IBERIABANK Corporation Reports First Quarter Results

Donnerstag, 25.04.2019 13:05 von PR Newswire

PR Newswire

LAFAYETTE, La., April 25, 2019

LAFAYETTE, La., April 25, 2019 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC), holding company of the 132-year-old IBERIABANK (www.iberiabank.com), reported financial results for the first quarter ended March 31, 2019. For the quarter, the Company reported net income available to common shareholders of $96.5 million, or $1.75 diluted earnings per common share ("EPS"). On a non-GAAP basis, EPS excluding non-core revenues and non-core expenses ("Core EPS") in the first quarter of 2019 was $1.72 per common share, compared to $1.37 in the year-ago period, an increase of 26% (refer to press release supplemental tables for a reconciliation of GAAP to non-GAAP metrics).

Daryl G. Byrd, President and Chief Executive Officer, commented, "We are pleased to report another quarter of solid earnings and a very good start to 2019. Our results for the quarter reflect outstanding growth in loans, improvement in fee income, and continued reduction of non-interest expense. We had a lower net interest margin than we anticipated, which I expect to improve in future quarters. We believe the foundation laid in 2018 and in the first quarter sets us up well to deliver strong results in 2019."

Highlights for the first quarter of 2019 and at March 31, 2019:

	For the three months ended
	GAAP						Non-GAAP Core
	1Q19			4Q18			1Q19			4Q18
Earnings Per Common Share	$	1.75		$	2.32		$	1.72		$	1.86
Return on Average Assets	1.32		%	1.70		%	1.29		%	1.37		%
Return on Average Common Equity	9.85		%	13.38		%	9.66		%	10.75		%
Return on Average Tangible Common Equity	N/A			N/A			15.03		%	16.98		%
Efficiency Ratio	52.4		%	63.5		%	53.2		%	52.6		%
Tangible Efficiency Ratio (TE)	N/A			N/A			51.3		%	50.7		%

Strong 1Q19 for both GAAP and Core EPS, improving 59% and 26%, respectively on a year-over-year basis, as a result of excellent loan growth, non-interest income, and continued expense management.
Total loan growth of $448.5 million, or 8% annualized. Loan growth was driven by strong originations and loan prepayments slowing.
The Company's reported and cash net interest margins decreased 22 and 10 basis points on a linked quarter basis, to 3.59% and 3.42%, respectively. The decline in margin was primarily driven by lower recoveries as expected and higher cost of funding. Funding costs increased as the Company realized seasonal declines in lower cost deposits and strong loan growth primarily funded with wholesale funding sources.
Strong growth in non-interest income influenced by the current yield curve.

Mortgage income increased $1.5 million, or 14% on a linked quarter basis and 23% as compared to 1Q18.
The Company realized record swap income of $4.2 million, up 124% on a linked quarter basis.
The linked quarter increase of $51.5 million was primarily driven by $49.8 million in losses on sales of available securities that occurred during 4Q18.

Continued focus on non-interest expense which decreased $10.2 million, or 6% on a linked quarter basis. Core non-interest expense declined $5.1 million, or 3%, from 4Q18.

Year-over-year reduced FTEs by 342, or almost 10%, including employees from the Gibraltar acquisition.
Produced the lowest quarterly level of non-interest expense to average assets over the past 15 years.
Continued improvement in operating leverage.

Credit metrics remained strong and stable. The provision expense rose slightly from the prior quarter to provide adequate reserve coverage of strong loan growth. We see no signs of deterioration in the portfolio.
During 1Q19, the Company repurchased 387,921 common shares at a weighted average price of $77.19 per common share.
On March 19, 2019, the Company announced a first quarter cash dividend equal to $0.43 per common share, payable on April 26, 2019. This equated to a 5% increase to the 4Q18 dividend.

Special Items

On April 4, 2019, the Company issued and sold 4.0 million depositary shares, each representing 1/400th interest in a share of non-cumulative perpetual preferred stock. The Series D preferred stock has an initial coupon equal to 6.100% for a period of five years, and thereafter floats at a rate of LIBOR plus 385.9 basis points. The Company raised approximately $100.0 million in gross proceeds from the transaction. Proceeds from the transaction are currently expected to be used for repurchases of common stock. This re-stacking of capital is expected to provide a few incremental pennies of EPS and enhance the Company's ROTCE by approximately 50 basis points in 2020, based on IBKC's current stock price. The impact of this offering will be immaterial on 2019 earnings.

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

	For the Three Months Ended
	3/31/2019			12/31/2018			*% Change*	3/31/2018			*% Change*
GAAP BASIS:
Income available to common shareholders	$	96,533		$	129,090		(25.2)	$	60,023		60.8
Earnings per common share - diluted	1.75			2.32			(24.6)	1.10			59.1

Average loans and leases, net of unearned income	$	22,599,686		$	22,364,188		1.1	$	20,181,390		12.0
Average total deposits	23,678,400			23,484,576			0.8	21,777,634			8.7
Net interest margin (TE) ⁽¹⁾	3.59		%	3.81		%		3.67		%

Total revenues	$	302,993		$	265,990		13.9	$	277,455		9.2
Total non-interest expense	158,753			168,989			(6.1)	188,071			(15.6)
Efficiency ratio	52.4		%	63.5		%		67.8		%
Return on average assets	1.32			1.70				0.92
Return on average common equity	9.85			13.38				6.79

NON-GAAP BASIS ⁽²⁾:
Core revenues	$	302,993		$	316,249		(4.2)	$	277,514		9.2
Core non-interest expense	161,239			166,379			(3.1)	169,232			(4.7)
Core earnings per common share - diluted	1.72			1.86			(7.5)	1.37			25.5
Core tangible efficiency ratio (TE) ^{(1) (3)}	51.3		%	50.7		%		58.8		%
Core return on average assets	1.29			1.37				1.13
Core return on average common equity	9.66			10.75				8.45
Core return on average tangible common equity	15.03			16.98				13.83
Net interest margin (TE) - cash basis ⁽¹⁾	3.42			3.52				3.42

⁽¹⁾

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21%.

⁽²⁾

See Table 7 and Table 8 for GAAP to Non-GAAP reconciliations.

⁽³⁾

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 decreased $14.5 million, or 5%, on a linked quarter basis. Average loans increased $235.5 million, or 4% annualized, while the associated taxable-equivalent yield decreased 15 basis points. The yield on total earning assets was 6 basis points lower at 4.68% compared to 4.74% in the prior quarter. The decline in loan yield was primarily driven by lower recoveries in the acquired loan portfolio.

Average interest-bearing deposits increased $568.6 million, or 14% annualized, and the cost of interest-bearing deposits rose 17 basis points to 1.40% on a linked quarter basis. Total average interest-bearing liabilities increased by $766.3 million, or 16% annualized, and the cost of interest-bearing liabilities rose 19 basis points to 1.53%. The total cost of funding in the first quarter of 2019 was 1.17%, compared to 1.00% in the prior quarter. The increase in cost of funds was primarily due to an unfavorable funding balance mix shift from lower cost deposits to wholesale borrowings, an upward repricing of remaining deposits, promotional activity in customer time deposits, and brokered wholesale CD issuances. The lower loan yields, along with the increase in cost of funds, resulted in a decrease in the reported and cash net interest margins of 22 and 10 basis points to 3.59% and 3.42%, respectively.

