IBERIABANK CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1

Attached files

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8-K - 8-K - IBERIABANK CORP	earningsreleaseq42018cover.htm
EX-99.2 - EXHIBIT 99.2 - IBERIABANK CORP	ibkc4q18supplementalpres.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE

January 25, 2019

Contact:

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

Jefferson G. Parker, Vice Chairman, Director of Capital Markets and Investor Relations (504) 310-7314

IBERIABANK Corporation Reports Fourth Quarter Results; Achieves 2020 Financial Metrics For Full Year 2018

LAFAYETTE, LOUISIANA -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 131-year-old IBERIABANK (www.iberiabank.com), reported financial results for the fourth quarter ended December 31, 2018. For the quarter, the Company reported net income available to common shareholders of $129.1 million, or $2.32 diluted earnings per common share (“EPS”). On a non-GAAP basis, EPS excluding non-core revenues and non-core expenses ("Core EPS") in the fourth quarter of 2018 was $1.86 per common share, compared to $1.33 in the year-ago period, an increase of 40% (refer to press release supplemental tables for a reconciliation of GAAP to non-GAAP metrics).

Daryl G. Byrd, President and Chief Executive Officer, commented, “Our focus on delivering sustainable, profitable growth culminated in another stellar quarter, allowing us to achieve our 2020 financial metrics for the third consecutive quarter, as well as the full year 2018. Our strong balance sheet and outstanding performance for the year was achieved while improving our already excellent credit quality metrics and operating efficiency. Continued financial progress, combined with a high quality and diverse franchise throughout the Southeast, position us to increase value for our clients and shareholders in 2019 and beyond."

Highlights for the fourth quarter of 2018 and at December 31, 2018:



	For the three months ended												For the years ended December 31,
	GAAP						Non-GAAP Core						GAAP						Non-GAAP Core
	4Q18			3Q18			4Q18			3Q18			2018			2017			2018			2017
Earnings Per Common Share	$	2.32		$	1.73		$	1.86		$	1.74		$	6.46		$	2.59		$	6.69		$	4.47
Return on Average Assets	1.70		%	1.34		%	1.37		%	1.35		%	1.25		%	0.58		%	1.30		%	0.98		%
Return on Average Common Equity	13.38		%	10.21		%	10.75		%	10.27		%	9.63		%	3.95		%	9.97		%	6.82		%
Return on Average Tangible Common Equity	N/A			N/A			16.98		%	16.34		%	N/A			N/A			16.01		%	9.86		%
Efficiency Ratio	63.5		%	54.1		%	52.6		%	53.9		%	62.0		%	65.9		%	55.9		%	59.6		%
Tangible Efficiency Ratio (TE)	N/A			N/A			50.7		%	51.9		%	N/A			N/A			53.7		%	57.6		%


•	Strong improvement in both GAAP and Core EPS resulting from increases in both loans and deposits, margin expansion and focused expense management resulted in the Company achieving its 2020 financial metrics in both 4Q18 and for the full-year 2018.


•	Revenue growth and continued expense reduction produced positive operating leverage in the quarter and resulted in a Core Tangible Efficiency Ratio of 50.7%.


•	Credit metrics are strong and continue to improve. Criticized, classified, and non-performing assets were down 28%, 30%, and 5%, respectively, from the same time a year ago. The allowance for loan and lease losses (ALLL) to total loans and leases remained flat and covered 101% of non-performing loans.


•	The Company's reported and cash net interest margins improved 7 and 5 basis points on a linked quarter basis, to 3.81% and 3.52%, respectively.


•	Non-interest expense was relatively unchanged from the prior quarter. Core non-interest expense declined $2.0 million, or 5% on an annualized basis, from the prior quarter.


•	Total loan growth of $175.9 million, or 3% annualized. Loan growth continues to be impacted by accelerated payoffs.


•	Total deposits increased $570.0 million, or 10% annualized. As of December 31, 2018, total non-interest bearing deposits represented 28% of total deposits.


•	On November 5, 2018, the Company announced a new repurchase plan, its 11^th plan, of up to 2,765,000 shares of the Company's outstanding common stock. The newly authorized plan equates to approximately 5% of the total common shares outstanding.


•	During 4Q18, the Company repurchased 1.21 million common shares, or 2.1% of the shares outstanding, at a weighted average price of $72.61 per common share. Of the shares repurchased, 709,290 shares were purchased under the 10th plan and 500,000 under the 11th plan.


•	On October 19, 2018, the Company announced a fourth quarter cash dividend equal to $0.41 per common share, payable on January 25, 2019. This equated to a 5% increase to the third quarter dividend, and was the third common dividend increase of 2018.

4Q18 Special Items


•	In connection with filing its 2017 income tax returns, the Company recorded a non-core, permanent net income tax benefit of approximately $65.3 million in the fourth quarter of 2018. This benefit was a result of deductions claimed on the 2017 income tax returns associated with unrealized losses on securities and loans and depreciation on real and personal property.


•	During 4Q18, the Company restructured portions of its investment portfolio selling approximately $1 billion of securities at a pre-tax loss of approximately $49.8 million ($37.9 million after-tax) and subsequently purchased $1 billion in securities during the quarter. The incremental yield on the purchased securities was 164 basis points.

2019 Financial Guidance



2019 Guidance
Average Earning Assets	$28.6B ~ $28.9B
Consolidated Loan Growth	5% ~ 7%
Consolidated Deposit Growth	5% ~ 7%
Provision Expense	$42MM ~ $50MM
Non-Interest Income (Core Basis)	$215MM ~ $225MM
Non-Interest Expense (Core Basis)	$685MM ~ $700MM
Net Interest Margin	3.60% ~ 3.70%
Tax Rate	23.0% ~ 24.0%
Preferred Dividend & Unrestricted Shares	$12.5MM ~ $13.5MM
Share Repurchase Activity	$135MM ~ $150MM
Credit Quality	Stable


•	Guidance includes one mid-year interest rate hike in 2019


•	Increased range of provision to $42-$50 million


•	Annual effective tax rate range increased to 23.0% to 24.0%


•	Includes the impact of the recent restructuring of the investment portfolio


•	Anticipate historical seasonal softness influencing 1Q19 results



Table A - Summary Financial Results
(Dollars in thousands, except per share data)

	For the Three Months Ended
	12/31/2018			9/30/2018			% Change		12/31/2017			% Change
GAAP BASIS:
Income available to common shareholders	$	129,090		$	97,866		31.9		$	9,329		1,283.7
Earnings per common share - diluted	2.32			1.73			34.1		0.17			1,264.7

Average loans and leases, net of unearned income	$	22,364,188		$	22,162,373		0.9		$	19,941,500		12.1
Average total deposits	23,484,576			23,241,529			1.0		21,378,122			9.9
Net interest margin (TE) ⁽¹⁾	3.81		%	3.74		%			3.69		%

Total revenues ⁽²⁾	$	265,990		$	312,312		(14.8	)	$	287,844		(7.6	)
Total non-interest expense ⁽²⁾	168,989			169,062			—		183,633			(8.0	)
Efficiency ratio ⁽²⁾	63.5		%	54.1		%			63.8		%
Return on average assets	1.70			1.34					0.15
Return on average common equity	13.38			10.21					1.02

NON-GAAP BASIS ⁽³⁾:
Core revenues ⁽²⁾	$	316,249		$	312,311		1.3		$	287,809		9.9
Core non-interest expense ⁽²⁾	166,379			168,362			(1.2	)	167,159			(0.5	)
Core earnings per common share - diluted	1.86			1.74			6.9		1.33			39.8
Core tangible efficiency ratio (TE) ^{(1) (2) (4)}	50.7		%	51.9		%			55.8		%
Core return on average assets	1.37			1.35					1.03
Core return on average common equity	10.75			10.27					7.92
Core return on average tangible common equity	16.98			16.34					12.73
Net interest margin (TE) - cash basis ⁽¹⁾	3.52			3.47					3.33

⁽¹⁾ Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017.
⁽²⁾ Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. The adoption resulted in a reduction of non-interest income and non-interest expense of approximately $2.3 million and had no impact on net income.
⁽³⁾ See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations.
⁽⁴⁾ Tangible calculations eliminate the effect of goodwill and acquisition-related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable.

Operating Results

Net interest income increased $5.8 million, or 2%, on a linked quarter basis. Average loans increased $201.8 million, or 4% annualized, and the associated taxable-equivalent yield increased 17 basis points. The yield on total earning assets was 17 basis points higher at 4.74% compared to 4.57% in the linked quarter.

Average interest-bearing deposits increased $281.3 million, or 7% annualized, and the average cost of interest-bearing deposits rose 17 basis points to 123 basis points on a linked quarter basis. Total average interest-bearing liabilities increased by $121.5 million, or 3% annualized, and the average cost of interest-bearing liabilities rose 14 basis points to 134 basis points. The total cost of interest-bearing liabilities rose primarily due to an upward repricing of deposits, promotional activity in customer time deposits, and brokered wholesale CD issuances. The total cost of funding in the fourth quarter of 2018 was 100 basis points, compared to 89 basis points in the linked quarter.

The increase in average earning assets and higher loan yields, offset by the increase in average interest-bearing liabilities and cost of funds, resulted in improvements in the Company's reported and cash net interest margins of 7 and 5 basis points to 3.81% and 3.52%, respectively.

Credit metrics are strong and continue to improve. Criticized, classified, and non-performing assets were down 28%, 30%, and 5%, respectively, from the same time a year ago. The ALLL to total loans and leases remained flat and covered 101% of non-performing loans.

Non-interest income decreased $52.1 million compared to the linked quarter, primarily driven by $49.8 million in losses on sales of available-for-sale securities. Non-interest income on a linked quarter basis also included a $2.4 million decline in mortgage income and a $0.7 million decline in broker commissions. These decreases were partially offset by increases of $0.4 million in commercial loan fee income and $0.3 million in income from new market tax credit investments.

