UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2004
Commission File Number 0-25756
IBERIABANK Corporation
(Exact name of registrant as specified in its charter)
| Louisiana | 72-1280718 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) |
| 200 West Congress Street Lafayette, Louisiana |
70501 | |
| (Address of principal executive office) | (Zip Code) |
(337) 521-4003
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes x No ¨
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
The registrant had 7,039,126 shares of common stock, $1.00 par value, which were issued and outstanding as of May 5, 2004.
IBERIABANK CORPORATION AND SUBSIDIARY
| Page | ||||
| Part I. |
Financial Information | |||
| Item 1. |
Financial Statements |
|||
| Consolidated Balance Sheets (As of March 31, 2004 and December 31, 2003) |
2 | |||
| Consolidated Statements of Income (For the three months ended March 31, 2004 and 2003) |
3 | |||
| Consolidated Statements of Shareholders’ Equity (For the three months ended March 31, 2004 and 2003) |
4 | |||
| Consolidated Statements of Cash Flows (For the three months ended March 31, 2004 and 2003) |
5 | |||
| 6 | ||||
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
9 | ||
| Item 3. |
18 | |||
| Item 4. |
18 | |||
| Part II. |
Other Information | |||
| Item 1. |
19 | |||
| Item 2. |
Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities |
19 | ||
| Item 3. |
19 | |||
| Item 4. |
19 | |||
| Item 5. |
19 | |||
| Item 6. |
19 | |||
| 20 | ||||
PART 1. FINANCIAL INFORMATION
| Item 1. | Financial Statements |
IBERIABANK CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (unaudited)
(dollars in thousands, except share data)
| March 31, 2004 |
December 31, 2003 |
|||||||
| Assets |
||||||||
| Cash and due from banks |
$ | 54,910 | $ | 48,849 | ||||
| Interest-bearing deposits in banks |
28,244 | 20,722 | ||||||
| Total cash and cash equivalents |
83,154 | 69,571 | ||||||
| Securities available for sale, at fair value |
498,611 | 426,130 | ||||||
| Securities held to maturity, fair values of $50,498 and $55,207, respectively |
48,339 | 53,492 | ||||||
| Mortgage loans held for sale |
10,991 | 5,781 | ||||||
| Loans, net of unearned income |
1,471,747 | 1,412,349 | ||||||
| Allowance for loan losses |
(19,394 | ) | (18,230 | ) | ||||
| Loans, net |
1,452,353 | 1,394,119 | ||||||
| Premises and equipment, net |
35,850 | 31,992 | ||||||
| Goodwill |
64,600 | 59,523 | ||||||
| Other assets |
76,554 | 75,203 | ||||||
| Total Assets |
$ | 2,270,452 | $ | 2,115,811 | ||||
| Liabilities |
||||||||
| Deposits: |
||||||||
| Noninterest-bearing |
$ | 207,048 | $ | 189,786 | ||||
| Interest-bearing |
1,550,231 | 1,399,320 | ||||||
| Total deposits |
1,757,279 | 1,589,106 | ||||||
| Short-term borrowings |
121,014 | 162,590 | ||||||
| Long-term debt |
155,896 | 156,291 | ||||||
| Other liabilities |
19,083 | 12,655 | ||||||
| Total Liabilities |
2,053,272 | 1,920,642 | ||||||
| Shareholders’ Equity |
||||||||
| Preferred stock, $1 par value - 5,000,000 shares authorized |
— | — | ||||||
| Common stock, $1 par value - 25,000,000 shares authorized; 8,649,777 and 8,362,492 shares issued, respectively |
8,650 | 8,362 | ||||||
| Additional paid-in-capital |
132,827 | 114,674 | ||||||
| Retained earnings |
124,805 | 119,967 | ||||||
| Unearned compensation |
(4,130 | ) | (2,668 | ) | ||||
| Accumulated other comprehensive income |
2,198 | 183 | ||||||
| Treasury stock at cost - 1,604,776 and 1,644,034 shares, respectively |
(47,170 | ) | (45,349 | ) | ||||
| Total Shareholders’ Equity |
217,180 | 195,169 | ||||||
| Total Liabilities and Shareholders’ Equity |
$ | 2,270,452 | $ | 2,115,811 | ||||
See Notes to Consolidated Financial Statements
2
IBERIABANK CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(dollars in thousands, except per share data)
| For the Three Months Ended March 31, | ||||||
| 2004 |
2003 | |||||
| Interest and Dividend Income |
||||||
| Loans, including fees |
$ | 19,958 | $ | 18,414 | ||
