Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - IBERIABANK CORP | d861062d8k.htm |
| EX-99.1 - EXHIBIT 99.1 - IBERIABANK CORP | d861062dex991.htm |
 MAKING
THE MOST OF IT 4Q14 Earnings Conference Call
Supplemental Presentation*
January 28, 2015
Exhibit 99.2
*A complete copy of this supplemental presentation was previously
furnished to the SEC on Exhibit 99.2 to a separate Current Report on
Form 8-K dated January 28, 2015. |
 Safe
Harbor And Legend 2
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.
The
Company’s
actual
strategies,
results
and
financial
condition
in
future
periods
may
differ
materially
from
those
currently
expected
due
to
various
risks
and
uncertainties. Forward-looking statements are subject to numerous assumptions,
risks and uncertainties that change over time and could cause actual results
or financial condition to differ materially from those expressed in or
implied by such statements. Consequently, no forward-looking statement can be guaranteed.
In connection with the proposed mergers, IBERIABANK Corporation has filed or will
file Registration Statements on Form S-4 that will contain proxy
statement / prospectuses. INVESTORS AND SECURITY HOLDERS ARE URGED TO
CAREFULLY READ THE PROXY STATEMENT / PROSPECTUSES REGARDING THE PROPOSED
TRANSACTIONS WHEN THEY BECOME AVAILABLE, BECAUSE SUCH DOCUMENTS WILL CONTAIN
IMPORTANT INFORMATION. Investors and security holders may obtain a free copy of the proxy
statement / prospectuses (when they are available) and other documents containing
information about the pending transactions with Florida Bank Group, Inc.,
Old Florida Bancshares, Inc. and Georgia Commerce Bancshares, Inc., without
charge, at the SEC’s website at http://www.sec.gov. Copies of the proxy statement /
prospectuses and the SEC filings that will be incorporated by reference in the
proxy statement / prospectuses may also be obtained for free from the
IBERIABANK Corporation website, www.iberiabank.com, under the heading
“Investor Information”. This communication is not a solicitation of
any vote or approval, is not an offer to purchase shares of common stock of
Old Florida Bancshares, Inc. or Georgia Commerce Bancshares, Inc., nor is it an offer to sell shares of
IBERIABANK Corporation common stock which may be issued in the proposed
mergers. The issuance of IBERIABANK
Corporation
common
stock
in
any
proposed
merger
would
have
to
be
registered
under
the
Securities Act of 1933, as amended, and such IBERIABANK Corporation common stock
would be offered only by means of a prospectus complying with the Act.
|
 3
•
Reported EPS of $1.07 (up $0.15 from 3Q14) and non-GAAP operating EPS of $1.05
(up $0.01 from 3Q14)
•
Tax
equivalent
net
interest
income
increased
$2.8
million,
or
2%
from
3Q14,
while
average
earning assets increased $154 million, or 1%
•
Announced three acquisitions; Florida Bank Group, Inc., Old Florida Bancshares,
Inc., and Georgia Commerce Bancshares, Inc.
•
Legacy loan growth:
•
Legacy deposit growth:
•
Net interest margin increased four bps to 3.53%, which exceeded previously
disclosed guidance range of 3.45% to 3.50%
•
Tangible operating efficiency ratio increased to 65.9% in 4Q14 from 65.7% in
3Q14 •
Tax-equivalent operating revenues up $3 million or +2% (+7% annualized)
•
$2.9 million income tax benefit resulting in a $0.09 per share increase in
non-operating EPS Overview
$489 million since September 30, 2014 (+21% annualized), including $324
million of Commercial and $165 million of Small Business and Consumer
Growth in the loan portfolio was 34% Retail and Small Business and 66%
Commercial
$143 million since September 30, 2014 (+5% annualized)
$38 million increase in non-interest bearing deposits (+5% annualized)
Introductory Comments – Fourth Quarter 2014 |
 4
•
Successfully completed and converted three acquisitions. Synergies better
than expected and deposit attrition less than expected.