Non-interest expense remained relatively flat when compared to the linked quarter. Professional services expenses increased $3.1 million and were offset by decreases in insurance and net costs of OREO of $1.9 million and $1.8 million, respectively. During the fourth quarter of 2018, non-interest expense included $2.6 million in non-core expenses, primarily from tax-related professional services expenses.

Excluding these items, core non-interest expense decreased $2.0 million, or 1%, primarily driven by decreases of $2.8 million in net costs of OREO and $1.9 million in insurance expenses, partially offset by increases of $1.5 million in salary and employee benefits expenses and $0.6 million in marketing expenses.

Income tax expense decreased $76.5 million on a linked quarter basis to an income tax benefit position of $46.1 million as the result of a $65.3 million non-core, permanent net tax benefit recorded in the fourth quarter of 2018. This benefit was a result of deductions claimed on the Company's 2017 income tax returns partially offset by the repricing of its current and deferred income tax position associated with the Tax Cuts and Jobs Act of 2017.

On a linked quarter basis, the efficiency ratio increased to 63.5% from 54.1%, primarily due to losses on sales of available-for-sale securities in the fourth quarter, while the non-GAAP core tangible efficiency ratio improved to 50.7% from 51.9%. The Company continues to focus on cost containment and revenue enhancement efforts to deliver positive operating leverage. Refer to Table A for a summary of financial results on both a GAAP and non-GAAP basis.



Table B - Summary Financial Condition Results
(Dollars in thousands, except per share data)

		As of and For the Three Months Ended
		12/31/2018			9/30/2018			% Change		12/31/2017			% Change
PERIOD-END BALANCES:
	Total loans and leases, net of unearned income	$	22,519,815		$	22,343,906		0.8		$	20,078,181		12.2
	Total deposits	23,763,431			23,193,446			2.5		21,466,717			10.7

ASSET QUALITY RATIOS:
	Loans 30-89 days past due and still accruing as a percentage of total loans ⁽¹⁾	0.25		%	0.32		%			0.31		%
	Loans 90 days or more past due and still accruing as a percentage of total loans ⁽¹⁾	0.01			0.06					0.03
	Non-performing assets to total assets ⁽¹⁾⁽²⁾	0.55			0.63					0.64
	Classified assets to total assets ⁽³⁾	0.98			1.20					1.54

CAPITAL RATIOS:
	Tangible common equity ratio (Non-GAAP) ^{(4) (5)}	8.82		%	8.69		%			8.61		%
	Tier 1 leverage ratio ⁽⁶⁾	9.60			9.65					9.35
	Total risk-based capital ratio ⁽⁶⁾	12.31			12.42					12.37

PER COMMON SHARE DATA:
	Book value	$	71.49		$	68.03		5.1		$	66.17		8.0
	Tangible book value (Non-GAAP) ^{(4) (5)}	47.48			44.72			6.2		42.56			11.6
	Closing stock price	64.28			81.35			(21.0	)	77.50			(17.1	)
	Cash dividends	0.41			0.39			5.1		0.37			10.8

₍₁₎	Past due and non-accrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans.
₍₂₎	Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets. Refer to Table 5 for further detail.
₍₃₎	Classified assets include commercial loans rated substandard or worse and non-performing mortgage and consumer loans and OREO and foreclosed property and include acquired impaired loans accounted for under ASC 310-30. Classified assets were $302 million, $360 million and $429 million at December 31, 2018, September 30, 2018, and December 31, 2017, respectively.
₍₄₎	See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations.
₍₅₎	Tangible calculations eliminate the effect of goodwill and acquisition-related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable.
₍₆₎	Regulatory capital ratios as of December 31, 2018 are preliminary.

Loans and Other Assets

Total loans increased $175.9 million, or 3% annualized, to $22.5 billion at December 31, 2018. Period-end loan growth during the fourth quarter of 2018 was strongest in the Energy Group (primarily reserve-based lending), the Corporate Asset Finance Group (equipment financing business), and the New Orleans, Baton Rouge and Birmingham markets. The Company believes it is well-positioned for diversified loan growth based on our strategic presence in significant MSAs in the Southeastern United States.



Table C - Period-End Loans
(Dollars in thousands)

	As of and For the Three Months Ended
								Linked Qtr Change						Year/Year Change				Mix
	12/31/2018			9/30/2018		12/31/2017		$		%		Annualized		$		%		12/31/2018		9/30/2018
Legacy loans:
Commercial⁽¹⁾	$	12,396,515		$	11,971,771	$	10,781,778	424,744		3.5		14.1	%	1,614,737		15.0		73.2	%	73.2	%
Residential mortgage	2,023,760			1,836,119		1,176,365		187,641		10.2		40.5	%	847,395		72.0		11.9	%	11.2	%
Consumer	2,529,705			2,543,872		2,525,008		(14,167	)	(0.6	)	(2.2	)%	4,697		0.2		14.9	%	15.6	%
Total legacy loans	16,949,980			16,351,762		14,483,151		598,218		3.7		14.5	%	2,466,829		17.0		100.0	%	100.0	%

Acquired loans:
Balance at beginning of period	5,992,144			6,465,748		5,961,939		(473,604	)	(7.3	)			30,205		0.5
Loans acquired during the period	—			—		—		—		—				—		—
Net paydown activity	(422,309		)	(473,604)		(366,909)		51,295		(10.8	)			(55,400	)	15.1
Total acquired loans	5,569,835			5,992,144		5,595,030		(422,309	)	(7.0	)			(25,195	)	(0.5	)
Total loans	$	22,519,815		$	22,343,906	$	20,078,181	175,909		0.8				2,441,634		12.2
⁽¹⁾ Includes equipment financing leases.

On an average balance and linked quarter basis, the investment portfolio decreased $111.0 million, or 9% annualized, to $4.8 billion, mainly due to sales of available-for-sale securities. On a period-end and linked quarter basis, the investment portfolio increased $143.3 million, or 12% annualized, to $5.0 billion, mainly due to favorable market value adjustments coupled with purchases of available-for-sale securities late in the fourth quarter. Approximately 96% of the Company's investment portfolio is in available-for-sale securities, which experience unrealized losses as interest rates rise. The investment portfolio had an effective duration of 3.4 years at December 31, 2018, down from 4.0 years at September 30, 2018, and a $62.9 million unrealized loss at December 31, 2018, down from a $181.1 million loss at September 30, 2018. The average yield on investment securities increased 18 basis points to 2.61% in the fourth quarter of 2018. The Company holds in its investment portfolio primarily government agency securities. Municipal securities comprised 7% of total investments at December 31, 2018.

Deposits and Funding

Total deposits increased $570.0 million, or 10% annualized, to $23.8 billion at December 31, 2018. Fourth quarter deposits included a $457 million increase in brokered and public fund deposits. Deposit growth during the fourth quarter of 2018 was strongest in the Energy Group and the New Orleans, Acadiana, and Atlanta markets.



Table D - Period-End Deposits
(Dollars in thousands)
							Linked Qtr Change						Year/Year Change				Mix
	12/31/2018		9/30/2018		12/31/2017		$		%		Annualized		$		%		12/31/2018		9/30/2018
Non-interest-bearing	$	6,542,490	$	6,544,926	$	6,209,925	(2,436	)	—		—	%	332,565		5.4		27.5	%	28.2	%
NOW accounts	4,514,113		4,247,533		4,348,939		266,580		6.3		24.9	%	165,174		3.8		19.0	%	18.3	%
Money market accounts	8,237,291		8,338,682		7,674,291		(101,391	)	(1.2	)	(4.8	)%	563,000		7.3		34.7	%	36.0	%
Savings accounts	828,914		820,354		846,074		8,560		1.0		4.1	%	(17,160	)	(2.0	)	3.5	%	3.5	%
Time deposits	3,640,623		3,241,951		2,387,488		398,672		12.3		48.8	%	1,253,135		52.5		15.3	%	14.0	%
Total deposits	$	23,763,431	$	23,193,446	$	21,466,717	569,985		2.4		9.7	%	2,296,714		10.7		100.0	%	100.0	%

Asset Quality

Credit quality continues to improve and reflects the Company's continued discipline and focus and high quality clients. On a linked quarter basis, classified assets decreased $58.1 million and were down $127.2 million, or 30%, from the same time a year ago. The Company's classified assets to total assets were 0.98% in the fourth quarter of 2018 compared to 1.20% in the linked quarter and 1.54% one year ago.

Refer to Table 5 - Loans and Asset Quality Data for further information.

Capital Position

At December 31, 2018, the Company reported a non-GAAP tangible common equity ratio of 8.82%, up 13 basis points compared to September 30, 2018, and the preliminary Tier 1 leverage ratio was 9.60%, down 5 basis points compared to September 30, 2018. The Company’s preliminary calculation of its total risk-based capital ratio at December 31, 2018, was 12.31%, down 11 basis points compared to September 30, 2018.

At December 31, 2018, book value per common share was $71.49, up $3.46 per share, compared to September 30, 2018. Tangible book value per common share was $47.48, up $2.76 per share, compared to September 30, 2018. Based on the closing stock price of the Company’s common stock of $72.34 per share on January 24, 2019, this price equated to 1.01 times December 31, 2018 book value per common share and 1.52 times December 31, 2018 tangible book value per common share.

Dividends On Capital Stock. The declaration of dividends is at the discretion of the Board of Directors. The following details the recent dividend declarations:

Common Stock. On October 19, 2018, the Company declared a quarterly cash dividend of $0.41 per common share, a 5% increase to the common dividend declared in August 2018. This dividend is payable on January 25, 2019, to shareholders of record on December 31, 2018. The common stock dividend increased 7% from 2017 to 2018.

