’s profitability improvement initiatives have achieved aggregate annual run-rate benefits in excess of $21 million. In the third quarter of 2013, operating expenses declined $4 million, or 4%, on a linked quarter basis.

 

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Gross loan growth was $295 million, or 4%, between quarter-ends (16% annualized rate), excluding all assets covered under FDIC loss share agreements and other non-covered acquired assets (collectively “Acquired Assets”).

 

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Total deposits increased $309 million, or 3%, between quarter-ends (12% annualized rate). Noninterest bearing deposits increased $474 million, or 23%, and time deposits decreased $104 million, or 5%, during the third quarter. Approximately 52% of the noninterest bearing deposit increase during the third quarter was the result of organic client growth and 48% due to a shift in interest-bearing deposits into noninterest bearing deposits. At September 30, 2013, noninterest bearing deposits equated to 23% of total deposits.

 

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The Company’s legacy asset quality continued to be strong in the third quarter of 2013. Nonperforming assets (“NPAs”), excluding Acquired Assets, equated to 0.66% of total assets at September 30, 2013, compared to 0.69% at June 30, 2013. On that basis, loans past due 30 days or more equated to 0.75% of total loans at September 30, 2013, compared to 0.88% at June 30, 2013. Classified assets excluding Acquired Assets decreased $20 million, or 20%, during the third quarter, and decreased from 0.85% of total assets at June 30, 2013, to 0.66% at September 30, 2013.

 

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The Company recorded a $2 million loan loss provision in the third quarter of 2013, unchanged on a linked quarter basis. Net charge-offs totaled $239,000 in the third quarter of 2013 (the second lowest level of net charge-offs in the Company’s history), or an annualized 0.01% of average loans, compared to 0.05% of average loans in the second quarter of 2013, and 0.05% of average loans over the past seven quarters.

 

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Capital ratios remained strong. At September 30, 2013, the Company’s tangible common equity ratio was 8.64%, Tier 1 common ratio was 10.95%, and total risk based capital ratio was 13.28%.

Table A - Summary Financial Results

 

		For the Quarter Ended:												Linked Quarter
Selected Financial Data		9/30/2012				6/30/2013				9/30/2013				% Change
Net Income ($ in thousands)		$	21,234			$	15,590			$	23,192				49	%
Per Share Data:
Fully Diluted Earnings		$	0.73			$	0.53			$	0.78				48	%
Operating Earnings (Non-GAAP)			0.83				0.69				0.83				21	%
Pre-provision Operating Earnings (Non-GAAP)			0.92				0.73				0.89				21	%
Tangible Book Value			37.07				36.30				37.00				2	%

 

														Linked Quarter
		As of and for the Quarter Ended:												Basis Point
Key Ratios		9/30/2012				6/30/2013				9/30/2013				Change
Return on Average Assets			0.69	%			0.49	%			0.71	%			22	bps
Return on Average Common Equity			5.56	%			4.09	%			6.08	%			199	bps
Return on Average Tangible Common Equity (Non-GAAP)			7.91	%			5.96	%			8.74	%			278	bps
Net Interest Margin (TE) (1)			3.58	%			3.39	%			3.37	%			(2	) bps
Tangible Efficiency Ratio (TE) (1) (Non-GAAP)			74.3	%			81.9	%			74.5	%			(737	) bps
Tangible Common Equity Ratio (Non-GAAP)			9.01	%			8.69	%			8.64	%			(5	) bps
Tier 1 Leverage Ratio			10.01	%			9.59	%			9.65	%			6	bps
Tier 1 Common Ratio (Non-GAAP)			12.04	%			11.08	%			10.95	%			(13	) bps
Total Risk Based Capital Ratio			14.54	%			13.45	%			13.28	%			(17	) bps
Net Charge-Offs to Average Loans (2)			0.12	%			0.06	%			0.02	%			(4	) bps
Nonperforming Assets to Total Assets (2)			0.65	%			0.69	%			0.66	%			(3	) bps

 

		For the Quarter Ended:
		GAAP								Non GAAP
Adjusted Selected Key Ratios		9/30/2013				Adjustments (3)				9/30/2013
Return on Average Assets			0.71	%			0.05	%			0.76	%
Return on Average Common Equity			6.08	%			0.38	%			6.46	%
Return on Average Tangible Common Equity (Non-GAAP)			8.74	%			0.53	%			9.27	%
Tangible Efficiency Ratio (TE)(1) (Non-GAAP)			74.5	%			(1.6	%)			73.0	%

 

(1)	Fully taxable equivalent basis.

(2)	Excluding FDIC Covered Assets and Acquired Assets.

(3)	Adjusted results exclude the income statement impact of the non-operating items included in Table 11, net of tax where applicable, without adjustment to any balance sheet accounts.

Refer to press release supplemental table for a reconciliation of GAAP and non-GAAP measures.

 

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Operating Results

On a linked quarter basis, average earning assets increased $89 million, or 1%, as average loans and the FDIC receivable increased $186 million, or 2%, average investment securities increased $34 million, or 2%, and other earning assets declined $132 million, or 26%. Also on a linked quarter basis, the average earning asset yield decreased six basis points, and the cost of interest bearing liabilities decreased two basis points. As a result, the tax-equivalent net interest margin declined two basis points. Tax-equivalent net interest income increased $0.9 million, or 1%, as the growth in average earning assets offset the slight decline in the net interest margin.

Table B - Quarterly Average Yields/Cost ⁽¹⁾

 

		For Quarter Ended:												Linked Quarter
														Basis Point
		9/30/2012				6/30/2013				9/30/2013				Change
Investment Securities			2.22	%			1.92	%			1.98	%			6	bps
Covered Loans, net of loss share receivable			7.60	%			5.11	%			3.66	%			(145	) bps
Noncovered Loans			4.55	%			4.40	%			4.39	%			(1	) bps
Loans & Loss Share Receivable			4.71	%			4.35	%			4.21	%			(14	) bps
Mortgage Loans Held For Sale			3.21	%			3.17	%			4.32	%			115	bps
Other Earning Assets			0.85	%			0.87	%			0.89	%			2	bps
Total Earning Assets			4.14	%			3.80	%			3.74	%			(6	) bps
Interest Bearing Deposits			0.58	%			0.42	%			0.40	%			(2	) bps
Short-Term Borrowings			0.21	%			0.16	%			0.14	%			(2	) bps
Long-Term Borrowings			3.10	%			3.39	%			3.37	%			(2	) bps
Total Interest Bearing Liabilities			0.69	%			0.51	%			0.49	%			(2	) bps
Net Interest Spread			3.45	%			3.29	%			3.25	%			(4	) bps
Net Interest Margin			3.58	%			3.39	%			3.37	%			(2	) bps

 

(1)	Earning asset yields are shown on a fully taxable equivalent basis.

The average investment yield improved six basis points during the third quarter of 2013 as a result of reduced bond premium amortization.

The non-covered loan yield declined one basis point as many of the major loan categories experienced fairly stable yields between quarters. The covered loan yield (net of loss share receivable amortization) decreased 145 basis points and the associated covered income declined $4 million, or 35%. The decline in covered income was $2 million less than projected primarily due to accelerated FDIC Indemnification Asset (“IA”) amortization as cash flow improvements during the quarter contributed to higher levels of amortization.

For the fourth quarter of 2013, the Company projects the prospective yield on the covered loan portfolio net of the IA to approximate 4.11%, compared to 3.66% in the third quarter. The average balance of the net covered loan portfolio is projected to decline approximately $101 million, based on current cash flow assumptions and estimates. Net income on the covered loan portfolio is projected to remain fairly stable between the third and fourth quarters of 2013.

 

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On a period-end basis, the IA declined $36 million, or 15%, from $241 million at June 30, 2013 to $205 million at September 30, 2013. The portion of the IA collectible from the FDIC decreased $23 million, or 26%, while the collectible portion from OREO and customers declined $13 million, or 9%.

In the third quarter of 2013, the Company recorded net charge-offs of $239,000, or 0.01% of average loans on an annualized basis and an aggregate provision for credit losses totaling $3.6 million that was divided into two parts – a $2 million provision for loan losses and a $1.6 million provision for unfunded lending commitments, the latter of which is included in noninterest expense.

Aggregate noninterest income increased less than $1 million, or 2%, on a linked quarter basis. The primary changes in noninterest income on a linked quarter basis were:

 

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Decreased mortgage income of $2.5 million, or 14%;

 

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Decreased title revenue of $0.2 million, or 4%; offset by

 

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Increased deposit service charge income of $0.4 million, or 6%;

 

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Increased ATM and debit card income of $0.1 million, or 5%; and

 

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Increased client derivative income of $1.8 million.