| Mortgage loans held for sale, including fees |
131 | 117 | ||||
| Investment securities: |
||||||
| Taxable interest |
4,488 | 3,362 | ||||
| Tax-exempt interest |
646 | 538 | ||||
| Other |
179 | 181 | ||||
| Total interest and dividend income |
25,402 | 22,612 | ||||
| Interest Expense |
||||||
| Deposits |
5,358 | 5,092 | ||||
| Short-term borrowings |
384 | 413 | ||||
| Long-term debt |
1,694 | 1,194 | ||||
| Total interest expense |
7,436 | 6,699 | ||||
| Net interest income |
17,966 | 15,913 | ||||
| Provision for loan losses |
1,055 | 1,575 | ||||
| Net interest income after provision for loan losses |
16,911 | 14,338 | ||||
| Noninterest Income |
||||||
| Service charges on deposit accounts |
2,906 | 2,598 | ||||
| ATM fee income |
432 | 428 | ||||
| Gain on sale of mortgage loans, net |
862 | 702 | ||||
| Gain on sale of assets |
10 | 29 | ||||
| Gain on sale of investments, net |
143 | 72 | ||||
| Other income |
1,203 | 1,043 | ||||
| Total noninterest income |
5,556 | 4,872 | ||||
| Noninterest Expense |
||||||
| Salaries and employee benefits |
7,113 | 6,051 | ||||
| Occupancy and equipment |
1,701 | 1,431 | ||||
| Franchise and shares tax |
700 | 496 | ||||
| Communication and delivery |
654 | 701 | ||||
| Marketing and business development |
451 | 294 | ||||
| Data processing |
375 | 447 | ||||
| Printing, stationery and supplies |
218 | 184 | ||||
| Amortization of acquisition intangibles |
218 | 84 | ||||
| Other expenses |
1,785 | 2,034 | ||||
| Total noninterest expense |
13,215 | 11,722 | ||||
| Income before income tax expense |
9,252 | 7,488 | ||||
| Income tax expense |
2,761 | 2,270 | ||||
| Net Income |
$ | 6,491 | $ | 5,218 | ||
| Earnings per share - basic |
$ | 0.98 | $ | 0.90 | ||
| Earnings per share - diluted |
$ | 0.90 | $ | 0.83 | ||
See Notes to Consolidated Financial Statements
3
IBERIABANK CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (unaudited)
(dollars in thousands, except share and per share data)
| Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Unearned Compensation |
Accumulated Other |
Treasury Stock |
Total |
||||||||||||||||||||
| Balance, December 31, 2002 |
$ | 7,381 | $ | 72,769 | $ | 102,390 | $ | (2,690 | ) | $ | 712 | $ | (40,964 | ) | $ | 139,598 | ||||||||||
| Comprehensive income: |
||||||||||||||||||||||||||
| Net income |
5,218 | 5,218 | ||||||||||||||||||||||||
| Change in unrealized gain on securities available for sale, net of deferred taxes |
(630 | ) | (630 | ) | ||||||||||||||||||||||
| Change in fair value of derivatives used for cash flow hedges, net of tax effect |
(61 | ) | (61 | ) | ||||||||||||||||||||||
| Total comprehensive income |
4,527 | |||||||||||||||||||||||||
| Cash dividends declared, $.20 per share |
(1,319 | ) | (1,319 | ) | ||||||||||||||||||||||
| Reissuance of treasury stock under stock option plan, net of shares surrendered in payment, including tax benefit, 12,875 shares |
45 | 61 | 106 | |||||||||||||||||||||||
| Common stock released by ESOP trust |
360 | 122 | 482 | |||||||||||||||||||||||
| Common stock earned by participants of recognition and retention plan trust, including tax benefit |
38 | 128 | 166 | |||||||||||||||||||||||
| Common stock issued for acquisition |
982 | 38,234 | 39,216 | |||||||||||||||||||||||
| Treasury stock acquired at cost, 12,000 shares |
(458 | ) | (458 | ) | ||||||||||||||||||||||
| Balance, March 31, 2003 |
$ | 8,363 | $ | 111,446 | $ | 106,289 | $ | (2,440 | ) | $ | 21 | $ | (41,361 | ) | $ | 182,318 | ||||||||||
| Balance, December 31, 2003 |
$ | 8,362 | $ | 114,674 | $ | 119,967 | $ | (2,668 | ) | $ | 183 | $ | (45,349 | ) | $ | 195,169 | ||||||||||
| Comprehensive income: |
||||||||||||||||||||||||||
| Net income |
6,491 | 6,491 | ||||||||||||||||||||||||
| Change in unrealized gain on securities available for sale, net of deferred taxes |
2,701 | 2,701 | ||||||||||||||||||||||||
| Change in fair value of derivatives used for cash flow hedges, net of tax effect |
(686 | ) | (686 | ) | ||||||||||||||||||||||