Preferred Stock. On January 3, 2019, the Company declared a semi-annual cash dividend of $0.8281 per depositary share of Series B Preferred Stock that is payable on February 1, 2019. On January 3, 2019, the Company also declared a quarterly cash dividend of $0.4125 per depositary share of Series C Preferred Stock that is payable on February 1, 2019.

Common Stock Repurchase Program. On November 5, 2018, the Company announced the completion of its previously announced repurchase plan of approximately 2% of common shares outstanding. The Company's recently completed share repurchase program was announced on May 10, 2018 and completed on November 5, 2018. During that time, the Company purchased 1,137,500 shares of its common stock at a weighted average price of $77.54 per share. On November 5, 2018, the Board of Directors authorized a new repurchase plan of up to 2,765,000 shares of the Company's common stock. This repurchase authorization equated to approximately 5% of total common shares outstanding. Stock repurchases under this program will be made from time to time, on the open market or in privately negotiated transactions at the discretion of the management of the Company. The timing of these repurchases will depend on market conditions and other requirements. The Company currently anticipates the share repurchase program will extend over a two-year time frame, or earlier if the shares have been repurchased. During the fourth quarter of 2018, the Company repurchased 1,209,290 common shares, at a weighted average price of $72.61 per common share, of which 709,290 were repurchased under the completed Board-authorized plan. At December 31, 2018, there were approximately 2,265,000 remaining shares that may be repurchased under the current Board-approved plan.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with locations in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, South Carolina, North Carolina, Mississippi, Missouri, and New York offering commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, mortgage, and title insurance services.

The Company’s common stock trades on the NASDAQ Global Select Market under the symbol “IBKC”. The Company's Series B Preferred Stock and Series C Preferred Stock also trade on the NASDAQ Global Select Market under the symbols "IBKCP" and "IBKCO", respectively. The Company’s common stock market capitalization was approximately $4.0 billion, based on the NASDAQ Global Select Market closing stock price on January 24, 2019.

The following 10 investment firms currently provide equity research coverage on the Company:


•	Bank of America Merrill Lynch


•	FIG Partners, LLC


•	Hovde Group, LLC


•	Jefferies & Co., Inc.


•	Keefe, Bruyette & Woods, Inc.


•	Piper Jaffray & Co.


•	Raymond James & Associates, Inc.


•	Sandler O’Neill + Partners, L.P.


•	Stephens, Inc.


•	SunTrust Robinson-Humphrey

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 Friday, January 25, 2019, beginning at 8:00 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 7663126. A replay of the call will be available until midnight Central Time on February 1, 2019, by dialing 1-877-344-7529. The confirmation code for the replay is 10127114. 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 "Financial Information" and “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. Non-GAAP measures in this press release include, but are not limited to, descriptions such as core, tangible, and pre-tax pre-provision. 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 in management’s opinion can distort period-to-period comparisons of the Company’s performance. Transactions that are typically excluded from non-GAAP performance measures include realized and unrealized gains/losses on former bank owned real estate, realized gains/losses on securities, income tax gains/losses, merger-related charges and recoveries, litigation charges and recoveries, debt repayment penalties, and gains, losses, and impairment charges on long-lived assets. 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 presented in the supplemental tables at the end of this release. Please refer to the supplemental tables for these reconciliations.

Caution About Forward-Looking Statements

This press release contains "forward-looking statements," which may include forecasts of our financial results and condition, expectations for our operations and businesses, and our assumptions for those forecasts and expectations. Do not place undue reliance on forward-looking statements. Due to various factors, actual results may differ materially from our forward-looking statements. Factors that could cause our actual results to differ materially from our forward-looking statements are described under "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Risk Factors" and "Regulation and Supervision" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, and in other documents subsequently filed by the Company with the Securities and Exchange Commission, available at the SEC's website, www.sec.gov, and the Company's website, www.iberiabank.com. To the extent that statements in this press release relate to future plans, objectives, financial results or performance by the Company, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are generally identified by use of words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology.

Forward-looking statements represent management's beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. 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. All information is as of the date of this press release. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.



Table 1 - IBERIABANK CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)

		As of and For the Three Months Ended
INCOME DATA:		12/31/2018			9/30/2018			% Change		12/31/2017			% Change
	Net interest income	$	265,021		$	259,225		2.2		$	235,502		12.5
	Net interest income (TE) ⁽¹⁾	266,448			260,686			2.2		238,310			11.8
	Total revenues ⁽²⁾	265,990			312,312			(14.8	)	287,844			(7.6	)
	Provision for credit losses	13,094			11,384			15.0		12,825			2.1
	Non-interest expense ⁽²⁾	168,989			169,062			—		183,633			(8.0	)
	Net income available to common shareholders	129,090			97,866			31.9		9,329			1,283.7

PER COMMON SHARE DATA:
	Earnings available to common shareholders - basic	$	2.33		$	1.74		33.9		$	0.17		1,270.6
	Earnings available to common shareholders - diluted	2.32			1.73			34.1		0.17			1,264.7
	Core earnings (Non-GAAP) ⁽³⁾	1.86			1.74			6.9		1.33			39.8
	Book value	71.49			68.03			5.1		66.17			8.0
	Tangible book value (Non-GAAP)^{(3) (4)}	47.48			44.72			6.2		42.56			11.6
	Closing stock price	64.28			81.35			(21.0	)	77.50			(17.1	)
	Cash dividends	0.41			0.39			5.1		0.37			10.8

KEY RATIOS AND OTHER DATA ⁽⁷⁾:
	Net interest margin (TE) ⁽¹⁾	3.81		%	3.74		%			3.69		%
	Efficiency ratio ⁽²⁾	63.5			54.1					63.8
	Core tangible efficiency ratio (TE) (Non-GAAP) ^{(1) (2) (3) (4)}	50.7			51.9					55.8
	Return on average assets	1.70			1.34					0.15
	Return on average common equity	13.38			10.21					1.02
	Core return on average tangible common equity (Non-GAAP) ⁽³⁾⁽⁴⁾	16.98			16.34					12.73
	Effective tax rate	(55.0		)	23.1					88.8
	Full-time equivalent employees	3,403			3,429					3,552

CAPITAL RATIOS:
	Tangible common equity ratio (Non-GAAP) ^{(3) (4)}	8.82		%	8.69		%			8.61		%
	Tangible common equity to risk-weighted assets ⁽⁴⁾	10.41			10.17					10.20
	Tier 1 leverage ratio ⁽⁵⁾	9.60			9.65					9.35
	Common equity Tier 1 (CET 1) ratio ⁽⁵⁾	10.69			10.79					10.57
	Tier 1 capital ratio ⁽⁵⁾	11.22			11.33					11.16
	Total risk-based capital ratio ⁽⁵⁾	12.31			12.42					12.37
	Common stock dividend payout ratio	17.8			21.8					213.6
	Classified assets to Tier 1 capital ⁽⁸⁾	10.8			12.9					17.1



ASSET QUALITY RATIOS:
	Non-performing assets to total assets ⁽⁶⁾	0.55	%	0.63	%	0.64	%
	ALLL to total loans and leases	0.62		0.61		0.70
	Net charge-offs to average loans (annualized)	0.14		0.16		0.20
	Non-performing assets to total loans and OREO ⁽⁶⁾	0.75		0.84		0.89

₍₁₎	Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017.
₍₂₎	Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. The adoption resulted in a reduction of non-interest income and non-interest expense of approximately $2.3 million and had no impact on net income.
₍₃₎	See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations.
₍₄₎	Tangible calculations eliminate the effect of goodwill and acquisition-related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable.
₍₅₎	Regulatory capital ratios as of December 31, 2018 are preliminary.
₍₆₎	Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets. For purposes of this table, past due and non-accrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans.
₍₇₎	All ratios are calculated on an annualized basis for the periods indicated.
₍₈₎	Classified assets include commercial loans rated substandard or worse and non-performing mortgage and consumer loans and OREO and foreclosed property and include acquired impaired loans accounted for under ASC 310-30.



Table 2 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Dollars in thousands, except per share data)