The rapidly changing interest rate environment and greater client preferences for long-term fixed rate financing resulted in enhanced client interest in loan interest rate derivative-related transactions. As a result, the Company has experienced a substantial increase in the level of interest rate derivative activity executed on behalf of clients, and thus, a significant increase in customer derivative commission income over the last several quarters.

The $2.5 million decline in mortgage income was the result of lower production and sales volumes and lower net valuations of derivatives and mortgage loans held for sale due primarily to the changing interest rate environment. The decline in income was partially offset by a $1.9 million reduction in mortgage commission and mortgage production incentives expense (included in noninterest expense).

In the third quarter of 2013, the Company originated $507 million in residential mortgage loans, down $165 million, or 25%, on a linked quarter basis. The decrease in origination volume was the result of the unprecedented rapid increase in mortgage loan rates during the third quarter. Client loan refinancing opportunities accounted for approximately 19% of mortgage loan applications in the third quarter of 2013, compared to 31% in the second quarter of 2013, and approximately 18% between September 30, 2013, and October 11, 2013. The Company sold $552 million in mortgage loans during the third quarter of 2013, down $132 million, or 19%, on a linked quarter basis. Margins on the sale of mortgage loans declined approximately 20 basis points on a linked quarter basis. The mortgage origination pipeline was approximately $182 million at September 30, 2013, compared to $265 million at June 30, 2013, and was approximately $191 million at October 11, 2013. Mortgage loan repurchases and make-whole payments were approximately $0.1 million in the third quarter of 2013, down compared to the second quarter of 2013. The Company’s mortgage business primarily focuses on retail mortgage loans originated through the Company’s origination staff; less than 0.5% of originations year-to-date were purchased through correspondent mortgage loan providers (primarily for community reinvestment-related loan opportunities).

Assets under management at IBERIA Wealth Advisors (“IWA”) were $1.1 billion at September 30, 2013, up 1% compared to June 30, 2013. Income for IWA and IBERIA Capital Partners (“ICP”) increased 7% and 5%, respectively, on a linked quarter basis. ICP experienced modestly lower investment banking income in the third quarter but very strong sales and trading revenues.

Noninterest expense decreased $9 million, or 8%, on a linked quarter basis and included the following changes:

 

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Decreased mortgage commissions and production incentives of $1.9 million;

 

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Decreased legal and professional expenses of $0.9 million;

 

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Decreased base pay of $0.7 million;

 

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Decreased marketing and business development expense of $0.7 million;

 

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Decreased OREO property costs of $0.7 million;

 

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Decreased ATM/debit card expense of $0.6 million; partially offset by

 

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Increased provision for unfunded lending commitments of $1.1 million; and

 

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Increased merger and conversion-related expense of $0.1 million.

Excluding non-operating expenses, total expenses declined $4 million, or 4%, from $110 million in the second quarter of 2013 to $106 million in the third quarter of 2013.

During the third quarter, total headcount at the Company declined by 52 associates on a full-time equivalent basis, or 2%. In aggregate since March 31, 2013, the net headcount reduction equated to 163 associates, or 6% of total headcount. These figures do not include the favorable impact of reduced temporary and overtime costs. While additional expense and revenue improvement initiatives continue in earnest throughout the Company with significant future benefits projected, management stated the specific initiatives outlined to date have been fully executed upon and the targeted benefits have been achieved in aggregate as anticipated.

Loans

Total loans increased $140 million, or 2%, between June 30, 2013 and September 30, 2013. The loan portfolio associated with FDIC-assisted acquisitions at September 30, 2013, decreased $111 million, or 12%, compared to June 30, 2013. Excluding Acquired Assets, total loans increased $295 million, or 4% (16% annualized rate) during the third quarter. Legacy commercial loans increased $153 million, or 3% (which included $34 million in business banking loan growth, up 5%, or 18% annualized rate), legacy consumer loans increased $77 million, or 5%, and legacy mortgage loans increased $64 million, or 20%, during the quarter. Loan origination and renewal growth during the third quarter of 2013 were strongest in the Houston, Arkansas, and Baton Rouge markets. Loan origination mix in the third quarter of 2013 was 57% fixed rate and 43% floating rate and total loans outstanding (excluding nonaccruals) were 52% fixed and 48% floating. Loans and commitments originated and/or renewed during the third quarter of 2013 totaled $1.2 billion (down 6% on a linked quarter basis). Energy-related loans outstanding totaled $674 million at September 30, 2013, up $12 million, or 2%, compared to June 30, 2013, and equated to approximately 7% of total loans. The Company had no student loans outstanding at September 30, 2013.

Table C - Period-End Loans ($ in Millions)

 

		Period-End Balances ($ Millions)												% Change												Mix
		9/30/12				6/30/13				9/30/13				Year/Year				Qtr/Qtr				Annualized				6/30/13				9/30/13
Commercial		$	4,669			$	5,388			$	5,541				19	%			3	%			11	%			61	%			61	%
Consumer			1,485				1,711				1,788				20	%			5	%			18	%			19	%			20	%
Mortgage			231				326				390				69	%			20	%			79	%			4	%			4	%
Legacy Loans		$	6,385			$	7,425			$	7,720				21	%			4	%			16	%			84	%			85	%
Acquired Loans			705				560				516				-27	%			-8	%			-31	%			6	%			6	%
Covered Loans			1,139				918				807				-29	%			-12	%			-48	%			10	%			9	%
Total Loans		$	8,230			$	8,903			$	9,043				10	%			2	%			6	%			100	%			100	%

Deposits

Total deposits increased $309 million, or 3% (12% annualized rate), from June 30, 2013 to September 30, 2013. Noninterest bearing deposits increased $474 million, or 23%, and equated to 23% of total deposits at September 30, 2013, while NOW accounts decreased $348 million, or 14%. Approximately $246 million, or 48% of the change in noninterest bearing deposit volume, was the result of a transition of interest bearing NOW accounts into noninterest bearing deposits. The differential in rate on the transitioned deposits was three basis points. During the third quarter of 2013, the Company retained 95% of the deposit balances that were transferred to noninterest bearing deposits.

 

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Money market and savings account volume increased $287 million, or 7%, between June 30, 2013 and September 30, 2013. Time deposits declined $104 million, or 5% between quarter-ends. Period-end deposit growth during the third quarter of 2013 was strongest in the Houston, Baton Rouge, Little Rock, Mobile, and Montgomery markets.

Table D - Period-End Deposits ($ in Millions)

 

		Period-End Balances ($ Millions)												% Change												Mix
		9/30/12				6/30/13				9/30/13				Year/Year				Qtr/Qtr				Annualized				6/30/13				9/30/13
Noninterest		$	1,852			$	2,055			$	2,529				37	%			23	%			92	%			19	%			23	%
NOW Accounts			2,039				2,485				2,137				5	%			-14	%			-56	%			23	%			20	%
Savings/MMkt			3,791				4,134				4,421				17	%			7	%			28	%			39	%			40	%
Time Deposits			2,231				1,968				1,864				-16	%			-5	%			-21	%			19	%			17	%
Total Deposits		$	9,913			$	10,642			$	10,951				10	%			3	%			12	%			100	%			100	%

On an average balance and linked quarter basis, noninterest-bearing deposits increased $329 million, or 16%, and interest-bearing deposits decreased $239 million, or 3%. The rate on average interest-bearing deposits in the third quarter of 2013 was 0.40%, a decrease of two basis points on a linked quarter basis. Approximately $1.6 billion in time deposits are scheduled to re-price over the next 12 months at a weighted average cost of 0.63%. An additional $0.2 billion in time deposits are scheduled to re-price the following 12 months at a weighted average cost of 1.07%. During the third quarter of 2013, new and re-priced time deposits were booked at an average cost of 0.31%. The Company experienced a time deposit retention rate of 87% in the third quarter of 2013 with an average 34 basis point reduction in rate.

Other Assets And Funding

Excess liquidity averaged $213 million in the third quarter of 2013, down $81 million, or 28%, on a linked quarter basis. The investment portfolio remained stable at $2.1 billion on average in the third quarter of 2013. On a period-end basis, the investment portfolio equated to $2.1 billion, or 16% of total assets at September 30, 2013, unchanged compared to June 30, 2013. The investment portfolio had a modified duration of 3.5 years at September 30, 2013, down compared to 3.9 years at June 30, 2013. At current prepayment speeds, the investment portfolio is projected to create cash flows of approximately $434 million over the next 15 months, or 21% of the total investment portfolio. The Company estimates that a potential increase in interest rates of 100 and 200 basis points at September 30, 2013 would extend the duration of the investment portfolio by 0.6 and 0.8 years, respectively. The investment portfolio went from an $8 million unrealized loss at June 30, 2013, to a $3 million unrealized loss at September 30, 2013. The average yield on investment securities increased six basis points on a linked quarter basis to 1.98% in the third quarter of 2013. The Company holds in its investment portfolio primarily government agency securities. Municipal securities comprised only 9% of total investments at September 30, 2013. The Company holds no sovereign debt, corporate debt or equity securities, or derivative exposure to foreign counterparties.