•
Loan growth in 18 of 21 markets and deposit growth in 17 of 21 markets.
•
Average
asset
growth
of
$1.6
billion
in
2014,
up
13%
compared
to
2013.
•
Between year-end 2013 and 2014, improvement in nearly all asset quality
metrics. Strategic goal is top quartile performance throughout the
planning period. •
Net interest margin improved 13 basis points in 2014 to 3.51%, which exceeded
previously disclosed guidance range of 3.45% to 3.50%.
•
Tax equivalent operating revenues increased $74 million, or 13% compared to
2013. •
Operating expenses increased $17 million, or 4%, compared to 2013, resulting in
positive operating leverage of 4.5 times.
•
Tangible operating efficiency ratio improved 600 basis points, from 74.6% in 2013
to 68.5% in 2014. The ratio improved further to 65.9% in 4Q14.
Strategic goal is below 60% by 4Q16. •
Operating return on average tangible common equity of 9.94% in 2014, compared to
8.48% in 2013, and 11.17% in 4Q14 (11.46% on a reported basis.)
Strategic goal is 13.00% to 17.00% by 4Q16.
•
Reported EPS of $3.30 (up 50% from 2013) and non-GAAP operating EPS of $3.73
(up 20% from 2013). Strategic goal is double-digit percentage
growth year-over-year in operating EPS throughout the planning
period. Overview
Introductory Comments – Year of 2014
|
 5
Overview
Non-Performing Assets Trends
$ in millions
NPA determination based on regulatory guidance for Acquired portfolios
4Q14 includes $12 million of Bank-related properties reclassified to OREO
No energy loans classified as
non-performing assets at
December 31, 2014 |
 6
Overview
Allowance Coverage To NPAs –
Legacy IBKC
•
4Q14 Allowance for
loan losses of $76.2
million
•
4Q14 Reserve for
unfunded lending
commitments of $11.8
million
•
Legacy NPAs of $57.0
million; including
approximately $12
million of OREO bank-
related properties
•
Excluding former bank-
related properties,
ACL/NPAs equals
193.7%
Excludes all covered and acquired assets |
 7
Financial Results
Non-Interest Income –
4Q14 Components
•
Operating non-
interest income
increased $0.2
million, or less than
1%, on a linked
quarter basis
•
Non-operating
income of $0.4
million includes:
•
$0.2 million in
gains on sales of
investments
•
$0.2 million of
other non-
operating income |
 8
•
Mortgage 4Q14 Non-Interest Income of $13.6
million is $0.6 million lower than 3Q14 driven by
•
$0.6 million lower market value adjustment
gains (-$1.1million recognized in 4Q14 versus
-$0.5 million in 3Q14)
•
$0.7 million higher hedging costs ($3.2 million
in 4Q14 versus $2.5 million in 3Q14)
•
$0.7 million higher gains on lower sales
volume (-5%) and higher sales margins (+4%)
•
Loan originations were up $3 million in 4Q14 to
$459 million from $456 million in 3Q14 (+1%)
•
The pipeline plus loans held for sale at December
31
st
was 13% lower than at September 30, 2014
Financial Results
Mortgage Income |
 9
•
Operating non-
interest expense
increased $2.2
million, or 2%, on
a linked-quarter
basis
•
Non-operating