	For the Three Months Ended
						Linked Qtr Change											Year/Year Change
	12/31/2018			9/30/2018		$		%		6/30/2018		3/31/2018			12/31/2017		$		%
Interest income	$	330,196		$	317,067	13,129		4.1		$	303,823	$	270,543		$	269,703	60,493		22.4
Interest expense	65,175			57,842		7,333		12.7		47,710		37,654			34,201		30,974		90.6
Net interest income	265,021			259,225		5,796		2.2		256,113		232,889			235,502		29,519		12.5
Provision for credit losses	13,094			11,384		1,710		15.0		7,696		8,211			12,825		269		2.1
Net interest income after provision for credit losses	251,927			247,841		4,086		1.6		248,417		224,678			222,677		29,250		13.1
Mortgage income	10,379			12,729		(2,350	)	(18.5	)	13,721		9,595			13,675		(3,296	)	(24.1	)
Service charges on deposit accounts	13,425			13,520		(95	)	(0.7	)	12,950		12,908			12,581		844		6.7
Title revenue	5,996			6,280		(284	)	(4.5	)	6,846		5,027			5,398		598		11.1
Broker commissions⁽¹⁾	1,951			2,627		(676	)	(25.7	)	2,396		2,221			1,958		(7	)	(0.4	)
ATM/debit card fee income⁽¹⁾	2,267			2,470		(203	)	(8.2	)	2,925		2,633			2,583		(316	)	(12.2	)
Income from bank owned life insurance	2,023			1,744		279		16.0		1,261		1,282			1,267		756		59.7
(Loss) gain on sale of available-for-sale securities	(49,844		)	—		(49,844	)	(100.0	)	3		(59		)	35		(49,879	)	(142,511.4	)
Trust department income	4,319			3,993		326		8.2		4,243		3,426			3,081		1,238		40.2
Other non-interest income⁽¹⁾	10,453			9,724		729		7.5		9,595		7,533			11,764		(1,311	)	(11.1	)
Total non-interest income⁽¹⁾	969			53,087		(52,118	)	(98.2	)	53,940		44,566			52,342		(51,373	)	(98.1	)
Salaries and employee benefits	101,551			101,159		392		0.4		107,445		104,586			104,387		(2,836	)	(2.7	)
Occupancy and equipment	18,379			18,889		(510	)	(2.7	)	19,931		20,047			19,211		(832	)	(4.3	)
Amortization of acquisition intangibles	5,083			5,382		(299	)	(5.6	)	6,111		5,102			4,642		441		9.5
Computer services expense⁽¹⁾	8,942			9,036		(94	)	(1.0	)	9,309		12,393			11,416		(2,474	)	(21.7	)
Professional services	8,628			5,519		3,109		56.3		7,160		7,391			9,441		(813	)	(8.6	)
Credit and other loan related expense	4,776			4,830		(54	)	(1.1	)	5,089		4,393			4,738		38		0.8
Other non-interest expense⁽¹⁾	21,630			24,247		(2,617	)	(10.8	)	41,731		34,159			29,798		(8,168	)	(27.4	)
Total non-interest expense⁽¹⁾	168,989			169,062		(73	)	—		196,776		188,071			183,633		(14,644	)	(8.0	)
Income before income taxes	83,907			131,866		(47,959	)	(36.4	)	105,581		81,173			91,386		(7,479	)	(8.2	)
Income tax (benefit) expense	(46,132		)	30,401		(76,533	)	(251.7	)	30,457		17,552			81,108		(127,240	)	(156.9	)
Net income	130,039			101,465		28,574		28.2		75,124		63,621			10,278		119,761		1,165.2
Less: Preferred stock dividends	949			3,599		(2,650	)	(73.6	)	949		3,598			949		—		—
Net income available to common shareholders	$	129,090		$	97,866	31,224		31.9		$	74,175	$	60,023		$	9,329	119,761		1,283.7

Income available to common shareholders - basic	$	129,090		$	97,866	31,224		31.9		$	74,175	$	60,023		$	9,329	119,761		1,283.7



Less: Earnings allocated to unvested restricted stock	1,214			908		306		33.7		767		639		101		1,113		1,102.0
Earnings allocated to common shareholders	$	127,876		$	96,958	30,918		31.9		$	73,408	$	59,384	$	9,228	118,648		1,285.7

Earnings per common share - basic	$	2.33		$	1.74	0.59		33.9		$	1.31	$	1.11	$	0.17	2.16		1,270.6

Earnings per common share - diluted	2.32			1.73		0.59		34.1		1.30		1.10		0.17		2.15		1,264.7
Impact of non-core items (Non-GAAP)⁽²⁾	(0.46		)	0.01		(0.47	)	(4,700.0	)	0.41		0.27		1.16		(1.62	)	(139.7	)
Earnings per share - diluted, excluding non-core items (Non-GAAP)⁽²⁾	$	1.86		$	1.74	0.12		6.9		$	1.71	$	1.37	$	1.33	0.53		39.8

NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
Weighted average common shares outstanding - basic	54,892			55,571		(679	)	(1.2	)	55,931		53,616		53,287		1,605		3.0
Weighted average common shares outstanding - diluted	55,215			55,945		(730	)	(1.3	)	56,287		53,967		53,621		1,594		3.0
Book value shares (period end)	54,796			56,007		(1,211	)	(2.2	)	56,390		56,779		53,872		924		1.7

⁽¹⁾ Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. On average, the adoption resulted in a reduction of non-interest income and non-interest expense of approximately $2.3 million on a quarterly basis, and had no impact on net income.
⁽²⁾ See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations.



Table 3 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Dollars in thousands, except per share data)

	For the Years Ended
							Change
	12/31/2018			12/31/2017			$		%
Interest income	$	1,221,629		$	913,783		307,846		33.7
Interest expense	208,381			104,937			103,444		98.6
Net interest income	1,013,248			808,846			204,402		25.3
Provision for credit losses	40,385			51,708			(11,323	)	(21.9	)
Net interest income after provision for credit losses	972,863			757,138			215,725		28.5
Mortgage income	46,424			63,570			(17,146	)	(27.0	)
Service charges on deposit accounts	52,803			47,678			5,125		10.7
Title revenue	24,149			21,972			2,177		9.9
Broker commissions ⁽¹⁾	9,195			9,161			34		0.4
ATM/debit card fee income ⁽¹⁾	10,295			10,199			96		0.9
Income from bank owned life insurance	6,310			5,082			1,228		24.2
(Loss) gain on sale of available-for-sale securities	(49,900		)	(148		)	(49,752	)	(33,616.2	)
Trust department income	15,981			9,705			6,276		64.7
Other non-interest income ⁽¹⁾	37,305			34,928			2,377		6.8
Total non-interest income ⁽¹⁾	152,562			202,147			(49,585	)	(24.5	)
Salaries and employee benefits	414,741			379,527			35,214		9.3
Occupancy and equipment	77,246			70,663			6,583		9.3
Amortization of acquisition intangibles	21,678			12,590			9,088		72.2
Computer services expense ⁽¹⁾	39,680			36,790			2,890		7.9
Professional services	28,698			48,545			(19,847	)	(40.9	)
Credit and other loan related expense	19,088			18,411			677		3.7
Other non-interest expense ⁽¹⁾	121,767			99,880			21,887		21.9
Total non-interest expense ⁽¹⁾	722,898			666,406			56,492		8.5
Income before income taxes	402,527			292,879			109,648		37.4
Income tax expense	32,278			150,466			(118,188	)	(78.5	)
Net income	370,249			142,413			227,836		160.0
Less: Preferred stock dividends	9,095			9,095			—		—
Net income available to common shareholders	$	361,154		$	133,318		227,836		170.9

Income available to common shareholders - basic	$	361,154		$	133,318		227,836		170.9
Less: Earnings allocated to unvested restricted stock	3,583			1,210			2,373		196.1
Earnings allocated to common shareholders	$	357,571		$	132,108		225,463		170.7

Earnings per common share - basic	$	6.50		$	2.61		3.89		149.0

Earnings per common share - diluted	6.46			2.59			3.87		149.4
Impact of non-core items (Non-GAAP) ⁽²⁾	0.23			1.88			(1.65	)	(87.8	)
Earnings per share - diluted, excluding non-core items (Non-GAAP) ⁽²⁾	$	6.69		$	4.47		2.22		49.7

NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
Weighted average common shares outstanding - basic	55,008			50,640			4,368		8.6
Weighted average common shares outstanding - diluted	55,359			50,992			4,367		8.6
Book value shares (period end)	54,796			53,872			924		1.7
(1) Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. The adoption resulted in a reduction of non-interest income and non-interest expense of approximately $8.9 million and had no impact on net income.
(2) See Table 9 and Table 10 for GAAP to Non-GAAP reconciliations.



TABLE 4 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

PERIOD-END BALANCES							Linked Qtr Change													Year/Year Change
ASSETS	12/31/2018			9/30/2018			$		%		6/30/2018			3/31/2018			12/31/2017			$		%
Cash and due from banks	$	294,186		$	291,083		3,103		1.1		$	299,268		$	253,527		$	319,156		(24,970	)	(7.8	)
Interest-bearing deposits in other banks	396,267			184,852			211,415		114.4		428,120			310,565			306,568			89,699		29.3
Total cash and cash equivalents	690,453			475,935			214,518		45.1		727,388			564,092			625,724			64,729		10.3
Investment securities available for sale	4,783,579			4,634,124			149,455		3.2		4,650,915			4,542,486			4,590,062			193,517		4.2
Investment securities held to maturity	207,446			213,561			(6,115	)	(2.9	)	221,030			224,241			227,318			(19,872	)	(8.7	)
Total investment securities	4,991,025			4,847,685			143,340		3.0		4,871,945			4,766,727			4,817,380			173,645		3.6
Mortgage loans held for sale	107,734			42,976			64,758		150.7		78,843			110,348			134,916			(27,182	)	(20.1	)
Loans and leases, net of unearned income	22,519,815			22,343,906			175,909		0.8		22,075,783			21,706,090			20,078,181			2,441,634		12.2
Allowance for loan and lease losses	(140,571		)	(136,950		)	(3,621	)	2.6		(136,576		)	(144,527		)	(140,891		)	320		(0.2	)
Loans and leases, net	22,379,244			22,206,956			172,288		0.8		21,939,207			21,561,563			19,937,290			2,441,954		12.2
Premises and equipment, net	300,507			304,605			(4,098	)	(1.3	)	326,213			329,454			331,413			(30,906	)	(9.3	)
Goodwill and other intangible assets	1,324,269			1,313,478			10,791		0.8		1,320,664			1,338,573			1,277,464			46,805		3.7
Other assets	1,032,934			926,752			106,182		11.5		861,902			801,880			779,942			252,992		32.4
Total assets	$	30,826,166		$	30,118,387		707,779		2.3		$	30,126,162		$	29,472,637		$	27,904,129		2,922,037		10.5

LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest-bearing deposits	$	6,542,490		$	6,544,926		(2,436	)	—		$	6,814,441		$	6,595,495		$	6,209,925		332,565		5.4
NOW accounts	4,514,113			4,247,533			266,580		6.3		4,453,152			4,500,181			4,348,939			165,174		3.8
Savings and money market accounts	9,066,205			9,159,036			(92,831	)	(1.0	)	9,318,331			9,146,710			8,520,365			545,840		6.4
Time deposits	3,640,623			3,241,951			398,672		12.3		2,844,534			2,728,806			2,387,488			1,253,135		52.5
Total deposits	23,763,431			23,193,446			569,985		2.5		23,430,458			22,971,192			21,466,717			2,296,714		10.7
Short-term borrowings	1,167,000			790,000			377,000		47.7		595,000			375,000			475,000			692,000		145.7
Securities sold under agreements to repurchase	315,882			452,719			(136,837	)	(30.2	)	459,213			525,496			516,297			(200,415	)	(38.8	)
Trust preferred securities	120,110			120,110			—		—		120,110			120,110			120,110			—		—
Other long-term debt	1,046,041			1,346,700			(300,659	)	(22.3	)	1,318,504			1,329,192			1,375,725			(329,684	)	(24.0	)
Other liabilities	364,274			273,051			91,223		33.4		289,468			250,740			253,489			110,785		43.7
Total liabilities	26,776,738			26,176,026			600,712		2.3		26,212,753			25,571,730			24,207,338			2,569,400		10.6
Total shareholders' equity	4,049,428			3,942,361			107,067		2.7		3,913,409			3,900,907			3,696,791			352,637		9.5
Total liabilities and shareholders' equity	$	30,826,166		$	30,118,387		707,779		2.3		$	30,126,162		$	29,472,637		$	27,904,129		2,922,037		10.5



TABLE 4 Continued - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

AVERAGE BALANCES							Linked Qtr Change													Year/Year Change
ASSETS	12/31/2018			9/30/2018			$		%		6/30/2018			3/31/2018			12/31/2017			$		%
Cash and due from banks	$	281,509		$	279,918		1,591		0.6		$	296,907		$	308,319		$	307,328		(25,819	)	(8.4	)
Interest-bearing deposits in other banks	385,619			259,455			126,164		48.6		392,906			486,298			538,733			(153,114	)	(28.4	)
Total cash and cash equivalents	667,128			539,373			127,755		23.7		689,813			794,617			846,061			(178,933	)	(21.1	)
Investment securities available for sale	4,567,564			4,673,454			(105,890	)	(2.3	)	4,629,177			4,544,836			4,674,496			(106,932	)	(2.3	)
Investment securities held to maturity	211,333			216,419			(5,086	)	(2.4	)	222,764			226,229			191,067			20,266		10.6
Total investment securities	4,778,897			4,889,873			(110,976	)	(2.3	)	4,851,941			4,771,065			4,865,563			(86,666	)	(1.8	)
Mortgage loans held for sale	63,033			87,823			(24,790	)	(28.2	)	72,917			109,027			126,216			(63,183	)	(50.1	)
Loans and leases, net of unearned income	22,364,188			22,162,373			201,815		0.9		21,830,720			20,181,390			19,941,500			2,422,688		12.1
Allowance for loan and lease losses	(138,675		)	(139,075		)	400		(0.3	)	(145,565		)	(144,295		)	(138,927		)	252		(0.2	)
Loans and leases, net	22,225,513			22,023,298			202,215		0.9		21,685,155			20,037,095			19,802,573			2,422,940		12.2
Premises and equipment, net	302,956			315,259			(12,303	)	(3.9	)	327,686			331,640			329,957			(27,001	)	(8.2	)
Goodwill and other intangible assets	1,318,200			1,316,527			1,673		0.1		1,338,420			1,281,598			1,277,293			40,907		3.2
Other assets	977,666			874,078			103,588		11.9		804,920			807,177			787,400			190,266		24.2
Total assets	$	30,333,393		$	30,046,231		287,162		1.0		$	29,770,852		$	28,132,219		$	28,035,063		2,298,330		8.2

LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest-bearing deposits	$	6,646,071		$	6,684,343		(38,272	)	(0.6	)	$	6,795,878		$	6,278,507		$	6,176,347		469,724		7.6
NOW accounts	4,212,304			4,296,392			(84,088	)	(2.0	)	4,494,064			4,363,557			3,987,908			224,396		5.6
Savings and money market accounts	9,169,184			9,237,614			(68,430	)	(0.7	)	9,146,302			8,664,085			8,769,464			399,720		4.6
Time deposits	3,457,017			3,023,180			433,837		14.4		2,719,627			2,471,485			2,444,403			1,012,614		41.4
Total deposits	23,484,576			23,241,529			243,047		1.0		23,155,871			21,777,634			21,378,122			2,106,454		9.9
Short-term borrowings	602,593			820,087			(217,494	)	(26.5	)	609,965			506,056			729,111			(126,518	)	(17.4	)
Securities sold under agreements to repurchase	386,563			376,078			10,485		2.8		427,508			477,862			494,757			(108,194	)	(21.9	)
Trust preferred securities	120,110			120,110			—		—		120,110			120,110			120,110			—		—
Other long-term debt	1,308,086			1,260,900			47,186		3.7		1,261,515			1,257,213			1,300,114			7,972		0.6
Other liabilities	470,501			292,445			178,056		60.9		281,820			275,869			264,790			205,711		77.7
Total liabilities	26,372,429			26,111,149			261,280		1.0		25,856,789			24,414,744			24,287,004			2,085,425		8.6
Total shareholders' equity	3,960,964			3,935,082			25,882		0.7		3,914,063			3,717,475			3,748,059			212,905		5.7
Total liabilities and shareholders' equity	$	30,333,393		$	30,046,231		287,162		1.0		$	29,770,852		$	28,132,219		$	28,035,063		2,298,330		8.2



Table 5 - IBERIABANK CORPORATION
LOANS AND ASSET QUALITY DATA
(Dollars in thousands)

							Linked Qtr Change													Year/Year Change
LOANS	12/31/2018			9/30/2018			$		%		6/30/2018			3/31/2018			12/31/2017			$		%
Commercial loans and leases:
Real estate- construction	$	1,196,366		$	1,127,988		68,378		6.1		$	1,183,367		$	1,199,625		$	1,240,396		(44,030	)	(3.5	)
Real estate- owner-occupied ⁽¹⁾	2,395,822			2,458,964			(63,142	)	(2.6	)	2,455,685			2,449,513			2,375,321			20,501		0.9
Real estate- non-owner occupied	5,796,117			5,794,931			1,186		—		5,653,252			5,599,813			5,322,513			473,604		8.9
Commercial and industrial ⁽⁶⁾	5,737,017			5,581,040			155,977		2.8		5,512,416			5,325,682			5,135,067			601,950		11.7
Total commercial loans and leases	15,125,322			14,962,923			162,399		1.1		14,804,720			14,574,633			14,073,297			1,052,025		7.5

Residential mortgage loans	4,359,156			4,300,163			58,993		1.4		4,124,538			3,971,067			3,056,352			1,302,804		42.6

Consumer loans:
Home equity	2,304,694			2,350,176			(45,482	)	(1.9	)	2,410,617			2,421,186			2,292,275			12,419		0.5
Other	730,643			730,644			(1	)	—		735,908			739,204			656,257			74,386		11.3
Total consumer loans	3,035,337			3,080,820			(45,483	)	(1.5	)	3,146,525			3,160,390			2,948,532			86,805		2.9
Total loans and leases	$	22,519,815		$	22,343,906		175,909		0.8		$	22,075,783		$	21,706,090		$	20,078,181		2,441,634		12.2

Allowance for loan and lease losses ⁽²⁾	$	(140,571	)	$	(136,950	)	(3,621	)	2.6		$	(136,576	)	$	(144,527	)	$	(140,891	)	320		(0.2	)
Loans and leases, net	22,379,244			22,206,956			172,288		0.8		21,939,207			21,561,563			19,937,290			2,441,954		12.2

Reserve for unfunded commitments	(14,830		)	(14,721		)	(109	)	0.7		(14,433		)	(13,432		)	(13,208		)	(1,622	)	12.3
Allowance for credit losses	(155,401		)	(151,671		)	(3,730	)	2.5		(151,009		)	(157,959		)	(154,099		)	(1,302	)	0.8

ASSET QUALITY DATA
Non-accrual loans ⁽³⁾	$	137,184		$	143,595		(6,411	)	(4.5	)	$	131,155		$	153,975		$	145,388		(8,204	)	(5.6	)
Other real estate owned and foreclosed assets	30,394			32,418			(2,024	)	(6.2	)	22,267			27,117			26,533			3,861		14.6
Accruing loans more than 90 days past due ⁽³⁾	2,128			12,452			(10,324	)	(82.9	)	9,314			8,288			6,900			(4,772	)	(69.2	)
Total non-performing assets ⁽³⁾⁽⁴⁾	$	169,706		$	188,465		(18,759	)	(10.0	)	$	162,736		$	189,380		$	178,821		(9,115	)	(5.1	)

Loans 30-89 days past due ⁽³⁾	$	57,332		$	70,624		(13,292	)	(18.8	)	$	43,159		$	78,293		$	61,717		(4,385	)	(7.1	)

Non-performing assets to total assets ⁽³⁾⁽⁴⁾	0.55		%	0.63		%					0.54		%	0.64		%	0.64		%
Non-performing assets to total loans and OREO⁽³⁾⁽⁴⁾	0.75			0.84							0.74			0.87			0.89
ALLL to non-performing loans ⁽³⁾⁽⁵⁾	100.9			87.8							97.2			89.1			92.5
ALLL to non-performing assets ⁽³⁾⁽⁴⁾	82.8			72.7							83.9			76.3			78.8
ALLL to total loans and leases	0.62			0.61							0.62			0.67			0.70



Quarter-to-date charge-offs	$	10,806		$	12,006		(1,200	)	(10.0	)	$	13,618		$	9,116		$	12,526		(1,720	)	(13.7	)
Quarter-to-date recoveries	(3,097		)	(3,049		)	(48	)	1.6		(1,968		)	(4,813		)	(2,425		)	(672	)	27.7
Quarter-to-date net charge-offs	$	7,709		$	8,957		(1,248	)	(13.9	)	$	11,650		$	4,303		$	10,101		(2,392	)	(23.7	)

Net charge-offs to average loans (annualized)	0.14		%	0.16		%					0.21		%	0.09		%	0.20		%

(1) Real estate- owner-occupied is defined as loans with a "1E1" Call Report Code (loans secured by owner-occupied non-farm non-residential properties).
(2) The allowance for loan and lease losses includes impairment reserves attributable to acquired impaired loans.
(3) For purposes of this table, past due and non-accrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans.
(4) Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets.
(5) Non-performing loans consist of non-accruing loans and accruing loans 90 days or more past due.
(6) Includes equipment financing leases.