The provision for credit losses totaled $13.8 million compared to $13.1 million in the prior quarter. Asset quality measures remained strong and stable. Net charge-offs to average loans on an annualized basis were 0.13% compared to 0.14% in the prior quarter. Non-performing assets to total assets were 0.58% compared to 0.55% in the prior quarter. The allowance for loan and lease losses to total loans and leases remained unchanged at 0.62% and covered 94% of non-performing loans.

Non-interest income increased $51.5 million, primarily driven by $49.8 million in losses realized on sales of available-for-sale securities during the prior quarter. On a core basis, non-interest income increased $1.3 million, or 2%, driven by higher customer swap commissions of $2.3 million and higher mortgage income of $1.0 million. These increases were partially offset primarily by decreases of $0.8 million in title revenue and $0.6 million in service charges on deposit accounts.

Non-interest expense decreased $10.2 million, or 6%, compared to the linked quarter, primarily driven by a $4.2 million decrease in professional service expenses, a $3.3 million decrease in salaries and employee benefits expenses, and a $1.9 million decrease in credit and other loan related expenses. Non-core expense items resulted in a $2.5 million reduction in GAAP non-interest expense, primarily from interest related to tax refunds received. Refer to Tables 7 and 8 for GAAP to Non-GAAP reconciliations.

Income tax expense increased $76.5 million to $30.3 million when compared to the prior quarter. This increase was primarily attributable to the $65.3 million, non-core, permanent net tax benefit that was recorded in the fourth quarter of 2018 which resulted in a $46.1 million income tax benefit.

On a linked quarter basis, the efficiency ratio improved to 52.4% from 63.5%, primarily due to a decrease in non-interest expense, while the non-GAAP core tangible efficiency ratio was relatively unchanged at 51.3% compared to 50.7%. First quarter operating results reflect a continued focus on expense discipline and revenue enhancement efforts. 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
		3/31/2019			12/31/2018			*% Change*	3/31/2018			*% Change*
PERIOD-END BALANCES:
	Total loans and leases, net of unearned income	$	22,968,295		$	22,519,815		2.0	$	21,706,090		5.8
	Total deposits	24,092,062			23,763,431			1.4	22,971,192			4.9

ASSET QUALITY RATIOS:
	Loans 30-89 days past due and still accruing as a percentage of total loans ⁽¹⁾	0.20		%	0.25		%		0.36		%
	Loans 90 days or more past due and still accruing as a percentage of total loans ⁽¹⁾	0.02			0.01				0.04
	Non-performing assets to total assets ⁽¹⁾⁽²⁾	0.58			0.55				0.64
	Classified assets to total assets ⁽³⁾	1.01			0.98				1.49

CAPITAL RATIOS:
	Tangible common equity ratio (Non-GAAP) ^{(4) (5)}	9.01		%	8.84		%		8.66		%
	Tier 1 leverage ratio ⁽⁶⁾	9.67			9.63				9.97
	Total risk-based capital ratio ⁽⁶⁾	12.33			12.33				12.48

PER COMMON SHARE DATA:
	Book value	$	73.50		$	71.61		2.6	$	66.38		10.7
	Tangible book value (Non-GAAP) ^{(4) (5)}	49.48			47.61			3.9	42.91			15.3
	Closing stock price	71.71			64.28			11.6	78.00			(8.1)
	Cash dividends	0.43			0.41			4.9	0.38			13.2


(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 4 for further detail.
(3)	Classified assets include commercial loans rated substandard or worse, 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 $315 million, $302 million and $439 million at March 31, 2019, December 31, 2018, and March 31, 2018, respectively.
(4)	See Table 7 and Table 8 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 March 31, 2019 are preliminary.

Loans and Other Assets

Total loans increased $448.5 million, or 8% annualized, to $23.0 billion at March 31, 2019. Period-end loan growth during the first quarter of 2019 was strongest in the Energy Group (primarily reserve-based lending), the Corporate Asset Finance Group (equipment financing business), and the Atlanta, South Florida Commercial, and Dallas 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
	3/31/2019		12/31/2018		3/31/2018		$	%	*Annualized*		$	%	3/31/2019		12/31/2018
Legacy loans:
Commercial loans and leases	$	13,047,438	$	12,396,515	$	11,094,464	650,923	5.3	21.3	%	1,952,974	17.6	73.8	%	73.2	%
Residential mortgage loans	2,172,421		2,023,760		1,280,580		148,661	7.3	29.8	%	891,841	69.6	12.3	%	11.9	%
Consumer and other loans	2,463,370		2,529,705		2,538,878		(66,335)	(2.6)	(10.6)	%	(75,508)	(3.0)	13.9	%	14.9	%
Total legacy loans	17,683,229		16,949,980		14,913,922		733,249	4.3	17.5	%	2,769,307	18.6	100.0	%	100.0	%

Acquired loans:
Balance at beginning of period	5,569,835		5,992,144		5,595,030		(422,309)	(7.0)			(25,195)	(0.5)
Loans acquired during the period	—		—		1,465,319		—	—			(1,465,319)	(100.0)
Net paydown activity	(284,769)		(422,309)		(268,181)		137,540	(32.6)			(16,588)	6.2
Total acquired loans	5,285,066		5,569,835		6,792,168		(284,769)	(5.1)			(1,507,102)	(22.2)
Total loans	$	22,968,295	$	22,519,815	$	21,706,090	448,480	2.0			1,262,205	5.8

On an average balance and linked quarter basis, the investment portfolio increased $240.6 million, or 20% annualized, to $5.0 billion, mainly due to purchases of available-for-sale securities and favorable fair value adjustments. On a period-end basis, investment securities were $5.1 billion, or 16% of total assets. Approximately 96% of the investment portfolio is in available-for-sale securities, which experience unrealized losses as interest rates rise. The investment portfolio had an effective duration of 3.0 years at March 31, 2019, down from 3.4 years at December 31, 2018, and a $6.0 million unrealized loss at March 31, 2019, down from a $62.9 million loss at December 31, 2018. The average yield on investment securities increased 29 basis points to 2.90% in the first quarter of 2019. The investment portfolio primarily consists of government agency securities. Municipal securities comprised 7% of total investments at March 31, 2019.

Deposits and Funding

Total deposits increased $328.6 million, or 6% annualized, to $24.1 billion at March 31, 2019. First quarter deposit growth included a $270 million increase in brokered and reciprocal deposits. Deposit growth during the first quarter of 2019 was strongest in the Miami-Dade, Southwest Louisiana, and Palm Beach/Broward markets.