expense of $3.2
million includes:
•
$1.1 million in
impairment of
long-lived
assets
•
$2.1 million of
merger-related
expenses
Financial Results
Non-Interest Expense –
4Q14 Components |
 10
Seasonal Influences |
 11
Seasonal Influences
Quarterly Organic Loan Growth
•
First quarter of each year tends to exhibit
slower loan growth than other quarters due
to seasonal factors
•
4Q14 organic loan growth of $489 million,
+21% annualized growth
•
4Q14 quarterly organic loan growth was the
second strongest in company history |
 12
Seasonal Influences
Capital Markets and Wealth Management
•
ICP revenues -36%
compared to 3Q14
•
IWA revenues +8%
compared to 3Q14
•
IFS revenues -13%
compared to 3Q14
•
$1.0 million decline in
revenues at ICP due to
lower investment
banking and capital
market activities
income as a result of
rapid decline in energy
prices during 4Q14
•
IWA assets under
management
increased $137 million
(+11%) to $1.4 billion
on December 31, 2014 |
 13
Seasonal Influences
Payroll Taxes and Retirement Contributions
Influenced by impact of Teche acquisition
completed in May 2014 and First Private
acquisition completed in June 2014 |
 Seasonal Influences
Checking NSF Related Charges
Influenced by impact of
Teche acquisition completed
in May 2014
14 |
 Appendix
15 |
 16
Appendix
Performance Metrics –
Quarterly Trends
•
Average earning
assets up $0.2
billion (+1%)
•
T/E net interest
income up $3
million (+2%)
•
Provision for loan
losses of $6 million:
•
Legacy net charge-
offs: $1.5 million
(0.06% annualized
rate)
•
Covered and
acquired net
charge-offs: $0.2
million (0.05%
annualized rate)
•
Legacy provision
for loan losses:
$4.0 million
12/31/2013
3/31/2014
6/30/2014
9/30/2014
12/31/2014
Net Income ($ in thousands)
25,604
$
22,395
$
16,227
$
30,892
$
35,936
$
16%
Per Share Data:
Fully Diluted Earnings
0.86
$
0.75
$
0.53
$
0.92
$
1.07
$
16%
Operating Earnings (Non-GAAP)
0.87
0.73
0.89
1.04
1.05
1%
Pre-provision Operating Earnings (Non-GAAP)
0.97
0.78
0.99
1.15
1.17
2%
Tangible Book Value
37.17
37.59
37.30
37.83
39.11
3%
Key Ratios:
Return on Average Assets
0.77%
0.68%
0.46%
0.79%
0.91%
12
bps
Return on Average Common Equity
6.62%
5.83%
3.99%
6.78%
7.78%
100
bps
Return on Average Tangible Common Equity (Non-GAAP)
9.43%
8.36%
5.88%
10.10%
11.46%
136
bps
Net Interest Margin (TE)
(1)
3.52%
3.54%
3.49%
3.49%
3.53%
4
bps
Tangible Operating Efficiency Ratio (TE)
(1)
(Non-GAAP)
69.9%
73.6%
69.9%
65.7%
65.9%
15
bps
Tangible Common Equity Ratio (Non-GAAP)
8.55%
8.61%
8.44%
8.45%
8.60%
15
bps
Tier 1 Leverage Ratio
9.70%
9.61%
10.00%
9.21%
9.36%
15
bps
Tier 1 Common Ratio (Non-GAAP)
10.55%
10.44%
10.30%
10.32%
10.32%
(0)
bps
Total Risk Based Capital Ratio
12.82%
12.69%
12.41%
12.40%
12.30%
(10)
bps
Net Charge-Offs to Average Loans
(2)
0.07%
0.05%
0.04%
0.09%
0.06%
(3)
bps
Non-performing Assets to Total Assets
(2)
0.61%
0.49%
0.53%
0.46%
0.41%
(5)
bps
(1)
Fully taxable equivalent basis.
(2)
Excluding FDIC Covered Assets and Acquired Assets.