TABLE 6 - IBERIABANK CORPORATION
QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES
(Dollars in thousands)

	For the Three Months Ended
	12/31/2018							9/30/2018						Basis Point Change
ASSETS	Average Balance			Interest Income/Expense		Yield/Rate (TE)⁽¹⁾		Average Balance		Interest Income/Expense		Yield/Rate (TE)⁽¹⁾		Yield/Rate (TE)⁽¹⁾
Earning assets:
Commercial loans and leases	$	14,978,169		$	196,881	5.24	%	$	14,825,572	$	191,014	5.13	%	11
Residential mortgage loans	4,345,811			53,836		4.96		4,230,471		48,145		4.55		41
Consumer loans	3,040,208			44,275		5.78		3,106,330		43,966		5.62		16
Total loans and leases	22,364,188			294,992		5.26		22,162,373		283,125		5.09		17
Mortgage loans held for sale	63,033			721		4.58		87,823		1,037		4.72		(14)
Investment securities⁽²⁾	4,782,844			30,559		2.61		5,016,163		29,793		2.43		18
Other earning assets	581,673			3,924		2.68		456,120		3,112		2.71		(3)
Total earning assets	27,791,738			330,196		4.74		27,722,479		317,067		4.57		17
Allowance for loan and lease losses	(138,675		)					(139,075)
Non-earning assets	2,680,330							2,462,827
Total assets	$	30,333,393						$	30,046,231

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
NOW accounts	$	4,212,304		$	9,420	0.89	%	$	4,296,392	$	8,841	0.82	%	7
Savings and money market accounts	9,169,184			26,062		1.13		9,237,614		23,076		0.99		14
Time deposits	3,457,017			16,666		1.91		3,023,180		12,484		1.64		27
Total interest-bearing deposits⁽³⁾	16,838,505			52,148		1.23		16,557,186		44,401		1.06		17
Short-term borrowings	989,156			4,104		1.65		1,196,165		4,727		1.57		8
Long-term debt	1,428,196			8,923		2.48		1,381,010		8,714		2.50		(2)
Total interest-bearing liabilities	19,255,857			65,175		1.34		19,134,361		57,842		1.20		14
Non-interest-bearing deposits	6,646,071							6,684,343
Non-interest-bearing liabilities	470,501							292,445
Total liabilities	26,372,429							26,111,149
Total shareholders' equity	3,960,964							3,935,082
Total liabilities and shareholders' equity	$	30,333,393						$	30,046,231

Net interest income/Net interest spread				$	265,021	3.40	%			$	259,225	3.37	%	3
Taxable equivalent benefit				1,427		0.02				1,461		0.02		—
Net interest income (TE)/Net interest margin (TE) ⁽¹⁾				$	266,448	3.81	%			$	260,686	3.74	%	7

(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017.
(2) Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting.
(3) Total deposit costs for the three months ended December 31, 2018 and September 30, 2018 were 0.88% and 0.76%, respectively.



TABLE 6 Continued - IBERIABANK CORPORATION
QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES
(Dollars in thousands)

	For the Three Months Ended
	6/30/2018						3/31/2018						12/31/2017
ASSETS	Average Balance		Interest Income/Expense		Yield/Rate (TE)⁽¹⁾		Average Balance		Interest Income/Expense		Yield/Rate (TE)⁽¹⁾		Average Balance		Interest Income/Expense		Yield/Rate (TE)⁽¹⁾
Earning assets:
Commercial loans and leases	$	14,631,985	$	178,830	4.92	%	$	14,087,635	$	164,660	4.76	%	$	13,964,340	$	163,974	4.70	%
Residential mortgage loans	4,041,259		47,215		4.67		3,151,775		34,494		4.38		3,049,947		35,007		4.59
Consumer loans	3,157,476		44,431		5.64		2,941,980		38,915		5.36		2,927,213		38,836		5.26
Total loans and leases	21,830,720		270,476		4.98		20,181,390		238,069		4.79		19,941,500		237,817		4.77
Mortgage loans held for sale	72,917		836		4.59		109,027		1,154		4.23		126,216		1,251		3.96
Investment securities⁽²⁾	4,958,769		29,325		2.42		4,843,448		28,094		2.38		4,893,538		27,714		2.37
Other earning assets	580,477		3,186		2.20		679,902		3,226		1.92		725,042		2,921		1.60
Total earning assets	27,442,883		303,823		4.46		25,813,767		270,543		4.26		25,686,296		269,703		4.22
Allowance for loan and lease losses	(145,565)						(144,295)						(138,927)
Non-earning assets	2,473,534						2,462,747						2,487,694
Total assets	$	29,770,852					$	28,132,219					$	28,035,063

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
NOW accounts	$	4,494,064	$	8,620	0.77	%	$	4,363,557	$	7,081	0.66	%	$	3,987,908	$	5,404	0.54	%
Savings and money market accounts	9,146,302		18,434		0.81		8,664,085		14,579		0.68		8,769,464		13,345		0.60
Time deposits	2,719,627		9,105		1.34		2,471,485		6,584		1.08		2,444,403		6,115		0.99
Total interest-bearing deposits⁽³⁾	16,359,993		36,159		0.89		15,499,127		28,244		0.74		15,201,775		24,864		0.65
Short-term borrowings	1,037,473		3,327		1.29		983,918		2,524		1.04		1,223,868		2,901		0.94
Long-term debt	1,381,625		8,224		2.39		1,377,323		6,886		2.03		1,420,224		6,436		1.80
Total interest-bearing liabilities	18,779,091		47,710		1.02		17,860,368		37,654		0.86		17,845,867		34,201		0.76
Non-interest-bearing deposits	6,795,878						6,278,507						6,176,347
Non-interest-bearing liabilities	281,820						275,869						264,790
Total liabilities	25,856,789						24,414,744						24,287,004
Total shareholders' equity	3,914,063						3,717,475						3,748,059
Total liabilities and shareholders' equity	$	29,770,852					$	28,132,219					$	28,035,063

Net interest income/Net interest spread			$	256,113	3.44	%			$	232,889	3.40	%			$	235,502	3.46	%
Taxable equivalent benefit			1,449		0.02				1,464		0.02				2,808		0.04
Net interest income (TE)/Net interest margin (TE)⁽¹⁾			$	257,562	3.76	%			$	234,353	3.67	%			$	238,310	3.69	%

(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017.
(2) Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting.
(3) Total deposit costs for the three months ended June 30, 2018, March 31, 2018, and December 31, 2017, were 0.63%, 0.53% and 0.46%, respectively.



TABLE 7 - IBERIABANK CORPORATION
YEAR-TO-DATE AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES
(Dollars in thousands)

	For the Years Ended
	12/31/2018							12/31/2017						Basis Point Change
ASSETS	Average Balance			Interest Income/Expense		Yield/Rate (TE)⁽¹⁾		Average Balance		Interest Income/Expense		Yield/Rate (TE)⁽¹⁾		Yield/Rate (TE)⁽¹⁾
Earning assets:
Commercial loans and leases	$	14,633,814		$	731,385	5.02	%	$	12,252,823	$	556,883	4.59	%	43
Residential mortgage loans	3,946,390			183,690		4.65		2,032,710		90,845		4.47		18
Consumer loans	3,061,891			171,587		5.60		2,884,239		155,219		5.38		22
Total loans and leases	21,642,095			1,086,662		5.04		17,169,772		802,947		4.71		33
Mortgage loans held for sale	83,087			3,748		4.51		144,658		4,679		3.23		128
Investment securities ⁽²⁾	4,900,457			117,771		2.46		4,347,581		96,194		2.31		15
Other earning assets	573,949			13,448		2.34		820,678		9,963		1.23		111
Total earning assets	27,199,588			1,221,629		4.51		22,482,689		913,783		4.11		40
Allowance for loan and lease losses	(141,880		)					(144,426)
Non-earning assets	2,520,299							2,142,393
Total assets	$	29,578,007						$	24,480,656

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
NOW accounts	$	4,341,041		$	33,962	0.78	%	$	3,390,268	$	16,385	0.48	%	30
Savings and money market accounts	9,056,182			82,151		0.91		7,912,990		42,353		0.54		37
Time deposits	2,920,817			44,839		1.54		2,228,029		21,095		0.95		59
Total interest-bearing deposits ⁽³⁾	16,318,040			160,952		0.99		13,531,287		79,833		0.59		40
Short-term borrowings	1,052,088			14,682		1.40		905,755		7,557		0.83		57
Long-term debt	1,392,148			32,747		2.35		854,425		17,547		2.05		30
Total interest-bearing liabilities	18,762,276			208,381		1.11		15,291,467		104,937		0.69		42
Non-interest-bearing deposits	6,602,434							5,440,477
Non-interest-bearing liabilities	330,588							240,362
Total liabilities	25,695,298							20,972,306
Total shareholders' equity	3,882,709							3,508,350
Total liabilities and shareholders' equity	$	29,578,007						$	24,480,656

Net interest income/Net interest spread				$	1,013,248	3.40	%			$	808,846	3.42	%	(2)
Tax-equivalent benefit				5,760		0.02				10,308		0.05		(3)
Net interest income (TE)/Net interest margin (TE) ⁽¹⁾				$	1,019,008	3.75	%			$	819,154	3.64	%	11

(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017.
(2) Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting.
(3) Total deposit costs for the year ended December 31, 2018 and 2017 were 0.70% and 0.42%, respectively.