Table D - Period-End Deposits
(Dollars in thousands)
							*Linked Qtr Change*				*Year/Year Change*		Mix
	3/31/2019		12/31/2018		3/31/2018		$	%	*Annualized*		$	%	3/31/2019		12/31/2018
Non-interest-bearing	$	6,448,613	$	6,542,490	$	6,595,495	(93,877)	(1.4)	(5.8)	%	(146,882)	(2.2)	26.8	%	27.5	%
NOW accounts	4,452,966		4,514,113		4,500,181		(61,147)	(1.4)	(5.5)	%	(47,215)	(1.0)	18.5	%	19.0	%
Money market accounts	8,348,509		8,237,291		8,271,969		111,218	1.4	5.5	%	76,540	0.9	34.6	%	34.7	%
Savings accounts	770,754		828,914		874,741		(58,160)	(7.0)	(28.5)	%	(103,987)	(11.9)	3.2	%	3.5	%
Time deposits	4,071,220		3,640,623		2,728,806		430,597	11.8	48.0	%	1,342,414	49.2	16.9	%	15.3	%
Total deposits	$	24,092,062	$	23,763,431	$	22,971,192	328,631	1.4	5.6	%	1,120,870	4.9	100.0	%	100.0	%

Asset Quality

Credit quality remained strong and stable. Non-performing assets to total assets were 0.58% at March 31, 2019, compared to 0.55% in the prior quarter. Loans 30-89 days past due and still accruing decreased $12.0 million, or 21%, compared to the prior quarter and represented 0.20% of total loans and leases, compared to 0.25% in the prior quarter. As a percentage of average loans and leases, annualized net charge-offs were 0.13%, down one basis point compared to the prior quarter.

The allowance for loan and lease losses was $143.0 million, up $2.4 million compared to the prior quarter. As of March 31, 2019, the allowance for loan and lease losses was 0.62% of total loans and leases, unchanged compared to December 31, 2018. The allowance for loan and lease losses covered non-performing loans by 94% compared to 101% in the prior quarter.

Refer to Table 4 - Loans and Asset Quality Data for further information.

Capital Position

At March 31, 2019, the non-GAAP tangible common equity ratio was 9.01%, up 17 basis points compared to December 31, 2018, and the preliminary Tier 1 leverage ratio was 9.67%, up 4 basis points compared to December 31, 2018. The preliminary calculation of the total risk-based capital ratio at March 31, 2019, was 12.33%, flat compared to December 31, 2018.

At March 31, 2019, book value per common share was $73.50, up $1.89 per share, compared to December 31, 2018. Tangible book value per common share was $49.48, up $1.87 per share, compared to December 31, 2018. Based on the closing stock price of the Company's common stock of $77.14 per share on April 24, 2019, this price equated to 1.05 times March 31, 2019 book value per common share and 1.56 times March 31, 2019 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 March 19, 2019, the Company declared a quarterly cash dividend of $0.43 per common share, a 5% increase to the common dividend declared on January 25, 2019. This dividend is payable on April 26, 2019, to shareholders of record as of March 29, 2019.

Preferred Stock. On April 11, 2019, the Company declared a quarterly cash dividend of $0.4125 per depositary share of Series C Preferred Stock that is payable on May 1, 2019 to shareholders of record as of April 21, 2019.

On April 4, 2019, the Company sold 4.0 million depositary shares, each representing 1/400th interest in a share of non-cumulative perpetual preferred stock. The Series D preferred stock has an initial coupon equal to 6.100% for a period of five years, and thereafter floats at a rate of LIBOR plus 385.9 basis points. The Company raised approximately $100.0 million in gross proceeds from the transaction.

Common Stock Repurchase Program. 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 first quarter of 2019, the Company repurchased 387,921 common shares, at a weighted average price of $77.19 per common share. At March 31, 2019, the Company had approximately 1,877,079 remaining shares that may be repurchased under the current Board-approved plan.

2019 Financial Guidance

2019 Guidance
Average Earning Assets		$28.6B ~ $28.9B
Consolidated Loan Growth		5% ~ 7%
Consolidated Deposit Growth		5% ~ 7%
Provision Expense		$45MM ~ $50MM
Non-Interest Income (Core Basis)		$215MM ~ $225MM
Non-Interest Expense (Core Basis)		$675MM ~ $690MM
Net Interest Margin		3.55% ~ 3.65%
Tax Rate		23.0% ~ 24.0%
Preferred Dividend		$17.0MM ~ $18.0MM
Share Repurchase Activity		$230MM ~ $240MM
Credit Quality		Stable

Updated guidance includes no interest rate increases in 2019 and interest rate curve as of March 31, 2019.
Preferred Dividend range increases to reflect new Series D preferred dividends.
We expect to buy common shares with the proceeds of our recent preferred stock offering, which is included in the guide.

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, Series C Preferred Stock, and Series D Preferred Stock also trade on the NASDAQ Global Select Market under the symbols "IBKCP", "IBKCO", and "IBKCN", respectively. The Company's common stock market capitalization was approximately $4.2 billion, based on the NASDAQ Global Select Market closing stock price on April 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 Thursday, April 25, 2019, beginning at 8:30 a.m. Central Time by dialing 1-888-317-6003. The confirmation code for the call is 6428111. A replay of the call will be available until midnight Central Time on May 2, 2019, by dialing 1-877-344-7529. The confirmation code for the replay is 10128769. 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, 2018, 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:		3/31/2019			12/31/2018			*% Change*	3/31/2018			*% Change*
	Net interest income	$	250,484		$	265,021		(5.5)	$	232,889		7.6
	Net interest income (TE) ⁽¹⁾	251,833			266,448			(5.5)	234,353			7.5
	Total revenues	302,993			265,990			13.9	277,455			9.2
	Provision for credit losses	13,763			13,094			5.1	8,211			67.6
	Non-interest expense	158,753			168,989			(6.1)	188,071			(15.6)
	Net income available to common shareholders	96,533			129,090			(25.2)	60,023			60.8

PER COMMON SHARE DATA:
	Earnings available to common shareholders - basic	$	1.76		$	2.33		(24.5)	$	1.11		58.6
	Earnings available to common shareholders - diluted	1.75			2.32			(24.6)	1.10			59.1
	Core earnings (Non-GAAP) ⁽²⁾	1.72			1.86			(7.5)	1.37			25.5
	Book value	73.50			71.61			2.6	66.38			10.7
	Tangible book value (Non-GAAP)^{(2) (3)}	49.48			47.61			3.9	42.91			15.3
	Closing stock price	71.71			64.28			11.6	78.00			(8.1)
	Cash dividends	0.43			0.41			4.9	0.38			13.2

KEY RATIOS AND OTHER DATA ⁽⁶⁾:
	Net interest margin (TE) ⁽¹⁾	3.59		%	3.81		%		3.67		%
	Efficiency ratio	52.4			63.5				67.8
	Core tangible efficiency ratio (TE) (Non-GAAP) ^{(1) (2) (3)}	51.3			50.7				58.8
	Return on average assets	1.32			1.70				0.92
	Return on average common equity	9.85			13.38				6.79
	Core return on average tangible common equity (Non-GAAP) ⁽²⁾⁽³⁾	15.03			16.98				13.83
	Effective tax rate	23.3			(55.0)				21.6
	Full-time equivalent employees	3,384			3,403				3,726