On a linked quarter basis, average long-term debt decreased $11 million, or 4%, and the cost of debt decreased two basis points to 3.37%. The cost of average interest bearing liabilities was 0.49% in the third quarter of 2013, a decrease of two basis points on a linked quarter basis.

 

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Asset Quality

To provide additional consistency and transparency for financial reporting of Acquired Assets, the Company divides Acquired Assets into five distinct categories:

 

1)	Legacy assets that were originated and not acquired;

 

2)	Acquired Assets that are scheduled to lose FDIC loss share coverage over the next 12 months;

 

3)	Acquired Assets that will continue to be covered under FDIC loss share coverage beyond the next 12 months;

 

4)	Acquired Assets not covered under FDIC loss share agreements using SOP accounting treatment (in accordance with ASC Topic 310-30); and

 

5)	Acquired Assets not covered under FDIC loss share agreements not using SOP accounting treatment.

Table E – Legacy Asset Quality Summary

Excludes the impact of all Acquired Assets (FDIC-assisted acquisitions and other acquisitions, impaired and not impaired)

 

		For Quarter Ended:												% or Basis Point Change
($ thousands)		9/30/2012				6/30/2013				9/30/2013				Year/Year				Qtr/Qtr
Nonperforming Assets		$	66,444			$	76,033			$	75,863				14	%			0	%
Past Due Loans			58,487				65,316				57,662				-1	%			-12	%
Classified Assets			144,090				97,818				78,059				-46	%			-20	%
Nonperforming Assets/Assets			0.65	%			0.69	%			0.66	%			1	bps			(3	)bps
NPAs/(Loans + OREO)			1.04	%			1.02	%			0.98	%			(6	) bps			(4	)bps
Classified Assets/Assets			1.32	%			0.85	%			0.66	%			(66	) bps			(19	)bps
(Past Dues & Nonaccruals)/Loans			0.92	%			0.88	%			0.75	%			(17	) bps			(13	)bps
Provision For Loan Losses		$	226			$	4,949			$	2,868				1169	%			-42	%
Net Charge-Offs/(Recoveries)			1,923				1,028				303				-84	%			-71	%
Provision Less Net Charge-Offs		$	(1,697	)		$	3,921			$	2,565				251	%			-35	%
Net Charge-Offs/Average Loans			0.12	%			0.06	%			0.02	%			(11	) bps			(4	)bps
Allowance For Loan Losses/Loans			1.21	%			0.83	%			0.83	%			(37	) bps			0	bps
Allowance for Credit Losses to Total Loans			1.21	%			0.97	%			0.99	%			(22	) bps			2	bps

Legacy NPAs at September 30, 2013 were $76 million, essentially unchanged compared to June 30, 2013. NPAs equated to 0.66% of total assets at September 30, 2013, compared to 0.69% of total assets at June 30, 2013. Loans past due 30 days or more (including nonaccruing loans) decreased $8 million, or 12%, and represented 0.75% of total loans at September 30, 2013, compared to 0.88% at June 30, 2013. Classified assets declined $20 million, or 20%, during the third quarter of 2013.

Table F provides a breakdown of Acquired Assets under the other four categories pertaining to Acquired Assets and the asset quality performance measures associated with Acquired Assets in each category.

 

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Table F – Acquired Assets By Portfolio Type

All FDIC-assisted acquisitions and other acquired loans (impaired and not impaired)

 

		Covered Assets								Non-Covered Acquired Assets								Total Acquired Assets
($ thousands)		Continued Loss Share Coverage beyond next 12 Months				Losing Loss Share Coverage within next 12 Months				SOP Assets				Non-SOP Assets
Loans, net		$	731,225			$	75,777			$	484,901			$	31,561			$	1,323,464
Other Real Estate Owned			82,137				4,962				11,281				—				98,380
Allowance for Loan Losses			(65,596	)			(13,455	)			(5,329	)			—				(84,380	)
Nonaccrual loans		$	225,252			$	30,059			$	42,480			$	62			$	297,853
Foreclosed assets			1,483				—				67				—				1,550
Other real estate owned			80,654				4,962				11,214				—				96,830
Accruing Loans More Than 90 Days Past Due			7,191				—				2,235				—				9,426
Nonperforming Assets			314,580				35,021				55,996				62				405,659
Total Past Due Loans		$	221,925			$	48,847			$	50,374			$	172			$	321,318
NPAs/(Loans + OREO)			38.68	%			43.38	%			11.29	%			0.20	%			28.53	%
(Past Dues & Nonaccruals)/Loans			30.35	%			64.46	%			10.39	%			0.54	%			24.28	%
Provision For Loan Losses		$	588			$	13			$	(1,455	)		$	—			$	(854	)
Net Charge-Offs/(Recoveries)			(49	)			—				(35	)			20				(64	)
Provision Less Net Charge-Offs		$	637			$	13			$	(1,420	)		$	(20	)		$	(790	)
Net Charge-Offs/Average Loans			-0.03	%			0.00	%			-0.03	%			0.25	%			-0.02	%
Allowance for Loan Losses/Loans			8.97	%			17.76	%			1.10	%			0.00	%			6.38	%
Allowance for Credit Losses to Total Loans			10.81	%			0.00	%			1.10	%			0.00	%			6.38	%

Capital Position

The Company maintains favorable capital strength. At September 30, 2013, the Company reported a tangible common equity ratio of 8.64%, down five basis points compared to June 30, 2013. At September 30, 2013, the Company’s preliminary Tier 1 leverage ratio was 9.65%, up six basis points compared to June 30, 2013. The Company’s preliminary total risk-based capital ratio at September 30, 2013 was 13.28%, down 18 basis points compared to June 30, 2013. The decline in the risk-based capital ratio was due in part to the redeployment of FDIC-loan pay downs that carried a 20% risk weighting into non-covered loans that carried a higher risk weighting.

On October 26, 2011, the Company announced a share repurchase program totaling 900,000 shares of common stock. No shares were repurchased under this program during the third quarter of 2013. A total of 46,692 shares remain under the currently authorized share repurchase program.

At September 30, 2013, book value per share was $51.30, up $0.65 per share compared to June 30, 2013. Tangible book value per share was $37.00, up $0.70 per share compared to June 30, 2013. Based on the closing stock price of the Company’s common stock of $57.55 per share on October 22, 2013, this price equated to 1.12 times September 30, 2013 book value and 1.55 times September 30, 2013 tangible book value per share.

 

8

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On September 17, 2013, 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 2.36%.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with 267 combined offices, including 170 bank branch offices and four LPOs in Louisiana, Arkansas, Tennessee, Alabama, Texas, and Florida, 21 title insurance offices in Arkansas and Louisiana, mortgage representatives in 63 locations in 12 states, eight locations with representatives of IBERIA Wealth Advisors in four states, and one IBERIA Capital Partners, L.L.C. office in New Orleans.

The Company’s common stock trades on the NASDAQ Global Select Market under the symbol “IBKC.” The Company’s market capitalization was approximately $1.7 billion, based on the NASDAQ closing stock price on October 22, 2013.

The following 12 investment firms currently provide equity research coverage on IBERIABANK Corporation:

 

•

Bank of America Merrill Lynch

 

•

FIG Partners, LLC

 

•

Jefferies & Co., Inc.

 

•

Keefe, Bruyette & Woods

 

•

Merion Capital Group

 

•

Oppenheimer & Co., Inc.

 

•

Raymond James & Associates, Inc.

 

•

Robert W. Baird & Company

 

•

Stephens, Inc.

 

•

Sterne, Agee & Leach

 

•

SunTrust Robinson-Humphrey

 

•

Wunderlich Securities

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, October 23, 2013, beginning at 8:00 a.m. Central Time by dialing 1-800-553-5260. The confirmation code for the call is 304685. A replay of the call will be available until midnight Central Time on October 30, 2013 by dialing 1-800-475-6701. The confirmation code for the replay is 304685. 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 transactions that are infrequent in nature. 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. Refer to press release supplemental table for this reconciliation.

 

9

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Forward Looking Statements

To the extent that statements in this press release and the accompanying PowerPoint presentation 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 ,our ability to satisfy new capital and liquidity standards such as those imposed by the Dodd-Frank Act and those adopted by the Basel Committee and federal banking regulators, 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 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, 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 at the Company’s website, http://www.iberiabank.com, under the heading “Investor Information.” All information in this release and the accompanying PowerPoint presentation 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. Certain tabular presentations may not reconcile because of rounding.