Linked Quarter
%/Basis Point
Change
For Quarter Ended: |
 17
Appendix
Performance Metrics –
Yields and Costs
9/30/2014
12/31/2014
Investment Securities
2.20%
2.24%
4
bps
Covered Loans, net of loss share receivable
3.07%
3.57%
50
bps
Legacy Loans, net
3.97%
3.94%
(3)
bps
Non-Covered Acquired Loans, net
6.63%
6.94%
31
bps
Loans & Loss Share Receivable
4.31%
4.32%
1
bps
Mortgage Loans Held For Sale
3.90%
3.95%
5
bps
Other Earning Assets
0.60%
0.80%
20
bps
Total Earning Assets
3.83%
3.88%
5
bps
Interest-bearing Deposits
0.39%
0.41%
2
bps
Short-Term Borrowings
0.17%
0.19%
2
bps
Long-Term Borrowings
2.75%
2.73%
(2)
bps
Total Interest-bearing Liabilities
0.46%
0.48%
2
bps
Net Interest Spread
3.38%
3.41%
3
bps
Net Interest Margin
3.49%
3.53%
4
bps
(1)
Earning asset yields are shown on a fully taxable-equivalent basis.
For Quarter Ended:
Linked Quarter
Basis Point
Change |
 18
Appendix
Non-GAAP Cash Margin
•
Adjustments represent accounting
impacts of purchase discounts on
acquired loans and related accretion
as well as the I/A and related
amortization on the covered portfolio
Balances, as
Reported
Adjustments
As Adjusted
4Q13
Average Balance
11,853,896
3,929
11,857,825
Income
103,438
(2,072)
101,366
Rate
3.52%
-0.03%
3.49%
1Q14
Average Balance
12,088,186
16,847
12,105,029
Income
104,408
(2,517)
101,890
Rate
3.54%
-0.09%
3.45%
2Q14
Average Balance
12,687,971
30,318
12,718,289
Income
109,273
392
109,665
Rate
3.49%
0.01%
3.50%
3Q14
Average Balance
13,990,358
44,149
14,034,507
Income
121,751
(4,170)
117,581
Rate
3.49%
-0.13%
3.36%
4Q14
Average Balance
14,144,762
54,669
14,199,431
Income
124,680
(6,076)
118,603
Rate
3.53%
-0.18%
3.35% |
 19
Appendix
Non-Interest Income Trends
•
Mortgage income decreased $0.6 million, or -4%
•
Capital markets revenue decreased $1.0 million, or -36%
•
Credit Card fee income increased $0.8 million, or +30%
•
Corporate owned life insurance income increased $1.0 million
due to valuation adjustments on investments (mostly offset by
an increase to non-interest expense)
4Q14 originations up 1% from 3Q14
Refinancings were 36% of production, up
from 25% in 3Q14
Sales decreased 5% in 4Q14
Margins 5% higher in 4Q14
Pipeline of $137 million at quarter-end,
down 19% as compared to September 30,
2014. At January 23, 2015, the locked
pipeline was $200 million or +46% over
December 31, 2014
3Q14 and 4Q14 includes full quarter of Teche and First Private results
Non-interest Income ($000s)
4Q13
1Q14
2Q14
3Q14
4Q14
$ Change
% Change
Service Charges on Deposit Accounts
7,455
$
7,012
$
8,203
$
10,205
$
10,153
$
(52)
$
-1%
ATM / Debit Card Fee Income
2,493
2,467
2,937
3,287
3,331
44
1%
BOLI Proceeds and CSV Income
900
934
934
1,047
1,050
3
0%
Mortgage Income
12,356
10,133
13,755
14,263
13,646
(617)
-4%
Title Revenue
4,327
4,167
5,262
5,577
5,486
(91)
-2%
Broker Commissions
4,986
4,048
5,479
5,297
3,960
(1,337)
-25%
Other Noninterest Income
6,179
5,129
7,182
6,854
9,071
2,217
32%
Noninterest income excluding non-operating income