CAPITAL RATIOS:
	Tangible common equity ratio (Non-GAAP) ^{(2) (3)}	9.01		%	8.84		%		8.66		%
	Tangible common equity to risk-weighted assets ⁽³⁾	10.60			10.43				10.27
	Tier 1 leverage ratio ⁽⁴⁾	9.67			9.63				9.97
	Common equity Tier 1 (CET 1) ratio ⁽⁴⁾	10.73			10.72				10.77
	Tier 1 capital ratio ⁽⁴⁾	11.25			11.25				11.32
	Total risk-based capital ratio ⁽⁴⁾	12.33			12.33				12.48
	Common stock dividend payout ratio	24.3			17.8				36.0
	Classified assets to Tier 1 capital ⁽⁷⁾	11.2			10.7				16.3

ASSET QUALITY RATIOS:
	Non-performing assets to total assets ⁽⁵⁾	0.58		%	0.55		%		0.64		%
	ALLL to total loans and leases	0.62			0.62				0.67
	Net charge-offs to average loans (annualized)	0.13			0.14				0.09
	Non-performing assets to total loans and OREO ⁽⁵⁾	0.79			0.75				0.87


(1)	Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21%.
(2)	See Table 7 and Table 8 for GAAP to Non-GAAP reconciliations.
(3)	Tangible calculations eliminate the effect of goodwill and acquisition-related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable.
(4)	Regulatory capital ratios as of March 31, 2019 are preliminary.
(5)	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.
(6)	All ratios are calculated on an annualized basis for the periods indicated.
(7)	Classified assets include commercial loans rated substandard or worse, 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*
	3/31/2019		12/31/2018		$	%	9/30/2018		6/30/2018		3/31/2018		$	%
Interest income	$	326,084	$	330,196	(4,112)	(1.2)	$	317,067	$	303,823	$	270,543	55,541	20.5
Interest expense	75,600		65,175		10,425	16.0	57,842		47,710		37,654		37,946	100.8
Net interest income	250,484		265,021		(14,537)	(5.5)	259,225		256,113		232,889		17,595	7.6
Provision for credit losses	13,763		13,094		669	5.1	11,384		7,696		8,211		5,552	67.6
Net interest income after provision for credit losses	236,721		251,927		(15,206)	(6.0)	247,841		248,417		224,678		12,043	5.4
Mortgage income	11,849		10,379		1,470	14.2	12,729		13,721		9,595		2,254	23.5
Service charges on deposit accounts	12,810		13,425		(615)	(4.6)	13,520		12,950		12,908		(98)	(0.8)
Title revenue	5,225		5,996		(771)	(12.9)	6,280		6,846		5,027		198	3.9
Broker commissions	1,953		1,951		2	0.1	2,627		2,396		2,221		(268)	(12.1)
ATM/debit card fee income	2,582		2,267		315	13.9	2,470		2,925		2,633		(51)	(1.9)
Income from bank owned life insurance	1,797		2,023		(226)	(11.2)	1,744		1,261		1,282		515	40.2
(Loss) gain on sale of available-for-sale securities	—		(49,844)		49,844	100.0	—		3		(59)		59	100.0
Trust department income	4,167		4,319		(152)	(3.5)	3,993		4,243		3,426		741	21.6
Other non-interest income	12,126		10,453		1,673	16.0	9,724		9,595		7,533		4,593	61.0
Total non-interest income	52,509		969		51,540	5,318.9	53,087		53,940		44,566		7,943	17.8
Salaries and employee benefits	98,296		101,551		(3,255)	(3.2)	101,159		107,445		104,586		(6,290)	(6.0)
Occupancy and equipment	18,564		18,379		185	1.0	18,889		19,931		20,047		(1,483)	(7.4)
Amortization of acquisition intangibles	5,009		5,083		(74)	(1.5)	5,382		6,111		5,102		(93)	(1.8)
Computer services expense	9,157		8,942		215	2.4	9,036		9,309		12,393		(3,236)	(26.1)
Professional services	4,450		8,628		(4,178)	(48.4)	5,519		7,160		7,391		(2,941)	(39.8)
Credit and other loan related expense	2,859		4,776		(1,917)	(40.1)	4,830		5,089		4,393		(1,534)	(34.9)
Other non-interest expense	20,418		21,630		(1,212)	(5.6)	24,247		41,731		34,159		(13,741)	(40.2)
Total non-interest expense	158,753		168,989		(10,236)	(6.1)	169,062		196,776		188,071		(29,318)	(15.6)
Income before income taxes	130,477		83,907		46,570	55.5	131,866		105,581		81,173		49,304	60.7
Income tax expense (benefit)	30,346		(46,132)		76,478	165.8	30,401		30,457		17,552		12,794	72.9
Net income	100,131		130,039		(29,908)	(23.0)	101,465		75,124		63,621		36,510	57.4
Less: Preferred stock dividends	3,598		949		2,649	279.1	3,599		949		3,598		—	—
Net income available to common shareholders	$	96,533	$	129,090	(32,557)	(25.2)	$	97,866	$	74,175	$	60,023	36,510	60.8

Income available to common shareholders - basic	$	96,533	$	129,090	(32,557)	(25.2)	$	97,866	$	74,175	$	60,023	36,510	60.8
Less: Earnings allocated to unvested restricted stock	933		1,214		(281)	(23.1)	908		767		639		294	46.0
Earnings allocated to common shareholders	$	95,600	$	127,876	(32,276)	(25.2)	$	96,958	$	73,408	$	59,384	36,216	61.0

Earnings per common share - basic	$	1.76	$	2.33	(0.57)	(24.5)	$	1.74	$	1.31	$	1.11	0.65	58.6

Earnings per common share - diluted	1.75		2.32		(0.57)	(24.6)	1.73		1.30		1.10		0.65	59.1
Impact of non-core items (Non-GAAP)⁽¹⁾	(0.03)		(0.46)		0.43	93.5	0.01		0.41		0.27		(0.30)	(111.1)
Earnings per share - diluted, excluding non-core items (Non-GAAP)⁽¹⁾	$	1.72	$	1.86	(0.14)	(7.5)	$	1.74	$	1.71	$	1.37	0.35	25.5

NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
Weighted average common shares outstanding - basic	54,177		54,892		(715)	(1.3)	55,571		55,931		53,616		561	1.0
Weighted average common shares outstanding - diluted	54,539		55,215		(676)	(1.2)	55,945		56,287		53,967		572	1.1
Book value shares (period end)	54,551		54,796		(245)	(0.4)	56,007		56,390		56,779		(2,228)	(3.9)

⁽¹⁾

See Table 7 and Table 8 for GAAP to Non-GAAP reconciliations.