 

10

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Table 1 - IBERIABANK CORPORATION

FINANCIAL HIGHLIGHTS

 

		For The Quarter Ended												For The Quarter Ended
		September 30,												June 30,
		2013				2012				% Change				2013				% Change
Income Data (in thousands):
Net Interest Income		$	97,452			$	96,726				1	%		$	96,482				1	%
Net Interest Income (TE) (1)			99,773				99,143				1	%			98,878				1	%
Net Income			23,192				21,234				9	%			15,590				49	%
Earnings Available to Common Shareholders - Basic			23,192				21,234				9	%			15,590				49	%
Earnings Available to Common Shareholders - Diluted			22,767				20,828				9	%			15,297				49	%
Per Share Data:
Earnings Available to Common Shareholders - Basic		$	0.78			$	0.73				7	%		$	0.53				49	%
Earnings Available to Common Shareholders - Diluted			0.78				0.73				7	%			0.53				48	%
Operating Earnings (Non-GAAP)			0.83				0.83				(0	%)			0.69				21	%
Book Value			51.30				51.44				(0	%)			50.65				1	%
Tangible Book Value (2)			37.00				37.07				(0	%)			36.30				2	%
Cash Dividends			0.34				0.34				—				0.34				—
Closing Stock Price			51.91				45.80				13	%			53.61				(3	%)
Key Ratios: (3)
Operating Ratios:
Return on Average Assets			0.71	%			0.69	%							0.49	%
Return on Average Common Equity			6.08	%			5.56	%							4.09	%
Return on Average Tangible Common Equity (2)			8.74	%			7.91	%							5.96	%
Net Interest Margin (TE) (1)			3.37	%			3.58	%							3.39	%
Efficiency Ratio			76.9	%			76.7	%							84.4	%
Tangible Efficiency Ratio (TE) (1) (2)			74.5	%			74.3	%							81.9	%
Full-time Equivalent Employees			2,559				2,684								2,611
Capital Ratios:
Tangible Common Equity Ratio (Non-GAAP)			8.64	%			9.01	%							8.69	%
Tangible Common Equity to Risk-Weighted Assets			10.93	%			12.35	%							11.04	%
Tier 1 Leverage Ratio			9.65	%			10.01	%							9.59	%
Tier 1 Capital Ratio			12.02	%			13.27	%							12.21	%
Total Risk Based Capital Ratio			13.28	%			14.54	%							13.46	%
Common Stock Dividend Payout Ratio			43.6	%			47.2	%							64.8	%
Asset Quality Ratios:
Excluding FDIC Covered Assets and Acquired Assets
Nonperforming Assets to Total Assets (4)			0.66	%			0.65	%							0.69	%
Allowance for Loan Losses to Loans			0.83	%			1.21	%							0.83	%
Net Charge-offs to Average Loans			0.02	%			0.12	%							0.06	%
Nonperforming Assets to Total Loans and OREO (4)			0.98	%			1.04	%							1.02	%
		For The Quarter Ended								For The Quarter Ended
		September 30,								June 30,				March 31,				December 31,
		2013				2013				2013				2013				2012
Balance Sheet Summary (in thousands):		End of Period				Average				Average				Average				Average
Excess Liquidity (5)		$	292,706			$	213,092			$	294,544			$	629,406			$	432,752
Total Investment Securities			2,120,067				2,096,974				2,096,166				2,096,229				1,957,542
Loans, Net of Unearned Income			9,043,037				8,975,347				8,748,476				8,543,538				8,384,218
Loans, Net of Unearned Income, Excluding Covered Assets and Acquired Assets			7,719,573				7,616,272				7,262,803				6,922,784				6,636,343
Total Assets			13,145,077				12,944,435				12,881,551				13,075,008				12,692,665
Total Deposits			10,950,764				10,728,256				10,638,478				10,703,883				10,315,944
Total Shareholders’ Equity			1,525,268				1,514,155				1,528,606				1,531,068				1,533,561

 

(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)	All ratios are calculated on an annualized basis for the period indicated.

(4)	Nonperforming assets consist of nonaccruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets.

(5)	Excess Liquidity includes interest-bearing deposits in banks and fed funds sold, but excludes liquidity sources and uses from off-balance sheet arrangements.

N/M - Comparison of the information presented is not meaningful given the periods presented.

 

11

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Table 2 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

 

		September 30,												June 30,
BALANCE SHEET (End of Period)		2013				2012				% Change				2013				% Change
ASSETS
Cash and Due From Banks		$	260,742			$	206,373				26.3	%		$	227,114				14.8	%
Interest-bearing Deposits in Banks			292,706				416,693				(29.8	%)			120,451				143.0	%
Total Cash and Equivalents			553,448				623,066				(11.2	%)			347,565				59.2	%
Investment Securities Available for Sale			1,964,389				1,757,934				11.7	%			1,912,058				2.7	%
Investment Securities Held to Maturity			155,678				188,999				(17.6	%)			163,240				(4.6	%)
Total Investment Securities			2,120,067				1,946,933				8.9	%			2,075,298				2.2	%
Mortgage Loans Held for Sale			108,285				211,132				(48.7	%)			162,031				(33.2	%)
Loans, Net of Unearned Income			9,043,037				8,229,946				9.9	%			8,903,037				1.6	%
Allowance for Loan Losses			(148,545	)			(201,387	)			(26.2	%)			(162,903	)			(8.8	%)
Loans, Net			8,894,492				8,028,559				10.8	%			8,740,134				1.8	%
Loss Share Receivable			204,885				431,167				(52.5	%)			241,040				(15.0	%)
Premises and Equipment			289,157				304,699				(5.1	%)			296,988				(2.6	%)
Goodwill and Other Intangibles			426,384				424,154				0.5	%			427,581				(0.3	%)
Other Assets			548,359				564,409				(2.8	%)			532,866				2.9	%
Total Assets		$	13,145,077			$	12,534,119				4.9	%		$	12,823,503				2.5	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing Deposits		$	2,529,296			$	1,851,569				36.6	%		$	2,055,333				23.1	%
NOW Accounts			2,136,624				2,038,783				4.8	%			2,484,824				(14.0	%)
Savings and Money Market Accounts			4,420,776				3,791,616				16.6	%			4,133,770				6.9	%
Certificates of Deposit			1,864,068				2,231,143				(16.5	%)			1,967,791				(5.3	%)
Total Deposits			10,950,764				9,913,111				10.5	%			10,641,718				2.9	%
Short-term Borrowings			—				290,000				(100.0	%)			—				—
Securities Sold Under Agreements to Repurchase			258,850				241,501				7.2	%			289,377				(10.5	%)
Trust Preferred Securities			111,862				111,862				—				111,862				—
Other Long-term Debt			169,239				317,442				(46.7	%)			171,623				(1.4	%)
Other Liabilities			129,094				145,049				(11.0	%)			104,162				23.9	%
Total Liabilities			11,619,809				11,018,965				5.5	%			11,318,742				2.7	%
Total Shareholders’ Equity			1,525,268				1,515,154				0.7	%			1,504,761				1.4	%
Total Liabilities and Shareholders’ Equity		$	13,145,077			$	12,534,119				4.9	%		$	12,823,503				2.5	%

 

		September 30,				June 30,				March 31,				December 31,				September 30,
BALANCE SHEET (Average)		2013				2013				2013				2012				2012
ASSETS
Cash and Due From Banks		$	219,113			$	219,344			$	220,746			$	212,404			$	192,891
Interest-bearing Deposits in Banks			213,092				294,544				629,406				432,752				236,653
Investment Securities			2,096,974				2,096,166				2,096,229				1,957,542				2,005,975
Mortgage Loans Held for Sale			119,343				170,620				178,387				212,432				182,543
Loans, Net of Unearned Income			8,975,347				8,748,476				8,543,538				8,384,218				8,016,829
Allowance for Loan Losses			(160,994	)			(183,783	)			(245,384	)			(196,634	)			(180,798	)
Loss Share Receivable			228,047				268,700				384,319				411,328				448,746
Other Assets			1,253,513				1,267,484				1,267,767				1,278,623				1,279,715
Total Assets		$	12,944,435			$	12,881,551			$	13,075,008			$	12,692,665			$	12,182,554
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing Deposits		$	2,338,772			$	2,010,263			$	1,937,890			$	1,928,361			$	1,773,302
NOW Accounts			2,257,050				2,488,721				2,464,922				2,207,032				2,023,769
Savings and Money Market Accounts			4,213,765				4,113,671				4,170,123				3,935,675				3,701,947
Certificates of Deposit			1,918,669				2,025,823				2,130,948				2,244,876				2,206,939
Total Deposits			10,728,256				10,638,478				10,703,883				10,315,944				9,705,957
Short-term Borrowings			1,630				77				500				9,239				121,957
Securities Sold Under Agreements to Repurchase			288,029				294,712				292,448				262,027				245,486
Trust Preferred Securities			111,862				111,862				111,862				111,862				113,905
Long-term Debt			170,452				181,884				300,071				312,190				324,923
Other Liabilities			130,052				125,932				135,176				147,842				150,988
Total Liabilities			11,430,280				11,352,945				11,543,940				11,159,104				10,663,216
Total Shareholders’ Equity			1,514,155				1,528,606				1,531,068				1,533,561				1,519,338
Total Liabilities and Shareholders’ Equity		$	12,944,435			$	12,881,551			$	13,075,008			$	12,692,665			$	12,182,554