38,696
33,890
43,752
46,530
46,697
167
0%
Gain (Loss) on Sale of Investments, Net
19
19
8
582
164
(418)
-72%
Other Non-operating income
-
1,772
1
-
211
211
100%
Total Non-interest Income
38,715
$
35,681
$
43,761
$
47,112
$
47,072
$
(40)
$
0%
4Q14 vs. 3Q14 |
 20
Appendix
Non-Interest Expense Trends
•
Non-interest expenses excluding non-operating items up
$2.4 million, or 2%, as compared to 3Q14
•
Total expenses down $0.8 million, or -1%, in 4Q14
•
Severance expense down $1.1 million, mostly related to
Teche acquisition
•
Impairment of long-lived assets down $3.1 million
•
Merger-related expense increased $0.2 million
•
Tangible Operating Efficiency Ratio of 65.9%, up from
65.7% in 3Q14
3Q14 and 4Q14 includes full quarter of Teche and First Private results
Non-interest Expense ($000s)
4Q13
1Q14
2Q14
3Q14
4Q14
$ Change
% Change
Mortgage Commissions
3,169
$
2,215
$
3,481
$
3,912
$
4,045
$
133
$
3%
Hospitalization Expense
3,899
3,944
3,661
4,611
4,606
(5)
0%
Other Salaries and Benefits
52,108
53,582
55,921
54,898
56,784
1,886
3%
Salaries and Employee Benefits
59,176
$
59,741
$
63,063
$
63,421
$
65,435
$
2,013
$
3%
Credit/Loan Related
2,776
3,560
3,093
4,569
2,483
(2,086)
-46%
Occupancy and Equipment
13,971
13,775
13,918
14,580
14,526
(54)
0%
Amortization of Acquisition Intangibles
1,177
1,218
1,347
1,623
1,618
(5)
0%
All Other Non-interest Expense
25,328
27,328
28,744
29,771
32,146
2,375
8%
Nonint. Exp. (Ex-Non-Operating Exp.)
102,428
$
105,622
$
110,165
$
113,965
$
116,208
$
2,243
$
2%
Severance
216
119
5,466
1,226
139
(1,087)
-89%
Occupancy and Branch Closure Costs
-
17
14
-
-
-
100%
Storm-related expenses
-
184
4
1
2
1
143%
Impairment of Long-lived Assets, net of gains on sales
(225)
541
1,241
4,213
1,078
(3,135)
-74%
Provision for FDIC clawback liability
-
-
-
(797)
-
797
-100%
Debt Prepayment
-
-
-
-
-
-
100%
Termination of Debit Card Rewards Program
(311)
(22)
-
-
-
-
100%
Consulting and Professional
-
-
-
-
-
-
100%
Merger-Related Expenses
566
967
10,419
1,752
1,955
203
12%
Total Non-interest Expense
102,674
$
107,428
$
127,309
$
120,360
$
119,382
$
(978)
$
-1%
Tangible Efficiency Ratio - excl Nonop-Exp
69.9%
73.6%
69.9%
65.7%
65.9%
4Q14 vs. 3Q14
Linked quarter increases/decreases of:
Equity compensation expense
$1.2 mil
Corporate-owned life insurance expense
Marketing and business development
0.5
Legal and professional fees
0.6
Credit/Loan related expense
(2.1)
Decreased payroll tax expense
(0.5)
0.7 |
 21
Appendix
Non-Operating Items (Non-GAAP)
Non-operating adjustments equal to $3.2 million pre-tax or $0.02 EPS after-tax:
•
4Q14 Merger related expense of $2.0 million pre-tax or $0.04 EPS after-tax
•
4Q14 Severance expense of $0.1 million pre-tax or less than $0.01 EPS after-tax
•
Net impairment expense of $1.1 million pre-tax or $0.02 EPS after-tax
•
Income tax benefits of ($3.0) million or ($0.09) after tax
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)
34,779
$
25,604
$
0.86
$