TABLE 3 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

PERIOD-END BALANCES					*Linked Qtr Change*								*Year/Year Change*
ASSETS	3/31/2019		12/31/2018		$	%	9/30/2018		6/30/2018		3/31/2018		$	%
Cash and due from banks	$	280,680	$	294,186	(13,506)	(4.6)	$	291,083	$	299,268	$	253,527	27,153	10.7
Interest-bearing deposits in other banks	391,217		396,267		(5,050)	(1.3)	184,852		428,120		310,565		80,652	26.0
Total cash and cash equivalents	671,897		690,453		(18,556)	(2.7)	475,935		727,388		564,092		107,805	19.1
Investment securities available for sale	4,873,778		4,783,579		90,199	1.9	4,634,124		4,650,915		4,542,486		331,292	7.3
Investment securities held to maturity	198,958		207,446		(8,488)	(4.1)	213,561		221,030		224,241		(25,283)	(11.3)
Total investment securities	5,072,736		4,991,025		81,711	1.6	4,847,685		4,871,945		4,766,727		306,009	6.4
Mortgage loans held for sale	128,451		107,734		20,717	19.2	42,976		78,843		110,348		18,103	16.4
Loans and leases, net of unearned income	22,968,295		22,519,815		448,480	2.0	22,343,906		22,075,783		21,706,090		1,262,205	5.8
Allowance for loan and lease losses	(142,966)		(140,571)		(2,395)	1.7	(136,950)		(136,576)		(144,527)		1,561	(1.1)
Loans and leases, net	22,825,329		22,379,244		446,085	2.0	22,206,956		21,939,207		21,561,563		1,263,766	5.9
Premises and equipment, net	297,342		300,507		(3,165)	(1.1)	304,605		326,213		329,454		(32,112)	(9.7)
Goodwill and other intangible assets	1,319,992		1,324,269		(4,277)	(0.3)	1,313,478		1,320,664		1,338,573		(18,581)	(1.4)
Other assets	944,442		1,039,783		(95,341)	(9.2)	926,752		861,902		801,880		142,562	17.8
Total assets	$	31,260,189	$	30,833,015	427,174	1.4	$	30,118,387	$	30,126,162	$	29,472,637	1,787,552	6.1

LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest-bearing deposits	$	6,448,613	$	6,542,490	(93,877)	(1.4)	$	6,544,926	$	6,814,441	$	6,595,495	(146,882)	(2.2)
NOW accounts	4,452,966		4,514,113		(61,147)	(1.4)	4,247,533		4,453,152		4,500,181		(47,215)	(1.0)
Savings and money market accounts	9,119,263		9,066,205		53,058	0.6	9,159,036		9,318,331		9,146,710		(27,447)	(0.3)
Time deposits	4,071,220		3,640,623		430,597	11.8	3,241,951		2,844,534		2,728,806		1,342,414	49.2
Total deposits	24,092,062		23,763,431		328,631	1.4	23,193,446		23,430,458		22,971,192		1,120,870	4.9
Short-term borrowings	845,000		1,167,000		(322,000)	(27.6)	790,000		595,000		375,000		470,000	125.3
Securities sold under agreements to repurchase	261,131		315,882		(54,751)	(17.3)	452,719		459,213		525,496		(264,365)	(50.3)
Trust preferred securities	120,110		120,110		—	—	120,110		120,110		120,110		—	—
Other long-term debt	1,355,345		1,046,041		309,304	29.6	1,346,700		1,318,504		1,329,192		26,153	2.0
Other liabilities	444,710		364,274		80,436	22.1	273,051		289,468		250,740		193,970	77.4
Total liabilities	27,118,358		26,776,738		341,620	1.3	26,176,026		26,212,753		25,571,730		1,546,628	6.0
Total shareholders' equity	4,141,831		4,056,277		85,554	2.1	3,942,361		3,913,409		3,900,907		240,924	6.2
Total liabilities and shareholders' equity	$	31,260,189	$	30,833,015	427,174	1.4	$	30,118,387	$	30,126,162	$	29,472,637	1,787,552	6.1

TABLE 3 Continued - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

AVERAGE BALANCES					*Linked Qtr Change*								*Year/Year Change*
ASSETS	3/31/2019		12/31/2018		$	%	9/30/2018		6/30/2018		3/31/2018		$	%
Cash and due from banks	$	291,659	$	281,509	10,150	3.6	$	279,918	$	296,907	$	308,319	(16,660)	(5.4)
Interest-bearing deposits in other banks	332,638		385,619		(52,981)	(13.7)	259,455		392,906		486,298		(153,660)	(31.6)
Total cash and cash equivalents	624,297		667,128		(42,831)	(6.4)	539,373		689,813		794,617		(170,320)	(21.4)
Investment securities available for sale	4,816,855		4,567,564		249,291	5.5	4,673,454		4,629,177		4,544,836		272,019	6.0
Investment securities held to maturity	202,601		211,333		(8,732)	(4.1)	216,419		222,764		226,229		(23,628)	(10.4)
Total investment securities	5,019,456		4,778,897		240,559	5.0	4,889,873		4,851,941		4,771,065		248,391	5.2
Mortgage loans held for sale	95,588		63,033		32,555	51.6	87,823		72,917		109,027		(13,439)	(12.3)
Loans and leases, net of unearned income	22,599,686		22,364,188		235,498	1.1	22,162,373		21,830,720		20,181,390		2,418,296	12.0
Allowance for loan and lease losses	(140,915)		(138,675)		(2,240)	1.6	(139,075)		(145,565)		(144,295)		3,380	(2.3)
Loans and leases, net	22,458,771		22,225,513		233,258	1.0	22,023,298		21,685,155		20,037,095		2,421,676	12.1
Premises and equipment, net	299,741		302,956		(3,215)	(1.1)	315,259		327,686		331,640		(31,899)	(9.6)
Goodwill and other intangible assets	1,322,288		1,318,200		4,088	0.3	1,316,527		1,338,420		1,281,598		40,690	3.2
Other assets	1,013,359		977,740		35,619	3.6	874,078		804,920		807,177		206,182	25.5
Total assets	$	30,833,500	$	30,333,467	500,033	1.6	$	30,046,231	$	29,770,852	$	28,132,219	2,701,281	9.6

LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest-bearing deposits	$	6,271,313	$	6,646,071	(374,758)	(5.6)	$	6,684,343	$	6,795,878	$	6,278,507	(7,194)	(0.1)
NOW accounts	4,458,634		4,212,304		246,330	5.8	4,296,392		4,494,064		4,363,557		95,077	2.2
Savings and money market accounts	9,089,099		9,169,184		(80,085)	(0.9)	9,237,614		9,146,302		8,664,085		425,014	4.9
Time deposits	3,859,354		3,457,017		402,337	11.6	3,023,180		2,719,627		2,471,485		1,387,869	56.2
Total deposits	23,678,400		23,484,576		193,824	0.8	23,241,529		23,155,871		21,777,634		1,900,766	8.7
Short-term borrowings	859,576		602,593		256,983	42.6	820,087		609,965		506,056		353,520	69.9
Securities sold under agreements to repurchase	291,643		386,563		(94,920)	(24.6)	376,078		427,508		477,862		(186,219)	(39.0)
Trust preferred securities	120,110		120,110		—	—	120,110		120,110		120,110		—	—
Other long-term debt	1,343,752		1,308,086		35,666	2.7	1,260,900		1,261,515		1,257,213		86,539	6.9
Other liabilities	434,516		470,501		(35,985)	(7.6)	292,445		281,820		275,869		158,647	57.5
Total liabilities	26,727,997		26,372,429		355,568	1.3	26,111,149		25,856,789		24,414,744		2,313,253	9.5
Total shareholders' equity	4,105,503		3,961,038		144,465	3.6	3,935,082		3,914,063		3,717,475		388,028	10.4
Total liabilities and shareholders' equity	$	30,833,500	$	30,333,467	500,033	1.6	$	30,046,231	$	29,770,852	$	28,132,219	2,701,281	9.6