 

12

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Table 3 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

 

		For The Three Months Ended
		September 30,												June 30,
INCOME STATEMENT		2013				2012				% Change				2013				% Change
Interest Income		$	108,512			$	111,951				(3.1	%)		$	108,177				0.3	%
Interest Expense			11,060				15,225				(27.4	%)			11,695				(5.4	%)
Net Interest Income			97,452				96,726				0.8	%			96,482				1.0	%
Provision for Loan Losses			2,014				4,053				(50.3	%)			1,807				11.4	%
Net Interest Income After Provision for Loan Losses			95,438				92,673				3.0	%			94,675				0.8	%
Service Charges			7,512				6,952				8.1	%			7,106				5.7	%
ATM / Debit Card Fee Income			2,476				2,377				4.2	%			2,357				5.0	%
BOLI Proceeds and Cash Surrender Value Income			908				916				(0.9	%)			901				0.8	%
Mortgage Income			15,202				23,215				(34.5	%)			17,708				(14.2	%)
Gain (Loss) on Sale of Investments, Net			13				41				(68.3	%)			(57	)			122.8	%
Title Revenue			5,482				5,623				(2.5	%)			5,696				(3.8	%)
Broker Commissions			3,950				3,092				27.8	%			3,863				2.3	%
Other Noninterest Income			7,720				4,337				78.0	%			4,915				57.1	%
Total Noninterest Income			43,263				46,553				(7.1	%)			42,489				1.8	%
Salaries and Employee Benefits			59,234				59,938				(1.2	%)			63,815				(7.2	%)
Occupancy and Equipment			14,572				13,869				5.1	%			14,283				2.0	%
Amortization of Acquisition Intangibles			1,179				1,287				(8.4	%)			1,181				(0.2	%)
Other Noninterest Expense			33,166				34,754				(4.6	%)			38,082				(12.9	%)
Total Noninterest Expense			108,152				109,848				(1.5	%)			117,361				(7.8	%)
Income Before Income Taxes			30,549				29,378				4.0	%			19,803				54.3	%
Income Taxes			7,357				8,144				(9.7	%)			4,213				74.6	%
Net Income		$	23,192			$	21,234				9.2	%		$	15,590				48.8	%
Preferred Stock Dividends			—				—				—				—				—
Earnings Available to Common Shareholders - Basic			23,192				21,234				9.2	%			15,590				48.8	%
Earnings Allocated to Unvested Restricted Stock			(425	)			(406	)			4.5	%			(293	)			45.1	%
Earnings Available to Common Shareholders - Diluted			22,767				20,828				9.3	%			15,297				48.8	%
Earnings Per Share, Diluted		$	0.78			$	0.73				7.1	%		$	0.53				48.4	%
Impact of Non-Operating Expenses (Non-GAAP)		$	0.05			$	0.10				(51.2	%)		$	0.16				(69.2	%)
Earnings Per Share, Diluted, Excluding Non-operating Expenses (Non-GAAP)		$	0.83			$	0.83				(0.3	%)		$	0.69				20.5	%
NUMBER OF SHARES OUTSTANDING
Basic Shares - All Classes (Average)			29,631,799				29,066,000				1.9	%			29,610,315				0.1	%
Diluted Shares - Common Shareholders (Average)			29,147,232				28,548,432				2.1	%			29,066,906				0.3	%
Book Value Shares (Period End) (1)			29,734,459				29,456,748				0.9	%			29,710,058				0.1	%
		2013												2012
		Third				Second				First				Fourth				Third
INCOME STATEMENT		Quarter				Quarter				Quarter				Quarter				Quarter
Interest Income		$	108,512			$	108,177			$	106,416			$	114,779			$	111,951
Interest Expense			11,060				11,695				13,545				14,789				15,225
Net Interest Income			97,452				96,482				92,871				99,990				96,726
(Reversal of) Provision for Loan Losses			2,014				1,807				(3,377	)			4,866				4,053
Net Interest Income After (Reversal of) Provision for Loan Losses			95,438				94,675				96,248				95,124				92,673
Total Noninterest Income			43,263				42,489				44,491				50,354				46,553
Total Noninterest Expense			108,152				117,361				144,898				113,441				109,848
Income (Loss) Before Income Taxes			30,549				19,803				(4,159	)			32,037				29,378
Income Taxes			7,357				4,213				(4,876	)			8,829				8,144
Net Income		$	23,192			$	15,590			$	717			$	23,208			$	21,234
Preferred Stock Dividends			—				—				—				—				—
Earnings Available to Common Shareholders - Basic			23,192				15,590				717				23,208				21,234
Earnings Allocated to Unvested Restricted Stock			(425	)			(293	)			(20	)			(428	)			(406	)
Earnings Available to Common Shareholders - Diluted		$	22,767			$	15,297			$	697			$	22,780			$	20,828
Earnings Per Share, Basic		$	0.78			$	0.53			$	0.02			$	0.79			$	0.73
Earnings Per Share, Diluted		$	0.78			$	0.53			$	0.02			$	0.79			$	0.73
Book Value Per Common Share		$	51.30			$	50.65			$	51.33			$	51.88			$	51.44
Tangible Book Value Per Common Share		$	37.00			$	36.30			$	36.93			$	37.34			$	37.07
Return on Average Assets			0.71	%			0.49	%			0.02	%			0.73	%			0.69	%
Return on Average Common Equity			6.08	%			4.09	%			0.19	%			6.02	%			5.56	%
Return on Average Tangible Common Equity			8.74	%			5.96	%			0.55	%			8.62	%			7.91	%

 

(1)	Shares used for book value purposes exclude shares held in treasury at the end of the period.

 

13

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Table 4 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands except per share data)

 

		For The Nine Months Ended
		September 30,
INCOME STATEMENT		2013				2012				% Change
Interest Income		$	323,105			$	330,422				(2.2	%)
Interest Expense			36,299				48,662				(25.4	%)
Net Interest Income			286,806				281,760				1.8	%
Provision for Loan Losses			445				15,805				(97.2	%)
Net Interest Income After Provision for Loan Losses			286,361				265,955				7.7	%
Service Charges			21,415				19,557				9.5	%
ATM / Debit Card Fee Income			7,017				6,566				6.9	%
BOLI Proceeds and Cash Surrender Value Income			2,747				2,771				(0.9	%)
Mortgage Income			51,841				55,118				(5.9	%)
Gain on Sale of Investments, net			2,315				3,779				(38.7	%)
Title Revenue			16,199				15,495				4.5	%
Broker Commissions			11,347				9,254				22.6	%
Other Noninterest Income			17,361				13,103				32.5	%
Total Noninterest Income			130,242				125,643				3.7	%
Salaries and Employee Benefits			185,578				172,878				7.3	%
Occupancy and Equipment			44,050				39,496				11.5	%
Amortization of Acquisition Intangibles			3,543				3,865				(8.3	%)
Other Noninterest Expense			137,239				102,505				33.9	%
Total Noninterest Expense			370,410				318,744				16.2	%
Income Before Income Taxes			46,193				72,854				(36.6	%)
Income Taxes			6,694				19,667				(66.0	%)
Net Income		$	39,499			$	53,187				(25.7	%)
Preferred Stock Dividends			—				—				—
Earnings Available to Common Shareholders - Basic			39,499				53,187				(25.7	%)
Earnings Allocated to Unvested Restricted Stock			(744	)			(1,007	)			(26.1	%)
Earnings Available to Common Shareholders - Diluted			38,755				52,180				(25.7	%)
Earnings Per Share, diluted		$	1.33			$	1.81				(26.4	%)

 

14

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Table 5 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

 