Table 8 - IBERIABANK CORPORATION
LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS
(Dollars in millions)

	For the Three Months Ended
	12/31/2018							9/30/2018							6/30/2018							3/31/2018							12/31/2017
AS REPORTED (US GAAP)	Income			Average Balance		Yield		Income			Average Balance		Yield		Income			Average Balance		Yield		Income			Average Balance		Yield		Income			Average Balance		Yield
Legacy loans, net	$	209		$	16,616	4.99	%	$	193		$	15,957	4.80	%	$	179		$	15,217	4.73	%	$	166		$	14,556	4.61	%	$	157		$	14,235	4.39	%
Acquired loans	86			5,748		5.97		90			6,205		5.78		91			6,614		5.51		72			5,625		5.20		81			5,706		5.61
Total loans	$	295		$	22,364	5.24	%	$	283		$	22,162	5.08	%	$	270		$	21,831	4.97	%	$	238		$	20,181	4.77	%	$	238		$	19,941	4.74	%

	12/31/2018							9/30/2018							6/30/2018							3/31/2018							12/31/2017
ADJUSTMENTS	Income			Average Balance		Yield		Income			Average Balance		Yield		Income			Average Balance		Yield		Income			Average Balance		Yield		Income			Average Balance		Yield
Legacy loans, net	$	—		$	—	0.00	%	$	—		$	—	0.00	%	$	—		$	—	0.00	%	$	—		$	—	0.00	%	$	—		$	—	0.00	%
Acquired loans	(19		)	144		(1.46	)	(17		)	144		(1.23	)	(16		)	142		(1.12	)	(15		)	142		(1.16	)	(21		)	161		(1.60	)
Total loans	$	(19	)	$	144	(0.38	)%	$	(17	)	$	144	(0.35	)%	$	(16	)	$	142	(0.34	)%	$	(15	)	$	142	(0.32	)%	$	(21	)	$	161	(0.46	)%

	12/31/2018							9/30/2018							6/30/2018							3/31/2018							12/31/2017
AS ADJUSTED (CASH YIELD, NON-GAAP)	Income			Average Balance		Yield		Income			Average Balance		Yield		Income			Average Balance		Yield		Income			Average Balance		Yield		Income			Average Balance		Yield
Legacy loans, net	$	209		$	16,616	4.99	%	$	193		$	15,957	4.80	%	$	179		$	15,217	4.73	%	$	166		$	14,556	4.61	%	$	157		$	14,235	4.39	%
Acquired loans	67			5,892		4.51		73			6,349		4.55		75			6,756		4.39		57			5,767		4.04		60			5,867		4.01
Total loans	$	276		$	22,508	4.86	%	$	266		$	22,306	4.73	%	$	254		$	21,973	4.63	%	$	223		$	20,323	4.45	%	$	217		$	20,102	4.28	%



Table 9 - IBERIABANK CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share amounts)

	For the Three Months Ended
	12/31/2018									9/30/2018									6/30/2018
	Pre-tax			After-tax			Per share ⁽²⁾			Pre-tax			After-tax			Per share ⁽²⁾			Pre-tax			After-tax			Per share ⁽²⁾
Net income	$	83,907		$	130,039		$	2.34		$	131,866		$	101,465		$	1.79		$	105,581		$	75,124		$	1.32
Less: Preferred stock dividends	—			949			0.02			—			3,599			0.06			—			949			0.02
Income available to common shareholders (GAAP)	$	83,907		$	129,090		$	2.32		$	131,866		$	97,866		$	1.73		$	105,581		$	74,175		$	1.30

Non-interest income adjustments ⁽¹⁾⁽³⁾:
Loss (gain) on sale of investments	49,844			37,882			0.68			(1		)	(1		)	—			(3		)	(2		)	—
Other non-core non-interest income	415			316			—			—			—			—			—			—			—
Total non-interest income adjustments	50,259			38,198			0.68			(1		)	(1		)	—			(3		)	(2		)	—

Non-interest expense adjustments⁽¹⁾⁽³⁾:
Merger-related expense	(238		)	(353		)	—			973			743			0.01			14,333			11,012			0.20
Compensation-related expense	184			140			—			1,104			839			0.01			1,781			1,354			0.02
Impairment of long-lived assets, net of (gain) loss on sale	64			49			—			3,286			2,497			0.05			5,413			4,114			0.07
Gain on early termination of loss share agreements	—			—			—			(2,708		)	(2,058		)	(0.04		)	—			—			—
Other non-core non-interest expense	2,600			1,976			0.04			(1,955		)	(1,486		)	(0.02		)	(95		)	(72		)	—
Total non-interest expense adjustments	2,610			1,812			0.04			700			535			0.01			21,432			16,408			0.29
Income tax expense (benefit) - impact of the Tax Cuts and Jobs Act	—			(65,317		)	(1.18		)	—			—			—			—			6,572			0.12
Core earnings (Non-GAAP)	136,776			103,783			1.86			132,565			98,400			1.74			127,010			97,153			1.71
Provision for credit losses ⁽¹⁾	13,094			9,951						11,384			8,652						7,696			5,849
Pre-provision earnings, as adjusted (Non-GAAP) ⁽³⁾	$	149,870		$	113,734					$	143,949		$	107,052					$	134,706		$	103,002



	For the Three Months Ended
	3/31/2018									12/31/2017
	Pre-tax			After-tax			Per share ⁽²⁾			Pre-tax			After-tax			Per share ⁽²⁾
Net income	$	81,173		$	63,621		$	1.17		$	91,386		$	10,278		$	0.19
Less: Preferred stock dividends	—			3,598			0.07			—			949			0.02
Income available to common shareholders (GAAP)	$	81,173		$	60,023		$	1.10		$	91,386		$	9,329		$	0.17

Non-interest income adjustments ⁽¹⁾⁽³⁾:
Loss (gain) on sale of investments	59			44			—			(35		)	(22		)	—

Non-interest expense adjustments ⁽¹⁾⁽³⁾:
Merger-related expense	16,227			12,517			0.23			11,373			8,487			0.16



Compensation-related expense	1,221			928			0.02		1,457		947			0.01
Impairment of long-lived assets, net of (gain) loss on sale	2,074			1,576			0.03		3,177		2,065			0.04
Litigation expense	—			—			—		—		1,228			0.02
Other non-core non-interest expense	(683		)	(520		)	(0.01	)	467		358			0.01
Total non-interest expense adjustments	18,839			14,501			0.27		16,474		13,085			0.24
Income tax expense - impact of the Tax Cuts and Jobs Act	—			—			—		—		51,023			0.94
Income tax expense (benefit) - other	—			173			—		—		(1,237		)	(0.02	)
Core earnings (Non-GAAP)	100,071			74,741			1.37		107,825		72,178			1.33
Provision for credit losses ⁽¹⁾	8,211			6,240					12,825		8,336
Pre-provision earnings, as adjusted (Non-GAAP) ⁽³⁾	$	108,282		$	80,981				$	120,650	$	80,514

(1) Excluding preferred stock dividends, merger-related expense, and litigation expense, after-tax amounts are calculated using a tax rate of 24% in 2018 and 35% in 2017, which approximates the marginal tax rate.
(2) Diluted per share amounts may not appear to foot due to rounding.
(3) Adjustments to GAAP results include certain significant activities or transactions that, in management's opinion, can distort period-to-period comparisons of the Company's performance. These adjustments include, but are not limited to, realized and unrealized gains or losses on former bank-owned real estate, realized gains or losses on the sale of investment securities, merger-related expenses, litigation charges and recoveries, debt prepayment penalties, and gains, losses, and impairment charges on long-lived assets.




	For the Years Ended
	12/31/2018									12/31/2017
	Pre-tax			After-tax			Per share ⁽²⁾			Pre-tax		After-tax			Per share ⁽²⁾
Net income	$	402,527		$	370,249		$	6.63		$	292,879	$	142,413		$	2.77
Less: Preferred stock dividends	—			9,095			0.17			—		9,095			0.18
Income available to common shareholders (GAAP)	$	402,527		$	361,154		$	6.46		$	292,879	$	133,318		$	2.59

Non-interest income adjustments ⁽¹⁾⁽³⁾:
Loss (gain) on sale of investments	49,899			37,923			0.68			148		97			—
Other non-core non-interest income	415			316			—			—		—			—
Total non-interest income adjustments	50,314			38,239			0.68			148		97			—

Non-interest expense adjustments ⁽¹⁾⁽³⁾:
Merger-related expense	31,295			23,919			0.44			40,971		28,566			0.55
Compensation-related expense	4,290			3,261			0.05			3,025		1,966			0.04
Impairment of long-lived assets, net of (gain) loss on sale	10,837			8,236			0.15			6,961		4,525			0.09
Gain on early termination of loss share agreements	(2,708		)	(2,058		)	(0.04		)	—		—			—
Litigation expense	—			—			—			11,692		11,405			0.22
Other non-core non-interest expense	(133		)	(102		)	0.01			844		603			0.01
Total non-interest expense adjustments	43,581			33,256			0.61			63,493		47,065			0.91
Income tax expense (benefit) - impact of the Tax Cuts and Jobs Act	—			(58,745		)	(1.06		)	—		51,023			0.99
Income tax expense (benefit) - other	—			173			—			—		(1,237		)	(0.02		)
Core earnings (Non-GAAP)	496,422			374,077			6.69			356,520		230,266			4.47
Provision for credit losses ⁽¹⁾	40,385			30,692						51,708		33,610
Pre-provision earnings, as adjusted (Non-GAAP) ⁽³⁾	$	536,807		$	404,769					$	408,228	$	263,876

(1) Excluding preferred stock dividends, merger-related expense, and litigation expense, after-tax amounts are calculated using a tax rate of 24% in 2018 and 35% in 2017, which approximates the marginal tax rate.
(2) Diluted per share amounts may not appear to foot due to rounding.
(3) Adjustments to GAAP results include certain significant activities or transactions that, in management's opinion, can distort period-to-period comparisons of the Company's performance. These adjustments include, but are not limited to, realized and unrealized gains or losses on former bank-owned real estate, realized gains or losses on the sale of investment securities, merger-related expenses, litigation charges and recoveries, debt prepayment penalties, and gains, losses, and impairment charges on long-lived assets.