Table 4 - IBERIABANK CORPORATION
LOANS AND ASSET QUALITY DATA
(Dollars in thousands)

							*Linked Qtr Change*											*Year/Year Change*
LOANS	3/31/2019			12/31/2018			$	%	9/30/2018			6/30/2018			3/31/2018			$	%
Commercial loans and leases:
Real estate- construction	$	1,219,647		$	1,196,366		23,281	1.9	$	1,127,988		$	1,183,367		$	1,199,625		20,022	1.7
Real estate- owner-occupied ⁽¹⁾	2,408,079			2,395,822			12,257	0.5	2,458,964			2,455,685			2,449,513			(41,434)	(1.7)
Real estate- non-owner occupied	6,147,864			5,796,117			351,747	6.1	5,794,931			5,653,252			5,599,813			548,051	9.8
Commercial and industrial ⁽⁶⁾	5,852,568			5,737,017			115,551	2.0	5,581,040			5,512,416			5,325,682			526,886	9.9
Total commercial loans and leases	15,628,158			15,125,322			502,836	3.3	14,962,923			14,804,720			14,574,633			1,053,525	7.2

Residential mortgage loans	4,415,267			4,359,156			56,111	1.3	4,300,163			4,124,538			3,971,067			444,200	11.2

Consumer and other loans:
Home equity	2,220,648			2,304,694			(84,046)	(3.6)	2,350,176			2,410,617			2,421,186			(200,538)	(8.3)
Other	704,222			730,643			(26,421)	(3.6)	730,644			735,908			739,204			(34,982)	(4.7)
Total consumer and other loans	2,924,870			3,035,337			(110,467)	(3.6)	3,080,820			3,146,525			3,160,390			(235,520)	(7.5)
Total loans and leases	$	22,968,295		$	22,519,815		448,480	2.0	$	22,343,906		$	22,075,783		$	21,706,090		1,262,205	5.8

Allowance for loan and lease losses ⁽²⁾	$	(142,966)		$	(140,571)		(2,395)	1.7	$	(136,950)		$	(136,576)		$	(144,527)		1,561	(1.1)
Loans and leases, net	22,825,329			22,379,244			446,085	2.0	22,206,956			21,939,207			21,561,563			1,263,766	5.9

Reserve for unfunded commitments	(15,981)			(14,830)			(1,151)	7.8	(14,721)			(14,433)			(13,432)			(2,549)	19.0
Allowance for credit losses	(158,947)			(155,401)			(3,546)	2.3	(151,671)			(151,009)			(157,959)			(988)	0.6

ASSET QUALITY DATA
Non-accrual loans ⁽³⁾	$	148,056		$	137,184		10,872	7.9	$	143,595		$	131,155		$	153,975		(5,919)	(3.8)
Other real estate owned and foreclosed assets	30,606			30,394			212	0.7	32,418			22,267			27,117			3,489	12.9
Accruing loans more than 90 days past due ⁽³⁾	4,111			2,128			1,983	93.2	12,452			9,314			8,288			(4,177)	(50.4)
Total non-performing assets ⁽³⁾⁽⁴⁾	$	182,773		$	169,706		13,067	7.7	$	188,465		$	162,736		$	189,380		(6,607)	(3.5)

Loans 30-89 days past due ⁽³⁾	$	45,334		$	57,332		(11,998)	(20.9)	$	70,624		$	43,159		$	78,293		(32,959)	(42.1)

Non-performing assets to total assets ⁽³⁾⁽⁴⁾	0.58		%	0.55		%			0.63		%	0.54		%	0.64		%
Non-performing assets to total loans and OREO⁽³⁾⁽⁴⁾	0.79			0.75					0.84			0.74			0.87
ALLL to non-performing loans ⁽³⁾⁽⁵⁾	94.0			100.9					87.8			97.2			89.1
ALLL to non-performing assets ⁽³⁾⁽⁴⁾	78.2			82.8					72.7			83.9			76.3
ALLL to total loans and leases	0.62			0.62					0.61			0.62			0.67

Quarter-to-date charge-offs	$	8,918		$	10,806		(1,888)	(17.5)	$	12,006		$	13,618		$	9,116		(198)	(2.2)
Quarter-to-date recoveries	(1,586)			(3,097)			1,511	(48.8)	(3,049)			(1,968)			(4,813)			3,227	(67.0)
Quarter-to-date net charge-offs	$	7,332		$	7,709		(377)	(4.9)	$	8,957		$	11,650		$	4,303		3,029	70.4

Net charge-offs to average loans (annualized)	0.13		%	0.14		%			0.16		%	0.21		%	0.09		%


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

	For the Three Months Ended
	3/31/2019						12/31/2018						*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	$	15,253,655	$	194,510	5.19	%	$	14,978,169	$	196,881	5.24	%	(5)
Residential mortgage loans	4,385,634		47,829		4.36		4,345,811		53,836		4.96		(60)
Consumer and other loans	2,960,397		42,540		5.83		3,040,208		44,275		5.78		5
Total loans and leases	22,599,686		284,879		5.11		22,364,188		294,992		5.26		(15)
Mortgage loans held for sale	95,588		1,054		4.41		63,033		721		4.58		(17)
Investment securities⁽²⁾	5,052,922		36,125		2.90		4,782,844		30,559		2.61		29
Other earning assets	533,745		4,026		3.06		581,673		3,924		2.68		38
Total earning assets	28,281,941		326,084		4.68		27,791,738		330,196		4.74		(6)
Allowance for loan and lease losses	(140,915)						(138,675)
Non-earning assets	2,692,474						2,680,404
Total assets	$	30,833,500					$	30,333,467

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
NOW accounts	$	4,458,634	$	11,396	1.04	%	$	4,212,304	$	9,420	0.89	%	15
Savings and money market accounts	9,089,099		28,762		1.28		9,169,184		26,062		1.13		15
Time deposits	3,859,354		20,077		2.11		3,457,017		16,666		1.91		20
Total interest-bearing deposits⁽³⁾	17,407,087		60,235		1.40		16,838,505		52,148		1.23		17
Short-term borrowings	1,151,219		5,716		2.01		989,156		4,104		1.65		36
Long-term debt	1,463,862		9,649		2.67		1,428,196		8,923		2.48		19
Total interest-bearing liabilities	20,022,168		75,600		1.53		19,255,857		65,175		1.34		19
Non-interest-bearing deposits	6,271,313						6,646,071
Non-interest-bearing liabilities	434,516						470,501
Total liabilities	26,727,997						26,372,429
Total shareholders' equity	4,105,503						3,961,038
Total liabilities and shareholders' equity	$	30,833,500					$	30,333,467

Net interest income/Net interest spread			$	250,484	3.15	%			$	265,021	3.40	%	(25)
Taxable equivalent benefit			1,349		0.02				1,427		0.02		—
Net interest income (TE)/Net interest margin (TE) ⁽¹⁾			$	251,833	3.59	%			$	266,448	3.81	%	(22)

(1)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21%.