		September 30,												June 30,
LOANS		2013				2012				% Change				2013				% Change
Residential Mortgage Loans			563,455				463,402				21.6	%			518,496				8.7	%
Commercial Loans:
Real Estate			3,779,839				3,549,837				6.5	%			3,744,238				1.0	%
Business			2,684,243				2,449,125				9.6	%			2,687,920				(0.1	%)
Total Commercial Loans			6,464,082				5,998,962				7.8	%			6,432,158				0.5	%
Consumer Loans:
Indirect Automobile			369,755				319,389				15.8	%			351,631				5.2	%
Home Equity			1,281,015				1,200,886				6.7	%			1,278,823				0.2	%
Automobile			87,342				55,244				58.1	%			76,427				14.3	%
Credit Card Loans			60,637				49,330				22.9	%			53,026				14.4	%
Other			216,751				142,733				51.9	%			192,476				12.6	%
Total Consumer Loans			2,015,500				1,767,582				14.0	%			1,952,383				3.2	%
Total Loans			9,043,037				8,229,946				9.9	%			8,903,037				1.6	%
Allowance for Loan Losses			(148,545	)			(201,387	)							(162,903	)
Loans, Net		$	8,894,492			$	8,028,558							$	8,740,134
Reserve for Unfunded Commitments (1)			(11,959	)			—				100.0	%			(10,342	)			15.6	%
Allowance for Credit Losses			(160,503	)			(201,387	)			(20.3	%)			(173,246	)			(7.4	%)
		September 30,												June 30,
ASSET QUALITY DATA (2)		2013				2012				% Change				2013				% Change
Nonaccrual Loans		$	341,691			$	567,006				(39.7	%)		$	409,775				(16.6	%)
Foreclosed Assets			1,592				1,648				(3.4	%)			1,647				(3.3	%)
Other Real Estate Owned			127,395				127,525				(0.1	%)			127,960				(0.4	%)
Accruing Loans More Than 90 Days Past Due			10,844				5,538				95.8	%			4,126				162.8	%
Total Nonperforming Assets		$	481,522			$	701,717				(31.4	%)		$	543,508				(11.4	%)
Loans 30-89 Days Past Due		$	26,445			$	59,063				(55.2	%)		$	35,204				(24.9	%)
Nonperforming Assets to Total Assets			3.66	%			5.60	%			(34.6	%)			4.24	%			(13.6	%)
Nonperforming Assets to Total Loans and OREO			5.25	%			8.39	%			(37.5	%)			6.02	%			(12.8	%)
Allowance for Loan Losses to Nonperforming Loans (3)			42.1	%			35.2	%			19.8	%			39.4	%			7.1	%
Allowance for Loan Losses to Nonperforming Assets			30.8	%			28.7	%			7.5	%			30.0	%			2.9	%
Allowance for Loan Losses to Total Loans			1.64	%			2.45	%			(32.9	%)			1.83	%			(10.2	%)
Allowance for Credit Losses to Nonperforming Loans (1) (3)			45.5	%			35.2	%			29.4	%			41.9	%			8.8	%
Allowance for Credit Losses to Nonperforming Assets (1)			33.3	%			28.7	%			16.1	%			31.9	%			4.6	%
Allowance for Credit Losses to Total Loans (1)			1.77	%			2.45	%			(27.5	%)			1.95	%			(8.8	%)
Year to Date Charge-offs		$	6,938			$	7,230				(4.0	%)		$	4,375				N/M
Year to Date Recoveries			(4,353	)			(2,495	)			74.5	%			(2,029	)			N/M
Year to Date Net Charge-offs (Recoveries)		$	2,585			$	4,735				(45.4	%)		$	2,346				N/M
Quarter to Date Net Charge-offs (Recoveries)		$	239			$	1,923				(87.6	%)		$	1,136				(79.0	%)
Quarter to Date Net Charge-offs to Average Loans (Annualized)			0.01	%			0.10	%			(88.9	%)			0.05	%			(79.8	%)

 

(1)	During the second quarter of 2013, the Company segregated its allowance for credit losses into an allowance for loan losses and a reserve for unfunded commitments, which is included in other liabilities on its balance sheet.

(2)	For purposes of this table, nonperforming assets include all loans meeting nonperforming asset criteria, including assets acquired in FDIC-assisted transactions.

(3)	Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due.

N/M - Comparison of the information presented is not meaningful given the periods presented.

 

15

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Table 6 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

 

		September 30,												June 30,
LOANS (Excluding Covered Assets and Acquired Assets) (1)		2013				2012				% Change				2013				% Change
Residential Mortgage Loans			389,912				231,492				68.4	%			325,847				19.7	%
Commercial Loans:
Real Estate			2,951,465				2,401,530				22.9	%			2,829,322				4.3	%
Business			2,589,405				2,267,766				14.2	%			2,558,866				1.2	%
Total Commercial Loans			5,540,870				4,669,296				18.7	%			5,388,187				2.8	%
Consumer Loans:
Indirect Automobile			367,308				313,243				17.3	%			348,479				5.4	%
Home Equity			1,072,671				945,560				13.4	%			1,059,375				1.3	%
Automobile			86,680				54,835				58.1	%			75,576				14.7	%
Credit Card Loans			59,936				48,454				23.7	%			52,243				14.7	%
Other			202,196				122,514				65.0	%			174,826				15.7	%
Total Consumer Loans			1,788,791				1,484,606				20.5	%			1,710,499				4.6	%
Total Loans			7,719,573				6,385,394				20.9	%			7,424,533				4.0	%
Allowance for Loan Losses			(64,165	)			(77,016	)							(61,599	)
Loans, Net		$	7,655,408			$	6,308,378							$	7,362,934
Reserve for Unfunded Commitments (2)			(11,959	)			—				100.0	%			(10,342	)			15.6	%
Allowance for Credit Losses			(76,124	)			(77,016	)			(1.2	%)			(71,942	)			5.8	%
ASSET QUALITY DATA (Excluding Covered Assets and		September 30,												June 30,
Acquired Assets)(1)		2013				2012				% Change				2013				% Change
Nonaccrual Loans		$	43,838			$	45,094				(2.8	%)		$	49,069				(10.7	%)
Foreclosed Assets			42				19				118.6	%			32				27.9	%
Other Real Estate Owned			30,565				18,448				65.7	%			25,860				18.2	%
Accruing Loans More Than 90 Days Past Due			1,418				2,883				(50.8	%)			1,071				32.4	%
Total Nonperforming Assets		$	75,863			$	66,444				14.2	%		$	76,033				(0.2	%)
Loans 30-89 Days Past Due		$	12,406			$	10,510				18.0	%		$	15,175				(18.3	%)
Troubled Debt Restructurings (3)			19,941				21,840				(8.7	%)			10,425				91.3	%
Current Troubled Debt Restructurings (4)			1,468				483				203.6	%			1,813				(19.0	%)
Nonperforming Assets to Total Assets			0.66	%			0.65	%			1.4	%			0.69	%			(4.1	%)
Nonperforming Assets to Total Loans and OREO			0.98	%			1.04	%			(5.7	%)			1.02	%			(4.1	%)
Allowance for Loan Losses to Nonperforming Loans (5)			141.8	%			160.5	%			(11.7	%)			122.9	%			15.4	%
Allowance for Loan Losses to Nonperforming Assets			84.6	%			115.9	%			(27.0	%)			81.0	%			4.4	%
Allowance for Loan Losses to Total Loans			0.83	%			1.21	%			(31.1	%)			0.83	%			0.2	%
Allowance for Credit Losses to Nonperforming Loans (1) (5)			168.2	%			160.5	%			4.8	%			143.5	%			17.2	%
Allowance for Credit Losses to Nonperforming Assets (1)			100.3	%			115.9	%			(13.4	%)			94.6	%			6.1	%
Allowance for Credit Losses to Total Loans (1)			0.99	%			1.21	%			(18.2	%)			0.97	%			1.8	%
Year to Date Charge-offs		$	6,785			$	6,838				(0.8	%)		$	4,227				N/M
Year to Date Recoveries			(4,283	)			(2,474	)			73.1	%			(2,028	)			N/M
Year to Date Net Charge-offs (Recoveries)		$	2,502			$	4,364				(42.7	%)		$	2,199				N/M
Quarter to Date Net Charge-offs (Recoveries)		$	303			$	1,923				(84.2	%)		$	1,028				(70.5	%)
Quarter to Date Net Charge-offs to Average Loans (Annualized)			0.02	%			0.12	%			(87.2	%)			0.06	%			(72.2	%)

 

(1)	For purposes of this table, loans and nonperforming assets exclude all assets acquired.

(2)	During the second quarter of 2013, the Company segregated its allowance for credit losses into an allowance for loan losses and a reserve for unfunded commitments, which is included in other liabilities on its balance sheet.

(3)	Troubled debt restructurings meeting past due and nonaccruing criteria are included in loans past due and nonaccrual loans above.

(4)	Current troubled debt restructurings are defined as troubled debt restructurings not past due or on nonaccrual status for the respective periods.

(5)	Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due.

N/M - Comparison of the information presented is not meaningful given the periods presented.