Table 10 - IBERIABANK CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)

	For the Three Months Ended
	12/31/2018			9/30/2018			6/30/2018			3/31/2018			12/31/2017
Net interest income (GAAP)	$	265,021		$	259,225		$	256,113		$	232,889		$	235,502
Taxable equivalent benefit	1,427			1,461			1,449			1,464			2,808
Net interest income (TE) (Non-GAAP) ⁽¹⁾	266,448			260,686			257,562			234,353			238,310

Non-interest income (GAAP) ⁽³⁾	969			53,087			53,940			44,566			52,342
Taxable equivalent benefit	539			463			336			341			683
Non-interest income (TE) (Non-GAAP) ^{(1) (3)}	1,508			53,550			54,276			44,907			53,025
Taxable equivalent revenues (Non-GAAP) ^{(1) (3)}	267,956			314,236			311,838			279,260			291,335
Securities (gains) losses and other non-interest income	50,259			(1		)	(3		)	59			(35		)
Core taxable equivalent revenues (Non-GAAP) ^{(1) (3)}	$	318,215		$	314,235		$	311,835		$	279,319		$	291,300

Total non-interest expense (GAAP) ⁽³⁾	$	168,989		$	169,062		$	196,776		$	188,071		$	183,633
Less: Intangible amortization expense	5,083			5,382			6,111			5,102			4,642
Tangible non-interest expense (Non-GAAP) ^{(2) (3)}	163,906			163,680			190,665			182,969			178,991
Less: Merger-related expense	(238		)	973			14,333			16,227			11,373
Compensation-related expense	184			1,104			1,781			1,221			1,457
Impairment of long-lived assets, net of (gain) loss on sale	64			3,286			5,413			2,074			3,177
Gain on early termination of loss share agreements	—			(2,708		)	—			—			—
Other non-core non-interest expense	2,600			(1,955		)	(95		)	(683		)	467
Core tangible non-interest expense (Non-GAAP) ^{(2) (3)}	$	161,296		$	162,980		$	169,233		$	164,130		$	162,517

Return on average assets (GAAP)	1.70		%	1.34		%	1.01		%	0.92		%	0.15		%
Effect of non-core revenues and expenses	(0.33		)	0.01			0.31			0.21			0.88
Core return on average assets (Non-GAAP)	1.37		%	1.35		%	1.32		%	1.13		%	1.03		%

Efficiency ratio (GAAP) ⁽³⁾	63.5		%	54.1		%	63.5		%	67.8		%	63.8		%
Effect of tax benefit related to tax-exempt income ⁽³⁾	(0.4		)	(0.3		)	(0.4		)	(0.4		)	(0.8		)
Efficiency ratio (TE) (Non-GAAP) ^{(1) (3)}	63.1		%	53.8		%	63.1		%	67.4		%	63.0		%
Effect of amortization of intangibles	(1.9		)	(1.7		)	(1.9		)	(1.8		)	(1.6		)
Effect of non-core items	(10.5		)	(0.2		)	(6.9		)	(6.8		)	(5.6		)
Core tangible efficiency ratio (TE) (Non-GAAP) ^{(1) (2) (3)}	50.7		%	51.9		%	54.3		%	58.8		%	55.8		%

Return on average common equity (GAAP)	13.38		%	10.21		%	7.87		%	6.79		%	1.02		%
Effect of non-core revenues and expenses	(2.63		)	0.06			2.43			1.66			6.90
Core return on average common equity (Non-GAAP)	10.75		%	10.27		%	10.30		%	8.45		%	7.92		%
Effect of intangibles ⁽²⁾	6.23			6.07			6.40			5.38			4.81
Core return on average tangible common equity (Non-GAAP) ⁽²⁾	16.98		%	16.34		%	16.70		%	13.83		%	12.73		%

Total shareholders' equity (GAAP)	$	4,049,428		$	3,942,361		$	3,913,409		$	3,900,907		$	3,696,791
Less: Goodwill and other intangibles	1,315,462			1,305,915			1,314,165			1,332,672			1,271,807
Preferred stock	132,097			132,097			132,097			132,097			132,097
Tangible common equity (Non-GAAP) ⁽²⁾	$	2,601,869		$	2,504,349		$	2,467,147		$	2,436,138		$	2,292,887

Total assets (GAAP)	$	30,826,166		$	30,118,387		$	30,126,162		$	29,472,637		$	27,904,129
Less: Goodwill and other intangibles	1,315,462			1,305,915			1,314,165			1,332,672			1,271,807
Tangible assets (Non-GAAP) ⁽²⁾	$	29,510,704		$	28,812,472		$	28,811,997		$	28,139,965		$	26,632,322
Tangible common equity ratio (Non-GAAP) ⁽²⁾	8.82		%	8.69		%	8.56		%	8.66		%	8.61		%
(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017.
(2) Tangible calculations eliminate the effect of goodwill and acquisition-related intangibles and the corresponding amortization expense on a tax-effected basis where applicable.
(3) Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. On average, the adoption resulted in a reduction of non-interest income and non-interest expense of approximately $2.3 million on a quarterly basis, and had no impact on net income.



	For the Years Ended
	12/31/2018			12/31/2017
Net interest income (GAAP)	$	1,013,248		$	808,846
Taxable equivalent benefit	5,760			10,308
Net interest income (TE) (Non-GAAP) ⁽¹⁾	1,019,008			819,154

Non-interest income (GAAP)⁽³⁾	152,562			202,147
Taxable equivalent benefit	1,677			2,736
Non-interest income (TE) (Non-GAAP) ^{(1) (3)}	154,239			204,883
Taxable equivalent revenues (Non-GAAP) ^{(1) (3)}	1,173,247			1,024,037
Securities (gains) losses and other non-interest income	50,314			148
Core taxable equivalent revenues (Non-GAAP) ^{(1) (3)}	$	1,223,561		$	1,024,185

Total non-interest expense (GAAP) ⁽³⁾	$	722,898		$	666,406
Less: Intangible amortization expense	21,678			12,590
Tangible non-interest expense (Non-GAAP) ^{(2) (3)}	701,220			653,816
Less: Merger-related expense	31,295			40,971
Compensation-related expense	4,290			3,025
Impairment of long-lived assets, net of (gain) loss on sale	10,837			6,961
Gain on early termination of loss share agreements	(2,708		)	—
Litigation expense	—			11,692
Other non-core non-interest expense	(133		)	844
Core tangible non-interest expense (Non-GAAP) ^{(2) (3)}	$	657,639		$	590,323

Return on average assets (GAAP)	1.25		%	0.58		%
Effect of non-core revenues and expenses	0.05			0.40
Core return on average assets (Non-GAAP)	1.30		%	0.98		%

Efficiency ratio (GAAP) ⁽³⁾	62.0		%	65.9		%
Effect of tax benefit related to tax-exempt income ⁽³⁾	(0.4		)	(0.8		)
Efficiency ratio (TE) (Non-GAAP) ^{(1) (3)}	61.6		%	65.1		%
Effect of amortization of intangibles	(1.9		)	(1.3		)
Effect of non-core items	(6.0		)	(6.2		)
Core tangible efficiency ratio (TE) (Non-GAAP) ^{(1) (2) (3)}	53.7		%	57.6		%

Return on average common equity (GAAP)	9.63		%	3.95		%
Effect of non-core revenues and expenses	0.34			2.87
Core return on average common equity (Non-GAAP)	9.97		%	6.82		%
Effect of intangibles ⁽²⁾	6.04			3.04
Core return on average tangible common equity (Non-GAAP) ⁽²⁾	16.01		%	9.86		%

Total shareholders' equity (GAAP)	$	4,049,428		$	3,696,791
Less: Goodwill and other intangibles	1,315,462			1,271,807
Preferred stock	132,097			132,097
Tangible common equity (Non-GAAP) ⁽²⁾	$	2,601,869		$	2,292,887

Total assets (GAAP)	$	30,826,166		$	27,904,129
Less: Goodwill and other intangibles	1,315,462			1,271,807
Tangible assets (Non-GAAP) ⁽²⁾	$	29,510,704		$	26,632,322
Tangible common equity ratio (Non-GAAP) ⁽²⁾	8.82		%	8.61		%
(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21% for 2018 and a rate of 35% for 2017.
(2) Tangible calculations eliminate the effect of goodwill and acquisition-related intangibles and the corresponding amortization expense on a tax-effected basis where applicable.
(3) Certain prior period amounts have been reclassified to conform to the net presentation requirements of ASU No. 2014-09, Revenue from Contracts with Customers, which was adopted effective January 1, 2018. The adoption resulted in a reduction of non-interest income and non-interest expense of approximately $8.9 million in 2017, and had no impact on net income.

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