42,789
$
30,892
$
0.92
$
45,875
$
35,936
$
1.07
$
Non-interest income adjustments
Gain on sale of investments and other non-interest income
(19)
(12)
(0.00)
(582)
(378)
(0.01)
(374)
(243)
(0.01)
Non-interest expense adjustments
Merger-related expenses
566
368
0.01
1,752
1,139
0.04
1,955
1,496
0.04
Severance expenses
216
141
0.00
1,226
797
0.02
139
91
0.00
(Gain) Loss on sale of long-lived assets, net of impairment
(225)
(146)
(0.00)
4,213
2,738
0.08
1,078
701
0.02
(Reversal of) Provision for FDIC clawback liability
-
-
-
(797)
(518)
(0.02)
-
-
-
Other non-operating non-interest expense
(311)
(202)
(0.01)
1
1
(0.00)
2
1
(0.00)
Total non-interest expense adjustments
246
161
0.01
6,394
4,156
0.12
3,174
2,289
0.07
Income tax benefits
-
-
-
-
-
-
-
(2,959)
(0.09)
Operating earnings (Non-GAAP)
(3)
35,006
25,752
0.87
48,602
34,671
1.04
48,675
35,023
1.05
Covered and acquired impaired (reversal of) provision for loan losses
79
51
0.00
1,692
1,100
0.03
2,474
1,608
0.05
Other (reversal of) provision for loan losses
4,621
3,004
0.10
4,022
2,614
0.08
4,021
2,614
0.08
Pre-provision
operating
earnings
(Non-GAAP)
(3)
39,706
$
28,808
$
0.97
$
54,316
$
38,385
$
1.15
$
55,170
$
39,245
$
1.17
$
(1) Per share amounts may not appear to foot due to rounding.
(2) After-tax amounts estimated based on a 35% marginal tax rate.
RECONCILIATION
OF
NON-GAAP
FINANCIAL
MEASURES
(1)
(dollars in thousands)
For The Quarter Ended
December 31, 2013
September 30, 2014
December 31, 2014
Dollar Amount
Dollar Amount
Dollar Amount |
 22
Appendix
Prior Period Adjustments
•
Purchase accounting adjustments represent adjustments to the fair values of
loans, mortgage servicing rights, and core deposit intangibles as recorded on the
acquisition date for the Teche transaction.
•
Correction adjustments represent recognition of timing adjustments of
mortgage- related income amounts recorded in the second and third
quarters. $ in thousands, except per share data
As Reported
Updated
As Reported
Updated
Net Interest Income
108,979
$
294
$
0
$
109,273
$
121,041
$
710
$
(0)
$
121,751
$
Non-Interest Income
47,963
(13)
(4,189)
43,761
45,663
(38)
1,487
47,112
Non-Interest Expense
127,375
104
(170)
127,309
120,060
130
170
120,360
EPS,
Diluted
-
GAAP
0.60
$
0.00
$
(0.08)
$
0.53
$
0.89
$
0.01
$
0.02
$
0.92
$
EPS,
Diluted
-
Operating
(Non-GAAP)
0.96
0.00
(0.07)
0.89
1.00
0.01
0.03
1.04
Book Value per Share
53.86
$
-
$
(0.09)
$
53.77
$
54.35
$
0.02
$
(0.05)
$
54.32
$
Tangible Book Value per Share
37.41
(0.04)
(0.07)
37.30
37.91
(0.03)
(0.05)
37.83
Return on Average Assets
0.53%
-
bps
(7)
bps
0.46%
0.76%
1
bps
2
bps
0.79%
Return on Average Common Equity
4.56%
3
bps
(60)
bps
3.99%
6.52%
8
bps
18
bps
6.78%
Return on Average Tangible Common Equity
6.62%
10
bps
(84)
bps
5.88%
9.68%
15
bps
27
bps
10.10%
Net Interest Margin (TE)
3.48%
1
bps
-
bps
3.49%
3.47%
2
bps
-
bps
3.49%
2Q 2014
3Q 2014
Correction
Correction
Purchase
Accounting
Adjustment
Purchase
Accounting
Adjustment |
 |