 

16

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Table 6A - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

(dollars in thousands)

 

		September 30,												June 30,
LOANS (Covered Assets and Acquired Assets Only) (1)		2013				2012				% Change				2013				% Change
Residential Mortgage Loans			173,543				231,910				(25.2	%)			192,649				(9.9	%)
Commercial Loans:
Real Estate			828,743				1,148,307				(27.8	%)			914,916				(9.4	%)
Business			94,469				181,359				(47.9	%)			129,054				(26.8	%)
Total Commercial Loans			923,212				1,329,666				(30.6	%)			1,043,970				(11.6	%)
Consumer Loans:
Indirect Automobile			2,447				6,146				(60.2	%)			3,152				(22.4	%)
Home Equity			208,344				255,326				(18.4	%)			219,448				(5.1	%)
Automobile			662				409				61.8	%			852				(22.2	%)
Credit Card Loans			701				876				(19.9	%)			783				(10.4	%)
Other			14,555				20,219				(28.0	%)			17,650				(17.5	%)
Total Consumer Loans			226,709				282,976				(19.9	%)			241,885				(6.3	%)
Total Loans Receivable			1,323,464				1,844,552				(28.3	%)			1,478,504				(10.5	%)
Allowance for Loan Losses			(84,380	)			(124,371	)							(101,304	)
Loans, Net		$	1,239,084			$	1,720,181							$	1,377,200

 

		September 30,												June 30,
ASSET QUALITY DATA (Covered Assets and Acquired Assets Only) (1)		2013				2012				% Change				2013				% Change
Nonaccrual Loans		$	297,853			$	521,912				(42.9	%)		$	360,706				(17.4	%)
Foreclosed Assets			1,550				1,629				(4.8	%)			1,615				(4.0	%)
Other Real Estate Owned			96,830				109,077				(11.2	%)			102,099				(5.2	%)
Accruing Loans More Than 90 Days Past Due			9,426				2,655				255.0	%			3,055				208.6	%
Total Nonperforming Assets		$	405,659			$	635,273				(36.1	%)		$	467,475				(13.2	%)
Loans 30-89 Days Past Due			14,039				48,553				(71.1	%)			20,028				(29.9	%)
Nonperforming Assets to Total Assets			25.19	%			27.70	%			(9.0	%)			26.85	%			(6.2	%)
Nonperforming Assets to Total Loans and OREO			28.53	%			32.49	%			(12.2	%)			29.55	%			(3.4	%)
Allowance for Loan Losses to Nonperforming Loans (2)			27.5	%			23.7	%			15.8	%			27.8	%			(1.4	%)
Allowance for Loan Losses to Nonperforming Assets			20.8	%			19.6	%			6.2	%			21.7	%			(4.0	%)
Allowance for Loan Losses to Total Loans			6.38	%			6.74	%			(5.4	%)			6.85	%			(6.9	%)
Year to Date Charge-offs		$	153			$	391				(61.0	%)		$	148				N/M
Year to Date Recoveries			(70	)			(20	)			241.2	%			(0	)			N/M
Year to Date Net Charge-offs (Recoveries)		$	83			$	371				(77.6	%)		$	148				N/M
Quarter to Date Net Charge-offs (Recoveries)		$	(64	)		$	0				N/M			$	108				(159.7	%)
Quarter to Date Net Charge-offs to Average Loans (Annualized)			-0.02	%			0.00	%			N/M				0.03	%			(164.5	%)

 

(1)	For purposes of this table, acquired loans and nonperforming assets are presented only. Nonperforming assets

include all loans meeting nonperforming asset criteria.

(2)	Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due.

N/M - Comparison of the information presented is not meaningful given the periods presented

 

17

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Table 7 - Non-Covered and Net Covered Loan Portfolio Volumes And Yields ($ in Millions)

 

		3Q 2012								4Q 2012								1Q 2013								2Q 2013								3Q 2013
		Average Balance				Yield				Average Balance				Yield				Average Balance				Yield				Average Balance				Yield				Average Balance				Yield
Non Covered Loans		$	6,863				4.55	%		$	7,272				4.52	%		$	7,504				4.44	%		$	7,794				4.40	%		$	8,104				4.39	%
FDIC Covered Loans		$	1,154				18.88	%		$	1,112				17.53	%		$	1,039				16.05	%		$	955				12.62	%		$	872				13.90	%
Covered Loans, net of Indemnification Asset Amortization		$	1,603				7.60	%		$	1,523				7.68	%		$	1,424				5.35	%		$	1,223				5.11	%		$	1,100				3.66	%

 

18

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Table 8 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

Taxable Equivalent Basis

(dollars in thousands)

 

		For The Quarter Ended
		September 30, 2013												June 30, 2013								September 30, 2012
		Interest				Average Balance				Average Yield/Rate (%)				Average Balance				Average Yield/Rate (%)				Average Balance				Average Yield/Rate (%)
ASSETS
Earning Assets:
Loans Receivable:
Mortgage Loans			6,884			$	545,017				5.05	%		$	494,531				6.09	%		$	418,925				7.80	%
Commercial Loans (TE) (1)			88,934				6,443,410				5.49	%			6,321,599				5.16	%			5,832,375				6.61	%
Consumer and Other Loans			24,218				1,986,920				4.84	%			1,932,346				5.54	%			1,765,529				6.35	%
Total Loans			120,036				8,975,347				5.32	%			8,748,476				5.30	%			8,016,829				6.61	%
Loss Share Receivable			(22,875	)			228,047				-39.25	%			268,700				-26.69	%			448,746				-29.20	%
Total Loans and Loss Share Receivable			97,161				9,203,394				4.21	%			9,017,176				4.35	%			8,465,575				4.71	%
Mortgage Loans Held for Sale			1,289				119,343				4.32	%			170,620				3.17	%			182,543				3.21	%
Investment Securities (TE) (1)(2)			9,485				2,093,549				1.98	%			2,059,502				1.92	%			1,963,451				2.22	%
Other Earning Assets			577				258,362				0.89	%			338,668				0.87	%			298,681				0.85	%
Total Earning Assets			108,512				11,674,648				3.74	%			11,585,966				3.80	%			10,910,250				4.14	%
Allowance for Loan Losses							(160,994	)							(183,783	)							(180,798	)
Nonearning Assets							1,430,781								1,479,368								1,453,102
Total Assets						$	12,944,435							$	12,881,551							$	12,182,554
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities
Deposits:
NOW Accounts			1,909			$	2,257,050				0.34	%		$	2,488,721				0.32	%		$	2,023,769				0.35	%
Savings and Money Market Accounts			2,603				4,213,764				0.25	%			4,113,671				0.26	%			3,701,947				0.46	%
Certificates of Deposit			4,012				1,918,669				0.83	%			2,025,823				0.87	%			2,206,939				1.00	%
Total Interest-bearing Deposits			8,524				8,389,483				0.40	%			8,628,215				0.42	%			7,932,655				0.58	%
Short-term Borrowings			104				289,659				0.14	%			294,789				0.16	%			367,443				0.21	%
Long-term Debt			2,432				282,314				3.37	%			293,746				3.39	%			438,828				3.10	%
Total Interest-bearing Liabilities			11,060				8,961,456				0.49	%			9,216,750				0.51	%			8,738,926				0.69	%
Noninterest-bearing Demand Deposits							2,338,772								2,010,263								1,773,302
Noninterest-bearing Liabilities							130,052								125,932								150,988
Total Liabilities							11,430,280								11,352,945								10,663,216
Shareholders’ Equity							1,514,155								1,528,606								1,519,338
Total Liabilities and Shareholders’ Equity						$	12,944,435							$	12,881,551							$	12,182,554
Net Interest Spread						$	97,452				3.25	%		$	96,482				3.29	%		$	96,726				3.45	%
Tax-equivalent Benefit							2,321				0.08	%			2,396				0.08	%			2,417				0.09	%
Net Interest Income (TE) / Net Interest Margin (TE) (1)						$	99,773				3.37	%		$	98,878				3.39	%		$	99,143				3.58	%

 

(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.