(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 March 31, 2019 and December 31, 2018 were 1.03% and 0.88%, respectively.

TABLE 5 Continued - IBERIABANK CORPORATION
QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES
(Dollars in thousands)

	For the Three Months Ended
	9/30/2018						6/30/2018						3/31/2018
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	$	14,825,572	$	191,014	5.13	%	$	14,631,985	$	178,830	4.92	%	$	14,087,635	$	164,660	4.76	%
Residential mortgage loans	4,230,471		48,145		4.55		4,041,259		47,215		4.67		3,151,775		34,494		4.38
Consumer and other loans	3,106,330		43,966		5.62		3,157,476		44,431		5.64		2,941,980		38,915		5.36
Total loans and leases	22,162,373		283,125		5.09		21,830,720		270,476		4.98		20,181,390		238,069		4.79
Mortgage loans held for sale	87,823		1,037		4.72		72,917		836		4.59		109,027		1,154		4.23
Investment securities⁽²⁾	5,016,163		29,793		2.43		4,958,769		29,325		2.42		4,843,448		28,094		2.38
Other earning assets	456,120		3,112		2.71		580,477		3,186		2.20		679,902		3,226		1.92
Total earning assets	27,722,479		317,067		4.57		27,442,883		303,823		4.46		25,813,767		270,543		4.26
Allowance for loan and lease losses	(139,075)						(145,565)						(144,295)
Non-earning assets	2,462,827						2,473,534						2,462,747
Total assets	$	30,046,231					$	29,770,852					$	28,132,219

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
NOW accounts	$	4,296,392	$	8,841	0.82	%	$	4,494,064	$	8,620	0.77	%	$	4,363,557	$	7,081	0.66	%
Savings and money market accounts	9,237,614		23,076		0.99		9,146,302		18,434		0.81		8,664,085		14,579		0.68
Time deposits	3,023,180		12,484		1.64		2,719,627		9,105		1.34		2,471,485		6,584		1.08
Total interest-bearing deposits⁽³⁾	16,557,186		44,401		1.06		16,359,993		36,159		0.89		15,499,127		28,244		0.74
Short-term borrowings	1,196,165		4,727		1.57		1,037,473		3,327		1.29		983,918		2,524		1.04
Long-term debt	1,381,010		8,714		2.50		1,381,625		8,224		2.39		1,377,323		6,886		2.03
Total interest-bearing liabilities	19,134,361		57,842		1.20		18,779,091		47,710		1.02		17,860,368		37,654		0.86
Non-interest-bearing deposits	6,684,343						6,795,878						6,278,507
Non-interest-bearing liabilities	292,445						281,820						275,869
Total liabilities	26,111,149						25,856,789						24,414,744
Total shareholders' equity	3,935,082						3,914,063						3,717,475
Total liabilities and shareholders' equity	$	30,046,231					$	29,770,852					$	28,132,219

Net interest income/Net interest spread			$	259,225	3.37	%			$	256,113	3.44	%			$	232,889	3.40	%
Taxable equivalent benefit			1,461		0.02				1,449		0.02				1,464		0.02
Net interest income (TE)/Net interest margin (TE)⁽¹⁾			$	260,686	3.74	%			$	257,562	3.76	%			$	234,353	3.67	%

(1)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21%.

(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 September 30, 2018, June 30, 2018, and March 31, 2018, were 0.76%, 0.63% and 0.53%, respectively.

Table 6 - IBERIABANK CORPORATION
LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS
(Dollars in millions)

	For the Three Months Ended
	3/31/2019						12/31/2018						9/30/2018						6/30/2018						3/31/2018
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	$	213	$	17,192	5.02	%	$	209	$	16,616	4.99	%	$	193	$	15,957	4.80	%	$	179	$	15,217	4.73	%	$	166	$	14,556	4.61	%
Acquired loans	72		5,408		5.35		86		5,748		5.97		90		6,205		5.78		91		6,614		5.51		72		5,625		5.20
Total loans	$	285	$	22,600	5.10	%	$	295	$	22,364	5.24	%	$	283	$	22,162	5.08	%	$	270	$	21,831	4.97	%	$	238	$	20,181	4.77	%

	3/31/2019						12/31/2018						9/30/2018						6/30/2018						3/31/2018
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	(11)		136		(0.92)		(19)		144		(1.46)		(17)		144		(1.23)		(16)		142		(1.12)		(15)		142		(1.16)
Total loans	$	(11)	$	136	(0.22)	%	$	(19)	$	144	(0.38)	%	$	(17)	$	144	(0.35)	%	$	(16)	$	142	(0.34)	%	$	(15)	$	142	(0.32)	%

	3/31/2019						12/31/2018						9/30/2018						6/30/2018						3/31/2018
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	$	213	$	17,192	5.02	%	$	209	$	16,616	4.99	%	$	193	$	15,957	4.80	%	$	179	$	15,217	4.73	%	$	166	$	14,556	4.61	%
Acquired loans	61		5,544		4.43		67		5,892		4.51		73		6,349		4.55		75		6,756		4.39		57		5,767		4.04
Total loans	$	274	$	22,736	4.88	%	$	276	$	22,508	4.86	%	$	266	$	22,306	4.73	%	$	254	$	21,973	4.63	%	$	223	$	20,323	4.45	%

Table 7 - IBERIABANK CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share amounts)

	For the Three Months Ended
	3/31/2019						12/31/2018						9/30/2018
	Pre-tax		After-tax		Per share ⁽²⁾		Pre-tax		After-tax		Per share ⁽²⁾		Pre-tax		After-tax		Per share ⁽²⁾
Net income	$	130,477	$	100,131	$	1.82	$	83,907	$	130,039	$	2.34	$	131,866	$	101,465	$	1.79
Less: Preferred stock dividends	—		3,598		0.07		—		949		0.02		—		3,599		0.06
Income available to common shareholders (GAAP)	$	130,477	$	96,533	$	1.75	$	83,907	$	129,090	$	2.32	$	131,866	$	97,866	$	1.73

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

Non-interest expense adjustments⁽¹⁾⁽³⁾:
Merger-related expense	(334)		(254)		—		(238)		(353)		—		973		743		0.01
Compensation-related expense	(9)		(7)		—		184		140		—		1,104		839		0.01
Impairment of long-lived assets, net of (gain) loss on sale	986		749		0.01		64		49		—		3,286		2,497		0.05
Gain on early termination of loss share agreements	—		—		—		—		—		—		(2,708)		(2,058)		(0.04)
Other non-core non-interest expense	(3,129)		(2,378)		(0.04)		2,600		1,976		0.04		(1,955)		(1,486)		(0.02)
Total non-interest expense adjustments	(2,486)		(1,890)		(0.03)		2,610		1,812		0.04		700		535		0.01
Income tax expense (benefit) - impact of the Tax Cuts and Jobs Act	—		—		—		—		(65,317)		(1.18)		—		—		—
Core earnings (Non-GAAP)	127,991		94,643		1.72		136,776		103,783		1.86		132,565		98,400		1.74
Provision for credit losses ⁽¹⁾	13,763		10,460				13,094		9,951				11,384		8,652
Pre-provision earnings, as adjusted (Non-GAAP) ⁽³⁾	$	141,754	$	105,103			$	149,870	$	113,734			$	143,949	$	107,052