 

19

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Table 9 - IBERIABANK CORPORATION

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

Taxable Equivalent Basis

(dollars in thousands)

 

		For The Nine Months Ended
		September 30, 2013												September 30, 2012
		Interest				Average Balance				Average Yield/Rate (%)				Interest				Average Balance				Average Yield/Rate (%)
ASSETS
Earning Assets:
Loans Receivable:
Mortgage Loans			21,868			$	504,154				5.78	%			24,903			$	445,085				7.46	%
Commercial Loans (TE) (1)			258,420				6,324,468				5.48	%			279,329				5,569,467				6.69	%
Consumer and Other Loans			78,056				1,928,747				5.41	%			77,973				1,650,302				6.31	%
Total Loans			358,344				8,757,369				5.48	%			382,205				7,664,854				6.65	%
Loss Share Receivable			(68,707	)			293,116				-30.91	%			(89,899	)			510,097				-23.16	%
Total Loans and Loss Share Receivable			289,637				9,050,485				4.30	%			292,306				8,174,951				4.79	%
Mortgage Loans Held for Sale			3,965				155,900				3.39	%			3,747				145,138				3.44	%
Investment Securities (TE) (1)(2)			27,323				2,065,295				1.94	%			32,333				1,981,130				2.38	%
Other Earning Assets			2,180				423,775				0.69	%			2,036				343,771				0.79	%
Total Earning Assets			323,105				11,695,456				3.74	%			330,422				10,644,990				4.20	%
Allowance for Loan Losses							(196,412	)											(179,927	)
Nonearning Assets							1,467,475												1,431,895
Total Assets						$	12,966,519											$	11,896,958
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities
Deposits:
NOW Accounts			5,836			$	2,402,803				0.32	%			5,577			$	1,977,963				0.38	%
Savings and Money Market Accounts			8,864				4,166,013				0.28	%			12,825				3,569,705				0.48	%
Certificates of Deposit			13,038				2,024,369				0.86	%			19,755				2,321,289				1.14	%
Total Interest-bearing Deposits			27,738				8,593,185				0.43	%			38,157				7,868,957				0.65	%
Short-term Borrowings			365				292,453				0.16	%			507				288,545				0.23	%
Long-term Debt			8,196				328,856				3.29	%			9,999				433,510				3.03	%
Total Interest-bearing Liabilities			36,299				9,214,494				0.52	%			48,661				8,591,012				0.75	%
Noninterest-bearing Demand Deposits							2,097,110												1,648,502
Noninterest-bearing Liabilities							130,368												150,658
Total Liabilities							11,441,972												10,390,172
Shareholders’ Equity							1,524,547												1,506,786
Total Liabilities and Shareholders’ Equity						$	12,966,519											$	11,896,958
Net Interest Spread						$	286,806				3.22	%						$	281,760				3.44	%
Tax-equivalent Benefit							7,182				0.08	%							7,210				0.09	%
Net Interest Income (TE) / Net Interest Margin (TE) (1)						$	293,988				3.33	%						$	288,970				3.59	%

 

(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.

 

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Table 10 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(dollars in thousands, except per share data)

 

		For The Quarter Ended
		September 30, 2013				June 30, 2013				September 30, 2012
Net Interest Income (GAAP)		$	97,452			$	96,482			$	96,726
Effect of Tax Benefit on Interest Income			2,321				2,396				2,417
Net Interest Income (TE) (Non-GAAP) (1)			99,773				98,878				99,143
Noninterest Income (GAAP)			43,263				42,489				46,553
Effect of Tax Benefit on Noninterest Income			489				485				493
Noninterest Income (TE) (Non-GAAP) (1)			43,752				42,974				47,046
Taxable Equivalent Revenues (Non-GAAP) (1)			143,525				141,852				146,189
Securities Losses (Gains)			(13	)			57				(41	)
Impact of New Accounting Standard			5,496				4,967				—
Other noninterest income			—				—				—
Taxable Equivalent Operating Revenues (Non-GAAP) (1)		$	149,008			$	146,876			$	146,148
Total Noninterest Expense (GAAP)		$	108,152			$	117,361			$	109,848
Less Intangible Amortization Expense			(1,179	)			(1,181	)			(1,287	)
Tangible Noninterest Expense (Non-GAAP) (2)			106,973				116,180				108,561
Merger-related expenses			85				—				2,985
Severance expenses			554				1,670				712
Occupancy expenses and branch closure expenses			594				306				284
Impairment of long-lived assets			977				4,618				—
Provision for FDIC clawback liability			667				130				—
Debt prepayment			—				—				—
Termination of debit card rewards program			—				450				—
Professional expenses and litigation settlements			(630	)			150				574
Tangible Operating Noninterest Expense (Non-GAAP) (2)		$	104,725			$	108,856			$	104,006
Return on Average Common Equity (GAAP)			6.08	%			4.09	%			5.56	%
Effect of Intangibles (2)			2.66	%			1.87	%			2.35	%
Effect of Non Operating Revenues and Expenses			1.82	%			2.91	%			1.04	%
Operating Return on Average Tangible Common Equity (Non-GAAP) (2)			10.56	%			8.88	%			8.95	%
Efficiency Ratio (GAAP)			76.9	%			84.5	%			76.7	%
Effect of Tax Benefit Related to Tax Exempt Income			(1.5	%)			(1.8	%)			(1.6	%)
Efficiency Ratio (TE) (Non-GAAP) (1)			75.4	%			82.7	%			75.1	%
Effect of Amortization of Intangibles			(0.9	%)			(0.8	%)			(0.8	%)
Effect of Non-Operating Items and New Accounting Standard			(4.2	%)			(7.8	%)			(3.1	%)
Tangible Operating Efficiency Ratio (TE)(Non-GAAP) (1) (2)			70.3	%			74.1	%			71.2	%

 

(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.

 

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Table 11 - IBERIABANK CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ⁽¹⁾

(dollars in thousands)

 

		For The Quarter Ended
		September 30, 2013												June 30, 2013												September 30, 2012
		Dollar Amount												Dollar Amount												Dollar Amount
		Pre-tax				After-tax (2)				Per share				Pre-tax				After-tax (2)				Per share				Pre-tax				After-tax (2)				Per share
Net Income (Loss) (GAAP)		$	30,549			$	23,192			$	0.78			$	19,803			$	15,590			$	0.53			$	29,378			$	21,234			$	0.73
Noninterest income adjustments
Loss (Gain) on sale of investments			(13	)			(8	)			(0.00	)			57				37				0.00				(41	)			(27	)			(0.00	)
Other noninterest income			—				—				—				—				—				—				—				—				—
Noninterest expense adjustments
Merger-related expenses			85				55				0.00				—				—				—				2,985				1,940				0.07
Severance expenses			554				360				0.01				1,670				1,086				0.04				712				463				0.02
Impairment of long-lived assets			977				635				0.02				4,618				3,002				0.10				—				—				—
Provision for FDIC clawback liability			667				434				0.01				130				84				0.00				—				—				—
Occupancy expenses and branch closure expenses			594				386				0.01				306				199				0.01				284				185				0.01
Termination of debit card rewards program			—				—				—				450				293				0.01				—				—				—
Professional expenses and litigation settlements			(630	)			(410	)			(0.01	)			150				97				0.00				574				373				0.01
Operating earnings (Non-GAAP) (3)			32,783				24,644				0.83				27,185				20,388				0.69				33,892				24,168				0.83
Covered and acquired (reversal of) provision for loan losses			(854	)			(555	)			(0.02	)			(3,141	)			(2,042	)			(0.07	)			3,827				2,488				0.09
Other (reversal of) provision for loan losses			2,868				1,864				0.07				4,949				3,217				0.11				226				147				0.01
Pre-provision operating earnings (Non-GAAP) (3)		$	34,797			$	25,953			$	0.89			$	28,992			$	21,563			$	0.73			$	37,945			$	26,803			$	0.92
Net Income (Loss) (GAAP)		$	30,549			$	23,192			$	0.78			$	19,803			$	15,590			$	0.53			$	29,378			$	21,234			$	0.73
Impact of adoption of new accounting standard (4)			5,496				3,572				0.12				4,967				3,228				0.11				—				—				—
Earnings less impact of new accounting standard (Non-GAAP)		$	36,045			$	26,764			$	0.90			$	24,770			$	18,818			$	0.64			$	29,378			$	21,234			$	0.73
Operating earnings including the impact of the adoption of new accounting standard (Non-GAAP)		$	32,783			$	24,644			$	0.83			$	27,185			$	20,388			$	0.69			$	33,892			$	24,168			$	0.83
Impact of adoption of new accounting standard (4)			5,496				3,572				0.12				4,967				3,228				0.11				—				—				—
Operating earnings less impact of new accounting standard (Non-GAAP)		$	38,279			$	28,216			$	0.95			$	32,152			$	23,617			$	0.80			$	33,892			$	24,168			$	0.83

 

(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 September 30, 2013 and June 30, 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 September 30, 2013, and June 30, 2013. The amounts included above represent 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:

 

Quarter Ended		Pre-tax Amount				After-tax Amount (2)				Per Share (5)
12/31/2013		$	5,742			$	3,732			$	0.13
3/31/2014			5,603				3,642				0.12
6/30/2014			5,246				3,410				0.11
9/30/2014			5,002				3,251				0.11

 

(5)	Per share amounts have been calculated using a sharecount that is consistent with the fully diluted sharecount for the quarter ended September 30, 2013.

 

22