	For the Three Months Ended
	6/30/2018						3/31/2018
	Pre-tax		After-tax		Per share ⁽²⁾		Pre-tax		After-tax		Per share ⁽²⁾
Net income	$	105,581	$	75,124	$	1.32	$	81,173	$	63,621	$	1.17
Less: Preferred stock dividends	—		949		0.02		—		3,598		0.07
Income available to common shareholders (GAAP)	$	105,581	$	74,175	$	1.30	$	81,173	$	60,023	$	1.10

Non-interest income adjustments ⁽¹⁾⁽³⁾:
(Gain) loss on sale of investments	(3)		(2)		—		59		44		—

Non-interest expense adjustments ⁽¹⁾⁽³⁾:
Merger-related expense	14,333		11,012		0.20		16,227		12,517		0.23
Compensation-related expense	1,781		1,354		0.02		1,221		928		0.02
Impairment of long-lived assets, net of (gain) loss on sale	5,413		4,114		0.07		2,074		1,576		0.03
Other non-core non-interest expense	(95)		(72)		—		(683)		(520)		(0.01)
Total non-interest expense adjustments	21,432		16,408		0.29		18,839		14,501		0.27
Income tax expense - impact of the Tax Cuts and Jobs Act	—		6,572		0.12		—		—		—
Income tax expense (benefit) - other	—		—		—		—		173		—
Core earnings (Non-GAAP)	127,010		97,153		1.71		100,071		74,741		1.37
Provision for credit losses ⁽¹⁾	7,696		5,849				8,211		6,240
Pre-provision earnings, as adjusted (Non-GAAP) ⁽³⁾	$	134,706	$	103,002			$	108,282	$	80,981

(1)

Excluding preferred stock dividends and merger-related expense, after-tax amounts are calculated using a tax rate of 24%, 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, and gains, losses, and impairment charges on long-lived assets.

Table 8 - IBERIABANK CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)

	For the Three Months Ended
	3/31/2019			12/31/2018			9/30/2018			6/30/2018			3/31/2018
Net interest income (GAAP)	$	250,484		$	265,021		$	259,225		$	256,113		$	232,889
Taxable equivalent benefit	1,349			1,427			1,461			1,449			1,464
Net interest income (TE) (Non-GAAP) ⁽¹⁾	251,833			266,448			260,686			257,562			234,353

Non-interest income (GAAP)	52,509			969			53,087			53,940			44,566
Taxable equivalent benefit	478			539			463			336			341
Non-interest income (TE) (Non-GAAP) ⁽¹⁾	52,987			1,508			53,550			54,276			44,907
Taxable equivalent revenues (Non-GAAP) ⁽¹⁾	304,820			267,956			314,236			311,838			279,260
Securities (gains) losses and other non-interest income	—			50,259			(1)			(3)			59
Core taxable equivalent revenues (Non-GAAP) ⁽¹⁾	$	304,820		$	318,215		$	314,235		$	311,835		$	279,319

Total non-interest expense (GAAP)	$	158,753		$	168,989		$	169,062		$	196,776		$	188,071
Less: Intangible amortization expense	5,009			5,083			5,382			6,111			5,102
Tangible non-interest expense (Non-GAAP) ⁽²⁾	153,744			163,906			163,680			190,665			182,969
Less: Merger-related expense	(334)			(238)			973			14,333			16,227
Compensation-related expense	(9)			184			1,104			1,781			1,221
Impairment of long-lived assets, net of (gain) loss on sale	986			64			3,286			5,413			2,074
Gain on early termination of loss share agreements	—			—			(2,708)			—			—
Other non-core non-interest expense	(3,129)			2,600			(1,955)			(95)			(683)
Core tangible non-interest expense (Non-GAAP) ⁽²⁾	$	156,230		$	161,296		$	162,980		$	169,233		$	164,130

Return on average assets (GAAP)	1.32		%	1.70		%	1.34		%	1.01		%	0.92		%
Effect of non-core revenues and expenses	(0.03)			(0.33)			0.01			0.31			0.21
Core return on average assets (Non-GAAP)	1.29		%	1.37		%	1.35		%	1.32		%	1.13		%

Efficiency ratio (GAAP)	52.4		%	63.5		%	54.1		%	63.5		%	67.8		%
Effect of tax benefit related to tax-exempt income	(0.3)			(0.4)			(0.3)			(0.4)			(0.4)
Efficiency ratio (TE) (Non-GAAP) ⁽¹⁾	52.1		%	63.1		%	53.8		%	63.1		%	67.4		%
Effect of amortization of intangibles	(1.6)			(1.9)			(1.7)			(1.9)			(1.8)
Effect of non-core items	0.8			(10.5)			(0.2)			(6.9)			(6.8)
Core tangible efficiency ratio (TE) (Non-GAAP) ^{(1) (2)}	51.3		%	50.7		%	51.9		%	54.3		%	58.8		%

Return on average common equity (GAAP)	9.85		%	13.38		%	10.21		%	7.87		%	6.79		%
Effect of non-core revenues and expenses	(0.19)			(2.63)			0.06			2.43			1.66
Core return on average common equity (Non-GAAP)	9.66		%	10.75		%	10.27		%	10.30		%	8.45		%
Effect of intangibles ⁽²⁾	5.37			6.23			6.07			6.40			5.38
Core return on average tangible common equity (Non-GAAP) ⁽²⁾	15.03		%	16.98		%	16.34		%	16.70		%	13.83		%

Total shareholders' equity (GAAP)	$	4,141,831		$	4,056,277		$	3,942,361		$	3,913,409		$	3,900,907
Less: Goodwill and other intangibles	1,310,458			1,315,462			1,305,915			1,314,165			1,332,672
Preferred stock	132,097			132,097			132,097			132,097			132,097
Tangible common equity (Non-GAAP) ⁽²⁾	$	2,699,276		$	2,608,718		$	2,504,349		$	2,467,147		$	2,436,138

Total assets (GAAP)	$	31,260,189		$	30,833,015		$	30,118,387		$	30,126,162		$	29,472,637
Less: Goodwill and other intangibles	1,310,458			1,315,462			1,305,915			1,314,165			1,332,672
Tangible assets (Non-GAAP) ⁽²⁾	$	29,949,731		$	29,517,553		$	28,812,472		$	28,811,997		$	28,139,965
Tangible common equity ratio (Non-GAAP) ⁽²⁾	9.01		%	8.84		%	8.69		%	8.56		%	8.66		%

(1)

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21%.

(2)

Tangible calculations eliminate the effect of goodwill and acquisition-related intangibles and the corresponding amortization expense on a tax-effected basis where applicable.

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SOURCE IBERIABANK Corporation